Media Market Digest January 2017

Programmatic Delivery: The Future of Content Marketing and Promotion?

2

Jan’2017 in term of

EqTRP’s vs Jan’2016

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 up to 80% In Jan’2017

The highest rate in January for the

last 7 years

Jan’17 vs Dec’16

TV market is recovering after the crisis & is close to 2014

in EqTRP’s

-13%

125

101 111

122

Jan'14 Jan'15 Jan'16 Jan'17

‘000 EqGRP

48,1

12,4

10,5

7,1

5,8

4,7

4,2

4,2

3,7

3,1

Drugs

Food

Cosmetics

Trade

Telecom

Hygiene

Entertainment

Hot Beverages

Confectionery

Auto

34%

29%

48%

29%

47%

183%

10%

-1%

-27%

-7%

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

Processed by “CCM” Subsidiary Enterprise

In January 2017 compared with December 2016 Confectionery category decreased due to the end of the Christmas holidays.

• But it increased thank to the addition of new players compared to the same period in 2016.

Category Drugs still in the lead. Added new players such as Natur Produkt, Novomed Pharma Private Limited and Joint Therapy.

• Natur Produkt drove and conduct activity in multiple categories Drugs, Cosmetics, Hygiene.

Hot Beverages growth thanks to activity increase of the top players in comparison with 2016.

23%

7%

8%

25%

-53%

-27%

-17%

-8%

-45%

-3%

TOP Categories 2017 vs 2016 Jan’17 vs Dec’16

6,0

5,9

4,3

3,6

3,3

3,3

3,0

3,0

2,6

2,6

Pharmak

Nestle

Procter&Gamble

Arterium

Natur Produkt

GlaxoSmithKline

Reckitt Benckiser

Unilever

Sanofi

Vodafone

5%

16%

100%

3%

3%

37%

43%

-5%

-22%

-3%

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

Processed by “CCM” Subsidiary Enterprise

181%

166%

3%

250%

1%

-5%

-15%

-16%

-19%

TOP Advertisers 2017 vs 2016 Jan’17 vs Dec’16

Recession of Telecom category is due to the decrease in activity of Kyivstar, which is not compensated by increased activity of Vodafone.

Entertainment decreased activity due to absence of the New Year ENEA project of the STB. Category keeps in the top thanks to support for film production.

Procter&Gamble activity decreased in all categories, while Unilever – increased, which led to growth of Hygiene category.

Arterium activity supported seasonal groups (cough medicines and psychotropic drugs).

Andrew Partyka, CEO of StarLight Sales, told about TV market trends in 2017. Prediction №1. The shift to wider target audiences. Prediction №2. E-comerce growth. Prediction №3. Soap opera production growth. Prediction №4. Big activity of new names. Prediction №5. TV market will continue to growth.

5 predictions for 2017 advertising year from Andrew Partyka

Source: http://goo.gl/Zvjup8

Amount of brands that advertised on TV has broken three-year-old record and has reached 273 in January 2017. At the same time, sold out rate of advertising blocks on StarLightMedia TV channels was 85-90%, which is significantly higher than average January rate.

January 2017 has become record-breaker of TV commercial market growth,

- StarLight Sales

Source: http://goo.gl/dDucmL

January Sold out is the highest for the last years. And if high Sold Out could be artificially maintained by Sellers, number of brands in the air totally depends on Advertisers and market. We observe hot TV market (at least in Jan-Feb).

Alexander Polinovskiy, TV Buying Group Head Zenith Ukraine

Source: http://goo.gl/aHJWOY

1+1 Media group announced, that more than 10% of vulnerable population can left without free access to the national channels as a result of transition to digital broadcasting in 2017.

1+1 Media noted that provider of digital broadcasting Zeonbud should cover at least 95% of population according to the license conditions. However, the population coverage by signal Т2 lies within 80-85%.

1+1 Media called risks of analog TV disconnection in 2017

Source: http://goo.gl/8S635Q

«The question of analog TV disconnection really very deliberative. First of all, there are reasons from different TV groups and influence forces to postpone shift to digital TV. Just recently, letter has come from Cabinet of Ministers: 1+1 Media group and Inter Media Group wanted to postpone disconnection of analog TV until 2019». One of the reasons for this can be fact that holdings fear losing not only audience, but also the age of audience with shift to digital TV, according to the head of regulator.

