Region-Media - Advertising agency for Russia's regions
Region-Media Advertising agency
for Russia's regions

Advertising market of Russia in 2007 year: turnover of advertising services equaled 13 billions of dollars

Extent of advertising market in communication media of its circulation in 2007 year made up 228.7 billions of rubles. This is an estimation of experts of Association of Communication Agencies of Russia (ACAR). Advertising branch keeps resolute pace of development: its growth is nearly one third annually. Last year the growth was 26 %, but in 2006 year — 24 %. In spite of the difficulties of calculations and controversies among members of ACAR, they were successful in unanimous decision almost in each qualitative characteristics, with the exception of the radio advertising.

The Law “On Advertising”, that enured since the 1st of July of last year, had great influence on the structure of Russian advertising market. In accordance with the estimation of Association of Communication Agencies of Russia (ACAR), advertising in newspapers for the first time during the last several years outstripped television advertising in rates of growth. In the first half year of 2007 advertising costs grew 28,7 % more up to 5,4 billions of rubles, whereas in the same period of time of 2006 year the growth was 16 % only. The participants of the market and advertisers consider, that the growth was influenced by permission for advertising of alcohol and tobacco articles by means of the press.

At the same time, the expenditures for newspaper advertising passed ahead of rates of growth of television advertising. The expenditures for radio advertising have grown remarkably up as well. In spite of some pessimistic forecasts, Russian advertising market still remains in dynamic progress. It is accounted for by the Law “On Advertising”, and because of appearance of new categories of advertisers.

The immediate causes of this reapportionment of means has become shortening of inventory, and caused by it rise in prices for TV advertising. After limiting TV advertisements, a lot of advertisers become interested in newspaper advertisements. Nevertheless, the growth is provided mainly by 10-15% of newspapers, which are the leaders of their sectors of the market. The main increase in newspaper sector of advertising has been caused by the advertisements of alcohol, which were permitted to print in press by the Law “On Advertising” since the last summer. The General Director of company “Alkogolnyje zavody” GROSS (plant for producing of strong drinks) has mentioned that the advertising in the press means “has become almost the only legal source of communications with consumers.”

Not only the participants of advertising branch, but citizens of the country can`t be disappointed with the final totals of the year. Advertising is not the “engine of trade” only, but one of the instruments for developing of consumer market. Costs for advertising are additional indicators of remarkable reapportionment of financial assets in our economy in favor of consumer market. And consumer market in developed economies is still remains the basis of economic prosperity. It is evidently, that economy of Russia goes on with further diversification. And now, it pleases us.
The Vice-president of ACAR, Vladimir Evstafiev, mentioned the success of branch and more impressive total overturn of advertising branch. If we add to the total amount fees of advertising agencies and payments for creation, the total sum could be some 13 billions US dollars for 2007 year.

As was expected, the most budgets got TV – 112.5 billions of rubles, and the growth was 31 %. The last year increase was 30 % up to 85.9 billions of rubles. But more effective dynamic of growth showed radio advertising – 26 %, whereas in 2006 year the increase was 12 % only. Frankly speaking, the shown data of 15.7 billions of rubles, hasn`t been approved by Council of Experts unanimously. But for the first time experts were successive to get sufficiently data about regional participants, and effectively estimate regional markets, which shear was 52 % of the total amount of the radio advertising. The growth of the market of radio advertising is not connected with the limiting of TV advertising. For the last four years, the growth of the total bulk of radio advertising was 25 % annually. It is happened, including, because of appearance in radio advertising of nonstandard goods, such as FMCG (fast-moving consumer goods).

Incredible growth occurred in Internet sector – 92 % and 5.8 billions of rubles, without context advertising, which, as before, can`t be estimated. It is registered negative inflation in this sector, when the amount of pages growths quicker than offers for advertising.
Bulk of market of marketing services grew up by 21 % up to 60.2 billions of rubles. The growth of BTL (below-the-line advertising) market is natural because of media-inflation, growth of consumption and development of Russian economy as a whole. Instruments of BTL occupy more and more shear of budgets of advertisers. Some firms have projected its growth up to 100 %. The tendency of reapportionment of budgets into marketing services will be kept on.

The last year was not very fortunate for the sector of outside advertising. Its tempo let down, but the growth was kept on – 22 % for year. There is continual administrative pressing and made in the Law restrictions on advertising of tobacco. The initiative of deputies to make up deadvertised zones in historical places of the metropolis, will cause material losses of 15 millions of US dollars. There are some advertising media, which “with much success fall into surroundings”. Evidently, conceptions, considering advertising as harm, exist in clarks` heads. Advertising of producers of mobile phones and computer means was shortened. On account of dismantling of installations in the centre of Moscow the prices went up, and the quality of programs worsen. And, because of it many of advertisers increased their budgets for TV advertising and advertising by the press, and for Internet and radio advertising.

dvertisers, which were dissatisfied with restrictions of authorities, recollected prohibitions of TV-advertising of beer during day time. Experts of the market are sure, that necessary to forbid not advertising itself, but ruinous way of living, which advertising brings.


Advertising market of Russia in 2007 year

segments billions of rubles
2006 2007 Growth 07/06, %
Television 85,9   112,5   31
Radio* 12,5**   15,7   26
Press 44,6   51,9   16
including newspapers   9,4   11,6 23
including magazines   19,2   23,4 22
including advertising press   16,0   16,9 6
Outdoor advertising 33,1**   40,4   22
Internet* 2,9**   5,8   92
Other carriers 1,8**   2,4   33
including Indoor Media   1,3   1,9 46
Movie house advertising   0,4   0,5 25
TOTAL: 108,9   228,7   26


Advertising market of Russia in 2007 year (w.o. the value-added tax)

segments billions of rubles
2006 2007 Growth 07/06, %
Television 72,8   95,3   48
Radio* 11,1**   13,8   7
Press 37,8   43,8   22
including newspapers   8,0   9,9 5
including magazines   16,3   19,6 10
including advertising press   13,5   14,3 7
Outdoor advertising 32,2   39,3   20
Internet* 2,5**   4,9   2
Other carriers 1,8**   2,4   1
including Indoor Media   1,1   1,6 1
Movie house advertising   0,4   0,5 0,2
TOTAL: 158,2   200,4   100



Volumes of BTL services advertising market / rubles

**Budgetes / billions of rubles
Segments 2005 2006 2007 Growth, %
billions of rubles
Consumer Promotion 10,2 11,7 14,1 21%
Trade Promotion 9,0 10,8 13,3 23%
DM (including CRM) 11,0 17,1* 20,4 19%
POSM and In-Store Visual Communications
- permanent
- non permanent
- visual communications
5,6 6,8 8,3 22%
Event Marketing (не включая спонсорство) 2,2 3,5* 4,1 17%
TOTAL 38 49,9 60,2 21%
Average rouble/$ exchange rate 28,29 27,17 25,56  
2006* —The given DM are corrected
2006* — The given Event Marketing are corrected