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November 23, 2018 www.intellinews.com I Page 11
types reveals that television continues to make up 45% of the CEE ad pie, while one-third of the ad spending goes to online.
“We perceive a more nuanced picture about the dominance of television if we juxtapose advertis- ing spending and the growth rate of spending. While TV-advertising grows in this field by an average 8% within the region, the growth rate
of video spending is 26%! This means that while video is still far behind television, it is catching up at an amazing pace,” weCAN said in the report.
There are huge differences between advertis- ing markets in the region in terms of growth. Millions of Ukrainians watched the news dur- ing the EuroMaidan in 2013 and the Ukrainian revolution in 2014 through online video stream- ing channels. Video news site Hromadske.ua, for instance, became the largest channel in the history of YouTube in terms of total viewing time.
Thanks to the social-political context and the high media inflation that urges advertisers to find new tools beyond traditional media types, the online video segment in Ukraine is improving particularly fast, which is also reflected by the outstanding growth rate of advertising spending flowing to this field.
Ukraine obtained a higher position in the weCAN Ranking as it recorded the highest growth rate in CEE in 2017. Following a stagnation in 2015 (or
a decrease when measured in euro), the local advertising industry grew by 27% in 2016 and by a staggering 40% (or 30% in euro) last year.
To provide a more insightful picture of the advertising economy, the report’s editors created the so-called weCAN Ranking. It reveals the performance of 15 Central and Eastern European advertising markets compared to each other by showing the percentage of the ad spending per capita within a country’s nominal GDP per capita.
In the Czech Republic, 2017 was a staggeringly successful year of growth. The economic rise of the previous years reached its peak, and the advertising market grew by 9%. This helped the Czech Republic keep its leading role in the ranking.
Hungary has improved its position because the media market grew by 17% in 2017. In line with the trend of the last few years, one of the main engines of the advertising market was — once again — the state. The Prime Minister's Office was the largest spender, spending more than twice as much as Telekom (€31mn vs €15mn net).
This trend is reflected in the print segment as well. The state has been pouring advertising funds into provincial and tabloid media that
have recently fallen into pro-government actors’ hands. Consequently, the Hungarian print sector grew by 18%. Hungary was the only market in the region where the share of this media type increased within the entire spending volume.
Out of the Visegrad Four, only Poland scored lower than last year. In parallel with the
growth of the Polish economy, the legislative environment became increasingly unstable (especially regarding tax regulations) and the Polish government had replaced more and more private entities with state-owned ones that
led to private entrepreneurs suspending their investments.
This distrustful attitude is reflected by investors’ behaviour on the Polish ad market: the growth during the first three quarters was 1%, and it actually reflected the economic upturn only
in the last quarter that usually generates the highest consumption figures anyway. So both the local economy and the advertising industry developed dynamically in 2017, however, the economic growth outpaced that of the ad industry. Consequently, Poland achieved a lower position in the ranking.