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ROMANIA 2015
ROMANIA 2015
www.mediafactbook.com
This document is a product of
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, alexa.com, The National Institute of
Statistics (INSSE), EuroStat, IMF (International Monetary Fund), ANCOM (The
National Authority for Management and Regulation in Communications),
Ziarul Financiar.
Acknowledgements to the following members of the INITIATIVE team who
Octavian Popescu, Alexandra Olteanu, Ruxandra Stefan,
Mirela Vasiloiu, Daniel Popescu, Catalina Ghita, Alexandru Miu,
Cristina Chinde, Sorin Popa, Razvan Simionescu,
Cosmin Otel, Adriana Ciobanu.
Special contributors:
• Cristian Hostiuc - Director Editorial Ziarul Financiar
• Andreea Daniel - Account Manager Mobile Works
• Raluca Mateescu - Integrated&Digital Media Director
Brand Programming Network,
Contents
EDITOR’S FOREWORD 06.
MEDIABRANDS 08.
CEE COUNTRY PULSE 10.
ROMANIAN ECONOMIC OUTLOOK 16.
CONSUMER TRENDS 18.
MEDIA MARKET 24.
TELEVISION 28.
DIGITAL MEDIA 36.
MOBILE 42.
RADIO 46.
© INITIATIVE MEDIA S.A, Bucharest, 2015 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 at the moment the
book was written.
Your comments and suggestions are welcome as a valuable input for the
future editions of this book.
PRINT 50.
OOH 56.
MEDIA RESEARCH 60.
Editor's foreword
The predictable Mobile future of an unpredictable Romanian Media Market
Worldwide, in January 2015, from a global population of 7.2 billion – over 3 billion have internet access via
fixed & mobile connections, meaning that almost 42% of the world ‘s population has internet access. (vs.
35% a year before).
The mobile statistics worldwide are even more interesting: the total number of global mobile connections
is 7.1 billion, out of which 38% are smartphone connections (2.7 billion), unique mobile users – 3.65 billion
( 51% penetration of mobile worldwide). We can count an average of 2 mobile connections per individual.
disruptive or even ignored by the consumer) .
But why we are choosing the easier one… when we have lots of smarter and more efficient formats on
mobile?
In-app advertising – one of the advantages is that advertisers have more control over where these ads
show up and over the experience between consumer and brand as being integrated in their play.
Mobile video - the advantage that video advertising has over other formats is that it is more engaging and
focused toward storytelling.
In many parts of the world the smartphone already replaced the computer as the most popular device for
web access - as around 80% of the global internet users own a smartphone.
Social Networks - Google and Facebook are nicely positioned to take advantage of the shift to mobile
(by the way …the two companies account for around two-thirds of mobile ad spending). We can benefit
of the advanced targeting on Facebook where advertisers can literally reach the consumers very effective
based on the large amount of info available (interests, sex, age, location)
Mobile is The Internet – over 33% of the global web traffic is Mobile, a lot of users being mobile-only or are
using mobile as the primary source for accessing the internet.
Text SMS / Location-based – may look as old-fashioned but still offers a lot of discrete targeting; is one of
the most powerful mobile formats when it comes to steer customers toward a particular venue or service.
What about Romania?
Mobile should not be treated as a “more likely” traditional digital advertising – the mobile device is
considered by consumers the most personal digital device – so, all the disruptions are more intimate than
any other traditional “advertising breaks”.
With 12 million of mobile broadband internet connections at the end of 2014 (meaning 12% increase
versus 2013), the number of subscription users recorded a steady growth year over year.
The penetration of smartphones had reached in 2014 a level of 34% within the population (in the range of
global penetration of 34%-40%), increasing with over 20% vs 2013 due to the competitive offers of the
local telecom operators.
A few years ago, the most used feature of the handset with internet access was “searching for info”.
After 2-3 years beyond “searching for info”, we discovered that the smartphone is the intersection of
a lot of types of connections and ways to communicate in real-time and one-to-one: Social Networks,
Instant messaging, e-mails … but also a lot of users are using it for video streaming – with the mobile
consumption habits evolving as long as mobile technology improves (3G, 4G).
On another hand all the benefits of mobile: advanced targeting, an unique understanding of where and
when someone has the availability for two way communication - should give marketers opportunities to
reach audiences in a meaningful way unlike ever before.
All these reasons fuel our strong belief that the market will soon narrow the substantial gap between
mobile consumption and advertising spending by investing more in Mobile advertising.
There is a big discrepancy between the amount of time that people actually spend on their smartphones
and tablets (both growing very fast), and the size of advertising budgets spent by advertisers on the
Mobile (still tiny).
Is well known that: Where the consumers go, Advertisers will follow!
Over the last couple of years the brands in Romania have been focused increasingly on innovation
especially in the digital area.
Now that the users are shifting from desktops & laptops towards mobile& tablets we would like to
see more attention and focus to ensure a stabile & quality mobile experience with the brand: either by
developing a mobile website (with a speedy loading and easy navigation), either by creating mobile apps
… or simply by using the mobile advertising inventory at its capacities.
Today one of the most used mobile ad format and easiest to serve is Mobile banner … but over the time
is most likely to decrease in effectiveness - similar to classical desktop web banners (end up by being
6
ROMANIA 2015
7
Mediabrands
About Mediabrands
Disruption towards action
Mediabrands was created by Interpublic Group (NYSE: IPG) in 2007 to manage all of its global media
related assets. Today Mediabrands manages and invests $37 billion in global media, employs over
8,500 diverse and daring marketing communication specialists and operates in over 130 countries.
“A passion for disruption. A bias for action. That’s what we look for in media, in people, technology and
ideas in general. We are simply too curious and too easily bored to settle for the status quo. Our clients
look to us for our ambition and our fearlessness to imagine what’s possible. At IPG Mediabrands, fresh
ideas are stirred up, perspectives are shifted, and innovations abound in our offices every day around
the world. We are catalysts for our clients’ growth.” Henry Tajer, Global Chief Operating Officer &
Executive Chairman, Australia, IPG Mediabrands
A proven entity in helping clients maximize business results through integrated, intelligence-driven
marketing strategies, IPG Mediabrands is committed to driving programmatic buying, pay-forperformance and digital innovation solutions through its network of media agencies Initiative, Brand
Programming Network and Universal Media. Its roster of specialist service agencies include MAGNA
GLOBAL, Ansible, Mediabrands Publishing, IPG Media Lab, Ensemble, Identity and offer technologies
and industry moving partnerships that are recognized for delivering unprecedented bottom line results
for clients corroborated with creative accolades at the most prestigious Festivals in the World.
In Romania IPG Mediabrands consolidates over 25% market share being the most powerful
international media group. With over 100 media specialists, IPG Mediabrands Romania manages the
media activities of a wide array of ‘blue-chip’ clients in most categories: telecom, finance, automotive,
soft drinks, food, retail, DIY, beer, alcoholic drinks, IT & technology, cosmetics, etc.
Fast, Brave, Decisive, Simple
“Today’s marketing environment can often be overwhelming for brands as the race to keep pace
with the changing consumer environment never rests. And so it’s my belief that the modern agency
needs to not only work faster and smarter, but we must be more courageous and brave in challenging
clients, be willing to be decisive on their behalf and most of all we MUST make it all simpler. Otherwise,
we’re adding more complexity when in fact we’re hired to do the opposite. At Initiative live this ethos
everyday allowing clients to see succinctly the impact we have on their business. We achieve this
with an elegant international approach but one that continues to reflect the strong regional cultures
Initiative’s teams have become known for across the globe.” Jim Elms, Worldwide CEO, Initiative
In 2014, Mediabrands was awarded the Holding Company of the Year distinction by MediaPost, for
actively managing its vision for the future and researching, testing and developing ways to leverage
that vision through the IPG Lab.
8
ROMANIA 2015
9
CEE COUNTRY PULSE
Net Market Spend per Capita Evolution (%) vs. 2008
Overview
The continuous dynamics between TV and Digital remained the common denominator of the media
landscapes throughout the whole region. Yet, with the continuously shifting audiences and consumption
habits, media planning is more and more based on a systemic approach in which every medium has a
specific value and contribution to the final result.
The Analysis
The rankings by total population are not the same as the ones by gross domestic products. The more
western-localized countries like Czech Republic, Slovakia or Slovenia have a higher economic output,
than the eastern-localized ones. Also, Poland, the highest populated CEE country, capitalized its historical
and social heritage and delivered the 2nd highest GDP per capita in the region, while Romania, despite
being the 2nd highest populated in the region, continues to have low GDP growth rate.
Total Population (mil)
€20,160
€10,129
€4,775
2.8
Albania
Bulgaria
Croatia
Czech
Republic
FYR
Macedonia
Hungary
Montenegro
Poland
Romania
Serbia
Slovakia
Slovenia
50%
25%
14%
0%
-7%
-4%
0%
-9%
-25%
-23%
-32%
-40%
-50%
-7%
-10%
-42%
2009
2010
2011
2012
2013
2014
Albania and the Czech Republic make up the first cluster of countries where, during the analysed period,
both the GDP/capita and media spend/capita evolutions are positive, meaning that both the economic
output and the media expenditures had a strong correlation and a positive trend.
4.3
Bosnia & Bulgaria
Herzegovina
Croatia
10.5
2.1
9.0
€17,676
€7,519
€5,383
€4,132
7.2
€19,761
€9,185
€5,400
3.8
Bosnia &
Herzegovina
GDP per capita (EUR)
€27,907
€3,723
Albania
€4,617
0.6
38.5
Czech
FYR
Hungary Montenegro Poland
Republic Macedonia
19.9
7.2
5.4
2.1
Romania
Serbia
Slovakia
Slovenia
Regarding the economic impact of the recession (indicated by the GDP / capita) and the media market’s
response to it (indicated by the media spend / capita) the CEE countries display different patterns. This
analysis spans the 2008-2014 period and uses the GDP/capita and media spend/capita evolution vs. the
reference year 2008.
Also a strong correlation but on a negative trend is reflected in Croatia and Hungary, showing a media
market response in line with the economic trend, but with an over-reactive media investment response to
the economic context. Serbia falls within the same cluster, albeit with an apparent economic recovery, but
with the same significant decrease in media spend / capita.
Bulgaria, Bosnia & Herzegovina, FYR Macedonia, Montenegro, Romania and Slovakia make up the
largest cluster of what appears to be the central tendency in the region: timid or marginal increase in terms
of GDP/capita year over year, with a significantly negative answer concerning the media spend.
Poland represents an exception – despite the very good GDP per capita evolution, the advertising market
still reflects a negative correlation.
2,500
Net Market Size Evolution (mil. EUR)
2,000
1,728
GDP per Capita (EUR, PPP method) Evolution (%) vs. 2008
Albania
Bosnia &
Herzegovina
Bulgaria
Croatia
Czech
Republic
FYR
Macedonia
Hungary
Montenegro
Romania
Serbia
Slovakia
Slovenia
1,000
26%
16%
1,434
1,500
53%
50%
22%
Poland
10%
8%
17%
15%
453
500
4%
0%
-2%
-6%
-1%
-4%
0
32
Albania
-50%
2009
10
2010
2011
2012
2013
2014
197
312
186
36
33
Bosnia &
Herzegovina
Bulgaria
Croatia
Czech
Republic
FYR
Macedonia
154
8
Hungary
Montenegro
Poland
Romania
2009
Serbia
2010
2011
279
Slovakia
2012
140
Slovenia
2013
ROMANIA 2015
2014
11
71%
6%
10%
5%
8%
1%
63%
13%
9%
5%
10%
Bulgaria
50%
10%
22%
8%
9%
1%
Croatia
42%
20%
24%
8%
6%
Czech Republic
71%
FYR Macedonia
6%
46%
9%
9%
52%
3%
11%
11%
0%
1%
18%
10%
16%
53%
10%
12%
2%
22%
63%
Romania
5%
28%
59%
Montenegro
7%
0%
8%
6%
20%
6% 1%
6%
5%
9%
11%
0%
Serbia
48%
25%
53%
12%
14%
5%
9%
Slovakia
14%
4%
18%
Slovenia
TV
Digital
Print
Radio
OOH
Other
Generally speaking, with the notable exception of Albania, the share of TV in the media mix tends to
correlate with the ATS (average time spent viewing) throughout the region. FYR Macedonia and Romania
have the highest level or ATS on commercial targets while Albania, the lowest. And this may be added to
the obvious fact that in this digital era, content viewing on multiple devices is already a well-established
habit. In Hungary, for example, multiscreen phenomenon is in place: 31% of the 16-44 years old
Hungarians are using devices simultaneously.
Print retains over 20% of media market share in Hungary (the highest share of Print in the region), Czech
Republic and Croatia.
2014 Average TV Viewing Time (hours/day)
7.6
Radio generally has a low share throughout the region, with the notable exceptions of Czech Republic,
Poland and Croatia, where it reaches 8%. Overall, with the exception of Poland, Radio shares are either
stagnating or decreasing.
6.5
3.1
3.6
3.1
4.1
4.0
5.1
2.1
2.0
2.8
2.8
3.7
4.0
4.7
3.5
3.9
5.5
5.8
6.2
5.5
It should also be noted that Albania is the country where TV and OOH gather 88% of the net media market
and Montenegro and Slovenia are the countries with the highest OOH share in the region.
6.7
In general, TV retains shares of spending between 50% and 60% in most countries with significant outliers
being Albania, FYR Macedonia and Bosnia & Herzegovina where the share of TV exceeds 70%, while at
the opposite point there is Czech Republic with below 45%. In Hungary, the fragmentation remained a
significant phenomenon: viewers continue to watch more and more cable channels, focusing on thematic,
while the share of main TV channels is decreasing.
13%
4.9
The continuous increase of the share of Digital in the overall media mix is most visible in countries like
Slovakia, Poland and Czech Republic, where it exceeds 20% of the whole media volumes. The driver for
the Digital growth is mainly the increasing interest for visual content (as is Poland, for example).
1%
Bosnia & Herzegovina
Poland
2014 brought few changes in CEE countries, regarding media market: in August 2014, Serbia aligned
with the EU regulatory framework in terms of the Electronic Media law. In Albania, digital out-of-home
supports are becoming more popular, especially after the reduction of highway billboards since 2013
law restrictions. Montenegro started in December 2014 the measurement of IPTV, while Slovenia and
Bulgaria now have alternative sources for audience data, providing more than one measurement system.
