WORLD TELEVISION DAY CELEBRATES THE QUALITY OF TV AROUND THE GLOBE

21. 11. 2018 Investments in TV programmes approaches 140 billion dollars.

MARK RITSON: THE MEDIA BATTLE OF THE DECADE WILL BE FOUGHT FOR THE TV SCREEN

3. 10. 2018 Mark Ritson, the Australian university professor and marketing expert, started his European tour in Prague on Monday. He delivered a presentation to the representatives of clients, media agencies and the TV market. His speech ranks among the most interesting presentations on the local marketing scene in the last few years. Ritson came to Prague at the invitation of the Association of Commercial Television (AKTV), which continues its activities, inviting to Prague renowned representatives of the current marketing industry, predominantly those with a foreign university background. Initially, Mark Ritson provided a summary of the development of ad investments in media types in the recent 50 years using data from Morgan Stanley. He demonstrated that the last decade was significantly affected by the growth in digital media with the milestones being the years 2000 when Google started selling advertisements in its search engine and 2007 when advertisements were posted on Facebook. In Ritson’s opinion, the growth in the digital media had a negative impact namely on print media while radio and outdoor advertising was not affected too much by the onset of Google, Facebook and other digital platforms. That is because radio and OOH are more digital media today. Outdoor carriers are digitalised and more than half of radio broadcasting in the UK is delivered through digital platforms – DAB, applications and the Internet. (Editor’s note: This statement does not apply to the Czech radio where listening through FM still prevails.) As opposed to the above-mentioned media types, TV has not been impacted by the growth in the digital media and has succeeded in increasing ad investments despite the general perception that the days of TV are numbered. “In the media history, there has never been so much nonsense that would be so far from the truth. TV is not dying but the myth is spreading all over the world,” noted Ritson. The fact that big tech companies use TV advertising for communication and increase their investments in TV should be taken as evidence of the TV medium’s effectiveness. Ritson considers TV investments to be a goal pursued by digital players (represented namely by the Google/Facebook duopoly that accounts for 85% of all digital investments as estimated by Group M). “There is just one place that digital may use to grow – TV. It is a battle between digital and TV,” described Ritson. Technology firms will strive to attack TV ad budgets but the ‘battle of the decade’ will be fought for the TV screen according to Ritson. Or more precisely, for the ‘connected TV screen’, which he sees as the key medium. “I am not saying that TV companies are going to win but this is the playfield where the game will be played and that will be fought for. Digital firms will undoubtedly seek to get there,” he forecasts. But he is not talking about the form of TV broadcasting of ten years ago. In order to succeed in the competition, the existing TV companies must change – and go digital. With respect to the size of the Czech market, Ritson mentioned in the subsequent discussion that most probably, it will only be possible to face the global internet giants through cooperation with international TV players or associations. "The last decade was affected by the digital duopoly, completely devastating newspapers and taking most of their money. The next decade will offer a different battle. Digital firms will go after TV." says Mark Ritson. According to Ritson, the existing marketing mindset overestimates the effect of digital media. Although growing in recent years, mobile video is not the critical medium of future in his opinion. “Mobile video is small, we watch it occasionally when we have no access to a large screen,” he described. As indicated by the data of extensive research projects of BARB, ComScore or IPA Touchpoints, more than two thirds (71%) of all videos watched continue to be viewed on TV screens (live TV) and even millennials watch nearly half of video content on TV screens (47%). TV’s impact on advertising video content is expected to be even more significant with the majority of ad spots (90%) being watched on a TV screen. The times we are living in, which are referred to as the post-factual era, are to blame for the facts about media channel effectiveness being overlooked. Some of the guilt is also attributable to how media consumption development is perceived by marketers or agencies that tend to project their own media consumption methods to all consumers. The result is that while the data of Ebiquity’s Re-evaluating Media study demonstrate that traditional channels (TV, radio, newspapers, magazines) have the strongest effect on brand-building (in attributes such as reach, targeting, ROI, etc.), the marketer and agency community overestimates the effect of social media and online video. “It is a conflict between perception and reality,” noted Ritson. In order to achieve the highest communication effect, Mark Ritson recommends to integrate multiple media channels. TV is a medium that can still derive the largest reach from individual media carriers (in the Czech population, TV is watched weekly and monthly by 90% and 96% of people, respectively). Digital media also play an important role; however, Ritson thinks that their importance is exaggerated and investments in them are excessive. In conclusion, he also mentioned Les Binet’s opinion. In the last AKTV meeting in Prague, Binet spoke about the primary effect of reach on brand growth, about the importance of share of voice and the need to work on a long-term brand building. (You can read a summary of Binet’s presentation here). Mark Ritson recommended The Long and the Short of It written by Les Binet and Peter Field as one of the key marketing publications that would have an impact on communication planning in the near future. Source: mediaguru.cz

