D I G I T A L

MARKET

O V ERV I EW

2014

STRU C TURE

WORLD

01

INTERNET FACTORS COMPARISON

UKRAINE ON THE MAP OF EUROPE

MEDIA CONSUMPTION TRENDS

MEDIA GIANTS BATTLE

UKRAINE

02

WORLD

I N T E RN E T F A C T ORS C OMPAR I S ON

UKRAINE OVERTAKES

THE WORLD AVERAGE

PENETRATION INDEX

BECOMES CLOSER TO

THE DEVELOPED WORLD

I N T E RN E T P E N E TRAT I O N

2014:

78%

DEVELOPED

40%

WORLD

32%

DEVELOPING

DEVELOPED COUNTRIES WORLD DEVELOPING COUNTRIES UKRAINE

4%

23%

43%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

UKRAINE OCCUPIES

A MIDPOSITION

EUROPEAN LEVEL

IS JUST NEXT DOOR

UKRA I N E D I G I T A L C APA C I T Y

UKRAINE:

69%

URBAN POPULATION

43%

INTERNET POPULATION

27%

SOCIAL NETWORKING

PENETRATION

URBAN POPULATION INTERNET POPULATION SOCIAL NETWORKING PENETRATION

GLOBAL UKRAINE EUROPE

WORLD

UKRA I N E O N T H E

MAP O F E UROPE

UKRAINE TAKES

THE 9TH

PLACE

GREAT OPPORTUNITY

TO CONNECT UKRAINIAN

CITIZENS TO THE WEB

TOP 1 0

EUROPEAN C OUNTR I E S B Y I N T ERNET US ERS

9,8М

17,9M

19,0M

15,0M

# OF INTERNET USERS IN UKRAINE

DIFFERENT SOURCES – DIFFERENT FIGURES

PENETRATION ACCORDING TO “WE ARE SOCIAL”

THE GREATER

INVESTMENTS IN DIGITAL

=

THE MORE REWARDS

TODAY ONE INTERNET

USER ACCOUNTS FOR

~ 13 USD OF DIGITAL

INVESTMENTS

TOP 1 0

EUROPEAN C OUNTR I E S B Y I N T ERNET US ERS

DIGITAL SPENDING,

BLN $

# OF INTERNET

USERS ROMANIA

UKRAINE

POLAND

SPAIN

ITALY

NETHERLANDS

FRANCE

RUSSIA

GERMANY

UK

=

=

BY INTERNET AUDIENCE

BY $ SPENDING PER USER

BUBBLE SIZE = $ SPENDING PER ONE INTERNET USER

BY DIGITAL AD REVENUE, 2013

#6 OUT OF TOP

HUGE POTENTIAL

FOR DEVELOPMENT

UKRA I N E O N T H E MAP O F E UROPE

TERRITORY

#2

MOBILE USERS POPULATION SM USERS INTERNET USERS

#6 #7 #7 #9

UKRAINE

MED I A C O NSUMPT I O N T R ENDS

INTERNET

CONSUMPTION

DOUBLED

FOR THE LAST 5 YEARS

I N T E RN E T . WEEK LY C O NSUMPT I O N

ACTIVE DAY TIME

(FROM 7:00 TILL 23:00)

IS SPENT BY UKRAINIAN

CONSUMER IN THE

INTERNET 4.4 4.7

6.0

6.9

7.6

8.6

2009 2010 2011 2012 2013 2014

HOURS 2014:

