Commentary
MRC (WMD?)
- by Joe Mandese @mp_joemandese, May 1, 2023
The answer depends on what you believe the role of the MRC actually is.
Or at least, what it’s supposed to be.
“Four months ago, this acronym was born,” Michael Kassan said as he opened the U.S. “JIC’s” first-ever upfront event in New York City Thursday, hours after both Nielsen …
Joe Mandese is the Editor in Chief of MediaPost. You can reach Joe at joe@mediapost.com.
Interesting piece, Joe. I was there---and sometimes directly involved--when most of the previous attempts to unseat Nielsen as our exclusive supplier of national TV ratings were launched. It should also be noted that Gale Metzger's SMART initiative was funded to the tune of $30 million by the broadcast TV networks.
As it developed, Gale got lots of encouragement from the networks as well as the agencies and some major TV advertisers and this lead him to turn to these sources to fund the launch of a rival people meter rating service. I know as one of my duties as a consultant on this project was to deveolp a rate card for agencies, advertisers and TV time sellers.
The problem as I had seen it with previous efforts by Arbitron and others was that none of these would be competitors to Nielsen made any effort to disprove Nielsen's findings. Instead some sold based on lower prices, others on small refinements in the methodology, new ways to report the data, timelier data, etc. ---none of which were crucial points of departure. In many cases , if its customers really wanted such improvements--and would pay a small amount to obtain them, Nielsen would gladly have complied. Moreover, Nielsen had both the staffing and the vast experience required to manage a national rating service and assure that the ratings were deleiverd as promised. But the newbies had no such experience and there was always the danger that something might go wrong or the"spice" wouldn't flow as readily as desired.
As a result, even if SMART had obtained sufficient funding to launch ---mainly from the TV networks--- the networks would have had to continue with Nielsen----and use Nielsen----with SMART operating as a parallel source whose findings and its growing expertise in maintaining the new service could be evaluated. ---though not, necessarily as a buying -selling currency. This prospect was not a pleasnt one for the networks who, at that time were having serious profit problems and certainly the agencies didn't wish to confuse the issue by using two currencies. As for those big TV advertisers who were so encouraging---they were no shows when it came to funding as well as dictating that their agencies should drop Nielsen and buy SMART. Might Nielsen sue them?
As for the current situation, I see it as a replay from the old playbook for the sellers ---which I can't blame them for attempting.Also, they want to use the so-called "alternative currencies" as qualitative add-ons with advertiser targets of opportunity on a highly selective bsis---again, I can't fault them on this sales promotional slant. That's what they do---sell time. Anthing that gets one seller more business---or higher CPMs---is a good thing. So why subject these "alternative currencies" to the MRC'svery sound but strict scrutiny---which many may fail? It all ties together in my mind.
Joe, some additions and corrections.
I do not disagree that the current M-CCC is causing significant confusion in the trading/planning/selling TV/Video marketplace although in-depth re-assessments of media research and measurement techniques, approaches and viable technologies are always worthwhile. So a grateful thanks from that perspective to the major networks.
Hi! We've been running a formal JIC out of the US for the past 3 years. When TAG and JICWEBS (UK-based, thus the JIC term) merged we continued the formal processes of running a JIC. As far as I can tell, a JIC is only a JIC if it has some semblance of governmental support, otherwise it's just an industry self regulatory body.
That being said, I don't think the terms or (informal) definitions make any difference. If the industry can join together to solve these challenges it will be invaluable.
Michael, none of our JIC's in Australia have governmental support. The JICs are primarily financed by the media owners, supported by subscribing media agencies and a sprinkle of advertisers etc. They key though is that we all get a seat at the JIC. We don't always agree but we inevitably reach a workable solution.
Michael, to John's observation I have not identified partial government funding as a JIC cornerstone via my international colleagues but clearly it is a potential parameter. Appreciate the alert and your point is well taken regarding the value in achieving a consensus agreement via an industry consortium on a currency. Far from easy. And I did say "a currency" - singular! Plus the currecny basis and its defintion and derivation are crucial, n'est pas?
Good conversation. I should have been more specific in my original post. We don't receive any government funding. We are 100% industry funded via our 750+ member companies. What I meant was that the government has essentially asked the industry to self regulate and provided some tacit support. This has been my experience with multiple JICs in Europe and APAC.
Michael, appreciate the correction. As you may know the Media Ratinig Council, MRC, here accredites most major media research studies to the Standards or Guidelines it establishes. Somewhat similar to RSMB's role in the UK I understand. However, MRC, does not execute nor determine the basis of any media currency just ensures the final results meets its minimum required research/data quality at a highly detailed level usually by the E&Y special team in Tampa, Forida.
Interestingly MRC was established as a non-profit, multi-partite industry body as a result of serious Government concerns with the TV ratings being "suspect" as a result of "interference" and has grown and evolved from there. It does not receive any Government funding, has the worst business/funding model imaginable as admitted by its Executive Director and still comes under the auspices of the Department of Justice.