GPMD Video ad 2016 Stronger Faster Higher Video popularity growth - PowerPoint PPT Presentation

GPMD Video ad 2016 Stronger Faster Higher

Video popularity growth Users watch more than 14 972 353 426 video rolls monthly M users % penetration of video in relation to the country population 70% 64% 57% 49% 37% 25% 100 23% 92 83 70 52 36 33 2011 2012 2013 2014 2015 2016F 2017F 2 Json&Partners Consulting, Comscore, 2014 Comscore Media & Video Metrix, Russia, 6+, December 2015

GPMD reach VS Т V channels 12-54 18-35 12-17 СТС 2 819 ПЕРВЫЙ КАНАЛ 37 944 ПЕРВЫЙ КАНАЛ 17 758 ТНТ 2 642 РОССИЯ 1 36 313 РОССИЯ 1 16 470 ПЕРВЫЙ КАНАЛ 2 575 СТС 35 381 ТНТ 16 356 GPMD ТНТ СТС 2 384 34 374 16 210 РОССИЯ 1 НТВ НТВ 2 280 33 421 14 710 РЕН ТВ РЕН ТВ НТВ 31 396 13 775 1 960 ПЯТЫЙ КАНАЛ GPMD РЕН ТВ 27 201 12 655 1 857 ТВ -3 ТВ -3 26 841 11 523 ПЯТНИЦА 1 690 ТВ ЦЕНТР ПЯТНИЦА 25 790 11 153 ТВ -3 1 569 GPMD ПЯТЫЙ КАНАЛ 24 536 10 885 DISNEY 1 482 ПЯТНИЦА 24 345 ТВ ЦЕНТР 10 410 ПЯТЫЙ КАНАЛ 1 465 МАТЧ ТВ 22 107 МАТЧ ТВ 8 484 ЧЕ 1 301 Internet video advertising as a communication channel is comparable to the audience with the leading TV channels 3 TNS TV Index/Web Index, Russia 100 000+, December 2015

Video consumption trends VOD high penetration PC audience growth slows down Video legalization Legal video changes illegal People watch more often Frequency growth Online video becomes mobile 40% of mobile internet users watch video Content consumption 24/7 Quantity of mobile gadgets per user leads to new habits 4

Video consumption trends VOD high penetration Growth of Video views frequency Desktop online video penetration through age-grade(% Russia population) 100,0 68% 12-24 90,0 +24 % 71% 80,0 61% 25-34 70,0 67% 60,0 55% 35-44 50,0 60% 40,0 +26 % 46% 45-54 30,0 47% 20,0 34% 55-64 10,0 29% - Weekly average coverage Daily average coverage The most active audience begins to use mobile devices for viewing online video 2015 2014 2014 2015 TNS Web Index, Russia, % of users of category 5 Age 12-64, 100 000+, December 2014/2015

Video consumption trends 71 500 25 000 000 71 71 000 20 000 000 70 500 M users watch video 70 000 15 000 000 69 500 10 000 000 69 000 96% 41% 68 500 users watch video at home users watch video at work 5 000 000 68 000 1462 67 500 0 min Users watch video average per Total Unique Viewers (000) Videos (000) month 6 *comScore Video Metrix, Russia, 6+, December 2015

Features of consumption Average per 12-17 18-24 25-34 35-44 45-54 55-64 Age month +14% +22% +12% +19% +34% +33% +20% Frequency 69,7 138,8 98,3 58,9 49,2 56,3 60,3 views per month +13% +11% +4% +5% +11% +30% +36% Views per 2000 333 457 465 287 268 190 month M The high frequency of content consumption allows to run ad campaigns in order to achieve effective users coverage 7 TNS Web Index, Russia, 12-64, 100 000+, December 2014-2015

Video consumption trends Video legalization Out of the shadows The average user don’t share: legal or pirated content. User needs to access it. 7 BN 2,5 BN views views pirated legal « Out of the shadows » = to increase number of legal video video video views Out of the shadows 8 GPM-Digital expert review, April 2015, ComScore

Video consumption trends Going mobile Desktop/Mobile: dynamics of web sites with video content 40% of the time is spent viewing on mobile device -8% + 5 % + 4 % Web Desktop App Online Web Mobile Desktop reach decrease and Mobile reach increase in research towns 9 * Google Insights “YouTube Multi -Screen Study Web Index, Web Index Mobile, July to March 2015, Moscow + St Petersburg, Internet users 12-64

Video advertisement from GPMD

According to ComScore VMX 42 800 0 00 people* According to TNS 27 500 000 people** Available 7 000 000 unique users 240 M impressions in mobile devices monthly under development … Available 90 M impressions in Smart TV monthly under development… *comScore Video Metrix, Russia, 6+, December 2015 11 GPMD Forecast ** TNS Web Index, Russia, 12-64, December 2015

