media market digest jan-aug'16
TRANSCRIPT
Media Market Digest August 2016
Internet to overtake TV in 2017 – Zenith global advertising forecast
2
Jan-Aug’2016 in term
of WTRP’s vs Jan-
Aug’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 in average 86% In Aug’2016
It stays close to critical 90% level since 23 week
Aug’16 vs Jul’16
in WTRP’s
The annual conference
was held in Kyiv on
September 22
180,4
66,8
53,3
44,2
37,4
33,5
33,3
27,7
24,6
23,9
Pharma
Food
Telecom
Hygiene
Cosmetics
Trade
Cold AFB
Confectionery
Entertainment
Auto
14%
15%
8%
30%
125%
5%
32%
18%
-3%
-4%
4 Source: GFK/Nielsen, Direct Advertising, excl. Social & Media, TA: 18-50 50k+. ‘000WTRPs. Data owner is ITC.
Processed by “CCM” Subsidiary Enterprise
Epicenter and Le Boutique provided
Trade category increase vs prev. month
Metro high activity couldn’t compensate category drop vs prev. year
Cosmetics continues to grow vs 2015 driven by L'Oreal and Beiersdorf AG
Cold AFB category decreased due to kvass group activity drop in August
West oil group was the only one showed significant growth in Auto category vs July
29%
18%
12%
21%
43%
1%
-11%
-13%
-37%
TOP Categories 2016 vs 2015 Aug’16 vs Jul’16
29,5
27,4
24,5
21,1
18,5
16,9
15,3
15,0
14,0
13,7
Nestle
Procter&Gamble
Pharmak
Reckitt Benckiser
L'Oreal
Vodafone
Kyivstar
Ukrnafta
Danone
Unilever
33%
38%
8%
136%
11%
3%
176%
-11%
-4%
-23%
5 Source: GFK/Nielsen, Direct Advertising, excl. Social & Media, TA: 18-50 50k+. ‘000WTRPs. Data owner is ITC.
Processed by “CCM” Subsidiary Enterprise
116%
9%
118%
14%
7%
33%
16%
-6%
-27%
-44%
TOP Advertisers 2016 vs 2015 Aug’16 vs Jul’16
6 out of 8 advertisers in Confectionery category lowered their activity in August
Ferrero was the main driver of category drop
Schwarzkopf&Henkel increased its activity that ensured Detergent activity growth vs prev. year
SC Johnson wasn’t active in this category in 2016
Nestle increased its activity that had a positive impact on Hot Beverages category growth vs prev. month
6
Source: http://goo.gl/FN7Xk1
TV market is going to exceed indicators of 2013 in UAH this year. Such forecast was made by CEO of StarLight Sales Andrew Partyka. Cost for TV commercial in dollars will be very different from 2013 or 2008 even with rising of pries by 35%.
Andrew Partyka about market size and increasing of prices
Source: http://goo.gl/QPFQ46
StarLightSales is increasing TV commercial cost for new clients and cost for additional volume for advertisers, that already have contracts.
Andrew Partyka noted, that autumn cost 2016 will be the offer for 2017 after increasing by 35%. And prices wiil increase for 2-3 years at least.
StarLight Sales is increasing TV commercial cost by 35% starting from autumn
Increasing demand in 2H'16 allows Sellers at least try to catch up consumer inflation 100% 2013-2016 years in UAH, instead +30% TV price increasing. It is possible only in case significant economy revival and rapid TV market boost within next years. 2017 year's demand will be the indicator of possibility to appease Sellers appetites.
Alexander Polinovskiy, TV Buying Group Head Zenith Ukraine
TV channels want cable operators pay them retransmission fee at the rate of 2,5 UAH per month for every user. «We are talking about fee at the rate of 2,5 UAH for the broadcasting of 20 TV channels of four media groups now…»
TV channels announced to cable guys price for the broadcasting
Source: http://goo.gl/GurxKF
Igor Kolomoysky is denying information about selling TV channel “1+1” to organizations, that connected with the president of Ukraine. This information was announced in widespread press release.
The owner of 1+1 media refuted information about selling TV channel 1+1
7
Source: http://goo.gl/hb3gZQ
Source: http://goo.gl/Fc254c
“1+1” leads in three audiences at the same time in MB Top Channel research according to the August results. “Ukraine” channel at the head of TOP in another one. “Novyi Kanal” and “1+1” has the most noticeable growth of share, “Ukraine” and ICTV − the most noticeable fall.
Top-list of TV channels in August: 1+1, TRK
Ukraine and breakthrough of UA Pershii
Not the first bottom anymore. Why is Inter losing its audience?
Source: http://goo.gl/ZktD1O
“Inter”, which used to be the most influential TV channel in Ukrainian media space, is losing his audience. The youth just don’t watch Russian programs.
