2008 media fact book ROMANIA media fact book ROMANIA 2008 This book is a product of Initiative Romania. In putting together the Media Fact Book we have used audience data and information supplied by The Romanian Association for Audience Measurement (ARMA), The Romanian Bureau of Circulation Audit (BRAT), The Romanian Association for Radio Audience Measurement (ARA), TNS-AGB INTERNATIONAL, Alfacont, GfK Romania, Mercury Research, IMAS, Initiative Moldova (Evghenii Crecesco) ARBOmedia, netBridge, CableDirect, Hollywood Multiplex, International Advertising Association (IAA), The National Audio-Visio Council (CNA), The National Institute of Statistics (INS) and The National Bank of Romania (BNR). Acknowledgements to the following members of the team who significantly contributed to this book: Octavian Popescu, Alexandra Olteanu, Nicoleta Florescu, Maruan Trascu, Cristina Chinde, Laurentiu Pop, Rodica Caraghina, Marcela Tuila. INITIATIVE MEDIA S.A, Bucharest, 2008 All rights reserved This publication is protected by copyright. No parts of this book may be reproduced without the prior written consent of the copyright owner. Readers should understand that the data contained in the Media Fact Book is as actual and accurate as the sources could provide it. Your comments and suggestions are welcomed as a valuable input for the future issues of this book. www.initiative.com table of contents 1 editor’s foreword 3 about initiative 5 media market 6 media research 10 television 16 radio 22 press 30 outdoor & indoor 61 cinema 65 internet 68 new media 73 romania - economic landscape 76 professional associations 81 legislations and taxes 87 the national audio-visual council 99 moldavian media market 100 media dictionary 108 www.initiative.com editor’s foreword 3 Dear reader, It seems 2007 has brought a new media jargon in our business vocabulary where Television is regarded. It’s the “program break” and occurs whenever a trailer of advertising is paused by a program window. We’ve gotten this far in 2007. Television seems to have abandoned its original aim to provide news, entertainment and education for the mass audience in order to become a 24/7 advertising broadcasting service. In 2007, except for Jan, Feb, Jul, and Aug, the ad loading at the top five commercial channels, in Prime Time, reached nearly 14 minutes per hour of program in Prime Time. The legal limitation for broadcasting advertising had been exceeded at times by as much as 148%, translating into a 31 minute ad break. Is it then a wonder that people don’t watch TV as much as they used to? The most sought-after age segment for advertisers 18-49 has spent ca. 9% less time watching TV than they did a year ago. Can broadcasters afford to further alienate this ‘goldmine’? One way to turn the trend around is to invest if the single, most popular sport amongst Romanian public: football. It’s been an amazing battle over the rights to broadcast various football competitions. Only few of many in need to make football the driving force behind their trailing audiences succeeded to secure those rights. Less audience means less GRPs to sell, which in turn means more spots, for each advertiser has to reach its objectives. Price is just one lever in regulating these anomalies. Did you notice that more audience migrates from the major, generalist channels towards the specialty ones? They seem to be able to respond to public’s need to watch programs they prefer, which are paused by advertising instead of the other way around. Programming should be the other lever in keeping the audience tuned in and generalist channels should find a way to achieve that. It is no easy job as at end of 2007 some 38 channels were selling advertising. In the beginning of 2008 this number already jumped up to 42. 2007 started on a very optimist note when assessing the budgets in the market, despite the high inflation and the reduced inventory from the major TV groups. It turned out the market could no longer sustain an estimated 40% growth and so in the end the TV market grew by 35%. For 2008 we estimate a growth of ca. 25% of the TV market. The market growth will relent further in 2008 along with the increasing audience fragmentation and clutter. In contrast with the calming growth of traditional media, online keeps thrusting ahead as the inventory is increasing in both quantity and diversity and the Internet penetration is rapidly expanding within 18-49 age groups. In 2007 the most active spending category in online was Banking/Finance. In 2008 we expect online to maintain a 50% growth rate as well as into the following 3 to 5 years. The e-revolution is not here yet, but it’s not too far away either. All in all, after a 32% growth in 2007, a media market growth of nearly 22% of is expected in 2008 to a total of ca. 590 Mio €, of which TV will take some 385 Mio €, Print 90 Mio €, Outdoor 70 Mio € (including Digital Outdoor and Indoor), Radio 38 Mio € and Online ca. 15 Mio €. Obviously, the media market has passed the maximum growth moment and is slowly