MANILA — ABS-CBN is transitioning to a new Cost Per Individual Rating Point (CPIRP) pricing model, which will be based on two months of rolling data from its research supplier Kantar Media.
The broadcaster touted pricing efficiency of the new model for advertisers. “CPIRP builds our accountability to advertisers on quality programming and therefore efficiency in media buying, as pricing is based on our shows’ performance,” said Oz Trinidad, head of Ch2 Sales and sales strategic planning.
As in other regional markets, CPIRP is expected to simplify planning and buying for media agencies, minimizing if not removing the complex negotiation process involved in arriving at the final best deal for clients. Pricing will also be based on a client’s volume buy, which would tie them to specific price tiers.
Media agencies, however, said there was still plenty of ground to cover in the rolling transition, expecting implementation to ABS-CBN’s full vision likely happening in 2016.
In the shift’s interim phase, buyers refer to ratings from a two-month rolling cycle, moving eventually to an actualized model – that is, costings based on ratings as it aired. The move towards testing actualized pricing is expected in the second half of 2015.
Client reaction to CPIRP has been mixed, according to agencies. Some are willing to proceed this year, while others are more cautious. “There are agencies and their clients who still want to see and understand the impact for the full year before we do a deep dive in,” said a media agency. If the regional experience is any guide, the shift to CPIRP will hold vast implications on the back-end and operations for advertiser, media owner and media agency as the model will also involve finance teams of the three parties.
Trinidad said the broadcaster had been doing agency and advertiser road shows and “constant alignment in terms of creating processes and mechanics to make the transition easier for them”.
The Philippines is one of the last markets in Southeast Asia to move to a CPIRP model. “Hong Kong and Singapore have a different media landscape since these are usually regional hubs. In our case, there were feasibility studies and simulations done over the years to check if the same method could be applied to the Philippine market. Resource planning, financial impact, IT system upgrades, and other organizational adjustments had to be mapped out as well,” Trinidad explained.
The shift comes with the launch of digital free-to-air television services, a first for the Philippines. The six-channel launch has raised media agency hopes the market could eventually move to a single data source.
“Besides the convenience and more extensive information, this set-up provides much more stable data as it diminishes potential sampling error with the information coming straight from the TV viewers themselves. And who knows, this might even result to a single data source – with the networks’ collaboration – similar to Australia’s OzTAM,” said Maxus’ trading head Bernadette Morco.
“Digital TV will help pave the way to personalized content and more targeted marketing communications, adding to the richer experience of the viewers. I cannot wait for programmatic TV buying.”
