Media Market Digest February 2017

Major Facebook video update brings autoplay sound, picture-in-picture, and more

Chatbots: Hype or the real deal?

2

Feb-Jan’2017 in term

of WTRP’s vs Feb-

Jan’2016

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 up to 81% In Feb’2017

The highest rate in February since

2011

Feb’17 vs Jan’17

Show ”Golos krainy-7” has passed

RECORD with program share for

audience 18-54 (50thd+)

amounted to 22,3%

in WTRP’s

-11%

Confectionery category showed a seasonal growth. But category Food showed seasonal recessional.

Mondelez grew its activity in Confectionary category in Feb’2017 vs Jan’ 2017.

The category Telecom is characterized by activity decrease tendency.

Growth of Detergent category in Feb was caused by activity of Procter & Gamble.

This Advertiser distribute activity in its 4 categories.

89,7

22,4

20,3

12,3

10,7

9,8

9,8

8,0

8,1

5,7

Drugs

Cosmetics

Food

Trade

Telecom

Confectionery

Hygiene

Hot Beverages

Entertainment

Detergent

1%

17%

40%

20%

45%

19%

39%

-23%

-8%

-15%

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

Processed by “CCM” Subsidiary Enterprise

13%

64%

7%

30%

-14%

-18%

-25%

-15%

-9%

-10%

TOP Categories 2017 vs 2016 Feb’17 vs Jan’17

12,9

11,2

9,5

6,9

6,7

5,0

5,0

4,8

4,7

4,6

Nestle

Pharmak

Procter&Gamble

GlaxoSmithKline

L'Oreal

Reckitt Benckiser

Sanofi

Arterium

Vodafone

Unilever

30%

24%

16%

26%

36%

-2%

-13%

-25%

-1%

-6%

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

Processed by “CCM” Subsidiary Enterprise

18%

22%

12%

109%

-14%

-34%

-12%

-66%

-20%

-45%

TOP Advertisers

L’Oreal increased in hair care and skin care sub-group.

Unilever decreased activity in 4 categories – Cosmetics, Detergent, Hot Hygiene and Beverages.

Top Drugs Advertisers decreased activity due to the end of the flue season.

GlaxoSmithKline actively rise led to the top list.

2017 vs 2016 Feb’17 vs Jan’17

Source: http://goo.gl/CwAhhM

Demand for TV commercial exceeded the similar last year period by 9% in January. Ukrainian TV commercial market may grow by 35% according to the results of current year. Such forecast was done by StarLight Sales, subdivision of one of the largest media group StarLight. As was noted in the press release of media group, amount of brands, which advertised on TV, broke three-year record and reached 273 in January of this year.

Ukrainian TV commercial market is going to grow by 35% in 2017, - forecast

It's too early to make an annual forecast, market could go with two scenarios: hot or cold. Current markers (demand and sold-out) gives a signal that it will be hot scenario. In this case high demand will provoke to high competition for a limited ad resource and cost growth. Thus, advertisers have to make a choice: save all activities and invest more or change approach (invest only in locomotive brands, decrease period of activity, revise media split).

Maxim Pozhar, TV Buying Group Head Zenith Ukraine

Source: http://goo.gl/KQ3p2Z

Director of Channel's Broadcast Network Development Department, Andrew Malczewsky, is explaining the dangers of a sudden transition to digital broadcasting in Ukraine.

The 30th June 2017 – the date of analog TV disconnection, approved by Cabinet of Ministers. But «1+1» group announced last week, that after analog TV disconnection about 5 million of Ukrainian viewers can stay without TV.

«1+1» version: what is wrong with analog TV disconnection this year?

Source: http://goo.gl/DBHWNY

At the beginning of current year, there are 470 800 subscribers of satellite TV service in Ukraine . Data, which was published by The State Statistics Service, demonstrates the fivefold growth of such subscribers amount compared with the 1st April 2016, when there were 90 400 of them. Growth in IPTV sector looks even more impressive: amount of subscribers of such service grew from 16 600 to 540 900 during the same period.

There has been a significant growth of IPTV and satellite TV subscribers in Ukraine

Source: https://goo.gl/hQbCuY

According to the recent research data, which was undertaken by Nielsen, millennials spend on watching traditional TV programs approximately by 27% less time, than those aged over 35.

The report «Millennials on Millennials» states, that the youth at the age from 18 to 34 spend on watching traditional TV programs on average 66% of general time which they weekly spend in front of the screen watching video content. This index is equal to 89% for TV viewers at the age from 35 years and over.

