media landscape

SAATCHI & SAATCHI RUSSIATHE LOVEMARKS COMPANY

Total media market trends2009-2010


4470

90113

142

267

193218

181

229

201

0

100

200

300

400

500

600

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010f

Med

ia m

ark

et

vo

lum

e -

RU

R, b

illio

ns

Actual Optimistic forecast* Pessimistic forecast*

Media market In 2009 ATL media market** dropped by 28%. In 2010 4%-13% growth is forecasted.

59%29%

26%26%

27%26%

17%

Source: AKAR, PGM estimation

-28%

*February 2010 estimation

13%

4%

**For Internet only display advertising is included (not context advertising)

2009:RUR 193 bn.

$ 6.1 bn. €4.4 bn.


7% 6% 6% 6% 6% 7% 7% 5% 5% 5%

34%41% 42% 43% 46% 48% 50% 52%

59% 58%

41%34% 32% 31% 28% 25% 23% 22%

17% 17%

18% 18% 18% 18% 18% 18% 18% 17% 14% 15%

1% 1% 1% 2% 2% 3% 4% 4%1% 1% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010f

% o

f to

tal

me

dia

ma

rke

t v

olu

me Others

Internet***

Outdoor

Print

TV**

Radio

Media market segments share dynamicsPessimistic forecast*


* February 2010 estimation

** Since 2007 non-terrestrial TV was included in TV

***For Internet only display advertising is included (not context advertising)


94%

80% 76% 73%

40%31%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

TV Newspapers Radio Magazines Internet Cinema

Source: TNS Russia Research:M’Index (2009)Geography: Russia Cities 100+TA: P 16+Time: 05:00 – 29:00

Media penetrationTV has the highest penetration – 94%


Media usage trends 2009Q4/2008Q4Internet usage doubledTerrestrial TV, Non-terrestrial TV and Cinema grew by 5-13% Radio, OOH and Print usage fell by 7-13%

Source: TNS Russia, ESPAR-Analyst, PGM Media Logics estimationsResearch:M'Index, TV Index, ESPAR (2007Q4, 2008Q4, 2009Q4)Geography: Russia, 100K+TA: P16+


Media Usage 2010/2009 ForecastSource: Media Logics estimates

MEDIA TREND COMMENTS

Internet + 70.. 100%Faster and faster usage growth observed firstly thanks to faster and faster Internet connection

Non-Terrestrial TV +10.. 15%Usage growth is slowing down as penetration is already great and can’t grow fast further

Cinema +5.. 10% Cinema visiting positive trend is gradually recovering after 2009 crisis fall

Terrestrial TV 0.. +5%Potential further growth of unemployment could result in growth of home spending what could increase TV viewing

OOH 0.. -5%Potential further growth of unemployment could result in fall of OOH spending what could decrease OOH audience

Print -5.. -10%Further pressure from growing Internet usage could lead further fall of «off-line» reading

Radio -5.. -10%Further pressure from growing on-line listening could lead fall of «off-line» listening


Format Russia UK Germany Italy Czech Rep Poland Ukraine

TV (national) 30” 3.7 10.8 13.6 6.3 8.0 1.5 1.8

Magazines (national) 1/1 4C 8.9 9.3 12.9 4.6 35.1 5.1 11.0

Radio (national) 30” 1.9 3.2 2.4 3.2 2.3 0.2 4.8

OOH 6x3 0.5 n/a n/a n/a n/a n/a 1.0

Cost per Thousand comparison (USD), Adults

Source: PGM Global Database. 2006MEDIALOGICS est. (for Russia), 2009Geography (Russia): Cities 100+TA (Russia): P16+

Media cost per thousandTV CPT is still below European average, while Magazines and Radio are already very close


Russian TV 2009


Role of TV in Russians life TV is the most common time spending with almost 4 hours a day.TV viewing level is 5% above European average.

