Media Market: Montenegro 2015Dragan MarkesicDirect Media Montenegro

IZAZOV CONFERENCE 02/03/2016

Media Market: Montenegro 2015Dragan MarkesicDirect Media Montenegro

IZAZOV CONFERENCE 02/03/2016

1 InvestmentsMarket stabilization 2 Allocation

How do we invest?3 DigitalUtapped potential

4 StructureTop advertisers 5 Agencies

Together we’re stronger

6 ChallengesScience, then Art

2008 2009 2010 2011 2012 2013 2014 2015

12.512.0

Mill

ion

EUR

13.5

11.0 11.5 11.510.0 10.0

2015 – Market stabilization

Sour

ce: I

psos

Str

ateg

ic P

lus,

DM

est

imat

ion

12.313.4

10.8 11.4 11.310.0

AD spend YoY (%) – comparative analysisThe growth of digital media has raised the entire AD market in Europe – as opposed to the CEE market, and especially Montenegro

Source: IAB Europe, 2015

1.8% 3.0%

-5.0%

-13%

-1.6%

0.0%

-9.5%-13%

11.7% 11.4%13.8%

0%

Total Europe West Europe CEE markets Montenegro

Total market Market without digital Digital media

12.312.113.4

10.8 11.4 11.310.0 10.0

AD spend per capita (€) – comparative analysis

43.6

35.0 39.8

23.0

58.7 55.0

59.9

32.5

22.2

6.5 11.3 10.0 8.9

2.1 1.0 4.2

TV PRINT DIGITAL OTHER MEDIA

Total Europe West Europe CEE Markets Montenegro

Spending on digital media in WE is now exceeding all other for the first time

Montenegro as an underestimated market

Source: IAB Europe, 2015

43%46%

49%52%53%54%54%53%52%

24%22%19%

17%15%14%13%

13%13%

27%27%

26%24%

24%23%

22%22%

22%

5%4%

4%4%4%

4%5%

5%6%

2%3%4%5%6%7%7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

200720082009201020112012201320142015

TV PRINT OOH RADIO DIGITAL

Source : Ipsos Strategic Plus, DM estimation

Media mix Montenegro

12.312.113.4

10.8 11.4 11.310.0 10.0

Media Mix Europe VS Montenegro

Source: IAB Europe, 2015

32%

29%

26%

7%5% 1%

TV

DIGITAL

PRINT

OOH

RADIO

CINEMA

52%

7%

13%

22%

6%TV

DIGITAL

PRINT

OOH

RADIO

Source: Ipsos Strategic Plus, DM estimation

Europe Montenegro

Digital in Montenegro• The estimated Internet penetration is 67% at the end of 2015, while smartphone penetration is

around 50%.

• Regardless of the excellent premises, investments in digital media in 2015 experienced nosignificant growth. The main cause is the lack of appeal of the total market, as well as the lack ofinterest among clients for these communication channels only.

• When digital channels are observed individually, one conclusion is that the main drop in interestis experienced in standard display advertising, while rich media formats, pre-roll video, socialmedia, and mobile advertising are on the rise. GDN is becoming the main competitor of localwebsites in display advertising, achieving significant growth of investments – CPM for thiscommunication channel is significantly cheaper than on local websites. More and more clients areturning to GDN and achieve identical results with lower investments.

• Telecommunication companies are the biggest advertisers in digital by far, followed by localfurniture stores, betting venues, banks…

Digital in Montenegro

95%

36%

31%

38%

37%

33%

56%

50%

27%

30%

32%

5%

8%

19%

35%

33%

35%

0% 20% 40% 60% 80% 100%

2011

2012

2013

2014

2015

2016 EST

Tenancy

CPM

CPC

BUYING MODEL – estimate based on the net investment

Digital in Montenegro

94%

93%

82%

77%

75%

68%

5%

8%

10%

13%

6%

7%

12%

15%

13%

15%

1%

2%

4%

0% 20% 40% 60% 80% 100%

2011

2012

2013

2014

2015

2016 EST

Desktop

Mobile

Social

Video

SPENDING BY CHANNELS – based on the net investment

Digital in Montenegro

100%

92%

88%

75%

67%

60%

8%

12%

25%

33%

40%

0% 20% 40% 60% 80% 100%

2011

2012

2013

2014

2015

2016 EST

Rich

Standard

SPENDING BY FORMATS – based on the net investment

Digital in Montenegro

97%

93%

93%

82%

54%

50%

3%

4%

5%

16%

42%

46%

2%

2%

2%

3%

4%

0% 20% 40% 60% 80% 100%

2011

2012

2013

2014

2015

2016 EST

Desktop

Mobile

Tablet

VISITS BY DEVICES – based on the impressions on the most popular local website

Top categories – total market net estimation (%)TELECOMMUNICATIONS≈ 26%

FMCG ≈ 22%

RETAIL ≈ 15%

BANKING AND INSURANCE≈ 12%

Agencies

Media

• Direct media• Universal

media/• McCann• Media

Level/• Media • Publikum/

Cremaco• Grey• Worldvide

PR

• MAMA• Represent

Communications

• PRISMA

Full service

• MAPA• Trust• New

Moment• Gondor

BTL

• Yellow• events

Digital

• Amplitudo• Fleka

Challenges 2016

Using technologies:implementing programmatic buying, further development of measuring media in Montenegro, precise data = benefits for clients

Augmenting the market:small countries, client requirements, small budgets

Science and Art:data are primary, as well as constant innovations by the agencies themselves; implementing global trends

Copyright © Direct Media 2014 All rights reserved. This document is protected by international copyright law and may not be reprinted,reproduced, copied or utilized in whole or in Part by any means including electronic, mechanical, or other means without the prior writtenconsent of Direct Media

Copyright © Direct Media 2016. All rights reserved. This document is protected by international copyright law and may not be reprinted,reproduced, copied or utilized in whole or in Part by any means including electronic, mechanical, or other means without the prior writtenconsent of Direct Media