COST COMPARISON BOOK

MEC www.mecglobal.com A GroupM Company

COST COMPARISON BOOK

CENTRAL EASTERN EUROPE – 2010

CONTENT

Introduction ................................................................................................................. 3

Map of Central East Europe ....................................................................................... 4

Methodology ................................................................................................................ 5

Television............................................................................................................................................ 5

Print ..................................................................................................................................................... 5

Radio ................................................................................................................................................... 5

Outdoor ............................................................................................................................................... 5

Internet ................................................................................................................................................ 6

Economic data ............................................................................................................. 7

Global trends of CEE markets............................................................................................................ 9

Austria ........................................................................................................................ 13

Bulgaria ...................................................................................................................... 14

Croatia ........................................................................................................................ 15

Czech Republic.......................................................................................................... 16

Estonia ....................................................................................................................... 17

Hungary ...................................................................................................................... 18

Latvia .......................................................................................................................... 19

Lithuania .................................................................................................................... 20

Poland ........................................................................................................................ 21

Romania ..................................................................................................................... 22

Russia ........................................................................................................................ 23

Slovakia ...................................................................................................................... 24

Slovenia ..................................................................................................................... 25

Serbia ......................................................................................................................... 26

Ukraine ....................................................................................................................... 27

Introduction

We are glad to introduce the fourth issue of CEE Cost Comparison Book. Some introductory thoughts before going into details:

Last year’s spectacular, negative shift of media spending and price changes is clearly due to the impact of the recession. Each country suffered from the economic crisis. In 2010, the ‘first year’ after the deep recession, media market of different countries no longer develops uniformly.

It is interesting to observe how different countries, even various media types are trying to break out of this negative price spiral. In many cases, the recovery goes off along distinct trends, since this depends on who and how deeply was affected by the recession and how has the situation of each market changed during the crisis.

Nevertheless, we cannot forget that analysts are not excluding the possibility that CEE region may receive a ‘W’ shaped recession.

CEE Cost Comparison Book covers 15 countries (Austria, Estonia, Latvia, Lithuania, Russia, Ukraine, Poland, Czech Republic, Slovakia, Hungary, Slovenia, Croatia, Serbia, Romania, Bulgaria), contains data about general economics, total market advertising spending, 6 target groups (18+ (adults), 18-49, Main Shoppers 18+, Young Adults (15-24), Upmarket (25-49 ABC), Businessmen (Top 5%)) and the CPTs and CPPs are calculated on Net-Net (prices after deducting discounts and agency commission).

We hope that the refreshed CEE Cost Comparison Book will be a useful information source and a great help for our clients, partners and colleagues.

Map of Central East Europe

MEC Romania

MEC Russia

MEC affiliate Latvia

MEC affiliate Estonia

MEC affiliate Bulgaria

MEC affiliate Lithuania

MEC Poland

MEC affiliate Croatia

MEC affiliate Serbia

MEC Slovakia

MEC Czech Rep.

MEC Hungary

MEC Austria

MEC affiliate Slovenia

MEC Ukraine

Methodology

Last year’s methodology has not changed significantly, it was proposed by MEC MediaLab Hungary, partly based on Global Cost Comparison. We have refreshed and expanded the methodology description with the new media-types. All prices are calculated in EURO, as most of the countries are part of the European Union and are aspiring to join the Euro Zone soon.

Television

Television is one of the most difficult media, because here is the widest gap between the lowest and the highest CPP, mainly because of the size of the clients. All costs are based on 30sec cost/GRP which is the most common way of calculating TV price in this region. We think this book must be consumer (advertiser) centric, so the TV CPP is defined on the cost of a midsize client – entering as a very new advertiser the TV market, and has no prior history on the market – with an average day-part and channel-mix. The midsize client definition was specified by the local agencies.

Print

Different CPTs were calculated for newspapers and magazines. The basic advertising unit for newspapers is the full-color junior page on an average day. For magazines it is the 1/1 full-color page without any surcharge. The costs of the ads are net-net.

CPP calculation started with a readership rank with top 5 newspapers or top 10 magazines by target group. Calculation is based on one insertion by each selected title, like a campaign, and then is evaluated in terms of their combined coverage divided into combined costs.

Radio

The basic advertising unit is the 30 sec commercial. In the radio calculation we would like to be as client friendly as possible so the weight of the radio campaign was an average defined by the local offices.

Outdoor

In case of outdoor we would like to show only a slight overview. Due to the lack of precise coverage and GRP data and to achieve simple data comparability we have chosen a simpler method to calculate outdoor price. The basis of the calculation is the average price of one Euro-Billboard (5.04*2.38 m) in case of an average size BB campaign.

Internet

The so called ‘conventional indices based media-planning’ is just evolving on Internet market and therefore adequate indices are not fully available. That is the main reason why we decided to demonstrate Internet price with a ‘piece’ based calculation as we did with outdoor. So the basis of ad-view price calculation is CPM (cost per thousand download) data for an average campaign which contains expensive and cheap sites as well.

Besides CPM we would like to share cover data as well for different target groups by countries. The basis of coverage calculation is the monthly 1+ Internet users, which means those people, who are using Internet at least once a month.

