1 2020

This document is a product of INITIATIVE MEDIA In putting together the Media Fact Book we have used data and information supplied by: The Romanian Association for Audience Measurement (ARMA), The Romanian Audit Bureau of Circulation (BRAT), The Romanian Association for Radio Audience Measurement (ARA), Kantar Media, International Advertising Association (IAA), Interactive Advertising Bureau (IAB), PriceWaterhouseCoopers, Business Monitor International, ANRCTI, The National Institute of Statistics (INSSE), EuroStat, focus- FACTBOOK economics.com, ANCOM, Profit.ro, iSense Solutions, Similar Web, Global Web Index, Statista, GPeC.

Acknowledgements to the following members of the INITIATIVE team who significantly contributed to this book: Content: Alexandra Olteanu, Catalin Florea, Ruxandra Stefan, Ruxandra Stan, Razvan Simionescu, Corina Burlan, Roxana Cristescu, Catalina Ghita, Alexandru Miu, Daniel Popescu, Editor’s Foreword • 4 Cosmin Otel, Adriana Ciobanu, Denisa Andrei. MACROECONOMY • 7 Special contributors: • Oana Osman - Founding Member and Deputy Editor in Chief at Profit.ro Media Market • 15 • Silviu Antohe, Valentin Ionescu, Nicoleta Grigoriu - Mullen Lowe Cover Story COVID -19 Impact • 23 • Veronica Oancea, Adelina Dobrin - Mullen Lowe Profero Television • 31 • Alexandru Safta, Marina Constanda - Golin Digital Media • 45 OOH • 67 Radio • 73 Print • 81

© INITIATIVE MEDIA S.A, Bucharest, 2020 All rights reserved list of abbreviations • 87

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 at the moment the book was written.

Your comments and suggestions are welcome as a valuable input for the future editions of this book. 20202020 MEDIAMEDIA 2 FACTBOOKFACTBOOK 3 EDITOR’S

I will open with a blunt statement: pandemic, own measures for The obvious, if sad remark is that At this moment, neither Print, nor FOREWORDthe current crisis is nothing like the business continuity. The focus OOH has little room left to fall. OOH could drive much higher one in 2009, from a media point of was set not on cheap exposure, And, in all fairness, it probably lost losses. TV loses almost 50M Euro, view. but on preserving connections – some of its value due to negative but keeps prices at a decent level, so something which brands, just as advertiser sentiment, rather than it conserves its potential to recover. Figures speak for themselves. In individuals, need to do in times of loss of reach, as some locations Furthermore, the lockdown proved 2009, the media market fell by social distancing. continued to record good traffic that peoples’ love story with TV is 36%, losing around 200M Euro. It even during lockdown, based on still going strong. Media groups and then needed 3 years to turn back However, in the long term, the big Google Mobility data. agencies had wished for an increase to growth. Now, according to our losers of 2009 were OOH (28M in TTV, to reduce inflationary forecast, 80M Euro (16.5%) will be Euro lost) and Print (43M Euro Print was a completely different pressures, and it happened in big lost by the end of 2020 – not a trivial lost). Let’s understand why this story (but also a sad one). In the style, with 30-40% increases in amount, but not the same, either. And happened and why it’s impossible present, its impact on the media daily TTV rating, at the peak of the this is only the tip of the iceberg. to happen again. market has become very low lockdown. But careful what you wish (2-3%). But back in 2008, Print for! We got the extra rating, not the In 2009, 115M Euro were lost by TV OOH will always suffer in times stood for 15% of the market, while extra spending, as part of the big alone, a hard blow from which TV of uncertainty, as long as it is suffering from a fatal vulnerability: advertisers was in offside, dealing never recovered fully. This was not not measured. It is (ironically) the circulation of many key titles with the forced closure of their only due to reduced business volumes a “good weather” medium. As had been artificially increased by businesses. Even so, TV stations (GRPs sold). It was massively soon as clouds gather above the bundling “premiums”. Rather have a much better position now, worsened by strong deflation, a economy and cuts have to be than be read for their content, than they had in 2009. race to the bottom which not only made, marketing executives look newspapers became more like contributed to the immediate crash for KPIs, if possible real-time, wrapping papers for books or What about Digital? In 2008 (when of the market, but also made it much and even in 2020 most outdoor various collectibles. As the crisis we still called it “Internet”) we more difficult to return to growth, as locations are unable to provide hit, publishers discovered that estimated Digital at 16M Euro or they could only sustain much more heavily discounted prices became the this. Falling from 70M Euro in 3% of the media market. Since than, modest circulations, which in turn norm. This time, the market knows 2009, OOH has struggled under it was the only medium to keep drove advertisers away. At the same better. Media groups provided better 35M Euro for 9 years and just growing no matter what, year after time, distribution collapsed, with a deals during the state of emergency when it was regaining some year. Until now. And here comes the strong impact on readership. Print, but avoided a “GRP yard sale”. They momentum, COVID-19 sends it to biggest headline: Digital loses 7M we might say, had been cut both at emphasized flexibility, availability the lowest level in recent history, Euro in 2020! We explain how this the suppliers’ and at the consumers’ and, accounting for the risks of a 23M Euro estimated for this year. happened in the “Media Market” ends.

4 5 section and, further, in “Digital”. spend as much as needed in order For the moment, let this sink in: to support economic recovery? we’ve watched Digital advertising Measures being taken, at European grow and now it has come of age. and national level, make us believe It is no longer invulnerable to that stimulus will be available to economic crises, and it gets its support spending and maintain own bruises as marketing budgets lifestyles at a decent level. But fall. However, same as TV, Digital one final piece of evidence should media saw strong increases in give us additional peace of mind. engagement during the first half People plan to spend less money on of 2020. Better than TV, it has a “unnecessary things”, according cellular, decentralized content to an ongoing study from iSense structure, with big advertising Solutions, but at the same time platforms which are highly they increase consumption of resilient to economic issues. So, things like alcoholic drinks, sweets again, while budgets temporarily and cosmetics. Google searches for decrease, the framework remains treadmills (among others) went in place, ready to support a quick through the roof, so did VOD recovery as soon as possible. subscriptions. Who are we to say what’s “necessary”? For all these reasons we can say that the COVID-19 tsunami, as People will continue to spend violent as it may be, is nothing like on whatever helps them deal the 2009 earthquake, at least in with current needs. It is up to us, Romanian media. Even if medical agencies and clients, to understand problems extend into the second these needs and guide people to the half of the year or 2021, we have solutions we provide. Not much reasons to maintain a positive has changed after all, at the core of outlook. our mission. For everything else, for the evolutions in 2019 and the One final, key question: will changes in 2020, let’s have a look at people be able and willing to this year’s Media Fact Book.

6 7 An economic year when only uncertainty is certain

All 2020 forecasts and prognosis A crisis with a source outside entrepreneur cannot rely on to needed resources to ever recover, made by a multitude of entities markets and economic laws, adapt his business plans, more hundreds of thousands of lost specialized in understanding whose ending depends on keeping than on his intuition. jobs will not be regained through the economic outlook have a new virus under control, has immediate re-employment. Unlike previous crises, this been reduced to nothing in found authorities and companies Measures to mitigate effects have time, the main causes of the the first weeks of March. In lacking the prescription for been taken by Governments economic collapse are not the Romania, as everywhere else in a treatment verified in the everywhere, central banks have the world, economists, analysts, disruption of market mechanisms, past. Never in known times accelerated money printing at or miscalculations made by and Government officials have have decisions been made so companies and public authorities. historically unprecedented rates, acquired only one certainty - that largely based on… nothing. In Now, the economy has simply but all of these are only temporary the future is uncertain. More the absence of verified data, been shut down “by decree”, in band-aids. uncertain than ever. information and models, analysts many sectors that transmit chain are speculating around possible A true recovery cannot exist until reactions to others as well, in recovery scenarios in an uncertain the real economy and markets order to focus all social efforts on future, following an economic regain their breath on their own, a single goal: the fight against a collapse of equally uncertain virus. companies restart production magnitude. and consumers start buying Unfortunately, the exit cannot again. Central banks cannot print “It will be a quick, type V return”, be as simple, even if a law would food, nor vehicles, construction some say. “More likely, however, suddenly lift all restrictions. The materials or real services. it will be a U type, slower one”, economy is not recovering as anticipate others with caution. easily as it froze, its mechanisms And Governments cannot pay “Not even a W evolution is are not restarting unaffected technical unemployment or ruled out, with a relapse before exactly where they were left guaranteed minimum incomes to a new increase”; a saraband of off. Thousands of shutdown entire nations of people turned alphabetical forecasts, which an companies will not have the into long-term socially assisted.

Oana Osman 8 9 THE RECOVERY, ON MOVING SAND

The timing of such a true recovery with the European Commission a double or even triple value than the total. The impact could be can hardly be guessed now, when accepting levels higher than the one the Government is still partially balanced by an increase many questions have not yet 3% of GDP in the context of leaning on. of food spending, which accounts been answered. How long before the crisis, is nothing more than for 25% of total spending, the all economic activities will be a sad consolation. Even if not The European Bank for largest share in the EU. able to come back to normality? sanctioned by the Commission, Reconstruction and Development How long will it take for people the huge deficit must still be (EBRD) has strongly revised Investments have declined due to to overcome their mobility and financed. And investors’ desire downwards the forecasts for the uncertainty and negative market consumption restraints, even in to finance states with precarious Romanian economy this year, in sentiment, and cashflow pressure the absence of restrictions? When macroeconomic balances at the context of the pandemic, and and supply chain disruptions is a second wave of the pandemic reasonable costs has diminished now estimates a contraction of could cause ongoing investments expected to happen and to what together with available resources. 4%. Last autumn, it estimated an to cease. magnitude? Will we have to shut increase of 3.2%. The European everything down again and be An additional problem is that the Commission estimates that GDP The most affected areas remain forced to isolate ourselves once new budget deficit estimated by will fall by 6% this year, and the HoReCa, manufacturing, more, before having the chance the Ministry of Public Finance at International Monetary Fund construction, non-food retail, but to at least partially recover the most recent rectification, of believes that we will have a 5% the effects are being transmitted economically? For how long and 6.7%, is unrealistically optimistic decline. like a chain reaction in many on what resources will the state be even at this huge level, given that other areas. able to maintain social stability, in it is based on the anticipation of Yet recovery prospects are the absence of an active economy an economic decline estimated anticipated for 2021, when An additional fragility is added in maintaining its support policies? by the National Forecast EBRD considers that Romania’s the energy sector, given that the Commission at only 1.9%. economy is going to register a 4% collapse of international oil prices These are all questions without growth. Such recovery is expected, will lead to losses for most players clear answers, even for more A forecast that no one believes however, provided the epidemic in the field. developed countries. For in, not even the Government, slows down significantly in the Romania is less dependent on Romania, the COVID-19 crisis although it continues to allocate second quarter, and all restrictions could not have come at a worse expenditures as if GDP is going to are lifted. international trade compared to time for a budget already crippled decrease by only that percentage. other EU countries in the region. by past irresponsible measures, All international financial Home isolation reduces the Nonetheless, the pandemic was which ended last year with a fiscal institutions, without exception, private consumption of services also a heavy blow to Romanian deficit of 4.6%. For the current all rating agencies, the European that imply direct contact with exports, including concerning Government, the fact that the Commission and all banking other people, as well as private trade ties with Italy (about 10% of danger of entering the excessive economists believe that Romania consumption of durable goods, goods exported by Romania go to deficit procedure has disappeared, will have a contraction of GDP of which together represent 30% of Italy).

10 11 SOME GOOD SIGNS, THOUGH

A good sign came from the first it was already looking bad since Unfortunately for the economy, to keep the consumer’s morale data released for the first quarter February. the so-called reopening of depressed for a while. of the year, which turned out activities could only be allowed to be less bad than expected. Public consumption remained very gradually, the strict social Data on trust in the economy show a minimum low of the last The evolution of the economy the main driver of growth at distance remaining in force, nearly three decades in April, with surprised positively the analysts, the beginning of this year, but with some restrictions related the lowest expectations regarding who expected a contraction in the data include only a small to traveling outside the cities: a fraction of the traffic restrictions industry, services, and trade. the first three months, compared situation which analysts expect period, imposed with the state of to the fourth quarter of 2019. In emergency in mid-March. exchange, the GDP advanced by 0.3%, an evolution which was Retail trade maintained on a high also determined by “huge” state dynamic in the first quarter, and expenditures, which registered a the constructions industry held record budget deficit in the first its very high annual dynamic SMALLER DECREASE THAN IN THE EU, quarter. of almost a third. On the other hand, industrial production BUT IMPACTED BY THE DECLINE OF WESTERN On the other hand, the economic continued to decline rapidly aftermath of the pandemic is and data on all fronts worsened. ECONOMIES expected to be felt most acutely In March, it exceeded 350,000 in the second quarter, although layoffs, most of them in retail and manufacturing, and the number of The strongly deteriorated data fourth quarter of 2019. In those Romania will most likely avoid a suspended contracts (for technical of the Romanian economy, places where the restrictions technical recession. unemployment) approached however, looks better compared imposed by the authorities due Compared to the first quarter 900,000. to the decrease reported by to the pandemic were tougher, other European countries, much the economic decline was wider: of 2019, Romania’s economy Starting March, exports and more severely affected by the -5% in France, Italy and Spain, grew by 2.4% in the first three imports have contracted, wage coronavirus. The European compared to about -2% in months of 2020, when the budget increases have slowed down deficit reached 1.7% of GDP, and could turn into declines, economy has registered the Germany and the Netherlands, the highest level ever recorded. retail sales are contracting, steepest economic decline in where the situation was more Budget execution was affected and industrial production has history in the first quarter of relaxed, while Finland’s economy by the pandemic in March, but decreased. 2020, of 3.8% compared to the grew by 0.1%.

12 13 And economic evolution at the under the prospect of being continental level finally comes to downgraded to the junk category strongly influence our country due to its fiscal situation, which as well, considering that the EU would significantly increase is the main export market and state loans in the future, fiscal the main source of foreign direct discipline measures remain investment. sensitive, as do decisions with high electoral impact, such as The evolution of the next year the increase of pensions with an is dependent, however, not only unlikely level of 40% starting on the external environment, September, regarding which but also on economic policies in the Government is hesitant to the electoral context. Although announce that it will have to be Romania’s sovereign rating is postponed or at least adjusted.

PRESSURES ON RON DEPRECIATION

In the context of the pandemic, reimburse in advance the funding Romania`s external position has granted in the past, and the capital also strongly deteriorated, with contribution was reduced. Foreign poor prospects for the evolution of direct investment thus reached the exchange rate. Current account a negative value of EUR 551 deficit continued to deepen, to million, and their importance is EUR 1.37 billion in March, due to very high because they remain the trade in goods, where the deficit healthiest source for financing the increased by over 50%, to EUR 2.5 current account deficit. In their billion. absence, the state will need inflows from other external sources, The problem is not only the such as foreign investment in external deficit itself, but also Government securities, which are its funding, because the flow much more volatile. Otherwise, of foreign investments went to currency outflows can only negative values in March. Foreign lead to something increasingly groups withdrew from investments predictable: the depreciation of in subsidiaries, asked them to the RON.

14 15 This evolution is based on and Q3 (-20%). For Q4, we expect a slightly positive dynamic the decrease to continue in a less estimated for Q1 2020 (+3%), aggressive manner (-10-12%), followed by strong decreases of which raises the average, since the media market in Q2 (-35%) budgets are concentrated towards MEDIA the end of the year. Market share in 2014-2020 (net ad-spend by medium)

6% 5% 4% 3% 2% 3% 1% 100% 5% 6% 6% 6% 5% 6% 6% 6% 8% 7% 7% 7% 9% 8% 80% 18% 18% 19% 21% 23% 16% 17% 60% In 2019 the Romanian Media market continued its growth, reaching 480M Euro by the end of the year (+5.6% vs. 2018). For 2020, considering the 40% 65% 66% 66% 64% 65% current economic disruptions, we expect a decrease of 16.5%, down to 401M 63% 64% MARKET 20% Euro.

