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  1. 1. mediaeconomyfactstrategydigital bookradiospecialists reachtelevision pressperformanceinternet romaniadigital planningbuying audiencespecialists 2011reach affinitycreativity publicrelations radiostrategy presstelevision mobile
  2. 2. media fact book ROMANIA 2011
  3. 3. g buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy ecoance specialists strategy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience rea media fact book mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performanceatl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television insts strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affidigital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specials performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning bu This document is a product of Initiative Media Romania. In putting together the Media Fact Book we have used audience data and information supplied by The Romanian Association for Audience Measurement (ARMA), The Romanian Audit Bureau of Circulation (BRAT), The Romanian Association for Radio Audience Measurement (ARA), TNS Research, AlfaCont, GfK Romania, Mercury Research, IMAS, International Advertising Association (IAA), International Advertising Bureau (IAB), PriceWaterhouseCoopers, International Telecommunication Union, Business Monitor International, ANCOM, alexa.com, The National Centre of Cinematography (NCC), The National Institute of Statistics (INSSE), National Prognosis Committee (CNP), EuroStat, TrendOne and The National Bank of Romania (BNR). Acknowledgements to the following members of the team who significantly contributed to this book: Octavian Popescu, Steve Dallas, Alexandra Olteanu, Iuliana Stere, Rodica Caraghina, Marcela Tuila, Ruxandra Stan, Ruxandra Stefan, Cristina Chinde, Razvan Simionescu, Ersilia Baragan, Maruan Trascu Special contributor: Lucian Croitoru © INITIATIVE MEDIA S.A, Bucharest, 2011 All rights reserved This publication is protected by copyright. No parts of this book may be reproduced without the prior written consent of the copyright owner. Readers should understand that the data contained in the Media Fact Book is as actual and accurate as the sources could provide. Your comments and suggestions are welcome as a valuable input for the future editions of this book. 4 www.mediafactbook.roance specialists strategy economy radio television internet press digital planning buying audience reach affinity creativity public relations performance specialists strategy radio press television internet mobile digital planning buying audience reach affinity atl blanning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists stray public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile dig
  4. 4. onomy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio television internet press digital planning buying audience reach affinity creativity public rach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press te media fact book specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audiencnternet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations perfofinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television lists strategy economy radio television internet press digital planning buying audience reach affinity creativity public relations performance specialists strategy radio press television internet mobile digital planning buying audience reach affinity atl btl creativituying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy econom Editor’s Foreword................................................................... 6 About Initiative........................................................................ 7 About Brand Connection........................................................ 8 Economic Landscape............................................................. 9 Media Market. ...................................................................... 11 . Media Research................................................................... 15 Media Consumption Trends................................................. 18 Television. ............................................................................ 19 . Digital Media. ....................................................................... 26 . Radio.................................................................................... 35 Press.................................................................................... 41 Outdoor & Indoor.................................................................. 48 Cinema................................................................................. 52 Creative Media Usage.......................................................... 55 Integrated Communication Services.................................... 58 Media Dictionary. ................................................................. 62 . 5 www.mediafactbook.robtl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television interneategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinigital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists s
