Tuesday, July 15, 2008

What are TRP ratings?
A television programme or a commercial, on a cable system, or direct from a satellite is available for viewing to
millions. How does one know how many of them are actually viewing a particular programme? Unlike a
newspaper or magazine, where the publisher can count how many copies are sold, there is no direct way to
know exactly how many people are watching a programme. Hence, indirect measuring techniques based on the
statistical sampling theory, called Television Audience Measurement (TAM) are used. Technically, TAM is a
special branch of media research, dedicated to quantifying and qualifying detailed TV audience information. In
India, the TAM is commonly referred to as TRP or Television Ratings Points. Generally, when used for the
broadcast medium, one rating point equals 1% of the given population group.

Why do we need them?
With crores spent annually on TV programmes and commercials, reliable TV audience information is required to
evaluate and maximize the effectiveness of this investment. This has led to the increasing desire by
broadcasters, advertisers and agencies to have accurate and and detailed information about TV audiences.
These ratings, if reliable and valid, become the common currency for the market’s commercial airtime. Media
planners and buyers evaluate the alternative programmes offered to best achieve their advertising goals;
broadcasters evaluate programme popularity and how much to charge advertisers for commercials during a
programme/ on a given channel.

How is the viewership measured?
There are many ways to measure the audiences. One is through random telephone calls (if teledensity is
satisfactory). Another is by using TV diaries, booklets in which samples of viewers record their TV viewing
during a measurement week. However, with increasing channels, multiple broadcasting platforms and
increased numbers of TV sets, people meters are used to measure audiences. The people meter, about the size
of a paperback book, is placed on each TV set. The box has buttons and lights are assigned to each person who
lives there (with additional buttons for guests). Each meter is capable of accurately monitoring every second 24
hours a day, 365 days a year, what is being viewed on each TV set, by whom and of storing this data. The data
is then periodically transmitted by means of the family’s telephone line, or a dedicated cellular telephone line to
a central computer for analysis. In actual practice all the three methods are used in combination, to enhance
accuracy. The world’s first people meter was installed in 1976 in 500 homes in Italy by LCM Graman, and
Italina market research company. Today, AC Nielsen, AGB Group and Gallup are the three leading TAM
agencies. Most television markets in the world have a single TAM rating. However, India has two – one called
TAM done by AC Nielsen and other INTAM reported by ORG-MARG.

How reliable are TRP ratings?
TRP ratings could be inaccurate due to sampling errors like inadequate coverage of the TV owning population.
In India, for example, TAM ratings are based on people meters installed in only 16 top cities in 9 states. Also,
the panel households exclude lower middle and top income bracket households, who are keen watchers of
niche English channels. Then, the whole system is based on the list of metered households being confidential
so that their viewing habits are not unduly influenced. However, in the recent TRP scandal in India, the list of
households with people meter was found to be openly available in the market. However, none of these are the
errors that cannot be set right.

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