Rapid activity growth: beer category on the threshold of impending restrictions; mobile providers category - from 3G launch happiness.

1. This month’s topic:
Rapid activity growth:
beer category on the threshold of
impending restrictions;
mobile providers category - from 3G
launch happiness.

2. TV MARKET. JUNE 2015
TOP categories
• 13% activity decrease comparing to the same period
of last year;
• Following categories showed a significant growth:
Communications,Trade and Computer Appliances;
• Pharma hold leadership position on TV;
• Cosmetics and Household Chemicals– – are the
categories with the greatest decrease of activity
compared to the same period of last year due to
decline in investments by major international
companies;
• Confectionary–decrease of activity due to decline in
investments by big manufacturers, such as Ferrero,
Mars and Wrigley, what is connected with boycott of
Russian commodity.
2
WGRP
All 18-54 50k+
Jan-
June’14
Jan-
June’15
+/-
Pharma 166 874 171 143 3%
Alcohol 142 078 90 543 -36%
Products 61 305 64 694 6%
Non-alcoholic beverages 52 967 55 331 4%
Communications 32 482 46 728 44%
Trade 26 956 46 289 72%
Hygiene 46 725 30 148 -35%
Confectionary 43 705 23 953 -45%
Transport 19 871 16 974 -15%
Cosmetics 33 837 16 715 -51%
Finance 15 140 16 712 10%
Household Chemicals 30 923 13 864 -55%
Perfumes 10 039 9 284 -8%
Household Appliances 7 692 7 710 0%
Computer Appliances 2 915 5 185 78%
Source: Nielsen Ukraine, All 18-54 50К+, excluding social/political ad, entertainment and Mass Media

3. Trade:
Rozetka.ua and Lamoda.ua are still
category drivers; products and
household appliances also increased
Communication:
Mobile providers continue active
support of 3G Internet services
CHANGES IN TOP CATEGORIES. JUNE 2015
3• Source: Nielsen Ukraine, All 18-54 50К+, excluding social/political ad, entertainment and Mass Media
Significant increase in January-June 2015 showed following categories:
+72% +44%

4. TV MARKET. JUNE 2015
TOP advertisers
• Beer companies ABI InBev and Carlsberg Group
assumed the leadership, using season and last
opportunity to talk about themselves without
restrictions;
• Kyivstar and MTS – active promotion of 3G Internet
services;
• Major international companies such as Kraft Foods,
P&G, Reckitt Benckiser etc., continue investments
reduction;
• Rozetka.ua – a local player with the most active
growth (in 13 times from 2014);
• Pepsico – a new player in the TOP 15 advertisers
thanks to seasonal support of their Pepsi brand.
4
WGRP
All 18-54 50k+
Jan-
June'14
Jan-
June'15
+/-
Nestle & L'Oreal 38 440 40 306 5%
AB InBev 15 307 21 463 40%
Carlsberg Group 12 392 20 790 68%
Unilever 14 929 17 989 20%
Novartis 18 862 17 799 -6%
Farmak 16 849 17 351 3%
Mondeliz Ukraine (Kraft Foods) 19 409 17 269 -11%
MTS GSM 10 807 15 052 39%
Kyivstar GSM 10 279 13 497 31%
Rozetka.ua 968 13 232 1267%
P&G 28 878 12 540 -57%
Reckitt Benckiser 16 613 12 006 -28%
Sanofi-Aventis 8 615 11 828 37%
Pepsico 10 298 11 494 12%
Ukrtatnafta 14 513 11 305 -22%
TOTAL 742 167 646 307 -13%
Source: Nielsen Ukraine, All 18-54 50К+, excluding social/political ad, entertainment and Mass Media
Local players

5. CHANGES IN TOP CATEGORIES. JUNE 2015
5• Source: Nielsen Ukraine, All 18-54 50К+, excluding social/political ad, entertainment and Mass Media
Alcohol category reduced falling speed in comparison to the last months (-49% in April and -40%
in May) due to:
Beer brands high activity placement in the cause of:
1. Seasonality;
2. Intensification of placement before Law about restriction of alcohol
advertising entries into force.
Leading players: AB InBev (+40%), Carlsberg Group (+68%)
-36%

6. 0
5
10
15
20
25
30
35
40
45
40 42 44 46 48 50 52 2 4 6 8 10 12 14 16 18 20 22 24 26
Thousands, EqGRP
2015 2014
WEEKLY TV ACTIVITY. JANUARY-JUNE 2015
6
In June TV activity remains lower
than in the same period of last
year, herewith fully represents
general situation weekly.
Source: Nielsen Ukraine, All 18-54 50К+, excluding social/political ad, entertainment and Mass Media

7. CHANGES IN LEGISLATION
7
From June 1, 2015 beer in Ukraine
equates to alcoholic beverages.
Advertising implements due to
rules, operating for strong alcoholic
beverages.