GPMD competitors Unique online video audience GPMD 27 500 000 27 575 900 20% UGC 80% License 11 132 000 8 205 100 5 995 300 4 512 000 4 088 200 GPMD Youtube** IMHO Mail видео Яндекс видео Everest Ivi All websites from prise list Including Kinopoisk (except YouTube) 12 TNS Web Index, 12-64, Russia 100 000+, December 2015

GPMD audience of video commercials Share of audience in GPMD’s pool 12-17 9% 9% 18-24 Men 17% Women 17% 25-34 49% 51% 35-44 20% 45-54 28% 55-64 82% of GPMD audience are active consumers of goods and services: Try everything to get the most vivid impressions • Try new foods • Spend extra money on a well-known brand • Go shopping to cheer up often • Spend money • 13 TNS Web Index, 12-64, Russia 100 000+, December 2015

Additional features of video ads Even better than TV CONTACT QUALITY INTERACTIVITY TARGETING • Brand metrics improvement • Demographic • Contact time growth • Ad retention • Re-targeting • Fast optimization • Frequency capping 14

Video ads opportunities Content quality improvement Users attention while watching 15% Without interruption 34% 38% 11% Interruption 36% 28% Switched to other channels 18% Left the contact zone 19% 1% Other TV VOD 15 Research Comcon & IVI.ru, 2013, TV- 1000 people, IVI – 925 people

Video ads opportunities Content quality improvement 171% In-stream (pre-roll) 144% Video format Visibility 1 sec Visibility 5 sec 75% In-page (video-banner) In-Page average 70% 52% 61% In-Page min 56% 41% 52% Display (banner) 42% In-Page max 75% 59% In-Stream min >90% >90% 100% TV 100% Ad recall Purchase intent 16 Vivaki, Comcon Russia

Unified planning model TV + Digital Optimum media split Effective frequency reach Optimize TV split and effective supplement due VOD Elusive TV audience reach Additional tools for interaction with the target audience Budget Effective reach minimum budget 17

Video ads opportunities Demographical targeting Demographical targeting in VOD gives us an opportunity to reach target audiences according to advertiser’s goals THEME TARGETING DEMOGRAPHICAL TARGETING Thriller Melodrama Thriller Melodrama Demographical targeting helps to reach target audiences 3-4 times better compared with natural share campaign’s progress 18 * According 6 campaigns testing, April-May 2014, Impr. – more than 1,2 M users

Video ads Re-targeting Options: 1. Sequential demonstration of video ads (2 nd video ad for those who watched the 1 st one) 2. Video ads demonstration for those, who visited client’s website 3. Banner demonstration for those, who watched video ads 1 Ad ROLL-2 User watched 2 demonstration Ad ROLL -1 BANNER show 3 User visited Ad ROLL demonstration WEBSITE 19

GPMD video ad The increase in complete video views eTRP 32 Smart-roll Demography, re-targeting M 29 M All-roll Interactives 25,7 Frequency limitation M 20,6 Web sites, themes M GPMD Evolution Reach (unique users) 2,6 bn Potential capacity to 6 bn 9 bn monetize 14,2 bn 2012 2013 2014 2015 20

GPMD video ad Standard ad products MOBILE: DESKTOP: Pre-roll/Mid-roll/Post-roll Pre-roll/Mid-roll/Post-roll/All-roll/Overlay/Banner on pause Ads Overlay Ad in the bottom of videoplayer SMART TV: Banner on pause Pre-roll In-player banner on pause Go to advertiser’s site All-roll Single frequency for Mid-roll Pre-roll Post-roll pre/mid/post-roll Video ad before content Video ad during content Video ad after content 21

Advertising product The most important option for branding campaigns is user’s COMPLETE CONTACT with the ad Timing content 0 min 5 min 15 min Close button appears on 11 th sec Close button appears on 11 th sec Close button doesn’t appear One ad video is in pre-roll, Ad unit in pre-roll ads Ad unit in pre-roll, mid-roll, post- • • • post-roll One ad video in post-roll roll • Average result of ads total view growth increased by 50% compared to results before change ad demonstration 22

Interests targeting Scheme of work How it works: RB advertising management system collects information on the audience from the following sources: Mail thematic resources, Mail individual projects (incl. social nets), Mail web site articles, TOP-level Mail calculators on web sites and other. User has regularly over a period "to be" in the points account actions Mail website. * To get into the segment of interest to the user is not enough once read an article - each segment has its own algorithm for determining the hit by this segment. Once the user loses interest in some categories, the system stops producing target 23

GPMD & advertising management system RB Main advantages GPMD identifies more than 60% GPMD content increase several times Audience behavioral targeting from audience in terms of demography using knowledge of demography Mail.ru is available for GPMD GPMD provided OLV market qualitative demography targetings. Accuracy hit (according TNS) 60-80% 24