Media Market Digest September 2016

2

StarLightMedia group Broke a three-year Record TV viewing

Jan-Sep’2016 in term

of EqTRP’s vs Jan-

Sep’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 87% In Sep’2016

It stays close to critical 90% level since 23 week

Sep’16 vs Aug’16

in EqTRP’s

257,7

88,

65,8

61,9

50,9

50,6

42,6

36,7

35,8

29,2

Pharma

Food

Telecom

Hygiene

Cosmetics

Trade

Cold AFB

Confectionery

Entertainment

Auto

15%

14%

4%

30%

111%

9%

42%

8%

-6%

-6%

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

Processed by “CCM” Subsidiary Enterprise

16%

0%

13%

73%

5%

-8%

-2%

-9%

-57%

-1%

TOP Categories 2016 vs 2015 Sep’16 vs Aug’16

Pharma category increased thanks to seasonal cold and flu group activity growth vs prev. month

AVK concern increased its activity with the new brand Baristi, but that didn’t stop Hot Beverages category drop vs 2015.

Nestle provided category fall vs

Aug’16

Cosmetics category increased thanks to skin care and hair care products groups growth vs prev. year

38,7

37,2

32,3

27,3

24,1

21,5

20,3

20,2

19,1

18,8

Procter&Gamble

Nestle

Pharmak

Reckitt Benckiser

L'Oreal

GlaxoSmithKline

Vodafone

Kyivstar

Unilever

Sanofi

23%

29%

15%

124%

4%

32%

-11%

-2%

-4%

-21%

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

Processed by “CCM” Subsidiary Enterprise

1%

48%

30%

32%

133%

-41%

-18%

-2%

-2%

-5%

TOP Advertisers 2016 vs 2015 Sep’16 vs Aug’16

Terra Food activity decreased 5 times but that didn’t stop Food category increase vs 2015

Cold AFB activity decrease due to seasonal changes.

Coca-cola was the main reason of category drop vs prev. month

Kimberly-Clark start to increase activity and provided Hygiene category growth vs prev. month

IT category increased twice this month thanks to Ukrtelecom activity growth

6

Source: http://goo.gl/RnpoLP

Prediction from top-brass of the largest European satellite operator: pay-TV market will come into sight in Ukraine sooner or later, and piracy will be finished. It took decennary in the fight against them in Sweden.

Interview with top managers of the European satellite operator SES about the

prospects of pay-TV

Source: http://goo.gl/efPFV8

«The growth of TV commercial market by 35% according to one data and by 40% according to another is expected for the next year according to the optimistic estimates», - it is said in press release based on the results of KIEV MEDIA WEEK.

TV commercial market is going to increase by more than 5 mln. dollars in currency equivalent by general estimates by 2017.

Volume of Ukraine TV commercial market is going to increase by 35-40% in 2017

First seller's expectation for 2016 TV market growth is 35%-45%. Avoiding extra Sold out in 2017, sellers expect the same inflation level. Real market growth and inflation will depend on economical situation.

Alexander Polinovskiy, TV Buying Group Head Zenith Ukraine

Who is the most attractive viewer in terms of consumption now? How possible single interpretation for the media groups is here? Are there any options? What kind of consumption is on the top of an angle - content, goods?

- The most attractive TV viewer is commercial audience in the age from 18 to 54. The ones, who get wide consumption goods predominantly, and, of course, mostly it’s female audience.

Alexander Tkachenko: revisal of lath for commercial audiences above 54

years isn’t realistic for the nearest future

Source: http://goo.gl/6CGk9t

7

8

Source: http://goo.gl/Fc254c

STB became the leader in three audiences at the same time in MB Top Channel research according to the September results. «Ukraine» channel – at the head of TOP in another one. STB, ICTV and «Novyi Kanal» has the most noticeable growth of share, «1+1» − the most noticeable fall in the first month of autumn.

Top-channels of September: shoot of STB

StarLightMedia keeps breaking records

Source: http://goo.gl/pKdR9B

Share of StarLightMedia TV channels has exceeded 30% according to the results of 38th week. This is the highest indicator of group for the last three years.

«Big six» channels in the second month of new season fully filled ether with new TV projects. The 16th season of «Fight of Psychics» has started on STB, the 3rd season of «Voice. Children» − on «1+1» and own historical drama «Centuries of Yakov». «Inter» launched Ukrainian soap opera «Second life» at week days prime time, and «Ukraine» channel has shown two Ukrainian movies.

Games with share. «Voice. Children» vs «Fight of

Psychics»

Source: http://goo.gl/AFHqY0

9

10

219,7

143,1

135,0

119,7

104,1

100,0

83,0

82,0

80,2

73,6

CarlsbergGroup

Citrus

Nestle

Douwe Egberts

Kyivstar

Reckitt Benckiser

Wargaming

L'Oreal

Mondelez

Allo

454,0

292,8

241,7

213,2

197,0

213,9

175,8

147,9

151,6

149,3

Trade

Leisure time

Alcohol

Hygiene

Cold AFB

Telecommunications

Culinary

Confectionary

Hot Beverages

Automotive

Apr-Sep 2016

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

Apr-Sep 2016

TOP Categories TOP Advertisers & VOD

11

Rozetka

Yandex N.V.