5%
Albania
Hungary
The third cluster consists of countries with a decrease rate of over 10% vs. 2008, which is the case of
Croatia, Hungary, Poland, Romania and Serbia which indicates over-cautious advertiser reactions.
6%
3.7
The large majority of countries had a negative evolution. For countries like Bosnia & Herzegovina, Bulgaria,
FYR Macedonia, Montenegro, Slovakia and Slovenia, the overall yearly decrease for the analysed period
was of below 10% and they make the second cluster.
100%
75%
5.2
In terms of the media markets size evolution for 2008-2014, we can identify three clusters:
Albania and the Czech Republic are the only countries with a positive evolution, being a minority in the
region.
Media Mix‐ 2014 Shares
0%
4.9
The CEE media market size map is also very heterogeneous, consisting on large markets like Poland and
Czech Republic with over 1 billion EUR in net value, medium markets like Hungary, Romania and Slovakia
with markets of over 250 million EUR and the rest of the countries, below 250 million EUR in net worth.
Albania
Bosnia & Bulgaria
Herzegovina
Croatia
Czech
FYR
Republic Macedonia
Romania
Serbia
Slovakia
18+, Urban
12
Slovenia
18‐49,Urban
ROMANIA 2015
13
All the CEE countries have an urban Internet penetration of over 60%. However, the usage picture is quite
heterogeneous with countries like Slovakia and Slovenia having a daily usage level in the urban population
of over 65%, while Albania and Hungary register below 50%.
82%
2014 General Smartphone Statistics
Romania
Serbia
Slovakia
Urban Reach
Bosnia & Bulgaria
Herzegovina
Urban Daily Usage
Croatia
Czech
FYR
Republic Macedonia
Romania
% of Population
73%
2,2
Serbia
0,9
69%
2,3
63%
41%
8,0
43%
85%
52%
73%
53%
51%
62%
40%
17,5
32%
0,3
66%
4,8
40%
1,1
81%
4,4
63%
46%
42%
42%
61%
72%
83%
50%
Albania
1,8
58%
3,0
92%
1,6
Slovakia
% of Internet Users
41%
49%
32%
28%
30%
61%
38%
44%
36%
30%
31%
45%
50%
54%
47%
49%
Serbia
Slovakia
Slovenia
In everyday life, the need for connection and self-expression is still growing, making social media the new
normal. With the exception of Serbia (32%), throughout the region, the number of Facebook users amount
to over 40% of the general population of each country. Poland has the highest Facebook penetration
(58%) referenced to the general population. Also, in the CEE region, Facebook users amount to more than
60% of the Internet users. It should be noted that Poland itself gathers 36% of all the Facebook users for
the whole region.
2014 General Facebook Statistics
1,4
32%
40%
Czech
FYR
Republic Macedonia
30%
35%
Albania
28%
27%
42%
79%
66%
76%
66%
68%
62%
71%
58%
51%
64%
50%
51%
44%
59%
76%
72%
78%
Croatia
57%
61%
78%
60%
Bosnia & Bulgaria
Herzegovina
55%
64%
74%
79%
2014 General Internet Statistics
Montenegro is leading the region in terms of urban coverage with over 60% of urban residents owning at
least one device. Poland, Czech Republic, Romania and Serbia are still lagging behind with only a third
of the urban population owning a smartphone. There are usually discrepancies between the national and
urban penetration due to the lower rural figures, with the exception of FYR Macedonia and Hungary where
both figures are (almost) equal.
Albania
Bosnia & Bulgaria
Herzegovina
Croatia
Czech
FYR
Republic Macedonia
Romania
Nationwide Reach
Slovenia
Urban Reach
Perspectives for 2015
In real terms, per capita disposable income in the whole region expanded by 11% vs. 2008, while it is
forecast to grow by 3.3% in real terms in 2015, according to International Monetary Fund estimates.
The increasing consumer income and expenditures across the CEE countries, supported by the region’s
better economic performance, don’t necessarily translate into media markets growth – most of the
countries in the CEE region expect a flat evolution or a marginal increase in 2015.
TV will continue to have leadership in the region, as it still provides a cheap source of entertainment to the
consumers, and is also affordable to the advertisers.
Digital media is expected to remain the most active ad revenue driver, as Internet coverage will continue
to grow in all CEE countries. Tablets and smartphones are more and more available for reasonable prices.
Additionally, more solutions for mobile devices and peer-to-peer services are available (like Blablacar in
Poland, or the controversial Uber, which is active in many European countries, including Romania, where
the Parliament is still debating on the subject).
Also, TV is expected to get closer to digital media due to increasing role of online video and the growing
usage of portable devices. Content convergence and digitization is expected to emerge in more and more
integrated communication platforms.
Slovenia
FB Users (mil.)
As primary communication and connectivity tools, the smartphones coverage and usage is continuously
increasing and diversifying, becoming more affordable and incorporating more and more advanced
technologies.
14
ROMANIA 2015
15
Romanian Economic
Outlook
Cristian Hostiuc
Editorial Director - Ziarul Financiar
Romania will have a more than 3% economic growth in 2015, higher than estimated, as a result of the rise in
domestic demand, steady recovery of the construction market, especially in the private sector, and an increase
in investments because of the tax incentives introduced in the fall of 2014 and the decline in borrowing costs,
that is bank interests.
Further increases of the minimum wage in addition to the wage raises in the private sector, especially in IT,
industry and construction, will drive domestic demand.
The ‘dramatic’ decline of leu interests has a positive impact on the economy and domestic demand for two
reasons:
the market, which, in the next few years, will help avoid a new real estate crisis with prices rising exponentially
beyond the purchasing power.
Inflation and exchange rate, Romania’s main problems last year, are now behind it, with the country seeing
better figures than it did during Ceausescu’s times of controlled prices.
Inflation will remain under 2%, maybe under 1% even, and the leu/euro exchange rate will move between 4.4 to
4.45 lei/euro, an extremely stable interval.
Considering the improvement of Romania’s position in foreign trade – the export growth pace is higher than the
import growth pace, the balance of payments and the current account are no longer a problem for the country.
1) People will start spending their money saved in the bank because of the low deposit interests.
If the National Bank did not step in to buy, foreign currency inflows would allow the exchange rate to drop
towards 4 lei to the euro.
2) Leu loans have become extremely profitable because of the interest decline. The three-month Robor index
stands at around 1.5% per annum now, compared with 5.5-6.5% three years ago.
Romania’s public finances are balanced, maybe ‘too’ stable, even. Romania has a budget deficit of less than
2% of GDP, which is extremely low and unfortunately does not help the economy in any way.
The National Bank has changed its monetary policy slightly in that it is putting pressure for lower interests on leu
loans in order to change the share of loans in the economy. Euro loans used to account for 60% of the total, and
are now down to 45%. This means foreign exchange risk on consumers’ wallets is lessening.
The tax cuts the government promised, the VAT cut on foods from 24% to 9% and for all products from 24%
to 20%, will give consumer spending and implicitly the economy a boost in 2015 and 2016, but there is the
question of how sustainable these cuts are, whether they can remain in place beyond election years.
The leu interest decline is freeing up spending money and making people more confident in the future.
The problem is that in the absence of governmental investments in the economy (highways), where the
government is seriously lagging behind, tax cuts cannot do much to help the economy. Romania needs more
economic and tax incentives to be able to achieve an over 5% economic growth per year over the next decade,
keep up with Poland and come close to Western Europe.
The improvement of the economy in Europe and the growth in Germany, Romania’s main export market, will
help exporting companies a lot, because they get orders, even though most of them are foreign companies.
Although the export growth pace is slowing down, the trend will not be reversed, because Romania remains a
good manufacturing base, with an increasingly skilled workforce over which many companies are beginning to
compete. This is why a low wage will no longer be a competitive edge in Romania, the skill will.
The crisis years led to a decline in the governmental investments and in those of the private sector, which
became much more reluctant, weighing a new investment much more carefully.
Industry will continue to grow and the IT sector is seeing a real leap. The contribution of the IT sector to the
economy has doubled to 6% of the GDP in the last four years, beating agriculture and being close to overtaking
the construction sector.
Foreign investments, on which Romania relied in 2000-2008, have not recovered yet, which is quite a serious
hindrance for the Romanian economy. From 8-9 billion euros a year, foreign investment dropped to 2-3 billion
euros a year, which is very little for the Romanian economy and for new job creation. Romania lost more than
500,000 jobs and 10 billion euros of the total annual wage amount (from 62 billion euros to 52 billion euros)
during the crisis, recovering only 170,000 in the past three years.
The trend of the IT sector is expected to continue over the coming years, while salaries in the sector should keep
increasing, which will drive domestic demand.
The banking sector, badly hurt by non-performing loans, is recovering rather slowly, which is not helping the
economy in any way. Bankers are no longer lending money to entrepreneurs that easily, for which reason many
companies are suffering from the lack of funding, which does not allow them to develop.
This IT competency of Romania cannot be easily replaced, because it is not a low-cost area where investment
decision is only based on price.
Agriculture will continue to support the economy with both production and investment. Since margins in the
sector are much higher, many investors are beginning to allocate significant financial resources to it. There are
areas in Romania where equipment and yield per hectare are now at the same level as in Western Europe.
Construction sector, especially the residential area, is making a spectacular recovery after the steep decline in
2009-2012. Developers are back on the market and the government-backed ‘First Home’ scheme is helping
sales of homes. A correlation of the home prices with the level people are willing to pay has created balance on
16
Overall, Romania is in a good economic and financial position, its economic growth is higher than the European
average and the risk of default is at an all-time low, yet it is not doing that well on a micro level, where companies,
especially the Romanian ones, have a hard time recovering, are not out of the hospital yet.
The people, quite significantly affected by the crisis – the wage decline, the loss of jobs, are still reluctant to
open their wallets for additional consumer spending, beyond the bare necessities. However, a consumer
spending rebound is visible, and the trend will continue. The growth of the auto market, the recovery of the home
appliances market, the tourism industry growth, the increase in investments in clothing show that Romanians
are more confident in the future.
ROMANIA 2015
17
Consumer trends
THE ROMANIAN CONSUMER: SHOPPING TRENDS, AND PROFILES
The Trends
The worldwide economic depression originated at the end of 2007 in the United States of America by the
housing bubble, which led the American economy to slip into recession. This, in turn, generated the failure of
many prominent financial institutions throughout 2008, leading to the loss of millions of jobs around the world.
The bailouts made by many governments to save banks also led to an increase on the national deficits.
Romania felt the brunt at its high peek long after the western societies – the effect on the economy was delayed
up to two years.
Thus, the consumption of goods was among the first indicators of the economic depression, as we can see from
the general consumption trend of the last seven years – it seems that the real impact can be placed somewhere
around 2009-2010, as depicted in the graph below:
The first category revived was food, non-alcoholic drinks and household cleaners, in the first half of 2012.
Coffee, cocoa, tea, self-care products and pet food categories came back on a positive uphill trend at the end
of 2012. Beer had an almost flat evolution, after the decrease of 2010, showing the first signs of positive trend
in 2014, while alcoholic drinks consumption is now at the same levels as 2008, after three years of decreasing
trend.
The fact that only the alcoholic beverages consumption remained on a slight decreasing trend could indicate a
more realistic approach from consumers, focusing on day-to-day basic needs, and leaving aside ‘luxury’ or nonnecessary goods, like spirits or champagne, switching to more affordable products, e.g. in-house traditional
production. This finding is consistent with the latest data available, which shows that beer and alcoholic
beverages are the categories with higher reach amongst non-main shoppers, along with special food for pets.
Weekly General Supply
by FMCG Category
Fresh
Vegetable/Fruits
Weighted Average of General Supply of FMCG products
50%
Food
(Meat/Milk/Eggs/ Etc)
OCT07-OCT08
OCT08-OCT09
OCT09-OCT10
MAY11-JAN12
OCT11-NOV12
JAN12-DEC13
Market / Booth
57%
48%
54%
53%
Supermarket
Store 3-10 Counters)
40%
36%
Hypermarket
(Store >10 Counters)
Beer
23%
26%
Cash&Carry
6%
5%
DIY Stores
4%
3%
Romanian Internet Sites
(Www.Adress.Ro)
4%
5%
source: Initiative estimates, based on SNA Focus / BRAT, weighted sample
Percent from Urban 14-64, urban area>50k inhabitants
Household Cleaners
3%
77%
67%
67%
26%
26%
Self Care Products
General Supply by FMCG Categories - absolute differences vs. Oct07-Oct08
Small Neighbourhood
Stores
Coffee/Cocoa/Tea
NOV12-NOV14
The decreasing trend of consumption has been maintained up to the end of 2011, and possibly to the beginning
of 2012 –according to the FOCUS survey, carried out by BRAT – one can see the slight revival of the consuming
trend in 2012. Since then, general consuming trend seems to be uphill.
82%
72%
67%
Non Alcoholic
Beverages
45%
Weekly General Supply by the
Point of Sale
12%
13%
11%
11%
24%
23%
Special Food
For Pets
7%
8%
Foreign Internet Sites 3%
(Www.Adress.Com) 4%
Alcoholic Beverages
7%
9%
Electronics / Appliances 2%
Stores 2%
Special Food For <3
Yrs. old Children
6%
5%
Specialized Stores For 2%
Mobile Phones & Accessories 2%
Furniture / Sanitary 2%
Installation Shops 1%
2%
main shopper non-main shopper
source: SNA Focus CAPI NOV12-NOV14/ BRAT
1%
0%
-1%
Food
Non Alcoholic
Drinks
Beer
Oct 08 - Oct09
Alcoholic
Drinks
Oct 09 - Oct10
Coffee/
Cocoa/Tea
May 11- Jan12
Household
Cleaners
Self Care
Products
Oct11- Nov12
Special Food
For <3 Yrs
Old Children
Jan12- Dec13
Special Food For
For Pets
Nov12- Nov14
Keeping in mind the weekly shopping habit split by the point of sale, one can see that the traditional trade
(market / booth and the small neighbourhood stores) prevails as the main sources for purchasing FMCG
products, especially for non-alcoholic beverages, coffee and beer (see the graph below). The main FMCG
products bought (at least once per week) remained Food and Fresh vegetables / fruits. Yet, it may be stated that
the people which are not main shoppers of the household, are more inclined to shop online.