MARKETING SUPERSTAR MARK RITSON WILL START HIS EUROPEAN TOUR IN PRAGUE

4. 9. 2018 The Association of Commercial Televisions has been continuing their education activities by organizing third conference aimed at marketing professionals in the fall. For the first time they will join forces with the Slovakia’s Association of Independent Radio and TV Stations (ANRTS) to give Czech and Slovak marketers the opportunity to hear one of the most outstanding contemporary marketing experts, Australian professor Mark Ritson, live. In addition to him, the conference “Boost Your Media Performance“ will host the head of research at Thinkbox, GB, Nicole Greenfield-Smith, marketer Chris Goldson from the British commercial leader ITV, and other representatives of Czech and Slovak advertisers, who will speak about up-to-date topics within the client panel. Petr Šimůnek will be the host of the conference.

AVMSD REVIEW: A STEP IN THE RIGHT DIRECTION, WITH MORE WORK AHEAD

27. 8. 2018 Egta – the association of television and radio sales houses – commends EU policymakers for reaching an agreement on a new Audiovisual Media Services Directive. Two years of challenging negotiations have delivered some welcome flexibility in commercial communications which should contribute to a more competitive environment for European broadcasters. We are encouraged by the liberalisation of the rules on advertising minutes and the much-needed protection of media service providers’ signal integrity. In tandem with the new responsibilities that video sharing platforms will have to abide by, sales houses see this as a first step towards a level playing field for European content producers. egta and its member sales houses saw the revision as an opportunity to modernise the European audiovisual regulatory framework. Despite a constructive dialogue with the European institutions, it should be acknowledged though that the net result is one of modest progress rather than a future-proof legislation that reflects market realities. Malin Häger, egta President, comments: “We sincerely welcome the positive progress made on the rules that govern audiovisual commercial communications, particularly with regards to advertising time limitations. However, we must also recognise that on some aspects, the text is less ambitious than we hoped for at the beginning of this process. Broadcasters remain far more heavily regulated than online actors who are competing for the same advertising revenue. In order to provide long-term value, it is therefore crucial that the measures foreseen in the reform are applied and enforced consistently”. The audiovisual advertising sector contributes positively to the European Digital Single Market, and egta is confident that we can work together with regulators to ensure that this revision delivers tangible benefits to the industry. About egta:

ONLINE BUSINESSES BOOMING ON TV; GLOBAL FIGURES REVEAL THE IMPORTANCE OF TV ADVERTISING TO ONLINE BUSINESSES

14. 6. 2018 Figures from around the world show the extent to which online businesses are now investing in TV advertising, in some countries becoming the biggest investors in TV.

