The Importance of TV Ratings

By this time, I am sure that you have already heard about the accusations and counter-accusations of the two competing TV networks (ABS-CBN and GMA 7) on the issue of the tampering of the TV ratings. For the past couple of months, the two giant networks had bombarded the airwaves  with their versions of the case. I came across a very wild comment on the matter from a letter writer to the editor of the Philippine Daily Inquirer who felt that the issue is being used by the two networks to further bolster viewership on their shows! Lately, the court ordered the networks to stop airing their accusations and counter-accusations on the case. And so as not to be cited in contempt, I am not going to comment  on the case since it is already in the sala of an honorable court of justice in Quezon City. I would rather leave it to the court to come up with its ruling based on its merits.

Instead, I would enlighten you on the importance of the TV rating for as far as the TV networks are concerned. I would try to expound the answer on why would the TV networks do everything just to get high ratings for their shows.

Just like any business enterprise, perhaps with the exemption of the government networks, commercial TV networks are producing TV shows in order to realize revenues from commercials/advertisements. A 30-second television commercial (TVC) on a prime time TV show (that is, TV shows aired between 7:30 pm to 10:00 pm.) would fetch a price of P250,000.00! As we sit comfortably in our living rooms watching the prime time shows for free, the likes of the Jollibee, Mc Donald’s, Alaxan, Pantene and Palmolive are footing the bill for us!

Since advertisement costs are not peanuts, the companies usually rely on the services of advertising agencies to handle the placements of advertisements on a particular TV shows.

In turn, the advertising agencies rely only on ONE THING as to which TV shows are they going to place an advertisement and that is: the RATINGS being measured by AGB NIELSEN.

Why? Because the assumption is that the measurement of the rating of AGB NIELSEN is God’s truth, that it is accurate, meaning that the rating determines the number of viewers watching a particular TV show. Remember that the companies would want their products to be in the memories of the consumers/viewers, we call it “PRODUCT RECALL”.

Product recall is important in order that once the consumers/viewers will be in a buying mode where he is in a situation when he is about to decide what product to pick up in a shelf of a supermarket, or to ask for a pain killer for a salesclerk in a drug store or to stop for a quick merienda, their product will be in the mind of the viewer, and that it will be picked up or bought by the consumer/viewer. The TV commercials are believed to be a major contributor in instilling in the consciousness of the consumers/viewers to have that product recall.

Thus, the advertising agencies and the companies would want to place their ads on the TV shows that have the most number of viewers  watching a TV show based on the rating of AGB NIELSEN.