Tuesday, August 26, 2008

Is it only about Eye-balls ?





Taking off from where Sen and Robin started….


I think it was R Sundar who once told me, chatting over tea at the BCCL office in Government Place East in Calcutta, “circulation has to be built copy by copy - there are no short cuts”. Then there was AD who would never tire of recounting how it took The Telegraph a good 10 years to touch the circulation of the original 'Englishman' of Chowringhee Square, despite the self-destructive tendency of the latter. And, till date the ToI hasn't been able to win the 'catch up' game with TT, as indeed it hasn’t been able to dislodge the Deccan Chronicle in Hyderabad.

But in today's age of SMSs and with PE Investors breathing down one’s neck very few have the luxury of waiting for a decade to build a critical-mass circulation to be regarded as a serious “challenger”. So we have to pump hormones and steroids into a new born to make an Obelix out of it in no time.

The ToI, as always, were the original innovators with their 'invitation price'. The apocryphal story of how the idea struck SJ while passing the Alipore Zoo in a car with PG will go down in the annals of the history of newspapers in India. Then came the 'Jodi' offer which knocked the day-
lights of the competition, who were left with little option but to follow suit in great haste. In the process, as everyone knows, the vendors and the raddi-wallahs made hay while the publishers ( at least one of them) bled to near comatose.

This was also the time when the school newspapers ( the NIE and PACE ) came into play as, by some strange logic, they counted for ABC numbers. A school principal in Delhi once told me about the trouble they had in disposing the old papers – which the students inevitably never carried back home, tho’ it made handsome gratuity for the lower level staff.

Next was the era of deep discounted annual subscriptions and consumer promotions. Taking a leaf out of the magazines, which had long perfected the art of selling subscriptions on the back of gifts, newspapers – by then already infiltrated by the FMCG wiz-kids – began to entice their customers with offers of bed-sheets and tupper-ware. There was one major difference between the magazines and the newspapers – which everyone forgot or rather chose to ignore. In the case of magazines, it was far easier to chose your target audience by using DM (Direct Marketing) techniques. And, since the delivery was through courier or post – and not through the trade – it largely eliminated ‘loss-in-transit’.

The joke doing rounds in the newspaper circles then was – “we also sell newspapers”. I still remember walking into the Calcutta Book Fair in the winter of 2003 and saw a huge pavilion from which people were walking out with watches. Initially, I thought it was a Titan stall only to discover later it was actually of a newly launched national paper and the watches were being given as a free-bee for anyone who signed on for a year’s subscription.

Companies went freely in and out of the ABC as per their convenience. Finally ABC was forced to re-write its rules to come up with a new formula for calculating NPS (Net Paid Sales) to accommodate the big boys of the industry. Bhaskar Das was quoted in an interview saying, India would have moved to free news-papers long ago had it not been for the "raddi economics". Infact, today - if you take the "raddi-value" into account thereader is actually being paid to buy a paper.

I received a telling testimony from my newspaper vendor only the other day. He hadn't come to collect his bill for over 6 months. On asking him why - he frankly admitted, the amount he receives from the company by way of commission and trade schemes ( he didn't mention "raddi") is far more than what he gets from the "grahak" (customer). So it was small change and it no longer mattered to him, if he didn't collect his bills for a few months.


Apparently the model was telecom, where company valuations are based on the number of connections. But, no one seemed to be unduly bothered about the quality of their circulation – like a friend who had joined a telecom major, that was in a tearing hurry to ramp up its number of connections soon after launch, had joked - “we have a clear ABCD classification of our customers – Ayahas, Bai-s, Chauffeurs and Drivers”. No prizes for guessing which company we are talking about here.


In all this – people seemed to totally forget, what now seems like almost a defunct concept, Readership. Initially – people fought over NRS and IRS, choosing what was advantageous for them on that round of the survey. There were front page anchor pieces and lead articles on the edit page written to praise or debunk one over the other . Once, if you recall, NRS was taken to court and its results had to be withheld for months before a settlement was reached. Finally, NRS was put to sleep last year – no one’s certain if it will be resurrected ever again - and IRS, by default, became the limited currency of the industry, which you greet with enthusiasm if the numbers look good for or you trash if they look sick.

Old timers compared ABC & Readership to “clinical (physical) examination” and “blood-test”. A Doctor needed both to tell the health of patient.

Wonder how Media Planners, Buyers and Advertisers decide between publications these days ? Is it only on intuition or gut-feel ? It can’t be simply on how much commission or discount the publication is willing to part with as some cynics would have me believe. I am sure they have developed their own metrics for it.

Perhaps, a friend from the Media Buying Agencies will enlighten us.

But, finally I am left wondering – if Media is supposed to be a “mind-product” (as Goldie defined it) – then can it be only ‘eye-balls’ that matter ? One would assume – that to stimulate the mind you have to read it too. Did I hear someone say – “Reader Connect” ?

3 comments:

Robin said...

Frankly dear, I don’t give a damn..