  5. 5. ning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy rformance specialists strategy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audie media fact bookon internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations perfoffinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television sts strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach abile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specis performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning bu editor’s foreword Octavian Popescu Group Vicepresident & COO 2010 proved to be another difficult year for the Romanian advertising industry & also the wider Romanian economy. We estimate that the advertising spend in 2010 totaled €316m, meaning that we are back to a level last seen 5 years ago. Despite some hope that the 2nd half of the year would show some growth this did not happen and advertising spend dropped by 9% across the whole year. On a more positive note, with the Romanian economy expected to grow in the second half of 2011, & with some positive indicators seen already since Q4 2010, there is hope for the beginning of an economic recovery, this is a view supported by our guest contributor, Mr. Lucian Croitoru, Senior Adviser to the Governor of the National Bank of Romania, who we have invited to give some expert opinion on the present economic outlook for Romania, you can read his views in Chapter 5, Economic Landscape. As the advertising industry is usually one of the first industries to grow after a recession, we should be positive that we may see a more positive trend in the second half of 2011. The decline in the advertising market in 2010 affected all offline media, however the growth in online advertising (by more than 30%) meant that this was the year when online really cemented its place as a key medium for clients, and with that growth trend continuing in 2011 online will become the 2nd largest media in terms of advertising spend. This has taken a little bit longer than in many other countries, but no longer do we see clients just using their ‘loose change’ for online campaigns after they have planned all their other media activity. At the same time the way internet advertising is used by clients is rapidly developing, it is no longer just about classic display advertising on websites. As the online market continues to develop and mature, the way people are using the internet is changing, this can be witnessed in the explosion of social media in Romania; Facebook now has over 3.2m Romanian users & the rate of growth shows no sign of slowing down. Also we are seeing huge growth in mobile internet usage, with traffic to some of the top mobile sites increasing by over 100% in the past 6 months. A consequence of this is that publishers have realized their business models need to change, the print market will never return to the way it was, but of course it also will not die as some people have suggested. But more & more titles have realized the importance of their online editions and are beginning to sell both versions together, not with their online version sold through a separate sales house. Despite some desperate attempts to support their printed editions with books & DVDs, it is the digital edition that is growing and not just on a PC, but on mobile versions of their sites, whether read on a smartphone or a tablet PC. Traffic to mobile versions of leading daily print titles has increased significantly in the past six months, and whilst still small will continue to grow and is another demonstration of the continued digital development in Romania. Despite the dynamic growth in online and digital advertising, Romania remains a media market dominated by Television. TV did not suffer as badly as some of the other traditional media in 2010, and increased its share of the overall revenue to 66%, but with so much choice in terms of the commercial stations available, combined with an increase in viewing and a further small fall in revenue expected this year, prices will remain under deflationary pressure for 2011. Overall our expectation is that the advertising market will decrease by a small percentage again this year, but with some signs of economic growth appearing and with elections on the horizon next year, we do expect that the advertising market will begin to grow again in 2012. 6 www.mediafactbook.roance specialists strategy economy radio television internet press digital planning buying audience reach affinity creativity public relations performance specialists strategy radio press television internet mobile digital planning buying audience reach affinity atl blanning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists stray public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile dig