0% 2014 2015 2016 2017 2018 2019 est after Covid 2020 Media in 2020 TV Digital OOH Radio Print Source: Initiative The market had barely recovered revision of our forecast. At the from the last recession, caused moment of writing, in mid-June, by the 2008-2010 crisis, when we expect the market to drop by DIGITAL tail” of small businesses which the Spring of 2020 hit, taking us 16.5% this year, down to 401M Surprisingly, although a part of advertise mostly or exclusively back several years. However, it Euro.Our scenario is moderately Digital media has proven to be online, usually on the Google is important to remember that optimistic, since it assumes a resilient to lockdown effects and and Facebook platforms. This before this year’s decrease, media partial recovery of most media by online shopping has thrived, year, for the first time, we are had experienced sustained growth the end of the year and does not we expect Digital to lose 7% of also estimating this long tail, for 7 years (since 2013). In 2019, account for the potential impact its value, overall, compared to which we believe to amount to the market reached 480M Euro, of a second wave of restrictions in 2019. The reason is that slashed another 200M Euro – details in and 2020 was looking well, until Q3-Q4 2020. marketing budgets from hard-hit the “Digital” section. If included the pandemic caused a significant categories such as Non-food retail, in the market shares above, Finance, or Automotive spread this would radically change the 2014 -2020 Total net Ad-spend by medium (Million Euro) –Estimation to all media, not just offline, and landscape, bringing TV and € 506 M Digital spending at similar levels. € 480 M even with a recovery in Q3-Q4, € 454 M we do not think that Digital In order to be relevant for our € 412 M € 401 M € 366 M will be able to make up for the market and because data remains € 332 M € 313 M lost budgets. This approach is sketchy, we prefer to keep our supported, at European level, by focus on big advertisers. IAB Europe, which forecasts a quick recovery for ad spending TV on social media, confirming the 2014 2015 2016 2017 2018 2019 2020 before 2020 after As a consequence, instead of Source: Initiative Covid est. Covid est. general sentiment, but moderate continuing its slight decrease, Media TOTAL (Mil €) TV Print Radio OOH Digital recovery for search and slow for the share of TV is expected to 2014 313 198 17 18 28 51 display and classifieds (doubled increase this year, back to 2018 2015 332 212 16 19 28 57 by a deep initial decrease) – and 2016 366 240 14 20 28 64 levels. Starting in April, the TV 2017 412 273 13 23 29 73 this is where the highest volumes market is defined by COVID-19 2018 454 300 13 26 31 85 are. In addition, our forecast is special offers, discounts and 2019 480 308 12 28 32 99 2020 before Covid est. 506 316 11 31 34 115 based on big advertisers’ Digital back-up sales policies, in a wiser, 2020 after Covid est. 401 261 5 20 23 92 volumes, not including the “long more careful approach, not as 16 17 2019 Market Analysis

The TV average CPM (cost per aggressive as we could have of isolation the radio might Back to 2019 – a better year by all thousand) increased vs last year, expected. The deflation context have been, more than usual, an accounts – we recorded positive and the previous 2008 crisis important voice in the room. evolutions on most media, except reaching 3.41 euro on 18-49 U experience taught us to challenge Keeping the public informed at Print, which dropped by 5% target (8% increase) and 0.57 euro a different new approach - this difficult time was challenging compared to the previous year , on National (1% increase). deflations were implemented with and it is particularly interesting maintaining its negative trend. moderation, mainly resulting to see how the most important Growth was driven, as usually, by The ranking of main media into downgrades of premium Romanian Radio stations adapted Digital media (+17%, reaching groups remained stable, led by surcharges and decreases of the to the new reality. The 2020 99M Euro). It was followed by CME, Intact and Dogan Media, seasonality indexes. Considering impact on the Radio market is all these factors, we estimate a Radio (+10%, up to 28M Euro), which together represented 63% currently estimated at -29%, a OOH (+5%, up to 32M Euro) and of the sold inventory and 74% of 15% decrease in TV investment serious decrease, which would for 2020, compared to 2019. TV (+2.5%, up to 308M Euro). As revenues. Among top TV stations, mean that a 2-digit comeback in a result, Digital media continued Pro TV (Rtg. 3.9%, Shr. 22.5%, All 2021 becomes imperative. OOH to gain market share, while TV 18-49 urban) maintained detached showed a decrease. leadership despite a marginally As the quarantine was enforced, PRINT car traffic in Bucharest decreased lower performance compared Finally, Print was effectively to last year. It was followed by only by 20%, with rare spikes silenced during the lockdown and Television Antena 1 (Rtg. 2.5%, Shr. 14.5%), up to 35% in some occasions, we do not expect a quick recovery TV continued to grow in value also on a slight decreasing trend according to traffic reports this year. Ironically, 2020 was (+2.5% vs. 2018, reaching 308M by Phoenix Media. However, supposed to be a very important Euro) and decrease in share and Kanal D (Rtg. 1.6%, Shr. 9%). pedestrian traffic almost came to year for publishers, given the two (-1.9pp vs 2018). Due to TTV a standstill. Although downtown major sports events scheduled Rating erosion, the sold inventory Preferences in terms of content traffic decreased, the residential during summer, the European decreased by 5% compared to remained focused on locally areas maintained steady numbers. Football Championship and the 2018. The loading level in ad produced talent and cooking The overall COVID-19 impact on 2020 Tokyo Olympic Games, both breaks was around 95% for shows, which meant continued the 2020 OOH market is expected canceled due to the pandemic All Day, and Prime Time was strong performance from well- to reach -30% in spending, with impact worldwide. More than completely sold out almost all established brands, such as an estimated total of 23M Euro. that, all sports events were either year, from March till December. Romanii au talent (Pro TV), Show cancelled or postponed, which si-asa! (Antena 1), and Exatlon will generate a major negative RADIO impact on the advertising budgets The cost evolution exceeded 10% (Kanal D). Each big station also Radio has always been about traditionally invested by brand inflation, driven by CPP day experimented with new shows or companionship. As the categories associated with sports. parts inflation, seasonality index TV series, achieving good results COVID-19 crisis developed from In 2020, the print market is increases, correction indexes in most cases. See the “Television” mid-March and more people expected to further drop by 61%. adjustments, and other factors. section for more details. spent time at home, at this time

18 19 Digital media people purchasing via desktops Boosted by a growing market, the active and creative in offering Digital drove growth in 2019 or laptops. Further details are clutter continued to accumulate, special media packages, (+17% vs 2018), reaching nearly available in the “Digital” section. and advertisers reached for new integrating radio airtime and 100M Euro without including the innovative ways to communicate digital properties, especially „long tail” of smaller advertisers. OOH through oversized 3D and social media, putting together Google & Facebook added Following the trend of the last interactive special projects. attractive marketing campaigns, new tools and options to their 3 years, OOH added another 5% Continuing the 2018 trend, the being partners in big, successful platforms, while local publishers growth during 2019, reaching an standard formats in Bucharest concerts and special events. See developed various creative and estimated net investment of 32M capped prices at maximum 5% the “Radio” section for details. impactful new formats. Euro. inflation but charged up to 25% more for special projects media Print Internet penetration reached 80% costs. On the other hand, standard Although in 2018 the OOH Advertising revenues for Print of total population in Romania locations went up to 30% in cities Company of the City Hall in 2019 were estimated at 12.1M last year, and there is a visible such as Craiova, Arad, Braila and approved the Implementation Euro, dropping by 5% vs the trend for social categories that Norms necessary for OOH law others, the main reason being the previous year, as the distribution were less connected to the enforcement in Bucharest, there implementation of the OOH law networks problems persist, with internet until now, such as older were no major changes and and local norms. Metrorex kept on high impact on print advertising. generations or individuals with business pursued its organic increasing media fees, reaching an The readership decline was lower education, to have an growth in standard and temporary unprecedented 40% inflation. See steeper in 2019 compared to the accelerated penetration growth. big formats. 2019 also had a busy the “OOH” section for details. waves from the previous years. electoral calendar with European The coverage for dailies and Smartphones were the devices and Presidential elections. All the weeklies dropped on average by most used to go online by all age above delayed the implementation RADIO 17-19%, while readership for groups, and this is confirmed by of the new OOH norms. Just as a 2019 proved to be a fruitful year advertising budgets split by all reminder, the OOH Law draws a for the Radio industry, as the monthlies increased on average major platforms/players, with new background for the industry, market managed to sustain the by 1%. In a more positive note, mobile formats being generally setting new rules, limits and previous year growing trend of readers’ preferences are quite the best performing. Android imposing strict standards. 10% in ad spend, up to 28M Euro. stable across the years: women phones are predominant in Kiss FM remained the top choice continue to prefer glossy Romania, and Facebook and Among them, the off-limits areas in urban area, while Bucharest magazines with specialized Facebook Messenger are installed where outdoor advertising is still residents preferred Radio ZU. editorial content (beauty, fashion, on most devices. Mobile internet possible, the specific types and In 2019 daily reach increased lifestyle and career), followed access has also been supported sizes of supports that can be used, significantly at urban level (+2.2 by weekly publications focused by the increase in high speed and the exceptions from the rules. pp) and marginally in Bucharest on more practical topics, such internet connections: 16% more Last, but not least, the OOH Law (0.9 pp). AG Radio Holding as childcare, housekeeping, 4G connections versus 2018. In requires that panels are installed consolidated its market leadership healthcare, cooking. In 2019, e-commerce, mobile surpassed in public places only after a public with a 3% increase of Rate Card the male audience remained desktop in terms of total sales auction has been conducted, volumes vs 2018, reaching 30%. constantly interested in daily value. However, the number which puts almost every OOH newspaper, with a marginal of people who make online advertising structure currently Radio stations continued their increase for weekly and monthly purchases via mobile devices is situated in Bucharest public areas effort to consolidate advertising business titles. See the “Print” still smaller than the number of outside the new legislation. revenue shares by being very section for details.

20 21 Top Investors The main categories for 2019 domestic appliances, Carbonated are similar to 2018, with some soft drinks, Sweets, Clothing, position shifting. The top is accessories and e-shops, as well dominated by Pharma, Cosmetics, as Restaurants, coffee shops & hygienic, hair care & cleaners fast foods. Meanwhile, a slight and Mobile telecommunications. drop occurred in media spending A growing trend could be for Beer, Cars & 4x4 vehicles and seen for Retail, Electronics & Snacks & cooking products.

Beer Electronics & domestic appliances Pharma MIL 15 (€) MIL e-comerce 22(€) MIL Retailers (€) Key accounts MIL Sweets 63 12(€) MIL MIL Cars & 4x4 vehicles 30(€) 8 (€) Restaurants, MIL 6 (€) coffee shops, fast foods MIL MIL MIL (€) 17 (€) (€) 45 MIL Carbonated 34 17 (€) soft drinks

MIL Clothing & accessories, Mobile Cosmetics, hygienic, Banking & 7 (€) e-shops telecommunications services hair care & cleaners insurance services

Pharma kept its position as the players, eMAG & Flanco and #1 category, with a 10% increase Altex & Media Galaxy, with versus 2018, because of higher bigger budgets in 2019. investment from players such as Zdrovit, Sanofi and Naturpharma. The decreasing trend in Banking & insurance stopped in 2019 as In Cosmetics, hygienic, hair care the budgets maintained 2018 & cleaners, Reckitt Benckiser and levels, even though the two Henkel are among the players biggest players, BCR and ING with the highest growth, while Group, had significant drops (47% Unilever and Beiersdorf dropped. and 40%, respectively).

In Telco, all main players Quadrant Amaroq Beverages, the dropped in comparison to 2018, biggest spender in Carbonated most notable Telekom (-46%). soft drinks invested more in 2019, alongside The Coca Cola Company In Retail, Kaufland continues to & Tymbark Maspex, moving the be a threat for Lidl’s #1 position. category one position up. Carrefour invested more in 2019, while Rewe and Metro dropped. Beer dropped a spot in the top; The Electronics & domestic Heineken is the only player with appliances category (including a budget increase in 2019, while e-commerce) continues to be Ursus and Tuborg reduced their dominated by two traditional media investments. 22 23 “We always overestimate the change All of these, in the making for In the Spring of 2020, as many companies, as well as advertising that will occur in the next two years decades. All, seemingly becoming of us became isolated at home, professionals. and underestimate the change that mainstream as a positive authorities were quick to reassure will occur in the next ten”, said consequence of lockdowns. And us that “we will meet again” Life at home is not perfect, but Bill Gates almost 25 years ago. the list of fortunate outcomes goes (brands, included). “Don’t know it looks better than the office, COVID-19 has reinforced our on. Didn’t we wish for higher where, don’t know when” we for many of us. And this simple appetite for short-term, hyped-up standards of public hygiene? might add, recalling the famous finding may turn the tables predictions, as effects are assumed Didn’t we woefully point out wartime song, as we see that in media – for a revolution in to be focused during the crisis Romania’s low consumption people are not so eager to come workspaces would drive radical and dispelled as vaccines become of soap and toothpaste? And back to old habits. A study by changes in daily routines and globally available. But what if the wasn’t local sourcing a political Colliers International, a real estate media consumption. Starting pandemic only gives us a taste of highlight, supported by brands company, shows that 7 out of from this scenario, we are taking a the future, and its resolution will and consumers alike? 10 Romanian employees would look at a possible future of media, actually set things in motion? like to work from home more, building on the facts we have Could there be glimpses of our But let’s not hurry to see when restrictions are eased. This collected during the first half of lives, 10 years from now, in the the pandemic as a cathartic has been echoed by several large 2020. sometimes eerie, sometimes experience. Unemployment, satisfying post-lockdown lifestyle? fragile small businesses, possibly increasing prices for consumer As most of Europe was at home, goods (including local ones) and an intriguing thought emerged. decreasing household income Flattening a different curve? Dayparts. “The pandemic will accelerate are parts of this mechanism, history, rather than reshape it”, well connected to its positive 18-49U TV Viewing, 1 Mar-7 May, 2020 vs 2019 wrote Foreign Affairs, a magazine side. Above all, social distancing 45 dealing with international acts as a conveyor belt, turning 40 politics, in the beginning of April. the wheels of good and bad 35 Beyond politics and social trends, effects alike. And talking about 30 the idea also resonated in the acceleration – let us not forget areas of consumer behavior and that social distancing has also 25 business management. Released been in the making for a long RTG % 20 from the power of habit and while. Going physically apart has 15 nudged by movement restrictions, not only been a consequence of 10 we (re)discovered online shopping the growth of internet, but a long- 5 and payments, remote work and, time aspiration related to better 0 07:00 - 08:00 - 09:00 - 10:00 - 11:00 - 12:00 - 13:00 - 14:00 - 15:00 - 16:00 - 17:00 - 18:00 - 19:00 - 20:00 - 21:00 - 22:00 - 23:00 - most importantly, life at home. quality of life. 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 24:00 Source: Kantar, Media Division, Copyright ARMA 2019 2020

24 25 During the state of emergency, the best content in the evening. digital (although media agencies, The measurement framework there was an over 25% increase Similar shifts have been seen for including Initiative, develop their changes slowly and at significant in TTV ratings during 10:00- major sports competitions (e.g. own tools for video planning). costs, but the process was already 18:00, while prime time audience the football World Cup) or for And most of OOH media, without started and it will only accelerate increased by less than 5%. Most cultures where people take a mid- real-time monitoring, was now. If Digital is a model of employees were still working day break. Both cases are strongly flexible, real-time KPIs, TV powerless in dealing with sudden away from home (a survey by rooted in large-scale, predictable should also serve as a model for changes in traffic. Although, as Bestjobs suggested that less than behaviors. standardization and transparency. Google Mobility and Phoenix 3 in 10 people were working from Bring these together, apply them home). This shows potential to Could a migration from office Media data show, there were areas to the whole market, and data- redistribute audiences along the to home reduce the gap between where traffic decreases weren’t so driven decisions will be possible day, if work from home becomes prime time and daytime under bad (70-80% of normal levels, at in any scenario, with a high common. normal circumstances? Possibly, the peak of the lockdown). degree of automation. but only when new behavior However, the shift was driven by patterns have stabilized, and TV news stations under exceptional stations have had the time to The multifold impact of circumstances, and we cannot reconsider their programming. social distancing on media assume that the same behavior While the potential is there, we 25 Mar would occur normally. Current expect the process to be gradual, Rtg% 11 Mar total lockdown GRP30L closing of schools 9 May 21 Mar 29 Mar State of emergency audiences are also tied in by TV and it is difficult to anticipate its 26.0 6 Mar stricter isolation extended Easing measures 12,000.0 no. of cases starts closing of malls measures announced to increase social restrictions station programming, placing end state. Easter May 1st 24.0 10,000.0

