According to TNS survey, gross expenditures on TV ads increased by CZK 472m in August (+54.5% y/y), to total CZK 1.36bn. In August, TV stations broadcasted almost 76 more hours of advertisements compared to the same period last year. TV Nova’s ad hours increased by 19 hours, while its biggest rival, TV Prima’s ad time increased by 56 hours. TV Nova’s share re-bounces and is close to 50%, while TV Prima’s share slightly decreased to 38.6%.
Our view:
Although summer months are typically poorer on advertising and figures could be less representative for general view, we see the initial increase in TV Nova’s share as a start of positive trend which should prevail in 4Q, considered as the main advertising period. Furthermore it is necessary to stress once again that survey results are only gross expenditures and doesn’t completely represent real situation when each TV provides substantial discounts and bonuses. In fact we believe that real figures are more favourable for TV Nova than for TV Prima, given mainly fact that TV Prima rushed more into selling its air time than TV Nova.