According to the 2013 edition of the Media Fact Book (by Initiative Media), in 2012 only the media segment reached EUR 303 million, registering a small decrease of 2% compared with 2011, when the market was estimated at roughly EUR 309 million. Initiative Media projects the slowdown to continue in 2013, when the media segment is estimated to reach EUR 295 million.
Media budgets were unevenly spread between the media channels, with online the only channel on an ascending trend (+21% in 2012 versus the previous year), with growth being driven by Facebook ads and Google AdWords. This trend is expected to continue in 2013 and 2014. Online keeps a well-deserved second place between the preferred channels of sponsors and advertisers, however at a huge distance from the number one channel. TV remains on the first place, with almost 2/3rds of the segment, with EUR 193 million.
Top sponsors in the media during 2012 were telecommunication (especially mobile operators) – with EUR 39 million, followed by cosmetics, hygienic and hair care in the second place – at EUR 36 million, medical & optical products & services dropped from the second place to the third – at EUR 30 million, while retailers reached EUR 12 million and beer, chocolate products and other sweet specialties combined reached EUR 46 million.
Speaking about the channel with the strongest potential, online media registered a value of EUR 22.4 million in 2012, according to ROADS, the study issued by IAB Romania, which represents only 54% of the estimated sum by Initiative Media, which extends to EUR 41 million in 2012. Initiative Media estimated for 2013 a growth of 12%, the online media market possibly stretching to EUR 46 million.
When referring to the market potential, we should keep in mind the internet users’ behavior and how it changes over the years. While the age group 14-29 registered a decrease of 8% between 2011-2012 and the group 30-49 years old stayed almost constant (+1%), the users over 50+ years old registered a spectacular growth y-o-y: +24%. This could mean that content should tend to reach a more mature and conservative audience. In the same time, users with less than 7 grades or attending vocational school are increasing their internet usage with 30% growth and 19%, respectively. During the same period, 2011-2012, the users with university degree stayed almost constant (-1%). Regarding frequency of use, while daily users decreased by 2%, the “several times per week” and “several times per month” users are increasing with 19% and 27%, respectively, which means that new users, most probably in the 50+ age group, do not become daily users of internet.
Two other factors that show the digitalization of Romanians, frequency of online products/services buying and online banking usage, indicate that the traditional reluctance to buy online starts to fade away: the number of users that sometimes buy online more than doubled in 2012 versus 2011, growing with 122%. In the same period, the frequent users of online banking rose by only 8%. The growing combination of TV and online channels used by brands in advertising campaigns show that advertising agencies should become more adapted to the online medium. According to Initiative media, the growth rate of display ads in 2012 in online can be explained through more engaging and more generous ad formats, doubled by special projects. Even if large groups have digital divisions, there is still a long way to go until most of the growing online potential is capitalized in advertising campaigns.
However, the growth for the entire online market can be explained largely not through display ad growth, but through Google AdWords and Facebook ads, the two players that offer ease of use for advertisers and the largest audience. For Romanian publishers not to be crushed by the two giants, they have to be extremely innovative and unite to reach large numbers of views in order to efficiently compete against Google and Facebook. In top ten of advertising agencies by revenues, the traditional McCann Erikson, Leo Burnett, MGA Metro Group, Graffiti/BBDO, Grey Worldwide, Odyssey, FCB Bucharest and Saatchi&Saatchi remained in top. 2013 EDITION Major Companies in Romania 5% 4% 54% 37% Facebook Yahoo Display Google AdWords On a short to medium term, according to the Entertainment and Media Outlook Report (by PWC) referring to a larger industry, encompassing media and entertainment, the market will register the third highest growth rate in the CEE between 2013 and 2017, starting from USD 2.44 billion in 2012 and reaching USD 3.53 billion at the end of the period.
