MFB 2017

The TV and Digital fight for dominance will continue across all media markets in the region, as TV is holding strong and Digital is the media channel with the most dynamic expansion, as mobile, social video and messaging apps will continue their developing trend.

As smartphone use is continuing its strong growth, and the CEE developing economies hold a huge potential, mobile advertising revenues are expected to boost, supported by the fact that the share of web traffic coming from mobile devices is growing rapidly.

The CEE economy is expected to boost in 2017, after a healthy 2.9% expansion in 2016. A solid domestic economy and improving activity in the Euro area should fuel faster growth of 3.1%. Tightening labour markets, loose monetary policy and fiscal measures are contributing to a consumption spree in the region, which is being reflected in retail sales and confidence data.

The positive economic forecast for the CEE region is expected to generate increasing consumers’ income and expenditures, and the local media markets expect to see a growth consolidation and significant size increase in 2017.

TV will continue to stay strong, as it still provides a cheap source of entertainment for the population and still a cost efficient media communications channel for advertisers in most of the CEE countries.

At the same time, Digital will continue to be the most dynamic advertising revenue driver.

As our job is related to marketing/advertising, we certainly need to better understand the Big Data Boom in order to harvest its benefits on behalf of the brands we take care of.

Usually, a marketer’s job doesn’t require extensive technical skills, as these are already covered by the digital specialists, but with all these opportunities related to data and all the available tools on the market, some of us might feel lost.

Why is data so important, which are the best platforms and their main features, which of them are available in Romania, and how to take up the challenge of developing a data working plan, are some of the topics we tried to cover in this MFB edition.

2015 and 2016 were peak years for the media market investment over the last years, the evolution being meant to confirm the return to a stable growth.

In 2016 the total market consolidated its upward trend by growing much more than the early predictions: 10% vs. 2015, up to 366 Mio Euro and it’s expected to keep the same growing rate in 2017, reaching 403 Mio Euro (+10% vs. 2016).

TV kept leadership and drove the total market growth with +13% vs. 2015, from 212 Mio Euro to 240 Mio Euro, reflecting the biggest increase since 2009. Besides TV, other media channels were also on increasing trend: Online, from 57 Mio Euro to 64 Mio Euro (+12% vs. 2015) and Radio, from 19 Mio Euro to 20 Mio Euro (+5% vs. 2015). OOH kept a flat level at 28 Mio Euro, while Print was the only medium to drop, from 16 Mio Euro to 14 Mio Euro (-10% vs. 2015).

Since 2014, Televison is back on growing trend, consolidating its leadership. If in 2015 TV lead with over 60% of total net media investment, in 2016 the growth was even more significant, +13%, reaching the level of 240 Mio EUR.

The number of monitored channels remained stable during the last years (59 in 2014, 60 in 2015 and 60 in 2017), digital cable continued the increasing trend in 2016 reaching 24.7% of the households with TV set, while all other reception types dropped slightly compared to 2015.

The average commercial rating decrease of 4% (18-49, urban, 07:00-26:00) and the boost of TV spending led faster to high sell out rates, leaving the channels without any available inventory.

Thus, throughout the entire year the stations tried to cope with Prime Time sold out situation that finally pushed the whole market to an unprecedented loading level for all day of over 90%.

In terms of advertising revenues, CME kept leading position with 49%, followed by Antena Group with 26%, Dogan Media with 10%, and Prima Broadcasting Group with 2.5%.

In 2016 the total TV market inventory grew by 5% in terms of sold 18-49 GRP’s and the avg. CPP showed 8% inflation vs. 2015.

Nobody can stop the unstoppable: advanced targeting mixed with high inventory generated by lots of time spent online by a growing number of people, all powered by mobile: the unique “always on” media channel.

This year, what the digital enthusiasts have predicted long time ago happened: 2016 was the 1st year when online advertising surpassed TV in Europe.

For the last 15 years, all big players have spectacularly been moving to different niches – e.g. Google has been stepping further with enhanced services for E-commerce and Facebook has capitalized on the video direction while also keeping an eye on e-commerce with Marketplace launching.

Romania still lags behind and will take a while before digital will over(in)come TV. Nevertheless, the shift towards digital is significant and 2016 marked a premiere for the local market: 1st year when SMS messages decreased due to the growing use of mobile internet.

Local and international market overview, including major players’ moves, an estimation of video spent by Romanian advertisers, the Adblocking local status, are just few of the 2016 hot topics covered by this MFB edition.

2016 proved to be a good year for Radio, as the market managed to maintain the growing trend registered in the previous year +5%, the total spend being of 20 Mio Euro.

The radio daily reach was stable in 2016 at urban level, proving a strong listeners loyalty. On the other hand, Bucharest registered a higher daily performance.

The Radio channels audience performance reconfirmed Radio ZU as the leader in Bucharest with 15.7% average rating and Kiss FM as the leader at urban level, with 13.8%.

The print editorial content continued to shift to digital, generating a permanent drop of the print market which reached in 2016 an estimated net of 14 Mio Euro.

The readership declined was steeper from one measurement wave to another in 2016 compared to previous years. The readers and advertisers decreasing interest had a strong impact in the significant circulation.

In terms of gross (rate card) advertising revenues, Ringier consolidates its first position followed by Adevarul Holding, Mediafax and Burda.

Starting January 2016 the local advertising tax is applicable to the total OOH advertising cost except production, and from 21st of March the tax had to be paid by the exposure beneficiary directly to the local authorities of each and every locality. IAA took a firm position and managed to create the possibility for the advertisers to commission the payment of this tax to their agency or OOH provider. Then, the law readjusted and the tax was to be paid by the first contractor of the main client.

Despite the rather uncertain context related to the legal environment market, OOH market registered a flat growth in 2016, with an estimated total spent of 28 Mio Euro.

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