18
ROMANIA 2015
19
At the same time, consumers are becoming more demanding and choose private label products if they can get a
similar quality. The highest preference is reflected for food, home care and personal care private label products.
Weekly General Supply by Point of Sale & Category
Special Food For Pets
7%
Gender
Special Food For <3 Yrs. old
Children
Profile -Yes
source: SNA Focus CAPI NOV12-‐NOV14/ BRAT
(urban 14-64)
Although initially regarded as low quality products, Romanians’ preference for private label products is on the
increase. The main driver of consumers’ preference is represented by the prices, which are up to 15% - 25%
below other brands of similar quality.
MAY11-JAN12
OCT11-NOV12
JAN12-DEC13
Profile - No
Index -Yes
No Children
With Children
5+ Persons
3 Persons
4 Persons
1 Person
2 Persons
Category C
Category DE
Category AB
Esomar Social Household No. of Persons (Gr) Household
Grade (3 Grades)
No. of
Children <14
Years
Index -No
source: Focus CAPI OCT13-NOV14/ BRAT
Socio-Demographics - Online Shopping Frequency
90%
119106
83 95
138 124145
108
70
64 87 50 39
10 30
69 94
145108 109
10590 87133 101126 95112 97 95 10682 102119 89 98 11083 91 87 79 88 108112 116115 133102 10594 85117
65
NOV12-NOV14
30%
Gender
Food
Non Alcoholic
Drinks
Coffee / Cocoa /
Tea
Beer
Self Care
Products
Age (6 Gr)
Civil Status
Profile-Weekly
Profile-Rarely
Index -Weekly Index -Rarely
City Size
Esomar Social Grade
(3 Grades)
Household No. of Persons (Gr)
With Children
No Children
4 Persons
5+ Persons
2 Persons
3 Persons
1 Person
Category DE
Category C
Category AB
<50K Inhabitants
Over 200K Inhabitants
50K - 200K Inhabitants
High
Level Of Education
Household
Special Food For Alcoholic Drinks
Cleaners / Care
Pets
Bucharest
Low
Middle
Single (Divorced /
Separated / Widowed)
65-74 Years
Married / Concubinage
10%
55-64 Years
45-54 Years
35-44 Years
25-34 Years
Women
14-24 Years
Men
0%
20%
0%
City Size
Online shopping, although gaining more and more importance in urban Romanians lives, is still underdeveloped
in our country. Only 11% of internet users shopped online, much lower than the European average of 60%,
according to Eurostat figures. Although the country benefits from high infrastructure performance, ranking in
top 10 in terms of internet connection speed, only 4.5% of Urban population aged between 14 and 74 years old
made a habit from shopping weekly on websites (local, or foreign). The more frequent online buyer are rather
single young men, while the profile of the less frequent online buyer shows more probably a highly educated
person aged below 45 years old, having one child or more.
General Supply by Categories - Private Brands Consumption
40%
Civil Status Level Of Education
Market/Booth
6%
50%
Age (6 Gr)
<50K Inhabitants
7%
Over 200K Inhabitants
Alcoholic Beverages
50K - 200K Inhabitants
11%
Small
Neighbourhood
Stores
High
12%
Household Cleaners
0%
Bucharest
Self Care Products
Supermarket
(Store 3-10
Counters)
Low
24%
Middle
Beer
10490 90125 83143 79153 10198 97107
83142 11561 67185 10490 10587 11073 10879 11173 10490 94115 87134 98104 10879 99101 10489 10296 96110 10588 98105 97107 134
13
Single (Divorced /
Separated / Widowed)
26%
90%
Married / Concubinage
Coffee / Cocoa / Tea
Hypermarket
(Store >10
Counters)
55-64 Years
53%
65-74 Years
Non Alcoholic Beverages
Cash&Carry
45-54 Years
74%
25-34 Years
Food (Meat / Milk / Eggs
etc.)
The Profiles Analysis
The socio-demographic profile of the respondents based on their shopping role in the household shows that
main shoppers are rather persons aged 25+, having mid-high education, living in the big cities, while the persons
who are not main shoppers in their household are more likely to be mostly single young men resident in smaller
cities and living in extended family households.
Socio-Demographics - Main Shopper?
35-44 Years
79%
60%
Women
Fresh Vegetable / Fruits
40%
14-24 Years
20%
Men
0%
Household No.
of Children <14
Years
source: Focus CAPI OCT13-NOV14/ BRAT
20
ROMANIA 2015
21
The main challenge for the online shopping in Romania continues to be the reluctance to buy products without
seeing them first, and the low level of confidence regarding online payments. This can be seen in the Eurostat
data presented below, where Romania is ranked last in Europe, by the percentage of individuals who used
internet for buying products or services in the last year. Constantly, Bucharest area figures were much higher
than the country average.
Individuals who ordered goods or services over the internet for private use
Last online
purchase: in the
12 months
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
FYR Macedonia
France
Greece
Hrvatska
Hungary
Iceland
Ireland
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Norway
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom
2010
2011
2012
2013
2014
42
38
5
14
18
27
68
17
59
4
54
12
14
18
45
36
17
11
60
38
67
71
29
15
4
33
27
24
66
:
5
67
44
43
7
17
21
30
70
20
62
:
53
18
17
22
49
43
20
16
65
45
69
73
30
18
6
37
31
27
71
:
:
71
48
45
9
23
21
32
73
23
65
5
57
20
23
25
54
46
27
20
68
44
65
76
30
22
5
45
34
30
74
:
9
73
54
48
12
26
25
36
77
23
65
6
59
25
26
28
56
46
32
26
70
46
69
73
32
25
8
44
36
32
73
:
10
77
53
54
17
28
27
43
78
49
68
11
62
26
28
32
66
50
34
26
74
47
71
77
34
26
10
48
37
37
75
67
14
79
Last online purchase:
in the 12 months
Romania
Bucuresti - Ilfov
North-West
Center
North-East
South-East
South - Muntenia
South-West - Oltenia
West
2010
2011
2012
2013
2014
4
8
2
5
3
3
2
3
4
6
14
4
8
5
3
4
6
3
5
10
5
6
7
4
5
1
3
8
20
9
7
7
4
6
10
7
10
25
9
7
7
8
7
8
11
In this context, major retailers and banks have been
joining forces in their attempt to make consumers
shift from the cash payment habit towards online
shopping, by creating more shopping cards or simply
by offering additional benefits for online payments.
source: EUROSTAT; unit: percentage of individuals
Urban Romanian consumers tend to be more active, therefore the location of shops is an important factor
for consumers with higher income who are willing to give up better prices in exchange for more convenient
shopping in small neighborhood stores.
For consumers with low – mid income, private labels are expected to grow in variety, given the increasing
preference for more affordable products.
Online shopping expected to be on the rise, as besides the time saving facility it offers the consumers the
option of returning or exchanging the purchased products, without having to justify for it. More and more online
shops are expected to be launched in modern retail, mainly with coverage in Bucharest and major cities. Mobile
technology will continue to get an increasing role in consumers, path to purchase, in terms of researching the
offers and comparing prices, as well as in finalizing the purchases online.
22
ROMANIA 2015
ROMANIA 2015
23
Media Market
Analysis
Overview
2014 reflected a total market slight increase (+3% vs. 2013), after several years of continuous decrease and is
expected to have the same trend in 2015.
Total net Ad‐spend by medium (Million €) ‐ Estimation
600
In 2014 the TV market ended in an average of 3.5% vs. 2% deflation in 2013 and a higher level of loading during
All Day (07:00-26:00) from 66% in 2013 to 72% in 2014. The CPM (cost per thousand) dropped to an average of
2 EUR for All urban 18-49 and 0.9 EUR for All urban 4+. The total GRP30” inventory sell out increased by 6.7% in
2014 and the TV market net budget reached 198 Mio EUR (+3% vs. 2013) for the first time since 2009.
Despite all the changes which raised the competition between main groups, CME remained leader with 50%
share of investemts, followed by INTACT with 27%, Kanal D 8%, Prima TV 4% and SRTV (TVR1 & TVR2) with 2%.
500
400
300
200
100
0
2008
2009
2010
2011
2012
2013
2014
2015 est
Total (Mil €)
TV
Print
Radio
OOH
Internet
540
345
316
309
303
305
313
322
337
222
209
200
193
193
198
205
82
37
26
24
22
19
17
16
35
25
21
20
19
19
18
18
70
42
33
31
29
28
28
27
16
19
26
34
41
46
51
56
Source: Initiative
In 2014 TV increased by 3% vs. 2013, OOH remained stable, radio kept the investment levels (0% vs. 2013),
online was the only medium with major growth (+10% vs. 2013), while print dropped massively (-10% vs. 2013).
Internet
15,2%
Radio
6,1%
Print
6,3%
2013
Internet
17,4%
Internet
16,3%
OOH
8,9%
TV
63,3%
Radio
5,9%
Print
5,6%
OOH
8,4%
2014
TV
63,5%
Radio
5,7%
Print
4,9%
EST
2015
TV
63,6%
Source: Initiative database
More precisely, in 2014 TV gathered the highest share of advertising revenue, with 63% share of investment
(198 Mio EUR net), Online followed on 2nd place with 16% (51 Mio EUR net) and OOH on 3rd with 9% (28 Mio
EUR net). Radio and Print had similar shares (6%), with comparable budgets: 18 Mio EUR & 17 Mio EUR.
24
In terms of ratings evolution, 2014 reflected the same top 3 ranking as in 2013: Pro TV leader, followed by
Antena 1 and Kanal D. Antena 3 ranked 4th, showing a better performance compared to Prima TV and Acasa
TV. Talent shows continued to dominate TV programming in 2014, given the high preference Romanians have
shown constantly for this type of productions.
Internet maintained in 2014 its growing trend of digital penetration, spend time and frequency of usage.
Romania was still bellow CE average level in terms of penetration, but is on 6th place (worldwide) in terms of
internet speed.
In 2014 Online Market reached 51 Mio EUR net, reflecting an increase by 10% vs 2013 (46 Mio EUR).
SNA Focus revealed there were more than 68% of people aged 14-64 y.o. (10.3 million people) using internet, of
which 56% daily, while Ancom registered the split between urban & rural to be 63% vs. 37%, showing a growing
potential for the rural areas.
Online stores, travel or real estate websites are growing in users’ preferences, while job offers or selling / buying
2nd hand cars registered a small decrease.
The impact of digital on other media is also an interesting topic reflected by the growing trend of “listen to radio
online” or “watch TV online”, according to SNA – FOCUS.
Facebook continued to grow in 2014, reaching more than 7.8 million accounts, with high penetration on both
desktop and mobile. YouTube Romania users growth was up to +6.9 million and LinkedIn grew from 1.25
million in 2013 to +1.5 million, which can be considered a significant increase considering its more niche use.
Market share in 2013‐2015 (net ad‐spend by medium)
OOH
9,1%
Television remained the leading media channel used by marketers despite the major changes of main groups:
CME management changed, Intact Group imported a large part of the reality shows and VIP’s from Pro TV,
Prima TV changed owners, from Pro Sieben to Prima Broadcasting Group.
The number of total monitored channels remained stable (59) and the reception via Cable (Digital and Analogue)
increased in 2014.
Programmatic certainly grew in 2014, but is expected to have a significant boost next years, fuelled by very
high expectations from all parts, from brands to agencies, and last but not least from local publishers. Agora
launch in 2014 was one of the major events of the year, its presence having an important contribution to the
programmatic “buzz”, especially on the local publishers’ side.
Mobile marketing is still ruled by SMS in Romania, even though the use of mobile services is growing.
There were 12 million mobile broadband connections in Romania at the end of 2014, out of which 89% for 3G
and 3G+. This results in a 12% YOY increase of mobile internet penetration from the end of 2013. It is estimated
that 1 out of 3 Romanians now owns a smartphone, this increasing the overall smartphone penetration by +21%
in 2014, to 34% of the population owning such device.
Romanians were also drawn to the multiple functionalities offered by tablets, with an estimated penetration
within the population of almost 13% tablet ownership in 2014.However, despite the dynamic growth, budgets
allocated for mobile still represent a small share of the total online budgets.
ROMANIA 2015
25
2014 main categories are similar to 2013, with “Mobile telecommunications”, “Cosmetics, hygienic, hair care &
cleaners” and Medical products & services” having the highest level of investment.
“Retailers” continued the ascending trend, while “Beer” kept stable. “Electronics & domestic appliances” used
the online commerce & Black Friday events to increase sales, leading towards bigger advertising budgets,
“Chocolate products” and “Confectionaries” also registered a slight increase vs. 2013, while “Banking services”
and “Milk products” continued to drop.
26
liances
ng
s
se
& in
surance
, h o n ey
8
mil €
rie
s
12
mil €
ar
,c
e
onfection
a
p ro
cialities
6
mil €
pe
pp
a
o m estic
Beer
rvi
ce
Retailers
&d
at
Chocol
Top Investors
Medical & optical
products & services
20
mil €
s
g
Print industry continued to be affected by the collapse of the distribution networks, their insolvency leaving
the publishers with large amounts of account receivables. Insolvency was requested by several media houses,
some of them very big, such as Editura Evenimentul Zilei & Capital, Mediafax Group and Intact Publishing.
Readership continues to decrease among all print types, independent of the periodicity.
However, readers preference for specific editorial content remained stable: women continued to show a high
preference for monthly glossy magazines and weekly titles where they are more likely to find advice and practical
info about cooking, personal care, household maintenance & decoration, health & nutrition. Men main interest
remained general interest newspapers and sports.
In terms of gross (rate card) ad revenues, Ringier was ranked 1st, with a major increase to 21% market share
(vs. 14% in 2013), followed by Adevarul Holding (19% market share vs. 15% in 2013) and Burda International –
Sanoma Hearst, with 10% market share.
Releasing online versions and creating complementary content between print and digital publications editions
continues to represent a solution for the publishers to reduce costs, consolidate readers’ loyalty and make their
businesses profitable.
