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COST COMPARISON BOOK CENTRAL EASTERN EUROPE – 2010

MEC www.mecglobal.com A GroupM Company


CONTENT

Introduction .................................................................................................................3 Map of Central East Europe .......................................................................................4 Methodology ................................................................................................................ 5 Television............................................................................................................................................ 5 Print..................................................................................................................................................... 5 Radio ................................................................................................................................................... 5 Outdoor ............................................................................................................................................... 5 Internet ................................................................................................................................................ 6

Economic data .............................................................................................................7 Global trends of CEE markets............................................................................................................ 9

Austria ........................................................................................................................13 Bulgaria ......................................................................................................................14 Croatia ........................................................................................................................15 Czech Republic..........................................................................................................16 Estonia ....................................................................................................................... 17 Hungary......................................................................................................................18 Latvia ..........................................................................................................................19 Lithuania ....................................................................................................................20 Poland ........................................................................................................................21 Romania .....................................................................................................................22 Russia ........................................................................................................................23 Slovakia ......................................................................................................................24 Slovenia .....................................................................................................................25 Serbia .........................................................................................................................26 Ukraine ....................................................................................................................... 27

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Introduction We are glad to introduce the fourth issue of CEE Cost Comparison Book. Some introductory thoughts before going into details: Last year’s spectacular, negative shift of media spending and price changes is clearly due to the impact of the recession. Each country suffered from the economic crisis. In 2010, the ‘first year’ after the deep recession, media market of different countries no longer develops uniformly. It is interesting to observe how different countries, even various media types are trying to break out of this negative price spiral. In many cases, the recovery goes off along distinct trends, since this depends on who and how deeply was affected by the recession and how has the situation of each market changed during the crisis. Nevertheless, we cannot forget that analysts are not excluding the possibility that CEE region may receive a ‘W’ shaped recession.

CEE Cost Comparison Book covers 15 countries (Austria, Estonia, Latvia, Lithuania, Russia, Ukraine, Poland, Czech Republic, Slovakia, Hungary, Slovenia, Croatia, Serbia, Romania, Bulgaria), contains data about general economics, total market advertising spending, 6 target groups (18+ (adults), 18-49, Main Shoppers 18+, Young Adults (1524), Upmarket (25-49 ABC), Businessmen (Top 5%)) and the CPTs and CPPs are calculated on Net-Net (prices after deducting discounts and agency commission).

We hope that the refreshed CEE Cost Comparison Book will be a useful information source and a great help for our clients, partners and colleagues.

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Map of Central East Europe

MEC affiliate Estonia MEC Russia

MEC affiliate Latvia

MEC affiliate Lithuania

MEC Poland

MEC Czech Rep. MEC Ukraine MEC Austria

MEC affiliate Slovenia

MEC Slovakia

MEC Hungary MEC Romania

MEC affiliate Croatia MEC affiliate Serbia MEC affiliate Bulgaria

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Methodology Last year’s methodology has not changed significantly, it was proposed by MEC MediaLab Hungary, partly based on Global Cost Comparison. We have refreshed and expanded the methodology description with the new media-types. All prices are calculated in EURO, as most of the countries are part of the European Union and are aspiring to join the Euro Zone soon.

Television Television is one of the most difficult media, because here is the widest gap between the lowest and the highest CPP, mainly because of the size of the clients. All costs are based on 30sec cost/GRP which is the most common way of calculating TV price in this region. We think this book must be consumer (advertiser) centric, so the TV CPP is defined on the cost of a midsize client – entering as a very new advertiser the TV market, and has no prior history on the market – with an average day-part and channel-mix. The midsize client definition was specified by the local agencies.

Print Different CPTs were calculated for newspapers and magazines. The basic advertising unit for newspapers is the full-color junior page on an average day. For magazines it is the 1/1 full-color page without any surcharge. The costs of the ads are net-net. CPP calculation started with a readership rank with top 5 newspapers or top 10 magazines by target group. Calculation is based on one insertion by each selected title, like a campaign, and then is evaluated in terms of their combined coverage divided into combined costs.

Radio The basic advertising unit is the 30 sec commercial. In the radio calculation we would like to be as client friendly as possible so the weight of the radio campaign was an average defined by the local offices.

Outdoor In case of outdoor we would like to show only a slight overview. Due to the lack of precise coverage and GRP data and to achieve simple data comparability we have chosen a simpler method to calculate outdoor price. The basis of the calculation is the average price of one Euro-Billboard (5.04*2.38 m) in case of an average size BB campaign.

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Internet The so called ‘conventional indices based media-planning’ is just evolving on Internet market and therefore adequate indices are not fully available. That is the main reason why we decided to demonstrate Internet price with a ‘piece’ based calculation as we did with outdoor. So the basis of ad-view price calculation is CPM (cost per thousand download) data for an average campaign which contains expensive and cheap sites as well. Besides CPM we would like to share cover data as well for different target groups by countries. The basis of coverage calculation is the monthly 1+ Internet users, which means those people, who are using Internet at least once a month.

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Economic data Real GDP growth rate

9.0

Growth rate of GDP volume - percentage change on previous year

6.0 3.0 0.0 -3.0 -6.0 -9.0 2008

-12.0

2009

-15.0

2010 est.

