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Market volume of $474 million

AKAR logo Advertisement placement expenses have reached almost $9 billion in 2007, with $2.4 billion more going to various marketing services (promotions, mailings, etc), according to Kommersant newspaper, which quotes the Russian Communication Agency Association (RACA). Moreover, RACA does not take into account the expense of middleman service, context internet advertisement, and PR expenditures. If all of these were to be included, the total volume of Russia’s advertising market in 2007 has reached $13.7 billion.

According to RACA, the advertisement market volume has grown by 26 percent in 2007, reaching 228.7 billion rubles, or about $8.95 billion. Internet media marketing grew the strongest, increasing by 92% and reaching 5.8 billion rubles, or $227 million. Segments with smallest growth were advertisement in the press and exterior ads.

Russian advertisement market volume in 2007

Type of media:

Advertisement expenditures
(billions of rubles) - 2007

Advertisement expenditures
(billions of rubles) - 2006

Growth %

Television

112,5

85,9

31%

Radio

15,7

12,5

26%

Print media

51,9

44,6

16%

- newspapers

11,6

9,4

23%

- magazines

23,4

19,2

22%

- advertising publications

16,9

16

6%

Outdoor

40,4

33,1

22%

Internet

5,8

2,9

92%

Other media

2,4

1,8

33%

- indoor media

1,9

1,3

46%

- cinema advertising

0,5

0,4

25%

TOTAL:

228,7

180,9

26%

RACA 

In estimating the total advertisement market volume, RACA is listing the amounts received by media companies, not including middlemen, creative agency fees, and amounts budgeted on ad development. “Usually, these expenses are 10 percent or less of what media companies receive from advertisement”, says RACA Vice President Vladimir Evstafyev. If one were to sum up these expenses, it would turn out that advertisers spent an additional $895 million in 2007. Moreover, RACA is not taking context internet advertisement into account, which in 2007 sums up to $225 million, according to iContext, and $247 million according to MindShare Interaction. So, RACA is ignoring about $2.4 billion from its calculations. And according to RACA and MindShare, the volume of Russian internet advertisement market amounted to $474 million.

18.03.2008

English version