Russian adspend to fall 10%

28 May 2009

MOSCOW: Adspend levels in Russia will decrease by at least 10% this year, following on from a decline of 30% in the first quarter, Aegis Media predicts.

This forecast was made by Kiril Matveyev, a director of Aegis Media, while speaking at a conference in the country, where he also stated that online will be the only medium to register growth this year.

Overall, TV ad revenues fell 20% in the first three months of 2009 according to Sergei Vasiliyev, director of Video International, as small-and-medium-sized firms slashed their outlay by 52%.

By contrast, the top 50 advertisers boosted their budgets by 15%, helping TV perform better than both print and outdoor, where spending slid by 35% and 42% respectively, according to the Russian of Association Communications Agencies.

Vasiliyev argued that "the bottom will be hit in June and July, with a volume decline of 25% to 30%. And then, in the fourth quarter, things will get better, and we will see volumes down around 17 percent, like we saw in April."

Alexei Katkov, commercial director for, Russia's most popular web portal, also estimated that internet adspend will at least remain constant this year, at around 1.2 billion rubles ($38.5m; €27.6m; £24.0m).

He argued that, prior to the downturn, around 50% of Russian advertisers employed targeted advertising, but 90% are now attempting to do so, and to achieve this, they were "certainly not going to use TV," but turn to the internet.

Martijn Peeters, of PricewaterhouseCoopers, also warned that "almost every industry in Russia is affected by the crisis, and consumer behavior has completely changed."

Data sourced from Moscow Times; additional content by WARC staff