The main Media Market Trends & News we would like to share with you in this issue are the following: Brief TV Market overview o Volume of Ukraine TV commercial market is going to increase by 35-40% in 2017 Digital Market overview featuring recent launches and new Advertising possibilities o Brand Lift can be used for analyzing effectiveness of TV advertising o Vkontakte starts auto play video advertising OOH, Print & Radio Markets demonstrate growth Generation Z: Who are they? & Other up to date research results

1. Media Market Digest September2016

2. 2

3. StarLightMedia group
Broke a three-year
Record TV viewing
Jan-Sep’2016 in term
of EqTRP’s vs Jan-
Sep’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 average 87%In Sep’2016
It stays close to critical 90% level since 23 week
Sep’16 vs Aug’16
in EqTRP’s

4. 257,7
88,
65,8
61,9
50,9
50,6
42,6
36,7
35,8
29,2
Pharma
Food
Telecom
Hygiene
Cosmetics
Trade
Cold AFB
Confectionery
Entertainment
Auto
15%
14%
4%
30%
111%
9%
42%
8%
-6%
-6%
4
Source: GFK/Nielsen, Direct Advertising, excl. Social & Media, TA: 18-50 50k+. ‘000EqTRPs. Data owner is ITC.
Processed by “CCM” Subsidiary Enterprise
16%
0%
13%
73%
5%
-8%
-2%
-9%
-57%
-1%
TOP Categories 2016 vs 2015 Sep’16 vs Aug’16
 Pharma category increased thanks
to seasonal cold and flu group
activity growth vs prev. month
 AVK concern increased its activity
with the new brand Baristi, but that
didn’t stop Hot Beverages category
drop vs 2015.
 Nestle provided category fall vs
Aug’16
 Cosmetics category increased
thanks to skin care and hair care
products groups growth vs prev.
year

5. 38,7
37,2
32,3
27,3
24,1
21,5
20,3
20,2
19,1
18,8
Procter&Gamble
Nestle
Pharmak
Reckitt Benckiser
L'Oreal
GlaxoSmithKline
Vodafone
Kyivstar
Unilever
Sanofi
23%
29%
15%
124%
4%
32%
-11%
-2%
-4%
-21%
5
Source: GFK/Nielsen, Direct Advertising, excl. Social & Media, TA: 18-50 50k+. ‘000EqTRPs. Data owner is ITC.
Processed by “CCM” Subsidiary Enterprise
1%
48%
30%
32%
133%
-41%
-18%
-2%
-2%
-5%
TOP Advertisers 2016 vs 2015 Sep’16 vs Aug’16
 Terra Food activity decreased 5 times
but that didn’t stop Food category
increase vs 2015
 Cold AFB activity decrease due to
seasonal changes.
 Coca-cola was the main reason of
category drop vs prev. month
 Kimberly-Clark start to increase
activity and provided Hygiene
category growth vs prev. month
 IT category increased twice this
month thanks to Ukrtelecom activity
growth

6. 6
Source: http://goo.gl/RnpoLP
Prediction from top-brass of the largest European satellite operator: pay-TV market will come into sight in
Ukraine sooner or later, and piracy will be finished. It took decennary in the fight against them in Sweden.
Interview with top managers of the European satellite operator SES about the
prospectsofpay-TV
Source: http://goo.gl/efPFV8
«The growth of TV commercial market by 35% according to one data and by 40% according to another is
expected for the next year according to the optimistic estimates», - it is said in press release based on the results
of KIEV MEDIA WEEK.
TV commercial market is going to increase by more than 5 mln. dollars in currency equivalent by general
estimates by 2017.
VolumeofUkraineTVcommercialmarketisgoingtoincreaseby35-40%in2017
First seller's expectation for 2016 TV market growth is 35%-45%. Avoiding extra Sold out in
2017, sellers expect the same inflation level. Real market growth and inflation will depend
on economical situation.
Alexander Polinovskiy, TV Buying Group Head Zenith Ukraine

7. Who is the most attractive viewer in terms of consumption now? How possible single interpretation for
the media groups is here? Are there any options? What kind of consumption is on the top of an angle
- content, goods?
- The most attractive TV viewer is commercial audience in the age from 18 to 54. The ones, who get wide
consumption goods predominantly, and, of course, mostly it’s female audience.
AlexanderTkachenko:revisaloflathforcommercialaudiencesabove54
yearsisn’trealisticforthenearestfuture
Source: http://goo.gl/6CGk9t
7

