1

Media Market Digest June 2016

2

TV

Grew by 5% vs Jan-Jun’15 The new rising of prices for TV

commercial

p.3-11

Radio

Twice increase vs Jan-Jun’15 Radio Expert: Ukrainian radio

shows steady growth p.26-27

Research & Trends Forecast for Media

Consumption & Advertising Market by ZO Global

Latest consumer research by Nielsen

p.28-34

Digital 5 Instagram Changes: What

Marketers Need to Know

p.12-16

OOH

Growth by 17% vs Jan-Jun’15 The standardization of terms in

the OOH advertising in Ukraine

p.17-22

Print

Moderate increase by 17% vs Jan-Jun’15

p.24-25

Lancome: Energie De Vie

Cases

ZOU Campaigns

p.35-36

3

Jan-Jun’2016 in term

of WTRP’s vs Jan-

Jun’2015

4 Source: GFK/Nielsen, Direct Advertising, excl. Social & Media, TA: 18-50 50k+. Data owner is ITC. Processed by “CCM”

Subsidiary Enterprise

Key facts

SOR up to 92% In Jun’2016

The dynamics is typical for pre-crisis

years

Jun’16 vs May’16

Sold-out on TOP-6

channels was up to 100%

since 23 week

in WTRP’s

143,5

51,6

40,3

31,9

29,2

24,6

21,3

20,8

19,9

17,5

Pharma

Food

Telecom

Hygiene

Cosmetics

Trade

Confectionery

Cold AFB

Entertainment

Auto

14%

11%

13%

33%

123%

11%

26%

23%

0%

-6%

5 Source: GFK/Nielsen, Direct Advertising, excl. Social & Media, TA: 18-50 50k+. ‘000WTRPs. Data owner is ITC.

Processed by “CCM” Subsidiary Enterprise

Food category increased thanks to Danone that empowered 4 out of 6 Brand’s campaigns

Unilever was the main driver of Hygiene category growth vs prev. month while Procter&Gamble drives category vs prev. year.

Foxtrot rose its activity in June that had a positive impact on Trade category growth

11%

11%

2%

61%

32%

63%

73%

-25%

-26%

-36%

TOP Categories 2016 vs 2015 Jun’16 vs May’16

23,3

20,0

19,2

15,8

15,1

12,9

12,3

11,1

10,8

10,3

Nestle

Procter&Gamble

Pharmak

Reckitt Benckiser

L'Oreal

Vodafone

Kyivstar

Unilever

Ukrnafta

Beiersdorf AG

35%

12%

113%

6%

19%

8%

101%

-9%

-23%

6 Source: GFK/Nielsen, Direct Advertising, excl. Social & Media, TA: 18-50 50k+. ‘000WTRPs. Data owner is ITC.

Processed by “CCM” Subsidiary Enterprise

49%

92%

11%

-8%

-9%

-6%

-37%

-33%

-12%

-4%

TOP Advertisers 2016 vs 2015 Jun’16 vs May’16

Beiersdorf AG decreased activity of Nivea brand, that resulted in Cosmetic category fall vs May’16

L'Oreal was the main driver of Cosmetics category growth vs prev year.

Despite seasonal growth of ice-cream activity in June Confectionery category decreased vs May’16

The main drivers of ice-cream intensification were Lasunka and L’vovsky hladokombinat

Obolon’ and IDS Group grew their activity vs prev. month in Cold AFB category

Galnaftogas increased activity of OKKO brand, that resulted in Auto category growth vs prev. month

Economy shows optimistic scenario of growth. Demand on TV market already exceeded supply. Sellers' appetites are growing. Alliance and 1+1 Group announced new buying policy for additional budgets from Aug-Sep: at least +35%-45% price increasing vs yearly price (up to extra +50-60% for Sep-Dec). In fact sellers introduced 2017 price policy.

Alexander Polinovskiy, TV Buying Group Head ZenithOptimedia Ukraine

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Source: http://goo.gl/ux5fi2

The largest TV channels are raising prices for TV commercial. The 1+1 Media announced that from 1 August, rising of prices won’t be less than 30-35% and will affect both new advertisers and existing ones if they want to order additional amounts of TV commercial. The Group also canceled bonus placement that was accrued for the amount of redeemed TV commercial, so the rising of prices can reach 50% for individual advertisers.

The new rising of prices for TV commercial: sales houses are testing the waters, the agencies keep calm

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Source: http://goo.gl/PZy47a

Emotions run high around draft law №3504 which specify the order of distribution broadcaster transmissions included to the universal program service. Renewed Telecommunication Chamber has published own vision of the draft law and has proposed to legalize free broadcasting of national TV channels. TIC spoke out against these changes.

