ISEC: The game-changer A&M industry isn’t ready for

Six months ago, on February 21 to be precise, the Market Research Society of India (MRSI) unveiled the Indian Socio-Economic Classification (ISEC), which was supposed to revolutionize household socio-economic classification.

ISEC is designed to replace the New Consumer Classification System (NCCS), which has been the industry standard since 2015.

NCCS is the proverbial square peg in a round hole, failing to capture the nuanced consumer behaviours of a rapidly evolving market - the reason is it relies on the education of the “primary wage earner” and the “consumer durables” in households. In contrast, ISEC considers the occupation of the “primary earner” and the educational attainment of both the “most educated male and female adults” in the household as key indicators of social capital.

ISEC promises a more precise and insightful classification, which should ideally enable sharper targeting and more efficient marketing spending. In theory, this should have been a no-brainer.

Instead, ISEC has become a case study in stasis, bogged down by industry apprehension. The root of the problem lies not in the ISEC’s theoretical merits but in the palpable fear that it might disrupt the status quo. Broadcasters anticipate potential declines in Television Rating Points (TRPs) if ISEC is adopted.

The Indian Broadcasting Federation (IBDF), tasked with reviewing and implementing ISEC, is not yet ready to adopt the new system. TV channels, General Entertainment Channels (GECs), in particular, are jittery, fearing that the new system could reveal a decline in viewership, especially as women migrate to OTT platforms. This could lead to a domino effect on their advertising revenue.

Their apprehension is not misplaced though. MRSI has not conducted a comprehensive research on viewership trends under ISEC — an area where only BARC holds the keys. This gap is a significant stumbling block, stalling any real progress.

Advertisers, the most enthusiastic proponents of ISEC due to their belief that the flawed NCCS has cost them ad dollars, are also in a quandary. Unless IBDF blinks, nothing can be done. The ISEC, which seeks to change the very basics of household classification that primarily decides TV viewership, can make them more pragmatic towards media investment.

Then there are practical issues to tackle. BARC’s existing survey panels are based on the NCCS. Transitioning completely to ISEC panels would not just be a daunting task but will throw weekly TRP data out of gear. This necessitates a slow transition that could stretch on for months.

However, all these issues could be resolved if industry bodies genuinely commit to addressing them. Complete silence over ISEC is a stark reminder of the Indian advertising and media sector’s resistance to meaningful change.

Since festivals are around, ad money will start flowing in the next few weeks and continue for the next three to four months. The classification issue will go on the back burner until the “ad-drought” hits the industry post-festival.

Many leaders believe that the current ad cycle may not be sustainable in the long run. The media industry is already grappling with challenges due to a range of factors such as the rise of OTTs and digital advertising. Even larger players are resorting to mergers to sustain the pressures.

It’s time for this progressive industry to confront its fears, embrace change, and allow ISEC to fulfill its potential.

(The writer is a Senior Editor and Group Editorial Evangelist at exchange4media; Views expressed are personal)