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Prof. Tadeusz Kowalski, University of
Warsaw
Advertising expenses' analysis of state-
owned companies (SOC) in the years 2015-
2020.
Annex. Advertising expenditure of ministries and
central offices in 2020.
(based on Kantar Media monitoring)
Warsaw, February 2021
2"
"
1. Subject of analysis
The analysis covers the advertising expenses of 126 state-owned (or with a dominant
state share) companies from January to the end of December 2020, with only 72 companies
(SSP) recording advertising costs. The analysis covers 69 ministries and central offices (M/CO),
of which advertising costs were recorded in 35 cases. In both categories of entities, a wide
range of advertising expenses was noted, from PLN 1 thousand to PLN 234,895 thousand in
the case of SSP and from PLN 1 thousand to 112,044 thousand in the case of ministries and
offices
1
.
The analysis was based on the monitoring of expenditure in newspapers, magazines,
radio, TV, and outdoor (OOH) and cinema. Outside the scope of the analysis was spending on
Internet advertising. The data collected by Kantar Media included 3987 records and were
based on the net price lists' data without taking into account individually negotiated discounts.
Such a market analysis method is acceptable, as long as it does not involve the precise
calculation of specific amounts but the analysis of changes and trends in the market. Obtaining
actual data in case of large-scale research is not possible, at least due to the trade secrecy.
Therefore, in further analysis, it should be assumed that the amounts of advertising
expenditure are only approximate and, to some extent, result from the adopted research
method. A much better measure is to use relative values, for example, shares expressed in
percentage.
The Annex to the Regulation of the Council of Ministers of March 23rd, 2020,
containing the list of companies in which rights from the State Treasury shares are exercised
by the Prime Minister or other members of the Council of Ministers, government
plenipotentiaries, or state legal entities, including single-member SOCs, lists 145 companies
2
.
The Prime Minister directly supervises four companies, 94 SOC are under the Agency's
supervision for Industrial Development SA, and the remaining ones are under ministries'
control. The monitoring scope includes all large State Treasury companies (SOC) or in which
the State Treasury holds a large shareholding and generates significant revenues from their
activities.
1
1PLN=0,22 Euro, 1 PLN=0,26$
2
"https://sip.lex.pl/akty-prawne/dzu-dziennik-ustaw/wykaz-spolek-w-ktorych-prawa-
z-akcji-skarbu-panstwa-wykonuje-prezes-18973106"
3"
"
Kantar Media monitoring covered 32 daily press titles, 24 magazines, 133 radio stations
(including all radio networks, except for Radio Maryja), and 35 television channels (excluding
TV Trwam). The monitoring covered all media with mass reach expressed in readership,
listening and viewing figures, and significant advertising revenues. The data analyzed can be
considered representative of the media market in its respective segments.
2. State-owned companies on the advertising market
Between 2015 and 2020, SOC allocated more than PLN 5.4 billion (PLN 5,434 million) in the
advertising market. This amount does not include the government and central offices (M/CO),
which spent about PLN 383 million on advertising in 2020.
Pic.1 SOC ad expenses in total in 2015-2020
SOC advertising expenditure in 2020 decreased by 7% year-on-year. This decline was
slightly slower than the advertising market's total (the advertising market declined 9.3% by
the y/y measure, i.e., 2020/2019). The year 2020 was particular for many reasons, GDP
decreased (-2.8% according to preliminary estimates), the SARS-COVID19 pandemic shut
down many areas of the economy and social life, but at the same time, it was the year of the
presidential election. A significant part of economic life entities withdrew from advertising or
reduced spending on it. Simultaneously, it should be noted that an inevitable part of SOC fled
4"
"
from the presence on the advertising market (more than 40% of the group of monitored SOC
did not spend money for this purpose).
Pic. 2 Dynamics of the change in the advertising market in 2015-2019
Comparing dynamics of changes in advertising expenditure for the whole market and
SOC indicates that this group also followed trends similar to the market. However, it remains
an open question whether the entire market benefited from additional resources or whether
they were concentrated mostly in relatively few titles and programs—more on this in the
following part of the Report.
Tab.1 Share of SOC expenses in the advertising market 2019 (%)
2019****
2020
2020/2019 change
(%)
Market in total
SOC share in ad market:
100
100
Newspapers
7,5
9,2
123
Magazines
2,9
14,4
497
Outdoor/indoor
2,9
-
Radio
3,5
3,5
1
Television
2,9
3,5
117
Cinema
2,4
-
SOC share in the market
3,4
4,2
124
**** https://www.wirtualnemedia.pl/artykul/reklama-2019-telewizja-i-kina-z-najwyzszym-wzrostem-aflofarm-
liderem-wydatkow-biedronka-i-media-expert-mocno-w-gore-top10
5"
"
Due to changes in the methodology for estimating advertising expenditures from 2015
to 2018, the SOC advertising market share based on Kantar Media estimates for 2019 and
2020 is presented above.
In price list terms, the share of SOC spending in the total advertising market in 2020
amounted to 4.2% and increased by 24% (compared to 2019). Print media, which were
affected the hardest by the crisis, became the particular SOC advertising expansion object.
The reduced mobility as a result of the pandemic and the increasing difficulty of selling, as a
result, the weakening of economic activity and the reduction of marketing expenditure, have
resulted in an apparent crisis for these media
3
. Many advertisers shifted their budgets to the
Internet, which further deepened the crisis of analog (print) media
4
. In such circumstances
SOC, more slowly than other players or following other criteria, considerably increased their
advertising presence in the press. In 2020 nearly every tenth PLN of advertising in the daily
press came from SOC, and in magazines, every seventh PLN was spent by SOC. The radio share
remained at the same level, the importance of SOC advertising expenditure in TV grew, the
market share increased (+21pp, to 3.5%), but it is still marginal.
Pic.3 SOC advertising spending 2015-2019 by media type.
3
"https://www.wirtualnemedia.pl/artykul/wyniki-sprzedazy-dziennikow-grudzien-
2020-fakt-przeglad-sportowy;"https://www.wirtualnemedia.pl/artykul/polityka-
sprzedazowo-przed-gosciem-niedzielnym-newsweek-zyskal-20-proc-do-rzeczy-
stracilo-25-proc;""
4
"https://www.bankier.pl/wiadomosc/Publicis-prognozuje-spadek-rynku-reklamy-w-
Polsce-o-8-6-proc-w-20-8014535.html""
6"
"
The rate of change in SOC advertising expenditure in 2019-2020 was similar to overall market
trends,
5
with a significant exception for OOH.
Pic.4 Dynamics of change in advertising expenditure by media type in 2019-2020 (year-on-
year, %)
The gap between SOC expenditure structure and the advertising market as a whole is
most visible in OOH (46 percentage points - pp), magazines (28pp divergence), followed by
cinema advertising (20pp), newspapers (16pp), TV (16pp), and radio (11pp). The decline in
advertising spending was incredibly sharp in cinemas, which is understandable because
cinemas were closed for most year.
