Transparency International Georgia studied the financial declarations of the broadcasters submitted to Georgian National Communication Commission (GNCC). We conducted dozens of interviews with senior representatives of television, radio and online media outlets, advertising agencies, audience measurement agencies, the GNCC and industry specialists. We have also studied secondary sources, such as the reports of other local and international organizations.

Key Findings:

• In 2017, the total revenues of television companies increased by one third, GEL 0.6 million, making up a total of Georgian Lari (GEL) 97.5 million;
• Yet, considering the value against United States Dollar (USD), the total revenues of television companies saw a decline of USD 2.3 million. USD figures are indicative, as in recent years, broadcasters, advertising agencies and especially large clients have been drawing up their advertising budgets in USD;
• Television advertising revenues – including ads and sponsorships – came to GEL 69.2 million, which is about GEL 14.1 million (16.9 per cent) less compared to 2016;
• Regional TV companies raised a total revenue of GEL 2.8 million, which is GEL 0.6 million less compared to the previous year;
• Advertising revenues of regional broadcasters dropped by GEL 0.4 million compared to 2016 and amounted up to GEL 1.7 million;
• In the pre-election period, the television companies received an income of GEL 6 million, 58 per cent of which was disbursed to TV Imedi Holding, and 16 per cent to Rustavi 2;
• The ruling Georgian Dream party primarily advertised on TV Imedi, while the United National Movement advertisements were aired by Rustavi 2 and the Patriots Alliance advertisements were run by Obiektivi;
• The outdoor advertising market in Tbilisi is dominated by two companies – Outdoor.ge and Smod Advertising – who share a director. Revenues from outdoor advertising have not fluctuated since the previous year and are reported at a stable GEL 4.8 million, approximately;
• The online advertising market has seen the most growth in recent years but, in speaking to Transparency International Georgia, online media outlets have reported declining revenues. Online advertising revenues are hypothesized to be directed to non-Georgian platforms;
• The radio advertising market amounted to GEL 8.7 million, showing a 14-per cent drop compared to the previous year.