Economic data

-21.0

-18.0

-15.0

-12.0

-9.0

-6.0

-3.0

0.0

3.0

6.0

9.0

Slo

va

kia

Russ

ia

Ukr

ain

e

Po

lan

d

Se

rbia

Cze

ch R

ep

ub

lic

Au

stri

a

Slo

ve

nia

EU

(2

7 c

ou

ntr

ies)

Est

on

ia

Rom

ania

Bu

lga

ria

Cro

atia

Hun

ga

ry

Lithu

an

ia

Latv

ia

Real GDP growth rateGrowth rate of GDP volume - percentage change on previous year

2008

2009

2010 est.

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

Au

stri

a

Slo

ve

nia

Cze

ch

Rep

ub

lic

Slo

va

kia

Hun

ga

ry

Po

lan

d

Est

on

ia

Cro

atia

Lith

ua

nia

Russ

ia

Latv

ia

Rom

ania

Bu

lga

ria

Se

rbia

Ukra

ine

US

D

GDP per capita based on purchasing-power-parity (PPP) 2008

2009

2010 est.

Source: International Monetary Fund – www.imf.org

* Source: International Monetary Fund – www.imf.org

3.7 3.3

25.2

14.112.4

6.1

15.7

4.26.1

12.0

6.3 5.7

3.2

10.4

3.9

11.1

15.3

0.90.3

15.9

11.7

8.1

4.2

11.6

3.52.4 2.5

1.0 0.8 0.4

-0.1

0.9

4.23.3

1.51.1

9.2

7.0

4.8 4.3 4.0

2.3 2.3 2.2 1.6 1.5 1.3 0.8 0.8

-1.2

-3.7-6%

-3%

%

3%

6%

9%

12%

15%

18%

21%

24%

27%

Eu

rop

ea

n U

nio

n

Eu

ro A

rea

Ukr

ain

e

Russ

ia

Serb

ia

Hun

ga

ry

Rom

ania

Po

lan

d

Cro

atia

Bu

lga

ria

Cze

ch

Rep

ub

lic

Slo

ve

nia

Au

stri

a

Est

on

ia

Slo

va

kia

Lith

ua

nia

Latv

ia

Inflation rateAverage consumer prices change 2008

2009

2010 est.

Russia34.3

Ukraine19.3

Poland18.6

Romania8.9

Czech Republic4.8

Hungary4.3

Austria3.7

Bulgaria3.4

Serbia3.2

Slovakia2.6

Croatia2.0

Lithuania1.5

Latvia1.0

Slovenia1.0

Estonia0.6

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

0 2 4 6 8 10 12 14 16 18 20

GD

P p

er

capita

in U

SD

base

d o

n p

urc

hasi

ng-p

ow

er-

parity

18-49 CPT (Euro)

GDP per capita in Purchasing Power Standards (PPS) vs TV CPT



Global trends of CEE markets In almost every country the economical crisis has left deep scars, so 2010 will not be the year of boom. After a huge drop in 2009, expectations for 2010 and 2011 are very cautious. According to the forecasts, followed years will be characterized by slow recovery, stagnation or even by slight increase. Internet looks to be the only survivor in both years, this is the only increasing media. In 2010 TV could be the second ‘winner of the year of recovery’, as it’s increase is estimated in almost all countries. Print, OOH and radio still doesn’t find its former self in terms of ad-spends, further decrease (or stagnation) is forecasted for them CEE region wide in 2010.

0

2 000

4 000

6 000

8 000

10 000

Russia Austria Poland Ukraine Czech Republic

Croatia Hungary

mill

ion

EU

R

Estimated netnet media spends

2006

2007

2008

2009

2010

+23.1%

+37.5%

-39.2%

+17.2%

+8.9%+5.9%

+0.1%

-11.0%

+21.8%

+23.4% -30.8%+11.0%

-0.9%+5.1%

-44.8%

+56.7%

+6.8%

+17.1%-19.1%

-3.3%+11.7%

+3.3%+32.9%

+0.6% +10.8%+5.7% -30.2%

-6.6%

0

100

200

300

400

500

600

700

Romania Bulgaria Slovakia Serbia Slovenia Lithuania Latvia Estonia

mill

ion

EU

R

Estimated netnet media spends

2006

2007

2008

2009

2010

+36.5%

+18.8%

-36.5%

-9.2%

+24.6%

+23.9%-14.8%

-7.9%+10.9%

+8.2%-15.4%

-2.5%

+26.9%

+17.7% -21.8%

0%

+19.2%

+8.7% -16.0%-2.9% +15.2%

+9.0%

-39.5%

+1.1% +24.1%

+3.0%

-45.7%

-9.3% +32.2%

-3.5%-36.0%

-18.3%

Examples from the database

.

.

