2008

media fact book media fact book ROMANIA 2008 This book is a product of Initiative Romania.

In putting together the Media Fact Book we have used audience data and information supplied by The Romanian Association for Audience Measurement (ARMA), The Romanian Bureau of Circulation Audit (BRAT), The Romanian Association for Radio Audience Measurement (ARA), TNS-AGB INTERNATIONAL, Alfacont, GfK Romania, Mercury Research, IMAS, Initiative (Evghenii Crecesco) ARBOmedia, netBridge, CableDirect, Hollywood Multiplex, International Advertising Association (IAA), The National Audio-Visio Council (CNA), The National Institute of Statistics (INS) and The National Bank of Romania (BNR).

Acknowledgements to the following members of the team who significantly contributed to this book:

Octavian Popescu, Alexandra Olteanu, Nicoleta Florescu, Maruan Trascu, Cristina Chinde, Laurentiu Pop, Rodica Caraghina, Marcela Tuila.

INITIATIVE MEDIA S.A, , 2008 All rights reserved

This publication is protected by copyright. No parts of this book may be reproduced without the prior written consent of the copyright owner.

Readers should understand that the data contained in the Media Fact Book is as actual and accurate as the sources could provide it.

Your comments and suggestions are welcomed as a valuable input for the future issues of this book. www.initiative.com table of contents 1

editor’s foreword 3 about initiative 5 media market 6 media research 10 television 16 radio 22 press 30 outdoor & indoor 61 cinema 65 internet 68 new media 73 romania - economic landscape 76 professional associations 81 legislations and taxes 87 the national audio-visual council 99 moldavian media market 100 media dictionary 108 www.initiative.com editor’s foreword 3

Dear reader, It seems 2007 has brought a new media jargon in our business vocabulary where Television is regarded. It’s the “program break” and occurs whenever a trailer of advertising is paused by a program window. We’ve gotten this far in 2007. Television seems to have abandoned its original aim to provide news, entertainment and education for the mass audience in order to become a 24/7 advertising broadcasting service. In 2007, except for Jan, Feb, Jul, and Aug, the ad loading at the top five commercial channels, in Prime Time, reached nearly 14 minutes per hour of program in Prime Time. The legal limitation for broadcasting advertising had been exceeded at times by as much as 148%, translating into a 31 minute ad break. Is it then a wonder that people don’t watch TV as much as they used to? The most sought-after age segment for advertisers 18-49 has spent ca. 9% less time watching TV than they did a year ago. Can broadcasters afford to further alienate this ‘goldmine’? One way to turn the trend around is to invest if the single, most popular sport amongst Romanian public: football. It’s been an amazing battle over the rights to broadcast various football competitions. Only few of many in need to make football the driving force behind their trailing audiences succeeded to secure those rights. Less audience means less GRPs to sell, which in turn means more spots, for each advertiser has to reach its objectives. Price is just one lever in regulating these anomalies. Did you notice that more audience migrates from the major, generalist channels towards the specialty ones? They seem to be able to respond to public’s need to watch programs they prefer, which are paused by advertising instead of the other way around. Programming should be the other lever in keeping the audience tuned in and generalist channels should find a way to achieve that. It is no easy job as at end of 2007 some 38 channels were selling advertising. In the beginning of 2008 this number already jumped up to 42. 2007 started on a very optimist note when assessing the budgets in the market, despite the high inflation and the reduced inventory from the major TV groups. It turned out the market could no longer sustain an estimated 40% growth and so in the end the TV market grew by 35%. For 2008 we estimate a growth of ca. 25% of the TV market. The market growth will relent further in 2008 along with the increasing audience fragmentation and clutter. In contrast with the calming growth of traditional media, online keeps thrusting ahead as the inventory is increasing in both quantity and diversity and the Internet penetration is rapidly expanding within 18-49 age groups. In 2007 the most active spending category in online was Banking/Finance. In 2008 we expect online to maintain a 50% growth rate as well as into the following 3 to 5 years. The e-revolution is not here yet, but it’s not too far away either. All in all, after a 32% growth in 2007, a media market growth of nearly 22% of is expected in 2008 to a total of ca. 590 Mio €, of which TV will take some 385 Mio €, Print 90 Mio €, Outdoor 70 Mio € (including Digital Outdoor and Indoor), Radio 38 Mio € and Online ca. 15 Mio €. Obviously, the media market has passed the maximum growth moment and is slowly maturing, price inflation is cooling down, ownership consolidation is occurring in almost every market segment, be it TV, Outdoor, Print, Radio or Online, media audit companies are increasingly involved in the business, competition for content is more acute than ever while margins are shrinking. Efficiency, accountability, innovation, team stability and responsible service delivery will make the difference in the market place. Initiative is here doing just that. Enjoy this edition and let us know what you think. Initiative Team www.initiative.com about initiative 5

Initiative Romania is affiliated to Initiative Worldwide, part of Interpublic Group of Co’s (IPG). Along with other reputed agency networks such as Lowe & Partners Worldwide, Lowe PR and Brand Connection, all part of IPG, Initiative Worldwide is a truly global network, offering capitalised brain synergy, innovative and effective consumer approach in more than 51 countries on 5 continents.

Initiative Romania started operations 14 years ago as the first true media management specialist company in the market. Currently the 3rd largest media agency in Romania, Initiative focuses on offering its clients thorough brand and marketing thinking, innovation through deep understanding of the modern consumer touch-points, negotiation power, commitment on delivery and measurable performance.

The client portfolio of Initiative Romania includes strong brands and successful companies: Orange, Johnson&Johnson, BMW, Millennium Bank, GlaxoSmithKline, Pernod Ricard, MOL Romania, Sarantis, Georgia Pacific, Carrefour (commercial galleries), Provident Financial, Power Horse, Kika, Reinert etc. Initiative Romania provides the whole range of media services: quantitative research, media strategy, conceptual planning, implementation planning, buying, special media projects (event and media sponsorship, product integration, etc).

Initiative Romania offers enhanced quality standards through usage of top-of-the-range proprietary tools aimed to better determine the optimum investment required to achieve the communication objective.

Initiative Romania offers added value: • Media Landscape – quarterly analysis of the media market; • Media Fact Book – starting 1997, Initiative Romania is the exclusive publisher of this media annual guide, unique on the Romanian market. In 2007 Initiative, celebrated the 10th annual edition of the Media Fact Book. • Wireless communication portal aimed to improve the efficiency and smoothness of information management and client communication. • Media training – Presentation of media basics (terminology, methods) and on-the-job training in Initiative’s office. • Media PR – Initiative provides media coverage to PR events organised by clients, upon request and project specifics. • Outdoor Mapping – providing clients a better campaign management • Digital concept & design management – offering clients integrated digital solutions by managing the entire process from ideation, concept and design to media buying, planning and implementation of digital campaigns..

2007 was a dynamic year of growth for Initiative, the business increasing by 36% over 2006. We put forward to our clients a solid team of experienced media professionals with a deep understanding of client’s marketing communication needs and advanced knowledge of efficient and creative planning and buying.

We are committed to create value for brands by engaging consumers at best prices.

Find out more about Initiative Romania at www.initiative.com, call at +4021 301 01 00 or write to us at [email protected]. media market www.initiative.com

“Advertising is the art of arresting the human intelligence just long enough to get money from it.” Chuck Blore, a partner in the advertising firm Chuck Blore & Don Ruchman, Inc., quoted by Ben H. Bagdikian, “The Media Monopoly, Sixth Edition”, (Beacon Press, 2000)

Overview

The Romanian media market has grown in size and diversity in recent years. Despite that the largest budgets were allocated primarily to television, all other media such as outdoor, internet, radio and press kept growing and diversifying in keeping with the general development of the market over the past few years.

The media landscape is characterized by: • Media pricing inflation • Rapidly increasing advertisers base and the subsequent demand for inventory • Media fragmentation • Decreasing inventory on main TV channels • Lack of quality inventory in on-line, radio, OOH • Sold out during Q2 and Q4

Graph 1: Total net Ad-spend by medium (Mil €) 2003-2008 - Initiative Estimation

In 2007, the Romanian media market grew in net value by 32%. The fastest growth belongs to the Internet. Initiative estimates a 50-60% increase of the on-line spend compared to 2006. According to the World Association of Newspapers (WAN), the on-line advertising revenues increased by 32% in 2007 and by more than 200% in the 4 years period 2003-2007. Ad-spend has increased also in the Print market; in 2007 we estimate 11% increase of the net ad spend, compared to last year. For the International market a similar increase of the ad spends is recorded, especially for free sheets and on-line journals. WAN estimates that the worldwide revenue from on-line newspaper advertising will double over the next five years to reach 12% of newspapers total revenue. www.initiative.com media market 7

In Romania, the most visited websites are those of newspapers, top ranking being , Prosport and . It is worth mentioning that www.gsp.ro contributes with a important percent to newspaper’s total revenue.

On the International market, the Press market outperforms Television, with 41% market share. Despite that, in Romania, television remains the medium attracting the largest budget share (65%). Initiative estimates an increase of the TV net ad spend by 36% versus 2006. The main media groups increased their benefit from a lucrative TV market by launching new channels. The biggest launch was that of by Dogan Media. Intact launched Antena 2 and Realitatea group launched the niche channel Romantica. Media Pro re-launched TV Sport as Sport.ro and acquired MTV license in 2008.

For print market, 2007 was marked by important acquisitions, sales and launches of titles. The most important were the acquisition of Pro Sport newspaper by Publimedia and the transfer of two lifestyle titles - Playboy and Maxim - from Media Pro Group to Attica Media.

In 2007, the total Radio net ad-spend increased by 31% vs. 2006, reaching 30 million €. The increase is due to increasing budgets allocated towards the biggest radio networks, there generating sold out situations almost all across year and inducing cost inflation. Worldwide radio ad-spend tends to decrease while in Romania we estimate a similar market share for Radio as in 2006 (6 %+).

At international level, the Outdoor market attracts ever increasing budgets, its growth rate being surpassed only by Internet. On the Romanian OOH market the increasing trend continued in 2007. The OOH market growth rate is estimated at 28% versus 2006 and was stimulated by the general development of advertising market.

Despite that 2007 was the starting year for banning of tobacco advertising, the demand exceeded the inventory available in some periods of the year.

In 2007, Cinema accounted for 0.2% of the total net media spend (under 1 Mio € according to Initiative’s estimation).

Graph 2: Market share in 2006 (net ad-spend by medium) Graph 3: Market share in 2007 (net ad-spend by medium)

Source: Initiative database Source: Initiative database media market www.initiative.com

Top Investors 2007 vs. 2006 Beer category went down to 5th position in top. Carbonated Soft Drinks and Cars/4x4 vehicle In last two years the biggest categories were categories went out of the Top 10. primarily belonging to the FMCG sector; however, some top-spending categories switched emerged 2007 was a good year for Laundry products and in 2007. Thus, Cosmetics category climbs two Household Cleaning categories. Mobile tele- places and leads the 2007 ranking. It is followed by communication services keep a similar market Hair Care and the Banking & Insurance Services. share, around 5.6%, but falls on to 4th place. Actually, 2007 was the year with important Top 10 categories cumulate 54% of total investments in Insurance category. ad-spending.

Top 10 Categories in 2007 vs. 2006 - all media (TV, Press, Radio) - Rate Card Budget 2006 2007 Category Exp. (000’€) Category Exp. (000’€) Mobile Telecomunication Services 233,465 Cosmetics 480,161 Beer 229,126 Hair Care 434,801 Cosmetics 216,487 Banking & Insurance Services 423,019 Hair Care 206,192 Mobile Telecomunication Services 349,907 Cars & 4x4 Vehicles 173,651 Beer 297,126 Milk Products 172,267 Laundry Products 290,433 Medical & Optical Products & Services 163,145 Hygienics 286,450 Hygienics 159,166 Household Cleaners 275,810 Laundry Products 150,956 Medical & Optical Products & Services 268,671 Carbonate Soft Drinks 149,339 Milk Products 252,564 Source: TV – TNS AGB INTERNATIONAL, Press and radio: AlfaCont As for advertisers, P&G maintains the leading position from 1999 through to 2007, with the biggest TV budget. L’Oreal climbs on second place and Unilever maintains its 3rd position in top. Quadrant Amroq Beverages goes out of top and Colgate Palmolive is a new entry, going directly to the 7th place.

Top 10 Advertisers in 2007 vs. 2006 - all media (TV, Press, Radio) - Rate Card Budget 2006 2007 Advertisers Exp. (000’€) Advertisers Exp. (000’€) Procter & Gamble 260,380 Procter & Gamble 526,909 European Drinks & Foods 194,977 L’Oreal 345,859 Unilever 146,353 Unilever 315,663 L’Oreal 138,409 European Drinks & Foods 188,160 Danone 124,600 Danone 177,601 Kraft Foods Romania 114,570 Coca-Cola Co. 163,681 Coca-Cola Co. 92,963 Colgate Palmolive 143,341 Quadrant Amroq Beverages 88,433 Kraft Foods Romania 134,301 Henkel 81,762 Henkel 128,939 Nestle Romania 79,558 Nestle Romania 120,204 Source: TV – TNS AGB INTERNATIONAL, Press and radio: AlfaCont

Top 10 Brands in 2007 vs. 2006 - all media (TV, Press, Radio) - Rate Card Budget 2006 2007 Brands Exp. (000’€) Brands Exp. (000’€) Danone 115,539 Danone 189,594 Orange 71,165 L’Oreal 180,115 Garnier 62,044 Garnier 162,421 Connex/Vodafone 60,330 Nivea 120,498 L’Oreal 56,561 Vodafone 102,784 Pepsi 53,112 Orange 92,124 Jacobs 51,405 BCR Erste 78,751 Cosmote 51,176 Jacobs 76,521 Nivea 40,599 Cosmote 68,392 Germanos 38,769 Colgate 64,793 Source: TV – TNS AGB INTERNATIONAL, Press and radio: AlfaCont www.initiative.com media market 9

Press continues to be dominated by the Mobile telecommunication category. Banking services considerably increased their total spend. Banca Comerciala Romana was the most important advertiser in its category due to the re-branding process under Erste Bank management.

Top 10 Brands in 2007, by medium - Rate Card Budget Television Exp. (000’€) Press Exp. (000’€) Radio Exp. (000’€) Procter & Gamble 529,508 Orange 8,983 Orange 4,173 L’Oreal 347,808 Vodafone 7,565 Group Renault 3,807 Unilever 317,547 L’Oreal 5,774 Vodafone 3,764 European Drink & Foods 191,876 BCR Erste 5,055 Romtelecom 2,585 Danone 171,070 Romtelecom 4,348 Tiriac Group Auto 2,554 Coca-Cola Company 164,122 Unilever 3,540 Romaqua Group Borsec 2,372 Colgate Palmolive 144,269 Procter & Gamble 3,145 Carrefour 2,192 Kraft Foods Romania 134,494 Beiersdorf Romania 2,897 Eurial Invest/Trust Motors 1,592 Henkel 129,651 Petrom 2,673 BCR Erste 1,501 Nestle Romania 121,125 Porsche Romania 2,656 Coca Cola Company 1,495 Source: TV – TNS AGB INTERNATIONAL, Press and radio: AlfaCont (media barters were excluded)

Perspectives 2008 • According to Initiative’s estimation, the total net ad spend will increase by 23-24%. The growth rate will slow down in the forthcoming years, until Romanian media market will reach a growth rate of 5-8%, in line with the developed markets of Western Europe (5-7 years).

• TV remains the strongest media channel. In 2008, we estimate TV will attract 66% of all advertising revenues, roughly 383-385 million € net.

• The press spend will maintain an ascending trend in 2008 mostly due to election campaigns (+10% net)

• Despite the descending trend of its audience, radio ad spend is expected to grow in 2008 by ca. 26%.

• In 2008, the increase rate of the net OOH ad revenues is estimated at 18%.

• The Indoor market will continue its development at a higher rate than other media. We estimate a 40% growth for this media by end of 2008, due to diversification and emergence of new locations inside malls and hypermarkets.

• The Online advertising continues to grow by 50-60% annually. The main investing categories will be: Banking/Finance (the Financial services category became leader in 2007, surpassing Telecom), Telecommunications, Automotive, IT&C; a significant budget growth will involve the FMCG category (personal care, food and drink) followed by Online Retail, Tourism.

• For 2008 we estimate the Cinema advertising revenue will remain constant. The main obstacles responsible for slow development of cinema advertisement are: • Low number of cinema halls • Inconsistent development of cinema network – 7 counties were cinema halls do not exist while most are concentrated in Bucharest • Escalating price of cinema admission • High rate of piracy for new released movies • Competition of home-cinema viewing.

Even if currently the Romanian media market is geared towards traditional media we can notice a fast growth of new media. The development of mobile advertising is hindered by the lack of technical capabilities. We expect the two important GSM operators in Romania, Orange and Vodafone, to cater to this market by implementing specialized mobile platforms. media research www.initiative.com

“Research is to see what everybody else has seen and to think what nobody else has thought” Albert Fzent-Gyorgyi (Hungarian Biochemist, 1937 Nobel Prize for Medicine, 1893-1986)

Research is increasingly developing reflecting the Audience measurement sophistication of the advertising and media tools and processes. Started just a few years back, local 1. TV research tends to get aligned to European 1.1. TNS AGB International - National TV standards. Reliable and complex audience Audience Measurement Service (SNMATV) measurement, industry-standard studies have been In 2003, TNS and AGB Group, two of the largest already established for television, press and radio. TAM operators in the world created a joint venture. • October 2001: the launch of the national TV TNS AGB Int’l is the exclusive provider of TV people meter system. audience data on the Romanian market. • October 2002: the launch of the National Readership Survey (SNA) for press. The data supplied by TNS AGB International • 2003: IMAS and Mercury Research were became the unique ‘currency’ used by television appointed to deliver radio audience data. stations, media agencies and advertisers in their • January 2004: the establishment of the new TV media transactions, given the reliability, panel based on 1,150 HH’s (vs. 750 initially). independence and transparency of the • June 2004: the launch of the first wave of radio measurement system. audience data. The universe is all individuals aged 4 and over, • October 2005: the launch of the first wave of living in private households having at least one TV SNA FOCUS (audience and consumption data). set, without distinction based on race, language, • October 2006: the deliver of the first results of nationality or socio-economic status. SNA FOCUS The national panel includes 1,150 households • November 2006: BRAT organized the first tender (around. 3,000 individuals) and representative as for the technical solution of the future IAM. such for the total population of 21.6 million. • September 2006 - January 2007, ARMA The size and the composition of the universe are organized the tender for the company which shall annually established through Establishment provide SNMATV for ARMA members starting with Surveys. January 2008. There are control procedures aimed to ensure the • January 2007 - GFK was appointed as the official panel is according to standards: supplier of TV audience data for period 2008-2011. • The panel activity has been developed with Other participants to the tender were the supervision of the Members’ Technical MediaResearch Czech Republic and TNS AGB Committee (representatives of agencies, TV International. stations and advertisers). • September 2007 - IMAS and Mercury Research • Members are informed about the technical were announced as the official suppliers for radio parameters of the service (Panel Management audience data for period 2008-2011. Report, Quality Report, Work Order etc.) on a • October 2007 - BRAT deliver for the first time the monthly basis. results for the traffic measurement according to the SATI system. BRAT provided to the members an Features of the service: application, available online, for the usage of these The households in the panel are equipped with a data. TARIS 4900 or TVM2 people meter device. Where • November 2007 – first event dedicated to Indoor a telephone landline is not available, the polling Romanian market – Indoor 2007 operation is performed through GSM modems. In September 2007, TNS AGB INTERNATIONAL Acknowledging the importance of media research started to monitor digital TV and used latest type of in building a competitive and professional people meters, TVM5. Thus, the panel included 70 advertising market, Initiative is an active member of households with digital reception. all relevant associations supporting the Minute by minute viewing data is delivered the implementation of audience research tools. following day (by noon on workdays). The data for Accordingly, Initiative uses all media research tools weekend is delivered on Monday and the data for available as industry standard. public holidays is delivered the next workday. www.initiative.com media research 11

Pollux is the systems employed for the The SNA universe is based on a 27,500 sample, management of the TV panel. The system includes 14-64 y.o., urban areas inhabitants, living in private the following modules: households and being able to understand and • Panel management speak Romanian well (includes the Hungarian • Data validation minority). Only one eligible respondent per HH is • Weighting considered. The sample is wide enough to make • Quality report data valid at local level, as well. The data is gathered by face-to-face interviews. The fieldwork Software: is carried on throughout the year and the number of InfoSys TV is an integrated analysis system: interviews is balanced by the day of the week. • Day part Analysis • Program Analysis The questionnaire covers the following • Commercial Monitoring categories: • Audience Profiles • Primary media (local, regional and national • Graphical Reporting newspapers, supplements, magazines - 227 • Planning & Optimization titles) • Secondary media (TV stations, radio stations, TV Monitoring Service records and publishes cinema, internet, outdoor) detailed information on TV programs and • Topics of interest commercials aired. • General consumption • Yesterday time budget At the end of 2007 Audience and Monitoring data • Socio-demographics are available for 38 TV stations: TVR 1, TVR 2, Pro The audience indices are calculated through the TV, , Antena 3, Euforia, Acasa TV, Prima “Recent Reading Method”, the best methodology TV, Kiss TV , UTV, Jetix, Discovery, MTV Romania, at the moment, internationally recognized and B1TV, Realitatea TV, Minimax, National used. Geographic, TVR Cultural, Sport.ro, Telesport, The Software is Sesame. National TV, Pro Cinema, AXN, OTV, N24, Senso, The main variables in the study are: age, sex, Favorit TV, Hallmark, Sport Klub, Romantica, Eurosport (from 1st February), MGM (from social grade, area, and education level, shopping 5th September), Kanal D (from 18th February), and consumption behavior, HH composition, Antena 2 (from 9th April), Etno TV (from children in HH, personal and HH income, HH 15th January), Taraf (from 15th October), Sport One expenditures, marital status, holidays, travel, (from 1st June) and Cartoon Network (from ownership of mobile phone and home products, 1st November). cinema attendance, PC and internet usage, smoking habits, pet ownership. Sesame is software The Monitoring System is designed to record, for media and consumer insights analysis and store and digitally processes the transmissions of planning. Its strong points are: all TV stations. An archive of commercials is • Easy-to-use tables available at http://www.tns-agb.ro, where clients • Quick data analysis can view all the TV commercials monitored since • Title ranking based on specific indicators 1999. • Simultaneous analysis and optimization for up to 10 media plans 2. PRESS The application includes 2 major modules that 2.1. BRAT (Romanian Audit Bureau of can be accessed from the main menu: Circulation) - National Readership Survey • Exploring Markets (target group definition and Romania (SNA FOCUS) evaluation) In 2005, BRAT organized a new tender for the • Media Evaluation and Media Planning (media press audience measurement. In May 2005 BRAT ranking, accumulation, duplication) announced the research companies appointed to continue the work for SNA for the next two years. The study is delivered on a quarterly basis. The survey covers 227 titles (82 monthlies, Data is available upon subscription and is limited 19 bimonthlies, 48 weeklies, 69 dailies and to BRAT members. Audience data is available only 11 supplements). for BRAT member titles. media research www.initiative.com

3. RADIO b. Mobile/PC/Internet usage 3.1. The Radio Audience Survey (SAR) is a (necessary for an accurate audience syndicated research program in co-operation with segmenting) c. Consumption and purchase behavior the Radio Audience Association (ARA). In 2003, (necessary for an accurate audience IMAS and Mercury Research were appointed to profile) implement the new radio audience measurement. • Purchase intention regarding durable The new service is available since June 2004. goods in the next 12 months The frequency of the study is two waves per year: • Alcoholic beverages consumption d. Socio-demographic March - April and September - October (8 weeks • Respondent’s socio-demographic each), for a four-year period: 2004 - 2007. Starting characteristics with 2008, SAR will delivery audience data in three • Household characteristics waves (first in June 2008, second in September 2008 and last in January 2009). The processing and analysis of audience data are performed with a specialized application of IMAS, MasoR.7. The audience segmentation considers all The universe covers the urban population, aged the variables in the questionnaire on the basis of 11+. The sample size is 11,000 individuals per which the user can build specific target groups. wave totaling 20,000 interviews/year (universe 19,169,422 individuals). 4. OUTDOOR Neither in 2007, the OOH industry could release Sample structure: the audience study promised to clients since 2006. Affichage, News and EpaMedia tried, using their a) 11 regions (quite homogeneous areas own classification for billboard values, to sustain identified through a multifactor cluster price increasing, but they couldn’t offer studies analysis) about the reach and efficiency for campaigns. In b) 4 categories of towns and cities (over absence of modern instruments for planning and 200,000; 100,000-200,000; 50,000-100,000; selection, OOH suppliers used photographs, maps, location previews. lower than 50,000) = 219 totally (106 in In some towns were approved restrictive urban and 114 in rural areas) regulations regarding outdoor, but in Bucharest these regulations are not very precise. Even the Data collection is performed at the respondent’s international suppliers and local authorities met at residence, on a printed questionnaire. The “Mediafax talks about OOH” conference and audience measurement uses the ‘Day-After Recall’ discussed about necessity of new regulations regarding this activity in Bucharest, 2007 didn’t method. Respondents are assisted to recall as brought positive changes. accurately as possible the listening sequence from Affichage, in partnership with JCDecaux, previous day. EpaMedia and News Outdoor asked an auction for urban furniture, but this haven’t been materialized The questionnaire, developed by IMAS, includes in 2007. the following sections: 5. INTERNET a. Mass media: The BRAT members working in the field of • Primary mass media (the stations listed internet, 60 companies, founded in 2006 a new by ARA). The main stations to be department inside the bureau, aimed to produce an measured are: Romanian public internet audience study. The objectives set forth for stations (national, regional, local); these new department are the objectivity of measurement and standardization, finalized in a Romanian private stations; this section Internet Measurement System. The IAM, named also includes questions regarding SATI will provide to the market the results for the stations’ awareness, radio reception traffic, audience and socio-demographic profiles of equipment and radio usage habits. the websites included in the survey. www.initiative.com media research 13

In 2006, BRAT organized the first tender for the Information: technical solution of the future IAM. BRAT received • Penetration of print titles / media channels 7 valid offers. BRAT was assisted in the tender • Qualitative data referring to usage behavior, process by an independent consultant, Mr. Manuel product and services consumption, including Sala – Technical Director of OJD Iterativa Spania. brands BRAT chooses at the end of the evaluating process • Qualitative data referring to socio-cultural the German company Spring as the supplier for the behavior next four years. In 2007 the Internet Department of BRAT gather The description of the target group permits the almost 76 members, between them all the major usage of socio-demographics, consumption players in the online industry. behavior and psycho-graphic variables. The information related to respondents’ lifestyle: The method used for measuring the traffic, purchase behavior, information habits and sources, audience and profiles of the websites is already their attitudes and values are available, linked to used for many years in other 4 European countries the media usage. and is widely accepted and recognized. It fulfils the IFABC guidelines regarding the traffic SNA FOCUS has the same universe as SNA measurement. survey, urban area living people, 14 – 64 years old. At the end of the SNA face to face interview, the In October 2007 BRAT deliver for the first time the interviewer has to ask the respondent if he/she results for the traffic measurement according to the agree to fill in another questionnaire, the SATI system. BRAT provided to the members an consumption one (FOCUS). The FOCUS application, available online, for the usage of these questionnaire is self completed by the respondent; data. the interviewer had only to help the respondent to understand the way the questionnaire has to be The results for the audience and profiles of the filled in and to collect the completed questionnaire. websites will be available for the first time in June 2008. The audience and profile results of the The SNA-FOCUS survey from BRAT will build the websites will be available to the member through a complex profile of the specific media consumer in specialized media planning software. one consolidated media resource. The research combines media penetration data, product and This will create for BRAT a new stage of services consumption and with socio-cultural development, being the first step for the advertising behavior. industry in Romania to gather all the strategic SNA FOCUS will test the possibility of information about media in one single source. implementing a CAPI method for the face to face part of the interview. In autumn 2008, BRAT will Consumption & Lifestyle Research take a decision regarding this new method

SNA FOCUS Media Monitoring In 2003 BRAT decided to develop a consumption The services available with most of the survey based on the already established SNA specialized companies include: research. SNA FOCUS field research was • Advertising activity reports covering all media launched in October 2005 and the first results were (see each company below) delivered in October 2006, thus replacing the TGI® • Special analysis reports: service (former consumer lifestyle survey). SNA • trends, rankings FOCUS is a syndicated research, controlled by the • brand, campaign analysis advertising industry (BRAT). • category, sector analysis • producer, advertiser analysis The research objectives reached by SNA • Data reports: FOCUS: obtain comprehensive information about • at any level of detail media penetration, products and services • for specific brands, products, purchase/usage patterns and the socio-cultural categories behavior. Types of media analyzed: print, radio, TV, • for all selected media internet, cinema and outdoor. • for a specific day, month, year media research www.initiative.com

• Campaign tracking: Media Image offers back search monitoring • monitoring and follow up on the for a maximum period of four years in case of implementation of any advertising central newspapers. campaign • Beside English and French translations, all Additional services: Media Image Group reports allow access to • Copy Service all original materials (scanned articles, digital • Early Warning Service: interested parties captures of TV and radio news, talk shows) can be informed about competitive In parallel, customers have access to advertisements just gone on air, as early as complete daily-updated web archives of their possible. monitoring reports, submitted to powerful search engines. The most important media monitoring companies are: 3. MEDIAFAX - monitoring data for press, radio 1. ALFA CONT - monitoring data for TV, press and TV stations: and radio. They offer: • Mediafax, the leading general and business • Detailed and summarized reports; • Info regarding advertisers, manufacturers, information provider in Romania, has been brands, media names, reports regarding providing professional press clipping services market cluttering (total ad minutes, number of for 9 years now, to more than 200 corporate breaks, number of spots) etc; and institutional clients. • Copies of TV and Radio spots and programs • Mediafax Monitorizare, the specialized press on VHS video tapes or on CD clipping department of the company, monitors • Color, black and white copies of more than 240 central, local and foreign advertisements on magazines and publications, in both Romanian and English newspapers (Xerox copies, scanned languages, 12 national TV channels and 9 and/or printed) national radio stations. Mediafax Monitorizare • Early warning service (for new ads, different also offers access to an archive of all press news or programs) articles monitored since 2001, through an Database starting March 1999 electronic interactive database, available The monitoring covers a total number of over online at www.monitorizarepresa.ro. 227 media channels: • 15 TV channels Theirs press monitoring products include: • 9 radio stations • Daily press monitoring reports - summaries • 202 press titles (22 central newspapers, 68 and clippings of press articles published in the local newspapers and 112 magazines) central press, TV and radio newscasts • Daily local press monitoring reports - 2. MEDIA IMAGE – monitoring data for press, summaries and clippings of press articles put TV and radio. out by over 140 local publications although • Media Image Group is the only Romanian the country monitoring agency that covers, beside the • Event coverage reports - summaries and central media, all the regional newspapers and magazines in the 40 Romanian county clippings of press articles published by the capitals. central press covering a certain event • The monitoring covers a total number of over • Media image assessment analyses - 450 media channels (27 central dailies, periodical analyses, tailored to our customers’ 109 magazines, 301 regional newspapers, needs, assessing their media coverage both 9 TV channels and 7 radio stations). quantitatively and qualitatively • The whole radio and TV broadcasts are • On-demand recordings of TV and radio recorded digitally and clients have access to newscasts, talk-shows and programs the latest 14 days full program data. • Transcripts of prime-time talk-shows www.initiative.com media research 15

Media Research Perspectives 2008

• Research remains an increasingly important tool both for media owners, advertising agencies and advertisers. It underlies the overall media budgets and their respective allocation. • The target groups are analyzed in a more complex manner, beyond the traditional demo- graphic criteria. SNA FOCUS is the research tool that analyzes the audiences from the psycho- graphics points of views e.g. lifestyle, brand and media consumption, attitudes towards life. • Research program SAR 2008-2011 (SAR 2008, SAR 2009, SAR 2010, SAR 2011): the effectuation of three audience polling each year, in 46 weeks of study (an average of 15 interview continuing weeks for each reporting wave 26.000 questionnaires per year (10000 questionnaires + 8000 x 2 waves): an average of 80 questionnaires per field activity day (322 interview days). The study will include all cities with more than 30.000 inhabitants (71 cities) and urban areas with less than 30.000 inhabitants (66 towns aleatory selected) and rural areas (100 villages aleatory selected) • SATI – BRAT 2008: In June, the results for the audience and profiles of the websites will be available for the first time. • Project 2008: IAB Romania intends to monitor and to offer to the members data concerning monthly consumption on on-line media (e.g. general consumption on auto category etc). television www.initiative.com

“I hate television. I hate it as much as peanuts. But I can't stop eating peanuts.” Orson Welles (American motion-picture actor, director, producer and writer, 1915-1985)

Overview 2007 brought yet again significant developments on Romanian media market. TV followed the trend with the launch of new stations by all important media groups. Intact launched Antena 2, an entertainment channel, Realitatea group launched a niche channel named Romantica targeting women and Media Pro re-launched its sport channel under the name Sport.ro. The Turkish media giant, Dogan Media Group entered the Romanian market by launching, in co-ownership with Ringier Romania, the generalist channel Kanal D.

