MFB 2015

The continuous dynamics between TV and Digital remained the common denominator of the media landscapes throughout the whole region. Yet, with the continuously shifting audiences and consumption habits, media planning is more and more based on a systemic approach in which every medium has a specific value and contribution to the final result.

The Analysis

The rankings by total population are not the same as the ones by gross domestic products. The more western-localized countries like Czech Republic, Slovakia or Slovenia have a higher economic output, than the eastern-localized ones. Also, Poland, the highest populated CEE country, capitalized its historical and social heritage and delivered the 2nd highest GDP per capita in the region, while Romania, despite being the 2nd highest populated in the region, continues to have low GDP growth rate

2014 reflected a total market slight increase (+3% vs. 2013), after several years of continuous decrease and is expected to have the same trend in 2015.

The total market reflected a decreasing trend starting 2009, when all media lost investment except for online.

In 2014 TV increased by 3% vs. 2013, OOH remained stable , radio kept the investment levels (0% vs. 2013), online was the only medium with major growth (+10% vs. 2013), while print dropped massively (-10% vs. 2013).

In 2014, Television remained the leading media channel used by marketers, being highly preferred not only by big advertisers but also by smaller inverstors. The TV market went through some major changes, marked by CME management change and new Intact Group programs grid , which imported a large part of the shows and VIP’s from Pro TV. Prima TV also changed owners, from Pro Sieben to Cristian Burci, who also owns Adevarul Holding.

The fact that TV is still the most important media channel can also be seen by the high number of monitored channels: 59 in 2014 (same in 2013), with minor changes such as GSP TV becoming ZU TV, Antena 2 being re-named Antena Stars, Diva Universal named simply Diva, PV TV named Fishing & Hunting Channel. Two channels entered the monitoring system, Digi 24 and Look TV, while Sport1 and VH1 dropped out.

Reception via Cable (Digital and Analogue) continued to increase in 2014, while Direct-to-home (DTH) slightly decreased vs. 2013.

The main strengths of digital are related to its reach and efficiency. More than this, as none of us can imagine the future without internet, it also has an aura of “the present and the next thing”, that contributes to its continuous growth. In a nutshell, 2014 had a similar dynamic.

From a global perspective, the big players all try to keep up with the fast changes pace and test different approaches, no matter the needed investments. We saw it in 2014 through Facebook’s WhatsApp acquisition, or Google’s purchasing of Nest Labs with $3.2 billion –which from a media perspective can mean a better understanding of people’s behavior for Google by expanding its reach into areas not dependable on a PC or mobile device, but in the physical world as well.

Discussing strictly about advertising, 2014 meant for Facebook a big focus on video (November 2014 being the first month when Facebook’s uploaded videos surpassed Youtube), launch of website custom audiences, decreasing (once more..) pages’ organic reach or closing the like (fan’s) gate, all of them playing important roles on day to day digital advertising work and also on the overall digital strategy. Same 2014 brought to Romanian advertisers the option to use Gmail Sponsored Promotion – which proved to deliver great results in test campaigns.

Year of the mobile in 2014? Again?

We have been hearing this affirmation since 2012. Somehow we are all under the feeling that this is the year we have all been waiting for, not being able to pinpoint exactly what is that everybody is waiting for.

But shouldn’t we be talking about the “time of the mobile” instead? While we work on making mobile marketing mainstream, new words already make it to the urban dictionary: “Nomophobia” - the fear of being out of mobile phone contact.

It is estimated that in January 2015 the number of global smartphones internet connections reached over 2.7 billion. Mobile devices continue to demand their rightful place in our lives and shape our everyday behaviors.

In 2014, the Radio market was stable in terms of advertising investments, while Radio networks strived to consolidate market shares through marketing campaigns, events and integrated media packages with social media.

The Radio market structure covered a wide range of audience profiles and preferences, with the highest market share on Contemporary Hit Radio (41% / urban 11+), followed by Adult Contemporary (33.2% / urban 11+).

In 2014, the Print industry continued to be affected by the collapse of the distribution networks, their insolvency leaving the publishers with large amounts of account receivables.

Additionally, the continuous content duplication with the online versions resulted in further reduction of print buyers.

Publishers continued their marketing strategy based on frequent inserts of books, DVD’s, cosmetics sachets, but the approach was not successful, as it resulted in very low sold circulation for the issues without insert.

As a consequence, more and more clients reduced or cut their media investments in Print. To defend their advertising revenues and market shares, publishers pushed more for integrated media exposure packages (print - online, print – online - event), and released more supplements tailored to specific events: exams for various education levels, elections, National Day, seasonal holidays etc.

Unlike the previous years, 2014 didn’t bring any significant changes to the OOH market. Depending on the perspective, the market structure seemed to either build continuity, or be gripped in a status quo. For the first time in many years, everyone had a solid certainty: they could rely on the fact that no new legislation is going to be approved. Starting from this real fact, the networks had a steady growth especially in Bucharest, Euromedia being a good example for it with an estimate of 80 new backlit locations. Affichage kept its ground. Unexpectedly, the independent investors were the ones to profit the most of this allowance period / political amnesty.

More than ever, the increasing media fragmentation and the pressure of smaller available budgets on the market, have determined an unprecedented push for additional discounts.

Distinct from the last years evolution, 2014 didn’t registered any decrease in the overall financial investments.

Although commercial clients had a few percent less than 2013, the European and Presidential Elections, as well as the rebranding of Cosmote into Telekom, succeeded in filling in the gap and closing the year with a flat growth as for 2013 budgets.

Also, as well as last year, Retail players kept growing their networks

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