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CME: Record number of TV ad spots in 1H2006

CME: Record number of TV ad spots in 1H2006

9.8.2006 9:20

TVs broadcasted record number of ad spots in history during 1H2006, although the majority of spots have been placed beyond the prime-time thus hitting lower number of audience share. In accordance with this, the amount of gross TV ad spending reached only CZK 11.8m, which is some 49% of total ad expenditures in media during first six month, ARBO media reported. However the number of ad spots increased by 50%, expenses were up only 15% y/y. TV Nova's ad revenues decreased by 20% y/y, while its main rival's ad revenues by 150% y/y. While TV advertising remains the crucial, internet is gaining its share with several tens of percentage annual growth.

On the other hand according to OMD survey TV advertising fell below 44% share of the total market and stagnates with CZK 9.44bn of expenditures (+1.5% y/y), print media with CZK 7.03bn (+2.5% y/y) and 32.7% share, radio with CZK 2.21bn (+10.6% y/y) and 10.3% share, outside advertising CZK 1.64bn (+5.8%) and 7.6%, internet CZK 1.09bn (+26.7%) and 5.1% share and finally cinema CZK 0.09bn (+2.0%) and 0.4% share.

Our view:
We see the news as expected mainly due to change of pricing policy of TV Nova, when advertisers started to seek for cheaper and clear substitute. However the situation seems to be stabilized and confirmed also by the company that advertisers started to return on air of TV Nova. As internet is becoming more and more interesting, CME plans to have one of top 5 visited web pages in each country, including Czech Republic. Nonetheless we see these news as neutral for today's trading.


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