«Inter» & «1+1» asked for an extension of time to shift from analog to digital TV

Monitoring of National Council fixed screening of films which have national signs on the air of 6 national TV channels in May, and of 12 channels, among which are TET, «Inter», «Ukraine», «1+1», «UA:Pershiy», NTN and other, in November.

TV channels have increased amount of national

movies on the air

There has been a tendency of decline in the share of programs for children in the ether of the national TV channels - from 8% in 2011 to 4% in 2016 - for the last five years in Ukraine.

National TV channels have started to show half

the size of programs for children.

Source: http://goo.gl/HaxON9

Source: http://goo.gl/dH9LvH

Julia Kostetskaya, CEO of «Media Group Ukraine», told about what the last year has been like for group from commercial point of view, about new work conditions on TV market in 2017, problems of product-placement and new requests from clients, changes in TV audience and it’s age limits and also about what the prospects are for premium glossy magazines and press.

Julia Kostetskaya : «Advertisers want to

place in qualitative content projects»

Source: http://goo.gl/RdJXyw

Source: https://goo.gl/0puMnt

Russian adaptation of South Korean format «Lestnica v nebesa», family comedy «Svaty» and medical soap opera «Central'naja bol'nica» – are among leaders of TV viewing of the past year.

Almost lalf of TOP-20 – comedies. The major «comedy contribution» was done by «1+1» channel. He added own comedy production «Selo na million», continuation of «Poslednij moskal'» and other to the ptojects of «Kvartal 95» – «Svaty» and «Rodstvennichk».

What kind of soap operas are watched on Ukrainian TV?

Source: https://goo.gl/fCpjA7

«Ukraine» channel leads in audiences 18+, 50ths+, «1+1» in two audiences of research 18-54, 50ths+ and 25-45, 50ths+ at once and STB in audience 14-49, 50ths+ according to the results of 2016. Leaders have the most noticeable growth of share compared to the 2015 and «Inter» the most noticeable fall.

Top-channels 2016: «Ukraine» channel, STB and two times «1+1»

10

11

30,4

27,9

24,6

16,3

15,5

15,0

13,7

12,2

11,8

8,2

Citrus

Kyivstar

Beiersdorf AG

Jacobs DouweEgberts

Reckitt Benckiser

L'Oreal Group

Unilever

Nestle

Pepsico

McDonald's

59,9

50,3

38,1

22,6

21,5

20,2

18,1

15,1

13,8

13,0

Trade

Cosmetics

Telecom

Entertainment

Alcohol

Hot Beverages

Pharma

Cold AFB

Hygiene

Culinary

Jan 2017

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

Jan 2017

TOP Categories TOP Advertisers & VOD

12

2 078

292

166

141

125

124

123

112

103

98

Rozetka

Citrus

Allo

ModnaKasta

Lamoda

Yandex N. V.

GEPUR Group

MakeUp

LeBoutique

Drive Sport

4 529

682

396

289

233

198

169

135

83

61

Trade

Enertainment

Finance

IT

Media

Tourism

Auto

Telecom

Realty

Hygiene

Jan 2017

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

Jan 2017

TOP Categories TOP Advertisers & Display

The bounty of cheap behavioral data available today is a boon for marketers. Columnist Brian Massey explains how to take advantage of this cheap data to develop an effective landing page.

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9 studies for landing pages that work

Source: https://goo.gl/XIEoxq

Programmatic Delivery: The Future of Content Marketing and Promotion?

Source: https://goo.gl/3QkpMo

Content promotion is hard. Disparate audiences and an ever-growing proliferation of channels to reach them through has made the life of a content marketer incredibly tough.

“Vkontakte” hass updated sale instrument – how it works and why it necessary

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Is “VK” turning into marketplace? What do we need to know about new

“Products”.

Source: https://goo.gl/0w5ecQ

Facebook Stories puts a Snapchat clone above the News Feed

Source: https://goo.gl/Vv1thI

Facebook launched Facebook Stories in Ireland on iOS and Android, with plans to bring it to more countries in the coming months.

Instagram is testing video ads inside Stories, the section of the app that was built to challenge Snapchat, according to multiple people briefed on the new ad format.

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Instagram Is Testing Mid-Roll Video Ad Pop-Ups In Stories

Source: https://goo.gl/xXDq37

Can we chat? Hello Super Chat!