36
mil €
9
mil €
Other su
At urban level, Kiss FM (14.5%), although dropping from 15.8% in 2013, remains leader at a comfortable distance
from Radio Romania Actualitati (12.4%) and Radio ZU (12%), both on a positive trend. Europa FM (10.4%)
remained 4th with stable performance, while Pro FM (9.8%) follows on 5th place at a very small difference.
Mobile
telecommunications
services
Cosmetics, hygienic,
hair care
& cleaners
ki
B an
Radio market was stable in terms of advertising investments, while Radio networks strived to consolidate
market shares through marketing campaigns, events and integrated media packages with social media.
MGSI strengthened its leadership regaining 2 pp of market share to 38%, followed on 2nd place by Media
Camina Group with a marginal growth (from 21% to 22%), while Regie Radio Music keeps 3rd place despite
the drop in market share from 19% to 16%. Pro FM ranked 4th, with 16% and RRA, ranked last with 8% market
share.
In 2014, the daily Radio audience increased significantly in Bucharest and also at urban level. The trend
was registered during weekdays as well as during weekend, with a performance increase between 1.2% (in
Bucharest during weekdays) to 2.6% (weekdays at urban level).
In 2014 Radio ZU (14.9%) consolidated its leading position in terms of average rating in Bucharest, followed
by Radio Romania Actualitati (12.3%) and Kiss FM (11.4%) which increased its performance and reduced the
gap vs. the 2nd place. Magic FM (8.9%) followed at a significant distance, while Pro FM (7.4%) and Europa FM
(7.2%) remained on tight positions on 5th and 6th places, although both increased in rating in 2014.
50
mil €
19
mil €
c
Top 3 vendors are: EpaMedia – 28% share of market, Affichage Romania – 17%, Getica – 10%.
Backlight remained the predominant format in Romanian OOH Industry, with a 45% share, followed by
billboards with a 19% share and city lights/buss-shelters with 14%. The remaining 22% are composed by rollovers, meshes, prisms, unipoles, flags and other special projects.
32
mil €
Electroni
OOH market kept stable vs. 2013. The approval of new legislation is closer than never before and 2014 was the
first in many years to have only Romanian Owners, as the most important suppliers (Euromedia and Affichage)
were taken over from foreign Shareholders.
ducts &
s
6
mil €
Mi
lk Products
Source: Initiative database
The rebranding process of Telekom and Romtelecom entering into the mobile segment were the main events in
“Mobile telecommunications” category.. FMCG big companies such like P&G, L’Oreal, Reckitt Benckiser and
Unilever had comparable investments to 2013 or slightly smaller, which resulted in the slight drop of “Cosmetics,
hygienic, hair care & cleaners” category.
E-Mag & Altex were the main investors in “Electronics & domestic appliances” but also smaller investors emerged,
such as Cel.ro which started to be active on TV. Lidl kept the leading position with growing investment in the Retailers
category.
Some other smaller categories dropped in 2014: “Cars & 4x4 vehicles”, “Coffee & coffee specialties”, “Carbonated &
Non-carbonated drinks”, “Laundry products”.
According to Initiative’s estimates, in 2015 the total net media market will continue 2014 actions, reaching 322 mil
EUR (+3.1% vs 2014) with very small variations for TV (+3,5%), slight decrease for OOH (-2%), flat evolution for Radio
(0%), cutting budgets for Print (-10%) and the same positive trend for Online (+10%).
TV market is estimated to reach 205 Mio EUR, and also a slight price increase of 1% - 2%.
Pro TV will set another trend, an expensive one this time, by launching new formats, new reality shows and cooking
shows. Some of them are already on TV: “I’m a celebrity, get me out of here” from South Africa and “The Farm”, both
with very good audience results.
Antena 1 is expected to try to keep the 2nd position, as long as Kanal D steadily gains audience and brings successful
Turkish series on the market.
Online: Programmatic expected to grow significantly, Facebook and Google will play an important role, offering
efficient platforms and great targeting capabilities to run video ads. An important player of top ten is Olx.ro which
was responsible for the major acquisition of 2015 by buying its main competitor, Tocmai.ro, after a tough fight on the
Romanian classifieds market.
Mobile advertising expected to grow - available reach, traffic & time spent increase.
OOH The deadline of 15th of October for the implementation of the new OOH law will set a new start for OOH market
and it will be followed by 2016, another election year. As mentioned before, most of the vendors keep on expanding
their networks.
Radio stations will grow their presence in social networks (especially Facebook) and will continue to be flexible and
open to special projects in 2015 keeping a flexible policy and a big opening to special projects (creative contests,
shows relocations in unconventional locations, branded programs).
Print will face the polarization of the glossy magazines in two media trusts, Ringier and Burda which is expected to
determine a fight for budget share, most probably supported with aggressive package offers and exclusivity deals.
ROMANIA 2015
27
Television
2013 - 2014 Sold GRP30” (‘000) by month (buying target)
250
Overview
172.9
149.1
156.2
154.4
164.4
191.3
155.01
186.0
159.2
148.8
140.3
127.0
143.0
182.3
171.1
161.2
153.9
150
154.4
139.3
139.4
122.6
116.8
100
101.6
97.7
50
De
c14
No
v14
Oc
t-1
4
Se
p14
Ju
l-1
4
Au
g14
Ju
n14
M
ay
-1
4
Ap
r-1
4
M
ar14
Fe
b14
Ja
n14
De
c13
No
v13
Oc
t-1
3
Se
p13
Au
g13
Ju
l-1
3
Ju
n13
M
ay
-1
3
Ap
r-1
3
M
ar13
0
Fe
b13
Reception via Cable (Digital and Analogue) continued to increase in 2014, while Direct-to-home (DTH) slightly
decreased vs. 2013.
200
Ja
n13
In 2014, Television remained the leading media channel used by marketers, being highly preferred not only by
big advertisers but also by smaller inverstors. The TV market went through some major changes, marked by
CME management change and new Intact Group programs grid , which imported a large part of the shows and
VIP’s from Pro TV. Prima TV also changed owners, from Pro Sieben to Cristian Burci, who also owns Adevarul
Holding.
The fact that TV is still the most important media channel can also be seen by the high number of monitored
channels: 59 in 2014 (same in 2013), with minor changes such as GSP TV becoming ZU TV, Antena 2 being
re-named Antena Stars, Diva Universal named simply Diva, PV TV named Fishing & Hunting Channel. Two
channels entered the monitoring system, Digi 24 and Look TV, while Sport1 and VH1 dropped out.
GRP30" buying target
Source: Kantar Media & Initiative Media Estimation
Reception Type
2010
2011
2012
2013
2014
Analogue cable
Digital cable with receiver
Direct To Home (DTH)
Terrestrial
66.7
4.1
26.2
5.8
59.9
9.8
26.1
6.2
56.6
14.1
24.9
4.4
63.7
15.9
24.4
3.8
64.1
17.3
23.3
3.9
Source: Kantar Media Romania
Even the ratings evolution was in favor of most of the TV channels, last year main stations changed their approach
in terms of sales: the demand in clutter months outchead the stations posibilities to deliver and created an
inflationist expectation for 2015.
In 2014 the TV market ended in a slight deflation of 3.5% vs. 2% deflation in 2013 and a higher level of loading
during All Day (07:00-26:00) from 66% in 2013 to 72% in 2014. The CPM (cost per thousand) dropped to an
average of 2 EUR for urban population All 18-49 and 0.9 EUR for urban population All 4+
Despite the whole changing process that raised competition between main groups, CME kept the leading
position with 50% share of investments, followed by INTACT with 27%, Kanal D 8%, Prima TV 4% and SRTV
(TVR1 & TVR2) with 2%, so the situation looks pretty much the same with 2013.
2013 – 2014 Average Inventory sold % Min (07:00-‐26:00) and prime time vs. legal limit
140%
120%
100%
80%
60%
40%
The total GRP30” inventory sell out increased by 6.7% in 2014 and the TV market net budget reached 198 Mio
(+3% vs. 2013), for the first time since 2009.
20%
Years
2010
2011
2012
2013
2014
Buying target GRP30" (000) sold
Share% of TV monitored (all 18-49 urban)
Inventory sold % minutes
1745
88%
76%
1774
92%
76%
1703
85%
68%
1736
85%
66%
1852
86%
72%
Source: Kantar Media Romania,, Initiative estimates
The total GRP30” sold in 2014 by the TV channels was 1.85 Mio GRP30” of which 35% were sold by CME, 29%
by INTACT, 10% by Kanal D, 5% by Prima TV, 4% by SRTV (TVR) .
28
AVG all day
De
c14
No
v14
Oc
t-1
4
Se
p14
Ju
l-1
4
Au
g14
Ju
n14
M
ay
-1
4
Ap
r-1
4
M
ar14
Fe
b14
Ja
n14
De
c13
No
v13
Oc
t-1
3
Se
p13
Au
g13
Ju
l-1
3
Ju
n13
M
ay
-1
3
Ap
r-1
3
M
ar13
Fe
b13
Ja
n13
0%
AVG PT
Source: Kantar Media & Initiative Media Estimation
Channels Performance and Profile
2014 reflected the same top 3 TV stations ranking as in 2013: Pro TV kept the leading position (Rtg. 4.5%, Shr.
19.4% / All 18-49 urban), followed by Antena 1 (Rtg. 3.4%, Shr. 14.7%) and Kanal D (Rtg. 1.4%, Shr. 6.2%).
Antena 3 has placed 4th with Rtg. 0.9%, Shr. 3.9%, showing a better performance compared to Prima TV (Rtg.
0.9%, Shr. 3.7%), and Acasa TV (Rtg. 0.8%, Shr. 3.2%).
ROMANIA 2015
29
Comparable performance was noted for National TV (Rtg. 0.6%, Shr. 2.6%) and TVR1 (Rtg. 0.6%, Shr. 2.5%)
and also for Romania TV (Rtg. 0.5%, Shr. 2.1%) and Antena Stars (Rtg. 0.5%, Shr. 1.9%).
Overall, News stations achieved a higher audience vs. 2013, due to the viewers’ high interest for elections (talkshows, debates, interviews), while TVR1 kept the audience attention with FIFA World Championship, Olympic
Games and UCL transmissions.
Talent and cooking shows continued to dominate the TV programming in 2014, given the high preference
Romanians have shown constantly for this type of productions. During 2012 - 2014 “Romanii au talent” was the
most appreciated talent show, followed by “Vocea Romaniei”, both keeping high performance as in previous
years. “X-Factor” remained the most performing show on Antena 1. Other formats (local sitcoms, series,
telenovelas) almost disappeared from Prime Time, with one exception - Las Fierbinti.
In 2014, top 10 TV stations gathered 60.2% of the total audience share of All 18-49 urban population, basically
the same as in 2013, although the players performed slightly different: Pro TV, Antena1, Antena 3, TVR 1,
Antena Stars and Romania TV increased audience, while Prima TV, Kanal D and Acasa TV dropped vs. 2013.
Overall the average break audience decreased by 2% in 2014 vs 2013 due to sell out rate increase (longer
advertising breaks).
The audience profile analysis reveals that PRO TV and Prima TV audience is balanced between genders, while
Antena 1 and Kanal D had a higher affinity for women audiences. Antena 1 and Kanal D are preferred mostly
by viewers from small and medium urban, compared to Pro TV and Prima TV which are watched more in large
urban. Pro TV and Prima TV had a younger audience profile than the rest of generalist channels.
Pro TV Profile (Affinity Index)
2013 – 2014 Monthly Dynamic – Time Bands Analysis
(Rtg%, All 18-49 urban – top channels, 07:00-26:00)
Bucharest
7
Urban 200 K+
6
5
Pro TV
4
Antena 1
Kanal D
3
Antena 3
Acasa
2
Men
150
Antena 1 Profile (Affinity Index)
Women
Bucharest
Social grade AB
100
Urban
100 K-200K
Social grade C
Urban 200 K+
Women
Social grade AB
100
Social grade C
Urban
100 K-200K
50
Urban
30 K-100K
Men
150
50
Social grade DE
0
Urban 30 K
Age 4-11
Urban
30 K-100K
Social grade
DE
0
Urban 30 K
Age 4-11
Prima TV
1
TVR 1
Age 65+
Age 12-17
Age 65+
Age 12-17
Realitatea TV
0
De
c14
No
v14
Oc
t-1
4
Se
p14
Ju
l-1
4
Au
g14
Ju
n14
Ap
r-1
4
M
ay
-1
4
M
ar14
Ja
n14
Fe
b14
De
c13
No
v13
Oc
t-1
3
Au
g13
Se
p13
Ju
l-1
3
Ju
n13
Ap
r-1
3
M
ay
-1
3
M
ar13
Ja
n13
Fe
b13
Age 55 - 64
Source: Kantar Media
Age 45 - 54
Age 18 - 24
Age 35 - 44
Kanal D Profile (Affinity Index)
Bucharest
2012 – 2014 Talent Shows Performance (Rtg%, All 18‐49 urban)
21.5
21.3
20.8
Urban 200 K+
15
10
5
12
13.5
4.9
6.1
8.7
4.9
8.7 7.7
6.8
7.7
Urban
30 K-100K
10.8 9.7
5.3
6.9
6.8 6.5
5.4 5.5
0
2012
Romanii au talent (Pro TV)
Te cunosc de undeva (Ant 1)
X Factor (Ant 1)
Romania Danseaza (Ant 1)
30
2012
Vocea Romaniei (Pro TV)
Next Star (Ant 1)
Masterchef (Pro TV)
Junior Chef (Ant1)
Women
Bucharest
Social grade AB
150
Social grade C
Urban 200 K+
Top Chef (Ant 1)
Hell’s Kitchen (Ant 1)
Social grade DE
0
Urban 30 K
Age 4-11
Age 12-17
Age 55 - 64
Age 45 - 54
Age 18 - 24
Age 35 - 44
Men
150
Women
Social grade AB
100
Social grade C
Urban
100 K-200K
50
Age 65+
2014
Age 35 - 44
Prima TV Profile (Affinity Index)
50
13.2 13.1
8.1
200
100
Urban
100 K-200K
20
Age 18 - 24
Age 25 - 34
Men
25
Age 45 - 54
Everybody’s eyes were on the tough competition between Pro TV and Antena 1, both stations improving their
programming, launching new shows (“O saptamana nebuna, nebuna!”, “Junior Chef”) or continued the existing
successful ones (“Masterchef”, “Las Fierbinti”, “Romanii au Talent”, “Te cunosc de undeva,” “X Factor”).
