Population

2.1 Million Average Salary

400 Euro Unemployment

26 %

No statiscal data about how many

are working abroad

2014 GDP Total 11.3 Billion

2014 GDP Rank

130th GDP Growth

3.8 %

The economy is strongly influenced by the political crisis Driven by public infrastructural projects and foreign investment, growth is likely to top 3%

in the coming years, but joblessness and poverty remain major problems.

Market Research •  Audience and Brand research

Media Market Research

TV

Ratings + Monitoring 440 households Arianna Nielsen

PRINT

Ratings + Monitoring CATI, sample - 250 individuals daily Analitika

RADIO

Ratings CATI, sample 180 - 190 individuals daily Media Puls

INTERNET

Web audience

measurement

information

obtained through

cookies attached

Gemius Explorer &

Gemius Audience

Official monitoring available only for TV and Print

Media insight 2015

TV

28 Mil.

OOH

6 Mil.

Print & Magazines

6 Mil. Internet

4 Mil. Radio

3 Mil.

47 Total 2014 net-net media, approx.:

million

Annual Change | 2013-2014

5%

-4%

0%

0%

3%

Online

Print

Radio

Outdoor

TV

Source: Nielsen

88.20%

15.80% 6.30%

82.60%

41.60%

14.60%

79.60%

59.30%

24.70%

70.90% 69.20% 59.60%

TV Internet Print

Primary

Secondary

High

Post Grad.

In 2014 television was the most important medium for informing the Macedonian audience. 82.7% of respondents said that they were informed about domestic and foreign events via TV. Only 1.3% of the population has never used TV as source of information. Internet is the second choice the Macedonian citizen uses as source of information, with 41.4% using it every day or almost every day.

TV

TV MEDIA MARKET

STATE OWNED BROADCASTING SERVICE TERRESTRIAL MULTIPLEX TV SATELLITE TV

MRT 1 MRT 2 - Albanian MRT 3

TV Sitel TV Kanal 5 TV Alsat – Albanian TV Alfa TV Telma

TV Sitel 3 TV Kanal 5+ Nasha TV TV 21 Albanian TV Sonce TV 24 Vesti TV Era Albanian

Digital signal since 2013 95% via some type of cable operator or IPTV

Betweeen half hour and 2 hours

23%

Don’t watch TV at all 2%

Between 2-4 hours 37%

Less than half hour 6%

More than 4 hours 33%

0%

How many hours a day are you watching TV approximately?

TV

•  TV scene is still dominant, in the sense of daily time spent in front of TV but also as influence

•  Around 60% of adv. budget

•  Ratings are strongly influenced by Turkish synchronized telenovelas and TV shows produced in Belgrade.

The majority of the respondents were dissatisfied with the quality of the

movie program (48.60%), and that same percentage does not watch

Macedonian TV programs;

They opt for “others”, over 50% of them, which perhaps is rare in the world;

28.9% answered that they most often watch “Discovery” and almost equally

(20.8% or 20,6%) Fox and Sport Club.

1.7%

1.9%

2.0%

2.0%

2.3%

2.4%

2.5%

2.5%

3.1%

3.2%

3.3%

3.5%

4.6%

4.7%

5.0%

5.3%

5.4%

5.5%

6.2%

8.2%

8.3%

9.5%

10.1%

10.4%

12.9%

13.5%

13.7%

20.6%

20.8%

28.9%

BOOMERANG

CNN

B 92

RTK

AXN

24 KITCHEN

KLAN

ARENA SPORT

BALKANIKA

PLANETA

PINK

TLC

HISTORY

HBO

OBN

VH 1

TOP CHANEL

RTV 21

TV 1000

CINEMANIA

MTV

ANIMAL PLANET

HRT

NATIONAL GEOGRAPHIC

DM SAT

EUROSPORT

RTS

SPORT KLUB

FOX

DISCOVERY

109.82

182.61

253.45

402.62

348.68

406.94

587.49 587.16 584.67 538.29

74.64

127.25

187.97

299.93276.96

204.63

348.57361.42

269.78 276.86

6.87 26.97

85.97 162.44 96.99 103.41

154.05148.4

156.78 164.25

92.4498.27

106.59 113.41 106.87 110.05 111.62 113.17 103.37 92.22

176.2

162.71

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

ТВ Сител ТВ Канал 5 ТВ Алсат-М ТВ Телма ТВ Алфа

The five television stations that broadcast via terrestrial multiplex throughout the whole country accumulated a total revenue of 21 mill. Euros together