22.0 8,000.0 20.0 6,000.0 We’re not measuring as much as it seems, 18.0 4,000.0 and this should change. 16.0 14.0 2,000.0 Currently, in Romania, TV is towards better monitoring, but 12.0 0.0 still has a long way to go. 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 2 4 6 8 10 12 the only medium measured daily Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Apr Apr Apr Apr Apr Apr Apr Apr Apr Apr Apr Apr Apr Apr Apr May May May May May May

and accurately, across stations Source: Kantar, Media Division, Copyright ARMA daily TV adv. Presence, 2020, GRP30L TTV rtg% 2019 TTV rtg% 2020 and advertisers, nationally, All of these already applied before in a way which fully enables COVID-19. The first thing that In mid-March we noticed that research and planning at media struck us during the lockdown Beyond the immediate effect TV audiences were increasing, level (not limited to a supplier was the shift of radio audiences there is, of course, the background while advertiser presence was impact of reduced purchasing or touchpoint). Digital remains from in-car analogic to at-home decreasing. This was not so much power, due to layoffs and furloughs. a collection of platforms and streaming. Surveys suggested about concerns for brand safety This affects a wider range of suppliers, opaque in terms it, radio stations and BRAT/ or cancelled campaigns. It was, businesses, on a longer term, and of competitive monitoring SATI data proved it, through plain and simple, the exit of with a delay, because it throttles 2- and even 3-digit increases in and lacking standardization categories affected by Government demand. Government support is online engagement. But there (only think about the different restrictions, such as Non-food essential here, but even so recovery is no way to reliably measure definitions of a ‘video view’!). retail, Finance and Automotive. is expected no earlier than 2021. If Radio measurement is covered all radio listening, no matter Part of this decrease has been we factor in macroeconomic risks through only 3 waves per year, the type of connection. Same as recovered meanwhile, but as long in an electoral year, with an already with no way to aggregate analogic there is no standardized way to as large businesses are restricted strained economy, this negative listening and streaming. And measure and plan audience for in their activity, media will also component may be even more OOH has made some steps video content including TV and suffer. persistent. 26 27 The most far-reaching effects This only deepens the impact There’s an important remark to be service similar to Netflix or are driven not by medical or of our main condition for this made here: among all streaming HBOGO, but including ads. It’s economic factors, but by changes scenario – a partial move towards services, including movie sites, a minority, but not one to be in consumer behavior. Once we working from home – with strong Netflix is now the leader in web ignored. What’s more, if a good get used to not traveling so far, effects in Cinema and BTL, traffic, according to Similar balance is found between content not going out so much or not and potential effects in OOH, Web. Which means it’s by far and ads, opinions may quickly taking part in large events, it may depending on the evolution of the leader in overall traffic, if we improve through trial. be hard to go back to previous traffic within and outside cities. included its mobile applications. behaviors. It’s important, because 10 years The lockdown also stimulated ago it was hard to imagine people online shopping and payments, paying for video content, unless threatened by the police. And the albeit at the cost of physical same has happened with gaming retail. Finance brands had been Here to stay: streaming, gaming and – searches and sales of consoles struggling for many years to were boosted by the lockdown, promote card payment, only to ecommerce in Romania as in many other have one of their claims turned countries. High sales of games and into official advice during the Both Netflix and HBO GO before the pandemic and will high activity on gaming platforms pandemic: cash is dirty, pay achieved high traffic during the probably continue to increase. were reported. No police was by card or mobile! Web traffic lockdown and managed to keep required – just a better experience increased for online stores and most of it afterwards. Some of Essentially, the lockdown served compared to alternatives, which delivery services, and Revolut finally solved the value equation the most popular movie sites as a great trial for streaming. transactions for online shopping in favor of copyright. (carrying mostly illegal content) Even if, in the next months, soared by 64%, driven by eMag had a similar dynamic. Spotify retention will decrease driven with a whopping +162% (14 Romania is still missing a strong also showed a slightly positive by opportunism (and holidays), Mar – 14 Apr 2020, vs previous evolution. And this is only AVOD service – video on demand providers have gained valuable month). In a study by iSense counting web traffic, measured supported by advertising. This insights, as more people have Solutions, 92% of the respondents by Similar Web, without mobile may soon change with the taken contact with this form of said that retailers should offer apps, where a lot of the usage launch of several stations under delivery services after the state takes place. Radio, as already entertainment. And accepting the Aleph brand – a project mentioned, became more of the cost of streaming is, to a large announced last year by Adrian of emergency ends, with 25% a streaming service than ever extent, a matter of value reframing Sârbu. According to a survey very likely to use such services before. Online TV services such as – it seems expensive compared made in 2019 by Initiative and and 52%, “quite possibly”. 2020 ProTV Plus and Antena Play did to free, illegal downloads, but iSense Solutions, around 20% may very well be the year when not shine during the lockdown, reasonable compared to a cinema of the urban population would online grocery shopping goes but they had performed very well ticket. be interested in a free streaming mainstream.

28 29 From recent events to a long-term media outlook

Like it or not, the number of and lower social grades, this is hours in a day is constant, and the time of going digital. Not there’s only so much content specifically due to the pandemic, that somebody can view in although there was an incentive multi-screen mode. If staying of accessing more news online home meant more watching TV, and keeping in touch with closed more online activity and more ones. But because everybody streaming and gaming, was there else is already there. Increases any time left for actual work? in internet and smartphone Many professionals feel that the penetration, in Romania, are lockdown was a very busy time. currently driven by people over But Kantar data show a very 55, with low education or living in balanced increase in TV audiences rural areas. Fresh traffic in digital – meaning that employees, same media mostly consists in those as everybody else, watched more who are catching up, not your TV. typical digital enthusiast. News station audiences have Looking back from 2030, we may always been volatile during big say that 10 years ago there was a events, and TV will probably second infestation besides SARS- come back to its slightly CoV-2, caused by a virus which we decreasing evolution, even if 2020 will show as a break in the trend. had hosted for a long time before But otherwise, as long as people – digitalization. After a long time spend more time at home, they are of trying to hold together digital likely to interact more with media possibilities and remnants of and in a wider time frame. After an analogic lifestyle, it was then all, this may very well be a part of that we found ourselves parting the gained comfort which makes with the old ways forever. And so many of us prefer work from so, Media Fact Book 2030 would home. include a special mention for what had surely been a peculiar event: For children, it was a sort of the 2020 launch of the first Media indoor holiday, and we could see Fact Book ever written at home how gaming web traffic took off – or at over 30 homes, for that as the schools closed. For seniors matter.

30 31 OVERVIEWTELEVIS ION In 2019 Televison continued its the reporting system and other In 2019, the cost evolution exceed- Due to TTV Rating erosion, -7% sixth year of solid growth, reach- channels such as Da Vinci Learn- ed 10% inflation, driven by CPP on 18-49 Urban buying target ing an estimated volume of 308M ing & Telekom Sport 2 exited the day parts inflation, seasonality audience (06:00-26:00), the TV EUR (+2.5% vs. 2018). monitoring system. index increases, correction index- Market ended in a lower invento- es adjustments, and other factors. ry sold, -5% versus 2018. March The number of monitored chan- Analogue cable, Direct to Home The TV average CPM increased and September were very difficult nels grew to 72 in 2019, when and Terrestrial transmissions vs last year, reaching 3.41 Euro on to manage, because of the double some TV stations such as MTV, dropped in 2019 vs 2018, while the 18-49 U target (8% increase) digits, steep drop of TTV (17% VH1, TVR 3, NickToons, Real- Digital Cable grew significantly and 0.57 Euro on National (1% decrease in March and 9% in itatea Plus, TV1000, Jim Jam, (from 26% to 31%), after three increase). September). Travel Channel were included in years of stagnation.

Year 2015 2016 2017 2018 2019 chart 1: Reception type evolution All 18-49, urban target sold GRP30" (000) 2,016 2,200 2,225 2,235 2,111 Inventory sold % minutes 86% 92% 93% 92% 95% 100% 4% 4% 3% 2% 1% 1% 19% Source: Kantar Media Romania, Initiative estimate 90% 23% 23% 23% 24% 23% 23% 80%

70% 16% 17% 22% 25% 25% 26% 31% 60% 50% chart 2: 2018 – 2019 sold GRP30” (‘000) by month (all 18-49, urban target)

40% Sold GRP30" all 18-49, urban 250 221 216 30% 210 64% 64% 63% 204 197 201 205 62% 62% 62% 61% 200 189 175 180 179 178 184 181 168 175 173 166 20% 156 154 161 161 158 154 150 10% 100 0% 2013 2014 2015 2016 2017 2018 2019 Terrestrial Direct To Home (DTH) Digital cable with receiver Analogue cable 50

Source: Kantar Media Romania, Establishment Survey 0 Jul-18 Jul-19 Apr-18 Oct-18 Apr-19 Oct-19 Jan-18 Jun-18 Jan-19 Jun-19 Mar-18 Feb-18 Mar-19 Feb-19 Nov-18 Dec-18 Nov-19 Dec-19 Aug-18 Sep-18 Aug-19 Sep-19 May-18 May-19 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Source: Kantar Media Romania, Initiative estimate

32 33 The clutter was very visible, parameters, Prime Time, Position along the entire year, adding more in Break, Special Ads like Solo Channels Performance and Profile pressure in the market. Most of spots, Split screens, besides the In 2019 the top 3 TV channels The 2nd tier of channels consists the clients had to pay more in usual CPP inflation announced were the same as in 2018, with in two strong News stations, order to obtain the best formula and sold by TV suppliers. Pro TV leading by far (Rtg. 3.9%, Romania TV, ranked 4th (Rtg. between quantity and quality Shr. 22.5%, All 18-49 urban), 0.6%, Shr. 3.2%), and Antena 3 KPIs. The loading level in ad break despite the marginally lower (Rtg. 0.5%, Shr. 2.9%). Following was around 95% for All Day and performance compared to the in top 10 TV channels, with Therefore, the average Prime Time was completely sold comparable performance were: market CPP was increased out almost all year, from March previous year, followed by Antena 1 (Rtg. 2.5%, Shr. 14.5%), also on a Digi Sport 1 (Rtg. 0.5%, Shr. 2.7%) by overcharging the quality until December. and Digi 24 (Rtg. 0.3%, Shr. 1.9%), slight decreasing trend and Kanal Prima TV (Rtg. 0.3%, Shr. 1.9%), D (Rtg. 1.6%, Shr. 9%), which National TV (Rtg. 0.3%, Shr. chart 3: 2018 – 2019 Average Inventory sold % Min (07:00-26:00) and Prime Time reflected the most stable evolution 1.8%) and Pro Cinema (Rtg. 0.3%, vs. legal limit compared to 2018. Shr. 1.5%). 140%

120% chart 5: 2018 - 2019 Monthly Dynamics – Time Bands Analysis (Rtg%, All 18-49 urban – top channels, 07:00-26:00) 100% 6 Pro TV 80% 5 Antena 1 60% Kanal D AVG all day AVG PT 4 40% Romania TV Antena 3 20% 3 DigiSport 1 Jul-18 Jul-19 Apr-18 Apr-19 Oct-18 Oct-19 Jan-18 Jun-18 Jan-19 Jun-19 Feb-18 Mar-18 Feb-19 Mar-19 Aug-18 Sep-18 Nov-18 Dec-18 Aug-19 Sep-19 Nov-19 Dec-19 May-18 May-19 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 2 Digi 24 Source: Kantar Media & Initiative Estimation Prima TV 1 National TV The total 18-49 Urban GRP30” In terms of advertising revenues, 0 Pro Cinema sold by the TV channels in 2019 CME kept leadership with 41%, Jul-19 Jul-18 Apr-19 Oct-19 Apr-18 Oct-18 Jan-19 Feb-19 Mar-19 Jun-19 Jan-18 Feb-18 Mar-18 Jun-18 Aug-19 Sep-19 Nov-19 Dec-19 Aug-18 Sep-18 Nov-18 Dec-18 May-19 was of 2,111 million, of which followed by Intact with 24% and May-18 30% were sold by CME, 22% by Dogan Media with 10%. Source: Kantar, Media Division, Copyright ARMA Intact and 11% by Dogan Media. Looking at the weekly TTV to mid-May), including Easter evolution compared to 2018, in season and significantly lower chart 4: 2018-2019 Sold all 18-49, urban GRP30” vs. 2019 the TV market registered during Summer weeks 23-30 (June Advertising revenues share, main TV Groups higher audience levels during and July). weeks 15-20 (from mid-April Inner: Share of Sold 18-49 U GRP30" Outter: Share of ads revenue CHART 6: 2018 – 2019 weekly TTV dynamics (Rtg%, All 18-49 urban) 25% 26% 28 2018 2019 26 30% 41% 36% 32% 43% 37% 24 2018 2019 22 20 9% 10% 18 10% 22% CME 11% 22% 16 Intact 14 Dogan Media 12 23% 24% Others 10 wk 1 wk 2 wk 3 wk 4 wk 5 wk 6 wk 7 wk 8 wk 9 wk 10 wk 11 wk 12 wk 13 wk 14 wk 15 wk 16 wk 17 wk 18 wk 19 wk 20 wk 21 wk 22 wk 23 wk 24 wk 25 wk 26 wk 27 wk 28 wk 29 wk 30 wk 31 wk 32 wk 33 wk 34 wk 35 wk 36 wk 37 wk 38 wk 39 wk 40 wk 41 wk 42 wk 43 wk 44 wk 45 wk 46 wk 47 wk 48 wk 49 wk 50 wk 51 wk 52 Source: Initiative Estimation Source: Kantar, Media Division, Copyright ARMA 34 35 chart 7: 2013 – 2019 Talent Shows Performance (Rtg%, All 18-49 urban) 25.0 21.5 21.3 20.0 18.1 17.4 16.1 14.8

15.0 13.7 13.2 12.8 10.8 10.8 10.7 10.2 10.7 9.2 9.2 8.7 8.8 8.2 8.5 10.0 8.6 8.0 7.9 7.7 7.8 7.7 7.6 7.6 7.3 7.4 6.9 6.9 7.0 6.8 6.8 6.4 6.7 6.2 6.2 6.1 5.6 5.4 5.4 5.3 5.3 5.0 5.2 5.0 4.8 4.7 3.9 5.0 3.5 0.0 2013 2014 2015 2016 2017 2018 2019 Romanii au talent (Pro TV) X-Factor (Ant 1) Vocea Romaniei (Pro TV) Te cunosc de undeva (Ant 1) Next Star (Ant 1) iUmor (Ant 1) Poftiti pe la noi (Ant 1) Chefi la cutite (Ant 1) Asia expres (Ant 1) Exatlon (Kanal D) Show si-asa! (Ant 1) Sef sub acoperire (Pro TV) Canta acum cu mine (Pro TV) Source: Kantar, Media Division, Copyright ARMA In 2019, the main TV channels very good audience performance. continued their programming The newly launched local series strategy based on local Sacrificiul and Scena misterelor also productions, as this genre proved performed very well. to hold the highest return on The Romanian TV market is affinity in AB and DE social In 2019 Kanal D’s performance dominated by generalist TV grades clusters, proving to cover a investment potential, given the was marked by significantly lower channels, which have a large wide range of content preference. public’s high preference for ratings for Exatlon compared addressability and confirm their Antena 1 and Kanal D local shows. Therefore, Pro TV to the previous seasons, but the leading position every year despite maintained their skew towards continued to be the dominant show managed to be the second the marginal erosion of their female audiences through their player, with established shows most watched program on performance, leaving a small but programming typologies, both such as Romanii au talent, Visuri la Kanal D, after the new Turkish growing share for niche channels, also improving in preference cheie, Ferma, Un nou inceput, Vocea series Gulperi. Povestea noastra, which manage to build loyal among population in medium Romaniei, Gospodar fara pereche, Pe Pretul fericirii and Lacrimi la audiences based on their content and large urban areas. In terms bune?!, Ce spun romanii, and new thematic and high engagement of age segments, Antena 1 lost Marea Neagra were among the successful productions such as Sef potential. For example, in significantly in young age groups new Turkish productions in the sub acoperire and Canta acum cu 2019 niche channels such as (12-34 y.o.), slightly improving in grid in 2019, together with the mine and relaunched the cooking DigiSport1, Diva, Film Café, 45+ y.o. show Masterchef. Pro TV also Romanian production Moldovenii. B1TV, Minimax, Happy Channel, continued to develop local quality Established shows like Se striga Nickelodeon, TNT, TLC and Kanal D managed to rejuvenate fiction productions, such as Las daru’, Roata norocului, Puterea Bollywood TV achieved higher its audience profile, with a Fierbinti, Ai nostri, Lectii de viata dragostei, Bravo, ai stil! and audience levels (Rtg % all 18-49 significant improvement among U) compared to 2018. 18-24 y.o. and marginal among and the more recent series Vlad Asta-i Romania kept their good performance. 35-44 y.o. audience groups, and Profu’. As some TV channels tend to reflected a preference drop from 25-34 y.o. TV viewers, same as Pro Talent shows and cooking change programming strategy in Antena 1 confirmed its strong time, their audience profiles tend TV and Antena 1. Besides that, challenger position by improving programs are the most popular to shift also, although the changes through the programming, Kanal the content quality of its talent genres among Romanians since are not dramatic from one year to D managed to consolidate affinity shows and continuing to achieve 2012: Romanii au talent (Pro TV) another. among DE social grades on the high performance on Te cunosc de remained the most viewed talent expense of ABC cluster. undeva, iUmor, Show s-asa!, Asia show, followed by Show si-asa! The audience profile analysis for Prima TV kept its balanced Express, Insula iubirii, Fructul oprit, (Antena 1), and Ferma: Un nou 2019 shows that PRO TV display genre profile with a slight skew The wall, Poftiti pe la noi. Antena inceput. Chefi la cutite from Antena a stable audience profile due to towards a more male audience and 1 continued to produce the most 1 continues to be present in top 5 the consistent programming managed to consolidate both AB successful cooking show on the viewed programs in 2019, while strategy throughout the years, and DE social grades preferences market Chefi la cutite, with a twist: Exatlon follows at a marginal keeping the balanced gender through a wide range of content Chefi la cutite: Familii la cutite with profile between men and women. types, while the loss of affinity difference in performance. Still, the channel lost some 25-34 among 35-44 y.o. segment was y.o. viewers and increased in the compensated by a gain in 45-54 45+ y.o. age groups, but improved y.o.

