The media agency OMD estimates the total advertising spending in Czech Republic to increase to CZK 25.8bn in 2008, up by 1.8% y/y, from CZK 25.3bn in 2007. Ads prices are expected to grow fastest in TV and internet. TV ad revenues should reach CZK 10.25bn, which means increase of 15-20% next year.
Our view: We do not expect any major impact of the news. We estimate that the TV advertising market in Czech Republic would grow by 18% y/y in US $ terms in 2008, driven by higher ads prices and modest increase in advertising minutes inventory via new thematic channels launches.