The segment ended the year with half the country’s media advertising budgets and positive dynamics – Sostav.ru

The segment ended the year with half the country’s media advertising budgets and positive dynamics

March 2 12:00

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According to RACA, the total advertising budget on television in 2014 increased by 2% compared to last year and amounted to 159.8 billion. rubles (excluding VAT) in absolute terms, of which 155.7 billion. rubles was spent on advertising on terrestrial television. The volume of advertising budgets in the cable and satellite segment is much smaller – 4.14 billion. (Excluding VAT).

The total budget for television advertising segment in 2014 and dynamics by 2013.

Source: ACAR

These ACAR testify advertising on television – one of the three segments of the Russian advertising market, which managed to finish 2014 with a positive trend in advertising budgets in relation to the previous year. TV company made radio (+ 2%) and Internet (+ 18%). It is worth to mention that online advertising pulled in plus its contextual part (27%), media component showed -5% compared to last year. Television is still the most important segment of the entire Russian advertising market, gathering nearly half (47%) of all media advertising budgets in the country.

However, at the end of 2014 the dynamics of the television segment (as well as all of the advertising market of Russia) compared to the previous year was the lowest in the last five years (after 18% in 2009). Over the years, the situation changed several times – from double-digit growth, along with the Olympics in Sochi in the first months of the year, then – decline to zero in the second quarter, 3% – in the third, and finally, the last quarter shows a negative trend (-2% ).

The volume of advertising budgets on terrestrial television for months in 2011-2014., mln. rubles. VAT

Source: Analytical Center Vi

The decline in activity at the end of the year advertisers came as no surprise – in October and November 2014 to assess the situation any sensible person realized that the Russian economy from a state of uncertainty confidently goes to the crisis, the depth, duration and consequences of which today is difficult to estimate or predict.

There are many reasons, it is enough to look at the “steep dive” quotations oil prices, exchange rate dynamics and the headlines of the news resources, “difficult situation in the east of Ukraine”, “The next round of sanctions West towards the Russian Federation “,” Economic Development / CBR revised forecast of Russia’s GDP downward “,” Annual inflation in Russia exceeded the & lt; a two-digit number & gt; percent “, etc. etc. Therefore, a total of 2014 for the advertising market in Russia with the positive dynamics of the budgets of 4% (at least in rubles) in the current general economic conditions can be estimated as at least as normal. In dollar terms, the Russian market fell by 9%.

We now return to the state of advertising on television in 2014, consider the behavior of the largest advertisers and categories of goods and services to which they relate. The balance of power between the groups as a whole television advertisers to 2014 shows a decline in the share of TOP 10 and the increase in the share of the “41+” – this trend is maintained for the past four years, but in the past year, the fall was the most strong (4 pp.).

portion of the budget group advertisers with federal placement of television advertising in 2012-2014.,%

Source: Analytical Center Vi

If we look at how the situation developed in the framework of 2014, we will see that this reduction had just the same for the last quarter. Ie negative trend in advertising budgets on TV at the end of 2014, of which we spoke earlier, largely due to decreased activity of the largest TV advertisers in the top ten, with a few exceptions, mostly concerning pharmaceutical or having such activities of the company.

It is caused by the expectation of whether such a strategy to reduce consumer activity, the desire to reduce costs with the confidence and recognition of their status or any other reason? We do not undertake to approve. But the fact that it directly or indirectly manifested in the form of lower sales and loss of market share, is the fact, especially in the case of advertisers FMCG.

portion of the budget groups with federal placing advertisers TV advertising in the 1-4 quarter. 2014,%

Source: Analytical Center Vi

Consider the top of the largest categories of goods and services in terms of advertising expenditure, which was formed at the end of 2014 For the second year in a row leader “Medicine and Pharmacy” – more than 20% of the TV advertising market (the federal arrangement), 19% increase in advertising budgets by 2013.

It is also the most successful in the dynamics of advertising expenditure 2014 include the category of “Cars”, “Trade Organizations”, “Financial and Insurance Services”, “Leisure, entertainment, tourism and leisure”, “media” and “Cellular Phones.” Advertising budgets for these groups showed a positive trend compared to the previous year. Advertising budgets of most categories presented FMCG advertisers, on the contrary, decreased.

the total budget and the dynamics of individual product categories at the federal placement of television advertising in 2012-2014., Bn. Rub. VAT,%

Source: Analytical Center Vi

About how the situation will develop in the future, objectively speaking difficult. We are convinced that the experts’ assessments will vary during the year when new input. We can say that if the economic and foreign policy situation in the form in which it exists at the moment, expect a positive trend change in the advertising market (and in television advertising segment, in particular) in the near future is not necessary.

In the Commission of Experts ACAR Vi are: Marketing Research Director AC Vi Sergey Veselov (coordinates the work of the Commission as a whole), head of research at the Internet AC Vi Alexei Belyaev (working group on the Internet), Head of Regional Studies AC Vi Roman Kuznetsov (working group on regional markets). Also in the working groups on specific media segment: Head Radio Tatiana Pesyukova Vi, Vi head Plasma Ilya Alekseev (indoor), CEO IMHO Vi (till 01.03.2015) Maxim Osipov (internet), consultant AC Vi Alexander Efremov (press), Deputy Director Marketing Research AC Vi Alexey Popov (cinemas), AC Vi expert Alexander Karpushkin (cable and satellite TV).

Text: Alexander Karpushkin expert AC Vi