54% OF

x2

TRADITIONAL MEDIA

CONSUMPTION IS

FALLING DOWN

TV IS A LEADER

AMONG TRADITIONAL

MEDIA CHANNELS

TRAD I T I O N A L M ED I A . WEEK LY C O NSUMPT I O N

19%

3%

33%

42%

TV OOH RADIO PRINT

2009 2010 2011 2012 2013 2014

17.9

13.8

6.4

2.8 1.6

4.3

13.4

14.4

HOURS

MEDIA CONSUMPTION & MEDIA INVESTMENTS

INTERNET AS A MEDIA

CHANNEL NEEDS

ADDITIONAL MEDIA

INVESTMENTS

INTERNET OTHER MEDIA TV

20%

34%

18%

43%

SO WE HAVE BIPOLAR SITUATION

TV

INTERNET

old consumer habit

to have TV background while doing

something at home

essential part of life

for today’s consumer

OVER-ESTIMATED

UNDER-ESTIMATED

UKRAINE

MED I A G I A N TS BATT L E . T V V S I N T ERN E T

2002-2013

GFK UKRAINE

NIELSEN

RESEARCH

APPROACH

PEOPLE-

METER

PEOPLE-

METER

MEASUREMENT

TECHNOLOGY

SIGNAL

FREQUENCY

VOICE

GEOGRAPHY

ALL UKRAINE

SAMPLE

2 540

3 740

AUDIENCE

HOUSEHOLDS WITH 1+ TV

INDIVIDUALS 4+

HOUSEHOLDS WITH 1+ TV

INDIVIDUALS 4+ 2014-2019 ALL UKRAINE

TV VIEWING ANALYSIS

STABILITY &

MONOPOLY OF THE

INTERNATIONAL

PLAYERS

SLIGHT IMPROVEMENT

IN MEASUREMENT

TECHNOLOGY AND

GROWTH IN SAMPLING

+ URL

+ TIME + HABITS

+ AGE

+SEX

+ REGION

FROM TO SITE-CENTRIC CONTENT-CENTRIC

INTERNET ACTIVITY ANALYSIS

SEVERAL PLAYERS

DEVELOP AND IMPROVE

RESEARCH APPROACH

TO GET IN-DEPTH

CONSUMER INSIGHT

I N T E RN E T & T V C O NSUMPT I O N

2 0 1 4 / 2 0 0 9 A M O N G D I F F E R E N T A G E G R O U P S

YOUTH 12-18 MIDDLE AGE 21-35 OLDER 45+

30%

67%

24%

91%

11%

165%

GROWTH OF INTERNET

CONSUMPTION AMONG

ALL AGE GROUPS

RAPID SWITCHING OF TV

VIEWERS TO INTERNET

INTERNET TV

81 78

17

38

119%

I N T E RN E T & T V C O NSUMPT I O N

2 0 1 4 / 2 0 0 9 A M O N G T V H A V Y V I E W E R : E V E R Y D A Y W A T C H I N G

% OF PEOPLE

5%

LOW TV PRICE IN

COMPARISON WITH THE

WORLD TENDENCY

WORLD CENTRAL

EUROPE

RUSSIA NORTH

EUROPE

WESTERN

EUROPE

UKRAINE

89.9 88.6 86.3

65.7

59.5

14.0

CPT, UAH

WHAT IS A SECRET OF TV SUCCESS IN UKRAINE ?

WHAT IS A SECRET OF THE INTERNET IN UKRAINE ?

PRECISE

TARGETING

TV PLANNING APPROACH INTERNET PLANNING APPROACH

PLANNING

TARGET

AUDIENCE

WHAT IS A SECRET OF THE INTERNET IN UKRAINE ?

LOWER CPT IN

COMPARISON WITH TV

ONLINE VIDEO WITH TARGETING, ₴

20-45 20-45

DIRECT TV, ₴

~ 1 500

~ 2 500

~ 1 600

~ 3 500

* # OF TRP'S CORRESPONDS TO EFFECTIVE TV & INTERNET REACH 1+

AND AS A RESULT

DIGITAL DRIVES GAINS

WILL ACCOUNT FOR OVER 25%

OF GLOBAL MEDIA ADS THIS YEAR

AGENCY FORECAST OF DIGITAL AD SPENDING SHARE

DIGITAL BECOMES

MORE APPROPRIATE

AS A COMMUNICATION

PLATFORM FOR

ADVERTISERS

21%

23% 26%

28% 30%

2012 2013 2014F 2015F 2016F

GLOBAL EUROPE UKRAINE

2012 2013 2014F 2015F 2016F 2012 2013 2014F 2015F 2016F

24% 26%

28% 30%

32%

7%

18%

22%

24% 25%

C O N T A C T S :

+ 3 8 0 4 4 3 9 0 5 8 5 5

I N F O @ M E D I A H E A D . C O M . U A