The main Media Market Trends & News we would like to share with you in this issue are the following: Brief TV Market overview o Commercial TV-market has increased by 40 % during the first half-year 2016 Digital Market overview featuring recent launches and new Advertising possibilities o Marketers look for marketing opportunities in the Pokémon Go phenomenon o Instagram launches business-profiles with analytics for Ukraine OOH Market Overview including the most innovative OOH cases & Trends from Ukraine & over the world Print & Radio Market demonstrate growth The short summary of up to date Consumer Trends & Studies UAC specified forecast of the advertising market volume in Ukraine in 2016

1. Media Market Digest July2016

2. 2
TV
 Grew by 6% vs Jan-Jul’15
 Price for commercial will
increase for 2-3 more years
p.3-10
Radio
 Twice increase vs Jan-Jul’15
 Results of the second wave of
radio listening survey
p.26-27
Research & Trends
 Smartphones usage in Ukraine
research results
 How do Ukrainians purchase
online?
p.28-33
Digital
 ¼ of users watch YouTube
more than TV in UA
 Instagram launches business-
profiles with analytics in UA
p.11-17
OOH
 Growth by 21% vs Jan-Jul’15
 The absolute leader in sales
remains Lviv with 94% sold-out
p.18-23
Print
 Moderate increase by 16% vs
Jan-Jul’15
p.25
 LION White Rock rocks on
Coub.com
Cases
ZOU Campaigns
p.34-35

3. 3

4. Jan-Jul’2016 in term
of WTRP’s vs Jan-
Jul’2015
4
Source: GFK/Nielsen, Direct Advertising, excl. Social & Media, TA: 18-50 50k+. Data owner is ITC. Processed by “CCM”
Subsidiary Enterprise
Key facts
SOR in average 88%In Jul’2016
The dynamics is typical for pre-crisis
years
Jul’16 vs Jun’16
Olympic Games in
2016 were watched in
average 2 times
worse* than in 2012
in WTRP’s
* In terms of Average Audience

5. 159,6
58,6
46,4
38,4
32,9
28,1
27,5
25,2
22,7
20,7
Pharma
Food
Telecom
Hygiene
Cosmetics
Trade
Cold AFB
Confectionery
Entertainment
Auto
13%
11%
13%
29%
128%
11%
29%
20%
-3%
-3%
5
Source: GFK/Nielsen, Direct Advertising, excl. Social & Media, TA: 18-50 50k+. ‘000WTRPs. Data owner is ITC.
Processed by “CCM” Subsidiary Enterprise
 Pro-Pharma activity increased, but that
didn’t stop Pharma activity decline vs June
 Pharmak ensured category growth vs
2015
 Myronivsky Hliboproduct(Nasha Ryaba)
activity fall was the main driver of Food
category reduction vs prev. month
 Johnson & Johnson activity drop caused
the Hygiene activity decrease vs prev.
Month
 Renault activity decrease became the main
driver of Auto category drop vs prev.
month
7%
43%
4%
-2%
-16%
-2%
-5%
-15%
-23%
-26%
TOP Categories 2016 vs 2015 Jul’16 vs Jun’16

6. 25,3
23,5
20,9
18,3
16,7
14,6
13,7
13,0
12,8
12,0
Nestle
Procter&Gamble
Pharmak
Reckitt Benckiser
L'Oreal
Vodafone
Kyivstar
Ukrnafta
Unilever
Danone
46%
35%
10%
126%
15%
8%
216%
-12%
-3%
-21%
6
Source: GFK/Nielsen, Direct Advertising, excl. Social & Media, TA: 18-50 50k+. ‘000WTRPs. Data owner is ITC.
Processed by “CCM” Subsidiary Enterprise
66%
84%
4%
8%
52%
-19%
-26%
-44%
-25%
-19%
TOP Advertisers 2016 vs 2015 Jul’16 vs Jun’16
 Vodafone was the main driver of
Telecom category drop vs prev. month
while Kyivstar drives category growth
vs prev. year
 Procter&Gamble activity increase in
July provided Detergent category
growth vs prev. month
 Unilever caused Perfumes category
decrease vs. 2015
 The main drivers of Advertiser in
category drop were Axe, Dove and
Rexona
 Mondelez rose its activity in July, that
had a positive impact on
Confectionery category growth