101XP GamesLimited

Allo

GEPUR

Citrus

Mobtop

Vulkan Casino

Bitcoin

RabotaUA

Trade

Leisure time

Finance

Computers

Media

Tourism

Telecommunications

Automotive

Real estate

Wear

Aug-Sep 2016

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

Aug-Sep 2016

TOP Categories TOP Advertisers & Display

Now marketers can track how advertising on TV affects the number of brand-related searches on Google and YouTube, and to compare these data with the results of campaigns on YouTube. According to preliminary tests, each ads impression on YouTube brings almost twice more searches than advertising on TV.

12

Now Brand Lift can be used for analyzing effectiveness of TV advertising

Source: https://goo.gl/pAa4Bw

Google leading in coverage , YouTube takes the second place in ranking

Source: https://goo.gl/KGOCb1

Factum Group released September research about Ukrainian Internet audience. Thus, no significant changes were observed in September Top 25 most visited sites. Google keeps leading in coverage , YouTube takes the second place in ranking. Nova poshta website takes TOP-25 place in the ranking.

Measurement of digital advertising impact on brand still raise lots of questions. Thus, new possibilities presented by Google for evaluation of TV and Digital-related dynamics of consumers search demand is valuable to analyze the effectiveness of cross-media campaigns and get the most reliable results.

Maryna Grygorenko, Digital Director Zenith Ukraine

Facebook announced the launch of Marketplace - a new section dedicated to buy and sell goods for people nearby. Marketplace will be rolling out to everyone over 18 years old in the US, UK, Australia, and New Zealand on the Facebook app for iPhone and Android. Later Marketplace will be launched in other countries.

13

Facebook is Introducing Marketplace

Source: https://goo.gl/bsF3kO

Comscore tells about the dramatic impact of mobile, and in particular mobile apps, on the digital retail landscape. It reveals opportunities of using mobile apps in online commerce.

Mobile, apps and the modern purchase funnel

Source: https://goo.gl/ZEUVzB

14

Vkontakte starts auto play video advertising

Source: https://goo.gl/gCmy7o

VKontakte Videos are one of the most popular services in the social network. Users download 1.4 million videos a day. VKontakte launched autoplay videos in the news and on the pages of profiles and communities to make user experience more exciting and dynamic and to attract more attention to the target users to the publications of authors.

Snapchat Beats Instagram and Facebook as the Top Social Platform for

Teens

Source: https://goo.gl/fDEDoO

Globally Snapchat's growth as the preferred social platform for teenagers continues to outpace other social platforms, and it's cutting into Facebook usage. According to Piper Jaffray report, 80% of teens use Snapchat at least once a month, up from 74% in the fall of 2015. While 79% of teenagers said that they use Instagram once a month.

15

20,3

17,3

15,9

10,1

9,5

9,1

8,6

8,5

8,2

7,3

Fozzy Group

Epicenter

Sport Life

Lifecell

Riel

Vodafone

Samsung

Privatbank

Metro

K.A.N.Development

43%

3%

31%

52%

148%

4%

44%

-7%

-18%

-11%

196,1

131,2

77,1

58,0

41,2

32,4

25,3

24,3

21,3

16,1

Trade

Realty

Entertainment

Auto

Telecom

Finance

Sport

Restaurants

Medicine

Tourism

20%

71%

33%

46%

4%

9%

28%

25%

36%

60%

Renault, Nissan, Mitsubishi Motors drove Auto category growth vs prev. month while Toyota drove category vs prev. Year

Perfect Group has continued to increase activity since Jul’16 that has a positive impact on Finance category growth

Sport Life decreased activity vs Aug’16 but is still on the top in Sport category vs prev. year

Join up and Anex Tour provided Tourism category increase by 60% vs prev. year

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

Enterprise

TOP Categories 2016 vs 2015 2016 vs 2015 TOP Advertisers

OOH market grew by 28% vs Jan-Sep’15

For the 6 months of this year increased the number of outdoor advertising share in the structure of the advertising market in Ukraine: to 11.1% from 10.4% in the 2015 Outdoor is still one of the most accessible media in terms of building coverage and the cost of contact for the general audience.

17

Outdoor advertising in Ukraine: dynamics and prospects

Source: https://goo.gl/u2GO9L

Short summary of Out-Of-Home Forum 2016 The result of teamwork, which was presented at the forum were the main directions for the development of an integrated road map modernization visual environment of Ukrainian cities. And understanding that its implementation is necessary to create an open and public space of dialogue. The space in which the public, experts, businessmen and municipalities will discuss ways to implement joint solutions.

