Major hurdle cleared for IRS: Cost-sharing formula finalised

The ball is set to roll for the Indian Readership Survey (IRS) as newspaper owners have reached a decisive agreement on the cost-sharing formula, effectively resolving a prolonged deadlock at the Media Research Users Council India (MRUC India).

“The media owners have agreed to apply the same cost-sharing formula for the upcoming IRS as was used in the 2019 survey,” Padma Bhushan Hormusji N. Cama, former chairman of MRUC, told e4m. The cost share in 2019 was decided based on the print circulation.

Cama, who is also the Chairman and Managing Director of Mumbai Samachar, added, “It will still take about a year to get the survey.”

The MRUC has not yet fixed a deadline for media owners to deposit their contributions. After receiving the funds, the Council will issue a tender to select an agency to conduct the study, which will take another 6-9 months to complete.

The cost of the survey is expected to be higher than the approximately Rs 20 crore spent in 2019. The final amount will be determined once the bids are solicited.

e4m has previously reported that the Council’s technical committee proposed several methodologies during the August 12 meeting. The discussed parameters for cost-sharing included turnover, revenue, and circulation. Due to the lack of a consensus, the board decided to consult India’s top 25-30 publishers.

The MRUC has so far struggled to reach a consensus on the cost-sharing formula, with disagreements stemming from using circulation figures as a determining factor. Notably, circulation numbers for many newspapers have declined in recent years as readers have been increasingly turning to online news sources.

IRS stuck for five years

The last IRS was conducted in 2019. The survey was suspended in 2020 and could not be resumed, initially due to the pandemic and later because of cost concerns and waning stakeholder interest. Many newspapers, particularly English dailies, continue to struggle to reach pre-pandemic levels in both circulation and revenue.

The IRS, conducted jointly by MRUC India and the Readership Studies Council of India (RSCI), was once regarded as the world’s largest continuous study, with an annual sample size exceeding 2.56 lakh respondents.

Crucial for advertisers

Readership data is crucial for advertisers, as it guides their decisions on which print publications to target. IRS provides insights into India’s print and media consumption, demographics, product ownership, and usage, covering over 100 product categories within surveyed households.

In a landscape increasingly dominated by digital platforms, print media houses are facing mounting pressures to adapt. Several newspapers have reduced their circulation by 15-20 per cent and closed loss-making editions in a bid to enhance profitability, industry insiders say.

Although there has been a recent uptick in print ad revenue, it is largely attributed to falling ad rates rather than an increase in overall marketing spends of brands.

Print media, despite its enduring relevance, currently captures only 20% of India's advertising spend, a stark contrast to the 44% commanded by digital platforms and 32% by television.

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