Estonian media market overview 2011 March

Media House / Meediauudised

1

Estonian media advertising market fell nearly 7%

Media market overview

Media HouseYear2011

04

Estonian media market 2010 > 1

Baltic media market 2010 > 2

TV – time spent watching TV> 3

TV – channels’ share, trends > 4

Print – top, news > 6

TV – news > 7

Print – top, news, forecasts > 8

Internet – top, trends > 10

M-advertising, radio – top, trends > 11

According to TNS Emor Advertising Expenditure survey Estonian media advertising market net turnover reached in 2010 to 66 million euros (70,9 million euros in 2009). Annual as a whole turnover fell -7%.

The year was characterized from quarter to quarter moving trend towards positive change - if in the first quarter the market decline still was about -19% and in the second quarter about -8%, then the third quarter was equal to the same period 2009 and the forth quater was nearly to numbers of the forth quater 2009.

73,1886,6

114,6 111,12

70,9 66,05

0

20

40

60

80

100

120

140

2005 2006 2007 2008 2009 2010

Turn

over,

Mill

ion E

UR

Estonian media advertising market (net) in 2010, EUR

From media types in the low-growth trend overall was the internet (about 7%), television and outdoor advertising (both about 1%), radio moved in the whole market with a small downturn at the same rate (about -7%). Continually in significant decrease was print, although the magazines` turnover was about -14% lower, newspapers` even -20%

33%

29%

7%

6%

29%

32%

10%

10%

8%

9%

13%

15%

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

2009

2010

Newspaper Magazine TV Radio Outdoor Internet


2

Baltic media advertising market decreased by 7% with 15,8 million euros

Baltic media advertising market

18%

11%

29%

19%

10%

9%

6%

9%

47%

45%

32%

42%

8%

12%

10%

10%

8%

10%

9%

9%

8%

13%

15%

11%

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

Lithuania

Latvia

Estonia

Baltic

Newspapers Magazines TV Radio Outdoor Internet Cinema

94

65,3 66

0

20

40

60

80

100

Lithuania Latvia Estonia

Turn

over,

Mill

ion E

UR

Baltic media advertising market (net) in 2010, EUR

-2%

-13% -7%

Baltic media advertising market net turnover reached in 2010 to 225,3 million euros. It is 7% less than year earlier.

The turnover of Latvian and Estonian markets was almost the same, but Latvian media advertising market had the the biggest drop -13% among Baltic countries in 2010. Lithuanian market fell 2%, Estonian – 7%.

From media types television has traditionally the biggest share in all three countries. Compared to Latvia and Lithuania share of printmedia in Estonia remains leading position among other media types.

Internet is the only one media channel, which share was growing in all three countries. In Lithuania it increased by 25%, in Latvia by 2%, in Estonia by 7%.


3

TV watching time +

TV

According to TNS Emor TV Audience Meter survey 2010Estonians watched TV on average 3 hours and 39 minutes per day and non-Estonians 4 hours 30 minutes. In 2009 Estonians spent 3 hours 38 minutes and non-Estonians 4 hours 26 minutes watching TV.

The average TV watching time in February 2011 was 4 hours 14 minutes for Estonians and 5 hours 3 minutes for non-Estonians correspondingly.

Channel reach

The reach of niche channels (Fox Life, Fox Crime, National Geographics, Kanal11, TV6, ETV2 ) increased significantly compared to February 2010.

National Geographics showed the biggest growth – from 17,4% to 22,3% monthly reach in

February 2011. Fox Life, TV6, Fox Crime, Kanal11, ETV2 followed. Monthly indicators of other

channels decreased.

There are no changes in TOP3. ETV confirms his leading position with montlhy average reach

74%, followed by Kanal2 with 70,9% and TV3 with 69,8%.

7471 70

64

51 49

3935 34

30 2925 24 22

19

38 3632

1511 11

19

9 10 11 10

3 4 2 3

0

10

20

30

40

50

60

70

80

Reach by channel (%), February 2011

Monthly Reach Daily Reach


4

TV watching time (split by channels)

Share of viewing of major channels is decreasing last years. As seen from the graphic below year 2010 was quite uncertain, but Kanal2 managed to keep his leading position among commercial channels. There is a new channel – NTV Mir (instead of 3+) in TOP5.

The most popular programmes during the period January-February 2011 were traditionally for every February – the reception of the President at 93th anniversary of the Republic of Estonia (32% cover A4+) and Defence Force Parade (25% cover A4+). Worl cup skiing competition in Otepää is on the third place with 20% cover in TG A4+.

