Media Snapshot

Lithuania, July 2014

€ -

€ 10.000.000

€ 20.000.000

€ 30.000.000

€ 40.000.000

€ 50.000.000

€ 60.000.000

€ 70.000.000

Monthly Gross Ad Spends, EUR

Y2011-2012 Y2012-2013 Y2013-2014

Advertising market is growing: Summer is expected to be more

active comparing to the last years

+27%

+16%

Gross ad spends increased by +27% in May 2014 comparing to May

2013. May 2013 vs. May 2012 result was +16% growth. Growth is also

expected for the Summer months comparing to the same periods last

years.

TNS LT data

40%

50%

60%

70%

80%

90%

100%

May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14

Monthly Gross Ad Spends’ Shares, %

TV Online Display* Radio Print OOH Other

Online is overtaking ad spends’ shares from another mediums

despite the seasonality

Seasonality affects all mediums. However, Online* has acquired 3,4 percentage

points from all advertising market pie in May 2014 vs. May 2013. Online growth

trend is expected to continue.

TNS LT data

* Only local Lithuanian Online Display websites are being monitored. Noticable price inflation in international

channels(FB, google, youtube) suggests competition pressure is growing there as well.

+3,4 p.p.

4,5%

7,9%

4,0

6,0

8,0

10,0

12,0

14,0

16,0

Average Monthly All Commercial TV Channels’ Rating, 4+ Audience, %

Y2011-2012 Y2012-2013 Y2013-2014

TV ratings are recovering after relatively “lazy” Q1 2014 and

expected to be higher in Summer comparing to the last years

After the drop in Spring 2014 comparing to the previous years, TV ratings

have recovered in June 2014: +5% growth comparing to June 2013. FIFA

2014 and relatively cold Summer should keep more people at the TV screens

also in July.

+5%

TNS LT data

4,0

6,0

8,0

10,0

12,0

14,0

16,0

Average Monthly All Commercial TV Channels’ Rating, Women 20-50 Audience, %

Y2011-2012 Y2012-2013 Y2013-2014

“The Main Buyer” (Women 20-50) have also returned to the TV

screens, at least for the Summer

The drop of Women 20-50 TV ratings in Spring 2014 was even more

significant comparing to 4+ however, the recovery is also higher: +10% growth

in June 2014 vs. June 2013.

+10%

TNS LT data

FIFA World Cup was at the top positions in June 2014 and the

situation with Finals in July will be no different

Position Broadcast Name Broadcast Type TV Channel Rating*

1. FIFA 2014: Chile vs. Spain Sport LRT 7,2

2. FIFA 2014: Mexico vs. Netherlands Sport LRT 6,7

3. Šeimos šventė Local Music Show LNK 6,5

4. Lietuvos komiko vakaras 2014 Local Comedy Show TV3 6,5

5. Gintaras Ruplėnas. Kelias Local Documentary LNK 6,4

6. Safe Movie LNK 6,3

7. 18:30 News LNK 6,2

8. FIFA 2014: Brazil vs. Mexico Sport LRT 6,2

9. Police Academy 3: Back in Training Movie LNK 6,1

10. FIFA 2014: Spain vs. Netherlands Sport LRT 5,9

* Average Rating, 4+ Audience, %

TNS LT data

34% 33% 34% 39% 36% 36% 36% 36% 34% 34% 34% 31% 29%

30% 31% 38%

34% 37% 38% 39% 36% 36% 37% 41% 41% 39%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14

Monthly Commercial TV Groups’ Shares, %

MTG MG Baltic BTV BMA LRT Lietuvos ryto TV

MG Baltic group have strengthened their leading position but the

gap from MTG is expected to decrease in the upcoming months

MTG group has suffered from the ban of RTR broadcasting while MG Baltic

was able to grow their smaller channels. LRT increased because of FIFA 2014.

TNS LT data

MTG group: TV3, TV6, TV8, RTR

MG Baltic group: LNK, BTV, TV1, Info TV, Liuks!

BMA group: PBK, NTV, REN

29%

39%

40% 41% 42% 48% 45% 44% 45% 46% 42% 42% 43% 40% 37%

32% 33% 38%

33% 36% 37% 37% 34% 37% 37% 39% 39% 41%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14

Monthly Commercial TV Groups’ Shares, %

MTG MG Baltic BTV BMA LRT Lietuvos ryto TV

Even Women 20-50 have turned their backs to MTG in June and

this situation may remain similar during the Summer

MTG group has suffered both from the drop of TV3 share and ban of RTR

broadcasting while MG Baltic channels were stable.

TNS LT data

MTG group: TV3, TV6, TV8, RTR

MG Baltic group: LNK, BTV, TV1, Info TV, Liuks!

BMA group: PBK, NTV, REN

37%

41%

The resurrection of Russian TV channels and the merge of big

Online and Magazine markets’ players are happening in July

NTV MIR and RTR TV channels

are back on track since July after

not being broadcasted for 3

months for the misconduct of the

law.