Millennials spend on watching TV 66% of free time

Source: https://goo.gl/KRsVfA

The fourth episode of seventh season of vocal show «Golos krainy-7», which «1+1» channel showed on 12th of February, has passed with record-high index, the press service of the channel informed.

Program ratings for audience 18-54 (Ukraine) amounted to 8,2%, for 18-54 (50 ths+) – 7,9%, and share – 21,5% and 22,3% respectively.

The show gathered the highest share over the past two seasons of adult «Golos krainy» in audience 18-54 (Ukraine), and record share for all time of it’s broadcasting in audience 18-54 (50ths+). In general, all editions of show have entered TOP-10 of the most rating programs.

«1+1»: «Golos krainy-7» has broken record of TV viewing

10

11

49,6

44,2

42,5

29,5

29,1

28,5

28,1

23,1

20,3

20,0

Citrus

Beiersdorf AG

Kyivstar

Reckitt Benckiser

Mondelēz

L'Oreal Group

Nestle

Jacobs DouweEgberts

Unilever

Pepsico

115,4

64,1

60,6

57,7

54,2

51,7

48,5

43,3

28,5

23,9

Trade

Cosmetics

Hygiene

Telecommunications

Confectionary

Entertainment

Pharma

Culinary

Hot Beverages

Auto

Jan-Feb 2017

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

Jan –Feb 2017

TOP Categories TOP Advertisers & VOD

12

3 471

618

431

329

246

243

241

228

197

191

Rozetka

Citrus

Allo

Markason

LeBoutique

MakeUp

GEPUR Group

Yandex N. V.

Drive Sport

Lamoda

8 355

1 195

771

614

485

432

362

212

195

156

Trade

Enetrtainment

Finance

IT

Tourism

Media

Auto

Telecommunications

Real estate

Hygiene

Jan-Feb 2017

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

Jan-Feb 2017

TOP Categories TOP Advertisers & Display

While AdWords was the top-performing ad network on Android in the first half of 2016, there was a changing of the guard in the second half of the year as Facebook surged into the top spot on Android, bumping AdWords into the #2 position.

13

Facebook Overtakes AdWords on Android

Source: https://goo.gl/OQkVXQ

Media advertising market has increased by 38% in 2016.

Source: https://goo.gl/KJZzSV

Ukrainian Internet Association had finalized marketing research of digital advertising market.

Inside version 10.9 for Android and iOS devices, Instagram is ready to allow regular users, and not just paying advertisers, to bunch multiple photos and videos into a single post. Instagram launches the ability to share a mix of up to 10 photos or videos as a single carousel post that friends can swipe through.

14

Instagram Rolling Out Ability to Share Multiple Photos and Videos in Single

Post

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

Major Facebook video update brings autoplay sound, picture-in-picture,

and more

Source: https://goo.gl/XmSMzF

Facebook is announcing out a series of major updates to video on the social network today. Some of them welcome, others not so much. First the bad: Facebook will now begin to autoplay sound on videos, so prepare for a cacophony of noises as you simply try to catch up with your friends’ lives.

Customers will recognize order information inside Social Media. “Order status” support CRM internet-shop integration.

15

Vkontakte launched order status option for internet-shops

Source: https://goo.gl/eqM5TN

Chatbots: Hype or the real deal?

Source: https://goo.gl/9DKJvX

Are you considering implementing chatbot technology for your business? Columnist Matt Silk explains when this technology might be appropriate and whether or not you should buy into the hype.

16

7,1

4,6

3,4

3,3

3,1

3,0

3,0

2,9

2,7

2,6

Sport Life

Fozzy Group

Riel

Metro

Foxtrot

Ukrbud

Toyota

Privatbank

K.A.N.Development

Vodafone

61%

20%

116%

183%

173%

100%

170%

40%

78%

90%

57,4

43,5

20,7

18,1

9,7

9,7

8,6

7,7

7,5

4,8

Trade

Realty

Entertainment

Auto

Telecom

Sport

Finance

Restaurants

Medicine

IT

72%

110%

37%

71%

44%

93%

50%

68%

95%

146%

The growth trend of Trade continues driven by big advertisers Fozzy Group, Metro and Foxtrot.

Sport thanks to The Hockey Federation of Ukraine witch support the IIHF hockey world championship.

Activity decreased slightly in category Restaurants in Feb due to McDonalds decrease.