8
9
186,8
123,8
114,9
106,6
92,2
87,7
74,0
64,4
58,5
58,3
Carlsberg Group
Nestle
Citrus
Douwe Egberts
Reckitt Benckiser
Kyivstar
Mondelez
Wargaming
L'Oreal
Allo
356,4
240,3
197,0
188,3
185,5
178,9
159,1
133,6
131,9
126,8
Trade
Leisure time
Alcohol
Hygiene
Cold AFB
IT
Food
Confectionary
Hot Beverages
Automotive
Apr-Aug 2016
Source: Gemius Ad Real, MLN Impressions. Data is processed by “CCM” Subsidiary Enterprise
Apr-Aug 2016
TOP Categories TOP Advertisers & VOD
10
Rozetka
Yandex
101XP GamesLimited
Citrus
Allo
Mobtop
GEPUR
Georgia.travel
Vulkan Casino
Bitcoin
Trade
Leisure time
Finance
Computers
Tourism
Media
IT
Automotive
Wear
Real estate
Aug 2016
Source: Gemius Ad Real, MLN Impressions. Data is processed by “CCM” Subsidiary Enterprise
Aug 2016
TOP Categories TOP Advertisers & Display
Consumer Barometer 2016 presents the results of a new study conducted by TNS Infratest commissioned by Google, and dedicated to the behavior of Internet users. Results of the study are presented as analytical online tool https://www.consumerbarometer.com/en/
11
Actual study on Behavior of Ukrainian Internet users is available
Source: https://goo.gl/JdVnof
Gemius finds out how young people live online
Source: https://goo.gl/hiIP0R
Gemius has checked which websites are the most popular among people in the 15─24 age group in Poland, Turkey and Romania, and in Belarus, Ukraine and Hungary. Find out how young people live online
Facebook is changing the way it displays Trending Topics, removing the story descriptions that were previously listed beside topics, and now only showing a “simplified” topic and its number of mentions.
12
Facebook removes story descriptions for Trending Topics & replaces with
number of mentions
Source: http://goo.gl/SSxY5K
Twitter Is Offering Influencers a New Way to Make Money on the Platform
Source: https://goo.gl/lKadF3
Twitter is offering influencers a new way to make money on the platform - adding preroll ads 'as simple as checking a box'.
One major trend is the shift away from big celebrity bloggers, to micro-influencers, which Bloglovin defined as “mid-sized influencers, with dedicated, highly engaged followers. Nearly 60 percent of the 2,500 micr-influencers surveyed by Bloglovin said they felt that Instagram is most effective for engaging with audiences, while 18 percent think the same of Facebook.
13
Influencers: Instagram Is the Most Engaging Platform (Report)
Source: http://goo.gl/wnbEfT
Mobile Search as buying motivator
Source: https://goo.gl/Ofegxt
A recent study Mobile in the Path to Purchase survey 2016 behavior of smartphone users when searching for product information and the purchase of goods in different categories - from clothing to vehicles - showed that Ukrainian actively use smartphones to search for information about the product before buying.
14
17,9
15,5
14,6
8,9
8,2
7,9
7,7
7,4
6,9
6,4
Fozzy Group
Epicenter
Sport Life
Lifecell
Riel
Vodafone
Samsung
Privatbank
Metro
K.A.N.Development
44%
2%
22%
49%
155%
4%
38%
-10%
-15%
-16%
TOP Categories
171,4
113,0
66,4
51,4
36,0
26,8
22,6
21,4
18,7
15,4
Trade
Realty
Entertainment
Auto
Telecom
Finance
Sport
Restaurants
Medicine
Tourism
17%
61%
28%
46%
2%
21%
20%
32%
61%
-1%
Telecom category increased this month thanks to Motorolla and Huawei Technologies activity growth
Visa activity grew up 4 times, but that didn’t stop Finance category drop vs prev. year
Volya took leadership in IT category thanks to activity increase vs prev. year
Pepsico and New products provided Cold AFB category decrease vs 2015
2016 vs 2015
15
2016 vs 2015 TOP Advertisers
Source: Communication Alliance-OOH, Budget, Mln UAH. Data is processed by “CCM” Subsidiary
Enterprise
OOH market grew by 23% vs Jan-Aug’15
16
"Prime Group" moves to a new state monitoring posters
Source: http://goo.gl/PFZxwB
Increase in the cost of outdoor advertising 2016
Source: http://goo.gl/B2oKSX
In 2016, operators of outdoor advertising of Ukraine had to raise the cost of their services at least twice — in the 1st half of the year and now, at the beginning of the 2nd half. This is based on the market trend of growth in advertising budgets while reducing the total fleet of advertising constructions in Ukraine and increasing in direct costs of operators‘ services.
Additional audit conducts a team of professional photographers. For three days, they take pictures of all the planes "Prime Group" and promptly transmit the footage in the company monitoring department. Photographing is carried out in ultra-high resolution. It reveals inevitably arise over time, defects at an early stage and quickly eliminate them.
The Outdoor Advertising Association of America (OAAA), trade association for the out of home (OOH) advertising industry, today announced it has joined the broader industry in addressing new, emerging ad technologies and practices through the Digital Advertising Alliance (DAA), a self-regulatory organization that implements and enforces cross-industry principles around the collection and use of data for interest-based advertising. This step is intended to help inform future OAAA work and guide its members’ privacy efforts in the quickly evolving use of ad technology for OOH advertising.
