Media Market Digest December 2016

Ukrainian Adv market has given the forecast of 2017 media inflation

presented new way of personal news sharing, without making publications

Facebook launched its new Live Audio feature

2

Amazon Prime Video

has started

in Ukraine

2016 in term of

EqTRP’s vs 2015

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

Subsidiary Enterprise

Key facts

SOR average 88% In Dec’2016

Dec’16 vs Nov’16

in EqTRP’s

It stays close to critical 90% level since 23 week

381,1

120,

86,8

82,8

80,3

67,5

55,3

52,0

51,5

40,7

Pharma

Food

Trade

Telecom

Hygiene

Cosmetics

Confectionery

Entertainment

Cold AFB

Hot Beverages

13%

9%

5%

14%

68%

44%

1%

-9%

0%

-7%

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

Processed by “CCM” Subsidiary Enterprise

0%

36%

77%

2%

24%

28%

-11%

-29%

-28%

-5%

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

Epicenter, Foxtrot and Bodo Ukraine became the main drivers of Trade category growth vs prev. Month.

Procter&Gamble activity growth provided Hygiene category growth vs prev. Year.

At the same time this advertiser and SCA Hygiene Products LLC drove category drop vs prev. Month.

Samsung electronics started its activity in December and became the main driver of Telecom category growth this month

53,9

53,7

41,9

37,4

33,4

31,4

29,0

27,0

26,3

24,9

Procter&Gamble

Nestle

Pharmak

Reckitt Benckiser

L'Oreal

GlaxoSmithKline

Kyivstar

Sanofi

Vodafone

Beiersdorf AG

9%

20%

12%

74%

10%

27%

7%

-11%

-11%

-6%

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

Processed by “CCM” Subsidiary Enterprise

16%

12%

10%

15%

35%

45%

11%

-7%

-52%

-4%

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

Confectionery activity decreased due to Nestle and Mondelez drop vs prev. Year.

Ferrero growth didn’t stop category fall in 2016.

Letgo App started activity in 2016 and became the main reason of IT category growth vs 2015.

SC Johnson stopped activity in 2015 and provided Detergent category drop in 2016.

4 of 5 advertises decreased their activity and provided category drop vs prev. Month.

Media groups have started to charge fee for their channels translation from Ukrainian providers from the 1st January. This became the next achievement of media groups in the conflict with providers, which has started 10 years ago.

Position of media groups is as follows: providers have to pay for their services, because this corresponds to both the international practice and competitive market.

TV snowball: how is opposition between

providers and media groups developing?

Almost 95% of cable systems are going to broadcast 1+1 media channels

Source: http://goo.gl/MHJGJv

StarLightMedia has reported about agreement with 90% of telecom providers

Source: http://goo.gl/FWCAVN

«Lanet» has cut «Inter Media Group» channels off from his networks in Kyiv, Ivano-Frankivsk and Kalush on 11th January

Source: http://goo.gl/4R2Jhh

Source: http://goo.gl/s4fIQY

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

Channel «1+1» became the leader in ratings of TV viewing in key target audiences on results of past year, the press centre of 1+1 media has informed.

TV channel took the first position in audience 18-54 (Ukraine) with the average annual channel share 11,6% for the fourth consecutive year.

«1+1» became the leader of TV viewing in commercial audiences in 2016

Source: https://goo.gl/q1nEVL

Channel «1+1» leaded in ratings of TV viewing on 31st December and New Year's Eve for the fifth consecutive year, the press centre of 1+1 media has informed.

It’s share was 19,1% in audience 18-54 (Ukraine) and 20,6% in audience 18-54 (50К+) on the last day of 2016, that became the best TV viewing rate on Ukrainian TV. The share increased to 30,4% (18-54, Ukraine) and to 33,2% (18-54, 50К+) on New Year’s Eve (from 22:00 to 1:00)

«1+1» became the leader of TV viewing on 31st December and New Year's

Eve

Press Service of Media Holding Vesti Ukraine formally declared about termination of UBR channel. "Media Holding will concentrate on priority of own digital-resources, strengthening positions of newspaper «Vesti» on media market and fight for the right to speak for Radio Vesti", - the press center has informed.

Media Holding Vesti Ukraine reported about broadcast termination of UBR

channel

Source: https://goo.gl/YqVN3l

9

10

254,4

238,4

206,6

183,7

157,6

142,8

127,7

124,4

116,9

101,2

Carlsberg Group

Citrus

Nestle

Kyivstar

L'Oreal

Douwe Egberts

Reckitt Benckiser

Allo

Mondelez

Wargaming

792,7

405,4

351,2

338,7

301,9

263,0

259,2

246,8

227,7

216,7

Trade

Leisure time

Alcohol

Telecommunications

Hygiene

Culinary

Pharma

Confectionary

Cold AFB

Auto

Apr-Dec 2016

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

Apr-Dec 2016

TOP Categories TOP Advertisers & VOD

11

Rozetka

Yandex N.V.

