The main Media Market Trends & News we would like to share with you in this issue are the following: Internet to overtake TV in 2017 according to Zenith global advertising forecast Brief TV Market overview o StarLight Sales is increasing TV commercial cost by 35% starting from autumn Digital Market overview featuring recent launches and new Advertising possibilities o Twitter is offering influencers a new way to make money on the platform o Instagram is the most engaging platform OOH, Print & Radio Markets demonstrate growth Leaders of advertising holdings in Ukraine specified media inflation level forecasts

1. Media Market Digest August2016
Internet toovertakeTVin2017–Zenithglobaladvertising forecast

2. 2

3. Jan-Aug’2016 in term
of WTRP’s vs Jan-
Aug’2015
3
Source: GFK/Nielsen, Direct Advertising, excl. Social & Media, TA: 18-50 50k+. Data owner is ITC. Processed by “CCM”
Subsidiary Enterprise
Key facts
SOR in average 86%In Aug’2016
It stays close to critical 90% level since 23 week
Aug’16 vs Jul’16
in WTRP’s
The annual conference
was held in Kyiv on
September 22

4. 180,4
66,8
53,3
44,2
37,4
33,5
33,3
27,7
24,6
23,9
Pharma
Food
Telecom
Hygiene
Cosmetics
Trade
Cold AFB
Confectionery
Entertainment
Auto
14%
15%
8%
30%
125%
5%
32%
18%
-3%
-4%
4
Source: GFK/Nielsen, Direct Advertising, excl. Social & Media, TA: 18-50 50k+. ‘000WTRPs. Data owner is ITC.
Processed by “CCM” Subsidiary Enterprise
 Epicenter and Le Boutique provided
Trade category increase vs prev. month
 Metro high activity couldn’t
compensate category drop vs prev. year
 Cosmetics continues to grow vs 2015
driven by L'Oreal and Beiersdorf AG
 Cold AFB category decreased due to
kvass group activity drop in August
 West oil group was the only one showed
significant growth in Auto category vs
July
29%
18%
12%
21%
43%
1%
-11%
-13%
-37%
TOP Categories 2016 vs 2015 Aug’16 vs Jul’16

5. 29,5
27,4
24,5
21,1
18,5
16,9
15,3
15,0
14,0
13,7
Nestle
Procter&Gamble
Pharmak
Reckitt Benckiser
L'Oreal
Vodafone
Kyivstar
Ukrnafta
Danone
Unilever
33%
38%
8%
136%
11%
3%
176%
-11%
-4%
-23%
5
Source: GFK/Nielsen, Direct Advertising, excl. Social & Media, TA: 18-50 50k+. ‘000WTRPs. Data owner is ITC.
Processed by “CCM” Subsidiary Enterprise
116%
9%
118%
14%
7%
33%
16%
-6%
-27%
-44%
TOP Advertisers 2016 vs 2015 Aug’16 vs Jul’16
 6 out of 8 advertisers in Confectionery
category lowered their activity in
August
 Ferrero was the main driver of
category drop
 Schwarzkopf&Henkel increased its
activity that ensured Detergent
activity growth vs prev. year
 SC Johnson wasn’t active in this
category in 2016
 Nestle increased its activity that had a
positive impact on Hot Beverages
category growth vs prev. month

6. 6
Source: http://goo.gl/FN7Xk1
TV market is going to exceed indicators of 2013 in UAH this year. Such forecast was made by CEO of
StarLight Sales Andrew Partyka.
Cost for TV commercial in dollars will be very different from 2013 or 2008 even with rising of pries by 35%.
AndrewPartykaaboutmarketsize and increasingofprices
Source: http://goo.gl/QPFQ46
StarLightSales is increasing TV commercial cost for new clients and cost for additional volume for
advertisers, that already have contracts.
Andrew Partyka noted, that autumn cost 2016 will be the offer for 2017 after increasing by 35%. And prices
wiil increase for 2-3 years at least.
StarLightSalesisincreasingTVcommercialcostby35%startingfromautumn
Increasing demand in 2H'16 allows Sellers at least try to catch up consumer inflation 100%
2013-2016 years in UAH, instead +30% TV price increasing. It is possible only in case
significant economy revival and rapid TV market boost within next years. 2017 year's
demand will be the indicator of possibility to appease Sellers appetites.
Alexander Polinovskiy, TV Buying Group Head Zenith Ukraine