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

Enterprise

TOP Categories 2017 vs 2016 2017 vs 2016 TOP Advertisers &

OOH market grew by 69% vs 2016

18

Kiev will be cleaned from advertising to the Eurovision Song Contest

The main locations on which the Eurovision Song Contest 2017 will be held will be completely cleared of advertising. They will even remove legitimate designs, with the forces of their owners.

Source: https://goo.gl/dkNWup

Citizens dissatisfied with the manner of presentation of advertising products. The petition to ban outdoor advertising on facades of buildings in the city center has appeared on the website of the city administration. The document is banning "outdoor advertising" on the facades of homes signed only a few dozen people. If the petition will score 5,000 votes for the three months - the city administration will consider them.

Kharkiv residents are asked to ban outdoor advertising

Source: https://goo.gl/qrAvjT

The dating game sure is tough to maintain. Zurich-based dating app Blinq has been acquired by a Swiss outdoor advertising firm, APG|SGA, with the latter coveting the team’s experience in rolling out beacon networks for a new division that will be developing interactive ads to work in conjunction with the Bluetooth comms tech.

19

Outdoor ad firm buys Swiss dating app Blinq to power beacon push

Source: https://goo.gl/yXPgW8

Exterion Media France combines OOH with mobile technology - launching ‘Exterion Media Display’ in partnership with Dr Banner Exterion Media France has recently partnered with Dr Banner - a multichannel programmatic platform - to create Exterion Media Display. The partnership uses technology that combines Out-of-Home with mobile display ads, enabling advertisers to reach consumers at multiple touchpoints throughout the day.

Source: https://goo.gl/Wiyu6n

Kinetic has launched KineticX, the world’s first start-up incubator focused on location advertising technologies in the Out of Home space. The programme will actively shape how brands will connect with audiences on the move well into the future while offering brands innovative solutions and providing early-stage businesses access to Kinetic’s broad client base. KineticX will work solely with early to mid-stage start-ups whose products and services complement the rapidly developing OOH environment.

20

Kinetic Launches KineticX

Source: https://goo.gl/7Pnzrn

Increasing Digital Out-of-Home Volume

In 2016, the number of digital screens of different sizes. Digital outdoor advertising does not just copy everything that was on a static poster. Modern technologies allow the use of data streams to optimize content in real time: content from social networks, user content, traffic data, weather, sports match scores, train schedules, etc.

Source: https://goo.gl/EuakHE

21

2,3

1,7

1,2

1,1

1,1

1,0

1,0

1,0

1,0

0,9

L'Oreal

Seldiko

Philips

Hexagone

Fitobiotehnologii

Samsung

Edipress Ukraina

ValentinYudashkin

ChaneL

Russkaya Liniya

1%

124%

196%

57%

108%

100%

263%

100%

100%

-2%

9,9

8,7

8,6

6,6

2,4

2,1

2,0

1,8

1,7

1,3

Cosmetics

Entertainment

Trade

Drugs

Auto

Wear

Jewellery

HomeAppliance

Restaurants

Medicine

82%

23%

341%

32%

3%

-2%

-1%

-10%

-14%

-9%

The category Trade grew

thanks to increase in the activity of such advertisers Seldico, Edipress Ukraina and Chanel to the same period in 2016.

The new player Valentin Yudashkin immediately enters the top and influenced the categories Cosmetics and Wear.

After 2 years absence Russkaya Liniya get up into the top.

Hexagone began to support his brand in the category Wear

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

TOP Categories 2017 vs 2016 2017 vs 2016 TOP Advertisers &

Print market grew by 6% vs 2016

23

3,5

2,6

2,3

2,3

2,3

1,3

1,1

1,1

1,0

0,9

Natur Produkt

Zolotiy vik

Victor & Co

BayaderaLogistik

Get'man

Poltava Distillery

Megapolis

PawnshopKapital / Partner

Ukrpaletsistem

Gidrosend

127%

19%

25%

35%

3%

148%

219%

81%

-9%

-25%

9,2

7,9

6,5

4,9

4,7

3,9

2,4

2,0

1,7

1,5

Alcohol

Entertainment

Trade

Auto

Drugs

Food

Jewellery

Realty

Restaurants

Finance

2%

34%

130%

40%

40%

72%

34%

-17%

-24%

-4%

Advertiser Gidrosend increased his activity in Trade and entered in the top.

Pownshop Kapital increase activity in category Finance vs period 2016 & took 71% share

Category Jewellery increased vs period 2016 thanks to Zolotiy vik supports of its brand

Top Advertisers in category Alcohol decreased activity in February

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

TOP Categories 2017 vs 2016 2017 vs 2016 TOP Advertisers &

Radio market grew by 13% vs 2016

On February 15, a new channel of modern Ukrainian music ZEMLYA started its work. The channel is open in the framework of Old Fashioned Radio.

