Internet is increasingly becoming the dominant media for Ukrainian consumers, especially among younger demographics. Time spent on screens is growing while print media is declining. The number of connected devices per person is also rising. For advertisers, there is a push toward more personalized and performance-based digital campaigns across multiple channels. New technologies like mobile payments and virtual reality continue to change user behaviors and expectations.

1. CONNECTED TIMES UA
RESULTS 2014

2. CONTENTS
1. Today’s connected consumer
2. Digital market overview
3. Trends
4. Channels evolution:
1. Display & ivideo
2. Search
3. Paid social
4. Mobile
5. Technology overlook

3. CONNECTED CONSUMER

4. Connected population
18,8 mio
of regular users
Source: Gemius Audience 11/2014

5. Access points run up
Source: Google consumer barometer, TA: people 25-45, income av+
38%
11%
Laptop
Tablet
36%
Smartphone
79%
PC
6%
Smart TV

6. 4/5 media contacts are screen-based
81%
19%
Source: MMI. TNS, 2014/2+2014/3; TA: All 18-45
Smartphone Tablet Laptop/PC TV
+ + + =
Radio Newspaper Magazine
+ + = 3,4 hours
We spend at the screen
Of our leisure time
DAILY

7. Internet strives to be media #1 by consumption
Source: TNS 2012/2-3, 2013/2-3; 2014/2-3; ЦА: All people; 18-35, income av+, - daily media consumption
131
54
44
7
124
58
35
6
124
64
36
5
0
20
40
60
80
100
120
140
160
180
200
TV Internet Radio Newspapers
All people 2012/2 + 2012/3
2013/2 + 2013/3
2014/2 + 2014/3
Minutesperday
+11%
0%
+1%
-8%
112
81
44
5
106
85
37
4
103 98
34
4
0
20
40
60
80
100
120
140
160
180
200
TV Internet Radio Newspapers
18-35 av+
+15%
-2%
-7%
-8%

8. 85,5
75,3
63,9
42,5
25,9
88,2
81,0
67,8
47,3
29,9
0
10
20
30
40
50
60
70
80
90
100
12-24 25-34 35-44 45-54 55-65
Internetpenetration,%
Age
2013/2-3
2014/2-3
↗3%
↗8%
↗6%
↗11%
↗15%
P45+ are main driver of ipopulation growth
Source: TNS 2013/2-3, 2014/2-3;

9. SUMMARY Internet breathing down TV’s neck in pursuit
of the user's attention
P45+ is the most fast-growing age group
among internet population
Number of connected devices is growing too
Screen-based media gradually finishing off
print

10. MARKET

11. Digital market
has grown by 2%
Source: Ukrainian Advertising Coalition, Agency Expertise
Internet is the single media with
positive ad investment dynamics in
national currency
Reasons:
• Low entry threshold
• Direct response
• High measurability
• Nationwide reach
0
300
600
900
1200
Banner Search Services iVideo
Miouah 2012 2013 2014
↗3%
↗ 10%
↘29% ↗ 23%

12. TRENDS

13. Individual message depending on socio-
demographic, behavioral, purchase behavior,
location, time of a day via:
• Programmatic buying with use of 2nd and
3rd party data (social networks, web-
services, other not competing businesses)
• CRM-based campaigns on 1st party data
Personalization

14. CRMization
More opportunities for brands to build personal and consistent communication through multiple
digital channels: e-mail, display, search, video, mobile
E-commerce
To increase CR and ROI
Tobacco, Alcohol, Beer?
To overcome some legal
limitations
FMCG
To increase loyalty, buying
frequency and average bill

15. Focus on performance
Marketing budgets being pushed to digital,
which means sharper, faster and cheaper
performance tracking
It affects decision making and planning so as
collaboration between creative, media,
analytics, tech and marketing teams
Audience Objective
ChannelBrand
Message
Trigger
KPI
Reason to change

16. Making ads look like non-brand content
could be good way to break through clutter,
reach fancy audience or even drive a coach
and horses through legal restrictions
Example: Grolsch "Movie Unlocker”
Native advertising

17. Integrated buying
Expansion of Open RTB seem to be
technological way to integrated buying and
analytics with single entry point to search,
display, video, paid social and mobile
But technology is not the main stumbling-
stone on local market, there are lots of legal,
organizational and cultural issues

18. SUMMARY Technology gives brands a chance to go
broad and deep: reach nationwide keeping it
personal and relevant across multiple
channels
In crisis conditions some brands can
reconsider and repurpose owned media
Blurry KPIs of “image campaigns” gradually
give way to what-you-measure-is-what-you-
got approach

19. DISPLAY ADS

20. Programmatic
ecosystem evolves
RTB infrastructure growth is being heavily
depressed by exchange rates on Dollar and
Euro to national currency
Yet number of international players entered
Ukrainian market: RTBHouse, Doubleclick,
Adform
Moreover, we have seen releases of local
solutions, that offer SSP and DSP services:
Admixer, C8 (cQube), DSPRate, RB Mail

21. Ad viewability issue
Google talks a lot about billions of ad
impressions, that haven’t been seen by
users, and lobbying its viewability control
technology
Apparently target audience for this product
are non-ecommerce advertisers, who build
brand awareness online
But in terms of indirect effect it’s quite
difficult task to measure, how “viewable”
campaigns boost result
Expecting some proof cases from Google to
come soon