7. 7
Andrew Partyka, CEO of StarLight Sales, summed up first 6 months of the year, noted TV
commercial market resumption and told about new working conditions with advertisers
since autumn 2016.
AndrewPartyka:priceforcommercialwillincreasefor2-3
moreyearsatleast
Source: http://goo.gl/jud6g8
7

8. 8
Commercial TV-market is continuing its updating, it has increased by 40% during the first half-year 2016. This
indicator will make 30% on results of the year according to the StarLight Sales assessment. This is 5 points higher
than previous forecast, - the company said.
Market demand for TV commercial has increased by 5% (in WGRP’s), despite the prohibition of direct commercial
of beer, that made 6,4% of demand in the last pre-crisis 2013 year (in WGRP’s). Such categories as cosmetics and
hygiene, e-commerce, household cleaning, realty and jewelry showed the maximum growth in the first half-year
2016. Budgets and activity in key categories : pharma, foodstuffs and communication have increased. Auto
category resumed its presence on the air.
CommercialTV-markethasincreasedby40%duringthefirsthalf-year2016
Source: http://goo.gl/dVs4kr
Two core factors of market high growth in 1HY 2016:
1. High inflation imposed by TV sellers in 1HY and abnormal low cost in 1HY 2015
2. Turbulence in economy, rapid national currency devaluation in 1HY 2015. Advertisers planned activities very
carefully, maintained locomotive brands
Current market optimistic development allows us to agree with Alliance annual forecast for market growth about +30%.
Maxim Pozhar, TV Buying Group Head ZenithOptimedia Ukraine

9. TIC spread the statement about press conference «Changes in the universal program service - risks
for the information security of Ukraine», that was convened by Telecommunication Chamber of
Ukraine on July 20.
StatementofTIC:TelecommunicationChamberiscoveringbusiness
interestsbynationalsecurityprotectionmotive
Source: http://goo.gl/Q5QZz8
Telecommunication Chamber convened press conference about the draft law №3504 «About
bringing changes to the Law of Ukraine " About Television and Radio Broadcasting " (about clarifying
terms of distribution of TV organizations programs which are in universal program service)» on July
20. The union of cable providers spoke out against the norms about levying payment for TV channels
rebroadcasting.
TelecommunicationChamberspokeoutagainstthepaymentforTV
channelsrebroadcasting
9
Source: http://goo.gl/xHO9gU

10. 10
Source: http://goo.gl/nV9u2J
“1+1“ leads in three audiences at once in MB Top Channel research according to first half-year
results. Also leadership left for the “Ukraine“ channel in one another audience . “1+1” has the
most noticeable growth of share and “Inter” - the most noticeable fall compared to the same
period of previous year.
Top-listofTVchannelsin firsthalf-year:threetimes“1+1“and“Ukraine“channel
Whatdo“VOLIA“subscriberswatch:thecompanyhassummedupthe
telemetryforthehalf-year
Source: http://goo.gl/hpmOTO
The largest provider of cable television is continuing to share information about TV preferences
of their IPTV-subscribers . Here are data from «VOLIA» company for June. TOP-6 of broadcasters
didn’t change again and coincides with «big six» of TV panel Nielsen− “1+1”, “Ukraine”, STB, ICTV,
“Novyi Kanal “ and “Inter” channels. The leader of TV Viewing is still “1+1”, second position in the
rating didn’t belong to STB this time, it belonged to the “Ukraine” channel, that is explained by
“Euro 2016”.