36 37 TVR1 projected a quite stable and medium urban areas and with audience profile compared to a significant loss among 25-54 2018, with marginal improvement y.o. age groups and significant for AB social grades and small improvement among 65+ y.o. Most News channels continue 3 and Romania TV and Realitatea to have a balanced gender TV, while B1TV continues to viewership, with marginal skew reflect a higher affinity with 2018 2019 towards women for Antena 3 and 45-54 y.o., despite the marginal chart 8: Pro TV Profile (Affinity Index) chart 9: Antena 1 Profile (Affinity Index) Romania TV. Notable for 2019 decrease since 2018. Digi24 is the was that all of them increased News channel with a strong skew Men Men in preference among population towards male audience, that also Bucharest Bucharest 250 Women 250 Women Urban Social with high social status (AB managed to keep the strongest Urban 200k+ 200 grade AB 200k+ 200 Social social grades), some of them preference among 35-54 y.o. grade AB 150 Urban 150 Social Urban Social 100k - 200k grade C significantly, such as Realitatea audience groups despite the slight 100k - 200k 100 grade C 100 TV and Digi 24. In terms of decrease vs. 2018 and managed Urban 50 Social Urban 50 Social 30k-100k grade DE demographics, the preference also to strengthen preference 30k-100k grade DE 0 0 among mature segments 55+ y.o. among 55+ segments with high Urban Age Urban Age 4 - 11 stays strong especially for Antena social status. 30k 4 - 11 30k

Age Age Age Age 65+ 65+ 12 - 17 12 - 17 Age Age Age Age 55 - 64 18 - 24 55 - 64 18 - 24 Age Age Age Age 45 - 54 45 - 54 Age 25 - 34 Age 25 - 34 2018 2019 35 - 44 35 - 44 Source: Kantar, Media Division, Copyright ARMA Source: Kantar, Media Division, Copyright ARMA chart 15: Realitatea TV Profile chart 14: B1 TV Profile (Urban Affinity Index) (Urban Affinity Index) chart 10: Kanal D Profile (Affinity Index) chart 11: Prima TV Profile (Affinity Index) Men Men Bucharest 300 Bucharest 300 Men Men Women Women Bucharest Women Urban 250 Urban 250 250 Bucharest 250 Women 200k+ Social 200k+ Social 200 grade AB 200 grade AB Urban 200 Social Urban 200 Social Urban grade AB Urban 200k+ 200k+ grade AB 100k - 200k 150 Social 100k - 200k 150 Social 150 150 grade C grade C Urban Social Urban Social 100 100 grade C 100k - 200k 100 100k - 200k 100 grade C Urban Urban 30k-100k 50 Social 50 Social grade DE 30k-100k grade DE Urban 50 Social Urban 50 Social 0 0 30k-100k grade DE 30k-100k grade DE Urban Urban 0 0 Age Age 30k 4 - 11 30k 4 - 11 Urban Age Urban Age 4 - 11 4 - 11 30k 30k Age Age Age Age 65+ 12 - 17 65+ 12 - 17 Age Age Age Age Age Age Age 65+ 12 - 17 65+ 12 - 17 Age 55 - 64 18 - 24 55 - 64 18 - 24 Age Age Age Age Age Age Age Age 55 - 64 18 - 24 45 - 54 Age 25 - 34 45 - 54 Age 25 - 34 55 - 64 18 - 24 35 - 44 35 - 44 Age Age Age Age 25 - 34 45 - 54 Age 25 - 34 45 - 54 Age 35 - 44 35 - 44 Source: Kantar, Media Division, Copyright ARMA Source: Kantar, Media Division, Copyright ARMA Source: Kantar, Media Division, Copyright ARMA Source: Kantar, Media Division, Copyright ARMA chart 16: Antena 3 Profile chart 12: TVR1 Profile (Affinity Index) chart 13: National TV Profile (Affinity Index) (Urban Affinity Index) Men Men Men Bucharest 300 Women Women Bucharest 250 Women Bucharest 250 Urban 250 Social 200k+ grade AB Urban 200 Social Urban 200 Social 200 grade AB 200k+ 200k+ grade AB Urban 150 Social 150 150 100k - 200k grade C Urban Social Urban Social 100 100k - 200k 100 grade C 100k - 200k 100 grade C Urban 50 Social 30k-100k grade DE Urban 50 Social Urban 50 Social 0 30k-100k grade DE 30k-100k grade DE 0 0 Urban Age 30k 4 - 11 Urban Age Urban Age 30k 4 - 11 30k 4 - 11 Age Age 65+ 12 - 17 Age Age Age Age 65+ 12 - 17 65+ 12 - 17 Age Age 55 - 64 18 - 24 Age Age Age Age Age Age 55 - 64 18 - 24 55 - 64 18 - 24 45 - 54 Age 25 - 34 Age Age Age Age 35 - 44 45 - 54 Age 25 - 34 45 - 54 Age 25 - 34 35 - 44 35 - 44 Source: Kantar, Media Division, Copyright ARMA Source: Kantar, Media Division, Copyright ARMA Source: Kantar, Media Division, Copyright ARMA chart 17: Romania TV Profile chart18: Digi24 Profile (Urban Affinity Index) 38 (Urban Affinity Index) Men 39 Men Bucharest 300 Women Bucharest 300 Women 250 Social 250 Urban Urban Social 200k+ grade AB 200k+ grade AB 200 200 Social Urban 150 Urban 150 Social 100k - 200k grade C 100k - 200k grade C 100 100 Social Urban 50 Urban 50 Social 30k-100k grade DE 30k-100k grade DE 0 0 Urban Age Urban Age 30k 4 - 11 30k 4 - 11 Age Age Age Age 65+ 12 - 17 65+ 12 - 17 Age Age Age Age 55 - 64 18 - 24 55 - 64 18 - 24 Age Age Age Age 45 - 54 Age 25 - 34 45 - 54 Age 25 - 34 35 - 44 35 - 44 Source: Kantar, Media Division, Copyright ARMA Source: Kantar, Media Division, Copyright ARMA 2018 2019

chart 15: Realitatea TV Profile chart 14: B1 TV Profile (Urban Affinity Index) (Urban Affinity Index)

Men Men Bucharest Bucharest 300 Women 300 Women Urban 250 Urban 250 200k+ Social 200k+ Social 200 grade AB 200 grade AB Urban Urban 100k - 200k 150 Social 100k - 200k 150 Social grade C grade C 100 100 Urban Urban 30k-100k 50 Social 50 Social grade DE 30k-100k grade DE 0 0 Urban Age Urban Age 30k 4 - 11 30k 4 - 11

Age Age Age Age 65+ 12 - 17 65+ 12 - 17 Age Age Age Age 55 - 64 18 - 24 55 - 64 18 - 24 Age Age Age Age 45 - 54 Age 25 - 34 45 - 54 Age 25 - 34 35 - 44 35 - 44 Source: Kantar, Media Division, Copyright ARMA Source: Kantar, Media Division, Copyright ARMA chart 16: Antena 3 Profile (Urban Affinity Index) Men Bucharest 300 Women Urban 250 Social 200k+ 200 grade AB Urban 150 Social 100k - 200k grade C 100 Urban 50 Social 30k-100k grade DE 0 Urban Age 30k 4 - 11

Age Age 65+ 12 - 17 Age Age 55 - 64 18 - 24 Age Age 45 - 54 Age 25 - 34 35 - 44 Source: Kantar, Media Division, Copyright ARMA

chart 17: Romania TV Profile chart18: Digi24 Profile (Urban Affinity Index) 2018 2019 (Urban Affinity Index) Men Men Bucharest 300 Women Bucharest 300 Women 250 Social chart 20: Pro 2 (Acasa TV) Profile 250 Urban chart 19: Diva Profile (Urban Affinity Index) Urban Social 200k+ grade AB (Urban Affinity Index) 200k+ grade AB 200 200 Social Men Urban 150 Men Urban 150 Social 100k - 200k grade C Bucharest 250 Women Bucharest 250 Women 100k - 200k grade C Social 100 Urban Social 100 Social 200 Urban 200 grade AB Urban 50 200k+ grade AB 200k+ Urban 50 Social 30k-100k grade DE 30k-100k 0 150 Urban 150 Social grade DE Urban Social grade C 0 100k - 200k grade C 100k - 200k Urban Age 100 100 Urban Age 30k 4 - 11 Social 30k 4 - 11 Social Urban Urban 50 30k-100k 50 grade DE 30k-100k grade DE Age Age Age Age 65+ 12 - 17 0 0 65+ 12 - 17 Urban Age Urban Age Age Age 30k 4 - 11 30k 4 - 11 Age Age 55 - 64 18 - 24 55 - 64 18 - 24 Age Age Age Age 45 - 54 Age 25 - 34 Age Age Age Age 45 - 54 Age 25 - 34 35 - 44 65+ 12 - 17 65+ 12 - 17 35 - 44 Age Age Source: Kantar, Media Division, Copyright ARMA Age Age Source: Kantar, Media Division, Copyright ARMA 55 - 64 18 - 24 55 - 64 18 - 24 Age Age Age Age 45 - 54 Age 25 - 34 45 - 54 Age 25 - 34 A quite dynamic evolution in 35 - 44 35 - 44 profile was registered by some of Source: Kantar, Media Division, Copyright ARMA Source: Kantar, Media Division, Copyright ARMA the Women thematic channels. chart 21: Happy Channel Profile chart 22: TLC Profile (Urban Affinity Index) For example, Diva lost preference (Urban Affinity Index) in almost all younger age groups Men Men except 55+ y.o., while PRO 2 Bucharest 250 Women Bucharest 250 Women Urban Social Urban Social (Acasa TV) displayed a major 200k+ 200 grade AB 200k+ 200 grade AB Urban 150 Social Urban 150 Social preference increase among 100k - 200k grade C 100k - 200k grade C medium-low social status women 100 100 Social Urban Social Urban 50 (CDE social grades), loosing 30k-100k 50 grade DE 30k-100k grade DE significantly among women with 0 0 Urban Age Urban 30k Age high status (AB social grades), 4 - 11 30k 4 - 11 corelated with the significantly Age Age Age Age higher affinity in small urban 65+ 12 - 17 65+ 12 - 17 Age Age Age Age areas and lower in medium and 55 - 64 18 - 24 55 - 64 18 - 24 Age Age Age Age large urban. Happy Channel 45 - 54 Age 25 - 34 45 - 54 Age 25 - 34 35 - 44 35 - 44 managed to keep its qualitative Source: Kantar, Media Division, Copyright ARMA Source: Kantar, Media Division, Copyright ARMA profile, with a high affinity among younger women 18-44 y.o. with chart 23: Antena Stars Profile chart 24: TV Paprika Profile (Urban Affinity Index) high social status, while on the (Urban Affinity Index) Men Men other hand, TLC consolidated its Bucharest 250 Women Bucharest 250 Women Urban Social preference among women 45-64 200 grade AB Urban Social 200k+ 200k+ 200 grade AB y.o. with low and medium social Urban 150 Social Urban 150 100k - 200k grade C Social status, dropping affinity among 100 100k - 200k grade C 100 younger women with higher social Urban 50 Social Urban 30k-100k grade DE Social 30k-100k 50 grade DE status. Finally, Antena Star’s 0 0 audience profile was stable, with Urban Age 30k 4 - 11 Urban Age improved preference among high 30k 4 - 11 Age Age status women, while TV Paprika 65+ 12 - 17 Age Age 65+ 12 - 17 increased in preference among Age Age 55 - 64 18 - 24 Age Age male audience, consolidated its Age Age 55 - 64 18 - 24 45 - 54 Age 25 - 34 Age Age 35 - 44 45 - 54 Age 25 - 34 affinity in Bucharest and large 35 - 44 urban areas, and continued to Source: Kantar, Media Division, Copyright ARMA Source: Kantar, Media Division, Copyright ARMA reflect the highest affinity among 55+ y.o. age groups. 40 41 The most important Movies y.o. AXN projected an audience thematic channels, Pro Cinema, profile which tends to be more Paramount and Film Café, balanced among genders, but with reflected in 2019 a higher a female skew and a loyal viewer preference among male audience base in 45+ y.o. age groups with groups and high preference medium and high social status COVID-19 AND PERSPECTIVES FOR 2020 among active population 35-64 (ABC social grades).

2020 began with optimism In this imperturbable status quo, and good will, knowing and the new COVID paradigm was expecting, more or less, the same sliding in step by step, starting 2018 2019 inflation trend as in previous year, at the beginning of March, when chart 25: AXN Profile (Urban Affinity Index) chart 26: Pro Cinema Profile based on the same TV air time the TTV began to rise, first on the (Urban Affinity Index) consumption paradigm: lower news channels, then in the Prime- Men Men Bucharest 200 Women ratings, higher clutter, lower Time slot of the main stations Bucharest 250 Women Urban Social Social inventory sold, and an estimated breaking news broadcast. 200k+ 150 Urban 200 grade AB grade AB 200k+ net adverting revenue increase of Urban 150 Social 100k - 200k 100 Social Urban grade C grade C 2.5% by the end of the year. 100k - 200k 100 Urban 50 Social Social 30k-100k Urban 50 grade DE grade DE 30k-100k 0 0 Urban Age Urban 30k 4 - 11 Age 30k 4 - 11 chart 29: TTV Rating evolution by week in 2020 Age Age Age 65+ 12 - 17 Age TTV Rating weekly evolution 49,U - 06:00-26:00 65+ 12 - 17 25 Age Age Age Age 55 - 64 18 - 24 55 - 64 Age Age Age 18 - 24 45 - 54 Age 25 - 34 Age 20 45 - 54 Age 25 - 34 35 - 44 35 - 44 Source: Kantar, Media Division, Copyright ARMA Source: Kantar, Media Division, Copyright ARMA 15 chart 27: Film Cafe Profile chart 28: Paramount Profile (Urban Affinity Index) (Urban Affinity Index) 10 Men Men Bucharest 250 Women Bucharest 200 Women Urban Social Urban Social 5 200k+ 200 grade AB 200k+ 150 grade AB Urban 150 Urban Social 100k - 200k Social 100k - 200k grade C 100 grade C 0 100 w1 w2 w3 w4 w5 w6 w7 w8 w9 Urban Urban 50 w10 w11 w12 w13 w14 w15 w16 w17 w18 w19 w20 w21 w22 w23 w24 w25 w26 w27 w28 w29 w30 w31 w32 w33 w34 w35 w36 w37 w38 w39 w40 w41 w42 w43 w44 w45 w46 w47 w48 w49 w50 w51 w52 50 Social 30k-100k Social ttv 2019 ttv 2020 30k-100k grade DE grade DE Source: Kantar, Media Division, Copyright ARMA 0 0 Urban Age Age 30k Urban 4 - 11 30k 4 - 11

Age Age Age Age 65+ 12 - 17 65+ 12 - 17 Q1 ended as estimated: +4% in in the last week of March: TTV Age Age Age Age advertising incomes, and +3% in rating increased between 10% and 55 - 64 18 - 24 55 - 64 18 - 24 Age Age Age Age 45 - 54 Age 25 - 34 45 - 54 Age 25 - 34 GRP sold, though the first signs of 38% vs. last year, making a lot of 35 - 44 35 - 44 the COVID impact began appear room in the ad breaks. Source: Kantar, Media Division, Copyright ARMA Source: Kantar, Media Division, Copyright ARMA

42 43 Starting in April, the TV market increased by 14% in GRP sold: in is defined by COVID special April they represented 58% SOV offers/ discounts / back up sales from the whole TV market. policies, in a register more wisely and carefully, and not June is seen more optimistically, as aggressive as we could have as the lockdown has been relaxed expected. The deflation context and more clients are willing to and the previous 2009 crisis communicate. The clutter is experience taught us to challenge slowly coming back in Summer, a different, new approach - given the usual lower Ratings. deflations were implemented with moderation, mainly appealing to Initiative’s forecast for the TV premium surcharges downgrades Market in 2020 is 15% ad revenue and decreases of the seasonality decrease, reaching 261M Euro. indexes. This is based on a slight increase estimated for Q1 (+4%), followed Considering all these aspects, by strong decrease in Q2 (-34%) we estimate that April and May and Q3 (-20%), and partial finished in -35% ad revenues recovery in Q4 (-10%). evolution. Along with the mentions above, it is useful to Sponsorship is the most affected add that an important part of the segment, especially due to market decrease is also driven by cancelling major sports events, the fact that a significant part of such as EURO 2020 and the the long tail clients stopped the Olympic Games, and worsened communication due to different by the difficulties in continuing reasons such as slow speed of to film big talent shows. The only reaction in readjusting the TV TV Shows which survived the message to the new context lockdown or have delayed the or budget cuts. In April 2019, productions were Romanii au 17% of GRP sold inventory was talent, I Umor, Chefi la Cutite and represented by medium and small Te cunosc de undeva, broadcasted clients, which in 2020 stopped by PRO TV and Antena 1. X the communications. Besides, Factor is making a surprising top 20 advertisers in the market comeback this year, in autumn.

