Report: Russian online ad spend will keep growing in 2010
Posted by Alisa Zykova on December 29, 2009 at 7:20 AM
While most media formats in Russia experienced decreased advertising revenue in 2009 compared to last year, online outlets saw a rise in theirs, according to data from the Russian Association of Communication Agencies (AKAR), Gipp.ru reported today. Experts also predict online ad expenditure will continue to grow throughout 2010.
In Russia, print newspapers and magazines saw a drop of 44 percent during the first three fiscal quarters of the year. Daily papers suffered the least, having had a 20 percent decline in ad spend since 2008. Meanwhile, specialised publications underwent a 55 percent decrease. TV ad expenditure plunged by 21 percent from RUB 94.5 (US$3.15) billion to RUB 74.5 (US$2.48) billion from 2009 to 2008, according to Gazeta.ru. Other spheres went through significant loses; for example, expenditure within exterior advertising decreased by 42 percent since the same period last year.
In Russia, print newspapers and magazines saw a drop of 44 percent during the first three fiscal quarters of the year. Daily papers suffered the least, having had a 20 percent decline in ad spend since 2008. Meanwhile, specialised publications underwent a 55 percent decrease. TV ad expenditure plunged by 21 percent from RUB 94.5 (US$3.15) billion to RUB 74.5 (US$2.48) billion from 2009 to 2008, according to Gazeta.ru. Other spheres went through significant loses; for example, expenditure within exterior advertising decreased by 42 percent since the same period last year.
Russian Internet platforms saw a 3 percent growth in ad spend. Market research from KOMKON during November 2009 showed that Internet advertising was gaining popularity amongst advertisers, according to Alexander Belyakov, manager at contextual advertising company Begun. Over half of those interviewed (56 percent) said that they work at companies that disseminate ads across the Web, a 21 percent rise since 2008.
Gazeta.ru pointed out that it was more practical to follow advertising budgets online since the means used offered more precision. Furthermore, advertisers may be attracted by the lower "entry threshold" as well as the interactive factor of the Web, seeing as it permits them to be in control of and to change the course of the ad in real time.
Mediamir General Director Mikhail Gurevich suggested that today's news outlets may be more distributed across different media channels. For example, he said that television broadcasts appearing on the Internet might make it difficult to pinpoint how ad budgets were spent, thus making it complicated to distinguish between TV and the Internet. Gurevich added since offline publications were expanding online, it was inevitably the publications themselves that pushed the ad market towards the Web.
Experts say that by next year the Russian advertising industry should get a boost. According to Gurevich, the situation has improved beginning in autumn 2009. Plummeting revenues decelerated during the fall, added Marketing Research Director of VideoInternational Sergei Veselov. Gipp.ru also reported that next year, the drop in advertising budgets of print publications might either slow down or level out.
Gurevich said that as a whole, the country's ad industry might augment by a minimum of 20 percent in 2010. Reorganisation within ad budgets may cause a 5 percent to 7 percent increase in online ads, whereas the overall growth in Internet ads may amount to 15 percent, Gazeta.ru reported.
Gazeta.ru pointed out that it was more practical to follow advertising budgets online since the means used offered more precision. Furthermore, advertisers may be attracted by the lower "entry threshold" as well as the interactive factor of the Web, seeing as it permits them to be in control of and to change the course of the ad in real time.
Mediamir General Director Mikhail Gurevich suggested that today's news outlets may be more distributed across different media channels. For example, he said that television broadcasts appearing on the Internet might make it difficult to pinpoint how ad budgets were spent, thus making it complicated to distinguish between TV and the Internet. Gurevich added since offline publications were expanding online, it was inevitably the publications themselves that pushed the ad market towards the Web.
Experts say that by next year the Russian advertising industry should get a boost. According to Gurevich, the situation has improved beginning in autumn 2009. Plummeting revenues decelerated during the fall, added Marketing Research Director of VideoInternational Sergei Veselov. Gipp.ru also reported that next year, the drop in advertising budgets of print publications might either slow down or level out.
Gurevich said that as a whole, the country's ad industry might augment by a minimum of 20 percent in 2010. Reorganisation within ad budgets may cause a 5 percent to 7 percent increase in online ads, whereas the overall growth in Internet ads may amount to 15 percent, Gazeta.ru reported.
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