AGREEMENT REACHED ON NEW MEDIA SERVICES DIRECTIVE (AVMSD)

26. 4. 2018 EP negotiators and the Bulgarian Presidency of the Council of the EU agreed on substantial rules for audiovisual media services, including digital platforms, on Thursday evening.</strong

ASSOCIATION OF COMMERCIAL TELEVISION STARTED A DIALOGUE WITH ADVERTISERS AND GOVERNMENT AUTHORITIES IN THE FIRST YEAR OF OPERATION

12. 4. 2018 In the first year of its existence, the Association of Commercial Television (AKTV) set two main goals: to spread awareness among advertisers about television being a key advertising mediatype and to do so through marketing activities as well as to engage in law-making processes with a direct impact on commercial television business. During its first year, AKTV also joined the Chamber of Commerce, where it has been an active member of the Creative Industry Section, and it also became an associate member of the EGTA Association, which brings together television and radio media representatives. The Association of Commercial Television (AKTV) was formed in spring 2017, in response to the growing need to defend and promote the common interests of commercial broadcasters in the Czech Republic. The founding members of the Association are the Nova, Prima and Óčko television networks and the first presidential mandate was headed by Jan Vlček from Nova. As part of its marketing activities, in response to frequent unsubstantiated statements made by global players in online advertising, AKTV focused on direct communication with the most important advertisers in the Czech Republic. In the first year of its existence, AKTV organized two educational seminars for senior management of the largest advertisers as well as for CEOs and marketing directors. The common denominator of both conferences were exceptional foreign speakers and premium and highly relevant content. Les Binet, a renowned expert and an author of marketing books from the adam & eve DDB London agency, gave a lecture at the first conference, and Karen Nelson-Field, an Australian university professor and researcher, presented the results of her latest research, which compares the performance of television and online advertising, at the second conference. AKTV will continue with its activities this year so as to respond to the demand of the advertisers for relevant and undistorted information on the current status of the individual mediatypes and the trends in their use.

EUROPEAN SALES HOUSES URGE LEGISLATORS TO STRIKE THE RIGHT BALANCE IN THE FINAL AVMS DIRECTIVE NEGOTIATIONS

26. 3. 2018 The European Commission’s proposal for a revised Audiovisual Media Services Directive in May 2016 promised to create a fairer environment for all players, to ensure adequate protection for consumers, especially children, to sustain the production of original European content and to introduce more flexibility on the advertising rules for broadcasters. The original proposal was a step in the right direction and was welcomed as such by European sales houses and broadcasters, in particular the flexibility on advertising time as well as the simplification and liberalisation of the rules on sponsorship and product placement. As the trilogue negotiations come to a conclusion, egta members would like to urge decision-makers to keep those initial objectives in mind when agreeing on the final balance of the text. Broadcasters are increasingly concerned at the potential erosion of what was a modest evolution of the rules in the first place. Since the publication of the initial proposal, online advertising sales have been growing steadily and in 2016 became the main media for advertisements on a pan-European level, with €36.8 billion in revenue, surpassing TV advertising (€31.4 billion)1. As things stand, apart from the moderate liberalisation of the advertising time, there will be little to no discernible flexibility in the qualitative advertising rules, the articles on sponsorship and product placement and the other linear specific advertising provisions. We strongly urge the Parliament, Member States and the Commission to take the opportunity of the final trilogue meetings to ensure that this revision process delivers on its original objectives of a competitive, creative and safe European audiovisual landscape. This could be achieved by introducing measures safeguarding broadcasters’ signal integrity, simplifying the rules on product placement and sponsorship as per the Commission proposal, liberalising isolated adverting spots in article 19.2 and ensuring that no further measures adversely impact broadcasters’ current revenue streams. To secure a robust level of consumer protection, a fair environment for business and competition with other actors, all content providers, including video sharing platforms, should also adhere to the basic advertising principles in articles 9, 10 and 11. In a fast-changing market place where all content providers, both online and offline, linear and non-linear, are competing for audience and advertising revenues, qualitative prescriptions should be simplified and harmonised in order to secure a more equal environment, so that the financing of quality content shall be sustainable in the longer term. As noted throughout the studies that informed the Commission’s impact assessment, Europeans have never been presented with more choice of audiovisual content. It is in this context that broadcasters need to secure future proof revenue streams that will allow them to continue offering the content that viewers expect and are interested in. Therefore, the European audiovisual sector needs a regulatory environment that reflects the current market place, provides proportionate and balanced rules and will remain relevant as technological developments occur. We strongly believe that simplification and legal certainty in the AVMSD will match those objectives. egta is the association representing television and radio sales houses that market the advertising space of both private and public television and radio stations throughout Europe and beyond. egta counts 140 members across 40 countries. www.egta.com 1 The EU online advertising market – Update 2017, European Audiovisual Observatory, 2017.