  6. 6. economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio television internet press digital planning buying audience reach affinity creativity pubence reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radi media fact bookormance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying a n internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations perfoaffinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press televisio ialists strategy economy radio television internet press digital planning buying audience reach affinity creativity public relations performance specialists strategy radio press television internet mobile digital planning buying audience reach affinity atl btl creativituying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy econom about initiative 2010 was another year of declining investment in the Romanian advertising market. Whilst in many other coun- tries in the world the advertising market returned to growth, here in Romania we saw a continued decline in the overall volumes spent across the year. For us at Initiative, in such difficult conditions we still managed to grow our business, the continued support of all of our clients including Orange, Johnson & Johnson, Ferrero, BMW, Bergenbier SA, Millenium Bank, Pernod Ricard, Supreme Group, Provident Financial, Kika, Burger King & Fujitsu Siemens, meant that we managed to increase our overall billings and we thank all of our clients for their continued support & activity in the past year. In the Romanian market of course, size counts when delivering the best value to clients, & we were very proud to have risen to second place in the RECMA billings report released in 2010. As digital media continues to become ever more important in the lives of Romanian consumers, so the services & solutions that we offer to clients continue to evolve. In 2010 we continued to focus on emerging digital media & ran our first campaigns across social media, augmented reality & QR codes. We also continued to commission adhoc research studies to understand the full impact of digital media on Romanians. With these developments our digital team continues to grow ensuring fully integrated communication plans across both traditional & digital media. Our services to clients remain the same as ever, but with an ever growing focus on the array of digital opportuni- ties that are available. We offer quantitative & qualitative research, communication strategy planning, implemen- tation and negotiation across campaigns, as well as innovative non-standard special projects (such as event & media sponsorship, product integration, etc.,.) As part of this service – we also offer to our clients; l Media Landscape – quarterly analysis of the media market; l Media Fact Book – starting 1997, Initiative Romania is the exclusive publisher of this media annual guide, unique on the Romanian market. l Media training – Presentation of media basics (terminology, methods) and on-the-job training in Initiative’s office. l Media PR – Initiative provides media coverage to PR events organised by clients, upon request and project specifics. l Outdoor Mapping – providing clients a better campaign management l Digital concept & design management – offering clients integrated digital solutions by managing the entire process from ideation, concept and design to media planning and implementation of digital campaigns, either directly or in partnership with our digital specialist division, Hyperactive. Our commitment to clients remains performance led communications, ensuring data, insights & creativity produce real business outcomes for our clients. 7 www.mediafactbook.robtl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television interneategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinigital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists s
  7. 7. ning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy rformance specialists strategy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audie media fact bookon internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations perfoffinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television sts strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach abile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specis performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning bu about brand connection Brand Connection is a European media network part of Interpublic Group of CO’s (IPG), alongside its sister agency network, Initiative Worldwide. In Romania, Brand Connection was established in 2005 and is part of the same communication group with Initia- tive, Lowe & Partners, Golin Harris, Medic One, Hyperactive. Brand Connection provides the entire range of specific services from media strategy and planning to research and media buying. Vision Brand Connection is a new generation medium-size media agency, flexible, but with the buying power of a large agency, we provide special care for each of our clients. We target direct local clients and we are also the media arm for some creative agencies. Efficient investments are guaranteed through a unique approach rooted in the needs of the client and accom- plished through creative