Discounts for TV channels Granted by btv Media Group in 2016 Introduction Advertisers and Advertising Agencies which have signed a contract for broadcasting of TV commercial communications with btv Media Group (BMG) may be granted the discounts described below if they accept and observe the terms for discount acquisition. The Advertising Agencies can make guarantees and sign contracts on behalf of their clients in case they are authorized in advance for doing this and within the provided powers. Granting and obtaining any of the described discounts is not a precondition for the conclusion of a contract for broadcasting of TV commercial communications. 1. Discounts for BMG s TV channels The below conditions apply to all TV channels within BMG: the Main TV Channel btv and the Niche TV Channels - btv Comedy, btv Cinema, btv Action, btv Lady and RING.BG and any other TV channels that may be added to the group. BMG is entitled to allocate at its own discretion up to 10% (the allocation from 11% to 100% is at clients discretion) of the planned Clients the Niche TV Channels, but the selection of the specific Niche channels is at Clients discretion. The distribution of the budget allocated to Niche TV Channels depends on the number of channels chosen and on the combination of those channels and will be automatically determined by the official order template of BMG. The official order templates of BMG for btv and for the Niche TV Channels are the only one official form for ordering advertising airings on BMG. BMG guarantees 100% rating points for all of its TV channels, as described in details in each Rate card, for Standard Advertising and for all Alternative Advertising Forms, except for Product placement activities. BMG sells its commercial time with regard to the following time zones: 1. Agency discount Time Zone From - To Day Time 06:00-16:00 Prime Access 16:00-19:00 Prime Time 19:00-24:00 Late Fringe 24:00-02:00 Night Time 02:00-06:00 Advertising agencies, members of the Bulgarian Association of Communication Agencies or of the International Association of Advertising Agencies are eligible for obtaining a 5% discount from the gross value of each order placed with BMG. 2. Volume discount BMG offers a discount from the net volume of the advertising schemes ordered and aired between January 01, 2016 and December 31, 2016. The net volume is equal to the sums of the ordered advertising schemes on BMG after calculating VAT and after deducting any discounts.
3. Budget Growth Discount Net Volume in BMG (excl. VAT) (January 01 December 31, 2016) (1) This discount is granted for growth in the gross vested in BMG compared to that invested in the previous year by the Client. The gross budget is equal to the sum of the ordered advertising schemes (without bonus and compensation airings) on all TV channels of BMG before calculating VAT and before deducting any discounts. (2) This discount is an alternative to the discounts described in items 4 and 5. (3) This discount shall be granted only to clients who have been active in BMG in 2015. (4) The budget growth discount is granted in advance after signing a standard agreement according to which the Client guarantees respective growth of the annual advertising BMG compared to the previous year. If the given guarantees are increased on a later stage during the year, the respective higher discount can be obtained after signing a new agreement. The discount stated in the respective agreement shall be effective for the advertising budget realized after the date of its conclusion but the guarantees shall refer to the whole current year. Growth of Gross Volume in BMG for 2016 vs. 2015 Budget Growth Discount in BMG Over 25% 6% Over 40% 7% Over 400 000 BGN (excl. VAT) Gross Growth 8% Over 600 000 BGN (excl. VAT) Gross Growth 9% (5) If at the end of the year the guarantees are not fulfilled, the lower budget growth discount rate corresponding to the actually invested level shall apply on all orders placed in the period of the concluded agreement. 4. Preferential Volume Discount Volume Discount in BMG From 1 000 BGN to 100 000 BGN 1% From 100 001 BGN to 250 000 BGN 2% From 250 001 BGN to 500 000 BGN 3% From 500 001 BGN to 2 000 000 BGN 4% From 2 000 001 BGN to 4 500 000 BGN 5% From 4 500 001 BGN to 7 000 000 BGN 6% From 7 000 001 BGN to 14 000 000 BGN 7% Above 14 000 001 8% (1) Preferential volume discount is an alternative to the discounts described in items 3 and 5. It is granted to Advertisers based on a guarantee for spending a specific share in BMG from their annual TV advertising budget.
