Media Market Digest November 2016

Volume of Media Advertising Market in 2016 and forecasts for 2017

2

Jan-Nov’2016 in term

of EqTRP’s vs Jan-

Nov’2015

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

Subsidiary Enterprise

Key facts

SOR average 91% In Nov’2016

Nov’16 vs Oct’16

in EqTRP’s

Netflix engaged in localization of their content for Ukraine

It stays close to critical 90% level since 23 week

342,

108,7

75,5

75,

71,8

62,6

48,6

48,0

46,9

36,7

Pharma

Food

Hygiene

Telecom

Trade

Cosmetics

Confectionery

Cold AFB

Entertainment

Auto

13%

10%

19%

4%

89%

2%

51%

3%

-7%

-6%

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

Processed by “CCM” Subsidiary Enterprise

8%

20%

8%

36%

26%

1%

0%

-6%

-42%

-19%

TOP Categories 2016 vs 2015 Nov’16 vs Oct’16

Pharmak and Bittner were the main drivers of Pharma category growth vs prev. Month.

Danone drove Food category growth vs prev. Month and prev. Year.

This advertiser increased its activity twice in Food category in

2016.

Unilever became the main reason of Hygiene category drop vs prev. Month

48,9

47,5

39,7

34,4

29,6

27,5

25,6

23,7

23,7

23,3

Procter&Gamble

Nestle

Pharmak

Reckitt Benckiser

L'Oreal

GlaxoSmithKline

Kyivstar

Vodafone

Sanofi

Unilever

14%

22%

14%

99%

2%

32%

-12%

-8%

-7%

-17%

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

Processed by “CCM” Subsidiary Enterprise

35%

4%

50%

0%

-10%

-32%

-41%

-15%

-20%

-10%

TOP Advertisers 2016 vs 2015 Nov’16 vs Oct’16

Kyivstar provided Telecom activity decrease vs prev. Month and prev. Year.

IDS Group drove Cold AFB activity drop vs prev. Year.

Pepsico increased activity that had a positive impact of category

growth vs. Prev Month.

Lifecell decreased its activity, but it didn’t stop Trade category growth vs October

L’Oreal increased activity twice in Cosmetics and Perfumes categories vs prev. Year

Source: http://goo.gl/rwQu1Q

All-Ukrainian Advertising Coalition summarized 2016 year results and did market forecast for the next year. TV commercial increased by 36% in 2016. Share of sponsorship significantly increased in TV commercial (approximately by 65%) in 2016. On the one hand, legal restrictions on beery commercial made an impact on this – budgets of beery sponsorship increased at least by 2,5 times.

TV commercial in 2016 & 2017, − evaluation by ADC

Source: http://goo.gl/7uSDFT

TV commercial is going to rise in price by 35% next year. Sales houses said, that many clients had came back on TV that year and commercial blocks had been overflowing. But prices are still very low and market balance isn’t even close.

How TV commercial will be sold in 2017?

TV Market forecast is too optimistic. There is no source for such a high growth +30%: political uncertainty and economic turbulence, slow GDP growth, consumption growth by 12-15% in volume. Zenith expectations - +20% market growth

Maxim Pozhar, TV Buying Group Head Zenith Ukraine

Average view duration of video on mobile devices has increased by more than 200 hours per year in the last 4 years, raising total time of TV and video viewing by 1,5 hours per week. Strong growth of video viewing on mobile devices (+4 hours per week) is taking place against a backdrop of declining popularity of traditional TV (-2,5 hours per week).

At the same time, role of traditional TV still remains significant against a backdrop of actively developing mobile consumption of video.

Members of UATF quiz are noting a similar pattern on Ukrainian market — TV consumption has slightly decreased in the last 10 years (17–23%), but about 50% of video consumption account for this format.

TV vs video - fifty-fifty

Source: http://goo.gl/78S1i9

Serial «Vostochnyie sladosti» (Star Media production), which was showed by Inter, has become the best soap opera premiere of the fall on Ukrainian TV in mass all-Ukrainian audience 18+ (rating 5,7%, share 14,8%).

The final series of soap opera, which came out on 10 November, got share of 19% and became the leader of it’s slot

«Vostochnyie sladosti» on Inter has become the highest-rated soap opera

of the fall on TV

Some of rating Ukrainian channels may disappear from several cable networks in 2017. Cable guys and TV crew hadn’t agreed.

Ukrainian media groups will get opportunity to bill cable operators for the access to their channels following the entry into force of some changes in law on 1 January.

