What DAB data means for the South African market
Day after broadcast television data is going to become a fact in South Africa during 2006. The key questions are: what are the implications for local advertisers, how is this change going to affect the current trading currency and when are these changes likely to be introduced?
Well, a little bit of history is required for context.
Firstly, day after broadcast data is the norm worldwide. In South Africa we have been the recipients of SAARF people meter data since July 1989. The data is available to the industry approximately three weeks after the broadcast date and the data is available on a rolling weekly basis. This enables the tracking of individual spots to determine precisely what the projected audiences would have been.
The issue has been that by the time the data is available to the industry, the campaign may have run its course and no remedial action can be taken to address either an under-delivery or an over-delivery of ratings. Both are
equally negative, as the first means that the campaign may have been too light and the second may mean that too much money was invested in the campaign, which results in over-investment or unnecessary wastage.
So the up-side potential of over-night data is significant.
What are the implications of DAB data in our market? The key answer is greater accountability and more certainty for the marketer in that their television advertising objectives are virtually guaranteed.
The official SAARF TAMS contractor is AGB/NMR who are currently installing a TV spot monitoring system called TV Events. This software system is capable of recording all analogue broadcasts in South Africa as well as all the digital stations which have commercial content, totally independently of the broadcasters themselves. This means that there will be an independent verification of what, where and when spots were broadcast. This links in well with the increasingly important compliance
demands of the Sarbanes Oxley requirements of multi national advertisers.
From a practical point of view, what does it mean for broadcasters and media agencies given the requirement of coping with all this extra data?
In essence, the fact that the data is available on a daily basis will not differ significantly from the release of weekly data. It simply means that via software programmes, each individual TV investment buyer will be able to ascertain variances in programme rating delivery and will be able to top up AR’s if there is a shortfall or reduce ratings if there is over-delivery on their campaigns. The real significance is that the broadcaster is in a position whereby they have to shoulder either part or all of the responsibility for delivering the ratings at the agreed cost. In the past, this responsibility was borne almost exclusively by the media agencies who were using historical programming to predict future programming audience delivery. With radical
programme changes, this was always going to be a no-win situation for the agencies.
In terms of timing, even though AGB/Nielsen have confirmed that they will be able to supply DAB data as per the SAARF TAMS contract which commences as from 1 January 2006 (and is for the duration until 2011), the television broadcasters have confirmed that the software programming changes that they will have to make can only go live as from the end of second quarter 2006. In all likelihood, the new software packages will have to run in parallel with the existing systems in order to iron out any discrepancies.
A considerable amount of time also needs to be allocated towards training of both buyers and sellers of TV airtime, as the system is significantly different from the current trading system. Precisely what this trading system is going to be is in open debate between all the relevant players: the MFSA, SAARF, the broadcasters, the AMF as the buyers and the software suppliers who
provide the means of manipulating the raw data. This is an healthy and pragmatic process that should ensure an uniquely South African trading system.
In addition to DAB ratings, we will also be seeing an increase in the measurement of rural television audiences. This does not mean that there will be an increase in the total television viewer audience; what it does mean is that viewership of rural TV audiences that have always been there will be measured. This could have a significant impact on the TV currency, as it will give a far more accurate reflection of total South African TV viewership.
As with the DAB software systems, this data will run concurrently with the existing people meter panel data thus enabling the industry to evaluate the impact of the increase of the rural panel on existing TV audience data.
So in conclusion, there is a lot on the go in the television measurement and trading spaces. Pragmatic attitudes and sensible minds are
required to see that we have a win-win solution for all parties in the South African television market.