Source: https://goo.gl/g0xQ8L

Latest tool for fans and creators to connect with one another during live streams: Super Chat

16

3,9

2,4

1,8

1,8

1,7

1,6

1,5

1,3

1,3

1,2

Sport Life

Fozzy Group

Metro

Foxtrot

Riel

Ukrbud

Toyota

Vodafone

K.A.N.Development

Samsung

51%

32%

257%

112%

118%

418%

192%

180%

93%

20%

TOP Categories

28,7

22,0

8,8

8,7

5,3

5,0

4,1

3,8

3,7

2,1

Trade

Realty

Entertainment

Auto

Telecom

Sport

Restaurants

Finance

Medicine

Education

78%

120%

57%

77%

66%

43%

111 %

24%

92%

287%

Metro has increased its activity by 2 times.

Category Education entered the top thanks to rabota.ua and Ministry of Economic Development and Trade of Ukraine promotion.

Ukrbud and Riel activity hold Realty in the top list.

The growth rate of Telecom industry is caused by two leading companies: Vodafone has increased 3 times and Samsung twice in this category.

2017 vs 2016

17

2017 vs 2016 TOP Advertisers &

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

Enterprise

OOH market grew by 72% vs 2016

18

Kyiv City State Administration is changing the rules of the outdoor advertising

Outdoor market is trying to be reformed again since the beginning of the year. Several rules that exclude the possibility of installing an advertising structure in certain areas were introduced in 2017. Responsibility for these rules compliance is on advertising department of Kyiv City State Administration and the enterprise Kievreklama.

Source: https://goo.gl/wLP1W5

Source: https://goo.gl/wLP1W5

The "Prime group" presents data about the level of sold-out of outdoor advertising format 3×6m. The analysis covers the equipment of all operators in Ukraine.

Research on Sold-out inventory of the outdoor advertising

Clear Channel has made its single biggest ever investment on bringing programmatic to out of home advertising, betting its future on the process of buying outdoor media being an automated one. This complete change in the very nature of its media is why the out of home giant abandoned 800 roadside billboards in the UK last year and debuted its first out-of-home programmatic buying tool.

19

Inside Clear Channel's big bet on programmatic out of home

Source: https://goo.gl/6rs5XN

New platform Bidstack promises to be 'the eBay of digital out of home' advertising

Bidstack allows advertisers to bid for billboard space with bids alone determining the price of the slot. Users can research the best places for an advert to be seen and can design it on the platform. Maps are used to show exactly where space is available and data feeds, such as social, weather and traffic, are pulled in to provide more informed decisions.

Source: https://goo.gl/M6GyOW

What will drive OOH media in 2017 ?

20

The situation with creativity in the OOH advertising: the results of the roundtable conference Posterscope

Source: https://goo.gl/keZKHn

Leading OOh-specialists in Europe and America presented their vision of the future and the key trends in outdoor advertising in 2017. The company Primesight identified 5 major trends in OOh-2017.

Source:https://goo.gl/g8ouZb

OOH Forecast for Continued Growth in 2017

Source: https://goo.gl/MzfClv

OOH is poised to record yet another quarter of growth to close out 2016, which will mark the industry’s 27th consecutive quarter of growth. Other than digital media, no other form of media comes anywhere near such a consistent, solid record. 2017 promises a continuation of this trend according to projections by media forecasters

Research of PQ Media: there is the strongest growth in out-of-home since 2007 thanks to the digital segment

Source: https://goo.gl/HMQeth

Global revenues of the OOH, including the DOOH and ambient advertising, grew by 6.2% in 2016, and showed the fastest growth in 9 years. Digital OOH segment showed the strongest global growth since 2011 to a level of 12.6%.

Marketers, creatives and media owners were invited by Posterscope to discuss out-of-home creativity.

21

0,9

0,8

0,6

0,6

0,5

0,5

0,5

0,5

0,5

0,4

L'Oreal

Philips

TsUM

Fitobiotehnologii

Seldiko

Hexagone

Toyota

Nestle

Bomond

Garnet

35%

100%

100%

21%

83%

52%

41%

100%

100%

TOP Categories

4,0

3,9

3,6

2,7

1,7

1,6

1,0

0,9

0,9

0,8

Trade

Entertainment

Cosmetics

Drugs

Auto

Wear

Jewellery

HomeAppliance

Restaurants

Alcohol

145%

8%

52%

15%

280%

12%

-3%

-10%

-27%

-19%

TsUM opening was strongly supported that led to the 3rd place in the top rankings.

Nestle increased its investments in Hot Beverages category, through the promotion of 2 brands.

Home Appliance is highly active thanks to Philips and Electrolux advertising.

