TV market TOP categories and advertisers p. 2-8 Other media trends p. 12-17 Global media trends & events p. 18-24 Best cases p. 25-30 Entertainment page p. 31-34

January, 2015

Law innovations: advertisers are evaluating their opportunities and threats Р. 9-11

WGRP All 18-54 50k+ Jan'14 Jan'15 Changes Pharma 47 183 43 477 -8% Products 9 469 12 472 32% Non-alcoholic beverages 8 517 9 577 12% Trade 4 619 7 489 62% Communication 5 848 6 955 19% Alcohol 25 548 5 361 -79% HH Chemicals 7 022 4 481 -36% Hygiene 10 388 4 036 -61% Cosmetics 5 902 2 870 -51% Confections 7 218 2 754 -62% Vehicles 2 847 1 946 -32% HH Appliances 1 140 1 519 33% Computer engineering 1 307 1 426 9% Furniture and Interior 346 745 115% Finance 1 940 677 -65%

TOTAL 155 074 113 738 -27%

TV MARKET. JANUARY 2015

TOP categories

• Activity decreased for 27% compared to the same period last year;

• Such categories showed growth: Products, Non-alcoholic beverages, Trade, Communications, Household appliances, Computer engineering, Furniture and Interior

• Pharma category, despite the season, showed reduced activity;

• A significant fall showed Alcohol category;

• Audio-video equipment category (11th place in 2014) leaves TOP categories

2 Source: Nielsen Ukraine, All 18-54 50К+ excluding social/political ad, entertainment and Mass Media

3 Source: Nielsen Ukraine, All 18-54 50К+ excluding social/political ad, entertainment and Mass Media

TOP CATEGORIES. JANUARY 2015

Such categories showed a significant growth in January 2015:

Products growth due to active media

support of ТМ Flint, Pripravka, Ferma

Non-alcoholic beverages thanks to activity of ТМ

coffe (Nescafe and Jacobs) and tea (Batik, Grace etc.)

Trade activity of large networks of

home appliances, such as Foxtrot, Eldorado, Rozetka

Communication is driven by mobile

operators Kyivstar, MTS and Life

+32% +12%

+62% +19%

4 Source: Nielsen Ukraine, All 18-54 50К+ excluding social/political ad, entertainment and Mass Media

TOP CATEGORIES. JANUARY 2015

Significant reduction of investments to the Alcohol category caused by:

Cease of many vodka brands support: Ridna

Rosa, Morosha, Medoff, Kozatska Rada, etc.

Among the TOP beer brands only

Chernigivske continued its activity in January

-79%

TV MARKET. JANUARY 2015

TOP advertisers

• A lot of large international companies continue to be careful about advertising on TV, such as Nestle & L‘Oreal, Unilever, P&G and other

• 2/3 of TOP advertisers in January are pharmaceutical companies

• Ukrainian companies are leveraging situation of reduced clutter and continuing to strengthen its position in TOP: Farmak, Snack Export, Arterium – local leaders of January

5 Source: Nielsen Ukraine, All 18-54 50К+ excluding social/political ad, entertainment and Mass Media

*Local players

WGRP All 18-54 50k+ Янв'14 Янв'15 Изменения

Nestle & L'Oreal 9 146 6 727 -26% Farmak* 4 611 5 918 28%

Novartis 5 318 5 640 6%

Unilever 4 241 4 160 -2% P&G 7 159 3 191 -55% Snack Export* 1 184 3 054 158%

Stada 1 097 2 673 144%

Reckitt Benckiser 3 926 2 545 -35% Mondelez Ukraine Kraft Foods) 1 542 2 161 40%

Kyivstar GSM 1 427 2 074 45%

Arterium* 1 540 2 059 34%

Richard Bittner 2 312 1 942 -16% Boehringer Ingelheim 1 347 1 894 41%

Sanofi-Aventis 1 692 1 868 10%

Bayer 1 814 1 853 2%

TOTAL 155 074 113 738 -27%

6 Source: Nielsen Ukraine, All 18-54 50К+ excluding social/political ad, entertainment and Mass Media

TOP ADVERTISERS. JANUARY 2015

2/3 of TOP positions are occupied by pharmaceutical companies due to seasonality of medicine placement:

Ukrainian companies show active growth with the support of brands Lumicon,

Farmacol, Lisak and others (Farmak) and Resistol, Altace and others (Arterium)

Activities of brands Theraflu, Otrivin, Voltaren, etc.

