Russia: On PR market trends

The trend of budget growth of major companies for promotion in regions is observed at the present time on the PR market.

Regional development is of great significance for all companies laying a claim on leadership. At present real sector is growing faster than the market of PR services, which may soon result in shortage of professional PR agents. Russian PR differs considerably from the western one: PR in Russia is integrated in marketing technologies, which makes it possible to spend budget more economically.

(Sostav.ru, 15.10.07)

Russia: Market of branding services will grow by 50%

Russian branding market may grow by 30—50%, as the branch representatives forecast.

At the present time market volume amounts to US$ 100—150 m., or about 1% of the whole advertising market. The branding segment increased by 45% in 2006, while the growth of the whole advertising market amounted to 20%.

Average cost of branding projects, which are implemented by major international companies Future Brand, Interbrand, Landor, Enterprise IG, Wolff Olins, makes up US$ 0,6—1 m. Cost of services of international agencies Identica, Fitch ranges within US$ 300—400 ths. for a project.

(Vedomosti, 04.10.07)

Russia: Growth of television advertising market is forecast

Russia may become the major television advertising market in Europe and the forth one as to size in the world after China in the nearest three years.

Such forecast is contained in the analysis report of investment bank UBS. Television advertising market of Russia will grow by 35% in 2007, by 32% in 2008, according to forecast of ZenithOptimedia. Market growth in rubles will amount to 28,1% in 2007 and 27,3% in 2008, according to estimates of company «Video International».

(Vedomosti, 02.10.07)

Russia: Advertising market will slow down its growth by 2012 

Analytical centre «Video International» has prepared a forecast of Russian advertising market development up to 2012.

Costs of advertisers will slow down their growth. Costs will grow by 22.6% in 2008 as compared with 2007 to 269 bln. rubles, and by 8% in 2012 as compared with 2011 to 445 bln. rubles. Only Internet advertising will keep high growth rates.

(Commersant, 26.09.07)

Russia: The Russian citizens expend for the food 50-74% of their incomes

As it was shown by an investigation, realized in July oh3f 2007 by the Central Information Institute (named in Russian ВЦИОМ), 41% of the Russian citizens expend for the food 50-74% of their incomes, 32% expend for the food 25-49% of their incomes, 16%  almost 100%, 5%  less than 25% of their incomes.

In the questioning participated 1,6 thousand persons from 153 inhabited localities.

Russia: The average incomes of the Moscow inhabitants have increased by 2,4%

According tj the data presented by the Moscow Statistic Committee named Mosgorstat, in the first half-year of 2007 the average income of the capital city's inhabitant was equal to 29,156 thousand rubles, that is 2,4% more than in January  June of the last year(taking into account the growth of the customer's prices). This year the highest wages were noted in the financial organizations (56,059 thousand rubles), in the enterprises of communication and commerce, the lowest  in the educational institutions (16,130 thousand rubles), as well as in the organizations of public health, social services and scientific researches.

(Tverskaya, 13, 09.08.07)

Russia: An unprecedented growth of the prices for TV-advertising

In 2008 the TV-advertising in Russia will become dearer by 60%, and for the most important advertisers the growth of prices can exceed 70%. Such are the first evaluations of the media-inflation made by the advertising agencies on the grounds of a price-list, published some days ago by the group «Video International». An unprecedented media-inflation will permit the Russia to get back the world-wide leadership as to the rate of prices growth for TV-advertising, which this year the Russia let pass to the Ukraine.

Russia: Companies have increased their expenses on the press advertising

According to the data presented by the Analytic Center «Video International» (in Russian АЦВИ), during the first six months of 2007 the advertisers increased considerably the expenses for the press advertising. So, the expenses of the foods manufacturers for the advertising grown twice. The experts explain the growth of the advertising segment in mass-media by the changes in the segment of outdoor advertising: the introduction of the prohibition of the outdoor advertising concerning the alcohol and tobacco products, the diminution of number of the advertising constructions in the centers of big towns.

(Kommersant, 15.08.07)

Russia: The expenses of the advertisers have reached 105 mlrd. of rubles

According to the data presented by the Association of the Russia?s Communicative Agencies (in Russian: AKAP), in January  June of 2007 the total amount of the companies? expenses for the advertising reached 104,5  105,5 mlrd. rubles, that is 24,1% more than for the analog period of the last year.

About 50% of the advertising market fell on TV: in the first half-year of 2007 the companies expended for TV-advertising 52 mlrd. rubles (+27,4%). The expenses for the press advertising increased by 21,3% up to 24,9 mlrd. rubles, including the advertising in newspapers  up to 5,4 mlrd. rubles (+28,7%), in magazines  up to 11,1 mlrd. rubles (+24,3%), in advertising editions  up to 8,3 mlrd. rubles (+13,3%).