Age 55 - 64
Age 25 - 34
Age 25 - 34
Urban
30 K-100K
Social grade
DE
0
Urban 30 K
Age 4-11
Age 65+
Age 12-17
Age 55 - 64
Age 45 - 54
Age 18 - 24
Age 35 - 44
Age 25 - 34
ROMANIA 2015
31
TVR1 Profile (Affinity Index)
Men
200
Bucharest
Urban 200 K+
Women
100
Urban
100 K-200K
Social grade C
Urban 200 K+
Social grade C
Urban 30 K
Age 4-11
Urban 30 K
Age 65+
Age 12-17
Age 55 - 64
Age 35 - 44
Age 55 - 64
Age 18 - 24
Age 45 - 54
Age 25 - 34
Age 35 - 44
300
Bucharest
Men
Men
300
Bucharest
250
Urban 200 K+
Social grade AB
100
Urban
30 K-100K
50
Social grade DE
Urban
30 K-100K
Age 4-11
Urban 30 K
0
Urban 30 K
Urban
100 K-200K
Men
200
Age 12-17
Age 55 - 64
Age 45 - 54
Age 35 - 44
Age 25 - 34
Social grade C
150
100
Social grade
DE
50
0
Realitatea TV Profile (Affinity Index)
Bucharest 250
Urban 200 K+
Men
200
Urban
100 K-200K
Bucharest
Social grade AB
150
Social grade C
100
50
Urban
30 K-100K
Social grade DE
0
Urban 30 K
Age 4-11
Social grade AB
Social grade C
100
50
Urban
30 K-100K
Social grade DE
0
Urban 30 K
Age 4-11
Age 65+
Age 12-17
Age 55 - 64
Age 45 - 54
32
Age 18 - 24
Age 35 - 44
Age 35 - 44
Age 25 - 34
Age 25 - 34
Age 45 - 54
Romania TV Profile (Affinity Index)
Urban 200 K+
Men
250
200
Urban 200 K+
Urban
100 K-200K
Men
200
Women
Social grade AB
150
Social grade C
100
50
Urban
30 K-100K
Social grade
DE
0
Urban 30 K
Age 4-11
Bucharest
Social grade AB
Social grade C
100
50
Urban
30 K-100K
Social grade
DE
0
Urban 30 K
Age 4-11
Age 65+
Age 12-17
Age 55 - 64
Age 45 - 54
Age 18 - 24
Age 35 - 44
Age 25 - 34
Age 18 - 24
Age 35 - 44
Age 25 - 34
Age 65+
Urban 200 K+
Urban
100 K-200K
Men
200
150
Age 45 - 54
Bucharest
Social grade AB
Social grade C
50
Social grade DE
0
Urban 30 K
Age 4-11
Age 65+
Age 12-17
Age 55 - 64
Age 45 - 54
Age 18 - 24
Age 35 - 44
Age 25 - 34
Age 18 - 24
Age 35 - 44
Age 25 - 34
TLC Profile (Affinity Index)
Women
100
Urban
30 K-100K
Age 12-17
Age 55 - 64
Euforia Profile (Affinity Index)
Women
150
Urban
100 K-200K
Age 12-17
Age 55 - 64
Age 18 - 24
Bucharest
150
Urban
100 K-200K
Age 12-17
Age 45 - 54
Women
Acasa TV Profile (Affinity Index)
Age 4-11
Age 65+
Social grade AB
Age 55 - 64
Age 18 - 24
Age 25 - 34
Women
Age 65+
Age 65+
Age 18 - 24
Age 35 - 44
Diva Profile (Affinity Index)
Urban 200 K+
200
Social grade C
150
Age 12-17
Diva and TLC, women lifestyle thematic channels, reached more young women audiences (20+ y.o.), while the
rest of women thematic are preferred by more mature women - Euforia and Antena Stars (45+ y.o.) and Acasa
TV and TV Paprika (35+ y.o.).
Bucharest
Women
250
Urban 200 K+
200
Urban
100 K-200K
Age 4-11
Age 45 - 54
Antena 3 Profile (Affinity Index)
Women
Social grade DE
0
Age 55 - 64
Almost all news channels had a balanced gender viewers, except Digi 24 which was mostly watched by men.
B1 TV had a larger audience in small urban, all the rest covered larger cities
B1 TV Profile (Affinity Index)
50
Age 12-17
Age 25 - 34
Social grade C
Age 65+
Age 4-11
Age 65+
Age 18 - 24
Social grade AB
Urban 30 K
Social grade
DE
0
Women
100
Urban
30 K-100K
50
Urban
30 K-100K
150
Urban
100 K-200K
Social grade AB
Urban
100 K-200K
Social grade DE
0
Age 45 - 54
Women
Urban 200 K+
100
50
Urban
30 K-100K
Men
200
Bucharest
Men
150
Bucharest
Social grade AB
150
Digi 24 Profile (Affinity Index)
National TV Profile (Affinity Index)
Urban 200 K+
Urban
100 K-200K
Men
200
150
Women
Social grade AB
Social grade C
100
50
Urban
30 K-100K
Social grade
DE
0
Urban 30 K
Age 4-11
Age 65+
Age 12-17
Age 55 - 64
Age 45 - 54
Age 18 - 24
Age 35 - 44
Age 25 - 34
ROMANIA 2015
33
AXN Profile (Affinity Index)
Men
200
Bucharest
Urban 200 K+
Women
Social grade AB
Social grade C
100
50
Urban
30 K-100K
Social grade DE
0
Urban 30 K
Age 4-11
Age 65+
Age 12-17
Age 55 - 64
Age 35 - 44
Age 25 - 34
Bucharest
Urban 200 K+
Urban
100 K-200K
150
Social grade C
50
Urban
30 K-100K
Social grade DE
0
Urban 30 K
Age 4-11
Age 65+
Age 12-17
Age 55 - 64
Age 45 - 54
Age 18 - 24
Age 35 - 44
Age 25 - 34
Social grade C
50
Social grade
DE
0
Urban 30 K
Age 4-11
Age 65+
Age 12-17
Age 18 - 24
Age 45 - 54
Age 35 - 44
Age 25 - 34
TV Paprika Profile (Affinity Index)
Bucharest
100
Social grade AB
100
Urban
30 K-100K
Women
Social grade AB
Women
150
Urban
100 K-200K
Antena Stars Profile (Affinity Index)
Men
200
Urban 200 K+
Age 55 - 64
Age 18 - 24
Age 45 - 54
Men
200
Bucharest
150
Urban
100 K-200K
Pro Cinema Profile (Affinity Index)
Urban 200 K+
Urban
100 K-200K
Men
200
150
Women
Social grade AB
Social grade C
100
50
Urban
30 K-100K
Social grade
DE
0
Urban 30 K
Age 4-11
Age 65+
Age 12-17
Age 55 - 64
Age 45 - 54
Age 18 - 24
Age 35 - 44
Age 25 - 34
The beginning of 2015 reveals the same growing trend in the TV market size +3.5% revenue increase, and also
an average of 1-2% price increase. The significant growing rates from Q1 (in audience and loading for all top TV
players) cannot be maintained throughout the year, as April figures already have shown.
The news and the public channels are expected to decrease audience in 2015 since there are no major highlights
compared to last year. All TV stations target cost inflation for 2015, based on last year loading with long clutter
periods (April - July and September - December).
Pro TV made a risky bet and a huge investment with “I’m a celebrity, get me out of here” from South Africa, and
continued with another daily reality show – “The Farm”, both with very good audience results Rtg 14.7% & Shr.
30% for Celebrity and Rtg. 23%, Shr. 10% for The Farm.
Antena1 launched Hell Kitchen 2, better than first season (Rtg. 7%), but still far from the international success
and Temptation Island – a well-received new format.
ROMANIA 2015
Cooking shows will be very present in 2015 TV schedule – both Pro TV and Antena1 have announced new
seasons for the fall and Prima TV keeps up with two formats airing in 2015.
34
ROMANIA 2015
35
DIGITAL MEDIA
Internet penetration in Romania
70%
The main strengths of digital are related to its reach and efficiency. More than this, as none of us can imagine the
future without internet, it also has an aura of “the present and the next thing”, that contributes to its continous
growth. In a nutshell, 2014 had a similar dynamic.
From a global perspective, the big players all try to keep up with the fast changes pace and test different
approaches, no matter the needed investments. We saw it in 2014 through Facebook’s WhatsApp acquisition,
or Google’s purchasing of Nest Labs with $3.2 billion –which from a media perspective can mean a better
understanding of people’s behavior for Google by expanding its reach into areas not dependable on a PC or
mobile device, but in the physical world as well. Discussing strictly about advertising, 2014 meant for Facebook
a big focus on video (November 2014 being the first month when Facebook’s uploaded videos surpassed
Youtube), launch of website custom audiences, decreasing (once more..) pages’ organic reach or closing the
like (fan’s) gate, all of them playing important roles on day to day digital advertising work and also on the overall
digital strategy. Same 2014 brought to Romanian advertisers the option to use Gmail Sponsored Promotion –
which proved to deliver great results in test campaigns.
2014 was a special year for digital in Romania. And not only for the numbers we already know are generally
growing (such as internet penetration, time spend, mobile growth etc), but also for some unique moments
which helped marketers to better understand the real potential of digital.
One of these moments were the presidential elections, where online media showed an unprecedented influence
level, with unprecedented power to move masses. This is a very important stage because, from the marketers’
point of view, digital is becoming reliable as a channel capable to deliver results at the highest level, not only for
some special niches.
E-commerce evolution is also important in the overall digital landscape, because it’s so strictly related with the
digital lucky coin – complete the entire funnel, from prospect to buy. And 2014 was a great year also for the
online commerce, as we’ll see further.
From the major local moves of the media players we mention Adevolution takeover by Thinkdigital and Goldbach
retirement from Romania (with the local team continuing the business).
60%
58%
52%
50%
50%
43%
40%
30%
61%
36%
38%
2008
2009
46%
31%
26%
20%
10%
10%
0%
2006
2007
2010
2011
2012
2013
2014
There are almost 10.3 million Romanians online, 88.2% of them being frequent users. 64% live in urban areas
and 36% in rural – this split becoming more interesting for the market, with rural areas showing a great potential.
In 2015, SNA Focus presented at “Ziua cercetarii media” preliminary data of a 2014 rural research, offering
interesting insights such as (real) metaphor “rural internet penetration being higher than current water supply”.
From the same source, there were more than 68% of people between 14-64 y.o. (10.3 million people) using
internet, of which 56% are daily users. Urban smartphones penetration is higher (59% vs 45%), but we expect
mobile to increase significantly in rural areas due to ease of purchase and telecom players’ special offers (mobile
internet estimated growth is +25% compared to 2013).
Romanian online users - demographic & behaviour
If we look for a pattern regarding the age vs penetration in online, this should be “younger the age, higher the
penetration”, with 65-74 segment at 15%, but 16-54 at more than 50%.
Age Groups internet usage
Digital Landscape
There are more than 3 billion people online, meaning 42% of the total global population, all on a growing trend.
North America is the leader with 87% penetration, followed by Europe with 70%, but big growth is expected
from others as well (for ex. Asia still with only 34%).
Romania maintained in 2014 a growing trend of digital penetration, spend time and frequency of usage, even
if the rate is slowly decreasing from 6% YOY (in 2012 and 2013) to 3% (in 2014). At the end of 2014 we find
Romania still bellow CE average in terms of penetration, but still in front in terms of internet speed, maintaining
an unbelievable 6th worldwide place.
25-34
55-64
66%
63%
50%
35%
36
65-74
35-44
16-24
89%
45-54
15%
ROMANIA 2015
37
The most impressive internet penetration is still represented by 16-24 demographic segment, with more than
89% being active online in 2014.
Regarding the most frequent online activities, searching for information (84%) is still on top, while emailing
continues to slowly decrease (76%) and social networks (74%) to increase. The shift to social networks (+8.2%
more usage), joining chat rooms or forums (+7.3%) are topped only by video consumption, which becomes the
star of category with +31.8% growth / increase.
Social Media networks / Romanian users 2014
78%
60%
78%
79%
80%
76%
Frequent online activities
100%
40%
20%
0%
Search for info
Email
Social networks Read news
Instant
messaging
Watch video Online games Audio stream
2012
Join chat
/forum
2013
7,000,000
Source: Focus CAPI / BRAT, urban 2014 population 14-74
2014 also showed an increasing trend regarding Romanian online users trust in online info they find on internet,
with more than 35% being positive. A decreasing trend is seen in the impact of intrusive online advertising, with
more than 57% considering “ads bother them”.
Online stores, travel or real estate websites have a growing trend in user’s preferences, and job offers or selling/
buying 2nd hand cars a small decreasing one.
The impact of digital on other media is also an interesting topic, and a growing trend of “listen to radio online” or
“watch TV online”, confirms our expectations. Especially regarding TV content, there is a big opportunity for the
major producers to shift important part of the content distribution through digital.
E-commerce market (helped also by “Black Friday” concept which produced +75 million sales) is estimated to
to exceed1 billion EUR in 2014, which means almost double vs 2013 (600 million) - excluding utilities, planes/
travel tickets (so exclusively on goods sold online). The average age of Romanian most active online shopper
remains 25 and 35 years, with over 80% of them living in urban areas. Top categories of 2014 were IT&C,
Fashion and Home&Deco. We can still see the reluctance of Romanian users to pay online, with more than 90%
of the online shoppers choosing to pay cash on delivery.
Alexa.com confirms Romanian favourite web destinations top, with Google.ro as no.1 choice, followed by
Facebook, YouTube and Yahoo. An important player of ten is Olx.ro which was responsible for the major
acquisition of 2015 by buying its main competitor, Tocmai.ro, after a tough fight on the Romanian classifieds
market.
Social media in Romania
107,000
89,600
79,300
71,000
Source: Gemius Research, Zelist
Market
The only question for the digital market is how fast it will grow.
Programmatic made last years a lot of buzz, which should be continued over the next years, because there are
high expectations from all parties, from brands to agencies, and not least from local publishers - (Agora launch
in 2014 being one of the major events of the year).