Rabota UA

Russkaya Liniya

Citrus

Allo

modna Kasta

MobtopGroup

101XP GamesLimited

GEPUR Group

Trade

Entertainment

Finance

IT

Media

Tourism

Telecommunications

Auto

Wear

Real estate

Aug-Dec 2016

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

Aug-Dec 2016

TOP Categories TOP Advertisers & Display

Why should choose adaptive, instead of mobile design

12

3 reasons make your web-site adaptive

Source: https://goo.gl/iMfXIe

The Hidden Mass Audience: Why Community Is Bigger Than You Think

Source: https://goo.gl/Wmr5fJ

Remember online communities? 15 years ago, it was the future of communication. Back in the day, Usenet newsgroups, IRC chat rooms and bulletin-board forums ruled.

GoMobile tells about mobile-market, technologies and opportunities.

13

Mobile Digest: the main worldwide news of mobile

Source: https://goo.gl/GOeVqH

VK.com: new storytelling feature

Source: https://goo.gl/SRi58N

Social media presented new way of personal news sharing, without making publications.

Book readings, interviews, and news radio are coming to Facebook thanks to its new Live Audio feature launching today with a few publishers and authors before opening up next year.

14

Facebook Live Audio makes talk radio social, starting with the BBC

Source: https://goo.gl/8ho2n0

Check out live 360 video on Twitter

Source: https://goo.gl/r05B6t

Today, they’re introducing a new way to see what’s happening on Twitter – through live 360 video.

15

26,2

21,2

17,6

13,4

13,2

12,1

12,1

12,0

11,4

9,7

Fozzy Group

Epicenter

Sport Life

Lifecell

Real

Privatbank

Metro

Vodafone

Samsung

K.A.N.Development

20%

52%

127%

11%

59%

3%

-9%

-10%

-17%

TOP Categories

273,9

181,6

104,6

82,1

55,2

50,2

32,3

30,0

29,4

18,1

Trade

Realty

Entertainment

Auto

Telecom

Finance

Restaurants

Sport

Medicine

Building

25%

79%

29%

48%

4%

23%

23%

19%

43%

27%

Real is the leader and the fastest growing player of Realty category in 2016

McDonald's provided Restaurants activity growth vs prev. Year.

Freedom drove category growth vs prev. Month.

The growth of Lifecell is compensated by Kyivstar & Vodafone decrease limiting Telecom increase by 4% in 2016

2016 vs 2015

16

TOP Advertisers

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

Enterprise

2016 vs 2015

OOH market grew by 32% vs 2015

17

5 out-of-home predictions for 2017 from Catherine Temple

5 points about the out-of-home industry by Catherine Temple, a member of the Supervisory Board of UAC on outdoor advertising.

Source: https://goo.gl/ZDuFUU

About how will develop ooh media, says Natalya Reznik De Pirro, director of sales-House "Prime Group".

5 out-of-home predictions by Natalia Reznik De Pirro for 2017

Source: https://goo.gl/DpvNuU

OOH is on the cusp of a new evolution: how it’s planned, bought and its interaction with people.

Mixing all of these ingredients together moves OOH into an unseen and largely untested realm – meaning many of our pre-existing rules, recommendations and benchmarks will be re-examined.

18

Posterscope publish OOH Predictions for 2017

Source: https://goo.gl/rPCGe2

Out Of Home in 2017: Static is Dead and Digital doesn’t Cut it

Source: https://goo.gl/gIwRKq

Brendon Cook said: In the past year the Out Of Home industry has debated the best way to describe traditional billboards and their newer digital forms. it’s time the OOH industry retired the terms static and digital and moved to classic and dynamic.

Out of home (OOH) advertising “has the ability to really drive clever copy home that other media can’t always do as well.” This well-spoken premise – offered by the chief marketing officer of Spotify – supports my bullish predictions for the New Year. In 2017, OOH will outperform growth in overall advertising and the GDP (gross domestic product).

Source: https://goo.gl/YXXze4

In 2017 OOH do well and do good

OOH On Path To Programmatic, But False Claims Could Derail Progress

19

Clear Channel opens in the US programmatik-ooh-sale advertising

Automated Digital Billboard Purchasing Meets Marketers’ Demands by Tapping into Audience-Driven Data that Integrates OOH into the Broader Programmatic Media Ecosystem, Enabling Smarter and Easier Buys.

