Bigger samples, bigger costs, little gain: Srinivasan Swamy on ratings expansion push

The ongoing churn in India’s television audience measurement ecosystem may not disrupt advertising decisions in the near term, but it raises deeper structural questions around cost, complexity and the future of cross-platform metrics, according to Srinivasan Swamy, Executive Group Chairman of RK Swamy and President of the Advertising Agencies Association of India.

Speaking on the recent developments around ratings and measurement, Swamy acknowledged long-standing limitations in the current system—particularly for niche segments such as English news channels, where relatively smaller sample sizes often raise concerns about statistical robustness.

However, he downplayed the immediate impact of the temporary suspension of ratings, noting that the advertising ecosystem continues to function on established benchmarks. “Advertisers are not operating in a vacuum. They rely on historical data and stable consumption patterns, which continue to provide sufficient direction for media planning,” he indicated.

‘Sample size push may inflate costs without meaningful gains’

Swamy was more critical of the Ministry of Information and Broadcasting's directive to significantly expand the sample size, arguing that the move risks driving up costs without proportionate benefits in accuracy.

“From a statistical standpoint, experts have long pointed out that beyond a certain threshold, increasing sample size yields diminishing returns in terms of precision,” he said. “What it does increase, quite substantially, is the cost of measurement.”

This raises a fundamental question for the industry, he added: whether the push is addressing a genuine gap in measurement or merely adding layers of complexity and expense without tangible value creation.

Entry barriers may ease, but viability remains uncertain

MIB further reduced the entry barriers from Rs 20 crore to Rs 5 crore for an inclusive approach. On whether reduced entry barriers could attract new players into the ratings business, Swamy struck a cautious note. While theoretically such moves could encourage participation, he emphasised that audience measurement remains a capital-intensive and operationally complex domain.

“Beyond the initial investment, the key issue is market viability. Who will subscribe to multiple rating systems? Will advertisers and broadcasters be willing to pay for parallel datasets?” he asked, suggesting that demand-side constraints could limit the sustainability of new entrants.

Without a clear appetite for multiple measurement currencies, Swamy believes it would be difficult for new players to scale or survive in the long run.

‘Hansa Research unlikely to enter ratings space’

Addressing whether Hansa Research—part of the RK Swamy group—could consider entering the ratings business, Swamy acknowledged that the firm possesses the technical capabilities, including large-scale data collection infrastructure such as computer-aided telephone interviewing systems.

Yet, he underscored that capability alone is not sufficient to justify entry. “At this point, we see more risk than opportunity. Unless there is a structural shift in the market or mechanisms to de-risk investments, this is not an area we are looking to enter,” he said.

Fragmentation vs integration: Industry at a crossroads

Swamy also cautioned against the proliferation of multiple measurement systems, arguing that historical experience shows such fragmentation tends to create confusion rather than clarity.

“The industry needs stability and standardisation, not competing currencies,” he said, warning that parallel systems could complicate decision-making for advertisers and broadcasters alike.

Instead, he pointed to a more pressing transformation underway—the shift in content consumption from linear television to digital platforms, including OTT, connected TV and on-demand services.

“The future is not about having more measurement systems, but about building unified frameworks that can capture consumption across platforms,” Swamy noted, highlighting the need for integrated metrics that reflect evolving audience behaviour.

DPOs, OTT data raises transparency concerns

With MIB now allowing DPOs and OTT platforms to release viewership data, Swamy flagged concerns around comparability and transparency.

“Each platform can present data in a way that supports its own narrative. Without standardised methodologies or independent validation, it becomes difficult for advertisers to make apples-to-apples comparisons,” he said.

As digital consumption continues to scale, Swamy stressed that building trust through consistent and transparent reporting will be critical for the credibility of OTT metrics.

In sum, while the immediate disruption from ratings uncertainty may be limited, Swamy’s comments underscore a larger inflection point for the industry—one that hinges less on expanding legacy systems and more on creating cohesive, future-ready measurement standards across an increasingly fragmented media landscape.