8. 8
Source: http://goo.gl/Fc254c
STB became the leader in three audiences at the same time in
MB Top Channel research according to the September results.
«Ukraine» channel – at the head of TOP in another one. STB,
ICTV and «Novyi Kanal» has the most noticeable growth of
share, «1+1» − the most noticeable fall in the first month of
autumn.
Top-channelsofSeptember:shootof STB
StarLightMediakeepsbreakingrecords
Source: http://goo.gl/pKdR9B
Share of StarLightMedia TV channels has exceeded 30%
according to the results of 38th week. This is the highest
indicator of group for the last three years.
«Big six» channels in the second month of new season fully filled ether
with new TV projects. The 16th season of «Fight of Psychics» has
started on STB, the 3rd season of «Voice. Children» − on «1+1» and own
historical drama «Centuries of Yakov». «Inter» launched Ukrainian
soap opera «Second life» at week days prime time, and «Ukraine»
channel has shown two Ukrainian movies.
Gameswithshare.«Voice.Children»vs«Fightof
Psychics»
Source: http://goo.gl/AFHqY0

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10. 10
219,7
143,1
135,0
119,7
104,1
100,0
83,0
82,0
80,2
73,6
CarlsbergGroup
Citrus
Nestle
Douwe Egberts
Kyivstar
Reckitt Benckiser
Wargaming
L'Oreal
Mondelez
Allo
454,0
292,8
241,7
213,2
197,0
213,9
175,8
147,9
151,6
149,3
Trade
Leisure time
Alcohol
Hygiene
Cold AFB
Telecommunic
ations
Culinary
Confectionary
Hot Beverages
Automotive
Apr-Sep 2016
Source: Gemius Ad Real, MLN Impressions. Data is processed by “CCM” Subsidiary Enterprise
Apr-Sep 2016
TOPCategories TOPAdvertisers&
VOD

11. 11
Rozetka
Yandex N.V.
101XP Games
Limited
Allo
GEPUR
Citrus
Mobtop
Vulkan Casino
Bitcoin
RabotaUA
Trade
Leisure time
Finance
Computers
Media
Tourism
Telecommunic
ations
Automotive
Real estate
Wear
Aug-Sep 2016
Source: Gemius Ad Real, MLN Impressions. Data is processed by “CCM” Subsidiary Enterprise
Aug-Sep 2016
TOPCategories TOPAdvertisers&
Display

12. Now marketers can track how advertising on TV affects the number of brand-related
searches on Google and YouTube, and to compare these data with the results of
campaigns on YouTube. According to preliminary tests, each ads impression on YouTube
brings almost twice more searches than advertising on TV.
12
Now BrandLiftcanbeusedforanalyzing effectiveness of TVadvertising
Source: https://goo.gl/pAa4Bw
Googleleadingincoverage,YouTube takesthesecond placeinranking
Source: https://goo.gl/KGOCb1
Factum Group released September research about Ukrainian Internet audience. Thus, no
significant changes were observed in September Top 25 most visited sites. Google keeps
leading in coverage , YouTube takes the second place in ranking. Nova poshta website
takes TOP-25 place in the ranking.
Measurement of digital advertising impact on brand still raise lots of questions. Thus, new possibilities presented by
Google for evaluation of TV and Digital-related dynamics of consumers search demand is valuable to analyze the
effectiveness of cross-media campaigns and get the most reliable results.
Maryna Grygorenko, Digital Director Zenith Ukraine

13. Facebook announced the launch of Marketplace - a new section dedicated to buy and sell
goods for people nearby. Marketplace will be rolling out to everyone over 18 years old in
the US, UK, Australia, and New Zealand on the Facebook app for iPhone and Android.
Later Marketplace will be launched in other countries.
13
Facebook isIntroducing Marketplace
Source: https://goo.gl/bsF3kO
Comscore tells about the dramatic impact of mobile, and in particular mobile apps, on the
digital retail landscape. It reveals opportunities of using mobile apps in online commerce.
Mobile,appsandthemodernpurchasefunnel
Source: https://goo.gl/ZEUVzB

