The Creation of the CMRC
Events Oct 10, 2016
The China Media Rating Council (CMRC) recently announced the formal establishment and held its inaugural meeting in Beijing. Founding members of the CMRC include a group of top leading advertisers, service providers, media and agencies across the digital industry: Tencent, iQiyi, Heyi Group, Sohu, P&G, Sina, Hylink Digital, Dentsu Aegis Network, Publicis Group, LeEco, Xiaomi, Cheil OpenTide, and iPinYou. During the first official meeting, members discussed and agreed on CMRC’s constitution and future vision.
The members of CMRC appointed Shengyi Liu, CEO of Tencent’s Online Media Group and SEVP, as council chairman. In his inaugural address, Liu emphasized: Liu added: “In the fast development of China’s media and advertising industry, a healthy industry environment is important for all parties. As front-runners, we are the participants and builders of this industry. We should not only focus on our own profits, but focus on a sense of responsibility.”
He added, “Mutual trust is the foundation of our advertising ecology, and founding CMRC is an important starting point. We hope that all CMRC members connect as a whole, and act as role models of self-discipline and accountability in advertising as well as a platform for our industry’s globalization.”
CMRC’s launch reflects the current status, challenges and demands of the media industry. In this fast-paced world, the definition of media is ever changing. As the Internet diversifies, the restrictions of portal media, content media and display media will further expand. Emerging media types such as social media and mobile media will eventually act independently. While this provides opportunities for more varied media combinations for message delivery, it also brings challenges in unifying media rating standards.
Second, the Internet is constantly “connecting”. Due to media’s informative nature, the process of digitization in the media industry is more accelerated than others. Supported by cutting-edge technologies, the media industry continually drives other industries forward, yet at the same time unavoidably faces challenges in structural optimization and industry integration. This is a business revolution that no other nation has experienced. The process requires finding solutions by trial and error, along with overcoming challenges of standardizing the path, increasing efficiency and minimizing cost.
The evolution of Internet technology has transformed the media industry into a complex environment where infinite ramifications and complicated standards exist. There is an obvious appeal to develop, structure and unify the industry standards, which coincides with the main goals and mandates of the CMRC.
By gathering different interest groups, CMRC will bring several changes to China’s media industry by way of the following aspects:
China has become the second largest Internet advertising market. The market’s diverse and complex environment increases the need for industry standards, technical regulations, and supervision that is both fair and effective. A third party institute can establish systematic industry standards.
Upon the council’s establishment, the research on media rating will no longer be on one company’s individual work. Since the council consists of representative members from the industry, they can break the boundaries of information, integrate the resources of research, and search for a more effective media rating system. These representative companies all have strong adaptabilities toward the changes of business, meaning that the standards of media rating will also change accordingly. A series of dynamic guiding principles will appear instead of falling into a dead zone. Furthermore, CMRC provides a reliable backbone for working mechanism. The research and promotion of media rating will move steadily with the support from member companies and the entire industry.
The advertising market will become more and more fair. As mentioned before, the rise of new media brings larger space for imagination, but also shows the lack of rating standards. For example, it is still difficult to measure the visibility of mobile media and social media. When advertisers are increasing their investment, the puzzle of “Half the money I spend on advertising is wasted; the trouble is I don't know which half” still exists. Media is not able to provide objective benchmarks to prove their value, and the price war to win advertisers hurts the future of this industry. Once the industry standard is set, digital media will be able to speak with their performance, and put the price wars to an end.
The research of CMRC on media standards can not only be used in industry studies, but also provide accurate instructions for future directions. In other words, the CMRC makes use of media information from the past, and sheds light on the prospects of future media.
Values in the media industry circulate among various industries. The media standards proposed by media raters will be widely used in multiple business fields and become quantifiable standards to solve disputes over media effects. For new media such as mobile media, social media and function media, this could become an important instruction, reducing risks of single media efforts and speeding up innovation cycles.
CMRC has received support from media, advertisers, agencies and other companies from the industry, which showcases the responsibility of industry frontrunners and the advancement and accountability of the entire industry.
In the future, CMRC will introduce more authoritative standards, which will eventually be published by the Interactive Advertising Bureau and American Media Rating Council. By adopting these international standards implicates a thought-evolution China’s advertising industry.