CIS: Azerbaijan, Armenia, Georgia
Transcription
CIS: Azerbaijan, Armenia, Georgia
INSIGHTS • IDEAS • RESULTS CIS: Azerbaijan, Armenia, Georgia Sergey Rogovsky 2015 | p. INSIGHTS • IDEAS • RESULTS Azerbaijan | p. 1 | Market overview Total Advertising Expenditures 2009-2015 • Azerbaijan economy shows growth during previous 3 years 1-5% yearly. Media market is growing step by step. 100 90 80 • TV media inflation 2014 according to agency estimations was 0-10% depending on TV channel 70 40 2 5 • Digital media is the most rapidly developing: Internet penetration exceeded 70% of HH in cities with 40k+ population. 80% of users use internet regularly 30 8 3 • Forecast for 2015 is stagnation of media market except Internet advertising 5 6 60 4 5 3 5 50 11 11 9 7 6 6 12 12 3 3 43 46 46 2013 2014 2015 F 12 3 3 3 3 20 28 6 5 6 32 34 38 2010 2011 2012 10 0 2009 TV Print OOH Radio *Source: There are not appropriate market researches at the market by “net” marketing spends therefore we apply agency estimation. Internet © 2015. Proprietary and confidential. | p. 4 1 | Market overview 120 100 80 60 40 20 0 be in Internet use subway use busses read monthly editions billboards Internet 2 read daily editions read weekly editions 9 Print 4 Radio 3 listen Radio 41 2014 watch TV CPT OOH 80 70 60 50 40 30 20 10 0 TV AZN, net/net CPT Comparison by Media: • OOH is effective as additional support media which increases brand awareness and generates reminding brief messages. CPT of bus branding and bus stops are the most cost effective way of OOH advertising. • Internet is effective as additional media support for young and smart audience for promotion of innovative and expensive products. Internet occupies the 3rd place after TV and OOH in terms of media consumption • Print is effective media for education of new product, message delivery to target audience – woman. CPT for press editions is given based on gross price lists *Source: There is not appropriate market researches at the market by “net” marketing spends therefore we apply agency estimation. CPT for all Media is given for TA 18+ © 2015. Proprietary and confidential. | p. 4 | Market overview History of media measurement research systems SIAR media research Only TV Monitoring bases and TV viewing data are available since 2001 till 2005 TV Monitoring bases and TV viewing data are available since 2005 till now January, 1999 SIAR diary panel appeared (TV measurement system established by BMRB) - among Azerbaijan advertising agencies AA&M Advertising Media Department became first subscriber. Since January 2006 SIAR launched own TV viewing measurement system together with CESP and MARKDATA January, 2000 monitoring SIAR starts to measure Radio (diary panel), Press January, 2007 SIAR starts monitoring of OOH AGB January, 2005 AGB people metric panel appeared at the market. AA&M Media Department became one of the first subscribers March, 2012 AGB starts Radio monitoring Note: OMG Azerbaijan has the durable monitoring and TV viewing data base at Azerbaijan advertising market © 2015. Proprietary and confidential. | p. 6 | Market overview Important developments on TV market: Switching to digital TV • Switching to Digital TV in Azerbaijan is process which is going on during 2014 year. Together with digital airing analog airing will take place during 1-2 years. Therefore transition will be gradual and people should get accustomed to new airing technology. Limitations on content. • Azerbaijan committee of television and radio limits TV channels’ programming. We still face ban on foreign series broadcasting, limitation on some talk shows and entertainment projects. More strict regulation of advertising content also take place. For example it’s not possible to use in TVC such wording as 1-st place, the most popular without statistic and research proofs. Important developments in monitoring panel • AGB Azerbaijan plans to remove old people meters (TVM2) with new model (TVM5) due to change in airing system in Azerbaijan. As a result new panel will be up to date with last adjusting research