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Advertisement Cake 2015 ADVERTISEMENT CAKE 2015 Advertising Revenue Survey of the Hungarian Television Market 2015 18 February 2016 ADVERTISEMENT CAKE 2015 ► Methodology follows the practice of recent years. ► The data used to determine the size of the advertising market was provided directly by television companies, members of the Association of the Hungarian Electronic Broadcasters (hereinafter referred to as MEME). ► 56 television channels provided data. ► Data collection and analysis was performed by EY. ► All collected data have been destroyed after the analysis. Page 2. ADVERTISEMENT CAKE 2015 List of data providers: 56 channels ► ATV ► M1 ► Sorozat+ ► AXN ► M2 ► Spektrum ► Cartoon Network ► M3 ► Spektrum Home ► CBS Reality ► M4 Sport ► Sport 1 ► Comedy Central ► Minimax ► Sport 2 ► Cool ► Megamax* ► SportM* ► Discovery Channel ► MTV ► Sport Klub ► Disney Channel ► Music Channel ► Story 4 ► DOQ ► Muzsika ► Story 5 ► Duna ► Nat Geo Wild ► SUPERTV2 ► Duna World ► National Geographic ► TV Paprika ► FEM3 ► Nickelodeon ► TV2 ► Film Café ► OzoneNetwork ► Universal ► Film Mánia ► Paramount Channel ► Viasat3 ► Film+ ► PRO4 ► Viasat6 ► Film+2 ► PV TV* ► Viva ► FOX ► RTL II ► Galaxy ► RTL Klub ► ID Investigation ► RTL + ► LifeNetwork ► Sláger TV * No advertising sales Page 3. ADVERTISEMENT CAKE 2015 Net-net revenue was used for our analysis ► Net-net revenue, i.e. revenue after deducting discounts and agency commissions, was used. ► No barter revenue was included. ► No other revenue data were included (e.g. premium rate calls or text message charges, revenues from events or merchandise). ► Sponsorship contained revenue from product placement but in the case of sponsored programs it did not contain production costs. ► All data are presented in million HUF. Page 4. ADVERTISEMENT CAKE 2015 A 51.6 billion adcake in year 2015 ► Based on the calculation of EY, the total revenue of the television advertising market in 2015 is: 51,581 MILLION HUF ► The market share of the participating television companies based on television viewership data is approximately 99%.* * Within the 18–49 age range, 2-26 hours range (data provided by MEME) Page 5. ADVERTISEMENT CAKE 2015 Adcake 2015 (in million HUF and percentage) 22,314; 43% 842; 2% 1,979; 4% Previous terrestrial / Spot Previous terrestrial / Non-spot Other (cable) / Spot 26,446; 51% Other (cable) / Non-spot Page 6. ADVERTISEMENT CAKE 2015 Television advertising revenue increased by 3% Advertising revenue of the last years (million HUF) 53000 52000 51000 50000 49000 48000 47000 51,581 46000 -6% +10% 50,024 +3% 45000 48,723 44000 45,628 43000 42000 2012 2013 2014 2015 Page 7. ADVERTISEMENT CAKE 2015 30% growth at the other (cable) channels Television Advertising Revenue by Type of Broadcasting Previous terrestrial vs. Other (cable) broadcasting (in million HUF) 60000 50000 +4% +28% +30% 13,438 17,877 40000 13,950 23,156 30000 -10% +1% -12% 20000 35,285 31,678 32,147 28,425 10000 0 2012 2013 2014 2015 Previous terrestrial Other (cable) Page 8. ADVERTISEMENT CAKE 2015 Increased advertising revenue share of the other (cable) channels Television Advertising Revenue by Type of Broadcasting Previous terrestrial vs. Other (cable) broadcasting (in million HUF) 100% 90% 13,438 13,950 17,877 28% 80% 31% 36% 23,156 45% 70% 60% 50% 40% 35,285 31,678 32,147 72% 30% 69% 64% 28,425 55% 20% 10% 0% 2012 2013 2014 2015 Previous terrestrial Other (cable) Page 9. ADVERTISEMENT CAKE 2015 Non-spot advertising revenue decreased by 4% compared to last year Television Advertising Revenue by Type of Advertisement Spot vs. Non-spot advertising (in million HUF) 60000 50000 40000 30000 45,025 -4% +9% 47,081 +4% 48,760 43,335 20000 10000 -39% +29% -4% 0 3,698 2,273 2,943 2,821 2012 2013 2014 2015 Non-spot Spot Page 10. ADVERTISEMENT CAKE 2015 Share of advertising revenue generated by spots increased by 1 % within the advertisement cake Television Advertising Revenue by Type of Advertisement Spot vs. Non-spot advertising (in million HUF) 100% 90% 80% 70% 60% 45,025 43,355 47,081 48,760 50% 92% 95% 94% 95% 40% 30% 20% 10% 3,698 2,943 0% 2,273 2,821 2012 2013 2014 2015 Non-spot Spot Page 11. ADVERTISEMENT CAKE 2015 Summary ► In 2015 the television advertising revenue exceeded 51.5 billion HUF. ► Advertising revenue increased by 1,557 million HUF in 2015, which is equivalent to 3% growth. ► 55% of the advertising revenue in 2015 is coming from advertising of the previous terrestrial channels and 45% from the ads of the other (cable) broadcasting televisions. ► Regarding the split of advertising revenue a shift can be observed between the previous terrestrial and other (cable) televisions for the benefit of the other (cable) channels. These channels increased their advertising revenues by 30%. ► After the 29% increase of non-spot advertising revenue in 2014, this year showed its relapse by 4% compared to the previous year. Page 12. ADVERTISEMENT CAKE 2015 Slide title here Thank you for your attention! Page 13. ADVERTISEMENT CAKE 2015 EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. © 2016 Ernst & Young Advisory Ltd. All Rights Reserved. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. ey.com/hu Page 14. ADVERTISEMENT CAKE 2015 .
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