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Online advertising is thriving in Russia

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Published on Tuesday, 22 March 2011 14:00

The Russian online advertising market grew by 42% in 2010. Experts point out that the contextual advertising market continues to grow while traditional media advertising market continues to decline.

In 2010, the online advertising market in Russia recorded the greatest growth (42%) among the developed countries as well as in BRIC (China - 35%, in

India - 31% and 30% in Brazil). Market growth in Russia was much higher than in the U.S., Canada, and Europe. According to J'son & Partners Consulting, the growth rates were the lowest in those countries due to market saturation.

The Russian online advertising market growth is mainly due to a steadily increasing number of Internet users which is in turn due to the growing number of broadband access operators (especially in regions), reduction in rates and the input threshold for new users.

Increasing popularity of online videos, a larger number of portals with video content, and their growing audience (thanks to the increased bandwidth of communication channels) are all contributing to the growth of online advertising market. Contextual advertising is gaining popularity since, according to J&P, advertisers stayed loyal to this type of advertising (that gives them direct sales) even during the economic downturn.

In 2010 the share of contextual advertising reached 56.1% (used to be 53.7% in 2009). And traditional media advertising continued to decline (down to 34.1% in 2010 from 37.5% in 2009 - more than a 3% drop).

Video advertising is growing as well, it reached 7.6% in 2010 (used to be 7.3% in 2009).

Source: internet.cnews.ru