SOC spent money on advertising similarly to most advertisers regarding the type of
media.
Tab.2 SOC advertising expenditure in 2015-2020 by media type
(000 PLN)
2015
2016
2017
2018
2019
2020
2020/2019
( %)
Newspapers
76 661
66 582
67 307
92 359
108 074
92 925
86
Magazines
61 774
73 598
84 486
111 578
140 355
125 594
89
Radio
158 251
148 502
200 218
247 420
291 905
290 287
99
Television
343 775
300 357
305 471
456 674
593 284
591 695
96
OOH
30 915
26 510
24 226
29 450
50 387
54 198
108
Cinema
28 744
28 647
25 955
59 351
46 151
20 670
5
Total
700 120
644 196
706 571
996 832
1 230 156
1 175 369
94
5
"http://igrz.home.pl/2020%20RYNEK%20OOH.pdf;"https://www.rp.pl/Media-i-
internet/301119905-Gdy-kina-licza-na-reklamowe-odbicie-zyskuje-YouTube.html""
7"
"
To evaluate the changes, it is necessary to look at the structure of advertising
expenditures. Due to the lack of data on online advertising, the discussion and structure will
be limited to the previously mentioned media.
A clear trend until 2017 was less interest in advertising spending in daily newspapers
than spending in 2015. This trend was broken in 2018, with SOC spending over 1/3 more on
newspaper advertising than in the previous year and significantly more than in 2015 (over
20%). The upward trend was continued in 2019 (2018 and 2019 were election years - local and
parliamentary elections). The year 2020 was less successful for newspapers in this respect,
but their share in SOC advertising expenditure decreased relatively slightly (from 8.8% in 2019
to 8% in 2020). At the same time, it should be noted that this share was twice as high as for
the total advertising market, where advertising expenditure in daily newspapers represents
about 4%.
SOC interest in placing advertisements in magazines was maintained in 2020. Although
spending decreased, its share in the structure of SOC advertising spending remained almost
unchanged (in 2019, advertising in magazines accounted for 11.4% and in 2020 for 11%).
Again, it should be noted that the share of SOC advertising expenditure in magazines was more
than double that of the overall advertising market (just over 4%).
Radio represents just over a quarter (25%) of advertising spending. The share of SOC
spending on radio advertising is close to the whole market level (28%). It is worth noting that
advertising expenditure on radio, despite the crisis phenomena mentioned earlier, remained
practically at the same level.
Most of the funds were allocated to television which in 2020 accounted for over half
of SOC advertising costs (50.3%). The level of television advertising spending was practically
maintained, yet it should be noted that television advertising represents 62% of the
advertising market (excluding Internet), i.e., significantly more than concerning SOC.
In the 2015-2019 report, a preliminary hypothesis was formed about the political
election's positive impact on increased SOC activity in outdoor advertising spending. High
OOH spending by SOC occurred in 2015, followed by 2019 (up 71% y/y) and 2020 (up 8% y/y,
with an overall OOH market decline of 38%). The election, in 2020 presidential, apparently
favors SOC advertising spending on OOH.
8"
"
In 2020, the most significant losses were in cinema advertising, for the market -70%,
for SOC -50%. Cinema advertising accounts for nearly 2% of the SOC advertising expenditure,
and their share in the overall market is at 0.2%; therefore, here, one can also see some
specificity in the direction of advertising spending by SOC.
3. SOC in media financing
Previous analyses conducted in 2015 indicated a tendency for SOC to spend on
advertising, to a large extent regardless of the market position of individual media. A particular
preference was given to those media that, more or less obviously through their content,
supported the government's policies.
3.1 Newspapers
SOC plays a vital role in financing through advertising expenditure, the daily press. In the group
monitored in 2020, 9.2% of newspaper revenues came from SOC. Nine daily press titles
received from SOC more than every tenth PLN in advertising (more than 10% of advertising
revenues). Nevertheless, not all titles were real beneficiaries of SOC advertising expenditure.
The largest share of benefits went to "Gazeta Polska Codziennie" which received nearly 29%
of its revenues thanks to SOC advertising expenses in 2020, although this is less than in 2019
(then the share was 52.8%). This title also owes a lot to M/CO advertising spending (more on
this later in the Report).
Moreover, a significant share of advertising revenues from SOC was noted by "Super Express"
(20%), "Dziennik Gazeta Prawna" (16%, a year earlier it was 12%), "Nasz Dziennik" (14%), "Puls
Biznesu (14%), "Polska. Metropolia Warszawska" (13%). The share of advertising from SOC
was also high in the case of "Rzeczpospolita" (10%) and "Parkiet" (24%). Among daily press
titles, "Przegląd Sportowy" is also worth mentioning with its 23% share.
9"
"
Tab.3 SOC ad revenue share in newspapers in 2018-2019 (000 PLN)
T
Title
Revenues
2019
SOC
revenues
2019
SOC
share
2019
Revenues
2020
SOC
revenues
2020
SOC share
2020
DZIENNIK BAŁTYCKI
35 783
3 233
9%
28 006
2 575
9%
DZIENNIK GAZETA
PRAWNA
59 405
7 138
12%
67 385
11 081
16%
DZIENNIK ŁÓDZKI
31 443
2 868
9%
27 158
2 079
8%
DZIENNIK POLSKI
29 958
1 464
5%
29 957
1 493
5%
DZIENNIK WSCHODNI
LUBELSKI
8 570
252
3%
6 668
195
3%
DZIENNIK ZACHODNI
46 630
5 188
11%
40 300
3 601
9%
ECHO DNIA
27 754
1 981
7%
25 344
1 552
6%
EXPRESS BYDGOSKI
30 952
1 063
3%
25 202
1 082
4%
EXPRESS
ILUSTROWANY
26 081
951
4%
21 596
1 161
5%
FAKT
109 367
4 860
4%
102 933
4 111
4%
GAZETA KRAKOWSKA
24 165
2 508
10%
19 459
1 618
8%
GAZETA LUBUSKA
19 033
864
5%
16 772
794
5%
GAZETA OLSZTYŃSKA
10 890
360
3%
8 297
306
4%
GAZETA POLSKA
CODZIENNIE
23 402
12 363
53%
29 108
8 330
29%
GAZETA POMORSKA
36 558
2 806
8%
32 724
2 052
6%
GAZETA WROCŁAWSKA
29 113
2 871
10%
24 364
1 396
6%
GAZETA WSPÓŁCZESNA
12 092
804
7%
17 973
935
5%
GAZETA WYBORCZA
200 147
537
0%
124 033
74
0%
GŁOS DZIENNIK
POMORZA
29 640
2 184
7%
26 335
1 781
7%
GŁOS WIELKOPOLSKI
39 112
3 561
9%
34 323
2 438
7%
KURIER LUBELSKI
16 197
1 361
8%
13 874
939
7%
KURIER SZCZECIŃSKI
7 367
85
1%
4 563
228
5%
NASZ DZIENNIK
9 762
1 317
13%
10 356
1 447
14%
NOWA TRYBUNA
OPOLSKA
20 366
1 765
9%
18 197
1 171
6%
NOWOŚCI
31 924
1 170
4%
26 719
1 156
4%
10"
"
PARKIET
3 747
422
11%
4 613
1 119
24%
POLSKA METROPOLIA
WARSZAWSKA
5 188
804
15%
4 191
541
13%
PRZEGLĄD SPORTOWY
29 034
3 469
12%
10 109
2 345
23%
PULS BIZNESU
31 082
4 247
14%
29 832
4 204
14%
RZECZPOSPOLITA
85 286
10 265
12%
89 287
9 239
10%
SUPER EXPRESS
113 173
21 910
19%
98 148
19 703
20%
Total
1 183 221
104 671
9%
1 017 826
90 746
9 %
● The difference between SOC expenditures on advertising in newspapers in Table 2 and Table 3 results from
the fact that the expenditure monitoring covered not all titles
● Data ordered alphabetically by title.
