Fall in the filling of TV ad blocks in Q1 2019

For the first time in a few years, something stirred in the matter of filling advertising blocks on TV. For a long time, market participants have been used to the fact that televisions sell all available advertising time: 12 minutes per hour. Only public television has a smaller fill, and this is only because some programs cannot be interrupted by advertising blocks.

The first quarter of 2019 brought a change in the filling, it fell the most in TVN by 8%, in TVP by 2%, in Polsat by 1%. The fall in the filling is, in our opinion, the effect of the continuation of the policy of raising prices by all TV stations (about the increase in prices in trade policies, we wrote in the news of 8.02.2019) and the market reaction to this increase (stoppage of budgets).

However, TVN is the biggest drop in the number of advertising blocks, and is most likely caused by trade policy – the resignation from the sale of GRP packages on the main channel (TVN sells time only in the more expensive, rate card form of sale and as part of the TVN MAX package, together with TVN7). The change in the form of sales of time in TVN caused much higher inflation of the cost in this station than it results from the inflation of the rate card itself.

If we calculate inflation from package costs from the first quarter of 2018 to the cost of list prices from the first quarter of 2019, it amounts to as much as 29%. Such high inflation of prices turned out to be a deterrent for advertisers, especially those who used the package form of time purchase.

In the long-term perspective, we can expect TVN to adjust its rate card policy, not to deflate prices, but with rate card costs lower than it was originally planned for inflation. It is also worth noting that TVN, despite the lack of filling in advertising blocks, did not react with additional discounted sales discounts.

Source: Nielsen Audience Measurement, Arianna, 1-3.2017, 1-3.2018

Pay taxes in Poznan. The City of Poznań encourages in campaign

Due to the approaching date of tax settlements for the previous year, the City of Poznań urges to settle PIT in Poznań using online advertising.

The task of the online media campaign is to generate ad impressions primarily on thematic portals (transport, job, adverts) and redirect to the landing page – glanc.poznan.pl. Glanc is a new service of the Poznań City Hall, which helps residents to take care of their formal matters. It shows for example how to change the place of PIT settlement via the Internet.

The campaign uses large formats (screenings, double and triple billboards), mobile ads (rectangle and mobiboard) and mailings. The ads are graphically matched to the layout of the landing page (below the screen just from the page):

Screen from Glans.Poznan.pl

Media agency Media Concept is responsible for media buying and the coordination of online activities.

The real inflation in TV audience-buying costs was 6% in 2018

The total of EQ GRP generated by the market in the group 16+ in 2018 amounted to 3 083 501 points, while in 2017 it was 3 065 314 points. Year-on-year, the number of generated GRP has not grown (change + 0.6%), and net investment in television (data from Starcom report) increased from PLN 4.1 billion to PLN 4.4 billion – by 6.3%. The increase in spending on television, with the full filling of blocks (more GRP in blocks does not fit), means a real increase in prices.

In the news from 8.02.2019, we wrote about 15% of rate card inflation in the big four channels in 2018. Please remember, however, that previously analyzed rate cards inflation concerns the buying method used when buying time in the largest stations, i.e. only one of many forms of TV buying. It is therefore important, but only part of the market.

To at least get closer to the full picture of inflation, we need to consider package purchases in the big four and in thematic stations. However, these other forms of buying than rate card are not monitored by telemetry. Broadcasters do not share with the market precise data about the share of the rate card package purchase (although they communicate that the share of the rate card is still growing) or the level of sales of individual, differently priced, packages of thematic stations. After the end of the year, real inflation is, therefore, the easiest to estimate by comparing the generated EQGRP with the estimated net expenditure on television.

We’ve made the appropriate calculations and we can share our estimates, which show that the costs of reaching target groups through television increased in 2018 by about 6%.

Source: Nielsen Audience Measurement, Arianna, 2017-2018, target group: 16+

14% increase in online advertising YOY

After the first three quarters of 2018, investments in online advertising in Poland amounted to over 3 billion zł (increase by almost 400 million YOY) – this is data from AdEx survey conducted by IAB Polska / PwC.

The basic classification of the advertising cake is constantly dominated by Display (nearly 48% shares, and 15% YOY increase) and SEM (32% shares, 9% growth YOY).
According to the additional classification of the research, the share of the mobile increased by 44%, and social media by 28%.

More information about Internet expenses is available on the IAB website: iab.org.pl/aktualnosci/stabilny-wzrost-reklamy-cyfrowej-iab-polskapwc-adex/.

However, the Internet giants themselves, such as Facebook, Google, Netflix and Spotify, seem to not fully trust online advertising as they expand their own media mixes with offline media.
In the US according to Bloomberg, “Facebook Pushes Online Ads, Then Spends Its Cash on Billboards”
bloomberg.com/news/articles/2018-08-06/big-tech-is-spending-big-in-a-decidedly-old-school-way.

In Poland, for example, Netflix intensively uses outdoor advertising, including such formats as Dynamic Backlight AMS.

For advertisers, this is a confirmation that media mixes are worth building based primarily on the media that work, and not the ones currently fashionable in the marketing industry. The Internet provides many advertising opportunities, including the promise of precise targeting. However, offline media, as well as outdoor media, still guarantee the reach and business effects – who, as anyone, but Internet companies can count on increases in investment (KPIs) in from media.

The new digital version of Inchcape

Inchcape, the authorized BMW and Mini dealer, presented a refreshed website Inchcape.pl.

The website presents Inchape showrooms (Poznań, Wrocław, Warsaw), a range of maintenance services, insurance and loan proposals, as well as a current offer of new and used cars and motorcycles available at Inchcape.

The site also has a separate landing page dedicated to individual offers and advertising campaigns. In addition to advertising support, Media Concept also provided support in analytics and advertising solutions on the site aimed primarily at collecting leads.