The significant increase in comparison with last year.

actively supported brands –

Grippostad and Procosan

Local players Foreign players

7 SoursedNielsen Ukraine, sgroup.dp.ua

TOP ADVERTISERS. JANUARY 2015

National manufacturer of snacks Snack Export, despite the difficult economic situation, actively develops and displays new brands Snekkin and Zubby at the Ukrainian market with an active TV support. New brands enter the market at low price segment which increases their competitiveness in the snacks segment.

https://www.youtube.com/watch?v=jJ8NhKGmDks https://www.youtube.com/watch?v=zojiHMOVBIM

https://www.youtube.com/watch?v=meFCLZIIpnE https://www.youtube.com/watch?v=8wNe8SMD4nA

WEEKLY ТV ACTIVITY 2015

8 Source: Nielsen Ukraine, All 18-54 50К+ excluding social/political ad, entertainment and Mass Media

January 2015 showed the continuing decline of advertisers activity on TV. Although from early February is observed players intensification due to starting of seasonal campaigns for different brands. Market is starting to gradually reaching 2014 volumes.

Low activity in January caused by overall 2015th budgets reduction of main advertisers part, which in 2015 more so optimize their costs and plan their activity at first for a key year seasons for their brands.

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Ths, EqGRP

2015 2014

MAIN NEWS OF JANUARY. CHANGES IN LAW ON ADVERTISING

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In Ukraine from July 1, 2015 beer will be considered as an alcohol beverage. Corresponding restrictions on beer advertising will join into force in the H2’15

CHANGES IN LAW. BEER ADVERTISING

TV Sponsorship

Forbidden: Display labels or label simulations with full or partial image of packaging, usage of any identical parts of commercials Allowed: Display of TM label on the glass surface without product quality characteristics and without simulation images of packaging, its parts; TM image, reproduce texts in which general words are spoken about a product that can generate an association with the product or producer

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TV and Radio

Forbidden direct ad from 06:00 to 23:00. At the allowed time (23:00-06:00) all ads should be accompanied by the warning about alcohol consumption danger, which should be at least 15% of the advertising . Non-alcohol beer advertisings are also unallowable.

Спонсор показу

CHANGES IN LAW. BEER ADVERTISING

OOH

Forbidden in any shape Although allowed: subway advertising, in accordance with Sponsorship agreement with brand logo and words “Sponsored by ...”, registered as trademarks.

11

Digital

Allowed with required warning: «Excessive consumption of alcohol is dangerous for your health» on all formats: • banners • branding • video, etc.

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OTHER MEDIA TRENDS. TV

Possible broadcast ban for Russian movies on Ukrainian TV

Verkhovna Rada amended the law under which initiated the broadcast ban for Russian films which were shot after 1991 and include Russian armed forces, police, public prosecution, and Russian films of all genres shot in 2014. In condition of signing the law by President, changes will join into force after two months of official publishing.

13 Source: http://www.p-o.com.ua/news/2015012210531421916833.html

About 30% of illegal outdoor advertising was removed last year in Kiev: The city has 3.5 thousand advertising structures recognized as illegal, because they have not received the appropriate permission to place. During 2014 Public utility Kyivreklama managed to dismantle 1 700 structures (about 30% of illegal advertising)

OTHER MEDIA TRENDS. ООН

Instagram will make easier its social network for showing commercials

When scrolling news, all videos are played at once, you do not need to press a special button. After stoppage they continue to play. This innovation will provide 100% contact with the consumer and will give advertisers the ability to more effectively use this type of advertising.

14 Source: http://sostav.ua/publication/instagram-zastavit-smotret-reklamu-65563.html

OTHER MEDIA TRENDS. INTERNET

VKontakte will allow to advertise the community in the news VKontakte will enable administrators to promote their pages and community in news. To do this, a set of recommendations has been developed, 4 small banners that contains the name of the public, avatar and click "Go". Advantages for advertisers: innovation will make cheaper and facilitate the involvement of subscribers to the community.

