1

Media Market Digest April 2016

2

TV

Grew by 6% vs Jan-Apr’15 TV watching fell, but Internet

audience grew up in Ukraine

p.3-10

Radio

Twice increase vs Jan-Apr’15 Results of the first wave 2016 of

radio listening survey p.28-29

Research & Trends Nielsen will measure online

sales of FMCG brands International or local brand:

what do Ukrainian consumers choose?

p.30-35

Digital Google launched new adv

format to catch mobile moments on the go

p.11-17

OOH

Growth by 14% vs Jan-Apr’15 Kiev to see large-scale changes

in the outdoor advertising

p.18-24

Print

Moderate increase by 13% vs Jan-Apr’15

p.26-27

KitKat: Subway Station Branding

Cases

ZOU Campaigns

p.36-37

3

Jan-Apr’2016 in term

of WTRP’s vs Jan-

Apr’2015

4 Source: GFK/Nielsen, Direct Advertising, excl. Social & Media, TA: 18-50 50k+. Data owner is ITC. Processed by “CCM”

Subsidiary Enterprise

Key facts

SOR average 75% In 2016

The dynamics is typical for pre-crisis

years

Apr’16 vs Mar’16

TV Rating* of

Eurovision Final 2016 was 7 times

higher vs prev. years

in WTRP’s

* 18-50 50+

112,4

35,9

28,

21,1

20,8

16,6

14,9

13,0

11,6

10,7

Pharma

Food

Telecom

Cosmetics

Hygiene

Trade

Confectionery

Entertainment

Hot Beverages

Auto

9%

10%

17%

82%

28%

7%

28%

28%

36%

-13%

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

Processed by “CCM” Subsidiary Enterprise

South Food Inc. and snack producers made the biggest contribution in Food category growth.

• South Food Inc. supported Chumak brand

• Nestle remains an absolute leader in the category continuing to growth activity

ModnaKasta remained the leader between e-commerce advertisers in Trade category

56%

6%

0%

18%

-33%

-10%

-1%

-13%

-23%

-10%

TOP Categories 2016 vs 2015 Apr’16 vs Mar’16

18,3

15,5

14,6

12,4

11,2

8,3

8,0

7,7

7,0

6,8

Nestle

Procter&Gamble

Pharmak

Reckitt Benckiser

L'Oreal

Kyivstar

Unilever

Vodafone

Sanofi

Ukrnafta

73%

24%

16%

59%

19%

6%

6%

-1%

-25%

-5%

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

Processed by “CCM” Subsidiary Enterprise

28%

212%

41%

-31%

-48%

-20%

-33%

-23%

-34%

-28%

TOP Advertisers 2016 vs 2015 Apr’16 vs Mar’16

Ukrnafta activity increase vs prev. month caused Auto category growth

Nestle grew its activity in Hot Beverages category while Uniliever’s decreased support of Lipton tea

Avon cosmetics entered the market

• Nevertheless Cosmetics category decreased vs Marr’16 due to L’Oreal activity fall vs prev. month

Important changes took place in the work of TV Panel on 1st May 2016 : updated control and weighing parameters came into force and optimization of the sample size was done. This was reported in widespread message by ITC.

Optimization is conducted to keep the cost of research in future periods and won’t lead to deterioration of the representativeness of the research. The sample remains to be representational by 7 regions for both subsample of "50+" and "50-".

7

New parameters of TV Panel came into force from 1st May

Source: http://goo.gl/flLJYa

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Source: http://goo.gl/BkiJsO

TV watching decreased by 4% in the first quarter of 2016 compared to the same period of last year according to information from the National Association of media agencies “NAMediA”.

Women over 50 years, almost did not change their television habits (-1%), but the men in age group 25-50 years reduced their television watching by 7%.

TV watching fell, but Internet audience grew up in Ukraine

STB and "Ukraine" channels are the leaders of MB research “top channels of the month” in April. STB channel in the TOP for three audiences, and "Ukraine“ channel - for one. "Ukraine", STB and Novyi Kanal channels has the best April dynamics and Inter has the largest decrease of the share.

