Keeping the media score in Ukraine
28 June 2012
The party’s came to an end for our team after the dodgy defeat in Donetsk. We’ve cried into our beer – some 200,000 litres have been consumed so far at Kiev’s fanzone alone. But we’re not too downhearted and the party will continue until 1 July.
Euro 2012 has been – and continues to be – a shot in the arm for the media business. Some of the official sponsors have invested heavily and combined with the additional ad spend around this autumn’s parliamentary elections we expect total spend to be up by between 10-15% year-on-year.
The 12 official sponsors accounted for 5% of total media spend in Q1 and are expected to be responsible for up to 8% in Q2. Coca-Cola, McDonald’s and Kia Hyundai have all increased their investment markedly.
The main beneficiaries of the on-pitch action have been TV and outdoor, not surprising when share of viewing for broadcaster Ukraine hit 56% during the key match against England.
Thirty-second ad spots during this match cost nearly $10,000 compared to a standard primetime spot cost of $300-800. Premiums are up by 50% on what was paid for coverage of key matches at Euro 2008 and the World Cup in 2010, although to be fair we didn’t qualify for either.
And it hasn’t only been the matches involving the home team that have been a success for the three rights holders, Ukraine, Football and UT 1. Matches involving Poland, Russia, Greece, Germany and the Netherlands have all taken a 25% share or greater.
Reruns of key matches are also expected to command a premium although it will be 60% down on the cost of being part of the live event. UT 1 is due for another sporting bonanza later this summer as the broadcaster for the Summer Olympics.
The other big winner is out-of-home (OOH), despite the complex, zoned market created by sponsorship rules. The medium is 85% sold out, an impressive figure considering there are 20,000 sites in Kiev alone and the quality of the long tail leaves a lot to be desired. The major media owners only control 40% of the market and there are hundreds of smaller site owners.
Sponsorship rules have divided up match cities, transport hubs and stadia into four different zones and only certain brands can appear in each.
In zone one – the stadia and surrounds including fan zones and car parking – only official sponsor brands are permitted.
In zone two – a significant area around the stadia and fan zones – UEFA partners and non-competing brands can advertise.
In zone three – basically the match cities and transport hubs – partner brands and non-competing brands are permitted.
In zone four – everywhere else – competitor brands can advertise.
To make life more complicated, the rules also changed after the second half of May with competitor brands in zone three allowed to advertise as long as they use sites that aren’t too visible – a rule that appears to go against the basic rules of OOH planning.
Nevertheless with strong demand, prices are up by 5-10% with even higher peaks in the city centres.
But perhaps the medium that will benefit most long-term from Euro 2012 is digital. Restrictions on advertising in other media combined with rising usage have helped convince many brands to boost investment.
It still only takes around 6% of total media expenditure but it’s increasing at a phenomenal rate and media owners in this area haven’t focused on the quick bucks – although prices are up – but also making relationships that last well beyond the last kick of Euro 2012.
Strategy director Rostyslav Kostenko and managing director Rustam Ziganshin, Mediacom Ukraine