MFB 2019

In 2018 Television continued to be the backbone of the vast majority of the CEE media markets, as it still dominates the media consumption habits of local population. It keeps its place of most impactful touchpoint on brand performance such as awareness and recall. Still, year over year, TV is marginally losing budget shares in favor of Digital, driven by an increasing internet usage and by the very dynamic growth of “smart technology” ownership

The effect of consumer spending increase in 2018 is clearly reflected in a very dynamic growth of the media advertising expenditure in most of the CEE countries and an overall regional growth of 6% vs. 2017.

Despite a slowdown in global growth which reduced the demand for EU products abroad, EU growth is projected to keep solid but remain low and, with aging populations and slow-moving investment, to become increasingly dependent on productivity growth. The uncertainty concerning the Brexit agreement negotiations is also putting a strain on the European economy. The pronounced economic weakness in the Eurozone impacts directly the CEE economic growth which is expected to slow further in 2019, but it should remain healthy. Despite being more moderate, consumer spending will continue to expand, supported by strong salary growth and tight labor markets.

CEE countries are expecting to see a further growth of the net media budgets in their local markets, although overall, the region will grow at a slightly lower pace (4% vs. 6% in 2018). The increase will be driven by two main factors: the consumer spending which will continue to expand due to the constant salary growth and the significant media cost inflation pressure coming mostly from TV, generated by the increasingly higher air time demand and a limited inventory.

In 2018 the Romanian Media market consolidated its growing trend, reaching €454 Mio by the end of the year (+10% vs. 2017). TV investments increased by 10% vs. 2017, from €273 Mio to €300 Mio. Digital increased from €73 Mio to €85 Mio (+16% vs. 2017), Radio reached €26 Mio from €23 Mio (+10% vs. 2017), OOH went up to €31 Mio from €29 Mio, while Print dropped by 5% vs. 2017.

Initiative’s forecast for 2019 is that the media market will continue its up-trend, and is expected to grow by 7% vs. 2018, reaching €485 Mio by the end of 2019.

In 2018 Television continued its uptrend, reaching the level of 300 Mio EUR (+10% vs. 2017). Regarding the sold inventory, the TV market was stable vs. 2017 both in terms of sold GRPs and sold minutes. 2018 the top 3 TV stations ranking was the same as in 2017.

The TV market increase trend will carry on this year, but in a slower pace, around 5% in terms of revenues. TTV is expected to continue its erosion, along with a lower inventory sold than previous year.
Taking into account the Elections, a small increase in TV spending in the months of interest is expected.

Social networking and search remain the backbone of online activities. In addition to this, a strong majority of internet users (76%) have an increased appetite for video, which has become readily available as high-speed data networks expanded. Audio streaming also increased, and we expect to see a positive trend during the next years, as more streaming services become available. Email maintains a slowly decreasing trend. According to ANCOM, mobile internet traffic in Romania increased by 48% in the first half of 2018, compared to the same period of 2017, reaching a monthly average of 2.3 GB per person (total population). This evolution was driven by the expansion of 4G connections, which stood for almost half of all mobile data connections in Romania in the first semester of 2018. GDPR didn’t slow down either users’ time spent on digital, or advertisers to direct budgets to online, and for 2019 we expect an increase of 16% vs 2018, which will bring online ads to 99 mil euro. The local industry will make a big leap in online monitoring, by reporting via SATI (for the premium websites in Romania) persons instead of users, with the support of CXENSE (used as centralized local DMP).
In 2019 Shopping Ads are expected to launch in Romania, which will play an important role in the e-commerce media approach. Facebook increased focus on community groups, with a faster Messenger app, all while continuing to better secure privacy. We expect the fast growth of e-commerce to continue. GPeC and ARMO (The Romanian Online Shops Association) estimates that the Romanian e-commerce market may exceed the 5 billion € threshold during the next years.

The Radio market 2018 was very dynamic, as the market managed to sustain the previous year growing trend of 6% in total spend, up to 25.7 Mio Euro..
In 2018 the “at home” Radio listening is the most common habit among urban Romanians, although it reflects a decreasing trend, while “in the car” Radio consumption grew by 2pp compared to 2017, being supported by a more and more hectic urban car traffic. 2019 is expected to show a higher increase than the previous years (+10% vs 2018).

In 2018, the estimated Print advertising revenue was of 12.7 million Euro. Print editorial content continued to shift to digital platforms due to media consumption trends, contributing to the slight but continuous downtrend of print press readers. The readership declined was steeper from one measurement wave to another in 2018 compared to previous years. The dailies readers dropped by almost 8% from one wave to another, while weekly publications followed the same trend (-8%).

In 2019 a further drop of 5% is expected from the print market.

Market continued the growing trend started in 2017, so 2018 maintained the 5% increase up to 31 Mio Euro. The event of the year: in 2018, the OOH Company of the City Hall approved the Implementation Norms necessary for OOH law enforcement in Bucharest.
Apart from all the legislative measures, the OOH market continued its growth presenting the first year of inflation, since the 2008 crisis.

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