thinking. People All Brand Connection specialists are experienced professionals, part of them working with the group from the very beginning, originally as members of the Initiative team. The two agencies are set up and work independently whilst sharing in common expertise, tools, media buying power and most of all, a vision of hard work, consistency and world class standards. The client portfolio of Brand Connection includes: Intesa SanPaolo Bank, LaborMed Group, Pro Credit Bank, An- gelini Pharmaceuticals Romania, Teva Pharmaceuticals, La Redoute, Militari Shopping Center, Titan SA, Phillip Morris Romania, Porsche Inter Auto Romania, Lilly, The AD Store. Find out more about Brand Connection at www.brandconnection.ro, call at +4021 301 01 38 or write to us at: of- ficebc@brandconnection.com. 8 www.mediafactbook.roance specialists strategy economy radio television internet press digital planning buying audience reach affinity creativity public relations performance specialists strategy radio press television internet mobile digital planning buying audience reach affinity atl blanning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists stray public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile dig
  8. 8. economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio television internet press digital planning buying audience reach affinity creativity pubence reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radi media fact bookormance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying a n internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations perfoaffinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press televisio ialists strategy economy radio television internet press digital planning buying audience reach affinity creativity public relations performance specialists strategy radio press television internet mobile digital planning buying audience reach affinity atl btl creativituying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy econom economic landscape Lucian Croitoru Adviser to the Governor of the National Bank of Romania Over the past two years Romania has made large-scale adjustments. The external imbalance declined from 11.6% of GDP in 2008 to 4.1% of GDP in 2010 and prerequisites have been set for the economy to emerge out of recession. Adjustments have been made by both private and public sectors. The former has reduced its external deficit and increased labor productivity, and the latter pursued policies financially supported by the EU, the IMF and the World Bank to ensure fiscal consolidation and financial stability. The structural budget deficit went down from 8.2% of GDP in 2008 to 5.5% of GDP in 2010, and the capitalization of the banking sector is comfortable, with the average solvency ratio exceeding 14 percent. Reflecting these necessary corrections, the economy contracted by a cumulated 8.3 percent in the period 2009- 2010. The protracted recession exerted disinflationary pressures, but the VAT rate increase in July 2010 and the rise in food and fuel prices have pushed inflation to 8.3 percent in April 2011. The progress in reducing external imbalances and preserving financial sector stability has increased foreign in- vestors’ confidence in financial markets and has paved the way for growth in various sectors to resume. Given that Romania’s economy is highly dependent on capital inflows, restoring foreign investors’ confidence is essential. Increased investor confidence fosters bank lending and foreign investment. Signs of sustainable economic recovery are already manifest. Positive growth rates in 2010 Q4 and 2011 Q1 suggests that recession is over. Industrial production has increased steadily since 2009 Q4, with an advance of 10 percent YoY in March 2011. Although still negative, growth rates in the construction and retail sectors are ap- proaching positive values. These developments are in line with changes in consumer confidence. Across the euro zone, the consumer con- fidence indicator (measured as a three-month moving average of respondents’ opinions) over the next 12 months has steadily increased from an approximately -30 pp low in April 2009 to -10 pp in January 2011. For the new EU members, excluding Romania, the lowest confidence was also reached in April 2009, (-42 pp), but it increased to -23 pp in January 2011. Stronger consumer confidence translated into higher aggregate demand in the euro zone and helped Romanian exports reach an all-time high in 2010. In Romania, consumer confidence reached about -53 pp in January 2011, up from a -60 pp low in 2010 Q3. The main drivers have been the improvement in public finance and labor market conditions, prospects for growth in the EU, and the resumption of capital inflows. Increased consumer confidence and higher foreign investor confidence will both support domestic consumption and investment. Regarding household consumption, even if the average wage stagnates in 2011, bank loan re- financing schemes will result in higher disposable income. However, this does not automatically lead to stronger purchasing power of households. With pressure from fuel and food prices, the general price index may well outpace the revenue index, thus reducing the consumer purchasing power. As for investment, demand for invest- ment loans is recovering slowly, suggesting that gross capital formation might have a larger contribution to the aggregate demand in the period ahead. Presumably, the growth in domestic demand will be driven by investment in 2011. However, since consumption accounts for almost 80 percent of GDP, it is expected to regain its place as the main engine of growth soon. Domestic demand will gradually resume growth, compensating for the modera- tion in export markets growth. 