RATE CARD Effective as of 1 January 2015(and amended on 20th of February 2015) Advertising air time on Nova Broadcasting Group (NBG) can be purchased in the following ways, according to the period of the contract: signing an annual agreement by guaranteeing a certain annual budget and/or share. Annual agreements should be signed prior to the start of the first campaign; purchasing advertising airtime on campaign basis. As of October 1st, 2014 NBG prices its advertising time based on data provided by Peoplemetric agency Media Research EAD, UIC 201937832 and Smart Ad Server. Advertising airtime for the respective period can be purchased in one of the following three ways, depending on the methodology of planning for the offered channels – Nova, Diema, Kino Nova, Diema Family, Nova Sport, Discovery Channel, TLC, Disney Fox, Fox Crime, Fox Life, 24 Kitchen, National Geographic Channel, AXN, City TV, NetInfo portfolio (Video Ad Pack): with audience guarantee – for the group of channels as a whole. Keeping the channel split is obligatory for all advertisers. Audience delivery will be guaranteed for campaigns on Nova, Diema, Diema Family, Kino Nova, Discovery Channel, TLC, Disney, National Geographic Channel, Fox, Fox Crime, Fox Life, AXN, NetInfo portfolio (Video Ad Pack). For Nova Sport, 24 Kitchen and City TV the budget will be distributed on a monthly basis with a fixed spot price; separately for each channel by its monthly rate cards - Nova, Diema, Kino Nova, Diema Family, Nova Sport, Discovery Channel, TLC, Disney, Fox, Fox Crime, Fox Life, 24 Kitchen, National Geographic Channel, AXN and City TV at spot price per program without audience guarantee; “Run by Station” (RBS) – campaigns positioned by the Television, with no preliminary approval of a media plan and with no guarantee for specific programs, on one of the following conditions: o Stipulated by the advertiser: campaign dates, target groups, budget and rating points (TRPs); o Stipulated by NBG - TRP channel split corresponding to the natural delivery of ratings for the chosen target group for a period of four weeks minimum. If any of the channels starts to generate a significant audience increase during the year, or if NBG adds a new channel to its portfolio, then NBG reserves its right to include this channel to the package of its existing group according to the terms already noted in this document. The Video Ad Pack model is buying rating points for specific target groups, which will be aired in NetInfo’s websites (iTRPs), and distributed based on impressions, as follows: - 70% video banners – whole NetInfo portfolio, described in Appendix 1; - 30% pre-rolls – Vbox7.com, m.Vbox7.com, Vesti.bg, Novanews.bg, Dariknews.bg, Gong.bg, Sinoptik.bg. The Television keeps its right to change the package of sites included in the Video Ad Pack according to the conditions, described in this document. In iTRPs planning, the discounts and seasonal indeces from the yearly agreement with NBG will be applied. Guaranteed audience packages The Advertising agency plans and positions the campaigns in order to achieve an agreed number of TRPs (with the exception of Nova Sport, 24 Kitchen and City TV for which NBG does not guarantee ratings). If the campaign delivers more or less TRPs than planned, NBG will add or remove spots within the overall channel split and day-part split agreement. NBG has the right to move (without prior approval by the Advertiser or the Advertising agency) up to 15% of the total number of ordered spots according to the parameters agreed by the parties. If the officially announced monthly channel split is not observed, the Television has the right to move spots as to attain it. The guaranteed audience packages offered by NBG are based on the standard annual cost per point for the following target groups noted below: Target groups and prices in BGN without VAT for TV campaigns Target groups Gross CPP Gross CPP* for 60% PT for 70% PT A18-34 A18-49 A25-54 W18-49 W25-54 M18-49 M25-54 A18-49 Urban W18-49 Urban M18-49 Urban 455 372 322 334 280 463 390 357 310 440 478 391 338 351 294 