IREX
International Research & Exchanges Board

New TV rating system impacts on TV advertising

By M. Alkhazashvili
July 26, 2005

A new, more accurate technique for estimating TV viewing figures has been introduced in Georgia that should have a positive effect on both the quality of TV broadcasts and advertising, planners say.

Peoplemeters, electronic devices attached to TV sets, automatically record which channel is being watched at any one time and are thus much more accurate than previously used TV Diaries, whereby a sample group of people are asked to note which channels they watch. Peoplemeters have been attached to TV sets belonging to 180 families in Tbilisi and a further 120 families in six other cities.

The large cost involved in introducing peoplemeters means that only seven TV stations are included in the statistics provided by the new technology.

According to data for the first half of 2005 in published in 24 Saati, the station Rustavi-2 is the most popular with a rating of 5.73 shares. Imedi is second with 3.5, Mze third with 1.41, and they are followed by Pirveli Arkhi - 1.31, Maestro-Evrika - 0.69, 202 - 0.47, and Pirveli Stereo - 0.27.

Three of the most popular TV programs - 'Shabatis Show,' 'Night Show' and 'Sketches of Shabatis Show' - are all shown on Rustavi-2.

The research is a product of IREX's Media Innovation Program who started audience research in 2002 and with funding from USAID, IREX collaborated with the Georgian research company IPM Media to conduct the research.

Last Thursday IREX Media Innovations Program presented results from a methodology audit by the consulting company KPMG that found that Georgia's new TV ratings system meets international standards and that it has very much improved the television advertising market in Georgia.

In May 2004 IREX asked KPMG to review the system. According to IREX, the success of the original diary-based system attracted an international investor, the joint American-Italian venture AGB Nielsen Media Research to launch the use of peoplemeters in Tbilisi.

The more accurate TV ratings are useful for both TV channels and those who want to advertise on TV. It can be expected that access to this data will lead to greater competition between TV channels and an increased effort to improve the service they provide. The ratings also allow stations to charge different prices for advertising slots depending on the popularity of particular shows and time of day.

It is notable that IREX reports TV advertising revenues have grown markedly in recent years, from USD 3.5 million in 2001 to USD 7 million in 2004, and are expected to increase to USD 9 million in 2005.


Reprinted with permission from the Messenger - www.messenger.com.ge