6. ?
Who won the public procurements
for state advertising budgets
7. The biggest winners of the public procurements
spent the public money allocated for state
advertising mainly within this one business circle
A planned network of people and companies in the
government, state administration and private sector
linked to mainly one business circle
State authorities benefited the biggest winners
Laws and administrative tools for ruining and
influencing the independent or oppositional media
companies
The government-allied right wing media’s financial
indicators increased abnormally while the entire
media market went into decline
FINDINGS
8. The planned system’s alpha
and omega is the prime
minister’s old friend
businessman Lajos Simicska
and his circle.
Their people sat in the state
administration, authorities
and public companies.
These state companies gave
their advertising budget to
agencies mostly also linked
to Lajos Simicska.
These agencies spent the
money in media companies
owned by Lajos Simicska and
his circle through holdings
and trustees.
NETWORK
9. PUBLIC
PROCUREMENT
6 out the 10 biggest winners has proven links to
Lajos Simicska or the government party Fidesz
11. 2006-2010
(the biggest shares)
daily newspapers: Axel Springer county
dailies (7 papers) 18,37%, Népszabadság
(left wing) 14,54%
weekly political papers: Szabad Föld (left
wing) 26,81%
televisions: Rtl klub 33,48%
radio stations: Sláger 28,56%
outdoor media: Epamedia 33,36%
2010-2014
(the biggest shares)
daily newspapers: Metropol 42,05%,
Magyar Nemzet 21,06%
weekly political papers: Heti Válasz
67,92%
televisions: TV2 (allied) 51,33%
radio stations: Class Fm 57,56%
outdoor media: Publimont 67,02%
SPENDING
THE PUBLIC ADVERTISING
MONEY
12. daily newspapers: 67%
weekly politicals: 68%
radio stations: 67% (without Lánchíd Rádió)
televisions: 66% (without Hír TV and Echo TV)
outdoor: 79% (without Mahir Cityposter)
STATE
FUNDING
THE RIGHT WING MEDIA
13. The distribution of state advertising
rarely based on market data and didn’t
fit with market shares and positions.
vs.
MARKET
14. revenues: 2,5x
profits: 10x
as a proportion of revenues:
Publimont 39%, Class FM 35%, Hung-Ister 28%,
Euroawk 27%, Magyar Nemzet 23%
industry standard: 10-15%
Hungarian average (2013): 1-2%
THE
FINANCIAL
OUTCOMES
OF THE
MEDIA EMPIRE
15. the biggest public success of the Kreatív’s history
articles on the finest Hungarian news sites (Index, Origo, Hvg, 444,
Mandiner)
television and radio reporting (Atv, Hír24, Klubrádió)
public debates
conference and university presentations (ELTE, Médiapiac, Mérték
Fesztivál)
100.000 online engagement and 2500+ Facebook interaction (by url)
500 prints
big ups and high fives from collegues and industry personalities
nobody sued us
RESULTS