100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

515

460442

366343

309

182162

150 144 140 133 127

84

49

169

334

104

132

236252 255

218

114 118141 136

180

69

166

63

27 33

0

4021 27

159

3722 20 16 22

0

25

0

200

400

600

Ukr

ain

e

Est

on

ia

Bu

lga

ria

Cro

atia

Latv

ia

Hun

ga

ry

Po

lan

d

Slo

ve

nia

Slo

va

kia

Lith

ua

nia

Rom

ania

Au

stri

a

Czech

R

ep

ub

lic

Se

rbia

Russ

ia

aff

inity

Media type comparison by country(base: TV = 100, target group: Age 18-49)

TV

Magazines

Dailies

Radio

24.5

12.8

13.4

11.7

7.7 8.2

7.2

20.1

8.3

5.9

6.2

3.8

3.2 3.7

1.5

21.2

14.6

11.7

11.1

7.4

7.0 6.6

10.2

7.3

4.9

3.9

3.5

2.6 3.2

0.7

19.1

14.9

11.3

9.6

6.9

6.9

6.3

5.4

5.3

4.8

4.1

3.6

2.8

2.7

1.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Au

stri

a

Slo

va

kia

Cze

ch

Rep

ub

lic

Se

rbia

Cro

atia

Lith

ua

nia

Hun

ga

ry

Est

on

ia

Bu

lga

ria

Slo

ve

nia

Russ

ia

Latv

ia

Po

lan

d

Rom

ania

Ukr

ain

e

CP

T in

Eu

ro

TV CPT comparison among countries (A18-49)

2008

2009

2010

925

782

448459

398

295

462

112

324

172

273

136162

190

400

1 112

724

182

434

313269

308

173167 160

143

142116

155100

863

615

545

419406

273239

173 169

155148

133 114 110100

0

200

400

600

800

1 000

1 200

Est

on

ia *

Lith

ua

nia

Russ

ia

Bu

lga

ria

Latv

ia

Czech

R

ep

ub

lic

Hun

ga

ry

Cro

atia

Au

stri

a

Slo

ve

nia

Ukr

ain

e

Slo

va

kia

Po

lan

d

Rom

ania

Se

rbia

CP

T in

Eu

ro

Billboard price comparison among countries(Average price of one Euro-Billboard (5.04*2.38m))

2008

2009

2010

* Estonian BB size is 6*3 m

-50

-40

-30

-20

-10

0

10

20

30

40

50

-60 -40 -20 0 20 40 60

200

9/2

010

ch

an

ge

2008/2009 change

CPT change by year and media typeperiod: 2008-2010; target group: 18-49

16

5

15

9

4

6

5

3 3 3 34

2

1 1

11

10

14

7

65

5 5

33

2 2 21

1

11 11

7 7

6 6

44

3 3

2 2 2 11

0

2

4

6

8

10

12

14

16

18

Cro

atia

Slo

ve

nia

Hun

ga

ry

Cze

ch

Rep

ub

lic

Russ

ia

Rom

ania

Au

stri

a

Bu

lga

ria

Ukr

ain

e

Lith

ua

nia

Est

on

ia

Po

lan

d

Slo

va

kia

Se

rbia

Latv

ia

CP

M in

EU

R

Internet adview price (CPM) comparison among countries(cost per thousand download)

2008

2009

2010

0

10

20

30

40

50

60

70

80

90

100

Est

on

ia

Au

stri

a

Latv

ia

Cze

ch R

ep

ub

lic

Lith

ua

nia

Rom

ania

Slo

ve

nia

Russ

ia

Po

lan

d

Hun

ga

ry

Slo

va

kia

Bu

lga

ria

Cro

atia

Ukr

ain

e

%

Internet penetration comparison among countries(basis: uses internet at least once a week)

18+ (adults) 18-49 Young adults (15-24)

Austria

18+ (adults) 18-49Housewife

18+Young Adults

(15-24)Upmarket

(25-49 ABC)Businessmen

(Top 5%)18+ (adults) 18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size 6 507 000 3 712 000 3 363 000 1 075 000 2 689 000 962 000 TV TG size 6 507 000 3 712 000 3 363 000 1 075 000 2 689 000 962 000

Press TG size 6 628 000 3 773 000 3 960 000 955 000 2 438 000 559 000 Press TG size 6 628 000 3 773 000 3 960 000 955 000 2 438 000 559 000

Radio TG size 6 656 000 3 794 000 4 344 000 1 002 000 2 316 000 582 000 Radio TG size 6 656 000 3 794 000 4 344 000 1 002 000 2 316 000 582 000

TV 504 710 354 618 800 403 TV 8 19 11 58 30 42Magazines 1 051 959 1 001 1 001 923 811 Magazines 16 25 25 105 38 145Dailies 933 983 966 1 070 934 778 Dailies 14 26 24 112 38 139Radio 166 120 177 79 114 125 Radio 2 3 4 8 5 21

CPP in Euro CPT in Euro

504

710

1 051

959933

983

166120

0

200

400

600

800

1 000

1 200

CP

P in

Euro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

8

19

16

25

14

26

23

0

5

10

15

20

25

30

CP

T in E

uro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

We expect that increase of online expenditure will continue in 2010. Comparing Q1 2010 with Q1 2009 a recovery of the advertising market can be seen. All media channels, except out of home, show an increase of media expenditure.

