Outdoor advertising grew by 13 percent nationwide to 22 billion rubles, but the Moscow market was up only 7.5 percent to 7.9 billion, with ad space declining in Moscow by 7.2 percent in June alone.
Photo: Kharseev Oleg
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Advertising Market Slowing Down
For the first time since 2000, the Russian advertising market grew only 20 percent in the first half year, compared to 24 percent last year, according to the Russian Association of Communication Agencies. The main reason for the slowdown is the increasing cost of advertising on federal television. A 60-percent price hike there has led advertisers to reconsider their ad strategies. The RACA broke with its tradition of making a quarterly estimate of the ad market, but it became noticeable after the first quarter that advertising spending was below the expectations of media companies. STS Media (the STS and Domashny networks) admitted problems with advertisers in the Moscow market at the end of the first quarter.
In radio, income was up a modest 3.5 percent to 6.9 billion rubles. In the Moscow market, income was down 5 percent to 3.04 billion rubles. The Moscow market has been complex for other advertisers as well. Outdoor advertising, for example, grew by 13 percent nationwide to 22 billion rubles, but the Moscow market was up only 7.5 percent to 7.9 billion, with ad space declining in Moscow by 7.2 percent in June alone, according to Andrey Berezkin, general director of the ESPAR Analytic agency.
The press is doing no better. According to Video International, the income of Moscow and national advertising publications fell by 3 percent in the first half year to 6 billion rubles. The RACA examined regional publications as well and concluded that the entire segment has grown 2.6 percent to 8.3-8.4 billion rubles. Moscow, the most developed of Russia’s ad markets, is becoming saturated.
Russian Advertising Market in the First Half of 2008
| Medium Advertising Income (billion rubles) |
Growth in 2008* (%) |
Growth in 2007* (%) |
2008* |
2007* |
| Television |
65.8–66 |
52–52.2 |
26.3 |
27.4 |
| Radio** |
6.5–6.6 |
-- |
-- |
23.6 |
| Press |
27.7–27.9 |
24.7–24.9 |
12.1 |
21.3 |
| Including newspapers |
6.5–6.6 |
5.4 |
20.2 |
28.7 |
| Magazines |
12.8–12.9 |
11–11.1 |
16.3 |
24.3 |
| Outdoor advertising |
21.8–22 |
19.3–19.5 |
13 |
16.1 |
| Internet*** |
2.9 |
2 |
45 |
52 |
| Other media, including indoor media**** and advertising in movie theaters |
1.3 |
1 |
30 |
42 |
| TOTAL |
126-127 |
–- |
20.4 |
24.1 |
*January – June
** RACA experts significantly differ in their estimates of the volume of radio advertising in the first half of 2007 and its growth in 2008.
***Only Internet media advertising (banners, popup windows and other formats)
****Advertising inside business centers, retail chains, airports, railroad stations, etc.
Source: Russian Association of Communication Agencies
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