"Gazeta Wyborcza", one of the most prominent dailies, was almost "traditionally" beyond
the scope of SOC interest.
Of the 31 titles analyzed, as many as 24 (or more than three-quarters of the - 77%) reported
reduced advertising revenue in 2020, which is a sign of newspapers' undoubted crisis during
the pandemic.
SOC expenses were not always related to the circulation position of individual daily press
titles
6
.
6
"https://www.wirtualnemedia.pl/artykul/wyniki-sprzedazy-dziennikow-grudzien-
2020-fakt-przeglad-sportowy""
11"
"
Pic. 5 "Fakt" sales dynamics and SOC ad spending in 2015-2020
● Sales in 2015 – 307 000, 2019 – 215 000, 2020 – 171 000
● SOC spending in 2015 – 9 833 000; 2019 – 4 860 000; 2020 – 4 111 000 PLN
"Fakt", which was selling the highest number of printed copies in the daily press after a
spectacular increase in interest from SOC in 2016, did not rebuild its position in the following
years, and SOC advertising spending in this title in 2020 accounted for 42% of 2015 spending.
Perhaps the noticeably lower interest of SOC decision-makers in advertising in the most mass
daily was due, among other things, to the repeatedly announced "repolonization" and
"deconcentration" of the press and the propaganda accusations against German capital.
Undoubtedly, there was the visible influence of the presidential campaign and charges made
by candidate A. Duda against "Fakt" for disclosing a pardon for a pedophile convict
7
.
The second best-selling daily, "Super Express, " which belongs to the Time SA group's Polish
owners and pursues a typical offer for tabloid readers, was in a much better situation (see Pic.
6). The simple readership formula seems to fit well with the expectations of the ruling parties'
political base. Despite the circulation decline (-13pp), SOC advertising spends in this title,
although lower than in 2019, has practically returned to the level of 2018.
7
"https://businessinsider.com.pl/wiadomosci/swiatowe-media-o-slowach-andrzeja-
dudy-prezydent-oskarzyl-niemcy-o-mieszanie-sie-w/3vv7prr""
12"
"
Pic. 6 “Super Express” sales dynamics and SOC ad spending in 2015-2020
● Sales in 2015 – 144 000, 2019 – 113 000, 2020 – 93 000
● SOC spending in 2015 – 7 166 000, 2019 – 21 910 000, 2020 – 19 703 000 PLN
For many years, practically since 2015, SOC has consistently avoided "Gazeta Wyborcza"
in their advertising plans, and fact regardless of its market position, which is much better than
it would appear from the sales figures of printed editions. In 2020, the number of digital
subscribers of the newspaper reached over 240 thousand, so it is a mass channel to reach a
wide circle of readers
8
Rys. 7 “Gazeta Wyborcza” sales dynamics and SOC ad spending in 2015-2020
8
"https://wyborcza.pl/7,156282,26359696,wyborcza-na-10-miejscu-w-europie-w-
liczbie-prenumeratorow.html""
13"
"
● Sales in 2015 – 158 000, 2019 – 86 000, 2020 - 65 000
● SOC spending in 2015 – 14 963, 2019 – 537 000; 2020 – 124 000 PLN
"Rzeczpospolita", which in 2015-2018 did not enjoy particular interest from SOC
advertisers, quite unexpectedly rebuilt its position in 2019, when the level of spending
exceeded the 2015 baseline. Perhaps the parliamentary and European elections and the
accompanying increase in interest in economic issues contributed to increased SOC
advertising activity in this title. In 2020, although the level of spending decreased, in total, 10%
of "Rzeczpospolita" advertising revenue came from SOC.
Pic. 8 “Rzeczpospolita” sales dynamics and SOC ad spending in 2015-2020
● Sales in 2015 - 56 000, 2019 – 42 000, 2020 – 41 000
● SOC spending in 2015 - 9 630 000, 2019 - 10 265 000, 2020 – 9 239 000 PLN
However, the most significant benefits were enjoyed by the niche daily "Gazeta Polska
Codziennie", which has an unquestionably pro-government profile.
14"
"
Pic. 9 “Gazeta Polska Codziennie” sales dynamics and SOC ad spending in 2015-2020
● Sales in 2015 - 19 000, 2019 – 13 000, 2020 – 11 000
● SOC spending in 2015 – 271 000, 2019 – 12 363 000; 2020 – 8 330 000 PLN
In the case of this title, it is essential to note that although the level of SOC advertising
spending in 2020 has decreased, it is still more than 30 times higher than in 2015. Moreover,
this title was fueled by M/CO funds (as discussed later in the Report). It is not particularly
relevant that the circulation sold is more than 40% lower than the starting point. This has not
been an obstacle for SOC and the offices to place advertisements.
Tab.4 National dailies’ sales and ad revenues in 2020 roku
Title
Printed copies‘ sales
(000 PLN)
Ad revenues in total (000
PLN)
Ad revenues from SOC
(000 PLN)
Fakt
171
102 933
4 111
Super Express
93
98 149
19 703
Gazeta Wyborcza
65
124 032
74
Rzeczpospolita
41
89 288
9 239
Dziennik Gazeta Prawna
31
67 385
11 081
Gazeta Polska Codziennie
11
29 108
8 330
Puls Biznesu
11
29 832
4 204
Table 4 compares the largest national newspapers' market position with their revenues
from the market and SOC for a preliminary analysis of SOC advertising spending effectiveness.
15"
"
The comparison aimed to check if, according to the general rule of effectiveness, there is a
relation between circulation and advertising and its strength. Generally speaking, it may
assume that an effective action consists of directing advertising spend to places where the
audience is most interested, directly related to circulation.
The study was performed using the Pearson correlation coefficient. This coefficient
takes values in the range (-1 to +1). It indicates the strength and direction of the linear
relationship between two variables: the independent variable: the sold circulation and the
dependent variables: total (market) advertising revenues and advertising revenues from SOC.
