MEDIA MARKET UPDATE

GLOBAL MEDIA MARKET PERSPECTIVE
ESTIMATED BY MAGNA/ IPG:
Global Ad Market Grew by +5.2% reaching $595 billions
in 2019, and will grow again by +5.7% in 2020

GLOBAL LINEAR TELEVISION AD revenues shrank by -4% to $173 billions this year,
reaching 29% share from the Global Ad Market, the poorest performance since
2009, as pricing increases can no longer offset the accelerated decline of linear
audiences, especially in an odd-numbered year without cyclical events/drivers.

DIGITAL ADVERTISING SALES (search, video, social, display) continued to grow by

double digits, although it is maturing, as predicted by MAGNA: +15% this year
globally. It’s a noticeable slowdown compared to +18% to +20% growth rates of the
last four years. Digital ad sales represented more than half of global ad sales for
the first time this year: 51.5% ($306BN).

SOCIAL MEDIA continues to be the fastest-growing digital format (+25% down from
+34% in 2018) ahead of digital video (+23% down from 30%), and search (+14%
down from +19%) while static display formats generate stagnating revenues. All
digital ad formats are slowing down due to the maturity of digital media
consumption and digital marketing in most markets.
Search remains the #1 digital format with 47% of total digital ad revenues ($144
billions) as brands re-allocate parts of their trade marketing budgets from
brick-and-mortar retail to product search on e-commerce platforms.

PRINT AD sales declined by -10%, in line with previous years, while radio advertising
revenues were stable.

OUT-OF-HOME advertising was the only traditional media to show significant growth
(+6.1%) in 2019 to $33.5 billion (not including cinema). The share of digital OOH in
total OOH ad revenues will reach 25% in 2020 as global DOOH ad sales grow by
+16%.
The return of cyclical events (US Elections, Summer Olympics, Europe’s Football
Championship) will mitigate the impact of the global economic slowdown. MAGNA
estimates that cyclical events will generate more than $7 billion of extra ad spend
globally in 2020 i.e. a 1.1% uplift. Excluding the impact of cyclical events, the
normalized global market growth would be +4.6% in 2020 instead of +5.7%, down
from +6.3% in 2019 and +6.8% in 2018.
 GLOBAL ADVERTISING GROWTH 2020

+6.8%
+3.5%
+5.7% +1.8%
+3.5%
+6.6% WE +3.3% +2.8% +2.3%
+7.9% +3.8%
+16.6% +12.6%
+3.9% APAC +5.9%

EMEA +4.3%
YOY growth +7.4%
including Cyclical Events LATAM
Less than 0% +6.1%
0% to 5%
+1.8%
5% to 10%
Greater than 10%
GLOBAL: +5.7% 2 countries < 0%
68 countries > 0%

ROMANIA MEDIA MARKET HIGHLIGHTS

2020 MEDIA MARKET FORECAST: +5.5 %

TV: +2.5% DIGITAL: +16% RADIO: +8% OOH: +5% PRINT: -5%

2018 2019 est. 2020 est. 2019 vs 2018 2020 vs 2019

TV 300 mil 315 mil 323 mil +5% +2.5%

Print 12.7 mil 12.1 mil 11.5 mil -5% -5%

Radio 25.7 mil 28.3 mil 30.6 mil +10% +8%

OOH 30.7 mil 32.2 mil 33.8 mil +5% +5%

Internet 84.8 mil 99.1 mil 114.5 mil +17% +16%

Total (Mil €) Media Market Forecast

2018 - € 454 mil 2019 - € 487 mil 2020 - € 514 mil +7% +5.5%
2019 & 2020 Net Media Market
Expected to Consolidate Growth All Channels Increasing Except Print
-2% Flat 3% 6% 10% 13% 10% 7% 5.5%
€ 303. mil

€ 305. mil

€ 313. mil

€ 332. mil

€ 366. mil

€ 412. mil

€ 454. mil

€ 487. mil

€ 514. mil
2012 2013 2014 2015 2016 2017 2018 2019 2020
est est

TV
Last year the TV market pace slowed down, but kept continued to grow with an
estimate of +5% in budgets increase vs 2018 (€315 Mio vs €300 Mio).
Total TV viewing continued to suffer from eroding, declining further in a -7%. Total
TV rating decreased vs last year and also the inventory sold (-5% decrease of
GRP30”sold 18-49,urban). Thus, the TV market average inflation remains strong
last year, with over 10% and ascending peaks in high seasons consumption.
As for the 2020 forecast, we expect again a decrease in the total inventory sold
(number of GRP30’’sold 18-49,urban) due to continuous total TV rating drop. Also
a moderate increase (+2.5%), in terms of TV advertising spent, excluding the
budgets attracted by EURO 2020.
The Top 5 highest spending categories in TV for 2019 were “Pharma”, “Retail”,
“Cosmetics, hygienic, hair care and cleaners”, “Telecommunication” and “Banking
& insurance services”.
Looking at what programs scored the best in people viewing choices, Live Sports
broadcasts on Pro TV ranked first, followed by “Romanii au talent“ (ProTv), “Chefi
la cutite” (Antena 1) along with Reality Shows and News Programs.
The Fall of 2019 revealed new shows, the newly launched “Sef sub acoperire”, the
comeback of “Masterchef” (Pro TV), the local TV series production “Profu’”
(ProTV), “Sacrificiul” and “Mangalita” (Antena 1).
 In 2019, in range with the trend for the total TV drop, Top 3 channels decreased in
ratings (target: 18 – 49, urban), registering -8% for PRO TV, -7% for Antena 1 and -5%
for Kanal D.