239

197

26

17

11

10

8

TV

Radio

Online

Print

Music

Books

Video

Ave. daily spends in minutes, Adults Average TV watching minutes by country

300

240

252

252

228

222

168

228

239

USA

Japan

Germany

Italy

Norway

Poland

UK

Europe Average

Russia

Source: TNS Russia, RTL GroupResearch:M’Index (2009)Radio Index (2009)TV Index (2009)TV International Key Facts (2004)Time: 05:00 – 29:00


100%89%

109%

64%

98%

141%

Average Male Female 4-24 25-54 55+

TV viewing by dem. groups

daily dynamics is “8 hours work day” model:

weekends daily viewing is higher:

peak in Winter, fall in Summer: females and elders are the heaviest viewers

6 8 10 12 14 16 18 20 22 24 26

8 HOURS

Key TV viewing peculiarities

5 7 9 11 13 15 17 19 21 23 25 27

Weekdays

Weekends

114%

107% 108%

101%

94%

88%84%

88%91%

100%

112% 111%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

TV viewing seasonality (100%=av.viewing)


Shares of National \ Local \ Non Terrestrial TVThe most part – 88% of TV viewing belongs to national channels.During past 4 years share of Cable and Satellite TV was growing and now it is 6.7% while share of local channels was reducing.

Source: TNS RussiaResearch:TV Index (2005-2009)Geography: Russia, 100K+Time: 05:00 – 29:00TA: 18+

89.7% 89.2% 89.2% 88.6% 88.3%

7.3% 6.9% 5.9% 5.5% 4.9%

2.9% 3.9% 4.9% 5.9% 6.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009

% o

f TV

vie

win

g

National Local Cable+Satellite


National channels available: Despite of its size Russia has more big channels than European countries on average

12 of these channels cover > 70% of adults

Number of channels with penetration > 70%

0 5 10 15 20 25 30 35

Germany

Italy

Poland

UK

Norway

Europe Average

Russia

Russians do have a broad choiceThere are now 20 national channels and hundreds of locals in RussiaNumber of large channels is above Europe average

Source: TNS Russia,RTL GroupResearch:TV Est. survey (2009)TV International Key Facts (2004)


Source: TNS Russia Research:TV Index (2008,2009)Geography: Russia, 100K+Time: 05:00 – 29:00TA: 18+

0% 5% 10% 15% 20%

PERVY KANAL

ROSSIYA 1

NTV

STS

TNT

REN-TV

TV TSENTR

TV-3

DOMASHNY

ROSSIYA K

DTV

SPB 5

ROSSIYA 2

ZVEZDA

ROSSIYA 24

MTV

MUZ TV

2X2

7TV

EURONEWS

Non-Terrestrials

Locals

PERVY KANALROSSIYA 1

NTV

STS

TNT

REN-TV

TV TSENTR

TV-3

DOMASHNY

ROSSIYA K

DTV

SPB 5

ROSSIYA 2

ROSSIYA 24

MTV

MUZ TV

2X2

7TV

EURONEWSNon-

TerrestrialsLocals

ZVEZDA

-40% -20% 0% 20% 40% 60% 80% 100%

50% of audience

Ch

ann

els

shar

e 20

09

+/-

200

9 vs

. 20

08,

%

TV Channels Ranking Half of audience 18+ is occupied by TOP3 channels.The leader’s “Pervy Kanal” (“First Channel” – rus.) share is 19%


PERVY KANAL

ROSSIYA 1

NTV

STS

TV TSENTR

ROSSIYA K

REN-TV

TNT

MTV

MUZ TV

TV-37TV

EURONEWS

DTV

ROSSIYA 2

DOMASHNY

ZVEZDA

SPB 5ROSSIYA 24

2X2

20

25

30

35

40

45

50

55

60

30 35 40 45 50 55 60 65 70 75 80

Audience av. age

% of women in audience

TV Channels Gender SegmentationThe biggest channels are Elder-Female oriented.There are possibilities to reach Youth and Men, but they are limited

Elder-WomenElder-Men

Young-WomenYoung-Men

Source: TNS Russia, Research:TV Index (2009) Geography: Russia, 100K+TA: P04+

Size of bubbles ~ channel daily reach size,

Axes-cross correspond to total population’s % of females and ave. age


Allow to place ads: Ad is Forbidden:

…and hundreds of locals..

Commercial channels19 of 20 national channels and all locals with sum 98% sell their air-timeIt means that almost all TV viewing could be used for commercial campaigns

Source: TNS Russia Research:TV Index (2009)Geography: Russia, 100K+Time: 05:00 – 29:00TA: 18+

98% of viewing 2% of viewing


+1,4%

National TV Sales HousesVideo International and Gazprom-Media together have 95.1% of TV viewing. It’s a duopoly.Since 2008 MTV and TV-3 joined VI. Since April 2008 7TV joined VI.