9

Top-list of TV channels of April:

Source: http://goo.gl/FwPwix

Top-list of soap operas in March: “Ask autumn” and twice “Palm Sunday”

Source: http://goo.gl/QUtF6x

"Ask autumn“ (Inter) became the leader of MB research of Top soap operas by 18+, 50 ths+ audience in March. “Palm Sunday” (STB) was on the first position for two other audiences 18-54, 50 ths+ and 14-49, 50 ths+.

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Source: http://goo.gl/ivqnrv

Source: http://goo.gl/XSl3Mr

The largest provider of cable television decided to publish ratings of TV watching of their OTT*-subscribers once again – all information of the first quarter of the year. М1 channel first appeared in “VOLIA” ТОP-30.

Provider LaNet shared data of TV watching of his OTT*-subscribers after “VOLIA” and “Triolan” had done this. The company published own TV ratings based on analysis of 50 thousand subscribers of OTT-service in April.

LaNet published shocking ratings TV watching in

Ukraine

«Triolan» published March ratings of TV watching Source: http://goo.gl/u2Z2RQ

Cable provider "Triolan" decided to share ratings of internal TV watching once again and published March data after a three-month break

«VOLIA» is continuing to impress market by internal TV ratings

*OTT – over-the-top content in broadcasting is the delivery of audio, video, and other media over the Internet without the involvement of a multiple-system operator in the control or distribution of the content

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35,0

30,2

25,4

25,2

22,3

22,2

21,2

18,6

18,2

16,5

Skoda

Beiersdorf AG

Fozzy Group

Nestle

Mondelez

Kyivstar

Mars-Wrigley

McDonald's

Metro

Pepsico

VOD TOP Categories

62,1

52,3

39,1

37,7

33,8

29,6

28,5

26,1

22,7

16,2

Trade

Confectionery

Alcohol

Auto

Telecom

Food

Cosmetics

IT

Restaurants

Hot Beverages

VOD monitoring includes HTML5 formats from the middle of March which caused technical growth of Impressions monitoring data is not stable

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VOD TOP Advertisers &

Source: Communication Alliance, represents 20%-25% of all video ad. Impressions, Mln. Data

processed by “CCM” Subsidiary Enterprise

13,0

2,3

1,8

1,6

0,9

0,9

0,9

0,7

0,7

0,5

Trade

Auto

Telecom

IT

Finance

Realty

Entertainment

Education

Alcohol

Confectionery

152%

355%

721%

50%

55%

88%

69%

218%

-43%

Rozetka.ua drove Trade category decrease

Alcohol category showed growth thanks to

• Stella Artois brand supported by Sun InBev

• Carlsberg Group with Baltika and Kronenbourg brands

Credit Agricole S.A. was the main reason of Finance category growth

9%

19%

24%

-13%

-32%

-30%

-2%

-7%

-7%

-16%

Banner TOP Categories 2016 vs 2015 Apr’16 vs Mar’16

13 Source: Communication Alliance, whole banners excluding teasers. Impressions, Bln. Data processed

by “CCM” Subsidiary Enterprise

Mondelez hugely increased Milka support, while Korona activity was shortened

ICQ LLC. was the leader by growth in IT in April, which gave the player an opportunity to enter TOP-20 list

• Microsoft and Canon also showed an increase

Lifecell grew its activity vs prev. month in Telecom category, while Kyivstar showed decline