maturing, price inflation is cooling down, ownership consolidation is occurring in almost every market segment, be it TV, Outdoor, Print, Radio or Online, media audit companies are increasingly involved in the business, competition for content is more acute than ever while margins are shrinking. Efficiency, accountability, innovation, team stability and responsible service delivery will make the difference in the market place. Initiative is here doing just that. Enjoy this edition and let us know what you think. Initiative Team www.initiative.com about initiative 5 Initiative Romania is affiliated to Initiative Worldwide, part of Interpublic Group of Co’s (IPG). Along with other reputed agency networks such as Lowe & Partners Worldwide, Lowe PR and Brand Connection, all part of IPG, Initiative Worldwide is a truly global network, offering capitalised brain synergy, innovative and effective consumer approach in more than 51 countries on 5 continents. Initiative Romania started operations 14 years ago as the first true media management specialist company in the market. Currently the 3rd largest media agency in Romania, Initiative focuses on offering its clients thorough brand and marketing thinking, innovation through deep understanding of the modern consumer touch-points, negotiation power, commitment on delivery and measurable performance. The client portfolio of Initiative Romania includes strong brands and successful companies: Orange, Johnson&Johnson, BMW, Millennium Bank, GlaxoSmithKline, Pernod Ricard, MOL Romania, Sarantis, Georgia Pacific, Carrefour (commercial galleries), Provident Financial, Power Horse, Kika, Reinert etc. Initiative Romania provides the whole range of media services: quantitative research, media strategy, conceptual planning, implementation planning, buying, special media projects (event and media sponsorship, product integration, etc). Initiative Romania offers enhanced quality standards through usage of top-of-the-range proprietary tools aimed to better determine the optimum investment required to achieve the communication objective. Initiative Romania offers added value: • Media Landscape – quarterly analysis of the media market; • Media Fact Book – starting 1997, Initiative Romania is the exclusive publisher of this media annual guide, unique on the Romanian market. In 2007 Initiative, celebrated the 10th annual edition of the Media Fact Book. • Wireless communication portal aimed to improve the efficiency and smoothness of information management and client communication. • Media training – Presentation of media basics (terminology, methods) and on-the-job training in Initiative’s office. • Media PR – Initiative provides media coverage to PR events organised by clients, upon request and project specifics. • Outdoor Mapping – providing clients a better campaign management • Digital concept & design management – offering clients integrated digital solutions by managing the entire process from ideation, concept and design to media buying, planning and implementation of digital campaigns.. 2007 was a dynamic year of growth for Initiative, the business increasing by 36% over 2006. We put forward to our clients a solid team of experienced media professionals with a deep understanding of client’s marketing communication needs and advanced knowledge of efficient and creative planning and buying. We are committed to create value for brands by engaging consumers at best prices. Find out more about Initiative Romania at www.initiative.com, call at +4021 301 01 00 or write to us at [email protected]. media market www.initiative.com “Advertising is the art of arresting the human intelligence just long enough to get money from it.” Chuck Blore, a partner in the advertising firm Chuck Blore & Don Ruchman, Inc., quoted by Ben H. Bagdikian, “The Media Monopoly, Sixth Edition”, (Beacon Press, 2000) Overview The Romanian media market has grown in size and diversity in recent years. Despite that the largest budgets were allocated primarily to television, all other media such as outdoor, internet, radio and press kept growing and diversifying in keeping with the general development of the market over the past few years. The media landscape is characterized by: • Media pricing inflation • Rapidly increasing advertisers base and the subsequent demand for inventory • Media fragmentation • Decreasing inventory on main TV channels • Lack of quality inventory in on-line, radio, OOH • Sold out during Q2 and Q4 Graph 1: Total net Ad-spend by medium (Mil €) 2003-2008 - Initiative Estimation In 2007, the Romanian media market grew in net value by 32%. The fastest growth belongs to the Internet. Initiative estimates a 50-60% increase of the on-line spend compared to 2006. According to the World Association of Newspapers (WAN), the on-line advertising revenues increased by 32% in 2007 and by more than 200% in the 4 years period 2003-2007. Ad-spend has increased also in the Print market; in 2007 we estimate 11% increase of the net ad spend, compared to last year.