Advertising market for 2004

On 31st of January, 2005, regular meeting of Advisory council of Association of Communication Agencies of Russia (ACAR) on estimation of volume of advertising market of Russia in 2004.

The experts stated that high rates of advertising market growth remain in Russia. In 2004 they even somewhat exceeded the expected showings, that is to a great extent explained by sharp change of exchange rate of Euro to dollar.

Amount of advertisement in means of distribution thereof in 2004 grew by 33% and made 3 billion 855 million dollars.

Amount of BTL services advertising market exceeded 1 billion dollars. In connection with increasing of advertising market scales and gradual moving thereof to new level of quality, the experts considered it necessary to make some corrections to methods and approaches to estimation of the advertising market volumes:

First, jointly with Guild of periodicals publishers due to use of various methods of estimation, volumes of newspaper and magazine advertisement were corrected, at that special-purpose advertising editions alongside with newspapers and magazines were separated as individual unit.

Second, observing significant growth of advertisement at the «cable radio», it was decided to include its showings in the aggregate volume of radio advertisement market, in which advertising budgets of only FM radio stations were considered.

Third, noting the continually growing significance of the regional component of the domestic advertising market, special research of regional advertising market was held for the first time. In the framework of this research, in the process of estimation the leading specialists were engaged and data was used provided by GPP, «Video International TREND», «ESPAR-Analytic», GfK, TNS Gallup AdFact, the main radio holding companies.

Volume of advertisement in regional means of advertisement distribution, including Moscow regional advertising market, in 2004 exceeded 1 bln.USD, that made 28% of all market.

Naturally, St.Petersburg is the largest regional center, its advertising market exceeded 200 mln.USD, then go Ekaterinbirg, Novosibirsk, Samara, Krasnoyarsk, etc. The total amount of advertising markets in the cities with population of million and more people (excluding Moscow and St.Petersburg) made more than 300 mln.USD, 20 cities with population of half million to one million people – 210 mln.USD/ The volume of regional advertisement in cinemas in 2004 reached the level of 4 mln. USD; this market doubles annually.

*Including special-purpose advertising editions.
**Not considering context advertisement.
N/A – no data.
Source: Association of communication agencies of Russia (ACAR).