Bulgaria


18+*Young Adults

(15-24)Upmarket


(Top 5%)18+ (adults) 18-49

Housewife 18+




TV TG size 6 280 000 3 390 000 2 660 000 1 100 000 2 140 000 n/a TV TG size 6 280 000 3 390 000 2 660 000 1 100 000 2 140 000 n/a

Press TG size* 3 971 000 2 706 000 2 437 000 843 000 1 639 000 n/a Press TG size* 3 971 000 2 706 000 2 437 000 843 000 1 639 000 n/a

Radio TG size 1 911 000 1 330 000 1 247 000 368 000 862 000 n/a Radio TG size 1 911 000 1 330 000 1 247 000 368 000 862 000 n/a

TV 130 179 106 277 162 n.a. TV 2.1 5.3 4.0 25.2 7.6 n.a.Magazines 727 631 619 455 590 n.a. Magazines 18.3 23.3 25.4 53.9 36.0 n.a.Dailies 148 148 163 282 121 n.a. Dailies 3.7 5.5 6.7 33.5 7.4 n.a.Radio 25 23 n.a. 20 n.a. n.a. Radio 1 2 n.a. 5 n.a. n.a.* 25-54 Female in case of print

* - Magazin data is measured with a special survey where the base is the magazin readers!


130

179

727

631

148 148

25 23

0

100

200

300

400

500

600

700

800

CP

P in

Euro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

2.1

5.3

18.3

23.3

3.7

5.5

1 2

0.0

5.0

10.0

15.0

20.0

25.0

CP

T in E

uro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

The total market decreased by 15% in 2009 vs. 2008. TV: duopolistic model continue to rule; on the one hand are the MTG channels (Nova TV and Diemas) and on the other hand CME (Pro.BG and Ring.BG) has finished the process of acquiring bTV, bTV Comedy and bTV Comedy. The new name of the group is bTV Media Group. bTV and Nova TV stay the leaders and take the greater part of the advertising expenditure on the market. The total market decreased by 15% in 2009 vs. 2008.

Croatia

18+ (adults) 18-49(Housewife

18+)

30-54

Young Adults

(15-24)

Upmarket

(25-49 ABC)

Businessmen

(Top 5%)18+ (adults) 18-49

(Housewife 18+)

30-54

Young Adults

(15-24)

Upmarket

(25-49 ABC)

Businessmen

(Top 5%)

TV TG size 3 428 129 1 975 539 1 337 871 596 559 675 354 352 781 TV TG size 3 428 129 1 975 539 1 337 871 596 559 675 354 352 781

Press TG size 3 428 129 1 975 539 1 558 303 596 559 675 354 352 781 Press TG size 3 428 129 1 975 539 1 558 303 596 559 675 354 352 781

Radio TG size 3 428 129 1 975 539 1 558 303 596 559 675 354 352 781 Radio TG size 3 428 129 1 975 539 1 558 303 596 559 675 354 352 781

TV 121 136 127 148 153 180 TV 3.5 6.9 9.5 24.8 22.7 51.0Magazines 587 498 519 353 299 229 Magazines 17.1 25.2 33.3 59.1 44.3 65.0

Dailies 200 179 190 178 134 123 Dailies 5.8 9.1 12.2 29.8 19.8 34.7

Radio n.a. n.a. n.a. n.a. n.a. n.a. Radio n.a. n.a. n.a. n.a. n.a. n.a.


121136

587

498

200179

0

100

200

300

400

500

600

700

CP

P in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

3.5

6.9

17.1

25.2

5.8

9.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

CP

T in

Euro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

Gross figures for 2009 are higher due to discounted net prices in media and more advertising for less net investment. Gross value stayed and it is exaggerated.

Czech Republic


18+

Young Adults

(15-24)

Upmarket

(25-49 ABC)

Businessmen

(Top 5%)18+ (adults) 18-49

Housewife

18+

Young Adults

(15-24)

Upmarket

(25-49 ABC)

Businessmen

(Top 5%)TV TG size 8 489 000 4 776 000 3 986 000 1 368 000 1 953 000 329 000 TV TG size 8 489 000 4 776 000 3 986 000 1 368 000 1 953 000 329 000

Press TG size 8 103 700 4 713 500 4 095 000 1 302 000 1 901 500 592 700 Press TG size 8 103 700 4 713 500 4 095 000 1 302 000 1 901 500 592 700


TV 431 542 342 854 569 512 TV 5.1 11.3 8.6 62.4 29.1 155.6

Magazines 654 676 511 801 661 605 Magazines 8.1 14.4 12.5 61.5 34.8 102.1

Dailies 996 961 982 1 330 922 804 Dailies 12.3 20.4 24.0 102.2 48.5 135.6Radio 140 120 142 137 115 99 Radio 1.7 2.4 2.9 9.1 5.7 25.1


431

542

654676

996961

140 120

0

200

400

600

800

1 000

1 200

CP

P in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

5.1

11.3

8.1

14.4

12.3

20.4

1.72.4

0.0

5.0

10.0

15.0

20.0

25.0

CP

T in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

Media market is still struggling from economic crisis and we expect 6% drop in expenditures in 2010. TV is the strongest media type with share about 44% followed by print with 22% share. However we expect drop in expenditures by both media types in 2010. 5% drop in TV and 12% drop in print. The only media type where we expect increase of expenditures in 2010 is Internet with 10%. Share of internet is close to 19% in 2010. Radio as well as OOH is significantly suffering with expected 13% drop in radio and 15% drop in OOH expenditures in 2010. Share of radio is 7%. Share of OOH is 8%. Regarding 2011 we expect stabilization of the media market with similar total expenditures as in 2010. TV and print expenditures will stabilize with no further decrease. Internet expenditures will grow by 6%. OOH and radio will follow decreasing trend also in 2011.

