A new edition of the law “On Advertising” cut ad time per hour on TV to 12 minutes, thus forcing up its cost by an average of 31 percent.
Photo: Dmitry Lebedev
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Advertising Down on Russian TV
The OMD Media Direction/PHD group of media agencies calculated the budgets of Russian's largest advertisers in 2007, specially from Kommersant. Spending among the top 15 advertisers rose notable less (25%) than on the market as a whole (37%). The cutback was mainly in television, where buying was down 6 percent due to price hikes. Due to the higher prices, advertisers spend 24 percent more on TV ads last year, while getting less for their money. OMD Media Direction/PHD used in formation from TNS Gallup AdFact and ESPAR Analytic for its calculations.
The top advertisers in 2007 were Procter & Gamble, L'Oreal and VimpelCom, as they had been in 2006, spending more than $100 million each. The largest advertisers among carmakers was Ford, whose ad budget increased 58 percent to $63.1 million. Most of that money was spent on TV ads, but Ford's outdoor ad expenses rose by 108 percent last year to $5.8 million. It was also among the top ten Internet advertisers.
Average discounts of 62 percent for national television channels, 40 percent for radio stations 36 percent for print media were assumed for the calculations. ESPAR Analytic estimates were used for outdoor advertising.
Advertising spending by Nestle fell 8 percent. MTS spending was flat. Eleven of the top 15 advertisers spent less on television last year. Unilever spent 3 percent less on TV and Nestle 27 percent less on it. A new edition of the law “On Advertising” cut ad time per hour on TV to 12 minutes, thus forcing up its cost by an average of 31 percent. Increased spending on regional television partially offset spending cuts on the national level.
www.kommersant.com
All the Article in Russian as of Mar. 25, 2008
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