We estimate a total digital market in 2014 of 51 million EUR, which represents a YOY increase with almost
10% vs 2013 (evaluated at 46.2 million EUR). Main increases are attributed to the international players, which
benefited from the general market focus on direct response campaigns. Classic display keeps close to 2013,
even if part of the local inventory shifted to other sales channels, such as Google Display Network.
30.000
25.000
20.000
22,103
21,000
18,250
22,050
22,950
22,160
19,125
15,300
15.000
10,200
10.000
5.000
Facebook continued to grow in 2014, reaching more than 7,8 million visitors, with great penetration on both
desktop and mobile. We used Gemius research for data regarding Youtube Romanian users (number which
has been also mentioned by Google officials), and we have +6.9 million users. The top is completed by Linkedin
which grew to +1,5 million user accounts (via Zelist), local TPU (with +1.5 million visitors via Gemius), and Skype.
Twitter and Instagram have 0,28, respectively 0,18 million user accounts, but only a part of them were active in
2014 (28,000 on Twitter and 45,000 on Instagram).
38
1,250,000
2014
6,000
750 1,250
2010
1,500 1,438
2011
2,250 1,653
2012
2,812 1,818
2013
Display
3,515
2,000
2014
Google AdWords
Facebook
Yahoo
Source: Focus CAPI / BRAT, urban 2014 population 14-74
(budgets in '000 EUR)
ROMANIA 2015
39
For 2015, we estimate an overall market growth of 10%, reason to celebrate up to 56 million EUR.
Mobile
Users’ shift to mobile can’t be anymore ignored by marketers, so 2015 should be the year of mobile,
with more dedicated campaigns, special creative, and higher overall budgets. Also, smart and useful
applications development can be considered as an important asset of almost any brand, with 46% of
worldwide online shoppers being less likely to look for other options when they use a company’s mobile
app. – comScore
Video
Same as on mobile, Facebook and Google will continue to play an important role, offering efficient
platforms and great targeting capabilities to run video ads. Also, we expect marketers already noticed the
great results of video advertising from previous campaigns will put more emphasize on video formats. By
the end of 2018 mobile video is estimated to represent 69% of global mobile traffic, so if mobile is a known
star, mobile video should be the next.
Programmatic
After much buzz in 2014, we expect to see in 2015 more campaigns, better targeted, with better results
for both brands (with higher ROI) and publishers (with more revenue per used inventory). Also, the market
is becoming more educated and aware of the main strengths of programmatic, so passing the most
important barrier – of understanding how the technology works, should help. In the programmatic
context, the major word of 2015 will be “data”, even if we refer to 1st, 2nd, or 3rd party. The main
platforms have much similarities in terms of buying, so custom targeting (powered by data) will be the one
able to make the difference.
ROMANIA 2015
40
ROMANIA 2015
41
Mobile
Overview of the mobile landscape in Romania.
Year of the mobile in 2014? Again?
We have been hearing this affirmation since 2012. Somehow we are all under the feeling that this is the
year we have all been waiting for, not being able to pinpoint exactly what is that everybody is waiting for.
But shouldn’t we be talking about the “time of the mobile” instead? While we work on making mobile
marketing mainstream, new words already make it to the urban dictionary: “Nomophobia” - the fear of
being out of mobile phone contact.
It is estimated that in January 2015 the number of global smartphones internet connections reached
over 2.7 billion. Mobile devices continue to demand their rightful place in our lives and shape our
everyday behaviors.
While the marketers and advertising agencies as well are still taking their first shy steps into this new
territory, the average Romanian has figured out his way into the land of mobile.
According to ANCOM, the Romanians are wasting no time into getting the latest and the best. There were
12 million mobile broadband connections in Romania at the end of 2014, out of which 89% for 3G and
3G+. This results in a 12% YOY increase of mobile internet penetration from the end of 2013.t
Romanians were also drawn to the multiple functionalities offered by tablets, with an estimated penetration
within the population of almost 13% tablet ownership in 2014.
Apple rules the tablet segment in Romania, with 41.3% online traffic accounted in Romania at the end of
2014 from such devices, while Samsung owns the smartphone segment with 36.9% traffic and on a rising
trend.
As expected, the younger demographics are highly mobile, with age group <25 yrs. owning the smartphone
segment (63% penetration) while the more expensive tablet devices have a higher penetration among 3544 demographic (22%).
Encouraging to notice that older demographics get online as well, with 55+ age groups reaching a 9%
smartphone ownership and 3% tablet.
Mobile devices penetration by age groups
80%
3%
55+
9%
94%
14%
45-54
22%
Penetration (Urban, 2014)
91%
22%
35-44
38%
96%
18%
25-34
Smartphones
34%
Mobile Phones
114.9%
56%
95%
18%
>25
63%
Tablets
13%
0%
20%
40%
60%
80%
Mobile
100%
Tablet
Smartphone
Source: Google & ANCOM
And how many mobile phones is the average Romanian carrying with him? Most of them, more than 1. At
the end of 2014, the total number of active SIM cards in Romania was 22.9 million, almost equal to the
numbers registered in 2013. To be mentioned an increase in subscriptions with 4.9% compared to the
previous year, while prepaid users have dropped by 3.4%.
The use of mobile services is growing on a yearly basis. Voice traffic on mobile networks in 2014 was
5.3% higher than the registered traffic in the same period of 2013, up to 67 billion minutes.
Consumer connected devices habits in Romania
According to Ancom, for 2014 the average mobile internet user consumed an average of 260 MB of data
traffic monthly (that’s a 65% data traffic increase vs .2013). This means that the emergence of the 4G
networks and more attractive data subscription packages are slowly shifting the mobile traffic from Wi-Fi
to more on the go solutions.
Multiscreening is the new norm today, with 30% of the Romanians being online while watching TV, 26%
when going out and 15% when shopping. (Google Internet in Everyday Life)
Moreover, Romanians now have unprecedented access to acquiring a smartphone due to the sustained
efforts and competitive offers from the local telecom operators. It is estimated that 1 out of 3 Romanians
now owns a smartphone, this increasing the overall smartphone penetration by +21% in 2014, to a
level of 34% of the population now owning such device.
42
ROMANIA 2015
43
30%
TV
Multiscreening
Online while watching TV
26%
Going
Out
Online when going Out
15%
With more access to various content and multimedia features, the mobile consumption habits are ever
evolving.
In terms of activities taken on their connected devices, Searching for Info (78%) and accessing Social
Networks (72%) are the most prominent ones, both on smartphones and tablets. The usage patterns
denote a higher involvement for the activities undertaken on tablet devices, which was expected mainly
due to the larger screen size that allows for a more immersive experience.
Streaming
57%
Instant
56%
Video
Streaming
68%
Email
Email
Networks
While it is the era of the mobile consumers, mobile advertising still lags behind. The new involvement of
the consumers with their connected devices affects the way they spend their leisure time, the frequency
of internet browsing and increased usage of mobile apps. Still, it is estimated that only under 5% of
planned ad impressions in local campaigns are allocated for mobile advertising, while the rest of 95% go
for desktop. Even if these shares are higher for Google and Facebook, due to their platforms facilities, we
still must address the specificity of mobile devices and the new obstacles, as well as the opportunities
they offer.
Let’s all focus our efforts to where the consumers are!
58%
Instant
67%
70%
Social
In 2015, Google itself made “mobile-friendliness” a ranking signal. This change will affect mobile searches
in all languages worldwide and will have a significant impact in our search results. Consequently, users will
find it easier to get relevant, high quality search results that are optimized for their devices.
“As more people use mobile devices to access the internet, our algorithms have to adapt to these usage
patterns”, explained Google in its announcement. Investments in mobile or at least responsive versions of
websites are a must for 2015 for all marketers.
Messaging
Messaging
78%
Search Info
On the other hand, the new wave of innovation in technology and the increased competition for best
offers and solutions, both from mobile operators and from handset producers are creating the means for
invention in numerous other areas, as consumers embrace new behaviors and marketers need to find
ways to improve efficiency, develop new products and services, and expand their market reach.
Online when going Shopping
Shopping
52%
Video
Around the world, smartphones (alongside tablets and a whole new wave of other smart devices, like
wearables) design a whole new way of how people connect, interact and live their lives.
78%
Search
Info
74%
Social
Networks
44
ROMANIA 2015
45
Radio
Overview
In 2014, the Radio market was stable in terms of advertising investments, while Radio networks strived
to consolidate market shares through marketing campaigns, events and integrated media packages with
social media.
The Radio market structure covered a wide range of audience profiles and preferences, with the highest
market share on Contemporary Hit Radio (41% / urban 11+), followed by Adult Contemporary (33.2% /
urban 11+).
FORMAT
RADIO STATION
CORE TARGET
EXTENDED TARGET
Contemporary Hit Radio
Radio Pro FM
Radio ZU
Radio 21
Radio Sport Total FM
Radio Kiss FM
Radio Europa FM
Radio National FM
Radio Romania Actualitati
Radio Romania Cultural
Radio France International
Radio Magic FM
Radio Smart FM
Radio Rock FM
Radio Vibe FM
15 - 25 y.o.
15 - 49 y.o.
18 - 29 y.o.
25 - 40 y.o.
18 - 32 y.o.
30 - 49 y.o.
35 - 45 y.o.
30 - 65 y.o.
18 - 60 y.o.
35 - 44 y.o.
30 - 45 y.o.
35 - 44 y.o.
30 - 45 y.o.
18 - 24 y.o.
15 - 49 y.o
15 - 55 y.o.
15 - 35 y.o.
18 - 47 y.o.
15 - 49 y.o.
30+ y.o.
30 - 55 y.o.
30 - 65 y.o.
18 - 60 y.o.
25 - 54 y.o.
25 - 50 y.o.
Adult Contemporary
Soft Adult Contemporary
Classic Rock
Dance
Kiss FM: Summer Kiss Bass (one artist and 30 listeners, 300 km of fun) – Kiss Bass passengers took part
in a 24h fun trip on Saturday and Sunday from Bucharest to the seaside and back
Magic FM: Santa’s Radio (the most beautiful Christmas songs were aired by the station in December)
Radio ZU: organized in March, on Cluj Arena, “Forza ZU”, the biggest karaoke live show where 33 artists
entertained 60,000 participants and 1st edition of ZUMA (Zu Music Awards) on the launch day of ZU TV
airing day.
Europa FM: capitalized on marketing campaigns with high engaging potential such as “Money Hit
Contest”, “Double or Nothing Contest”. “Live in the Garage” managed to become by itself a brand
with high awareness, while “Live on the Beach” was an event which managed to gather around 60,000
participants at a show sustained by the most popular pop-rock bands in Romania.
Radio 21: “Move to Apartment 21”& “Wheel of Luck” were the two campaigns with promotional
mechanism organized by Radio 21, while “Liberty Parade” the already traditional summer event held on
the largest scene in the country, managed to gather 70,000 people.
Pro FM: most important campaigns were “Pro FM Topeste inimi” on Valentine’s Day in AFI Cotroceni,
where a ring was placed in an ice heart and the winner guessed what time will take the ice to melt, “Pro
FM Super Girl” concert supported by the most popular Romanian bands was held on 8th March held in
AFI Cotroceni and “Cisterna Pro FM”, the campaign where five full tanks of gasoline and a road assistance
voucher were offered daily to the 100th “Listen Pro FM” SMS.
Market Analysis
MGSI strengthened its leadership regaining 2 pp of market share to 38%, albeit it is still below the 40%
owned in 2013. On 2nd place follows Media Camina Group with a marginal growth (from 21% to 22%),
while Regie Radio Music keeps 3rd place despite the drop in market share from 19% to 16%. Pro FM
remains 4th, with 16% (vs. 17% in 2013), while Societatea Romana de Radiodifuziune (RRA), despite the
2 pp growth from 2013, ranks last with 8% market share.
Advertisement Revenues Share by Sales House
RRA,8%
25 - 50 y.o.
16 - 29 y.o.
Source: Radio stations statements
MGSI, 38%
PRO TV, 16%
Note: In 2015 Radio Vibe FM will change his format in soft music with core target 35-45 y.o. and extended
target 25-55 y.o.
Several changes marked the Radio market in 2014 right from the start, the most significant ones were:
In January Serban Huidu left Kiss FM morning show “Carcotasii” and in the same month Gold FM’s
morning program became “Dobrovolski Show” and was on air from Monday to Friday every morning
between 07:00 and 10:00 and can also be listened live online, on www.radioguerrilla.ro. In March, the
sports journalist Catalin Tolontan started a weekly show on Europa FM, every Tuesday during the morning
program, bringing into discussion a wide variety of topics from all domains. At the end of July, Mihai
Gainusa and his team left Kiss FM to start a new broadcast “Cusurgii” on Radio 21, from the 1st of
September. In August, Monica Anghel left the Europa FM morning program after seven years, while in
September, Andrei Gheorghe returned to Pro FM morning show. From September, Kiss FM brought a
new team to host the morning show, the stand-up comedians Sergiu Floroaia and Andrei Ciobanu.
Pro FM and Info Pro became generalist radio stations in September, and in December were acquired by
RCS -RDS, transaction concluded in 2015.
As in previous years, the main Radio stations continued to develop marketing campaigns and events for
listeners’ engagement and as a loyalty trigger. The most popular were:
46
MGSI = Kiss FM, Magic FM, Rock FM
Grupul Media Camina = Radio ZU
Regie Radio Music = Europa FM, Radio 21
PRO TV = Pro FM
RRA = Radio Romania Actualitati
Regie Radio
Music,
16%
Grupul Media
Camina, 22%
Source: MediaMonitor BRAT, RC figures,
barters excluded
If in 2013 the Radio investors top was led by Retailers, last year the first place was claimed by a very
dynamic “Medical & optical products and service” category with 10 pp increase vs. 2013, driven mostly
by Zdrovit. Although the retail category “Retailers” gained 25% in RC spending, it fell on 2nd place due
to the due to medical category push. “Domestic appliances, electrical & electronics” category gained
importance with 3pp increase compared to 2013.