(Kommersant, 15.08.07)

Russia: An unprecedented growth of the prices for TV-advertising

In 2008 the TV-advertising in Russia will become dearer by 60%, and for the most important advertisers the growth of prices can exceed 70%. Such are the first evaluations of the media-inflation made by the advertising agencies on the grounds of a price-list, published some days ago by the group «Video International». An unprecedented media-inflation will permit the Russia to get back the world-wide leadership as to the rate of prices growth for TV-advertising, which this year the Russia let pass to the Ukraine.

Russia: Companies have increased their expenses on the press advertising

According to the data presented by the Analytic Center «Video International» (in Russian АЦВИ), during the first six months of 2007 the advertisers increased considerably the expenses for the press advertising. So, the expenses of the foods manufacturers for the advertising grown twice. The experts explain the growth of the advertising segment in mass-media by the changes in the segment of outdoor advertising: the introduction of the prohibition of the outdoor advertising concerning the alcohol and tobacco products, the diminution of number of the advertising constructions in the centers of big towns.

(Kommersant, 15.08.07)

Russia: The expenses of the advertisers have reached 105 mlrd. of rubles

According to the data presented by the Association of the Russia's Communicative Agencies (in Russian: AKAP), in January — June of 2007 the total amount of the companies? expenses for the advertising reached 104,5 — 105,5 mlrd. rubles, that is 24,1% more than for the analog period of the last year.

About 50% of the advertising market fell on TV: in the first half-year of 2007 the companies expended for TV-advertising 52 mlrd. rubles (+27,4%). The expenses for the press advertising increased by 21,3% up to 24,9 mlrd. rubles, including the advertising in newspapers — up to 5,4 mlrd. rubles (+28,7%), in magazines — up to 11,1 mlrd. rubles (+24,3%), in advertising editions — up to 8,3 mlrd. rubles (+13,3%).

(Kommersant, 15.08.07)

Russia: Rollton evaluates the market in US$ 1.3 bln.

The capacity of the Russian market of instant and quick-cooking products amounts to US$ 1.3 bln. per year, according to the evaluation of Irina Vlasova, head of analytical department of the trading house of the company Rollton.

Although market growth is slowing down, development is promising in this segment due to increasing employment of working population and pace of life acceleration of consumers in Russia. Demand for natural products, i.e. without preservatives and dyes, is growing, which is an evidence of great potential of sublimates.

(Vedomosti, 16.06.06)

Russia: Advertising market growth will slow down to 10% per year

The growth rate of the Russian advertising market is going to gradually slow down and make up 10-12% per year in 2012 against 30%, expected in 2007, according to the forecast of the research center of the company Video International. Legislative and administrative limitations will play a substantial role in this process.

(Commercant, 19.06.07)

Russia: TV advertising segment continues to dominate

The bulk of advertising budgets will as before fall to the share of TV channels within the next few years, according to the advertising market experts.

Market operators consider TV advertising in Russia to be cheap and its quality to be poor. The absence of niche TV channels does not make it possible to cover the target audience, which decreases the efficiency of advertising and gives rise to the irritation of consumers, according to the market participants. Andrey Milekhin, president of ROMIR Monitoring, believes that the influence of TV advertising on the decision of customers to buy is greatly overestimated.

(RBC Daily, 06.06.07)

Russia: Online advertising market has great potential

The online advertising market of Russia has great potential of growth, believes Elena Kolmanovskaya, editor-in-chief of Yandex.

In her opinion the share of internet advertising does not exceed 3% in the total market volume now, while this figure reaches 8-9% in Europe.

The volume of the Internet advertising market of Russia doubled and amounted to US$ 210 mio. in 2006. US$ 100 mio among them fell to banners in net, US$ 110 mio to context advertising.

(Commersant, 08.06.07)

Russia: Advertising association about market trends

Introduction of a new law on advertising limiting advertising time to 12 minutes per hour has resulted in decreasing direct advertising.

Product placement segment is at the same time growing, Vladimir Evstafyev, president of Russian association of advertising agencies mentions. Nowadays 1.5-2 percent of all TV advertising budget falls to this advertising, however, all manufacturers will in perspective allocate funds for product placement.

Tougher rules of advertising placement on TV will bring advertisers on regional TV-markets, according to the association data. Promotion in regions will make the campaign more targeted and put commercials on the regional air that did not appear on the federal air.

(Novie Izvestiya, 29.05.07)

Russia: Promotion is an effective BTL means

Consumers regard promotion as the most effective means of promoting products using BTL actions, according to agency Romir Monitoring data.