11. 11

12. 35,0
30,2
25,4
25,2
22,3
22,2
21,2
18,6
18,2
16,5
Skoda
Beiersdorf AG
Fozzy Group
Nestle
Mondelez
Kyivstar
Mars-Wrigley
McDonald's
Metro
Pepsico
VODTOPCategories
62,1
52,3
39,1
37,7
33,8
29,6
28,5
26,1
22,7
16,2
Trade
Confectionery
Alcohol
Auto
Telecom
Food
Cosmetics
IT
Restaurants
Hot Beverages
VOD monitoring
includes HTML5
formats from the
middle of March
which caused
technical growth of
Impressions 
monitoring data is
not stable
12
VODTOPAdvertisers&
Source: Communication Alliance, represents 20%-25% of all video ad. Impressions, Mln. Data
processed by “CCM” Subsidiary Enterprise

13. 13
Carlsberg Group
Nestle
Citrus
Douwe Egberts
Kyivstar
Reckitt Benckiser
Wargaming
Mondelez
Unilever
Hyundai KIA AG
Alcohol
Trade
Entertainment
Culinary
Telecom
Auto
Hygiene
Cosmetics
Hot Beverages
Confectionary
Q2 2016
Source: Gemius Ad Real, Impressions. Data is processed by “CCM” Subsidiary Enterprise
Q2 2016
TOPCategories TOPAdvertisers&
VOD

14. Marketers look formarketing opportunities in thePokémonGo
phenomenon
A week since its launch, the game of finding imaginary creatures in the real world has
turned augmented reality into a major marketing tool. Game owners plan to launch
“sponsored locations” soon, so that brands can pay to put their names on valued
destinations that players seek. Already, businesses can buy virtual Lure Modules that
attract Pokémon — and, the businesses hope, will also attract players.
14
Source: http://goo.gl/Y2XBDF
While it's difficult to predict the virality and success of any content, we often find that the truly successful have many
elements in common, and Pokemon Go has hit on all of them: a) build emotional connection with your target
consumer; b) consumer-focused (it's easy to use); c) visibility (you see them everywhere); d) social element (relate to
themes going on in the real world); e) headline-worthy (build shareable content that creates social conversation).
Maryna Grygorenko, Digital Director ZenithOptimedia Ukraine

15. YouTube usage growth rates higher in Ukraine than globally: time of watching videos
increased by 70% for a year. According to the survey YouTube Audience Profiling Study
2016, 26% of Ukrainians aged 25 to 44 watch YouTube more than television. 83% of
Ukrainian users visit YouTube at least once a month, and 55 % of them - everyday. A half of
video views are on mobile devices.
15
Aquarter of users watch YouTube more than TVinUA
Source: http://goo.gl/tdLC66
WhyYoutubestarsaremoreinfluentialtoMillenialsthantraditionalcelebs
Source: https://goo.gl/DBLbb8
For millennials who spend a lot of time watching online video, YouTube creators are more
influential than traditional celebrities. Google presents comparison of YouTube stars to the
influence of stars of TV, film, sports, music, and more

16. IAB’s released the first report offers some new insights into what it will take to keep people
away from ad blockers. The survey included ~1,300 computer users and 200 mobile users
over six months in the US, including those with and without ad blockers. According to the
study: 26% actually have blockers, 37% of users haven’t used blockers, 20% are ex-ad
blockers, and 17% are thinking about getting an ad blocker. In other words, about three-
quarters don’t currently use blockers.
16
IAB:’s AdBlocking:WhoBlocksAds,Why,andHowtoWinThemBack
Source: http://goo.gl/h8DNQM
Facebook:ShowingYouMorePersonallyInformativeStories
Source: http://goo.gl/uPycgN
Facebook has introduced an additional signal for ranking of newsfeed. It will learn to
determine automatically which stories would be the most interesting to the user. The
ranking will use Feed Quality Program, which includes global crowd-sourced surveys of
tens of thousands of people per day, as well as people who answer more detailed
questions about what they like seeing in their feeds.

17. MyTarget proposed new type of advertising – pre-roll. Which can place in social networks
«Odnoklassniki», «MyMail.ru» and others Mail.ru projects.
17
myTargetwill launchvideo automatized purchaseinthe pre-roll on
Mail.RuGroup projects
Source: http://goo.gl/nFUt9n
Instagram launchesbusiness-profileswithanalyticsforUkraine
Source: http://goo.gl/ewOhe8
Now brands can turn personal accounts into business profiles and get access to new
Instagram business tools, first of all – Insights – that give businesses actionable
information about who their followers are and which posts resonate better than others.