Estonia


18+

Young Adults

(15-24)

Upmarket

(25-49 ABC)

Businessmen

(Top 5%)18+ (adults) 18-49

Housewife

18+

Young Adults

(15-24)

Upmarket

(25-49 ABC)

Businessmen

(Top 5%)TV TG size 1 069 000 601 000 578 000 196 000 476 000 42 000 TV TG size 1 069 000 601 000 578 000 196 000 476 000 42 000

Press TG size 989 000 614 000 722 000 193 000 410 000 314 000 Press TG size 989 000 614 000 722 000 193 000 410 000 314 000

Radio TG size 979 000 604 000 525 000 197 000 265 000 36 000 Radio TG size 979 000 604 000 525 000 197 000 265 000 36 000

TV 28 32 24 48 29 34 TV 2.6 5.4 4.1 24.6 6.2 81.9


Dailies 101 111 101 145 119 82 Dailies 10.2 18.0 14.0 34.9 28.9 26.2Radio 11 9 10 18 12 21 Radio 1.1 1.4 2.0 9.1 4.6 57.5


2832

137

153

101

111

11 9

0

20

40

60

80

100

120

140

160

180

CP

P in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

2.6

5.4

13.8

24.8

10.2

18.0

1.1 1.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0

CP

T in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

Internet has proved less sensitive to changes in the economy than either newspapers or magazines. Earlier, this advantage was enjoyed by TV, but things changed. If compare 2009 to Q1 2010, TV and internet shares in total Estonian ad market net turnover grew, when newspapers and magazines experienced 3% fall in share. That allows concluding that advertising money tends to shift from print to internet and TV channels.

Hungary


18+

Young Adults

(15-24)

Upmarket

(25-49 ABC)**

Businessmen

(Top 5%)18+ (adults) 18-49

Housewife

18+

Young Adults

(15-24)

Upmarket

(25-49 ABC)**

Businessmen

(Top 5%)


Press TG size 8 140 525 4 560 963 4 849 850 1 460 417 2 140 741 491 098 Press TG size 8 140 525 4 560 963 4 849 850 1 460 417 2 140 741 491 098


TV 211 268 182 393 271 289 TV 2.7 6.3 4.6 28.4 11.4 61.2

Magazines 847 888 697 849 761 694 Magazines 10.4 19.5 14.4 58.1 35.6 141.3Dailies 833 724 905 850 588 669 Dailies 10.2 15.9 18.7 58.2 27.5 136.1

Radio* 84 74 84 125 77 91 Radio* 1.0 1.6 1.8 8.8 4.0 14.7*measurement method change in 2010

** Esomar based status


211

268

847888

833

724

84 74

0

100

200

300

400

500

600

700

800

900

1 000

CP

P in

Eu

ro TV

Magazines

Dailies

Radio*

18+ (adults) 18-49

2.7

6.3

10.4

19.5

10.2

15.9

1.01.6

0.0

5.0

10.0

15.0

20.0

25.0

CP

T i

n E

uro TV

Magazines

Dailies

Radio*

18+ (adults) 18-49

Media market was a victim of the economic crisis and recession’s negative effects. 2009 was characterized by drastic budget-cuts, decline was more than 20% in 2009. In 2010, attitude of advertisers is very cautious because there was not relevant economic upturn. Our forecast is that Hungarian media market will further decrease in 2010 and we do not expect any growth for 2011. In 2009 was the first year after long time, when TV decreased. In 2010 we estimate a further, but lower level overall decrease in ad-spends for TV by 3%, where stagnation is expected for cable channels. In case of press media further circulation erudition can be observed, but readership started to increase slightly. Nevertheless according to our estimation, advertisers will spend approx. 16% less in print. Radio has gone through big changes: there was a frequency competition at the end of 2009, where the two biggest stations lost, so two new ones have started to broadcast. On the other hand from 2010 a new measuring method was launched. This new situation has not yet been treated by the market, so further advertising budget pullouts are expected which could cause -25% ad-spend decrease in 2010. Internet will be the only increasing medium in 2010 like as in 2009. This increase is based on the success of the fast growing search marketing and the spread of social media. We estimate a 3% flare in terms of advertising spends.

Latvia


18+Young Adults

(15-24)Upmarket


(Top 5%)18+ (adults) 18-49

Housewife 18+




TV TG size 1 843 612 998 918 855 368 344 056 538 878 151 786 TV TG size 1 843 612 998 918 855 368 344 056 538 878 151 786

Press TG size 1 696 000 1 054 000 1 361 000 344 000 486 000 121 000 Press TG size 1 696 000 1 054 000 1 361 000 344 000 486 000 121 000

Radio TG size 1 701 170 1 089 080 1 078 060 333 350 503 880 115 800 Radio TG size 1 701 170 1 089 080 1 078 060 333 350 503 880 115 800

TV 31 36 26 44 49 49 TV 1.7 3.6 3.1 12.7 9.0 32.4




3136

129 129

8389

1316

0

20

40

60

80

100

120

140

CP

P in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

1.7

3.6

7.6

12.2

4.9

8.4

0.8

1.4

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

CP

T i

n E

uro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

Ad spend still continue to decrease by 10-15% in 2010 both because of price deflation and marketing budget decrease of advertisers. TV airtime lately is fully booked in biggest TV channels, it can lead to TV price inflation at the end of year. Decrease of ad investments in radio and internet is lower than in average.