15 Source: http://www.likeni.ru/events/VKontakte-pozvolit-reklamirovat-soobshchestva-v-novostnoy-lente/

OTHER MEDIA TRENDS. INTERNET

16 Source: http://www.telekritika.ua/rinok/2015-01-21/102752

New radio station – Radio ES January 20 on Gala Radio frequencies (100,0 FM) new music and information station “Radio ES” (“European Station”) began its broadcasting. Frequent news releases are planned on air, especially in the morning, useful information concerning the socio-political aspects and culture news in the European Union. Music strategy for the radio station: - Ukrainian music, exclusively in Ukrainian; - modern European music.

OTHER MEDIA TRENDS. RADIO

17 Source: http://www.mediabusiness.com.ua/content/view/42274/46/lang,ru/

The newspaper “Capital” closes the paper version

The owners of the business newspaper “Capital” has decided to cease production of paper version of the publication.

From February, 1 edition will only work on the online version.

“Capital” was the last business daily newspaper in Ukraine.

OTHER MEDIA TRENDS. PRESS

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GLOBAL media trends &

events

SUPER BOWL SUNDAY XLIX

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the most-watched television event in U.S. history

20 Source: Nielsen USA, Adobe Analytics, Twitter Data, Catalyst, Facebook's data team

NBC Sports Live Extra’s live stream of Super Bowl XLIX to desktops and tablets set Super Bowl records

Sunday’s Super Bowl on NBC set a U.S. history television record — up 2.2 million from the previous high

800K average viewers per minute

1.3 million concurrent users

213 million total minutes

SUPER BOWL SUNDAY XLIX

Twitter hailed the Super Bowl XLIX as "the most tweeted @superbowl ever" with a record-breaking tweets amount

28.4 million tweets

65 million people discussed

265 million posts, comments and likes

114.4 million

viewers

SUPER BOWL SUNDAY XLIX

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AD BATTLE WINNERS

BUDWEISER WIN

22 Source: social video advertising platform Unruly

Budweiser had a hit even before kickoff. The beer maker reprised last year's winning combination of a puppy and his Clydesdale friends. This time, the horses help the lost puppy find his way home. Results: • Ad was watched nearly 42 million times ahead of the

game • Topped rankings by iSpot. As of Monday morning,

"Lost Dog" had 2,168,530 shares across Facebook, Twitter and blogs, making "Lost Dog" the fourth-most-shared Super Bowl ad of all time.

https://www.youtube.com/watch?v=xAsjRRMMg_Q

Upon the airing of the “Lost Dog”, at Super Bowl Sunday Minibar app sent a push notification to thousands of smartphone users of the Minibar app, prompting them to buy the Budweiser through the app. Thoughtful multichannel marketing programs complimented a brand's primary TVC investment with the addition of a personal touchpoint. Results: • Minibar’s highest-ever Budweiser sales day • Orders soared 500% compared with the previous week • Dollar sales increased 650% from a week earlier • In-app mobile engagement jumped 400% during the 10 min

surrounding the push notification

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NFL PSA: No More This was the ad to watch during the Super Bowl. As the past year proved controversial for the NFL, this commercial brought to light the issue of domestic violence, which has plagued the league recently. Airing this PSA gave much credibility to the stand the NFL is taking against domestic violence and sent a powerful message to those watching.

https://www.youtube.com/watch?v=rTJT3fVv1vU

Always: Run Like a Girl The female-focused brand sparked a conversation nationwide with their ad aimed at empowering young women with the hashtag #LikeAGirl. Redefining what it means to “run like a girl”, or “throw like a girl”. Without marketing any of their products, Always gained major brand recognition with this ad and should be seen as synonymous with female empowerment.

http://youtu.be/yIxA3o84syY

Coca-Cola: Make It Happy Coke sent a resilient message to young people with an anti-bullying ad. Keeping with this year’s trend, Coke hit the mark on sending a strong message to one of the largest audiences they have throughout the year. Taking a stand against bullying with a multi-million dollar “feel good” ad shows what Coke stands for as a brand, and that is what resonates with audiences across the country.