VI

Other

64.8%

31.6%

3.6%

2008 Share,%

Source: TNS Russia Research:TV Index (2008,2009)Geography: Russia, 100K+Time: 05:00 – 29:00TA: 18+

VI

Gazprom-Media

Other

62.2%

33.0

4.9%

2009 Share,%

2009 VS

2008

-2.6%

+1,2%

Gazprom-Media


Program \ Ad \ Channels promoPrograms occupy only 85% of commercial channels broadcastThe rest time is for ad and channel promo in 4:1 proportion

Source: TNS Russia Research:TV Index (2009)Geography: MoscowTime: 05:00 – 29:00

Channels promo – 3%

Programs

85% of broadcast

Commercials – 12%


% of category w ithin view ed ad (2009, national)

18%

11%

11%

10%

7%

7%

6%

5%

4%

3%

18%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Beauty & Healthcare Goods

Non-Alcoholic Drinks & Beer

Food

Medicines & Bio Active Supplements

Household Chemicals

Telecommunications

Confectionery

Cars & Accessories

Retail

Perfumery

Others

Ave. viewed ad time:

17.7 min a day

Ad viewed volume and structureAverage viewer is exposed to 17.7 minutes of national ad a dayDifferent FMCG are the most advertised categories

Source: TNS Russia, PGM ExpertsResearch:TV Index (2009)Geography: Russia, 100K+Time: 05:00 – 29:00TA: 18+


TV 2009:RUR 113.7 bn.

€2.6 bn. $3.6 bn.

15 29 38 4966

86113

139114

123

112

34%

41% 42% 43%46% 48% 49%

52%

58% 58%

57%

0

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010f

TV

ma

rk

et

vo

lum

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RU

R, b

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0%

10%

20%

30%

40%

50%

60%

70%

Sh

are o

f T

V i

n m

ed

ia m

arket

Actual Optimistic forecast* Pessimistic forecast* Share Actual Share Optimistic* Share Pessimistic*

TV ad market growth is ahead of total media marketTV share constantly grew, it means that TV spends grew faster than others.In 2009 TV market volume was $3.6 bn. = 58% of media market. Ruble inflation forecast on national channels for 2010 is 0%...+10%.

93% 32%29% 34%

30%32%

23% -18%



10%

0%


Decreasing of national ad viewed stopped

Because of new Ad Law limits: TV viewing was falling till Mar 2008; currently it’s growing:

National Ad viewed (ave. min / day)

17.819.7 20.5

21.923.8 23.0

21.3

17.4 17.7

0

5

10

15

20

25

2001 2002 2003 2004 2005 2006 2007 2008 2009

Average TV watching time per day (average by last 12 months)

205

210

215

220

225

230

235

240

245

250

2003 2004 2005 2006 2007 2008 2009

Since July’06:20% an hour,

15% of broadcast

Since Jan’08: 15% an hour

Source: TNS Russia Research:TV Index (2001-2009)Geography: Russia, 100K+Time: 05:00 – 29:00TA: 18+

Negative tendency in 2006-2008 took place…


How much money to support a brand?Different brands need different support level Just to imagine avg. spends level: 1900 GRPs 30” costs ~ $ 4M (2009)

Source: TNS Russia, AKAR Research:TV Index (2009)Geography: Russia, 100K+Time: 05:00 – 29:00TA: 18+

Ave annual spends per brand:

~ 9.5 min. ad to everybody or

1900 GRPs 30”

~ RUR 127M,

$ 4M,

€ 2.9M

Spends vary greatly from brand to brand:

Danone, Schwarzkopf, MTS, L'Oreal Paris,

Megafon, etc.

40 000 GRPs 30”

<100 GRPs 30” (small and one-day brands)

ave. 1900 GRPs 30” per brand


Top 20 Categories (GRPs 30” 18+)Medicines & Food Supplements, Mass Actions, Financial Services and Retail showed significant growth. HH Appliances, Cars & Accessories, IT hardware on the contrary fell noticeably.

Source: TNS Russia Research:AdFact (2008,2009)TV Index (2008,2009)Geography: Russia, 100K+TA: P18+


Top 20 Advertisers (GRPs 30” 18+)

P&G, Coca-Cola, Bee Line and Colgate-Palmolive reduced 30’’GRPs18+ volumes. L’Oreal, Nestle, Kraft Foods, Pepsi Co, M.Video showed more than 40% growth.