7. TV channels want cable operators pay them
retransmission fee at the rate of 2,5 UAH per month
for every user. «We are talking about fee at the rate of
2,5 UAH for the broadcasting of 20 TV channels of four
media groups now…»
TVchannelsannouncedtocableguysprice
forthebroadcasting
Source: http://goo.gl/GurxKF
Igor Kolomoysky is denying information about selling
TV channel “1+1” to organizations, that connected with
the president of Ukraine. This information was
announced in widespread press release.
Theownerof 1+1mediarefuted
informationaboutselling TVchannel1+1
7
Source: http://goo.gl/hb3gZQ
Source: http://goo.gl/Fc254c
“1+1” leads in three audiences at the same time in MB Top
Channel research according to the August results. “Ukraine”
channel at the head of TOP in another one. “Novyi Kanal” and
“1+1” has the most noticeable growth of share, “Ukraine”
and ICTV − the most noticeable fall.
Top-listofTVchannelsin August:1+1,TRK
Ukraine andbreakthroughof UAPershii
Notthefirstbottomanymore.Why isInterlosing
itsaudience?
Source: http://goo.gl/ZktD1O
“Inter”, which used to be the most influential TV channel in
Ukrainian media space, is losing his audience. The youth just
don’t watch Russian programs.

8. 8

9. 9
186,8
123,8
114,9
106,6
92,2
87,7
74,0
64,4
58,5
58,3
Carlsberg Group
Nestle
Citrus
Douwe Egberts
Reckitt Benckiser
Kyivstar
Mondelez
Wargaming
L'Oreal
Allo
356,4
240,3
197,0
188,3
185,5
178,9
159,1
133,6
131,9
126,8
Trade
Leisure time
Alcohol
Hygiene
Cold AFB
IT
Food
Confectionary
Hot Beverages
Automotive
Apr-Aug 2016
Source: Gemius Ad Real, MLN Impressions. Data is processed by “CCM” Subsidiary Enterprise
Apr-Aug 2016
TOPCategories TOPAdvertisers&
VOD

10. 10
Rozetka
Yandex
101XP Games
Limited
Citrus
Allo
Mobtop
GEPUR
Georgia.travel
Vulkan Casino
Bitcoin
Trade
Leisure time
Finance
Computers
Tourism
Media
IT
Automotive
Wear
Real estate
Aug 2016
Source: Gemius Ad Real, MLN Impressions. Data is processed by “CCM” Subsidiary Enterprise
Aug 2016
TOPCategories TOPAdvertisers&
Display

11. Consumer Barometer 2016 presents the results of a new study conducted by TNS Infratest
commissioned by Google, and dedicated to the behavior of Internet users. Results of the
study are presented as analytical online tool https://www.consumerbarometer.com/en/
11
ActualstudyonBehaviorofUkrainianInternetusers isavailable
Source: https://goo.gl/JdVnof
Gemiusfindsouthowyoungpeopleliveonline
Source: https://goo.gl/hiIP0R
Gemius has checked which websites are the most popular among people in the 15─24 age
group in Poland, Turkey and Romania, and in Belarus, Ukraine and Hungary. Find out how
young people live online

12. Facebook is changing the way it displays Trending Topics, removing the story descriptions
that were previously listed beside topics, and now only showing a “simplified” topic and
its number of mentions.
12
Facebook removes story descriptions for Trending Topics & replaces with
numberofmentions
Source: http://goo.gl/SSxY5K
TwitterIsOfferingInfluencersaNewWaytoMakeMoneyonthePlatform
Source: https://goo.gl/lKadF3
Twitter is offering influencers a new way to make money on the platform - adding preroll
ads 'as simple as checking a box'.

13. One major trend is the shift away from big celebrity bloggers, to micro-influencers, which
Bloglovin defined as “mid-sized influencers, with dedicated, highly engaged followers. Nearly 60
percent of the 2,500 micr-influencers surveyed by Bloglovin said they felt that Instagram is most
effective for engaging with audiences, while 18 percent think the same of Facebook.
13
Influencers:InstagramIstheMostEngagingPlatform(Report)
Source: http://goo.gl/wnbEfT
MobileSearchasbuyingmotivator
Source: https://goo.gl/Ofegxt
A recent study Mobile in the Path to Purchase survey 2016 behavior of smartphone users
when searching for product information and the purchase of goods in different
categories - from clothing to vehicles - showed that Ukrainian actively use smartphones
to search for information about the product before buying.