49 percent of BTL market falls to this type of advertising. About 56 percent of the Russians have seen such actions for the past month. 35 percent of survey participants liked them, 17 percent — did not, 48 percent are indifferent to them.

Promotion has optimum correlation of results (increased sales) and expenses to conduct them, according to the estimation of company Akmalko. Sales went up on average 3-3.5 times during the action. Sales exceeded the usual level by 70 percent during several months after the action.

(Rossiyskaya Torgovlia, May 2007, issue 4)

Russia: Conventional advertising is not effective

Conventional means of product promotion on the Russian market are getting less effective, according to estimation of companies Popai Russia and NGN Promotions.

There are also new methods, such as audio branding based on using music while promoting goods and «provocative marketing» that aims at shocking consumers and increasing their loyalty to the goods. The share of BTL-advertising is growing on the market, which is connected with a 40 percent increase in prices of media advertising in 2006, development of chains, limited advertising opportunities in mass media, better quality of BTL-agencies services, according to the marketing director of NMGK group.

Today the correlation of ATL and BTL-advertising in total advertising budgets of companies makes up 76-80 percent to 20-24percent. BTL accounted for 5 percent three years ago.

(Rossiyskaya Torgovlia, May 2007, issue 4)

Russia: Media inflation awaits TV advertising

Sergey Vasilyev, president of Video International Group, declared at the annual conference «Russian advertising industry — 2007 Trends. Forecasts. Practice» that prices of TV advertising will grow by 50-55 percent in 2008.
This forecast was made owing to the fact that Video International concluded a number of contracts for 2008 with big clients that accepted this increase rather than market assessment, as Vedomosti informs.

Vasilyev also declared that the price increase of TV advertising will not concern all Video International customers: «For those who buy placing with us at the highest price we will prevent tariffs from increasing. We offered tariffs with zero inflation to a number of advertisers in 2007».

Small companies who can not afford TV advertising on central television will first of all suffer from media inflation. That is why they will be forced to turn to regional and network channels, thinks Evstafyev. The АCАR vice-president pointed out that these changes will lead to the fact that it will be more difficult and expensive to create the company brand than before.

(Sostav.ru, 25.05.07)

Russia: advertising market grew by 33 percent in the first quarter

The Russian advertising market increased by 33 percent up to US$ 1.8-1.83bln in the first quarter of 2007 as compared with the same period of 2006, according to the data of the Association of Communicative Agencies of Russia (ACAR)
The structure of advertisers’ expenses was as follows in the first quarter of 2007: segment -volume –growth as compared with January-March 2006.

• TV advertising - US$ 890m – 39.5 percent
• advertising in printing mass media - US$ 430m – 27.7 percent
• outdoor advertising - US$ 350m – 25.3 percent
• radio advertising - US$ 100m – 30 percent
• Internet advertising (without taking context advertising into account) - US$ 35m – 50 percent

(Kommersant, 22.05.07)

Russia: The cost of TV advertising will increase by 25 percent in 2008

The Federal Antimonopoly Service (FAS) forecasts the increase of TV advertising costs approximately by 25 percent from January 01, 2008.
Experts believe that a price rise will be connected with the increase of the number of operators on the market.

(Vedomosti, 11.05.07)

Russia: Repartition of outdoor advertising market is expected

A large-scale repartition of outdoor advertising market is expected in Russia, as experts forecast. Competition is rising; interest in outdoor advertising is roused by constant price increase of television advertising.
Owing to market consolidation prices of outdoor advertising will go up already in 2007 as analysts believe. Prices of outdoor advertising will increase by 25 percent in Moscow and in average by 15 percent throughout Russia in the first six months of 2007, according to the "ESPAR -Analitik" agency forecast.
Russia’s outdoor advertising market increased by 25 percent in 2006 up to 28.5bln rubles, or approximately US$ 1.1bln, according to experts’ estimation.

(Ekspert Volga, April 2007, issue 16)

Central / Eastern Europe: Television advertising will rise in price

According to Starcom, costs of advertising placement on TV in Russia, Poland, Czechia, Slovakia, Ukraine, Lithuania and Bulgaria will grow in 2007 on average by 25%. The largest growth will be registered in Украине and Russia where television advertising cost will grow by one third. As predicted, television advertising placement in these countries will rise in price in 2008 on average by 20%.

(Rzeczpospolita, 06.03.07)

Russia: Advertisers got to the Net.

Advertisers prefer to promote their products through Internet.

According to forecasts made by Outsell, investments Internet advertising will increase in 2007 by 18%, with the assumption that the whole advertising market will grow by 5% only. In connection with growth of popularity of advertising in the Net, the segment of printed advertising may decrease twofold — down to 20% of the market.