24

Began to work a new music radio channel ZEMLYA

Source: https://goo.gl/pXMpH1

In Ukraine sounded Radio MAXIMUM

As a result of the rebranding of Radio 24 appeared a new radio station Maximum. Sounded in Ukraine on March 10.

Source: https://goo.gl/X7Q0xw

25

26

Publicis One in Ukraine announces the launch of

creative agency Publicis Ukraine The agency to be headed by Ivanna Skulska Lowe.

Her 15 years of experience in the advertising industry and a wide pool of customers will allow to provide a competitive advantage to customers Publicis Ukraine in the short term through a more effective implementation of existing capacity, optimization, integrity and innovative approaches.

Source: https://goo.gl/8lxaz3

Marketing without a market and big data for used cars

27

The two-day program of the festival will include the conference "Best Marketing Practices" with the most up to date topics in the field of marketing and digital communications, the WOW DONE AWARDS 2017 Awards Ceremony and the evening program. Will be held March 24-25 in Lviv.

International Festival of Marketing and Digital Communications

Source: https://goo.gl/sEDZGr

Head of Internet marketing eTachki Denis Mamonov says that the big data can not help, if do not ask the question what hurts customer in time .

Source: https://goo.gl/28KBWo

The rapid development of the mobile Internet and the growing number of devices with permanent online access (smart phones and tablets) affect the digitalization of advertising money.

28

Media advertising on the Internet:

2016 results

The past year has become a year of active growth for the entire advertising and communication market in Ukraine, and media advertising on the Internet has not become an exception. In this segment, to the general growth of advertising activity, the trend of new advertisers transition to the Internet is added.

Source: https://goo.gl/gy82NS

Mobile advertising in Ukraine: results of

2016

The past year is predictably the year of intensive development of the mobile advertising market in Ukraine. Thanks to the rapid growth of the audience - the number of 3G users exceeded the mark of 10 million in 2016 - advertisers turned their attention to the mobile channel.

What to expect from the mobile advertising market in 2017

Source: https://goo.gl/hPIY0Z

Source: https://goo.gl/yHbCGt

The most influential fashion brands are named

29

The European market for consumer goods is growing at a fast pace throughout the year

In this month's Consumer Trends column, Ben Cooper talks to Nigel Hollis, chief global analyst at Kantar Millward Brown, and considers the degree that growing support for nationalist and anti-globalist politics could affect the consumer appeal for international and imported brands, to the benefit of local products.

How rising nationalism may challenge the supremacy of global brands - Consumer Trends

Source: https://goo.gl/CBhabR

Sports giant Nike is again named the most expensive brand of clothing according to Brand Finance. The success of the brand is explained by its "constant innovations and a number of products to meet the needs of different consumers."

Source: https://goo.gl/W3Gp8i

The growth in consumer spending in Europe on everyday goods, such as food, beverages and toiletries, has reached its highest level for the year - according to a study by Nielsen Growth Reporter.

Source: https://goo.gl/P9wV6a

Last week, YouTube called an amazing figure - viewers watch a billion hours a day on the platform. On Facebook, for example, users consume 100 million hours of video content per.

The mobile marketing agency Ansible in the MDEX study ranked the most "mobily adapted" global brands. The top three are Facebook, Amazon, 7-Eleven.

Smaato, one of the world's largest platforms for mobile applications monetization by placing ads in them, summed up the results for the third quarter of 2016 and outlined the main trends in the development of mobile advertising

30

Global trends in mobile advertising

Source: https://goo.gl/AwGP7t

The best brands in the mobile space

Source: https://goo.gl/5m6Nym

Infographics: mobile trends in YouTube consumption.

Source: https://goo.gl/4IBW1r

The production of food is perhaps the oldest of the existing markets. The more interesting it is to record the changes on it.

Where the advertising industry is heading: Madison

Avenue legend forecasts

31

The confidence of the Ukrainian and European consumers

at the end of 2016 stabilized, but remains weak

In which direction buyers' preferences are moving

Source: https://goo.gl/LJOLpZ

Three predictions from ex-CEO DDB Worldwide Keith Reinhard

Source: https://goo.gl/lrl9y3

The Nielsen Global Consumer Confidence and Spending Intentions Survey was conducted from October 31 to November 18, 2016. More than 30 thousand consumers were questioned.

Source: https://goo.gl/p5YxGb

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

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Thank You!