At the end of 2007 Audience and Monitoring data are available for 38 TV stations: TVR 1, TVR 2, Pro TV, Antena 1, Antena 3, Euforia, Acasa TV, Prima TV, Kiss TV , UTV, Jetix, Discovery, MTV Romania, B1TV, Realitatea TV, Minimax, National Geographic, TVR Cultural, Sport.ro, Telesport, National TV, Pro Cinema, AXN, OTV, N24, Senso, Favorit TV, Hallmark, Sport Klub, Romantica, Eurosport (1st February), MGM (from 5th September), Kanal D (from 18th February), Antena 2 (from 9th April), Etno TV (from 15th January), Taraf (from 15th October), Sport One (from 1st June) and Cartoon Network (from 1st November).

Television is the most important entertainment source for Romanians due to a large number and variety of channels and a robust cable penetration. According to the Establishment Survey of 2007 developed by IMAS and TNS CSOP, cable penetration was 71.2% at national level and 82.6% in urban area. This rate is one of the biggest in Europe. Moreover, Direct to Home (DTH) penetration increased over the past few years. According to IMAS and TNS CSOP, the penetration rate of DTH in 2007 is 11.2% at national level, 20, 6% in rural area and 5.1 % in urban area.

In 2007 TV grew stronger by attracting 65% of all net advertising revenue to a total of 310 million €. Despite the high CPP inflation starting back in 2004 television is still the most effective media channel with an average net CPT of 1.9 € - 2 € (All urban).

In 2007, we estimates that Media Pro (Pro TV, Acasa TV, Pro Cinema and Sport.ro) attracted the largest budget share, ca. 50% of total net TV ad-spend. Intact (Antena 1, Antena 2, Antena 3, Euforia, Telesport) follows with a share of about 23%, then SBS (Prima TV and Kiss TV) with ca. 9% share. SRTV (TVR1, TVR 2, and TVR Cultural) attracted ca. 8% of total TV spends while Realitatea Media (Realitatea TV and Romantica) gathered about 5% share. However, the cumulated market share of first five TV channels is on a decreasing trending which begun two years ago: in 2005 the Top 5 stations cumulated ca 90% of total TV investments, while in 2007 this share decreased to 78%. The trend is due to the continuing increase of the niche stations both in terms of revenue share as well as in audience share. The share of GRP30” sold by niche stations increased from 20% in 2005 to 35% in 2007.

In 2007 the number of GRP30” sold increased by 5% compared to 2006 (GRP30”), yet clutter and sold- out kept occurring, for the demand grew stronger still.

The total inventory sold in 2007 by TV stations was 1.700.000 GRP30”, of which 21% by ProTV, 16% by Antena 1, 14% by Acasa TV, 7% by Prima TV and 7% by TVR1.

The primary cause for the increasing inventory is the increase of the number of monitored TV channels, mainly niche channels. In 2005 the cumulated share of all monitored channels was 82.3%. In 2007 it reached 86.3%. Besides, there is around 13% share of audience which is not monitored, belonging to local television, satellite transmission, international channels, yet this share is decreasing every year. www.initiative.com television 17

Another cause is the unprecedented loading level achieved by TV stations over 9 months of 2007.

In 2005 the average TV loading for the 07:00 - 26:00 time interval at all stations was 57%; in 2007 the loading reached 72%, with peaks in Prime Time and High Season months going as high as 140% (e.g. November 2007).

Years 2005 2006 2007 Buying target GRP30” (000) sold 1,500 1,600 1,700 Share of TV monitored (all urban, %) 82% 85% 86% TV loading (%) 57% 66% 72%

Compared to 2006, the average no of TV advertisements a person (all urban, including guest) is exposed to during the weekday, increased by 7%. According to TNS AGB, at the end of 2007, the average gross number of weekly TV impacts was 7.110.492 (for adults), 3% more than in 2006.

Graph 1: Volume of advertising in no. of seconds/ month

Source: TNS AGB INTERNATIONAL

The average spot-length in 2007 was 24 sec., where short spots (5-20 sec.) weigh is 47%. Compared to previous year, in 2007 short spots and solo spots were widely used. In 2007 the weigh of short spots was 47%, from 45% in 2006. The number of solo spots increased from 6,117 in 2006 to 6,925 in 2007.

Graph 2: Spot-lengths – share %

Source: TNS AGB INTERNATIONAL television www.initiative.com

The time spent viewing in 2007 decreased by 5% compared to 2006 to an average of 3.9 hrs/day. Graph 3: Time spent viewing 2006-2007 - All urban incl. Guest - (avg. no. of minutes/day) - Monthly dynamic

Source: TNS AGB INTERNATIONAL

TV Channel’s profile Total Audience observes the seasonal trend, peaking in winter and decreasing over summer, yet there are no important changes versus 2006. ProTV remains leader (Rtg 2.5 %, Shr 15.5% - all urban), followed by Antena 1 (Rtg 1.9%, Shr 11.8% - all urban) and TVR 1 (Rtg 1.3%, Shr 8.2% - all urban), with ratings lower than those of 2006. In 2007, all main channels lost audience in favor of niche stations. Prima TV keeps a similar average audience level, hence maintaining its 5th rank (Rtg 0.8%, Shr 4.9% - all urban). Graph 4: Monthly Dynamic – Program’s analysis (Rtg %) – all urban (whole day) 2007

Source: TNS AGB INTERNATIONAL Graph 5: Share of audience evolution by station / by month – all urban (whole day) 2007

Source: TNS AGB INTERNATIONAL www.initiative.com television 19 Graph 6: TV Channel’s profile 2007 (social status vs. age) - all urban (Rtg, whole day) Graph 6: TV Channel’s Source: TNS AGB INTERNATIONAL Source: TNS television www.initiative.com

Pro TV (87.5% national coverage) remains The well-known entertainment shows continued leader in viewers’ preference for the 4th to deliver constant high ratings against urban consecutive year. According to TNS AGB, the top audience: “Piata Divertis” (977.000 viewers), audience scoring programs were Champions “Genialii” – a show dedicated to Romanian League transmissions with 1,770,000 urban personalities (Maria Ciobanu, Alexandru Arsinel, viewers. “Pro TV News at 19” with Andreea Esca Gheorghe Hagi, Angela Similea, etc) - attracted surpassed news programs of other stations, 800,000 – 970,000 viewers per show, “Din registering 1,673,000 viewers. Another show dragoste” hosted by Mircea Radu (877,000 delivering high ratings was “Dansez pentru tine”, viewers). The New Year’s show, “Revansa continuing its success from starting year (2006) Starurilor” with 1,290,000 viewers surpassed Pro with 812,000 viewers. As “Teo” was discontinued in TV’s show. Another top rating show was “Vreau sa 2006, Pro TV found a success recipe to revive the fiu mare vedeta” with 1,239,000 viewers. 17:45 – 19:00 time slot with a new entertainment In 2007, the buying target of Antena 1 was “All, urban”. program “Happy Hour” hosted by Catalin Maruta. Being launched in October, the show attracted a Graph 8: Antena 1 – Audience profile - TgAfin.% sizeable audience (483,000 viewers). Also, some shows dedicated to special events were top audience scoring: “Made in Romania”, dedicated to Romanian National Day Dec 1st brought in 646,000 viewers and “Happy End 2007” which attracted 762,000 viewers. Pro TV delivered a good affinity on almost all targets vs. buying target ‘18-49 y.o., urban’ thus making the station a top advertisers’ preference.

Graph 7: ProTV – Audience profile - TgAfin.%

Source: TNS AGB INTERNATIONAL (reference target: all urban)

TVR 1 (98 % national coverage) is the main public channel and ranks 3rd in terms of urban audience. TVR 1 was the audience leader for sports transmissions in 2007 with 1,845,000 viewers for the qualification rounds to the European Football Championship, 1,134,000 viewers for UEFA Cup transmissions and 1,063,000 viewers for Handball Women World Championship. 2007 Source: TNS AGB INTERNATIONAL (reference target: all urban) brought important programming changes due to discontinuity of success formats such as “Surprize, Antena 1 (88.3% national coverage) is the Surprize” (last show in December) and “Iarta-ma” second commercial station by 2007 audiences. (last show in January). Special events as “Gala Football transmissions brought the highest Unicef” and Eurovision national pre-selection audience: Champions League with 1,740,000 attracted top audiences: 877,000, respectively urban viewers, Romania’s Super Cup with 798,000 viewers. 1,349,000 viewers and Romanian Cup with TVR1 programming target group is “All, 25+ y.o., 965.000 viewers. national” and the buying target is “18+, all urban. www.initiative.com television 21

in October. The series attracted 548,000 urban Graph 9: TVR 1 – Audience profile - TgAfin.% viewers, yet a number of times some episodes surpassed the prime time programs of the main televisions in terms of audience. The peak of audience was on December 20th with 780,000 viewers. Still the South American soap operas maintained a significant audience share. Another important programs are “Povestiri adevarate” (247,000 viewers) and “Povestiri de noapte” (228,000 viewers). The station programming and buying target group are identical, “W, 15-49 y.o., urban”.

Graph 11: Acasa TV – Audience profile - TgAfin.%

Source: TNS AGB INTERNATIONAL (reference target: all urban)

TVR 2 (92.5% national coverage) is the second public channel, with a focus on educational and cultural programs addressed to a younger target (14-34 y.o, national). Its top programs are sport transmissions (football, handball, ice skating, tennis) with a lower audience than TVR 1, but with a premium target.

Graph 10: TVR 2 –Audience profile - TgAfin.% Source: TNS AGB INTERNATIONAL (reference target: all urban)

Antena 3 (72.3% national coverage) is also a news channel, its most known shows are: “Sinteza zilei” (153,000 viewers), “Stirea zilei” (104,000 viewers) and “In gura presei” (73,000 viewers). The Buying target is “18+ y.o urban”.

Graph 13 : Antena 3 – Audience profile - TgAfin.%

Source: TNS AGB INTERNATIONAL (reference target: all urban)

Acasa (82.3% national coverage) broadcasts exclusively through cable and ranks 4th in terms of urban audience share. Its audience buster is the Romanian soap opera “Inima de tigan”, launched Source: TNS AGB INTERNATIONAL (reference target: all urban) television www.initiative.com

Prima TV (84.8% national coverage) ranks 5th in Kanal D (62.7% national coverage) was launched urban audience share. In 2007 it attains a on 18th of February 2007 by Dogan Media remarkable audience share with two main football International. It is an entertainment channel, transmissions UEFA (1,099,000 viewers) and focusing on local productions as “Nora pentru Champions League (824,000 viewers). Its top mama” (171,000 viewers), “Fluier final” (115,000 scoring shows are “Tradati in dragoste” (545,000 viewers), “Vacanta Mare Reloaded” (71,000 viewers), “Cronica carcotasilor” (431,000 viewers), viewers). Its main achievement was the acquiring “Schimb de mame” (419,000 viewers), “Mondenii” of the broadcasting rights for the Romanian (206,000 viwers), but all these programs have lost Football League 1, which delivered top audiences audience compared to 2006. such as 1,290,000 viewers for Steaua – Dinamo. It’s programming target group is “All, 15-44 y.o., The station’s target is “18-49 y.o Urban”. urban” and the buying target is “18-49, all urban”. Realitatea TV (80.8% national coverage) is the Graph 12: Prima TV – Audience profile - TgAfin.% leader on the News specialty. Its audience is attracted by its qualitative social, political and economic programming. Its top audience programs are: “Tu ai decis” (251,000 viewers), “Putere la puterea a patra” (225,000 viewers), “Tu faci realitatea” (172,000 viewers), “Tanase si Dinescu” (168,000 viewers). Realitatea’s programming target group is “25+ y.o., urban” and its buying target is “18+ urban”. Graph 15: Realitatea TV – Audience profile - TgAfin.%

Source: TNS AGB INTERNATIONAL (reference target: all urban)

Graph 14: Kanal D – Audience profile - TgAfin.%

Source: TNS AGB INTERNATIONAL (reference target: all urban)

Source: TNS AGB INTERNATIONAL (reference target: all urban) www.initiative.com television 23

TV Buying Perspectives 2008 Due to inflation announced for 2008 sales, the year had gone off to a very slow start. There are categories which are likely to reduce their investment relative to previous year: banking/finance, automotive and some of the FMCG categories. The overall growth rate is expected to decrease from significant double digit percentage to a single digit percentage over the next 3 to 5 years. Our estimations for the 2008 TV market are: • ca. 24% increase of the net TV spends vs. 2007. We expect the net TV market to reach ca. 385 million €. • a decrease of 5% in the total inventory of GRP30” sold, assuming that in Q4 the loading level will be under that of 2007 while the cumulated weight of the Top 5 channels will diminish. • an overall CPP increase of 30% to 45%. radio www.initiative.com

“You see, wire telegraph is a kind of very, very, long cat. You pull his tail in New York and his head is meowing in Los Angeles. Do you understand this? And radio operates exactly the same way: you send signals here, they receive them there. The only difference is that there is not a cat.” Albert Einstein (1879-1955) Overview 7. SC AUDIO DELTA SRL Over the past years, Romanian radio market with Micul Samaritean witnessed many launches; at the end of 2007 the 27 licenses number of radio licenses issued by CNA stands at 8. SC GRUPUL MEDIA CAMINA (G. M. C.) 671. with Romantic FM The most important radio owners on Romanian 24 licenses market are SBS Broadcasting Media and Radio 21 with 127 radio licenses. The radio groups with the 9. SC MINISAT TELECOM SRL leading market share, SBS Broadcasting Media with Radio Minisat and Lagardere (main shareholder of Europa FM 19 licenses and owner of 21% of Radio 21) have consolidated 10. SC RADIO TRANSILVANIA their strong position by purchasing new stations. with Radio Translivania Group Lagardere made one of the most important acquisitions by taking over Radio Deea which 15 licenses provides national coverage through its 23 licenses. Source: www.cna.ro Another important development on the market is the purchase of Mix FM and One FM by SBS In 2007, the total radio net ad-spend increased by Broadcasting Media and the launch of Pro FM 31% vs. 2006, reaching over 30 million €. This is Dance by Radio Pro Company. The number of due to rate card tariffs increase and also to bigger niche stations increased with the launch of News FM (owner Intact Media) and Realitatea FM (owner budgets invested by advertisers. Realitatea Catavencu). increased According to Alfa Cont, the total gross ad-spend the number of local stations to 26 at the end of increased by 33% compared to 2006, reaching 91 2007. million €. The market is dominated by SBS Broadcasting Media and Europe Development According to CNA, top 10 owners of radio licenses in 2007 are the following: International, with a combined share of 78% of total 1. SC. SBS BROADCASTING MEDIA SRL radio revenues. with Kiss FM and Magic FM Just as in 2006, Kiss FM remained the station 76 licenses with the biggest share of ad spend (30%), followed 2. SC. RADIO XXI SRL by Radio 21 (23%) and Europa FM (21%). The with Radio 21 51 licenses growth of ad spend is partly generated by the 3. SC. ABC PLUS MEDIA SA increase of audience at the leading stations, as with National FM and Favorite FM Kiss FM, Radio 21 and Europa FM, which were 35 licenses often sold-out in Prime Time. Another reason for a 4. SC. COMPANIA DE RADIO PRO SRL good evolution of sales was the special projects with Pro FM, InfoPro, Pro Clasic 31 licenses organized by these stations, such as concerts, 5. SC. REALITATEA MEDIA SA contests launching events, etc. with Realitatea FM, Radio Guerrilla and The main radio station owned by Romanian Radio Alpha Society of increased 29 licenses 6. PATRIARHIA ROMANA adverstising sales by 113%. As of March 2007, with Radio Trinitas Clir Media is administrating the advertising sales 27 licenses for RRA. www.initiative.com radio 25

Graph 1: Radio ad-spend evolution 2006-2007

Source; Alfacont – MediaWatch (‘000 €) - excluding media barters “Cars & 4x4 vehicles” and “Mobile Telecommunication services” categories remained the leading categories in 2007. The most important budgets were invested by GSM operators (Orange, Vodafone) and Group Renault Romania. Despite the fact that in 2007 Banking & Insurance category had the highest growth on overall media market (with leading spend from BCR-Erste), on Radio it was surpassed by Mobile Telecommunications category. Last year, “Beer” category allocated a budget half that of 2006, and so the category exited the “Top 10 most advertised categories on Radio”. On the other hand, “Carbonated soft drinks” spend increased by 80% than 2006.

Radio Top 10 Categories Jan - Dec 2006 Jan - Dec 2007 Category Exp. (000’€) Category Exp. (000’€) Cars & 4x4 vehicles 7,603,428 Cars & 4x4 vehicles 11,313,166 Mobile telecommunications service 5,678,605 Mobile telecommunications service 8,856,265 Banking & Insurance Services 5,630,908 Banking & Insurance Services 7,419,045 Store, Comercial Centres, Supermarkets 5,093,462 Store, Comercial Centres, Supermarkets 7,279,487 Culture & Education 4,644,003 Culture & Education 4,968,074 Multimedia 2,930,911 Multimedia 3,851,703 Entertainment Services 2,287,912 Entertainment Services 2,860,894 Other Business Services 1,716,862 Other Business Services 2,553,862 Beer 1,525,398 Beer 2,412,786 Carbonated Soft Drinks 1,430,689 Carbonated Soft Drinks 1,943,010 Source; Alfacont – MediaWatch - excluding media barters Radio 21, RRA and Kiss FM maintained the leading position with 65% market share. Radio 21’s first position is due to its Bucharest station which has around 146,400 listeners per day and growing. In January 2008, Radio 21 already had 42 stations. In September 2007, Radio 21 launched “Nunta PeNeve”, event which generated an audience growth. Kiss FM is still in top, even though its market share in Bucharest is significantly lower compared to 2006. radio www.initiative.com

The competition between generalist stations extended to niche stations. The number of niche stations in Bucharest is increasing. Stations as Pro FM Dance, Pro FM Campus and Pro FM’sCool (Media Pro), News FM (Intact), Itsy Bitsy (On Air Studio), One FM (MGSI) and Smart (Brand Nemira) show an important drive to tackle more specialized audiences. Pro FM Campus is a station dedicated to students and has operational branches in Bucharest, Cluj and Tg Mures. On the same target, Student FM has a technical coverage for entire Bucharest.

Graph 2: Radio station % Market Share - Bucharest

For Urban area, Europa FM maintained its leading position with a similar market share as last year. Kiss FM had a marginal increase of share from 15% in 2006 to 16% in 2007.

Graph 3: Radio station % Market Share – Urban www.initiative.com radio 27

Graph 4: Radio stations % Market Share - National

Radio consumption According to Masor data, the average time spent listening to radio in 2007 is 4.6 hrs / day in province cities and 5 hrs / day in Bucharest.

Graph 5: ATS (min) and Daily reach - National

3,000 233 250 207 194 2,500 194 189 166 191 188 200 166 177 2,000 168 140 150

1,500 2,760 128 2,598 2,413 100 1,000 2,399 1,521 50 1,102 500 925 37 276 265 211 166 96 143 41 0 0 RRA BBC Others Pro FM InfoPro Muzical Cultural Kiss FM Radio 21 Magic FM Europa FM Ant. Satelor National FM Romantic FM

Daily Reach (000) ATS (min.) radio www.initiative.com

Graph 6: ATS (min) and daily reach (000) - National

Source: IMAS all 2007

Kiss FM, Radio 21, Magic FM and National FM target a young audience, most of its listeners having 20-29 y.o. Last year they reached 2,091,000 listeners per day. Europa FM, ProFM, Info Pro and Romantic attracted most of their listeners from 30-39 y.o group, respectively an average of 1,076,000 listeners per day. RRA and Cultural are targeted on a mature audience, aged over 60.

Graph 7: Radio stations by group age - National 20-29 y.o. 30-39 y.o. 40-49 y.o. 50-59 y.o.

Source: IMAS all 2007 (the figures show the dominant age group Over 60 y.o. www.initiative.com radio 29

According to SNA Focus (Jan 07 – Jan 08) Kiss FM occupied the first position in top of mind with 16.5% of persons declaring they use to listen to radio more than one hour per day. The followers in the notoriety top are Europa FM (14%), RRA (12.7%) and Radio 21 (9.5%). The topics of interest proved to be weather news, national and local news and traditional & party music. 62% of persons use to listen to radio programmes in the first part of day.

Graph 8: Top of mind radio stations

Source: SNA Focus (Jan 07 – Jan 08)

Perspectives for 2008 Q1 2008 The radio audience measurement system SAR According Alfa Cont, for the Q1 2008, radio continues to offer clients and agencies valuable data. ad-spend reached 22 million €, that is 37% more Starting in 2008, SAR will deliver audience data in than Q1 2007. Group Renault, Orange and three waves (first in June 2008, second in September Carrefour are the biggest investors. 2008 and last in January 2009). “Cars & 4x4 vehicles”, “Stores, commercial centres, supermarkets” and “Mobile tele- In 2008, most of Romanian radio networks continue communication services” are the leading spending to develop by launching new stations or by categories. strengthening the existing ones. Beginning of 2008 Despite the descending trend of radio audience, was already marked by new launches. Radio 21 is radio ad spend is expected to grow in 2008 extending its network to reach 42 stations while in (estimated net growth of 26%). March announced the launch of Vibe FM, a station which will broadcast electronic dance music.

Also, Radio Pro Company is enlarging its network to include 28 stations and 13 affiliates. Info Pro estimates that at the end of April will have activated a total of 39 stations, thus providing national coverage. Pro FM’sCool is trying to extend the network in 40 high schools, all over the country.

The launch of new on-line stations contributes significantly to radio market development. Pro FM launches Pro FM Alternative and Pro FM Love in this segment. press www.initiative.com

“It's amazing that the amount of news that happens in the world every day always just exactly fits the newspaper.” Jerry Seinfeld

Market overview 2007 A new important international publisher, Attica Media entered the Romanian market in 2007 by One indisputable fact after 2000 is the explosion acquiring the license of the two men glossies of the Romanian press market. Today, we deal with Maxim and Playboy (formerly published by PBR a really developed industry, that is maturing at a Publishing, owned by Publimedia International). very fast pace. This reality is sustained by the The magazines were also restyled and Attica Media variety of new titles and consolidation of existing increased its presence on the market by launching brands, covering a wide variety of publications from the women glossy InStyle in 2008. It is expected the point of view of frequency, type, target etc. that the next move from Attica will be the launch of Supporting those affirmations is that fact that the Grazzia magazine. most recent National Readership Survey (SNA) Another important move was the acquisition of delivery includes 161 publications (66 monthlies, 25% of the Dogan’s Media Romania shares (owner 15 fortnightlies, 30 weeklies, 41 dailies and 11 of Kanal D) by the publishing house Ringier supplements). In addition to this, the FOCUS Romania. This move continues the international component of the National Readership Survey line of partnership between Dogan Media and measures the consumption of an almost exhaustive Ringier and could also be the start of the 4th media number of products and services. cluster on the Romanian market (in addition to the already established Publimedia-MediaPro, Intact “Dynamic” would best describe the evolution of and Realitatea-Catavencu clusters). the print market in 2007. The 23% increase in ratecard advertising revenue in 2007 compared to In 2007 and continuing in Q1 2008, the most 2006 (generated by increases in rate card value attractive segments for new publication launches and organic growth of the market), that brought the were the up-market / exclusivist glossy magazines total value of the total rate card ad revenue for the (Harper’s Bazaar, Eve, Esquire, Temporis) and print market to approximately 324 Million EUR (with business/financial segments (Money Express, media barters excluded) and the slight change in Business Standard, Financial Director, Financiarul). newspapers / magazines ad revenue ratio (51.1% newspapers / 48.9% magazines in 2007 compared The preoccupation to increase the added value to 49.6% newspapers / 50.4% magazines in 2006) of publications and make them more attractive for are just a glimpse of the big picture. both readers and advertisers brought a new trend in the print market: the extensive use of 2007 was the year of media acquisitions and covermounts as marketing tools to increase sales. sales, new publications launched and some old or This strategy was mostly used on the women young publications cancelled, preoccupation for magazines segment (Glamour, Beau Monde, Joy, increasing the added value delivered to consumer Unica, Avantaje, Tabu etc.) and quality newspapers by means of covermounts (most frequent ones segment (Jurnalul National, ). However, being CDs/DVDs, books, fashion items and the effects of this trend on a long term perspective cosmetic products) and restyling, increase of could backfire when covermounts would turn from market presence of already established nice-to-haves to must-haves, forcing the respective publications by means of new spin-offs and publishers to always have covermounts. specials, increase in the number of point-of- In addition, tabloids and daily sports newspapers presence websites, publications’ content starting to (e.g.: Libertatea, ProSport) as well as mass-market be delivered on mobile communication platforms, magazines for women (e.g.: Libertatea pentru readership fragmentation and so on. femei, Femeia de ) offered promotional contests with various prizes (instant winning of magazines, One of the major media acquisitions of 2007 took money, houses) as a way to increase circulation, place when Publimedia International bought back brand awareness and allegiance to the magazine. sports daily ProSport from Ringier. Changes in graphics, style and editorial structure are expected Newspapers (e.g.: Adevarul) and semi-glossy for 2008. and mass-market magazines for women (e.g.: www.initiative.com press 31

Ioana, Libertatea pentru femei, Femeia de azi) The readership fragmentation trend continued in were also focused on launching spin-offs and 2007, with most of the publications decreasing in specials in order to increase their presence on the readership figures. As shown below, the most market, increase the level of awareness for the affected by this trend were the fortnightly base publications and also in order to attract more publications. advertising revenue. Other already established publications (VIVA, Cosmopolitan, FHM, Unica, Readership Evolution (‘000) Jan 2006 - Jan 2007 - and so on) also used this strategy but at a lower Average for: Jan 2007 Jan 2008 Evolution scale. Monthlies 247.34 192.38 -22% In addition to that, Realitatea-Catavencu Fortnightlies 408.20 223.00 -45% worked on building the first 360 degrees of Weeklies 310.76 238.77 -23% publishing platform in Romania, adding three business/financial media products - newspaper Newspapers 200.05 175.76 -12% Business Standard, magazine Money Express and Supplements 471.78 394.67 -16% website moneyline.ro - to the already existing Source: National Readership Survey business/financial media products (Investitii si Profit magazine and Money Channel TV station). As a result of that, corroborated with increase in the ratecards, the CPT has increased, again with The presence of publications on the Internet and fortnightlies having the most unfavorable evolution. new media increased in 2007, by either building or However, this situation only takes into restyling point-of-presence websites and also by consideration titles monitored by the National delivering content for mobile communication Readership Survey, with a large part of the market platforms. In this respect it should be mentioned the being unmonitored. launch of the i-mode service from the mobile telephony operator Cosmote which, among others, CPT Evolution (EURO) Jan 2006 - Jan 2007 - delivers magazine content on the mobile phone. Average for: Evolution Besides that, many publications offer WAP Jan 2007 Jan 2008 compatible/optimized Internet content. Monthlies 19.51 26.68 +37% The following table shows a top of point-of- Fortnightlies 8.66 39.07 +351% presence websites with more that 100,000 unique visitors per month, ranked in decreasing order of Weeklies 23.67 28.76 +22% the average monthly number of unique visitors in Newspapers 46.52 37.00 -20% 2007. Source: National Readership Survey

Page Website Corresponding publication Unique Visitors Visits Impressions www.gsp.ro Gazeta Sporturilor 518,781 6,210,446 16,217,113 www..ro ProSport 461,770 4,891,519 30,308,531 www.libertatea.ro Libertatea 459,415 3,079,145 24,088,092 www.evenimentulzilei.ro 437,773 2,915,416 19,430,715 www.adevarul.ro Adevarul 348,523 1,023,309 4,229,618 www.romanialibera.ro Romania Libera 308,635 872,913 3,659,043 www.jurnalul.ro Jurnalul National 293,362 889,273 3,522,778 www.gandul.info Gandul 266,420 897,530 5,181,604 www.click.ro Click 263,601 1,019,638 7,408,655 www.zf.ro Financiar 263,282 654,121 2,819,769 www.cotidianul.ro Cotidianul 249,642 1,106,309 3,829,055 www..ro Ziua 203,167 681,476 3,374,982 www.chip.ro Chip 173,802 284,321 1,145,996 www.capital.ro Capital 123,213 244,010 776,603 www.ziaruldeiasi.ro Ziarul de Iasi 108,714 337,838 1,711,474 www.sapteseri.ro Sapte Seri 104,749 169,664 956,552 www.sfin.ro Saptamana Financiara 102,748 141,496 271,465 Source: www.sati.ro press www.initiative.com

The publishers Graph 1: Share of ratecard ad revenue of publishing groups in 2007 Romania has a large variety of publishers, containing international publishers directly present like Edipresse-AS, Ringier, Sanoma Hearst, Burda, Motorpresse, Liberis, Attica, international publishers present by means of publishing licenses like Hearst, Emap, Rodale etc. and local companies like Publimedia, Intact, Catavencu, R Publicatii, Business Media Group, Inform Media, Media Sud Management etc.