Ukrainian channels are becoming paid from 1 January

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

Source: https://goo.gl/NuKRN3

9

10

235,5

210,8

174,9

149,4

136,3

110,2

109,1

103,6

96,1

87,4

CarlsbergGroup

Citrus

Nestle

Kyivstar

DouweEgberts

Allo

ReckittBenckiser

L'Oreal

Mondelez

WargamingCompany

669,9

374,0

288,6

289,5

286,1

222,2

222,0

190,2

210,7

207,8

Trade

Entertainment

Alcohol

Hygiene

Telecommunications

Cold AFB

Culinary

Hot Beverages

Pharma

Confectionary

Apr-Nov’2016

Source: Gemius Ad Real, MLN Impressions. Data is processed by “CCM” Subsidiary Enterprise

Apr-Nov 2016

TOP Categories TOP Advertisers & VOD

11

Rozetka

YandexN.V.

RabotaUA

Allo

101XPGamesLimited

RusskayaLiniya

GEPURGroup

Citrus

MobtopGroup

VulkanCasino

Trade

Entertainment

Finance

IT

Media

Tourism

Wear

Telecommunications

Auto

Real estate

Aug-Nov 2016

Source: Gemius Ad Real, MLN Impressions. Data is processed by “CCM” Subsidiary Enterprise

Aug-Nov 2016

TOP Categories TOP Advertisers & Display

On a platform known for its power of mobile discovery, today we’re excited to announce an easier experience to shop the products you love on Instagram.

12

Shopping Coming to Instagram

Source: https://goo.gl/xecua0

VK.com started to test audio ads

Source: https://goo.gl/BFpiIF

Social network has selectively started to test audio ads which users noticed in audio player code more than a month ago.

Instagram announced the launch of new shopping features - purchasing products directly from the Instagram feed. Such functionality opens new opportunities for brands in converting consumer engagement into trial in more user-friendly way. This transforms social media to holistic ecosystem with engagement and sales experience.

Maryna Grygorenko, Digital Director Zenith Ukraine

It’s time to take local presence on Facebook more seriously, because Facebook is taking some big steps to make itself a stronger platform for location marketing, especially on-demand commerce at a local level.

13

It’s Time to Take Facebook Seriously for Location Marketing

Source: https://goo.gl/tLhfwN

Yandex will treat online

Source: https://goo.gl/mxms8r

Company is planning to launch of service which provides remote medical services via video.

Today we’re updating our metrics to give our partners and the industry more clarity and confidence about the insights we provide.

14

An Update on Metrics and Reporting

Source:http://newsroom.fb.com/news/2016/11/an-update-on-metrics-and-reporting/

Zenith: programmatic will grow on 31% in 2017

Source: https://goo.gl/lrW8pN

Programmatic advertising market expects global growth in 2017, says seonews.ru. According to a recent study conducted by Zenith, it will grow by 31%, leaving behind all other digital channels, including social networks (expected growth - 25%) and online video (20%). Also, according to the research, programmatic has become the main method of purchase display traffic. By the end of 2016, its share will be 51% and will increase to 58% in 2017

15

126,5

31,2

24,5

20,8

18,7

18,5

17,4

16,7

16,5

15,7

Rozetka.ua

Fozzy Group

Nova Poshta

Epicenter

Sport Life

Samsung

Allo

Kyivstar

Metro

Nestle

60%

116%

8%

7%

12%

2%

83%

36%

-13%

-7%

TOP Categories

532,0

190,5

128,2

120,3

91,2

69,4

52,5

41,9

33,4

32,6

Trade

Realty

Auto

Entertainment

Telecom

Finance

IT

Restaurants

Medicine

Sport

22%

66%

66%

21%

36%

9%

40%

30%

16%

-41%

Rozetka.ua decreased activity but it didn’t stop Trade category growth vs prev. Year

ATL was the main reason of Auto activity growth vs prev. Year

Nova Pochta provided Telecom category growth vs prev. Year.

Lenovo and TP-LINK drove category increase vs prev. Month.

2016 vs 2015

16

TOP Advertisers &

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

Enterprise

2016 vs 2015

The media business continues a series of publications on the topic of Audience in media. After the TV audience are turning to outdoor advertising. About what effect on the audience in the Out-of-Home media, how the consumption of this type of advertising, with the MB shared PR-director of the Group of Companies "RTM-Ukraine" Tatyana Denisyuk.

17

How have changed audience in the Out-of-Home Media?

Source: https://goo.gl/7Zm8bp

Director of Perekhid Outdoor, Larisa Bulatova: "As the operator of outdoor advertising I am a part of the urban infrastructure and visual space of the city. This leaves us with some responsibility for formation of informational and cultural environment in which we exist "

18

Measuring outdoor advertising in Ukraine in 2017 will continue Doors Consulting

Source: https://goo.gl/T5zu0P

DIGITAL + OOH: interactive future of out of home

November 9 the Industrial Committee of outdoor advertising (ICOA), held a workshop on the topic of interaction between ooh and digital. Under the ICOA WORKSHOP speakers presented a complete picture of the interaction between ooh and digital, the development of media solutions in this area, and also presented successful cases of combination of these examinations on the example of local and international campaigns.

