Банкеръ Weekly

Briefs

M-TEL AND GLOBUL SPEND HEAVILY ON ADS

NOKIA WAS THE MOST ADVERTISED TRADE MARK IN 2002The first Bulgarian mobile telephone operator M-Tel increased its budget for advertising by some 70% in 2002 as compared to the previous year, investing BGN20,009,000 in press and TV ad campaigns, up from BGN12,453,000 in 2001.The figures of its competitor GloBul are more modest - BGN15,767,000 was spent on advertising in 2002, up from BGN9,982,000 the year before. The comparison shows that regarding the absolute value of investments and the growth of ads budget, the second Bulgarian GSM-operator has been less active on the advertising market. In 2002 GloBul's ads budget increased by about 60% from 2001.These data have been released by the agency for market and sociological research Marketing. Media. Analyses. and are based on the monitoring of four of the mostly watched TV channels in the country (Bulgarian National TV, bTV, New Television and 7 Days), two cable TV programmes (Eurocom and MSAT), and 65 newpapers and magazines. The agency has calculated the proceeds on the basis of tariffs for advertising, published by the media, without taking into account the eventual discounts.Like two years ago, the two GSM-operators, their analogue competitor Mobikom, and the distributors of accessories for mobile telephones have spent more on ads in the press than on TV. According to the research agency, the mobile phone operators together with the firms for trade and payments spent a total of BGN20,806,000 for ads in the 65 monitored publications. This amount has been paid for the advertising camapaigns of 13 companies. Seven firms advertised on TV, investing a total of BGN17,967,000.The first mobile operator M-Tel presented 42 of its products and services in the press, its image ads still having the largest share in its campaigns. Almost BGN4MN (more than 33%) of M-Tel's aggregate press budget of BGN11,845,000 went for affirming its trade mark. The campaign for introducing the voice mail service comes second with approximately BGN1,250,000 (or 10%) of the company's money for ads in the press. Promotion of pre-paid SIM-card follows with BGN1,109,000 (less than 10% of the total amount) spent for that purpose. 2002 was the year of promotions for GloBul. The second GSM-operator offered 60 services and promotions in the press. In the advertising strategy of the second GSM-operator presentation of its image swallowed 31% of the entire BGN7,807,000 budget for ads in the press, or almost BGN2.5MN. The pre-paid communication service B-connect comes next with BGN1,883,000 (about a quarter) of the total budget for ads in newspapers and magazines. Opportunities for pay-free calls proposed by GloBul are far behind (only 6% or BGN480,000 of the total budget for ads in the press was spent to present them.More than 96% of the money invested in TV ads by M-Tel in 2002 was aimed to establish its trade mark. The company's logo was aired 8,856 times on the six TV programmes, mostly before or after the weather forecast, broadcasting of sports events, etc. The first Bulgarian GSM-operator spent a total of BGN8,164,000 for TV ads. Nearly BGN7,840,000 of that amount went for image commercials (i.e. the well-known slogan This is your voice - M-Tel). For comparison, the other most broadcast image commercial - that of GloBul - was aired 1,810 times on the six TV channels monitored by the research agency Marketing. Media. Analyses. The mobile operator paid BGN3,780,485 for that.In 2002 Nokia was the most widely advertised mobile telephone trade mark in the press. M-Tel and GloBul and the trade distributors connected with the latter invested almost BGN1MN for individual promotions of the devices offered by the Finnish technological giant (with or without SIM-cards). For comparison - Motorola mobile phones were presented in individual press campaigns costing BGN408,078. In the beginning of 2003 the BANKER weekly published data from the agency for market research Market Test, showing that each fifth Bulgarian subscriber of mobile telephone services holds a Nokia device.The analogue operator Mobikom was far behind its GSM competitors on the ads market in 2002. The Bulgarian-British JV did not broadcast a single TV commercial last year, data showed. The JV spent BGN205,000 for ads in the press (about 1% of the total advertising budget of all mobile operators). Almost BGN110,000 (or 53%) of Mobikom's advertising budget went for the campaign presenting its Mobilic service. A year earlier the analogue mobile phone operator was present on both the TV and the press ads market with a budget of BGN1,370,000. About two thirds of it (BGN920,519) was spent on ads in the press and one third - on TV ads. In 2001 Mobikom was the first to offer its clients a reduction of the its tariffs. This happened some months before the second GSM-operator GloBul stepped onto the domestic market. The three private mobile telephone operators and the distributing companies connected with them spent a total of BGN38,771,000 in 2002 for ads on TV and in the press, up from almost BGN25MN in 2001.

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