Industry Report Advertising and Market Research 2018 BULGARIA
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Industry Report Advertising and market research 2018 BULGARIA seenews.com/reports This industry report is part of your subcription access to SeeNews | seenews.com/subscription CONTENTS I. KEY INDICATORS II. INTRODUCTION III. REVENUES IV. EXPENSES V. PROFITABILITY VI. EMPLOYMENT 1 SeeNews Industry Report NUMBER OF COMPANIES IN ADVERTISING AND MARKET I. KEY INDICATORS RESEARCH INDUSTRY BY SECTORS SECTOR 2018 2017 2016 The Advertising and market research industry in Bulgaria ADVERTISING AGENCIES 2,837 2,791 2,831 was represented by 4,064 companies at the end of 2018, MARKET RESEARCH AND PUBLIC OPINION 671 650 614 compared to 4,016 in the previous year and 4,040 in 2016. POLLING MEDIA REPRESENTATION 556 575 595 The industry's net profit amounted to BGN 124,877,000 in 2018. The industry's total revenue was BGN 1,495,671,000 in 2018, up by 7.39% compared to the previous year. III. REVENUES The combined costs of the companies in the Advertising The total revenue in the industry was BGN 1,495,671,000 in and market research industry reached BGN 1,354,001,000 2018, BGN 1,392,793,000 in 2017 and 1,423,528,000 in 2016. in 2018, up by 7.01% year-on-year. Total revenue The industry's total revenue makes up 1.51% to the country's Net sales revenue Gross domestic product (GDP) in 2018, compared to 1.45% 1,495,671,000 1,500,000,0001,423,528,000 for 2017 and 1.54% in 2016. 1,392,793,000 1,456,604,000 A total of 8,929 people were employed in the Advertising 1,350,000,000 and market research industry in 2018, compared to 9,155 in 1,343,928,000 1,341,577,000 1,200,000,000 2017 and 9,142 in 2016. 1,050,000,000 Most of the companies in the industry are based in Sofia, followed by Varna and Plovdiv. 900,000,000 750,000,000 BGN II. INTRODUCTION 600,000,000 In 2018 the companies in the Advertising and market research 450,000,000 industry numbered 4,064, distributed in 3 sectors. 300,000,000 150,000,000 INDUSTRY STRUCTURE BY SECTORS AND NUMBER OF COMPANIES 0 671 2016 2017 2018 The companies in the Advertising and market research market of Bulgaria earned combined net sales revenues of BGN 1,456,604,000 in 2018. 556 In annual terms, sales marked a growth of 8.57% compared to 2017. In comparison to 2016 they went up by 8.38%. In 2017 sales grew by 0.17% year-on-year. The Advertising and market research industry total revenue make up 1.51% to the country's GDP in 2018, compared to 1.45% for 2017 and 1.54% in 2016. 2,837 Advertising agencies Market research and public opinion polling Media representation In 2017 there were a total of 4,016 companies operating in the industry. In 2016 their number totalled 4,040. 