TV Sitel 44%

TV Telma 6%

TV Alfa 13% TV Alsat-M

12%

TV Kanal5 21%

MTV 4%

The Macedonian Radio Television

makes only about 4% percent of its

revenue from advertising, although

the commercial breaks are restricted.

TOP 10 TV Categories 2015 CATEGORY Eqv. GRPs SO$%

1 SOFT DRINKS 749985 12,4%

2 GOVERNMENT AND LOCAL GOVERNMENT PROJECTS 72581 5,4%

3 TELECOMUNICATION 55359 7,6%

4 ALCOHOL BEVERAGES 36759 6,1%

5 OTC 34043 5,4%

6 SWEETS 29622 4,3%

7 HOUSEHOLD PRODUCTS 25299 3,9%

8 COFFEE 24285 3,7%

9 POLITICAL PARTIES AND ORGANIZATION 19176 2,7%

10 FURNITURE AND ADDITIONAL EQUIPMENT 17545 2,5%

OTHER 315749 46,1%

Period: JAN - SEP 2015

Sour

ce:

AGB

Nie

lsen

TG

:TI

RADIO

Slobodna Makedonija

31%

Antenna 5 36%

Ros Metropolis 5%

Kanal 77 28%

PRINT

PRINT MARKET

Print scene - Highlights

v  Low number and low quality of print media in general

v  Print market is declining

v  Daily newspapers have higher decline in investment than magazines

FRC Budget spending through years

44% -21%

-44% -57% 41%

-19% -63% 12% -14% -20% -1% -14% -26% -9% -80%

-60%

-40%

-20%

0%

20%

40%

60%

0

2

4

6

8

10

12

14

2010 2011 2012 2013 2014 2014/Jan-Sep 2015/Jan-Sep

EUR$MIO$

Dailies Magazines

!33%$!26%$

Share of Spending JAN-SEP 2015

Daily 55.36%

Quartal 1.11%

Monthly 10.44%

Weekly 32.90%

Other 0.18%

Sour

ce:

Anal

itik

a

ADVERTISER FRC in Euro. SO$%

1 ALKALOID 384,462.15 € 18.02%

2 EVN 139,972.83 € 198.65%

3 T-Group 139,130.65 € 4.82%

4 MOZZART BET 135,441.60 € 12.06%

5 VITAMINKA 127,975.39 € 14.44%

6 STOPANSKA BANKA 111,137.77 € 17.63%

7 PORSCHE SKOPJE 92,720.00 € 4.51%

8 UNIVERCITY DENTAL CLINICAL CENTER 89,439.80 € 4.60%

9 TINEX 88,586.40 € -36.55%

10 VIP 76,874.02 € -40.21%

TOP 10 Print Advertisers 2015 Period: JAN - SEP 2015

Sour

ce:

Anal

itik

a

OOH

Outdoor Advertising

2.800 OOH locations Skopje and MKD towns

Investment: OOH market investment after loses in 2009-2012 is now stabile

Trends: Indoor advertising in mall’s and new city buses doubledeckers

Akzent Media 46%

Screen Media 21%

Medias 7%

Kala Plakat 20%

Others 6%

With the latest development in the OOH market, there are 2 big players left, both of them are local

DIGITAL WEB

75% of households own a Internet connection

v  70% of users are online daily v  62% of the internet users are on the social media daily

v  There are 1.060.000 FB profiles,

v  Online market is still not fully regulated and settled, v  Around 200 active web sites,

v  Only the biggest web sites have switched to CPM model,

WEB – Highlights

JIC in Macedonia

As it was said in the announcement of my presentation, Macedonia has

undergone an international tender procedure for selecting a research

company that would conduct TAM (Television audience measurement).