The biggest Online news portal

“Delfi” officially acquired the second

biggest Magazines’ publishing

house “Ekspress leidyba” since

July. Advertising synergies are

expected from 2015.

Another victim in the declining

Newspapers market – the third

biggest daily newspaper

“Respublika” has become weekly

since June 2014.

Internet user base in Lithuania keeps increasing

Source: RAIT;

Internet penetration growth trends remains positive throughout the years without any signs

of weakening in 2014.

15-24 audience remains most avid internet browsers, whilst the 45-54

group became equal to 25-34 and 35-44 in terms of internet users

Source: Gemius Audience;

Gemius Baltic Online media Landscape;

- Split between male/female

(47%/53%) is close to the natural

population split;

- Older audiences (45+)

become accessible through

online advertisers more and

more;

- Capital Vilnius with other

regional centers maintain the

major share of internet users

in Lithuania, with only 18% of

all surfers being located in

villages and small towns.

Display channels mergers taking into effect, lack of inventory as

well as RTB growth was noticeable during 2014 q1/q2

Mergers and cooperation agreements

between news portals are taking into

action:

- MTG(TV) and 15min.lt(Online

newsportal) joined forces on

common advertising packages

proposals. Nonetheless, MTG on it’s

own is investing into digital content,

last initiative being the launch of

zinios.lt news portal.

- Delfi (news portal) and

Adnet(websites network) merger lead

to combined ad inventory packages

being sold at a discounted level.

Amount of newsportals/networks display

ad inventory available to be bought

through RTB systems is increasing. Delfi

and Adnet has been recently followed by

lrytas.lt. Though only a minor part is yet

sold through RTB, as well as private

2014 q2 was marked by nearly-full sold

outs by quite a few local display players,

that leading to more ad placements being

developed(those increased ad clutter) as

well as risk for higher price inflation.

Google is strenghening its display inventory proposition

Gmail sponsored promotion(GSP) beta

became available in Baltics. The prices

are those of performance channels’

levels, especially for the current time

whilst no tough competition is present.

Combined with “huge” visual ads with no

ad clutter format wise, many targetting

options, GSP campaigns are very

attractive for all advertisers.

FB initiative to develop specialized apps

to drive mobile app installs has a huge

win for mobile advertisers as well as a

large cash cow for FB itself. Google is

jumping into the train and rolling out it’s

own set of mobile-app-installs optimised

ad inventory/format.

Google display network is increasing it’s

targeting options set. Keyword,

placement, topic, Interests, Age/Gender

targeting was followed by the Parental

status criteria.

Facebook right-side ads grow larger, mobile adoption reaches

the turning point

Facebook right side ads – arguably the cheapest-CPM digital

advertising option out of all – for a long time remain a great

option for promo/traffic campaigns, as the really little visual

dimensions made it hard to be exploited for branding goals.

The situation is turning to better for image/branding

advertisers as FB is greatly increasing the size of right side

ads visuals. Combined with the proprietary Dentsu Aegis

network tools allowing for extensive competitors’ fans

targeting makes this channel a no-brainer to be used in most

of the communication campaigns.

The lack of advertising

clutter makes mobile

advertising very attractive.

The “low reach” question

seems to be diminishing

as well, as the amount of

Facebook mobile users

reachable with ads

overcame the 50% of

those of desktop. And the

gap keeps constantly

decreasing.

Youtube gained the attention from advertisers what in turn keeps

generating youtube ads’ price inflation

Source: Gemius, Youtube research;

TG: w20-50;

Launch of Youtube ad sales in Baltics disturbed the VOD market a bit. Reach-wise youtube remains the most attractive

channel whilst comptetition/pricing in it keeps in growing constantly and therefore it’s for the time being hard to forecast at

what levels prices will stabilize.

0%

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Tv3play.lt Lnkgo.lt Delfi TV Lrytas TV Youtube*

Reach TG Reach AC

Pull-push(Search+Social) advertising synergy emerges

Google is testing many paid search

product additions with one of the

most interesting being search

image extensions, which allows the

top ad to have additional image

extensions to be displayed thus

leaving to higher ad CTRs and

therefore lower CPCs as well.

Search traffic is considered one of

the most valuable for any brand,

especially performance-oriented. To

amplify the effect of intention-

targeting provided by search, a way

to automatically extend the search

traffic retargeting in social is

becoming available through

specialised tools available for

Dentsu Aegis clients.

Search engine optimisation market

is continuously shifting from (short-

term-effect) link building tactics to

valuable content generation. No

rule of thumb whether “short” or

“long” content is more effective

(client/situation specifics), but it’s

clear that real and valuable for the

TG content generation is the road

to go to get higher google rankings

and therefore larger shares of

organic traffic.

Contact:

Marius Marčenkovas

Media Director

Dentsu Aegis Network

Email: marius.marcenkovas@dentsuaegis.com

Phone: +370 646 15709