Vladimír Urbánek (Kurzy.cz)
Czech markets  |  December 13, 2010 09:34:50

CME: TV Nova reduces the base cost of advertising


According to a press release reducing Nova next year the price of advertising. Nova will reduce the basic price for GRP (target intervention group) by 10% to 20 250 CZK (without VAT). The biggest competitor to the contrary, Prima TV ads cost 10% increase. Drop in the price of advertising is negative surprise for us. In our opinion, the price of advertising should grow at a moderate pace. Following the publication of CME's share price responded to a decrease of about 1.5% by the end of trading, however, managed to erase the decline and closing price on Friday was 1.4% higher.

Paul Ryska

The fall in prices does not bode well for future trends, he does not include discounts. CME in 2010 already provide discounts main advertisers in the range 10-25%, so even a 10% reduction compared to the price list does not imply a real decline in sales. Overall, we expect that the growth of the advertising market in the CR in the next year will reach about 4-6%, while CME is facing strong competition, resulting in slightly lower growth compared with the entire market. The issue will continue to monitor, but can not yet rule out a slightly negative market reaction.

V. Kmínek

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