Hi Sen and Mr. X,

You guys have really got me going. Initially I use to fret over WHY advertisers/ media planners can't figure out this "raddi" copy business and this poor readership surveys. But I have slowly realised, that the media and advertisers do not give a damn about quality of their decisions. Two things matter while they take decisions on media (a) What the boss wants (Incidentally my ex-boss hosts this blog, this is for him - nice way of getting back after all these years) (b) What those bozos in media agencies have planned...with their lop sided logic of OTS/ Reach etc...this holds particularly true for small budget campaigns, in large budget campaigns I believe there is some semblance of logic.

This works all the time and therefore Mr Jain and team do such good business. They figured out this insight first, and executed it with great commitment. And this is the same logic which works in TRP's..and therefore we will be subjected to Saas Bahu serials for the next 100 years, and incidents like Aarushi murder case will get crazy coverage.

When will this stop -> I don't have the faintest idea, but I feel the real challenge will come from companies like Google, Apple, who will significantly alter the media paradigm.. Till then circulation teams will do institutional sales, and subscriptions at less than "raddi" cost. And every six months ABC (All Bullshit in Circulation) will keep getting attention,

Sen said...

Bravo Robin,
You are on the home stretch.
Just a little more "footwork" and the "net" is all your's!
Someone with your depth of insight should not have been "slow" to realise at all.
In India, we've shown a historical tendency to "ape" & "adapt" westren trends / models, roughly with a 20/25 year lag.
Applies to almost everything, apart from the way our country is run.
Why is it that "many" big newspapers are given away free (a la Yellow Pages), abroad?
The cover-prices charged by most deshi mastheads hardly cover anything, anyway! So why charge it at all?
Sandip has indeed very aptly mentioned his vendor's POV.
This reminds me of a very similar incidence (oldies like me are very fond of anecdotes you see), albeit in a very different product category.
Those were the days when ITC, India's tobacco major, got to know about the possible bans on tobacco advertising. And they were naturally groping all the wrong things, in the dark.
Other smaller competitors smelled blood & went on a launching spree! Rothmans King Size was rapidly rolled out aimed directly at the India Kings & Classics. Even VST, technically a sister concern, threw all caution to the smokes & ventured into the premium brands arena with their deshi vesrions of King Sizes & Wills beaters.

As we all know, the underdogs get major support from the aam-aadmi.
So, the Rothmans & the other wannabe Kings got ample shelf space, visibility & support from the pan-shops.

This irked the giant even more.
To add insult to this monopoly threatening injury, BATCO, ITC's parent, refused to let 555 or B&H to be manufactured in India. Unless of course ITC could "prove" that it had the "mettle" to fumigate local heroes out of retail shelves!
Thus begun the great store-merchandising industry in India (that was 1990/91).
With pockets reaching all the way to its pulled up socks, a huge & capable field force and of course many extremely talented top managers, ITC went to battle.
Retailers all over India were mapped & put on street-maps, manually. Ecah was alotted unique codes & relevant commercial data was tagged, against each individual outlet. The exercise took almost 90 days & about 800 of us worked 24X7 to compile the data, digitize them on to a spanking new oracle platform & create tailor made reporting & analysis modules.
On completion, it was almost a child's play to locate any cigarette selling outlet in any corner of the country, with almost current data about its shelf-space, compass-bearing, ownership, disputes, offtake & what not!

Then some of the most brilliant managers, including legends like KNG, Chandu Mishra, (Late)K Ramnath & Mehmood Ahmed, churned out a list of the "most coveted" outlets across the top cities.

These outlets (several 000s) HAD to be ITC's & ITC's only! By whatever means.

Now starts the similarity with today's 3-letter wars in print media!

Outlets were first reasoned with, then coaxed & cajoled and finally "bought out" against huge contracts. I still recall the record sum signed up by the outlet next to Bengal Club, just outside ITC's Kolkata HQ. The ministry of direct taxes will summon me in as a government witness to sugnificantly boost their revenue, if I mention any of the sums involved!
After about 3 months, I was doing a round of a particularly "sensitive" market in Kolkata (as I was heading Kolkata then). Sensitive, as many of our top honchos used to reside in the same neighbourhood (rings any bell now?).
To my surprise, I found a very "expensive" Classic Branded outlet, not having asingle stick of cigarette to sell! Naturally I was fuming & getting ready to blast the sales guys. Somehow, I mustered up some courage (these sensitive retailers could get lowly ITC staff like us sacked real fast, seriously) to "ask" the pan-wallah WHY he did not have any cigarette to sell!


The answer was, as you may have guessed by now "why sell anything when you are already paying me xxxxxx every month? My income, earlier was merely 800-900"?

So, you see, it's quite pointless to "ask" whether the industry leaders (advertisers) or media honchos "know" about the ABCs & NRSs' real worth!

Who cares a damn?

Anonymous said...

Thank you so much for the profound insights I get here. From the editorial point of view (and being a business journo, let us say a I know a bit or two or three about marketing/advertising/strategy as well), I find all my suspicions confirmed, hunches proved.
Sometimes I think circulation needs a new paradigm and the best way is for a new business model in which readers are directly wooed over the heads of two layers of middlemen with vested interests.
I find, ironically, that media buyers are being wooed like FMCG customers -- with a strange mix of relationships and "touchy-feely" promos.