TELEVISION ADS OUTPERFORM YOUTUBE AND FACEBOOK ADS

6. 2. 2018 This is the result of a research that focused on the interconnection between the attention that people pay to advertisements and the influence it has on the sales of goods. According to the research conducted by Australian professor Karen Nelson-Field, television ads command more attention than YouTube or Facebook ads. The professor introduced her research at a meeting organized by the Association of Commercial Television (AKTV) in Prague. The research showed that 58% of people actively watched an average ad second on the television screen, while only 31% of people did so on YouTube and only 4% on Facebook. "Facebook is a rather passive platform, the primary focus being on friends, not advertising. But passive consumers of ads are also somehow significant," she said. Karen Nelson-Field also mentioned that attention is a key factor influencing product selection and that it directly impacts sales. "There is a strong interdependence between the attention paid to advertising and the volume of sales. The probability of people making a purchase when exposed to a certain ad increased by 17% when compared to people who have not seen the ad," she said. Therefore, each video has a positive effect on the sale of goods. The comparison of the above-mentioned platforms (TV, YouTube and Facebook) yet again demonstrates that advertising on the television screen achieved the best results. Based on the research, the attention paid to ads is highly correlated to screen coverage (the percentage of a screen occupied by an ad) on any platform. Television advertisements, at 100% screen coverage, provide three times more screen coverage than YouTube and ten times more screen coverage than Facebook. Ad visibility is thus directly proportional to attention that people pay to ads, which in turn impacts sales. The research claims that ad visibility is more important than the time people spend watching a particular ad.

ADVERTISING ON TV GETS MORE ATTENTION THAN ON YT OR FB

6. 2. 2018 This is based on research that has found a correlation between the attention paid to advertising and its impact on the sale of goods.

THE MEDIA MARKET SUPPORTS THE NEW AMENDMENT TO THE PHARMACEUTICALS ACT WHICH GOVERNS ADVERTISING

23. 1. 2018 Media operators and advertising agencies from professional associations support the new amendment to the Pharmaceuticals Act, which will be voted on at the plenary session of the Chamber of Deputies on Friday and which proposes to repeal the latest amendment to the Act on Regulation of Advertising. In the last year, the Act on Regulation of Advertising was amended as a rider to the Pharmaceuticals Act. The responsibility for the compliance of advertising content with the law was extended to the broadcasters and it concerns selected types of product – medicinal products for human use, food supplements and foodstuffs intended for particular nutritional uses and for infant nutrition. Until then, it had only been the subjects, which had helped create the advertising content, who had been responsible for the compliance of advertising of such products with the law, as is the case with other types of products. The amendment seeks to return to the original form of the Act on Regulation of Advertising. The problematic amendment, which introduced the joint liability of the disseminator of advertising for the compliance of the advertising content (medicinal products for human use, food supplements and foodstuffs intended for particular nutritional uses and for infant nutrition) with the law, has been effective since April 2017. The amendment has not contributed to increasing the level of consumer protection. Instead, it has proved to be easily misused in the competitive fight among the producers of the products concerned. In the spring of last year, the entire media sector warned that extending the responsibility for the compliance of advertising content with the law to the disseminator of advertising could not contribute to increasing the level of consumer protection. The reason for this is that the advertisers do not have any professional qualification or legal tools to gather the necessary background information that would help them professionally assess, for instance, whether the advertised product actually strengthens one’s immune system or not.

