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Digital Advertising Overview: Czech Republic (by MGID) (4)

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GENERAL INFORMATION

• The Czech Republic is a developed European country with steady GDP growth of 2,2% in 2019;
• The Czech Republic has the lowest unemployment rate in Europe. Salaries keep rising at 6,6% because of a shortage of the workforce in 2019;
• GDP per capita reached 23,344.20 US dollars in 2018;
• The official language is Czech. The biggest ethnic group is also Czech (64,3% of the population);
• Prague, Brno, Ostrava, Olomouc, and Pilsen are the biggest cities.

CONSUMER BEHAVIOR

Czech people are price-sensitive but at the same time, they value quality in products and services. Czech online consumers buy clothes, electronics, home and garden items, jewelry, watches, and cosmetics. Today, special prices are the strongest driver for purchasing a product or service. Besides, they prefer online shopping, because of convenience and home delivery.

However, according to statistics, only 13% of online consumers complete the purchase. Thus, ensure that your landings look convincing and credible. Make them simple, clear and do not overload with information. The best option is to show the product, describe a few main benefits, provide consumers with a special price and easy home delivery.

DEVICE USAGE (Percentage of the adult population)

65% of Czech use smartphones and the distribution of laptop and tablet usage is 76% and 29% respectively.

E-COMMERCE VALUE

• Revenue in the eCommerce is projected to reach to €2,368m in 2019.
• Revenue is expected to show an annual growth rate (CAGR 2019-2023) of 5.9%, resulting in a market volume of €2,984m by 2023.
• User penetration is 69.2% in 2019 and is expected to hit 70.6% by 2023.
• The average revenue per user (ARPU) currently amounts to €322.01.
• In the eCommerce market, the number of users is expected to amount to 7.5m by 2023.
• In 2017, 23.7% of users were 25-34 years old.

PAYMENT METHOD

Only 25% of the population has a credit card. On the whole, it is expected that 47% of total eCommerce purchases will be paid by Cash on delivery in 2019. Czech people still prefer paying by cash, but we observe an increasing trend towards credit cards.

BEST-PERFORMING VERTICALS

NUTRA

As I mentioned above, the median age is 41,7 years old. Thus there is an increasing growth potential on products and services for the older generation. Joint creams work especially well. On the whole, nutra is the dominant vertical on the market, Czech people are highly interested in weight-loss, antifungal products, and skincare.

E-COMMERCE

Further, fashion and beauty, travel, toys and hobbies, small home appliances and consumer electronics prove to be profitable.

CREATIVE’S TIP

• Beer for Czechs is a casual thing, so you can use it, for example, for the offers of dating or eventing with a title like "Beer tonight?" and it will not mean a meeting for beer, but simply a meeting, which is impossible without beer;
• The Czech Republic is in the top 6 of the safest and most contented countries. Czechs are satisfied with what they have. No one will begin to overwork and overload his schedule with excessive training courses. They are confident in the future. When advertising products or courses, it is not worth playing on the emotions of fear of being left with nothing, it is better to rely on trends;
• In addition to the above, the unemployment rate in the Czech Republic is one of the lowest in the world. People find jobs without a problem and can quit whenever they feel like in the search for new perspectives. You will not be able to put pressure on common European pain about “unloved work” and offer alternatives. The Czechs simply have no such problem;
• Young people start working in the service sector very early despite the level of family affluence. A poor student and the son of a millionaire can equally be working at McDonald's. Nobody is shy about this and we do not recommend to demonstrate such work in advertising as a negative experience;

• Czechs are in no hurry to have children, especially 35-year-old men. You should not offer them to find a wife with the help of a dating offer (to be replaced by a girlfriend, bae, partner), just as you shouldn’t sell family cars to them and put stress on the family in such offers as options and real estate.
• With all the dogs and cats mostly living on the streets, there is no such tendency to spend a lot of money on rare breeds.

• Young people tend to spend 5-7 years after school to think about their purpose in life, at this time working part-time jobs;
• Very fat, mostly meat kitchen. There is no healthy lifestyle trend. Few vegan and vegan trends, shops and restaurants;
• While walking, it’s normal to sit down on the floor or just sit where you want. You can use this insight when selecting photos of locales for offers of any vertical.

MGID TRAFFIC DISTRIBUTION

MGID traffic distribution is the following: desktop (52%), mobile (42%) and tablets (6%). Overall, MGID processes around 600 000 clicks per month from the Czech Republic.

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This is actually a pretty insightful description of the GEO. Czechs are very similar to Slovaks (my country) so a lot of these transfer well into Slovakia too.

There are some things mentioned that I do not agree with entirely... for example credit card usage is rising dramatically. Also regarding jobs, it's easy to find one in both countries, but the high paying positions are still rather scarce, except for the capital cities. And there are still quite a few poor people in both countries, so they respond very well to offers promising big discounts or all kinds of competitions/sweeps.

BTW: the "beer" tip is golden, it's like a national drink in CZ and extremely popular in Slovakia too. Going out for a beer is like a synonymum to simply meeting with friends downtowns

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Amazing great tips , I would love it if you could include national holidays etc and festivals etc as well ( helps with angles :P) .. I am looking forward to more stuff for other GEOs as well

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Yup, that would be helpful for sure.

For CZ, I can pretty much list them as they are the same as in my country

The major ones are christmas, new years and easter... all of them last for a couple days so they have rather big influence on the market.

The summer holiday season also massively affects the market, this last all July and August, kids don't have school during these 2 months, so all the families try to schedule their vacation for these 2 months.

There are also spring holidays, these are a week long, often used by families for shorter trips too. These are region specific, and last from mid february to march... but always just certain part of the country has them, once the week is over, the next one follows.

And maybe Halloween, we use a different name for it, but the dates match.

The rest of the nat holidays days are just 1 day, so no dramatic impact here.

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