December 01, 2011

Still in 2011, the 2009 recession dominates the TV advertising market development in Central and Eastern Europe (CEE). The question of convergence with Western Europe has been replaced in most CEE TV advertising markets with concerns about when growth will resume. This market monitor documents the post-recession market development in 12 CEE TV advertising markets and analyses their prospects for further growth. It concludes that the CEE region is dividing into a high-growth segment, lead by Turkey, Russia and Ukraine and a large rest struggling to reach pre-recession double-digit growth rates.

In 2011, we expect TV net advertising revenues (NAR) to decline in 5 out of 12 countries. At the top end, Ukraine outperforms other CEE markets with a 34.2 per cent increase in TV NAR. At the bottom is Romania with a forecast decline by 5.8 per cent while Hungary is set to drop by 7.5 per cent.

CEE markets are suffering from macroeconomic growth below pre-recession levels, lack of consumer confidence, consumer debt (especially in Hungary) and a reshuffling of advertising budgets by international advertisers to Western European core markets and the much stronger growth markets in the Asia-Pacific region.

Most CEE markets are export-driven and respond very quickly to the economic situation in Western Europe. The Eurozone crisis and ongoing economic volatility therefore exacerbate sluggish recovery of CEE TV ad markets.

Highlights:

• Ukraine outperforms other CEE markets with a 34.2 per cent increase in TV NAR, followed by Turkey and Russia.
• At the bottom end, Romania will see TV NAR decline by 5.8 per cent while Hungary is set to drop by 7.5 per cent.
• TV advertising commands in excess of 50 per cent of total net advertising revenues in most CEE market
• Multichannel advertising revenues are most advanced in Russia, Hungary and Romania.
• TV adspend per capita is still lagging behind Western European levels.

In this report:

• Countries covered: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Poland, Romania, Russia, Slovakia, Slovenia, Turkey, Ukraine
• Economic conditions: annual forecasts
• Overall advertising market forecasts
• Focus on TV advertising
• Focus on multichannel TV advertising
• Pan-regional TV advertising comparison
• In-depth analysis of three select CEE TV advertising markets: Czech Republic, Poland, Romania

Tables and charts included:

• CEE markets: annual GDP growth & other macroeconomic trends
• CEE markets: all-media advertising market (2010)
• CEE markets: TV advertising market (2010)
• CEE markets: multichannel TV advertising market (2010-2015)

Pages: 16

Tables & charts: 36

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