advertising and sponsoring
In the TV broadcasting and production segment, advertising and sponsoring are a key revenue source, accounting for about 80% of total revenue in 2012.
This revenue is almost entirely generated by the Group’s advertising bureau, Polsat Media, which operates on the market as the Group’s advertising agent (sales house) under a cooperation agreement of December 27th 2003.
Polsat Media is responsible for sales of all forms of advertising: commercial spots, sponsorship and other related contracts. Polsat Media provides advertising support to all the Group’s channels with the exception of Polsat JimJam.
Polsat Media’s main trading partners are international media houses, which act as intermediaries, negotiating contract terms and running advertising campaigns for their customers. Advertising time is sold under both year-long contracts with media houses and direct orders from customers.
CONTENT DISTRIBUTION VIA THE INTERNET
Distribution of programming content via the Internet is another source of revenue to the Telewizja Polsat Group. In this area, Polsat Group’s partner is Redefine Sp. z o.o., a subsidiary of Cyfrowy Polsat and operator of ipla online television, which is the leading player on the online video market in Poland, both with respect to availability for reception via various devices, as well as with respect to the content offered. Broadcasting of programming content over the Internet is based on two settlement models. The first consists in payment of a fixed monthly amount for the right to broadcast a given programme; the second, in obtaining a percentage share in the advertising revenue generated by advertisements broadcast in proximity to the material.
In the case of the ipla service, about 85% of total revenue is generated by sales of advertisements, and about 15% derives from content purchases by service users.
SALES TEAM
Polsat Media is responsible for sale of advertisements and sponsorship packages, planning of campaigns, post-sales analyses, market surveys and other research, new product development, and – last but not least – improving relationships with current and potential advertisers.
Additionally, in order to guarantee an adequate level of support in planning advertising campaigns for the Group’s stations, the Polsat Media team works closely with clients and media houses on non-standard activities, such as sponsorship campaigns and other related cross-promotions.
The advertising bureau is also responsible for allocating commercial spots in line with customers’ expectations as to the programming context and the broadcast time of individual campaigns.
SALES OF BROADCASTING RIGHTS TO THE GROUP’S CHANNELS TO CABLE AND SATELLITE NETWORKS
In 2012, this revenue source represented around 15% of the segment’s total revenue. Standard distribution agreements stipulate monthly fees for delivering the signal of the Group’s channels to subscribers of a given network. The fee rates depend on the number of subscribers reached by our channels.