1-The consumer confidence indicator is the arithmetic mean of (percentage) balances of answers regarding the financial standing of households, the overall economic sentiment, expectations on employment and saving over the next 12 months. Balances are seasonally adjusted. 9 www.mediafactbook.robtl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television interneategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinigital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists s
  9. 9. g buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy ecoance specialists strategy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience rea media fact book mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance economic landscapeatl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television insts strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affidigital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specials performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning bu While generating new jobs, the resumption in economic growth also poses new challenges. One of them is to make sure that economic growth is not accompanied by a rapid increase in external debt. More EU funds help to deal with this challenge, but past experience has proven that a better absorption of such funds was difficult. Another challenge is to maintain the growth rate at its potential, after the closing of the deflationary output gap, so as to avoid inflationary pressures on the demand side. The economic crisis has reduced both the level of Romania’s potential GDP and its potential growth rate. This means that even relatively small capital inflows make the economy more vulnerable to inflation. Moreover, higher than expected increases in fuel and food prices add to inflation and jeopardize the NBR’s inflation target. The joint action of larger capital inflows and inflationary pressures creates an interest rate dilemma similar to that that influenced monetary policy in 2006 and 2007. The continuation of fiscal consolidation without jeopardizing Romania’s economic growth and its convergence to EU living standards is another challenge. In the short run, risks to fiscal sustainability are contained by the relatively low level of public debt and the adjustments implemented in 2009 and 2010. Moreover, the new ar- rangement with the IMF and the EU secures the needed financing sources in case of adverse developments in the international financial markets or in the euro area. Concern remains in the long run. Risk of new fiscal slippages remains until deeper reforms of government employment and social entitlements are implemented. The latter increased from 9.6 percent of GDP in 2006 to 13.8 percent of GDP in 2010. Public pension spending represents almost 37 percent of total budget revenues, a percentage that ranks Romania second to Greece within the EU. Without adequate reforms, the ratio of persons aged 65 and over to active population might worsen Romania’s fiscal parameters. Risks are also significant on the political side. While in-depth reforms in the areas mentioned above require strong political support, the risk of a fiscal slippage remains high throughout 2012-2014, when parliamentary and presi- dential elections are scheduled to take place (including elections for the European Parliament in 2013). Higher-than-programmed fiscal deficits would keep foreign investors away from Romania. With lower capital inflows, economic growth and bank credit to the real estate sector would remain sluggish, which would result in relatively low budget revenues. Higher tax rates would not be a solution since they slow down economic growth, requiring further adjustments on the expenditure side. The adjustment would be increasingly difficult as public debt and interest rates would rise. The year 2011 might be decisive in avoiding this scenario. Seamless implementation of the envisaged fiscal program and the achievement of the 2011 fiscal deficit target of 4.4 percent of GDP could entail a significant re- sumption of capital inflows. This might have a favorable impact on the course of economic adjustments by raising stronger support for further fiscal prudence, which would set the stage for resuming sustainable economic growth. 10 www.mediafactbook.roance specialists strategy economy radio television internet press digital planning buying audience reach affinity creativity public relations performance specialists strategy radio press television internet mobile digital planning buying audience reach affinity atl blanning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists stray public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile dig