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Vkontaktestartsautoplayvideoadvertising
Source: https://goo.gl/gCmy7o
VKontakte Videos are one of the most popular services in the social network. Users
download 1.4 million videos a day. VKontakte launched autoplay videos in the news and
on the pages of profiles and communities to make user experience more exciting and
dynamic and to attract more attention to the target users to the publications of authors.
SnapchatBeatsInstagramandFacebookastheTopSocialPlatformfor
Teens
Source: https://goo.gl/fDEDoO
Globally Snapchat's growth as the preferred social platform for teenagers continues to
outpace other social platforms, and it's cutting into Facebook usage. According to Piper
Jaffray report, 80% of teens use Snapchat at least once a month, up from 74% in the fall of
2015. While 79% of teenagers said that they use Instagram once a month.

15. 15

16. 20,3
17,3
15,9
10,1
9,5
9,1
8,6
8,5
8,2
7,3
Fozzy Group
Epicenter
Sport Life
Lifecell
Riel
Vodafone
Samsung
Privatbank
Metro
K.A.N.
Development
43%
3%
31%
52%
148%
4%
44%
-7%
-18%
-11%
196,1
131,2
77,1
58,0
41,2
32,4
25,3
24,3
21,3
16,1
Trade
Realty
Entertainment
Auto
Telecom
Finance
Sport
Restaurants
Medicine
Tourism
20%
71%
33%
46%
4%
9%
28%
25%
36%
60%
 Renault, Nissan,
Mitsubishi Motors drove
Auto category growth vs
prev. month while Toyota
drove category vs prev.
Year
 Perfect Group has
continued to increase
activity since Jul’16 that
has a positive impact on
Finance category growth
 Sport Life decreased
activity vs Aug’16 but is
still on the top in Sport
category vs prev. year
 Join up and Anex Tour
provided Tourism category
increase by 60% vs prev.
year
16
Source: Communication Alliance-OOH, Budget, Mln UAH. Data is processed by “CCM” Subsidiary
Enterprise
TOPCategories 2016 vs 2015 2016 vs 2015TOPAdvertisers
OOH market grew by 28% vs Jan-Sep’15

17. For the 6 months of this year increased the number of outdoor
advertising share in the structure of the advertising market in Ukraine:
to 11.1% from 10.4% in the 2015 Outdoor is still one of the most
accessible media in terms of building coverage and the cost of contact
for the general audience.
17
OutdooradvertisinginUkraine:dynamicsandprospects
Source: https://goo.gl/u2GO9L
ShortsummaryofOut-Of-HomeForum2016
The result of teamwork, which was presented at the forum were
the main directions for the development of an integrated road map
modernization visual environment of Ukrainian cities. And
understanding that its implementation is necessary to create an
open and public space of dialogue. The space in which the public,
experts, businessmen and municipalities will discuss ways to
implement joint solutions.
Source: https://goo.gl/MSaOQe

18. 18

19. 17,9
10,4
7,4
7,2
6,9
5,1
4,6
4,3
4,2
4,2
L'Oreal
Seldiko
Olaynfarm
ChaneL
Hexagone
Fitobiotehnologii
Dalgakiran
Procter&Gamble
Apivita
Burda
47%
38%
323%
35%
126%
147%
202%
-40%
-11%
-32%
63,4
52,8
51,7
47,3
26,1
25,2
15,1
13,2
13,0
10,6
Trade
Entertainment
Cosmetics
Pharma
Auto
Wear
Finance
Perfumes
Jewellery
Restaurants
2%
15%
41%
59%
60%
18%
58%
-5%
-9%
-1%
 Louis Vuitton started
increase activity that
provides Trade category
growth vs prev. month
 Olaynfarm was the main
driver of Pharma
category increase us
prev. month and vs prev.
Year
 Only 4 advertisers
showed activity in
Perfumes category in
Sep’16 but they
provides category
growth vs prev. month
19
Source: Communication Alliance, Budget, Mln UAH. Data is processed by “CCM” Subsidiary Enterprise
2016 vs 2015 2016 vs 2015TOPCategories TOPAdvertisers
Print market grew by 16% vs Jan-Sep’15

