Ad Market Takes In $6.5 Billion
Russian media earned almost $6.5 billion on advertising in 2006, and advertisers spent $1.65 billion in addition to that on various marketing services, according to the estimates of the Association of Communications Agencies of Russia. The sharp reduction in advertising on television after the law “On Advertising” came into force and prices grew dramatically had practically no effect on the pace of market growth. The market grew by 29 percent.
The ad market in 2006 grew even a little faster than the previous year, even thought he law “On Advertising” cut the volumes of ads on television by a quarter and forced prices up 30-40 percent. Nonetheless, television's share in the overall market grew from 46.5 percent in 2005 to 48.6 percent in 2006. “TV remains the most effective media for the fast and maximum coverage of the public,” observed Sergey Veselov, director of marketing research at Video International.
Advertising increased in newspapers as well. Sixteen-percent growth in that sector in 2005 was topped last year by 19-percent growth, mainly in regional newspapers. Radio saw even better indicators. “Radio advertising in the regions is developing rapidly,” said Maria Smirnova, commercial director of the European Media Group. “In our estimate, its annual growth is no less than 25-30 percent, while it does not exceed 15-20 percent in Moscow.”
Marketing services – promotional campaigns, targeted marketing and other less standard actions – grew up 22 percent to $1.65 billion. “We were counting on more,” admitted Vadim Kulikov, general director of the Vitrina A Group, “but because of the new law “On Advertising,” part of the advertisers shifted from promotional actions to TV. The lack of alcohol on the wholesale market in the summer of 2006 aso negatively affected the market.” Kulikov predicted that that segment of the ad market would grow 25-27 percent this year.
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All the Article in Russian as of Feb. 08, 2007
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Photo: Nikolay Cyiganov