Source: TNS Russia Research:AdFact (2008,2009)TV Index (2008,2009)Geography: Russia, 100K+TA: P18+


Ratio of National and Local TV marketsShare of local inventory is growing due to growth of local inventory at national channels

82.1% 81.9% 81.3% 80.1% 77.9% 76.7%

10.5% 11.9% 12.3% 13.8% 16.2% 17.0%

7.4% 6.3% 6.4% 6.2% 6.0% 6.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2005 2006 2007 2008 2009

30

''G

RP

s1

8+

vo

lum

e r

ati

oNational Local at national channels Local at local channels

Source:TNS Russia Research:AdFact (2004- 2009)TV Index (2004- 2009)Geography: TOP citiesTA: P18+


Top 20 regional Advertisers (GRPs30” 18+)There were many new participants in Top 20 in 2009. MTS, Ferrero and Hartog Holdings SA increased their regional volumes significantly. Wimm-Bill-Dann could go up from the 4th to the 3rd position. L'Oreal on the contrary change the 3rd to the 8th position.

Source: TNS Russia Research:AdFact (2008,2009)TV Index (2008,2009)Geography: TOP CitiesTA: P18+


Non-TV mediaOOH


Outdoor 2009:RUR 27.3 bn.

€0.6 bn. $0.86 bn.

8 13 1621

2633

4046

27

31

29

18% 18% 18% 18% 18% 18%18%

17%

14%

15%

15%

0

20

40

60

80

100

120

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010f

OO

H m

ark

et

vo

lum

e -

RU

R, b

illio

ns

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Sh

are

of

OO

H in

me

dia

ma

rk

et

Actual Forecast Optimistic* Forecast Pessimistic*

Share Actual Share Optimistic* Share Pessimistic*

Outdoor growth rateOutdoor decreased by 40% in 2009, which is greater than the total market (-28%). Its share in the total market volume decreased. Ruble inflation forecast for 2010 is +5%...+10%.

56% 30%26%

25%29%

22%13%

-40%



15%

5%


Dec 2004; 76 381

Dec 2009; 120 573

Dec 2004; 41 695Dec 2009; 42 476

Dec 2007; 45 450

Nov 2007; 50 051

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

Jan

2004

Feb

2004

Mar

2004

Ap

r 2004

May 2

004

Ju

n 2

004

Ju

l 2004

Au

g 2

004

Sep

2004

Oct

2004

No

v 2

004

Dec 2

004

Jan

2005

Feb

2005

Mar

2005

Ap

r 2005

May 2

005

Ju

n 2

005

Au

g 2

005

Ju

l 2005

Sep

2005

Oct

2005

No

v 2

005

Dec 2

005

Jan

2006

Feb

2006

Mar

2006

Ap

r 2006

May 2

006

Ju

n 2

006

Ju

l 2006

Au

g 2

006

Sep

2006

Oct

2006

No

v 2

006

Dec 2

006

Jan

2007

Feb

2007

Mar

2007

Ap

r 2007

May 2

007

Ju

n 2

007

Ju

l 2007

Au

g 2

007

Sep

2007

Oct

2007

No

v 2

007

Dec 2

007

Jan

2008

Feb

2008

Mar

2008

Ap

r 2008

May 2

008

Ju

n 2

008

Ju

l 2008

Au

g 2

008

Sep

2008

Oct

2008

No

v 2

008

Dec 2

008

Jan

2009

Feb

2009

Mar

2009

Ap

r 2009

May 2

009

Ju

n 2

009

Ju

l 2009

Au

g 2

009

Sep

2009

Oct

2009

No

v 2

009

Dec 2

009

tota

l # o

f su

rfa

ces

Other cities (31 biggest)

Moscow

Source: TNS Russia Research: AdFact (Jan’04-Dec’09)Geography: TOP Cities

OOH market development For the past 5 years # of sites grew by 2% in Moscow and by 58% in regions. In regions growth has stopped and # of surfaces even fell a bit. Since Dec’2007 about 10% of Moscow sites were taken down, mainly in the centre. In December 2009 # of Moscow sites was 6.5% less than in December 2007. Under the circumstances of low demand suppliers stopped placing new surfaces and in some cased even remove existing ones in order to reduce expenses and put demand and supply to the same level.