and will conform with structure of penetration of non-terrestrial TV (satellite and cable). • In September 2014 only 17% of HH in the panel had access to cable or satellite. • AGB planned the following steps in order to renew panel: presentation of strategy of development; research execution; launch of new panel 120 PPM (1-st part) only in Baku; then launch of 2-nd part of new panel 120 PPM in regions. • As a result AGB planned to have new panel of full value including 400 HH in Azerbaijan • Satellite and cable TV cover about 70-80% of HH according to agency estimation • Penetration of Russian advertising is less as compared with Turkish (as there is language barrier) but it takes place for Russian speaking people © 2015. Proprietary and confidential. | p. 7 | State of TV market TV sales structure Teleport ANS COMMERS 31% of ad revenue 30% WRP inventory 20% of ad revenue 20% WRP inventory SPACE XEZER 14% of ad revenue 16% WRP inventory 27% of ad revenue 25% WRP inventory VIA 5% of ad revenue 6% WRP inventory Ictimai TV Teleport 3% of ad revenue 3% WRP inventory AzTV1 All national channels: AATV, ANS, Space, Lider, ITV, Xazar sell both minutes and GRPs Other National and Region channels are not monitored or have too low profit share Source: AGB Azerbaijan , All 18+ © 2015. Proprietary and confidential.| p. 7 | Market overview 2014: Top 20 advertisers Thou. GRP 30‖ 18+ +20% 1 160 140 Other 24% Pharma 5% Soft drinks 9% -8% 120 Hygiene 19% 2 -7% 5 -22% 6 +47% -24% 12 13 40 -4% 9 HHC 12% +54% +96% +5% -2% +27% 18 23 11 16 20 +59% -31% +19% 22 10 21 16 14 BERLIN-CHEMIE 60 -10% DELL'ORO 7 Communica tion 17% UNILEVER 3 +23% GSK 80 Confectiona ry 14% -17% SOLITON 4 PEPSI-COLA 100 COLGATE PALMOLIVE 180 Position GRP30‖ in 2013 and growth trend 2014 vs 20/11 2013 HAYAT QRUPU 200 Top 20 advertisers make 51% of all media market -1% -17% 20 Mobile operators Source: AGB; TA – 18+ ETI LOREAL/NESTLE TV SHOP COCA - COLA KRAFT FOODS AZERSUN HOLDING RECKITT BENCKISER AZERFON SCHWARZKOPF & HENKEL MARS&WRIGLEY BAKCELL PROCTER & GAMBLE 0 *all channels with sponsorship but without TV banners | p. 8 | Market overview Radio - Media #1 for announcements Radio Stations (number increasing) • High flexibility and immediacy • Audience selectivity, mobility • Quick coverage building up to 80% (on local level) • High frequency • Quick recall © 2015. Proprietary and confidential. | p. 9 | Market overview Main Radio Stations Outlines Main Radio Stations Outlines ANS CM 102 FM – highly structured programming with accent on news, targeted programs for housewives, drivers, youths; entertainment. The leading radio station by ―Total Audience‖ Burc FM – general programming, mainly Turkish and Azeri music. Interactivity with audience. Advantage is popularity among taxi and bus drivers. One of the leaders by ―Total Audience‖ among Azeri speaking audience ―Azad Azerbaijan‖ – general programming. Only Azeri music. 106 FM – mainly entertainment and music oriented station, Media FM — radio station offers various music of different styles, news blocks every hour, and entertainment programs . •Lider Radio — airing in new jazz format. It’s the only station for jazz lovers. • • • Sales, Promotions – retail and service categories. Seasonal fluctuations – pre-holiday, summer holidays – discos, tours; perfumery, gifts – New Year, 8 of March, etc Announcements – medical centers, new offices, new stores, concerts *Source: There is not appropriate market researches at the market in Radio segment therefore we apply agency estimation. | p. 10 | Market overview 2014: Top 10 categories (investment in AZN) +14% Other Insurance 2014 y 2013 y Food Education Total radio market 2014 : 39 902 801 AZN total budget (+21%) 539 761 insertions and (+11%) 12 280 112 seconds duration (+10%) Construction materials Construction and Repair Communication Autotransport Medicine Trade Finance 0 2000000 4000000 6000000 8000000 10000000 12000000 AZN Source: AGB © 2015. Proprietary and confidential. | p. 11 | Market overview OOH Media #1 for localization Quick contact frequency