18. 18

19. 16,0
13,3
12,2
7,6
6,7
6,7
6,6
6,1
5,6
5,5
Fozzy Group
Epicenter
Sport Life
Lifecell
Vodafone
Riel
Samsung
Privatbank
Metro
Allo
50%
5%
14%
43%
27%
-13%
-15%
-3%
-17%
TOP Categories
146,5
94,5
58,5
45,6
30,4
23,3
19,0
18,5
16,2
14,1
Trade
Realty
Entertainment
Auto
Telecom
Finance
Sport
Restaurants
Medicine
Tourism
15%
54%
25%
49%
0%
16%
17%
29%
61%
-5%
 Epicenter and Fozzy Group
activity decreased, but
that didn’t stop Trade
category growth vs prev.
month
 Al'fa-Bank was the main
reason of Finance
category drop vs prev.
month, while UniCredit
Bank ensured decrease vs
2015
 Sport Life drove Sport
category growth vs prev.
month and vs prev. year
 McDonald's was the
leader by growth in
Restaurants category
2016 vs 2015
19
2016 vs 2015
TOP Advertisers&
Source: Communication Alliance-OOH, Budget, Mln UAH. Data is processed by “CCM” Subsidiary
Enterprise

20. 20
Themarketofout-of-homeadvertisinginthe
firsthalfof2016
Source: http://goo.gl/QBxZJF
OOНnativeadvertisingattheKyiv
InternationalAirport
Source: http://goo.gl/xyTNUh
Two modern, stylish and symbolic capital entities —
a residential complex Skyline and Kyiv International
Airport, together with progressive advertising vision
of the company Amstar and the professionalism of
the operator RTM-Ukraine has created a entire and
native advertising on the front of the Terminal A.
Traditional market survey out-of-home advertising is dedicated
to the data of the first half of the year 2016 as well as
compared to the period January-June 2016 to the same period
last year.
The absolute leader in sales remains Lviv with 94% sold-out of
commercial placement, despite significant inflation of rent in
June 2016.
We recommend to start reservation for this year
as soon as possible. Especially if we are talking
about Western region.
Olga Muravyova, Head of buying department
ZenithOptimedia Ukraine

21. Service open data helps each active citizen to know who is
the owner of advertising designs, check the legality of their
location marked on the map service, and create an e-mail
appeal for the elimination of violations.
21
Theopportunitytomanageadvertisingwasgiven
inKiev
Source: http://goo.gl/TLm1hk
Therewasaprovocativeadvertisingof
BelarusianvodkainGermany,
Advertising is intended to inform you that the
brand does not follow Russian standards when it
comes to equal rights for homosexuals.
Source: http://goo.gl/0xI0Z4

22. 22
Source:: https://goo.gl/A0chRp
MovingWallslookstoeducateMalaysian
advertisers
Moving Walls Malaysia has launched a new campaign,
Lookup Lah, which hopes to educate Malaysian
advertisers on the importance of investigating marketing
data and figures found online.
Source: http://goo.gl/QYydKd
Renaulthaslearnedtorecognizethecarsto
showtargetedadsontheroads
On a billboard in West London are cameras that
respond to the make, model and color of the car. Passes
by the driver of the vehicle brand advertising will see
the new Renault Megan.

23. 23
http://goo.gl/FTQyLi https://goo.gl/BUHElZ
http://goo.gl/1DFlKD http://goo.gl/bDpNU7 http://goo.gl/swQI1W
Advertising agency
Happiness, Brussels
advertised yield on the
screens of the second part
of the fiction film by
Roland Emmerich original
outdoor advertising.
http://goo.gl/efXFXl
Startup Debuts Digital
Billboards with User-
Generated Content to
Sell Real Items from Real
People in Real Time–All
Within 5miles.
The creators of
World of Tanks
branding of the
airplane in the
style of the game.
Out of Home enjoys a
symbiotic relationship
with Twitter, and has
much in common.
Operator of out-of-home
advertising Ocean
Outdoor intends to
develop a new strategy
for advertising on digital-
screens at Piccadilly
Circus in London.
Advertising Tomb
Raider video game
with real people on a
billboard won the
festival "Cannes
Lions" 17 awards,
including five Gold
Lions.