According to forecasts for the next year, volumes of Internet advertising in the world will increase. Advertisers pay more and more attention to online advertising and are ready to invest in this segment.

Online advertising becomes more efficient way pf promotion of brands. Besides, companies use the Internet space as a tool for brand management.

Shift of advertising budgets to the Internet space results in growth of profits from search engines. In particular, Google, the leader in Internet search announced about revenue growth in the fourth quarter of 2006 by 67% — up to 3.21 billion dollars per annum.

(Vzglyad, 05.02.07)

Russia: Internet advertising market grew by 87% in 2006

Upon the results of 2006, the total volume of the Internet advertising market in Russia increased by 87% and amounted to US$ 187 million, according to MindShare INTERACTION advertising agency. In this case only costs of placement of banner and context advertising were taken into consideration. It is forecasted that the volume of the Russian Internet advertising market will grow in 2007 up to US$ 300 million.

(PR and Advertising in Russia, 02.02.07)

Russia: Market participants about branding problems

In the course of a recent sectoral conference participants of the advertising and branding market mentioned increasing difficulties in promotion of brands in the Russian market connected with strengthening of competition and change of consumers’ needs. According to Turhan Mahmudov, the General Director of BBDO Branding Agency, several years ago placement of advertising at two or three TV channels was sufficient to attract attention of 70-100% of consumers to a brand. Now to attract attention of the target audience it is necessary to place advertising in all types of mass media. Besides, in the opinion of participants of the market, Russian consumers prefer to buy goods with the brands, which are well-known to them, and practically never pay attention to any goods with unknown brands.

Participants of the conference pointed out that there is no efficient legal system of brand protection in Russia, which stimulates appearance in the market of trade marks copying well-known brands.

(Advertology, 01.02.07)

Russia: 54% of population buy goods with well-known brands

Gfk Group carried out research of buyers preferences. It was found out as a result thereof, that 54% of Russian people, prefer to buy goods with prestigious brands, which refers equally to men and women.

Well-known brands are most popular among young people aged from 13 to 29- in this category they are bought by 73% of population. 60% of people aged from 30 to 49 prefer well-known brands, the same is true for 31% of people aged 50 or more.

Experts point out that goods with «respected» brands are bought more often by people with higher level of incomes (60%). Such products are purchased by 41% of people with medium income and 19% of those with low income.

(Advertising Industry, January, 2007)

Russia: «Rollton» launched an advertising campaign

«Rollton», a Russian manufacturer of fast food products, launched an advertising campaign for its BIGBON brand.

A video clip advertising BIGBON dinners is broadcasted at the federal TV channels in the context of the action. The target group of the brand are active young people aged from 25 to 45, who are faced occasionally with the lack of time for preparation of dinner or visiting a restaurant. The advertising campaign concept was developed by the agency Grey Worldwide Moscow.

The characters of the advertising video clip demonstrate the process of cooking noodles out of 400 g package. To cook the product one must put noodles to a colander, sink it to boiling water and keep for two minutes.

Russia: Attitude towards Internet advertising is positive

It follows from a research of the audience of the Russian-speaking part of Internet (Runet) carried out by ROMIR Monitoring that users of the Net treat Internet advertising positively on the whole.

At the same time, about 50% of respondents (the total number of questioned people was 1.5 thousand) stated that Internet advertising doesn’t annoy them, and over 60% point out that advertising helps to learn about goods and services and the place to purchase them. Moreover, about 20% of users pay attention regularly to appearance of advertising banners.

According to the data obtained in the research, the majority of the Internet audience (67%) in Russia are men aged 25-34 (44%) and younger (34%). At the same time, Internet is the main source of news for 91% of active audience, and two thirds of the audience stated that they watch TV not so often when started to use the Net.

Russia: Advertising market will grow by 21.8% in 2007

According to a forecast made by BIPE, a French institute, the volume of the Russian advertising market will grow in 2007, in comparison with 2006, by 21.8% up to 7,648 billion USD.

The shares of advertising costs for different media will be distributed in this year as follows: 55% — television, 20% — outdoor advertising, 12% — magazines, 6% — radio, 4% — newspapers, 2% — Internet.

Russia: The market of branding services is changing

In accordance with the estimations made by the specialists, the turnover of the Russian market of branding is demonstrating its high rates of growth.

The situation of this kind is by many reasons bound up with the fact that the majority of brands, existing today, need their renovation. There are changing the conceptions of positioning: while some time ago the main criterion of promotion for a company was its "reliability", today the emphasis is made on the innovative component.

For today the volume of the Russian market of branding is valuated as being equal to US$ 100 mln. In the year 2007, as it is estimated by the experts, there will grow the influence of branding in the retail.