60%

65%

70%

75%

80%

85%

90%

95%

100%

Jan

Feb

Mar

Ap

r

May

Ju

nJu

l

Au

gS

ep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

rM

ay

Ju

n

Ju

lA

ug

Sep

Oct

No

vD

ec

Jan

Feb

Mar

Ap

rM

ay

Ju

n

Ju

lA

ug

Sep

Oct

No

vD

ec

Jan

Feb

Mar

Ap

rM

ay

Ju

nJu

lA

ug

Sep

Oct

No

vD

ec

% o

f su

rfaces s

old

Moscow

Saint-Petersburg

Other Cities

Source: TNS Russia Research: AdFact (Jan’06-Dec’09)Geography: TOP CitiesSold-out dynamics

In 2Q 2009 sold-out difference between Moscow and other cities started reducing.

2006 2007 2008 2009


57%

11%

10%

5%

4%

4%

3%

2%

1%

3%

0% 10% 20% 30% 40% 50% 60%

Billboard

Trivision

Light Box

Pillar

Bus Shelter

Lamppost Sign

Kinetic Board

Unipole

Painted Wall

Others

Format share of total # of surfaces, Dec'09

Top OOH Formats3x6 Billboards and their subtype 3x6 Trivisions are the most common format – 68% of total surfaces. Small formats Light Boxes, Lamppost Signs, Pillars, Bus Shelters account for 23%.Light Boxes, Pillars, Lamppost Signs and Painted Walls fell greater than market.

Source: TNS Russia Research: AdFact (Dec 2008, 2009)Geography: 50 TOP Cities

5%

11%

-6%

-1%

0%

5%

-2%

2%

-12%

-10%

-5%

-15% -10% -5% 0% 5% 10% 15%

Billboard

Trivision

Light Box

Pillar

Bus Shelter

Lamppost Sign

Kinetic Board

Unipole

Painted Wall

Others

TOTAL

+/- % # of surfaces, Dec'09 vs Dec'08


TOP 20 OOH Categories Two of three leaders of 2008 (Cars and Telecommunications) reduced their shares. Mass actions on the contrary increased its share and occupied the 3rd position. Well growth of Tourism, Sport & Leisure was observed.

Source: TNS Russia Research: AdFact (2008,2009)Geography: 50 TOP Cities


TOP 20 OOH Advertisers 3 top positions are occupied by cellular operators. Two of them (Bee Line and Megafon) reduced their shares in 2009. Samsung reduced its share significantly and went down from the 3rd to 8th position. LG on the contrary moved from the 30th to 6th place.

Source: TNS Russia Research: AdFact (2008,2009)Geography: 50 TOP Cities


Non-TV mediaPrint


Print 2009:RUR 32.6 bn.

€0.7 bn. $1.03 bn.

1824

2935

3945

5258

33

36

34

22%

17%

41%

34%32% 31%

28%25%

23%

17%17%

0

20

40

60

80

100

120

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010f

Prin

t m

arket

vo

lum

e -

RU

R,

bil

lio

ns

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Sh

are o

f P

rin

t in

med

ia m

arket



Print growth ratePrint dropped by 43% in 2009, which is greater than the total market (-28%). It’s share in the total market volume decreased. Ruble inflation forecast for 2010 is 0%...+10%.

33%21%

20% 14%13%

16%11% -43%



10%

5%


Source: TNS Russia Research: NRS (May-Oct’09)Geography: Russia 100+TA: P16+

Print genres coverageNewspapers is TOP genre in terms of coverage with 73%. Next is TV-Guides and Entertainment with 54.2%and 53.2% respectively.

72.9

54.2

53.2

48.4

41.9

40.0

33.8

23.6

22.3

21.8

20.1

17.1

14.9

14.7

12.0

9.1

9.1

4.6

4.2

0 10 20 30 40 50 60 70 80

Newspapers

TV -Guides

Entertaining

Women's

General interest

Ad editions

Auto/Moto

Business & analitical

Interior & Design

Tourism

Sport

Cooking

Health

Men's

Computer

Family & children

Youth's

Gardening

Tech/Mobile

Half-Year audience, % P16+


18.0

12.4

8.1

7.9

5.5

3.2

3.1

2.8

2.4

2.2

0 2 4 6 8 10 12 14 16 18 20

Antenna/Telesem

Argumenty i Fakty

777

KP(W)

Iz Ruk v Ruki

Moya semya

Orakul

KP

Rossiyskaya Gazeta

MK-Region

TOP10 Newspapers by One Issue Cover, %

Source: TNS Russia Research: NRS (May-Oct’09)Geography: Russia 100+TA: 16+TOP Russian Newspapers

The most popular Russian title is TV-guide Antenna/Telesem


10.8

10.1

7.4

6.4

6.4

6.1

5.4

5.3

5.2

4.3

0 2 4 6 8 10 12

Cosmopolitan

Za Rulem

Telenedelya

Vokrug Sveta

Karavan Istoriy

7 Dney

Liubliu gotovit

Teschin Yazyk

Liza

Liza Krosswordy

TOP10 Magazines by One Issue Cover, %

TOP Russian MagazinesTwo first positions are occupied by the most popular female magazine “Cosmopolitan” and by auto edition “Za Rulem”.

