AROUND THE WORLD IN 60 MINUTES
POST-SOVIET STATES:
DYNAMIC GROWTH
AND DIGITAL CHALLENGES
Boris Lozhkin
President of UMH group
UMH GROUP: KEY FACTS ABOUT US
INTERNET
— Leader among local players
UMH group in
Top-15
Media
Companies in
CIS
— 15 leading internet projects
— 43% of internet consumption
RADIO
— In top-2 market players
— 8 station (5 national)
— Market leader in internet, radio and publishing
— Segments: business, news, TV-guides, sport,
— 18% of radio consumption
— 64 cities
—
lifestyle, fashion,
— More than 50 media brands
PUBLISHING
— Market leader
— Offices in 42 cities (Ukraine, Russia),
Headquartered in Kiev, Ukraine
— 17 magazines and 7 newspapers
— 25% readership share
Source: RBC.RU media-ratings
POST-SOVIET COUNTRIES: THE MAIN FACTS
Ex-USSR now:
– 15 states
– 120 languages
– 2 countries in the Top-10 by
territory globally
– 3 countries are EU members
Russia
Total Internet population –
and
115 million
– The leader is Russia,
Ukraine is
the
60% of total
– Ukraine keeps the second
place (13%)
fastestTotal population
– 290 million
14 billion USD volume
growing
– Russia and Ukraine
represent 65% of population
of ad market (2012)
– Russia achieved 11,3 billion
markets
USD (85% of total)
Sources: ACAR, Ad Coalition, GosComStat Russia, UkrStat, Internet World Stats, et al.
MAIN TRENDS
1
Media spending keeps growing in all key
countries after the 2009 crisis
— Russian advertising market grew by 13%
to USD 11,3 billion in 2012
— Ukrainian advertising market grew by 9.7%
to USD 1.2 billion in 2012
2
Digital is the most dynamic segment
3
Print keeps being the main source of income for publishers, however, circulation keeps dropping down
Source: ACAR, Ad coalition USD with VAT
RUSSIA KEEPS GROWING
TO REACH TOP-10 MARKETS GLOBALLY
1
Traditional press keeps
growing in advertising
volume
2
Digital is the most dynamic segment
3
Print keeps being the main source of income for publishers, however, circulation keeps dropping down
Source: ACAR, USD with VAT
MAIN TRENDS IN THE REGION
1
Media spending keeps growing in all key countries after the 2009 crisis
2
Digital is the most dynamic segment
— Russian internet advertising market grew by 35%
to USD 2.1 billion in 2012
— Ukrainian internet ad market made USD 85 million
and expected 26% growth in 2013
— Internet is considered as the most influential source
of political news and information
3
Print keeps being the main source of income for publishers, however, circulation keeps dropping down
Source: ACAR, Ad coalition USD with VAT
RUSSIA: DIGITAL GROWTH
FOLLOWS GLOBAL TRENDS
1
Media spending keeps growing in all key countries after the 2009 crisis
2
— Digital share in
advertising market has
doubled in 3 years
— Press is primary
donor for digital
3
Print keeps being the main source of income for publishers, however, circulation keeps dropping down
Source: ACAR, Ad coalition USD with VAT
SAME TREND FOR UKRAINIAN
DIGITAL MARKET
1
Media spending keeps growing in all key countries after the 2009 crisis
2
Digital spending in Ukraine grows far ahead
of the market
3
Print keeps being the main source of income for publishers, however, circulation keeps dropping down
Source: ACAR, Ad coalition USD with VAT
MAIN TRENDS IN THE REGION
1
Media spending keeps growing in all key countries after the 2009 crisis
2
Internet is the most dynamic segment
3
Print keeps being the main source
of income for publishers, however,
circulation keeps dropping down
— The audiences of top titles are up to 10 million readers
— Press advertising spending slightly grew in 2012 in key
markets
— Digital media for publishers is rather subsidized than
profitable business currently
Source: ACAR, Ad coalition USD with VAT
TOP 10 PRINT BRANDS
ARE 5-10 M READERS PER ISSUE
3
1
Media spending keeps growing in all key countries after the 2009 crisis
2
Internet is the most dynamic segment
*Audience of one number in thsnd
Brand
Cover*
Type
Antenna-TeleSem’
9740.5
TV-guide
Argumenty I Facty
8295.1
Quality
Za rulem
7791.2
Auto magazine
Komsomolskaya Pravda
6954.5
Daily newspaper
Cosmopolitan
5916.2
Glossy
Telenedelya
5240.9
TV-guide
20000 respondents /yearly, F2F
Teleprogramma
4765.6
TV-guide
Source: TNS Central Asia, MIMI
Karavan istoriy
4308.1
Glossy/Lifestyle
people
Source: TNS Russia, NRS Russia,
Sep 2012- Feb 2013, 16+, 100000+,
80000 respondents /yearly, CATI
Source: TNS Ukraine, MIMI
Ukraine’ 2012/3+4, 16-65, 50000+,
Kazazhstan’2012, 15+, 100000+,
300 respondents /yearly, F2F
Lyudblyu Gotovit’
4234.6
Culinary
Liza
4221.4
Woman
Source: ACAR, Ad coalition USD with VAT
MAJOR CHALLENGES
Leading media brands compete for top
positions across the region, looking for a
MULTICULTURALISM
right mix of common values and postSoviet heritage, with effective adaptation
to every culture in every country
While traditional media expand their
presence on multimedia platforms, top
MULTIPLATFORM
media brands from non-competitive
segments start competing with each other
in a new digital world
Source: RBC.RU media-ratings
UMH GROUP
THANK YOU!