WHAT YOU SEE IS WHAT YOU GET ….BUT YOU AIN’T SEEN NOTHING YET

MEDIA USAGE OF IRANIAN COMPARED WITH WESTERN AND MIDDLE EASTERN COUNTRIES Cinema Internet OOH Print Radio TV 11%*** 73% 77% 32% 25% 97% Region Countries** 33% 70% 63% 31% 23% 95% Iran 62% 94% 75% 80% 81% Western Countries* * Western Countries: Germany, USA ** Regional Countries: Saudi Arabia, Turkey *** Regional data is available for Turkey Source: TGI Database

SIMPLE ARENA TO PLAY

TV and OOH Internet MAIN MEDIA DELIVER HIGH COVERAGE have the highest reach. stands in second place. * OOH: Asked people that do they remember any out door Ads. in their way during the last week. Avg 3,9 hours per day spent watching TV per TV viewer. 2,9 hours avg total population. Source: Iran TGI Database, Sep 2016

Channel 3 MOST VIEWED TV CHANNELS Is the most popular TV channel in Iran followed by Channel 1. All of the most popular TV channels are terrestrial. Source: Iran TGI Database, Sep 2016

IN THIS SIMPLE TV LANDSCAPE, 3 CHANNELS ARE ENOUGH TO GET HIGH REACH. More than 40 channels There is only IRIB, no private channel. Average number of channels people daily viewed is 3.6. Advertisers can reach 80% of people with top 3 channels. Source: Iran TGI Database, Sep 2016

IRANIAN TV ADVERTISING COST COMPARATIVELY CHEAP Country Cost Per GRP for TV Germany 6,105 $ UK 7,431 $ Norway 1,490 $ Italy 6,900 $ Portugal 371$ Iran* 260 $ Source: ZINTX International Media Buying/www.zintx.com *Source: EMRC Definition: Housewives; 20-65; 50% prime time & 50% daytime; local brands; 30” spot

ADVERTISING EXPENDITURE SPLIT BY MEDIA Source: EMRC, 2016

ADVERTISING EXPENDITURE IN IRAN IS LOW Spending Per Capita in U.S. $ - Estimated 2014 Sources: Statista.com, EMRC Iran market is not mature in the field of advertising.

BUT THERE ARE SOME COMPLICATIONS FOR ADVERTISERS IRIB rules the air: Satellite receivers are forbidden Nevertheless 60% of urban population has access to satellite No audience measurement of satellite channels

MEDIA USAGE PATTERNS ARE DRAMATICALLY CHANGING Print Media Penetration has 45% declined Internet Penetration has 189% growth Source: Iran TGI Database

REASON 1 CONTENT PROBLEM

CONTENT IN DIGITAL MEDIA SEEMS MORE INTERESTING “I download movies on internet” 5% increased from 2009 “I watch movies and series on TV” 33% decreased from 2009 Source: Iran TGI Database, Sep 2016

INCREASING NEWS CONSUMPTION IN DIGITAL MEDIA “I follow news via internet ” 33% increased from 2009 “I am following newsroom on TV” 57% decreased from 2009 Source: Iran TGI Database, Sep 2016 TV news: 55 -> 24%

DIGITAL MEDIA OFFER WIDE CHOICE “I download music or listen to it online” 63% increased from 2009 “I listen to music on Radio” 33% decreased from 2009 Source: Iran TGI Database, Sep 2016

REASON 2 YOUNG PEOPLE ARE DIFFERENT

YOUNG PEOPLE MEDIA USAGE VS. OLDER PEOPLE (15-30 years old) Older people (50+ years old) Use internet 19% more than average. Use internet 44% less than average. Visit Cinema 29% more than average. Visit Cinema 28% less than average. Listen to radio 28% less than average. Listen to radio 22% more than average.

YOUNG POPULATION TIME SPENDING ON MEDIA IS DIFFERENT Compared with older people, on a week they spend: 1.7 hours less on watching TV 36 Minutes less on reading newspapers 4.5 hours more on online activities 2.3 hours less on listening to radio 1.5 hours more on out of home activities Per week

“I am downloading/playing games on internet” 54% increase from 2009 Source: Iran TGI Database, Sep 2016

“I do online banking” 74% increase from 2009 Source: Iran TGI Database, Sep 2016

“I search on the internet before I decide to purchase” 17% in 2016 Source: Iran TGI Database, Sep 2016

Internet penetration (15-30 years) Germany 98% Iran 83% Source: Iran TGI Database, Sep 2016

Internet penetration (50+) Germany 80% Iran 46% Source: Iran TGI Database, Sep 2016

THE FUTURE

Young people’s media usage changes the game 63% of population are less than 35 years old.

THE FUTURE IS … More fragmented media usage Digital media IPTV Users go where they find good contents

IMPLICATIONS FOR ADVERTISING

Invest and build your brand NOW Simple media landscape  easy coverage build up Advertising is cheap

ADVERTISERS MUST BUILD UNDERSTANDING AND CAPABILITIES FOR CLASSIC MEDIA

It’s time to invest in digital capabilities

TO SUCCEED … Understand Invest Act