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.

Costs inflation in major television stations in 2018

2018 ended with high CPP inflation in all stations. On average, costs in the main stations increased by 15%, of which the largest increase in the cost is TVP 1 (+ 33%), and the smallest, and most importantly, consistent with declarations from the beginning of the year is Polsat (one digit, + 7%). TVN raised the cos an average of 15%.

Looking at the monthly dynamics of inflation changes, the highest increases took place in April (+ 27%) and in September (+ 24%). In the case of April, the main reason was the unusually good weather, which resulted in a larger than predictable outflow of the audience (smaller audience means the need to pay more for those viewers who remained in front of the TVs). The high level of costs in September, however, was already the result of the poor start of the autumn TV schedule.

In 2018 we were expecting high inflation in June and July, caused by the Football World Cup. A clear increase in prices was visible in TVP’s which had broadcasting rights of World Cup (as much as 83% on TVP 1 in June and 84% in July), while other stations reacted in defiance to TVP – Polsat with deflation (in June -2% and in July – 8%) and TVN low inflation (+ 9% in June). Ultimately, the average inflation in these two months did not exceed 12%.

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

Strength of support during constipation. Radirex Max

Herbapol Wrocław introduced to the advertising communication another medicine from its range – Radirex Max. It is a herbal medicinal product for short-term use in occasional constipation.

The campaign in media was based on a video message. Spot presents women taking Radirex Max, who share their experiences related to taking the medicine.

The reach of the campaign was generated thanks to television. Its strengthening is Internet activities: search engine support and related websites, among others with eating and digestive disorders.Optima Marketing Group is responsible for creative, for the production of the spot Propeller Film, media planning and buying media agency Media Concept.