accumulation A wide variety of formats Own format creation possibility Constant presence arrangement 1. Powerful image pressure 2. Distinct localization © 2015. Proprietary and confidential. | p. 12 | Market overview OOH market (top suppliers list) 1. ART Media - 400 2. RMM Groupe - 150 3. Poster – 200 Q.Qelem 4. Impeks - 50 5. AB Global - 60 Project Impeks Zodiak JC Decaux AB Global ART Media AzReklam 6. AzReklam - 100 7. Q.Qelem - 30 8. Project - 20 9. Zodiak – 20 10. JC Decaux - 20 RMM Groupe Poster Bus branding !Booking possibilities are limited due to non established OOH sale system. Most of locations are sold by immediate order © 2015. Proprietary and confidential. | p. 13 | Market overview OOH formats Billboards – standard construction 3x6. Trivision – standard size 3x6. Three advertising places change each other during intervals 15-30 sec. Often is breaking Lightbox – new format of advertising in Baku. Premium format size 3x4. Three advertising places change each other during intervals 15-30 sec. Non standard wall constructions Non standard roof constructions Street Light box 1.2x1.8 © 2015. Proprietary and confidential. | p. 14 | Market overview OOH Subway Subway advertising over train Subway advertising inside train constructions Subway advertising wall constructions © 2015. Proprietary and confidential. | p. 15 | Market overview Internet - Media #1 in the future? NOW! WHY? • Flexibility • Interactivity • Targeting, exact tuning corresponding with consumer’s interests • Huge informational descriptiveness • Content creating unlimited possibilities • Comparatively low cost of production • Different means for efficiency measurement and control © 2015. Proprietary and confidential. | p. 16 | Market overview Digital trends I-net subscribers in percent from population Number of internet users 9000 8100 7200 6300 5400 4500 3600 2700 4 747 5 146 2012 2013 4 699 3 689 1800 2 445 900 0 829 2007 1 500 male 2008 2009 2010 Source: Internet world statistic and Wikipedia 2011 female © 2015. Proprietary and confidential. | p. 17 | Market overview Digital Trends Top Internet sites o Due to absence of independent monitoring in Internet we use agency estimations in this report o Mail.ru is the most popular mail server o Day.az, 1News, Lent.az, Oxu.az, Trend.az, Milli.az, APA.az are popular news portals o Facebook.com and Odnoklassniki are the most popular social networks o Video.az, Open.az, Big.az and Enter.az are popular entertainment resources o Navigator is online Yellow Pages in Azerbaijan o Turbo.az is most popular auto site o Video content is possible to place in google partners network o Also we have several popular azeri video portals: Video.az, Myvideo.az, Enter.az (preroll placement) o Video banners also possible place on most of local entertainment and informative resources Source: Google analytics, Live Internet; Mail.ru Group; Face bakers List of popular Internet resources Google day.az – news portal video.az – entertainment resource mail.ru – mail server facebook.com – social network big.az – entertainment resource open.az – entertainment resource odnoklassniki.ru – social network turbo.az – automobile portal 1news.az – news portal navigator.az trend.az– news portal oxu.az – news portal myvideo.az – entertainment resource axsam.az – news portal qafqazinfo.az – news portal qadinlar.biz – female portal disput.az – forum milli.az – news portal lent.az – news portal vesti.az – news portal anspress.com – news portal qadin.net – female portal gun.az – news portal azxeber.com – news portal auto.az – automobile portal azadqadin.az – female portal apa.az – news portal avtomobil.az – automobile portal © 2015. Proprietary and confidential. | p. 18 | Market development Azerbaijan: Non-TV development Print • Print is # 5 media in terms of investments, is in stagnation for the last years • International and local editions are presented in Azerbaijan. Image/advertorial/insertions are available formats for placing in local editions. Insertions only are available for international magazines. • ‘OK’ is still the most