The ratings debacle

WW: What do you think about the debacle in general?

Brigitte Gubser, CEO ZenithOptimedia: The whole situation is highly unpleasant. The bad thing is that it needn't have come to this. With such major projects, things can quickly go wrong or take longer than planned, and we consider it highly negligent that no contingency plan was in place. Parallel operation of the old panel would have been a clean option for a transitional period in order to calmly eliminate the "teething troubles" of the new system.

Axel Beckmann, CEO MediaCom: Now everyone should calm down again. Everything has been said on the subject - even by people who normally never speak out (for good reason). Publicadata and the external auditors must now be able to do their job in peace, so that there are no further delays. The most important thing is that we have valid data at the end of March that is accepted by everyone.

Manfred Strobl, CEO OmnicomMediaGroup: The renewed delay in data release is a disaster for us. We assume that by the time the data is released at the end of March/beginning of April, around CHF 450 to 500 million of TV advertising print (gross) will have been placed in the market without control. Our customers have demanding targets with their TV campaigns. Without controlling the performance figures, we cannot check whether the targets are being met. We are eager to see what Mediapulse's position on this issue will be, who will be responsible, and what consequences will be drawn.

Monica Jäggi, Konnex: It was foreseeable that the introduction of a new TV measurement system would not be without problems. However, the fact that the problems took on such major proportions is - to put it mildly - surprising and incomprehensible. Kantar was chosen because it has experience in complex and small TV markets. It would be reasonable to assume that the company would be able to set up a panel in such a way that this small-scale nature could also be represented. Not to mention the technical problems of correctly assigning the acoustic measurement values. After all, it has not only been known since today that there are, for example, several stations that transmit the same program. The fact that individual broadcasters are now doubting the new surveys because they are noting major deviations from last year's data does little to strengthen confidence in the new figures. In view of the whole debacle, it would certainly have been more than sensible to keep the existing Telecontrol system running in parallel. But as we all know, hindsight is always the wiser. If the new metering system had worked right from the start, there would suddenly have been two currencies in this case. This would also have led to major discussions and uncertainties.

Urs Schwander, Head of Electronic Media Mindshare: The first delay was actually foreseeable for us and therefore not surprising. The only people who believed in a problem-free introduction of the new panel were probably only the people from Mediapulse. The further delays were then unpleasant. From our point of view, however, the path Mediapulse has taken is the right one. It is important that all TV market participants accept this new currency and can stand behind it.

What does that mean for your agency's TV planning?

Brigitte Gubser: At the moment, our hands are tied, but as soon as the data are published, very strict weeks are coming up. We have to quickly process all the ex-post analyses that have been pending since January and compare the performance figures with the planned figures. Then we have to talk to the marketers immediately about any performance compensation. In addition, it will probably be necessary to adjust numerous prebookings already released for the second half of 2013. This means a considerable additional expense for us, and one has to ask the legitimate question of who wants to pay for it!

Axel Beckmann: TV planning is not affected too much by this at the moment, because MediaCom creates the planning with its own forecast data anyway. Of course, we'd like to compare these with the actuals, but unfortunately that's not possible right now. That's not a big drama for a manageable period of time, but it shouldn't take longer than the end of March.

Manfred Strobl: Our business processes are massively impaired as a result. Our customers associate the release of data with the demand for the fastest possible delivery of the performance values. The concentration of the evaluation work in such a short period of time (after data release) means massive additional work for us.

Monica Jäggi: Planning and purchasing of the campaigns in the first half of the year still followed the usual "pattern". However, due to the lack of audience data, we do not have any means of checking the campaign development and initiating any corrections. At the moment, this reduces the effort required for campaign management. As soon as the TV data is available, the effort will of course increase massively. This is because not only will the campaigns of the first quarter of 2013 have to be analyzed within a very short period of time, but general market analyses will also have to be prepared in order to optimize the current campaigns and also to prepare the planning for the second half of 2013.

Urs Schwander: We plan blindly with the info we have, hoping for a safe and pinpoint load. Because we lack the navigation system, an important working tool for us during the campaign period. We can only make very limited campaign optimizations. Which is actually not acceptable. Who would want to fly in an airplane without navigation? It becomes problematic when there are delays for the second half of the year. The plan is to send data to the agencies on April 8. If everything goes optimally, that is shortly after the 2013 figures are published.

How do your customers react?

Brigitte Gubser: The entire market is very unsettled. Unfortunately, neither we nor our customers have any effective means of exerting pressure to force the publication of the data. But we are putting pressure directly on Mediapulse, because there is nothing to be said against immediate publication - there will be no other figures either way.

Axel Beckmann: Very different. We have the whole range from very relaxed to very excited.

Manfred Strobl: Our customers rightly react with complete incomprehension and check individually with their legal departments what options are available to them.

Monica Jäggi: Of course, none of our customers are happy about the fact that we are currently planning and accompanying TV campaigns blind-folded, so to speak. However, they see the whole thing quite pragmatically. They - like us - are convinced that the campaigns are working and supporting the achievement of the marketing and communications objectives, even if it is not possible at present to ascertain how high the media performance of the campaigns is.

Urs Schwander: The reaction of customers in the run-up to the changeover was fiercer than that to the current development. Last year, customers and we complained about the lack of dual operation. Not only because of the assurance of the numbers, but as an aid to better understand the new currency.

Do you or your customers reserve the right to take legal action?

Brigitte Gubser: We're leaving that open at the moment and will decide that in due course.

Axel Beckmann: We think this is unnecessary at the moment. The stations are performing, even if they cannot be evaluated at the moment. There will be winners and losers. In the case of over-delivery, this is free for our customers; in the case of under-delivery, all marketers have given performance guarantees, so that customers are well protected.

Manfred Strobl: There are customers who are currently considering legal action. In our view, it is an omission not to make the data - whose collection methodology and fundamental accuracy is probably no longer disputed - available to the customers' agencies.

Monica Jäggi: At present, nothing is planned in this regard.

Urs Schwander: No.

Survey: Pierre C. Meier