  10. 10. onomy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio television internet press digital planning buying audience reach affinity creativity public rach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press te media fact book specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audiencnternet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations perfofinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television lists strategy economy radio television internet press digital planning buying audience reach affinity creativity public relations performance specialists strategy radio press television internet mobile digital planning buying audience reach affinity atl btl creativituying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy econom media market “All of us who professionally use the mass media are the shapers of so- ciety. We can vulgarize that society. We can brutalize it. Or we can help lift it onto a higher level.” William Bernbach Overview After a full year of crisis, the contraction of the Romanian media market continued in 2010 but at a significantly lower rate compared to previous year (- 9% in 2010 vs.2009). All major media have been impacted – TV, radio, print and outdoor – with Internet being the only medium with a significant volume increase (more than 30% growth compared to 2009). Graph 1: Total net Ad-spend by medium (Mil €) - Estimation 600 500 400 300 200 100 0 TOTAL (Mil €) TV Print Radio OOH Internet 2003 179 88 58 12 20 2 2004 216 113 62 14 25 2 2005 277 159 66 17 31 4 2006 369 229 71 23 40 6 2007 482 306 79 30 58 9 2008 540 337 82 35 70 16 2009 345 222 37 25 42 19 2010 316 209 26 21 33 26 2011est 306 198 24 20 30 34 Print continued to be the most affected medium in 2010 (-30% vs. 2009), followed by OOH ( -20%), Radio (-16%) and with the smallest decrease on TV (-6%). TV had the highest share of the total net media market (66%) & grew in share versus 2009 (64%), OOH followed with a share of 11%. The growth in online spend meant that online budgets matched Print’s share at 8% and overtook Radio (7%). In 2010, the TV market continued its development by launching new channels: TLC, 10 TV and new channels have been added to the audiences monitoring systems: VH1, TVR3, Dolce Sport, Eurosport2. Facing a severe drop in readership and advertising investment, the Print market struggled to defend revenues through aggressive marketing actions: creating new impactful formats, launching supplements for niche audience groups and developing integrated promotional campaigns on print, TV and online. Sachet insertions covered 11 www.mediafactbook.robtl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television interneategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinigital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists s
  11. 11. g buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy ecoance specialists strategy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience rea media fact book mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance media marketatl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television insts strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affidigital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specials performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning bu products from cosmetics to food, with more books and CD / DVD sold together with the newspaper or magazine. The main sports dailies Gazeta Sporturilor and Pro Sport released their first 3D editions to mark the occasion of the football World Cup in May and July 2010. Some titles moved entirely online, while others were closed down. Radio tried to adapt to the new market situation through launching new programs, PR activities and improving their online presence through dedicated websites and social network sites. Despite the crisis, in 2010 most of the leading stations were sold out in Prime Time, a new channel was launched (Rock FM) and ProFM & ArboRadio extended their existing networks, improving coverage. In 2010, OOH was the second medium after print with a dramatic decrease in revenue, as happened in 2009. Due to the uncertanty in the legal environment and the difficult market conditions (price deflation & low ocupancy rate) the vendors did not invest in building new sites or in modernizing the existing ones. The major categories with significant OOH investments were retail chains and telecom companies. The cinema market in Romania is growing with new multiplexes and new technologies (digital projection, 3D technology, 6D movies). Cinema City became the largest cinema network in 2010. The main categories using cinema advertising in 2010 were: Beverages, FMCG, Clothing & Footwear, Telecommunications, Electronics, Auto, Banking and Insurance. In 2010, online advertising was the only media type reflecting a net growth in advertising revenue. The main driv- ers of growth were the social media platform extensions and performance marketing activities, mainly search. Social networking sites have recorded unprecedented growth rates, pulling significant investment from advertised brands (estimated 3% of online net advertising investment). Graph 2: Graph 3: Market shares in 2009 (net ad-spend by medium) Market shares in 2010 (net ad-spend by medium) OOH Internet OOH Internet 12.2% 5.6% 10.6% 8.3% Radio Radio 7.3% 6.7% Print 8.2% Print TV TV 10.7% 64.3% 66.2% Source: Initiative database Source: Initiative database Top Investors “Medical & optical products & services” became the leading category, up from 2nd position in 2009 with one of the highest budget increases (+55%). “Mobile Telecommunication Services”, the leader last year, dropped to 2nd po- sition in 2010 despite an increase in budget (+11%). “Dairy products” and “Hygienics” are some of the categories which kept the same ranking, while “Cosmetics”, “Banking & Insurance Services” dropped to lower places, whilst others fell outside of the top 10 (“Beer”, “Cars & 4x4 vehicles”). Categories with growing investment in 2010 are “Other sugar, confectionaries, honey” (+51%), “Household clean- ers (+26%), both new into the top 10 and “Laundry products” (+40%). 12 www.mediafactbook.roance specialists strategy economy radio television internet press digital planning buying audience reach affinity creativity public relations performance specialists strategy radio press television internet mobile digital planning buying audience reach affinity atl blanning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists stray public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile dig
  12. 12. onomy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio television internet press digital planning buying audience reach affinity creativity public rach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press te media fact book specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audienc media marketnternet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations perfofinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television lists strategy economy radio television internet press digital planning buying audience reach affinity creativity public relations performance specialists strategy radio press television internet mobile digital planning buying audience reach affinity atl btl creativituying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy econom Top 10 Categories in 2010 vs. 2009 - all media (TV, Press, Radio) - Rate Card Budget 2009 2010 Evolution (%) Category Exp. ( ) Category Exp. ( ) Mobile telecommunications services 490,560,226 Medical & optical products & services 622,870,190 55% Medical & optical products 402,641,466 Mobile telecommunications services 545,767,434 11% Milk Products 329,733,226 Milk Products 381,009,052 16% Beer 324,501,393 Laundry products 346,726,750 40% Hygienics 301,719,757 Hygienics 340,879,275 13% Cosmetics 276,672,541 Hair care 321,244,923 20% Banking & insurance services 271,441,953 Other sugar, confectionares, honey 314,851,668 51% Hair care Top 10 Categories in 2010 vs. 2009 - all media (TV, Press, Radio) - Rate Card 306,575,867 267,933,280 Banking & insurance services Budget 13% Laundry products 2009 248,236,287 Cosmetics 2010 294,222,426 6% Evolution (%) Cars & 4x4 vehicles Category 246,256,415 Household cleaners Category Exp. ( ) 287,400,033 Exp. ( ) 26% Mobile telecommunications services 490,560,226 Medical & optical products & services 622,870,190 55% Source: TV - GfKproducts Medical & optical Romania, Press and radio - AlfaCont Mobile telecommunications services 402,641,466 545,767,434 11% Top 10 Advertisers in 2010 vs. 2009 - all media (TV, Press, Radio) - Rate Card 381,009,052 Milk Products 329,733,226 Milk Products Budget 16% In 2010, P&G seemed to recover from324,501,393 showing a growth in spend (+58%) and kept the leading40% Beer Top 102009 the crisis, Laundry products Categories in 2010 vs. 2009 - all media (TV, Press, Radio) - Rate Card 346,726,750 2010 Budget position Evolution (%) as the major advertiser2009 the market.301,719,757 Hygienics Hygienics Advertisers on Kraft( (+5%) and Reckitt Benckiser (+19%) followed in 2nd and 3rd places, Exp. ) Advertisers2010 340,879,275 Exp. ( ) 13% Evolution (%) as in the previous year, whilst Danone (-5%) and Cosmote (-1%) slightly reduced their 658,925,194 dropped to PROCTER & GAMBLE Cosmetics Category 417,848,524 PROCTER & GAMBLE 276,672,541 Hair care Exp. ( ) Category budget) and 58% 321,244,923 Exp. ( 20% KRAFT FOODS 490,560,226 Medical FOODS products & services 272,953,432 KRAFT & optical lower positions. services Banking & insurance Mobile telecommunications services 271,441,953 Other sugar, confectionares, honey 287,696,844 314,851,668 622,870,190 5% 51% 55% Medical & BENCKISER