Rus News Journal

Commercial breaks are tightened

July traditionally it is considered a dead season for advertising agencies and mass-media. proda
  Commercial breaks are tightened
July traditionally is considered a dead season for advertising agencies and mass-media. Sales of advertising minutes, strips and surfaces usually fall till the autumn. But this year all on the contrary. The advertising market grows in the face of: the teleether is to the full hammered by rollers, and the prices for advertising time above, than in the winter.

the Litmus piece of paper
One cannot say that in Russia the industrial boom was observed. However manufacture growth on 10,3 %, provided basically easy, wood, machine-building and metallurgical branches, nevertheless is fixed. Advertising concerns not manufacture, and to service services, but on an industry condition depends directly. Advertisement makers consider that their business reacts to changes in economy, as a litmus piece of paper. The advertising market has reacted to crisis of 1998 one of the first, all the others have felt consequences of financial crisis a bit later.
the most optimistically set up advertisement makers consider that today`s growth of advertising is an operative reaction to economic lifting. Under forecasts of the Russian association of advertising agencies (RARA), the advertising volume in 2000 will exceed last year`s on 32 % - will grow c $760 million to $1 billion There are also more optimistical forecasts. The market will grow on 40 - 50 %, the president of the Russian branch of the International association of advertising Vladimir Evstafev considers. The matter is that in 1999 advertisers used budgets crisis 1998 - go. At first advertisers have frozen Them, having been frightened of crisis, and then have started to spend gradually. In 2000 for advertising are spent new the money allocated already in this year. However, to pre-crisis level this year not to return any more. Even the greatest possible growth will not provide level of 1997 when the advertising market was estimated almost in $2 billion
by the First market growth have felt on itself advertising agencies. According to the general director of agency Media - Arts FCB Ilya Slutsky, growth of quotations on various services, for example media planning or brand working out, averages 15 - 20 %. If the market grows former rates, considers Slutsky annual growth of quotations on advertising services will be such also.
agencies are filled up by work. One of the largest advertising agencies, Maxim during crisis it has been compelled to reduce the personnel. Now in profile editions it is possible to see announcements of vacancies in it and many other large and small agencies. On the average on 15 - 20 % have grown also salaries of advertisement makers. Under forecasts, by next year level of their incomes will return to the pre-crisis.
growth of sales of consumer goods warms up growth of advertising budgets and their more and more various use. So it is a lot of problems that the large agency serving interests of not less large advertiser, is engaged only in the cores. And within the limits of already developed campaign advertisers prefer to give different trifles to the small agencies concordant on modest compensation. Numbers of subcontractors are multiplied every day - their number comes back to pre-crisis level.

boards do not suffice on all
the Most indicative reklamonositelem always there was a television. Advertising on it became more and that is remarkable, among rollers of traditional advertisers - Nestle, Procter and Gamble and Unilever - there was an advertising of small Russian manufacturers. Thus advertising becomes any more only on the main things channels. Impressing growth has occurred, for example, on 5 - m and 38 - m channels MTV (see the table). The project started in last year, has started to bring dividends. However, an impressive part of advertising time on these channels rollers of advertisers unusual to a teleether - owners occupy the Internet - resources. Their business while hardly gives in to forecasting and consequently to speak about stable inflow of advertising on young channels rather early.
there are more than money from advertising began to receive radio and printing editions. Outdoor advertising which is considered least sensitive to changes by sector of the advertising market, also feels strong growth. According to the general director of publicity agent XXII century Vladimir Pantjuhina, the prices for rent of publicity boards correspond to level 1997 - go - first half of 1998 - $550 - 600 in a month for one surface the area 36 to sq. m. Thus a rent within the Garden ring or on Rublevsky highway can reach $1200 for the same area.
demand for outdoor advertising has so grown that boards began not to suffice. According to Pantjuhina, in 1998 in Moscow was 8 thousand advertising surfaces, and now their number has increased to 12 thousand scales of advertising campaigns Have increased also. If two years ago the appreciable advertising campaign in streets of Moscow has to capture not less than 50 advertising surfaces now the advertiser rents any more less than 150.
investments and in indirect advertising - direkt - marketing, various promotion and presentation actions have considerably increased. These ways of advancement of the goods are considered as more purposeful, than direct advertising, and demand thus much smaller investments. Advertisers have remembered them after August crisis. According to Slutsky, such redistribution of budgets has been caused by necessity to restore distribution networks. However advertisers have estimated advantage of indirect advertising and are not going to refuse it and today.
According to RARA, in 1997 direkt - marketing, for example, made 3 % of the market of advertising, in 1998 - m - 4, in 2000 it will increase to 7, and in 2001 - m - to 9 %. Investments in other kinds of indirect advertising also grow. The general director of agency of marketing communications mediamark Konstantin Isakov considers that in it the situation in the Russian market is similar to the European: One year ago in the German market the tendency of redistribution of budgets on direkt - marketing, sejls - promotion, sempling (distribution of samples) " was outlined; . Agency Leo Burnett and Moradpour this year even has founded for these directions separate agency Leo Pusch and Pull Russia.
Advertisers not only increase budgets, but also search for new ways of advancement of the goods. As well as in more developed markets, in Russia there were first samples of joint advertising: manufacturers Bosch recommend to erase in the cars only powder Ariel, and frying pans Tefal advise to us to wash only Fairy. The most impressing joint action - youth advertising PepsiCo and phones Bi the Line . According to advertisement makers, the campaign budget - is not less $1 million Such sums serve as the superfluous proof that the advertising market has reasons for optimism. And at advertisers - for new investments. Between the companies which advertising budgets make a market basis (for example, Unilever or Procter and Gamble), there is an original competition of budgets. As soon as one of the largest players of the market increases investments in advertising, the same should do and other comparable companies on turns. To smaller advertisers does not remain anything else how to follow their example - to put in advertising more and more, differently the advertising campaign will be simply imperceptible against the others and will not bring the necessary effect.
to predict, as will long last race of budgets difficult enough. Growth of the Russian manufacture yet amazes imagination, and purchasing capacity of the Russian citizens remains enough low. According to Vladimir Evstafeva, domestic buyers get not most advertised, and the cheapest goods is more often. Large transnational corporations are ready to be spent for a gain of the Russian market, including on advertising, for the future, expecting that investments will pay off in the future. However if sales start to decrease, Evstafev considers, large advertisers can start to save on advertising, waiting the best times.