Year 2010

adVerTising media

MarkeT oVerVieW

1

Latvia media advertising market

declining by 13% comparing Y2010

vs. Y2009

2

Media billings declining by 13%

108.2

133.7138.2

75.2

65.3

86.7

0

25

50

75

100

125

150

2005 2006 2007 2008 2009 2010

Net EUR, millions

+3%

-46%

• Decline in advertising net spending for non-TV media: highest drop in print (-31%) followed by outdoor (-22%), radio (-19%) and cinema (-11%)

• Only TV (-1%) and internet (-2%) managed to secure investments approximately at level of previous year

+25%

+24% Difference in Net spending, EUR

Y2010 vs. Y2009

Media

TV -1%

Radio - 19%

Newspaper - 32%

Magazine - 30%

OOH - 22%

Internet - 2%

Cinema - 11%

Total Market - 13%

Data source: TNS Latvia, LRA

-13%

3

Y2009

Magazines

11%

TV

40%

Radio

12%

Outdoor

11%

Cinema

1%Internet

11%

Newspapers

14%

TV gains market share by ~4pp, reaching 44%

Y2010

Magazines

9%

TV

44%

Radio

12%

Outdoor

10%

Newspapers

11%Internet

13%

Cinema

1%

Data source: TNS Latvia, LRA

• Considerable changes in ad spending share: TV (+4pp) and print (-5pp). Othermedia SOM fluctuations are within range of ~1 pp

• Internet strengthens positions and has gained even higher share than all other non TV media, being 2nd top media by SOM (13%)

• Growth in TV share – ensured by drop of non-TV media investment (especially print) while TV spending remain approximately at level of Y2009

4

Starcom predicts Y2011

Latvia advertising market

decline by 3%

5

Starcom predicts Y2011 Latvia advertising

market decline by 3%

108.2

133.7138.2

75.2

65.3 63.3

86.7

0

25

50

75

100

125

150

2005 2006 2007 2008 2009 2010 2011*

Net EUR, millions

• Latvia ad market will continue to decline and will stabilize only in Y2012. Latvia still have unstable economical situation, which caused by changes in fiscal policy and growing burden of taxes for customers

+3%

-46%

+25%

+24%

-13%

Data source: TNS Latvia, LRA & Starcom prediction

-3%

6

Central & Eastern Europe markets recovering

faster: planned 8% growth in Y2011

-25%

7% 8%

3%

-46%

-13%

13%

-3%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Y08 vs. Y07 Y09 vs. Y08 Y10 vs. Y09 Y11 vs. Y10

Year on year % change for media billings Central & Estern europe Latvia

Data source: TNS Latvia, LRA & Starcom prediction

Zenith Optimedia market predictions

7

© Starcom