1. Russian Advertising Media Market Overview

2. Russian Advertising Market in European Context
2000 2008
Rank Rank
Ad market US$ billion Ad market US$ billion
1 Germany 27,8 1 Germany 26,1
2 UK 16,5 2 UK 19,2
3 France 13,0 3 France 13,6
4 Italy 11,2 4 Italy 12,0
5 Spain 7,9 5 Russia 11,9
20 Russia 0,9 6 Spain 9,9
2009 2010
Rank Rank
Ad market US$ billion Ad market US$ billion
1 Germany 23,9 1 Germany 24,6
2 UK 16,9 2 UK 18,0
3 France 12,3 3 France 12,9
4 Italy 10,4 4 Italy 10,8
5 Spain 7,8 5 Russia 8,2
6 Russia 6,8 6 Spain 7,9
Source: ZenithOptimedia, Russian Association of Communication Agencies (ACAR)

3. Ad Spend per Capita, 2010 ($, excl. VAT)
Source: ZenithOptimedia, ACAR, Analytical Center Video International (ACVI)

4. Russian Advertising Market Changes
Source: ACAR. TV figures include cable & satellite segment

5. Russia: Ad Spend Growth vs Consumer Expenditures Growth
Source: Consumer expenditures - Euromonitor International
Advertising expenditures - ACAR

6. Ad Trends by Medium, 2001 - 2010, %
52
50%
40%
30%
20%
18
13
10% 11
5
0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
TV Radio Print Outdoor Internet Other
Source: ACAR

7. Ad Market Share by Medium, %
Russian ad media TV ad share across
market shares, 2010, % markets, 2009, %
Source: ACAR, ACVI estimates

8. TV Ad Expenditures by Industries, %
Source: Russia (2010) - TNS, ACVI; UK (2006) - ZenithOptimedia, USA (2006) –TNS, ACVI estimates

9. Comparative Cost of Allocation – Cost per Thousand
Russian media TV CPT across markets,
CPT, 2010, US$ 2010, US$
Source: Initiative, ACVI estimates

10. Russian TV Landscape
Share TVR
Source: TNS, Russia (100+), all 4+, whole day, 2010

11. TV Ad Airtime Trading in Russia
Industrial model Key indicators Trading currency
• TV advertising is a • TVR is the percentage of the • CPP – Cost per Rating
negotiated medium total potential audience group Point, the actual cost of
• It is a supply and viewing a particular program, reaching 1% of a target
spot, channel or time of day demographic group
demand market
• GRP - Gross Rating Point is (based on a 30"
• TV airtime is sold on commercial)
the arithmetic sum of all TV
GRP basis ratings in a campaign media • Cost per Rating Point
schedule determines how many
• Most campaigns approve GRPs will be purchased
money to buy certain number for the campaign budget
of GRP • CPP is the main trading
currency on Russian TV
ad market

12. Buying / Selling Practices
LONG-TERM DEALS
NEGOTIATIONS
BUYING / TVC PLACEMENT
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
NEGOTIATIONS / BUYING / TVC PLACEMENT
SHORT-TERM DEALS
DEAL PARAMETERS
Budget
Seasonality Dayparts
Buyer Premium position / Discount Seller
Floating / Fix Target Audience
Flexibility / Penalties
CPP – Cost per Rating Point

13. Video International Services
SOFTWARE SYSTEM ARCHITECTURE
Demand Forecast
• Ad market research
• Product segments trend-analysis
Inventory forecast
• TVR ad blocks forecast
• Inventory macro-analysis
IT Resources
• Unique software allocation system
• Inventory optimization
• Available breaks – easy to choose, • Detailed info on environment
fast to book

14. Russian Ad Media Market Structure: 5 year Forecast
Share of Ad Spend, 2010 Share of Ad Spend, 2015
Source: ACVI

15. Russian Ad Market (forecast), 2010 – 2015
Annual growth 2010 2011 2012 2013 2014 2015
Total market + 21% + 18% + 17% + 14% + 13% + 12%
TV + 20% + 21% + 15% + 13% + 12% + 12%
Source: ACVI

16. Thank you!