44 DIGITAL 45media

The number of active social media Evolution of Digital in Romania DIGITAL users has increased in 2019 by more than 9% versus 2018, adding Internet Penetration 321 million new users. By the end of the year, 4 out of every 5 online With 80% of total population aged 16-74 showed an increase of individuals were active on a social connected to the internet last 2.4% in 2019 versus the previous media network, while Facebook year, digital is on a growing year, according to the National International Stats still is the most popular platform trend in Romania. Internet Institute of Statistics / Eurostat. penetration for Romanian people worldwide. mediaThe presence of Digital in our lives is more and more significant every year, and 2020’s pandemic Global retail e-commerce sales has highlighted just how necessary amounted to 3.53 trillion US it can become. Even though there dollars last year, according to ≥ 71 to 78 is still a long way to go until Statista, with roughly three- ≥ 78 to 82 complete adoption of this media, quarters of the world’s internet ≥ 82 to 87 we were not totally unprepared users aged 16 to 64 buying when the World had to rely on ≥ 87 to 91 online connections to partially something online each month avoid economic and social and 52% of ecommerce consumers ≥ 91 to 96 negative impact of COVID-19: being more likely to purchase ≥ 96 4.54 billion people, nearly 60% through a mobile device. Data not available of the world’s population, were connected to the internet by the Worldwide digital ad spending end of 2019 (showing a growing trend of +7% versus 2018), with increased by 17%, making 2019 Europe and Northern America the first year when it accounted for having the highest internet almost half of all media market, penetration. while 2020 was estimated before the COVID-19 pandemic at nearly Mobile phones are also an 385 billion US dollars (an increase important part of the equation: of 15%). Mobile advertising was 5.19 billion people used them last year, that is 67% of total responsible for 190 billion (57% population, with user numbers up share), with an increase of 30.7 by 124 million over the previous billion US dollars versus previous year. year.

Internet penetration in Romania WW Digital advertising spend (billion USD) 100% 90% 450 77% 80% 384.96 80% 400 66% 70% 70% 333.25 62% 350 55% 59% 60% 283.35 300 50% 50% 225.4 44% 250 37% 40% 40% 190.2 200 159.5 30% 150 20% 100 10% 50 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0 2018 2019 2020 Source: Eurostat | Internet use by individuals aged 16 to 74 in the last 12 months - whether at home, at work or from Source: Statista All Mobile anywhere else and whether for private or work/business related purposes 46 47 There is a huge gap between grandparents in the age group of Internet connections by type (million) generations: while 95% of people 55-74 y.o. are only halfway there 25.0 aged 16-34 are already connected (55% in 2019, up from 51% in to the internet, their parents and 19.3 19.9 2018 - largest increase last year). 20.0 16.6 14.8 15.0 13.2 Internet usage by age groups Internet usage by education level 12.0 99% 99% 100% 97% 97% 9.6

100% 95% 94% 92% 89% 10.0 90% 84% 90% 88% 82% 7.1 85% 80% 74%

80% 77% 71% 4.6 4.9 5.3 72% 70% 3.8 4.0 4.1 4.3 70% 5.0 2.9 3.5 3.4 60% 60% 56% 51% 55%

51% 50% 50% 43% 3.1 40% 37% 2.5 40% 38% 0.0 34% 30% 30% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20% 20% Source: ANCOM Broadband fixed Mobile 10% 10% 0% 0% 16-34 y.o. 35-54 y.o. 55-74 y.o. Low Medium High 2016 2017 2018 2019 2016 2017 2018 2019 Devices Used to Access the Internet Source: INS | All 16-74 National, last 12 months Source: INS | All 16-74 National, last 12 months Smartphones are the most used when connecting to the internet, devices to go online by all age while tablet devices seem to be The education level also has quite lowest internet penetration, but groups, although the oldest less attractive for young people. a significant impact. Internet the highest YoY increase (56% in generation analyzed has a rather usage among University graduates 2019, up from 51% in previous close second favorite in desktops/ Nearly half of regular internet is almost 100%, while individuals year). laptops (52% use them, while users in Romania aged 16 to with low education have the 72% access the internet via 74 use more than one device to smartphones). connect to the internet, and it’s quite common for two or more Smart TVs and consoles are more people to use the same device – The difference between urban Internet usage in Urban vs. Rural likely to be chosen by 16-34 y.o. mostly when it comes to desktops (86%) and rural areas (72%) is 100% and laptops. 86% getting less dramatic, and so is 90% 86% 80%

80% 76% the difference between regions 72% 70% 66%

- internet usage is highest in 57% Devices used to access the internet

60% 53% 96% Bucharest-Ilfov (87%) and lowest 50% 100% 90% in the South-East (73%). This 40% 90% 30% 80% facilitates advertisers to run 72% 20% 70% national campaigns at a higher 10% 60% 55% 52% 52% scale. 0% 50% Urban Rural 40% 2016 2017 2018 2019 30% Source: INS | All 16-74 National, last 12 months 20% 10% 11% 13% 11% 10% 9% 5% 0% Internet Connections Smartphone Desktop or laptop Tablet device Smart TV or console 16-34 y.o. 35-54 y.o. 55-74 y.o. By the end of 2019, there were broadband fixed (29 GB) and Source: FOCUS CAPI IAN19-IAN20, National Weighted sample | All 16-74 Online Population 5.3 million broadband fixed mobile connections (3.7 GB), connections recorded in Romania the later showing an accelerated (+4% YoY). Luckily enough for increase versus previous year: Adoption of Digital Innovations the #WorkFromHome movement +41%. When looking at the rate of own a smartwatch or wristband, during 2020’s pandemic, 74% digital innovations adoption 8% own some form of smart of those allowed for high speed And, with 5G technology on in Romania, we see that 25% home device, 8% own some form internet traffic (over 100 Mbps). the horizon, 61% of all mobile of internet users aged 16 to 64 of cryptocurrency and 2% own a Monthly average traffic per connections in 2019 were 4G declare they use either voice virtual reality device. person increased in 2019 for both (+16% versus previous year). search or voice commands, 18% 48 49 BRAND DISCOVERY TOUCHPOINTS Online Shopping Ads on television 46% Search engines 41% E-comm Evolution in Romania Ads on websites 33% Direct mail or email 31% According to GPeC estimations, in 2019. The highest increase TV shows or films 31% the online shopping sector in in the average basket value was Brand or product websites 30% Romania exceeded the threshold registered in Electro - IT&C Ads in social media 30% of 4.3 billion euros at the end of vertical, followed by Fashion, Ads on public transport 29% 2019, up by 20-22% versus 2018. Children’s Items, Pet Shops, and The YoY growth rate was lower Books/Music/Film. 2018 was the Product brochures or catalogues 29% compared to 2018 vs. 2017, when first year when the number of Word-of-mouth recommendations 28% it was nearly 30%. However, total online purchases made on Mobile Source: GWI | 16-64 National Online Population spending is most likely higher exceeded the ones on Desktop, than 4.3 billion euros, considering and in 2019 the trend intensified: that the figure does not include 63.6% of sales were made on Online Privacy services such as plane tickets, hotel Mobile versus 36.4% on Desktop Privacy remains an important More than half of Romanian reservations, tickets to various devices. Mobile surpassed Desktop issue for internet users in online population aged 16 to 64 events, or payment of utility bills, last year also in terms of total sales Romania, 70% of them expressing declare deleting cookies from the acquisitions that are easily made value. However, the number of concerns about how companies web browsers they use, and the online. people who make online purchases use their data - versus a worldwide percentage is almost the same for via Mobile devices is smaller than people who declare using some The average value of online average of 64%. the number of people purchasing form of ad-blocking tool. transactions increased significantly via desktops or laptops. in 2019 versus 2018, for both purchases made on Desktop and But Romanian e-commerce still Mobile. On average, Romanians has a lot of room for growth. spent last year 273 lei for purchases According to Eurostat, only 23% of Online Consumers made on Desktop devices, Romania’s population aged 16 to Top Google Search Queries compared to 204 lei in 2018. A 74 made online shopping last year, Consumer interest trends considerable increase is seen also which places us on the second to # Search Query Index Google Search data can reveal 1 FACEBOOK 100 for purchases made on Mobile last place in the European Union, 2 VREMEA 76 - from 170 lei in 2018, to 208 lei ahead of Bulgaria. precious information about the 3 GOOGLE 67 consumers’ media consumption 4 TRANSLATE 60 5 METEO 57 habits and let us better 6 FILME 53 understand what’s piquing the 7 YOUTUBE 53 consumers’ interest - the higher 8 OLX 43 9 YAHOO 39 Brand Discovery the volume of Google searches 10 MAIL 32 for a topic, event or person, the 11 EMAG 31 In today’s cluttered media discovery, with 41% of Romanian higher the interest. 12 GOOGLE TRANSLATE 30 landscape, it’s highly important internet users aged 16 to 64 citing 13 ȘTIRI 29 to understand the ways in which search engines as a main way 14 MAIL YAHOO 27 Google also rounded up the year 15 SPORT 19 consumers discover new brands, they find out about new brands. in search trends and revealed the 16 FLASHSCORE 18 products and services. Search This is particularly powerful for 17 DEDEMAN 18 fastest-rising search terms people seems to have blurred the line smaller brands and brands in new 18 TRADUCERE 17 19 LOTO 16 between brand research and categories. googled in 2019. For Romania, the list is led by “eMag black friday” - 20 BMW 16 Source: Google Trends

50 51 a comboWomen betweenLifestyle the biggest local Europe’s fastest growing fashion Social Media e-comm and the most expected online shop, “About You”. shopping event of the year, the The total number of active social all Facebook users in Romania death of fashion designer “Razvan Here’s a closer look at what media users in Romania reached accessed the platform via mobile Ciobanu”, and the launch of Romanians googled in 2019, by 11 million by the end of 2019, devices in 2019 (97.6%), while category: adding more than half a million access via Desktop was a far less Popular searches Smartphones Movies users versus the previous year. popular choice (only 28.5% of users). 1 eMag black friday 1 iPhone 11 1 Aquaman Of those, marketers were able to 2 Răzvan Ciobanu 2 Samsung S10 2 Avengers endgame reach on Facebook using adverts 3 About You 3 Samsung A10 3 Oh Ramona 4 Rezultate alegeri europarlamentare 4 Huawei P30 Pro 4 Captain Marvel around 9.8 million people. According to Facebook, a typical 5 Cameron Boyce 5 Huawei P30 Lite 5 Bird box user liked around 21 posts per Sports events What is.. Lyrics Facebook is the most accessed month at the end of 2019, made 1 România - Suedia 1 Ce este meningita 1 Prohodul social media platform in Romania 8 comments, shared 2 posts and 2 Wimbledon 2 Ce este orca 2 Tones and I - Dance monkey clicked on 24 Facebook ads. 3 România - Spania 3 Ce este verbul 3 5Gang - SOS for all age groups, with 61% of 4 Campionatul European de Fotbal U21 4 Ce este difteria 4 florianrus, MIRA - Strazile din Bucuresti the online population aged 16 5 România - France U21 5 Ce este fanesca 5 Elena - Luna alba to 74 being daily users. Almost Instagram’s usage is higher for 16- Diets Recipes How to 34 y.o. versus older generations, 1 Dieta Cambridge 1 Socată rețetă tradițională 1 Cum se calculează aria cercului and this is also true for Snapchat 2 Dieta oloproteică 2 Clătite rețetă originală 2 Cum se manifestă gripa 3 Dieta rina detaliată 3 Cozonac rețetă Jamila 3 Cum se votează & Pinterest, while LinkedIN 4 Dieta keto 4 Varză murată rețetă 4 Cum se calculează media seems to be accessed primarily 5 Dieta nalep 5 Pancakes rețetă 5 Cum se fac urzicile when searching for a new job. Video Consumption

The young generation (16-34 time spent, but YouTube is finding y.o.) consumes more YouTube its way into their routines. Social Media Usage

and video on demand such as 100% Overall consumption on main Daily Netflix and HBO Go than older 80% Weekly generations, but TV is still video touchpoints during the 70% weekend for all age groups of Monthly perceived as a main media for 60% online population is slightly video content. For the 55-74 y.o. 50% lower, but those who choose to age group, TV is the detached remain in front of the screens 40% winner for both penetration and spend more time watching. 30% 20%

10% 55-74 y.o. 0% 16-34 y.o. 35-54 y.o. Facebook Instagram Linkedin Pinterest Snapchat Twitter 100% 100% 100% Source: FOCUS CAPI IAN19-IAN20, National Weighted 90% 90% 90% 80% 80% 80% sample | All 16-74 Online Population 70% 70% 70% 60% 60% 60% 50% 50% 50% 40% 40% 40% 30% 30% 30% 20% 20% 20% 10% 10% 10% 0% 0% 0%

VOD VOD VOD VOD VOD VOD YouTube YouTube YouTube YouTube YouTube YouTube (weekend) (weekend) (weekend) TV (weekday)TV (weekend) (weekday) (weekday) (weekend) TV (weekday)TV (weekend) (weekday) (weekday) (weekend) TV (weekday)TV (weekend) (weekday) (weekday) (weekend)

Source: FOCUS CAPI IAN19-IAN20, National Weighted sample | All 16-74 Online Population < 1h 1-3h 3h+

52 53 59% of internet users in Romania use even more. However, almost Mobile aged 16 to 74 have downloaded a third of 55-74 y.o. generation and actively use between 1 and declare they still don’t use any Welcome 5G 10 mobile apps, and 14% of them mobile apps. The evolution of mobile networks mobile and change the way people Activities on mobile has been constant since they first live and work. With loading Use messenger app 82% launched, some 40 years ago. 5G times up to 20x faster than its Take pictures 80% is the 5th and latest generation predecessor, this is the first G that Access social media 74% of mobile connections, and it’s seems to be designed for both Send text messages 74% expected to disrupt our use of people and things. Online Video & Online Audio 69% Use email 68% Access news sites 67% Download apps 61% Use GPS 61% Access other sites 60% Access newspapers & magazines sites 56% Play games 53% Make VOIP calls 45% Order online 36% Pay online 35% Mobile voice calls on large SMS on feature mobile Apps and data on HD video streaming and gig Enhanced user experiences Use mobile banking size portable phones phones connected mobile phones economy on smartphones and Internet of Things 34% ˜1980 ˜1990 ˜2000 ˜2010 ˜2020 Read e-books 28% Scan QR codes 19% By taking connectivity to the next immersive media and live event Use electronic cards 16% level, 5G has the potential to bring experiences – are only a few ways 2019 2018 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% about a paradigm shift in terms in which brands will be able to Source: FOCUS CAPI IAN19-IAN20, National Weighted sample | All 16-74 Online Population of digital user experience. An tell their story in a more creative increase in augmented reality and and interactive manner. Also, virtual reality, video streaming on mobile broadband can improve mobile at high resolutions with connectivity for rural audiences, no lag, highly personalized ads that were harder to reach until Communication Apps based on artificial intelligence, now. With nearly 80% of internet users the challenger, and both can be of aged 16 to 74 communicating with help to advertisers, either through friends and family on Facebook ads (Facebook Messenger only) or Mobile Operating Systems Messenger, it has become the by allowing businesses to connect go-to communication app in with consumers via business In Romania, Android devices are Apple’s iOS is losing popularity, Romania. Facebook’s second big profiles. predominant: 81.6% of web traffic with a share of only 17.6% of web messaging app - WhatsApp - is originates from them, and the traffic in 2019, down by 6.3% YoY evolution is positive (+2.1%). versus previous year. Facebook Messenger Whatsapp Skype 100% 100% 100% 80% 80% 80% Mobile Apps 60% 60% 60% 40% 40% 40% The Romanian online consumer search engines on any topic that 20% 20% 20% enjoys instant access to everything: comes to mind. Instant messaging 0% 0% 0% news, entertainment and friends’ tools are more popular than ever, 16-34 y.o. 35-54 y.o. 55-74 y.o. 16-34 y.o. 35-54 y.o. 55-74 y.o. 16-34 y.o. 35-54 y.o. 55-74 y.o. updates from social media, video while online banking is rising Daily Weekly Monthly content and quick responses from slowly but steadily. Source: FOCUS CAPI IAN19-IAN20, National Weighted sample | All 16-74 Online Population 54 55 tool, that allows advertisers to reach new prospects who behave similarly to the users who were already targeted.