No, it was not done in Slovenia nor in Croatia...

But in Macedonia! Yes, interesting. How this has happened in Macedonia. Lets start from beginning.

Until 2007 we used the AGB Nielsen’s dairy methodology.

Since 2007 400 people-meters have been installed throughout Macedonia.

In February 2015 we established a Joint Industry Committee consisting of

the MRT State Broadcasting Service, the five private national TV stations

that broadcast via terrestrial multiplex, and the Macedonian Association of

Agencies for Marketing (MAAM). The goal for establishing the Committee was to select the agency that will provide relevant, accurate and precise

TV audience measurement data that will be trusted by all users.

What lead to establishing the JIC, the first

one in neighboring countries?

Based on our agreement for stabilization and association with EU, we have to pass a million of different laws and regulations. Among them was new law on media. In one of the articles of this Law, just vaguely mentions that the Agency for Audio-visual services will perform the official TV audience measurement.

MAAM made a huge pressure through the media. Finally it was decided to organize an official international tender. The AVMU in cooperation with Association of broadcasters and MAAM prepared the regulations where was implemented our request to establish the JIC. The ratio of the founders, as well as the payment method of the future TAM would be: 70% TV stations, 20% agencies and 10% the Association of Advertisers.

MAAM opinion was that the State Agency for Media (AVMU) and the Public service MRTV should not have equal voting right in the JIC. After a series of meetings and lobbying, we made a compromise for the AVMU to be a member without the right to vote while MRTV would be an equal member. The last problem we needed to solve was that the advertisers did not have an association of their own and their part in the establishment of the JIC was taken over by the TV stations. In order to protect the TV stations we introduced the rule that for the adoption of any law besides the simple majority we should also have the majority of votes by the TV stations.

After we finally established the JIC, lobbying started immediately The key point were the criteria. If we did not have very clear and restrictive criteria, we could have a dangerous situation where a small local company would win the tender. The MAAM insisted for the tender to set high criteria in order to attract only the big international companies and we managed to get our demands accepted. The technical specification defined that the eligible companies to apply would need to provide quality standards as well as transparency standards

While working on the establish survey we issued the tender

By setting the criteria high, ( company’s which would like to participate must have at least 5 years experience in TAM and reference of 3 or more countries in the EU or OECD, we practically decided that the call will be open only to the big international companies. To ensure that the tender will be noticed by the big players, we contacted directly several big companies that we assumed would be interested to participate. At the end we got 3 applications.

Participating companies

Before the presentations the three companies

requested the contract period to be changed,

from the proposed 5 years extending it to 7

years in order for them to have business logic

to participate in the tender

All the companies had excellent presentation’s. The first phase foresaw live presentation of their references, organizational structure of the team in Macedonia, the software and the hardware and the peoplemeters that would be installed.

To avoid manipulation and leaking of information about the price, the financial bids were set to be sent on the same day, two days after the presentations. All were given the responsibility to make 3 offers based on 3 different numbers of people-meters. 450 - 520 - 570 for monitoring the eight channels. Also, they were asked to give 2 types of offers. 1. Where JIC is the owner of data, 2. And the research company alone sells the data on the market.

We will know soon which company will win the tender.

But what is conclusion based on macedonia experience:

1. Organize your self before some “other” start organizing you

2. With formally registered JIC as a condition, there is no “small” market’s even for the players of caliber of Kantar, GFK….

3. Before starting the pitch, define are you ready as a JIC to be the exclusive buyer and seller of TAM data

4. In the case of exclusivity which usually is condition for big players to

enter the tender, predefine as a JIC the criteria how you gone split the expenses and incomes.