The Advertising Business in India
The TRP Scam
How allegations in 2020 that some channels bribed meter households to inflate ratings exposed weaknesses in audience measurement, and what changed afterwards.
In October 2020, Mumbai Police alleged a TRP scam.
The allegations
- Some channels allegedly paid households with BARC meters to keep their TVs tuned to certain channels.
- This inflated ratings and ad revenue.
Response
- BARC paused weekly news channel ratings for over a year.
- Investigations and court cases followed.
- The government reviewed rating guidelines.
Why it happened
- Small samples: a few manipulated homes can shift ratings.
- Big money at stake in ad revenue.
- Weak security around meter household identities.
Reforms
- Proposals for larger samples and return-path data from set-top boxes.
- Stronger oversight of measurement.
- In 2024-25, the government proposed amendments to allow more rating agencies and improve measurement methods.
Economic lesson
When a metric determines payments, people have incentives to game it, an example of Goodhart’s law: when a measure becomes a target, it ceases to be a good measure.
The bribed household
A family with a ratings meter is allegedly paid a few hundred rupees a month to keep a certain channel on, even when they aren't watching, inflating its ratings.
Thinking ratings can't be manipulated
Small samples made manipulation possible.
Key takeaways
- In 2020, police alleged channels bribed meter households.
- BARC paused news ratings for over a year.
- Small samples and big money enabled gaming.
- Goodhart's law explains the incentive to manipulate.
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