RACA, the Russian Association of Communication Agencies, reports that it is only the Internet that has shown increased advertising revenues in the first six months of 2009. In particular, the figures rose by 5% to 3-3.2 billion rubles. The Association evaluated only costs on media advertising that includes web banners, floating ads and other ad formats. With account of contextual advertising that comprises thematic links in search results and on profile pages, the Internet sites earned 8.6 billion rubles from January to June 2009, according to Mr Lev Gleyzer, Yandex Media Products Development Director and a RACA Expert Council Member. As assessed by MindShare Interaction, the media and contextual advertising costs increased by 5% to 7.79 billion rubles. Mr Gleyzer pinpoints that the Internet, thus, makes more money on advertising than the radio (4.2-4.3 billion rubles), the newspapers (3.9-4 billion rubles) and the magazines (7.5-7.6 billion rubles).
The results of the first half-year of 2009 show that television, the printed press and outdoor advertising have experienced a higher revenue decline rate than that of the first three months of the year. Mr Sergey Veselov, Market Research Director of Video International Analytical Centre, admits that this May and June proved most difficult for television, Russia's key advertising medium. As estimated by Video International Analytical Centre, TV channels' revenues from state advertising dropped by 22% and 26% this May and June, respectively. But as early as July 2009 the analogous figure was just 16 percentage points. Mr Sergey Piskarev, Director General of LLC Gazprom-Media, also marks a budding tendency for more activity in the TV advertising sector in the third quarter of 2009.
Basing on the TNS TV measurement data, the Initiative Agency figured that companies in most product categories were becoming more active in advertising on TV in 2009. Over the first seven months 16 out of 27 analyzed categories increased their volumes of TV advertising purchased. In particular, baby food manufacturers raised their volumes by 191% to 10.5 thousand GRP, tea manufacturers by 57% to 7.2 thousand GRP, manufacturers of flue and cold remedies by 29% to 17.7 thousand GRP.
Considering both the total and weekly advertising volumes purchased and the number of weeks during which a campaign lasts, Initiative Agency specialists point out several possible strategies to follow to have a TV presence. They also see the overall increase strategy prevailing this year, as brand owners increase both volumes of purchases and the duration of their advertising campaigns. Following this strategy, companies advertising cellular communication products, dairy products, hair care and makeup products purchased 30% of the total TV advertising volume in this January - July period, as compared to 2% in 2008.
Explaining the choice for the overall increase strategy, Mr Andrey Braiyovich, Aegis Media Group Managing Director, says that most advertisers reallocate funds to television as the most economical medium due to the cost of reaching the audience. Moreover, such companies intend to enlarge their market share through greater advertising activity during the current economic downturn.
This year the opposite strategy of overall reduction is being followed by manufacturers of household cleaning goods and skin care products, who are decreasing both advertising volumes and the campaign duration period. In January - July 2009 they accounted for 10% of the total TV advertising, as compared to 51% in 2008.