TV

The shares of major TV channels by timespent watching TV in February 2011 werethe following:

• ETV: 18,6%

• Kanal2: 15,1 %

• PBK: 11,0%

• TV3: 10,5%

• NTV Mir: 4,1%

Other channels

24%

Kanal 2

15%

Kanal 11

2%

PBK

11%

Ren TV Estonia

3%

TV3

10%

TV 6

2%

3+

3%

NTV Mir

4%

RTR

4%

ETV

19%

ETV2

3%

0

5

10

15

20

25

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

2009 2010 2011

Share

of

vie

win

g%

Major channels share of viewing %

ETV

Kanal 2

TV3

PBK

NTV Mir


5

Fill of advertising units on major channels

TV

The demand for advertising time on TV is still high.

The amount of time sold on major commercial channels continues to be on the edge with the amount of time allowed to be sold legally. Thus ―last minute‖ decisions to buy advertising seconds make the task of media planner quite complicated due to probable unavailability of desired advertising spots.

Maximum amount of sold advertising time

Permitted advertising time (excluding channels media own advertising):

• 15% of the broadcasting time of the day

• maximum 12 minutes per hour

The fill of advertising units in the main commercial channels in the first months of 2011 was higher compared to the same period in 2010. Increase in the fill of units was caused by parliamentary elections and political ads.


6

Fill of advertising units (2.)

TV

The following table shows the amount of advertising time sold by dayparts . The basis of the calculation is the rule that only 12 minutes of advertising by daypart is legally permitted.*

*NB! Since another rule is that in total 15% of daily airtime may be sold for advertising, 12 minutes per hour is not available in all dayparts during 24h. Therefore in the table the 12 minute rule is applied for time period 4 PM – 1 AM; for daytime zone (6AM – 4PM) 10,8 minutes per hour have been used. According to the above calculation, there should be no advertising during night-time zone (1-6AM) but since there actually is some advertising on air at night, the real fill% in some of the table-slots is even higher.


7

TV

Trends: digi-TV era

On July 1st, 2010 the analog broadcasting in Estonia was switched off and replaced with Digital TV.

Digital Television is a modern method of transmitting TV signals based on the newest digital signal processing technology. Unlike analog TV, where a constant video and audio signal are transmitted, in DTV all signals from the TV studio to the viewer are sent in a digitally encoded form. Thus DTV is much more flexible and has numerous important advantages compared to conventional analog television:

•Quality transmission of image and sound – a significantly clearer picture for the lack of static and the characteristic ―shadows‖ and disruptions of analog TV.

•The opportunity to use different qualities of images and screen formats, such as wide screen format, 16:9.

•Large savings on bandwidth — it is possible to transmit 4–5 different TV shows simultaneously in one analog TV channel, plus much more additional information and services such as EPG (Electronic Programme Guide), superteletext, e-commerce, Internet and e-mail, multimedia applications, radio, etc.)

•Mobile reception of programs is possible as well (from moving vehicles).

According to the recommendation of the EC Digital TV should replace analog broadcasting in the whole EU by the end of 2012 latest.


8

According to TNS Emor National Readership survey the cover of major print channels in the forth quarter 2010 did not change significantly compared to the third quarter 2010. ―Postimees‖ remains the most popular newspaper (18% cover) during the whole year. ―Õhtuleht‖ has not changed his position in 2010 as well.

The leader by popularity among magazines is ―Kodu&Aed‖ (7% cover). There is a new magazine in TOP 10 – ―Anne&Stiil‖ (4% cover). Previous quater it was on 15th place (3% cover).

Print

Top print media channels

4

4

5

5

5

6

6

6

6

7

COSMOPOLITAN

ANNE&STIIL

KODUTOHTER

NAISTELEHE NIPIRAAMAT

TEHNIKAMAAILM

KODUKIRI

PERE JA KODU

EESTI NAINE

METSALEHT (MAALEHT)

KODU&AED

Magazines TOP 10 Q4 2010

Average cover by issues (%)

TG: 15-74

7

7

7

8

9

9

10

11

15

18

NAISTELEHT

TARGU TALITA (MAALEHT)

STOLITSA

KROONIKA

EESTI PÄEVALEHT

EESTI EKSPRESS

MAALEHT

ARTER (POSTIMEES)

ÕHTULEHT

POSTIMEES

Newspapers TOP 10 Q4 2010

Average cover by issues (%)

TG: 15-74


9

Print

News: What does the future hold for print media?

