GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
1
GfK. Growth from Knowledge
Media in CEE: New Opportunity and New Challenge
Researcher's Perspective
Dr. Petra Golja, Dr. Rudolf Bretschneider, GfK Austria

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Our Business Cards
2
Dr. Petra Golja Dr. Rudolf Bretschneider
Head of Media Research at GfK Austria
Consultant of GfK Austria (since 2008)
CEE Media Team Coordinator
Managing Director of GfK Austria
Member of Media Competence Center from 1971 till 2007
in GfK group international
Foundation of 19 CEE GfK Companies
Graduate at University Vienna
Graduate at University Vienna
All print currency systems in Austria
Lector at University of Vienna
Lector at different relevant Institutions
Author of relevant articles, books etc.

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
THE
agenda 3
1 GfK and CEE
2 Basic Market Facts in general
3 Media market in CEE
4 Position of Newspapers for Top News in CEE
5
Conclusion

1
GfK and CEE
A complete full service market research network

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Question to you: Which of these CEE countries … ?
5

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
What Is CEE: In GfK Terminology CEE Is The Whole Post-Soviet Territory
(inc Austria – the regional hub)
6
CEE in a nutshell:
At the moment 19 countries (inc Russia, Ukraine, Poland, Romania, ex-Czechoslovakia or ex-Yugoslavia)
332 million inhabitants, extremely high market dynamics (GDP growth in some countries above 10%!)

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
The History of GfK CEE Market Leadership
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Austria 1950 Ukraine 1998
Hungary 1989 Croatia 1999
Poland 1990 Slovenia 2001
Slovakia 1990 EST RUS Serbia 2002
LT
Czechia 1991 LV Bosnia 2004
BY
Russia 1991 PL
KAZ
Kazakhstan 2005
CZ UA
Bulgaria 1994 SK Baltic States 2006
A
H
Romania 1996 SLO
HR
RO Macedonia 2007
BiH
SCG
BG Albania 2008
MK
AL
1.800 GfK employees in 19 countries with 332 Mio people

2 Central and Eastern Europe: Basic Market Facts

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
The Very First Characteristic of CEE: Speed of Change
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GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Justice and retribution is among top10 personal values only in CEE
10
W-EU CEE CZ HU PL RU 1
1 Protecting the family
Protecting the Protecting the Protecting the Protecting the Protecting the 0
family family family family family
2 Honesty Material security Justice Material security Material security Health and fitness
Stable personal Stable personal Stable personal
3 Having fun Justice Material security
relationships relationships relationships
Stable personal
4 Freedom Friendship Friendship Retribution Friendship
relationships
Stable personal
5 Self-reliance Justice Self-reliance Honesty Friendship
relationships
6 Authenticity Self-reliance Health and fitness Authenticity Duty Justice
Personal
7 Friendship Fulfilling work Material security Friendship Retribution
support
8 Material security Health and fitness Retribution Spirituality Honesty Fulfilling work
9 Self-esteem Duty Self-esteem Self-esteem Public image Self-reliance
10 Enjoying life Personal support Duty Justice Freedom Social stability
Source: GfK Roper report RRW 2007 QC1, QC2

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Protecting the family is the fundamental personal value for all consumers;
however material security is very important across CEE countries.
11
1
Global W-EU CCE CZ HU PL RU
1
Protecting the family 1 1 1 1 1 1 1
Honesty 2 2 13 12 5 8 15
Stable personal relationships 3 3 3 3 15 5 4
Friendship 4 7 4 4 7 4 5
Self-reliance 5 5 6 5 12 11 9
Authenticity 6 6 12 11 6 13 12
Duty 7 12 9 10 21 6 11
Self-esteem 8 9 11 9 9 12 13
Freedom 9 4 19 16 16 10 24
Material security 10 8 2 7 2 2 3
• In Hungary and Poland, material security is the second most important among personal values,
and this is in line with the fact that there is the lowest future economic confidence in these 2
countries.
• Self reliance and authenticity is generally less important for the CEE countries.
• Freedom is less important value in the CEE region compared to either the global or to the
Western-European consumers, while in Russia it is far less important than in other CEE countries.
Source: GfK Roper report

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
CEE Consumers Are Open to Other Cultures – They Feel Quite Close to
Both US and European Cultures. Good News for Foreign/International
Brands (=Your Advertisers) ...
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Percentage of Consumers who feel close to own national
culture and distant to any other
Source: GfK Roper Reports Worldwide 2007

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Has the EU Inspired a Slight Increase in Affinity to European Culture
In The New Entrants?
13
Change: 2003-2007
Czech Republic +6pts, Spain +4, France +4,
Germany +3, Poland +2 UK -7pts, Italy -4
% Western European who feel very/ % Central Europeans who feel very/
somewhat close to European culture somewhat close to European culture
Source: GfK Roper report

