The document summarizes the Latvian advertising market from 2010. It shows that: 1) The Latvian advertising market declined 13% in 2010 compared to 2009, with the largest drops in print (-31%), outdoor (-22%), and radio (-19%). 2) Only television (-1%) and internet (-2%) saw spending remain close to the previous year's levels. 3) Television gained market share, increasing to 44% from 40% the previous year, largely at the expense of print media. 4) An advertising agency predicts the market will continue to decline 3% in 2011 before stabilizing in 2012, due to Latvia's unstable economic situation.

1. Year 2010
adVerTising media
MarkeT oVerVieW

2. Latvia media advertising market
declining by 13% comparing Y2010
vs. Y2009
1

3. Media billings declining by 13%
+3 %
150 +2 4% -46%
Difference in Net spending, EUR
138.2
133.7 Y2010 vs. Y2009
125 Media
+2 5% 108.2 TV -1%
Net EUR, millions
100 Radio - 19%
86.7 -13%
75.2
Newspaper - 32%
75 65.3 Magazine - 30%
OOH - 22%
50
Internet - 2%
Cinema - 11%
25
Total Market - 13%
0
2005 2006 2007 2008 2009 2010
• Decline in advertising net spending for non-TV media: highest drop in print (-31%)
followed by outdoor (-22%), radio (-19%) and cinema (-11%)
• Only TV (-1%) and internet (-2%) managed to secure investments approximately at
level of previous year
2
Data source: TNS Latvia, LRA

4. TV gains market share by ~4pp, reaching 44%
Y2009 Y2010
Cinema Cinema
Internet 1% Newspapers Internet 1% Newspapers
11% 14% 13% 11%
Magazines
Outdoor 9%
Outdoor
11% Magazines
10%
11%
Radio Radio
12% 12%
TV
TV
44%
40%
• Considerable changes in ad spending share: TV (+4pp) and print (-5pp). Other
media SOM fluctuations are within range of ~1 pp
• Internet strengthens positions and has gained even higher share than all other non
TV media, being 2nd top media by SOM (13%)
• Growth in TV share – ensured by drop of non-TV media investment (especially print)
while TV spending remain approximately at level of Y2009
3
Data source: TNS Latvia, LRA

5. Starcom predicts Y2011
Latvia advertising market
decline by 3%
4

6. Starcom predicts Y2011 Latvia advertising
market decline by 3%
+3 %
-46%
150 +2 4%
138.2
133.7
125 +2 5%
108.2
Net EUR, millions
-13%
100
86.7
-3 %
75.2
75 65.3 63.3
50
25
0
2005 2006 2007 2008 2009 2010 2011*
• Latvia ad market will continue to decline and will stabilize only in Y2012. Latvia still
have unstable economical situation, which caused by changes in fiscal policy and
growing burden of taxes for customers
5
Data source: TNS Latvia, LRA & Starcom prediction

7. Central & Eastern Europe markets recovering
faster: planned 8% growth in Y2011
50%
Year on year % change for media billings
Central & Estern europe Latvia
40%
30%
20%
13%
10% 7% 8%
3%
0%
Y08 vs. Y07 Y09 vs. Y08 Y10 vs. Y09 Y11 vs. Y10
-10% -3%
-13%
-20%
-30% -25%
-40%
-50% -46%
6
Data source: TNS Latvia, LRA & Starcom prediction
Zenith Optimedia market predictions

8. © Starcom
7