Source: TNS Russia Research: NRS (May-Oct’09)Geography: Russia 100+TA: 16+


Source: TNS Russia Research: NRS (May-Oct’09)Geography: Russia 100+TA: P16+

TOP20 titles audience geographyTitles audience geographical distribution varies greatly E.g., share of Moscow and St. Petersburg is in the range from 17% to 66%

23%

66%

50%

50%

48%

46%

45%

42%

41%

33%

32%

30%

30%

29%

27%

27%

26%

26%

21%

20%17%

77%

34%

50%

50%

52%

54%

55%

58%

59%

67%

68%

70%

71%

73%

73%

74%

74%

79%

80%83%

70%

Total Population

7 Dney

Liza Krosswordy

Otdohni!

Karavan Istoriy

Liza Dobrye sovety

Vokrug Sveta

Zyatek

Teschin Yazyk

Liza

Argumenty i Fakty

Za Rulem

Liubliu gotovit

777

Igromania

Burda

Cosmopolitan

KP(W)

Telenedelya

Antenna/Telesem

Iz Ruk v Ruki

Mos + Spb Other cities 100K+


14%

10%

7%

7%

6%

5%

5%

4%

4%

3%

36%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Independent Media

Hachette Filipacchi Shkulev (AFS)

Burda

Conde Nast

Komsomolskaya pravda

Kommersant

7 Dney

Argumenty i Fakty

Delovoy Mir

Forward Media Group

Others

Supplier share (RC Costs) 2009

0%

2%

53%

5%

-12%

-52%

21%

0%

-2%

82%

12%

-60% -40% -20% 0% 20% 40% 60% 80% 100%

Independent Media

Hachette Filipacchi Shkulev (AFS)

Burda

Conde Nast

Komsomolskaya pravda

Kommersant

7 Dney

Argumenty i Fakty

Delovoy Mir

Forward Media Group

Others

+/- share change 2009vs2008

TOP Publishing Houses (central editions)Market is not very fragmented: 64% to TOP 10 suppliers.First is Independent Media with 14%.

Source: TNS Russia Research: AdFact (2008,2009)Geography: Moscow, Saint-Petersburg


TOP 20 Print CategoriesTobacco showed the largest growth in 1-3Q 2009. Real Estate on the contrary saw their shares reduced significantly.



TOP 20 Print AdvertisersOnly 4 from top 20 advertisers reduced their shares. 3 of them are car producers.



Non-TV mediaRadio


3 4 6 7 9

1315 14

9

9

9

5.2%4.7%

6.6%6.3% 6.3% 6.4%

6.0%

6.9%6.5%

4.4%

4.6%

0

5

10

15

20

25

30

35

40

45

50

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010f

Rad

io m

ark

et

vo

lum

e -

RU

R,

bil

lio

ns

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Sh

are

of

Rad

io i

n m

ed

ia m

ark

et



Radio 2009:RUR 9 bn.

€0.2 bn. $0.28 bn.

Radio growth rateRadio decreased by 36% in 2008. It’s share in the total market volume was stable till 2007, but both in 2008 and 2009 it dropped. Ruble inflation forecast for 2010 is 0%...+5%.

52%30% 26% 18%

47%**19%

** Changed method - a lot of regional markets added in 2006

-36%

-6%



0%

+5%


0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Russkoe Radio

Europe+

Autoradio

Shanson

Retro FM

Doroznoe Radio

Radio Rossii

Mayak

Humor FM

Love Radio

Daily Reach%

Top 10 stationsLeaders are Russkoe Radio and Europe +

Source: TNS Russia Research:Radio Index (3Q 2009)Geography: Russia 100K+TA: 12+Time: 05:00 – 29:00


TOP 20 Radio CategoriesMedicines & Food Supplements and Cars are leaders with noticeable advantage.



TOP 20 Radio AdvertisersTwo Materia Medica reduced its share noticeably but could keep the 1st position. Incredible growth of Toyota allowed it to occupy the 2nd position. All cars producers increased their shares.