Source: https://goo.gl/MSaOQe

18

17,9

10,4

7,4

7,2

6,9

5,1

4,6

4,3

4,2

4,2

L'Oreal

Seldiko

Olaynfarm

ChaneL

Hexagone

Fitobiotehnologii

Dalgakiran

Procter&Gamble

Apivita

Burda

47%

38%

323%

35%

126%

147%

202%

-40%

-11%

-32%

63,4

52,8

51,7

47,3

26,1

25,2

15,1

13,2

13,0

10,6

Trade

Entertainment

Cosmetics

Pharma

Auto

Wear

Finance

Perfumes

Jewellery

Restaurants

2%

15%

41%

59%

60%

18%

58%

-5%

-9%

-1%

Louis Vuitton started increase activity that provides Trade category growth vs prev. month

Olaynfarm was the main driver of Pharma category increase us prev. month and vs prev. Year

Only 4 advertisers showed activity in Perfumes category in Sep’16 but they provides category growth vs prev. month

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

2016 vs 2015 2016 vs 2015 TOP Categories TOP Advertisers

Print market grew by 16% vs Jan-Sep’15

20

“Edinstvennaya” presented new Editor-in-chief “Edinstvennaya” will be headed by new editor-in-chief Julia Melashchenko started from November. Julia Melashchenko work in the company for more than 10 years and was the head of “Young Lady” in the past

Cosmopolitan Ukraine, Harper's Bazaar and ELLE will be sold online through Magzter To expand the online audience around the world Hearst Shkulev Ukraine, one of the leading publishing houses in Ukraine, started cooperation with Magzter, the biggest online magazines store.

Source: https://goo.gl/Qjh2vA

Source: https://goo.gl/Lo7a53

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18,2

18,0

13,2

11,0

10,6

7,0

7,0

6,9

6,3

5,1

Natur Produkt

BayaderaLogistik

Victor & Co

Get'man

Zolotiy vik

MobilLuck

Megapolis

Poltava Distillery

Russkoe radio

UkrainianNational Lotery

38%

94%

342%

51%

-6%

58,4

57,0

44,5

30,8

25,0

24,2

19,4

10,8

10,2

9,4

Entertainment

Alcohol

Trade

Pharma

Food

Auto

Realty

Jewellery

Finance

Education

48%

101%

107%

204%

48%

101%

49%

46%

125%

Get’man was the main driver of Alcohol category growth vs prev. month and prev. Year

Mironovsky hleboproduct drove Food category increase vs prev. Month

Realty category increased thanks to growth of advertisers number from 32 to 37 vs 2015

rabota.ua started its activity in Sep’16 that had a positive impact in Education category growth

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

2016 vs 2015 2016 vs 2015 TOP Categories TOP Advertisers

Radio market grew by 85% vs Jan-Sep’15

22

The habit of buying via mobile phones is constantly growing in the world. According to a global survey 57% of smartphones and tablets users made purchases via their devices. 23% of mobile shoppers buy via mobile devices every week. That means that the prospects of mobile commerce market in Ukraine are very attractive.

23

Mobile commerce in Ukraine: good news for retail

Source: https://goo.gl/Xo8ldm

The research company iVOX Ukraine conducted an online survey to find out what Ukrainian Internet users are doing to maintain their health.

How do Ukrainians care about their health?

Source: https://goo.gl/sQz5pZ

Internews Network presented the results of national sociological research about media in Ukraine in 2016

Popularity and credibility of Ukrainian online media is growing

Source: https://goo.gl/xrSrlT

24

Generation Z – the first generation that was born in the Internet era. They do not remember what life was like without the gadgets and spend with smartphones and tablets more than 8 hours a day. Speed work is becoming more important than ever.

Generation Z: who are they?

Source: https://goo.gl/0qnv08

ARF analyzed 5000 TV, radio, print and digital campaigns in 45 countries. Investments in different platforms provide greater ROI than investing in a single platform. For example, two platforms campaign gives a 19% ROI increase compared with one platform.

Research: what advertising campaigns provide a greater ROI

Source: https://goo.gl/CwXJOO

Targeted advertising not only increases the chances of brands to sell the product, but also it can affect clients’ thoughts about themselves

How behavioral targeting affects the psychology of buyers

Source: https://goo.gl/RFS9s5

25

https://goo.gl/pfs27c

https://goo.gl/CyRa1Y

https://goo.gl/vKfPcE

Advertising receptivity is stronger in the morning Traditionally the best time for advertising is considered to be evening because of the volume of the audience. But the study shows that the receptivity level during this period is estimated at 45 points while in the morning it is 59 points

Research: Online advertising should be visible for 14 seconds For advertising to be watched for 1 second, it should be visible for 14 seconds, the InSkin Media study notes. For advertising to be watched for 2 seconds, it should be visible 33 seconds

90% of mobile shoppers begin purchasing from search engine According to the Google survey, 70% of offline buyers use mobile devices to search for information before buying. 92% of them purchase the relevant goods

https://goo.gl/vKfPcE

Infographics

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

27

Thank You!