popular magazine in Azerbaijan with high circulation and sell-out coefficient. It’s most relevant for cosmetic brands audience. Magazine OK Boutique Nargiz L'Officiel Azerbaijan woman Baku Aysel AATV Magazin Cosmopoliten Insertion into local Mag Insertion into foreign Mag Type of placement Full page inside Full page inside Full page inside Full page inside Full page inside Full page inside Full page inside Full page inside Full page inside Full page inside Full page inside Price per unit per Sale CPT month AZN Coverage coeffitient forecasted 1500 7000 90% 40 2380 5000 50% 159 2500 5000 70% 119 3500 5000 50% 233 4000 10000 30% 222 8000 50000 60% 44 891 5000 50% 59 779 8000 30% 54 1600 7000 20% 190 0,15 25 0,15 25 Print can be considered as additional support to providing image and educative support © 2015. Proprietary and confidential. | p. 19 | Press Options in premium female editions Recommended option are Boutique, Nargiz, OK because these editions have the most clear situation with circulation and less number non sold copies according to agency estimations among local female magazines © 2015. Proprietary and confidential. | p. 20 | Press Foreign and magazines by subscription As additional option. More than 150 foreign editions for women with more than 20 000 subscribers can be used for insertions Price per 1 insertion – 0,15 EUR TOP 20 List of editions by number of subscribers Name of magazine Number of subscribers Лиза 2500 Bizim mətbəx 2000 Çox yaşa 2000 Бурда/Burda Moden 1800 Cosmopolitan 1750 Vogue 1650 Отдохни 1500 Marie Claire 1450 Womens Health 1220 Elle 1200 Лиза. Гороскоп 1000 Glamour 820 Семь дней 800 Караван историй 750 Mini. Burda 700 Даша 600 Cosmo Beuty 520 Harper's bazaar 500 Hello 500 Женское здоровье 450 © 2015. Proprietary and confidential. | p. 21 INSIGHTS • IDEAS • RESULTS Armenia | p. | Armenia People Total Population (2014): 3 015 400 Urban / Rural population (2011): 64.1% / 35.9% Male/Female: 48.5%/51.5% Median age: 34 years Ethnic groups: Armenian 98.1% Yezidi (Kurd) 1.2% Others 0.7% Religions: ̵ Christian 94.8 % ̵ Yazidism 0.8% ̵ Other 0.4 % ̵ No response 4% Languages: ̵ Armenian 97.7% ̵ Kurdish 1% ̵ Russian 0.9% ̵ Other 0.4% ̵ The population density is 101.38 person per sq.km 65+ 55-64 25-54 15-24 0-14 700 600 500 400 300 200 100 0 0 100 200 300 400 500 600 © 2012. Proprietary and confidential. | p. 23 Source: National Statistic Service of Armenia 700 2| Yerevan is the most populated city 79% of population of working and solvency age Gyumri 9% Vanadzor 6% Avobyan 3% Kapan 3% Age 0-14 19% Age 65 + 11% Age 55-64 12% Age 15-24 15% Yerevan 79% Age 25-54 43% The most populated city in Armenia is Yerevan ~79% (vs. 9% - Gyumri, 6% - Vanadzor, 3% - Kapan, 3%Abovyan) Source: National Statistic Service of Armenia © 2015. Proprietary and confidential. | p. 24 | Current Law on Advertising in Armenia TV, Print, OOH and Radio Advertising of tobacco and breast feeding substitutes is strictly banned in all media except print (tobacco is allowed on print). ! Ban on Strong Alcohol advertisement called off in Aug’14 Only TVCs in Armenian language. Local language or subtitles in local language. If necessary the statement of advertising at the discretion of the advertiser can be duplicated also in other languages in relatively small letters (subtitles). Any language of publications © 2015. Proprietary and confidential. | p. 25 | Armenia Media Market growth 2014 FC: +17.4% in USD and +6% in 2015 Mln $ 30 36 34 33 46 60 50 +14% 40 30 +39.8% +5.8% -8.6% 5 1 5 1 0 6 1 2 6 1 20 5 1 0 10 22 27 28 23 2009 2010 2011 2012 35 54 57 +17.4% 2 7 1 2 +10% 2 8 1 3 42 44 2014 2015 FC 0 TV Digital Print 2013 OOH Radio Average market inflation (rate-cards) Total Media TV +38% +45% +19% +22% +26% +30% +14% +15% +18% +20% +18% +20% +10% +5% FC 2015 Media Market growth is 10%, mostly due to the New active category on TV advertising (Alcohol will allow to advertise on TV since 2015). Digital advertising is forecasted to have a significant raise vs. 2014. TV estimated growth by 10%; Est. inflation by rate cards 