Regarding formats, as part of an ad campaign, advertisers can now attach a form to generate leads via Lead Form (collect leads directly from ad), or use International Platforms Updates Gallery Ads (like Facebook carousel).

Facebook & Instagram Ads YouTube ads benefited from TrueView for action (designed to improve conversions) and a new buying In 2019, Facebook pushed From a setup perspective, Ad model for Masthead (YouTube homepage format) by automatic placements as a best Preview was designed to help CPM instead of cost per day rate. practice in order to increase visualize how the ad looks in efficiency, but news feed remained every placement (through the best performing placement for side-by-side previews). Facebook any KPI. also released new account level Adform A major update regards mobile learning phase insights in news feed ads, by simplifying Ads Manager to help ensure Adform continued to develop the served ads, which confirms the the user experience on Facebook the account is not exhibiting platform by offering new targeting general trend. In terms of formats, and making it consistent across behaviors that prevent ad sets options (such as automated 67.74% were display ads, and the Facebook and Instagram. from exiting the learning phase. audiences based on client master rest video (mainly instream with data) and new rich media formats 25.76%), and zero campaigns on (especially on mobile). For 2019 audio (which will most probable in Romania they reported an be one of the “new to test” for Google Ads almost 70% mobile share of total 2020 and next years). In 2019, the major update from to this announcement, the only Google is without a doubt the close variants that were able to launching of Shopping ads, which trigger a phrase match or broad Mobile/Desktop split Adform 2019 Formats Share Adform 2019 in contrast with text ads show match modifier keyword were plurals and misspellings. 100% users a product photo, plus a title, 90% 6.49% price, store name, and more. This 80% new kind of exposure had a great Other Search related news are 70% affinity audiences and seasonal 60% 25.76% impact in leads quality (users are event segments for in-market 50% already better informed just by audiences that allow advertisers to 40% 67.74% 30% seeing the ad) and also in regular refine search campaigns and focus search ads, which decreased in 20% on the prospects who are truly 10% potential inventory (now shared 0% interested in the products/services Q1 Q2 Q3 Q4 Display Instream with Shopping Ads). they promote, or on consumers Mobile Desktop Outstream who are actively researching Google announced in 2019 quite products/services in preparation a few changes dedicated to Search for specific occasions. campaigns. Phrase match and broad match modifier keywords Probably the most interesting DV360 became eligible to show for same- Google announcement of 2019 As usual, Google made different type (which clearly delimits app meaning close variants such as related to Display ads was the new updates also for DV360 (Google’s ads from the desktop/classic synonyms and paraphrases. Prior audience expansion programmatic platform) on mobile) or placement targeting different areas such as display option for TrueView (allowing forecasting (enabling Reach to select specific content such and Avg. CPM estimation for as tutorials/”how to”, reviews or a plan), mobile app line item popular channels). 56 57 Local Online Publishers Project Agora BRAT

Project Agora is a Programmatic than 120% vs. 2018, reaching a BRAT provides the only results and advanced methods for online platform – SSP/PMP/Marketplace, monthly average of 680 million. recognized by the industry measurement. with premium Romanian portals The strategic exclusive partnership regarding the traffic and audience and representing Taboola in with the biggest native advertising results for the online properties, Romania. For Project Agora, 2019 SATI currently measures more was a year of confirmation and platform, Taboola, was renewed, through the SATI study. The than 200 websites, including growth. while new exclusive formats were hybrid methods used for traffic video/audio streaming and mobile made available in the Romanian measurement, websites audience apps measurement. Starting with In Romania, the number of market: Social Cards, Magic Flip and visitors’ profile are compliant 2017, SATI publishes real time websites onboarded grew by and Magic Quiz. Also, video with international guidelines results, both for traffic and users’ 10% reaching over 180, while became available on a CPCV (cost regarding traffic measurement, profile (gender, age, income, social impressions managed grew more per completed view) buying model. also following the most recent grade etc.).

TOP 20 SITES IN DECEMBER 2019 (MONTHLY UNIQUE USERS) olx.ro 10.0 adevarul.ro 8.6 Gameloft libertatea.ro 7.6 digi24.ro 7.3 In late 2019 and early 2020, With innovation as the only a1.ro 6.3 Gameloft launched a few new constant in the mobile gaming stirileprotv.ro 6.0 playtech.ro 5.2 games, such as Lego Legacy, sector, Gameloft keeps developing cancan.ro 5.2 Overdrive City, Disney Getaway technologies that help improve b1.ro 4.2 Blast, The Love Boat - Puzzle the connection between the brand fanatik.ro 4.2 Cruise or Disney Princess and the consumer in the long run. observatornews.ro 4.0 antena3.ro 3.8 Majestic Quest, while the number Such examples are the DOOH capital.ro 3.8 of app installs for Asphalt 9 “Gamification” component stiripesurse.ro 3.7 Legends had rapidly increased, included in the mix or the new digisport.ro 3.7 already reaching approximately formats that allow brands to csid.ro 3.6 evz.ro 3.6 150k monthly active users in plan 360° campaigns: in-game, romaniatv.net 3.4 Romania. Asphalt 9 Legends web (Mobile & Desktop), in-app gsp.ro 3.3 is the successor of Asphalt 8: (brand’s app), digital out of home, unica.ro 3.2 Airborne - the licensed racing social media or even esports and 0 2 4 6 8 10 12 Source: BRAT, SATI | Dec 2019 game with the largest number other live events. Millions of downloads worldwide, 400 million. According to MOAT data, their SATI data by socio-demographic News and strong presence of both viewability rate is 92.6% for profiles (average monthly number young and middle-aged segments. Gameloft also expanded its display ads and 98.6% for video of visitors for 2019) show wide The News & Analysis category inventory in 2019 through ads (source: MOAT benchmark partnerships with Rovio (Angry Q1 2019, IN app view rate). All of variations – as can be expected. shows a profile similar to General Birds series), Outfit 7 (My Talking Gameloft’s games are developed News are by far the most popular News, but skewed towards Tom, My Talking Angela), and according to COPPA & GDPR type of monitored content, with middle-aged, rather than young, Etermax. policies. a total reach of 5M for General and with a lower reach, of 4.4M.

58 59 Women Lifestyle Classifieds Women Lifestyle Classifieds Age 16-34 Age 16-34 Age 16-34 Age 16-34 Gender Male 2.0 Age 35-54 Gender Male 2.0 Age 35-54 Gender Male 2.0 Age 35-54 Gender Male 1.52.0 Age 35-54 1.0 1.01.5 1.0 0.51.0 Gender Gender 0.0 Millions Age 55-74 0.00.5 Age 55-74 FemaleGender FemaleGender 0.0 Millions Age 55-74 0.0 Millions Age 55-74 Female Female Millions ESOMAR ESOMAR ESOMAR ESOMAR social ESOMARsocial socialESOMAR grade socialESOMAR grade ESOMARgrade DE social gradesocial AB ESOMAR ESOMAR social socialDE grade socialAB grade grade DE grade AB socialESOMAR grade C ESOMARgrade socialC DE AB social grade C grade C

General News News & Analysis Auto & Moto Economy & Finance Auto & Moto Age 16-34 Age 16-34 Age 16-34 Economy & Finance Age 16-34 Gender Gender Age 16-34 Age 35-54 Age 35-54 Gender Male Age 35-54 Age 16-34 Male 2.0 Male 2.0 2.0 Gender Male 2.0 Age 35-54 Gender Male Age 35-54 2.0 Gender Male 2.0 Age 35-54 1.0 1.0 1.0 1.0 1.0 Gender Millions Gender Gender Gender 1.0 0.0 Age 55-74 0.0 Millions Age 55-74 0.0 Age 55-74 0.0 Age 55-74 Female Female FemaleGender Millions FemaleGender Millions 0.0 Age 55-74 0.0 Age 55-74 Female Millions Female Millions ESOMAR ESOMAR ESOMAR ESOMAR ESOMAR ESOMAR ESOMAR ESOMAR social grade social grade social grade social grade socialESOMAR grade socialESOMAR grade socialESOMAR grade socialESOMAR grade ESOMAR ESOMAR ESOMAR DE AB DE AB socialDE grade socialAB grade socialDE grade ESOMAR socialAB grade social grade C social grade C socialESOMAR grade C DE AB DE socialESOMAR grade C AB social grade C social grade C Besides natural preferences – The youngest audiences are Entertainment Health & Personal Care Sport and Auto & Moto for men, attracted by Classifieds and Entertainment Health & Personal Care Celebrity & Entertainment and Auto & Moto, while the oldest Age 16-34 Age 16-34 Age 16-34 Age 16-34 dedicated Lifestyle for women – ones – by Sport and Economy & Gender Male 2.0 Age 35-54 Gender Male 2.0 Age 35-54 Gender Male 2.0 Age 35-54 Gender Male 2.0 Age 35-54 we can see a balanced readership Finance. The latter also attracts 1.0 1.0 for business content and slightly Gender 1.0 Gender 1.0 the most socially affluent, not far 0.0 Millions Age 55-74 0.0 Age 55-74 FemaleGender FemaleGender Millions male-skewed for Classifieds. from Health & Personal Care, as 0.0 Millions Age 55-74 0.0 Age 55-74 Female Female Millions well as Sport. ESOMAR ESOMAR ESOMAR ESOMAR socialESOMAR grade socialESOMAR grade socialESOMAR grade socialESOMAR grade socialDE grade ESOMAR socialAB grade socialDE grade ESOMAR socialAB grade Sport Celebrity & Entertainment DE socialESOMAR grade C AB DE socialESOMAR grade C AB social grade C social grade C Age 16-34 Gender Age 16-34 Age 35-54 Gender Male 2.0 Age 35-54 Male 2.0

1.0 1.0 Gender Millions Gender SATI PMC (Consent management platform) 0.0 Age 55-74 0.0 Age 55-74 Female Female Millions Starting with June 2019, local BRAT manages the general setup ESOMAR ESOMAR ESOMAR ESOMAR publishers decided to build a of the consent platform and offers social grade social grade ESOMAR social social standardized and professional all the needed functionalities in DE AB grade DE ESOMAR grade AB social grade C social grade C consent management platform, order to meet GDPR regulation. available to anyone in the market After collecting feedback from which is operating with online the online industry, BRAT has Women Lifestyle Classifieds user’s data (publishers, advertisers created a Recommended setup for etc.). the CMP – which was submitted Age 16-34 Age 16-34 for approval to the local National The objective was to have a Gender Male 2.0 Age 35-54 Gender Male 2.0 Age 35-54 Data Protection Authority common way of managing users 1.5 (ANSPDCP). This process is 1.0 1.0 consent regarding, meeting all 0.5 expected to be finalized by July- Gender Gender Age 55-74 legal requirements regulations, 0.0 Millions Age 55-74 0.0 August 2020. Female Female Millions from all perspectives: ESOMAR • same way of asking for consent ESOMAR social ESOMAR ESOMAR social • same way of managing the social grade social grade grade DE grade AB ESOMAR ESOMAR social DE AB consent social grade C grade C • same way of implementing CMP across all websites

Auto & Moto Economy & Finance Age 16-34 Age 16-34 60 Gender Male Age 35-54 61 2.0 Gender Male 2.0 Age 35-54

1.0 1.0 Gender Gender 0.0 Age 55-74 0.0 Age 55-74 Female Millions Female Millions

ESOMAR ESOMAR ESOMAR ESOMAR social grade social grade social grade social grade ESOMAR DE AB DE ESOMAR AB social grade C social grade C

Entertainment Health & Personal Care Age 16-34 Age 16-34 Gender Male 2.0 Age 35-54 Gender Male 2.0 Age 35-54

1.0 1.0 Gender Gender 0.0 Millions Age 55-74 0.0 Age 55-74 Female Female Millions

ESOMAR ESOMAR ESOMAR ESOMAR social grade social grade social grade social grade DE ESOMAR AB DE ESOMAR AB social grade C social grade C Pro TV ARBOmedia IBU Pro TV maintained the with dedicated video content for In 2019 the format mix included 91% embedded display, 6% video display, same sites in their portfolio in various events, such as Concert and 3% branded content (advertorial), with a desktop/mobile split of 56% 2019. Their first exclusive digital Cosmos Irina Rimes – live vs. 44%. Video and grooveskin formats had viewability rates of up to 83% show Viata bate vlogul had 5.5 streamed exclusively on protvplus. and 0.8%-1.1% CTRs. million video views and it’s ro, SummerWell or Electric Castle still considered a success by the festivals. young segment (16-24 y.o) in 2020. Another successful project The best performing formats were InternetCorp of 2019 is Trending Review cu video instream, video outstream, Internet Corp increased their Through the new partnership Daragiu, with over 9 million video grooveskin and box (300x250), portfolio in 2019 with evz. with Starea Natiei (by Dragos views. Last year, Pro developed while the split between mobile ro, capital.ro, doctorulzilei. Patraru), they opened inclusively and implemented special projects and desktop was clearly in favor of ro, animalzoo.ro, infoactual.ro, podcasts ads option (together with the first: 80% versus 20%. newmoney.ro and eurosport.ro. site, app, social media and blog, special projects including cross TV-Online). Antena Digital Antena became a leader we can see an increase in using Charge Ads Parenting Ads in the cooking websites category, special formats such as sliding Newsroom (a part of Charge By adding new parenting vloggers by adding bucataras.ro, culinar.ro, doors & take over. Ads, specialized in native to the portfolio, Parenting Ads gustos.ro, and reteteculinare.ro to advertising) launched in 2019 is bringing the focus on video its portfolio. Mobile dominated the devices two new formats, branded stories content. In terms of formats, the Digital Antena maintained their share, reaching nearly 80% of and genius, and stories became use of interscroller for display TV-Online special projects and exposure. an instant favorite – the second ads was higher in 2019 versus most used format of the year previous year, and the interest after native. The benchmark for dedicated content and special CTR for all devices was 0.5-0.8%, formats increased. and the viewability was 70-85% Think Digital for campaigns managed and Parenting Ads reported for 2019 monitored by Newsroom. an average CTR of 0.2% and 60- Think Digital increased its share, we find that 300x250 70% Viewability, with nearly 90% portfolio in 2019 with copilul.ro, format generated almost 50% Mobile respected the general of exposure being on mobile. pieseauto.ro, 4tunning.ro, doc.ro, of impressions, followed by trend and had a higher impression Also, their offline events became and euronews.com, and continued interscroller with 25.0% (custom share. in March 2020 digital activations with ziaristii.ro, newsweek. mobile format) and 970x250 with via live streaming. ro, demamici.ro, edupedu.ro, 10.1%. educatieprivata.ro, wesport.ro and revistabiz.ro in the beginning of The scroll reveal format was a 2020, while Mediafax websites positive surprise in 2019, with Average CTR in Romania left. a viewability rate of 67%, but 300x250 mobile and interscroller Even if it varies from many sticky, brought the highest CTR formats had the best viewability perspectives (creative, industries, of all display formats: 0.51%. Think Digital reports a bigger rates, over 80%. In terms of CTR, placements, even days and hours), Older formats such as leaderboard share of Mobile ads in 2019, inread and interscroller were best average CTR per country can offer and sky performed worse (they with 67.1% vs. 32.9% desktop. performers, with CTRs of over some insights, the major one for will probably vanish entirely in When looking at the formats 1.5%. 2019 being that it’s not necessary the next few years), while squares to be big in order to be... BIG! (300x250 and 336x280) were in the top, followed by wide sky The 320x100 mobile format, (300x600) and another small which in some cases is served as format (320x50). 62 63 CTR by format for Romania, 2019 The yearly trend in our past in Romania, and 74% of total estimations is confirmed by the spending on social and search ads. Our reports have focused, 970x250 300x250 ROADS study, made by IAB 0.19% 0.22% Romania and PWC Romania historically, on major advertisers, as a tool for tracking digital ad whose digital spending we 728x90 spending by industry and format, estimated at around 100M Euro, 0.09% providing a detailed analysis for the last year. We believe that 300x600 120x600 of the digital media market. It adding the “long tail” of SMEs, 320x100 0.51% 0.05% 0.18% 336x280 should be noted that IAB figures mostly active on Google and 0.25% Facebook platforms, would take 320x50 0.16% for yearly digital spending have usually been lower than Initiative the total to around 300M Euro. estimates, but the trend is similar. This is below an estimation by Statista, which puts the Romanian Generally, the digital ad sector digital market just above 400M Digital Media AdSpend is very attractive for SMEs. Euro. But it should be noted According to IAB statements, that Statista uses a methodology 2019 maintained an increase display reached 17M Euro (-13%). these smaller players represent based on macro data, rather than of online advertising budgets, Programmatic (excluding Google 72% of total digital spending advertising market dynamics. with an estimated +17% versus tools) maintained an increase of previous year. Google and +31%. Facebook kept their leading *Note: versus previous MFB positions with a combined editions, advertising on Yahoo is market share of 75%, while local included in programmatic. COVID-19 and perspectives for 2020 RO Digital Ad spend (’000 Euro) 120,000 In the current context, IAB a significant recovery in Q4. Also, 99,074 Europe estimates decreases for Video is expected to have a faster 100,000 all formats in 2020, but with a recovery, growing by 7.3% in Q4, 84,761 smaller influence on Social and after losing 26% in Q2, and 12.7% 80,000 73,337 64,414 Search – which are expected to get in Q3 respectively. 60,000 57,407 46,206 51,266 41,253 40,000