By using the share of ratecard ad revenue, publishers on the Romanian market can be divided in 4 groups: Source: Alfacont • publishers with 10%+ share of ad revenue: Ringier Romania (magazines and newspapers, Developments in 2007 and Q1 2008 specialized in mass-market publication, owner of Publimedia Libertatea - the best performing tabloid on the • buys back the sports daily ProSport from Ringier, Romanian market), Catavencu (magazines and while announcing graphics, format and editorial newspapapers, part of the Realitatea-Catavencu structure changes for 2008 media cluster, owner of 24-FUN, the best per- • buys the franchise of the fortnightly city guide forming free city guide), Publimedia International Time Out in September 2007 and re-launches it as (magazines and newspapers, very diverse a October 2007 as a weekly portfolio, part of the Publimedia-MediaPro media • re-launches business magazine Target in October cluster) and Editura Intact (magazines and 2007, improving its content and layout newspapers, part of Intact media cluster) • re-launches newspaper Gandul with a new format • publishers with 2% to 10% share of ad and content revenue: Edipresse-AS (diverse magazine • closes at the beginning of 2008 Acasa Magazin and Go4it! portfolio, specialized in women magazines), • increases its sales portfolio with gossip/paparazzi Sanoma Hearst (idem), Kopa Publicatii (owner of magazine Ciao! and the Cancan tabloid the second best performing free city guide, Sapte Seri), Burda Romania (diverse portfolio, Adevarul Holding specialized in semi-glossy magazines for women) • launches Click de Duminica in February 2007 and R Publicatii (only one title in its portfolio - • launches a TV guide common to both Adevarul quality newspaper Romania Libera) and Averea • publishers with 1% to 2% share of ad • transforms Averea into Click in March 2007, revenue: Business Media Group (specialized in keeping it a tabloid business magazines), Adevarul (publisher of quality • re-launches Adevarul in April 2007 in a new newspaper Adevarul), Media Sud Management format, more compact, together with two (publisher of national newspaper Curierul National supplements: Adevarul Artistic si Literar and and local newspaper Gazeta de Sud), Domus Adevarul TV (the previously mentioned TV guide) Magazin (specialized in home and deco • launches Foreign Policy, a global and economical policies magazine, in December 2007 magazines), Inform Media (specialized exclusively • launches Expert Imobiliar, a real estate in local publications and the only publisher of supplement freely distributed with each Tuesday exclusively local publications with a market share of issue of Adevarul more that 1%) and Crucisatorul (publisher of newspaper Gandul) Catavencu • other small publisher with a share of ad • launches business magazine Money Express in revenue lower than 1%, who together represent May 2007 and business newspaper Business 28.6% of the market Standard in June 2007 www.initiative.com press 33

• re-launches the quality newspaper Cotidianul with distributed through insertion in 40 local newspapers a new graphics, content and editorial structure; and weeklies within the ARBO network, covering starting April 2007 Cotidianul is accompanied by 36 counties Colectia Enciclopedica (quality books) and starting July 2007 the newspaper is also accompanied by Business Media Group Colectia Simfonica (CD’s with classical music) • closes Autocar magazine in December 2007 • free city guide 24-FUN extents its network, reaching a total of 11 local editions (in Brasov, Cluj, The Marketer Timis & Arad, Iasi, Mures, Dolj, Arges, Sibiu, • launches Business Woman in March 2007 with Harghita & Covasna, Nord-Vest) besides the an annual frequency then re-launches it in Bucharest edition February 2008 in the form of a glossy magazine for (business) women with monthly frequency Intact • changes in September 2007 the format, layout Dramiral Media Group and content of Felicia magazine, a mass-market • transforms newspaper into a daily free magazine for women newspaper • launches financial/economy daily Financiarul Other launches include: Edipresse-AS • Green Report (January 2007, business magazine • launches parenting magazine Baby in January for the environment industry), 2007 and psychology magazine Psychologies in • Freestyle (January 2007, free lifestyle glossy the autumn of 2007 magazine, monthly frequency), • cancels Familia Mea in the autumn of 2007 and • Temporis (March 2007, up-market glossy Sana at the end of 2007 magazine on watches and lifestyle, monthly frequency, launche by Automedia), Sanoma Hearst • Q-Magazine (general content semi-glossy • launches in the autumn of 2007 the up-market magazine, launched with a fortnightly frequency in fashion and beauty magazine for women Harper’s March 2007) Bazaar with a quarterly frequency and the up- • Motociclismo (launched in April 2007 by market glossy magazine for men Esquire with a Supercar), monthly frequency • MBike (cycling magazine, launched in May 2007 • in April 2008 launches Marie Claire, an up-market glossy magazine. by Action Publishing with a frequency of 6 issues per year), Liberis Publications • Grand’Or (launched in May 2007 by Double Click) • launches Prevention, a pocket size health and • Financial Director (free monthly magazine fitness glossy for women in November 2007 launched by Business Publishing Group, targeted to CFOs, controlled distribution), Attica Media • Avocati de Top (top of Romanian law houses, • enters the market by buying PBR Publishing published first time in June 2007 by Fin Media (Playboy and Magazines) from Publimedia in Group), September 2007 • Igloo Guide Bucharest (cultural guide, launched • launches the international up-market glossy by Igloo Media in October 2007), magazine for women InStyle in April 2008 • Scooby-Doo (cartoon-comics book, launched in October 2007 under Warner Bross license), Inform Media • Medic4all (November 2007, free, distributed • transform the local newspaper Cuvantul Liber into within hospitals and clinics), Hunedoara Expres in September 2007 • Sapte Seri Covasna (the bilingual Romanian- • launches daily newspaper Cluj Expres in October Hungarian edition of Sapte Seri launched in 2007, thus expanding its coverage from 6 to 7 November 2007 by Kopa Publicatii) counties • Be Blue Air (6 issues per year magazine distributed to airline passengers of Blue Air airlines, ARBOvision launched December 2007), • edits Alege as for October 2007, a periodical • Bestbanking (banking magazine, 6 issues per supplement with specialized thematic, freely year, edited by Bestbanking Median), press www.initiative.com

• anTREN (free weekly magazine, launched in Alta Casa Media adds to its portfolio the Info- March 2008, distributed in high-speed trains and Sanatate unconventional distribution network train ticket booths in Bucharest and Brasov, will (distribution of press and informative materials cover 10 cities by the end of 2008), within health centers). Also, in the autumn of 2007 • RING (April 2008, daily free sheet/tabloid, adds the music magazine My Band and later, in launched by Confort Media, distributed in March 2008, the cooking and style magazine Bucharest), La Cucina. • Alege TV (April 2008, common product of European Media Invest and Media Sud Europa, Advertising revenue distributed within the regional publications Gazeta As expected, the top 10 market segments by de Sud, Monitorul de Alba, , ratecard ad expenditures are strongly related to the Monitorul de Medias, Monitorul de Sibiu, Obiectiv – main events and market evolutions in 2007 Editie de Vaslui, Viata Libera Galati, Ziarul de Braila Romania: the campaign for private pensions, the and Ziarul de Iasi) increase in the number of car acquisitions (of which a good part in leasing system), the constant In addition to that ARBOmedia increased its increase in mobile telephony usage and the portfolio in 2008 with two new publications – development of the most important chains of Semnal de Dambovita si Valcea and Curierul de supermarkets (Carrefour, Cora, Billa, Metro) etc. Ramnic – now covering 37 counties with 43 Together, the top 10 market segments represent publications (Monitorulab.ro, Observator Aradean, 36% of the total advertising revenue achieved by Top, Ziarul de Bacau, Crisana, Monitorul de the print industry. Botosani, Monitorul expres, Obiectiv Vocea brailei, Ziarul de Braila, 24 Ore, Monitorulcj.ro, Observator In addition to that, the print industry has de Constanta, Semnal de Dambovita, Gazeta de exchanged barters with other media in a total value Sud, Viata Libera, Semnal de Ilfov si Giurgiu, of approximately 57 million EUR, of which 47% Impact in Gorj, Replica, Semnal de Ialomita si consists of barters exchanged with other print Calarasi, Ziarul de Iasi, Informatia Zilei de publications. Maramures, Mehedinteanul, Vocea Mehedintiului, Zi de zi, Ziarul de Mures, Monitorul de Neamt si Value of media barters (rate card, EURO) Roman, Gazeta de Olt, Republicanul, Monitorul, Magazines Newspapers Total Newspapers Informatia Zilei, Salajeanul, Tribuna Sibiu, 12,536,807 14,507,391 27,044,198 Monitorulsb.ro, Monitorul de Medias, Ziarul de & Magazines Sibiu, Monitorul de Suceava, Gazeta de TV stations 3,091,872 12,015,365 15,107,237 Teleorman, Renasterea Banateana, Acum, Curierul Radio stations 3,544,608 8,469,226 12,013,833 de Ramnic, Obiectiv Vaslui, Monirul de Vrancea, Uj Cinema Theatres 1,849,618 615,681 2,465,299 Magyar Szo) Museums Advertising Clir Media adds to its portfolio the quarterly boats 149,225 178,467 327,692 and sailing magazine Navigator (launched in agencies October 2007) and the up-market women’s glossy PR agencies 99,367 4,736 104,102 Eve (launched in December 2007, part of BBC Other media 16,046 8,672 24,718 Worldwide group) Source: Alfacont

TOP 10 market segments by rate card ad expenditures (EURO) Magazines Newspapers Total Banking & Insurance Products and Services 8,117,047 20,026,308 28,143,355 Automotive 8,211,351 10,765,181 18,976,532 Mobile Telecommunications Services 4,040,620 13,342,715 17,383,335 Stores, Commercial Centers, Supermarkets 7,889,720 6,862,388 14,752,107 Buildings & Real Estate 3,534,023 6,340,439 9,874,462 Restaurants, Coffee Shops, Fast Foods 6,187,581 1,133,813 7,321,393 Government / Municipalities 80,225 6,652,264 6,732,489 Night Entertainment 4,910,026 197,445 5,107,471 Political Parties 189,553 4,805,905 4,995,459 Face Care 4,472,788 56,610 4,529,398 Source: National Readership Survey www.initiative.com press 35

When looking at publication level, the magazine Parenting segment that attracts the biggest ratecard ad Mami 464 1.326.524 revenues is the one of free city guides (24-FUN, Superbebe 343 864.404 Ioana-Visul Copiilor 211 563.600 Sapte Seri), followed at great distance by business magazines, glossy magazines for women (of which Young Women Glossies the first two places are occupied by international Glamour 330 1.188.036 titles Cosmopolitan and Elle) and paid TV guides. Joy 371 1.161.404 Below there are a series of rankings on ratecard Bolero 369 1.105.326 ad revenue for various magazine segments. IT & C Al numbers are given in Euro. Chip 403 1.067.847 Connect 268 977.680 Publication Pages Ad revenue PC Magazin 414 734.340 (rate card, Euro) Popular Science Free City Guides National Geographic 175 1.061.381 24-FUN 5.437 19.411.361 Reader's Digest 184 608.390 Sapte Seri 3.986 10.571.455 Descopera 110 488.106 Source: Alfacont Business Magazines Capital 844 6.045.495 The same analysis made for newspapers / Saptamana Financiara 552 3.640.501 dailies shows quality newspapers as the ones Business Magazin 708 2.810.901 attracting the highest level of ratecard ad revenue. Business Review 501 2.080.780 They are followed by financial newspapers, and Biz 507 1.946.237 tabloids. Women Glossies Cosmopolitan 757 4.530.179 Publication Pages Ad revenue Elle 901 4.453.189 (rate card, Euro) Tabu 711 3.194.444 The One 668 2.832.620 Quality Newspapers Beau Monde 426 1.419.118 Jurnalul National 1,068 10,882,135 Evenimentul Zilei 1,038 7,438,822 Paid TV Guides Romania Libera 959 5,436,410 ProTV Magazin 896 4.335.604 Cotidianul 716 4,034,600 TVMania 1.100 2.774.213 Adevarul 732 3,188,390 TVSatelit 290 733.997 Financial Newspapers Women Semiglossies & Fortnightlies 1,456 9,615,934 Avantaje 776 3.453.772 Business Standard 265 2,152,311 Unica 822 3.117.765 Bursa 242 988,393 Ioana 621 1.890.550 Lumea Femeilor 568 1.347.072 Tabloids Femeia 318 1.122.862 Libertatea 845 7,636,089 Ziarul 322 1,157,419 Home & Deco 7 Plus 303 1,156,174 Casa Lux 651 2.004.690 Click! 303 1,040,047 Elle Decoration 440 1.455.838 Source: Alfacont Casa mea 485 1.375.160

Automotive Local publications also attract a fairly good BBC Top Gear 656 1.772.600 amount of advertising, but at a much lower scale. Auto Motor si Sport 467 1.503.588 ProMotor 332 1.132.360 Publication Pages Ad revenue Men Glossies (rate card, Euro) Playboy 291 1.766.081 Local Publications FHM 259 1.407.832 Ziarul de Iasi / Iasi 1,394 3,006,964 Men's Health 258 1.064.340 Transilvania Expres / Brasov 941 2,417,602 Gossip & Celebrity Viata Libera / Galati 788 2,363,947 Star 571 1.638.020 Monitorul de Vrancea / Vrancea 1,604 2,295,881 Viva 343 1.489.873 Gazeta de Sud / Dolj 605 2,214,675 Story 544 1.260.344 Obiectiv Vocea Sucevei / Suceava 733 1,931,359 Ziarul de Vrancea / Vrancea 1,172 1,823,066 Women Mass Market Evenimentul de Iasi / Iasi 1,123 1,804,991 Libertatea pentru femei 456 1.518.904 Tribuna Sibiului / Sibiu 929 1,663,418 Femeia de azi 342 869.800 Jurnalul Bihorean / Bihor 1,062 1,647,814 Povestea mea 646 574.607 Source: Alfacont press www.initiative.com

Readership figures As previously said, the process of readership fragmentation continued in 2007. Compared to the January 2006 - January 2007 period, the January 2007 - January 2008 period brought decreases in readership figures for approximately 86% of the publications monitored by the National Readership Survey. The greatest decreases in readership figures are for fortnightly magazines (starting from - 19%) - with the exception of Ciao! magazine - and the IT&C magazines (varying from -17% to -37%).

Top 15 of publications with the greatest decrease in readership figures

Readership for: Jan 2006 - Jan 2007 Jan 2007 - Jan 2008 Evolution Publitim 109 50 -54% Tribuna 85 47 -45% Look! 112 63 -44% Ioana - Visul Copiilor 155 88 -43% Dilema Veche 58 34 -41% Viva 213 127 -40% Go4it! (cancelled) 34 21 -38% LEVEL Games, Hardware & Lifestyle 126 79 -37% Ziua 249 161 -35% Ziarul 177 115 -35% Connect 86 57 -34% Util 104 70 -33% Xtrem PC 157 107 -32% Beau Monde 87 60 -31% Aventuri La Pescuit 130 90 -31% Source: National Readership Survey

However, a minority of publications were able to increase their readership figures. Of them, the local publications are the vast majority, which indicates an increasing interest for the local happening and local perspective.

Top 10 of publications with the greatest increase in readership figures

Readership for: Jan 2006 - Jan 2007 Jan 2007 - Jan 2008 Evolution Friss Ujsag 13 26 100% Ieseanul 29 55 90% Ziarul De Iasi 39 73 87% Timis Expres 41 59 44% Bihoreanul 46 66 43% Cotidianul 129 179 39% Ziarul De Bacau 24 33 38% Gazeta de Olt 17 23 35% Impact In Gorj 51 66 29% Ciao! 289 371 28% Source: National Readership Survey

On the next page there are the data delivered by the latest National Readership Survey wave, covering the January 2007 - January 2008 period. www.initiative.com press 37

Publication Publisher Readership Net Readers Rate CPT (“000) Coverage /copy Card rate % 1/1 page card (EUR) (EUR)

Monthlies Auto Expert Machine Maintenance 121 1.3 2829 23.41 Auto Motor si Sport Motor Presse 303 3.4 20.47 4000 13.2 Avantaje Edipresse A.S. 275 3.1 8.09 4486 16.34 Aventuri la Pescuit Editura Milano 90 1 8.41 2950 32.72 Beau Monde Sanoma Hearst Romania 60 0.7 3.03 3429 56.91 Bolero Ringier Romania 153 1.7 3.4 3571 23.31 Bucataria Pentru Toti Athanor 424 4.7 10.34 2850 6.72 Burda Burda Romania 96 1.1 8.28 2857 29.82 Caminul Domus Magazin 121 1.3 16.13 3000 24.87 Casa De Vacanta Casa Lux 104 1.2 10.51 2143 20.67 Casa Lux Casa Lux 301 3.3 17.01 3000 9.97 Casa Mea Domus Magazin 277 3.1 18.22 3000 10.83 Carticica Practica CasaLux 88 1 0.8 3000 34.2 Ce Se Intampla Doctore Publimedia International 366 4.1 14.08 4000 10.94 Chip Computer & Communications Vogel Burda Communications 157 1.7 8.05 2800 17.84 Computer Bild EdipresseA.S. 89 1 6.79 1829 20.55 Connect MTRpress 57 0.6 3990 70.21 Cosmopolitan Sanoma Hearst Romania 204 2.3 4.86 6286 30.84 Descopera Publimedia International 100 1.1 5.32 3686 36.88 Domus DomusMagazin 97 1.1 6.74 2900 29.94 Draga Mea CasaLux 177 2 19.89 1429 8.05 Elle EdipresseA.S. 127 1.4 5.77 4057 31.94 Elle Decoration EdipresseA.S. 46 0.5 3.68 2543 55.06 Eva - Magazinul Femeilor Maxim Publisher 89 1 18.16 3500 39.11 Familia Mea Edipresse A.S. 109 1.2 6.45 Farmacia Ta Galenus 267 3 3.26 3000 11.22 FEMEIA Sanoma Hearst Romania 459 5.1 13.91 4286 9.33 FHM Sanoma Hearst Romania 148 1.6 6.73 5143 34.78 Glamour Liberis Publications 80 0.9 2.11 4143 51.9 Go4It! Publimedia International 21 0.2 1.15 Gradina Mea De Vis Burda Romania 167 1.9 14.27 2000 11.97 Ioana Horoscop Burda Romania 353 3.9 26.54 2000 5.67 Ioana - LocuintaMea Burda Romania 148 1.6 15.1 2000 13.51 Ioana - SecreteleBucatariei Burda Romania 422 4.7 24.25 2800 6.63 Ioana - Visul Copiilor Burda Romania 88 1 9.17 2514 28.69 Joy Edipresse A.S. 122 1.4 3.21 3171 25.9 LEVEL Games, Hardware & Lifestyle Vogel Burda Communications 79 0.9 5 2000 25.38 Look! Edipresse A.S. 63 0.7 3.15 2029 32.44 Mami Sanoma Hearst Romania 151 1.7 8.03 3429 22.71 Maxim Attica Media RMN 61 0.7 7.26 4571 74.44 Medicina Naturista Macri Press 407 4.5 23.53 2314 5.69 Men's Health Burda Romania 75 0.8 5.68 4400 58.62 Misiunea Casa Leon Consulting 139 1.5 17.82 2500 18.04 National Geographic Sanoma Hearst Romania 287 3.2 15.43 5571 19.41 Oferte Speciale Oferte Speciale 49 0.5 1 670 13.72 PC Magazine Agora Media 148 1.6 19.73 2290 15.52 Perfect Pentru Casa Mea Burda Romania 67 0.7 10 2000 29.8 Photo Magazin MTR Press 31 0.3 3.4 3990 127.4 Planul Casei Mele Domus Magazin 84 0.9 10.63 2500 29.62 Playboy Attica Media RMN 265 2.9 15.06 5571 21.02 Popcorn Edipresse A.S. 245 2.7 6.45 1943 7.93 Practic In Bucatarie Casa Lux 1065 11.8 3.63 4000 3.76 Practic - Idei pentru casa, gradina si apartament Casa Lux 484 5.4 7.68 2514 5.2 ProMotor Publimedia International 280 3.1 14.43 3686 13.16 Quattroruote Psihologia Azi Magazin 21 0.2 3000 146.18 Reader's Digest Editura Reader`s Digest 232 2.6 2.32 4000 17.23 Rebus (Flacara) Publicatiile Flacara 705 7.8 18.08 714 1.01 Revista De Film HBO HBO 577 6.4 3.39 5000 8.67 Sana Edipresse A.S. 43 0.5 4.02 Slab Sau Gras Galenus 52 0.6 2.65 1500 28.79 Tabu Catavencu 167 1.9 9.54 4750 28.4 press www.initiative.com

Publication Publisher Readership Net Readers Rate CPT (“000) Coverage /copy Card rate % 1/1 page card (EUR) (EUR)

Tango Zada Media 64 0.7 4.08 4857 75.56 Tonica Galenus 35 0.4 2.65 1500 42.71 Unica Ringier Romania 242 2.7 6.05 4571 18.92 Util Domus Magazin 70 0.8 4.24 1200 17.23 Viva Edipresse A.S. 127 1.4 6.35 3457 27.23 XtremPC Romas Comercial 106 1.2 2000 18.78

Fortnightlies Acasa Magazin Publimedia International 458 5.1 9.54 3143 6.86 Autoshow Burda Romania 129 1.4 11.32 2514 19.45 Bravo Ringier Romania 348 3.9 5.9 2600 7.47 Bravo Girl Ringier Romania 241 2.7 4.82 2600 10.8 Cariere Editura Cariere 46 0.5 11.22 1971 43.23 Ciao! Revista Ciao 371 4.1 7.89 3286 8.86 Cool Girl Burda Romania 222 2.5 4.53 2514 11.3 Ioana Burda Romania 487 5.4 8.7 3143 6.45 Lumea Femeilor Ringier Romania 362 4 6.58 2857 7.88 Oblique TVMagazin Oblique Media 20 0.2 0.2 4571 227.46 Sapte Seri Timisoara Kopa Publicatii 17 0.2 0.89 1429 82.6 TV Satelit Ringier Romania 578 6.4 7.81 2857 4.94 Zile si Nopti Brasov Zile si Nopti 28 0.3 1.27 1000 35.23 Zile si Nopti Iasi Zile si Nopti 24 0.3 3.12 1000 41.26 Zile si Nopti Sibiu Zile si Nopti 14 0.2 1.39 1000 72.3

Weeklies Academia Catavencu Catavencu 322 3.6 8.47 6450 20.01 Agenda Trustul de Presa Agenda 125 1.4 2.45 3127 24.97 Auto Supermarket Unionpress 73 0.8 6.7 220 3.03 Banateanul Publimedia International 33 0.4 5.24 1857 56.47 Banii Nostri Media ON 54 0.6 4.66 3999 73.53 Bihoreanul Publimedia International 66 0.7 16.92 1857 28.08 Business Magazin Publimedia International 60 0.7 4.72 4143 68.6 Camion Supermarket Unionpress 35 0.4 5.38 220 6.33 Capital Ringier Romania 270 3 6.75 5714 21.2 Clujeanul PublimediaInternational 51 0.6 7.97 2286 44.78 Dilema Veche Satiricon 34 0.4 4.15 1717 50.62 Evenimentul Zilei de Duminica Ringier Romania 469 5.2 12.34 3486 7.44 Fanatik Fanatik Media 143 1.6 5.96 7000 49.05 Femeia De Azi Sanoma Hearst Romania 222 2.5 3 2857 12.84 Gazeta Sporturilor De Duminica Convergent Media 611 6.8 17.46 7857 12.85 Ieseanul Publimedia International 55 0.6 12.79 2286 41.74 Libertatea De Duminica Ringier Romania 870 9.7 4.51 5071 5.83 Libertatea Pentru Femei Ringier Romania 544 6 4.09 6171 11.35 ProSport De Duminica Publimedia International 585 6.5 11.94 6600 11.29 ProTv Magazin Publimedia International 890 9.9 12.19 4857 5.46 Publitim Inform Media 50 0.6 2.08 679 13.6 Saptamana Financiara Saptamana Financiara 238 2.6 11.33 5400 22.66 Sapte Seri Kopa Publicatii 76 0.8 1.27 2486 32.82 Soc G Publicatii 37 0.4 3.06 3800 101.85 Taifasuri Taifasuri Media 240 2.7 6.67 4000 16.65 Star G Publicatii 164 1.8 4.1 4800 29.28 Story Sanoma Hearst Romania 157 1.7 5.81 2857 18.22 TVMania Ringier Romania 403 4.5 3.8 7200 17.87 Vip Grup Management 221 2.5 7.89 4000 18.09 Zau G Publicatii 65 0.7 3.25 2375 36.36

Newspapers Adevarul Adevarul 405 4.5 16.2 4463 11.01 Adevarul De Arad Inform Media 52 0.6 2.17 1602 30.93 Agenda Zilei Trustul de Presa Agenda 26 0.3 5.91 904 34.93 Arad Expres Inform Media 30 0.3 2.24 432 14.5 Bihari Naplo Inform Media 40 0.4 2.9 945 23.54 Compact Bucuresti Ringier Romania 249 2.8 1.67 4096 16.48 www.initiative.com press 39

Publication Publisher Readership Net Readers Rate CPT (“000) Coverage /copy Card rate % 1/1 page card (EUR) (EUR)

Cotidianul Poligraf 179 2 14.67 5950 33.29 Crisana Anotimp Casa de Presa si Editura 34 0.4 4.1 1729 51.09 Curentul Dramiral Media Group 74 0.8 14.8 6400 87.01 Curierul National Media Sud Management 144 1.6 27.69 4011 27.89 Editie Speciala Editie Speciala Popular 45 0.5 2.87 4309 95.19 Evenimentul Zilei Ringier Romania 617 6.9 9.21 6271 10.16 Friss Ujsag Inform Media 26 0.3 2.57 1140 43.24 Gazeta De Olt Click News 23 0.3 10 1220 52.83 Gazeta De Sud Media Sud Management 157 1.7 5.41 5003 31.91 Gazeta Sporturilor Convergent Media 714 7.9 9.52 8714 12.2 Gandul Crucisatorul 196 2.2 6.53 4557 23.22 Hunedoreanul Publimedia International 35 0.4 7.78 1857 53.64 Impact In Gorj GNC Press Impact in Gorj 66 0.7 26.4 1131 17.23 Informatia Zilei Solpress 41 0.5 2.91 2689 66.26 Jurnalul Bihorean Inform Media 48 0.5 3.22 1824 37.75 Jurnalul National Editura Intact 810 9 10.13 7914 9.77 Libertatea Ringier Romania 1328 14.8 5.13 7620 5.74 Monitorul de Botosani Mediapress 61 0.7 9.1 2060 33.51 Monitorul de Sibiu Compania de Media 18 0.2 15 Monitorul de Suceava Interpress 35 0.4 4.22 1874 53.98 Monitorul Expres Monitorul Expres 24 0.3 11.43 1517 62.68 Obiectiv Vaslui EMI Press 54 0.6 16.88 1476 27.31 Obiectiv Vocea Brailei Double P Media 47 0.5 11.19 2236 47.23 ProSport Publimedia International 553 6.1 7.09 6600 11.93 Renasterea Banateana Timpress 35 0.4 2.52 1543 44.11 Romania Libera R Publicatii 235 2.6 4.2 6229 26.52 Timis Expres Inform Media 59 0.7 2.03 401 6.84 Inform Media 24 0.3 3.33 957 39.2 Transilvania Expres Tipotex 58 0.6 7.16 3417 58.49 Tribuna Sibiului Casa de Presa si Editura Tribuna 47 0.5 3.07 2484 53.31 Viata Libera Trustul de Presa Dunarea de Jos 49 0.5 5.16 3986 81.81 Ziarul Ziarul C.N. 115 1.3 4.79 3850 33.54 Ziarul de Bacau Mediabac 33 0.4 20.63 1080 33.16 Ziarul de Iasi Grupul de Presa Medianet 73 0.8 7.23 3514 47.95 Ziarul Financiar Publimedia International 204 2.3 11.53 5857 28.75 Ziua Ziua 161 1.8 8.17

Supplements Adevarul TV Adevarul 188 2.1 6.96 2519 13.41 Evenimentul Zilei TV Ringier Romania 410 4.6 3.06 2800 6.84 Jurnalul de Bucatarie Editura Intact 386 4.3 4.44 3629 9.41 Jurnalul Casei Mele Editura Intact 265 2.9 4.14 3629 13.71 Jurnalul de Colectie Editura Intact 407 4.5 4.9 3629 8.93 Jurnalul de Sanatate Editura Intact 384 4.3 5.41 3629 9.45 Jurnalul TV Editura Intact 438 4.9 3.59 3629 8.28 Libertatea Weekend Ringier Romania 1031 11.5 2.53 5300 5.14 Obiectiv Vocea Brailei TV Double P Media 43 0.5 7.54 press www.initiative.com (vertical) social status (horizontal) and by age Map 1A: monthly magazines (labels represent publication name and readership in thou. readers) www.initiative.com press 41 (vertical) social status (horizontal) and by age (labels represent publication name and readership in thou. readers) Map 1B: fortnightly and weekly magazines press www.initiative.com (vertical) social status (horizontal) and by age (labels represent publication name and readership in thou. readers) Map 1C: newspapers and supplements www.initiative.com press 43 (vertical) gender (horizontal) and by age Map 2A: monthly magazines (labels represent publication name and readership in thou. readers) press www.initiative.com (vertical) gender (horizontal) and by age (labels represent publication name and readership in thou. readers) Map 2B: fortnightly and weekly magazines www.initiative.com press 45 (vertical) gender (horizontal) and by age (labels represent publication name and readership in thou. readers) Map 2C: newspapers and supplements press www.initiative.com (vertical) gender (horizontal) and by social status Map 3A: monthly magazines (labels represent publication name and readership in thou. readers) www.initiative.com press 47 (vertical) gender (horizontal) and by social status (labels represent publication name and readership in thou. readers) Map 3B: fortnightly and weekly magazines press www.initiative.com (vertical) gender (horizontal) and by social status (labels represent publication name and readership in thou. readers) Map 3C: newspapers and supplements www.initiative.com press 49

Circulation figures While circulation figures and publication auditing is a common practice for central publications with national distribution, the number of local publications that have audit certificates remains very low. There is an approximate number of 365 local publications in Romania. Out of them, 87 publications are audited by BRAT, 54 are registered at BRAT but don’t have audit figures and 224 are neither registered nor audited. As a result of that there are very few ways to verify the numbers given within their media kits by publishers with no BRAT auditing. Publishers of audited local titles are publishers of both central and local titles (e.g.: Publimedia, Media Sud Management, Kopa Publicatii) or publishers of local titles exclusively (e.g.: Inform Media, Solpress, Zile si Nopti)

In 2007 circulation figures for central publications were greatly influenced by marketing actions (promotional contests, covermounts, promotional prices) offering long-term circulation increases (eg: Femeia de azi – promotional contests, Libertatea pentru femei – promotional contests, Glamour - covermounts) or circulation spikes for certain issues (FHM – vibrating ring covermount, VIVA – designer’s t-shirt covermount). Meantime, local publications rely mostly on the organic growth of the market. Also, the process of local publications launching various themed supplements started in 2006 continues in 2007.

NATIONAL PUBLICATION Publication Publisher Type Print run Returns Circulation Source /issue /issue /issue

Monthlies Auto Expert Machine Maintenance Paid 15,600 2,493 13,107 PS Auto Motor si Sport MotorPresse Paid 23,092 7,325 15,601 PS Avantaje Edipresse A.S. Paid 44,979 11,393 33,586 PS Aventuri la pescuit Editura Milano Paid 17,267 4,877 12,389 PS Baby Edipresse A.S. Paid 17,848 6,798 11,050 PS BBC Top Gear Media Sport Group Paid 19,400 3,721 15,060 AC Beau Monde Sanoma Hearst Romania Paid 30,833 8,751 22,049 PS Benessere CENTROFARM Free 13,400 - 13,400 AC BLU Sensiblu Free 120,000 - 120,000 PS Bolero Ringier Romania Paid 59,222 12,906 46,298 PS Bucataria pentru toti Athanor Paid 58,063 12,632 45,431 PS burda Burda Romania Paid 16,368 5,023 11,066 PS Caminul Domus Magazin Paid 15,082 6,248 8,724 PS Campaign Business Media Group Paid n.a. n.a. n.a. n.a. Carticica Draga mea pentru copii Casa Lux Paid 88,417 31,276 56,744 PS Carticica Practica Casa Lux Paid 121,000 31,320 89,267 PS Casa de vacanta Casa Lux Paid 15,958 5,604 10,104 PS Casa Lux Casa Lux Paid 23,667 7,942 15,447 PS Casa mea Domus Magazin Paid 20,264 3,535 16,596 PS Casa si Biroul - Bucuresti LS Invest Free 25,000 230 24,770 AC Casa si gradina Sanoma Hearst Romania Paid 23,100 9,462 13,613 PS Ce se intampla doctore? Publimedia International Paid 35,196 11,812 23,384 PS Chip Computer & Communications Vogel Burda Communications Paid 29,458 9,587 19,482 PS Clever Travel Domus Magazin Paid 10,000 5,520 3,960 AC Computer Bild Edipresse A.S. Paid 15,000 4,480 10,520 PS Cosmopolitan Sanoma Hearst Romania Paid 55,000 14,230 40,689 PS Cutezatorii Editura LVS Crepuscul Paid 25,953 714 25,239 AC Descopera Publimedia International Paid 22,942 5,902 17,040 PS Dilemateca Satiricon Paid 8,354 4,287 4,063 PS Domus Domus Magazin Paid 20,091 5,077 14,722 PS Domus Util Domus Magazin Paid 20,000 4,953 14,889 PS Doxi CD Press Paid 48,150 7,605 38,918 PS Draga Mea - Ghid practic in viata ta Casa Lux Paid 16,958 7,850 8,786 PS eFinance Finmedia Free n.a. n.a. n.a. n.a. ELLE Edipresse A.S. Paid 25,909 5,428 20,481 PS ELLE Decoration Edipresse A.S. Paid 14,500 4,843 9,657 PS EU.RO.COM Grup Management Paid n.a. n.a. n.a. n.a. Eva - magazinul femeilor Maxim Publisher Paid 15,000 9,601 5,399 AC Familia mea Edipresse A.S. Paid 23,400 6,685 16,715 AC press www.initiative.com

Publication Publisher Type Print run Returns Circulation Source /issue /issue /issue

Farmacia Ta Galenus Paid 90,000 5,706 84,294 PS Farmacist.ro Puls Media Network Paid 10,500 27 10,081 PS Femeia Sanoma Hearst Romania Paid 40,545 17,032 23,348 PS FHM Sanoma Hearst Romania Paid 33,750 12,388 21,292 PS Financial Director Business Publishing Group Free 12,000 151 11,849 PS Food & Bar Business Publishing Group Free 14,000 134 13,866 PS Geo MotorPresse Paid 15,475 6,934 8,541 PS Glamour Liberis Publications Romania Paid 53,033 12,268 40,765 PS Go4It Publimedia International Paid 21,051 2,629 18,422 PS Gradina mea de vis Burda Romania Paid 16,417 4,007 12,140 PS Hotel, Restaurant, Bar Expert CMG Romania Free 15,000 183 14,817 PS Hustler G Publicatii Paid n.a. n.a. n.a. n.a. Ideal Decor MC Media Concept Paid 14,100 4,238 9,862 PS Idei in dialog Catavencu Paid 11,817 5,352 6,465 PS Igloo Igloo Media Paid n.a. n.a. n.a. n.a. Ioana Horoscop Burda Romania Paid 19,000 4,892 13,894 PS Ioana Locuinta mea Burda Romania Paid 14,042 3,894 9,900 PS Ioana Secretele bucatariei Burda Romania Paid 23,417 3,916 19,274 PS Ioana Visul Copiilor Burda Romania Paid 16,583 9,058 7,304 PS J`adore Catavencu Free 25,990 61 25,929 AC Joy Edipresse A.S. Paid 52,321 12,693 39,628 PS LEVEL Games, Hardware & Lifestyle Vogel Burda Communications Paid 23,208 7,629 15,223 PS Libertatea Integrame Ringier Romania Paid 33,167 12,288 20,879 PS Look! Edipresse A.S. Paid 29,464 7,376 22,087 PS Magazinul Progresiv CMG Romania Free 26,000 210 25,790 PS Mami Sanoma Hearst Romania Paid 27,917 7,427 20,325 PS Market Watch Fin Watch Free 10,000 - 10,000 AC Maxim Attica Media RMN Paid 20,889 11,309 9,581 PS Medic.ro Puls Media Network Free 15,000 37 14,121 PS Medicina Naturista Macri Press Paid 23,050 5,654 17,396 PS Men's Health Burda Romania Paid 22,917 9,415 13,236 PS Misiunea Casa Leon Consulting Paid 15,250 6,795 8,361 PS National Geographic Sanoma Hearst Romania Paid 27,667 7,584 20,083 PS PC Magazine Romania Agora Media Paid 17,062 8,062 8,679 PS Perfect pentru casa mea Burda Romania Paid 12,500 5,731 6,570 PS Pharma Business Business Publishing Group Free 12,000 107 11,893 PS Pharmakon Ruve Press Free 17,283 - 17,283 PS Photo Magazin MTR Press Paid 14,917 5,807 7,819 PS Piata Business Publishing Group Free 25,000 393 24,607 PS Planul casei mele Domus Magazin Paid 10,618 2,479 7,989 PS Playboy Attica Media RMN Paid 31,492 13,573 17,911 PS Popcorn Edipresse A.S. Paid 48,142 6,414 41,727 PS Practic - Idei pentru casa, Casa Lux Paid 88,833 26,328 62,098 PS gradina si apartament Practic in bucatarie Casa Lux Paid 350,757 82,441 261,906 PS Prevention Liberis Publications Romania Paid n.a. n.a. n.a. n.a. ProMotor Publimedia International Paid 17,233 8,571 8,662 PS Psihologia Azi Psihologia Azi Magazin Paid 19,798 7,438 12,355 PS Psychologies Edipresse A.S. Paid 23,333 13,274 9,214 AC Quattroruote Burda Romania Paid 12,625 6,134 6,259 PS Reader`s Digest Editura Reader`s Digest Paid 133,250 5,228 127,264 AC Rebus (Flacara) Publicatiile Flacara Paid n.a. n.a. n.a. n.a. RE:PUBLIK Re:Cool Media Paid n.a. n.a. n.a. n.a. Revista de Film HBO HBO Romania Free 170,000 - 170,000 PS Romania Business Cream Creamvertise Paid n.a. n.a. n.a. n.a. Sana Edipresse A.S. Paid 14,300 4,130 10,170 PS Slab sau Gras Galenus Paid 29,000 6,052 22,621 PS Superbebe Bebe Media Paid 17,750 6,566 11,184 PS Tabu Catavencu Paid 27,623 11,683 15,940 PS Tango Zada Media Paid 22,000 7,547 14,453 AC Target Publimedia International Paid 17,879 4,515 13,072 PS Terra Magazin CD Press Paid 126,696 6,545 119,761 PS The Marketer The Marketer Magazine Free 3,833 - 3,833 AC The One Publione Media Paid 24,771 10,486 14,285 PS www.initiative.com press 51