Lithuania


18+

Young Adults

(15-24)

Upmarket

(25-49 ABC)

Businessmen

(Top 5%)18+ (adults) 18-49

Housewife

18+

Young Adults

(15-24)

Upmarket

(25-49 ABC)

Businessmen

(Top 5%)TV TG size 2 679 000 1 548 000 1 223 000 525 000 1 083 000 157 000 TV TG size 2 679 000 1 548 000 1 223 000 525 000 1 083 000 157 000


Radio TG size 2 424 000 1 596 000 774 000 511 000 797 000 66 000 Radio TG size 2 424 000 1 596 000 774 000 511 000 797 000 66 000

TV 88 107 73 124 101 109 TV 3.3 6.9 6.0 23.5 9.3 69.4




88

107

149153

131126

21 24

0

20

40

60

80

100

120

140

160

180

CP

P in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults)18-49

3.3

6.9

6.2

9.9

5.4

8.1

0.9

1.5

0.0

2.0

4.0

6.0

8.0

10.0

12.0

CP

T in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

Lithuanian media market was highly affected by crisis in 2009 - it had return to 2004 level with 39% decrease of advertising spend. The most affected medium was print - with 47% and 49% advertising spend decrease in newspapers and magazines. Media market is TV oriented - 44% of ad spends go to this medium. Online advertising is increasing its share constantly - in 2009 it makes 6,1%. While print is losing its audience and ad spend share - it have decreased from 41,3% in 2005 to 32,8% in 2009.

Poland


18+

Young Adults

(15-24)

Upmarket

(25-49 ABC)

Businessmen

(Top 5%)18+ (adults) 18-49

Housewife

18+

Young Adults

(15-24)

Upmarket

(25-49 ABC)

Businessmen

(Top 5%)TV TG size 31 286 000 18 576 000 13 600 000 5 020 000 17 741 000 2 791 000 TV TG size 31 286 000 18 576 000 13 600 000 5 020 000 17 741 000 2 791 000

Press TG size 28 359 058 16 993 399 21 191 038 5 408 710 5 905 862 2 163 645 Press TG size 28 359 058 16 993 399 21 191 038 5 408 710 5 905 862 2 163 645

Radio TG size 28 359 058 16 993 399 21 191 038 5 408 710 5 905 862 2 163 645 Radio TG size 28 359 058 16 993 399 21 191 038 5 408 710 5 905 862 2 163 645

TV 411 524 325 882 430 543 TV 1.3 2.8 2.4 17.6 2.4 19.5


Dailies 1 174 1 223 1 204 1 116 1 149 580 Dailies 4.1 7.2 5.7 20.6 19.5 26.8Radio 137 132 140 232 113 109 Radio 0.5 0.8 0.7 4.3 1.9 5.0


411

524

803

870

1 1741 223

137 132

0

200

400

600

800

1 000

1 200

1 400

CP

P in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

1.3

2.82.8

5.1

4.1

7.2

0.50.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

CP

T in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

Despite GDP growth in 2009, Polish ad market declined by 15%. In 2010, we are expecting a 4.3% increase driven mainly by TV and internet - the only two media with expected Y2Y inflation. The market is expected to grow more in proceeding years, 2012 especially (due to the fact that Poland is a co-host of Euro 2012)

Romania


18+Young Adults

(15-24)Upmarket


(Top 5%)18+ (adults) 18-49

Housewife 18+





Press TG size* 8 451 000 6 039 000 5 328 000 1 726 000 3 258 000 373 000 Press TG size 8 451 000 6 039 000 5 328 000 1 726 000 3 258 000 373 000


TV 206 238 174 340 214 221 TV 1.2 2.7 2.5 12.7 6.0 35.5


Dailies 233 228 223 244 215 229 Dailies 2.8 3.8 4.2 14.1 6.6 61.3Radio 77 54 81 59 48 31 Radio 0.4 0.5 0.7 1.9 1.0 6.1* urban population


206

238

226 226233

228

77

54

0

50

100

150

200

250

CP

P in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

1.2

2.72.7

3.7

2.8

3.8

0.40.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

CP

T i

n E

uro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

2009 was one of the most pessimistic year and 2010 is not perceive more encouraging. We estimate 2010 vs. 2009 around -10% net spending. After a huge decreasing in 2009 (-35%), TV market is expected to stabilize or decrease slowly in 2010 and start to recover in 2011. TV will continue to increase its market share in communication mix due to price deflation and attracting the budgets from the other media as print and OOH. Online access and speed connection increase year by year. Online is expected to be the only medium with increasing trend in 2010 by 10% versus 2009. Press market was severely affected by financial crisis: more than 50% in 2009 and around 30% in 2010 Quality and Sport newspapers decrease their circulation while Tabloid segment increase. There have been closed about 50 titles in 2008-2010. Radio decreased by 28% in 2009 and continues to decline by 10% in 2010. Top 4 suppliers (international companies) hold 2/3 from total OOH market investment while 1/3 is shared by more than others 40 small players.