http://youtu.be/ibgvkXm9Qkc

NFL, P&G AND COKE: HOW THEY WON THE SUPER BOWL

SUPER BOWL SUNDAY XLIX

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So, what is working?

strong, emotional, or bold message meant to resonate with the audience

promoting not a specific

product, but a relevant message

Storytelling

TV + SMM* TV+immediate sales Media *for Ukraine the most relevant social network to communicate through is Vkontakte

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Best cases

Ukrainian & worldwide

UKRAINIAN CASE. SOCIAL MEDIA

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CAMPAIGN: Lee Jeans Marathon, SPN Ukraine, 2014

SITUATION: The political situation in Ukraine is hot. It’s hard for brands to grab people’s attention, especially in social media. So it was for Intertop, the leading Ukrainian retailer. It runs over 100 brands, including the legendary Lee jeans, which celebrated its 125th anniversary in 2014.

TASK: Key arms were: • To increase the number of Intertop’s Facebook fans • To engage the audience • To demonstrate benefits of Lee Jeans

SOLUTION: Lee decided to tell a story of one pair of Lee jeans by placing it in an unusual setting and holding fun experiments that would help the target audience see the product in a new light and delivered its key USPs. This was done in the format of the Lee Jeans Marathon – an online contest on Facebook.

RESULTS: • 1 week + €20 ad spends, cost of 1 contact – only €0,001 • 1,335 new FB fans (=monthly growth of €270 in ad cost) • 3,557 participants (vs an average of 400) • 1,335 comments per post on average (vs usual 35-40) • Total reach 97,869 unique users • 273% ROI

https://www.facebook.com/INTERTOP.UA http://vimeo.com/104500582

UKRAINIAN CASE. DIGITAL

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CAMPAIGN: Homka dream team, Grape Ukraine, 2014

SITUATION: TM Homka is #2 player in Ukrainian roasted seeds market with 12% share of market. The leader has 49%

TASK: Increase market share

SOLUTION: To withdraw brand from regional to national market. As a communication platform took examination. To prevent seasonal decline in sales (June-July) affect the loss of market share brand decided to reveal communication platform through Football Championship and become a part of situation of studying football information online.

RESULTS: • Sales growth by 4% (June) and 12% (July) • Market share increased from 12% to 27% for 6 months • 40K users took part in the game

http://dreamteam.homka.ua/auth http://vimeo.com/111119809

WORLD CASE. INNOVATIVE MOBILE

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CAMPAIGN: Pay Per Laugh, TeatreNeu, Spain

PROBLEM: In mid-2013, the art industry in Spain suffered one of the hardest blows ever. The government decided to raise the tax for theatrical shows from 8% to 21%, resulting the greatest loss of audience in living memory. 30% less public in a year. Average price of a ticket decreased by 20%. IDEA: Independent comedy theatre Teatreneu decided to look at the situation with humor: “Pay per laugh” – the first comedy theater where you pay for what you consume. REALIZATION: Teatreneu fitted each seat with a facial recognition that detects the smile and propose the following deal to spectators: “Entrance will be totally free if the show produces no laugh you don’t pay anything. However, if you laugh you have to pay €0.3 for each smile (quite a reasonable price in Spain this days)”. Maximum amount to pay was 80 laughs or €24.

RESULTS:

• Average price of a ticket increased by €6 compared to traditional shows

• New paying system was covered by main national media channels, what produced +35% more spectators

• Each Pay per laugh seat produced €7,200 of ticket money compared to €4,400 that was normally taken https://vimeo.com/97708026

WORLD CASE. PROMO ACTIVATIONS

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CAMPAIGN: Bentley Burial, ABTO*, Brazil, 2014

PROBLEM: Brazil has very few organ donors per capita. ABTO needed to generate a public debate and increase the number of donors. Insight: people are not shocked by the burying of organs that could save lives, but they are by the burying of a luxury car. IDEA: Rising of awareness about donor problem in Brazil through engaging famous eccentric billionaire Chiquinho Scarpa. REALIZATION: Chiquinho posted on his FB page that he would bury his $500K Bentley in the yard of his mansion, inspired by the pharaohs. Scarpa became Brazil’s number one villain. The national media strongly criticized his decision on every TV channel, radio station, newspaper, magazine and internet portal. In the burial event, with the media broadcasting live, after placing the car inside the grave, Scarpa interrupted the funeral and declared: “I won’t bury my car, but everybody thought it absurd. Absurd is what people do everyday: bury their healthy organs”.