486 410 375 326 462 The costs per point (CPP) mentioned above (applicable for a 30-sec. spot) are based on the natural budget split of 60% in prime time (PT) and 40% - out of prime time (OPT). Any deviation of up to 10% in this split is subject to 5% increase or decrease of the CPP. negotiated discounts remain valid. The Television announces the specials as well as the surcharge on the gross rating point price on its website together with the monthly rate cards and the guaranteed ratings. Campaign delivery *Example for 70% PT. Target groups and prices in BGN without VAT for Video Ad Pack campaigns Target Groups Video Pack A18-34 W18-49 M18-49 Gross CPP 70%/30% 455 334 463 Gross CPP* 90%/10% 410 301 417 The prices are valid for all spot lengths up to 30” with a standard split of impressions 70% - in video banners and 30% - in pre-rolls. *Example for impressions split of 90% in video banners and 10% in pre-rolls. The Advertiser/Advertising agency has the right to choose the most suitable target group for Video Ad Pack in the cases when it is different from the one in the annual agreement with NBG. At all circumstances the gross CPP, valid for Video Ad Pack campaigns, is applied. Each Video Ad Pack campaign is at least three weeks long, with a minimum net investment of 2000 BGN. The ordered target rating points are considered achieved when the impressions according to the media plan are reached. The campaign’s reporting is done based on Smart Ad Server. The prices for 30-second spots stated above can be changed with up to +/- 15% within the calendar 2015. The gross spot rates for the channels without audience guarantee - Nova Sport, 24 Kitchen and City TV - are as follows: Time Zone Day time 06:30-17:29 Gross spot rate for 30” /BGN/ 32 Prime time 17:30-23:59 70 Late night 24:00-01:29 27 Night time 01:30-06:29 7 Specials – these can be programs (reality formats and others) not only on Nova TV, but also on all other channels represented by NBG. They will be surcharged by an index between 110% and 150%. All Nova Broadcasting Group Rate Card Any underdelivered rating points from a certain campaign can be aired in a current or a subsequent campaign of the Advertiser. If a campaign is longer than one month, its delivery will be adjusted for the whole period, recalculated according to the monthly index. If the undelivered rating points are more than 10% in a concrete campaign, NBG has the right to prolong it for not more than 14 (fourteen) days after coordinating this with the Advertiser/Agency. Compensations for undelivered rating points will be aired based on client and not on product. All compensation spots are planned by NBG and they refer to all channels - Nova, Diema, Kino Nova, Diema Family, Disney, Discovery, TLC, National Geographic, Fox, Fox Crime, Fox Life and AXN. All claims regarding the parameters of an aired campaign are accepted within 15 (fifteen) days after receiving final data from the peoplemetric agency. NBG reserves its right to fulfil the campaigns’ parameters by common consent within the agreement’s time period but not more than three months after the campaign’s end date. Time zones – NBG defines the time slots described below. The natural time zones distribution, valid for all channels, is: - 60% of the budget in prime time; - 40% of the budget out of prime time. Time zone Day time Prime Time Night time Mon - Sun 06:00-17:29 17:30-23:59 24:00-05:59 For alcoholic drinks the time zones are as follows: Time zone Prime Time Night time Mon - Sun 22:00-23:59 24:00-05:59 The standard channel split is applied to all advertising campaigns except for the case when the channels are purchased separately. It is published at least 10 (ten) days prior to the first day of the relevant month on NBG’s web page. The split is applied based on budget and it does not refer to bonus spots or seasonal promotions. It is defined according to the audience by target groups for the respective channels. Spot length coefficient In defining the price of every advertising material its length is taken into consideration by calculating a coefficient as follows: Length < 10 sec 11-15 sec 16-20 sec 21-25 sec 26-30 sec > 30 sec Over 2,500,001 BGN Coefficient 0.50 0.75 0.85 0.95 1.00 linear Incentive discount Seasonal index The price of every advertising material is defined by taking into consideration the respective month of the year. The seasonal index is valid for all channels included in the bundle as follows: Index 100 100 110 120 120 110 5% 6% 7% 8% 9% 10% 12% Subject to negotiation but not more than 15% In order to avoid any doubt in the negotiations of the volume discounts based on net investment of over 2,500,001 BGN (without VAT), NBG applies equal conditions to similar volumes. For Video Ad Pack the spot length index is 100%. Month January February March April May June 400,001 - 625,000 BGN 625,001 - 750,000 BGN 750,001 - 1,000,000 BGN 1,000,001 - 1,250,000 BGN 1,250,001 - 1,625,000 BGN 1,625,001 - 2,000,000 BGN 2,000,001 - 2,500,000 BGN Month July August September October November December Index 100 100 110 120 120 110 The above noted seasonal indeces can be subject to change of +/- 15% in 2015. NBG offers an incentive discount for each advertiser according to its net share or budget increase from the previous year. The two options of incentive discounts are mutually exclusive and the Advertiser has the right to choose only one of them which is the most appropriate. Growth of budget 2014/2015 100,000 - 200,000 BGN Discount % 3% 200,001 - 400,000 BGN 5% 400,001 - 600,000 BGN 8% 600,001 - 800,000 BGN 9% Over 800,001 BGN 10% Growth of share 2014/2015 Discount % When campaigns run across two or more months, the seasonal index is applied to the planned number of TRPs in the corresponding month. For +10 points 3% For +20 points 5% For +30 points 8% Agency discount For +40 points 9% For over 50 points 10% All agencies who purchase advertising air time from NBG receive a 5% discount from the Rate Card. Volume discounts NBG offers a volume discount based on the Advertiser’s net investment (without VAT) in accordance with the table below. Advertiser’s Net Investment January – December 2015 Up to 100,000 BGN 100,001 - 200,000 BGN 200,001 - 300,000 BGN 300,001 - 400,000 BGN Volume Discount 1% 2% 3% 4% Nova Broadcasting Group Rate Card The above mentioned incentive discount for advertisers can be requested in advance after signing an agreement which guarantees the annual budget growth or share growth compared to the previous year. If the guaranteed growth level is increased during the year, the respective higher discount can be obtained after signing an appendix to the already signed annual agreement. The new discount comes into effect for the advertising campaigns realized after the date the appendix is concluded but the share or budget growth requirement compared to the previous year shall be calculated for the whole year. - If at the end of the year the guaranteed share or budget is not fulfilled, the lower discount rate corresponding to the actually realized growth level shall be applied. Special discount NBG offers different levels of special discount depending on the budget share invested in advertising, as follows: Share in NBG 2014-2015 At least two consecutive 50% At least two consecutive 60% At least two consecutive 70% At least two consecutive above 75% years Discount % 8% years 10% years 12% years 16% Share in Nova Broadcasting Group 2013-2015 At least three consecutive years above 70% Discount % Subject to negotiation but not more than 20% The two types of special discount are alternative. In case the Advertiser fits the criteria for both discounts, the one chosen by him is applied. 