A News Outdoor worker fixes a billboard reading: "Rosbank: Credits to Small/Mid Business." The advertizing costs in Russia have lowered in all branches of economy because of the crisis.
Photo: Oleg Kharseev
|
 |
Ad Spending Down in Russia
The advertizing costs in Russia have lowered in all branches of economy, but the crisis won’t notably affect the growth of Internet advertising, Reuters Moscow reported with reference to Rambler Media.
The advertising costs have been slashed in all branches of economy, and the trend has become especially evident in the last two weeks of October. The negative trend will continue in 2009, according to Rambler Media.
But Internet will be affected least of all. Advertisers will be widening the share of online ads and the share of Internet advertising will be growing in the overall advertising costs.
Rambler Media forecasted earlier the 50-percent annual growth for the market of Internet ads. The amount will reach $400 million in 2008 with relatively equal portions of text and graphic advertising.
Rambler Media is controlled by Prof-Media Holding of Russia’s billionaire Vladimir Potanin.
Rambler expects to generate between $100 million and $110 million from the ad sales in 2008; the amount closer to $100 million is most likely.
At the same time, the fact that the advertisers slashed their ad budgets and the Rambler sales dropped in the fourth quarter, particularly in the sector of banner advertising, will negatively affect the Q4 EBITDA and trim EBITDA efficiency for the whole 2008, Rambler said.
In an effort to revive positive EBITDA dynamics next year, Rambler is elaborating a program aimed at the costs reduction. This program will be introduced not later than December 31, 2008. Redundancy is quite possible, but it won’t extend to key businesses, said holding’s briefer Marina Anisimova.
www.kommersant.com
|
|
|