Non-TV mediaInternet


2.9 5.7 7.4 7.7

1.7

9.5

8.70.2%

0.4%0.7%

0.9%1.2%

1.6%

2.5%2.8%

4.0%4.4%

4.4%

0

5

10

15

20

25

30

35

40

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010f

Inte

rnet

mark

et

vo

lum

e -

RU

R, b

illio

ns

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Sh

are

of

Inte

rnet

in t

ota

l m

ed

ia m

ark

et



Internet 2009:RUR 7.7 bill.

€0.17 bill. $0.24 bill.

Internet Market** Growth RateInternet spends grew much faster than total media. In 2009 it increased by 4%(while market dropped by 28%). Ruble inflation forecast for 2010 is +5%...+15%.

67% 70%71%

97%

4%32%



23%

13%

**Only display advertising is included (not context advertising)


Far-Eastern FD1.9 mln37% of population

Siberian FD5.1 mln32% of populationUral FD

3.5 mln36% of population

Volga FD7.7 mln31% of population

North-West FD5.4 mln48% of population

Central FD(w/o Moscow)

7.5 mln34% of population

Southern FD5.3 mln30% of population

Moscow5.5 mln61% of population

www.fom.ru Autumn 2009

Number of internet users by regions


Internet Monthly ReachInternet reach growth is very stable. For Russian cities 100+ monthly reach for last 2 years grew by 33%. Since December 2005 this indicator has grown by 85% in Moscow. Currently Internet monthly reach is 51% for Russia 100+, 64% for Moscow, 61% for Saint-Petersburg, 60% for Ekaterinburg.

39 39 3839 39

4141

41

38 3839

42 43

4544

46 45 45

48 47 4748 49

5052 51

35 3537 36

37 38 37 3736

38

41

43 4345

46

5152

54 53 52

50

5354

5556

5758

60 60 6059

57 58

6061

62 6260

61 61 6261

60 60 60 6163

64 64

5052

53 53

5556 56

54

60

58

61

59 5860

56

54

56

5654

20

25

30

35

40

45

50

55

60

65

70

Dec05

Feb06

Apr06

Jun06

Aug06

Oct06

Dec06

Feb07

Apr07

Jun07

Aug07

Oct07

Dec07

Feb08

Apr08

Jun08

Aug08

Oct08

Dec08

Feb09

Apr09

Jun09

Aug09

Oct09

Dec09

Russia, Cities 100+MoscowSt.-PetersburgEkaterinburg

Source: TNS Russia Research: Est. Survey for WebIndex (Dec’05-Dec’09)TA: 12+

Monthly Reach, % of All 12+


Source: TNS Russia Research: Est. survey for Web Index (2008,2009)Geography: Russia Cities 100+TA: 12+Internet connection type

Broadband connection is replacing dial-up. Currently more than three-quarters of Russian Internet visitors use broadband channel. Most of its growth comes from increasing of home broadband connection.

Connection type, % of monthly reach

22%

15%

70%

77%

3%

2%

6%

6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2008

2009

Dial-up Broadband GPRS Don't know


Source: TNS Russia Research: Est. survey for Web Index (2008,2009)Geography: Russia Cities 100+TA: 12+Mobile Internet

Currently 13% of people 12+ use Mobile Internet (on-line surfing through their mobile phones). And its penetration is growing.

Mobile Internet monthly reach, % of 12+

13%11%

0%

2%

4%

6%

8%

10%

12%

14%

16%

2008 2009


Source: TNS Russia Research: M’Index (2009)Geography: Russia Cities 100+TA: 18+

Internet usage vs. other mediaInternet time spending took the 3rd place after TV and Radio. Right chart shows the situation of close to 100% internet penetration.

239

197

11

11

8

6

26

10

TV

Radio

Online

Music

Newspapers

Books

Video

Magazines

Ave. daily spends in minutes, Adults

19

8

12

6

67

11

228

207

TV

Radio

Online

Music

Newspapers

Books

Video

Magazines

Ave. daily spends in minutes, Internet users


Source: TNS Russia Research: M’Index (2009)Geography: Russia Cities 100+TA: 16+

Internet users profileTypical heavy internet user is a man, 16-34 years old, rich and higher-educated

Internet heavy-user Affinity

0

50

100

150

200

250

male

female

16-24

25-34

35-44

45-54

55-64

65+

primary ed.

secondary ed.

higher ed.

low inc.

middle inc.

high inc.