Source: https://goo.gl/TuHM3Q

Programmatic advertising has powered a decade of growth in digital advertising. The U.S. out-of-home (OOH) market is also on the “path to programmatic.”

Source: https://goo.gl/yqj6NB

OMAC: creativity and innovation - the key to success ooh

Source: https://goo.gl/K3vS2l

The president of OMAC said that the data in the future planning ooh-campaigns will play more important role. Media planners and marketers need more detailed information about the audience, to be more precise to target and segment it.

The future of OOH

Source: https://goo.gl/FjYh8B

The out of home (OOH) industry faces change at every turn. But the new characters in the OOH narrative turn out to be good. Data, mobile phones, and digital hardware will sustain us, not confound us.

20

17,9

13,6

8,4

8,1

7,4

5,4

4,8

4,3

4,2

4,2

L'Oreal

Seldiko

Oleinfarm

Hexagone

Chanel

Fitobiotechnologii

Toyota

Procter&Gamble

Yves Rocher

Apivita

21%

129%

35%

10%

234%

28%

-16%

-40%

-37%

79,3

58,9

52,6

52,3

29,4

26,5

16,7

14,9

14,2

12,5

Trade

Entertainment

Cosmetics

Pharma

Auto

Wear

Perfumes

Finance

Jewellery

Restaurants

17%

5%

21%

-15%

-15%

-3%

-20%

-17%

-36%

-33%

L'Oreal provided Cosmetics activity growth vs prev. Month

At the same time L'Oreal with P&G prevent category growth vs prev. Year

Auto category continues to shorten investments in 2016 despite Toyota & KLO increase

Saucony & Calzedonia drove Wear category growth vs prev. Year

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

TOP Categories 2016 vs 2015 TOP Advertisers 2016 vs 2015

Print market fall by 14% vs 2015

22

Harper̀ s Bazaar /BAZAAR Best Dressed Date: December, 7th, 2016 Place: Small Mariinskiy Palace Guests: 350 persons CONCEPT: annual prodject of Harper’s Bazaar highlighting best-dressed women of the year. This prodject is held by other countries and considered to be the most popular Harper’s Bazaar event. At the end of the year, the Harper’s Bazaar editorial team composes the list of the most stylish Ukrainian women based on their looks and appearances in public, social and luxury events during the year. PARTICIPANTS: famous and stylish Ukrainian women. CRITERIA: main value of Harper’s Bazaar – elegance expressing the woman’s individuality.

Harper̀ s Bazaar beauty brunches Special brunch is event for readers. Beauty Editor and professionals tell and show how to care about skin and hare in specific period. Format of the event is friendly talking, master-classes, photo sessions, deserts and drinks. Date: November, 30th, 2016 Place: Fairmont hotel, Atrium Beauty Partners: Yves Roches, Clinique, Kerastase, Eisenberg beauty Brands informed our readers about winter trends in Make-up & Perfumery, skin care and hairdoes

23

20,5

19,3

14,3

14,0

12,1

8,9

8,7

6,6

6,3

5,4

Natur Produkt

Bayadera

Victor&Co

Getman

Zolotiy Vek

Megapolis

Poltava Distillery

MobilLuck

Ruskoe

ORBI GROUP

16%

481%

59%

1078%

342%

155%

-33%

0%

67,6

66,3

55,6

38,3

31,6

29,2

22,8

12,9

11,3

8,5

Alcohol

Entertainment

Trade

Pharma

Auto

Food

Realty

Finance

Jewellery

Education

33%

2%

58%

56%

63%

20%

10%

84%

129%

-5%

Zolotoy Vek, Prostor & MobiLuck drove Trade category growth in 2016

Epicenter showed the highest decrease in category

Growth of Pharma vs prev. Year is stimulated mostly by Natur Product

Arterium and Berlin Chemie drove Pharma activity drop vs prev. Month

Alcohol is the leader by activity in 2016 driven by Advertisers of Vodka

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

TOP Categories 2016 vs 2015 TOP Advertisers 2016 vs 2015

Radio market grew by 32% vs 2015

24

Ukrainian advertising market has given the forecast level of media inflation for 2017

25

As part of a regular initiative Kwendi Media Audit top managers of leading advertising holding companies in Ukraine refined assessment of media inflation in 2016 and was named in its possible level of 2017 year.

Source: https://goo.gl/J0P9Bu

Though there is no economic background behind high advertising market growth in 2017 (minor GDP growth and decreasing consumption inflation), growing competition brings hot market scenario (above 30% growth) as most probable. Media mix optimization becomes even more important now to maximize ROI within limited resources.