5%. (market growth is based on alcohol activity in 2015) OOH media #2, Print FC will keep the same level No inflation FC on Radio Digital FC increase by 20-25%. Est. Inflation by rate cards 20%. © 2012. Proprietary and confidential. | p. 26 | CPT by media (USD) CPT estimation TV $2,52 OOH $2,04 Internet Radio Print Print is the most expensive media in terms of CPT, because it has the lowest coverage and OTS. Internet is cheaper in terms of CPT because the low prices on advertisement and high level of coverage. CPT are calculated based on agency estimation for 2014 prices. $0,49 $2,31 $40,72 © 2015. Proprietary and confidential. | p. 27 | Main Media trends and facts OOH TV The only measured media Buying by GRPs from April 2013 in 4 channels of 1 Sales House (MIS) Shift from large formats to city-formats (seniors, light boxes and etc.) Reduction of standard BB formats H1 national channel – direct advertising ban from Jan 2014 High clutter in the capital and weak presence in the regions. New channel in Sales House structure (Erkir Media which has almost 2.5-3% TV viewing share). It will cause some changes in the discount systems for sales house (exclusivity discount, package discount) More non-standard formats Development of transport advertising Strong alcoholic beverages (vodka) are allowed on TV from Aug 2014 TV viewing decrease can be resulted by the following factors: 1. changes in the audience mode of life; 2. growth of digital; 3. increase of cable TV High clatter resulted lack of qualitative inventory and sold-out factor by the end of the year Long-term planning benefits allows to get better conditions and more qualitative placement Source: Agency evaluation Radio Radio has started to be monitored by Aug 2014 More Integrated non-standard placement Currently has a small coverage only In Yerevan and some surroundings, FC coverage increase in the regions Budgets are declining => giving up to Internet. © 2015. Proprietary and confidential. | p. 28 | Main Media trends and facts Internet 70% of coverage in the country Sharp growth of the ad. Budget Mobile internet usage development Print Budgets are declining => giving up to Internet Product Placement is used in the Category of ―Hygienic Care Products‖. More PR and announces rather than modules. Distribution oriented (Magazines) rather than selling © 2015. Proprietary and confidential. | p. 29 | TV Sales Houses structure Media International Service (The Only SH) Independent National channel with only sponsorship TV Market Share(wGRPs1817% vs. 17% 83% vs. 66% 0% vs. 17% 65), 2014 1-12’ vs. 2013 1-12’ 15% vs. 22% 24% vs. 21% 61% vs. 57% TV Viewing Share 2014 1-13’ vs. 2013 1-12’ New sales house ―Media International Service‖ started working since April’2013 and includes Armenia TV, Shant TV, ATV & Armnews. From 2015 the Sales House will include also the channel Yerkir Media (small channel with 2.5-3% of TV viewing share) Since January 2014, all commercial advertisement has been removed from state TV channel H1 Source: GFK Armenia, All 18+ © 2015. Proprietary and confidential. | p. 30 | TV Share, Armenia All years Armenia TV remains most viewed: Armenia TV is getting its share from Shant TV & H1 100 Other ch 90 80 70 23 0,4 3,2 0,6 2,5 21 0,4 2,7 0,8 1,9 23 0,5 2,6 0,7 1,5 27 0,4 1,8 0,5 1,1 24 0,4 1,2 2,1 0,6 1,5 0,3 1,3 1,5 0,6 1,3 6,76 60 8,31 9,26 8,58 8,22 8,40 50 22,3 40 15,7 13,4 22,8 10,4 23,2 8,0 23 0,4 1,3 1,5 0,6 1,4 5,14 19 0,4 1,1 1,9 1,1 1,6 6,47 17 16 0,4 1,4 2,0 1,3 1,9 0,4 1,4 2,0 1,8 1,4 1,9 0,5 1,6 1,8 1,7 1,6 1,3 5,42 5,03 5,51 20 15 0,4 1,4 1,5 1,7 1,7 1,5 5,87 15 15 1,6 1,9 2,4 2,0 3,81 0,5 1,4 1,5 1,8 2,2 2,1 3,67 6,80 19 25,4 23,9 20,8 19,6 19,3 20,6 20 5,42 18,9 0,7 1,6 1,5 1,9 2,2 2,6 4,46 5,36 12,1 24,7 11,3 9,7 11,5 13,4 15,6 16,7 12,5 16,3 19 21 1,0 2,0 2,1 2,5 2,6 2,9 1,1 1,9 1,6 2,3 3,0 2,9 0,9 1,5 1,5 2,3 2,8 1,9 18,5 20 16,0 15,2 0,9 1,4 1,1 2,1 2,2 2,0 5,42 5,01 Dar21 Shoghakat TV 11,8 12,2 4,81 4,61 AR 13,4 9,8 Armnews 16,3 Erkir Media 17,5 18,9 19,4 Kentron ATV H2 20 10 H3 Lime TV 19,9 24,1 15,1 20 MIR 0,6 1,8 1,7 2,1 2,2 2,0 