Presentation by Dr Paul Haupt Bonn, Germany 7 November 2014 The purpose of the feasibility study was: To identify the reasons for the failure of the previous audience research service. Appraise the commercial viability of different models to re-establish audience research services. Make recommendations for the resumption of sustainable commercial audience research in Nepal. 2 What are the options: Although it seems as if there are a number of potential models for the resumption of audience research in Nepal to be considered, there are really only two choices for the industry to consider. The industry must decide whether they: 1. Want to control their own future as far as media ratings are concerned or 2. Are prepared to leave it in the hands of a research company. 3 Industry stakeholders including advertisers, advertising agencies and media owners invest in the set-up of an industry owned media audience research organization. Ratings are produced under the control of this independent, professional, non-profit organization that belongs to the industry. Industry players decide together how the research must be carried out. The industry decides together which research company must be used to produce the ratings and they sign the contract with the research company. 4 The research is carried out as per the industry’s specification and everything is in the open and in the public domain so that everyone has a full understanding of how the ratings are produced. The research is monitored and managed by the industry and if issues arise, they are handled by the industry. All industry stakeholders are involved in the ratings organization and therefor there is buy-in from everyone. This means that everyone has trust in the ratings and it is used by all as a common currency for trading purposes (buying and selling of media space and time). 5 The research is funded by the industry in terms of an agreed funding model and stakeholders must commit for a reasonable period of time e.g. a 3 or 5 year period. The research results are owned by the industry and not the research company and it is this body that decides how and when the data is made available. The biggest single advantage of this funding model is that all the data is in the public domain so that everyone in the industry will have free access to the data as it has already been paid for by the percentage levy. This also ensures that the data becomes a true currency for the whole industry used by everyone. 6 A research company decides to venture into the field of currency research and recruits clients from the advertising, media and advertising agency sectors to buy the ratings data. The research company decides how the research will be conducted and what information will be released to clients. Because individual clients have no leverage, the research company can ask virtually any price. Important aspects of the research are regarded as proprietary and therefor a “black box” and clients do not know how the ratings are produced. 7 Clients have little or no say as it is a commercial venture and the data belongs to the research company who carries the risk and can do what it wants with the data. Data is unaffordable for many stakeholders and thus not a true currency for the whole industry used by everyone. Despite attempts to control the distribution of the results to nonsubscribers, data is passed on the many users who did not contribute and this data theft undermines the viability and long-term sustainability of the venture. 8 Thank you Visit us at www.pamro.org