2 SeeNews Industry Report Share in GDP 1.61.54% 1.51% INDUSTRY'S NET SALES REVENUE STRUCTURE BY SECTORS 1.45% 27.55% 1.44 1.28 1.12 17.35% 0.96 0.8 0.64 0.48 0.32 0.16 0 2016 2017 2018 In 2018 the Advertising and market research industry Advertising agencies 55.10% contributed to GDP BGN 1,407,098,000 in Gross value added Media representation (GVA) accounting for 0.77% of the total for the country's economy. Market research and public opinion polling In the previous year, the industry's GVA amounted BGN The highest growth, of 15.77%, was recorded by Market 1,312,351,000, accounting for 0.77% of the total for the research and public opinion polling. There was no industry's country in 2017. In 2016 the GVA of the Advertising and sector to report a drop in net sales revenues. market research was BGN 1,334,484,000, or 0.87% of the GVA for the country's economy. TOP COMPANIES' REVENUE BY SECTORS SEGMENT COMPANY TOTAL REVENUE NET SALES (BGN) REVENUE (BGN) GVA BY SECTORS ADVERTISING AGENCIES RANK SECTOR BGN SHARE OF THE COUNTRY'S OGILVY SOFIA OOD 31,932,000 31,530,000 GVA (%) BERLIN-CHEMIEA. MENARINI BULGARIA 27,294,000 26,869,000 1 ADVERTISING AGENCIES 757,974,000 0.42 EOOD 2 MEDIA REPRESENTATION 399,192,000 0.22 ASTRAZENECA BULGARIA EOOD 24,374,000 24,255,000 3 MARKET RESEARCH AND PUBLIC OPINION 249,932,000 0.14 MARKET RESEARCH AND PUBLIC OPINION POLLING POLLING GFK BULGARIA INSTITUT ZA MARKETINGOVI 29,463,000 29,441,000 IZSLEDVANIA EOOD PFIZER LUXEMBOURG SARL BRANCH 15,624,000 15,478,000 We expect, based on the trend in the last three years, the total BULGARIA revenue of the Advertising and market research industry to PURE MARKETING CORP EOOD 15,071,000 14,866,000 change at a compound annual growth rate (CAGR) of 2.50% MEDIA REPRESENTATION in 2019. PUBLICIS AD 48,099,000 47,975,000 P H D EOOD 23,476,000 23,465,000 Advertising agencies contributed net sales revenue of BGN DENTSU EGIS NETWORK BULGARIA OOD 23,237,000 23,236,000 802,546,000 or 55.10% of the total net sales in the industry, sector Media representation - BGN 401,321,000 (27.55%), and sector Market research and public opinion polling - BGN The top 10 companies in terms of total revenue in Advertising 252,737,000 (17.35%). and market research accounted for 18.21% of the industry's total in 2018, 18.56% in 2017 and 21.44% in 2016. TOP 10 COMPANIES BY TOTAL AND NET SALES REVENUE IN THE INDUSTRY RANK COMPANY TOTAL REVENUE NET SALE (BGN) REVENUE (BGN) 1 PUBLICIS AD 48,099,000 47,975,000 2 OGILVY SOFIA OOD 31,932,000 31,530,000 3 GFK BULGARIA INSTITUT ZA MARKETINGOVI 29,463,000 29,441,000 IZSLEDVANIA EOOD 4 BERLIN-CHEMIEA. MENARINI BULGARIA 27,294,000 26,869,000 EOOD 5 ASTRAZENECA BULGARIA EOOD 24,374,000 24,255,000 6 P H D EOOD 23,476,000 23,465,000 3 SeeNews Industry Report 7 DENTSU EGIS NETWORK BULGARIA OOD 23,237,000 23,236,000 TOP 10 COMPANIES BY TOTAL REVENUE IN THE INDUSTRY 8 MEDIA DIRECTION EOOD 22,582,000 22,555,000 MARKET RESEARCH AND PUBLIC OPINION POLLING WERE: 9 ARGENT 2002 OOD 21,563,000 21,499,000 COMPANY BGN 10 ZENITH ADVERTISING AND 20,413,000 20,392,000 GFK BULGARIA INSTITUT ZA MARKETINGOVI IZSLEDVANIA EOOD 29,463,000 COMMUNICATIONS AD PFIZER LUXEMBOURG SARL