20,000 Europe: Digital AdSpend by Format 2020 (forecast) - 20% 2012 2013 2014 2015 2016 2017 2018 2019 Source: Initiative 11.8% 9.3% 7.7% 10% 7.0% 4.3% 2.0% 2.0% 0.2% Budget Split - Platforms ('000 Euro) 0% 120,000 -1.7% -10% -4.0% 100,000 -9.0% -7.7% -8.7% -9.3% 7% -11.7% -12.9% -12.7% -20% 80,000 7% 23% -19.0% 6% 18% -25.0% 5% 14% -30% -25.0% 60,000 5% 11% 5% 8% -27.0% -29.8% 4% 5% 7% 40,000 6% 52% 52% 5% 48% 51% 52% -40% 37% 41% 45% -43.8% 20,000 -50% -45.7% 53% 48% 43% 39% 33% 28% 24% 18% Social Search Video Banner Display Classifieds Other media - & Directories 2012 2013 2014 2015 2016 2017 2018 2019 Source: Initiative Local Display Google FB Programatic Source: IAB Europe Q1 Q2 Q3 Q4

64 65 For the Romanian digital market, the most important variables will an overall decrease of 7% is be the population’s consumption/ estimated, mainly driven by local buying behavior, which will display, especially if we only depend deeply on their buying consider big advertisers. We are power (most likely decreased), keeping an optimistic expectation mood (more careful) and, of course, regulations that can that Q4 will drive a recovery of temporarily stop any activity at the loss from first quarters. any time.

This will be sustained mainly by Meanwhile, in the beginning platforms capabilities to deliver of 2020, at European level, positive results at scale, people some major industries who experimented more and more have grown their ad spend digital services (from media to significantly: Healthcare, almost any service) – a new habit FMCG, Entertainment, Retail, that will last for a long time, and IT and Telecom - an indication of course, by companies opening of different impact of pandemic their arms towards digital. depending on sector. There are various scenarios taken Recovery may be tougher for into consideration for 2020, but small advertisers.

Industries that have increased ad spending in Jan - 10 April 2020 (YoY) 42%

35% 35%

23% 22% 17%

Healthcare FMCG & Consumer Entertainment Retail Computing Products Telecommunication products & Electronics Source: IAB Europe

While major marketers can get In the longer term, this could be a back online quickly (with debt point of inflexion for the way we financing or cash reserves), SMEs work, triggering a switch (back) don’t have the same resources. towards home, away from business This leads to an increased centers. For digital media and medium-long term risk of a online businesses, this can mean a downturn if SMEs collapse, new set of rules in reaching people making government stimulus – from content consumption to critical. device usage, time bands and reactions to online stimuli.

66 67 OVERVIEW

Following the trend of the last of the new OOH norms. Just past 3 years, 2019 added another as a reminder, the OOH Law 5% growth in overall OOH draws a new background for the market reaching an estimated net industry, setting new rules, limits investment of 32 M. Euro. and imposing strict standards. Among them, the off-limits areas Although in 2018, the OOH where outdoor advertising is still Company of the City Hall possible, the specific types and approved the Implementation sizes of supports that can be used, Norms necessary for OOH law and the exceptions from the rules. enforcement in Bucharest, there were no major changes and Last, but not least, the OOH Law business pursued its organic requires that panels are installed growth in standard and temporary in public places only after a public big formats. 2019 also had a busy auction has been conducted, electoral calendar with European which puts almost every OOH and Presidential elections. All the advertising structure currently Retailers maintain an undisputed Some data was brought to our above delayed the implementation situated in Bucharest public areas first position in OOH communi- attention before the official outside the new legislation. cation, followed by pharma, banks information: and gambling advertisers. 1. the average time spent Boosted by an ever-growing outdoors amounts to: market, the clutter continued BRAT continued its traffic - 169 minutes/week to accumulate, and advertisers tracking study for 11 main cities: - 175 minutes / weekend reached for new innovative Bucharest, Cluj, Timisoara, - Avg 171 minutes from ways to communicate through Constanta, Craiova, Brasov, Monday to Sunday oversized 3D, interactive special Ploiesti, Bacau, Sibiu, Oradea and 2. the top 3 cities for spending projects. Continuing the 2018 Iasi. time outdoor are Craiova, trend, the standard formats Constanta and Bucharest. in Bucharest capped prices at The research is structured in 3 maximum 5% inflation but stages: 3. on average, a person travels charged up to 25% more for - The mobility study – 10k 14,5 kilometers in weekdays special projects media costs. On questionnaires and 13,2 kilometers in the other hand, standard locations - An inventory of the eligible weekends. The longest daily went up to 30% in cities such locations – there are 14,115 distances are covered in Constanta, Bucharest and as Craiova, Arad, Braila and units Timisoara. others, the main reason being the - Data modeling implementation of the OOH law The study has reached its third Everything previously mentioned and local norms. Metrorex kept on stage, and Cuende Infometrics is is going to be complementary to increasing media fees, reaching an expected to deliver the first results the current OOH Monitoring unprecedented 40% inflation. in 2020. System.

68 69 Outdoor ads INdoor ads

Brand Management remains There was no major auction, Share of Market - Formats the main player in the indoor which allowed the OOH players and in-store categories. to consolidate their existing There were no significant positions in the market and focus billboard 19% city light / changes within the indoor on services and sale policies. bus-shelter campaigns investors ranking, Digital Outdoor 14% the highest budgets continued We are expecting another Other format roll-over to come from Banking, followed As expected, Phoenix Media Metrorex auction in 2020 to 22% mesh closely by FMCG, Automotive, remains the market leader, being nominate the suppliers that are prism unipole Entertainment, Airlines and the only Romanian DOOH backlight going operate the subway train 45% flag supplier able to deliver audience special project Fashion industries. fleet. 22% related data, handling an Indoor ads in office buildings integrated service platform which Same as in past years, although continued to be a part of the main allows its clients to manage their Source: Initiative Euromedia succeeded in indoor segment. The main players campaigns in real time conducting negotiating competitive sale are Elevate and Invent Media. Real Time Biddings. Recently OOH players continued to build packages, in Bucharest transit The largest budgets were allocated automatic monitoring was made up their Bucharest and national media contracts can still be signed by Banking, FMCG, Automotive, available for the Bucharest networks, the most dynamic ones directly with STB (RATB), the Airlines and Pharma. locations. public transport company. being Euromedia and New Age Advertising. Info Sanatate is the only niche In 2017, Media Advertising and The 2019 estimated market player providing Digital Signage Vision Media Plus continued to In terms of format types, network shares for the main vendors are: TV Analytics, the first frequency operate in the Digital outdoor development was concentrated Euromedia & Affichage Romania study for indoor advertising segment with their existing mostly on backlit, the dominant (45%), Getica (10%) with a implemented in our country. The support networks. format in the local outdoor significant fragmentation (45%) study was conducted by GBD industry, with an estimated 45% within smaller providers. Research and is endorsed by Euromedia and New Age of the locations, followed by organizations such as ARMA & Advertising entered the DOOH billboards with 19% and city lights ARIA. market breaking the ground with / bus-shelters with 14%. The rest new competitive formats. Share of Market - vendors of 22% mostly consist in roll-overs, meshes, prisms, unipoles, flags and Digital Indoor is using plasma special projects. displays distributed across networks in crowded places. Blitz TV maintained its contract with Others Metrorex for the subway LCD 37% Euromedia & Affichage network. 45%

8% 10% New Age Getica

Source: Initiative

70 71 COVID-19 and perspectives for 2020

As the quarantine was enforced, an average 20% only up to August car traffic in Bucharest decreased or September, when everybody only by 20%, with rare spikes expects to make a better educated up to 35% in some occasions, assessment of the situation. according to traffic reports by Phoenix Media. However, We are expecting a reasonable pedestrian traffic almost came to boost starting with 15th of a standstill. Although downtown May, which marks the end traffic decreased, the residential of quarantine, but we remain areas maintained steady numbers. cautiously moderate in expressing any optimism for the near future. Nevertheless, OOH budgets were slashed. Although business as we knew it has changed and is not likely to Some budgets were completely be the same any time sooner, some removed by advertisers such as development plans for the OOH Coca-Cola, who chose to donate market, previously announced, the entire local advertising may still come true. budget to the US fight against COVID-19. Others announced a Metrorex had announced a new temporary 3 months hold, or just auction for the subway train fleet. slashed between 20% to 40% of It is expected to be postponed their spending plans. until new data is available.

Most advertisers continued OOH Phoenix Media reaffirmed their communication, adapting their commitment to increasing their messaging to the new reality. network by 50%, mostly new Suppliers such as Euromedia, locations being placed in the main Phoenix Media and New Age cities around the country. Advertising supported them with free media space for humanitarian Euromedia is expected to and educative campaigns, maintain a steady growth for their increasing awareness about the new DOOH network. risks which come from exposure to this virus. The overall COVID-19 impact on the 2020 OOH market is expected As of mid-May 2020, the prices to reach -30% in spending, with were temporarily dropped with an estimated total of 22 M.Euro.

72 73 • Radio ZU – 8 DJ’s were on air the portfolio to 10 cities, by 24/7supporting the 4th edition adding Craiova license. OVERVIEW of the Orasul faptelor bune - • Radio Guerrilla: extended social campaign in Oradea its coverage in Cluj-Napoca during the pre-Christmas (using the radio frequency of 2019 proved to be a fruitful year • Rock FM – Morning Glory week, an event meant to make for the Radio industry, as the cu Razvan Exarhu - Romania people’s wishes come true. Napoca FM) and in Brasov (using the radio frequency of market managed to sustain the are sânge de rocker! – in the • PRO FM – continued the Tex FM), reaching in total 20 previous year growing trend of context of the severe need for 10% in ad spend, up to 28M Euro. tradition of concerts held on cities. blood donations, the morning the 8th of March, Pro FM • Radio ZU: added a new Radio stations continued their broadcast together with the Supergirl and also PRO FM On frequency to its network, in effort to consolidate advertising Bucharest Blood Transfusion To p , the only concert ever held revenue shares by being very Center launched a national on the roof of the House of Focsani. active and creative in offering campaign called “Romania has Parliament. • ASHA Radio: launched in special media packages, a rocker’s blood”, to increase March as an online Radio integrating radio airtime and • Digi FM – Apus Acustic si the number of blood donors. Apus LIVE – famous young platform for listeners under digital properties, especially 25 years old, including a site social media, putting together • Kiss FM, Magic FM, Rock Romanian artists (Smiley, (Asha.ro) and an application attractive marketing campaigns, FM – organized during Irina Rimes, Feli, Antonia) (ASHA) where young listeners being partners in big, successful summer in Constanta the concerted on the Promenada Mall roof. can find special content concerts and special events. biggest Romanian music generated by the Asha Team. festival, One festival, which • Digi FM – celebrated 4 years In this context, several marketing on air, with a special guest campaigns and events were brought together on the same Local radio stations continued to implemented by the Radio trusts. stage, during four weekends, Bryan Adams and concert in be an important communication Some of the most notable ones the most famous Romanian Cluj-Napoca. vehicle for advertisers who need were: voices. • Radio Guerrilla – Guerrilla to engage with consumers at local • Kiss FM – Party charter on • Europa FM – broadcast on Camp – a campaign designed level, in their day-by-day life context, sending custom messages air on the way to Untold – Kiss December 20th a special to support Romanian start-up entrepreneurs. 237 business based on the location of their FM, together with Partydul edition of the morning show ideas were submitted in listeners. Kiss FM, flew with 100 Desteptarea, live on the balcony qualifications, 15 qualified in passengers to Untold music of Timisoara Opera House, event and back, starting a Guerrilla Camp, generating Therefore, in 2019, local radio celebrating 30 years from the over 140 dedicated live shows, unique warm-up party on air, stations came forward with a wide 1989 Revolution. over 100 video and audio at a height of 1000 meters. range of advertising packages • Virgin Radio – Talent Hunt - recordings. incorporating special projects, • Magic FM – in 2019 Santa’s covered over 20 high schools contests and live actions, besides Radio was the host of the Besides the big events, in 2019 in Bucharest, with the winners regular airtime. Christmas party for children. the Radio market registered some performing on Virgin Radio’s For 15 days, over 20 groups additional changes, especially ARBOmedia remains the leading stage and the jury being made of children from Bucharest in ownership, acquisitions and sales-house for local radio through of Radio listeners. kindergartens and schools coverage: its partnership with more than were the stars of the station. • Radio ZU – Forza ZU – the • Smart Radio: Adrian Sarbu 90 stations, covering almost all They have come together and 2019 edition was held in Galati joined Marius Tuca as majority counties. In 2019, the sales-house danced live on most popular in May, gathering over 30 shareholder. extended its offering with Jurnalul Christmas songs from around Romanian artists, over 100 hits FM Network (5 licenses in • Radio Impuls: Dogan Media the world. and over 60.000 people. Moldova), Mesagerul FM Bacau, overtook in March the Radio Nova FM Brasov, and Szepviz FM network and in July expanded Miercurea Ciuc. 74 75 Daily Reach (%) Evolution MARKET ANALYSIS 80 76.9 76.8 75.9 74.7 75.3 75 74.4 AG Radio Holding consolidates stable on the fourth position with 71.3 its market leadership with a 3% 14% (1% increase vs 2018). 70 67.8 increase of Rate Card volumes vs The public Radio, Societatea 66.7 66.2 64.8 2018, while Europe Development Romana de Radiodifuziune kept 65 64.7 International and Grupul Media the 5th place with 8% market Camina are both on the second share (1% increase vs 2018), while 60 place with 22% market share, Radio Guerrilla ranked 6th with 55 both decreasing compared to 4% market share and a 1% drop Monday-Friday Saturday-Sunday Monday-Friday Saturday-Sunday the previous year with 2% and compared to the previous year. Urban Bucharest respectively 1%. RCS&RDS was Source: ARA-MasoR 2017 2018 2019 In 2019, for the first time ever, in- Most likely, this evolution is due car listening (+3.6pp) surpassed to the busy car traffic, resulting in at home listening (+0.8pp). more time spent on the road. Share of Rate card Revenues by Media Group