-18.0

Latvia

Lithuania

Hungary

Croatia

Bulgaria

Romania

Estonia

EU (27 countries)

Slovenia

Austria

Czech Republic

Serbia

Poland

Ukraine

Russia

Slovakia

-21.0

* Source: International Monetary Fund – www.imf.org

45 000

GDP per capita based on purchasing-power-parity (PPP)

2008

40 000

2009

35 000

2010 est.

25 000 20 000 15 000 10 000 5 000

Ukraine

Serbia

Bulgaria

Romania

Latvia

Russia

Lithuania

Croatia

Estonia

Poland

Hungary

Slovakia

Czech Republic

Slovenia

0 Austria

USD

30 000

Source: International Monetary Fund – www.imf.org

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GDP per capita in Purchasing Power Standards (PPS) vs TV CPT

45 000

Austria 3.7

40 000 35 000 30 000 25 000

Hungary Estonia 4.3 Poland 0.6 Croatia Russia 18.6 2.0 34.3 Latvia Lithuania 1.5 Romania 1.0 Bulgaria 8.9 3.4 Serbia Ukraine 3.2 19.3

20 000 15 000 10 000 5 000

Slovenia 1.0

Czech Republic 4.8 Slovakia 2.6

0 0

2

4

6

8 10 18-49 CPT (Euro)

12

14

16

18

20

Source: International Monetary Fund – www.imf.org

27%

25.2

Inflation rate

24%

Average consumer prices change

2008 2009

21%

11.7

12%

15.3

12.4

12.0

11.6

7.0 3.7 1.5 0.9

8.1 4.8

3.3

6.1

4.3 4.2

4.2 4.0 3.5

6.3

6.1

5.7

3.2 2.5 2.4 2.3 1.5 1.3 2.3 2.2 1.01.6 0.8 0.4

1.1 0.3

11.1

10.4

9.2

9%

%

3.9

4.2

3.3

0.8 0.90.8 -0.1 -1.2

-3%

-3.7

Lithuania

Slovakia

Estonia

Austria

Slovenia

Czech Republic

Bulgaria

Croatia

Poland

Romania

Hungary

Serbia

Russia

Ukraine

Euro Area

-6%

Latvia

3%

15.7

14.1

15%

6%

2010 est.

15.9

18%

European Union

GDP per capita in USD based on purchasing-power-parity

50 000

Source: International Monetary Fund – www.imf.org

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Estimated netnet media spends 10 000 2006 2007

8 000

2008

+37.5%

2009 2010

+17.2% +23.1%

4 000 +5.9% +8.9%

2 000

+0.1% +23.4% -11.0% +21.8%

-30.8% +11.0% -0.9%

+56.7% +17.1% +5.1% -19.1% -44.8% +6.8% -3.3%

+5.7% +0.6% +10.8% -30.2% +3.3% -6.6% +11.7% +32.9%

0 Russia

Austria

Poland

Ukraine

Czech Republic

Croatia

Hungary

Estimated netnet media spends 700 600

2006 +18.8%

500 million EUR

million EUR

-39.2%

6 000

2007 2008

-36.5%

2009

+36.5%

400

2010

-9.2% +23.9%

300

-14.8%

+8.2% -7.9% +10.9%

-15.4% -2.5%

+24.6% +17.7% -21.8% 0%

200

+26.9%

100

+9.0% +8.7% -16.0% +3.0% +19.2% -2.9% +15.2% -39.5% -3.5% -45.7% +24.1% -36.0% +1.1% +32.2% -9.3%

-18.3%

0 Romania

Bulgaria

Slovakia

Serbia

Slovenia

Lithuania

Latvia

Estonia

Global trends of CEE markets In almost every country the economical crisis has left deep scars, so 2010 will not be the year of boom. After a huge drop in 2009, expectations for 2010 and 2011 are very cautious. According to the forecasts, followed years will be characterized by slow recovery, stagnation or even by slight increase. Internet looks to be the only survivor in both years, this is the only increasing media. In 2010 TV could be the second ‘winner of the year of recovery’, as it’s increase is estimated in almost all countries. Print, OOH and radio still doesn’t find its former self in terms of ad-spends, further decrease (or stagnation) is forecasted for them CEE region wide in 2010.

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366

27 343

182

100

100

33

100

100

40

21

100

27 150

132

114 100

37

144 118 100 180

22

141 140

100

20

0

136 133

100

16

127 100

63

100 84 69

22

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Russia

460

Serbia

515

Czech Republic

162159

Austria

169

Romania

100104 252

Lithuania

236

Slovakia

334

Slovenia

600

Poland

.

100 1.5 0.7 1.4

3.7 3.2 2.7

3.8 3.5 3.6

Romania Ukraine

5.9

6.2

4.9 4.8

5.3

7.3 8.3

7.2 6.6 6.3

7.0 6.9

11.7 11.1

13.4 11.7 11.3

10.2

9.6 7.7 7.4 6.9

5.4

3.9 4.1

2.4

3.2 2.6 2.8

0.0 Poland

Latvia

Russia

Slovenia

Bulgaria

Estonia

Hungary

Lithuania

Croatia

Serbia

5.0

Hungary

100

Czech Republic

10.0

Latvia

400 .

