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

The Russian Advertising Market in 2011

For the first time the Russian Advertising Market has exceeded the pre-crisis indexes and has equaled 263,4 bln rubles excluding VAT.

The indexes are more than 21% higher than those for the previous year, and 4% higher than the pre-crisis 2008 indexes, as the Association of Communications Agencies of Russia (ACAR) has estimated.

The past year was significant for the Russian market, as the indexes turned out to be higher than the pre-crisis 2008 ones, but it should be specified that those figures are given unadjusted for inflation. If they are corrected for inflation, the increase is not that significant, and the Russian advertising market is now out of the ten largest markets in the world, which it used to be part of four years ago. Such circumstances reflect the general economic situation in the country. Nevertheless, expenses for television advertising have increased by 18%, up to 131 bln rubles, and if we take into account political advertising, the volume of which equaled 1 bln rubles excluding VAT in November and December last year, then expenses for television advertising have increased by 19%.

The TV segment is showing a positive momentum at present, but due to the high rate of Internet expansion, the percentage of TV distributions will start to slightly go down — by about 1 or 2%. Despite the fact that at the end of 2011 most advertisers closed successful TV-deals, it all depends on how stable the economic ground will be and what sales indexes we will reach at the end of the first quarter.

At year-end the print media showed the most sluggish growth — by 6%, up to 40,4 bln rubles, and the internet advertising showed the fastest growth (by 56%, up to 41,8 bln rubles). According to experts, the advertisers tend to show more and more interest in video advertising. As RuTube, estimate, the volume of video advertising market in 2011 exceeded 830 bln rubles. GPMD expects the video advertising segment to increase up to 1,5 or 2 bln rubles in 2012. The market is increasing through activity of companies of the FMCG-sector, including Procter & Gamble, Unilever, Mars, Reckitt-Benckiser. Last year they already used Internet videos actively, but the scope of posting advertisement on websites was limited. Brewing companies are also expected to appear in the video segment during the second half year 2012.

The volume of outdoor advertising market, according to the ACAR data, have increased by 15% reaching 34,4 bln rubles, which is a much lower level than what the company News Outdoor has forecasted (around 22%). This fact can be accounted for by the changes in the Moscow market due to reduction of the overall quantity of advertising spaces and cancellation by the authorities of a number of formats. Removal of all SLM banners alone cost a market loss of 1 bln rubles.

Volume of advertising in advertising media in 2011

Segments

2010
(
bln rubles)

2011
(
bln rubles)

Increase, %

TV*

110,8

131

18

including terrestrial TV

109,2

128,9

18

cable and satellite TV

1,58

2,16

36

Radio

10,3

11,8

15

Print media

38

40,4

6

including newspapers

8,2

8,8

7

magazines

18,3

19,8

8

advertising literature

11,4

11,8

3

Outdoor advertising

29,7

34,3

15

Internet**

26,8

41,8

56

includingmedia advertising

10,5

15,3

45

SEA advertising

16,3

26,5

63

Other media

3,1

4,1

32

including indoor advertising

2,4

3,2

35

advertisingin cinemas

0,75

0,93

25

TOTAL for ATL segment

218,6

263,4

21

Marketing services

55,1

68

23