The value of the Pearson coefficient for sold circulation and market revenue was P1 = 0.679,
which indicates a positive relationship between circulation and advertising revenue and thus
allows us to conclude that the advertising market as a whole operates relatively efficiently. In
the case of SOC, the value of P2 = - 0.013 indicates the opposite trend, i.e., increasing
expenditure in places where sales are lower, which suggests evident inefficiency of this
expenditure.
SOC are driven by reasons other than substantive in their decisions about the direction
of advertising expenditures in dailies.
"Gazeta Polska Codziennie", as a particular beneficiary of SOC advertising expenses, is
a pro-government propaganda tool, organizer of spectacular Man of the Year Awards, which
is always given the leading politician of the ruling camp. In 2020 the award went to Jaroslaw
Kaczynski, and in the justification, one can read, among others:
"...This is an exceptional award, given by an environment of people who do not look at
future profits. Club members are patriots who identify themselves with Poland's good, and
therefore this choice is significant. There are always long discussions about who to choose
because everyone has only one vote. We choose people who have done something for Poland,
who fight for the good of our country and also for the good of our clubs...”
9
.
The general conclusion drawn from an analysis of the financial flows associated with
advertising in the daily press is that they are primarily driven by political propaganda rather
than economic interest and the need for economically efficient operations.
9
"https://dorzeczy.pl/kraj/172091/jaroslaw-kaczynski-zostal-czlowiekiem-roku-
2020.html""
16"
"
Among dailies, the highest amounts of SOC funds were received by "Super Express",
"Dziennik Gazeta Prawna", "Rzeczpospolita", "Gazeta Polska Codziennie". In "Super Express"
the biggest SOC advertisers (spending over PLN 1 million) were: Totalizator Sportowy (PLN 3.6
million), Orlen (PLN 3.6 million), PKO BP (PLN 1.7 million), KGHM Polska Miedź (PLN 1.4
million), and PGNiG (PLN 1.2 million). The highest spending among SOC in "Dziennik Gazeta
Prawna" was made by Orlen (3.9 million), PKP PKL (1.8 million), Pekao (1.3 million), and PKP
(1 million). In the analyzed group, "Rzeczpospolita" recorded a million expenses of such
companies as Orlen (2.2 million) and Lotos (1.5 million). "Gazeta Polska Codziennie" was
mostly supported by companies such as Orlen (1.9 million), PKO BP (1.4 million), Lotos (1.3
million), and Totalizator Sportowy (1.3 million). These revenues do not include M/CO
expenses.
3.2 Magazines
SOC spent just over 125 million on magazine advertising, which is approx. 11% less
than in 2019. Since the magazine advertising market collapse was much more profound (-
38%), the share of SOC in financing this form of media product increased significantly to 14.4%,
i.e., almost five times.
However, the general picture of SOC share in magazines' advertising should not
overshadow the fact that also, in this case, similar phenomena occur as in the case of the daily
press. For some titles, advertising revenues from SOC are almost of primary importance, to
some extent regardless of their market position.
The data collected by Kantar Media covered 24 magazine titles, including practically all
with significant circulations.
Tab. 5 SOC ad spending in magazines in 2015-2020 (000 PLN)*
Title
2019
2020
2020/2019
(w %)
Total 2015-2020
Owner
SIECI
30 551
28 012
92
116 064
Fratria
DO RZECZY
14 083
13 755
98
61 463
Orle Pióro
TELE TYDZIEŃ
13 383
13 237
99
56 708
Bauer
GAZETA POLSKA
16 562
12 834
77
46 005
Niezależne Wydawnictwo Polskie
17"
"
VIVA
6 601
7 771
118
15 614
Edipresse
WPROST
10 516
5 653
54
51 352
PMPG Polskie Media
TO I OWO
4 421
3 654
83
10 860
Bauer
FORBES
1 053
2 591
246
1 053
Ringier Axel Springer Polska
GAZETA BANKOWA
2 773
2 337
84
6 007
Fratria
PARTY
1 846
2 199
119
4 781
Edipresse
PORADNIK DOMOWY
2 634
1 868
71
7 466
Bauer
PRZYJACIÓŁKA
2 180
1 710
78
8 315
Bauer
FLESZ
1 269
1 690
133
1269
Edipresse (do 20 XII 2020)
PANI DOMU
1 571
1 006
64
6 389
Bauer
* data ordered by SOC advertising expenditure above 1 million in 2020
In total, 15 titles (including "Przegląd Sportowy") out of 24 analyzed, that is about 63%,
obtained SOC advertising revenues at the level exceeding PLN 1 million. Three titles,
specifically "Sieci", "Do Rzeczy" and "Gazeta Polska" concentrated in total nearly 44% of all
SOC spending in magazines. Between 2015 and 2020, SOC spent PLN 223 million in price list
values in the mentioned titles. The biggest beneficiary was "Sieci", which was hardly affected
by the crisis (-8% compared to the previous year), while the level of SOC expenses in the six-
year perspective 2015-2020 was significant - over PLN 116 million. The weekly "Do Rzeczy"
was even less affected by the crisis (-2%), and the publisher gained over PLN 61 million from
SOC advertising over the entire analyzed period. "Gazeta Polska" significantly decreased its
revenues (-23%). SOC expenses in 2015-2020 amount to over PLN 46 million. In previous years,
significant SOC funds also went to the weekly "Wprost", which is no longer published in print
(last issue March 30th, 2020). In 2020, SOC advertising expenditure in this title was 46% lower
than in 2019, but over the six years, the weekly sold over PLN 51 million worth of advertising
in list price terms. Revenue data does not include M/CO spending (discussed later in the
Report).
Titles of Bauer publishing house were also interesting for SOC, as many as five titles
sold advertisements in amounts exceeding 1 million, and these were: "Tele Tydzień" (over 13
million), "To i Owo" (3.6 million), "Poradnik Domowy" (1.8 million), "Przyjaciółka" (1.7 million)
and "Pani Domu" (1 million). These are titles with high circulation and sales, not involved in
political life the three titles owned by Edipresse - "Viva" (7.7 million), "Party" (2.2 million) and
"Flesz" (1.7 million).
18"
"
As far as big titles are concerned, SOC did not allocate any funds for advertising in
"Polityka", "Newsweek", and "Tygodnik Powszechny", i.e., in titles critical towards the
governments of the so-called United Right.
Table 6. summarizes the total magazine advertising revenues included in the
monitoring and those from SOC in 2020 (data sorted by revenue amount). For the vast
majority of magazines, gains from SOC are marginal, but there are a few exceptions. Apart
from "Piłka Nożna", which benefits from revenues generated by PKO BP (81% share), most of
the titles are only slightly dependent on SOC (from 0 to 8%). On this background, the following
titles stand out: "Gazeta Polska" with its revenues from SOC at the level of 43%, "Sieci" (31%),
"Do Rzeczy" (25%), and "Wprost" (26%). The data does not include M/CO expenditures
(discussed further in the Report).