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Lifestyle and Leisure: In Some Cases, Consumers Are Getting Deeper
Into Work, Leisure Activities, Purchasing
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Relationship with work is changing – fulfillment through work, working hard and
longer working hours
Hungarians TALK about work, Polish people DO work
In the Czech Republic, balance between work and private life
Working on a paid job Being with spouse Being with kids
37,1 hours a week in WE 40,5 hours a week in WE 24,8 hours a week in WE
41,5 hours a week in CEE 27,1 hours a week in CEE 19,6 hours a week in CEE
Source: GfK Roper report

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
CEE Has Generally ‘Smaller’ Social Network Compared
To The Rest Of The World.
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Total Average Size of Social Network
W-EU
Global
CEE
Source: GfK Roper report

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Heterogenity of CEE Is Well Documented by Differences in Brands Perception.
This Has Clear Impact on Pricing and Communication Strategies and Tactics
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Source: GfK Roper Reports Worldwide 2007

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
In CEE Permanent Avoidance Of Advertisements Is Greater Than In W-EU
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Source: GfK Roper report RRW07 Core, QI8

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Total Population: Estimation and Projection
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Migration, lower birth rate and higher levels of life expectancy lead to shrinking population
Bulgaria
120 Croatia
110 Czech Republic
Population size index
Hungary
100
Poland
90 Romania
Russia
80
Serbia and Montenegro
70
Slovakia
100 = population in 2000
60 Slovenia
2000 2010 2020 2030 Ukraine
Source: UN Population Division/OECD

3 Media in Central and Eastern Europe

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Money makes the world go round and advertising expenditures the media.
20
Advertising expenditures
TV Radio Newspaper Magazines Internet

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
TV dominates the advertising budgets, but Print wakes up.
Market shares of advertising expenditures 2007 per 4 traditional media groups 2007, in percentage
Mio € 21
2.397
105
20.900
124
1.791
689
139
306
438
4.455
740
6.249
173
730
283
477
445
Sources: GfK desk research 2008

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Advertising expenditures per head indicate level of economy well
Expenditures 2007 in € include: Print, TV, Radio, Outdoor, Online and Cinema
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in Mio €
2.462
449
1.923
748
4.546
114
749
325
134
6.427
144
287
477
175
486
744
Sources: GfK desk research 2008

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Online advertising expenditures passed even some traditional media
Market share of online advertising in percentage from total advertising spendings, 2007
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in Mio €
9,5
56,0
125,0
8,4
18,6
4,6
65,0
164,0
10,0
8,3
8,8
2,0
Sources: GfK desk research 2008

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
TV usage vary between countries quite a lot
2007/2008
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Sources: Desk research GfK companies 2008, * not available

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Daily reach of largest TV-Channel 2007
in percentage
25
in Index 1)
97
78
78
76
73
69
64
61
42
28
27
Source: Desk Research by GfK companies, *=2008, 1) Index: Relation between daily reach in total and reach of largest TV-channel

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Increasing offer of TV-channels corresponds only particularly with TV-usage
Cable- and Satellite coverage 2007, in percentage
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in percentage
Source: ASTRA Satellite Monitor: Year End 2007; except Estonia / Latvia / Lithuania: Mid Year 2007; Russia: Year End 2006

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Radio: Intensive usage, little share in advertising spending as everywhere
27
Source: Desk Research by GfK companies; except: 1) Source: mediaedge:cia - Marketing and Media Pocket Book 2006, *=2008

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Daily reach of largest Radio Channel 2007/2008
in percentage
28
Source: Desk Research by GfK companies, *=2008

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
90
71 80 81
Internet-User
Internet-Nutzer
in Europa 2008
Europe 69
29
59
Adult population
Erwachsene in 58 80 22
percent
Prozent 59
69
USA: 69 16
81
41
65 66
71
49 15
50
60
77 67 42 10
66 39 32
48
31 32
34
46 32 44 32
16 21
46 36
(urban)
Desk research GfK Austria, Austria, Juli 2008
July 2008 Malta 24

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Internet at home follows PC at a different speed
Penetration of PC and Internet-Access at home 2008 (2007), in percentage
30
Source: GfK groups, Omnibus 2007/2008

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Mobile Phone: Booming Market per excellence
Penetration of Mobile phones 2004 – 2007/2008, in percentage
31
Source: Omnibus and desk research by GfK companies

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Where is the paradise for publishers? In Austria, Estonia and Latvia.
Advertising Expenditures: Market Shares Print 2007, in percentage
32
1) Dailies includes \"other print\" = print total

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Newspaper markets vary enormously between CEE countries
Daily reach of newspapers 2007/2008, in percentage
33
Source: Desk Research by GfK companies; except: 1) Source: mediaedge:cia - Marketing and Media Pocket Book 2006;
2) Cross-National daily newspapers only , *=2008

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
But the same situation in Western Europe
Daily reach of newspapers 2006, in percentage
34
Quelle: mediaedge:cia - Marketing and Media Pocket Book 2006

