CIS: Azerbaijan, Armenia, Georgia - Sergey Rogovsky 2015
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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 100
growth during previous 3 years
1-5% yearly. Media market is
90
growing step by step. 80
70 6 7
• TV media inflation 2014 60 5
5
6
6 6
according to agency estimations 3
4 6
12
12 12
was 0-10% depending on TV
50 5
5 11 3 3
2 3
11
channel 40 5 9 3
8 3
3
30 3
• Digital media is the most rapidly 43 46 46
developing: Internet penetration
20 38
32 34
28
exceeded 70% of HH in cities 10
with 40k+ population. 80% of 0
2009 2010 2011 2012 2013 2014 2015 F
users use internet regularly
• Forecast for 2015 is stagnation
of media market except Internet
TV Print OOH Radio Internet
advertising
*Source: There are not appropriate market researches at the market by “net” marketing spends therefore we
apply agency estimation.
© 2015. Proprietary and confidential. | p. 4
1 | Market overview
CPT Comparison by Media:
120 2014
100
80
CPT 80
70
AZN, net/net
60 60
50 41 40
40 20
30 0
20
busses
monthly
editions
editions
editions
billboards
9
subway
Radio
listen
Internet
weekly
watch TV
be in
use
daily
4
read
read
use
read
10 3 2
0
Internet
Print
Radio
TV
OOH
• 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
January, 1999 SIAR diary panel appeared (TV measurement system
Only TV established by BMRB) - among Azerbaijan advertising agencies AA&M
Monitoring bases Advertising Media Department became first subscriber. Since January
and TV viewing
data are available
2006 SIAR launched own TV viewing measurement system together with
since 2001 till CESP and MARKDATA
2005
January, 2000 SIAR starts to measure Radio (diary panel), Press
monitoring
January, 2007 SIAR starts monitoring of OOH
AGB
January, 2005 AGB people metric panel appeared at the market.
TV Monitoring AA&M Media Department became one of the first subscribers
bases and TV March, 2012 AGB starts Radio monitoring
viewing data are
available since
2005 till now
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 VIA
31% of ad revenue 20% of ad revenue 5% of ad revenue
30% WRP inventory 20% WRP inventory 6% WRP inventory
SPACE XEZER Ictimai TV Teleport
14% of ad revenue 27% of ad revenue
3% of ad revenue
16% WRP inventory 25% WRP inventory
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
© 2015. Proprietary and confidential.| p. 7
Source: AGB Azerbaijan , All 18+
| Market overview
2014: Top 20 advertisers
Top 20 advertisers make 51% of all
Thou. GRP 30‖ 18+ media market
Position GRP30‖ in
Other
200
+20% 2013 and growth 24%
180 1 20/11
trend 2014 vs Pharma
Hygiene
160 2013 5%
19%
Soft drinks
140 9%
-8%
120 2
-7%
100 -17% Confectiona Communica
4 3
+23%
-10% ry tion
80 7 -22% 14%
HHC 17%
5 12%
+47% -24%
60 6 -4% +54% +96% +5% -2% +27%
12 13 +59% -31% +19% -1% -17%
40 9 18 23 11 16 20 22 10 21 16 14
20
0
HAYAT QRUPU
SCHWARZKOPF
MARS&WRIGLEY
AZERFON
AZERSUN
COCA - COLA
BAKCELL
PALMOLIVE
ETI
KRAFT FOODS
PEPSI-COLA
LOREAL/NESTLE
DELL'ORO
TV SHOP
GSK
SOLITON
UNILEVER
PROCTER &
BERLIN-CHEMIE
BENCKISER
HOLDING
COLGATE -
GAMBLE
RECKITT
& HENKEL
Mobile operators *all channels with
sponsorship but without
| p. 8
Source: AGB; TA – 18+ TV banners
| 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)
Other +14%
Insurance
2014 y 2013 y
Food
Education
Construction materials Total radio market 2014 :
Construction and Repair 39 902 801 AZN total budget (+21%)
539 761 insertions and (+11%)
Communication
12 280 112 seconds duration (+10%)
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 Project Zodiak
4. Impeks - 50 Impeks JC Decaux
AB Global
5. AB Global - 60 ART Media
AzReklam
6. AzReklam - 100
7. Q.Qelem - 30
8. Project - 20
9. Zodiak – 20
RMM Groupe
10. JC Decaux - 20
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
Non standard wall
Billboards – standard
constructions
construction 3x6.