The table presents information about the average circulation sold in 2020. In decisions
about advertising expenditure, advertisers are generally driven by particular titles' market
position, which is determined by sales level.
Tab. 6 SOC ad spending in magazines in 2020 (000 PLN)*
Title
Revenues 2020
Revenues
from SOC
SOC share
(%)
Sold circulation
2020
TELE TYDZIEŃ
185 343 034
13 236 674
7%
564 808
ŻYCIE NA GORĄCO
102 193 633
899 500
1%
390 758
SIECI
65 329 000
20 012 000
31%
37 394
NEWSWEEK POLSKA
62 073 810
0
0%
77 744
DO RZECZY
55 840 600
13 755 000
25%
28 004
CHWILA DLA CIEBIE
54 641 875
514 800
1%
214 527
POLITYKA
44 981 500
0
0%
93 735
TWOJE IMPERIUM
44 771 497
517 000
1%
285 281
TO I OWO
43 144 913
3 653 955
8%
214 859
GAZETA POLSKA
29 977 220
12 833 660
43%
21 358
REWIA
25 073 400
52 000
0%
182 380
NA ŻYWO
22 650 500
177 000
1%
137 143
WPROST
21 544 700
5 653 000
26%
-
ŚWIAT & LUDZIE
21 405 750
51 000
0%
142 589
MOTOR
18 872 480
873 450
5%
61 450
ANGORA
14 883 346
56 000
0%
203 966
AUTO ŚWIAT
14 356 791
477 000
3%
38 601
19"
"
DOBRY TYDZIEŃ
12 918 650
0
0%
132 840
TYGODNIK POWSZECHNY
8 130 024
0
0%
26 771
PRZEGLĄD
3 308 942
18 000
1%
13 971
PROGRAM TV
2 220 445
0
0%
52 396
PIŁKA NOŻNA
1 247 276
1 014 332
81%
7961
Sales data based on https://www.pbc.pl/rynek-sprzedazy/ and
https://www.wirtualnemedia.pl/artykul/polityka-sprzedazowo-przed-gosciem-niedzielnym-newsweek-zyskal-
20-proc-do-rzeczy-stracilo-25-proc
This efficiency trend is reflected in the high correlation between advertising revenues
and circulation sales (Pearson correlation +0.79) for the whole market. Other criteria win in
the case of SOC, as the value of the index (+0.05) indicates no relationship between the level
of expenditure and the magazine's market position.
In the next part, similarly as in the case of the daily press, the connection between
sales of print editions of selected opinion weeklies and advertising expenses of SOC in the
period under study will be examined.
The weekly magazine "Newsweek Polska", which in 2015 had the highest sold
circulation in this group (121 thousand), was with no doubt carefully avoided by SOC when
deciding on the allocation of advertising funds. During the period under review, its SOC
revenues declined significantly to zero in 2020 compared to 2015.
Pic. 10 Sales dynamics of "Newsweek Polska" and SOC ad spending in 2015-2020
● Sales in 2015 – 121 000, 2019 – 73 000; 2020 – 77 700
● SOC spending in 2015 – 4 408 000, 2019 - 20 000, 2020 - 0 PLN
20"
"
Similar charts as for the weekly "Newsweek Polska" can be created for the weeklies
"Polityka" and for "Tygodnik Powszechny", in the latter case with the difference that the
circulation sold during the examined period increased from 19 000 in 2015 to almost 27 000
in 2020.
The situation is quite different in the case of "Sieci" weekly, which at the end of the
analyzed period sells less than half of what it did six years ago, but its advertising revenues
from SOC increased more than 17 times. The weekly awarded D. Obajtek of PKN Orlen with
the Man of Freedom 2020 award, with the title "What else will he get back for Poland?" on its
cover, referring to the controversial purchase of a large group of local dailies (vignettes of the
titles are in the background of the winners' silhouette). It is worth noting that PKN Orlen, next
to Lotos, is the biggest advertiser of "Sieci". High revenues from SOC, however, are not met
with the growing interest of readers. Significant dependence of "Sieci" on SOC advertising
expenses is a vital business foundation for the title.
Pic. 11 Sales dynamic of "Sieci" and SOC ad spending in 2015-2020
● Sales in 2015 – 76 000; 2019 – 39 000; 2020 – 37 400
● SOC spending in 2015 - 1 152 000; 2019 – 30 551 000; 2020 – 20 012 000 PLN
In 2015, the second right-wing title by sales was the weekly "Do Rzeczy". Despite a decline
in circulation, the weekly "Do Rzeczy" recorded a year-on-year increase in advertising
expenditure by SOC, although the speed of this change was significantly lower than in the case
of "Sieci". Also, in this case, the declining circulation had a small impact on SOC advertising
21"
"
expenses. As a result, the editorial office is heavily dependent on income from SOC (they
account for 25%), but the dependence is significantly lower than in the case of other pro-
government titles. A distinctive feature of "Do Rzeczy" is its Euroscepticism, expressed, for
example, in its November 2020 cover with the headline "One must say enough to the EU.
Polexit - we have the right to talk about it."
Pic. 12 Sales dynamics of "Do Rzeczy" and SOC ad spending in 2015-2020
● Sales in 2015 – 55 000, 2019 – 31 000, 2020 - 28 000
● SOC spending in 2015 – 1 829 000, 2019 – 14 083 000, 2020 – 13 755 000 PLN
More than 40% of "Gazeta Polska" weekly's advertising revenue comes from SOC. In 2020,
the publisher managed to stabilize print editions' sales results, while SOC expenses were
significantly lower than in 2019, yet more than 14 times higher than in 2015. "Gazeta Polska"
sells more or less 25% of its printed circulation, which is a relatively expensive business
practice (as it means that three-quarters of the circulation goes to waste). High revenues from
SOC are probably a financial "cushion", such a weekly competitive strategy.
The relationship with the authorities is expressed, among others, in the activities of
"Gazeta Polska" clubs organizing, among others, rallies in support of the authorities' actions
and the "Man of the Year" titles awarded by the editorial team. In 2015, 2019, and 2020 this
title was awarded to Jaroslaw Kaczynski, and in subsequent years 2016, 2017, 2018 to Prime
Minister Mateusz Morawiecki. For decision-makers at SOC, these are important indicators of
advertising expenditures' political effectiveness in a declining title.
22"
"
Pic. 14 "Gazeta Polska" sales dynamics and SOC ad spending in 2015-2020
● Sales in 2015 – 37 000, 2019 – 22 000, 2020 – 21 300
● SOC spending in 2015 – 91 000, 2019 - 16 562 000, 2020 – 12 833 000 PLN
The analysis shows that for SOC, factors other than economic efficiency are the basis for
allocating funds for advertising purposes in opinion magazines.
In the weekly "Sieci", out of the SOC group, the highest spending entities were Lotos (5.4
million), Orlen (4.8 million), Totalizator Sportowy (4.7 million), PZU (2.2 million), Polskie
Górnictwo Naftowe (2.4 million), and PKO BP (1.6 million). Only companies that spent more
than PLN 1 million were included in this ranking.