8. CHANGES IN LEGISLATION
8
TV and Radio (Direct)
Forbidden from 06:00 to 23:00.
In permitted time preview trailers
should be accompanied with
warning about harm of alcohol in
volume no less than 15% of
advertising.
Non-alcoholic beer advertising falls
under restrictions too.
TV Sponsorship
Forbidden: label demonstration/
It’s simulations with package
image, using of any parts identity
to TV trailer.
Permitted: label demonstration
on glass surface without product
characteristics and package
image, It’s parts, which can
generate associations with
product/manufacture.
Internet
Permitted with warning:
«Excessive alcohol
consumption is dangerous
for your health» in all
advertising formats.
OOH
Forbidden in any appearance
Permitted : advertising in
subway due to Sponsorship
agreement with logotype
image and word: Sponsor…”.

9. CHANGES IN LEGISLATION
9
On June 6, entered into force the Law about
television advertising volume reduction to 15%
in hour from airtime
The Law stipulate advertising restriction on TV by 15% during
every astronomical hour.
Advertising on radio shouldn’t overdraw 20% during
astronomical hour.
Due to operating standard, advertising on TV can’t overdraw
20%, in the course of electoral process – 15%; on radio 20%
and 25% accordingly.

10. 64% 66%
72%
88%
93%
0%
20%
40%
60%
80%
100%
21 22 23 24 25
1+1 Group
Alliance
In all channels
CHANGES IN LEGISLATION
10
Law influence on advertising unit of channels sold-out:
Sold Out
After entering into force the Law advertising units of channels sold out sharply increased. Due to forecasts, in fall sold out for
channels, especially big, will be maximum
Transition week:
Start of Law action
from Saturday

11. CHANGES IN LEGISLATION
11
Law about transparency of media property
was enacted by Verkhovna Rada.
Under the changes, names of electronic media, TV and
radio broadcasting owners become open.
The Law obligates channel owners inform about their
property for the licensing in National Council.
Also, it suggests to prohibit launch and activity of radio
organization, participants of which are juridical
individuals, registered in offshore zone and respective
private individuals, and those who have no Ukrainian
citizenship.

12. 12
3Gin Ukraine
STRUGGLE FOR
LEADERSHIP
Each Ukrainian mobile provider of‘Big
Three’uses his own development and 3G
services adoption strategy to differentiate
from competitors.
We made a general assessment of every
player, based on actions and advertising
messages.
ІНТЕРТЕЛЕКОМ

13. STRUGGLE FOR 3G LEADERSHIP: KYIVSTAR
13
Kyivstar: quality strategy vs launch speed
Mobile provider’s actions in 3G network development are determined, as never.
Company director make a stress in his Facebook page on full network coverage.
Kyivstar’s approach to country coverage is quite original: it was first to launch 3G
network in the whole town Brovary - Kyiv satellite, not megalopolis. Now Kyivstar is
absolute leader in quantity of people covered where 3G is testing.
It should be noted successful moment for rebranding, which is even more strengthened
through advertisement presence in informational space.
Kyivstar constantly uses new approaches to conquer client’s loyalty. For example, in
popular Alfa Jazz Fest company provided an opportunity to listen music novelties, using
3G for free for their clients.

14. STRUGGLE FOR 3G LEADERSHIP : МТS
14
МТS : speed strategy –“faster, than light”
MTS is first who launched 3G network thanks to roaming agreement with Trimob. They
still haven’t their own network and subscribers should switch between networks where
Trimob coverage is absent. Their own network launch is planned around fall. It’s
explained by that fact that hurry can discredit service and quality coverage will not be
provided.
As apposed to competitors, MTS made a stress on 3G services provision in internal
network (indoor solution), in comparison with large shopping and entertainment
centers WI-FI. It’s available in speed up to 42 Mb/s in 22 large Kyiv malls and Kharkov
subway.
To maintain leadership, MTS launched advertising campaign, where famous boxer
Oleksandr Usyk carries out an experiment that shows Internet speed which is“faster,
than light”.