BRANCH BULGARIA 15,624,000 PURE MARKETING CORP EOOD 15,071,000 IPSOS EOOD 12,939,000 The total revenues of the top 10 companies in the Advertising ACNIELSEN BULGARIA EOOD 11,888,000 and market research were 0.28% of GDP in 2018, compared BRIGHT MARKETING RESEARCH OOD 8,895,000 to 0.27% for 2017 and 0.33% in 2016. FOCUSVISION BULGARIA EOOD 7,455,000 KMSG EOOD 7,312,000 The top 10 by assets in the Advertising and market research EMAG INTERNATIONAL OOD 5,570,000 field made up BGN 157,535,000, or 10.82% of the total net ADVANCE MEDIA SOLUTIONS EOOD 5,445,000 sales revenue. TOP 10 BY TOTAL ASSETS IN THE INDUSTRY The 10 largest companies in terms of total revenue in sector RANK COMPANY BGN Market research and public opinion polling earned total 1 VESTNIKARSKA GRUPA BULGARIA OOD 36,672,000 revenue of BGN 119,662,000 and accounted for 8.00% of the 2 NOMER EDNO REKLAMA EOOD 24,090,000 industry's total revenue. 3 ARENA KOM OOD 23,854,000 4 ASTRAZENECA BULGARIA EOOD 20,109,000 TOP 10 COMPANIES BY TOTAL REVENUE IN THE MARKET MEDIA 5 MEDIA DIRECTION EOOD 19,605,000 REPRESENTATION WERE: 6 MEDIA SVYAT EOOD 19,253,000 COMPANY BGN 7 NSA BULGARIA EOOD 18,408,000 PUBLICIS AD 48,099,000 8 TITAN GATE AD 17,062,000 P H D EOOD 23,476,000 9 PUBLICIS AD 16,356,000 DENTSU EGIS NETWORK BULGARIA OOD 23,237,000 10 OGILVY SOFIA OOD 15,790,000 MEDIA DIRECTION EOOD 22,582,000 ZENITH ADVERTISING AND COMMUNICATIONS AD 20,413,000 BULGARIAN MEDIA AGENCY OOD 18,456,000 TOP 10 COMPANIES WITH HIGHEST ANNUAL GROWTH IN MEDIA POOL SOFIA EOOD 17,064,000 OPERATING REVENUE IN ADVERTISING AND MARKET RESEARCH DIRECT MEDIA EOOD 16,929,000 RANK COMPANY Y/Y GROWTH TITAN GATE AD 16,904,000 1 SBA - MOTOR - SPORT EOOD 35800.00% TRIDENT LINE EOOD 15,354,000 2 RIEM BILD EOOD 26600.00 % 3 STIF TERMOKLIMA INZHENERING EOOD 20800.00 % The 10 largest companies in terms of total revenue in sector 4 KONAN-BG EOOD 13600.00% Media representation earned total revenue of BGN 5 AGENCY NIA EOOD 12650.00% 222,514,000 and accounted for 14.88% of the industry's total 6 CHILTERN INTERNATIONAL EOOD 9916.67% revenue. 7 NEXT LEVEL STUDIO EOOD 9500.00% 8 HIGHLIGHT ADVERTISING OOD 9000.00% 9 INTERHUMAN CAPITAL EOOD 8950.00% IV. EXPENSES 10 KRIKTECH DISTRIBUTION EOOD 8933.33% The combined costs of the companies in the Advertising and market research industry reached BGN 1,354,001,000 in 2018. TOP 10 COMPANIES BY TOTAL REVENUE IN THE MARKET ADVERTISING AGENCIES WERE: COMPANY BGN OGILVY SOFIA OOD 31,932,000 BERLIN-CHEMIEA. MENARINI BULGARIA EOOD 27,294,000 ASTRAZENECA BULGARIA EOOD 24,374,000 ARGENT 2002 OOD 21,563,000 MS SOFIA EOOD 20,189,000 NET FM EOOD 11,707,000 GATS AND BREYNS DDB OOD 11,693,000 HUTS SPOT THOMPSON EOOD 11,064,000 MERK SHARP & DOHME BULGARIA EOOD 10,939,000 ADVERTISING AGENCY KIWI OOD 10,684,000 The 10 largest companies in terms of total revenue in sector Advertising agencies earned total revenue of BGN 181,439,000 and accounted for 12.13% of the industry's total revenue.