TIC vs Telecommunication Chamber: cable guys and TV channels can’t divide

UPS

Source: http://goo.gl/CjDCjK

Lobbyists seriously took up law-making and offer their changes in norms proposed by the MPs. The draft law №3504 which specify the order of distribution broadcaster transmissions included to the universal program service (UPS) is on the agenda.

Telecommunication Chamber spoke out against The Universal program

service

8

9

Euro 2016 Final: TV viewing

Source: http://goo.gl/JFsdtm

UEFA Euro 2016 Final, in which Portugal team beat French team passed with such indicators of TV viewing: share 35,2%, rating 10,6% in audience 18+, 50 ths+ and share 35,3%, rating 9,5% in audience 18-54, 50 ths+. It is rather higher then UEFA Euro 2012 Final indicators.

The broadcasting of the Euro 2012 Final match Spain-Italy on the “Ukraine" channel passed with a share 25,6%, rating 9,5% (audience 18+, 50 ths+, according to preliminary GfK data) 4 years ago.

10

“Ukraine“ channel leads in three audiences in MB Top Channel research according to the June results. However leadership left for the “1+1“ in one another audience. “Ukraine” channel has the most noticeable growth of share and STB - the most noticeable fall.

Top-list of TV channels in June: growth of “Ukraine“ channel

Source: http://goo.gl/EcPnmD

The largest provider of cable television «VOLIA» company published ratings of TV channels of their OTT*-subscribers in the beginning of June. May is characterized by stability of the top ten television channels indicators: «big six» didn’t change much («1+1», STB, ICTV, «Ukraine», Novyi Kanal and Inter), but ТЕТ, «2+2» and К1 overtook NТN in the «second eshelon».

Educational channels beat informational channels according to the

«VOLIA» TV ratings

Source: http://goo.gl/Kl52Wq

10

11

Conference «Television as Business 2016» within the KIEV MEDIA WEEK

Source: http://goo.gl/F0iHny

Conference «Television as Business 2016», will be held on 22 September in The Hyatt Regency Kiev Hotel in the str. Alla Tarasova, 5 and will be organized by Industrial Television Committee within international media forum KIEV MEDIA WEEK.

Andrew Partyka, CEO of Sales houses StarLight Sales and StarLight Brand Content, commented rating of media agencies and media groups of Ukraine 2015, that was published last week by UAC.

Andrew Partyka about UAC rating: budgets are considerably increased in individual cases

Source: http://goo.gl/dNmWK5

12

35,0

30,2

25,4

25,2

22,3

22,2

21,2

18,6

18,2

16,5

Skoda

Beiersdorf AG

Fozzy Group

Nestle

Mondelez

Kyivstar

Mars-Wrigley

McDonald's

Metro

Pepsico

VOD TOP Categories

62,1

52,3

39,1

37,7

33,8

29,6

28,5

26,1

22,7

16,2

Trade

Confectionery

Alcohol

Auto

Telecom

Food

Cosmetics

IT

Restaurants

Hot Beverages

VOD monitoring includes HTML5 formats from the middle of March which caused technical growth of Impressions monitoring data is not stable

13

VOD TOP Advertisers &

Source: Communication Alliance, represents 20%-25% of all video ad. Impressions, Mln. Data

processed by “CCM” Subsidiary Enterprise

LinkedIn has decided to officially start auctioning off its desktop-only display ads because it will be easier for brands to buy those banners and more cost-effective for the social network to sell them.

14

LinkedIn starts officially auctioning off its desktop banner ads

Source: http://goo.gl/IxYvuv

People Aren't Feeling Facebook's Reactions

Source: https://goo.gl/zY3k8z

Facebook launched its Reactions feature—an extension of the “like” button—in February, giving users more options to express their feelings instead of simply liking a post. Yet this feature is hardly being used.

In addition to a brand-new logo, Instagram has rolled out updates to its ad products, video features, and news feed algorithm. In this article, you’ll discover how the most recent Instagram changes can affect your marketing.

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5 Instagram Changes: What Marketers Need to Know

Source: http://goo.gl/eCRPqV

«VKontakte» has updated retargeting

Source: http://goo.gl/jHLupL

One of the major Russian social network , VKontakte (VK) announced upcoming update of their advertising product - retargeting platform.

Understanding number of Instagram users and its dynamics of growth in UA, it’s time to focus on Instagram content strategy. The key to success on Instagram is finding new and interesting ways to connect with audience taking into account network’s changes. Now we need not only create a good content and contests, but boost reach & engagement turning content to Instagram ads as ultimate term.