Russia: By the year 2010 the demand for BTL-advertising will exceed US$ 4 mlrd.

The volume of the Russian market of BTL-advertising in the year 2006 will reach US$ 1,7 mlrd. During some last years the market is growing not less than by 25% annually and by the year 2010, in accordance with the forecasts made by the experts, it will exceed US$ 4 mlrd.

During the last 3 years the share of the BTL-advertising has grown from 5% up to 22%. One of the principal tendencies of the market consists in the alliances between the advertising groups and BTL-agencies.

Russia: The areas of the exhibition World Food Moscow are growing

The international exhibition World Food Moscow every year increases its areas. While five years ago the exposition of this exhibition was placed on 8 thousand m2, in the year 2006 — on 23,39 thousand m2. These positive dynamics are by many reasons bound up with the increasing number of participants in the sections "Confectionary", "Fruits and vegetables", "Tea and coffee", "Fish and sea-products".

Russia: Universal McCann forecasts the advertising market growth

According to the estimation made by Universal McCann international advertising network, the Russian advertising market capacity in 2006 will be 23.17 billion rubles.

It is expected that the annual market growth will be about 16.4% as compared with 20% in 2005. The highest growth rate is expected at the segments of television advertising, outdoor advertising, Internet and BTL-services.

It is forecasted by Dmitry Kuraev, the General Director of Universal McCann Russian division that growth of demand for advertising services in Russia will be 15.8% in 2007.

Association of Communication Agencies of Russia (ACAR) expects upon the results of 2006 the advertising market growth in Russia by 22% — up to US$ 6 billion at the least.

Russia: Expenses of FMCG firms for Internet advertising will be tripled

According to the forecast made by Mr. Revazov, the Chairman of the Managing Board of IMHO VI, the expenses of FMCG companies for Internet advertising will be tripled in Russia from US$ 10-16 million in 2006 up to US$ 30-40 million in 2007.

In particular, expenses of brewing companies may be increased from US$ 1 million up to US$ 4-6 million. The total advertising market in Russian-language Internet will grow next year by 50-70%.

Russia: Regma prepared rating of media agencies

REGMA, a French consulting firm, prepared rating of media agencies operating in Russia. 14 companies were included in the rating. The following companies occupy leading positions at the market: rating score, agency (group name).

А+ / ZenithOPtimedia (Publicis Group Media), Vizeum (Aegis Media);
A / MediaCom, MediaEdge: cia (GroupM); MediaVest, Starcom (Publicis Group Media); Optimum Media OMD Group (Omnicom Media Group), MPG (ADB);
В+ / MindShare (Group M), Carat (Aegis Media);
B / MC2 (Group M), Initiatiive (ADB);
C / BBDO GroupMedia (Omnicom Media Group), Universal McCann (ADB).

Russia: The PAULIG is using the unique advertising bearer

The Finnish company Paulig is effectuating the advertising campaign of their brand Paulig Classic in nine Russian towns.

For the promotion of this product has been used a non-standard bearer — divider of the purchases on the cash-desks of supermarkets. It is interesting that inside of the transparent plastic body there are put real coffee beans.

Russia: During nine months the advertising market has grown by 27%

In accordance with the data presented by the Association of the Russia communication agencies (AKAR), in January — September 2006 the volume of national advertising market has grown by 27% if compared with the corresponding period of the last year, having reached US$ 4,23 — 4,32 mlrd.

In this situation US$ 2,07 — 2,09 mlrd. fell on the TV-advertising, US$ 1,09 — 1,11 mlrd. — on the advertising in printed publications, US$ 790 — 810 mln. — on the outdoor advertising, US$ 290 — 305 mln. — on the advertising by radio and by other mass-media.

Russia: The market of PR-services has grown up to US$ 1,5 mlrd.

According to the data presented by experts, in 2006 the volume of PR-services market in Russia reached US$ 1,5 mlrd. But it is far from the saturation.

For example, in Moscow only 70 % of companies have their press-service, press-secretary and permanent PR-manager. And in an important part of Russian organizations the PR-manager executes the functions of marketologist and of advertising manager or vice versa – the marketologist is responsible for the communication with the press and for the creation of the company image. In the regional companies often there is not any corresponding specialist at all. The principal explication of the created situation is, by the opinion of experts, the high cost of the PR-managers services.