Publication Publisher Type Print run Returns Circulation Source /issue /issue /issue

Tonica Galenus Paid 20,000 4,762 15,238 AC Unica Ringier Romania Paid 51,663 13,866 37,779 PS Univers Moto MotorPresse Paid 9,960 4,979 4,981 PS Viva Edipresse A.S. Paid 26,667 6,465 20,201 PS XtremPC Romas Comercial Paid 19,545 6,714 12,832 PS

Fortnightlies Acasa Magazin Publimedia International Paid 63,651 19,997 43,654 PS Autoshow Burda Romania Paid 15,320 6,294 8,818 PS Biz Business Media Group Paid n.a. n.a. n.a. n.a. Bravo Ringier Romania Paid 85,838 20,748 65,049 PS Bravo Girl Ringier Romania Paid 69,942 18,280 51,648 PS Cariere Editura Cariere Paid 7,591 3,395 4,195 PS Ciao! Revista Ciao Paid 69,804 19,219 50,321 PS Cool Girl Burda Romania Paid 61,142 14,757 46,016 PS eWeek Agora Media Free 7,000 - 6,990 PS Ioana Burda Romania Paid 81,500 27,038 54,123 PS Lumea Femeilor Ringier Romania Paid 65,523 17,898 47,598 PS Oblique TV Magazin Oblique Media Free 100,000 - 100,000 AC Q-magazine Babilon Press Paid n.a. n.a. n.a. n.a. TV Satelit Ringier Romania Paid 92,087 21,415 70,621 PS

Weeklies Academia Catavencu Catavencu Paid 57,182 18,065 39,117 PS Adevarul de Duminica Adevarul Paid 43,307 23,719 19,546 PS Adevarul Ghid TV Adevarul Paid 54,921 24,112 30,734 PS Autosupermarket Unionpress Paid 17,513 7,516 10,378 PS Odorheiu-Secuiesc Averea Ghid TV Media Promo Valores Free 74,039 32,353 41,665 PS Banii Nostri Media ON Paid 14,615 1,843 11,408 AC Business Magazin Publimedia International Paid 19,864 3,616 16,248 PS BBW Anamcara Media Group Free n.a. n.a. n.a. n.a. BusinessWeek Business Media Group Paid n.a. n.a. n.a. n.a. Capital Ringier Romania Paid 44,875 8,476 36,389 PS Dilema Veche Satiricon Paid 13,203 5,036 8,150 PS Evenimentul Zilei - Ghid TV Ringier Romania Free 152,759 37,318 115,375 PS Evenimentul Zilei de Duminica Ringier Romania Paid 45,176 12,436 32,681 PS Fanatik Fanatik Media Paid 31,800 16,280 15,520 AC Felicia Media Casa Press Paid 43,150 12,209 30,939 PS Femeia de azi Sanoma Hearst Romania Paid 163,426 42,890 120,516 PS Gazeta Sporturilor de Duminica Convergent Media Paid 49,470 17,077 32,288 PS Jurnalul Casei Mele Editura Intact Free 71,372 13,895 57,477 PS Jurnalul de Bucatarie Editura Intact Free 93,530 22,597 70,933 PS Jurnalul de Sanatate Editura Intact Free 76,349 15,088 61,261 PS Jurnalul National - Editie de Colectie Editura Intact Free 164,125 29,663 134,462 PS Jurnalul National - Ghid TV Editura Intact Free 147,080 39,433 107,647 PS Jurnalul National de Duminica Editura Intact Free 44,130 5,259 38,870 PS Kaufland Kaufland Romania SCS Free 1,137,812 - 1,088,296 AC Libertatea - Editia de duminica Ringier Romania Paid 235,252 49,387 185,526 PS Libertatea - Supliment Weekend Ringier Romania Free 517,068 99,279 417,490 PS Libertatea pentru femei Ringier Romania Paid 177,496 46,185 130,889 PS Povestea mea Edipresse A.S. Paid 47,430 7,715 39,715 PS Pro Sport de Duminica Publimedia International Paid 63,600 19,702 43,804 PS Pro TV Magazin Publimedia International Paid 126,197 37,735 88,453 PS Saptamana Financiara Saptamana Financiara Paid 40,093 13,369 26,725 PS Soc G Publicatii Paid 28,654 17,926 10,728 AC Star G Publicatii Paid 54,192 21,004 33,189 AC Story Sanoma Hearst Romania Paid 35,635 13,600 21,929 PS Taifasuri Taifasuri Media Paid 55,962 22,969 32,868 AC TVMania Ringier Romania Paid 138,170 35,487 102,627 PS VIP Grup Management Paid 35,785 9,950 25,818 PS Zau G Publicatii Paid 36,846 21,121 15,725 AC press www.initiative.com

Publication Publisher Type Print run Returns Circulation Source /issue /issue /issue

Dailies / Newspapers Adevarul Adevarul Paid 43,341 16,104 27,211 PS Averea Media Promo Valores Paid 55,500 22,767 32,716 AC CANCAN Cancan Media Paid 87,547 34,451 52,968 PS Click Media Promo Valores Paid 98,323 32,803 65,476 PS Cotidianul Poligraf Paid 30,551 9,985 20,536 PS Curentul Dramiral Media Group Free 89,066 626 88,440 AC Curierul National Media Sud management Paid n.a. n.a. n.a. n.a. Dailyul Poligraf Paid 30,551 9,985 20,536 PS Evenimentul Zilei Ringier Romania Paid 81,247 20,203 60,989 PS Gandul Crucisatorul Paid 43,743 9,550 34,193 PS Best Media Press Paid 10,031 3,845 6,147 PS Gazeta Sporturilor Convergent Media Paid 101,627 27,301 73,820 PS Jurnalul National Editura Intact Paid 102,877 22,837 80,040 PS Libertatea Ringier Romania Paid 325,856 58,979 266,612 PS Pro Sport Publimedia International Paid 99,149 30,718 68,339 PS Romania Libera R Publicatii Paid 68,225 12,081 56,144 PS Uj Magyar Szo Editura Scripta Paid n.a. n.a. n.a. n.a. Ziarul Ziarul C.N. Paid 28,313 10,061 18,253 PS Ziarul Financiar Publimedia International Paid 23,951 2,904 21,047 PS Ziua Ziua Paid 27,273 8,977 18,295 PS

Annual 100 cele mai bune companii Ringier Romania Paid 70,000 22,269 47,657 PS pentru care sa lucrezi 100 femei de succes Ringier Romania Paid 68,000 21,504 46,456 AC 300 cei mai bogati romani Ringier Romania Paid 90,000 27,280 62,663 PS Auto Special - Catalog Burda Romania Paid 15,000 5,987 8,798 PS Business Woman The Marketer Magazine Paid n.a. n.a. n.a. n.a. infoConstruct Infoconstruct Free n.a. n.a. n.a. n.a.

Biannual Alergiile (Reteaua Info-Sanatate) Brand Development Free 20,000 - 20,000 AC Glandele Endocrine Brand Development Free 40,000 - 40,000 AC (Reteaua Info-Sanatate) Libertatea pentru femei - Retete Ringier Romania Paid 90,000 16,052 73,812 PS Libertatea Special Sanatate Ringier Romania Paid 70,000 22,331 47,670 PS Lucru de mana Edipresse A.S. Paid 18,000 3,283 14,718 PS Psihosomatica Brand Development Free 20,000 - 20,000 AC (Reteaua Info-Sanatate) Terapii Alternative Brand Development Free 40,000 - 40,000 AC (Reteaua Info-Sanatate) Unica Wedding Ringier Romania Paid 30,000 16,445 13,553 AC

Quarterly Proiect Archeton Paid n.a. n.a. n.a. n.a. VIVA Biografii Edipresse A.S. Paid 20,000 6,162 13,838 AC

6 issues / year Alimentatia Corecta Brand Development Free 20,000 - 20,000 AC (Reteaua Info-Sanatate) InterCity Magazin Astrid Business Development Free 15,000 - 15,000 AC Sanatatea Copilului Brand Development Free 20,000 - 20,000 AC (Reteaua Info-Sanatate)

10 issues / year Business Adviser Apulum 94 Free 10,000 10,000 AC Business Point Apulum 94 Paid 20,000 20,000 AC Euroinvest Euroest Invest Free 29,000 - 29,000º AC

3 issues / week Anuntul Telefonic Anuntul Telefonic Paid n.a. n.a. n.a. n.a.

Source: BRAT / AC - Audit Certificate for H1 & H2 2007 PS - Audit Certificate for H1 2007 & Publisher Statement for H2 2007 www.initiative.com press 53

LOCAL PUBLICATIONS Publication Publisher Frequency Type Print run Returns Circulation Source /issue /issue /issue ALBA Informatia de Alba Satex SRL Daily Free Monitorul de Alba Compania de Media Daily Paid Unirea Unirea Pres SRL Daily Paid 21,574 332 21,243 AC

ARAD Adevarul de Arad Inform Media Daily Paid 23,577 416 23,159 PS Arad Expres Inform Media Daily Free 11,746 11,746 PS Casa si Biroul - Timisoara si Arad LS Invest Monthly Free Nyugati Jelen Occident Media Daily Paid Observator Aradean Observator Daily Paid Publitim - Arad Edition Inform Media Weekly Paid 2,817 606 2,391 PS

ARGES AG-24-FUN Bazar Media Fortnightly Free Arges Expres Arges Expres Press Daily Paid Argesul Liber Argesul Liber Daily Paid & Arges Press Casa si Biroul - Pitesti LS Invest Monthly Free Curierul Zilei Brio Star Ind Daily Paid Evenimentul Muscelean Auto Aro Group Biweekly Paid Impact in Arges/ Ancheta MGM Arges Company Weekly Paid Jurnal de Arges Jurnal C&G de Arges Weekly Paid Observatorul Argesean Tipcom SRL Daily Paid Realitatea Musceleana Muscel Media Trust Weekly Paid Societatea Argesana Vasicos Media Daily Paid Top Pitesti Arges News Daily Paid 9,783 1,791 7,988 PS Ziarul de Arges 7 Zile Image Weekly Paid Zile si Nopti Pitesti Zile si Nopti Fortnightly Free 8,740 69 8,671 PS

BACAU Desteptarea Desteptarea Bacau Daily Paid 5,864 609 5,255 PS Desteptarea Ghid TV Desteptarea Bacau Weekly Free 8,635 742 7,893 PS Gazeta de Bacau Weekly Paid Monitorul de Bacau Confluente SRL Daily Paid Observator de Bacau Best Media Consulting Weekly Paid Onesti Expres Desteptarea Bacau Weekly Paid Ziarul de Bacau Mediabac Daily Paid 2,197 374 1,615 PS Ziarul de Bacau Ghid TV Mediabac Weekly Paid

BIHOR Auto Info Monthly Free Bazar Bihorean Inform Media Weekly Paid BH-24-FUN Bazar Media Fortnightly Free Bihari Naplo Inform Media Daily Paid 14,844 489 14,107 PS Bihoreanul Publimedia International Weekly Paid 5,202 1,453 3,747 PS Casa si Biroul LS Invest Monthly Free Crisana Anotimp Casa de Presa Daily Paid si Editura Gazeta de Oradea Token Media Weekly Paid Informatia de Vest Informatia de Vest SRL Weekly Paid Jurnalul Bihorean Inform Media Daily Paid 16,710 979 15,698 PS Jurnalul de Dimineata Daily Paid Piata Bihoreana Carnival Beauty Weekly Paid Realitatea Bihoreana Realitatea Bihoreana Daily Paid Zile si Nopti Oradea Zile si Nopti Fortnightly Free 7,165 58 3,992 PS

BISTRITA NASAUD Atac de Bistrita Weekly Paid Gazeta de Bistrita Gazeta de Bistrita SRL Weekly Paid Mesagerul Mesagerul Daily Paid Rasunetul Casa de Presa si Daily Paid Editura Rasunetul SA Servus Bistrita TMT Media International Weekly Paid press www.initiative.com

Publication Publisher Frequency Type Print run Returns Circulation Source /issue /issue /issue

BOTOSANI Actualitatea Botosaneana Actualitatea Botosaneana Daily Paid Jurnal de Botosani si Dorohoi Jurnalul Online Weekly Paid Jurnalul de Dimineata Jurnalul Online Weekly Paid Monitorul de Botosani Mediapress Daily Paid 7,494 411 7,083 PS Monitorul de Botosani - Ghid TV Mediapress Weekly Paid

BRAILA Arcasu' ARCAS Trade Daily Paid Braila Daily Paid Monitorul de Braila Grup Pres SRL Roman Daily Paid Obiectiv Vocea Brailei Double P Media Daily Paid 5,195 1,256 3,935 PS Obiectiv Vocea Brailei-Ghid TV Double P Media Weekly Free 7,001 1,554 5,447 PS Semnal de Galati si Braila Impact Consulting Weekly Free Ziarul de Braila Trustul de Presa Daily Paid Dunarea de Jos

BRASOV Brassoi Lapok Editor BL 49 Weekly Paid Buna Ziua Brasov City Press SRL Daily Paid BV-24-FUN Bazar Media Fortnightly Free Casa si Biroul - Bucuresti LS Invest Monthly Free 15,000 80 14,920 AC Gazeta de Transilvania Gazeta de Transilvania Daily Paid Informatia Brasovului Tipotex Weekly Paid Monitorul de Fagaras Superpress Daily Paid Monitorul Expres Monitorul Expres Daily Paid 2,877 340 2,536 PS My City Brasov AdVision Company Monthly Paid Pretul Zilei Pretul Zilei SRL Weekly Paid Smart Info Smart Info SA Fortnightly Free Transilvania Expres Tipotex Daily Paid 9,162 1,088 8,074 PS Zile si Nopti Brasov Zile si Nopti Fortnightly Free 18,308 113 18,195 PS

BUCHAREST 24-FUN Bazar Media Weekly Free 60,000 21 59,979 AC 4cars Novus Media Fortnightly Free 10,000 18 9,982 PS Bucharest Cream of the Crop Cremvertise Monthly Free 18,750 - 18,750 PS Bucharest In Your Pocket IYP Romania Monthly Free Bucharest Matin Bucharest Nightlife Crystal Publishing Group Monthly Free Bucharest Crystal Publishing Group Monthly Free What Where When Magazine Business Review Business Media Group Weekly Free 10,636 - 10,582 PS Casa si Biroul - Bucuresti LS Invest Monthly Free 25,000 230 24,770 AC Compact Bucuresti Ringier Romania Daily Free 158,138 - 158,138 PS My City Bucharest AdVision Company Quarterly Free 50,000 - 49,615 AC Oferte Speciale Oferte Speciale Monthly Free 54,596 - 54,108 PS RED New Europe Media Monthly Free 19,167 - 19,167 PS Sapte Seri Kopa Publicatii Weekly Free 60,000 69 59,931 PS Stop to Shop Tycoon Media Press Monthly Free 15,000 - 15,000 AC Welcome to Bucharest Crystal Publishing Group Annual Free

BUZAU Amprenta Weekly Paid Opinia Opinia SA Daily Paid Sansa Buzoiana Tipogrup Press Daily Paid 5,019 971 3,598 AC Strada Strada Trust Press Biweekly Paid Viata Buzaului ATN Trust Press Daily Paid

CALARASI Argument Argument SRL Weekly Paid Curierul de Calarasi Curier XXL SRL Weekly Paid Exclusiv Media Sud Est Weekly Paid Jurnalul de Calarasi Media Star SRL Weekly Paid Jurnalul de Calarasi - Gratuit Media Star SRL Weekly Free Semnal de Ialomita si Calarasi Impact Consulting Weekly Free www.initiative.com press 55

Publication Publisher Frequency Type Print run Returns Circulation Source /issue /issue /issue

CARAS SEVERIN 24 Ore Red Apple International Daily Paid Sud Vestul Sud-Vest Resita Daily Paid Timpul Inform Media Daily Paid 7,269 469 5,736 PS

CLUJ Adevarul de Cluj Casa de Editura Napoca Daily Paid Aranyos 21 Optima Press Monthly Paid Auto Business Auto Business Media Monthly Free Buna Ziua Ardeal Ziua de Ardeal Weekly Paid Casa si Biroul - Cluj-Napoca LS Invest Monthly Free CJ-24-FUN Bazar Media Fortnightly Free Cluj Expres Inform Media Daily Free Clujeanul Publimedia International Weekly Paid 8,073 2,028 6,045 PS Foaia Transilvana Qmedia Weekly Paid Gazeta de Cluj Limil SRL Weekly Paid Informatia Cluj Mediamira Editura Daily Free Kronika Casa de Editura Kronika Daily Paid Monitorul de Cluj Compania de Media Daily Paid Obiectiv - Turda Obiectiv Media Weekly Paid Piata de la A la Z Celina SRL Weekly Paid 6,985 1,910 5,075 PS Saptamana Clujeana RCC Media Weekly Paid Sapte Seri Cluj Kopa Publicatii Fortnightly Free 20,000 41 19,959 PS Select 21 Optima Press Quarterly Paid Szabadsag Szabadsag SRL Daily Paid Weekender Enterface Media SRL Weekly Free Ziarul 21 Optima Press Weekly Paid Ziarul Clujeanului Publimedia International Daily Paid Zile si Nopti Cluj Zile si Nopti Fortnightly Free 19,865 183 19,682 PS

CONSTANTA Atitudinea Replica Daily Paid Buna Ziua Constanta Publicitate Fortnightly Free 15,364 - 15,364 AC Constanta What Where When Crystal Publishing Group Quarterly Free Cuget Liber Trustul de Presa Daily Paid 11,000 Cuget Liber Fitzuica Weekly Free Impact - Slobozia Dan Press Biweekly Paid Jurnalul de Constanta Daily Paid Liderul (Independentul) Combat Press SRL Daily Paid My City Constanta AdVision Company Observator de Constanta Sapro Daily Paid Seara de Seara Seara de Seara Weekly Free Telegraf Constanta Compress Daily Paid

COVASNA Adevarul Covasnei Tracia SRL Daily Paid Cuvantul Nou Cuvantul Nou SRL Daily Paid Haromszek H-Press Daily Paid Observatorul de Covasna Multicultural Center SRL Daily Paid Szekely Hirmondo Profiton Weekly Paid Yoo! Magazin Chronos Advertising Fortnightly Free

DAMBOVITA Dambovita Dambovita Publicistica SRL Daily Paid Impact - Dambovita Impact Weekly Paid Jurnalul de Dambovita Artpress Impact SRL Daily Paid Raid de Dambovita LVS Crepuscul Biweekly Paid 2,926 308 2,618 PS Semnal de Dambovita si Valcea Weekly Paid

DOLJ Casa si Biroul - Craiova LS Invest Monthly Free Cuvantul Libertatii Cuvantul Libertatii Daily Paid DJ-24-FUN Bazar Media Fortnightly Free press www.initiative.com

Publication Publisher Frequency Type Print run Returns Circulation Source /issue /issue /issue

Editia speciala Editie Speciala Popular Daily Paid 15,418 1,050 14,367 AC Gazeta de Sud Media Sud Management Daily Paid 29,047 1,325 27,723 PS Gazeta de Sud Media Sud Management Weekly Free 3,127 736 2,391 PS - Editie de Duminica Gazeta de Sud - Ghid TV Media Sud Management Weekly Paid 36,753 2,447 34,155 PS Indiscret in Best Media Group Weekly Paid 5,735 1,363 4,373 PS Sapte Seri Craiova Kopa Publicatii Fortnightly Free 20,000 42 19,959 PS Top in Top Kennedy Media Fortnightly Free Zile si Nopti Craiova Zile si Nopti Fortnightly Free 8,885 59 8,826 PS

GALATI Cover Ginger Group Monthly Free Impartial Daily Paid Monitorul de Galati Publimedia International Daily Paid Realitatea Pompidu SRL Weekly Free Viata Libera Trustul de Presa Daily Paid 11,246 940 10,307 PS Dunarea de Jos Zile si Nopti Galati Zile si Nopti Fortnightly Free

GIURGIU Giurgiu Expres ARLD Giurgiu Fortnightly Free Giurgiuveanul Giurgiuveanul Daily Paid Informatia de Giurgiu RomProd SRL Weekly Paid Jurnal Giurgiuvean Paty SRL Daily Paid Semnal de Ilfov si Giurgiu Impact Consulting Weekly Free

GORJ 7 Zile 24 de Ore Press Weekly Paid Adevarul de Gorj Hevatex Com SRL Weekly Paid Gorj Domino Zonal Media SRL Daily Paid Gorjeanul Gorjeanul SRL Daily Paid Impact in Gorj GNC Press Daily Paid Informatia Gorjului M&M Computers SRL Weekly Paid Scandal de Gorj Lexane Press Daily Paid

HARGHITA A Nap Daily Paid CamionSupermarket Unionpress Weekly Paid 13,165 5,673 7,492 PS - Odorheiu-Secuiesc Harghita Nepe C.J. Harghita Daily Paid Informatia Harghitei Adevarul Harghitei SRL Daily Paid Udvarhelyi Hirado Editura UH Daily Paid Uj Kelet Kelet Info Kft Weekly Paid Vásárhelyi Hírlap Editura UH Daily Paid Vocea Casa De Editura Weekly Paid - Julien Sorel Yoo! Magazin Chronos Advertising Fortnightly Free

HUNEDOARA Cuvantul Liber Inform Media Daily Paid 7,782 429 7,353 PS EuroPiata Hunedoreana Business Media HD Weekly Paid Gazeta de Hunedoara Elianrar Media Weekly Paid Gazeta Vaii Jiului TVP Media Daily Paid Hunedoara Expres Inform Media Daily Free Hunedoreanul Publimedia International Daily Paid 6,605 1,239 5,366 PS infoExpres TVP Media Weekly Paid Matinal Redtip Daily Paid Pretul Exact Total Media SRL Weekly Paid Replica Micro Mega Computers Weekly Paid 2,624 505 1,995 PS Servus Hunedoara TMT Media International Daily Paid Zile si Nopti Deva Zile si Nopti Fortnightly Free

IALOMITA Gazeta de Sud-Est Gazeta de Sud-Est SRL Biweekly Paid Ialomita Ialpress SRL Biweekly Paid www.initiative.com press 57

Publication Publisher Frequency Type Print run Returns Circulation Source /issue /issue /issue

Impact Dan Press Slobozia Biweekly Paid Independent OGL Press Weekly Paid Jurnalul de Ialomita Coris 2000 SRL Biweekly Paid Mesagerul de Urziceni Mesagerul de Urziceni Weekly Paid Puls Weekly Paid Semnal de Ialomita si Calarasi Grupul de Presa Semnal Daily Paid Stirea Biweekly Paid Tribuna Ialomitei Coris 2000 SRL Biweekly Paid

IASI AutoPlay AutoPlay Monthly Paid Casa si Biroul - Iasi LS Invest Monthly Free Cityscape Absolut Media SRL Monthly Free Evenimentul de Iasi Phoenix Grup Daily Paid Financiarul DS Press Weekly Paid Flacara Iasiului Lider Press Daily Paid Ieseanul Publimedia International Weekly Paid 6,386 1,712 4,673 PS IS-24-FUN Bazar Media Fortnightly Free Jurnalul de Est Jurnalul de Est SRL Daily Paid Monitorul de Iasi Centrul de Cercetare Daily Paid Transilvan Opinia Studenteasca Opinia Studenteasca Weekly Free Ziarul de Iasi Grupul de Presa Daily Paid 11,701 2,057 9,644 PS Medianet Ziarul de Iasi - Ghid Auto Grupul de Presa Weekly Free Medianet Ziarul de Iasi - Ghid IT Grupul de Presa Weekly Free Medianet Ziarul de Iasi - Ghid TV Grupul de Presa Weekly Free 14,291 2,449 11,842 PS Medianet Ziarul de Iasi - Ghidul Casei Grupul de Presa Weekly Free Medianet Zile si Nopti Iasi Zile si Nopti Fortnightly Free 9,000 60 8,940 PS

MARAMURES Banyayideki Uj Szo Genius Weekly Paid De toate pentru noi CPD ING VAL SRL Weekly Paid Gazeta de Maramures Carp Media Weekly Paid 4,323 902 3,420 PS Glasul Maramuresului Mega Press FM Daily Paid Graiul Maramuresului Graiul maramuresului Daily Paid Hora Locala a Maramuresului Roman's Weekly Paid Informatia Zilei Maramures Solpress Daily Paid 5,352 336 5,017 PS Jurnal de Vineri Weekly Paid NV-24-FUN Bazar Media Fortnightly Free Ora Locala Weekly Paid Viata Maramuresului Viata SRL Weekly Paid Zile si Nopti Baia Mare Zile si Nopti Fortnightly Free

MEHEDINTI Datina Datina SRL Daily Paid Informatia de Severin Daily Paid Mehedinteanul Weekly Paid Obiectiv Mehedintean Aspress Weekly Paid Piata Severineana Piata Severineana SRL Biweekly Paid Vocea Mehedintiului Daily Paid

MURES 24 Ore Muresene Edipres Tipo Daily Paid CarBox CarBox SRL Monthly Free Casa si Biroul - Targu-Mures LS Invest Monthly Free Cuvantul Liber Cuvantul Liber Daily Paid Flash Editura Sherpa Weekly Paid Jurnal Sighisoarean JSR Sighisoara Weekly Paid Jurnalul Sighisoara Reporter Editura Muresana Weekly Paid MS-24-FUN Bazar Media Fortnightly Free press www.initiative.com

Publication Publisher Frequency Type Print run Returns Circulation Source issue issue issue

Nepujsag Impress SRL Weekly Paid Piata imobiliara muresana Nec Décor SRL Weekly Paid Vocea Casa De Editura - Julien Sorel Zi de Zi Elianrar GMI Daily Paid Ziarul de Mures Aulita GMH Weekly Paid Zile si Nopti Targu Mures Zile si Nopti Fortnightly Free 14,712 120 14,591 PS

NEAMT 7 Zile Grupul de Presa Weekly Paid Tele 7 Neamt Ceahlaul Sedpress Ceahlaul SRL Daily Paid Gazeta de Neamt Incomod Media SRL Weekly Paid Monitorul de Neamt Grupul de Presa Accent Daily Paid 3,393 280 3,112 PS Monitorul de Roman Grupul de Presa Accent Daily Paid 1,437 161 1,276 PS Realitatea Media Realitatea Media Daily Paid 2,742 275 2,467 AC Ziarul de Roman Nord Est Group Daily Paid 1,217 96 1,121 PS

OLT Gazeta de Olt Click News Daily Paid 2,332 201 2,131 PS Gazeta de Sud - Editie de Olt Media Sud Management Daily Paid Gazeta Oltului ROM - CAR - DO Daily Paid

PRAHOVA Agora Campus Agora Monthly Free Communication Consult Casa si Biroul - Ploiesti LS Invest Monthly Free Gazeta de Prahova Laz Advertising Daily Paid Informatia Prahovei M&M Computers SRL Daily Paid Monitorul de Prahova Bloom Press Daily Paid Opinia Romaneasca Ploiestii Prahova Raid de Prahova LVS Crepuscul Triweekly Paid 4,115 521 3,594 PS Republicanul Bloom Press Daily Paid 2,082 394 1,687 PS Telegraf de Prahova Dixitpress Daily Paid Viata Prahovei Glasul Prahovei Weekly Paid Weekender Enterface Media SRL Weekly Free Zile si Nopti Ploiesti Zile si Nopti Fortnightly Free 6,923 62 6,862 PS

SALAJ Gazeta de Salaj Weekly Paid Graiul Salajului Graiul Salajului SRL Daily Paid Magazin Salajean Magazin Salajean Daily Paid Salajeanul Media Grup SRL Daily Paid Szilagysag Naplo Fundatia Communitas Daily Paid

SATU MARE Gazeta de Nord - Vest Nord Vest Trust Media Weekly Paid Glasul Satmarului Sampress Sun Daily Paid Informatia Zilei Solpress Daily Paid 14,292 274 14,018 PS Informatia Zilei de Duminica Solpress Weekly NV-24-FUN Bazar Media Fortnightly Free Friss Ujsag Inform Media Daily Paid 10,757 522 10,235 PS Zile si Nopti Satu Mare Zile si Nopti Fortnightly Free 4,640 32 4,608 PS

SIBIU Casa si Biroul - Sibiu LS Invest Monthly Free De toate pentru toti Ompres Biweekly Paid Hermannstadter Zeitung Fundatia Zeitung Weekly Paid Informatia Saptamanii Infcomed SRL Weekly Paid Monitorul de Medias Compania de Media Weekly Paid Monitorul de Sibiu Compania de Media Weekly Paid 1,754 510 1,234 AC Rondul Biweekly SB-24-FUN Bazar Media Fortnightly Free Sibiu Business Cos Prest Monthly Free www.initiative.com press 59

Publication Publisher Frequency Type Print run Returns Circulation Source issue issue issue

Sibiu Standard Ziarul de Sibiu Daily Paid Tribuna Sibiului Casa de Presa Daily Paid 16,270 488 15,781 PS si Editura Tribuna Tribuna Sporturilor Casa de Presa Weekly Paid si Editura Tribuna Ziarul de Sibiu Ziarul de Sibiu Weekly Paid Zile si Nopti Sibiu Zile si Nopti Fortnightly Free 13,298 70 13,228 PS

SUCEAVA Crai Nou Crai Nou Daily Paid Jupanu' Media Rom-Sor SRL Weekly Paid Monitorul de Suceava Interpress Daily Paid 9,068 404 8,664 AC Monitorul de Suceava - ghid TV Interpress Weekly Obiectiv de Suceava XXL Media SRL Daily Paid Oferta Imobiliara Oferta Suceava Weekly Paid Pretul Pretul SRL Weekly Paid

TELEORMAN Gazeta de Teleorman Tele Media Press SRL Daily Paid Informatia Teleormanului Informatia Teleorman Daily Paid Teleormanul Telepres Edit SRL Daily Paid

TIMIS Actualitatea Lugoj Actualitatea Press Daily Paid Agenda Trustul de Presa Weekly Paid 48,412 4,111 44,301 PS Agenda Timisoara Agenda Zilei Trustul de Presa Daily Paid 4,830 160 4,659 PS Agenda Timisoara Business Camera de Comert 2,500 Timisoara Banateanul Publimedia International Weekly Paid 8,605 2,231 6,367 PS Casa si Biroul - Timisoara si Arad LS Invest Monthly Free Focus Vest Pleiada Timisoara Weekly Paid Fotbal Vest Fotbal Vest SRL Weekly Paid Heti Új Szó Reflex Weekly Paid Jurnal Banatean Inform Media Daily Paid Publitim Inform Media Weekly Paid 21,381 1,781 20,216 PS Redesteptarea Redesteptarea Weekly Paid 7,400 Press Lugoj Renasterea Banateana Timpress Daily Paid 14,106 734 13,372 PS Sapte Seri Timisoara Kopa Publicatii Fortnightly Free 20,000 38 19,962 PS Timis Expres Inform Media Daily Free 31,052 - 31,052 PS TM-24-FUN Bazar Media Fortnightly Free Uj Magyar Szo Editura Scripta Daily Paid Vacances Clan Advertising Monthly Paid Zile si Nopti Timisoara Zile si Nopti Weekly Free 10,647 155 10,492 PS

TULCEA Acum Editare Preesa SRL Daily Paid Delta Delta SA Daily Paid Obiectiv Tulcea Mega Group Daily Paid Tulcea Expres Sud-Est Express SRL Monthly Paid

VALCEA Arena Valceana Rempres Biweekly Paid City Citymedia Weekly Paid Curierul de Ramnic Citymedia Daily Paid Curierul de Valcea Curierul de Valcea SRL Daily Paid Gazeta de Valcea Click News Daily Paid Mica Publicitate Valceana Mica Publicitate Valceana Triweekly Paid Monitorul de Valcea Horiapress Daily Paid Profesionistii DTV Media Monthly Free Radical Impact Press Weekly Paid Vocea Valcii Promeo Media SRL Daily Paid Ziarul de Valcea Pirmar SRL Biweekly Paid press www.initiative.com

Publication Publisher Frequency Type Print run Returns Circulation Source issue issue issue VASLUI Adevarul de Vaslui Press Grup Daily Paid Meridianul Grupul de Presa Weekly Paid Evintet Te - Ra Monitorul de Vaslui Euro Iris Daily Paid Obiectiv Vaslui EMI Press Daily Paid 4,051 373 3,678 PS Obiectiv TV - Supliment EMI Press Weekly Paid 6,985 1,910 4,913 PS

VRANCEA DADAlog Dada Media Monthly Free 9,667 367 9,300 AC Monitorul de Vrancea Trinec Serv Daily Paid 5,418 1,218 4,084 AC Monitorul de Vrancea-Ghid TV Trinec Serv Weekly Free 6,281 1,270 4,943 AC Monitorul de Vrancea- Sport Trinec Serv Ziarul de Vrancea Nord-Est Distribution Daily Paid 5,074 745 4,326 PS Ziarul de Vrancea-Ghid TV Nord-East Distribution Weekly Free 5,512 882 4,626 PS

Source: BRAT and Initiative Media AC - Audit Certificate for H1 & H2 2007 PS - Audit Certificate for H1 2007 & Publisher Statement for H2 2007

Future perspectives • large media groups will continue their expansion by either buying already existent publications or launching new ones

• readership fragmentation will continue to increase CPTs

• new launches of up-market and free publications

• using cover mounts and promotional contests as marketing tools will put an increasing pressure on the publications’ marketing expenditures, bringing an increase in the marketing budgets

• the number of titles audited by BRAT and measures by the national Readership Survey will increase

• the Internet presence of publications will increase and develop strengthening the title’s grip on the ad market and adding an increasingly important share of revenue. www.initiative.com outdoor & indoor 61

“Opportunity is often difficult to recognize; we usually expect it to beckon us with beepers and billboards.” William Arthur Ward quotes (American dedicated scholar, author, editor, pastor and teacher)

Overview Vision Media proposes a national network including the largest 10 cities and so does their main The world outdoor market attracted increasingly competitor, Phoenix Media. larger budgets, leading the consolidation of its market share. On the other hand, adding to the offering, in Bucharest and other cities there is a number of A new trend in Outdoor is represented by the small companies operating 1 to 3 screens. development of the Digital OOH. Advanced technologies govern the development of both the The budget invested in advertising on the 40+ TV internet and the outdoor advertising, which screens in operation reached 3 million € a year. contribute to the decrease of traditional advertising channel such as TV, radio and press. TV Screen

The trend of increasing volumes where the OOH The market increase triggers the decision of market is concerned continued in 2007. The rate of strategic international suppliers to invest on the market growth is estimated at 28% versus 2006 Romanian Outdoor market and achieve and was generated by the overall development of consolidation and standardization of offering advertising market. through acquisitions of local companies. Thus, in 2007 the International leader in Outdoor, Clear The banning of tobacco advertisement did not Channel, purchased Klass Advertising, the leader affect the Outdoor market at all as other categories of rooftop and mesh market, which ranks 4th at rushed in to take over the respective inventory, thus present. expanding their existing networks. Beginning with 2006 some clients established permanent networks to ensure continuous exposure in selected locations as well as display of innovative solutions provided by media agencies and OOH suppliers.