Trivision – standard
size 3x6. Three
advertising places Non standard roof
change each other constructions
during intervals 15-30
sec. Often is breaking
Lightbox – new
format of advertising
in Baku. Premium
format size 3x4. Three Street Light box 1.2x1.8
advertising places
change each other
during intervals 15-30
sec.
© 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
4 699
1800 3 689
2 445
900
1 500
829 male female
0
2007 2008 2009 2010 2011 2012 2013
Source: Internet world statistic and Wikipedia © 2015. Proprietary and confidential. | p. 17| Market overview
Digital Trends
Top Internet sites List of popular Internet resources
Google
day.az – news portal
o Due to absence of independent monitoring in Internet we video.az – entertainment resource
mail.ru – mail server
use agency estimations in this report facebook.com – social network
big.az – entertainment resource
o Mail.ru is the most popular mail server open.az – entertainment resource
odnoklassniki.ru – social network
o Day.az, 1News, Lent.az, Oxu.az, Trend.az, Milli.az, APA.az turbo.az – automobile portal
are popular news portals 1news.az – news portal
navigator.az
o Facebook.com and Odnoklassniki are the most popular trend.az– news portal
social networks oxu.az – news portal
myvideo.az – entertainment resource
o Video.az, Open.az, Big.az and Enter.az are popular axsam.az – news portal
entertainment resources qafqazinfo.az – news portal
qadinlar.biz – female portal
o Navigator is online Yellow Pages in Azerbaijan disput.az – forum
milli.az – news portal
o Turbo.az is most popular auto site lent.az – news portal
vesti.az – news portal
anspress.com – news portal
qadin.net – female portal
gun.az – news portal
azxeber.com – news portal
o Video content is possible to place in google partners auto.az – automobile portal
network azadqadin.az – female portal
apa.az – news portal
o Also we have several popular azeri video portals: Video.az, avtomobil.az – automobile portal
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 © 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.
Price per unit per Sale CPT
Magazine Type of placement month AZN Coverage coeffitient forecasted
OK Full page inside 1500 7000 90% 40
Boutique Full page inside 2380 5000 50% 159
Nargiz Full page inside 2500 5000 70% 119
L'Officiel Full page inside 3500 5000 50% 233
Azerbaijan woman Full page inside 4000 10000 30% 222
Baku Full page inside 8000 50000 60% 44
Aysel Full page inside 891 5000 50% 59
AATV Magazin Full page inside 779 8000 30% 54
Cosmopoliten Full page inside 1600 7000 20% 190
Insertion into local Mag Full page inside 0,15 25
Insertion into foreign Mag Full page inside 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. 21INSIGHTS • IDEAS • RESULTS
Armenia
| p.|
Armenia People
Total Population (2014): 3 015 400
Urban / Rural population (2011): 64.1% / 35.9%
65+
Male/Female: 48.5%/51.5%
Median age: 34 years 55-64
Ethnic groups:
Armenian 98.1% 25-54
Yezidi (Kurd) 1.2%
Others 0.7% 15-24
Religions:
0-14
̵ Christian 94.8 %
̵ Yazidism 0.8% 700 600 500 400 300 200 100 0 0 100 200 300 400 500 600 700
̵ 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
© 2012. Proprietary and confidential. | p. 23
Source: National Statistic Service of Armenia2|
Yerevan is the most populated city
79% of population of working and solvency age
Age 65 + Age 0-14
Vanadzor Avobyan Kapan
11% 19%
6% 3% 3%
Gyumri Age 55-64
9% 12%
Age 15-24
15%
Yerevan
Age 25-54
79%
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 34 36 33 46 54 57
+17.4% +10%
60
2
50 +39.8% 2 8
+5.8% 7 1
3
+14% -8.6% 1
2
40 6
1
2
30 5 5
1
5 1
0 6
1
0 1 44
20 42
35
22 27 28 23
10
0
2009 2010 2011 2012 2013 2014 2015 FC
TV Digital Print OOH Radio
Average market inflation (rate-cards)
Total Media +38% +19% +26% +14% +18% +18% +10%
TV +45% +22% +30% +15% +20% +20% +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
Print is the most expensive media in
TV $2,52
terms of CPT, because it has the
lowest coverage and OTS.
