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The analysts expect reduction in time of TV promotion to lead to the 50-percent increase in prices and to generate outflow of small and medium advertisers.
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Feb. 01, 2006
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Too Much Promotion
Kremlin has given its go-ahead to proposal of State Duma’s deputies about reducing TV advertising. The effort will drive prices by 50-percent and push small/medium advertisers out of TV, the analysts say, expecting the independent channels to be hit first of all as a result.
Late Monday, Vladimir Surkov, who is the deputy chief of the president’s staff, hosted a meeting with the masterminds of a new bill on promotion, including Vladimir Draganov and Vladimir Medinsky, president’s aide Mikhail Lesin, State Duma’s Vice Speaker Lyubov Sliska and other leaders of United Russia. Exactly that party came up with a proposal past week to reduce TV promotion.

Reduction of promotional time on TV was backed up by most participants of the Kremlin meeting, said State Duma’s Vice Speaker Vladimir Katrenko, who chairs conciliation commission for this bill and who was in the Kremlin past Monday. “The Russians don’t watch a great number of very useful films and programs because of the overflow of promotion.”

Past week, State Duma’s deputies suggested gradually trimming the advertising time by 2008 up to four-minute promotion shown once in 26 minutes. The daily advertising is to go down from today’s 20 percent to 15 percent in 2008 with no more than 20 percent of advertising in an hour once the act takes affect and with 15 percent at the maximum starting from 2008.

www.kommersant.com

All the Article in Russian as of Feb. 01, 2006

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