3,78 5,24 25,0 15,2 30 22 20,7 19,8 21,1 24,0 20,7 23,5 22,1 23,0 22,4 24,4 25,4 24,7 23,1 22,3 22,0 25,7 22,9 21,9 21,6 24,1 H1 Shant 0 ArmeniaTV Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Source: GFK Armenia 2014 TA All18+, Direct placement © 2015. Proprietary and confidential. | p. 31 | TV Market. Key summary There is only one sales house, and naturally, it is driving the market and is coming up with the selling standards. In 2015 we are not expecting any price inflation but we forecast increase in investments due to the new category – Strong spirits – entering the TV scene. However, Spirits will buy airtime significantly more expensive; There is no much competition between channel – three coverage builders (Armenia TV, Shant and H1); and on one of them (H1) the direct advertisement is banned. New small channel joins the Sales House family (Yerkir Media). most probably will take the role of cost optimizator. We also can expect some incremental reach; Increased demand at the end of the year has resulted in high clutter, lack of qualitative inventory and sold-out effect ~40% of Armenian population has an access to cable; Penetration of Cable and Satellite TV is growing year by year © 2015. Proprietary and confidential. | p. 32 | OOH market Budget, $M Dynamics% 15% 10 8 7% 6 -5% 4 2 0 20% 7% 10% 8% -9% 6 5 5 5 6 6 7 8 2008 2009 2010 2011 2012 2013 2014 2015 F 15% 10% 5% 0% -5% -10% -15% OOH is not measured & monitored in Armenia. The high clutter in the capital and weak presence in the regions. Reduction of billboards in the city center (regulation by the Mayor), development of non standard outdoor and development of the transport advertizing (especially on bus). More non-standard placement. Budget are forecasted to grow constantly. Source: Agency Estimation © 2015. Proprietary and confidential. | p. 33 | Print market Budget, $M Dynamics% 0,7 0,6 0,5 0,4 0,3 0,2 0,1 -3% 3% 0,60 0,58 2009 2010 0% 3% 3% 3% 3% 0,60 0,62 0,64 0,66 0,68 2011 2012 2013 2014 2015 FC 50% 40% 30% 20% 10% 0% -10% Print is very small growth in the market, resulting in a very high price. Print media is stable in Armenia. But is losing the share in the total media budget. It’s giving up mainly to the digital placement. Monthly Glossy Magazines have the biggest share of press budget Most of magazines are open for ad banners, PR materials placement and any other nonstandard way of co-operation. Only 20-25% of all magazines are being sold the other part is distributed in HoReCa and offices. Source: Agency estimation © 2014. Proprietary and confidential. | p. 34 | Print Sales Houses EL HOLDING MEDIA PARTNERS INDEPENDENT PUBLISHERS © 2015. Proprietary and confidential. | p. 35 | Radio Market Budget, $M Dynamics% 44% 5 4 22% 3 2 1 0 0% -9% 9% 11% 5% 3% 1 1 1 2 2 2 2 2 2008 2009 2010 2011 2012 2013 2014 2015 FC Radio News: Radio started monitoring in Armenia since august 2013. Small coverage only In Yerevan and some surroundings More Integrated non-standard placement (Online airing, out of home reality) The budget is currently decreasing. We forecast that the level will remain the same (even can be a small lift up) because of monitoring. Radio is mainly used by small local brands as the alternative of TV in terms of small budget, or it’s used as a supportive channel (by finance category or mobile operators). Source: Agency estimation © 2015. Proprietary and confidential. | p. 36 50% 40% 30% 20% 10% 0% -10% -20% | Radio Sales structure FM Times (23%) Alfa (27%) Panarmenian Media (13%) Independent 37% Radio Sales House Source: Agency est. © 2015. Proprietary and confidential. | p. 37 | Digital penetration in Armenia is growing from year to year Internet penetration 100 90 80 70 60 50 40 30 20 10 0 Shirak 2.8% 56,9 15,3 2009 25 2010 32 2011 39,2 2012 2013 Lori 4.1% Tavush 1.8% Kotayk 3.9% Aragacotn Yerevan Gegharkuni 2.8% k 71.6% Armavir 2.8% 3.7% Ararat 3.3% Vayoc Dzor 1.3% Syunik 1.8% Yerevan and Lori regions have the highest penetration level Source: World Bank © 2015. Proprietary and confidential. | p. 38 | Internet Market