4% A.G. RADIO HOLDING = Kiss FM, Magic FM, Place of listening - Daily Reach (%) Evolution - Urban 11+ Monday to Friday 8% Rock FM 50% EUROPE DEVELOPMENT INTERNATIONAL = 45% Europa FM, Virgin Radio 30% 40% 14% GRUPUL MEDIA CAMINA = Radio ZU, 35% Radio Romantic 30% 25% RCS AND RDS = Pro FM, Digi FM 20% 15% SOCIETATEA ROMANA DE RADIODIFUZIUNE = 10% Radio România Actualități 22% 5% 0% 22% GUERRILLA RADIO = Radio Guerrilla 2015 2016 2017 2018 2019 Source: ARA-MasoR At home In a car At work Other place Source: Media Monitor BRAT (Rate card revenues) In general, 82% of the urban lightest usage, while medium to population spends up to 3 hours/ heavy consumption is growing day listening to Radio programs, starting with 25 years old and but the consumption frequency remains stable after 35+ years old, tends to vary significantly by age making Radio an effective media AUDIENCE ANALYSIS group: the youngest age group vehicle in campaigns targeting the (14-17 years old) shows the adult population. While in 2017 and 2018 Radio smartphones audio streaming audience was stable during capabilities. Listening preferences by age groups week days, in 2019 daily reach 100

increased significantly at urban Radio performance had an 80 level (+2.2pp) and marginally opposite trend during weekends, 60 in Bucharest (0.9pp), as daily reach dropping significantly people increased their Radio in 2018, and a modest recovery 40 consumption during their daily in 2019 in urban (+2pp) 20 activities due to the availability and Bucharest (+1.4pp), but 0 of more affordable technologies, still significantly below 2017 14-17 y.o. 18-24 y.o. 25-34 y.o. 35-44 y.o. 45-54 y.o. 55-74 y.o. which enabled enhanced performance. Heavy (>3h/day) Medium (1-3 h/day) Light (< 1h/day or not at all) Source: SNA FOCUS CAPI FEB18-IAN20, 14-74 ani, All urban, Weighted sample 76 77 Mapping the urban Radio 25-45 y.o. with medium to high Top 10 Stations Urban vs. Bucharest audience by age and gender, we education, while Romantic FM 15.6 15.2 can see that the public station and Smart Radio have a higher 13.4 11.9 Radio Romania Actualitati is affinity among highly educated 11.5 11.7 11.3 preferred by mature listeners women. 9.4 with a male skew of the audience 7.5 7.3 Daily Reach % 6 profile and low to medium Surprisingly, Digi FM and Virgin 5.9 5.9 5.4 education. At the opposite side, 4.5 4.4 Radio overlap on the young, 3.6 3.2 Rock FM and Vibe FM are educated male 25-35 y.o. audience 2 2.1 listened mostly by young, highly segment. The two stations were educated men, while Europa perceived as having a completely Kiss FM ZU Europa FM Actualități Magic FM ProFM Digi FM Virgin Radio Rock FM Ant. Satelor FM and Pro FM have a higher different age structure – Virgin Source: ARA-MasoR Urban 11+ y.o. Bucharest 11+ y.o. preference among the mature educated male audience. Radio younger and Digi 24 more mature. Another surprise is Magic At urban level, Kiss FM The second tier of Radio stations, Women are more present in the FM’s audience profile, balanced consolidated its leadership with Magic FM (6% daily reach), Pro Kiss FM, Radio Zu and Radio by gender, as it is traditionally a 0.6 pp higher daily reach, FM (5.9% daily reach), Digi FM Guerrilla listeners profiles, with perceived as more appealing to followed by Radio ZU with 13.4% (5.4% daily reach), Virgin Radio high penetration among women women. (+0.8pp), reducing the gap. (4.5% daily reach) and Rock FM Europa FM went up on third place, (3.2% daily reach) had an even achieving a significantly better more dynamic increase of their performance (+1.9pp vs. 2018), daily audiences (from +0.9pp to slightly overtaking Radio Romania +1.8pp).

74 Y.O. Actualitati.

➞ Romania Actualități

Europa Fm Pro Fm Romantic COVID-19 AND PERSPECTIVES AGE National Fm Radio Vibe Fm FOR 2020 Virgin Radio Magic Fm Zu Radio Guerrilla Radio has always been about Here are some examples: Digi Fm Radio Smart Fm ➞ Rock Fm companionship. As the Kiss Fm • The Europa FM Radio content COVID-19 crisis developed from was generated by experienced 14 Y.O. mid-March and more people ➞ journalists, opinion leaders Men ➞ GENDER Women spent time at home, at this time of from various areas as well as Source: SNA FOCUS CAPI FEB18-IAN20, 14-74 ani, National, Weighted sample isolation radio might have been, tough analysts who were in more than usual, an important daily contact with Romanians voice in the room. Radio ZU remained the leading FM stayed number four, while and their problems, fears Radio station in Bucharest, with a Magic FM ranked fifth despite a and emotions. It was all Keeping the public informed at slight growth in daily reach marginal drop of 0.2pp vs 2018. about solidarity, hope and this difficult time was challenging (+ 0.8pp vs 2018), followed by With a very dynamic evolution, the pursuit of the truth. All and it is particularly interesting the public station Radio Romania Rock FM (+1.5 pp vs. 2018) the voices that matter during to see how the most important Actualitati (+0.8pp vs 2018) and reached sixth place with 7.3% this crisis times could be Romanian Radio stations adapted Kiss FM (+1pp vs 2018). With an daily reach, followed by Pro FM heard on Europa FM, making to the new reality. increase of 1.6pp vs 2018, Europa with 5.9% (-0.5pp vs 2018). themselves useful in these extremely difficult, uncertain and unprecedented times.

78 79 • With frequent news business partners to engage programs and permanent with the cause and support interaction with the public this fundraising campaign to in all its broadcasts, Europa support hospitals and medical FM tried to feel the street staff with modern technology pulse, to build and share and medical equipment. with its public the profile of the Romanian society in We cannot ignore the severe these terrible times. Special financial effects of the pandemic, broadcasts were aired daily, which is already affecting most to provide a concise summary economic sectors. While the of the most important highest impact is expected on events, useful info, guidance small and medium enterprises, and recommendations in a advertisers from Pharma, Retail transparent and professional and Telcom continue to be way. active on radio, associating their messages with the high impact • Kiss FM, Magic FM & Rock and immediate awareness brought FM, with their campaign by this media channel. #impreuna Solitari si solidari - Ramanem împreuna chiar si Before the pandemic, our forecast la distanta, have been offering for the Radio market was positive, free airtime for civic initiatives as budgets for January and which needed a mass market February had been at the same support at this time. Each of level as the previous year. them created special sections in their websites, where people The impact of the lockdown in could find civic initiatives March led to a 25% decrease of aimed to make life better for the budgets, compared to March those facing difficult times. 2019, and affected up to 50% • Radio ZU was one of the firsts the budgets in April and May. to provide their public with Starting from June, revenues are comfort and emotional support in a slight recovery. during the lockdown, not only through news updates, but also During September-December, with Romanian music hits and Radio is expected to compensate involvement of music artists. for part of the revenues lost in the first half of the year but will not • Radio ZU launching manage to recover completely. a new campaign, Summing up, the 2020 impact #10lasutapentruromania, aimed on the Radio market is currently to support the health system estimated at -29%, a serious by donating 10% of its April decrease, which would mean advertising revenues. The that a 2-digit comeback in 2021 radio station invited their becomes imperative.

80 81 In terms of advertising sales, publishers have permanently OVERVIEW ARBOmedia remains the biggest adapted their package offers In 2019, the estimated Print The regional press mirrored the sales house for local media, structure, increasing the focus on advertising revenues were of national press downtrend, with continuing to trade the most the digital exposure, integrating 12.1 M Euro, dropping by 5% more and more titles closing or important local titles from across video content on their sites and vs the previous year, as the restraining to online versions, the country. continuing to offer creative distribution networks problems some examples being Glasul In order to defend their flexibility through tailor-made persist, with high impact on print Hunedoarei, Replica and Gazeta de advertising revenues, print printed supplements. advertising investments. Teleorman. Despite this negative context, some local publications Print editorial content continued managed to maintain a high to migrate towards digital interest in their content and platforms as the press readers, support significant circulation MARKET ANALYSIS and implicitly sold circulations levels, some of the most successful The readership decline was weeklies dropped on average with being Jurnalul Aradean, Bihari continued to decrease with steeper in 2019 compared to the 17-19% compared to previous year, each new wave of audience Naplo, Jurnal Bihorean and Sibiu waves from the previous years. while readership for monthlies measurement. In November 100%, proving that in some The coverage for dailies and increased on average by 1%. and December, two well-known regions local titles continue women magazines closed their to be treasured by the local print versions, Marie Claire and communities. Femeia, the latest ending its 150 Coverage evolution (%) years life as print title, to become 30 online content. The same decision 25 was taken by Evenimentul Zilei, a top general interest daily, which 20 became exclusively online on the 1st Jan 2020, after almost three 15

decades in print format. 10

Despite the grim outlook, some 5 notable events were noticed: 0 • The October issue of Unica Wave May14-Nov15 Wave Jun15-Nov16 Wave Feb16-Oct17 Wave Feb17-Oct18 Wave Oct17-Oct19 women magazine released with Monthlies Weeklies Dailies Source: SNA FOCUS CAPI FEB18-IAN20, All 14-74 ani, National, Weighted sample three local male stars on the first cover Andi Vasluianu, Smiley and Alex Dima, On the other hand, readers’ practical topics, such as childcare, being the second time in the preferences are quite stable across housekeeping, healthcare, magazine’s 20 years history the years: women continue to cooking. In 2019, the male not to have women on the first prefer glossy magazines with audience remained constantly specialized editorial content interested in daily newspaper, cover. (beauty, fashion, lifestyle and with a marginal increase for • Also, in October, Cosmopolitan career), followed by weekly weekly and monthly business magazine celebrated 20 years publications focused on more titles. since the launch on the Romanian market, with 20 different designs for the first cover. 82 83 Looking at the reader profile predominant male 44-54 y.o. base for daily newspapers from a of readers. On the other side, Unica demographic perspective, Click Jurnalul reflects a more balanced ➞ University Cosmopolitan reflects the most mature profile, gender ratio and an important Elle dominated by women, while 34-44 y.o. age profile, whileZiarul Avantaje general interest publications Financiar has a predominantly Adevarul and Evenimentul zilei young urban men audience

profiles are very similar, with a profile. EDUCATION Viva ➞ Ioana Elementary 14 Y.O. ➞ AGE ➞ 74 Y.O.

Source: SNA FOCUS CAPI FEB18-IAN20, All 14-74 ani, National, Weighted sample 74 Y.O. ➞ Click

Evenimentul Zilei In terms of rate card advertising With a flat evolution Burda and revenues, Ringier maintained its Mediafax (Ziarul Financiar and first position with 2% increase Business Magazin) are both on the AGE Adevarul Jurnalul compared to 2018, due to a large third place reflecting the same portfolio of titles which are market share (11%). The last in

➞ market leaders in their segments. top five comes BP Publishing Ziarul Financiar (Forbes, Forbes Life, Forbes Kids) Despite the 2% decrease, Adevarul which gained 1% market share vs 14 Y.O. Men ➞ GENDER ➞ Women Holding remains on the second 2018. Source: SNA FOCUS CAPI FEB18-IAN20, All 14-74 ani, National, Weighted sample position as a result of sales policy based on package deals and tailor- made supplements.

Women’s glossy magazines remain life stories. With the same age the largest print category on the profile 45+ y.o. Viva and Ioana Share of Rate card Revenues by Media Group (w/o barters) market, due to the high interest cover low to medium educated urban women continue to show women with a topic range from OTHERS 13% for beauty, fashion and lifestyle practical advice to glamourous PATETIC MEDIA 2% 28% RINGIER ROMANIA content. Cosmopolitan and Unica stories about the life of local MEDIA MEN COMMUNICATION 2% 2% keep their younger age profile of and international celebrities. THETA PROFICIENCY ANTENA 3 3% 20-35 y.o. and high education with Elle continues to be the glossy interest in fashion and design magazine for urban educated BP PUBLISHING MEDIA 5% trends. Avantaje covers best the readers with a high interest in accomplished women 34-44 y.o. international fashion design and MEDIAFAX GROUP 11% with medium to high education, beauty trends, women who have a who are highly interested in real sophisticated personal style.

BURDA ROMANIA 11% 23% ADEVARUL HOLDING

Source: MediaMONITOR BRAT

84 85 COVID-19 AND PERSPECTIVES FOR 2020 list of abbreviations 2020 was supposed to be a very to “e-paper”, such as Mediafax important year for publishers, (Ziarul Financiar and Business given the two major sports events Magazin), business magazines ABC = ESOMAR Social Grades COPPA = Children’s Online scheduled during summer, the (Newsweek, New Money) or used – a classification system based on Privacy Protection Act socio-economic status, often used European Football Championship “e-paper” complementary to the CPCV = Cost Per Completed View and the 2020 Tokyo Olympic print edition (Elle, Avantaje, to describe a profile of users or Games, both cancelled due to Unica, Viva). target customers CPM = Cost Per Mille – also the pandemic impact worldwide. Adv. = Advertiser known as Cost Per Thousand More than that, all sports This creative solution used by ANSPDCP = National Authority CPP = Cost Per Point events were either cancelled or publishers to adapt to the new for the Supervision of Personal CPT = Cost Per Thousand postponed, which will generate crisis, the e-paper, could represent Data Processing a major negative impact on the the tipping point for publications CTR = Click-Through Rate ARIA = Romanian Association for advertising budgets traditionally and their readers towards higher DOOH = Digital Out-Of-Home invested by brand categories digital content consumption. Indoor Advertising associated with sports. As publishers will continue to ARMA = Romanian Association DTH = Direct to Home develop online, and video content for Audience Measurement DV360 = Display & Video 360 The cancellation of all cultural and will strengthen their social Avg. = Average (Google Display Platform) and social events during the media presence, printed press will AVOD = Advertising-based Video EBRD = The European Bank for quarantine will also negatively get a much smaller share in their Reconstruction and Development impact publishers’ advertising advertising revenues, as business on Demand revenues, as offers were built and consumers media habits will BRAT = Romanian Joint Industry ESOMAR = European Society for as integrated print and online move forward. Committee for Print and Internet Opinion and Marketing Research exposure packages. CME = Central European Media FMCG = Fast-Moving Consumer In 2020, the print market is Enterprises Goods – a category of products During lockdown, several expected to further drop by 61%. with low profit margins and with publications adapted their release CMP = Consent Management a short shelf life because of high Platform – a process that allows a consumer demand website to meet GDPR regulation by obtaining user consent for GB = Gigabyte collecting their data through GDP = Gross Domestic Product cookies during their visit

86 87 GDPR = General Data Protection Q = Quarter Regulation ROADS = Romanian Online GPeC = The most important Advertising Study – a study e-commerce and digital marketing made by IAB Romania and PwC event in Romania Romania GRP = Gross Rating Point Rtg. = Rating HoReCa = The abbreviation SATI = Internet Audience used for the food service industry and Traffic Measurement – a (Hotel, Restaurant, Café) measurement system developed by the Internet Department of BRAT IAB = Interactive Advertising Bureau – the European-level SATI PMC = Consent association for the digital Management Platform, used by marketing and advertising SATI for collecting user consent ecosystem Shr. = Share IT&C = Information Technology and Communication SME = Small and Medium-sized Enterprise K = Thousand SOV = Share of Voice KPI = Key Performance Indicator SP = Special Projects M = Million SSP = Supply Side Platforms – Mbps = Megabit per second the publisher equivalent of a DSP, defined as a tool used to coordinate MOAT = Measurement and the supply and distribution of ad Operations Analysis Team – an inventory to and from advertisers analytics and measurement company that offers viewability, TTV = Total TV Audience attention and brand safety solution across display, video, mobile and U = Urban more WW = Worldwide OOH = Out-Of-Home Y.O. = Years Old Advertising YoY = Year over Year – method PMP = Private Marketplace of measuring statistical changes pp = Percentage Point against the same time period last year PT = Prime Time

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