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.