14. 14

15. 17,9
15,5
14,6
8,9
8,2
7,9
7,7
7,4
6,9
6,4
Fozzy Group
Epicenter
Sport Life
Lifecell
Riel
Vodafone
Samsung
Privatbank
Metro
K.A.N.
Development
44%
2%
22%
49%
155%
4%
38%
-10%
-15%
-16%
TOPCategories
171,4
113,0
66,4
51,4
36,0
26,8
22,6
21,4
18,7
15,4
Trade
Realty
Entertainment
Auto
Telecom
Finance
Sport
Restaurants
Medicine
Tourism
17%
61%
28%
46%
2%
21%
20%
32%
61%
-1%
 Telecom category
increased this month
thanks to Motorolla and
Huawei Technologies
activity growth
 Visa activity grew up 4
times, but that didn’t stop
Finance category drop vs
prev. year
 Volya took leadership in IT
category thanks to activity
increase vs prev. year
 Pepsico and New products
provided Cold AFB
category decrease vs 2015
2016 vs 2015
15
2016 vs 2015TOPAdvertisers
Source: Communication Alliance-OOH, Budget, Mln UAH. Data is processed by “CCM” Subsidiary
Enterprise
OOH market grew by 23% vs Jan-Aug’15

16. 16
"PrimeGroup"movestoanewstatemonitoringposters
Source: http://goo.gl/PFZxwB
Increaseinthecostofoutdooradvertising2016
Source: http://goo.gl/B2oKSX
In 2016, operators of outdoor advertising of Ukraine had to
raise the cost of their services at least twice — in the 1st half
of the year and now, at the beginning of the 2nd half.
This is based on the market trend of growth in advertising
budgets while reducing the total fleet of advertising
constructions in Ukraine and increasing in direct costs of
operators‘ services.
Additional audit conducts a team of professional photographers.
For three days, they take pictures of all the planes "Prime Group"
and promptly transmit the footage in the company monitoring
department. Photographing is carried out in ultra-high resolution. It
reveals inevitably arise over time, defects at an early stage and
quickly eliminate them.

17. The Outdoor Advertising Association of America (OAAA), trade
association for the out of home (OOH) advertising industry, today
announced it has joined the broader industry in addressing new,
emerging ad technologies and practices through the Digital
Advertising Alliance (DAA), a self-regulatory organization that
implements and enforces cross-industry principles around the
collection and use of data for interest-based advertising. This step is
intended to help inform future OAAA work and guide its members’
privacy efforts in the quickly evolving use of ad technology for OOH
advertising.
17
OutdoorAdvertisingAssociationPartnerswithDigital
AdvertisingAlliancetoPromoteResponsibleData
PrinciplesforOOHAdvertising
Source: http://goo.gl/Q3kkeb
HavasrollsoutnewglobalOOHdigitalnetworkAdcity
Havas is launching a new global out of home and
geolocation network, Adcity. Adcity has been running for
two years in France and will now include operations across
35 offices with 300 local experts across Europe, Asia, North
America and Latin America.
Source: http://goo.gl/xWmhLu

18. 18

19. 15,9
8,0
6,5
6,2
5,3
4,4
4,1
3,9
3,8
3,6
L'Oreal
Seldiko
Olaynfarm
ChaneL
Hexagone
Fitobiotehnologii
Procter&Gamble
Burda
Dalgakiran
Ukrainian
National Lotery
59%
13%
458%
39%
160%
164%
230%
321%
-42%
-32%
52,0
45,4
45,0
42,4
22,8
21,3
13,2
12,0
11,9
9,3
Trade
Cosmetics
Entertainment
Pharma
Auto
Wear
Finance
Perfumes
Jewellery
Restaurants
44%
17%
64%
76%
19%
7%
52%
-2%
-9%
-10%
 Platinum Bank activity
increased, but that didn’t
stop Finance category drop
vs prev.year
 The main reason of
category drop was OTP
Bank
 Perfumes category
decreased
 Seldiko was the only active
adv. in August
 Thanks to high activity of
new comer O'Gorod
Restaurants category grew
vs 2015
2016 vs 2015 2016 vs 2015
19
Source: Communication Alliance, Budget, Mln UAH. Data is processed by “CCM” Subsidiary Enterprise
TOPCategories TOPAdvertisers
Print market grew by 16,5% vs Jan-Aug’15