Russia


18+Young Adults

(15-24)Upmarket


(Top 5%)18+ (adults) 18-49

Housewife 18+




TV TG size 56 345 160 34 337 470 3 027 270 10 094 140 19 591 820 1 868 880 TV TG size 56 345 160 34 337 470 3 027 270 10 094 140 19 591 820 1 868 880

Press TG size 56 185 990 34 212 450 3 370 300 9 495 460 11 393 560 2 710 670 Press TG size 56 185 990 34 212 450 3 370 300 9 495 460 11 393 560 2 710 670

Radio TG size 56 185 250 39 671 510 n/a 23 407 290 n/a n/a Radio TG size 56 185 250 39 671 510 n/a 23 407 290 n/a n/a

TV 1 115 1 406 951 2 077 1 277 1 286 TV 2.0 4.1 31.4 20.6 6.5 68.8


Dailies 2 185 2 327 3 424 2 417 1 919 1 738 Dailies 3.9 6.8 101.6 25.5 16.8 64.1Radio 415 410 n.a. 443 n.a. n.a. Radio 0.7 1.0 n.a. 1.9 n.a. n.a.


1 115

1 406

695 683

2 185

2 327

415 410

0

500

1 000

1 500

2 000

2 500

CP

P in

Eu

ro Series1

Series2

Series3

Series4

18+ (adults) 18-49

2.0

4.1

1.2

2.0

3.9

6.8

0.71.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

CP

T i

n E

uro Series1

Series2

Series3

Series4

18+ (adults) 18-49

Internet and Satellite (thematic or non-terrestrial) TV are the only grown segments in 2009: +8% & +14% respectively. Highest losses in print (-43%); Cinema (-29%); Regional TV (-32%); OOH (-41%) It's estimated 7-10% growth in 2010. Internet segment has increased in Q1 2010 +31%; NTTV +15%; Terrestrial TV +5%; Newspapers +10%; Magazines keep same level of spends as in 2009.

Slovakia


18+Young Adults

(15-24)Upmarket


(Top 5%)18+ (adults) 18-49

Housewife 18+




TV TG size 4 294 048 2 649 492 1 638 297 807 062 862 094 274 615 TV TG size 4 294 048 2 649 492 1 638 297 807 062 862 094 274 615


Radio TG size 4 264 036 2 727 333 2 668 097 844 004 1 073 328 108 936 Radio TG size 4 264 036 2 727 333 2 668 097 844 004 1 073 328 108 936

TV 218 255 170 411 236 263 TV 5.1 9.6 10.4 51.0 27.4 95.7




218

255

417

394

299 298

96 96

0

50

100

150

200

250

300

350

400

450

CP

P in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

5.1

9.69.8

14.4

7.0

10.9

2.3

3.5

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

CP

T i

n E

uro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

The market is dominated by TV advertisement and TV will be leading medium for next couple of years. The media with highest growth is internet, on the other hand investment into radio shows decreasing trend. Traditional OOH media are fully developed and penetrated and that means increasing focus on non-traditional forms of OOH (although the crisis slowed down this trend). Fragmentation of print market continues, on the other hand publishers decided no more donate unprofitable titles which led to closing of several titles. Despite the economic revival and optimistic prognosis the year 2010 in media industry is not going to copy this positive trend. We still expect some 2-3% investment decrease and deflation of media cost in all media but web (-3,5% in average; 6% in TV). Internet advertising is the only segment expected to rise (+10%).

Slovenia

18+ (adults) 18-49(Housewife

18+)

30-54

Young Adults

(15-24)

Upmarket

(25-49 ABC)

Businessmen

(Top 5%)18+ (adults) 18-49

(Housewife 18+)

30-54

Young Adults

(15-24)

Upmarket

(25-49 ABC)

Businessmen

(Top 5%)

TV TG size 1 627 061 967 654 769 927 251 691 95 456 78 818 TV TG size 1 627 061 967 654 769 927 251 691 95 456 78 818

Press TG size 1 514 000 884 000 729 000 257 000 237 000 35 000 Press TG size 1 514 000 884 000 729 000 257 000 237 000 35 000

Radio TG size 1 514 000 884 000 729 000 257 000 237 000 35 000 Radio TG size 1 514 000 884 000 729 000 257 000 237 000 35 000

TV 108 144 123 236 175 183 TV 6.6 14.9 16.0 93.8 183.3 232.2

Magazines 252 213 226 159 166 128 Magazines 16.6 24.1 31.0 61.9 69.9 366.3Dailies 288 287 304 278 262 166 Dailies 19.0 32.5 41.7 108.0 110.4 475.3

Radio 209 209 209 106 209 209 Radio 13.8 23.6 28.6 41.2 88.1 596.6


108

144

252

213

288 287

209 209

0

50

100

150

200

250

300

350

CP

P in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

6.6

14.9

16.6

24.1

19.0

32.5

13.8

23.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

CP

T i

n E

uro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

In 2010 still decrease of media investment is expected due to crisis. Print (especially magazines and dailies) will be the media with the highest drop of investment also due to high fragmentation. TV will remain the medium with the highest share of investment although net investment is expected to decrease. Radio stations show tendency of merging frequencies (regional + local) in order to get better coverage and selling advertising space together at a better price but anyway lower investment in radio advertising is expected. Outdoor advertising investment will also decrease as it is still expensive due to printing and environmental tax costs. Internet will probably suffer the least, investments are expected to remain stable.