Source: https://goo.gl/a2j0lj

19

The future classic outdoor advertising: opinions of the British market

Outside the home: the revival of out-of-home

Source: https://goo.gl/a440Zi

In the British outdoor advertising this year, there were three major transactions. One of them became the most profitable in the history of advertising. Other transactions — conversion into a digital format advertising on thousands of bus stops in London and replace payphones with interactive terminals with Wi-Fi (Clear Channel). Ooh-is revived, and is accompanied by new contracts, technological development, changes in human capital.

In The Sunday Times published an article on this topic with a great title: "Advertising giant heralds the death of the billboards". But, as noted by a representative of Clear Channel: "Classic outdoor advertising continues to provide advertisers with fantastic opportunities." Other operators also claim that the classic advertising plays an important role in the marketing mix.

Source:

https://goo.gl/zh8oBV

Google, Beacons and Digital Signs

Dave Haynes at Sixteen Nine has a fascinating podcast interview with Chris Lydle, Google lead for digital signage and kiosks. Lydle says Google doesn’t want to compete in developing a content management system for digital signage but that it wants products like Chrome, Android and Eddystone to be used as the backend infrastructure for digital signage.

Source: https://goo.gl/jj6zN9

20

126,5

24,3

20,6

15,3

14,0

12,5

12,3

12,0

11,5

10,5

Rozetka.ua

L'Oreal

Nova Poshta

Seldiko

ModnaKasta

ATL

Carlsberg Group

Mondelez

Mail.ru

Nestle

4%

197%

60%

24%

-13%

-32%

-16%

-49%

TOP Categories

369,5

91,9

86,9

75,4

71,1

43,4

41,2

39,7

39,5

39,5

Trade

Entertainment

Auto

Cosmetics

Pharma

Telecom

Finance

Wear

Alcohol

IT

15%

6%

42%

32%

19%

78%

64%

-15%

-7%

-53%

ATL was the main driver of Auto activity growth vs prev. Year

Yves Rocher was the main reason of Cosmetics category increase vs prev. Month

Rozetka decreased activity but it didn’t stop Trade category growth vs prev. Year.

ModnaKasta activity drove category growth in 2016.

TOP Advertisers &

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

2016 vs 2015 2016 vs 2015

22

129,5

24,0

22,8

20,6

16,5

15,5

15,1

14,0

12,5

12,4

Rozetka.ua

Natur Produkt

BayaderaLogistik

Nova Poshta

Victor & Co

Get'man

Zolotiy vik

ModnaKasta

ATL

Carlsberg Group

546%

204%

49%

110%

-12%

-9%

-31%

TOP Categories

339,4

104,4

97,9

87,0

54,9

46,5

45,9

45,7

41,8

37,0

Trade

Alcohol

Entertainment

Auto

Pharma

Realty

Telecom

Food

IT

Finance

27%

66%

23%

96%

44%

18%

106%

63%

10%

-49%

Alliance Novobud and ORBI GROUP are the main drivers of Realty category growth vs prev. Year

IT activity was decreased due to computer game group drop.

Wargaming and Mail.ru were the main drivers of its decrease.

Arterium started activity in Pharma category that provided category growth vs prev. Month

ATL increased activity up to 3 times and drove Auto category growth twice vs 2015

TOP Advertisers &

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

2016 vs 2015 2016 vs 2015

The article tells about what awaits Ukrainian advertising and communication market in 2017 - more changes in the prices and transformations in the pricing system, more innovation and krossmedia, more videos, financiers and trade on the air.

23

5 radio advertising predictions from Alexandry Samojlenko for 2017

Source: https://goo.gl/LEUDuZ

24

It turned out that the settlement of marketing results in 2016

coincided with the third anniversary of the Maidan. The experts

evaluated the different achievements of the Revolution, but the

general idea is not so bad: there are positive and tangible results and

it is important to note them.

Mobile advertising: results of the third quarter of 2016

25

Advertising and communications industry in Ukraine in 2016, despite the continuing, to put it mildly, "complexity" in the political and economic life of our country, has moved from the fall and stagnation to growth. In the television advertising in 2016 significantly increased the share of sponsorship, whose growth was around 65%.