Croatia

200

Bulgaria

12.8 14.6 14.9

15.0

Slovakia

20.1

21.2 19.1

20.0

Estonia

Austria

CPT in Euro

24.5

25.0

Ukraine

affinity

Examples from the database

30.0

TV CPT comparison among countries (A18-49)

2008

2009

2010

Media type comparison by country

(base: TV = 100, target group: Age 18-49) TV

442

Magazines

Dailies

Radio

309

255 218

166

100

49

0

25

0


CPT change by year and media type

50

period: 2008-2010; target group: 18-49

40 30

2009/2010 change

20 10 0

-10 -20 -30 -40 -50 -60

-40

-20

0 2008/2009 change

20

40

60

Billboard price comparison among countries 1 200 1 000

(Average price of one Euro-Billboard (5.04*2.38m))

1 112

925 863

2009 2010

615

600

545 448

400

459 434 406 419 398 313

462 400 324

295 273 308 269 239

182

200

273 173 173 112

169 172 160 167 155

190 148 142 162 155 114 110 143 136 133 116

100 100

* Estonian BB size is 6*3 m

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Serbia

Romania

Poland

Slovakia

Ukraine

Slovenia

Austria

Croatia

Hungary

Czech Republic

Latvia

Bulgaria

Russia

Lithuania

0 Estonia *

CPT in Euro

2008

782 724

800


Internet adview price (CPM) comparison among countries 18 16

(cost per thousand download) 16

15 14

14

CPM in EUR

12

11 11

2008

11

2009

10

10

9

8

7

2010 77 66

6

5

6 5

6 55

4

4

5

4 3

4

333

333

4

3 22

2

22

222

11 1

111

Latvia

Serbia

Slovakia

Poland

Estonia

Lithuania

Ukraine

Bulgaria

Austria

Romania

Russia

Czech Republic

Hungary

Slovenia

Croatia

0

Internet penetration comparison among countries (basis: uses internet at least once a week)

100 90 80 70

50 40 30 20 10

18+ (adults)

18-49

Ukraine

Poland

Croatia

Bulgaria

Slovakia

Hungary

Russia

Slovenia

Romania

Lithuania

Czech Republic

Latvia

Austria

0 Estonia

%

60

Young adults (15-24)

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Austria CPP in Euro

CPT in Euro

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Pres s TG size Radio TG size

6 507 000 6 628 000 6 656 000

3 712 000 3 773 000 3 794 000

3 363 000 3 960 000 4 344 000

1 075 000 955 000 1 002 000

2 689 000 2 438 000 2 316 000

962 000 559 000 582 000

TV Magazines Dailies Radio

504 1 051 933 166

710 959 983 120

354 1 001 966 177

618 1 001 1 070 79

800 923 934 114

403 811 778 125

1 200

18+ (adults)

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

6 507 000 6 628 000 6 656 000

3 712 000 3 773 000 3 794 000

3 363 000 3 960 000 4 344 000

1 075 000 955 000 1 002 000

2 689 000 2 438 000 2 316 000

962 000 559 000 582 000

TV Magazines Dailies Radio

8 16 14 2

19 25 26 3

11 25 24 4

58 105 112 8

30 38 38 5

42 145 139 21

30

18-49

18+ (adults)

18-49

1 051 1 000

959

933

25

983

26

25

800

19

20 TV Magazines

600

Dailies

504

Radio

400

CPT in Euro

CPP in Euro

710 TV

16

Magazines

14

15

Dailies Radio

10 8

200

0

166 120

5 2

3

0

We expect that increase of online expenditure will continue in 2010. Comparing Q1 2010 with Q1 2009 a recovery of the advertising market can be seen. All media channels, except out of home, show an increase of media expenditure.

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Bulgaria CPP in Euro

CPT in Euro

18+ (adults)

18-49

Housewife 18+*

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Pres s TG size* Radio TG size

6 280 000 3 971 000 1 911 000

3 390 000 2 706 000 1 330 000

2 660 000 2 437 000 1 247 000

1 100 000 843 000 368 000

2 140 000 1 639 000 862 000

n/a n/a n/a

TV Magazines Dailies Radio

130 727 148 25

179 631 148 23

106 619 163 n.a.

277 455 282 20

162 590 121 n.a.

n.a. n.a. n.a. n.a.

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size* Radio TG size

6 280 000 3 971 000 1 911 000

3 390 000 2 706 000 1 330 000

2 660 000 2 437 000 1 247 000

1 100 000 843 000 368 000

2 140 000 1 639 000 862 000

n/a n/a n/a

TV Magazines Dailies Radio

2.1 18.3 3.7 1

5.3 23.3 5.5 2

4.0 25.4 6.7 n.a.

25.2 53.9 33.5 5

7.6 36.0 7.4 n.a.

n.a. n.a. n.a. n.a.

* 25-54 Female in case of print

800

18+ (adults) 727

25.0

18-49

18+ (adults)

18-49 23.3

700 631

20.0

18.3

600

TV Magazines

400

Dailies Radio

300

CPT in Euro

CPP in Euro

500

15.0

TV Magazines Dailies Radio

10.0

179

200 130

148

5.3

148

5.0

100

2.1 25

23

0

5.5

3.7 1

2

0.0

* - Magazin data is measured with a special survey where the base is the magazin readers!

The total market decreased by 15% in 2009 vs. 2008. TV: duopolistic model continue to rule; on the one hand are the MTG channels (Nova TV and Diemas) and on the other hand CME (Pro.BG and Ring.BG) has finished the process of acquiring bTV, bTV Comedy and bTV Comedy. The new name of the group is bTV Media Group. bTV and Nova TV stay the leaders and take the greater part of the advertising expenditure on the market. The total market decreased by 15% in 2009 vs. 2008.