The "Do Rzeczy" weekly, in turn, is primarily supported by Orlen (2.9 million), Lotos (2.1
million), and PGNiG (2.1 million).
"Gazeta Polska" is supported in a special way by: Orlen (2.9 million), Totalizator Sportowy
(2.1 million), PKO BP (1.6 million) and PGNiG (1.5 million).
"Wprost" is especially favored by Orlen (1.7 million), despite the weekly discontinuation
in print.
When analyzing the group of the biggest advertisers in the magazines as mentioned
above, it is worth noting that they represent a limited spectrum of economic sectors, in
particular, the power and fuel sector (e.g., Orlen, Lotos, PGNiG), finance, and insurance (PKO
BP, PZU) and the lottery sector (Totalizator Sportowy, supervised by the Minister of Finance).
23"
"
3.3 Radio
SOC share of radio stations' advertising revenue is about 3.5% and is relatively stable.
Tab. 8 SOC spending in radio stations in 2020
Station
Listenership
Revenues in total
Revenues from
SOC
SOC revenue share (%)
(%)
(000 PLN)
(000 PLN)
RMF FM
29,2
2 681 354
105 765
3,94
Radio Zet
12,2
1 539 667
14 824
0,96
Eska
7,4
1 034 003
41 946
4,06
PR 1
5
268 539
26 512
9,87
Audytorium 17
4,5
118 912
12 559
10,56
RMF MAXXX
3,8
564 573
24 314
4,31
VOX
3,4
206 457
8 642
4,19
Złote Przeboje
3
614 084
804
0,13
TOK FM
2,6
198 901
0
-
PR 3
2,4
448 143
40 461
9,03
Radio PLUS
2,2
87
815
3 113
3,54
Radio WAWA
1,7
131 689
6 310
4,79
Meloradio
1,5
41
743
464
1,11
RMF Classic
1,4
115 350
9 608
8,33
Radio Pogoda
1,1
113 371
154
0,14
PR 24
0,6
17
348
2 424
13,97
Rock Radio
0,5
72
879
136
0,19
PR 2
0,4
1
175
37
3,15
● Radio programs were ordered by audience size, data for Q4 2020 (based on the research of Kantar Media,
KRRiT)
Radio seems to be a medium in which advertising expenditures are quite well
correlated with program share in listenership. The correlation between listenership and
advertising expenditure for the whole market is +0.95 and SSP +0.88, so it is quite strong
in total.
However, there is a clear preference for public radio stations (PR plus 17 regional radio
stations) to account for 28% of SOC's total radio advertising expenses. The group of public
radio stations has a 12.9% share in listenership. Much more popular RMF group programs,
24"
"
with 34.4% of listenership, together account for about 48% of SOC radio advertising
expenses. Eska is also preferred by SOC (7.4% of listenership and 14.5% of SOC radio
advertising spend). In turn, the radio stations owned by Agora group: TOK FM, Radio Złote
Przeboje, Rock Radio, and Radio Pogoda with a share of 7.2% in listenership attracted only
0.38% of SOC spending, while the audience gaining radio Tok FM did not acquire any
advertising contracts with SOC. The situation is similar for Radio Zet, which, despite its
high audience share (12.2%), attracts just over 5.1% of SOC advertising spending.
The most important clients of the radio stations with public status were SOC such as
Totalizator Sportowy (8.9 million in PR3 and 6.7 million in PR1), Orlen (8.1 million in PR1
and 7 million in PR3), PKO BP (5.7 million in PR3 and 1.1 million in PR1), Pekao (4 million
in PR3), Grupa Lotos (3.1 million in PR3 and 1.5 million in PR1), Tauron (2.7 million in PR3
and 1.5 million in PR1), PLL Lot (2.1 million in PR3), PKP Intercity (1.8 million in PR3), Polski
Fundusz Rozwoju (1.5 million in PR3 and 1 million in PR1), PZU (1.5 million in PR1), Energa
(1.3 million in PR1 and 1 million in PR3), PGNiG (1.2 million in PR3). The list takes into
account expenses exceeding PLN 1 million. Many SOC allocated considerable funds to
advertising in PR3, which listenership was decreasing quite rapidly in 2020 (to the level of
2.4% in the audience)
10
.
In the RMF group, the biggest advertisers were: Totalizator Sportowy (26.8 million and
2 million at RMF Classic), Orlen (23.4 million and 1.6 million at RMF Classic), TVP (12
million), Pekao (10.9 million and 1 million at RMF Classic), PKO BP (7.9 million), Tauron (6.1
million), Polski Fundusz Rozwoju (5.1 million), PLL Lot (4 million), Polska Grupa Górnicza
(3.1 million), Lotos Group (2 million), PKP Intercity (1.9 million), PZU (1.6 million).
An interesting case is Radio Zet, second in listenership (12.2%), which had only three
clients with spending above 1 million, the largest of which, Totalizator Sportowy, sharply
decreased its spending (from 26 million in 2019 to 7 million in 2020). TVP increased its
spending slightly, from 2.9 million in 2019 to 4.6 million in 2020. It is hard to know whether
Agora's share (40% ownership of Eurozet) was the reason for this, but the reduction in
spending is significant, mostly as the radio recorded growth in listenership. Polska Grupa
Górnicza spent PLN 1.4 million on Radio Zet.
10
"https://badaniaradiowe.pl/""
25"
"
SOC spending on radio advertising was similar to the market trends. Two significant
phenomena occurred: first, a preference for the public radio broadcaster, and second,
overspending (so-called above-audience) at the leader radio stations, i.e., the RMF group.
3.4 Television
SOC share of television advertising revenue is relatively small at 3.5% in 2020 but still
represents a 17pp increase on the previous year (2.9%).
TV advertising acquisition is usually carried out within a group of channels owned by a
single owner. Hence the TV market can often be treated as a hybrid oligopoly consisting of the
big three broadcasters and many minor players. From this point of view, groups can be
identified as Polsat, TVN, and TVP.
Over 90% (92.6%) of SOC television advertising expenditure was concentrated in three,
or preferably two, television groups. The largest beneficiary was the public status TVP, with
as much as 53% of the funds going to this broadcaster.
There was also a significant share of the Polsat group (including Polsat, Polsat News,
Superpolsat, TV4, TV6, Fokus TV, Eska TV, Polo TV), which together accounted for one-third of
the spending (33.2%).
SOC avoided the TVN group (including TVN, TVN24, TVN7, TVN Style, TVN Turbo, HGTV,
and TTV), which accounted for only 6.4% of TV advertising expenses. It seems rather
interesting that, for example, in TVN Turbo, a program dedicated to automotive, recorded no
ads for the largest advertisers - Orlen and Lotos, fuel and energy companies.