RESULTS:

• Organ donations increased by 31.5% in just one month • More than 172 million people impacted on social networks

alone, through only six Facebook posts • $22m of earned media with ZERO investments in media • Production cost was only $6,000 – total cost of the campaign. https://vimeo.com/97708026

*Brazilian Association Of Organ Transplantation

WORLD CASE. OOH+DIGITAL+POS

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CAMPAIGN: Paceman, Mini, Vizeum Australia 2014

OBJECTIVE: Launch of Paceman – different, a low volume car designed to appeal to a more stylish and discerning audience than the traditional Mini enthusiast. Immune to garish glossy car adverts, this audience chooses to go its own way. IDEA: Mini Paceman Art Series from five of Australia’s most original and celebrated artists which interpreted car in their own unique way. REALIZATION: Each piece of art was celebrated on a giant billboard. Brand created short films profiling each artist and their final work, and distributed this on-air and online. Also was launched the Mini Paceman store. Six leading international designers was invited to use the space as part retail store, part artists’ studio creating the perfect space to demonstrate the product and brand promise. Activity was spread further through The Pace, a limited run paper co-curated by Men’s Style and the collaborators, and distributed through cafes and retail outlets across Australia.

RESULTS:

55% sales growth over the campaign period, compared to the same period the previous year

https://www.youtube.com/watch?v=7k7WvNN1GDs

ENTERTAINMENT PAGE. CROSSWORD

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Today our Knowledge Tree hide on its branches the most vivid and noticeable media events of 2014 in Ukraine and all over the world. Let's get back together in 2014 and go through its highlights. Our smart Tree on the next page, clues – on p. __. Good luck!

CROSSWORD

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Use the clues to fill Tree at the next page

v i z e u m k n o w l e d g e t r e e

CROSSWORD

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Here we start from.

If you will suddenly get tired or want to check yourself –

please take a look at following page

v Radio with news content, launched nationwide in early 2014

i Common project of all national TV channels, launched in March 2014 in support to maintain integrity of Ukraine

z Consumer Trend in 2014: shifting from standardized consumption in favor of individual preferences

e The new weekly magazine + site headed by ex-chief editor of "Correspondent"

u First Ukrainian private international satellite TV channel broadcasting in English, a part of "1+1 media"

m Radio station №1 of 2014 (according to popularity among the audience)

k Rapidly growing online radio project founded by "Just Radio" expatriates in 2014

n Big publishing house, which left Ukrainian press market in 2014 (Esquire, National Geographic, Men's Health mags)

o Social trend about love to native country in Ukraine, rapidly spread among all Ukrainians against the backdrop of 2014 events

w World-famous event, which put the historical record of audience attention in the US (February 2015)

l Brand which got the Grand Prix at Cannes Lions 2014 with an advertising campaign «Happy ID»

e Rapidly growing digital media tool in 2014, frequently used to complement TV campaigns

d Unique media channel in Ukraine, showed an investments increasing in 2014 with the overall market decline

g Fastest growing social network in the world in 2014

e Brand #1 in the world in 2014 (according to Millward Brown rating of the most valuable brands)

t «… consumption» – Consumer Trend 2014 in Ukraine: economy with no loss of quality

r Category №1 by activity at the Ukrainian TV in 2014

e The most famous and popular by people engaging worldwide charity flashmob of 2014 (and in Ukraine including)

e The most popular TV show among Ukrainians in 2014 (according to the search requests analysis by Google and Yandex) (title in English)

CROSSWORD KEY

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p e s i r u c c s a p o e o h r p e c i g n n i i a r a i n o s b b a o t s t v s o m p u a e l v t s r b c i t g a h c c d i o f o a i o o d a l r a k h

v i z e u m k n o w l e d g e t r e e e n a k r o t l a o i r m t l s a t v r a m i g a a o t y i r a t a z i m c r i a o e i y m t h n m n m a a s y e e l l t a d l r t i e a o a n n d g a a e y

Check yourself here

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See you in the next issue!