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Croatia CPP in Euro

CPT in Euro

18+ (adults)

18-49

(Housewife 18+) 30-54

TV TG size Press TG size Radio TG size

3 428 129 3 428 129 3 428 129

1 975 539 1 975 539 1 975 539

1 337 871 1 558 303 1 558 303

596 559 596 559 596 559

675 354 675 354 675 354

352 781 352 781 352 781

TV Magazines Dailies Radio

121 587 200 n.a.

136 498 179 n.a.

127 519 190 n.a.

148 353 178 n.a.

153 299 134 n.a.

180 229 123 n.a.

700

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

18+ (adults)

18+ (adults)

18-49

(Housewife 18+) 30-54

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

3 428 129 3 428 129 3 428 129

1 975 539 1 975 539 1 975 539

1 337 871 1 558 303 1 558 303

596 559 596 559 596 559

675 354 675 354 675 354

352 781 352 781 352 781

TV Magazines Dailies Radio

3.5 17.1 5.8 n.a.

6.9 25.2 9.1 n.a.

9.5 33.3 12.2 n.a.

24.8 59.1 29.8 n.a.

22.7 44.3 19.8 n.a.

51.0 65.0 34.7 n.a.

30.0

18-49

18+ (adults)

18-49 25.2

587

600

25.0 498

500

400

Magazines Dailies

300

Radio

200

100

0

17.1

TV Magazines

15.0

Dailies Radio

9.1

10.0 179

200 121

CPT in Euro

CPP in Euro

20.0 TV

6.9 5.8

136 5.0

3.5

0.0

Gross figures for 2009 are higher due to discounted net prices in media and more advertising for less net investment. Gross value stayed and it is exaggerated.

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Czech Republic CPP in Euro

CPT in Euro

18+ (adults)

18-49

Housewife 18+

TV TG size Press TG size Radio TG size

8 489 000 8 103 700 8 286 100

4 776 000 4 713 500 4 912 600

3 986 000 4 095 000 4 906 500

1 368 000 1 302 000 1 500 320

1 953 000 1 901 500 2 011 840

329 000 592 700 394 070

TV Magazines Dailies Radio

431 654 996 140

542 676 961 120

342 511 982 142

854 801 1 330 137

569 661 922 115

512 605 804 99

1 200

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

8 489 000 8 103 700 8 286 100

4 776 000 4 713 500 4 912 600

3 986 000 4 095 000 4 906 500

1 368 000 1 302 000 1 500 320

1 953 000 1 901 500 2 011 840

329 000 592 700 394 070

TV Magazines Dailies Radio

5.1 8.1 12.3 1.7

11.3 14.4 20.4 2.4

8.6 12.5 24.0 2.9

62.4 61.5 102.2 9.1

29.1 34.8 48.5 5.7

155.6 102.1 135.6 25.1

25.0

18-49

996

1 000

18+ (adults)

18+ (adults)

18-49

20.4

961 20.0

676

654

TV Magazines

600

542

Dailies Radio

431

CPT in Euro

CPP in Euro

800 14.4

15.0

TV

12.3

Magazines

11.3

Dailies Radio

10.0 8.1

400 5.1 200

5.0 140

120 1.7

0

2.4

0.0

Media market is still struggling from economic crisis and we expect 6% drop in expenditures in 2010. TV is the strongest media type with share about 44% followed by print with 22% share. However we expect drop in expenditures by both media types in 2010. 5% drop in TV and 12% drop in print. The only media type where we expect increase of expenditures in 2010 is Internet with 10%. Share of internet is close to 19% in 2010. Radio as well as OOH is significantly suffering with expected 13% drop in radio and 15% drop in OOH expenditures in 2010. Share of radio is 7%. Share of OOH is 8%. Regarding 2011 we expect stabilization of the media market with similar total expenditures as in 2010. TV and print expenditures will stabilize with no further decrease. Internet expenditures will grow by 6%. OOH and radio will follow decreasing trend also in 2011.

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Estonia CPP in Euro

CPT in Euro

18+ (adults)

18-49

Housewife 18+

TV TG size Press TG size Radio TG size

1 069 000 989 000 979 000

601 000 614 000 604 000

578 000 722 000 525 000

196 000 193 000 197 000

476 000 410 000 265 000

42 000 314 000 36 000

TV Magazines Dailies Radio

28 137 101 11

32 153 111 9

24 119 101 10

48 141 145 18

29 127 119 12

34 94 82 21

180

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

18+ (adults)

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

1 069 000 989 000 979 000

601 000 614 000 604 000

578 000 722 000 525 000

196 000 193 000 197 000

476 000 410 000 265 000

42 000 314 000 36 000

TV Magazines Dailies Radio

2.6 13.8 10.2 1.1

5.4 24.8 18.0 1.4

4.1 16.5 14.0 2.0

24.6 73.3 34.9 9.1

6.2 30.9 28.9 4.6

81.9 30.0 26.2 57.5

30.0

18-49

160

18+ (adults)

18-49

153

24.8

25.0 137

140

20.0

111 101

TV

100

Magazines Dailies

80

Radio

20 0

18.0 TV

15.0

Magazines

13.8

Dailies Radio

10.2 10.0

60 40

CPT in Euro

CPP in Euro

120

32

28

5.4 5.0

11

2.6 9

1.1

1.4

0.0

Internet has proved less sensitive to changes in the economy than either newspapers or magazines. Earlier, this advantage was enjoyed by TV, but things changed. If compare 2009 to Q1 2010, TV and internet shares in total Estonian ad market net turnover grew, when newspapers and magazines experienced 3% fall in share. That allows concluding that advertising money tends to shift from print to internet and TV channels.