Due to lacking locations for classic billboards and street furniture, OOH suppliers found new solutions instead such as big locations (mesh and mega boards) and temporary locations for special projects (cubes, prisms, etc)

The price increase for the main OOH supports was an important effect of the market development, which was considered surprising by some In 2007 Affichage Romania developed a plan for specialists in the first year after tobacco banning. achieving the 2nd position in the Outdoor market We estimate that the price increase was between mainly through the acquisition of regional suppliers, 10 % and 25%, depending on the support type. such as AMCO of Brasov.

A secondary effect of increasing demand was the Hungarian operator Multireklam, owner of Effect rapid development of TV screens, their numbers Media, continued its acquisition policy by taking doubling every year. over Outdoor Media (supplier specializes in Unipols) and Communications Media (regional The development of this OOH support was operator for and Banat). Thus, in carried by an increasing number of suppliers - 2008 Affichage takeover the Multireklam Phoenix Media, Vision Media Plus, Media operations, consolidating the 2nd position in Advertising - especially in Bucharest. Romania. outdoor & indoor www.initiative.com

Due to the growth of mesh and special-project developers aimed at big and spectacular locations segment, some specialist companies such as attracting substantial budgets for long periods of United Media outperformed other operators such time. as Imperial Media seeing their revenues increase just as other small and medium companies did. And Measurement so, in opposition to the consolidation process at the top end of the market, a fragmentation is taking Another year went by without the OOH industry place at the other end. being able to join efforts together in establishing and releasing a long-expected measurement study. The rapid developments generated by recent Some individual efforts were made by Affichage, acquisitions and changes in ownership make it News Outdoor and EpaMedia trying an individual quite difficult to estimate the size of each player. classification for their own billboards but without Nevertheless, based on the public information and Initiative’s own information and estimates, in 2007 success. Without modern and calibrated tools for the ranking of the major operators by market planning and selection, OOH suppliers used only shares is as follows: photographs and maps. • Epa 38 % • Affichage 13% Regulation and Developments • News Outdoor 13% • Klass 10% In some cities more restrictive stipulations • Multireklam 8% regarding outdoor were enforced, but in Bucharest • New Age 6% these criteria are still unclear and deregulated. The • Others 12% International suppliers and the local authority met a few times in order to reach an agreement towards a clear, fair and effective Outdoor regulation but nothing was really achieved. At a similar round table with the local authority Affichage, in partnership with JCDecaux, EpaMedia and News Outdoor asked the Bucharest City Hall to organize an auction for new, modern, urban furniture with a similar ‘result’ so far.

Transit advertising has also been stopped in view of organizing a tender to select the future operator of the transit advertising contract. The process is long, yet no resolution to the matter comes into Customers sight for the current year (2008) depriving advertisers of a valuable advertising channel and The most dynamic category in OOH market was the suppliers of a potentially important piece of “banking & financial services” due to launching and business. re-branding for banks and insurance companies. Automotive category follows right after. The The mind OOH formats telecommunication category had a sizeable investment, due to permanent campaigns on According SNA FOCUS data (Jan07-Jan08), extensive national networks. The Retail category is the main types of outdoor advertising observed by leader in terms of revenue share on the Romanian 14-64 individuals living in urban areas are Bus Outdoor market. Moreover, Retail is on an Shelters, Transit advertising, TV screens and large increasing trend due to launching of new brands (Real, Hornbach, Auchan, etc) and opening of new format posters. Last year, there were 8 millions hypermarkets and commercial centers. persons exposed to outdoor advertising over 3 hrs/day. 10% of these consider that are too many The Real Estate category continued to invest ever advertisements on the street and 6,5 % enjoy larger budgets due to demand on the part of many watching advertisement street posters.

www.initiative.com outdoor & indoor 63 Share of faces of Share

9% 3% 1% 3% 5% 2% 1% 2%

16% 17% 32% 10% 100% Total no. of faces of no. Total 848 410 580 181

1151 5593 3718 6137 3103 1092 1797

11419 36.029 Mistic ------98 88 12

800 283 200

1.481 Communications Media Communications - - - - -

22 95 79 29 24

195 646 202 Imperial Media Imperial - - - - 8

28 69 44 18 38

595 165 225 Klass Advertising Klass ------

115 110 745 520 Wizard ------

2

10 16 632 604 United Media United ------

1 2

34 53 65 72 227 Ultravision - - - -

1 4 8

12 220 102 200 690 143 News Outdoor News - - 3 28 75 80 48

834 314 300

1055 1086 3.823 New Age Advertising Age New - - 30 22 74 47 38

151 330 391 697 140

1.920 Media Advertising Media ------

11 10 49 80 30 180 Outdoor Media Outdoor

------

88 88 Effect Media Effect ------

6 1 2

14 32 271 216 Affichage - - 4 33 25 74

150 319 277

1134 3000 1550 6.566 Epa 4 8 99 848 272 440 1117 7100 1538 1962 1848 2929 18.165 Company Meshes Unipols & big signs Scrollers Citylights Pillars / Directionals /Flags / Banners Rooftops Subway Others no. of faces Total Billboards Backlits Bus-Shelers Special formats (cubes, prisma) Source: Information from above Outdoor Companies outdoor & indoor www.initiative.com

INDOOR Mall Iasi, Iulius Mall Timisoara, Lotus Market Oradea. Indoor development was triggered by the insufficient offer of classic outdoor and by the continuous need to make OOH advertising better indoor targeted, stand out and more innovative. Thus, indoor advertising market reached ca. 5 million € in 2007. formats

The increasing trend of this segment is partly due to the possibility for measuring the reach and the efficiency of indoor adverts.

The main categories advertised were: telecommunications, banking and financial services, domestic appliances, automotive, food & drinks, pharmaceutical products, FMCG and beauty care.

Indoor suppliers own specific supports in over 50 cities in different locations as: hypermarkets, supermarkets, night clubs, restaurants, high schools, universities, cinema theatres, medical clinics, pharmacies, beauty and fitness salons, airports, train stations, residential and business areas.

The main indoor suppliers on the Romanian market are: Monopoly, Bull Media, Indoor Media, Perspective 2008 Brand Management, Oops and Elevate. - The lack of outdoor inventory will continue in 2008 Monopoly Media is the largest Indoor due to increasing demand and unsolved auctions advertisement company in Romania, with an which are keeping out new investments. important market share of Indoor ad and market - The local authorities, Culture Ministry and IAA are share of digital signage. 2007 brought massive to settle some of the outstanding issues of the investments for digital signage market, around Outdoor market. 1.5 millions euro. - RATB is expected to announce the winning company of the Transit auction for Bucharest Indoor Media is on indoor market since 2004 and sometime by the end of 2008 as the old contract extended its network locations with 35 Bucharest expired at the end of 2007. high schools. - Affichage consolidate its second position on the market by acquiring Multireklam’s Romanian In 2007, Bull Media focused on the development operations. of the I-cafés. In view of 2008 Bull Media - The TV screen network will continue to develop announced development at national level. in terms of suppliers and number of sites. The increase of the Indoor market will continue at Elevate Media was founded in 2005 and is a higher rate than other types of media. We specialized in advertising inside elevators; its estimate a 40% growth by end of 2008, due to market share reached 85% of the elevators market diversification and installation of new locations in and 4% of the indoor market. malls, hypermarkets.

Brand Management Media, share of indoor market, completed its portfolio with major commercial centers such as Plaza Romania, Bucharest Mall, City Mall, Iulius Mall Iasi, Moldova www.initiative.com cinema 65

“Talking about dreams is like talking about movies, since the cinema uses the language of dreams; years can pass in a second and you can hop from one place to another. It’s a language made of image. And in the real cinema, every object and every light means something, as in a dream.” Federico Fellini (Italian Film Director1920-1993)

According to NCC (The National Centre of Cinematography) the decreasing trend recorded since 2001 continues through to 2007 in terms of active cinema units and number of tickets sold. The number of cinema viewers in Romania is the lowest in Europe, while the average number of European viewers has decreased by 2.2% compared to 2006. In 2007, Cinema accounted for 0.2% of the total net media spend (ca 1 Mio € according to Initiative’s estimation). For 2008 we estimate that the cinema advertising revenues will remain around the same amount (0% increase) The main obstacles against development of cinema advertising are: • Small number of quality cinema halls • Inconsistent development of the cinema network - 7 counties without a cinema hall, while most are concentrated in Bucharest • Price of cinema admission • High rate of piracy for newly released movies • Expansion of home cinema usage General 2004 2005 2006 2007 overview 2003 according NCC Abs. val Chg % Abs. val Chg % Abs. val Chg % Abs. val Chg %

Number of 191 155 -19% 85 -45% 73 -14% 72 -1,40% active cinemas

Admissions 4.527.054 4.002.349 -12% 2.829.563 -29% 2.776.516 -2% 2.913.033 -5%

Gross box 22.451.583 24.872.000 11% 24.423.454 -2% 28.279.665 16% 34.182.296 21% office (ron) Average admissions 0,21 0,19 -10% 0,13 -32% 0,13 0% 0,14 7,70% per habitant Average ticket 4,95 6,21 25% 8,6 38% 10,19 18%5 11,73 15% price (ron) Sursa: cncinema.ro

American blockbusters attracted the highest number of admissions irrespective of the year under analysis, followed by European productions, then Romanian ones. 2002 2003 2004 2005 2006 Film origin Abs. val % Abs. val % Abs. val % Abs. val % Abs. val %

National films 498.443 11 20.545 0,5 97.943 2,80 63.793 2,60 107.511 4,3

European 306.791 6,7 274.605 7,2 151.952 4,2 141.751 5,7 112.209 4,5 films American 3.685.181 81,3 3.464.744 91,5 3.312.462 92,6 2.258.782 90,6 2.262.417 90,5 films

Others 43.501 1 28.351 0,8 14.389 0,4 27.593 1,1 16.770 0,7

Total 4.533.916 3.788.245 3.576.746 2.491.919 2.498.907

Sursa: cncinema.ro

In 2006 Romanian productions atracted more viewers than in other years. However, as the American productions remained leaders in terms of preference, the European movies are those to loose audience. According to CNN, the number of admissions for Romanian productions increased by 70% compared to 2005, a total of 107,511 admissions being registered for 2006. cinema www.initiative.com

Major exhibition Gross box office Admissions companies (ron)

Hollywood Multiplex 1.173.104 15.703.324 Operations

Movieplex Cinema 730.342 11.592.232

R.A.D.E.F. 640.357 358.0661 RomaniaFilm City Cinema 75.304 870.449 Management U.C.I.N Studio 65.180 426.682 Bucuresti

Chicago Tour 64.713 343.019

Cinema City 45.041 563.002 Romania Quality Cinema 35.636 347.793 Bucuresti Go Multiplex 30.515 363.833 Brasov AM & PM Leasure 18.926 76.817 Serv. Prod.

Voodoo Film 17.514 206.640

Fugasin & Son 6.109 59.549 Service DMB Music 4.882 33.536 Records Blistex Tiglina 4.733 22.848 Galati Rotalic Central 667 1.911 Campina Sursa: cncinema.ro Hollywood Multiplex Operations and Movieplex are the main players in terms of earnings, with 46% market share.

Cinema advertising offers to clients a wide range of tools for brand promotion: quality on-screen advertising as well as off-screen, consumer promotions, sampling, etc. Intensively used off-screen advertising includes sponsorship and special events, product sampling on the premises, banners, posters, backlit, thematic corners, and branded cinema tickets.

Hollywood Multiplex Operations, part of Media Pro Group, is the main market player with over a million viewers in 2007. With three cinema theatres, Hollywood Multiplex Bucharest Mall, Cinema Pro si Hollywood Multiplex Lotus Oradea, Hollywood Multiplex have a 40% share of total admissions.

Movieplex Cinema is the largest cinema theater in Romania with 11 cinema halls (2537 seating’s). In 2007 Movieplex Cinema registered 230,000 viewers while the income from admissions represents 37% of total gross box office.

The main product categories using cinema advertising are: beer, automotive, insurance and banking.

Consumer insight Profile of movie goers (SNA Focus from BRAT based on Jan 07-Jan 07 release, 14-64 y.o, urban area) • Only 12% of the population 14-64, all urban went to the cinema in the last 12 months. • In terms of frequency, only 40% of cinema goers in last 12 months went to a movie at least once a month. www.initiative.com cinema 67

Graph 1: Frequency of cinema visits

Source: SNA Focus (Jan07-Jan08)- target 14-64, all urban Graph 2: Movies goers – profile (Affinity index)

Source: SNA Focus (Jan07-Jan08

According SNA Focus, the profile of cinema goers is 14-34 y.o, medium and high education and income over 150 € per month.

Perspectives 2008 Movieplex Cinema announced for May 2008 the opening of four cinema halls with digital projection (D- Cinema) and two cinema halls with 3D technology. The first screening in 3D technology will be “Indiana Jones and the Kingdom of Crystal Skull”. Movieplex’s spokesmen are optimistic that this new technology will increase the number of cinema viewers because of the quality of viewing delivered at a price which is only 2 RON more than the ticket price for a regular viewing. internet www.initiative.com

“Advertising's future is on the net” Bill Gates Facts

Online Advertising revenue in US surpassed radio Advertising and Cable Television in 2007 Radio: 10.24%; Cable television 9.33%; Internet: 10.45%

Online Advertising revenue in UK is expected to exceed that of Television in early 2009 In just three years online advertising spend has increased by £2 billion. In other words, online advertising has grown from being the smallest market sector in 2003 to the third largest in 2007, with a new high of £2,812.6 millions - This represents a market share of 15.3% (up from 11.4% in 2006). IAB UK reveals a continued growth of online advertising as this medium is expected to overtake spending on TV by the end of 2009. This is based on the fact that Internet was the biggest driver of overall advertising growth in 2007 and on the fact that key drivers are also growing: online audience (32.5 mil people are online), the pc’s are getting cheaper every day, broadband penetration is 90% of population, TV services are being launched on Internet (BBC.) Overview In 2007, Romanian Communication Market continued the accelerated trend of development. Romania’s Internet and broadband market is experiencing strong growth. Broadband services are widely available from the cable operators. Large LAN-based broadband services are also popular. According to ANRCTI, the number of internet connections reached around 5.8 million, 76% more than in 2006. Out of these, 3.2 millions are broadband connections, cable providers have an important share of 77%, followed by xDLS with 17%. Evolution of internet access connections has gathered momentum in last two years, the most important growth being recorded in 2006, when the number of internet connections increased by 80% compared to 2005 while the internet broadband connections increased by 136%. 2003 2004 2005 2006 2007 Units mill. mill. Evol. % mill. Evol. % mill. Evol. % mill. Evol. % Connections number 0.5 0.97 95% 1.83 88% 3.29 80% 5.79 76% Broadband connections (dial-up ISDn, 0.2 0.38 95% 0.75 96% 1.77 136% 3.19 80% mobil acces, dedicated acces) Narrowband connections (dial-up, mobil 0.3 0.59 95% 1.08 83% 1.53 41% 2.6 71% acces, dedicated acces) Source: www.anrcti.ro According to ANRCTI, in a classification regarding the number of broadband internet connections in UE countries, Romania ranks 10th. First positions are occupied by Germany, UK and France. Graph 1: Broadband connections in European Union Countries - 2007

Source: www.anrcti.ro (excluding dial-up connections to fixedly point and connections to mobile points) www.initiative.com internet 69

Internet penetration in Romania is 33% that is under than European average of 43%, according to World Stats. The number of internet users in Europe represents 27% of total population. The increase in number of European internet users from last four years is around 40%.

Also, the number of GSM Internet connections is on an increasing trend. Compared to 2006, when the GSM traffic was 1.7 millions minutes, in 2007 the number of minutes spent on internet increased by 40%.

Technology 2006 2007 Evol. % GSM traffic 1.7 8.4 39% (mil. minutes) GRPS/EDGE/3G 24.6 165.1 571% traffic (mil. MB) Summary 2007

• Approximately 39,000 Romanian websites generated in excess of 1,7 billion visits in December 2007 (source: www.trafic.ro) •Computer sales evolution is gearing towards mobility: Romanian buyers started to prefer laptops to desktop computers. In 2007 the laptop share market reached 26% of all PC sales. (source: www.zf.ro) • The number of residential internet users is increasing • Number of broadband connections cover 10 % of the population • Number of Internet office people is vigorously expanding • Mobile internet solutions cover well the business sector, but is still lagging behind Europe’s leading markets • Broadband connections are going rural (ADLS by Romtelecom and EU project are developing the internet penetration in the rural areas) • Internet penetration in 2007 increased by 40%, reaching a number of 5,800,000 connections • 2007 continued the trend of developing and launching with new sites on market – the major publishers developed or re-branded their sites; new comers won significant market shares, so positions within the top are changing • Joint industry committee’s initiatives emerged in a favorable environment – the steady development of the market, as well as a lot of effort undertaken by publishers and media sellers in terms of research and monitoring – IAB and BRAT online are two good examples • IAB released the technical recommendations for internet banners and e-mail marketing • BRAT released the traffic data for approx. 170 top rated sites and will launch the social demographic data in this summer (June) • The market is more dynamic yet more fragmented. At the end of 2007 there were 12 internet space sellers, but seven of them concentrate 90% of the market.

Online advertising budgets

Online advertising revenue reached an annual growth of 60% (2007 vs. 2006), hence a market share of 1.9-2% of all media budgets. The estimations for 2008 show an Internet budget of about 16 mil. € In 2007, 71% of Internet budget was used on banners, 1% on advertorials, 4% on e-mails marketing campaigns and 24% on special projects (Source: ARBO Interactive). The conclusion is that the advertisers are trying different products in order to establish the best way to reach their audience and make an impact. This can only mean a professional approach of the online communication campaigns in the near future. internet www.initiative.com

Graph 2: Net ad spends evolution – 2001 - 2008 (‘000 €)

Source: Initiative estimation

Top spenders 2005-2008 The major advertisers on Internet are especially from Telecomm, Automotive, Banking and IT/Electronics/Communication. FMCG advertisers grew their Internet spend, especially on personal care, drinks and food sectors.

Top spenders 2005 2006 2007 2008 est. Telecommunications Telecommunications Financial services Financial services Financial services Financial services Telecommunications Telecommunications Auto Auto Auto Auto IT&C IT&C IT&C IT&C Electronics FMCG - beer, wine, liquor FMCG - Soft Drinks FMCG - Personal care FMCG - beer, wine, liquor Electronics FMCG - beer, wine, liquor FMCG - beer, wine, liquor FMCG - Personal care FMCG - Personal care Electronics FMCG - Soft Drinks FMCG - Soft Drinks FMCG - Soft Drinks FMCG - Personal care Electronics FMCG - Foods FMCG - Foods FMCG - Foods FMCG - Foods FMCG - Drugs FMCG - Drugs FMCG - Drugs FMCG - Drugs Source: Initiative estimation Top players in Internet sales The market is becoming more and more fragmented compared to the years when 3 big players were the Internet market. In 2007, there were 12 Internet space vendors and the number is still expected to grow. 1. BOOM (vendor for 180+ websites): inventory of 444 millions page views 2. ARBOmedia (media sales house for 140+ websites): inventory of 160 millions page views 3. Adevolution (online sales house for 120+ websites): inventory of 180 millions page views 4. Realitatea Catavencu (online sales house for 20 websites): inventory of 20 millions page views 5. MPInteractive (Digital division of Media Pro – biggest TV media group - owns 37 websites): inventory of 617 millions page views (www.conquiztador.ro has a share of impressions of 81% ) 6. Internet Corp (online publisher with 17 websites): inventory of 60 millions. page views 7. SMInteractiv (online sales house for 20+ websites): inventory of 40 millions. page views 8. Rol Networks (online publisher with 47 websites): inventory of 42 millions page views 9. Media Café (online broker for Yahoo!, gsmarena.com and mobile.de): inventory of 3200 mil. page views www.initiative.com internet 71

Consumer insight The most visited sites in last four month are www.softpedia.com, www.clubafaceri.ro, www.acasa.ro, www.clubneogen.ro and www.rol.ro. As it is showed in tables, the number of unique visitors for these sites is increasing. Softpedia.com, the leader in the most visited sites classification, gathered with 26% more visitors in December, comparing to September, when SATI was launched. The on-line editions of the most important newspapers and magazines are founded in the most visited sites classification. The leader in this category is Gazeta Sporturilor, with 649,204 unique visitors in December.

Sept. 2007 Oct. 2007 Site Company Unique Unique Visits Impressions Visits Impressions clients clients 1 www.softpedia.com SoftNews NET 4.017.881 16.350.993 1.604.701 4.269.801 17.430.035 1.768.266 2 www.clubafaceri.ro Medianet SRL 2.100.913 7.041.614 1.156.771 2.581.497 8.558.436 1.404.202 3 www.acasa.ro Vodanet 1.913.135 10.086.468 835.285 2.111.967 11.792.964 945.583 4 www.neogen.ro Neogen 5.684.281 107.839.649 1.101.607 6.668.865 115.535.857 1.267.630 5 www.rol.ro ROL 1.447.637 9.648.729 674.347 1.790.658 12.316.470 847.540 6 www.roportal.ro Roportal SRL 1.495.299 4.830.458 841.142 1.624.466 5.073.679 930.874 7 www.ele.ro Vodanet 806.388 4.721.317 418.931 874.164 4.814.425 474.820 8 www.clopotel.ro Active Soft 1.454.650 12.249.774 510.541 1.682.004 12.828.644 602.428 9 www.ejobs.ro Ejobs Grup 2.941.708 38.276.198 720.364 3.289.153 45.047.481 820.613 10 www.protv.ro PRO TV 1.640.263 6.589.954 664.303 1.744.503 7.150.879 695.595 11 www.gsp.ro Unlimited Sport Media 6.631.031 19.403.021 650.372 1.744.503 7.150.879 695.595 12 www.prosport.ro Ringier Romania 5.160.272 32.200.268 605.794 6.361.299 18.160.427 682.40 13 www.libertatea.ro Ringier Romania 2.754.017 22.758.048 518.525 5.149.666 34.364.151 633.712 14 www.evenimentulzilei.ro Ringier Romania 2.642.982 17.299.430 497.906 3.026.570 21.770.637 577.554 15 www.hotnews.ro Hotnews 2.723.562 10.609.135 669.333 3.096.065 11.506.947 772.620 16 www.computersgames.ro Computer Games Online 865.611 7.187.408 367.095 860.379 6.696.347 417.497 17 www.sport.ro PRO TV 2.878.055 14.048.027 535.108 2.790.104 13.335.017 560.836 18 www.e-scoala.ro Netbridge Investments 437.378 1.444.205 296.792 667.782 2.244.643 424.076 19 www.9am.ro Internet Corp 1.445.115 6.573.601 446.189 1.530.683 6.974.703 465.352 20 www.roon.ro Inform Media 1.039.567 16.965.173 317.461 1.188.518 20.464.261 364.299

Site Company Nov. 2007 Dec. 2007 1 www.softpedia.com SoftNews NET 4.720.078 18.271.486 1.928.405 4.759.162 18.114.419 2.022.793 2 www.clubafaceri.ro Medianet SRL 2.789.549 9.144.356 1.514.597 2.594.418 7.912.875 1.519.990 3 www.acasa.ro Vodanet 2.323.788 12.247.601 1.036.257 2.932.912 17.181.702 1.283.334 4 www.neogen.ro Neogen 6.411.045 104.724.321 1.269.876 5.718.888 100.187.375 1.206.237 5 www.rol.ro ROL 1.964.173 12.789.811 924.396 2.376.632 16.730.550 1.149.207 6 www.roportal.ro Roportal SRL 2.030.702 7.223.596 1.128.719 1.967.383 7.194.485 1.123.410 7 www.ele.ro Vodanet 1.058.705 5.484.699 565.357 1.557.232 10.639.331 818.753 8 www.clopotel.ro Active Soft 2.106.845 14.963.900 715.904 2.348.726 17.012.938 751.092 9 www.ejobs.ro Ejobs Grup 3.200.442 38.952.217 841.745 2.149.168 20.802.360 682.753 10 www.protv.ro PRO TV 1.862.561 6.891.657 730.977 1.535.356 5.820.951 668.168 11 www.gsp.ro Unlimited Sport Media 6.372.655 16.426.003 742.868 5.897.383 14.064.910 649.204 12 www.prosport.ro Ringier Romania 5.038.180 31.015.191 621.128 4.486.710 25.546.252 591.633 13 www.libertatea.ro Ringier Romania 3.314.780 25.661.801 656.411 2.743.302 20.600.734 575.951 14 www.evenimentulzilei.ro Ringier Romania 3.104.325 20.410.195 615.503 2.615.352 16.111.312 557.537 15 www.hotnews.ro Hotnews 3.009.403 9.830.577 784.443 2.150.326 7.237.634 546.166 16 www.computersgames.ro Computer Games Online 1.013.313 7.637.605 485.623 1.148.653 7.677.721 533.316 17 www.sport.ro PRO TV 2.789.460 12.895.245 543.183 2.662.265 11.809.863 499.085 18 www.e-scoala.ro Netbridge Investments 835.085 2.848.892 508.015 701.844 2.670.193 438.565 19 www.9am.ro Internet Corp 1.570.383 6.993.798 487.146 1.207.257 5.224.128 430.296 20 www.roon.ro Inform Media 1.318.855 23.655.619 414.054 1.242.755 19.409.519 429.989 Source: www.sati.ro internet www.initiative.com

According SNA Focus (Jan’07-Jan’08), 52% of Perspectives of 2008 population in urban area declared that used Internet connections in last 12 months (all urban, • The Online advertising market continues to grow 14-64 y.o.) by 50-60%. Main investing categories will be: Banking/Finance (due to the massive co- Regarding the location for Internet usage, 63% of mmunication, financial services category became person from urban area (14-16 y.o.) which declared No 1 in 2007, surpassing Telecom), Teleco- that used internet in last 12 months, used Internet mmunications, Automotives, IT&C; a big budget connection from home. growth will involve the FMCG category (personal care, food and drink, drugs) followed by Online 2006 2007 Place for using Urban area Urba area Retail, Tourism. the Internet 4123 users 4701 users Home 49% 63% • New ways of buying (Cost per Click, Cost per At Work 29% 28% Action) are sought by advertisers in order to drive Friends, relatives 27% 26% more performance and consumer interaction from their campaigns. Permission marketing campaigns School / University 18% 17% are extremely popular through special projects, Internet Cafe 22% 14% newsletters, games etc. and we expect an increase Other Places 6% 5% of the media budgets on this segment *Note: target – persons who declared that used Internet connections in last 12 months (14-64 y.o, all urban area). • Online ad spend monitoring is expected to be Most of them use to communicate by e-mail, to designed by joint industry committees (BRAT, IAB search games, movie and music and read newspapers and magazines. Romania etc) 2006 2007 Internet usage Urban area Urba area • BRAT will release the first package of social purpose 4123 users 4701 users demographic data in this spring Download 63% 64% Software / Games • TV and Internet will be the “stars” of this year Use E-mail 61% 61% advertising industry due to the main opportunities: Buy Products / Services 52% 54% The European Football Championship, the Listen Radio 36% 38% Olympics and the elections Join Group Chat / Forum 29% 32% Search Games / Music / 33% 31% • Google and Yahoo! are expected to consolidate Movies / Photo / Jokes their position on the Romanian internet market. In Read Newspaper / 30% 30% Magazines the same time social network platforms (hi5.com) Search Info with 14% 17% or external sites (GSMArena.com, mobile.de) with search engines big inventory on Romanian IP’s entered the Bank Operations 6% 9% Romanian market and other similar sites are Search for Publicity 4% 5% Small Ads expected to enter. *Note: target – persons who declared that used Internet connections in last 12 months (14-64 y.o, all urban area). • new small players are expected to enter the online market (i.e. Mirabilis Media, Sanoma Hearst already with a portfolio). www.initiative.com new media 73

“New media, like any chaotic system, are highly sensitive to initial conditions. Today's heuristical answers of the moment become tomorrow's permanent institutions of both law and expectation.” John Perry Barlow- American poet, essayist

Overview Most of companies which offer business to business services use GSM networks for their Advertising is increasingly driven by the need to marketing campaigns. Most of the campaigns use find new way to make an impact. Even at this short messages addressed to users which already moment, Romania Media Market is a market of agreed to receive promotional messages on their traditional media, we can notice a fast growth of mobile phone. These messages are related to new media: internet, cinema and mobile promotions, new products and services, advertising. More consumers are spending more promotional contests for sales increasing. and more time online and on-mobile, and the Companies which used these messages were from mobile phones offers a new opportunity to different domains: FMCG, banking, insurance and personalize advertising. press.

In Romania, mobile advertising is a small venture SMS advertising is the most useable advertising technique as most of the mobile phones are SMS and is utilized by companies which already have compatible. This affirmation is not applicable to created data bases with phone number of their own MMS advertising because even the request is very clients. These campaigns are mostly campaigns for high, it does not exist yet the technical support. gaining loyal customers more than selling. For last years, it can be noticed a fast growth of Advantages of this new type of advertising consist short messages (SMS) and multimedia messages in a much more effective business to customer (MMS) traffic per year. In 2007, SMS traffic through communication and the target group can be GSM networks was with 40% higher than 2003, reachable all the time and anywhere. when the market recorded 200,000 SMS.

Graph 1: SMS and MMS evolutions 2003-2007 (millions per year)

Source: www.anrcti.ro new media www.initiative.com

In a European context, we can not affirm that Romania is in top. In October 2007, the penetration rate of mobile telephonic services was 99%, which placed Romania on 23rd place in UE countries.

Graph 2: Mobile services penetration in European Union Countries in October 2007

Source: www.anrcti.ro

Statistics reported by ANRCTI shows that the penetration rate of mobile telephony reached 106% at the end of 2007 while the number of active users was 22.9 million. 67% of these used pre-pay SIM cards and 33% used monthly subscription services of which personal subscriptions (67%) and around one third (2.4 millions) were company contracts. Presently, the development of mobile advertising is hindered by the lack of technical capabilities. We expect the two important GSM operators in Romania, Orange and Vodafone, to cater to this market trend by implementing specialized mobile platforms.