77.3

69.8

39.7

38.0

33.6

20.5

12.7

12.5

9.8

0 10 20 30 40 50 60 70 80 90

Search

E-mail

Communication (forums, blogs etc)

Listening to music and downloadingmusic

Watching and downloading video

On-line games

Listening to radio by Internet

Purchasing through Internet

Creating personal Internet pages

Services used last month (% from Internet users)

58.9

27.6

0.0

-6.4

-4.7

-4.8

14.2

10.3

-10 0 10 20 30 40 50 60 70

Search

E-mail

Communication (forums, blogs etc)

Listening to music and downloadingmusic

Watching and downloading video

On-line games

Listening to radio by Internet

Purchasing through Internet

Creating personal Internet pages

+\- % change 2009 vs 2008

Source: TNS Russia Research: M’Index (2008, 2009)Geography: Russia Cities 100+TA: 16+, Internet users

Most used Internet servicesThe most popular web-services are search of information and E-mail. growth leader is communication. Listening to radio by Internet grew noticeably.


27%

30%

49%

16%

15%

47%

60%

59%

144%

23%

0% 20% 40% 60% 80% 100% 120% 140% 160%

+/- monthly reach, % 4Q'09vs4Q'08

52.7%

50.0%

39.2%

32.0%

31.2%

24.8%

18.7%

16.0%

15.7%

14.7%

56.3%

0% 10% 20% 30% 40% 50% 60%

Yandex.ru

Mail.ru

Vkontakte.ru

Odnoklassniki.ru

Rambler.ru

LiveJournal.com

Rutube.ru

LiveInternet.ru

Rian.ru

Tvigle.ru

Total Internet

TOP10 web-sites average monthly reach 4Q 2009, %

Source: TNS Russia Research: Web Index (4Q’08,4Q’09)Geography: Russia Cities 100+TA: 12-54

TOP Russian web-sitesYandex.ru and mail.ru are outstanding leaders. Then two social networks and rambler.ru. Vkontakte.ru increased its monthly reach more significantly than odnoklassniki.ru. 4Q 2009 growth leader from top 10 is rian.ru.

NA


Non-TV mediaCinema


Cinema 2009:RUR 0.5 bill.

€11.3 mill. $15.7 mill.

0.50.7

0.50.4

0.22% 0.22%

0.25%0.24%

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

2006 2007 2008 2009

Cin

em

a m

ark

et

vo

lum

e -

RU

R,

bil

lio

ns

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

Sh

are

of

Cin

em

a i

n t

ota

l m

ed

ia m

ark

et

Volume Share

Cinema Market Volume ChangeCinema spends fell by 29% in 2009 to 0.5 bill. rubles.

25%

Source: AKAR

40% -29%


Cinema goers (Russia)More and more people visit cinemas. Cinema visiting frequency was stable during last 3 years. An average cinemagoer visits cinema 0.8 times a month

0.75

0.820.79

0.820.77 0.79 0.78

0.3

0.4

0.5

0.6

0.7

0.8

0.9

2003/1 2003/2 2004/1 2004/2 2005/1 2005/2 2006/1 2006/2 2007/1 2007/2 2008/1 2008/2 2009/1 2009/2

Average number of visits per month for a cinema goer

Source: TNS Russia Research:M’Index (2003/1-2009/2)Geography: Russia, cities 100+TA: 16+

1715

19 19 1922

23

0

5

10

15

20

25

2003/1 2003/2 2004/1 2004/2 2005/1 2005/2 2006/1 2006/2 2007/1 2007/2 2008/1 2008/2 2009/1 2009/2

% o

f 1

6+

Cinema goers*

*People visiting cinemas more than once in 6 months


Top 20 movies in Nov-Dec’09

0 1000 2000 3000 4000 5000 6000 7000

2012

Avatar

The Twilight Saga: New Moon

Kniga Masterov

Christmas Carol, A

Cloudy with a Chance of Meatballs

Old Dogs

Tsar

Na Igre

Planet 51

Arthur et la vengeance de Maltazard

Men Who Stare at Goats, The

Pick Up. Syem Bez Pravil

Saw VI

Hachiko: A Dog's Story

Ukroshenie Stroptivyh

Law Abiding Citizen

This Is It

Paranormal Activity

Antikiller D.K.

Visitors, 000's

Source: www.film.ru

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