ROMANIA 2015
47
Place of listening
Daily Reach (%) Evolution - Urban 11+ Monday to Friday
Despite the Cosmote - Romtelecom rebranding campaign in September 2014, the “Mobile
telecommunications services” category did not benefit in terms of Radio ad revenue (2 pp drop vs. 2013)
as the campaign focus was mostly on TV, out-of-home and special events.
“Banking & insurance services” category lost 3 places in the ranking (from the 3rd place in 2013 to 6th
place in 2014) and 4pp (from 8% in 2013 to 4% in 2014), as several traditional advertisers reduced their
presence on this medium.
80%
70%
60%
50%
40%
At home
30%
Product Category
Spending share
Medical & optical products and services
Retailers
Domestic appliances, electrical & electronics
Mobile telecommunications services
Building & constructions products and materials
Banking & insurance services
Cosmetics, Hygienic & Hair Care
Cars and 4x4 vehicles
Fuels/Oil/Lubricants/Companies & Products
Furniture
Beer
In a car
20%
27%
17%
11%
6%
5%
4%
4%
2%
2%
1%
1%
At work
Other place
10%
TOTAL
0%
2010
2011
2012
2013
2014
Source: MasoR8
In 2014 Radio ZU (14.9%) consolidated its leading position in terms of average rating in Bucharest, followed
by Radio Romania Actualitati (12.3%) and Kiss FM (11.4%) which increased its performance and reduced the
gap vs. the 2nd place. Magic FM (8.9%) followed at a significant distance, while Pro FM (7.4%) and Europa FM
(7.2%) remained on tight positions on 5th and 6th places, although both increased in rating in 2014.
At urban level, Kiss FM (14.5%), although dropping from 15.8% in 2013, remains leader at a comfortable distance
from Radio Romania Actualitati (12.4%) and Radio ZU (12%), both on a positive trend. Europa FM (10.4%)
remained 4th with stable performance, while Pro FM (9.8%) follows on 5th place at a very small difference.
Source: MediaMonitor, BRAT, RC figures, barters excluded
Top 10 Stations Urban vs. Bucharest
Audience Analysis
14.9
14.5
In 2014, the daily Radio audience increased significantly in Bucharest and also at urban level. The trend
was registered during weekdays as well as during weekend, with a performance increase between 1.2%
(in Bucharest during weekdays) to 2.6% (weekdays at urban level).
12.8
12.4
11.4
11+ urban
12
Source: MasoR8
10.4
Daily Reach (%) Evolution
9.8
7.2
8.9
7.4
6.1
80
73,4 74,6
73.9
71,3
65
5.4
63.9
65,7
2.3 2.6
65,8
Kiss FM
2013
55
Monday-Friday
Saturday-Sunday
Urban
Monday-Friday
Saturday-Sunday
Bucharest
2014
Source: MasoR8
As in the previous year, the preferred place of Radio listening during weekdays remains “at home” (45.7%)
and “in the car” (37%).
On the other hand, while listening over the internet decreased slightly from 10.2% to 9.4%, the usage
of the radio mobile phone/media player increased from 7.5% to 10.3%, setting a trend which could be
noticed also during weekends.
3
2.1
2
67,1
60
48
5.8
4.7
75
70
11+Bucharest
Actualitati
ZU
Europa
FM
Pro FM
Magic
FM
Radio21 Ant. Satelor
Rock
FM
National
FM
Local Radio
In 2014, Goldbach Media continued to be the main local Radio sales house, with 79 local partners in 39 counties,
while Midas Media included in its portfolio 13 local Radio stations in 13 counties.
Besides the classical ad placement, the local Radio stations have become more open to implement special
projects, contests, live interventions, programs branding and guests in Radio programs.
In 2015, the Radio market is expected to remain at the same level as in 2014, or to increase marginally.
Radio stations will continue to be flexible and open to special projects in 2015 a flexible policy and the opening to
special projects (creative contests, shows relocations in unconventional locations, branded programs).
They are also expected to be more present in social media and to generate more media campaigns that will
integrate the Radio station with smartphones and the web.
ROMANIA 2015
49
Print
Coverage (%) evolution
Overview
In 2014, the Print industry continued to be affected by the collapse of the distribution networks, their
insolvency leaving the publishers with large amounts of account receivables.
Additionally, the continuous content duplication with the online versions resulted in further reduction of
print buyers.
Publishers continued their marketing strategy based on frequent inserts of books, DVD’s, cosmetics
sachets, but the approach was not successful, as it resulted in very low sold circulation for the issues
without insert.
As a consequence, more and more clients reduced or cut their media investments in Print. To defend
their advertising revenues and market shares, publishers pushed more for integrated media exposure
packages (print - online, print – online - event), and released more supplements tailored to specific events:
exams for various education levels, elections, National Day, seasonal holidays etc.
40
35
30
25
Monthlies
20
10
Burda Romania & Burda Media: in February, Burda International GmbH finalized the transaction for the
acquisition of Sanoma Hearst portfolio. To comply with the Competition Council’s request, Burda had to
sell several titles, such as “Bucataria de azi Retete”, “Casa de vacanta”, “Ioana Visul Copiilor” and “Ioana
vine barza”. In March, Sanoma Hearst was renamed Burda Media, and continued the transformation
process by closing Story magazine in July and deciding not to renew the FHM license from September.
0
Mediafax: April marked the first issue of CSID without Oana Cuzino as Chief Editor and in October the last
cover of Glamour was released under Mediafax. The end of 2014 came with additional titles closed – Pro
Sport, Pro Motor, Playboy and GQ.
Intact Publishing: in December, Jurnalul National daily reduced the format to A4, keeping the same
number of pages.
Medien Holding: in June, “Academia Catavencu” editorial team was divided once more and in September
a new issue of the publication was released, with monthly periodicity.
Market Analysis
In 2014, readership continues to decrease among all print types, independent of the periodicity.
Nevertheless, after the major drop during June12-August14, print audience continued to decrease at a
slower pace of approx. 3-6% from one measurement to another, resulting in lower circulation figures and
sales decline.
50
Dailies
15
The decline has triggered major changes which became necessary in order to settle the business in
current market condition:
Insolvency was requested by several media houses, some of them very big, such as Editura Evenimentul
Zilei & Capital, Mediafax Group and Intact Publishing.
Ringier Romania: in March, “Unica” glossy magazine was re-positioned upmarket - premium with a
new design, while in April two titles were closed, “Bravo” and “Joy”. September came with additional
changes, when Libertatea daily tabloid was re-launched with a new editorial structure and Glamour glossy
magazine license was taken over from Mediafax.
Weeklies
5
Wave
Aug11-Feb13
Wave
Sep11-Iun13
Wave
Ian12-Dec13
Wave
Jun12-May14
Wave
Aug12-Aug14
Wave
Nov12-Nov14
Wave
Feb13-Feb15
Source: SNA-CAPI
However, readers preference for specific editorial content remained stable throughout the last couple
of years - women continued to show a high preference for monthly glossy magazines and weekly titles
where they are more likely to find advice and practical info about cooking, personal care, household
maintenance & decoration, health & nutrition. Men main interest remained general interest newspapers
and sports.
Gender Preferences in Print Titles
140
120
100
80
60
40
20
0
Monthlies
Source: SNA-CAPI Feb13-Feb15
Affinity versus Urban 14-74
Weeklies
Dailies
Men
Women
ROMANIA 2015
51
In terms of gross (rate card) ad revenues, Ringier was ranked 1st, with a major increase to 21% market
share (vs. 14% in 2013), despite the fact that two titles were closed and Glamour was added to the
portfolio at the end of the year. The performance was driven by the fact that the media house managed to
bring together the top titles from very big categories, such as glossy women beauty & fashion, celebrities
& lifestyle, cooking, automotive.
Despite the slight increase to 19% market share (vs. 15% in 2013), Adevarul Holding lost leading position
in favor of the very dynamic Ringier evolution.
As Burda International – Sanoma Hearst transaction was finalized at the beginning of 2014, the new
media trust went up on 3rd position from 4th in 2013, with 10% cumulated market share.
Mediafax dropped on 4rth place losing 5 pp to 9%, as several important publications from the group were
closed (Pro Motor, Pro Sport, Playboy, GQ).
Share of RC revenues by Media Group (excl. barters)
The top 10 advertising categories with significant investments in print (Rate Card) accounted in 2014 for
more than 50% of the total gross print spend (media barter excluded).
Categories
Magazines
Newspapers
Retailers
Medical & optical products and services
Cosmetics, Hygienic & Hair Care
Mobile telecommunications services
Cars and 4x4 vehicles
Banking & insurance services
Clothing & accessories
Domestic appliances, electrical & electronics
Building & constructions products and materials
Internet services
21.6%
40.0%
98.2%
31.2%
50.9%
37.8%
90.8%
44.8%
40.4%
32.0%
78.5%
60.0%
1.8%
68.8%
49.2%
62.2%
9.2%
55.2%
59.6%
68.0%
Source: BRAT Media MONITOR
OTHERS, 8%
PATETIC MEDIA, 1%
SOLPRESS S..L. 1%
PEOPLE MAGAZINE, 2%
RINGIER ROMANIA, 21%
RING MEDIA GROUP, 2%
BP PUBLISHING
2%
ETA MEDIA
PUBLISHERS, 3%
INTACT
PUBLISHING, 4%
With a constant communication especially in newspapers, Retailers dominated the print advertising in
2014, with an important jump from the 5th to the 1st position, with Lidl, Ikea and Carrefour being the most
active investors. Despite the major re-branding in the “Mobile telecommunications services”, the category
place in the ranking was not influenced, as the investment share towards print was marginal, compared to
other media used in the campaign.
Sustained by the “Rabla” program and special offers, “Cars and 4x4 vehicles” category switched places
with “Banking & insurance services”, while aggressive promos such as Black Friday brought “Domestic
appliances, electrical & electronics” on the 8th position in 2014 (vs. 10th in 2013).
“Beer” had an interesting evolution in 2014, as the category was active in Print throughout the year, not
only during summer, and achieved a gross spending close to number 10 category.
Regional Press
MEDIA SUD
MANAGMENT, 5%
In 2014, the descending trend continued in local print also, with additional titles being closed and some of
them going online.
EDITURA
EVENIMENTUL ZILEI
SI CAPITAL, 6%
ADEVARUL
HOLDING, 19%
CONVERGENT MEDIA, 7%
MEDIAFAX GROUP, 9%
BURDA MEDIA + BURDA ROMANIA, 10%
Source: BRAT Media MONITOR
52
The most important 2014 event in regional press was marked in August by Goldbach Group decision to
withdraw from several SE European countries, including Romania. In our country, by the end of the year,
the executive management took control of the operation through an MBO and the company is expected
to change name in 2015.
Despite the general negative trend of the print market, some local titles managed to keep high readership
and implicitly, circulation, due to the high interest of their local readers - some examples are Gazeta de
Sud, Ring, Informatia zilei de Satu Mare, Ziarul de Iasi, Jurnalul Aradean, Monitorul de Suceava, Viata
Libera Galati.
As in the previous years, the most important local titles were polarized in two important sales houses:
Goldbach Romania and Midas Media.
ROMANIA 2015
53
Online Titles
The general trend for online titles shows a significant growth for major websites, confirming once again the
high business potential online versions have in publishers’ portfolio.
Releasing online versions and creating complementary content between print and digital publications
editions continues to represent a solution for the publishers to reduce costs, consolidate readers’ loyalty
and make their businesses profitable.
Site
Corresponding
Pub
www.cancan.ro
Genre
2014 Monthly Avg.
Hits
CanCan
Tabloids
Tabloids
41,706,387
2013 Monthly Avg.
Evolution
Visits
Hits
Visits
Hits
Visits
15,336,811
39,069,915
12,974,618
7%
18%
www.libertatea.ro
Libertatea
41,242,629
13,545,330
33,364,635
10,617,306
24%
28%
www.gsp.ro
Gazeta Sporturilor Sport
36,322,742
11,193,064
31,551,136
9,055,964
15%
24%
www.playboy.ro
Playboy
Men Lifestyle
32,220,197
3,475,074
10,788,754
976,163
199%
256%
www.gandul.info
Gandul
News
30,884,227
13,806,620
21,533,882
10,395,733
43%
33%
www.prosport.ro
Pro Sport
Sport
28,022,462
11,595,666
25,395,438
9,799,705
10%
18%
www.evz.ro
Evenimentul Zilei
News
23,478,131
6,781,502
14,676,191
5,033,265
60%
35%
www.adevarul.ro
Adevarul
News
20,638,764
9,046,984
12,923,303
5,633,341
60%
61%
www.click.ro
Click
Tabloids
15,005,281
4,462,781
17,751,017
4,860,889
-15%
-8%
Source: SATI BRAT
For 2015, it is expected that more and more publishers will develop their standard sales offers based
on integrated media packages (print – supplements – online – mobile), to secure annual budgets and
generate constant revenue towards all the vehicles in their portfolio.
The polarization of the glossy magazines in two media trusts, Ringier and Burda, is expected to determine
shortly a challenge for budget share, which will be most probably supported with aggressive package
offers and exclusivity deals.
In 2015 the print industry will continue its decline, with more titles expected to close or move their editorial
content to the online versions.
ROMANIA 2015
54
ROMANIA 2015
55
Out-of-Home Media
Overview
Unlike the previous years, 2014 didn’t bring any significant changes to the OOH market. Depending on the
perspective, the market structure seemed to either build continuity, or be gripped in a status quo. For the first
time in many years, everyone had a solid certainty: they could rely on the fact that no new legislation is going to
be approved. Starting from this real fact, the networks had a steady growth especially in Bucharest, Euromedia
being a good example for it with an estimate of 80 new backlit locations. Affichage kept its ground. Unexpectedly,
the independent investors were the ones to profit the most of this allowance period / political amnesty.
More than ever, the increasing media fragmentation and the pressure of smaller available budgets on the
market, have determined an unprecedented push for additional discounts.
Distinct from the last years evolution, 2014 didn’t registered any decrease in the overall financial investments.
Although commercial clients had a few percent less than 2013, the European and Presidential Elections, as well
as the rebranding of Cosmote into Telekom, succeeded in filling in the gap and closing the year with a flat growth
as for 2013 budgets. Also, as well as last year, Retail players kept growing their networks.
As a conclusion, the OOH market registered a flat growth in 2014, with a total spent of 28 million euro.