Mobile Internet A very important mobile service for internet access is the Wireless Application Protocol (WAP). Statistic data shows a rapid evolution of subscribers for such mobile services with WAP access. Thus, at the end of 2007 Romania had a 34% increase in usage of WAP mobile services versus 2003. Globally, new technologies as WiMax and WiFi hotspots are very popular. For example, in Taipei there are 4000 WiFi hotspots for accessing public services, covering 90% of population and in London are 400.000 video cameras. Graph 3: Wireless Application Protocol Service Evolution 2003-2007 (millions customers)

Source: www.anrcti.ro www.initiative.com new media 75

Mobile TV Advertising on Mobile TV does not exist in Romania as of yet. As digital television will continue its development, the technical support for Mobile TV will be implemented. At this moment Orange and Vodafone are able to offer television on mobile phone through their own portals, Orange World and Vodafone Live!

Starting 2004, Orange was the first GSM operator to offer video streaming to its clients and the possibility to watch, on their mobile phone, live television, and recorded TV shows, news, horoscope, music, shows. The Orange World portal, launched in 2005, offers different types of services: chat services, sports, information (news, horoscope, weather, TV guide) and premium services (games, ring tones, music and video).

The interest of clients for mobile content is increasing. The main attractions are live TV, music, games, sports and mobile content generated by users. Regarding TV stations, the Romanian clients can access over 20 TV stations: Antena 3, Arena TV, BBC World, Cartoon Network, Eurosport, Fashion TV, Favorit TV, Jetix, Minimax, Money Channel, MTV Music, Realitatea TV etc. Sports fans can find out the latest news, result and charts from all national and international contests, and football fans can watch live on their mobile phone the games from League 1. Also, the clients can download a diversity of games, ring tones, songs and video clips with their preferred artists. Despite the large number of mobile tools, the reach is still low thus unattractive to big advertisers.

Digital TV In the last three years, DTH penetration rate had a rapid increase. The biggest increase was in 2006, when subscriber numbers for DTH television reached 134% growth compared to 2005. DTH is not just an alternative for the households which do not have access to TV cable. According to a GFK study (Establishment Survey for TV audience measurement) realized in July 2007, only 21% of TV owners did not choose cable reception simply because this type of reception was not physically possible. Most of them chose DTH because of the price, which is much lower than that of cable TV service. It is notable the decrease of the base of subscribers to cable services which influence positively the ascending trend for DTH penetration.

Graph 4: Reception Type - 2007

Source: www.anrcti.ro

According to ANRTCI, at the end of 2007, one third of total subscribers’ received TV stations by means of DTH. Most of these (96.3%) were under contract with the top DTH providers and only 3.7% signed for DTH services provided by cable operators. The most important DTH providers are Digi TV, Dolce, Focus Sat, Max TV and Boom TV. According to GfK, 69% of DTH subscribers are with Digi TV and 17% with Romtelecom’s Dolce. An important part of DTH subscribers live in rural areas were 28% from TV owners chose DTH. romania - economic landscape www.initiative.com

“A creative economy is the fuel of magnificence” Ralph Waldo Emerson

Geographical and administrative organization

Romania is the largest country in the Balkans and the 13th in Europe, with an area of 238.391 square km (92.043 square miles). Romania is a Republic, according to the Constitution of 2003, the president being elected by universal vote every five years for up to two mandates. The two-chamber Parliament, the Senate and the Chamber of Deputies, are the people’s supreme representative bodies and the only law-making authority. Both chambers hold equal and complementary responsibilities. The official language is Romanian. Since July 1st, the 2005 national currency is Romanian RON (1 RON = 10.000 ROL).

Bucharest Municipality is the political and administrative capital of Romania (1.940.486 inhabitants). Other major urban centers are: Iasi, Constanta, Timisoara, Cluj-Napoca, Brasov, Craiova, Galati, Ploiesti and Braila.

As for January 1st. 2007, Romania is a member of the European Union.

Demographics

Population of Romania based on the INSSE (National Institute for Social and Economical Statistics) figures is of 21,565,119 inhabitants in 2007, with 51.3% women and 48.7% men. The average density is 90.5 inhabitants per sqkm. 55.1% of the population lives in urban areas while 44.9% live in the rural areas.

As shown below, the Romanian population is slowly decreasing (by approximately 0.25% per year in the last 5 years) due to negative natural evolution and migration.

Graph 1: Population structure by gender

Source: INSSE www.initiative.com romania - economic landscape 77

Life expectancy has constantly increased over the last 5 years (with approximately 0.3 years for each passing year), bringing the average life expectancy to 71.91 years in 2007.

Graph 2: Life expectancy (years)

Source: CIA World Factbook

Graph 3: Population structure by age groups

Source: INSSE Romanian population is composed of Romanians (89.5%), Hungarians (6.6%), Gypsies (2.4%) as well as Ukrainians, Germans, Serbs, Turks (1.5%).

The predominant religion is Orthodox (86.8%) followed by Romano-Catholics 4.7%, Reformats 3.2% and other religions 5.3%.

The Romanian population is fairly young, with 30.5% of the population aged 25 to 44 years old and 60.5% being aged 0 to 44 years old. romania - economic landscape www.initiative.com

Graph 4: Unemployment rate

Source: INSSE Employment The average unemployment rate in 2007 in Romania was 4.1%, slightly larger among the male population (4.3%) and slightly lower among the female population (4.0%). Compared to the unemployment rate of 2000 (an average of 10.5%), we can see that Romania has made significant efforts in decreasing unemployment, bringing the respective rate to less than half that of 2000. In a worldwide ranking by unemployment rate, Romania ranks 50th. The forecasted unemployment rate for 2008 is 3.9%. Economy The Romanian GDP increase of 8% in 2007 is expected to be maintained also in 2008, with a worst case scenario of the GDP increase of no less than 7.7%. The valorization process of the national currency continued in 2007, bringing the average annual exchange rate to approximately 3.34 RON for 1 EUR and 2.44 RON for 1 USD. The decrease in exchange rate, meaning appreciation of the national currency, was 5.1% against EUR and 13.2% against USD.

Graph 5: Exchange rate evolution (RON for 1 USD / 1 EUR)

Source: Romanian National Bank www.initiative.com romania - economic landscape 79

However, the beginning of 2008 brought a reversing trend for the EUR / RON parity, with the exchange rate reaching approximately 3.68 RON for 1 EUR, with the USD / RON parity trend staying largely the same (2.42 RON for 1 USD).

In addition to the valorization of the national currency, the inflation rate in Romania has registered a continuous drop in the last seven years, reaching an estimated level of 6.7% in 2007 (approximately 6 times lower compared to 40.7% in year 2000).

A level of inflation of 5.8% is forecasted for year 2008, considering the economical dynamics so far.

Graph 6: Inflation rate evolution (%)

Source: INSSE

In 2007 Romania maintained the upward trend of the GNI (Gross National Income) per capita, reaching a level of 8.556 EUR, 6% more compared to 2006 but still a lesser increase compared to 11% in 2006 over 2005.

This increasing trend is generated by the combination of three possible factors: the GDP increase, the increase in net primary income from abroad and the decrease in population size due to migrations.

Graph 7: GNI per capita evolution (EUR)

Source: The World Bank romania - economic landscape www.initiative.com

The number of days required to start a business in Romania is of 14 in 2007, compared to 29 days that were necessary for such an operation in 2003.

Graph 8: Days required starting a business

Source: The World Bank

Conclusions Overall, Romania is a country in full process of macro economical development, while at the same time working on the ‘de facto’ integration within the EU. It is expected that in 2008 Romania will continue the fight against corruption, work on increasing the living standards and decrease the poverty rate, attract more foreign investments and increase the quality level of products and services. Also, as an important aspect of the EU integration, Romania would have to get working on optimizing its fund absorption capabilities, in order to develop the infrastructure and encourage entrepreneurial and business initiatives. www.initiative.com professional associations 81

Advertising professional associations promote the The IAA works for the freedom of companies to interest of the industry either as a whole or that of compete through responsible commercial speech, a certain domain. They support fair competition, and it fights for consumer choice made possible by enforce good practice and ethics, implement and commercial speech which informs, inspires and manage research tools as an industry standard and empowers individuals to raise their sights and organize industry events and competitions such as reach for the life they want. festivals, seminars, training necessary for a highly professional industry. IAA Romania was founded in 1993 to serve the Initiative Bucharest is an active member of all interests of the advertising industry in Romania. It major industry associations: IAA, ARA, BRAT and includes companies that advertise for their own ARMA. products/services, media and advertising agencies. Its role is to promote in Romania the international International Advertising Association (IAA) advertising standards and, in order to do this the The International Advertising Association is a one- Association has achieved, in the thirteen years of-a-kind strategic partnership which champions since its creation, a series of significant actions. As the common interests of all the disciplines across a trilateral forum, IAA provides an exchange of the full spectrum of marketing communications - opinions between members. from advertisers to media companies to agencies to direct marketing firms - as well as individual On behalf of its members, the IAA is dedicated to: practitioners. • championing the freedom to advertise responsibly without unwarranted restrictions The International Advertising Association has in the overall market, or by specific product grown from a tripartite organization (advertisers, category; agencies and media) into a one-of-a-kind strategic • fighting for consumers’ freedom to exercise partnership which champions the common their right to choose in a free market society; interests of all enterprises involved in the branding • continuously developing and implementing process. The IAA has become a brand champion programs designed to raise standards because all aspects of responsible commercial through leading edge professional develo- communications which contribute to a brand’ pment for the marketing communications reputation need the freedom to flourish without community of the future. unwarranted restrictions. • providing an effective worldwide network for Now, the IAA draws its members on a local, the exchange of local market knowledge, regional or global scale from enterprises and professional skill-set innovations and best individuals that are committed to brand building, practices in brand building through a variety and value commercial communications as vital to of communication platforms, which include a the success of their business. world-class Website. • advertisers • becoming the preferred portal/source for best • advertising agencies practices in brand building communications; • media companies • delivering state-of-the-art professional • corporate communications development for the marketing communi- • marketing research companies cations community of the future. • package/label design studios • encouraging the freedom for advertisers and • sales promotion consumers to engage in the exchange of • public relations personal information, based on mutual • interactive marketers and agencies respect, which delivers added value to the • direct marketers individual;

The IAA is uniquely positioned to intercept Membership Advantages emerging cross-border trends before they become • Global information on critical problems that obvious, and to provide marketing communications affect advertisers and advertising agencies, media professionals with an international, multi-industry and other related specialized services. forum for the global exchange of knowledge, best • An international network of the marketing practices, professional development, intelligence, communications managers, who can connect with experience and ideas. each other for contacts, references. professional associations www.initiative.com

• Contacts with governments and/or other associations of the industry, in order to promote the • IAA European Summit was organized at advertisement’s and the free information flux’s Parliament Palace, Bucharest. The event put value, to encourage the practice and acceptance together numerous international speakers, of the advertising self-regulations. well known and respected personalities in • Publications on critical problems. marketing and communication world • Professional development. community. • Congresses, symposiums and conferences. • In April, IAA and Mediafax organized The IAA Global Advertising Congress is an Mediafax talk about OOH. Mediafax. Talks Association’s biennial summit meeting that won the about OOH is an event for all outdoor and reputation of the world’s greatest communication indoor players on the market, media and marketing managers’ meeting. agencies, advertisement personalities, advertisers, as well all interested in last trends A Board elected in February 2007 currently runs in this domain which want to debate the future the IAA's Romanian Chapter: of OOH in Romania. • Felix Tataru (Managing Director GMP) - • IAA was partner of the “Communication President Olympics” project, the first series of practical • Alexandra Olaru (HR and Corporate competitions for those students who want a public relations or advertising career. Communication Director Unilever SCE) - • The IAA representatives worked together with VicePresident the authorities to revise the Audio-visual Law. • Cristina Simion (Edipresse) - Secretary The proposed amendments have been • Cezar Dumitru (Ursus Breweries) - Treasurer presented to all IAA members, for their input. • Narcis Horhoianu (Associate Marketing • The IAA representatives worked close Director Procter & Gamble Romania) – together different advertising norms, such as: Program Director product with CNA on putting placement in • Dan Petre (D&D Research) – Program reality shows, the ban of medical Director endorsements in TV commercials, rules for • Afrodita Blasius (Bridge Communication) – advertising and teleshopping, advertising for Program Director medicines and advertising for tobacco and • Diana Flutur (Odyssey Communication) – beverages. Program Director • IAA continues to collaborate with the Faculty • Eusediu Margasoiu – Program Director of Communication and Public Relations. • IAA found and develop IAA Young The Senate of IAA has a consulting role being Professional Relations within the Bucharest formed of all former and current IAA Presidents. University. Presently, the IAA Senate membership includes: • The IAA Board issues a regular newsletter for • Veronica Savanciuc - President the members. • Mihai Ghyka - Member Source: www.iaa.ro • Mihail Vartosu - Member • Bogdan Enoiu - Member The Romanian Audit Bureau of Circulation • Felix Tataru - Member (BRAT) BRAT is a non-profit organization aiming to supply Over the last years, the IAA Board undertook few the advertising industry with accurate information important initiatives to the benefit of the entire on press circulation figures and press audience. industry: BRAT has members among the major actors in the • EFFIE Awards in Romania. – EFFIE is an advertising industry e.g. print editors, advertising annual award presented to recognize the and media agencies and their clients, selling year’s most effective advertising campaigns houses. Beside circulation data, BRAT is able to – campaigns that have delivered superior provide additional data such as press audience results in meeting the objectives they were studies, outdoor and Internet studies etc. Currently designed to achieve. Both RAAA and IAA BRAT has 243 members: 177 press publishers, 26 jointly organized the fourth edition EFFIE, last advertising agencies, 5 sales house, 10 advertisers year. and 26 web publishers. www.initiative.com professional associations 83

The management of BRAT (since 2008) consists of: advertising strategies and allocate budgets using • Silviu Ispas (ArboMedia) - President real circulation figures. The Circulation Declaration • Arina Ureche – General Manager BRAT is recognized internationally as an instrument • Horia Domnariu – Print Audience Project through which the publications current circulation Manager figure can be made public and exploited, being • Constantin Popa – Circulation Audit Project guaranteed that such figures are monitored and will Manager be audited for confirmation shortly. • Adrian Motirlichie - Internet Project Manager b. National Readership Survey (SNA) Board of Directors - members: It is carried out in compliance with the • Silviu Ispas (Arbomedia) – President international standards. The method used for • Claudiu Serban (Ringier) – DSA calculating the audience data is the Recent • Dragos Roua (Mirabilis) – DI Reading Method. The main indicator is A.I.R. • Anca Fieraru (Zenith Media) – DI (Average Issue Readership), representing the • Bogdan Gheorghe (SoftNews Net) – DI average number of persons who read / browse • Dragos Stanca (Catavencu) – DSA through a copy of a certain publication. SNA • Cosmina Noaghea (Publimedia) – DSA includes 229 titles in total: 82 monthlies, 19 • Gruita Ienasoiu (Solpress) – DAT bimonthlies, 48 weeklies, 69 dailies and 11 • Mihai Seceleanu (Internet Corp) – DI supplements. • Mirela Iordache (Burda Romania) – DaT The SNA questionnaire includes questions • Mihaela Rugina (Viata Libera/Trustul Dunarea regarding primary media (press), secondary media de Jos) – DAT (TV, radio, cinema, Internet, outdoor), general • Dan Firez (Media Investment) – DSA media consumption, purchase behavior, buying • Catalin Tolontan (Convergent Media) decisions, socio-demographic data etc. • Mihai Trandafir (BV McCann Erickson) • Calin Rotarus (ARBOInteractive) c. SNA FOCUS BRAT published for the first time the results of the Ongoing projects general consumption survey, named SNA FOCUS, in October 2006. SNA FOCUS is a complex study a. Circulation Audit combining media consumption with products and The Audit Certificates include detailed services consumption. information, on calendar months, regarding the The products and services consumption printed copies, the sold copies, the copies given measurement is based on methods valid at away for free, the copies sold through barter and international level, which ensures information the copies returned for each audited publication. credibility, standardization, comparability and Starting on the first semester of 1999, the independence. Combining circulation data, publications for which the Audit Certificates had audience data and detailed reader’s profile, BRAT been issued submit a quarterly Circulation provides a comprehensive description for any print Declaration upon own responsibility and under title making the planning job easier and more BRAT's authority. accurate. The Circulation Declaration includes the most The survey includes more than 300 product recent circulation figures, the editors being granted categories and delivers results for around 3.000 the opportunity to update such declarations brands. monthly. Then the figures are certified by audit BRAT provides the data, based on specialized during the next audit period. Through the software, only to subscribers, DSA members. Declaration, the circulation figure may be made public before the audit and used in negotiating the Future projects advertising contracts. The use of the Circulation Declaration offers a Internet Audit Department significant competitive advantage to the The Internet advertising market evolved rapidly publications already having an Audit Certificate by since a couple of years ago. Although the Internet using, under the BRAT authority, the circulation investment in Romania is marginal compared to figures 8-9 months in advance. other media, the annual growth rate is stunning. Based on the Circulation Declaration, the Given the ascending trend of Internet, an advertising agencies and the advertisers can build independent measurement becomes necessary. professional associations www.initiative.com

2007 was the first year when BRAT provided to The Association members - 2007: the market the results regarding the traffic of the • 34 media and advertising agencies: websites. Initiative Media, MediaCom Romania, Tempo, In 2008 BRAT will provide for the first time the MindShare, Mediaedge:cia, Media Direction, results regarding the audience of the websites and Media Link, Media Planning Group, Team the socio-demographic profile of their users. Advertising, International Media Shop, Media Today, Optimum Media Direction, Zenith Source: Arina Ureche BRAT Media, Imager, ARBOmedia, McCann, Carat Romania, FCB Bucharest, Optimedia, The Romanian Association for Audience Starcom Media, Odyssey Communication, Measurement (ARMA) Velvet Media, Media-Tique, DBV Media ARMA's main goal is to provide its members with House, Cable Direct, Splendid Media, CO. impartial, accurate and objective audience data for GE. P., Media Investment Communications, the Romanian broadcast media. Media Strategy Bucharest, Starlink, Media The Association is mandated by the industry to Consulta International, United Media monitor the audience measurement research Services, C.L.I.R. Media, Brand Connection. (National Service for TV Audience Measurement – • 4 major TV stations: Pro TV, Prima TV, SNMATV) in compliance with the international TVR 1 and Antena 1. standards and in full transparence towards market. • 31 smaller TV stations: Acasa TV, TVR 2, TVR Cultural, Realitatea TV, Sport.ro, Current management is ensured by: Discovery Channel, Jetix, Kiss TV, MTV, • Lucia Romaniuc (MPI) – President Minimax, National Geographic Channel, • Nicu Laita (Team Advertising) – ARMA Antena 2, B1 TV, National TV, Favorit TV, Technical Committee President N24, OTV, Senso TV, Pro Cinema, Euforia • Costin Juncu – Managing Director ARMA. TV, AXN, U TV, Antena 3, Cartoon Network, Board of Directors – members: MGM, Etno TV, Taraf TV, Sport Klub, Sport 1 • Cristina Florescu (P&G) TV, Kanal D, Hallmark Channel • Anca Molnar (Unilever) • 10 advertisers: Procter&Gamble, Henkel, • Giulia Burlui (Coca-Cola) Unilever, Nestle, Vodafone, Elite, Danone, • Mihai Trandafir (BV McCann) Coca-Cola, Colgate-Palmolive, Ursus • Oana Petroff (MindShare) Breweries. • Mihail Vartosu (Grey) • Mihaela Dumitru (Prima TV) In March 2005, ARMA General Assembly decided • Bogdan Cernusca (SRTV) to modify the Statute in order to permit to the • Rares Anita (Antena 1, Antena 2, Antena 3, foreign legal entities to become members of the Euforia TV) Association.

Starting 2004 ARMA is the only owner of the In December 2005, ARMA General Assembly copyright upon the TV audience databases, as decided to modify the Statute in order to create a resulting from the contract with TNS-AGB new category of members, respective “associate International SRL on October 20th, 2003. The members – legal entities”. In this category of contract was signed after a public tender monitored members are included all the legal entities which by a Parity Commission (5 CNA members, 5 are not advertising or media agencies, TV stations representatives of advertising agencies and 5 or advertisers and which are interested in getting representatives of TV stations) as stated in the Law the SNMATV data. no. 504/2002. Source: Costin Juncu, ARMA In 2007 year, the Association has appointed an The Romanian Association for Radio independent auditor, respectively the Centre Audience Measurement (ARA) D’Etude Des Supports De Publicite (CESP) from France, in order to conduct an audit regarding SNMATV. The audit took place between 14th of ARA was founded in March 2004. November 2007 and 18th of February 2008. The Board of Directors from April 2008: audit concerned the construction of the panel, data • President: Marius Dobre (Pro FM, info Pro production and reporting. and pro FM Dance). www.initiative.com professional associations 85

• Members: Nora Marcovici (Kiss FM, Magic on the basis of financial and service-providing FM and One FM),Alexandru Macavei (Radio performance. 21), Rodica Minculesc (Romantic FM) and Anca Rosca (BV MccErickson). RAAA's main objectives are to formulate rules Technical Committee: and regulations governing the activity of agencies • Marius Strambeanu Executive Manager and to help members improve their performance (Europa FM and radio 21) through: • Lacramioara Loghin (Kiss FM, Magic FM and Exchanging ideas and projects that can lead to One FM) - active member improved results for member agencies. • Alexandru Larionescu (Pro FM, Info Pro and Promoting the values of advertising effectiveness. Pro Fm Dance) – active member Playing an important role as guarantor for the • Rares Anita (News FM) – active member interests of the advertising business in planned or • Anca Fieraru (Zenith Media) – active member contemplated legislation within the area of interest • Marius Gheorghe (Mediainvestment) – active to the advertising business. member Seeking ways of harmonizing procedures, systems, contract and other international issues to ARA members: ease business between EU members and with • Radio stations: SRR, Europa FM, Radio 21, other countries. Pro FM, Kiss FM, Magic FM, , Supporting the principal of self-regulation Radio Guerrilla, Delta RFI, Radio Romantic, wherever possible. Info Pro, National FM, City FM, Radio Itsy- Developing international educational opportunities. Bitsy, Smart FM, Sport Total, BBC. Setting up task forces to investigate these and • Agencies: Initiative Media, McCann Erickson, other specific projects and concepts of mutual Media Investment Communication, Starcom benefit to agencies, in particular in emerging free Media, Media Com, MindShare, Zenith economies. Media, Imager, Optimedia, Tempo, Team Maintaining an open forum to discuss further Advertising, C.L.I.R, Mediaedgecia. ideas and projects that may be of benefit.

ARA’s main duty is to manage the results of the In present - over 35 of advertising and marketing Radio Audience Survey (SAR) run by IMAS and communications agencies operating in Romania Mercury Research as assigned through a public are currently in membership of the RAAA (141 tender organized by CNA in 2003. Romania – part of Ogilvy Group, ADDV Euro SAR is established for four years (2004 - 2007). RSCG, Agency One Marketing, BAAS Mediaplus, It provides audience measurement for radio Babel Communications, Brands & Bears, BV stations at national level, based on a sample of McCann Erickson, Cap, Cohn & Jansen, DDB 22,000 individuals / year. There are two surveys per Bucharest, FCB Bucharest, FOSS Advertising, year – spring and autumn – with 11,000 interviews Gavrila & Asociatii, GAV¦Scholz&Friends Bucuresti, each. Genius Advertising, GMP Advertising, Graffiti BBDO, Grey Worldwide Romania, Headvertising, Source: www.ara.ro Leo Burnett&Target, Lowe & Partners, Mercury Promotions, N.E.X.T. Advertising, Notorious The Romanian Advertising Agency Advertising, Ogilvy & Mather Advertising, Ogilvy Association (RAAA) One, Profil Communication Marketing, Prospero RAAA (affiliated to EACA - European Association Proximity Bucharest, Publicis, Saatchi & Saatchi of Communication Agencies) was founded in June Romania, Scala JWT, Spotlight, TBWA/Merlin, 2000, setting out to sustain the interests of the Tempo Advertising, Violet Advertising, Young & advertising agencies, where the relation with the Rubicam / Team Advertising). These agencies Parliament and the advertisers community is handle more than 80% of all advertising placed by concerned. Organizing advertising festivals and Romanian agencies. contests (Ad'Or, Effie Awards), seminars, training sessions and workshops for the employees in the In November 11, 2005 RAAA voted to expand the industry are just a few of its initiatives. Board of Directors from 4 to 7 members (the The association aims to build a communication decision was taken due to the growth of the platform for the member agencies that are selected association and in order to insure better professional associations www.initiative.com

representation). The next step - RAAA elects a new Concerns on the fair competition and information Board of Directors: Adrian Dura of ADDV Euro leverage at governmental levels brought several RSCG – President, Radu Florescu of Saatchi & focus points for RAC activities: Saatchi - Vice-President, Tereza Munteanu of • Representation in relation to the state Young&Rubicam/Team Advertising - Secretary and authorities Victor Dobre of Scala JWThompson - Treasurer. • Effective lobby Board Members are Serban Alexandrescu of • To offer fast and effective legislative Headvertising, Mihail Vartosu of Grey Worldwide information in the advertising field Romania and Ioana Iordache of Leo • To create a business environment similar to Burnett&Target. the European one, at least in where advertising is concerned

Source: http://www.raaa.ro • Following the obvious trend: self-regulation in the domain. Romanian Advertising Council (RAC) Source: http://www.rac.ro Romanian Advertising Council is a professional, non-governmental, non-profit and independent organization founded in 1999. It aims to develop the advertising sector in Romania, to create and develop, within the legal framework, ethical self- regulatory governance in advertising in the spirit of fair competition, to ensure consumers’ protection and general public interest against negative effects of advertising.

Members of RAC: • Advertisers: PROCTER&GAMBLE, ALTEX, BEIERSDORF, BRAU UNION, COCA- COLA, COLGATE-PALMOLIVE, COTY COSMETICS, DANONE PDPA, ELITE, GILLETTE, GLAXOSMITHKLINE, HENKEL, KRAFT FOODS, MASTER FOODS, NESTLE, OZONE LABORATORIES, QUADRANT - AMROQ BEVERAGES, TELEMOBIL, UNILEVER, WALMARK. • Media and advertising agencies: INTERNATIONAL ADVERTISING ASSOCIATION, ROMANIAN ADVERTISING AGENCIES ASSOCIATION, BV MCCANN ERICKSON, GREY WORLDWIDE ROMANIA, LOWE & PARTNERS, SCALA THOPSON COMMUNICATIONS, TBWA BUCHAREST, TEAM ADVERTISING. • Publishing house: RINGIER ROMANIA.

Current Board: Mihaela Ungar of Colgate Palmolive – President, Adrian Dura of RAAA – Vice-President, Radu Budes of IAA– Member, Ecaterina Safarica of Procter&Gamble – Member, Alexandra Olaru of Unilever – Treasurer, Alexandru Harsany of NNKDP – legal Consultant, Camelia Constantinescu of RAC – Secretary, Flavius Cimpian of Heineken Romania – Member, Laurentiu Gheorghiu of Pro TV – Member. www.initiative.com legislation and taxes 87

Advertising taxes agreement or other settlement concluded with another person, due the tax set by the present The Health Tax was first stipulated by Law no. article, excepting those advertising and publicity 467/2002 that modified and completed services run through written and audio-visual Government Ordinance no. 22/1992, regarding the mass-media. financial support for health protection. The legal (11) The publicity run through written and audio- provisions regarding the taxes borne by the visual mass-media, in the meaning of the present companies commissioning advertising campaigns article, corresponds to the activity of the advertising for tobacco products, cigarettes and alcoholic agents, according to the CAEN classification, which beverages stipulated by Government Ordinance means the publicity run though newspapers, no. 22/1992 were in force up to 1th January 2007, publications, radio, television and internet. when they were abrogated by Law 95/2006 (2) The tax set by the present article, named below regarding the reform in the health field, published in the tax for advertising and publicity services shall the Official Journal no. be paid to the local budget of the administrative- territorial unit where these services are performed. According to article 363 letter c of Law 95/2006, (3) The tax for advertising and publicity services is the legal persons that obtain revenues from calculated by applying its % to the value of advertising activities for tobacco products and advertising and publicity services. alcoholic beverages shall contribute with a quote of (4) Its % is set by the local council, between 1% 12% from the value of the revenues, after the and 3%. deduction of the VAT. This contribution represents (5)The value of advertising and publicity services an income to the Public Health Minister’s budget. includes any payment, current or future, for advertising and publicity services, except for the The Cinema Tax is settled by Government VAT. Ordinance no. 39/2005 regarding the (6) The tax for advertising and publicity services is cinematography, published in the Official Journal paid at the local budget, until the 10th of the next no. 889/09.12.2002 and modified by Law 328/2006. month following the validation of the contract for advertising and publicity services. According to article 13 of Government Ordinance no. 39/2005, the cinema tax is a contribution of 4% Art. 271 applied to the value of the advertising minutes The tax for posting with advertising and publicity bought from public and private TV stations and that goal is added to this price. (1) Any person, who uses a billboard, a poster or a posting structure with advertising and publicity goal, The cinema tax is due either by the advertising in a public place, owes the payment of the annual agent, the intermediary company that buys the tax set by the current article, towards the local advertising minutes or the economical operator that budget of the local public administration authority acquires the advertising minutes. The advertising where the billboard, the poster or the posting agent, the intermediary company or the economical structure is placed. operator are obligated to provide the National (2) The value of the tax for posting with advertising Centre of Cinematography with a list of all the and publicity goal is calculated annually, by agreements concluded, including their price and multiplying the number of square meters or the the name of the selling agents. fraction of the square meter of the advertising and publicity posting area by the amount set by the The Local Advertising Tax is settled by the local council, thus: Fiscal Code, valid starting 1st of January 2004, with a) for a poster at the place where the person runs several modifications and completions. an economic activity, the amount is between 0 and 23 RON; Chapter 6 - The tax for using advertising and b) for any other billboard, poster or posting publicity vehicles and material structure for advertising and publicity, the amount is between 0 and 17 RON. Art. 270 (3) The tax for posting with advertising and publicity The tax for advertising and publicity services goal is calculated based on the number of months (1) Any person, who benefits from advertising and or the fraction of month in a calendar year when the publicity services in Romania, based on an posting is performed. legislation and taxes www.initiative.com

(4) The tax for posting with advertising and publicity d. it includes discrimination based on race, sex, goal is paid annually, in advance or on a quarterly language, social origin, ethnicity or basis, in four equal instalments, until the 15th of nationality; March, June, September and November. e. it is offensive to religious or political beliefs; (5) Local councils can impose to those individuals f. it prejudices honour, dignity and an indivi- who owe the tax for posting with advertising and dual’s private life; publicity goal to give an annual declaration at the g. it uses superstitions, credulity or fear of speciality department of the local public persons; administration authority. h. it prejudices people’s security or encourages violence; Art. 272 i. it encourages prejudicial behaviour to the Exemptions environment; (1) The tax for advertising and publicity services j. it stimulates the trade of goods or services and the tax for posting with advertising and publicity produced or distributed that violate legal goal are not applicable for public institutions, except provisions. for those cases when they promote economic activities. Law defines misleading advertising as any (2) The tax set by the current article, named below advertising that, in any way, including its the tax for posting with advertising and publicity presentation, misleads or may mislead a person goal, is not applicable for a person who rents the whom it targets or who comes into contact with the billboard, the poster or the posting structure to advertising and may affect his economic behaviour, another person; in this case, the tax is paid by the harming his interest as a consumer, or that may latter. harm a competitor’s interests. According to article (3) The tax for posting with advertising and publicity 23 letter b of Law 148/2000, the breach of this goal is not applicable for those posters, billboards interdiction is considered contravention and it is or any other advertising means placed inside sanctioned with a fine from RON 1,500 - RON buildings. 4,000 (4) The tax for posting with advertising and publicity goal is not applicable for the billboards of power Law defines subliminal advertising as any installation identification, warning or traffic advertising that uses too soft stimulus in order to announcements and any other public utility and be consciously perceived, but that can influence educational announcements. the economical behaviour of a person. According (5) The tax for advertising and publicity means to article 23 letter b of Law 148/2000, the breach of usage is not applicable for the posting on transport this interdiction is considered contravention and it is means that are not meant for advertising and sanctioned with a fine from RON 1,500 - RON publicity through their construction. 4,000

Romanian legal framework on advertising Law defines comparative advertising as any advertising that explicitly or implicitly identifies a Law no. 148/2000 on advertising competitor or its goods or services offered. The provisions of Law 148/2000 apply to the content of advertising materials and advertising Comparative advertising is prohibited only if at messages, including those broadcasted as part of least one of the following conditions is television programmes. Law’s purpose is to protect accomplished: the consumers from the negative consequences of a. the comparison is misleading, in the sense misleading and comparative advertising. that it may mislead the person whom it targets or influence his economic behaviour; According to article 6 of Law 148/2000, b. it compares goods or services with different advertising is prohibited if: destinations or purposes; a. it is misleading; c. it does not compare, in an objective way, one b. it is subliminal; or more essential, relevant, provable or c. it prejudices the respect for human dignity representative features – including price - of and public morality; goods and services; www.initiative.com legislation and taxes 89

d. it generates confusion in the market Law 148/2000 also prohibits advertising for any between the advertiser and a competitor or type of arms, ammunition, explosives and between trademarks, commercial names or pyrotechnical methods and advertising for medical other distinctive signs, goods or services of products wherefore a prescription is necessary. the advertiser and those belonging to a The breach of this interdiction is considered competitor; contravention and it is sanctioned with a fine from e. it discredits or denigrates trademarks, RON 500 - RON 1,500. commercial names, other distinctive signs, goods, services or other activities or According to art. 10 of Law no. 148/2000, as situations of a competitor; further amended and completed, the explicit f. it compares products with different advertising for tobacco products is prohibited if indications, in the case of products with a broadcast in radio and television shows and on geographical indication; travel tickets for public transportation. g. it unfairly takes advantage of a trademark’s reputation, of its commercial name or other Art. 101 of Law 148/2000 prohibits explicit distinctive signs of a competitor or the advertising for alcoholic products on the first and geographical indication of a competitor’s last page or cover of printed materials from the product; written press and on travel tickets for public h. it presents goods or services as imitations or transportation. copies of certain goods or services bearing a protected trademark or commercial name; In addition, any form of advertising of tobacco and i. it violates any other provisions of the alcoholic products in public education institutes and Competition Law no. 21/1996. in health institutes or at a distance less than 200 meters from the entrance thereof, measured on the According to article 23 letter b of Law 148/2000, public road is prohibited. Advertising of tobacco and the breach of this interdiction is considered alcoholic products is interdicted in publications contravention and it is sanctioned with a fine from mainly addressed to minors and in theatres before RON 1,500 - RON 4,000 and during shows targeted to minors.

