The new household classification system for media measurement — the Indian Socio-Economic Classification System (ISEC) which was proposed in February this year by the Market Research Society of India (MRSI), will certainly not be rolled out or implemented this year, sources tell Storyboard18.
The proposed classification system touted as a more advanced and detailed system for understanding Indian consumers as compared to the now-existing ‘New Consumer Classification System’ (NCCS) is stalled as broadcasters are yet to give it the green light.
While the Indian Society of Advertisers (ISA)-backed ISEC gives more granular data to advertisers which can help them enhance ROI on ad spends, broadcasters fear the big pendulum shift will reveal ‘true’ TRP numbers, which mostly would be upsetting for most general entertainment channels (GECs).
“NCCS was practically rolled out in 2015 with the rollout of BARC. Even at that time it was a bit dated and the durables list should have been updated a few times since. ISEC is a good concept but where is the rollout?,” remarks Partho Dasgupta, Managing Partner, Thoth Advisors and ex CEO, BARC India.
“The marketing ecosystem is working on outdated NRS and Broadcast India numbers – time for stakeholders whose monies are invested to wake up and smell the coffee, as they say,” he says.
The implementation of ISEC seems to have found support from advertisers but is anticipated to disadvantage broadcasters and traditional entertainment channels.
“If BARC rolls out the ISEC, every media outlet targeting specific audiences based on traditional criteria, and broadcasters focusing on these groups could suffer due to potential shifts in audience visibility, targeting complexity, and ad revenue distribution”, points out Haroon Asrar, Partner, Solomon & Co.
Media agencies and marketers will face adjustment costs and will have to re-consider their catalogue of programs offered, basis the evaluation of new factors.
Furthermore, the inclusion of several additional criteria may raise questions regarding the methodology of data collection, the legitimacy of such data and potential breach of data privacy laws, Asrar shares.
The dissonance
The new classification system (ISEC) is a significant overhaul, compared to the previous classification system (NCCS), and stakeholders will have to sample its effect and implementation across all audience segments.
While the new system has been tested for the stakeholders, sources close to the development revealed that the broadcasters were not happy with the result and hence no consensus at this stage.
Earlier, the NCSS’s criteria was only basis the education of the male chief wage earner and the household products being used, which was quite limited. ISEC proposes to enhance the existing methodology by considering several other factors such as the education levels of the highest educated male as well as female adults, in addition to the occupation of the chief wage earner, which are crucial in understanding consumer behaviour in today’s context.
ISEC has also considered an expansion into the categories under “Occupation” – which is not just categorised under Urban/Rural occupations but is also further sub-categorised basis the types of occupation (skill/service/trade) as well as nature/size/level of businesses an individual is involved in.
This type of holistic understanding will assist stakeholders and the industry to target the right audiences, says Asrar.
Mainly helping the advertisers.
Which also is the point of contention for the broadcasters.
According to NCCS data, women from various socio-economic backgrounds are avid viewers of Hindi soap operas on General Entertainment Channels (GECs). However, the upcoming ISEC system is expected to reveal a more nuanced picture by distinguishing the viewing habits of educated women from those with lower levels of education. This could provide a clearer understanding of GEC viewership patterns.
Notably, many educated women are already shifting their preference to Over-The-Top (OTT) platforms for high-quality content, which may lead to a decline in GEC viewership and, consequently, advertising revenue.
“Five months in and there is still no consensus on the new system. NCCS won’t easily go, especially until the next five-six months. ISEC won’t be implemented this year for sure,” said a senior broadcaster on the condition of anonymity.
Added another broadcaster, “While the process of testing is on, the numbers are not good. Broadcasters are not happy with the numbers. Won’t be wrong to say advertisers should act on it since it is their money.”
The broadcaster further revealed that the India Broadcasting and Digital Foundation (IBDF) has formed a task force to examine the new system and consultations would happen again.
In a nutshell, in its present version, the new system won’t be implemented because one section of the ecosystem isn’t okay with it.
Consensus among advertisers
While it might be delayed, the inability of NCCS to effectively capture media behavior has led advertisers to champion ISEC.
“In the last 10 years things have changed radically and most households, irrespective of education or income now own white goods. The country is growing fast with disposable incomes rising and we need some strong discriminatory variables,” said Krishnarao Buddha, Sr. Category Head – Marketing at Parle.
Although he adds that while ISEC is a good step towards bringing in further discrimination, there is definitely room to further bring in a lot more discrimination in the ISEC classification as well.
He mentioned that as advertisers are being consulted for the new system, a majority of them are in agreement with it.
“The current classification of NCCS makes it difficult to understand the media behavior. ISEC helps with viewership data which is far more refined and closer to real, and as a result, it may change the fortunes of certain media houses or certain broadcast houses. But how would that impact the advertisers’ money, is a little far-fetched and premature to assume,” Buddha says.
“Everything needs an overhaul. Even BARC is increasing the meters for better representation. If major advertisers rely on female viewing ratings, they also have the right to know the background of the female viewer. The move is aimed at advertisers to getting to know more of the viewers,” remarked another stakeholder on condition of anonymity.
30% of the total domestic advertising expenditure is TV—so any change in the broadcasting industry needs a lot of deliberation but, industry in unison says, no one can be left at a disadvantage.