AKAR: Internet advertising is growing rapidly

The Expert Council of the Association of Communication Agencies of Russia (ACAR) summed up the development of the advertising market in Russia in the first half of 2006 and stated that the Internet advertising segment, as before, grew at the highest rates: it increased in volume by 80%. Moreover, the growth of Internet advertising turned out to be more significant than the most optimistic forecasts of ACAR - only 70% growth was predicted to the market.

So, according to ACAR, the volume of the Internet advertising market, more precisely, its media part, in the first half of 2006 was $ 45 million, which, as already mentioned, is 80% more than in the first half of 2005 ($ 25 million). A positive trend began to be traced back in the first quarter of 2006, when advertising on the Web grew by 75% compared to last year.



Recall, by 2010, ACAR promises the Internet a five percent share in total advertising budgets. These 5% correspond to the state of things in the developed countries, where online advertising is now 4-5 % and receives.



Elena Kolmanovskaya, editor-in-chief of Yandex , notes that AKAR still includes only media (banner) advertising in its report: “Meanwhile, the entire Internet advertising market in Russia is significantly larger. Thus, according to experts, in 2005, the total volume of this market reached $ 100 million. The contextual and display advertising segments increased as follows: about $ 60 million advertisers spent on the purchase of display advertising (+ 71% compared to the previous year), and the remaining $ 40 - on contextual (+ 120%). "

“It’s obvious that contextual advertising is growing faster than media advertising, and at current rates it can catch up with it already this year,” says Elena. “As for the current growth rate of display advertising on the Internet, they are probably related to the activity of FMCG brands that have recently realized the Internet as a convenient tool for promoting their products and services.”

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At the same time, Elena noted that the Internet still remains an underestimated advertising medium. “That is, Internet advertising could grow even faster,” she says.



As for the other media carriers, the composition of the top three among them is traditional: TV, print media, outdoor advertising. The volume of the TV advertising market was $ 1430-1450 million, having grown by 35%. The press received $ 700-720 of advertising turnover and an increase of 14%. Outdoor advertising - $ 460-470 with 29% growth.