Budget, $M Dynamics% 113% 5 4 84% 3 44% 2 1 0 17% 25% 0% 7% 0 1 1 2 2 3 2009 2010 2011 2012 2013 2014 2015 FC 0 150% 130% 110% 90% 70% 50% 30% 10% -10% 70% of coverage in the country Sharp growth of the ad. Budget Mobile internet usage development Source: Agency estimation © 2015. Proprietary and confidential. | p. 39 INSIGHTS • IDEAS • RESULTS Georgia | p. | Country General Info Georgia: General information • President - Giorgi Margvelashvili • Prime Minister – Irakli Gharibashvili • Official language – Georgian • • Population – 4.9 mln Main Regional Cities (population): Kutaisi – 196 800; Batumi – 125 800; Rustavi – 122 500; Zugdidi - 75 700; Gori – 54 900; Telavi – 47 500 • Main Source of Income: Services, Trade, Tourism, Food and beverage production • GDP Per Capita: 3 596.6 USD (2013) • Nominal GDP - 15.984 billion USD (2012) • Nominal GDP growth: +7% in 2012, +3% in 2013 • CPI (Annual Average to the Annual Average ): 2013 – 99,5 • Unemployment rate – 15% (2012) • Average monthly nominal salary ~ 420 USD (2012) • GEO exchange rate : 1 USD – 1.7690 Gel (April 07, 2014) • Main priorities for country economic development: • Business de- politization • Restore agriculture and local manufacture • Tourism • Export of energetic recourses Source: Department of Statistics of Georgia; 2013 © 2015. Proprietary and confidential. | p. 41 | Country General Info Research Tools Medium Monitoring by (institute) National and Cable TV AGB Nilsen Georgia Digital Press IPM Monitoring / IPM Adex Radio IPM Monitoring / IPM Adex Outdoor IPM Monitoring / IPM Adex Statistics Panel representative for Data Period, Channel, Budget, GRP, program, Advertiser, Insertions, Affinity, Category, Brand, TVC Reach, Share, Contacts name, TVC length, TVC number position no monitoring Budget, Insertions, Period, Edition, GRP, TRP, Affinity, Advertiser, Category, OTS, Reach, frequency Brand, Position, Format of contacts of issue, Description Period, Station, Program, Advertiser, Budget, Insertions Brand, Jingle name, Length, Position Period, Location, Budget, GRP, OTS, advertiser, Category, Reach Brand, Format Georgia Big cities Big cities Tbilisi • Regular monitoring is available for TV, other media is provided on request base and for additional cost • In 2013 TNS Georgia with USAID and IREX support launched radio audience research. • • Study is divided in 2 parts: face-to-face interviews and Telephone interviews. Methodology to be used: DAR (Day-After-Recall) © 2015. Proprietary and confidential. | p. 42 | Country General Info Market growth is forecast in 2014 Mln USD 60 45,6 Mln USD, incl.VAT 50 40 5% 9% 8% 2% 52,5 54,0 55,1 7% 8% 6% 2% 8% 10% 5% 2% 8% 57,2 9% Radio 11% 5% 3% 10% 5% 3% OOH 30 20 Print 77% 77% 73% 74% 75% Digital 10 TV 0 2010 2011 2012 2013 2014F Media market growth 15% 3% 2% 4% TV market growth 15% 1% 1% 1.5% 0% 0% 12% TV price Average inflation TV Market growth is forecasted basically at the cost of price inflation OOH price inflation and growth and demand on inventory leads to the media market development Radio market growth is expected due to measurement system installation Digital developing due to increased demand on digital Adv.; Print stagnates Source: IREX 2011 and 2013 survey; Agency estimation. | p. 43 | About TV market Sales structure in 2014 Independent Sellers Kavkasia Imedi Sales House Inter Media Maestro Rustavi 2 Comedy Channel Public TV Tabula TV TV Market Share 2013 (wGRPs 18-65) 45% 55% The structure is done only for monitored 11 TV Channels in 2014; Buying based on minutes basically for all players GRPs buying is possible on channels of Inter Media, Imedi, Maestro, GDS for 18-65 and Music Box for specific TA s of Tbilisi TV Imedi sells GRPs for any player, got price lists for GRP buying; Inter Media and other channels sells GRPs basically for International players with big annual budget; GRP price lists doesn’t exist Source: Sales House; TV Channels; Agency estimation | p. 44 | About TV market Advertising Law: TV Advertising time must not exceed 20% of broadcasting time Advertisement must be in the