Maryna Grygorenko, Digital Director ZenithOptimedia Ukraine

The Ukrainian Internet Association has launched new rating project «TOP-100 media recourses of Ukrainian networks» and has presented first rating (May 2016).

16

Top-100 Most Popular News Websites in Ukraine

Source: http://goo.gl/TB3t8d

On The Yacm2016 conference Yandex team has announced new advertisement service «Yandex. Audiences». This service allows developers creating, targeting and analyzing audiences for more effective advertising impressions and companies targeting.

«Yandex» has launched service for marketer «Yandex. Audiences »

Source: http://goo.gl/QaxVIr

17

13,9

11,0

10,0

6,3

5,8

5,6

5,3

5,1

4,6

4,4

Fozzy Group

Epicenter

Sport Life

Lifecell

Privatbank

Samsung

Vodafone

Riel

K.A.N.Development

Allo

56%

12%

5%

37%

6%

167%

-14%

-21%

-20%

-23%

TOP Categories

120,6

74,7

52,2

37,1

25,2

20,3

15,6

15,3

13,6

11,4

Trade

Realty

Entertainment

Auto

Telecom

Finance

Sport

Restaurants

Medicine

Tourism

11%

41%

26%

48%

10%

12%

27%

56%

-1%

-6%

18

TOP Advertisers &

Source: Communication Alliance-OOH, Budget, Mln UAH. Data is processed by “CCM” Subsidiary

Enterprise

2016 vs 2015 2016 vs 2015

Tourism category increased thanks to Anex Tour activity growth

Small advertisers and Dobrobut medicine center were the leaders by growth in Medicine category.

PSA Peugeot Citroen activity decrease didn’t stop Auto category rise

• Mitsubishi Motors was the main reason of Auto category increase vs prev. month

19

«Prime Group» - an active participant in the modernization of the external appearance of Kiev

Source: http://goo.gl/Lv3p5c

The standardization of terms in the outdoor advertising in Ukraine

«Prime Group» continues the policy of social responsibility and innovative business development, the modernization of advertising structures in Kiev on the Mechnikovа street and Klovsky descent.

Source: http://goo.gl/SJ3xFv

As part of the work standardization (ICOA), committee has submitted to market participants for discussion and supplement the list of key terms and concepts in outdoor advertising, briefly explaining the meaning of key concepts of ooh media. Content includes 48 terms, constituting 8 sections with detailed explanation and illustrative examples, as well as a list of key abbreviations and acronyms, taken in outdoor advertising.

20

BBDO Ukraine released a continuation of TM «Karpatska Dzherelna»

Source: http://goo.gl/XaTzOy

Source:http://goo.gl/HiiSXY

RTM-Ukraine - exclusive advertising operator of the international airport « Kiev Juliani»

Heroes streets: Pepsi in Ukraine has picked up the trend of street art

Sourcе:http://goo.gl/ZEKHv1

Expocenter of Ukraine (ENEA) has launched a new brand

Source:http://goo.gl/fPKcin

21

Restaurant placed an edible billboard

Source::http://goo.gl/oElxuY

«Photo on iPhone»: Global Outdoor Campaign Apple showed the world in color

Source:http://goo.gl/6wfTWw

The image of fish on a poster Dubai Barracuda Restaurant was created from an edible glue, ink and paper, made from fresh fish and safe for the gulls, which were the main visitors of the restaurant.

McDonald's has united the country in Outdoor campaign for Euro 2016 BETC Paris and brand share messages of peace and unity in a series of out-of-home advertising, just to unite the country.

Source:http://goo.gl/d7TqVY

TBWA \ Media Arts Lab back with billboards «Shot on iPhone», but this time focusing on the color - saturated red, yellow, blue and orange. All photos were manually selected for various out-of-home locations worldwide.

German brand pharmaceutical Boehringer Ingelheim has decided to create an unusual outdoor advertising.

22

http://goo.gl/Kn5aNU http://goo.gl/bZf9gs

http://goo.gl/XlKJ9a

http://goo.gl/jU8n5D http://goo.gl/QL59Qf http://goo.gl/PxPWIx

http://goo.gl/9Q8TUK

http://goo.gl/LFkI4u http://goo.gl/dYJvrJ http://goo.gl/cicdbA

http://goo.gl/gL1TDa

Mercedes incorporated a hologram billboard.

Instagram uses in its advertising campaign in France, outdoor advertising.

German beer brand Bergedorfer Beer wanted to visualize your slogan: "cook with love“.

Outfront is flooding the Grand Rapids market with these billboards. Must be an attention getting start to a campaign.

Series posters IKEA in Saudi Arabia simply and clearly conveyed the availability of products, which is available on the Swedish manufacturer.