15. STRUGGLE FOR 3G LEADERSHIP : LIFE:)
15
life:)“Space speed”
After new network launch in Lviv and large-scale subscribers tests in Kyiv, mobile
provider life:) has become first, who launched their 3G network in Ukraine. Subscribers
can use 3G+ network in 30 big cities. General network is prepared to be launched in test
mode in the nearest future.
life:) competes within leaders and shows better results in download speed in Kyiv
(provider №1 in data rate) and Lviv. Using preference over competitors, life:) focused on
3G+, where download speed up to 63,3 Mb/s is possible.
Preview trailer with first astronaut of independent Ukraine Leonid Kadeniuk says“Space
speed became reality!”

16. STRUGGLE FOR 3G LEADERSHIP : THE SECOND ECHELON
16
Intertelecom,Trimob, PEOPLEnet: positions protection strategy
Under“Big Three”pressure this companies are going through hard times.
Intertelecom is still in better, or, at least, safe position. Advantage: large coverage and
no necessity of capital investments in network. It launched advertising campaign “Stop
waiting for 3G! Use now!”, which shows absurdity of 3G anticipation, when technology
has already worked throughout Ukraine.
Trimob is in unstable situation. In spite of media support, work with subscribers and
rate schedule, network growth is unnoticeable.
PEOPLEnet is in a difficult situation. Commercial court of Kyiv lodged claim about
company’s bankruptcy due to account payable. Company admit debt existence, but
consider it as“normal working process”.
ІНТЕРТЕЛЕКОМ

17. trends in media
Other

18. OTHER TRENDS IN MEDIA. ТV
18
CrimeanTatar channel ATR resumed
broadcasting on June 17 near 20:30
Crimean authorities made out a list of prohibited in
peninsula Mass Media, among which is channel ATR. For
channel journalists work on mass events in peninsula is
prohibited.
In spite of this, Crimean audience have an opportunity to
watch ATR, but only via satellite.
In Kyiv TV channel has financial and technical basis and
staff, who continue to work.
Together with ATR, children’s channel Lale and radio
Meydan resumed broadcasting in Internet and in satellite.

19. OTHER TRENDS IN MEDIA. ТV
19
Channel“Inter”received a broadcasting
license
On June 30, 2015 channel“Inter”received a license, which
gives is an opportunity to continue broadcasting.
Members of National Council adopted unanimously
decision about license extension to 7 years.
This decision confirms that TV channel observes standards
of current Ukrainian legislation and works in legal
framework.

20. OTHER TRENDS IN MEDIA. ООН
20
Billboards will be taken away from roads
Bill about billboards placement prohibition within right of
way roads of common use out of centers of population
was carried.
Illegally set advertisement billboards will be dismantled
after the expiration date of permission document.
Inspection established that 3/4 from 6000 advertisement
billboards are set with breach of legislation.
Social research showed, that ad diverts 82% of drivers
during they drive a car out of urban areas.

21. OTHER TRENDS IN MEDIA. ООН
21
Opportunity to place advertisement in Nova
Poshta departments
Advantages: wide geography, including 1,5K departments all
over Ukraine.
Advertising formats: video spots on the Kyiv and Lviv
monitors, booklet A5 sampling“from hand to hand”.
Interactive media screens on shopping and
entertainment center“Ocean Plaza”
First interactive campaign was launched with Coca-Cola.
Idea: by creating a personalized Coca-Cola can and sharing it
in social networks with a hash tag #моякокакола, one could
then see it on Ocean plaza video screens. During 8 days
campaign 150K people (TA 18+) were reached.
New formats in Outdoor advertising:

22. OTHER TRENDS IN MEDIA. INTERNET
22
Twitter launched automatic video playback
Now video records, 6 second Vine videos and GIF-
animations could be viewed straight on the feed.
It’s possible to switch off automatic video playback and
return to it by click. In case of slow connection service
switches into playback mode by click.
Due to new service launch Twitter will collect payment for
video, 100% of which were in field of view on user’s device
no less than 3 seconds.

23. OTHER TRENDS IN MEDIA. INTERNET
23
YouTube News channel launch
YouTube launches news channel Newswire, where user’s
videos from the most important events will be placed.
Videos will be checked by Storyful editors.
Video hosting would like to raise new media using
effectiveness, to overcome main disadvantage - difficulty
of information confirmation because only seldom authors
inform service about the source.
YouTube goal – give to professional Mass Media new
channel to provide confirmed information and video,
made by eyewitnesses.