12% The two types of preference discount are alternative. In case the Advertiser fits the criteria for both discounts, the one chosen by him is applied. In order to avoid any doubt in the negotiations of the preference discounts based on share over 75% or net investment over 2,000,001 BGN (without VAT), NBG applies equal conditions to similar volumes. Discount for an annual agreement signed by 31 January 2015 NBG provides an additional 10% discount for the advertisers who sign an annual agreement by 10 January 2015, keeping the volume and share of the advertising budget of the previous year. For advertisers who increase their volume and/or share by at least 10% and sign an agreement with NBG by 31 January 2015, the discount will be 8%. If the parameters from 2014 remain unchanged and the agreement is signed by 31 January 2015, the discount will be 5%. Package discounts - Standard package discount NBG offers a package discount according to certain planning criteria, including the day part split at specific investment levels. Preference discount The preference discount is offered to advertisers according to: Share in PT Up to 300 000 Up to 600 000 Up to 1 000 000 Up to 1 500 000 40% 7% 8% 9% 10% 50% 6% 7% 8% 9% 60% 70% 5% 2% 5% 2% 5% 3% 5% 3% the committed share of budget invested in NBG as follows: Share in NBG 2015 At least 50% At least 60% At least 70% Above 75% Discount % 8% 9% 10% Subject to negotiation but not more than 12%. or the net budget investment in NBG’s channels as follows: Net investment 1 Jan-31 Dec 2015 /BGN/ 300 000 – 400 000 400 001– 600 000 600 001 – 1 000 000 1 000 001 – 2 000 000 Above 2 000 001 Discount % 4% 6% 8% 10% Subject to negotiation but not more than Nova Broadcasting Group Rate Card Net Investment 1 January – 31 December 2015 /BGN/ over 1 500 001 Subject to negotiati on but not more than 10%. 6% 4% - Run by Station (RBS) RBS packages with guaranteed audience for Nova, Diema, Kino Nova, Diema Family, Discovery, TLC, Disney, Fox, National Geographic, Fox Crime, Fox Life and AXN are based on the standard annual cost per point with up to 5% discount. - Additional package discount NBG offers a 10% package discount additionally to the standard one, if the Advertiser chooses to purchase a package of all offered channels without guaranteed audience delivery. - Combined package discount for advertising on TV and in Internet NBG provides the following alternative options for receiving additional discounts for combined advertising in the TV channels offered by NBG and the Group’s websites: - Advertisers who guarantee at least 30% increase and fulfillment of the net investment for digital display* in the Group’s websites are granted 2% discount for TV advertising. The discount is valid for advertisers with 20 000 BGN minimum net investment in the Group’s websites in 2014. *The term “digital display” includes all advertising forms in the internet platform, except for the Video Ad Pack (iTRPs) model. - Advertisers who guarantee that minimum 10% over their annual net budget for TV in NBG will be invested in the Group’s websites are granted 5% additional discount for TV advertising. The budget is distributed as follows: 70% in digital display and 30% in iTRP/Video Ad Pack/. The above mentioned two options for discounts are alternative and valid for advertisers whose TV and internet investment for digital display is not decreased in 2015 compared to 2014. The Group’s websites can be found in Appendix 1 which is an inseparable part of NBG’s Rate Card for 2015. The discounts in the Rate Card are calculated as a sum total. The Total Discount indicated in the Business Agreement shall be applicable only to the Advertising. Applicable discounts for Sponsorship, Product placement, Paid reports and other Alternative formats shall be defined separately and explicitly. Alternative advertising forms NBG offers for the TV channels Nova, Diema, Kino Nova, Diema Family, Nova Sport, Discovery Channel, TLC, Disney, Cartoon Network, AXN and City TV the following Alternative Ad forms: Sponsored promo – promote a program and contains the logo of the sponsor. Spot “premium position” - Advertising spots integrated in the channel graphics that mark the beginning of the advertising break. Sponsorship credit – video clip up to 7 seconds, broadcasted before, in and after the program. Branded Ad Bumper - a branded five-second announcement opening or closing the commercial break. Branded Ad Bug - a bug that contains brand elements up to 7 seconds broadcasted in the program and can not be avoided. Sponsored bug/cut-in – broadcasted during the sponsored