RECKITT optical products Hair care 267,933,280 Banking & insurance services 218,923,318 RECKITT BENCKISER 402,641,466 Mobile telecommunications services 259,624,960 306,575,867 545,767,434 19% 13% 11% Ferrero products entry in the top 10 for 2010), Orange, Vodafone and Unilever are some381,009,052 DANONE new Laundry (a Milk Products 194,329,475 ORANGE 248,236,287 Cosmetics 329,733,226 Milk Products of the advertisers with 241,910,441 294,222,426 46% 6% 16% HENKEL 190,925,511 HENKEL cleaners increasingvehicles Beer & 4x4 expenditures and higher positions in the ranking. Cars 246,256,415 Household 324,501,393 Laundry products 216,493,862 287,400,033 346,726,750 13% 26% 40% COSMOTE Hygienics 171,078,706 VODAFONE 301,719,757 Hygienics 203,366,305 340,879,275 24% 13% ORANGE Cosmetics 165,984,459 UNILEVER 276,672,541 Hair care 185,924,427 321,244,923 21% 20% VODAFONE Banking & insurance services 163,930,033 DANONE Top 10 Advertisers in 2010 vs. 2009 - allsugar, confectionares, honey - Rate Card 314,851,668 271,441,953 Other media (TV, Press, Radio) Budget 184,669,833 -5% 51% COCA-COLA CO. Hair care 2009 153,920,506 COSMOTE 267,933,280 Banking & insurance services 2010 169,134,536 306,575,867 -1% 13% Evolution (%) UNILEVER Laundry productsAdvertisers 153,259,399 FERRERO 248,236,287 Cosmetics Exp. ( ) Advertisers 167,148,569 294,222,426 Exp. ( ) 57% 6% PROCTER & GAMBLE Cars & 4x4 vehicles 417,848,524 PROCTER cleaners 246,256,415 Household & GAMBLE 658,925,194 287,400,033 58% 26% KRAFT FOODS 272,953,432 KRAFT FOODS 287,696,844 5% RECKITT BENCKISER Top 10 Brands in 2010 vs. 2009 -RECKITT BENCKISER 218,923,318 all media (TV, Press, Radio) - Rate Card Budget259,624,960 19% DANONE Top 102009 194,329,475 ORANGE Advertisers in 2010 vs. 2009 - all media (TV, Press, Radio) - Rate Card 241,910,441 2010 Budget 46% Evolution (%) HENKEL Brands 2009 190,925,511 HENKEL Exp. ( ) Brands 2010 216,493,862 Exp. ( ) 13% Evolution (%) DANONE COSMOTE Advertisers 194,320,535 ORANGE 171,078,706 VODAFONE Exp. ( ) Advertisers 242,505,222 203,366,305 Exp. ( ) 46% 24% COSMOTE ORANGE PROCTER & GAMBLE 171,078,706 VODAFONE 165,984,459 UNILEVER 417,848,524 PROCTER & GAMBLE 195,479,312 185,924,427 658,925,194 22% 21% 58% ORANGE VODAFONE KRAFT FOODS 165,986,360 DANONE 272,953,432 KRAFT FOODS 163,930,033 184,457,023 184,669,833 287,696,844 -5% 5% VODAFONE CO. COCA-COLA RECKITT BENCKISER 159,794,338 COSMOTE 153,920,506 218,923,318 RECKITT BENCKISER 169,651,199 169,134,536 259,624,960 -1% 19% JACOBS UNILEVER DANONE 129,399,492 KINDER 153,259,399 FERRERO 194,329,475 ORANGE 117,827,575 167,148,569 241,910,441 50% 57% 46% ADEVARUL HENKEL 190,925,511 JACOBS 85,662,247 HENKEL 110,834,898 216,493,862 -14% 13% Source: TV - GfK Romania, Press and radio - AlfaCont ADEVARUL NIVEA COSMOTE 85,260,697 97,297,727 14% 171,078,706 VODAFONE 203,366,305 24% KINDER ORANGE Top 10 Brands in 2010 vs. 2009 -ARIEL 165,984,459 UNILEVER (TV, Press, Radio) - Rate Card Budget 78,546,369 all media 70,860,483 185,924,427 16% 21% Orange and Vodafone have been the most advertised brands on the market in 2010, while Danone dropped to COCA COLA VODAFONE 2009 163,930,033 NUROFEN 73,592,486 DANONE 2010 67,729,539 184,669,833 68% -5% 3rd position. Brands VANISH COCA-COLA CO. 64,525,528 NIVEA COSMOTE 67,438,273 Evolution (%) -21% Exp. ( ) Brands 153,920,506 Exp. ( ) 169,134,536 -1% DANONE 194,320,535 ORANGE Some brands showing important growth were Nurofen (+68%) and Kinder (+50%), while others reduced their UNILEVER 153,259,399 FERRERO 242,505,222 167,148,569 46% 57% COSMOTE 171,078,706 VODAFONE budgets in 2010: Jacobs (-14%) and Nivea (-21%) 195,479,312 22% ORANGE 165,986,360 DANONE 184,457,023 -5% VODAFONE Top 10 Brands in 2010 vs. 2009 -COSMOTE (TV, Press, Radio) - Rate Card Budget 159,794,338 all media 169,651,199 -1% JACOBS 2009 129,399,492 KINDER 2010 117,827,575 50% Evolution (%) ADEVARUL Brands 85,662,247 JACOBS Exp. ( ) Brands 110,834,898 Exp. ( ) -14% NIVEA DANONE 85,260,697 ADEVARUL 194,320,535 ORANGE 97,297,727 242,505,222 14% 46% KINDER COSMOTE 78,546,369 ARIEL 171,078,706 VODAFONE 70,860,483 195,479,312 16% 22% COCA COLA ORANGE 73,592,486 NUROFEN 165,986,360 DANONE 67,729,539 184,457,023 68% -5% VANISH VODAFONE 64,525,528 NIVEA 159,794,338 COSMOTE 67,438,273 169,651,199 -21% -1% JACOBS 129,399,492 KINDER 117,827,575 50% ADEVARUL 85,662,247 JACOBS 110,834,898 -14% NIVEA 85,260,697 ADEVARUL 97,297,727 14% KINDER 78,546,369 ARIEL 70,860,483 16% COCA COLA 73,592,486 NUROFEN 67,729,539 68% VANISH 64,525,528 NIVEA 67,438,273 -21% Source: TV - GfK Romania, Press and radio - AlfaCont 13 www.mediafactbook.robtl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television interneategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinigital planning buying audience reach affinity atl btl creativity public relations performance specialists strategy economy radio press television internet mobile digital planning buying audience reach affinity atl btl creativity public relations performance specialists s

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