Serbia


18+Young Adults

(15-24)Upmarket


(Top 5%)18+ (adults) 18-49

Housewife 18+




TV TG size 6 209 611 3 238 553 2 427 335 909 982 1 655 237 311 229 TV TG size 6 209 611 3 238 553 2 427 335 909 982 1 655 237 311 229


Radio TG size n/a n/a n/a n/a n/a n/a Radio TG size n/a n/a n/a n/a n/a n/a

TV 145 156 113 242 151 161 TV 2.3 4.8 4.7 26.6 9.1 51.8


Dailies 107 104 108 107 89 96 Dailies 2.1 3.3 3.9 10.8 8.0 34.6Radio n/a n/a n/a n/a n/a n/a Radio n/a n/a n/a n/a n/a n/a


145

156

144

127

107104

0

20

40

60

80

100

120

140

160

180

CP

P in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

2.3

4.8

2.7

4.0

2.1

3.3

0.0

1.0

2.0

3.0

4.0

5.0

6.0

CP

T i

n E

uro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

TV is still dominant. Constant growth of cable channel shares. Internet successfully defends its position during recession, but it is still the media with the lowest market share. Print became more flexible and allowing higher discounts. Only internet inflation is expected in 2010.

Ukraine


18+

Young Adults

(15-24)

Upmarket

(25-49 ABC)

Businessmen

(Top 5%)18+ (adults) 18-49

Housewife

18+

Young Adults

(15-24)

Upmarket

(25-49 ABC)

Businessmen

(Top 5%)TV TG size* 34 703 396 19 269 645 16 308 633 5 885 736 15 207 937 832 476 TV TG size 34 703 396 19 269 645 16 308 633 5 885 736 15 207 937 832 476

Press TG size* 14 531 700 10 322 680 7 122 640 3 438 790 4 989 100 89 720 Press TG size 14 531 700 10 322 680 7 122 640 3 438 790 4 989 100 89 720

Radio TG size* 14 531 700 10 322 680 7 122 640 3 438 790 4 989 100 89 720 Radio TG size 14 531 700 10 322 680 7 122 640 3 438 790 4 989 100 89 720

TV 227 263 195 326 256 298 TV 0.7 1.4 1.2 5.5 1.7 35.7

Magazines 773 725 557 686 770 938 Magazines 5.3 7.0 7.8 19.9 15.4 1 045.6

Dailies 217 237 229 356 210 104 Dailies 1.5 2.3 3.2 10.4 4.2 115.8Radio 91 89 98 116 83 127 Radio 0.6 0.9 1.4 3.4 1.7 141.9*settlement population above 500 000 people


227263

773

725

217237

91 89

0

100

200

300

400

500

600

700

800

900

CP

P in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

0.7

1.4

5.3

7.0

1.5

2.3

0.60.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

CP

T in

Eu

ro TV

Magazines

Dailies

Radio

18+ (adults) 18-49

In crisis situation the media market in Ukraine has been greatly underestimated. It is leading in dumping in early 2009 and as a result of media's default, when demand far exceeds of available inventory. Recession is first of all touched the TV and even inflation more than 50% in 2010, cannot stabilize the TV market. On other media sold-out less due to following reasons: the end of the election and, accordingly, cease political advertising. The ban tobacco and alcohol advertising. Some of the most crisis sensitive categories did not come back with 100% activity.

Mediaedge:cia Central and Eastern Europe Anna Lubowska CEO Central & Eastern Europe [email protected]

ul. Dobra 56/66 Warszawa PL – 00-312 Poland Office: +48 225 527 765 Fax: +48 225 527 770

Jiri Svoboda Zsolt Simon Managing Director, Czech Republic Managing Director, Hungary [email protected] [email protected]

Rozkosneho 3 80 Lajos utca Praha Budapest CZ – 150 00 H – 1037 Czech Republic Hungary Office: +420 227 177 400 Office: +36 1 801 81 11 Fax: +420 227 177 401 Fax: +36 1 801 81 12

Izabela Albrychiewicz Bogdan Prajisteanu Managing Directors, Poland Managing Director, Romania [email protected], [email protected]

Premium Plaza Office Building ul. Dobra 56/66 63-69 - Dr.Iacob Felix Street Warszawa Bucharest PL – 00-312 RO – 011033 Poland Romania Office: +48 225 527 777 Office: +40 21 319 71 54/55 Fax: +48 225 527 770 Fax: +40 21 319 71 53

Daniel Zivica Konrad Mayr-Pernek and Mag. Sibylle Blümel, MBA Executive Director, Slovakia Managing Directors, Austria [email protected] [email protected], [email protected]

Karadžičova 8 Tegetthoffstraße 7/5 Bratislava Vienna, SK – 821 08 A – 1010 Slovakia Austria Office: +421 257 880 420 Office: +43 1 532 2721-100/111 Fax: +420 257 880 413 Fax: +43 1 532 272 -199

www.mecglobal.com

A GroupM Company © Mediaedge:cia All content, logos and trademarks used within this publication are protected by copyright and cannot be used without permission from Mediaedge:cia or the permission of the relevant trademark owners.

COST COMPARISON BOOK

Documents

Transcript of COST COMPARISON BOOK