Changes in Media Landscape Prague, January 11, 2011

-15

-10

-5

0

5

10

15

70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

GDP Ad Expenditure

Year-on-year % change in constant prices

Advertising spend vs. economic trends

Source: HM Treasury, ZenithOptimediaNote: ATL media only

CEE adspend - Forecast

6,9

2,7

16,9

5,7

22,4

7,4

0,7

-3,8

14,2

-1,3

12,8

1,6

-10,7-12,6

-5,9

-11,2

-24,5

-6,5

4,92,4

14,5

4,16,7 6,3

14,8

8,9

26

9,7

31

23

-25

-15

-5

5

15

25

35

WORLD NorthAmerica

LatinAmerica

WesternEurope

Central &EasternEurope

Asia Pacific

2007 2008 2009 2010 2013 *

Adspend: year-on-year % change, current prices

Source: ZenithOptimedia, Dec 2010

* ) 2013 cumulated comparison vs. 2010

Czech market evolution forecast

Source: ZenithOptimedia, Dec 2010

Share of media consumption vs adspend USA, Japan and UK (2005)

Source: Veronis Suhler Stevenson, TGI, ZenithOptimedia

57%

22%

15%

4% 2%

37%

7%11%

31%

14%

0%

10%

20%

30%

40%

50%

60%

Television Internet Radio Newspapers Magazines

Media Consumption Adspend

0

5

10

15

20

25

30

35

40

2001 2007 2010 2013

+59%

+164%

+245%

CEE - Internet and TV will grow at expense of print

+133%

+173%

TV

Newspapers

MagazinesRadioOutdoor

16%16%

10%

52%

10%

17%

6%

54%

14%

10%

8%

8%

-26%

-2%

-24%

-17%

+62%

53%

Source: ZenithOptimedia, Dec 2010

Internet11%

5%-28%

$12bn

$30 bn

$27bn

US$ billion, current prices

4%

$36bn

55%

12%

9%

8%

11%

5%

+15%

+32%

+31%

+7%

+77%

+35%

Technology Change: higher media consumption

00

1010

2020

3030

4040

5050

6060

7070

8080

9090

100100

19601960 19801980 20002000 20202020

PrintPrint

19201920 19401940

Digital TVDigital TV

Analogue radioAnalogue radio

CinemaCinema

OutdoorOutdoorMobileMobile

Digital radio

GamesGames

InternetInternet

Analogue TVAnalogue TV

Source: ISOBAR

19401940

Media Consumption Average hours per week

media mutation

Radio onmobile

Interactiveposters via mobile,mobile couponing

News feedsto digitalbillboards

Movies onmobile

MP3 fileson mobile

Interactive TVvoting via mobile

News on mobile

Internet printowner sites

TV on PCPC on TV

Movies on TV,TV in cinema

Movies on PC

Next ?MORE…………….

• New technologies

– Digital content, devices, merging of content

– Video on demand (via the internet) from any screen

– TV: larger, higher definition, online, interactive

– Innovation in mobile devices. Video, GPS, electronic wallets…

• Personalisation

• Quality instead of quantity

• Interactivity

• Engagement

Thank you for your attention

Contact:

Petr MajerikCEO ZenithOptimedia PragueLecturer, University of Finance and Administration Praguepetr.majerik@zenithoptimedia.cz