17
Outdoor Advertising Association Partners with Digital Advertising Alliance to Promote Responsible Data Principles for OOH Advertising
Source: http://goo.gl/Q3kkeb
Havas rolls out new global OOH digital network Adcity
Havas is launching a new global out of home and geolocation network, Adcity. Adcity has been running for two years in France and will now include operations across 35 offices with 300 local experts across Europe, Asia, North America and Latin America.
Source: http://goo.gl/xWmhLu
18
15,9
8,0
6,5
6,2
5,3
4,4
4,1
3,9
3,8
3,6
L'Oreal
Seldiko
Olaynfarm
ChaneL
Hexagone
Fitobiotehnologii
Procter&Gamble
Burda
Dalgakiran
UkrainianNational Lotery
59%
13%
458%
39%
160%
164%
230%
321%
-42%
-32%
52,0
45,4
45,0
42,4
22,8
21,3
13,2
12,0
11,9
9,3
Trade
Cosmetics
Entertainment
Pharma
Auto
Wear
Finance
Perfumes
Jewellery
Restaurants
44%
17%
64%
76%
19%
7%
52%
-2%
-9%
-10%
Platinum Bank activity increased, but that didn’t stop Finance category drop vs prev.year
The main reason of category drop was OTP Bank
Perfumes category decreased
Seldiko was the only active adv. in August
Thanks to high activity of new comer O'Gorod Restaurants category grew vs 2015
2016 vs 2015 2016 vs 2015
19 Source: Communication Alliance, Budget, Mln UAH. Data is processed by “CCM” Subsidiary Enterprise
TOP Categories TOP Advertisers
Print market grew by 16,5% vs Jan-Aug’15
20
Source: http://goo.gl/QCw02V
Vogue UA presented new Editor-in-chief After 3,5 years since the day of launch Masha Tsukanova leaves the post of editor-in-chief. Olga Shushko is taking the post.
21
16,3
16,0
11,6
9,6
8,9
6,5
6,1
6,0
5,9
4,4
BayaderaLogistik
Natur Produkt
Victor & Co
Get'man
Zolotiy vik
MobilLuck
Megapolis
Poltava Distillery
Russkoe radio
UkrainianNational Lotery
32%
82%
409%
47%
-4% 51,5
50,5
38,9
27,6
21,7
21,2
16,2
9,7
8,8
8,3
Entertainment
Alcohol
Trade
Pharma
Food
Auto
Realty
Jewellery
Finance
Education
56%
102%
111%
268%
45%
101%
46%
48%
123%
265%
MobilLuck was the main reason of Trade category increase vs prev.year while Zolotiy vik drive category growth vs prev. month
Pharma category grew its share twice vs prev. year up to 9,37%
Victor & Co and Gidrosend were the main reason of Food activity increase vs prev. year
2016 vs 2015 2016 vs 2015
Source: Communication Alliance, Budget, Mln UAH. Data is processed by “CCM” Subsidiary Enterprise
TOP Categories TOP Advertisers
Radio market grew by 88% vs Jan-Aug’15
22
Top managers of leading advertising holding companies specified media inflation forecasts for 2016 and predicted possible inflation level for 2017 as a part of a regular initiative from Kwendi Meda Audit. Inflation level for Radio, OOH and VOD could be higher compared with previous forecast.
23
Leaders of the largest advertising holdings in Ukraine specified media inflation level forecasts
Source: https://goo.gl/9j0k0X
Economy revives following a three-year economic crisis. GDP and private consumption are expected to grow by 3-4% next year which makes a strong basis for admarket uprise. Moreover, lack of inventory on TV and digital (VOD), as well as cut of OOH sites drive inflation for these media even higher as a separate cost driver along with GDP growth. Notwithstanding high media inflation, Ukraine still enjoys comparatively low ad cost giving good opportunities for brands to grow fast.
Denis Storozhuk, Managing Director Zenith Ukraine
Global advertising market will grow by 4.4% and reach 539$ billion in 2016 according to Zenith forecast. June forecast was improved by 0.3% thanks to the new data from American television and social networks. The forecast for the coming years was also improved and reached the level of +4.5% in 2017 and +4.6% in 2018.
24
Zenith forecast: Internet will overtake TV in 2017
Source: https://goo.gl/ougKuG
According to Admixer, online advertising continued its rapid growth in the first half of 2016 since the recovery of advertising activity last summer. All the indicators show growth: the number of active advertisers, the number of advertising campaigns and the size of the budgets. Total budgets for media advertising increased by 133%, the number of advertised brands by 29%, and advertising campaigns - 60% compared with the first half of 2015.
Internet advertising is growing actively in Ukraine: Brands increase
their budgets
Source: https://goo.gl/fV9HVH
25
According to Nielsen Dining-out trends research Ukrainians, as well as Europeans, prefer to eat at home. Fair price, service and quality of food are the main factors taking into account while choosing the place for eating out
Ukrainians rarely eat out of home
Source: https://goo.gl/K4qSI2
Global Health and Ingredient-Sentiment claims, that 70% of Ukrainians try to control their food ration for healthy life. Every third Ukrainian adheres to a diet
Ukrainian consumer prefers natural products
Source: https://goo.gl/iLhs7F
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