Banner TOP Advertisers 2016 vs 2015 Apr’16 vs Mar’16

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6,46

1,22

0,79

0,70

0,54

0,40

0,37

0,36

0,31

0,31

Rozetka.ua

Nova Poshta

ModnaKasta

ATL

Mail.ru

Citrus

Mondelez

Allo

Lamoda.ua

Aist-green.com.ua

101%

100%

100%

441%

114%

231%

1%

100%

-33%

30%

9%

15%

6%

100%

-23%

-98%

-9%

-29%

-4%

Source: Communication Alliance, whole banners excluding teasers. Impressions, Bln. Data processed

by “CCM” Subsidiary Enterprise

Google tries its hand at social again with launch of group chat app, Spaces. The app allows small groups of users to tap into other Google services, including Google Search, YouTube and Chrome, in order to post links and share content without having to move in between apps. They can also have conversations in a group chat-like interface

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Google announced a new social app called Spaces which focuses on group sharing

Source: http://goo.gl/q6ETo0

Amazon Launches YouTube-Like Video Service

Source: http://goo.gl/2rXX31

Amazon is intensifying its rivalry with Google with a new ad-supported video service that resembles YouTube by letting anyone upload clips. Now Amazon account holders can upload original or their own licensed videos to the Video Direct service and get monetized through ads same in Youtube

More than a half of of online user 18-49 aged watch video on mobile devices. Habits of video viewing are changing and publishers adapt to those by creating new advertising formats. Google launches Bumper Ads in Youtube, new format of short 6-sec video ads. Such formats can improve reach dramatically. Bumper ads in Youtube are most preferable ad format for mobile users

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Google launched new advertising format Bumper Ads to catch mobile moments on the go

Source: http://goo.gl/lO6qro

With new service in Yandex-Metrika advertisers can analyze users with ad-blockers

Source: http://goo.gl/Z9BJF9

Website analytics service «Yandex Metrika» started collecting data about use of ad clockers by website visitors. Such information can help advertisers to improve segmentation of their target audience

In addition to growing as a new purchase channel, mobile commerce offers a plethora of opportunities for marketers and advertisers looking to reach their desired consumers. According to Nielsen’s Mobile Wallet Report, 37% of respondents said their purchases start with mobile shopping

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Nielsen’s Q4’15 Mobile Wallet Report revealed that 37% of respondents start purchases with mobile shopping (USA)

Source: http://goo.gl/KLBge9

Gemius reveals that Flash Player still used despite the departure from this technology

Source: https://goo.gl/5BX2Uu

According to data from January 2016 (source: gemiusPrism), internet users in European countries are still keen to use Flash Player. What’s more, they also update the software. A relatively high percentage of views on domestic websites are performed using the latest version of Flash Player

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9,1

7,7

7,0

4,8

3,9

3,6

3,4

3,2

3,2

3,2

Fozzy Group

Sport Life

Epicenter

Privatbank

Lifecell

Samsung

Riel

Vodafone

K.A.N.Development

Nestle

74%

35%

25%

25%

214%

246%

-13%

-10%

-27%

-14%

TOP Categories

78,3

46,3

32,5

23,5

15,6

14,2

10,8

9,1

8,8

4,8

Trade

Realty

Entertainment

Auto

Telecom

Finance

Sport

Restaurants

Medicine

Tourism

9%

34%

16%

47%

3%

26%

41%

-5%

-8%

-2%

Small advertisers and Fozzy Group were the main drivers of Trade category growth both vs prev. year and prev. months

Silpo was the brand, supported the most by Fozzy Group

Nissan was the leader by growth in Auto vs. prev months, Toyota – vs prev. year

Bank sector drove Finance category decrease, but Privatbank an Visa increased activity

2016 vs 2015

19

2016 vs 2015

TOP Advertisers &

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

Enterprise

People will be able to see positive changes in Kyiv on the street Mechnikova and Basejna, Klovskyj and Dniprovskyj spusk, Alleya Geroiv Krut, on the boulevard Lesia Ukrainka and Taras Shevchenko, Parkova Doroga later this year.

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The head of the Association of Outdoor Advertising Oksana Polishchuk: "Kiev to see large-scale changes in the outdoor advertising"

Source: http://goo.gl/5Efje4

Alexei Reznikov, deputy mayor, will provide the advertising sector reform in the capital Kyiv Mayor Vitaly Klitschko set several key tasks in the reform of the field of advertising to his deputy: to make the city more comfortable for Kiev residents, to remove unnecessary advertising; advertising business to create transparent and clear rules that will allow the industry to develop; to build a system of permits and control, which to be not corrupt.