Internet is cheaper in terms of CPT
OOH $2,04 because the low prices on
advertisement and high level of
coverage.
Internet $0,49 CPT are calculated based on agency
estimation for 2014 prices.
Radio $2,31
Print $40,72
© 2015. Proprietary and confidential. | p. 27|
Main Media trends and facts
TV OOH
The only measured media Shift from large formats to city-formats
(seniors, light boxes and etc.)
Buying by GRPs from April 2013 in 4 channels of 1
Sales House (MIS) Reduction of standard BB formats
H1 national channel – direct advertising ban from High clutter in the capital and weak presence
Jan 2014 in the regions.
New channel in Sales House structure (Erkir More non-standard formats
Media which has almost 2.5-3% TV viewing share). It Development of transport advertising
will cause some changes in the discount systems for
sales house (exclusivity discount, package discount)
Strong alcoholic beverages (vodka) are allowed on Radio
TV from Aug 2014
TV viewing decrease can be resulted by the
following factors: Radio has started to be monitored by Aug
1. changes in the audience mode of life; 2014
2. growth of digital; More Integrated non-standard placement
3. increase of cable TV
Currently has a small coverage only In
High clatter resulted lack of qualitative inventory and Yerevan and some surroundings, FC coverage
sold-out factor by the end of the year increase in the regions
Long-term planning benefits allows to get better Budgets are declining => giving up to
conditions and more qualitative placement Internet.
Source: Agency evaluation © 2015. Proprietary and confidential. | p. 28|
Main Media trends and facts
Internet Print
70% of coverage in the country Budgets are declining => giving up to
Sharp growth of the ad. Budget Internet
Mobile internet usage development Product Placement is used in the Category of
―Hygienic Care Products‖.
More PR and announces rather than modules.
Distribution oriented rather than selling
(Magazines)
© 2015. Proprietary and confidential. | p. 29|
TV Sales Houses structure
Media International Independent National channel with
Service (The Only SH) only sponsorship
TV Market Share(wGRPs18- 83% vs. 66% 17% vs. 17% 0% vs. 17%
65),
2014 1-12’ vs. 2013 1-12’
TV Viewing Share 61% vs. 57% 24% vs. 21% 15% vs. 22%
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
100
Shant TV & H1
Other ch
17 16 15 15 15 H3
90 21 19 20 19 20 20 19 21 20
23 23 24 22 23
27
0,4 0,5 MIR
0,4 0,5 1,4 1,6 1,4
80 0,4 1,4 1,6 1,5 1,9 1,5 0,6 0,7 1,0 1,1
0,4 1,1 0,4 2,0 1,8 1,7 2,4 1,8 1,8 0,9
0,4 0,3 0,4 1,9 1,4 1,7 1,7 2,2 1,6 2,0 1,9 0,9 Dar21
0,5 0,4 1,3 1,1 2,0 1,8 1,6 1,5 2,0 2,1 1,7 1,5 1,6 1,5
2,7 1,5 1,3 1,6 1,3 1,4 1,3 2,1 1,9 2,1 2,3 1,5 1,4
1,1
3,2 0,8 2,6 0,4 1,2 0,6
1,3 1,5 1,9 3,81 3,67 2,2 2,5 2,3 2,1
0,6 1,9 0,7 2,1 0,6
1,4 1,9 2,2 3,0
70 2,5 1,5 1,8
0,5
1,1
0,6
1,5 2,0 2,6 2,6 2,8 2,2 Shoghakat TV
3,78 2,9 2,9 1,9 2,0
4,46
6,76 6,47 5,03 5,51 5,87 6,80 5,42 Lime TV
5,14 5,42
60 8,31 8,58 8,22 8,40 5,24
9,26 5,36 4,81 4,61 AR
5,42 5,01
50 20,8 19,6 19,3 20,6 19,9
23,9 9,8 Armnews
25,0 25,4 24,1 18,9 12,1 13,4
22,3 11,8 12,2
15,2 22,8 23,2 24,7 Erkir Media
40
Kentron
15,6 16,7 16,0 19,4
15,1 16,3 18,5 16,3 17,5 18,9
30 15,7 11,3 13,4 12,5 15,2 ATV
8,0 11,5
13,4 10,4 9,7
20 H2
25,7 H1
24,0 23,5 23,0 24,4 25,4 24,7 23,1 22,9 24,1
10 20,7 19,8 21,1 20,7 22,1 22,4 22,3 22,0 21,9 21,6
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%
10 15% 20%
8 10% 15%
7% 7% 8%
10%
6 5%
-5%
4 -9% 0%
-5%
2
6 5 5 5 6 6 7 8 -10%
0 -15%
2008 2009 2010 2011 2012 2013 2014 2015 F
