1. On Ukrainian ООН advertising market reputation

2. Study design Method In-depth expert interviews Target audience Major advertisers (marketing directors and heads of media departments) Leading advertising agencies (strategists, buying directors) Quantity 14 interviews

3. What sort of market Out Of Home advertising is in one word?

4. OOH market overall comprehension Tends to TV standards Perfective Complex, big Clattered Effective Interesting, has a potential Changeable Not consolidated

5. Recent years trends

6.  Consolidation of players, acquisition of small media owners by leading ones “It allows you to reach some kind of agreement, there are certain price lists, other than Vasya took this much, and Petya took that much”  Bright, non-typical frames, desire to stand out  Oversaturation by frames  “About 15 years ago, it seemed that there are really no any physical space to install frames in Kyiv. After that, the number of structures in Kyiv has increased, I don’t know, in three or four times”

7. Recent years trends  Creation of Outdoor Advertisement Industrial Committee “It (market) is active. They have created some kind of association or coalition, I can not exactly call it, but it's a sign of inner development. It is active in the sense of players consolidation”  Single research body determination  Reduction of frames number by major media owners in order to optimize address program “Abandoned (frames) voluntarily in order to improve quality of their address programs”

8. Development and expectations level

9. OOH advertising market structure Customers AA Buyers Media owners “Everybody sales everything to everybody here”, “If market participants itself reach normal agreement and, for example, as on TV — channels that do not sell anything. Only agencies sell. Everything…»

10. OOH advertising market structure Local media owners Local media owners Media owners ТОР -5 Media owners ТОР -5  QUALITY: meeting common standards relating terms of positioning, providing photo reports, damage replacement, etc.  ADDRESS PROGRAMM: rather uneven representation in regions  PRICE: lack of transparency in pricing  QUALITY : not always able to provide the right quality at the right time  ADDRESS PROGRAMM: the best, “indispensable” locations in a particular city  PRICE : attractive pricing

11. Market development level and expectations  Market standard: TV advertising market as it is consolidated, measurable  Players redundancy “Not quite civilized work due to large number of local players”  Business consolidation  Frames reduction for the city  ООН advertising market will come close to the standard Expectations Now

12. Market development level and expectations  Dependence on municipal authorities  Lobbying of industry interests rather than of your own business Expectations Now  High influence of human factor  Standardization, technification

13. Key players perception

14. OOH media owners general perception  “They are very good, they are great because they have done what did not exist. They covered the country with frames. Learned to post in time. Posting teams, specialized vehicles, etc. They have agreed with the traffic police, for it not to go mad when these vehicles are posting something. They performed a tremendous amount of work”

15. Industry development barriers

16. OOH market development barriers  Municipal authorities  Unpredictability of the economic situation and budgets  Advertisers inertness ( unwillingness to go to the purchase by GRP; want to know OOH research methodology ) “ Advertisers do not trust ratings. Selling by ratings currently is not possible, because it is not convincing. If it is profitable for media owners to sell by ratings they must take care of cooperation with the research body ”

17. Industry development prospects

18. OOH market prospects  Consolidation and structuring “Overworked as this word may be”, “Ideal is in consolidation of everybody, but it’s the same as to speak about our political parties“, “All the same, it moves in small steps to some structuring. At least major players and C-suite have desire to consolidate it and sell by ratings”  Civility in relations “The market will turn into a structured source of income, media owners relationships with local authorities will become more civilized”

19. OOH market prospects  Quality of service growth “This means solutions integrated into the overall communication strategy, it is a regular survey of us — whether we are satisfied with the service. Regular customer survey about satisfaction with service. And such a common process of debugging from the advertiser to the posting teams, not just your “piece””  Dialogue between authorities, media owners and other market participants “This is an industry, the government should take care of the development of any industry that brings money, that is in demand and evolving. And, of course, ideally there must be a dialogue between Outdoor Advertising Industrial Committee, which represents common interests of the market. The dialogue between the government, media owners, advertising agencies, perhaps advertisers in order to bring this market by combined efforts to some denominator. There must be lobbying. This is the way that seems to be ideal“

20. OOH market prospects  New non-standard formats  Consolidation  Investments in the market research  Development of common industry standards

21. Elena Bondarchuk Deputy Director of InMind research company Thank you for your attention!