Tab. 9 SOC advertising spending in TV groups in 2020 (000 PLN)
Group
Advertising
revenues in total
Advertising
revenues from SOC
SOC share in the
revenue
Share in
viewership11
11
"
http://www.krrit.gov.pl/Data/Files/_public/Portals/0/kontrola/program/tv/kwartaln
e/rynek-telewizyjny-w-iv-kwartale-2020.pdf""
26"
"
(%)
TVP
3 951 736
313 736
8
27,9
Polsat
5 288 387
196 220
4
20,8
TVN
5 081 479
38 160
1
21,5
● TVN Group includes, among others: TVN, TVN24, TVN Fabuła, TVN Style, TVN Turbo, TTV, TVN7, HGTV
● Polsat Group includes, among others: Polsat, TV Polsat2, Polsat Cafe, Polsat News, TV4, TV6, EskaTV, Polo TV
The largest advertisers from the SOC group in TVP are: Totalizator Sportowy (76 million),
Orlen (51 million), Polfa Warszawa (28 million), Pekao and PKO BP (nearly 25 million each),
Lotos (23 million), Polski Fundusz Rozwoju (21 million), PGNiG (19 million) and Tauron (13
million).
TVP is immensely privileged by the state and the SOC, especially when it became a party-
state propaganda tool.
TVP's public revenues between 2015 and 2020 developed as follows:
2015 - 416 million from subscription fees
2016 - 376 million from subscriptions (2016/2015 is 90%)
2017 - 355 million from subscription + compensation of 266 million = 621 million (165%)
2018 - 385 million from subscription + 594 million compensation = 979 million (157%)
2019 - 331 million from subscription + 1,127 million compensation = 1,458 million (148%)
2020 - 331 million from subscription + 1.71 million compensation = 2041 million (490%)
12
Such dynamics of the growth of public funds for TVP has no market or economic
justification and to some extent reproduces the pattern of the print media close to the
authorities.
If one assumes that the net amounts (after discounts) are only about 45% of the list
price amounts
13
It means that TVP in 2020 had more than PLN 3.8 billion at its disposal. This is
the historically highest amount, more than three times the budget in 2015. Without
compensation, the institution would have at its disposal an amount of over 2 billion (2,109
million), enabling it to carry out its tasks at a funding level much higher than 2015 (the budget
at that time was about 1.1 billion)! The revenue does not include amounts from sponsorships,
retransmissions, rights sales, and other sources.
12
"https://www.wirtualnemedia.pl/artykul/tvp-pomoc-publiczna-ile-dostala-z-budzetu-
panstwa""
13
"The"level"of"TV"advertising"discounts"was"fixed"on"media"market"analytics"opinions,"
on"average""55%.""
27"
"
Advertising expenditure, similarly to print and radio media was analyzed by Pearson
correlation coefficient. The correlation between audience and level of advertising expenditure
for the whole market is negative and amounts to P= -0.95, which means that advertisers are
more eager to direct their advertising to private media than to TV with public status. On the
other hand, the correlation between viewership and SOC spending is positive at P= +0.77,
indicating a stronger relationship between SOC and the public status broadcaster, which has
the largest share of a viewership study group. The Pearson coefficient P= -0.72 for the
relationship between market and SOC expenditure is also negative (regardless of viewership).
3.5 Outdoor (OOH)
Advertising expenditure on Outdoor (OOH) in 2020, presented below, includes both
SOC and M/CO. PLN 59,526 thousand was spent on OOH, with SOC alone spending over 90%
of that amount, i.e., PLN 54,198 000. The outdoor advertising industry suffered a severe crisis
in 2020, with OOH spending declining by an average of about 38%, but at the same time, SOC
increased its spending by 8%. Lack of data makes it difficult to estimate their market share.
The outdoor advertising market consists of three primary segments:
⇒ Classic outdoor advertising - posters and, above all, large-format billboards
⇒ Transit - advertising in means of transport - trams, buses, trains, airplanes -
generally during the movement of potential customers
⇒ DOOH advertising - advertising in "indoor areas" such as shopping malls, large-
format stores, gas stations, airports, train stations, sports facilities, fitness
clubs, etc.
Tab. 11 SOC ad spending on OOH in 2020 (000 PLN, above 1M)
Company
SOC spending in 2020
(000 PLN)
SOC spending share (%)
28"
"
STROER
35 755
60,1
CITYBOARD MEDIA
8 471
14,2
CCP
6 264
10,5
Other disposers
3 501
5,9
AMS
1 766
3
Jet Line
1 563
2,6
Others
2 206
3,7
total
59 526
100
In the structure of the expenditure, it is worth mentioning a somewhat symbolic share
of AMS (3%), the market leader. This may result from the fact that the company belongs to
Agora.
The largest advertiser was Orlen (26.8 million), others spent much smaller amounts on
OOH, among them: Totalizator Sportowy (7.6 million), Pekao (6.3 million), PKP Intercity (3.1
million), the Ministry of Health (2.4 million), TVP (1.8 million), and Polskie Radio and the
Railway Transport Office (Urząd Transportu Kolejowego) with about 1.7 million each.
4. SOC ad spending
The analyzed group of SOC is highly diversified in terms of the level of advertising
expenditures. Among the monitored SOC, only four allocate more than 100 million annually
for media advertising. The top ten advertisers account for 86% of total SOC advertising
expenditure. Half of the top ten SOC increased their advertising spending, some of them very
spectacularly (like PGNiG!), whereas four of them significantly reduced their costs.
Tab. 13 Top 10 advertisers in 2020 among SOC
2019
2020
2020/2019
(%)
TOTALIZATOR SPORTOWY
345 659
234 895
-32
29"
"
PKN Orlen
188 554
228 913
+21
Polfa Warszawa
136 424
114 062
-16
Pekao
-
100 745
-
PKO BP
140 168
84 881
-39
GRUPA LOTOS
79 195
67 221
-15
TVP
49 131
62 596
+27
TAURON POLSKA ENERGIA
46 444
47 378
+2
POLSKI FUNDUSZ ROZWOJU
32 296
44 364
+37
PGNiG
10 720
38 906
+363
* ordered descending by expenditure level in 2020
Noticeable is a large increase in spending by Polski Fundusz Rozwoju (Polish
Development Fund), which has been entrusted with the distribution of funds to support the
economy in the wake of the pandemic crisis. Orlen and TVP were also responsible for the
growing expenditures.
ANNEX.
5. Advertising expenditure of ministries and central offices (M/CO)
30"
"
Expenditure data for Ministries and Central Offices (M/CO) were not available in
previous analyses from 2015-2019; therefore, they are presented separately to ensure
comparability of data.
The monitored M/CO group turned out to be a significant advertiser, purchasing media
advertisements for PLN 338 492 000 in price list values.