Share in BMG of the total TV budget (January 01 December 31, 2016) Preferential Discount in BMG At least 50% 6% At least 60% 10% At least 65% 13% At least 70% 16% At least 75% 18% Over 76% According to agreement but not more than 23% (2) The preferential volume discount shall be granted upon Client s request after signing a standard agreement guaranteeing a particular share of the annual TV advertising budget. If the share is increased on a later stage during the year, the respective higher discount is obtained after signing a new agreement. The discount stated in the respective agreement shall be effective for the advertising budgets realized after the date of its conclusion but the share guarantee shall refer to the whole year. (3) The calculation of the share spent in BMG is based on the data provided by the monitoring services of GARB which gives an account of the gross budgets Advertisers spend for TV advertising. 5. Combined Discount (1) This discount is granted to clients who in 2016 engage both with a guarantee for growth of annual gross BMG compared to the previous year and with a guarantee for share in BMG from their total TV budget. (2) The combined discount is an alternative to the discounts described in items 3 and 4. A combined discount shall be granted to clients who have been active during the previous year in BMG and guarantee at least 50% share in BMG during the current year. Clients, who have guaranteed a budget and not less than 60% share in BMG during 2015 and have fulfilled their obligations, but in 2016 have no growth, but retain their share and Net BMG, shall receive a Special Combined Discount outlined below. Share in BMG of total TV Budget in 2016 Special Combined Discount Gross volume growth in BMG in 2016 vs. 2015 / Combined Discount Over 25% Over 40% Over BGN 400 000 excl. VAT Over BGN 600 000 excl. VAT At least 50% - 10% 11% 12% 13% At least 55% - 12% 13% 14% 15% At least 60% 13% 14% 15% 16% 17% At least 65% 16% 17% 18% 19% 20% At least 70% 19% 20% 21% 22% 23% At least 75% 21% 22% 23% 24% 25% Above 76% According to agreement but not more than 30%
(3) The calculation of the share spent in BMG is based on the data provided by the monitoring services of GARB which gives an account of the gross budgets Advertisers spend for TV advertising. NB! In the event that the parties agree for obtaining a budget growth discount, a preferential volume discount or a combined discount they should sign an annex to the respective contract or separate agreement for obtaining the respective discount. Discount for early signing of an agreement for 2016 (Discount for early commitment) -Additional Opportunity for Budget Growth/ Preferential/ Combined Discount increase BMG offers opportunity for additional increase of one of the said three discounts. This option is applicable for clients that do not decrease their investment and share of advertising BMG on annual basis (2016 vs. 2015) as well as for new clients. This discount shall be added to one of the said three discounts which has been chosen by the Client budget growth/preferential/ combined discount: Annual agreement signed not later than: Discount December 15, 2015 9% January 15, 2016 8% January 29, 2016 7% 6. Package Discount a. Standard packages in btv (1) BMG offers to prepare package proposals media plans, containing a program selection according to the specific target audience specified by the Client, the level of investment and the budget distribution among the two general time zones Prime Time (PT 19:00 24:00) and Out of Prime Time. The package discount is granted to clients which rely on btv s team to select the programs. The levels of package discount depend on the correlation between the gross budget and the level of investment Out of Prime Time. A package proposal is valid for one product only. In order to receive a package discount, the Client needs to spend the budget within a fourweek period. If the campaign exceeds the four-week period, the amount necessary for granting the package discount is increased proportionally to the exceeding period. Gross BGN excl. VAT (From To) / Package Discount in btv Share in PT Up to 20 000 20 000 40 000 40 000 60 000 60 000 90 000 90 000 120 000 120 000 150 000 Over 150 000 Up to 40% 4% 6% 7% 8% 9% 10% According to Up to 50% 3% 5% 6% 7% 8% 9% agreement but Up to 60% 2% 4% 5% 6% 7% 8% not more than Up to 70% 1% 3% 4% 5% 6% 7% 12% b. Packages in Niche TV Channels BMG offers the following levels of package discount, depending on the number of channels among which the Client has decided to distribute the budget allocated to Niche TV Channels.