KEY MEDIA ALLIANCES CELEBRATE THE TRUSTWORTHINESS OF TV ON THE OCCASION OF WORLD TELEVISION DAY

27. 11. 2017 The European Broadcasting Union (EBU), the Association of Commercial Television in Europe (ACT) and egta, the association of television and radio sales houses are celebrating the trustworthiness of television on the occasion of World Television Day (21 November), as declared by the United Nations. This year again, the three organisations have produced a 30-second video clip emphasising the role TV has around the world as provider of trusted content. It will be aired by broadcasters across Europe, Asia, Canada, USA and Australia on 21 November. To celebrate their love of television, viewers are encouraged to use the hashtags #WeloveTV and #WorldTVDay on social networks on 21 November. The video highlights that now, more than ever, the trustworthiness of television plays a central part in our daily lives as it keeps viewers up to date on what is going on at home and abroad and brings the world’s attention to what matters. Editorial responsibility, truthful reporting, top quality content, the safest environment and the reliable, independent measurement system are the DNA of TV. This makes it a unique medium for world-class content and a fully brand-safe environment… no matter on which device.

WHY TV REMAINS THE WORLD’S MOST EFFECTIVE ADVERTISING

20. 11. 2017 On the occasion of World Television Day, TV broadcasters and trade bodies from around the world have joined together for the first time to release global figures demonstrating TV’s resilience and strength as an advertising medium, with the recently formed Global TV Group a new unified voice for TV.

AKTV HAS BECOME A MEMBER OF EGTA, THE ASSOCIATION OF TV & RADIO SALES HOUSES AND THE GLOBAL TV GROUP, A GLOBAL INITIATIVE TO PROMOTE TV

25. 9. 2017 The Association of Commercial Television (AKTV), which represents the most important operators of commercial television broadcasting in the Czech Republic, has become a new associate member of egta, the trade association of over 139 television and radio sales houses throughout Europe and beyond. AKTV will represent the Czech Republic, along with the existing egta members – broadcaster groups Nova and Prima, and also the AtMedia Group. In addition, AKTV has joined The Global TV Group, an informal grouping of broadcasters’ and sales houses’ trade bodies in Europe, the USA, Canada, Australia and Latin America, whose joint objective is to promote television. In the 43 years of its existence egta has significantly expanded the sphere of its work as well as its membership, which currently comprises 139 members in more than 40 countries. egta offers its members support in research, networking, marketing, advocacy and regulatory assistance. It is an organizer of multiple international conferences and seminars. The association’s vast network also facilitated the establishment of The Global TV Group, a worldwide initiative which connects associations of television broadcasters and advertising sales houses from all over the world. „We appreciate the support and trust provided by egta in everyday questions of our operation. AKTV´s agenda is wide ranging - from marketing activities to public affairs, for this reason, we value close collaboration and we are happy to use the egta experts’ know-how“ says Jan Vlček, President, the Czech Association of Commercial Television. „We’re very proud to welcome AKTV to the egta family as an associate member and are looking forward to working closely together towards our common goal: the promotion of television.“ adds Katty Roberfroid, Director General, egta. About AKTV: The Association of Commercial Television (AKTV) is an association of terrestrial television broadcasting operators with the goal of defending, supporting and promoting the common interests of commercial broadcasters in the Czech Republic. AKTV was established in 2017 in response to the growing need among commercial television companies to defend and promote their interests. AKTV intends to represent their interests vis-à-vis government authorities and to be a partner in the dialogue as part of making both national and European laws. It will also focus on protecting copyrights and marketing and educational activities in the field of television broadcasting. About egta: egta is the European trade association for marketers of advertising solutions across (multiple) screens and/or audio platforms, with the aim to help its members protect, grow and diversify their business around content edited and broadcast on a linear basis by their TV channels and/or radio stations. egta's members are sales houses that commercialise the advertising space of both private and public TV and radio channels throughout Europe and beyond. egta’s strength lies in the diversity of its members: they are independent sales houses or commercial departments within a broadcaster's structure. They include large companies in major markets and medium-sized companies in smaller markets.