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Ads Down, Income Up on Russian TV
The advertising time per hour on Russian television was reduced from 12 to 9 minutes at the beginning of this year. Ad prices rose simultaneously, however, boosting ad income 26.3 percent in rubles (35 percent in dollars) in the first half of the year, Sergey Veselov, market research director for Video International told RBC television. Income should reach 140 billion rubles by the end of the year.
Nonetheless, the higher prices will take a toll. It is impractical for an advertiser to leave television, as other as outlets are incomparable to it, but growth has been sharply curtailed in all segments of the Moscow market – TV, radio, press and billboards. The Moscow market has been overheated. “Yes, every Muscovite with an apartment is a millionaire,” conceded Veselov, “but a person doesn’t need five automobiles, eight refrigerators, and so on.”
The recent elections also had an effect. Many transnational corporations cut back the introduction of new products during parliamentary and presidential elections in unstable markets as a matter of policy. The world financial crisis has led companies that do not have production facilities in Russia to leave the market. Procter & Gamble, Russia’s largest advertiser, which has its own plants in Russia, did not advertise on Channel One for seven months this year. Now experts are hoping that the company will make up for lost time.
All the largest advertiser in Russia have been foreign for the last 15 years. L’Oreal and Coca Cola are among the other ad leaders.
www.kommersant.com
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Photo: Alexey Kudenko