Czech Republic
Market overview
Inhabitants 10000000
Marketing communication investments 109000000000 CZK (EUR 4,36 billions)
Advertising in media 51000000000 CZK (EUR 2,04 billions)
Non-media advertising 58000 000000 CZK (EUR 2,32 billions)
TOP clients CZK
Unilever 3,990,000,000
P&G 3,270,000,000
Lidl 3,177,000,000
Alza 2,833,000,000
L’Oreal 2,253,000,000
Sazka 2,381,000,000
Henkel 2,334,000,000
Tesco 1,790,000,000
Penny 1,126,000,000
O2 1,124,000,000
Top Sectors
Wide range shops and chains with food prevailing 4,000,000,000
Wide range with electronics prevailing 3,160,000,000
Motor vehicles 2,083,000,000
Loans, business loans 2,500,000,000
Wide range 1,500,000,000
Telecom 1,309,000,000
DIY 1,100,000,000
Furniture 1,250,000,000
Farmers 938,000,000
Beer 850,000,000
Several independent agencies have established offices abroad. One of
the biggest groups, Publicis One, is undergoing restructuring aimed at
gaining the ability to integrate all functions, in particular ones based on
data analysis and use. Several clients have entrusted their European or
global budgets to Czech agencies. There is an overall boom. However,
prices for services are growing slower than in other sectors of
economy. The boom has also caused a chronic shortage of labour in
all fields including communication. Labour cost is growing by 20%
year-on-year.
The strongest communication groupsare the Czech offices of internationalcompanies:
McCann,Young&Rubicam, Ogilvy, Publicis One.
Most network agencies and many independent Czech entities operate onthe market, though. In recent years,affiliates of certain Slovak agencieshave established themselves on themarket too. The vast majority of largeand medium-sized players operate inPrague. This is also wheremost clientsreside or have their office centres.
AKA
Communication Agencies Association was set up in 1992. AKA represents 70 – 80% of the advertising market value today. AKA includes full range, digital, activation agencies. Media agencies are associated in ASMEA while ASMEA has a special AKA member status.
Digital
Digital agencies continue to be the most dynamicsector of the industry.Some have transcended therole of digital shops and are establishingthemselves as full service agencies able to serveclients in the digital era.
Education
Education in the field is offered by the Faculty of Marketing in Zlín, in part
by certain curricula at the University of Economics in Prague and also at
other technology and economy universities. The University of Creative
Communication Prague is a new arrival. On the secondary level there
are specialised schools in Prague and North Moravia. Graduates in art
subjects often choose the advertising industry, in particular in Prague,
Brno, Ostrava and Ústí nad Labem.
Regulation
The industry is regulated primarily by the Advertising Act and
media legislation. EU directives are gradually being implemented in
the local legislation as part of European law harmonisation.
Tobacco, alcohol, pharmacy and weapons are regulated
industries. The supreme self-regulatory body in the Czech
Republic is the Czech Advertising Standards Council (RPR) with
recommendation power.
Competitions
Creativity and efficiency competitions offer insights into the state of the
industry. This year marks the 20th anniversary of the national round of
the EFFIE Awards. ADC is the Czech national creativity award. In
addition, the PIAF international advertising festival has operated for
eights along with many specialised competitions: Czech IMC Awards,
Flema, Hvězda 3D reklamy (3D Ad Star) etc.