Denis Storozhuk, Managing Director Zenith Ukraine

26

Results of the year and new challenges Marketing directors considered the active development of digital-trends, changes in display advertising, which is associated with the search for the most effective and efficient methods as the main changes in marketing management in 2016.

https://goo.gl/SwYSDK

https://goo.gl/3OXnCO https://goo.gl/g7juNy

What will happen to the digital industry in 2017? In his opinion, the top 5 major industry trends dictated by consumers who want more quickly and effectively solve their problems, and are waiting for a qualitative increase in the level of services provided business.

5 programmatic-predictions from Admixer for 2017 The Ukrainian market in this area lags behind the world trends, and rapid growth of the software we have only just begun. What trends will set the tone of its development, experts predict from sales-house Admixer, a strategic partner of the Google DoubleClick in Ukraine.

Trade agency services continue to lose their importance for the consumer market Media agencies have to go to technology, to justify the need for its existence in an environment, where customers can work with Google and Facebook, and even with the Starlight directly.

https://goo.gl/q2zwDB

Internet Marketing Trends for 2017 from the Academy of WebPromoExperts

27

Social networks continue to develop rapidly, thus offering every year more and more new products and creating new trends that open up new possibilities for brands and advertisers to communicate with their consumers. Some of them take root, some do not. What will be popular in 2017 in social media?

The expected trends for 2017 from GRAPE Ukraine

Newage team evaluated the effectiveness of media campaigns and shared the findings concentrate on what the technical nuances of the market to decide.

Media Ads Trends for 2017

Source: https://goo.gl/ZkBzRk

The head of the academy, internet marketer, teacher and practitioner Anton Voronyuk decided to share his vision of the trends of Internet marketing that have been relevant in 2016 and only gain strength in 2017.

Source: https://goo.gl/nba14O

Source: https://goo.gl/89bovm

Marketing in 2017: Trends and Prospects

28

Trends in content for 2017: opinion of Western experts

Source: https://goo.gl/Ss2jOi

Ericsson ConsumerLab research shows that online video consumption is rising every year. Video is also viewed increasingly on the move and in real time, with video calls, online games and live event broadcasts. Recently, we have also seen user generated real-time broadcasts moving into the mainstream, for example with Facebook Live.

10 hot consumer trends 2017

Source: https://goo.gl/8zK0Jk

Marketing director EVO company explains why what is happening with the new economy and the new marketing revolution can be called evolutionary, and says, without which marketers can not manage in 2017.

Source: https://goo.gl/EzmpW9

This year will be remembered for important changes in the field of contextual advertising. Among them - disable ad unit to the right of Google SERPs on the desktop and start deployed text ads into AdWords. Marketers also have access to a number of new features and advertising formats in the Bing Ads, Facebook and other services.

Nielsen: almost half of online advertising misses the target audience

29

Marketers call priority areas for investment in 2017

Source: https://goo.gl/jm9jYG

Consumers 7 Times More Likely to Trust Social Content over Advertising

Source: https://goo.gl/46f4OD

A new study from Nielsen says that online advertising hasn’t hit the target. The data are based on a study of more than 44,000 campaigns in 17 countries. As a result, only 53% of the ads were viewed by people the correct age and sex.

Source: https://goo.gl/FCMfWG

Digital-advertising and Events for buyers - top investment areas for brands in 2017, says a recent study by Autopilot. Based on the survey of 505 responsible for marketing in the US, 30% of marketers plan to invest in digital-advertising, and 30% - in game events for consumers.

Olapic released the results of a global study this week exploring the impact of user-generated photos on consumer trust and brand engagement. Results show that of those surveyed worldwide, consumers are seven times more likely to trust social media photos featuring “real people” than traditional advertising.

Readiness №1: My child - centennial

30

Digital-Savvy Gen Z Consumers Cling To Physical Stores, Brand

Experiences

Source: https://goo.gl/OGaJOp

What marketers must do to appeal to Gen Z

Source: https://goo.gl/jk9Szy

According to the theory of generations of William Strauss and Neil Howe, then every 20-25 years there is a cyclical alternation of generations, differing worldview, perception of the world and, consequently, abilities and preferences. The reason for the change of generations are primarily socio-economic changes in the life of mankind.

Source: https://goo.gl/NYbJX3

The global study from IBM released Thursday found 67% of Generation Z shop in bricks-and-mortar stores most of the time, with another 31% shopping in-store sometimes, indicating 98% of Gen Z shop in store at some time or another.

The latest AdReaction: Gen X, Y, and Z study confirms that marketers will have to work much harder if they are to reach and motivate the digitally-oriented Gen Z audience. To do so they will need to understand the underlying motivation behind generational differences and not just accept the difference at face value.

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

Prepare your brand for

the moments that

matter

32

Thank You!