24. 24

25. 15,3
7,8
6,1
6,0
5,1
4,2
3,7
3,6
3,4
3,3
L'Oreal
Seldiko
Olaynfarm
ChaneL
Hexagone
Fitobiotehnologii
Procter&Gamble
Ukrainian
National Lotery
Burda
Pandora
57%
10%
39%
176%
191%
-47%
-33%
TOP Categories
49,0
42,9
42,8
39,6
21,2
20,8
11,8
11,8
11,7
8,8
Trade
Entertainment
Cosmetics
Pharma
Wear
Auto
Perfumes
Jewellery
Finance
Alcohol
21%
40%
71%
76%
21%
12%
-3%
-10%
-13%
-29%
 Toyota activity increased,
but that didn’t stop Auto
activity decline vs prev.
month and vs prev. year
 Artek - Bukovel' rose its
activity vs prev. year, that
had a positive impact on
Tourism category growth
 Procter&Gamble activity
drop didn’t stop Cosmetics
category increase in 2016
 Calzedonia and Philipp
Plein activity fall caused
the Wear activity decrease
vs prev. month
2016 vs 2015 2016 vs 2015
TOP Advertisers&
25
Source: Communication Alliance, Budget, Mln UAH. Data is processed by “CCM” Subsidiary Enterprise

26. 26
15,5
14,7
10,0
9,5
6,9
6,0
5,9
5,7
5,6
4,3
Bayadera
Logistik
Natur Produkt
Victor & Co
Get'man
Zolotiy vik
Megapolis
Poltava Distillery
Russkoe radio
MobilLuck
Ukrainian
National Lotery
7%
31%
61%
47%
524%
100%
TOP Categories
48,5
46,6
31,9
25,0
18,7
18,5
13,1
8,2
7,8
7,7
Alcohol
Entertainment
Trade
Pharma
Food
Auto
Realty
Jewellery
Finance
Education
75%
112%
47%
104%
29%
48%
103%
 Umanpivo was the main
reason of Alcohol
category growth vs prev.
month, while Getman
ensured growth vs 2015
 ProStor became the
main driver of Trade
category increase vs
June
 Realty category
increased thanks to ORBI
GROUP activity growth
 Twin Tower project
advertising was
launched in July
2016 vs 2015 2016 vs 2015
TOP Advertisers&
Source: Communication Alliance, Budget, Mln UAH. Data is processed by “CCM” Subsidiary Enterprise

27. "Arta Plus“ was given the permission to broadcast in Donetsk region at a frequency of 88.4 MHz
OnemoreradiostationwasallowedtobroadcastintheATOarea
Results of the second wave of radio listening survey are now available. Undisputable leaders of the first
two quarters of 2016 were “Hit FM”, “Chanson”, “Lux FM”, “Retro FM” and “Russian Radio Ukraine”.
27
ThemoreincomeUkrainianshave,themoreactivelytheylistentotheradio
Source: http://goo.gl/e0MqxC
Source: http://goo.gl/5cceJV
“Hit FM” is a radio station with the favorite songs of the youth. They grew, studied, fell in
love with this songs. And now these people became the foundation of today's most solvent
audience and, therefore, the most interesting for advertisers.
Vasiliy Kozhemyakin, Senior expert on media planning Publicis One Ukraine

