According to OECD Communications Outlook, Czechs spent 2hrs and 47mins daily watching TV in June ‘07 in comparison with 3hrs 20mins in 1997. Despite the lower viewership, the price of TV ads grows. According to survey made by Mather agency, companies would rely more on TV, press, radio and billboard advertising in the near future, but afterwards they would switch into direct communication through SMS or MMS and internet.
Our view: We view the news as neutral. We anticipate continued growth in TV ads pricing based positive outlook for advertising spending growth. Meanwhile, internet is expected to remain the fastest growing segment of the advertising market.