GMA Protest Against ABS-CBN and AGB-Nielsen Research

ABS-CBN & AGB Nielsen's Response to GMA's Protest

Greetings from ABS-CBN!

In the past few days, you might have come across a letter signed by a GMA Marketing and Productions executive addressed to clients – advertisers and agencies like yourselves. This letter challenges the integrity and professionalism of AGB-Nielsen Media Research, the industry’s ratings provider, and ABS-CBN, the country’s leading broadcasting group.In the face of a rambunctious competitor over the last few years, we have opted to keep our silence, choosing instead to focus on improving our content and enhancing our service to our clients. We believe that you, our valued clients, have been witness to the fruits of our efforts in improving our hold over our audience and bringing delight to you through our efforts to give client-oriented servicing.However, given this letter that directly questions our company’s integrity we believe that it is time for us to respond.On The Issue of Cable vs. Non-Cable RatingsOur competitor has raised the issue of the difference between cable and non-cable ratings saying they find it difficult to believe that there would be such a big difference in the viewing of programs in households from these two groups.Their lack of understanding comes from their stubborn assumption that there are no differences in the situation of viewers whether they come from cable or non-cable homes.There are many demographic and other variables that make the situation of viewers from cable different from those of non-cable homes. We would also like to add, that similarly, there are differences in the situation of viewers from Metro Manila and the Suburbs.One of the significant differences that define cable or non-cable and Metro Manila or Suburbs viewers has to do with the low-band frequency of ABS-CBN. The signal of ABS-CBN goes through Channel 2, this is the lowest among low- band channels. All Channels from 2 to 6, because of their low-band frequency are vulnerable to noise such as those generated by use of electricity and telecommunications activity. Noise generated does not generally interfere as much with the reception in areas in Metro Manila which are closer to our transmission tower, but they interfere with reception (making it snowy or distorted) in areas further away such as the suburbs. With the increased use of electricity and telecommunication equipment in the past few years, the noise generated has become significant. Thus you will note that ABS-CBN performs significantly better in Metro Manila than in the Suburbs.Even in Metro Manila given its size, the reception of Channel 2 is not completely immune to noise, especially houses located in the fringes (north and south). However, among cable homes, the connection through cable, takes away the vulnerability of ABS-CBN’s reception from noise, especially in instances when ABS-CBN is assigned to a channel 8 (in Destiny, ABS-CBN is still assigned to a low-band channel 6). Thus, among cable homes, the playing field is level – ABS-CBN’s reception is equal to that of any high-band channel. With a level playing field – the only variable now becomes quality of content.In Metro Manila where the handicap of a low-band channel is not as great as the suburbs, you can see our performing significantly better than in the suburbs. Among Cable homes where the playing field is level – you see the proof of our superior content.We have always known that given our single mindedness in improving our content, our performance will shine on a level playing field. We see this also in Iloilo City. For many years in the past, we have lost to competition in Iloilo because the signal reaching Iloilo came from Bacolod, making it weak and putting us at a disadvantage in terms of reception quality. However, once we put up our transmitter in Iloilo in the 4th quarter of 2004, we quickly dominated the area.What ABS-CBN is Doing About Issue of ReceptionThe issue on ABS-CBN reception is limited to areas that are serviced by our Metro Manila transmission tower. These are basically fringes of Metro Manila and the suburbs. However, outside these areas where we have relay stations and local transmission towers, we perform very well.We have both short term and long term plans to address the issue of reception in the fringes of Metro Manila and the Suburbs. We have done communication campaigns for correct antennas. You will have noted our plugs for “Baron” antennas. These types of antennas address the noise issue and give us level playing field. We have done antenna drives (even given free antennas) in some areas. However, the long term solution to our reception issue will come from our introduction of Digital TV. We will be introducing Digital TV starting next year. Under this platform, the issue of reception will become moot.On ABS-CBN Having Prior Knowledge of RatingsOur competitor alludes to a text message sent out by one of our Sales Executives to a few friends that seemed to indicate that we have prior knowledge of ratings.The ABS-CBN executive did NOT have prior knowledge of the overnight ratings for October 4. The executive sent an informal (not an ABS-CBN release) text to a few agency friends on Thursday (Oct. 5). Inadvertently thinking that both Tuesday and Wednesday ratings were out, she referred to the data on hand as ratings for Tuesday and Wednesday. For the record, the only data available on Thursday was data from October 3 (Tuesday). The Wednesday and Thursday numbers came out on Friday (Oct. 6).There was no advance information. No mole unfairly leaking ratings results to us. The Sales Executive has already apologized profusely for her mistake, which inadvertently seems to have led to such an irrational response.Issues with AGB-Nielsen Media ResearchOur competitor raises the question of over sampling of homes defined by certain demographic variables including cable homes. The AGB-Nielsen Media Research panel over samples the AB and C homes in order to allow advertisers targeting the upper and middle class ability to plan their media campaigns adequately. Because of over sampling for the upper and middle class, there is in effect over sampling of cable homes since the incidence of cable subscription is higher among these classes.Over sampling based on some key demographic variables, as long as there is proper downweighting upon data processing to correct it, is an acceptable statistical practice. The core sampling design that went into the establishment of this panel was approved by the industry’s Television Research Council (TVRC).We too have our issues with AGB-Nielsen Media Research. But when we have issues, we discuss these with them and show them solid analysis to support our claims. Almost a year ago, we approached AGB with proof, based on a credible third party research, that their Cebu panel was no longer showing results that represent the truth. They made their own independent check and survey. Upon establishing that not so ideal actions from another party resulted to their panels no longer representing reality, they closed down their provincial panels. They have since put up a new panel in Cebu, and among those of you who have seen the results from their new panel in Cebu, you will see proof that ABS-CBN has never lost its dominance in Cebu.We have other issues with AGB-Nielsen Media Research and we continue to discuss these with them. We do not believe though that a hysterical response will better resolve issues than analytical discussions.We know that not all our issues with AGB-Nielsen Media Research might be resolved, and we have in fact been the first to sign up with another third party for national TV ratings. If we had a mole in AGB, we would not have initiated the entry of another TV ratings provider.ABS-CBN Focused on Improving Content and Better ServiceOver the last few years, we have listened to our audience more, tried to understand them better, and improved our content.In Metro Manila, where our reception handicap is not substantial, you will see the great strides we have made given the response of our audience. We lead in the rest of the Philippines.We have also gone back to solid/fundamental programming – providing our audience with programs that make them feel, look inside themselves, think about their values and celebrate their humanity. You will see this in the breadth of our offering which is aligned with our mission to Serve the Filipinos and not pander to their escapist tendencies.Look at what we have achieved. We are competitive among the highly sought after female 20+ who affirm themselves and their values with such powerful offerings like Bituing Walang Ningning, Sa Piling Mo, Maging Sino Ka Man and MMK. Filipinos from all walks of life find embracive acceptance in Wowowee. We are helping raise better children by bringing value laden programs like Wansapanatym, Noypi, Super Inggo and Pedro Penduko. Young and old examine themselves through lives reflected in Pinoy Big Brother and Pinoy Dream Academy and find thrill in seeing people test their limits in game shows like Pilipinas Game Ka Na Ba and Kapamilya Deal or No Deal. Empowered males (who are more likely employed) respond favorably to empowering Current Affairs shows like XXX and SOCO and content driven news programs like TV Patrol World and Bandila.And we have achieved all these because our will to serve is guided by our principles of Honesty, Integrity and Professionalism, and supported by our value of Partnership.Our valued clients, we continue to affirm our commitment to service – to the Filipino People and to you. We in ABS-CBN take our values seriously. We can do no less for we are the network – In the Service of the Filipino Worldwide.