Source: https://goo.gl/wI2Hfe

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Source: https://goo.gl/jfwQx8

How to amplify programmatic’s new role in out-of-home

advertising Programmatic ad buying has already revolutionised display advertising online and it is now set to transform the way out-of-home (OOH) media is bought and sold. Over half a million sites have a unique 10-digit code, allowing the inventory to be classified by location, environment and format, all of which is crucial in improving the infrastructure for programmatic development.

Amplifying digital campaigns by using OOH

Adding billboards to a social media campaign can increase reach by up to 203%, while adding billboards to a mobile app and web campaign can increase reach by as much as 303%, according to a 2013 Posterscope US study.

Source: http://goo.gl/eBSPLU

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Campaigns featuring out of home activity see 13% higher purchase intent

Source: http://goo.gl/1TK10y

Out of home (OOH) work’s inclusion in marketing campaigns has been found to considerably bolster the public's purchase intent, according to a five year study from Posterscope.

Analysing over 50 individual client campaigns, testing more than 1,500 creative executions and surveying over 20,000 respondents, the Integrated Communications Evaluation (ICE) study found that campaigns with OOH boosted purchase intent by 13 per cent when compared with those that did not feature it.

Furthermore, it was found to be one of the leading drivers of interpersonal relations, the emotional connection people feel with a brand, which drove almost half of all purchase intent (44 per cent).

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42 Obie Awards Presented For Exceptional Outdoor Advertising

Source: http://goo.gl/5YMqiK

The Outdoor Advertising Association of America (OAAA) presented 42 OBIE Awards for exceptional out of home (OOH) advertising design, including top honors for Best Billboard, Best Street Furniture/Transit/Alternative, Best Multi-Format, and Best Wall Mural campaigns. The winners of the 74th annual OBIE Awards were honored at a celebration during the 2015 TAB/OAAA Out of Home Media Conference & Expo in Boca Raton, FL.

“The OBIE Awards celebrate outstanding creativity and design, honoring those who make truly unforgettable advertising,” said OAAA Chief Marketing Officer Stephen Freitas. “This year’s winners demonstrate the countless ways that simplicity and beauty can be captured and expressed through the out of home advertising medium.”

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http://goo.gl/L6zIeQ https://goo.gl/l36TDH

http://goo.gl/buiY92

http://goo.gl/cBNGwD http://goo.gl/5oi3n1 https://goo.gl/MIm4yR

http://goo.gl/hUUHje

http://goo.gl/9tYnck http://goo.gl/ojYDpS http://goo.gl/LS0GJI

http://goo.gl/TU4aLH

A Border Billboard Framing The Sky

Outdoor Ad Detects If You Have Fever

Students Compete To Create Billboards

Chicago Billboard Recognizes Vehicles

Funny outdoor: Coca-Cola has allowed to make gifs at bus stops in Singapore

Happy beagle has become a brand-new hero of PROM.UA marketplace

Bold Effective Bus Ads

http://goo.gl/J0QZBE

Rabota.ua sat up pranks against rival in the outdoor

AXE turned ordinary Belgians in the stars of the national campaign

The next weapon in the fight against Zika? Sweaty advertising

Dove launched a campaign with billboards, reacting to rain

Mail.Ru Group has placed billboards in Cyprus "Armata Project" opposite Wargaming advertising