Page 17


Hungary CPP in Euro

CPT in Euro

18+ (adults)

18-49

Housewife 18+

Young Adults Upmarket Businessmen (15-24) (25-49 ABC)** (Top 5%)

TV TG size Press TG size Radio TG size

7 845 432 8 140 525 8 133 000

4 250 819 4 560 963 4 524 000

3 965 135 4 849 850 4 752 000

1 383 903 1 460 417 1 430 000

2 379 645 2 140 741 1 909 000

472 357 491 098 618 000

TV Magazines Dailies Radio*

211 847 833 84

268 888 724 74

182 697 905 84

393 849 850 125

271 761 588 77

289 694 669 91

18+ (adults)

18-49

Housewife 18+

Young Adults Upmarket Businessmen (15-24) (25-49 ABC)** (Top 5%)

TV TG size Press TG size Radio TG size

7 845 432 8 140 525 8 133 000

4 250 819 4 560 963 4 524 000

3 965 135 4 849 850 4 752 000

1 383 903 1 460 417 1 430 000

2 379 645 2 140 741 1 909 000

472 357 491 098 618 000

TV Magazines Dailies Radio*

2.7 10.4 10.2 1.0

6.3 19.5 15.9 1.6

4.6 14.4 18.7 1.8

28.4 58.1 58.2 8.8

11.4 35.6 27.5 4.0

61.2 141.3 136.1 14.7

*measurement method change in 2010 ** Esomar b ased status

18+ (adults)

1 000

18-49

18-49

18+ (adults)

25.0

888

900

847

833 19.5

20.0

800 724

15.9

600

TV Magazines

500

Dailies Radio*

400

CPT in Euro

CPP in Euro

700 15.0

TV Magazines

10.4

Dailies

10.2

Radio*

10.0

268

300

6.3

211 5.0

200 100 0

84

2.7

74

1.0

1.6

0.0

Media market was a victim of the economic crisis and recession’s negative effects. 2009 was characterized by drastic budget-cuts, decline was more than 20% in 2009. In 2010, attitude of advertisers is very cautious because there was not relevant economic upturn. Our forecast is that Hungarian media market will further decrease in 2010 and we do not expect any growth for 2011. In 2009 was the first year after long time, when TV decreased. In 2010 we estimate a further, but lower level overall decrease in ad-spends for TV by 3%, where stagnation is expected for cable channels. In case of press media further circulation erudition can be observed, but readership started to increase slightly. Nevertheless according to our estimation, advertisers will spend approx. 16% less in print. Radio has gone through big changes: there was a frequency competition at the end of 2009, where the two biggest stations lost, so two new ones have started to broadcast. On the other hand from 2010 a new measuring method was launched. This new situation has not yet been treated by the market, so further advertising budget pullouts are expected which could cause -25% ad-spend decrease in 2010. Internet will be the only increasing medium in 2010 like as in 2009. This increase is based on the success of the fast growing search marketing and the spread of social media. We estimate a 3% flare in terms of advertising spends. Page 18


Latvia CPP in Euro

CPT in Euro

18+ (adults)

18-49

Housewife 18+

TV TG size Press TG size Radio TG size

1 843 612 1 696 000 1 701 170

998 918 1 054 000 1 089 080

855 368 1 361 000 1 078 060

344 056 344 000 333 350

538 878 486 000 503 880

151 786 121 000 115 800

TV Magazines Dailies Radio

31 129 83 13

36 129 89 16

26 126 87 12

44 113 103 24

49 105 89 13

49 87 71 10

140

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

18+ (adults) 129

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

1 843 612 1 696 000 1 701 170

998 918 1 054 000 1 089 080

855 368 1 361 000 1 078 060

344 056 344 000 333 350

538 878 486 000 503 880

151 786 121 000 115 800

TV Magazines Dailies Radio

1.7 7.6 4.9 0.8

3.6 12.2 8.4 1.4

3.1 9.3 6.4 1.1

12.7 33.0 30.0 7.1

9.0 21.6 18.4 2.7

32.4 72.1 58.9 8.4

14.0

18-49 129

18+ (adults)

18-49 12.2

120

12.0

100

10.0 89

8.4 TV

80

Magazines Dailies

60

40

20

Radio

36

31

13

CPT in Euro

CPP in Euro

83

TV

7.6

8.0

Magazines Dailies

6.0

Radio

4.9 3.6

4.0

16

2.0

1.7

1.4 0.8

0

0.0

Ad spend still continue to decrease by 10-15% in 2010 both because of price deflation and marketing budget decrease of advertisers. TV airtime lately is fully booked in biggest TV channels, it can lead to TV price inflation at the end of year. Decrease of ad investments in radio and internet is lower than in average.