Maraming Salamat po.

Very truly yours,

JOSE AGUSTIN C. BENITEZ, JR.

Head, ABS-CBN Channel 2 Sales

-------Letter from AGB Nielsen Media Research November 3, 2006--------

To our valued partners in the industry:In a letter dated 16 October 2006 sent to advertisers and media agencies, GMA Marketing & Productions President & COO Mr. Manuel P. Quiogue expressed GMA’s “critical concerns” about our television ratings data.The focus of GMA’s “critical concerns” was the big difference in the viewing of certain GMA programs between cable and non-cable viewers and between Sky Cable/Home Cable subscribers and other cable companies’ subscribers.Time and again, we have explained to GMA what we think are the possible causes of the aforesaid difference in viewership. As early as 2003, we gave our response to the Television Research Council which managed the study for the industry and gave its own response to GMA.We even consulted GMA in 2005, along with other partners in the industry, when we set up a new audience measurement panel for Mega Manila following the merger with Nielsen Media Research. Significantly, even after 100% of all cable panels were replaced, the data differences for cable viewing remained approximately the same.Understandably, there will be occasions when not everyone will be pleased with our TV audience measurement results; some will be very disappointed. But on other occasions our broadcaster clients can be very happy with the ratings data. Interestingly, those same broadcasters never question the results when their programs perform well.We stand by the integrity of our data. AGB Nielsen Media Research abides by the Global Guidelines in TV Audience Measurement (GGTAM) endorsed by expert practitioners in television audience measurement worldwide. Our reputation as the world leader in TAM has been built on a commitment to independence, reliability and transparency. We will not change our data to assuage the concerns or suit the needs of any client.Mr. Quiogue’s letter stated there was “cause for alarm” and referred to a text message allegedly sent by an ABS-CBN sales executive reporting, even before we released our Oct. 4 data, that ABS-CBN’s programs beat those of GMA’s. In his letter, Mr. Quiogue claimed:“Interestingly, when the ratings for Wednesday were released two days laterwe were surprised to see that the ratings cited by the ABS-CBN sales executive were substantially correct.”As subscribers to the same data, you can validate for yourselves GMA’s claim. I reiterate and confirm what I said in my email reply to Mr. Quiogue, and I quote: “ABS-CBN’s claim that they have the October 4 data is absolutely false as we haven’t released any data yet and have only started to produce it today…”As you may know, we launched the AGB Nielsen Media Research NUTAM service on 26 October 2006—the same day GMA’s letter (dated 16 October 2006) was reportedly sent to advertisers and media agencies.The NUTAM (National Urban TV Audience Measurement) service provides the industry with an expanded panel across 90% of the national urban regions of the Philippines, which effectively gives its users a clear picture of viewing outside Metro Manila. This changes the television landscape and the manner in which advertisers will allocate their TV investments to achieve cost efficiency and maximize reach. With this larger geographical measurementcoverage, a greater level of accountability and confidence in television as a primary advertising medium is achieved.The NUTAM service is a testament to our steadfast commitment to deliver an improved television audience measurement service. It ensures that the advertising industry in the Philippines benefits from the world’s best practice in TAM research.We measure, and report. Nothing more, nothing less.AGB Nielsen Media Research will protect and defend its reputation to the full extent of the law.Thank you.

Yours sincerely,

MAYA F. REFORMA

General Manager

AGB Nielsen Media Research Phils. Inc.

99Source: http://www.rgcruz.com/?p=300