28. 28

29. Based on the advertising market dynamics during the first half of the year Ukrainian Advertising
Coalition traditionally holds an expert survey to clarify their forecasts for the advertising and
communication market in Ukraine. As a result advertising market is growing much faster than
expected at the end of the previous year. The forecast was revised from 12% to 21% growth of
investments. All media except Print are going to show growth in 2016.
29
UkrainianAdvertisingCoalitionspecifiedforecastoftheadvertisingmarketvolume
inUkrainein2016
Source: http://goo.gl/PKSzzB
According to StarLight Sales, TV advertising market is going to grew by 30-35%. At the end of the
year Sponsorship growth rate is going to be 80%. Media market is recovering faster, than Advertising
Coalition predicts.
StarLightSales:Mediamarketisgrowingfaster,thanAdvertisingCoalitionpredicts
Source: http://goo.gl/QIPsT3
The economy is steadily overcoming the crisis in spite of quite unstable political environment. One of
the key signals of situation improvement within the advertising industry is high demand within
attractive segments of the market. The UAC forecast may be revised ones or several times in case
such level of demand remains till the end of the year. The negative side of such situation is a risk of
quality placement deterioration and growth of the cost. In such situation accurate budget planning is
the major solution in order to avoid mentioned risks.
Vyacheslav Levchenko, Media Director ZenithOptimedia Ukraine

30. Nazar Grynyk, mobile marketing expert, presented the results of the study:
how smartphones and mobile applications in Ukrane are used,
expectations of mobile advertising and why does Pokemon Go conquer the
world.
Compared with the last year the number of smartphone users has
increased by 22%. 33% of all Internet traffic is generated by mobile devices
in Ukraine and only 1-2% of media budgets are invested in mobile
advertising.
30
SmartphonesusageinUkraineresearchresults
Source: http://goo.gl/zLqpBp
H1’2016 results: budgets, ad formats and forecasts.
Volume of mobile budgets rose by more than 4 times compared with the
same period last year. The leaders were FMCG advertisers (28,7% of all
mobile advertising).
MobileadvertisinginUkraineanalysis
Source: http://goo.gl/BV41C5

31. 31
Ukrainian consumer is recovering
According to The Nielsen Global Consumer
Confidence and Spending Intentions Survey,
Consumer Confidence Index in Ukraine in the
Q2’2016 rose by 6 points and reached Q4’2014
level. Global Consumer Confidence Index is stable.
http://goo.gl/YhzFB9 http://goo.gl/bwQ05V
http://goo.gl/2ou1nK http://goo.gl/x5hL9J
Goods under supermarket brands are not
popular among Ukrainians
Ukraine occupies the last place in Eastern Europe
in the popularity of goods under supermarkets
brands. One of the main reasons - lack of shops
trading network, reported delo.ua.
The share of promo sales in Ukraine is
growing
According to Nielsen Promo Pressure report, share
of product categories sales through promotions in
retail chains in Ukraine in Q1’2016 reached 27%,
that is 10 pp higher than the same period in 2015.
72% of Ukrainians consider themselves as
poor
The share of Ukrainian households identifying
themselves as the poorest part of the population,
increased in 2015 by 1.3 times compared with
2008, from 56.9% to nearly three-quarters - 72.3%.

32. 32
According UADM estimation, e-commerce total market volume was $1.1
billion in 2015. 17% of Internet users (it is about 3.7 million people) made
purchases in online stores.
Ukrainiane-commercemarkettrends
Payment system WayForPay conducted research about online payments
with an emphasis on the mobile purchases. Number of payments through
mobile phones has reached 18% (compared with 11% in 2015).
HowdoUkrainianspurchaseonline?
Source: http://goo.gl/LsmD6B
Source: http://goo.gl/xmbrGP

33. 33
* Click on the image works as direct link to the Source
How
Consumers
Buy Brands:
The new
decision
journey

34. 34

35. Target
Media
Tools
Decision
Period
Summary
&
Results
35
LIONWhiteRockrocksonCoub.com
Provide audience engaging brand experience to launch
LION White Rock
Target
Coub.comMedia
June 06, 2016 – July 06, 2016Period
Branded page on coub.com with contest
Through integration of media insertions in Display & VOD Ad, Coub video Ad
invites to Coub brand page where user can find video produced by users and
create their personal variant.
First in Ukraine branded Coub page to rock TA
To involving target audience and integrate brand’s communication message
into UGC – UCG is a trend among TA.
Users generate content on branded page and via voting we had choose the
winners.
Recoubs: 632
Likes: 2 480
Unique users: 28 085
Coub views: 635 160
Post Effect – one of the winners place the photo with
wined countlines as the cover photo on his Coub-channel.

36. 36
Thank You!