program and announced the sponsor, but does not contain commercial content. Advertising Form Price per 30”spot Maximum Length in Sec 100% 14” 50% 100% 140% 50% 50% 20” 10” 30” 7” 7” 2 х 7” sponsorship tags Sponsorship Promo 2 х 5” Break IDs Premium Spot Branded Cut-in Branded Bug NBG calculates alternative ad forms as described in the table above, depending on the current monthly rate card for Nova, Diema, Kino Nova, Diema Family, Disney, Discovery, TLC and AXN. NBG does not guarantee rating points for alternative ad forms. Agency discount All agencies who purchase alternative advertising forms from NBG receive a 5% discount from the Rate Card. Volume discount NBG offers a volume discount based on the Advertiser’s net investment in alternative forms (without VAT) for each separate campaign as follows: Nova Broadcasting Group Rate Card Net Investment 1 Jan-31 Dec 2015 Volume Discount Up to 30,000 BGN 30,000-50,000 BGN 50,001 - 100,000 BGN Above 100,001 BGN 30% 35% 40% 48% Combined package discount - - NBG offers 5%, if the campaign is aired not only in Nova TV, but also in at least one of the channels Diema, Kino Nova, Diema Family, Nova Sport, Disney, Discovery, TLC and AXN. NBG offers 10% discount , if the campaign is aired in any of the following channels: Diema, Kino Nova, Diema Family, Nova Sport, Disney, Discovery, TLC and AXN. The two combined package discounts are alternative. Deadlines for placing orders and advertising materials: Day Monday Tuesday Wednesday Thursday Friday Till 11:00h 11:00h 11:00h 11:00h 11:00h Campaign Start Date Wednesday Thursday Friday and Saturday Sunday and Monday Tuesday Additional surcharges and fees 20% surcharge is 1. Two commercials in applied to the second the same break commercial 2. Co-advertising Up to 40% surcharge (additional brands) 3. Fixed first or last position in a commercial 25% surcharge break 4. Fixed first and last 30% surcharge for both position in a commercial spots break 5. Fixed advertising 15% surcharge break 6. Fixed advertising break and first/last 40% surcharge position 7. Cancellation of booked 100% of their net value spots for closed days is to be paid 30% surcharge for all 8. Booking for closed spots planned in closed days (if possible) days 9. Delay in delivering the Fixed surcharge of 500 advertising materials BGN excl. VAT 10. Incorrect spot length Fixed surcharge of 500 for closed days* BGN excl. VAT *Every deviation from the spot length indicated in the media plan is considered an incorrect one. Nova Broadcasting Group Rate Card All advertising investments under a contract with NBG are without VAT. NBG’s Rate card is approved for publishing on 12 December 2014 and amended on 20th of January 2015 and is subject to change within 20 days notice. Appendix No. 1 to Rate Card Effective as of 1st January 2015 The websites that are part of Nova Broadcasting Group’s portfolio to the issue date of the Rate card for 2015 are the following: abv.bg; vbox7.com; vesti.bg; sinoptik.bg; gbg.bg; dariknews.bg; edna.bg; novatv.bg; gong.bg; play.novatv.bg; lex.bg; novanews.bg; pariteni.bg; carmarket.bg; vgames.bg; sravni.bg; album.bg; imoti.info; izgodnioferti.bg; diema.bg; darikfinance.bg; vmusic.bg; sport.novatv.bg; vcards.bg; m.vbox7.com; m.abv.bg; m.sinoptik.bg; m.vesti.bg; m.edna.bg; m.gong.bg; m.dariknews.bg; diema.bg; Vbox7.com App; Sinoptik.bg App; Play.novatv.bg App. Partner websites: Grabo.bg; Bonapeti.bg; Eva.bg Sites in which NBG offers the Video Ad Pack model: Video banner: abv.bg; vbox7.com; vesti.bg; sinoptik.bg; gbg.bg; dariknews.bg; edna.bg; novatv.bg; gong.bg; lex.bg; novanews.bg; pariteni.bg; carmarket.bg; vgames.bg; sravni.bg; album.bg; imoti.info; izgodnioferti.bg; diema.bg; darikfinance.bg; vmusic.bg; sport.novatv.bg; vcards.bg; Pre rolls: Vbox7.com, m.vbox7.com, Vesti.bg, Novanews.bg, Novatv.bg, Dariknews.bg, Gong.bg, Sinoptik.bg Nova Broadcasting Group preserves the right to change the list of the websites by issuing a 10-day prenotice, published on the Group’s corporate website. Nova Broadcasting Group Rate Card
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