64th World Newspaper Congress and 19th World Editors Forum

1. Around the world in
60 minutes
Maxim Melnikov
CEO
Media 3
Russia

2. New
Media
Welcome to CEE!
Maxim Melnikov, CEO Media3, Russia
WAN IFRA Congress
Kiev, September 3, 2012

3. Central and Eastern Europe: Dynamic. Digital. Local
We are: Belarus, Bulgaria, Croatia, Czech Republic,
Estonia, Hungary, Latvia, Lithuania, Poland,
Russia, Slovakia, Slovenia, Turkey and Ukraine
Total audience 261 mln
Internet users: 143.5 mln
Internet Penetration: 55%
Source: Media3 3

4. Key trends: Print  Digital is no longer a strategy, it is reality.
CEE is the region where old media is stagnating and the new media is growing
• Largest internet audience in Europe: Russia (55 mln)
• Fastest Internet audience growth in Europe: Belarus (+20%)
• Highest Internet Advertising growth market: Ukraine (+59%)
• Highest Mobile page views growth in Europe: Lithuania (+980%)
Media by Region YoY% Change Q1 2011-12
Source: Nielsen Global AdView Pulse report, 2012 4

5. Key surprises: Exceptionally strong local players (original or clones) in Russia,
Ukraine and Belarus. Google, Facebook and Groupon are present but do not
control the CEE market
Social networks:
Russia (vk.com – 70%; odnoklassniki – 61%), Poland (nk.pl – 59%), Latvia
(draugiem.lv – 54%)
Search engines:
Russia (yandex.ru – 74%); Estonia (neti.ee – 50.4%); Belarus (yandex.by – 43%)
Group shopping websites:
Russia (Biglion.ru – 36%)
World Map of Social Networks Dominance Facebook penetration in CEE region
Source: Vincos.it (July 2012), Gemius/IAB Europe 5
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6. Key challenges vs. Media3 responses to them:
1. Invest in and acquire mature
digital projects with proven
1. “Mind the Gap” between
business models, strong
shrinking print revenues and
leaders and give them
growing digital ones. It may
support they need . You will
take a while till one will
save time and avoid the start-
compensate for the other.
up risk
Have you got that time?
2. Partner with only a few strong
teams and invest only in
2. “VC Hype”: too much funds
‘built to last’ assets, not ‘pack
from VCs on the digital
to sell’; use your strategic
market drives the valuations
advantages in deal structure
up to the extreme
(media coverage; relations
with advertisers, etc.)
3. “HR deficit in digital”: a lot of
evangelists and buzz words;
3. Good professionals value
only a few professionals in
good teams. Once you invest
management, sales and
in a right digital asset you can
marketing who are very
build a center of competence
expensive and hard to attract
around it with a right ‘culture’
that will attract the right
people.
Source: Media3 6