According to article 16 of Law, advertising Advertising of tobacco and alcoholic products is regarding products and services for minor is also prohibited if: prohibited in case: a. it is addressed to minors; a. it contains elements that may cause b. it shows minors consuming such products; physical, moral, physical or intellectual c. it suggests that alcoholic and tobacco damage to minors; products have therapeutical properties or a b. it indirectly encourages minors to purchase stimulant, sedative effect or means to solve products or services by exploiting their lack personal problems; of experience or credulity; d. it provides a negative image on abstinence; c. it affects the special relationships between e. it evidences the alcohol content of the minors and parents or teachers; alcoholic products in the purpose of d. it, unjustifiably, show minors in dangerous stimulating the consume or it makes a situations. connection between alcohol and driving a vehicle; According to article 23, letter a of Law 148/2000, f. does not contain warning inscription, in the breach of this interdiction is considered , for the tobacco contravention and it is sanctioned with a fine from products. RON 500 - RON 1,500. Law no. 504/2002 on audio-visual According to Law 148/2000, advertising for drugs The general legal framework on advertising is or psychotropic substances is interdicted and the provided by Law no. 504/2002 on audiovisual, breach of this interdiction is considered which suffered several completions and contravention and it is sanctioned with a fine from modifications in order to reach a form that is RON 1,500 - RON 4,000. compatible with European regulations. legislation and taxes www.initiative.com

According to article 1 letter h of Law 504/2002, Advertising for alcoholic beverages must observe advertising represents any form of message the following terms: broadcasted on basis of a contract with a natural a. not to be addressed to minor children or or legal person, public or private, in return for show minors consuming alcoholic payment or other benefits, in connection with a beverages; trade, business, craft or profession, in order to b. not to establish a link between the alcohol promote the supply of goods or services, including consume and the improving of physical and immovable and intangible property or broadcasted psychical qualities or the capacity of driving for self-promotional purposes. vehicles; Advertising must observe the following general c. not to create the impression that through the terms: consume of alcohol, social or sexual a. does not prejudice the physical, psychical or performances can be obtained; moral development of minor children; d. not to suggest the idea that alcohol has b. does not prejudice human dignity; therapeutic qualities or that it is a stimulant, c. does not include any discrimination form on sedative or a means to solve personal basis of race, religion, sex, nationality and problems; sexual orientation; e. not to encourage the exaggerated consume d. it is not offensive at the address of religious of alcohol or set in a negative light the refrain or political beliefs of on-lookers and from the consume or moderate consume of listeners; alcohol beverage; e. does not encourage a conduct that can f. not to indicate that a high degree in alcohol damage public health or safety; represents a quality of beverages. f. does not encourage a conduct that can National Audiovisual Council’s Decision no. damage the environment; 187/2006 concerning the regulation of the g. does not encourage a indecent or immoral content of audiovisual programme services conduct; h. does not promote directly or indirectly occult Up to 2006, the advertising activities were practices. regulated by the following NAC decisions: 1. Decision no. 254/2004 concerning Advertising may not cause any moral, physical or advertising, sponsorship and teleshopping, intellectual damage to minors and must observe published in the Official Journal, Part I, no. the following special terms: 668/26.07.2004; a. it must not directly instigate minors to 2. Decision no. 519/2005 concerning the purchase a product or service by exploiting assurance of a correct information and their lack of experience or credulity; pluralism, published in the Official Journal, b. it must not directly encourage minors to Part I, no. 888/04.10.2005. persuade their parents or other persons to purchase goods or services that represent In 2006, both of those NAC Decisions have been the object of the advertising; abrogated by Decision no. 130/2006 regarding the c. it must not exploit the special trust that Regulation Code of the Audiovisual Content, minors have into parents, teachers or other published in the Official Journal no. persons; 250/20.03.2006. d. it must not unjustifiably show minors in dangerous situations. On the 14th of April 2006, Decision no. 130/2006 was abrogated by Decision no. 187/2006 regarding As regards advertising, Law 504/2002 prohibits the Regulation Code of the Audiovisual Content, the following: published in the Official Journal no. a. advertising that harm the legal interest of the 338/14.04.2006. consumers; b. any form of advertising for cigarettes or other At present, the advertising activities are regulated tobacco products; by the above mentioned Regulation Code of the c. advertising for medical products and medical Audiovisual Content, which has been modified by treatments wherefore a prescription is the NAC Decision no. 194/2007, published in the necessary. Official Journal, Part I, no. 152/02.03.2007. www.initiative.com legislation and taxes 91

Hereinafter, we shall present the articles from the Art. 105. Regulation Code concerning the sponsorship, (1) In case of programmes destined to children, advertising and teleshopping activities: there shall not be perceived any connection between the name, trademark or image of the Title VII Sponsorship, advertising, teleshopping sponsor and the name of the programme. Chapter 1 - Sponsorship (2) The programmes destined to children may not Art. 102. be sponsored by natural or legal persons whose (1) Sponsorship means the participation of a activities include the manufacturing or trading of natural or legal person, not engaged in radio or medical products, medical treatments or food television broadcasting activities or in the supplements. production of audio-visual works, in the direct or (3) The programmes destined to children may not indirect financing of a programme with a view to be sponsored by natural or legal persons who promoting their name, trade mark, image, activities organize games and contests prohibited for or products. children. (2) The content and scheduling of a sponsorship programme must not be influenced by the sponsor Art. 106. so as to affect the editorial independence of the (1) Each time a programme is sponsored, this radio-broadcaster. shall be clearly identifiable by the public, within the (3) Sponsored programmes shall not urge to credit titles at the beginning and/or the end of the selling, buying or renting the sponsor’s or a third programme. party’s products or services, especially through (2) Within sponsored programmes with a duration promotional or commercial references, to these of more than 30 minutes, excepting sports products or services, made during these sponsored transmissions, the name, trademark and logo of the programmes. sponsor or the name or image of a representative (4) Sponsorship shall be clearly separated by product shall be broadcast for maximum 60 advertising; sponsorship notices shall not contain seconds of the whole programme duration, without advertising messages. making any commercial reference or connection to (5) When a reference to the sponsor of the the advertising for the sponsor’s products or programme is contained in a promotional notice, services; in the case of programmes with a duration the reference shall be short and minor. of less than 30 minutes, the maximum broadcasting (6)The sponsorship notice shall not contain any time is 30 seconds. connection with the advertising for the sponsor’s services and products. Chapter 2 - Advertising and teleshopping Art. 103. Section 1 (1) News or political debates programmes can not General provisions be sponsored; the whole programme service can not be sponsored. Art. 107. (2) Audiovisual programmes can not be sponsored Advertising and teleshopping shall serve the by natural or legal persons whose main activity is interest of the public, by observing the rules of fair the manufacturing or trading of products or the information and competition. providing of services whose advertising is forbidden. Art. 108. (3) The sponsoring of programmes by natural or Any form of promotion of products or services, legal persons whose activities include the which suggest or incite the public to renounce manufacturing or trading of medical products or similar products or services, motivating that the medical treatments may be performed only by latest become useless or inadequate, is prohibited. promoting the name or image of the respective person. Art. 109. (1) Advertising that suggests the public to renounce Art. 104. fruits, vegetables or natural foods is prohibited. Between 6.00 – 23.00 hours it is prohibited to (2) Advertising and teleshopping for consumer broadcast programmes sponsored by companies goods invoking medical approvals or whose names or trademarks are identical to the recommendations is prohibited; hygiene products name or trademark of an alcoholic beverage. are excepted. legislation and taxes www.initiative.com

(3) Advertising and teleshopping for hygiene c) the price or tariff ; these shall be presented in products, featuring doctors and medical practices, full, including the value added tax (VAT) and are prohibited. all supplementary taxes related to final purchase; Note: Article 109 par. 3 shall come into force on (d) the conditions of product distribution or September 15, 2007 service supply. (e) the suggestion that the product holds Art. 110. special characteristics, while in reality all Comparative advertising is possible only by similar products hold such characteristics. observing the provisions of Advertising Law no. (2) Any information or warning broadcast as 148/2000, with the subsequent alterations and videotext shall be presented static and legible and completions. shall have sufficient duration, to be clearly understood by the viewers. Art. 111. The duration of advertising and teleshopping does Art. 115. not constitute a reason for justifying the Advertising or teleshopping related to a special circumventing of the obligations to inform correctly offer shall indicate, clearly and non-equivocally, the the public on the promoted goods or services. date when the offer ceases or, if case be, the fact that the special offer is limited to the available Art. 112. services or stock of goods. If the special offer is not (1) It is prohibited to broadcast programmes, other yet started, the starting date of the period during than teleshopping, which present goods or services which the special price or other specific conditions that are clearly identified, or that may be identified are applied shall be indicated clearly and non- by the public by their trade mark, producer or equivocally. specific marketing; these restrictions do not refer to the names of companies that produce goods or Art.116. provide services. (1) The broadcast of advertising and teleshopping (2) Programmes on cultural products and services featuring news presenters is prohibited. or those dedicated to education are exempted from (2) The broadcast of announcements of public the provisions of paragraph (1). interest and charitable appeals promoting products (3) Programmes on automobiles and IT products and services is prohibited. are exempted from the provisions of paragraph (1) on condition of presenting several products of the same type, within the same programme, for Art. 117. information purpose. (1) The advertising package shall be clearly separated from the rest of the audiovisual Art. 113. programme, in sound and image, by neutral (1) It is prohibited to present the qualities, others advertising screens. than trademark and price, of products or services (2) Within an advertising package only one offered as prizes in quiz shows. promotional package may be broadcast. (2) Cultural products and services are exempted (3) In the case of advertising spots using from the provisions of paragraph (1). characters, backgrounds or situations from broadcast programmes, besides the separation Art. 114. conditions foreseen in paragraph (1), the mention (1) The information presented by advertising spots “Advertising” shall be inserted during the whole or by teleshopping programmes shall not mislead duration of the spot. the public, directly or by omission, in the following respects: Art. 118. a) the characteristics of the product, especially During football games, the broadcasters may the nature, identity, features, composition, broadcast advertising mini-spots while observing quantity, durability, origin or source, as well the following conditions: as the methods of manufacturing or a) the mini-spots duration shall not surpass 10 production; seconds; b) presentation of effects or qualities the b) maximum two mini-spots per each half of the product does not effectively have; game; www.initiative.com legislation and taxes 93

c) these shall be inserted in the natural breaks Art. 124. in the game; In case of live transmissions, the advertising shall d) during its whole duration, the advertising not affect the integrity of the respective shall be accompanied by a visible warning programmes. sign consisting of a capital letter “P” in a transparent circle, placed in the right lower Art. 125. part of the screen. Products and services placement is allowed in audiovisual programmes only during films and Art. 119. series, by observing the following conditions: During sports competitions, the broadcasters may a) it should naturally fit into the audiovisual transmit advertising logos while observing the production; following conditions: b) overdue visibility shall not be given to the a) the logo shall be inserted only during product or the service, such as the announcements on the replacement of a mentioning of the trade mark of a product or player or on the score; its presentation in close-up or from an angle b) the insertion duration shall not surpass 10 that allows full view of the trade mark. seconds, and the total broadcast duration shall not surpass 2 minutes of the whole Section 2 transmission; Advertisement for alcohol c) the logo shall be placed above or under the area where the information specified in letter Art. 126. a) is broadcast and shall not exceed the (1) Any form of advertisement for distilled alcoholic drinks is prohibited within television programme dimensions of this area. services between 6.00 – 22.00 hours. (2) Any form of advertisement for distilled alcoholic Art. 120. drinks is prohibited in radio broadcasting Within television programme services, isolated programme services between the following hours: advertising spots shall be broadcast only when the a) 6.00 – 8.00 and 10.00 – 22.00, from Monday pauses available for inserting spots between the to Friday; fragments of a program, such as the breaks b) 6.00 – 22.00, on Saturday and Sunday. between the rounds of a box or tennis match, are very short. Art. 127. For the purpose of the present Code, the distilled Art. 121. alcoholic drinks are those defined by the Order no. (1) By way of exception, within television 268/441/117 of April 10, 2003, of the Ministry of programme services, two isolated advertising spots Agriculture, Nourishment and Forests, the Ministry can be broadcast between 20.00 – 06.00 hrs in of Health and Family and the President of the other situations than those under art. 120. National Authority for Consumers Protection (2) In case of advertising for alcoholic beverages, published in the Official Journal of Romania, Part I, the isolated advertising spot shall be broadcast no. 573 of August 11, 2003, with the subsequent only between 23.00 – 6.00 hours. alterations.

Art. 122. Art. 128. The isolated advertising spot shall observe the The broadcast of advertisement for alcoholic drinks following conditions: that promote violent, aggressive or antisocial a) the spot duration shall not surpass 30 behaviour or attitudes is prohibited. seconds; b) during the whole duration of its broadcast it Art. 129. shall be accompanied by a visible warning The broadcast of advertising spots for alcoholic sign consisting of a capital letter “P” in a drinks featuring minors is prohibited. transparent circle, placed in the lower right part of the screen. Art. 130. It is prohibited to broadcast promotional announce- Art. 123. ments or competitions that include references to Abrogated the name or trademark of a distilled alcoholic legislation and taxes www.initiative.com

beverage; within competitions it is prohibited to (2) In case fruits or vegetables flavours are used offer prizes sponsored by companies producing exclusively, this fact shall be mentioned in the such beverages. advertising spots, verbally and in writing, with the syntagm „with taste of…” or, by case, „with flavour Art. 131. of…” The broadcast of sports transmissions sponsored by alcoholic beverages producers may be Art. 138. broadcast only between 23.00 – 6.00. (1) Foods and food supplements shall not be ascribed characteristics of prevention, treatment or Art. 132. healing of diseases and no such characteristics Sports events taking place on the territory of shall be referred to. Romania which do not respect the provisions of the (2) Foods shall not be ascribed characteristics that Law no. 148/2000, with its subsequent alterations they do not hold. and completions, concerning tobacco products and (3) Advertising for foods intended to children shall alcoholic beverages shall not be broadcast by not present celebrities, personalities, medical broadcasters licensed in Romania. practitioners, popular characters, such as those of cartoons, fairy-tales, stories and similar contexts; Art. 133. advertising for natural foods is excepted. In advertising spots for alcoholic beverages the use (4) Advertising for foods shall not use nonfoods of characters, scenery or situations from the intended for children, such as toys, stickers, and broadcast programmes is forbidden. similar ones. (5) Between 06.00 – 22.00 hours, during each Art. 134. given hour, one of the advertising packages shall The advertising packages that promote products of end with the following warning: “For your health, distilled alcohol shall end with the audio and visual avoid excessive consumption of salt, sugar and fat. warning “Excessive consumption of alcohol seriously damages health”. Note: Article 138 par. 4 shall come into force on September 15, 2007 and article 138 par. 3 shall Section 3 come into force on 1 January 2008. Advertising for foods Section 4 Art. 135. Advertising for medicinal products Advertising for food shall observe the following requirements: Art. 139. a) it shall not encourage excessive consum- Any form of promotion, within the broadcasting ption of food; services, intended to stimulate the distribution, b) precise affirmations regarding nutrition (for consumption or sale of medicinal products and instance, the effects of vitamin C) or health medical treatments shall be considered audiovisual (for instance “it promotes healthy digestion”) advertising for medicinal products and medical shall rely on solid scientific facts and shall treatments. not create deceptive ideas regarding nutrition or healthy benefits of the food. Art. 140. (1) Advertising and teleshopping are permitted only Art. 136. in the case of medicinal products and medical In case the advertising for juices and soft drinks is treatments available without medical prescription. illustrated with fruits and/or vegetables, the quantity (2) The ads shall warn the public about the possibly of fruits and/or vegetables shall be precised in harmful content of the products that are available percentages without medical prescription.

Art. 137. Art. 141. (1) In case only fruits or vegetables flavours are Advertising and teleshopping of medicinal products used for the food manufacturing, it is prohibited to containing psychotropic or narcotic substances, use images, drawings or any other form of within the meaning of the international conventions, representing fruits and/or plant parts. are prohibited. www.initiative.com legislation and taxes 95

Art. 142. (2) The broadcast of advertising and teleshopping Advertising of medicinal products shall encourage featuring medical practitioners or pharmacists who the rational use of the medicinal products, by recommend or express medical assent to foods presenting them objectively, without exaggerating intended for children, medicinal products, medical their therapeutically properties. treatments, vitamins, food supplements, nutrients or dietary supplements is prohibited. Art. 143. (3) The broadcast of advertising and teleshopping (1) The promotion of medicinal products within the for medicinal products, vitamins, food supplements, audiovisual broadcasting programmes shall include nutrients, dietary supplements and medical the following: treatments is prohibited if the presentations contain a) the name of the product; recommendations or agreements issued by b) the common name, in case the product medical associations. contains a unique active ingredient; c) the therapeutic indication (the affections for Art. 145. which the medicinal product is used); (1) Advertising messages for medicinal products or d) the warning: “This product may be medical treatments shall not be directed to persons purchased without medical prescription. under the age of 16. Read the prospect carefully.” (2) The broadcast of advertising for medicinal (2) By derogation from the provisions of letter d) of products, vitamins, food supplements, nutrients, the previous par., the advertising for medicinal dietary supplements and medical treatments within products broadcast as reminder, shall include the the programmes dedicated to children or in the warning: “It is recommended to read the prospect advertising windows preceding or following such carefully.” programmes is prohibited. (3) To the sense of the present decision, reminder (3) Sponsorship of audiovisual programmes means an advertising spot that cumulatively means dedicated to children by producers and distributors the following requirements: of medicinal products, vitamins, food supplements, a) it is a part, continuation and/or completion of nutrients, dietary supplements and medical the same advertising campaign for a certain treatments is prohibited. medicinal product, produced within the (4) Advertising and teleshopping for products and same programme service; treatments curing sexual dysfunction or sexual b) it reminds to the audience elements of the problems or for breast boost shall be broadcast message presented in the main spot of the only between 22.00 – 6.00 hours, and shall be advertising campaign; c) it has a duration no longer than 10 seconds. accompanied by warning stating that these (4) The warnings mentioned in paragraph (1), letter products are not intended for children. d) and paragraph (2) shall be broadcast by observing the following requirements: Art. 146. a) in case of the main advertising spot the text (1) The broadcast of advertising and teleshopping shall be presented at the end, audio and is prohibited in case of: visual, lasting at least 6 seconds; a) products for the treatment of alcoholism; b) in case of the reminder, the text shall be b) clinical treatments for hair loss; presented during the broadcasting of the c) hypnosis, hypnosis therapy, psychology, spot so as to ensure a clear perception of psychoanalysis or psychiatry; the message. d) medicinal products whose cost is compensated. Art. 144. (2) Within advertising or teleshopping it is (1) The broadcast of advertising and teleshopping prohibited to mention therapeutic indications for medicinal products, vitamins, food supplements, referring to diseases such as: nutrients, dietary supplements and medical a) tuberculosis; treatments presented or recommended by b) sexually transmitted diseases; personalities of the public, cultural, scientific or c) other serous infectious diseases; sports life or by other persons who, through their d) cancer and other tumours; celebrity, may encourage the use of such medicinal e) chronic insomnia; products or treatments is prohibited. f) diabetes and other metabolic illnesses. legislation and taxes www.initiative.com

Art. 147. Art. 149. Advertising for medicinal products shall not contain Advertising and teleshopping for homeopathic any statement which: medicinal products and treatments are permitted a) shall give the impression that a medical only for those products and treatments certified by consultation or surgical operation is the Ministry of Health or by the Romanian Medical unnecessary, in particular by offering a Practitioners’ College. diagnosis or by suggesting treatment by mail; Art. 150. b) shall suggest that the effects of the medicine The broadcast of programmes or teleshopping are guaranteed, are unaccompanied by side presenting cases of cure of serious illnesses by effects or are better than, or equivalent to, using conventional or unconventional treatments, those of another treatment or medicinal in case the medical diagnosis and its attesting product; documents are not certified by the Romanian c) shall suggest that taking the medicine can Medical Practitioners’ College or if no enhance the health of the subject; representative of this body is present in the d) shall suggest that the health of the subject programme or teleshopping, to medically certify the could be affected by not taking the medicine; this prohibition shall not apply to the results, is prohibited. vaccination campaigns supported by the pharmaceutical industry and approved by Art. 151. the Ministry of Health; (1) The broadcast of advertising and teleshopping e) shall suggest that the medicinal product is suggesting that it is necessary for everyone to food, a cosmetic product or another supplement their diet with vitamins and minerals or consumer good; those supplements can better physical or mental f) shall suggest that the safety or efficacy of the functions that are normally good is prohibited. medicinal product is due to the fact that it is (2) The promotion of food supplements, dietary natural; supplements, vitamins and nutrients within the g) could, by the description or detailed audiovisual radio and television programmes shall representation of a case history or include, compulsorily, the following warning: “This symptoms, lead to erroneous self-diagnosis; is a food supplement. Read the prospect carefully.” h) shall suggest, in improper or misleading (3) The minimum duration of the warning terms, recovery; mentioned at par. (2) shall be of 3 seconds, and i) shall use, in improper, alarming or misleading shall be broadcast at the end of the advertising terms, images, pictorial representations or spot; on television channels the warning shall be photos showing changes in the human body presented in sound and image. caused by disease or injury, or by the action (4) In the case of the reminder, the text foreseen in of a medicinal product on the human body or par. (2) shall be presented during the broadcasting parts of it; of the advertising spot, to ensure a clear perception j) shall underline that the respective medicinal of the message. product is authorized by the National Agency of Medicine. Art. 152. Audiovisual programmes, advertising and Art. 148. (1) The broadcast of advertising and teleshopping teleshopping dedicated to weight loss and control of natural products and treatments that are not products and treatments without therapeutic accompanied by written and audio warning is indications shall observe the following prohibited, as the case may be: requirements: a) “product not certified by medical practice”; a) there is trustworthy scientific evidence for b) “method not certified by medical practice”. any statement on the benefice effects of the (2) In case the natural products and treatments are products or treatments; medically verified, the Romanian Medical b) where specific amounts of weight are Practitioners’ College shall certify. claimed to have been lost by individuals the (3) The warning foreseen in paragraph (1) shall be period over which the loss was achieved placed at the end of the advertising message. must be stated; www.initiative.com legislation and taxes 97

c) the amount of weight loss and the period Section 5 over which it took place should be Political Advertising and Advertising regarding compatible with generally accepted good the practicing of certain professions medical and dietary practice and not refer to unrepresentative properties of the product or Art. 155. medical service being offered; (1) For the purpose of the present cod, the d) for low-calorie foods and drinks, if presented advertising spots that promote a party, a politician as part of slimming regimes, it must be or a political message are considered political advertising. stated that the product leads to weight loss (2) Political advertising is prohibited, except during only as part of a calorie/energy control diet; elections campaigns. e) specially formulated products intended for use in calorie restriction diets, products, Art. 156. which, according to the producer’s (1) Advertising for public notaries offices or for any instructions, totally or partially replace the form of practice of the legal profession is prohibited. daily diet, shall be promoted under the name (2) Advertising for executors and judicial experts is “total diet replacement for weight loss” or prohibited. “partial diet replacement for weight loss”; f) for low-calorie foods and drinks, no reference Art. 157. shall be made to the rate or amount of weight (1) Active members of the Bar are not allowed to loss as a result of the use of those products, produce or to moderate programmes dealing with or regarding the reduction in the sensation of legal cases still under investigation or in Court. hunger or the increase in the sensation of (2) The participation and the interventions of satiety. lawyers in audiovisual programmes dealing with legal cases still under investigation or in Court (cases in which these lawyers are hired) shall Art. 153. observe the professional norms of barristers. (1) The promotion or presentation of products and treatments for slimming or weight control must Art. 158. include the written and audio warning, with duration (1) Any form of advertising for private or public of at least 5 seconds, “consult your doctor before providers of public medical services is prohibited. starting the diet”; diet must be presented or (2) The participation and the interventions of promoted only as a short-term measure. doctors in programmes on medical themes shall (2) Testimonials or specific case histories justifying observe the deontological principles of the Medical the diet are forbidden. Deontology Code adopted by the Medical Practitioners’ College in Romania. Art. 154. (3)Drugs that may be identified by mark or Advertising and teleshopping for any kind of commercial name, medical treatments, and public product or treatment for weight loss or control shall and private medical consulting rooms providing observe the following requirements: public services shall not be recommended during a) they shall not be directed to people under 18 audiovisual programmes on medical themes. and shall warn the public on this aspect by means of a written and/or audio insertion; Section 6 Teleshopping programmes b) they shall not be broadcast within the programmes directed to children or the Art. 159. advertising breaks preceding or following (1) The teleshopping programme consists of such programmes; broadcasting to the public direct selling offers c) they shall not be directly addressed to obese regarding the supply of certain goods in return for persons, shall not include case histories, payment, goods that are available only by means of where persons that were obese before using a remote contract. the advertised products or services speak (2) Within the meaning of the present Code, by about or present; remote contract is meant a contract concluded d) they shall not suggest or state that being between a trader and a consumer intended for the underweight is adequate or desirable. provision of products or services, within a trade legislation and taxes www.initiative.com

system organised by the trader, that uses exclusively, before and upon conclusion of the abovementioned contract, one or more distance communication techniques. (3) The offers broadcast shall abide by the provisions of the Government Ordinance no. 130/2000, concerning the legal status of remote contracts, adopted and modified by Law no. 51/2003 and of the Government Ordinance no. 85/2004 on consumer protection for the conclusion and development of remote contracts on financial services, approved with its modifications by Law no. 399/2004.

Art. 160. (1) Teleshopping programmes shall be readily identifiable as such and clearly separated from other audiovisual programmes by means of neutral optical and acoustic windows. (2) The teleshopping programme shall not contain and will not be interrupted by advertising spots.

Art. 161. The provisions of art. 160 shall not apply to programme services exclusively dedicated to teleshopping.

Details of these regulations can be consulted on www.cna.ro. www.initiative.com the national audio-visual council (NAC) 99

Foundation visual programme services any necessary data, The National Audiovisual Council was founded in information and documents in order to accomplish its 1992 (under the stipulations of the Audiovisual Law attributions, having the obligation to keep the no. 48/1992, abrogated in 2002 by Law 504/2002 confidentiality of the data that are not of public nature. and completed by Law 402/2003) in order to provide a legal framework for setting and maintaining a The Council issues decisions, instructions and competitive and free audiovisual market in the recommendations in the presence of at least 8 Romania. members and with the vote of at least 6 members, in order to fulfil its functions and attributions. Role and mission The National Audio-Visual Council (NAC) is a The Council’s decisions with a regulatory character, public, autonomous authority, under the control of the including their motivation, shall be published in the Parliament. Its role, established by law, is to protect Official Journal of Romania, Part I. The other the public interest in the field of audio-visual decisions, including their motivation, as well as the communication, under the conditions provided by Audiovisual Law no. 504/2002, published in the instructions and the recommendations issued by the Official Journal no. 534 of July 22, 2002. Council shall be made public. The National Audio-Visual Council (NAC) is the only regulatory authority in the field of audio-visual The documents with a regulatory character, issued program services in the terms of and by observing by the Council, can be contested in the administrative the provisions of Audiovisual Law. contentious court by any person estimating The National Audio-Visual Council (NAC) has himself/herself prejudiced by them. duties where the broadcast licensing, the content and the advertising are concerned: Decisions with individual character are • the observance of a pluralist expression of communicated to the interested parties and come ideas and opinions in the program services into force on the date of their communication, if not transmitted by radio broadcasters under the otherwise foreseen. Romanian jurisdiction; • ensures pluralism of information sources of the The Members of the Council public; • the favoring of free competition in the The Council is made up of 11 members. The NAC broadcasting field; members are assigned by the Parliament, on request • a fair balance between the national and of the Senate (3 members), the Chamber of Deputies local/regional or thematic broadcasting (3 members), the President of Romania services; (2 members), the Government (3 members). • ensures protection of human dignity and of The current members of the National Audiovisual minor children; Council are: • ensures protection of the Romanian culture and • Rasvan Popescu - president of NAC, appointed language, as well as of the culture and by the Chambers of Deputies in 2007, member languages of ethnic minorities; of NAC since 2000; • ensures transparency of mass communication • Ioan Carmazan – appointed in 2007 after means from the audio-visual sector; Valeriu Nicolau’s resignation; • ensures transparency of its own activities. • Constantin Dutu - appointed by the Chambers The Council has the following competences: of Deputies for the 2006–2012 period; • to establish the conditions, procedure and • Dan Grigore - appointed by the Government for criteria for the granting of audio-visual licenses; the 2006 - 2012 period; • to establish the procedure for the granting of • Ioan Onisei - appointed by the Chambers of the retransmission authorisation; Deputies for the 2006 - 2012 period; • to issue audio-visual licenses and retransmission authorisations for the operating • Szasz Attila – appointed for 2008 – 2012 of radio and TV programme services and to period; issue the audio-visual authorisation decisions; • Radu Teodorel - appointed by the Government • to issue regulatory normative decisions, in for the 2003 - 2008 period; order to accomplish its attributions; • Gelu Marian Trandafir – appointed by the • to draw up instructions and issue Presidency for the 2006 - 2012 period; recommendations for the development of the • Cristina Trepcea - appointed by the activities in the field of audio-visual Government for the 2002-2008 period; communication. • Emanuel Valeriu - appointed by the Presidency for the 2001-2008 period; The Council is authorised to request and receive • Grigore Zanc - appointed by Senate for the from radio-broadcasters and distributors of audio- 2004-2010 period. moldavian media market www.initiative.com

INITIATIVE MOLDOVA – Short presentation Top Categories, Advertisers INITIATIVE Moldova was established in June Mobile Telecommunication increased their 2002, is an affiliate of INITIATIVE Worldwide advertising activity and bypassed shops in (Interpublic Group). It is the leading media “Category” chart in 2007. Detergents had grown management agency in the Republic of Moldova. significantly over the last year. Banks and Financial Being a full service media agency INITIATIVE is Operations products increased their activity as well. specialized not only in planning and buying (as core The list of TV top advertisers remained almost the services) but also in additional services such as same over the last several years. product placement, outdoor advertising, Procter&Gamble maintains the leadership in sponsorship, direct mailing, online advertising, PR- “Advertiser” top, followed by Orange (France coverage, post-buy and competitive analysis. Telecom), Moldcell and Efes Vitanta Moldova Brewery. INITIATIVE is the agency with a pro-active attitude, a wider scope and a deeper understanding Media Research of media in order to deliver the most qualitative and Even if media research is an important and cost-effective solutions to clients. integral part of media market, unfortunately reliable and complex audience measurement in Moldova INITIATIVE Moldova has in its client portfolio both had been established only for television. The radio, major local and global clients, such as Orange press and outdoor measurement is either (France Telecom), Dirol Cadbury, Danone, Indesit, incomplete or under elaboration. Subaru, Continental, Air Moldova, Alina Electronic, Tina Systems, Lapmol, Dio Plus, Bucuria, Consumption and lifestyle research Vininvest, Peugeot. TNS Moldova (part of the TNS Ukraine) MOLDAVIAN MEDIA LANDSCAPE measures a comprehensive range of consumer characteristics (target persons between 12–65 y.o. The Moldavian media market continued to grow and residence in 10 major cities), such as: fast in 2007. Advertising budgets had continued to • Demographics increase in all major media, especially on TV and in • Lifestyle outdoor. • Media usage Many regional TV and radio stations obtained • Product and brand usage licenses in order to widen their broadcasting in new regions of the country. The data is being collected during face-to-face From January 2007 the sales house Video interviews twice a year (spring’s and autumn’s International began to sell its channels by GRP waves). The software package - Galileo - gives the price-list, alongside minute’s price-list. opportunity to build different kind of data tables, Several new major advertisers entered the containing useful consumer information. For market. example: The total net ATL advertising volume on • Readership of newspapers and magazines Moldavian market in 2007 was estimated at 26 mil • TV viewing behavior USD (+67% vs. 2006). • Radio usage behavior • Cinema attendance Ad-spend by medium • Attitude to different types of advertising

Graph 1: Ad-spent split by medium in 2007 New radio audience measurement “Super Nova” (part of TNS Moldova) appeared in December 2007. It gives opportunity to analyze the audience of the radio stations: • Demographics • Day of listening • Time of listening • Place of listening • Audience loyalty Source: AGB Moldova & Initiative • Audience moving from station to station www.initiative.com moldavian media market 101

TELEVISION Graph 2: Audience Share Moldova is a television driven market. TV still gives the highest feedback on the advertisers’ investment. Being a low-cost and accessible entertainment for the majority of the population, TV delivers the highest reach at national level. The increase of net TV ad-spend in 2007 vs. 2006 was 78%.