Page 19


Lithuania

CPP in Euro

CPT in Euro

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

2 679 000 2 412 000 2 424 000

1 548 000 1 547 000 1 596 000

1 223 000 1 968 000 774 000

525 000 569 000 511 000

1 083 000 1 038 000 797 000

157 000 75 000 66 000

TV Magazines Dailies Radio

88 149 131 21

107 153 126 24

73 142 135 22

124 115 131 28

101 137 121 24

109 114 75 27

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

2 679 000 2 412 000 2 424 000

1 548 000 1 547 000 1 596 000

1 223 000 1 968 000 774 000

525 000 569 000 511 000

1 083 000 1 038 000 797 000

157 000 75 000 66 000

TV Magazines Dailies Radio

3.3 6.2 5.4 0.9

6.9 9.9 8.1 1.5

6.0 7.2 6.8 2.9

23.5 20.3 23.0 5.5

9.3 13.2 11.6 3.0

69.4 152.1 99.9 41.3

18+ (adults) 18-49

180 160

18-49

153

149

140

18+ (adults)

12.0

9.9

10.0 131

126

8.1 8.0

120 100

TV

88

Magazines Dailies

80

Radio

6.9 CPT in Euro

CPP in Euro

107

6.0

Magazines

5.4

Dailies Radio

4.0

60

TV

6.2

3.3

40 21

24

2.0

20 0

1.5 0.9

0.0

Lithuanian media market was highly affected by crisis in 2009 - it had return to 2004 level with 39% decrease of advertising spend. The most affected medium was print - with 47% and 49% advertising spend decrease in newspapers and magazines. Media market is TV oriented - 44% of ad spends go to this medium. Online advertising is increasing its share constantly - in 2009 it makes 6,1%. While print is losing its audience and ad spend share - it have decreased from 41,3% in 2005 to 32,8% in 2009.

Page 20


Poland CPP in Euro

CPT in Euro

18+ (adults)

18-49

Housewife 18+

TV TG size Press TG size Radio TG size

31 286 000 28 359 058 28 359 058

18 576 000 16 993 399 16 993 399

13 600 000 21 191 038 21 191 038

5 020 000 5 408 710 5 408 710

17 741 000 5 905 862 5 905 862

2 791 000 2 163 645 2 163 645

TV Magazines Dailies Radio

411 803 1 174 137

524 870 1 223 132

325 775 1 204 140

882 698 1 116 232

430 880 1 149 113

543 680 580 109

1 400

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

18+ (adults)

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

31 286 000 28 359 058 28 359 058

18 576 000 16 993 399 16 993 399

13 600 000 21 191 038 21 191 038

5 020 000 5 408 710 5 408 710

17 741 000 5 905 862 5 905 862

2 791 000 2 163 645 2 163 645

TV Magazines Dailies Radio

1.3 2.8 4.1 0.5

2.8 5.1 7.2 0.8

2.4 3.7 5.7 0.7

17.6 12.9 20.6 4.3

2.4 14.9 19.5 1.9

19.5 31.4 26.8 5.0

8.0

18-49

18+ (adults)

18-49 7.2

1 223 7.0

1 174

1 200

6.0 1 000 5.1 5.0 TV

800

Magazines Dailies

600

524

Radio

CPT in Euro

CPP in Euro

870 803

TV

4.1

Magazines

4.0

Dailies

2.8

3.0

Radio

2.8

411 400 2.0 1.3 200

0

137

132

1.0

0.8 0.5

0.0

Despite GDP growth in 2009, Polish ad market declined by 15%. In 2010, we are expecting a 2% increase driven mainly by TV and internet - the only two media with expected Y2Y inflation. The market is expected to grow more in proceeding years, 2012 especially (due to the fact that Poland is a co-host of Euro 2012)

Page 21


Romania CPP in Euro

CPT in Euro

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size* Radio TG size

17 338 308 8 451 000 17 465 547

8 875 014 6 039 000 10 244 752

6 991 560 5 328 000 11 138 375

2 672 658 1 726 000 3 068 638

3 587 006 3 258 000 4 675 564

623 632 373 000 504 259

TV Magazines Dailies Radio

206 226 233 77

238 226 228 54

174 190 223 81

340 214 244 59

214 207 215 48

221 265 229 31

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

17 338 308 8 451 000 17 465 547

8 875 014 6 039 000 10 244 752

6 991 560 5 328 000 11 138 375

2 672 658 1 726 000 3 068 638

3 587 006 3 258 000 4 675 564

623 632 373 000 504 259

TV Magazines Dailies Radio

1.2 2.7 2.8 0.4

2.7 3.7 3.8 0.5

2.5 3.6 4.2 0.7

12.7 12.4 14.1 1.9

6.0 6.4 6.6 1.0

35.5 71.1 61.3 6.1

* urban population

18+ (adults)

250

226

238

233

18-49 226

18+ (adults)

4.0

18-49 3.7

228

3.8

3.5

206 200

3.0

2.8

2.7

2.5

150

TV Magazines Dailies Radio

100 77

CPT in Euro

CPP in Euro

2.7

TV Magazines

2.0

Dailies Radio

1.5 1.2

54

1.0

50 0.5

0

0.4

0.5

0.0

2009 was one of the most pessimistic year and 2010 is not perceive more encouraging. We estimate 2010 vs. 2009 around -10% net spending. After a huge decreasing in 2009 (-35%), TV market is expected to stabilize or decrease slowly in 2010 and start to recover in 2011. TV will continue to increase its market share in communication mix due to price deflation and attracting the budgets from the other media as print and OOH. Online access and speed connection increase year by year. Online is expected to be the only medium with increasing trend in 2010 by 10% versus 2009. Press market was severely affected by financial crisis: more than 50% in 2009 and around 30% in 2010 Quality and Sport newspapers decrease their circulation while Tabloid segment increase. There have been closed about 50 titles in 2008-2010. Radio decreased by 28% in 2009 and continues to decline by 10% in 2010. Top 4 suppliers (international companies) hold 2/3 from total OOH market investment while 1/3 is shared by more than others 40 small players.