TV Market Landscape [2017 - Dec Est 2019]

450000 100

400000 90

80
350000
70
300000
60
250000
50
200000
40
150000
30
100000
20

50000 10

0 0
oc 17

oc 18

oc 19
se -17

de -17

se -18

de -18

se -19

de -19
ma -17

iul 7

no 17

ma -18

iul 8

no 18

ma -19

iul 9

no 19
ian 17

ian 18
ap 17

ap 18

19
ap 19
feb 17

iun 7

feb 18

iun 8

feb 19

iun 9
ma 7

ma 8

ma 9
au 7

au 8

au 9
.-1

.-1

.-1
i-1

i-1

i-1
1

1
.-1

.-1

.-1
.-

.-

.-
t.-

t.-

t.-
c.-

c.-
r.-

r.-

c.-
r.-
.-

.-

.-
r.-

r.-

r.-
g.

v.

g.

v.

g.

v.
.

.
pt

pt

pt
ian

GRP30 18-49 U Loading %

Spend Trends('00) TTV Rtg% 18-49 U

Prima TV & TVR1 were the champions in audience decrease (average), while Happy
Channel (women thematic) & DigiSport1 (live sports broadcast of important local &
international football championships) increased their performance in the average
rating.

Top 10 Channels Rtg% Evolution [18-49]

6

Pro TV
1
Antena 1
Kanal D
0
se 8

se 9
18
.18

19
8

.19

9
8
18

9
19
.18

.19
8

9
8

9
8

9
.18

.19
t.1

t.1
n.1

n.1
l.1
g.1

l.1
n.1

r. 1

g.1
n.1

r. 1
c.1

c.1
v.

v.
ai .

ai .
pt

pt
feb

feb
ar

ar
iu

iu
oc

oc
ap

ap
de

de
no

no
iu

iu
au

au
ia

ia
m

m
m

1,2

0,8
Romania TV
0,6 Antena 3
DigiSport 1
0,4
Digi 24
Prima TV
0,2 National TV
Pro 2
0
se 8

se 9
18

19
.18

.19

9
8

9
18

19
.18

.19
8

9
8

9
8

9
.18

.19
t.1

t.1
n.1

n.1
l.1

l.1
g.1

g.1
n.1

r. 1

n.1

r. 1
c.1

c.1
v.

v.
ai .

ai .
pt

pt
feb

feb
ar

ar
iu

iu
oc

oc
ap

ap
de

de
no

no
iu

iu
au

au
ia

ia
m

m
m

Loading* (% sold min/hour out of 12 min/hour legal limit)

The clutter is still visible in the market and along with TOTAL TV decreasing trend,
we estimate it will remain the same, despite the market cost inflation.
DIGITAL
Digital market ended 2019 at +17% vs 2018, reaching € 99.1 Mio. In 2020, we
foresee a +16% increase, up to a total budget of € 114.5 Mio, with Google &
Facebook consolidating their leadership positions, while local display will decrease
with -20% to € 13.9 Mio. Programmatic (excluding Google tools) is expected to
maintain an increase of 60%.
Internet penetration will continue to mature, while urban households with children,
led by full-time employees or by higher educated people are almost entirely
connected, we anticipate a significant progress to be made in rural areas and for
less privileged social categories.
As the most popular social networks have almost become synonymous with internet
usage, other platforms are rising, shaping new media habits for narrower, but very
active segments.

RADIO
For 2019, Radio confirmed the anticipated growth of 10%, reaching €28.3 Mio.
In 2020 it’s predicted to have a slowing down by an estimated of +8% vs. 2019, for a
total of €30.6 Mio.
Radio daily reach (target: All 11+) is stable both in urban areas (74.7%) and in Bucha-
rest (75.9%). Weekend audience performance dropped during the last year, mostly
due to the enhanced smartphones audio streaming capability. The radio audience
keeps stable from one year to another.
In terms of listeners preferences, Kiss FM remains most listened in urban area, while
Bucharest residents are prefering Radio ZU.
Top 5 categories in 2019 were: “Retail”, “Pharma”, “Telecommunications”, “Auto” and
“Cosmetics, hygienic, hair care and cleaners”.

OOH
Last year, OOH continued the uptrend with + 5% to €32.2 Mio, the trend is expected
to stay the same in 2020, with a forecast of +5% at € 33.8Mio.
Surprisingly, 2019 started full-throttle, fuelled by strong competition between brands,
Prima TValong with numerous
& TVR1 registeredOOH
highcampaigns
in averageand consequently
audience a high
decrease, occupancy
while rate in the(women
Happy Channel
first quarter. Further, sold-out situations are expected, along with an increased
thematic) & DigiSport1 (live sports broadcast of important local & international football usage
champion-
of special in
ships) increased projects,
averagedue to the lack of standard locations availability.
rating.
Top 5 categories for OOH in 2019 were: “Retail”, “Cosmetics, hygienic, hair care and
cleaners”, “Telecommunications”, “Restaurants”, “Non-Alcoholic Beverages”.
 www.mediafactbook.ro

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This publication is protected by copyright. No parts of this book may be reproduced without the prior written
consent of the copyright owner. Readers should understand that the data contained in the Media Fact Book
is as actual and accurate as the sources could provide at the moment the book was written.