The first TV sales house – Video International Moldova – appeared at the end of 2005 stopped its activity in November 2007. At the same time has appeared the new big sales house – Casa Media. Source: AGB Moldova Now it is representing several major stations as follows: ORT, STS, NIT, 2Plus and Muz TV. It is Commercial share of the major TV stations expected that in 2008 some other channels will join ORT- Moldova once again holds the leading the sales house. position in terms of commercial share, while NIT The Moldavian TV market includes: and STS decreased.

• National stations: Graph 3: Major TV stations commercial share (%) 1. ORT-Moldova 2. Moldova 1 3. 2Plus • Regional stations: 1. STS 2. NIT 3. Pro TV 4. Muz TV 5. NTV • Cable stations: 1. Ren TV 2. N 4 3. TNT Source: AGB Moldova 4. TVC 21 Average ratings of the major TV stations 5. Euro TV The best rating delivery station on Moldavian Local advertising spots may be aired only on TV market was ORT-Moldova, followed by NIT and stations that have the broadcast license for STS. Moldova. ORT-Moldova, Moldova 1 and 2Plus have the Graph 4: Major TV stations average whole day ratings (Av Rtg %) best penetration being available in most Moldavian households. The regional stations are on air in all major cities of the country and in some rural areas. At the same time the cable stations are only broadcasted in the capital and big cities, but only via cable.

Audience share TV viewing share differs a lot comparing to the stations’ penetration. ORT-Moldova retains the leading position in terms of audience. Source: AGB Moldova moldavian media market www.initiative.com

Advertising clutter evolution - no. of seconds Penetration: 99% and Share: 5.69% Content: Local news in Romanian and Russian, The number of advertisers respectively the social programs, movies, serials, local cultural, number of minutes sold increased (50,5%) in 2007 sport and entertainment shows. The most popular compared to 2006. This was the reason of frequent programs are News broadcasts (19:00 and 21:00) clutters, especially in the fourth quarter of the year. and evening movies. Even new more expensive rate cards didn’t stop Moldova 1 is mostly preferred by the advanced advertisers from October-December clutter. age rural population – 45+ y.o. Graph 5: Advertising clutter evolution per month (no. of seconds) 2PLUS (Ro) Broadcasting: air and cable Penetration: 87-92% and Share: 2.46% Content: Digest channel, re-transmission of Antena International and TVR International (both Romania). It is the second republican tv network. Advertising policy: the local advertising breaks completely replace the Romanian ones. The station target is 60+ y.o., with middle income.

Regional stations Source: AGB Moldova NIT (Rus/Ro) Broadcasting: air and cable Mobile TV Penetration: 90% and Share: 6.29% Only one mobile operator – Orange – offers 6 TV Content: Digest channel, re-transmission of TVC channels with news, sports, films and video-clips International (Russia); local news in Romanian and which can be downloaded directly to a mobile Russian, movies. phone via "TV on a mobile phone" service. Advertising policy: the local advertising breaks did not completely replace the Russian ones. National Stations The station target is dominating by the young and middle-aged people. ORT - Moldova (The First Channel in Moldova) (Rus) STS (The First Entertainment Channel) (Rus) The absolute leader in audience share and in Type of broadcasting: air and cable ratings. Penetration: 60% and Share: 5.75% Broadcasting: air and cable Content: 100% re-transmission of the STS (the Penetration: 95% and Share: 36.53% first Russian TV station with exclusively enter- Content: 100% re-transmission of the “Pervyi tainment profile). Movies, entertainment shows, kanal” (Russia) – the biggest state-owned station soap operas, sitcoms, TV games, comedy shows in Russia. Movies, entertainment shows, soap are the highlight of this station schedule. In the operas, TV games, comedy shows, sports and afternoon and in the evening entertainment shows others are the highlight of this station’s schedule. and movies are shown with subtitles in Moldavian In addition to that, the Moldavian broadcasting language. In addition to that, the Moldavian company inserts local programs (in Romanian and broadcasting company inserts local programs. Russian). Advertising policy: the local advertising breaks Advertising policy: the local advertising breaks completely replace the Russian ones. completely replace the Russian ones. The station The station target – young and middle-aged has local inserts. people – 14 - 44 y.o. ORT - Moldova target is mass-viewers, predo- minantly middle-aged – 45-59 y.o. Pro TV – Pro TV (Moldova) (Ro/Rus) Broadcasting: air and cable Moldova 1 Penetration: 60% and Share: 0.52% (Public Moldavian Television – Moldova) (Ro/Rus) Content: 80% re-transmission of the Pro TV Station has the widest penetration in Moldova. (Romania); 20% - local news (in Romanian and Broadcasting: air and cable Russian), entertainment and political shows. www.initiative.com moldavian media market 103

Advertising policy: the local advertising breaks Target group profile: young, middle-aged and completely replace the Romanian ones. older people – 15-59 y.o. The station target is dominating by people 15-59 y.o. with middle income. N 4 (Local) (Rus) TV7_NTV (Rus) Broadcasting: cable Broadcasting: air and cable Penetration: 25% and Share: 0.8% Penetration: 55% and Share: 3.98% Content: Movies, entertainment shows, soap Content: re-transmission of the TV7_NTV (Russia); operas in Russian. entertainment and political shows, TV games, talk- Advertising policy: only local advertising breaks. shows, analytics, cognitive programs; local Target group profile: young and middle-aged programs: Today in Moldova, Cotidian, Observator people – 15-44 y.o. and others. Advertising policy: the local advertising breaks Euro TV (Ro) completely replace the Russian ones. Broadcasting: cable Station profile for Moldova – middle-aged and Penetration: 20% and Share: 0.5% older people – 45-59 y.o. with middle income. Content: 65% re-transmission of the TVR International (Romania); 35% - local programs Muz TV (Moldova) (Rus/Ro) (work days from 16:00 till 23:30, weekends from Broadcasting: air and cable 12:00 till 24:00, in the rest of the time is Penetration: 40% and Share: 1,08% re-transmitted TVRi) Advertising policy: the local advertising breaks Content: based on re-transmission Muz TV completely replace the Romanian ones. (Russia). Local programs (in Romanian and Station profile for Moldova: older people, 60+ y.o. Russian). Advertising policy: the local advertising breaks did Sun TV not completely replace the Russian ones. Is the biggest and widely spread cable network in Target groups profile: young people – 15-29 y.o. Moldova. Beside the most popular Russian and Romanian Cable stations (SUN TV) TV stations, some well-known international stations TVC 21 (Local) (Rus) such as CNN, Discovery, HBO, Animal Planet, Broadcasting: cable Eurosport, , etc are included into the Penetration: 40% and Share: n/a cable packages. Content: 100% local – movies, analytical pro- Cable network is an alternative and cost-effective grams and news (in Russian). way to reach urban audience. Advertising policy: only local advertising breaks. Share: n/a Target group profile: young and middle-aged * Source AGB Moldova people – 18-40 y.o. TV buying system Major TV channels sold advertising time both by TNT (Rus) minutes’ and GRPs’ rate-cards. Video International Broadcasting: cable Moldova – a part of the biggest Russian sales Penetration: 35% and Share: n/a house, Video International Russia – developed its Content: 100% re-transmission of the TNT_Bravo activity from the end of 2005 till the end of 2007. In (Russia). November 2007 the new sales house – Casa Advertising policy: the local advertising breaks did Media – has appeared on the Moldovan TV market. not completely replace the Russian ones. It is selling the advertising capacities of five TV Target group profile: young people – 15-29 y.o. stations in Moldova: ORT-Moldova, STS, NIT, 2Plus and Muz TV. The sales of other TV stations Ren TV (Rus) are made through internal sales departments. Broadcasting: cable Penetration: 30% and Share: 1.62% TV pricing policy Content: 100% re-transmission of the Ren TV Some TV stations still had different advertising (Russia). sales policies for local brands versus foreign Advertising policy: the local advertising breaks did brands. Cost of media is almost double for not completely replace the Russian ones. international advertisers. The average amount of moldavian media market www.initiative.com

advertising should not exceed 15% of daily People meters’ distribution: broadcasting time of each private TV and Radio • Chişinău – 92 units; station and 20% of the hour. Advertising of the • Center: 32 units – in the urban area and tobacco brands is prohibited on TV, while spirits may be advertised between 22:00-06:00. 39 units – in the rural area; Sponsorship of both news and political programs is • North: 49 units – in the urban area and prohibited. There is no restriction on the language 32 units – in the rural area; of TVCs. About 60% of all local TV spots are in • South: 27 units – in the urban area and Russian. 29 units – in the rural area; TV Buying Perspectives 2008 The overall TV ad-spend would keep an Characteristics of the service: ascending trend in 2008. In order to reduce the • each household is equipped with a TVM1 or clutter and to avoid the “sold out” situations, sales TVM2 people meter device. house and TV stations have implemented the following conditions: • minute-by-minute viewing data is delivered • the rate card prices are the subject to electronically the night after the data is increase collected. • seasonal coefficients for high cluttered • 13 TV stations are included in the survey (TV periods (October, November, December) have increased viewing, programs and advertising analysis): • discounts for non cluttered periods (January, ORT-Moldova, Moldova 1, 2Plus, NIT, STS, July, August) have been introduced Pro TV, TV7_NTV, Muz TV, TVC 21, TNT, • for floating or low-priority placement the Ren TV , N4 and Euro TV. advertiser is offering additional discounts • The software package (Arianna) offers: TV research TV viewing analysis, spot monitoring, Since December 2003 AGB Moldova (part of the campaign forecasting and evaluation, AGB Ukraine) has launched people meter advertising expenditures, post-buy and audience measurement service in Chisinau (150 households). competitive analysis. During 2006 - 2007 the panel 4+ y.o. consisted of P&P Studio also is providing TV monitoring data 300 households. but has no opportunity to measure the audience. Table 1: Radio coverage, all urban (%) Radio Format Source of Penetration Cvr. % broadcasting all urban Hit FM Musical Russian + local inserts Nationwide 47,3 Russkoe Radio - Poli Disc Musical Russian + local inserts Nationwide 42,4 Europa Plus Musical Russian + local inserts Multi-regional 20,1 Serebreanyi Dojd’ Musical Russian + local inserts Multi-regional 18 Retro FM Musical Russian + local inserts Regional 17,7 Musical Local Multi-regional 16,8 Kiss FM Musical Romanian+ local inserts Regional 16,3 Avto Radio Musical Russian + local inserts Regional 15,9 Public Local Nationwide 15,7 Radio Shanson Musical Russian + local inserts Regional 13,7 Nashe Radio Musical Russian + local inserts Regional 12,1 Megapolis FM Musical Russian + local inserts Regional 9,6 Radio Sanatatea Musical Local Multi-regional 8,8 Antena C Musical Local Multi-regional 8,4 Radio 7/Radio Ecou Musical Russian + local inserts Regional 8,2 Love Radio Musical Russian + local inserts Regional 6,9 Fresh FM Musical Russian + local inserts Multi-regional 6,3 Radio 21 Musical Romanian+ local inserts Regional 6 Radio Plai Musical Russian + local inserts Regional 5,6 Pro FM Musical Romanian+ local inserts Regional 5 Maestro FM Musical Local Regional 3,3 Radio BBC Musical Romanian+ local inserts Regional 2,7 Radio Nova Musical Local Regional 2,5 Musical Romanian+ local inserts Multi-regional 1,3 Univers FM Musical Local Regional 1,2 Source: TNS Moldova, MMI 2007/1 & MMI 2007/2 www.initiative.com moldavian media market 105

RADIO Table 2: Magazines (Monthly local editions) Title Circulation Cvr. % * Cvr. % ** There are more then 25 radio stations available in all urban all urban Moldova. Most of them are re-broadcasting either Aquarelle 4 000 10,4 9,8 Russian or Romanian-based radio stations. VIP magazine 4 000 6 6,7 The biggest commercial radio stations obtained Banki i Finasy / Profit 11 000 5,5 4,2 new licenses last year. This fact let them cover new Mobila&Design Interior 2 000 n/a 2,5 areas both urban and rural. The enlargement of the Auto Market 3 000 2,8 2,2 coverage attracted the new audience and as a Business Class 3 000 2,7 2,5 result bigger advertising budgets. Siesta Chisinau 6 000 2,2 2,2 Auto Expert 4 500 2,1 2,2 Most of the radio stations (except the state-owned Shopping 10 000 n/a 1,7 Radio Moldova) broadcast in FM frequency range Mabilinie razvlechenia 5 000 n/a 1,6 and have a private ownership. Russian-speaking Zile si nopti 10 000 n/a 1,6 stations are traditionally more popular than the Ostap 3 000 1,7 0,7 Neorama 3 000 1,6 1,2 local or the Romanian-speaking ones. Promo Plus 10 000 1,2 1,2 Several new radio stations are expected to Viata Ta 3 000 1 1,5 appear on the market both local and foreign. Some Punkt 3 000 0,7 0,8 of the actually researched stations are expected to Obiectiv AV 1 500 0,5 0,4 be dropped from the research in favor of other, Moldoveanca 5 000 n/a 0,6 more popular. Public 3 000 n/a 0,6 Siesta Escape 10 000 n/a 0,6 According to TNS Moldova data (12+ y.o., urban) Level 2 500 n/a 0,5 the average time spent to listen radio is from 30 Open Skies 10 000 n/a 0,2 min/day to 2 hours/day. Source: TNS Moldova, *MMI'2007/1, **MMI'2007/2 The total radio ad-spend has increased by 200% in 2007 vs. 2006. This abnormally big figure is Table 3: Periodicals (Weekly editions) Title Circulation Cvr. % * Cvr. % ** caused by TV sales-houses “battles” in the end of all urban all urban the year. As the result, part of TV budgets moved to Komsomoliskaya pravda 65 000 43,5 39,2 the radio. (Tolstushka) Antenna 60 000 37,6 37,2 Radio research Makler (Chisinau) - Friday 35 000 33 32,1 Argumenti i Facti 21 000 28,3 24,9 TNS Moldova (part of the TNS Ukraine) provides Makler (Chisinau) - Tuesday 15 000 20,6 16,1 radio audience measurement twice a year (spring’s Shans 22 500 19,3 14,7 and autumn’s waves) based on face-to-face Makler (Balti) 36 000 12,7 10,4 interviews, covering major Moldavian cities. The Makler (Chisinau) - Thursday15 000 10,4 9,2 software packages are “Galileo” and “Super Nova”. Logos-Press 11 000 10,4 7,2 9 000 10,3 6,1 SUN TV 10 000 9,5 5,7 PRESS Trud 12 000 9,2 8,9 Spros i Predlojenie (Balti) 10 000 9 7,4 Printed press is a part of the media mix for the Kishinevskie novosti 8 500 8,8 7,5 communication campaigns in Moldova. The Saptamina 12 000 8,6 7,8 increase of total press ad-spend in 2007 vs. 2006 TV Programe 32 000 7,8 5,1 was 30%. The press market continued to develop. /TV Programmy Jurnal de Chisinau 21 000 7,6 6,1 Literatura si Arta 16 000 6,5 2,5 There are daily newspapers, weekly newspapers Moldavskie vedomosti 6 000 4,5 2,7 and monthly magazines available for the Office 8 000 4,3 1,8 advertising exposure. Capitala / Stolitsa 4 500 3,9 2,3 Totally more than 50 issues are published in Novoe vremea 6 000 3,8 2,7 Moldova (available for local advertising): SMS Market 5 000 2,8 4,4 Sport Plus 7 000 2,4 2,7 • Monthly editions - 39% Analytique 5 000 0,8 0,4 • Weekly editions - 47% Fermierul 70 000 n/a 1,2 • Daily editions -14% Source: TNS Moldova, *MMI'2007/1, **MMI'2007/2 moldavian media market www.initiative.com

Table 4: Newspapers (Daily editions) • Neon Panels * ** Title Circulation Cvr. % Cvr. % • Roof Signs all urban all urban Komsomoliskaya pravda 9 000 19,8 17,5 • Fences Vremea 8 500 13,2 8,4 • Bridges Flux 3 000 11,7 10 Timpul 4 000 11,6 9,5 Nezavisimaya Moldova 6 500 11 9,9 Outdoor Carriers Split by Formats: Sport kurier 4 800 9,8 7,8 • Billboards 50% Moldova Suverana 4 200 7,3 3,6 • Citylights 26% Source: TNS Moldova, *MMI'2007/1, **MMI'2007/2 • Brandmauers 9% • Prismavisions 4% The Russian newspapers with the local inserts • Bigboards 3% (containing local ads) have traditionally higher • Others 8% circulation than the Moldavian ones. Advertising of both tobacco products and alcohol beverages in newspapers is allowed. Besides Chisinau, OOH supports cover major Moldavian cities, main transport routes and resorts The well-known magazines Cosmopolitan, Burda, of the country. Men’s Health, GQ, Elle etc. are presented on the Moldavian market in the formats published either Main investing categories in 2007: Mobile in Russia and Romania or Ukraine. New local communication services, Chains of shops, Cars, glossy magazines were issued, but their CPT Banks and Financial operations. remain very high. Audience measurement and independent Press research monitoring for OOH are not available at the Audience measurement is done by TNS Moldova moment. (part of TNS Ukraine) twice a year. The panel covers urban population aged 12-65 y.o. The In 2007 the Association of Advertising agencies sample counts 1,187 individuals. The software which coordinates actions of advertising agencies package is again Galileo. with local administration has been created. OUTDOOR Increase of taxes to the outdoor advertising has Following the trend of overall ad-spend increase led to a high rate of inflation in this media. and new legislation restrictions, the outdoor budgets had grown during the year. CINEMA

Billboard locations are multiplying and backlit and In 2007 cinema had one of the smallest total ad- dynamic models are replacing the traditional simple spend at Moldavian media market, but it should not painted billboards. Advertising on public be ignored. Patria cinema network was the biggest transportation vehicles is also common. TV screens advertiser in this sector in 2007, but as it was (with different types of display) placed inside expected, the other cinemas had joint their forces supermarket centers, entertaining centers and and made a competitive network on behalf of universities are the new entries on the market. Flacara – Gaudeamus.

Most of the OOH advertising supports are located Few major cinema halls from around the country in Chisinau (70 - 75% out of total number of were refurnished and brought to modern standards. supports). Patria cinema advertising department offers its The main OOH sizes are: clients combined packages including the • Billboards (6 × 3 m) opportunity to advertise on and off-screen: • Bigboards (10 × 4 m, 8 × 3 m, 12 × 5 m) • premieres sponsorship • Citylights (1.2 × 1.8 m) • special events • Public Clocks (4-sided, 1 × 1.9 m / side) • product sampling at the entrance in halls • Brandmauers • banners and posters • Prismavisions • branded program leaflets and cinema tickets www.initiative.com moldavian media market 107

The biggest cinema in Moldova is Patria • 42,4% of PC users did not use internet in their Center/Chisinau. Patria cinema network audience activity in 2007. The other 57,6% used the is around 70.000-100.000 people monthly. World Wide Web with the different frequency and from different places. Cinema Consumption • 50% - Patria/Center Chisinau 2008 perspectives of the Moldavian Market • 20% - Patria/Riscani Chisinau It is obvious that in 2008 the Moldavian media • 20% - Patria Balti market will continue to grow fast. The experts • 5% - Patria Cahul believe that the new advertisers, agencies and • 5% - Patria media will launch their activity on Moldavian market. The average media inflation is predicted at Profile of movie goers the level of 50 - 60%. Both local and foreign • 37,3% of urban population 12-65 y.o. had advertisers are estimated to increase their visited cinema during 2007. advertising budgets. • 51,5% of movie goers are either medium or heavy cinema users. As for Initiative Moldova, the agency is going to keep its leading position, to increase its solid Movie goers are especially aged between 16 and professional team, strengthen the relations with the 39 y.o., have a high or middle income level and actual clients, gain new ones and ensure maximum high education studies (according with TNS return for clients’ media investments. Moldova, MMI 2007/1 & MMI 2007/2).

INTERNET The Moldavian internet market is still under the development, but it has a big potential: • The number of internet sites, as well as advertising capabilities, is growing from year to year. • The number of households equipped with personal computers and internet connection is in continuous up-growth. • The main advertisers in Moldavian internet belong to the following categories: Computers /IT, mobile telecommunication services, cars/auto related and shops.

The general number of connections to the WorldNet, including the mobile Internet on the basis of GPRS technology , has increased in 2007 more than twice and for the first time has reached one million 6,7 thousand. The number of Internet users has grown by 85,3 % in 2007 vs 2006 and exceeded 729,4 thousand.

PC penetration and usage: • there is at least one PC in approximately every third household. • about 13,2% of households which have no PC are going to buy it in the nearest future. • the average use of PC in urban areas tends to 69,7%. • the majority of PC users (76,5%) had access to the computers at home and/or work. media dictionary www.initiative.com

Traditional media - advertising terms Bleed For print – running an ad to the edge of a page, Advertorial leaving no margin. It is a subtle form of communication, used in print, by which the strengths of the advertisers’ brands Circulation are communicated in an editorial format. The Number of copies of a given issue of a publication feature is clearly marked as an advertisement. It that is distributed, either paid or for free. should be in line with the editorial style of the publication. Client Volume Discount (CVD) A further discount for those advertisers that Affinity Index achieve specific levels of expenditure with a media Is an efficiency indicator in media planning. It owner / sales house. shows how a specific program / medium performs on a specific target group compared with a Clutter reference target group. E.g., for TV, the specific There are 3 main types of advertising clutter: target group of a brand (expressed as TRP) versus (1) The overall market clutter - the total number of a broader, reference target group e.g. ‘All Urban’, ads seen or heard by a person; that is the buying TA (expressed as GRP). The (2) The competitive clutter - the total number of affinity index = TRP/GRP and it should be higher ads seen or heard by a person for competing than 100% in order to optimise the TV buying. brands; (3) The media vehicle clutter - the length of each Agency Commission TV break or the number of ads contained within a A percentage of the net cost of advertising paid publication. by advertisers to advertising agencies that manage their advertising budgets. Commercial Break Is a break in a TV or radio transmission during Audience which ads are broadcast. The number of homes/individuals in a specific target group viewing, listening to or reading a Competitive Analysis particular media vehicle. A periodical (monthly, quarterly, yearly) monitoring of the competitive advertising activity: ad-spend, Audit of Circulation campaign period and weight, channel mix, strategy & tactics etc. The detailed circulation analysis of a publication, run by a specialised audit company. This Cost per Thousand (CPT) information becomes public and is a useful working The cost of achieving a thousand contacts with tool for the publications themselves, media readers / viewers / listeners. agencies and advertisers. Cost per Rating Point (CPP) Average Frequency The cost of a media vehicle (or media schedule) The average number of times a target is exposed for reaching one rating point (1%) of the specific to the advertising message. audience.

Barter Commercial A station/publication exchanges its adtime/adspace Any announcement that is broadcast with with other merchandise. Instead of selling the advertising purpose, an advertising spot. program to a station, its supplier gives the program to the station in exchange for commercial time Coverage during that program or during other programs of the The proportion (expressed as %) of a target station. audience that has any opportunity to see / hear the specific ad. Billboard American term for either the advertising on poster Daily Monitoring boarding or the sponsor’s mark around a television Daily follow-up of an ongoing TV campaign, to programme (usually static company logo). keep it within the planned parameters: spot www.initiative.com media dictionary 109

broadcasting, update of audience performance Flight (GRPs, TRPs) vs. planned, budget status – Period of advertising activity. supplementary spots are added if the budget under-performed or budgets are cut if the budget Flowchart over-performed. A yearly calendar of campaigns of a client. It shows the active periods by medium, by brand / product, and the campaign phasing. It is the Day-Part Segments graphic representation of the annul strategy. Time bands that have associated levels of audience delivery. For the Romanian market the Gross Rating Point (GRP) standard day-parts are: The sum of ratings achieved by a specific media • Day Time: 07:00 – 16:00 vehicle or schedule. 1 GRP = 1% of the target • Access Prime Time: 16:00 – 19:00 audience having at least one opportunity to see the • Prime Time: 19:00 – 23:00/24:00 commercial. GRP is a general media currency. • Late Fringe: 23:00/24:00 – 25:00 GRPs = Net reach × OTS. The day parts may vary from station to station and/or in weekdays and weekend. Gross Expenditures Refers to rate card budget, with no discounts, taxes or agency commission applied to it. Diary A log kept by members of a consumer panel to Guaranteed CPP record their viewing, listening, reading, purchase, Is the dominant TV sales policy on the Romanian consumption and other lifestyle habits etc. Used market. The cost for placing a spot results from the currently for radio, press, consumption study. amount of rating points recorded by that spot. The net/net cost of a spot = Cost / Point (All urban) Double Page Spread × Number of rating points recorded. Based on the Two full pages of immediately adjacent budget committed by a client to a TV station, on the advertising. share it represents of the total etc, the agency negotiates a Guaranteed CPP with the media Effective Frequency owner, for that client. The level of coverage and frequency calculated Guaranteed GRP to deliver the optimum awareness / sales The station commits to deliver a specific amount performance for a given creative / campaign. of audience – GRPs – for a certain campaign.

Effective Reach Horizontal Road Blocking The percentage of the target that is exposed to Placing a TV or radio commercial at the same the ad a sufficient number of times to produce a hour on different channels. It builds the reach of a positive change in awareness, attitude or campaign. purchasing behaviour. Implementation Planning Efficiency Producing a detailed media plan that is to be The relationship between circulation/audience bought within any given market, following the and cost, most commonly expressed as Cost Per media strategy. Thousand (CPT). Impression(s) The actual exposure of an individual from the TA Equivalent to the advertisement. In TV and radio, the advertising expenditure, CPT delivery for each commercial length is often Media Fragmentation expressed as an index on 30” or ‘30” equivalent’. Increase in the availability of media choice. The For Romanian TV, the standard cost indices are: process can be seen through the increase in the

10” 15” 20” 25” 30” 35” 40” 45” 50” 55” 60” 50% 70% 80% 90% 100% 120% 150% 170% 180% 190% 200% media dictionary www.initiative.com

number of print media titles, and more recently Phasing through the rise in the number of television Strategy of alternating the weekly weight of a channels (such as satellite broadcasting, cable). campaign in order to obtain greater media The media support becomes more targeted on a efficiency. narrower niche. Post-Buy Analysis Media Vehicle The evaluation of a schedule’s achievements Any advertising – carrying medium such as television, a magazine or an outdoor site. after its running, compared to the planned level. The analysis covers TRP and GRP performance, Media Plan OTS, coverage and frequency, airing time, the A detailed media schedule containing the list of actual position in break, analysis of the used TV spot / print layout placements for a period of time channels and programs, trends etc. (TV station / title, date, day, program, time, ad break / page number), estimated GRPs and costs. Premium Positioning The media plan reflects the implementation of the Preferential placement of ads in specific media media strategy. e.g. for print, positioning might mean the placement of the ad to face editorial, on the right page, on the Net/Net Expenditure back cover or inside cover etc. For TV, this might 1. Rate card minus all the discounts and benefits; mean the choice of the break or the choice of the 2. Net/net Cost/GRP × Rating of the program. position inside break – first / last etc. Net Expenditure Net/net plus the agency fee and the health and Rate Card cinema taxes, but excluding VAT. A medium’s price list. Rate cards are issued periodically and show the prices charged for Net Reach various timeslots, programs, press modules. Is the percentage of the target audience that was reached by the message at least once during a Rating Point period of time (e.g. a 4-week campaign). The percentage of audience recorded by a Net reach is 1+ coverage. particular program / issue of a publication. Net reach = GRPs / OTS. 1 rating point = 1% of a target group reached by that program. Optimisation A method of schedule planning / building using a computer program to produce an optimum Readers per Copy schedule according to criteria set by the planner / The average number of persons that read a copy market. of a publication calculated by dividing average readership of an issue by circulation. OTS/OTH The opportunity to see/hear an advertisement by Outdoor Site the target audience during a period of time (e.g. a An outdoor location where one or more poster 4-week campaign). panels are placed. OTS = GRP / Net reach. Share of Audience Panel The percentage of a viewing audience watching Sample of people who are used for regular (keep one channel out of all the TV viewing, at a given diaries, PM etc.) or periodic (repeated interviews) period of time. research. The advantage of panels is that they allow the tracking over time of viewing, listening or product consumption. Share of Expenditures (SoE), Share of Spend (SoS) Peoplemeters The brand’s or group of brands’ advertising Advanced monitoring tools that record the status weight expressed as a percentage of expenditures of the TV sets within a panel household, by of a defined total market or market segment, in a member of family, on a continuous basis. given time period. www.initiative.com media dictionary 111

Share of Voice (SoV) Online - advertising terms The brand’s or group of brands’ advertising Ad Server weight expressed as a percentage of GRPs, A computer, normally operated by a third party, number of pages, of poster sites etc. of a defined that delivers and tracks advertisements total market or market segment, in a given time period. independent of the web site where the ad is being displayed. Use of an ad server helps establish trust SNA FOCUS between an advertiser and publisher since the It is a consumption survey based on the already statistics are maintained by a objective third party. established SNA research. The research objectives: obtaining comprehensive information Banner Burnout about media penetration, products and services A term used to describe an event when a banner purchase patterns and the socio-cultural behaviour. has been shown to the same visitor(s) to the point It is a syndicated research, controlled by the where the click through rate has dropped advertising industry (BRAT). dramatically. Rotating banners helps to reduce banner burnout. Solo Spot Broadband - or high-speed Internet access allows An advertisement placed in the middle of a TV users to access the Internet and Internet-related program, without being announced as advertising. services at significantly higher speeds than those It records the rating of the program and has available through “dial-up” Internet access maximum impact. Its cost is higher than regular services. The Federal Communications advertising. By CNA decision, a TV station may Commission (FCC) generally defines broadband broadcast maximum two solo spots per day. service as data transmission speeds exceeding 200 kilobits per second (Kbps), or 200,000 bits per Strategic Media Planning second, in at least one direction: downstream (from Providing a media solution to marketing plans, the Internet to computer) or upstream (from establishing communication goals, media choice, computer to the Internet). seasonality and targeting. Clicks Target (universe/audience) The number of click through that have occurred The people or the market a campaign aims to as a result of a user clicking on a banner and being reach. redirected to an advertiser’s web page.

Target Rating Point (TRP) Click Through Rate Is the percentage of audience recorded by a The percentage of impressions that resulted in a program / issue of a publication against a particular click through. Calculated by dividing the number of target group. clicks by the number of impressions. For example 1 rating point = 1% of a target group reached by if a banner was click on 13 times after being that program. displayed 1000 times, the banner would have a click rate of ( 13 ÷ 1000 = .013 ) 1.3%. This is also Universe commonly know as a banners click rate. A group of people whose total number represents the ultimate potential reach of a piece of activity CPM (advertising, research etc) e.g. ‘All housewives’. Cost per thousand (CPM) is one of the online payment models by which advertisers pays for Vertical Road Blocking every 1000 impressions of their advertisement. Placing a TV or radio commercial on various Prices typically range from $1 to over $50 per timeslots on the same channel, on the same day. It thousand impressions. This is an ideal method of builds the frequency of a campaign. payment for advertisers who want to guarantee only the number of people who sees their banner. Weight The "M" in CPM is from the Roman numeral for The size of the advertising burst or campaign 1000. The Roman numeral M was derived from the measured by the GRP delivery. Latin word "mille" meaning "thousand". media dictionary www.initiative.com

xDLS eXtensible Distance Learning System. Frequency - A term used to describe the number of times the same advertisement is shown to the same visitor during a particular session or time frame. This can be accomplished through the use of cookies.

House Ads A type of banner advertisement that a web site publisher runs in an ad space when no paying advertisement is available to fill the space. Typically filled with an advertisement promoting one of the web sites services, products or features.

Impressions The number of times a banner ad was requested and presumably seen by users. It is often hard to obtain an accurate impression count as they can be undercounted due to issues relating to cache or overcounted due to requests that were not completed.

Inventor The number of ad spaces available for sale on a web site during a certain time frame. Determined buy taking into consideration the number of advertisements on a page, the number of pages with advertisements and the number of page views during a specific time frame.

Island Position A advertisement that is completely surrounded by editorial material with no adjoining advertisements to compete for the audiences attention.

Landing Page The page on a web site where one is taken after clicking on a advertisement. While this can be any page, it is often a page designed to expand on the service or product mentioned in the initial advertisment.

WAP Wireless Application Protocol - is a specification for a set of communication protocols to standardize the way that wireless devices, such as cellular telephones and radio transceivers, can be used for Internet access, including e-mail, the World Wide Web, newsgroups, and instant messaging. www.initiative.com notes notes www.initiative.com

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