The JIC Picture

MEDIJSKA MJERENJA I ISTRAŽIVANJA ZAGREB 2015

FINANCIAL ASPECTS OF TVJOINT INDUSTRY COMMITTEES (JICs)

Christopher O’HearnGeneral Manager, Emirates Media Measurement

and Project Director, 3M3A

CHANGE

Building a JIC is a change process

Build coalitionWHO

Create VisionWHAT

Establish CaseWHY

CommunicateCLARITY

Enable Action, Clear

ObstaclesHOW

Score GoalsWINS

Sustain Change

CONTINUE

Cement Change

END STATE

Create a stakeholder body or JIC, whether formal or informal

• Legal structure, business plan, operations

Determine a general specification and options for an audience measurement system

Pilot and testing by interested vendor(s)

Tender, contract award and negotiation

Project implementation (including establishment survey)

Technical testing and signoff

This journey may be two years

The Roadmap

Classic JIC StructureOwners’

Board

TAM Brand

Operator

JIC – Joint Industry Committee of owners and shareholders provide

board level management and funding

‘Public’ entity to sell data, manage operator and represent to industry

Contracted to manage panel and produce data.

Industry Board & Technical Committee

Media, agencies, clients, govt, for support and

consultation

Industry Clients

No direct relationship between clients and

operator

TAM Governance TypesJIC – Joint Industry Committee

• Formal entity with representatives of broadcasters and agencies, sometimes advertisers

• “The principle of Effective Industry Consultation is inherent to a JIC”

• Ensures user/customer-led methods and access

MOC – Media Owners Committee• Typically broadcasters who guarantee funding and draw up

specifications• Agencies and advertisers play consultative or technical roles

Owned Service• Operator or research agency runs the system

• Usually with some certainty of market support and non-competition

Source: GGTAM

• Effective Industry Consultation

• Meeting total market needs

• Full disclosure• Fair and open access

Some Basic Principles

(Source: Japan Audience Measurement Report; Syfret & Ruud for CASBAA; 2013)

Typically $2000-2500 per HH p.a. i.e. $2m per year

Cost of TAMCountry Universe Homes Panel HHs Panellists Ratio

Norway 4.6m 2.1m 1060 2,300 1:2000

Czech Republic

9.9m 4.1m 1850 4,500 1:2200

Finland 5.1m 2.2m 1100 2,550 1:2000

UAE 6.0m 1.8m 850 2,800 1:2100

Sth Korea 46.2m 17.3m 4320 11,500 1:4000

UK 57.6m 26.5m 5800 12,600 1:4600

Croatia 4.5m 2m 980 @ 2.3/HH

2,250 1:2000

Case for growth – introduction of electronic TAM in Pakistan 2007

2000 2007 2015

No. of TV Channels 2 23 42

TV Ad Spend (USD Mill) 50 150 400

3M3A Survey for ABC17 Countries

AustraliaCanada

Czech RepublicFinlandFrance

GermanyIndia

IrelandLebanon

NetherlandsNorwayPakistanRomaniaSweden

SwitzerlandUAE

United Kingdom

We asked about…• Media coverage• Type of entity• Age and Size• Ownership• Source of funding• Division of funding• Technical committee• Control• AuditingAdditional Information: Japan Audience Measurement Report; Syfret & Ruud for CASBAA; 2013

Types of Entity

JICS (or TRCs)UK

SwedenNetherlands

CanadaLebanonIrelandCzechFrance

SwitzerlandIndia

RomaniaGermany

UAEHong Kong*

Italy*Sth Africa*

* = Source: JAMR Report; Syfret & Ruud, 2013

MOCsAustraliaNorway

Philippines*

Owned System FinlandPakistanJapan*

Malaysia*Poland*Russia*

South Korea*Spain*Taiwan*

Thailand*US*

16

11

3

JICs tend to be European but there is no single model

Coverage & Structure

17

4

4

Years20+

710-20 5-10 5

Size20+

610-20 3-10 8

OwnershipAll media, agencies10Principal media

3Industry bodies

2Suppliers

2

Industry bodies tend to represent non-broadcasters i.e. agencies and

to a lesser extent advertisers

Finance by Owners

76%

Average Amount of Owner Funding

Wholly/Mainly owner funded11

Partly owner funded3

Broadcaster Funding

Market Share7

Fixed or Flat4

AUS, FIN, CZE, UAE

Agency FundingMarket Share

2

Fixed or Flat3

Industry Body2Establishing a JIC requires a long-term

commitment for owners to underwrite

Finance by Subscription

56%Subscription

Average

More than 50% subscription2

50% or less3

Broadcaster Subscription

Viewing Share 5

Ad Share2

Agency Subscription

Market Share 5

Fixed or Flat 4Advertisers (Fixed)

5

• Excludes OS (2) which are wholly market funded

Subscription revenue tends to be supplementary

GovernanceAll had a general technical committee or advisory

group• Including Owned Services

Control and Decision Making• Rests with owners (16)

except in Ireland• Wider groups shared

control in 3 cases (Ger, Leb, Ire)• 16 included broadcasters, only Lebanon excluded them

• 12 included agencies• Norway, Pakistan, Czech did

not include agencies• Switzerland and UAE

included external advisors• 9 included advertisers• 1 (India) included a regulator

Auditing is a mixed picture• 10 had external audit• 6 had a mix of external

and internal• The UK has a permanent

audit function

Audit Frequency• 10 ongoing or continuous

(incl UK)• 3 regular longer than

annual• 4 occasional

Conclusions

There may be no right, but there is no wrong !

European countries have gravitated to JICs

The market expects owners, mostly media players, to bear

70-80% of costs over the life of the system

Advertisers are unlikely to be directly involved

Management of all stakeholders is essential

There is no single universal model for TAM or even JICs

Agency involvement and contribution is highly localised

Christopher O’Hearn

[email protected]

www.tview.ae

+971 52 983 0803

[email protected]

+44 7980 300 951

www.3m3a.com

November 17, 2015