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News

Internet threatens Russian TV ad market

Internet advertising could overtake TV in terms of volume in Russia as soon as next year.

Data produced by the Association of Communication Agencies of Russia (AKAR) and published by Kommersant predicts that the country’s ad market will grow by 13-14% this year to a record R400 billion (€5.74 billion).

Internet, which has the highest growth rate, will have almost caught up with TV in volume terms, being worth R75 billion, as opposed to TV’s R80 billion.

The National Advertising Alliance (NRA) meanwhile says that the ad market increased by 14% to R190-192 billion in the first half of this year, and unless something extraordinary happens this is likely to be repeated in the second half.

Despite these trends, there have been doubts expressed about the internet overtaking TV in 2018 due to the growing cost of TV advertising. This is fixed by the NRA and was increased by 15% at the start of this year.

However, it has proved to not be enough and another 15% increase is planned for the beginning of 2018.

Source: Broadband TV News.