As mentioned before, the independent players kept on building-up their Bucharest and national networks.
The most dynamic ones are: Universal Solutions, Imperial Media, New Age, Way Media. Spectacular
Group of Companies, seem to go through another conflict with Metrorex, lately threatening to open a law
process against them.
As for type of formats, the networks development was, as usual, concentrated on backlight which is the
predominant format in Romanian OOH Industry, with a 45% share, followed by billboards with a 19%
share and city lights/buss-shelters with 14%. The remaining 22% are composed by : roll-overs, meshes,
prisms, unipoles, flags and other special projects
Share of Market ‐ Formats
billboard
19%
city light /
bus-shelter
14%
The OOH monitoring system, heavily endorsed the idea of a Frequency Study on Outdoor and got approval on
most of the needed procedures, including an estimated budget, for starting the selection process of the audit
company.
Other
format
22%
Outdoor
The only significant street furniture auction has been won by Communications in Oradea. The Bucharest Transit
media contracts are still being signed, as in past years, directly by RATB.
In regard to market configuration, 2014 was the first in many years to have only Romanian Owners, as the most
important suppliers (Euromedia and Affichage) were taken over from foreign Shareholders.
As a quick history reminder : starting with the 1st August
2013, APG SGA SA, the main owner for Affichage sold
its shares to its CEO, Rene Rosenberg who further sold
60% of the company to several Romanian investors.
Epa Media was sold by JoJ Media House to a
Romanian Investors Group. As a reminder, in 2012 JoJ
Media House bought the entire Epa Media network from
Raiffeisen. They sold the Bulgarian branch to a local
player and in Hungary to JC Decaux. The Romanian
subsidiary followed in 2013.
The 2015 ranking for the top 3 vendors is :
- Euromedia – 28%
- Affichage Romania – 17%
- Getica – 10%
- Others – 45%
56
roll-over
mesh
prism
unipole
flag
special
project
backlight
45%
Share of Market - Vendors
Others
45%
Euromedia
28%
Affichage
Romania
Getica 17%
10%
Indoor
The main players are Brand Management and Sugar Media.
There were no changes in the investors top in indoor advertising – the largest budgets continued to be
sustained by the Banking and Financial sector, followed closely by FCMG, Automotive, Entertainment,
Airlines and Fashion industries.
Indoor ads in office buildings represent the only segment that managed to increase revenues mainly
through innovative special projects. Elevate is leading with 70% market share followed by Invent Media.
The largest budgets were sustained by the Banking and Financial sectors closely tracked by FCMG,
Automotive, Airlines and Pharma.
Digital OOH
On Digital Outdoor, Phoenix Media entered in a third year on a roll expansion of their Tv-Screen network
with 5 new locations in Bucharest, thus maintaining by far the leadership in this segment. They also kept
on replacing some of the old screens with new modern digital supports, and announced another 10
ROMANIA 2015
57
more brand-new locations for 2015. Media Advertising and Vision Media Plus continue to operate in the
segment, maintaining their existing classical networks.
Phoenix Media remained the only supplier to sell advertising space based on four time slots: prime, basic,
inter and night time. The company also remains the owner of the exclusive contract for the 20 LCDs
placed in Bucharest Old Town.
Digital Indoor refers to plasma screens distributed across networks in crowded places. Blitz TV
maintained its’ contract with Metrorex for the subway LCD network.
Cross-media Special Projects: the main trend in the industry is represented by transformed classical
supports enhanced with modern digital high tech devices. Given the previous year successful experience
with “Orange Orchestra”, Orange implemented a new advanced technology cross media project in
2014: combining 4G with Kinect technology, Orange succeeded to enable a live interaction between
Bucharest and Mamaia. In the Universitate passage in Bucharest a special soccer ball throwing machine
was installed in front of a big screen with live streaming, via 4 G network. In this way people from the two
different locations could play soccer in real time, taking advantage of the high speed technology.
In autumn, the launch of the 4G services everywhere in the subway was communicated through a very
innovative presence throughout the entire Bucharest subway network. The passengers were offered the
opportunity to test the performance of the 4G network via a dedicated app - Orange 4G subway – that
offered various types of content : movies, music, games, audiobooks. The service launch was promoted
with the extended usage, for the first time, of the Metrorex official signage (information boards, lighning
boxes), full - branded trains, a huge board at Piata Victoriei, floor graphics and Universitate stairs railing.
58
As usual, 2015 had a very slow start, but things improved since March.
The expected term of 15th of October for the implementation of the new outdoor law is coming closer,
and all suppliers should have already started to normalize their networks, although until now, there is no
sign of such actions, as if the market waits to see if the law will be implemented, or postponed once again.
As 2016 is going to be another election year, it is expected that most vendors will keep expanding their
networks.
Indoor is expected to maintain a steady evolution and maintain current status.
Although there is hope, more than ever, to maintain thelast year’s investments, and there are some
positive perspectives regarding an increase of the outdoor budgets – continuous Retailers expansion and
high competition in the Mobile telecommunications category, the figures are until now, moderate. The
general estimation for 2015 is foreseeing a desecending trend, with a 2% deficit.
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MEDIA RESEARCH
Internet Measurement
Overview
2014 was a relatively eventless year regarding media audience measurement and monitoring. The cost
efficiency pressure of syndicated research, although present, has not led to sacrificing methodological
rigorousness for the purpose of cost reductions.
The most important event of 2014 refers to the selection process for the TV audience measurement (TAM
service) provider starting with January 1, 2016 until December 31, 2019, which was won by Kantar Media,
the incumbent research company.
Also very important was the optimization of the SNA Focus syndicated survey for 2014-2017, supervised
by BRAT, and aimed to improve the quality and performance for measuring the consumer trends linked
with Print readership.
TV Measurement
Audience measurement for TV is available on daily basis since August 2001, while access to detailed
audience data is available only through membership to ARMA (Romanian Association for Audience
Measurement), the organization that also represents the beneficiaries interest in relationship with the data
provider.
Kantar Media Audiences is the provider of audience data for the TV Audience Measurement (TAM) survey
as of January 2012. At the beginning of 2015, ARMA decided to continue the collaboration with KMA for
2016-2019, also.
TAM system is a quantitative research, which measures the TV usage among Romanian population –
minute by minute viewing, 24/7 – using tele-control people-meters. The universe contains all private
households in Romania with a working television, and all individuals aged 4+ in those households. People
who have spent last year more than 3 consecutive months outside the country are classified as ‘migrants’,
and are not included in the research universe. The gross installed panel is 1,320 households, the reporting
panel of households being 1,200. Viewing by guests in a panel member’s home is measured as a surrogate
for the viewing by panel members who take place in other homes. The exact age and gender of guest
viewers are collected. Consolidated viewing is also available as a metric, and is defined as live viewing
plus any time-shift viewing taking place within seven days of the original transmission.
At the end of 2014 there were 59 monitored and reported TV stations.
Monitoring data is available from a relatively wide range of providers, although only the TAM service
provides performance data for TV spots alongside with correction factors for spots with length different
from 30”.
The working software tool for both audience and monitoring data is InfoSysTV+.
In 2014 ARMA has generated a process of increasing transparency by attracting more players from the
market into the association, as paying members. This initiative will result in 2016 in a more affordable cost
for smaller agencies.
60
BRAT (a non for profit, independent, tripartite organization for the media and advertising industry, whose
members are publishers, media owners, media agencies and advertisers) is presently the only industry
recognized provider of performance data concerning Internet traffic and audience structure, through the
SATI survey. The hybrid method used for traffic measurement, audience and profiles of the websites is
compliant with the IFABC guidelines regarding traffic measurement.
SATI presently measures a number of 194 websites and 43 mobisites, together with streaming
measurement for 3 websites. Since 2014, and for the first time in Romania, the SATI system presents data
regarding the unique visitors accessing the websites through their mobile phones.
The provider of SATI remained Kantar Media Spring.
Traffic measurement is delivered through two main access points: the Scores on-line application
for the complete data (for traffic splitting on various sections, comparison between websites, daily and
hourly resolution for data analysis, top entry / exit pages, geographical location and technical data, real
time viewing of traffic data) and the BRAT website for 3 general main metrics. Traffic data started being
delivered by SATI since October 2007.
Audience measurement is available since June 2008. The standard delivery for the internet audience
data is spanned on a period of 3 months, with weekly averages being given. SATI measures the audience
(number of visitors per week) of the websites, for the people, 14-74 years old, living in urban areas. Basic
demographics along with general Internet usage and some consumption variables are available. Since
2015, the survey extended the coverage, delivering the first audience data for rural areas.
The software for the Internet audience data is SESAME, the same as in the case of SNA-Focus. Besides
the simple table listing, crosstab generation and media ranking facilities, it also contains a media planning
module and optimization engine.
Monitoring data for online campaigns is delivered by BRAT since August 2011, through the MIPO
project. Currently, the survey tracks the campaigns of its members on a number of al least 2,000 websites
belonging to both BRAT members and non-members. Starting 2013, BRAT implemented a spider
technology in the MIPO project and now monitors the presence of all online campaigns, with no restriction
regarding the whether or not the campaign belongs to a BRAT member.
Another industry recognized source of digital expenditures figure is the RoAds survey, published by IAB in
collaboration with PriceWaterhouseCooper. The data collection is audit-based.
Radio Measurement
Audience measurement is available through the Radio Audience Measurement Survey (SAR), a
syndicated research program in co-operation with the industry JIC, Radio Audience Association (ARA).
Currently, IMAS Marketing & Polls and GfK Romania are responsible with the data collection and reporting.
The service is available since June 2004.
“Day after recall” method is used – the remembrance is aided by recalling the activities conducted during
the day before the interview. The frequency of the survey was of two waves per year during 2004-2007.
Starting 2008, SAR delivers audience data in three waves per year. The universe covers urban and rural
population, living in private households in urban and rural areas, aged 11+ years old, in accordance with
ROMANIA 2015
61
official statistics. Data collection is currently done through CATI (computer assisted web interview). The
audience data is reported for 19 radio stations (nationwide), and separately for 16 stations in Bucharest
area.
Monitoring data is also delivered by BRAT, through the MIPPS project. The project started delivering
data in January 2011, and is currently monitoring more than 200 publications.
The software for data analysis is MasoR8. The audience segmentation considers all the variables in the
questionnaire on the basis of which the user can build specific target groups. The software also has a
planning module that can be used for gross planning of radio campaigns.
OOH Measurement
Monitoring data is delivered by BRAT, through the MIPR project, since July 2011 and is currently
monitoring 8 main radio stations networks.
Print Measurement
BRAT is presently the only provider of performance data concerning print-run audit and audience
measurement for press.
Print-run and circulation audit is being offered through third party auditing companies appointed
through offer selection. Audit data is public and comprises total print-run, distributed print-run, circulation
(through kiosk sales, paid subscription, free copies, block sales etc.) and returns.
For the free press, the audit data comprises different categories of circulation: beside the print-run, the
distributed copies are detailed by the way they are distributed: list of subscribers, public places, events,
etc. BRAT also offers audit services for electronically distributed publications.
Starting 2009, BRAT increased the level of security regarding the audit figures, verifying the print-run by
its own personnel, in the field. Starting 2009, the circulation statements are issued on a fix date, every
trimester: 3rd of March / June / September / December.
Presently BRAT audits an approximate number of 104 publications, both national and local.
Audience measurement is offered through the SNA-Focus survey, which – besides readership
measurement – offers a wide range of demographic variables and data regarding the consumption of
goods and services.
Presently, the survey includes an approximate number of 66 publications, all of them being BRAT
members. The main metric offered by SNA-Focus is the AIR (Average Issue Readership), which measure
the number of people reading an average issue of a given title, using the ‘recent reading method’ – the
only method used and accepted across the world for the print measurement.
Monitoring data is available as of May 2012, carried out by BRAT, and the results are integrated in the
same on-line platform used for the Print, Radio and Internet monitoring. The department responsible with
overseeing MIPOOH consists of both media agencies and 13 OOH agencies, covering the large majority
of available locations and faces.
The most important market representatives, main OOH vendors and media agencies, have initiated a new
project regarding OOH audience survey development, meant to complete the existing monitoring system.
General guidelines of the measurement system and methodology are still under discussion, still the survey
it is expected to begin at the end of 2015.
Cinema Measurement
Presently there is no syndicated study to measure traffic data or the demographic structure of cinema
goers, although main cinema chains do conduct ad-hoc client research projects in order to measure
those indicators. Reports from those studies are available, in variable amounts, to media agencies.
Demographic profiles and data concerning the consumption of brands and services by cinema goers
are indirectly available from the SNA-Focus. Starting 2012 the results are available for the main Cinema
chains, for the big cities, and for type of cinema in the rest of the cases.
It is very likely that 2015 will by as uneventful ad the previous year. The syndicated surveys seem to
consolidate their structure, with less and less need for adaptation and reconfiguration. Although there
is no general consensus, and some cost pressures still remain, the probability for survey crash or major
methodological change is quite low. The main event will be the integration of the 2012 nationwide Census
data into BRAT surveys, leading to changes in the universe structure.
In order to satisfy the continuous need for data integration, reliability and performance measurement,
the specific methodological fine-tuning of syndicated surveys remained an on-going project. Also, this
year will continue the trend of major media agencies developing and fine-tuning their proprietary strategic
planning tools
The working software is SESAME, which offers possibilities of target definition, simple tables listing,
crosstab generation, cluster analysis, duplication analysis, media ranking and media planning.
The DSA-BRAT General Assembly of March 2014 has decided regarding the methodology for the next
study cycle. The universe will remain the same (urban residents aged 14 to 74 years) and a total yearly
sample of 14,000 individuals for the SNA component and 7,000 individuals for the Focus component, with
the difference being covered through data fusion. Data collection is done through a hybrid methodology
consisting in CAPI (for SNA), and PAPI or CAWI (for Focus). Furthermore, at the beginning of 2015, BRAT
decided to expand the survey universe to rural areas.
62
ROMANIA 2015
63
Metropolis Bravo, Str. Grigore Alexandrescu 89-97,
Bucharest 1, Romania
T+ 4021 301 01 00 F +4021 301 01 99
www.initiative.ro
www.initiativeblog.ro
www.linkedin.com/company/initiative

here - Media Factbook

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