Glossy magazines and top selling newspapers know the power of visual stimulation. A picture tells a thousand words. A great front page image can make or break print media sales. But is the future of print media digital?

New printing techniques revolutionized the industry and gave birth to full page color images in print media, digital content will change the way we read and consume print media in the future.

Digital media will put elements that enrich the reading experience - like rich colour photos that can be enlarged, video, sound, animations and 3D images - at the fingertips of every reader.

Static print will evolve into a customisable visual experience that can be shared, retweeted and bookmarked - a totally involved media experience.

New hand-held portable devices, such as Apple's iPad will put digital media in the hands of avid magazine readers and help them make the switch from print to digital media consumption.

Data sourced from http://www.independent.co.uk/life-style/gadgets-and-tech/news/why-magazines-and-print-media-should-be-excited-about-their-digital-future-1902372.html


10

Internet

Top webpages*

The usage of top webpages is decreasing. Exactly one year ago neti.ee was on the top with daily average reach 31,9%, in January 2011 neti.ee reached 27,3% and February 2011 showed only 27,0% of daily average reach.

Comparing to February 2010 main players have not changed. There is only one new portal – publik.ee (instead of rate.ee) in TOP 10.

*TNS Metrix 02.2010, 02.2011 Survey, does not include google.

http://www.socialbakers.com/facebook-statistics/estonia/last-3-months Password 2011 materials

6

7

7

10

11

17

20

20

23

27

publik.ee

elu24.ee

Windows Live Hotmail

ohtuleht.ee

hot.ee

Windows Live Messenger

delfi.ee

postimees.ee

Windows Live

neti.ee

Top 10 internet sites, February 2011

Average daily reach (%)

TG: 6-74

Internet facts 2010:• Internet use 76% or approximately 787 000 persons aged 15-74

• Internet bank use 69% or 718 000 persons aged 15-74 (compared to 46% in 2006)

• Every third person aged 15-74 uses social media every day

• Nowadays the most popular social media is Facebook - 369 860 users in Estonia

• 45% or 461 000 Estonians aged 15-74 made online purchases (compared to 10% in 2006)

• Every fifth person aged 15-74 makes purchases online at least once a month

• Before purchasing 57% or 593 000 Estonians aged 15-74 visited store’s website

• Estonians buy tickets (cinema, conserts), clothes, mobile phones, TV, radio, cameras, home appliances, travel and finance related services


11

M-marketing, Radio

Trends in m-marketing: Shoppers using phones to

make buying decisions

Data sourced from ForeSee Results, http://www.foreseeresults.com/news-events/media.shtml

Top radio stations

According to TNS Emor Radio Diary survey, daily average time spent listening to the radio during the last three months was 4 hours 18 minutes which is 15 minutes less than in the third quarter 2010.

The most popular commercial radio station is Sky Plus with 14,1% daily reach. Radio Elmar follows with 12,6%. The 3rd is Russkoje Radio targeting Russian speaking audience in Estonia with daily reach of 9,2%.

Mobile phones are increasingly changing the way people shop, according to ForeSee Results, which conducted a study of nearly 10,000 visitors to the biggest e-commerce sites in the U.S. It found that a total of 11 percent of Web shoppers reported having made a purchase from their phones, compared to only 2 percent a year ago. Users are also tapping into their phones to comparison shop. For instance, 56 percent used them to check prices, and 27 percent used them to read product reviews.

While in physical stores, more than two-thirds of mobile shoppers used their phones to visit the store’s own Web site, and nearly half visited a competitor’s site. Shoppers who were highly satisfied with a retailer's mobile experience were 30% more likely to buy from that retailer both online and offline.

4

4

4

5

6

6

7

9

13

14

Power Hit Radio

Raadio Uuno

Raadio 3

Narodnoje Radio/100FM

Sky Raadio

Raadio Kuku/Tartu Kuku

Star FM

Russkoje Radio

Raadio Elmar

Sky Plus

Top 10 commercial radio channels Q4 2010

Average daily reach (%)

TG: 15-74


12

Sources:

TNS EMOR (www.emor.ee)

Advertising Expenditure survey AdEx

TV Audience Meter survey

National Readership survey

Gallup e-ratings

Radio Diary survey

Media channels promo materials

ForeSee Results materials

SocialBarkers materials

Password 2011 materials

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Estonian media market overview 2011 March

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