The Advertising Business in India
TV Ratings and How They're Measured
How TV viewership is measured in India through BARC's meters, why ratings determine ad rates, and the limits of sample-based measurement.
TV channels earn most of their money from advertising. Ad rates depend on ratings.
BARC
The Broadcast Audience Research Council (BARC), set up in 2015, measures TV viewership.
How it works
- Meters installed in a sample of homes, over 50,000 households, detect which channel is playing.
- Data are used to estimate viewership for the whole country.
TRP
Ratings are often called TRPs (television rating points). Higher ratings mean channels can charge more per ad second.
Ad pricing
TV ads are sold per 10-second slot. Prime-time slots on popular shows or live cricket cost far more.
Limitations
- Small sample relative to India’s hundreds of millions of TV viewers.
- Out-of-home and mobile viewing not fully measured.
- Vulnerable to manipulation if meter homes are identified.
Economic importance
Because ad money follows ratings, measurement accuracy affects billions of rupees in ad spending.
A popular reality show's rating rises. Its channel raises the price of 10-second ad slots, earning more from each episode.
Many rely heavily on ad revenue linked to ratings.
- BARC measures TV viewership using meters since 2015.
- Ratings determine ad prices.
- Ads are sold in 10-second slots.
- Sample size and manipulation are concerns.
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