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 50%
0,6 40%
0,5 30%
0,4 -3% 3% 20%
0,3 0% 3% 3% 3% 3% 10%
0,2 0,60 0,58 0,60 0,62 0,64 0,66 0,68 0%
0,1 -10%
2009 2010 2011 2012 2013 2014 2015 FC
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 non-
standard 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%
5
44% 50%
4 40%
22% 30%
3 9% 11% 20%
5% 3%
2 0% -9% 10%
0%
1
1 1 1 2 2 2 2 2 -10%
0 -20%
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|
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 Shirak Lori
90 4.1% Tavush
2.8% 1.8%
80
70 56,9 Kotayk
60 3.9%
Aragacotn
50 39,2 2.8% Yerevan Gegharkuni
40 32 71.6% k
30 25 Armavir 2.8%
20 15,3 3.7%
Ararat
10 3.3% Vayoc Dzor
0 1.3%
2009 2010 2011 2012 2013
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%
5 113% 150%
130%
4 110%
84%
3 90%
44% 70%
2 50%
17% 25%
1 0% 7% 30%
0 0 1 1 2 2 3 10%
0 -10%
2009 2010 2011 2012 2013 2014 2015 FC
70% of coverage in the country
Sharp growth of the ad. Budget
Mobile internet usage development
Source: Agency estimation © 2015. Proprietary and confidential. | p. 39INSIGHTS • 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
© 2015. Proprietary and confidential. | p. 41
• Export of energetic recourses
Source: Department of Statistics of Georgia; 2013| Country General Info
Research Tools
Monitoring by Panel representative
Medium Statistics Data
(institute) for
Period, Channel,
Budget, GRP,
program, Advertiser,
Insertions, Affinity,
National and Cable TV AGB Nilsen Georgia Category, Brand, TVC Georgia
Reach, Share, Contacts
name, TVC length, TVC
number
position
Digital no monitoring
Budget, Insertions, Period, Edition,
IPM Monitoring / IPM GRP, TRP, Affinity, Advertiser, Category,
Press Big cities
Adex OTS, Reach, frequency Brand, Position, Format
of contacts of issue, Description
Period, Station,
IPM Monitoring / IPM Program, Advertiser,
Radio Budget, Insertions Big cities
Adex Brand, Jingle name,
Length, Position
Period, Location,
IPM Monitoring / IPM Budget, GRP, OTS,
Outdoor advertiser, Category, Tbilisi
Adex Reach
Brand, Format
• 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 45,6 52,5 54,0 55,1 57,2
60
9%
8% 8%
50 7% 11% Radio
8% 10% 10%
5% 5% 5% 5%
9% 6% 3% 3%
Mln USD, incl.VAT
40 2% 2%
OOH
8%
2%
30 Print
20 77% 75% 74% 73%
77% Digital
10
TV
0
2010 2011 2012 2013 2014F
Media market growth 15% 3% 2% 4%
TV market growth 15% 1% 1% 1.5%
TV price Average inflation 0% 0% 12%
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 Sales House
Sellers Inter Media
Kavkasia Maestro
Imedi
Rustavi 2
Comedy Channel
Tabula TV
Public 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% The most popular construction types in Tbilisi
of the whole advertising market; Roof Top
Backlit
35%
Forecast growth by 18% in 2014; Pillar
4%
Approximately 94% of OOH market is divided 3%
Billboard
between two big companies and other 6% is 18%
Street Sign
owned by smaller ones 3%
Basically it includes traditional types of Overpass
advertising – standard banners; Billboard
Lamppost Sign Light box
4% Bus Shelter
OOH constructions: Accordingly to IPM other 5%
10% 11%
Monitoring, two main types of outdoor 3% Wall Murals
4%
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
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
Video portal Web casino Portal
News portal Movies portal
Palitra TV-Radio
Web – site portal
Weather portal News portal
Information portal Web sites recource
Source: eparticipationge.wordpress.com; agency estimation | p. 49INSIGHTS • IDEAS • RESULTS
Thank you!
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