24. OTHER TRENDS IN MEDIA. INTERNET
24
Teaser advertisement in Skype
Starting from June advertisers which focus on mobile
audience, have an opportunity to place their ads in Skype
mobile application for Android and Windows Phone.
It’s possible to target users who use Skype on
smartphones and tablets.

25. OTHER TRENDS IN MEDIA. INTERNET
25
Yandex announced the launch of music
listening service
Yandex. Radio– new streaming service for listening to
music online. Product uses technologies of smart
recommendations Disco to create personal playlists. Also
service is available in mobile application format.
Yandex. Radio will work at the expense of audio
advertising, which will combine audio spot, text
announcements and banner. Format is adopted for web
and mobile devices.

26. 26

27. OTHER TRENDS IN MEDIA. INTERNET
27
Launch of Apple information service
On June 8 in Worldwide Apple Developers Conference in
San Francisco company Apple announced about their own
information service Apple News launch.
Service provide access to current political, economic and
culture information from the largest media sources.
Also company launched a new service with improved
interactive maps for better directions hints.

28. OTHER TRENDS IN MEDIA. INTERNET
28
New mobile advertising formats from
Facebook
Popular social network Facebook intends to launch of new
mobile advertising formats and possibilities of promotion.
At the moment social network has 1,25 bln of monthly
active users, which gain access from smart phones and
tablets. 73% of ad income company receive from
mobile ads.
Social network announced their plans to work with
advertisers within testing, development and improvement
of new advertising formats before their launch in service’s
mobile platform. Company has already started to
communicate with brands and collect feedback.

29. OTHER TRENDS IN MEDIA. INTERNET
29
AntiAdBlocker
On June 18 Soursepoin’s“AntiAdBlocker”technology was
officially presented .
Main idea – to help publishers to not loose costs from
AdBlock using among site visitors.
Monetization scheme is still unknown, however It’s
considering business model of licensing system: percent
from returned income to publisher or from new
subscriptions will be gained by developers.
Currently Sourcepoint provide services for free for 20
publishers from top-100 according to ComScore.

30. OTHER TRENDS IN MEDIA. INTERNET
30
Google Music
Google Company presented free version of Music service,
which works on advertisement model.
Free version will have scaled-down functionality: users
wouldn’t be able to choose tracks for listening themselves,
instead of this, they’ll get already compiled playlists. Such
scheme is realized in Pandora and iTunes Radio.
Besides that, algorithm will automatically pick up and
create playlists from tracks, which will be similar to chosen
song by user.

31. OTHER TRENDS IN MEDIA. PRESS
31
Newspapers and Magazines vs Digital content
Report data in Times of London shows, that traditional
printed media often have more attractive and interesting
content than digital. In traditional form newspapers and
magazines deserve more credit, than it’s given them now.
It’s especially important, as investments in digital media
impact on print. In the last year companies’ad investments
in magazines in USA fell by 5,1% comparing to 2013, and
in newspapers – by 10%.

33. UKRAINIAN CASE. PRODUCT & SERVICE
CAMPAIGN: Mood Box, Ping- pong.ua, Ukraine, 2014
PROBLEM: Discontent while waiting for the order, which leads to no
satisfaction during the meal itself and further refusal of delivery.
SOLUTION: Turning a box of Thai food into a mood box. Together with the
order customer receives random gift from random person, who also
ordered a meal. This way client gets an opportunity to continue a chain and
sent anything for free to the next person. The only rule is the present’s size,
which is defined by special frame.
RESULTS:
• >1000 presents were sent during first couple of weeks, more than 25%
from all orders contained a present;
• +19% growth of delivery orders in a month;
• Increased positive posts and records on Facebook page.
33

34. CAMPAIGN: Split to Unite, Obolon, Ukraine, 2014
PROBLEM: Obolon has lost their market share on the background of
developing events in Ukrainian history, namely struggle for country’s
territorial integrity.
SOLUTION: Promo-campaign with a patriotic mood. Obolon developed 2
bottles with 2 labels: blue and yellow. 2 bottles together create national
Ukrainian flag. Promo-campaign was also supported in social networks.
RESULTS:
• consumer response in social networks: posts, photos;
• As apposite to beer market decline, Obolon increased sales by 6,7%.
34
UKRAINIAN CASE. DESIGN/ PACKAGE

