What’s delaying BARC’s digital measurement plan?

As viewership pattern in India continues to evolve, the Broadcast Audience Research Council (BARC) is making significant efforts to enhance digital data measurement in premium households. However, the challenge of accurately tracking digital audiences remains unresolved.

What’s holding back progress? Industry experts suggest that a major hurdle lies in broadcasters' unpreparedness, which continues to impede advancements in digital measurement efforts.

An industry veteran privy to developments, who did not wish to be named, said, “Despite the installation of smart meters on phones for 10,000 to 12,000 users from empanelled BAR-O-meter homes in urban India, tracking internet viewership remains a challenge. The framework is ready but there is no consensus among members to make this rollout formal.”

A senior broadcaster has revealed that BARC was ready to implement a new classification study, but it never materialized.

"The hesitancy stems from a significant lack of trust between broadcasters and BARC, with concerns over reliability and potential compromises. Despite backing from the Advertising Agencies Association of India (AAAI) and the Indian Society of Advertisers (ISA), to make this data public, the majority shareholder of IBDF remains opposed,” said the broadcaster, who did not wish to be named.

They further explained that the rise in cord-cutting, particularly among premium homes, has resulted in viewers shifting to OTT platforms and YouTube, and advertising revenue is now largely controlled by these operators.

“This trend poses a threat to General Entertainment Channel (GEC) revenues. As a result, BARC's approach has negatively affected both TV and digital metrics. Inconsistencies in performance data from various sources, such as Tata Sky and Airtel data often contradicting BARC's figures, further erode trust in the organization,” he said.

Another industry leader expressed concern about a government intervention, given the ongoing stalemate and lack of strong leadership in digital measurement.

"There have been discussions around digital measurement, but we need strong industry leadership to address this; otherwise, I fear, the government will step in," he stated.

The industry veteran suggested that the government should allow multiple licenses for private players to conduct their own research, emphasizing that if someone is willing to invest their resources, they should be permitted to do so.

A former broadcasting network head told exchange4media that broadcasters are hesitant to adopt digital measurement tools like BARC due to fears of revealing low visibility for live channels.

“This transparency could negatively impact their revenue, as advertisers might ask for lower rates. Currently, when Channel A approaches advertisers, they promote a combined package that includes both TV and digital exposure, claiming high viewership and engagement. However, if digital metrics were publicized, advertisers could reassess the value of the digital component and potentially push for discounts, prioritizing traditional TV advertising instead,” he said.

According to reliable sources, BARC has been preparing to launch its measurement survey for Connected TV (CTV) consumption in India.

BARC Chairman Shashi Sinha had earlier this year told e4m that the council has ordered over 5,000 new meters to gain insights into viewing habits among premium homes.

The expanded measurement aims to provide a comprehensive understanding of linear TV and CTV consumption trends, benefiting the advertising ecosystem, he had said.

As per various studies and surveys, Connected TV is emerging as a fast-growing market for advertising, with projections indicating that CTV connections will double by 2026, reaching 40 million compared to the current 20 million.

According to GroupM's "This Year Next Year" report, India's connected TV advertising spends are projected to grow at a compound annual growth rate (CAGR) of 47% by 2027, indicating substantial growth in advertising expenditure.

“The share of CTV ad spends as a percentage of TV ad revenues is a mere 2.2% in India, compared to markets like the US or UK, where it amounts to 29% and 21%, respectively. However, as the market evolves, currencies for viewership need to be developed as CTV can help target audiences more effectively and drive ROI,” an ad executive had said.

Currently, BARC measures TV viewing habits in approximately 210 million TV households across India, utilizing over 50,000 sample panel homes. The decision to empanel premium homes reflects the increasing digital and CTV consumption among affluent segments, highlighting the need for accurate measurement tools.

With India's real GDP projected to grow over 6% annually from 2023 to 2028, the wealth of affluent Indians is expected to rise significantly. According to Goldman Sachs, the affluent consumer segment is forecasted to expand from approximately 60 million in 2023 to 100 million by 2027, indicating a growing market for tailored advertising strategies.

In April this year, BARC had announced that it would be launching a premium household panel soon to measure viewership in affluent homes with an aim to represent better high-income audiences often underrepresented in traditional ratings.

However, the audience measurement body has been facing recruitment challenges in these households, making the rollout dependent on overcoming these hurdles. 

“It is far more challenging than installing meters in regular BARC homes. While we’ve received board approval and the meters have started arriving, getting affluent households on board is a slow process. We excel at managing regular panels, but this is a different scenario. Until recruitment is complete, it's difficult to set a precise timeline. Once we stabilise viewership measurement in premium homes, we’ll move on to CTV. The groundwork is in progress, but recruitment remains a critical hurdle before full rollout,” the BARC Chairman had said.

The decision to empanel premium homes comes as digital and CTV consumption increases among affluent segments, emphasising the need for more accurate measurement tools.

exchange4media had reached out to BARC and some of the broadcasters on its board before the story was published but received no comment.