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10,4

6,7

4,4

2,9

2,9

2,2

2,1

2,1

2,0

1,9

L'Oreal

Seldiko

Hexagone

Olaynfarm

ChaneL

Fitobiotehnologii

Louis Vuitton

Procter&Gamble

Yves Rocher

Toyota

72%

13%

183%

62%

291%

58%

47%

-61%

TOP Categories

31,7

27,2

26,0

21,9

11,1

10,9

9,4

7,3

6,9

4,4

Trade

Cosmetics

Entertainment

Pharma

Wear

Auto

Perfumes

Finance

Jewellery

Alcohol

47%

27%

50%

47%

20%

1%

3%

-7%

-11%

-46%

Pharma category declined by 31% vs prev. month

Olaynfarm increased thanks to Noofen and Adaptol brands

NAT was the main reason of Alcohol category fall while Nemirovsky Distillery was the leader by growth

Unilever and Seldiko sharply decreased their activity vs prev. month but kept second position

2016 vs 2015 2016 vs 2015

TOP Advertisers &

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

27

15 years of success: ELLE Ukraine celebrates anniversary

Source: http://goo.gl/R8ka5X

In April ELLE magazine celebrated the anniversary - 15 years in Ukraine. During this time the edition released 177 issues - thousands of pages with colorful interviews and surveys, and won the whole army of fans.

The first issue of ELLE Ukrainian saw the world in April 2001. Since then, the magazine has repeatedly changed its appearance and content.

A photo exhibition with the 15 best covers of ELLE was presented at the Elle’s 15’th anniversary party.

Fifteen years ago, Ukrainian professionals checked against every step with the majestic world of western fashion. But today they are proud to set trends themselves.

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10,8

7,8

5,5

5,0

3,3

3,2

3,2

2,8

2,4

2,3

Natur Produkt

NAT

Victor & Co

Get'man

Megapolis

Zolotiy vik

Poltava Distillery

Russkoe radio

Crimean WineHouse

K.A.N.Development

10%

29%

34%

38%

100%

121%

TOP Categories

26,4

24,4

16,7

16,6

10,0

9,3

6,5

4,7

4,6

4,1

Alcohol

Entertainment

Pharma

Trade

Food

Auto

Realty

Jewellery

Finance

Education

191%

71%

112%

54%

90%

46%

71%

128%

NAT showed the biggest growth in Alcohol category vs prev. month (+20%) thanks to Pervaja gil'dija and Hlebnyj dar brands

MobilLuck was the main driver of Trade category increase

Gidrosend, Olis and snack producers increased their activity in Food category vs prev. month

2016 vs 2015 2016 vs 2015

TOP Advertisers &

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

Kyiv gallery Vozdvizhenka Arts House presents a thematic online radio called Old Fashioned Radio. Gallery curator Daria Yakimova promises to talk “about modern art, expensive alcohol and good music”

Online Art Radio will broadcast jazz and blues

Industrial association “Radio Committee” announced the first wave of radio listening data for 2016 in the cities of Ukraine with population over 50 thousand people. “Hit FM”, “Chanson”, “Lux FM”, “Retro FM” and “Russian Radio Ukraine” were listened the most by Ukrainians. Radio listeners are progressive and active Internet users - 77% of them are online at least once a day.

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Results of the first wave of radio listening survey are now available

Source: http://goo.gl/16Tgkh

Source: http://goo.gl/0dwGSl

You can listen new program "Contour Map" every week on Sundays. Each program will be about one country or a particular region

“Radio Vesti” launches e new program about traveling

Source: http://goo.gl/HGgdjl

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New Nielsen global survey of consumer preferences regarding the origin of the brand showed that Ukrainian consumers tend to buy food product categories from local producers, non-food products and categories - from international. The main factor in the selection of the local producers for 60% of Ukrainian consumers became advantageous price offer. Of those who choose products of international brands, 52% of consumers said that the decision to buy this product was affected by existing positive experience of usage.

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International or local brand: what side do Ukrainian consumers choose?

Source: http://goo.gl/LQEsZZ

Global research company Nielsen announces a strategic alliance with the company Profitero. Package Profitero Digital Shelf 360 will be included in the Nielsen e-commerce offer Within the framework of cooperation for FMCG brands to collect and analyze information about the Internet sales. This offer covers more than 300 million items on 4,000 sites in more than 40 countries. This digital solution evaluates all components of e-commerce, including price, promotion, assortment, search positions, product content, as well as ratings and reviews.