Russia: VTsIOM about the preferences of TV viewers

The All-Russia Center of studying the public opinion (VTsIOM) executed the investigation concerning the question: which TV transmissions are preferred by the Russian TV viewers? In the course of questioning it has been revealed that the most popular are the news programs, they are watched by 59% of the questioned persons. The first place is occupied by the feature films (40% of answering persons), then follow the entertaining transmissions (34%), then the place is occupied by the TV serials (25%), sports transmissions (20%), TV games and toque-shows (19% for each ones); in the end of the list there are the transmission about the nature and the documentary films (17%). It is notified also that the men are in a greater degree interested by the news and sports transmissions, while the women — by the entertaining and cultural programs.

Russia: The volume of mobile advertising will increase by 40%

According to the forecasts of experts, in the next two years the volume of advertising market on the transport means can increase by 40% because of the appeared more strict rules of placing the outdoor advertising in big Russian towns. To the mind of market participants, the development of the transit advertising segment in Russia is hampered by the absence of the common rules of its placing in the regions of Russian Federation, as well as by the outdated normative acts and the opacity of market.

Russia: The interest of investors towards the media-market will grow

The experts are forecasting the growing interest of investors towards the Russian media-market. It will take place as quick as the market itself will grow. For today, by the evaluation of the company Zenith Optimedia — one of the leading analysts of media-advertising market — the expenses pro capita for the advertising in Russia are equal to US$23.6 in comparison with US$496 in USA. But being so, the incomes pro capita in USA and in Russia differ only by 6–8 times. As it is forecasting by this company, this big difference will decrease, and the market will go on growing very quick. The most interesting in Russia are the investments in telecompanies and in the outdoor advertising, as it is the mind of Yuli Matevosov — the director of Analytic Department of the company Dnesdner Kleinwort Wasserstein. A potential interest for the investors is represented by the cable television. Is promising the segment of internet-advertising, whose share at the present time is equal only to 1% of the total expenses made by the advertisers, while the potential of growing is determined as equal to 5%.

Russia: VI is forecasting the increase in twice of the advertising market

In their forecasts as to the advertising market development in Russia the analytic center of the company “Video International” (VI) proceeds from the assumption that the market will grow in twice by the year 2010. The turnover of advertising industry will reach US$10–11 billion. The VI is forecasting that the advertising volumes in Internet will grow from US$60 million up to US$500 million in 2010. This forecasting is grounded on the version that the share of Internet-advertising will griw from 1.2$% in 2005 up to 5% in 2010. It is impossible to predict exactly what will be the behavior of the advertisers in 2008, when the volume the advertising by TV will be decreased from 20% down to 15% a hour in accordance with the requirements of the Law “On the advertising”. The volume of offering the rating points GRP will decrease by 12% in 2006–2007, and from the January of 2008 the decreasing will be 15% still more, as it is explained by Sergey Veselov. As a result, the television channels will raise the prices of placing the advertising, and not all the advertisers will accept the price raising. The probability is great that the advertisers will leave the television, asking for the services of other medias.

Russia: There is prohibited the veiled advertising of goods

The new redaction of the Law “On the advertising”, entering into force from July 1, 2006, prohibits the so called veiled advertising: the advertising of some goods under the guise of other ones, similar up to be confused. As it was said by Andrey Kashevarov — the deputy chief of the Federal Antimonopoly Service (FAS), — the expert conclusion in this field on the part of FAS will be given by Expert council of exercising the rights in the field of legislation on the advertising and by Federal institute of the industrial property which is a member of the patent institution Rospatent.

Russia: Advertisers have supported the idea of auctions

In the Moscow advertising comity came the letters from the most important advertisers and agencies, buying advertising areas, to support the idea of organizing the auctions for the right of taking on lease the places for outdoor advertising. In these letters is concluded the request of the following: on the grounds of auctions’ results, on 15–20 principal Moscow highways there must work not less than five advertising operators. To the mind of the market operators, the organization of the contests for advertising places on principal routes will lead to a repartition of the whole Moscow market of outdoor advertising. According to the information presented by the agency ESPAR-Analitik, the 50% of 45 thousand of advertising areas in the town are situated on 20 principal routes.

Today from 30% up to 60% of constructions on 20 principal routes fall on the most important operator of the Moscow market of outdoor advertising — the company News Outdoor-Russia. The other advertising bearers are divided among nearly 10 firms, of whose the most important are Gallery, Vera-Olimp and Rasvero.

Russia: Chief of WVI about the development of advertising market

As it was said in an interview, given to the newspaper “Kommersant”, by Mr. Korobeynikov, chief of the company WVI, on the Russian advertising market is taking place a regrouping of forces.

In the second half-year of 2006 the budgets of TV-advertising will increase nearly by 5%, in accordance with the estimation given by the chief of WVI. With introduction of limitations concerning the advertising broadcasting from July 2006 many advertisers preferred to increase the budget and to keep the quantity of bought broadcasting. A reflux of advertisers from the television can be expected approximately in three years, if the prices have increased seriously – by twice, and not by 20%, as with introduction of limitations concerning the advertising TV broadcasting from July 2006.