Page 22


Russia CPP in Euro

CPT in Euro

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

56 345 160 56 185 990 56 185 250

34 337 470 34 212 450 39 671 510

3 027 270 3 370 300 n/a

10 094 140 9 495 460 23 407 290

19 591 820 11 393 560 n/a

1 868 880 2 710 670 n/a

TV Magazines Dailies Radio

1 115 695 2 185 415

1 406 683 2 327 410

951 426 3 424 n.a.

2 077 508 2 417 443

1 277 600 1 919 n.a.

1 286 576 1 738 n.a.

2 500

18+ (adults)

18-49

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

56 345 160 56 185 990 56 185 250

34 337 470 34 212 450 39 671 510

3 027 270 3 370 300 n/a

10 094 140 9 495 460 23 407 290

19 591 820 11 393 560 n/a

1 868 880 2 710 670 n/a

TV Magazines Dailies Radio

2.0 1.2 3.9 0.7

4.1 2.0 6.8 1.0

31.4 12.7 101.6 n.a.

20.6 5.3 25.5 1.9

6.5 5.3 16.8 n.a.

68.8 21.2 64.1 n.a.

8.0

2 327

18+ (adults)

18-49

2 185

6.8

7.0 2 000

1 500

5.0

1 406

Series1 Series2

1 115

Series3 Series4

1 000 695

CPT in Euro

CPP in Euro

6.0

Series1

4.1

3.9

4.0

Series2 Series3 Series4

3.0

683

2.0

2.0 2.0

500

415

410

1.2 1.0

0

1.0 0.7

0.0

Internet and Satellite (thematic or non-terrestrial) TV are the only grown segments in 2009: +8% & +14% respectively. Highest losses in print (-43%); Cinema (-29%); Regional TV (-32%); OOH (-41%) It's estimated 7-10% growth in 2010. Internet segment has increased in Q1 2010 +31%; NTTV +15%; Terrestrial TV +5%; Newspapers +10%; Magazines keep same level of spends as in 2009.

Page 23


Slovakia CPP in Euro

CPT in Euro

18+ (adults)

18-49

Housewife 18+

TV TG size Press TG size Radio TG size

4 294 048 4 264 036 4 264 036

2 649 492 2 727 333 2 727 333

1 638 297 2 668 097 2 668 097

807 062 844 004 844 004

862 094 1 073 328 1 073 328

274 615 108 936 108 936

TV Magazines Dailies Radio

218 417 299 96

255 394 298 96

170 373 298 89

411 421 359 189

236 331 259 86

263 221 170 65

450

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

18+ (adults) 417

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

4 294 048 4 264 036 4 264 036

2 649 492 2 727 333 2 727 333

1 638 297 2 668 097 2 668 097

807 062 844 004 844 004

862 094 1 073 328 1 073 328

274 615 108 936 108 936

TV Magazines Dailies Radio

5.1 9.8 7.0 2.3

9.6 14.4 10.9 3.5

10.4 14.0 11.2 3.3

51.0 49.9 42.5 22.4

27.4 30.8 24.1 8.0

95.7 202.9 156.3 59.7

16.0

18-49

400

14.4

12.0 299

10.9

298 TV Magazines

218

Dailies

200

Radio

96

9.6 TV Magazines

8.0 6.0

150 96

9.8

10.0

255 250

CPT in Euro

300 CPP in Euro

18-49

14.0

350

100

18+ (adults)

394

7.0

Dailies Radio

5.1 3.5

4.0 2.3

50

2.0

0

0.0

The market is dominated by TV advertisement and TV will be leading medium for next couple of years. The media with highest growth is internet, on the other hand investment into radio shows decreasing trend. Traditional OOH media are fully developed and penetrated and that means increasing focus on non-traditional forms of OOH (although the crisis slowed down this trend). Fragmentation of print market continues, on the other hand publishers decided no more donate unprofitable titles which led to closing of several titles. Despite the economic revival and optimistic prognosis the year 2010 in media industry is not going to copy this positive trend. We still expect some 2-3% investment decrease and deflation of media cost in all media but web (-3,5% in average; 6% in TV). Internet advertising is the only segment expected to rise (+10%). Page 24


Slovenia CPP in Euro

CPT in Euro

18+ (adults)

18-49

(Housewife 18+) 30-54

TV TG size Press TG size Radio TG size

1 627 061 1 514 000 1 514 000

967 654 884 000 884 000

769 927 729 000 729 000

251 691 257 000 257 000

95 456 237 000 237 000

78 818 35 000 35 000

TV Magazines Dailies Radio

108 252 288 209

144 213 287 209

123 226 304 209

236 159 278 106

175 166 262 209

183 128 166 209

350

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

18+ (adults)

18-49

(Housewife 18+) 30-54

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

1 627 061 1 514 000 1 514 000

967 654 884 000 884 000

769 927 729 000 729 000

251 691 257 000 257 000

95 456 237 000 237 000

78 818 35 000 35 000

TV Magazines Dailies Radio

6.6 16.6 19.0 13.8

14.9 24.1 32.5 23.6

16.0 31.0 41.7 28.6

93.8 61.9 108.0 41.2

183.3 69.9 110.4 88.1

232.2 366.3 475.3 596.6

35.0

18-49

288

300

18+ (adults)