ADWEEK ran a terrific article on the history of Chick-fil-A’s very successful “Eat nor Chickin” campaign.

http://goo.gl/Ax5sKU

Billboard design tips come from the JCDecaux’s Creative Guidelines.

Reebok has transformed bus stops in simulators.

Marilyn Monroe «scolds» passers-by advertising «Snickers».

Outdoor advertising design firm Out of Home Creative recently launched their OOH Blog with a focus on design and creative.

Outfront 3D billboard warns against texting and driving.

23

13,9

7,8

5,1

5,1

5,0

3,7

3,4

3,1

2,7

2,6

L'Oreal

Seldiko

Olaynfarm

Hexagone

ChaneL

Fitobiotehnologii

UkrainianNational Lotery

Procter&Gamble

Burda

Pandora

57%

10%

176%

63%

245%

395%

244%

-55%

-37%

TOP Categories

43,6

38,8

38,5

34,3

18,7

17,8

11,6

10,1

10,1

7,2

Trade

Cosmetics

Entertainment

Pharma

Wear

Auto

Perfumes

Jewellery

Finance

Alcohol

39%

27%

75%

75%

29%

7%

-5%

-9%

-8%

-35%

2016 vs 2015 2016 vs 2015

TOP Advertisers &

24 Source: Communication Alliance, Budget, Mln UAH. Data is processed by “CCM” Subsidiary Enterprise

Trade category decrease was caused by www.zacaz24.com activity drop vs 2015 while Marks&Spencer shortened its activity vs prev. month

Pandora activity growth led to Jewellery category increase

Cognac products were the main reason of Alcohol category decrease

Fitobiotehnologii increased activity in Hygiene category both vs prev. month and vs prev. year

25

ELLE and Intercontinental Summer Party Date: June, 15th, 2016.

Number of people: 400 guests

Guests: advertisers, celebrities, partners, press.

Luxury place: InterContinental Hotel, Comme il Faut Restaurant with after party in B-Hush Bar

Harper̀ s Bazaar beauty brunches Special brunch is event for readers. Beauty Editor and professionals tell and show how to care about skin and hare in specific period. Format of the event is friendly talking, master-classes, photo sessions, deserts and drinks.

June, 7th, 2016

Place: Moet Terrassa, Arena Place

Beauty Partners:

YSL beauty Brand informed our readers about Summer trends in Make-up, Kenzo – about skin care and GBar did hairdoes.

Jewelry Partner was – FREY WILLE

26

13,8

12,3

8,5

8,1

5,5

5,1

5,1

5,1

4,6

3,9

Natur Produkt

NAT

Victor & Co

Get'man

Zolotiy vik

Megapolis

Poltava Distillery

Russkoe radio

MobilLuck

UkrainianNational Lotery

7%

31%

51%

67%

815%

100%

TOP Categories

41,5

40,3

26,6

22,6

15,9

15,7

9,3

7,0

6,9

6,7

Alcohol

Entertainment

Trade

Pharma

Auto

Food

Realty

Education

Jewellery

Finance

156%

85%

110%

107%

50%

44%

54%

103%

TOP Advertisers &

Source: Communication Alliance, Budget, Mln UAH. Data is processed by “CCM” Subsidiary Enterprise

2016 vs 2015 2016 vs 2015

NAT was the main reason of Alcohol category fall vs prev. month while Get’man was the main reason of category increase vs 2015

MobilLuck increased activity in Trade category in 2016

Djordan Belfort declined activity in Education category vs prev. month. Nevertheless, advertiser grew its activity vs prev. year

The broadcasting started on the 1st of July. Currently, regional radio can be listened on the frequency 67.34 MHz and on the Online Channel “Do TeBe"

Radio "Voice of Donbass" started broadcasting in the south of Donetsk Region

Optimistic forecasts, claimed by the market at the end of last year about radio are justified, and radio investments dynamicsis quite positive (+ 123% compared to the same period last year)

27

Radio Expert: Ukrainian radio shows steady growth

Source: http://goo.gl/ECrPuK

Source: http://goo.gl/TcU6Pq

Hit FM radio station and Elle magazine were the leaders by advertising investments in the 1st quarter of 2016

How much was earned on the radio and press advertising in the I quarter?

Source: http://goo.gl/GUPaed

28

Sustainable leadership is the ultimate goal for Zenith and 2016 media ranking proves it. The major prerequisites of it are 1) superior quality of our products, 2) digitalization, 3) innovations and 4) talents. What drive us and motivate to higher results are our Partners and our strong commitment to value-oriented approach of building brands together.