20. 20
Source: http://goo.gl/QCw02V
VogueUApresentednewEditor-in-chief
After 3,5 years since the day of launch Masha Tsukanova
leaves the post of editor-in-chief. Olga Shushko is taking the
post.

21. 21
16,3
16,0
11,6
9,6
8,9
6,5
6,1
6,0
5,9
4,4
Bayadera
Logistik
Natur Produkt
Victor & Co
Get'man
Zolotiy vik
MobilLuck
Megapolis
Poltava Distillery
Russkoe radio
Ukrainian
National Lotery
32%
82%
409%
47%
-4%
51,5
50,5
38,9
27,6
21,7
21,2
16,2
9,7
8,8
8,3
Entertainment
Alcohol
Trade
Pharma
Food
Auto
Realty
Jewellery
Finance
Education
56%
102%
111%
268%
45%
101
%
46%
48%
123
%
265%
 MobilLuck was the main
reason of Trade category
increase vs prev.year
while Zolotiy vik drive
category growth vs prev.
month
 Pharma category grew
its share twice vs prev.
year up to 9,37%
 Victor & Co and
Gidrosend were the
main reason of Food
activity increase vs prev.
year
2016 vs 2015 2016 vs 2015
Source: Communication Alliance, Budget, Mln UAH. Data is processed by “CCM” Subsidiary Enterprise
TOPCategories TOPAdvertisers
Radio market grew by 88% vs Jan-Aug’15

22. 22

23. Top managers of leading advertising holding companies specified media
inflation forecasts for 2016 and predicted possible inflation level for 2017
as a part of a regular initiative from Kwendi Meda Audit. Inflation level for
Radio, OOH and VOD could be higher compared with previous forecast.
23
LeadersofthelargestadvertisingholdingsinUkraine
specifiedmediainflationlevelforecasts
Source: https://goo.gl/9j0k0X
Economy revives following a three-year economic crisis. GDP and private consumption are expected
to grow by 3-4% next year which makes a strong basis for admarket uprise. Moreover, lack of
inventory on TV and digital (VOD), as well as cut of OOH sites drive inflation for these media even
higher as a separate cost driver along with GDP growth. Notwithstanding high media inflation,
Ukraine still enjoys comparatively low ad cost giving good opportunities for brands to grow fast.
Denis Storozhuk, Managing Director Zenith Ukraine

24. Global advertising market will grow by 4.4% and reach 539$ billion in 2016 according
to Zenith forecast. June forecast was improved by 0.3% thanks to the new data from
American television and social networks. The forecast for the coming years was also
improved and reached the level of +4.5% in 2017 and +4.6% in 2018.
24
Zenithforecast:Internet willovertakeTVin2017
Source: https://goo.gl/ougKuG
According to Admixer, online advertising continued its rapid growth in the first half
of 2016 since the recovery of advertising activity last summer. All the indicators show
growth: the number of active advertisers, the number of advertising campaigns and
the size of the budgets. Total budgets for media advertising increased by 133%, the
number of advertised brands by 29%, and advertising campaigns - 60% compared
with the first half of 2015.
InternetadvertisingisgrowingactivelyinUkraine:Brandsincrease
theirbudgets
Source: https://goo.gl/fV9HVH

25. 25
According to Nielsen Dining-out trends research Ukrainians, as well as Europeans,
prefer to eat at home. Fair price, service and quality of food are the main factors
taking into account while choosing the place for eating out
Ukrainiansrarelyeatoutofhome
Source: https://goo.gl/K4qSI2
Global Health and Ingredient-Sentiment claims, that 70% of Ukrainians try to
control their food ration for healthy life. Every third Ukrainian adheres to a diet
Ukrainianconsumerprefersnaturalproducts
Source: https://goo.gl/iLhs7F

26. 26
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27. 27
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