287

18+ (adults)

18-49

30.0

252 213

TV

200

Magazines

144

150

23.6

209

Dailies Radio

CPT in Euro

CPP in Euro

24.1

25.0

250 209

32.5

TV

19.0

20.0

Magazines

16.6 13.8

15.0

14.9

Dailies Radio

108 100

10.0

50

5.0

0

0.0

6.6

In 2010 still decrease of media investment is expected due to crisis. Print (especially magazines and dailies) will be the media with the highest drop of investment also due to high fragmentation. TV will remain the medium with the highest share of investment although net investment is expected to decrease. Radio stations show tendency of merging frequencies (regional + local) in order to get better coverage and selling advertising space together at a better price but anyway lower investment in radio advertising is expected. Outdoor advertising investment will also decrease as it is still expensive due to printing and environmental tax costs. Internet will probably suffer the least, investments are expected to remain stable. Page 25


Serbia CPP in Euro

CPT in Euro

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

6 209 611 5 237 415 n/a

3 238 553 3 142 229 n/a

2 427 335 2 783 255 n/a

909 982 988 733 n/a

1 655 237 1 117 563 n/a

311 229 278 435 n/a

TV Magazines Dailies Radio

145 144 107 n/a

156 127 104 n/a

113 133 108 n/a

242 113 107 n/a

151 109 89 n/a

161 113 96 n/a

180

18+ (adults)

CPP in Euro

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

6 209 611 5 237 415 n/a

3 238 553 3 142 229 n/a

2 427 335 2 783 255 n/a

909 982 988 733 n/a

1 655 237 1 117 563 n/a

311 229 278 435 n/a

TV Magazines Dailies Radio

2.3 2.7 2.1 n/a

4.8 4.0 3.3 n/a

4.7 4.8 3.9 n/a

26.6 11.4 10.8 n/a

9.1 9.8 8.0 n/a

51.8 40.5 34.6 n/a

6.0

144

18+ (adults)

18-49

4.8

5.0 127 107

4.0 4.0 104

TV Magazines Dailies Radio

60

Young Adults (15-24)

CPT in Euro

145

80

Housewife 18+

18-49

140

100

18-49

156

160

120

18+ (adults)

3.3 3.0

TV Magazines

2.7

Dailies

2.3 2.1

Radio

2.0

40 1.0 20 0

0.0

TV is still dominant. Constant growth of cable channel shares. Internet successfully defends its position during recession, but it is still the media with the lowest market share. Print became more flexible and allowing higher discounts. Only internet inflation is expected in 2010.

Page 26


Ukraine CPP in Euro

CPT in Euro

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size* Press TG size* Radio TG size*

34 703 396 14 531 700 14 531 700

19 269 645 10 322 680 10 322 680

16 308 633 7 122 640 7 122 640

5 885 736 3 438 790 3 438 790

15 207 937 4 989 100 4 989 100

832 476 89 720 89 720

TV Magazines Dailies Radio

227 773 217 91

263 725 237 89

195 557 229 98

326 686 356 116

256 770 210 83

298 938 104 127

18+ (adults)

18-49

Housewife 18+

Young Adults (15-24)

Upmarket (25-49 ABC)

Businessmen (Top 5%)

TV TG size Press TG size Radio TG size

34 703 396 14 531 700 14 531 700

19 269 645 10 322 680 10 322 680

16 308 633 7 122 640 7 122 640

5 885 736 3 438 790 3 438 790

15 207 937 4 989 100 4 989 100

832 476 89 720 89 720

TV Magazines Dailies Radio

0.7 5.3 1.5 0.6

1.4 7.0 2.3 0.9

1.2 7.8 3.2 1.4

5.5 19.9 10.4 3.4

1.7 15.4 4.2 1.7

35.7 1 045.6 115.8 141.9

*settlement population above 500 000 people

900

18+ (adults)

8.0

18-49

18-49 7.0

773

800

18+ (adults)

7.0

725 700

6.0 5.3

600

Magazines Dailies

400

Radio

300

263 227

217

0

TV Magazines

4.0

Dailies Radio

3.0 2.3

237 2.0

200 100

CPT in Euro

CPP in Euro

5.0 TV

500

91

89

1.0

1.5 0.7

1.4 0.6

0.9

0.0

In crisis situation the media market in Ukraine has been greatly underestimated. It is leading in dumping in early 2009 and as a result of media's default, when demand far exceeds of available inventory. Recession is first of all touched the TV and even inflation more than 50% in 2010, cannot stabilize the TV market. On other media sold-out less due to following reasons: the end of the election and, accordingly, cease political advertising. The ban tobacco and alcohol advertising. Some of the most crisis sensitive categories did not come back with 100% activity.

Page 27


Mediaedge:cia Central and Eastern Europe Anna Lubowska CEO Central & Eastern Europe anna.lubowska@mecglobal.com ul. Dobra 56/66 Warszawa PL – 00-312 Poland Office: +48 225 527 765 Fax: +48 225 527 770

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Rozkosneho 3 Praha CZ – 150 00 Czech Republic Office: +420 227 177 400 Fax: +420 227 177 401

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ul. Dobra 56/66 Warszawa PL – 00-312 Poland Office: +48 225 527 777 Fax: +48 225 527 770

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Daniel Zivica

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Page 28

Cost Comparison Book  

mec: Fourth issue of CEE Cost Comparison Book

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