Denis Storozhuk, Managing Director ZenithOptimedia Ukraine

Ukrainian Advertising Coalition presents media rating 2015. ZenithOptimedia holds 3rd position among media agencies. In the ranking of international advertising holding companies, represented in Ukraine, the leader is Dentsu Aegis Network (DAN). Publicis Groupe leads the list of media groups in Ukraine.

29

Media agencies and media groups 2015 ranking

Source: http://goo.gl/2prgGK

30

The share of sales through mobile devices has significantly increased in Ukraine According to LeBoutique the share of sales through mobile devices grew by 44% vs prev. year and it will be not less than 25% at the end of this year.

http://goo.gl/Kiyd8V

http://goo.gl/lqQUhg

http://goo.gl/PGwoZR

http://goo.gl/CDt0qK

Anna Shahdinaryan about media audience changes Comments about TV and other media audience, economic and demography factors, trends and forecasts.

Over the last two years 76% of Ukrainians became poorer According to the data of sociological research, 48% of Ukrainians claimed significantly decrease of welfare level , 28% claimed light decrease of well-being over the past two years.

Nielsen: why and what for do consumers go to the shop? Latest consumer research by Nielsen Retailer growth strategies showed how the retailer meets the needs of the consumer and which goods attributes the are important for the consumer.

According to "The forecast of consumption of media by Zenith“, time spent on mobile internet usage will increase this year by 27.7%, and this, will lead to consumption of whole media increas by 1.4%. The consumption of other media, including desktop internet, will decrease by 3.4%.

31

ZenithOptimedia: Mobile Internet grows, other media figures fall

Source: http://goo.gl/hUSWm5

Forecasts for the global media market from Zenith

Source: http://goo.gl/fxbho0

Zenith predicts that in 2016 global advertising market will grow by 4.1% to 537 billion US dollars. This is 0.5% less than we had forecast in March. Adjustment of the forecast was caused, first of all, by the devaluation of the Argentine peso.

32

Digital advertising market will double by 2020: Juniper Research Revenues from digital advertising will reach $285 billion by 2020, according to MediaMedia online journal with reference to the results of the study Worldwide Digital Advertising : 2016-2020 by Juniper Research.

http://goo.gl/7UemP4

http://goo.gl/UXOZlv

http://goo.gl/LFRPz2

http://goo.gl/X4qiu8

Digital advertising for the first time overtaken television by budgets in Europe Online segment investments exceed TV budgets for the first time in Europe last year . These data are presented by IAB Europe AdEx Benchmark report

Mobile video advertising will show unprecedented growth over the next 5 years The number of mobile video users will reach 2 billion people by the end of 2022 according to "Global outlook for mobile video: 2010-2021" by Strategy Analytics

Digital advertising will overtake TV by income in 2017. According to PwC's annual forecast media and entertainment spending will reach $ 720 billion by 2020 compared to $ 603 billion in 2015

33

People spend on the mobile Internet 86 minutes a day The amount of time that people around the world spend on the mobile Internet will increase by the end of this year to 27.7% of the total time on the Internet, according to the online magazine MediaMedia

http://goo.gl/3bny2P

http://goo.gl/QSMj48

http://goo.gl/PMD0Yl

http://goo.gl/cqXnRZ

Nielsen figured out what the best media for advertising is According to Nielsen Catalina Solutions study (NCS), magazines provide advertisers with the highest level of return of advertising money (ROAS)

77% of teenagers do not imagine their life without a smartphone, even in summer According to Kaspersky Lab *, 73% of people 14-16 years old can not imagine their life without a smartphone and 49% can not do without social networks.

Most of millenials’ purchases are made on the Internet: UPS The number of online purchases worldwide increased, claim analysts. This is mainly thanks to millenials according to Reed Network magazine.

34 * Click on the image works as direct link to the Source

35

Target

Media

Tools

Decision

Period

Summary

&

Results

36

Lancome Energie De Vie

To attract/inspire multitask young urban women, so she felt that LANCOME understands and helps her to be beautiful and trendy Target

Facebook/Instagram/YouTube/Beauty & Lifestyle sites Media

Period of action June’16 Period

Through integration of media insertions in Display & VOD Ad, YouTube video Ad, Facebook & Instagram video Ad, Brand Lancome invites to own platform http://madeofenergy.lancome.ua/ where users can share their energizes, using their social networks and #madeofenergy.

Beauty and informative content about the energy components of the new

Lancome product, which help young urban women to be on top during the day. Drive key message ‘Show the world WHAT ARE YOU CREATED’

Clicks: 8 532 Impressions: 3 921 439

Total Views 380 693

Period Jun’16

Thank You!

37