22. Sold out of licensed inventory becomes a
rule. As a solution new in-page formats and
additional in-stream ad blocks being
introduced by publishers
Targeting on Smart TV and Mobile become
available and meaningful due to non-desktop
video consumption growth
Initially Google’s CPV buying model
unofficially practiced by other publishers
ivideo

23. 0
2
4
6
8
10
DiGi Media Youtube.com Admixer Video Megogo.net Ex.ua Fs.to Rutube.ru
ivideo cover exceeds 14 mio people monthlyReach‘000000
Source: GemiusAudience, 12/2014
Huge amount of video inventory stays unmeasured by monitoring systems, e.g. mail.ru,
odnoklassniki, advideo, videopulse, starlight and many smaller publishers

24. Google brand uplift survey
In terms of growing popularity of ivideo local release of Google brand uplift survey is expected.
Service enables to measure YouTube trueview ad efficiency by tracking brand health metrics

25. Top categories by GRP in display advertising
23%
6% 2%
195%
21%
-2%
26% 23%
6% 11% 23%
-100%
0%
100%
200%
300%
0
50 000
100 000
150 000
200 000
Games
E-commerce
Webservices
SMI
Offlineretail
Banks&Finance
ElectronicsandBT
FMCG
Auto
Tourism&lifestyle
Other
2013
2014
Dynamics
iGRP
Dynamics,%
Source: Arianna, 2013-2014, agency expertise

26. SUMMARY Ivideo is good complement and in some
cases even substitution for TV
Topical issues of 2015:
• Effective cross-channel planning
• Single source ad measurement across media
• Brand image campaigns evaluation
• Quality control

27. SEARCH

28. Search is crucial
74% of wealthy Ukrainians use
searchengines to make research
before purchase
Source: Consumer barometer, 2014; TA: People 25-55, income: average+
74%
26%
Use searchengine Don't use searchengine

29. Search! wherever you are
Source: Consumer barometer, 2014; TA: People 25-55, income: average+
Smart
phone
17%
PC/laptop
93%Tablet
10%
Research being made across
multiple connected devices, but
very few online advertisers take it
into account
7% used all devices

30. SUMMARY 3/4 of internet audience use searchengine
during purchase making process
Search is still one of the main drivers of
online sales
Investment in search advertising in 2014 has
grown by 83%

31. PAID SOCIAL

32. In August Twitter made available
promoted posts with targeting on
Ukrainian audience
So far Twitter has been used mostly
by media companies and publishers
Twitter launched ads in Ukraine
Source: Twitter Advertising Blog

33. In Ukraine
• Ad image size got bigger
• Less ad slots in block
• New reporting dashboard
Globally
• Hyperlocation targeting
• Image video campaigns
New on Facebook

34. SUMMARY For most verticals contribution of social
networks in business results not proven yet
But wide audience reach in combination
with huge amount of users’ data, aggregated
in one place, make them promising channel

35. MOBILE

36. Mobile has huge
potential to grow
Source: Gemius Audience 12/2014, Google Consumerbarometer
24
7
31
1,7 0,5 2,2
Smartphone Tablet Smartphone +
tablet
Owners, % Traffic, %
Mobile traffic share is 14 times less then
share of users, who owns mobile
devices
As soon as broadband mobile internet
hits the market, traffic will tend to grow
rapidly

37. 8%of Ukrainian consumers
compare the prices via smartphone
before purchase
right now
And…
Source: Google consumer barometer, TA: people 25-45, income av+

38. It is all personal
Source: MMI. TNS, 2014/2+2014/3; TA: All 18-35
Smartphone remains the only personal
device, rest connection points are
common for all family
43%
23% 20%
7%
43%
54%
40%
14%
Smartphone PC Laptop Tablet
Main user Available

39. Marketer’s must have mobile kit
Responsive web-site Mobile friendly ads App
• Decrease bounce rate
• Increase CR
• ROI boost
• Higher CTR
• Better targeting
• Richer UX
• Click to call
• User’s data access
• Mobile CRM
• Free recurrent contact

40. SUMMARY One in three users access Internet via mobile
devise
It is 6 000 000 of potential clients, who:
• have sophisticated requirements to brand’s site,
quality and promptness of service
• live here and now, ready to pay for new
experience

41. TECH
that will change the way we interact

42. Mobile payment vanish the gap between
decision and purchase
And looks like this trend is here to stay, since
Apple considered to support it
Apple Pay

43. UHD Video – new opportunities and challenges
Chance to reach super premium audience
on UHD TV
But ad video should be UHD ready to
perform flawlessly

44. Reinvent TV as modern entertainment
center:
• Multiplayer mobile games on big screen
• Exploring pictures and video from mobile
devices
• Web-browsing
Affordable pricing ($35) of devise promises
popularity
Brands can guide users through unique cross-
screen experiences
Chromecast
reincarnation of TV

45. Wearables
Who already use it to market their products:
• Healthcare
• Navigation and security services
• Sportswear (Nike+)
• Auto (Nissan Nismo Watch)

46. WELCOME TO CONNECT
OGARMASH@MEDIAVEST.KIEV.UAGARMASHABLE