Russia: Rating of the marketing investigation agencies

The association of regional sociologic centers “Group 7/89” published the rating of the investigation companies. The rating was composed on the ground of questioning concerning the facts of collaboration and if the further collaboration is desirable or non desirable.

It the ten leading investigation companies (in the order of diminishing conditional rating) entered the following ones: VTsIOM, TNS Marketing Information center (MIC), “Levada-Centr”, fond “Social opinion” (FOM), “Komkon”, GfK Rus, “Business analytics”, TsIRKON, Romir monitoring, TNS Gallup Media. In the same time the specialists note that the regional market investigation developed in significant degree thanks to the work of the companies which had got in the second ten of rating – in particular, of ACNielsen and Ipsos.

According the dates presented by the Association of investigators of the market and of the social opinion (OIROM), the Russian market of marketing investigations in 2005 was evaluated as equal to US$150 million.

Russia: ACAR about the advertising market in the first quarter of 2006

In accordance with the dates presented by the Association of Communication Agencies of Russia (ACAR), the Russia advertising market in January-March, 2006, increased by 23%, while for the analog period of 2005 the growth was equal to 26%.

As to its cost, the whole market in accounting period is evaluated as being equal to US$1.25 billion. Moreover, the growth of the advertising segment in printed mass-media grew only by 10% against 16% for January-March, 2005, and in the field of outdoor advertising the rate of growth dropped from 39% down to 24%.

The advertising segment in Internet grew by 75%, up to US$22 million, the television advertising segment reached US$600 million (+31%). The specialists explain these dynamics by saturation of the market; furthermore, the operators are waiting for the effect which will be produced on the market by the entry into force, from July 1, 2006, of the new law concerning the advertising.

Russia: Leading advertisers are coming to Runet

The advent to Runet (Russian language Internet) of such important advertisers as Johnson&Johnson, Procter&Gamble or PepsiCo, which are planning to increase in the year 2006 the part of their expenses on Internet-advertising, will give a serious impetus to the development of advertising market in the Russian part of Internet.

For the present it is complicated to forecast which amount from the planned Internet advertising budget will be put on the Russian market, but one can suppose that it will reach not less than 1–2% of the total amount — roughly the same part of the world market is occupied by the advertising market in Runet.

In the year 2005, according to the data of National Advertising Association, the volume of advertising in Runet grew almost by three quarters. For the last year the growth of banner advertising in Russian Internet reached $60 million (the market of television advertising grew only by 37%), as against $35 million in the year 2004. About $30 million more fall on the context advertising.

Russia: “Video International” will increase the prices of advertising

The companies group “Video International” notified about the increase from July 1, 2006, of the cost of placing advertising on the main TV channels.

The price increase of the advertising broadcast on the “First channel”, without taking into account the discounts, will be 15,7%, on the channel “Russia” — 5,3%, on STS — 21%, on RenTV — 22,2%, on “Domestic” — 33,3%, on the channel “Sport” — 7,1%, on DTV — 16,6%.

Moreover, the company cancelled all the annual contracts with advertisers, having argued it by the assertion that the putting in force of the law “On the advertising” is a force majeur circumstance.

Russia: Attitude to the advertising of goods by TV

The fond “Public opinion” effectuated the investigation of the attitude of Russians to the advertising of various goods by TV. In result it was revealed that 39% of country’s inhabitants regard negatively the advertising of alcoholic beverages, 28% were against the presence on TV of the advertising of pantyliners and of toilet paper, 20% — of tobacco products, 16% — of medicines, 3% — of intimate services.

The 2% thank that on TV it is not worth to make the advertising of playing automatons, motorcars, magicians’ services and imported goods. The 3% of Russians answered that the publicity on TV is not necessary at all, for 5% it was difficult to answer.

Russia: VI predicts the price increase for the advertising

The Russian companies group “Video International” (VI) published the preliminary forecast of the price increase for the advertising on TV because of the entry into force of the new law “On the advertising” in the second half-year of 2006.

The opinion of the VI analysts is that in 2006 the total price increase for the advertising will reach 40–45%, 30–35% in 2007, 55–60% in 2008. So, in 2008 the price increase for placing the advertising will reach 80–90% comparatively with the level of 2005.

As it is predicted by the VI experts, on the background of considerable price increase the market can develop following four scenarios. In accordance with the first plan, a part of advertisers will accept the increase of advertising budgets with the aim of buying the habitual volume of ratings, with the second plan — the advertisers will not increase the media-budgets. The third and the fourth scenarios foresee either a sharp reduction by the companies of their advertising expenses or the complete abandonment of advertising.