35. CAMPAIGN: Better on foot, ECCO, Latvia, 2015
PROBLEM: At the beginning of 2015 Riga City Council and the biggest
enterprise, which provides city transportations by public transport,
doubled ticket price. This provoked extreme dissatisfaction among citizens.
TASK: Launch a new season collection for ECCO
SOLUTION: Exploit the situation and put up quite provocative advertising
on city transport – tramway. Slogan «BETTER ON FOOT» has double
meaning – shoes quality and comfort on foots and convenience to go on
foot, as alternative to trip by public transport.
RESULTS:
• Immediate ad distribution in social networks and news sites;
• +21% sales growth for first 4 advertising weeks.
WORLD CASE. TRANSPORT
35

36. CAMPAIGN: Read my Lips, Maybelline, Russia, 2014
GOAL: Loud launch of famous lip balm Baby Lips from Maybelline.
PROBLEM : Women use lip balm only in winter, plus such products are
usually sold only in pharmacy.
IDEA: Convey audience that healthy lips are fashionable.
SOLUTION : On-line test on site babylips.maybelline.com. After
successfully passing the test, girls could receive balm as a prize. Test
essence was to guess right 5 words, which were inaudibly voiced in video.
Idea enhanced by various digital tools: Instagram, Youtube, social
networks, blogs, promo sites, banner advertising.
RESULTS:
• 500 К photos in Instagram with hash tag #babylips;
• 2,9 М website visits and efforts to take the On-line test;
• 150 К downloaded videos;
• +200% growth of Maybelline community in Vkontakte.
WORLD CASE. DIGITAL
36

37. CAMPAIGN: Read a Tree, online e-book store Elefant, Romania, 2015
SITUATION: 75% of woods all over the world were cut or corrupted by
people. A third of them were destroyed for paper manufacturing.
GOAL: convince people to read e-books instead of paper.
SOLUTION: Mobile application, which helped user to scan a special ad on
the tree and receive e-book for free. Also user could share this event in FB,
Instagram and Twitter, thus, attract followers.
RESULTS:
• 40 К of trees were scanned in 3 weeks;
• 200 downloaded books per day during month of campaign;
• Campaign raised media attention, which spread message and together
with fast-growing distribution in social networks, generated Earned
media worth 1,6 M Euro.
WORLD CASE. INTERACTIVE
37
Digital Media TV Social media

38. First paid advert was aired on July 1 in 1941 when
on US TV a ten seconds video by watch company
«Bulova Watch Company» was shown. For
advertiser the cost was only 9 dollars, including
production.
From this moment ad placement confidently
occupied its place on TV and helped a lot of
companies to succeed.
In this month issue we continue to surprise you
with interesting facts from advertising world, and
will tell you some curious and amusing case
studies.
Enjoy!
Interesting page
38

39. 39
Fact #2
From 1925 to 1934 Eiffel Tower
was a huge advertising medium.
It was rented by Andre Citroen,
founder of Citroën concern, who
set in tower 125 thousands of
light bulbs.
Fact #1
When in 1933 Dirac was
awarded by Nobel prize in
physics, he wanted to refuse it
because he did not aim to turn
it into self-advert. But
Rutherford persuaded him to
accept the award, as“Refusal of
Novel prize is much bigger
advertising”.

40. 40
Fact #4
The most expensive
advertising in the world cost
Chanel 33M dollars, 3M of
them were paid to Nicole
Kidman for filming in video
spot.
Fact #3
Alka-Seltzer significantly
increased sales due to wise
marketing solution: at the same
time two pills instead of one pill
were demonstrated in the ad.

41. 41
INTERESTING PAGE. ADVERTISING CURIOSITIES
Advertising failure happened in the
USA, when during a social anti drug
project for American schoolchildren
were given pencils with inscription:
“I’m too cool to do drugs!”.
With time pencils grinded down and
in their stubs remained appeal to
action:“..do drugs!”

42. 42
INTERESTING PAGE. ADVERTISING CURIOSITIES
And here’s what happened with American
analgesic advertising in Saudi Arabia:
The ad was following: 3 posters left to right – in
first lady with skewed face, in second – lady, who
drinks pharmacy and in third – happy and
satisfied lady.
The only problem was that in Saudi Arabia read
right to left.

43. AND FINALLY….
43
A lot of researchers affirm that
advertisement is the most significant
and influential form of art on Earth.

44. See you in the next
issue!