The volume of media advertising market in 2016 and forecasts for 2017

Source: https://goo.gl/FMdQxv

IAMI results of 2016 and forecast for 2017

Source: https://goo.gl/TQd2IW

The third quarter was no exception from the last year's trends -

budgets for mobile advertising, continued to grow, while the

number of active advertisers have increased each months. Such

growth pushed advertisers quickly adapt to the mobile Internet

consumption.

Source: https://goo.gl/hA1JAH

Key global trends in advertising are evidently influence on Ukrainian market. It’s a growth of advertisers interest to digital and content. So TV content solutions and video segment of internet ad showed impressive growth. Next year won’t be an exception and advertisers will definitely invest to areas with the highest audience interest.

Vyacheslav Levchenko , Media Director Zenith Ukraine

26

5 predictions for the mobile advertising market by Admixer for 2017

Source: https://goo.gl/rjvtp2

Sostav.ua continues to wonder what will happen to advertising and communication market in 2017. Article provides video advertising predictions from Julia Tribushnoy, Director of Development StarLight Digital Sales business.

5 video advertising predictions from Julia Tribushnoy for 2017

Source: https://goo.gl/9YyWLI

At the beginning of 2017, the mobile audience will be half of all Internet users in Ukraine. For advertisers, this process means one thing - to build a complete communication with the target audience without a mobile component will be very difficult. Therefore, the mobile advertising market will be a very dynamic development in 2017. Which trends will contribute to this - read the forecast sales-house Admixer.

The results of participation of Ukrainian agencies in advertising festivals in 2016

27

Ukrainian Advertising Coalition offers the results of the study Advertiser's Choice 2016. Members of the jury Effie Awards Ukraine 2016, representing advertisers, were invited to participate in an anonymous survey and called the agency of various specializations (creative, media, digital, marketing services), which they would be invited to a "perfect" tender.

Advertiser’s Choice 2016

Source: https://goo.gl/YA3aig

UAC represents the achievements of Ukrainian agencies on creative advertising festivals in the context of relevant

competitions in 2016. All players of advertising and communication market in Ukraine will be able to find out who created

in 2016 the best prints, the best digital-projects, campaigns of marketing services, the most creative commercials, etc.

Source: https://goo.gl/FmQV0y

Zenith shows impressive dynamic of rank growth through the last 3 years gaining 4-5 position in 2016 while just 2 years ago it was 9-11. The reasons behind such upgrowth are strong expertise, passionate team, innovations and challenging and progressive clients.

Vyacheslav Levchenko , Media Director Zenith Ukraine

7 social media marketing trends that will dominate in 2017 Forbes columnist Jason Demers pointed out that marketing in social media will be a long time, explaining the impact of networks of one key characteristic - the fact that they continue to develop.

10 marketing predictions for 2017 The digital landscape is changing very quickly, and many of the trends that worked last year may no longer be as effective. 2017 will be the year of the video. Disappearing content is a part of an emerging social landscape. Personalization has been an important trend in 2016, but in 2017 it promises to enable turbo mode.

28

What marketers need to focus in the coming year So, what to pay attention to in 2017? To make the right choice easily, Cisnamy Vasadze, Head of Business Development Department ICF legal service, has made a short list of trends in marketing in the following year, both relating to digital sphere and general strategic matters.

https://goo.gl/cu7XDC

https://goo.gl/a2V9us

https://goo.gl/QvXxBZ

Top 7 online marketing trends in 2017 Augmented reality, live broadcasts, data visualization, native ads, targeting specific niches and other trends, for which brands should pay special attention not to fall behind in 2017. https://goo.gl/NSPdBR

The future of online retail: Digital-buyer 2.0 Over the past few years, digital has changed the competition in e-commerce: the competitive advantage depends not so much on the product and the behavior of your competitors in the market, but on the experience that gets your customer together with the purchase.

Ericsson: the growth of mobile data traffic will be 50% per year According to the report, the leader in North America will be 5G, where by 2022 this communication standard will have about a quarter of mobile connections. 5G is set to enhance mobile broadband services and enable a wide range of new business models and use cases, including Internet of Things (IoT).

29

Look out marketers, here comes Gen Z! The end of the year is approaching and Kantar Millward Brown has just issued its 2017 Media &Digital Predictions. As usual the predictions are packed with thought-provoking ideas, but the one that stood out for me was Joline McGoldrick’s prediction that marketers will shift attention from Millennials to Generation Z.

https://goo.gl/3ELN0p https://goo.gl/4jX5La

https://goo.gl/Z7Qj7M https://goo.gl/5QyEIX

Video social media has an impact on 74% of buying decisions Company Brightkove found that almost half (46%) viewed the video on social media have made a purchase as a result of watching videos on the brand, and 32% have thought about making a purchase.

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

31

Thank You!