20. 20
“Edinstvennaya”presentednewEditor-in-chief
“Edinstvennaya” will be headed by new editor-in-chief Julia
Melashchenko started from November. Julia Melashchenko work in
the company for more than 10 years and was the head of “Young
Lady” in the past
CosmopolitanUkraine,Harper'sBazaarandELLEwill
besoldonlinethroughMagzter
To expand the online audience around the world Hearst Shkulev
Ukraine, one of the leading publishing houses in Ukraine, started
cooperation with Magzter, the biggest online magazines store.
Source: https://goo.gl/Qjh2vA
Source: https://goo.gl/Lo7a53

21. 21
18,2
18,0
13,2
11,0
10,6
7,0
7,0
6,9
6,3
5,1
Natur Produkt
Bayadera
Logistik
Victor & Co
Get'man
Zolotiy vik
MobilLuck
Megapolis
Poltava Distillery
Russkoe radio
Ukrainian
National Lotery
38%
94%
342%
51%
-6%
58,4
57,0
44,5
30,8
25,0
24,2
19,4
10,8
10,2
9,4
Entertainment
Alcohol
Trade
Pharma
Food
Auto
Realty
Jewellery
Finance
Education
48%
101%
107%
204%
48%
101%
49%
46%
125%
 Get’man was the main
driver of Alcohol
category growth vs prev.
month and prev. Year
 Mironovsky
hleboproduct drove
Food category increase
vs prev. Month
 Realty category
increased thanks to
growth of advertisers
number from 32 to 37 vs
2015
 rabota.ua started its
activity in Sep’16 that
had a positive impact in
Education category
growth
Source: Communication Alliance, Budget, Mln UAH. Data is processed by “CCM” Subsidiary Enterprise
2016 vs 2015 2016 vs 2015TOPCategories TOPAdvertisers
Radio market grew by 85% vs Jan-Sep’15

22. 22

23. The habit of buying via mobile phones is constantly growing in the world. According
to a global survey 57% of smartphones and tablets users made purchases via their
devices. 23% of mobile shoppers buy via mobile devices every week. That means
that the prospects of mobile commerce market in Ukraine are very attractive.
23
MobilecommerceinUkraine:goodnewsforretail
Source: https://goo.gl/Xo8ldm
The research company iVOX Ukraine conducted an online survey to find out what
Ukrainian Internet users are doing to maintain their health.
HowdoUkrainianscareabouttheirhealth?
Source: https://goo.gl/sQz5pZ
Internews Network presented the results of national sociological research about
media in Ukraine in 2016
PopularityandcredibilityofUkrainianonlinemediaisgrowing
Source: https://goo.gl/xrSrlT

24. 24
Generation Z – the first generation that was born in the Internet era. They do not
remember what life was like without the gadgets and spend with smartphones and
tablets more than 8 hours a day. Speed work is becoming more important than ever.
GenerationZ:whoarethey?
Source: https://goo.gl/0qnv08
ARF analyzed 5000 TV, radio, print and digital campaigns in 45 countries.
Investments in different platforms provide greater ROI than investing in a single
platform. For example, two platforms campaign gives a 19% ROI increase compared
with one platform.
Research:whatadvertisingcampaignsprovideagreaterROI
Source: https://goo.gl/CwXJOO
Targeted advertising not only increases the chances of brands to sell the product,
but also it can affect clients’ thoughts about themselves
Howbehavioraltargetingaffectsthepsychologyofbuyers
Source: https://goo.gl/RFS9s5

25. 25
https://goo.gl/pfs27c
https://goo.gl/CyRa1Y
https://goo.gl/vKfPcE
Advertising receptivity is stronger in the morning
Traditionally the best time for advertising is considered to be evening because of the
volume of the audience. But the study shows that the receptivity level during this period is
estimated at 45 points while in the morning it is 59 points
Research: Online advertising should be visible for 14 seconds
For advertising to be watched for 1 second, it should be visible for 14 seconds, the InSkin
Media study notes. For advertising to be watched for 2 seconds, it should be visible 33
seconds
90% of mobile shoppers begin purchasing from search engine
According to the Google survey, 70% of offline buyers use mobile devices to search for
information before buying. 92% of them purchase the relevant goods
https://goo.gl/vKfPcEInfographics

26. 26
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27. 27
Thank You!