FoME Symposium 2014: Audience research in media development Making media markets work: Emerging experience in Nepal 7th November 2014 Gavin Anderson Development consultant GAnderson@springfieldcentre.com Audience research Global level research Purpose Key outcomes Macro level policy ? Understanding media National level habits at a national level research - all media (ongoing) Understanding a media Media house level house’s audience. research (ongoing) Development/donor level research (occasional) Influencing advertising and communication revenue flows: both +ve and –ve Potentially levelling the competitive playing field (transparency) Influencing investment in media and content. Reducing corruption Influencing media content and content mix Influencing internal investment in media and content Quality control within media houses Product development within media houses Donor/ development policy Influencing donor communication and Intervention strategy media development strategies, development Influencing donor investment. Impact assessment Samarth- NMDP (Nepal market Development Project) • • • 5 year DFID funded Programme Rural income-poverty reduction programme Primarily focused on agricultural and rural small business development Why media development? Nepal Population : 31 million Non Urban population: 82.7% Literacy: 60.3% HDI ranking: 145/187 A large and diverse media industry in Nepal ~ 370 radio stations ~28 TV stations ~ 400+ daily publications ~2000+ weekly publications Usage of media / information channels: Rural Preferred media channel for agricultural information 100% 80% 60% 3rd preference 40% 2nd preference 20% 0% 1st preference Radio: A sector in crisis • • • • • 4 in 10 radio stations reported reduced profitability over the past 5 years More than half of stations had reduced staff numbers in the past 5 years with an average reduction of 14 staff More than half of all radio stations believe radio is not a profitable sector to be in. More than two thirds of stations believe that their profitability will decrease in the next 5 years 43% of commercial radio stations believe that it is likely or possible that they will close down in the next 5 years. Impacting on quality of radio content Journalism in existing agricultural / business radio programmes 45% 41% 40% 40% 34% 35% 34% 29% 30% 25% 25% 23% 19% 20% 19% 16% 15% 15% 10% 8% 5% 0% Field based Issue based Multiply and appropriately sourced Commercial Balanced Investigative with follow up Community Total Advertising Expenditure in Nepal: small for the size of the economy Million US$ 500 400 300 200 100 0 Nepal Nepal Sri Lanka Lanka Sri Uganda Uganda Ad expenditure (2010-11) $43.4 million $416.8 million $178.3 million Population 31.0 million 21.2 million 35.6million GNI per capita $ 1,137 $ 5,170 $1,168 GDP- economy $ 18.96 billion $ 59.42 billion $ 20.03billion Ad Ex / GDP 0.23% 0.70% 0.89% Advertising expenditure comparison Proportion of income 70% 58.8% 60% 50% 47.0% 40% 30% Nepal 22.7% 20% 20.0% Uganda 16.9% 17.0% 16.0% 10% 1.6% 0% Print TV Radio Other Millions Actual income to radio $120 $100 $80 $60 $40 $20 $0 Nepal Uganda Why is audience research important? ? Media - How can I prove that I am better than the rest? A large and diverse media industry in Nepal ~ 370 radio stations ~28 TV stations ~ 400+ daily publications ~2000+ weekly publications Emerging media – internet, mobile phone channels etc. ? Advertisers/ communicators - Which media should I use to reach...? uncertainty Lower advertising spend generally Lower advertising spend on local broadcasters in particular Inability for media to compete transparently Increased corruption in advertising markets The winners and losers of this lack of transparency Mainly losers But some winners • The media overall (most media) • National broadcasters • Non-urban media (local media) • Network broadcasters • Smaller media houses • National print media (high • Broadcast media • Advertisers / communicators circulation) • Corrupt marketing staff /agencies • Direct marketing Samarth NMDP: rationale Income for the rural poor Need for information Need for advocacy platforms • Lack of and poor quality of existing info channels Media Development - Primary focus: local radio • • • Audience research • Importance of radio to rural poor Demand for local information Need for mass information Need to increase revenue to local radio to increase potential for improved programming Paul Haupt – Feasibility study into restarting audience research in Nepal