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Austria must be a strange country
Daily reach of largest (national) newspaper 2007/2008, in percentage
35
Source: Desk Research by GfK companies, *=2008

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Magazine's benchmarks are quite similar in all countries.
Reach of largest magazine 2007/2008, in percentage
36
Source: Desk Research by GfK companies, *=2008, 1) Eesti Ekspress (no.1 weekly print channel) is weekly newspaper not magazine,
*) Autotouring 26% (ÖAMTC member's journal)

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
CEE Media Markets - General Trends: Dynamic and change
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 TV, as everywhere, is the most important medium for consumers and
dominates the advertising markets, BUT
 According to the economic and political stage of development all
markets - media and advertising - are dynamic and changing rapidly.
Characteristics are:
 Higher economic standard leads to more products/offers concerning
TV, print and internet.
 Radio stays more or less local.
 Concentration of owners in progress: A few owners offer many
products for TV, Print, Internet (local and foreign players).
Source: Desk Research by GfK companies

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
CEE Media Markets - General Trends: Booming and competition
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 Privatisation leads to more \"commercial\" products
 Traditional media disappear or change their strategy completely
 Traditional Daily newspapers are losing readers
 Free dailies are increasing, free magazines are coming
 Magazine markets are booming; diversification to women,
economic, life style titlesetc.
 Competition becomes harder (all media)
 Competition between internet and print especially
 Media markets seem to overleap some stages of developments
we saw in Western Europe
 In some countries \"try and error\" may be a slogan
Source: Desk Research by GfK companies

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
CEE Media Markets - Internet: Increasing and overleaping stages
39
 Internet is increasing rapidly (usage and advertising) and is forcing
major publishers to offer new Internet portals (news and reports).
 ome
S countries overleap some stages of development \"print -
internet\", we have seen in Western Europe. Tendency to create
interesting internet-offers with interaction for users. Fear of
publishers to lose readers, especially daily newspaper.
Source: Desk Research by GfK companies

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
CEE Media Markets - Print: Diversification and looking for new strategies
40
Print is a growing sector, trends are:
 ree newspapers and magazines (interesting for advertisers)
F
 Tabloid\" newspapers (easy consumption, yellow press and quality
\"
newspapers, \"Tabloid\" is a general trend (as in Western Europe)
 iversifications in magazine sector, special magazines like sport,
D
economic, life-style
 omen magazines, different target groups: luxury, ABC-social
W
status (compare women in Austria), home, celebrities etc.
 V-guide magazines (print and internet portals)
T
 trong competition
S
Source: Desk Research by GfK companies

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
CEE Media Markets – Print: Countries specifics
41
 Beside the specific and historical conditions of each country, 5 regions in
CEE may be identified regarding the print sector:
 Three Baltic countries: Strong, increasing advertising market in general,
good position of print (dailies too) and internet (Estonia!)
 Hungary, Czech, Slovakia, Slovenia: Quite well-positioned print sector
regarding advertising, dailies, magazines, political / independent
 Romania, Poland: Increasing print markets with large numbers of titles,
focus on magazines (fragmentation to women, business, life style
etc.) - \"try and error\"
 Russia, Ukraine: Weak market of dailies, focus on magazines
 Bulgaria, Bosnia: Weak print market, but in movement (magazines in
Bulgaria)
Source: Desk Research by GfK companies

4 Position of Newspapers for Top News in CEE

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Question to you: 3 most relevant Media channels for Top News in …
43

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Question to you: 3 most relevant Media channels for Top News in …
44
2 3 2
1 1 1
3 2
3

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
No News: TV is the most important media channel for Top News
3 most important …
45
Index*)
2,8
2,8
2,5
2,0
2,4
2,6
2,2
2,1
Sources: Omnibus, GfK CEE-companies 2008, *) average numbers of answers (out of maximum of 3, aided)

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Internet-usage changes \"more or less\" relevance of media channels for Top News
4 main media groups, in percentages
46
Sources: Omnibus, GfK CEE-companies 2008

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Internet-usage changes \"more or less\" relevance of media channels for Top News
4 main media groups, in percentages
47
Sources: Omnibus, GfK CEE-companies 2008

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Internet-usage changes \"more or less\" relevance of media channels for Top News
4 main media groups, in percentages
48
Sources: Omnibus, GfK CEE-companies 2008

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Half of Internet-users in CEE say web use has affected their
consumption of traditional formats
% distribution of how online media users consume traditional forms compared with the past
49
Source: GfK Roper report RRW07 Core, QI6

5 Conclusion

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
General trends
51
Speed of change
Basic values are the same everywhere
Consumers becoming similar and
national differences (still) exist
Think \"glocal\"

GfK Media Media in CEE, Inma 2008 Vienna Petra Golja, Rudolf Bretschneider 1. October 2008
Media market trends
52
Dynamic and change
Overleaping of stages (we saw in Western Europe)
Diversification combined with \"try and error\"
Print market: In- and Decreasing at the same time
Potential and hard competition

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