Russia: Market of Internet advertising — leader as to the rate of growth

In accordance with the estimation made by the General director of the Russian internet company “Yandex” Arkadiy Volozh, in 2005 the internet advertising exceeded by the rate of its development all the other types of advertising. The market volume reached US$100 million.

As to the market segments of internet advertising, the greatest was the increase of the context advertising, for which in 2005 the advertisers expended the means 120% bigger than in 2004. The share of the context advertising reached 40% of the market.

According to the experts’ forecasts, in 2006 the segment of the context advertising can let see the increase equal to 100–150%. It is probable that the new law “On the advertising” will provoke the passage of the advertisers from the television to the internet.

Russia: Market of context advertising will become twice bigger in 2006

According to the forecasts of the specialists of the company BEGUN, in 2006 the Russian market of context advertising in the internet can become twice bigger and reach US$50–60 million. The volume of this market segment in 2005 is evaluated by the company as being equal to US$30 million.

For 2010 the company predicts the further increase of this segment up to US$300 million.

The experts of this company think also that the context advertising has a little efficiency in the branding, the introduction of new goods and in the sector of everyday demand goods.

Russia: Growth of the market of advertising in 2006

The tentative forecast of the volume of Russian advertising market in 2006, given by the experts of Association of Communicative Agencies of Russia (ACAR): increase by 20% up to US$6 billion.

In 2005 the demand for media-advertising in Russia exceeded US$5 billion, from which US$2.33 billion are the share of television. According to Viktor Kolomiets, member of Expert Council of ACAR, for the services of advertising by TV there are the greatest demand between the producers of cosmetics and perfumery products, brewing companies, pharmaceutical companies and producers of household chemical goods. Also in 2005 there grew the advertising concerning the motor cars and the financial services, like insurance.

Russia: MTV refuses to perform the contracts

After the group “Video International” (VI) the Russian television channel MTV officially declared that they would not be able to perform in the complete volume their obligations of putting the publicity in their broadcast, if the project of Law “On the publicity” is approved in its today’s redaction.

This project of Law foresees to reduce the volume of publicity from the today’s 20% of daily television broadcast down to 15% since July 1, 2006.

In accordance with the experts forecast, if this project of Law enters into the force already in 2006, then the volume of publicity in the Russian television can reduce by 25% compared with 2005.

Russia: Growth of BTL-market in 2006 will reach 25%

Conforming the estimations made by specialists, the industry of marketing services will grow in 2006 approximately by 25%. An intensive development is waiting for the category of trade-marketing and POSM (advertising in the points of sale). Together with the market of telecommunications will develop the sms-marketing, the indices of growth in the field of direct-marketing will be the lowest in the branch, there will remain the interest for the event-marketing.

For the BTL-industry there becomes more and more efficient the combination of traditional and non traditional publicity, which requires more and more deep comprehension of the brand, knowledge of the strategic planning and attraction of the specialists able to elaborate original actions.

Russia: ACAR predicts the growth of the market of Internet-advertising

In accordance with the forecasts made by the Association of Communicative Agencies of Russia (ACAR) in 2006 the Russian market of Internet-publicity can grow approximately by 90% compared with 2005 and will reach US$130 million. In 2007 the market will continue to grow and can increase up to US$220 million.

In accordance with the data of ACAR, in 2005 the national market of Internet-publicity increased by 70% compared with 2004 and reached US$85 million.

Russia: New redaction of the Law “On the publicity” is approved

The State Duma of RF approved in the final third reading the new redaction of the Law “On the publicity”.

Accordingly to the document, there is forbidden the publicity of the alcohol, the weak alcoholic cocktails and the tobacco by television and in the outdoor advertising.

It is proposed by 2008 to shorten the maximum time of publicity from the today’s 25% every hour down to 15% every hour. the publicity blocks must not exceed 4 minutes.

The document introduces new norms of publicity of the financial services. In particular, if the publicity of credit products informs the consumers at least about one of the components of their cost, then in this publicity must be indicated also all the other components.

Russia: FAS will strengthen the control of the advertising market

The Federal Antimonopolistic Service (FAS) intends to strengthen the control of the Russian publicity market. It was notified by Andrey Kashevarov — Deputy chief of FAS.

According to him, in the near future the market will be divided in segments depending on the publicity bearers. In April 2006 the FAS will create the relative register of the advertisers subject to this division. For today the FAS cannot accuse of monopolism any Russian publicity venture, because the market share of the greatest advertiser “Video International” does not exceed 30%/ At the same time in some segments of market (publicity by TV, outdoor advertising) the shares of companies can reach 65%, what is already subject to the antimonopolistic regulation.