Tab.14 M/CO advertising expenditure
Entity
Amount of spending (000 PLN)
Ministry of Health
121 812
PM Chancellery (KPRM)
59 125
National Environmental Protection Fund (NFOŚ)
37 242
Ministry of Justice
24 697
Ministry of Finance
16 708
National Health Fund (NFZ)
15 640
Office of Rail Transport (UTK)
14 477
Ministry of Agriculture
10 867
Central Statistical Office (GUS)
9 952
National Bank of Poland (NBP)
9 771
Industrial Development Agency (ARP)
6 212
Institute of National Remembrance (IPN)
4 916
Ministry of Culture and National Heritage
4 839
Social Insurance Institution (ZUS)
2 903
Polish Academy of Sciences (PAN)
1 872
● Data ordered by the amount of spending
The high level of expenditures by the Ministry of Health seems understandable under the
conditions of the pandemic; after all, the dangerous virus affects all social groups regardless
of their views and attitudes. Like the expenses of the Chancellery of the Prime Minister, it is
probably related to the introduction of new instruments of economic intervention in a
situation of exclusion of many areas and industries. The Ministry of Justice turned out to be a
large advertiser, spending significantly more than, for example, the Ministry of Finance or the
National Health Fund.
31"
"
The structure of spending in the M/CO group was different from that of SOC, and in
particular, the traditional media of newspapers, radio, and television participated to a
similar extent in advertising activities (newspaper share 32%, radio 30% and television 29%,
while magazines 8%).
Advertising expenses in newspapers amounted to approx. PLN 107 million. All local and
national dailies (31 titles) benefited from these funds. National titles achieved the highest
revenue, including "Super Express" (PLN 12.4 million), "Dziennik Gazeta Prawna" (PLN 12.3
million), "Fakt" (PLN 12.3 million) and "Rzeczpospolita" (11.3 million), as well as "Gazeta
Polska Codziennie" (7.3 million), "Puls Biznesu" (3 million) and "Nasz Dziennik" (3 million).
There was even some money for "Gazeta Wyborcza" (0.6 million). Again the influence of
political proximity is visible, as "Gazeta Polska Codziennie" sold six times fewer print ad
copies than "Gazeta Wyborcza" but received 12 times more from M/CO group ad revenues.
By the way, if we add revenues from SOC and M/CO, the amount of public funding increases
to PLN 15.6 million, which makes their share in the advertising revenues of "Gazeta Polska
Codziennie" grow to 52.3%.
Advertising in magazines in the M/CO group amounted to PLN 29.9 million. Three titles
concentrated almost two-thirds (65%) of the M/CO advertising expenses. These were "Sieci"
(7.8 million), "Do Rzeczy" (7.8 million), and (7.8 million) and "Gazeta Polska" (3.8 million). If
to the SOC expenditures (see Table 5), the M/CO expenditures are added, the share of public
funds in their advertising revenues is 56% in the weekly "Gazeta Polska", 42% in the case of
"Sieci" and 39% in "Do Rzeczy".
M/CO bought an advertisement for PLN 1.2 million in "Polityka". SOC did not spend any
money on this weekly.
Radio advertising amounted to PLN 102.8 million, with the five broadcasters accounting
for nearly 92% of the total. The RMF group was the biggest beneficiary (PLN 36.6 million),
followed by PR with 17 regional radio stations (PLN 30.3 million). Much less was spent on
advertising in the Eska network (14.8 million) and the second-largest radio Zet (8.8 million).
M/CO also spent PLN 3.9 million on advertising in the Złote Przeboje network. The news and
publicist radio Tok FM aired M/CO ads worth PLN 1.1 million (SOC did not advertise on this
radio station).
M/CO advertising spending was most concentrated in the case of TV. Two broadcasters
accounted for 91.4% of the total spend is TVP (70.1 million, 72.8% share) and Polsat (18
32"
"
million, 18.6% share). M/CO practically did not advertise in the TVN group, with two
exceptions: the Ministry of Health and the Central Statistical Office (GUS). In total, these two
institutions spent approx. PLN 400 000.
Conclusions
1. SOC advertising expenditure is consistent across all market segments and carefully avoids
those media which are not pro-government. The data indicate that the anathema covers all
media owned by Agora and TVN group, including media with which Agora and TVN have
capital ties even if they are not owners (for example, significant reduction of advertising
expenditure in Radio Zet in which Agora owns 40% stake). SOC and M/CO avoid spending in
these media regardless of their market position. This situation indicates that this activity is, to
some extent, coordinated, although not necessarily formalized.
2. From the overall market point, SOC does not form a group of leading advertisers, with a share
of 4.2%, definitely giving way to private players. The advertising market is primarily a private
market, which strongly distinguishes it from, for example, the Hungarian market, where the
state and its agencies and institutions linked to the power structure has a significant market
share.
3. SOC favors state-owned media with public statuses, such as TVP and PR, which in effect is a
form of disguised state aid. According to the quoted data, the scale of state aid for media with
public status is very significant, and in the case of TVP, it approaches the amount of 5 billion
PLN if we take into account the years 2017-2020. Despite such tremendous support, this
broadcaster has not made progress in viewership, nor has it produced significant productions
with high cultural relevance. The same remarks can also be applied to PR, which lost more
than 7% of its audience share (about 2 million listeners less) between 2015 and 2020, despite
significant public funding.
4. Advertising expenditures in public status media are justified, including for market, commercial
and cultural reasons. Media with public status have numerous audiences with diverse socio-
demographic and cultural characteristics and are attractive targets for advertising. However,
there is no denying that SOC and M/CO expenditures in practice also provide financial support
for party-government propaganda.
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5. The structure of total SOC spending shows a weak correlation between the level of advertising
expenditure and the medium's market position. It is relatively best matched with the radio
and television market and least compared with magazines and daily press. Such a situation
indicates other than market criteria in the decision on the expenditure of funds.
6. Media that, through their content, unambiguously support politics of the ruling coalition, such
as "Sieci", "Do Rzeczy", "Gazeta Polska" and "Gazeta Polska Codziennie", as well as the weekly
"Wprost" are being rewarded with considerable expenditure from SOC and M/CO. These
expenditures represent a large share of advertising revenues of these titles. One may get the
impression that some of them exist thanks to advertising expenditure of SOC and M/CO.
7. Under the conditions of a pandemic, one might have expected that, given the extraordinary
circumstances, public authorities and state-dependent economic entities would be driven by
criteria of efficiency and... elementary justice in spending advertising funds. It did not happen
that way. The relationship between the level of spending and market position was not strong,
suggesting that decisions, to some extent, were made without merit from the perspective of
marketing efficiency.
8. Although it was not the primary focus of the analysis, it seems reasonable to form the
hypothesis that some SOC and M/CO's enormous expenditures served, however, implicitly,
managers' and politicians' branding purposes.
9. The advertising expenses of SOC are usually not in the public finance area as a significant part
of the companies are partially privatized and present on the capital market (Warsaw Stock
Exchange). Therefore, marketing and advertising expenses should be incurred in the interest
of shareholders, with the State Treasury being the majority shareholder. The factual
ineffectiveness of some of these expenditures is irrelevant because of, on the one hand, the
principles of nomenclature in filling managerial positions and, on the other hand, fulfilling the
expectations of political and state disposers.