state language - Georgian; Foreign trade mark must be transliterated in Georgian In an advertisement of the product that needs certify, should be written ―certified‖ Restricted placement of commercial advertisements on Public TV; the law doesn’t extend to sport events, international festivals, contests (placement in before, inside and after the programs advertising breaks); In this case, commercial advertisements and TV-shopping time shouldn’t exceed 10% of hour (6 mins) Restricted advertising of Tobacco on TV, on the front pages of newspapers and magazines covers; Advertising of strong alcoholic beverage is allowed only from 20:00; the permission is in force until 2015; Advertisements of Tobacco and alcoholic beverage must not create an impression that these products improve one’s physical and mental health, helps in getting success and etc; Banners of the products should not be places at/in Children’s, Health, Educative, Sport, Culture institutions; Should be kept special rules for advertising medications | p. 45 | Other Media review OOH MARKET REVIEW OOH is #2 Media in Georgia. Takes about 11% of the whole advertising market; Forecast growth by 18% in 2014; Approximately 94% of OOH market is divided between two big companies and other 6% is owned by smaller ones Basically it includes traditional types of advertising – standard banners; OOH constructions: Accordingly to IPM Monitoring, two main types of outdoor advertising: Backlit and Billboard are most popular in Tbilisi. Standard Billboards size is 6X3; They are mainly placed on the crossroads of heavy traffic motorways and banks. Transportation: Full, Partially packing of buses, vans; inside Monitors; Subway: banners, monitors, posters and stickers in the different locations – carriages, vestibules, platforms, escalator tunnels The most popular construction types in Tbilisi Roof Top 4% Pillar 3% Backlit 35% Billboard 18% Street Sign 3% Overpass Billboard 4% other 3% Lamppost Sign Bus Shelter 10% 5% Wall Murals 4% Light box 11% NEW: advertising on pavements Source: Agency estimation | p. 46 | Other Media review PRINT MEDIA Newspapers: There are about 200 privately owned newspapers. • Among newspapers the most popular and the best seller is weekly publishing Kviris Palitra with digest format -Asaval dasavali (political-social); -Alia (political-social); -24 saati (diverse thematic) Magazines as usual divided in two: yellow and glossy; Generally: • Yellow magazines – weekly; with almost similar thematic; bigger circulation and lower cost than glossy magazines; Its cost is more affordable for people with low income; • Glossy magazines basically are monthly; In Georgia no much variety of thematic publishing; Cost of magazines is more acceptable for people with average and high income Source: Agency estimation. | p. 47 | Other Media review RADIO About 39 Radio Stations in Georgia • 15 of them cover the biggest territory of the country • Basic language of broadcasting is Georgian, but there are some broadcasters on foreign languages • Combination of high reach, high target ability and lower cost is main reason to consider radio as popular media in Georgia; • Radio offers direct advertising or sponsorship of programs and rubrics, some promo-actions (e.g. radio- quiz) Source: Agency Estimation. | p. 48 | Other Media review Internet Increasing number of people spend more time in front of their computers instead of other media. Number of active online users in Georgia is growing day by day; In 2012 users number is estimated as 46%, in 2013 – 52% Internet is #2 preferred media source for getting news, following TV; There is possibility to get rating of web-sites, measure their popularity by number of unique users and average number of users per day by www.top.ge; TOP 10 Georgian web-sites by top.ge Web casino Portal Video portal News portal Web – site portal Weather portal Information portal Movies portal Palitra TV-Radio News portal Web sites recource Source: eparticipationge.wordpress.com; agency estimation | p. 49 INSIGHTS • IDEAS • RESULTS Thank you! | p.