Number of Niche TV Channels Package discount valid for each Niche TV Channel 1 channel 0% Combination of 2 channels 2% Combination of 3 channels 5% Combination of 4 channels 9% Combination of 5 channels 12% Combination of 6 channels 13% Combination of 7 channels 15% Combination of 8 channels 16% c. Additional Opportunities for Package Discount increase in BMG Clients that guarantee in writing that minimum 10% from their net TV commercial budget allocated to BMG will be invested in integrated proposals, including sponsorship and other unconventional elements, may be granted an additional 2% to their package discount in those cases, when buying a package, generated by BMG s team. The additional discount will be applicable to the channel(s) in which the integrated proposals are invested. Clients that guarantee in writing that minimum 10% on top from their net TV commercial budget allocated to BMG will be invested in the web pages of BMG, may be granted an additional 2% to their package discount in btv and in Niche TV Channels in those cases, when buying a package, generated by BMG s team. These clients will get additional benefits for buying advertising in the web pages of BMG. Clients that guarantee in writing that minimum 10% on top from their net TV commercial budget allocated to BMG will be invested in btv Radio Group, may be granted an additional 2% to their package discount in btv and in Niche TV Channels in those cases, when buying a package, generated by BMG s team. These clients will get additional benefits for buying advertising in btv Radio Group. Clients that guarantee in writing that minimum 5% on top from their net TV commercial budget allocated to BMG will be invested in Product placement, may be granted an additional 2% to their package discount in btv in those cases, when buying a package, generated by BMG s team. Package Annual Budget Split Discount in + 10% of BMG s TV integrated proposals 5% on top of BMG s TV product placement 10% on top of BMG s TV Internet 10% on top of BMG s TV Radio btv +2% +2% +2% +2% Niche TV Channels +2% +2% +2% +2%
Clients that are not willing to buy advertising on btv are entitled to conclude a package deal on a monthly basis with BMG which includes different media, thus gaining the opportunity to receive increased package discount as follows: Monthly Budget Split Package Discount in + Niche TV channels + additional min. 50% Internet Niche TV channels + additional min. 50% Radio Internet + additional min. 70% Radio OR vice versa Niche TV channels + additional min. 50% Internet + additional min. 50% Radio Niche TV Channels +2% +2% +4% Internet +5% +5% +10% Radio +3% +3% +6% e.g. Niche TV channels + additional min. 50% Internet shall mean that the net investment for Internet on monthly basis shall amount to minimum 50% of the net investment for Niche TV Channels. d. Total rotation in btv BMG offers to its clients three different types of Total Rotation packages. These packages aim clients to be offered the possibility to be on btv s program at a fixed price per airing. Spots are positioned by BMG s team all over the program, according to the fulfillment of the commercial breaks during the respective period. Ratings are not guaranteed for these packages. The price of a single airing of a 30 spot varies depending on the number of spots aired in Prime Time. The official coefficient scale of the media applies for spot lengths different than 30. Total Rotation packages allow clients to see beforehand where spots are positioned by program and by date. Despite, BMG s team keeps the right to move already booked and confirmed spots during the campaign. The final spots distribution is received by the client with the broadcasting certificate not later than 15 days after the end of the month in which the campaign has finished. Discounts that can be granted regarding package proposals Total rotation are all applicable discounts, valid for 2016 with the exception of the package one. Total Rotation Packages on btv Gross price per 30 airing (BGN excl. VAT) 40% of the airings in Prime Time 25% of the airings in Prime Time 20% of the airings in Prime Time 1 600 1 200 1000 Order of TV discounts calculation (cumulative) 1. Agency 2. Volume 3. Preferential/Budget Growth/Combined 4. Package