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Nielsen will measure online sales of FMCG brands

Source: http://goo.gl/BDF10n

http://goo.gl/JhEuzK

To better understand the importance of brand-origin preferences in the path to purchase, the Nielsen Global Brand-Origin Survey polled more than 30,000 online respondents in 61 countries and examined whether consumers prefer goods produced by global/multinational brands or by local players. 46% on average say brand origin is as important as nine other purchasing drivers, including selection/choice, price, function and quality. And 28% on average say brand origin is more important than other selection factors.

The 'made in' moniker really matters around the world

Source: http://goo.gl/5gUoZz

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The presence of a mobile version of the site increases conversion by 14% Results of collaborative study of Google and Calltouch in 20 sectors of business shows, that just the fact of having a mobile version of site increases the conversion from 1.64% to 1.87%

http://goo.gl/lSp5Vn

http://goo.gl/5Q8KPS

http://goo.gl/fIUFDL

http://goo.gl/oXlL7G

Infographics: how women interact with brands online Based on the results of a new study of Influenster , brands need mobile and digital marketing, if they want to reach the women. For example, women are more willing to follow a brand in social media, if the posts include news about discounts and promotions (74%), reviews of new products (72%) and news about existing products and services (70%).

FMCG increases budgets for mobile Compared with the first quarter of 2015 the number of advertisers in Mobile has increased by 1.5 times and the volume of advertising has increased by 5 times. Among categories of advertisers, which are placed in Mobile, the most active in the first quarter was FMCG segment

YouTube: Online video brings up to 50% higher ROI, than TV advertising Google analyzed advertising campaigns in eight countries, noting that in 77% of cases “YouTube brings a greater return on investment than TV.” The study also observed that the investment in YouTube should be increased from two to six times.

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Why we should not target Millenials and Generation Z as a unique group of people An article argues not to use stereotypes about certain groups of people based only on their age. Identify the target audience as, for example, millenials is almost the same as saying that all the people are your target. It is best to define a subgroup that most accurately reflects your beliefs and passion as a brand.

http://goo.gl/HoU98c

http://goo.gl/fnFZWV

http://goo.gl/2lxmSP

http://goo.gl/0nAwW2

Generation Z: the future of Internet marketing In the next four years Generation Z will be more than 40% of the consumer market. According to CMG study they are well aware of the goals of Internet marketing and are not against it, but only as long as the brand speaks their language

89% of consumers want to interact with a virtual assistant According to the new study of Nuance Communications, most customers prefer, and even expects to communicate with companies. 89% of consumers want to interact with a virtual assistant to find information quickly, instead of spending time on search on the Internet.

How to notice the trend and make it a reality? One of the fifteen key trends of the year reported by Rohit Bhargava book “Non obvious” is adjusting to the mood. Today, many brands are learning to adjust the content and experience of its products to the mood of users, and probably soon it will be an equally important element of the experience such as the theme of the published material, demographic factors, or any other modern evaluation tools.

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

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Target

Media

Tools

Decision

Period

Summary

&

Results

KitKat: Subway Station Branding

Target

Media

Period

37

To engage audience to ‘break’ territory via story telling of fun time spending at the subway

Kiev Route Subway

December 2015 – January 2016

Branding the one of central stations of Kiev Route Subway – “Palats Sportu”. For more audience engaging – KitKat brand page at the Facebook.

KitKat branded the subway station where was showed how funny can be the time which audience spend at subway or to find out the shoe size. Also we launched the digital activation on KitKat page on the Facebook – take a selfie at the branded station and take a part of the prizes draw.

Geography – Kyiv Total OTS per campaign – 10 827 969 Estimated TA Reach – 30% CPT of campaign equivalent to TV Ads placement – 87 UAH.

Thank You!

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