Toyota entered the top driven by advertising of cars and brand maintenance

2017 vs 2016 2017 vs 2016 TOP Advertisers &

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

Print market grew by 7% vs 2016

23

1,3

1,2

1,1

0,9

0,7

0,6

0,6

0,5

0,5

0,5

Get'man

Victor & Co

Zolotiy vik

BayaderaLogistik

Poltava Distillery

Ukrpaletsistem

Megapolis

Natur Produkt

FreshLine

Ukrtelecom

21%

24%

124%

34%

249%

30%

100%

100%

-52%

-72%

4,5

3,1

2,8

2,4

2,0

1,1

1,0

1,0

0,7

0,6

Alcohol

Entertainment

Trade

Auto

Food

Drugs

Restaurants

Jewellery

Realty

Finance

41%

144%

58%

231%

23%

273%

-11%

-1%

-57%

-8%

Advertisers Get'man, Bayadera Logistik, Poltava Distillery reduced investment, which led to a decline in Alcohol category

The network of gas stations Ukrpaletsistem increased investment, which contributed to a jump of Adv activity and category Auto

Category finance entered the top thanks to increase of investments of new players PKO Bank Polski S.A. and Capital pawnshop

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

TOP Categories 2017 vs 2016 2017 vs 2016 TOP Advertisers &

Radio market grew by 16% vs 2016

Information Policy Ministry informs that on January 25 was completed radio television transmitting station in the village Chongar in Kherson region. The height of the new tower - 150 meters, is currently assembling equipment.

24

Ukrainian radio station are heard in the Crimea since February

Source: https://goo.gl/a6aT0g

25

26

How communications will change this year 17 key trends that will influence the way we send and receive the information this year

Source: https://goo.gl/YmHVnK

Trends of visual content Shutterstock released infographic with the dominant trends and styles in 2017

Source: https://goo.gl/Fh3LG9

Under skin branding: 10 Trends to 2022 Experts have called the trends of branding for the next five years. Among which:

– Brands will have to promote themselves among machines

– Artifitual inteligence for brands creation

– Experience instead identity

Source: https://goo.gl/Bb3lW7

Infographics: 7 goals for marketers for 2017

27

According to analysts bots returned themselves the leadership vs human traffic, which had exceeded automatic one in 2015 for the first time

Almost 52% of Internet traffic was accounted for bots in 2016

Infographics from IBM gathered the top areas in which marketers should focus their efforts

Guide for marketers for 2017

Source: https://goo.gl/PCvQO2

Advertising agency MDG Advertising created the infographic, wanting to help marketers determine the tactics and strategy of this year

Source: https://goo.gl/EeUxdh

Source: https://goo.gl/fFYHU5

28

CEO and Chairman of Publicis Group’s Board of Directors Maurice Levy officially announced the choice of a successor. Publicis Group to be chaired by Arthur Sadoun since June 2017. His candidacy was approved by supervisory board.

Source: https://goo.gl/pMgyVU

67% of generation Z prefer make purchases in retail stores despite spending most of the time on-line. 31% make off-line purchases just time to time.

The use of social networks in the world increased by 21%

29

Brands is not easy to meet the requirements of buyers, including the generation Z

Brands should remember that this generation is feelling a deep respect to human rights, and believes that this issue should be a priority for the brands with which they interact

They love success: what brands need to know about the generation Z

Source: https://goo.gl/8OfIHp

Hootsuite analyzed the main trends in social media and digital trends

Source: https://goo.gl/hhmlIG

Source: https://goo.gl/bkc8fQ

Most women read reviews before they buy the product. Companies pay for reviews, and this is a good idea.

Do not share your target audience to men and women, says author of thedrum.com. It is better to look for new ways and approaches to each of your customer as an individual

30

Gender marketing beyond gender: How to talk to

customers-individuals

Source: https://goo.gl/Nbw4EI

Infographics: how reviews affect the purchasing

decisions of women

Source: https://goo.gl/23npb9

Andrew Robertson told how to change approaches to communication in the very near future

Trends in digital-marketing for small businesses for 2017

31

5G in the future will be able to replace the cable, satellite and IPTV

How to change the approach to the establishment of communication in the near future

Source: https://goo.gl/nrlbMl

According to research company Infusionsoft, which surveyed 1,000 companies in the United States, small businesses planning to spend extra budget on social media in 2017

Source: https://goo.gl/Ff5AfE

The emergence of 5G TV push for a new round of the process of integration of traditional and new media

Source: https://goo.gl/V0CGMS

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

The era of

mobile fascism

Era of media advertising is predicted to end

33

Thank You!