Russian Internet Advertising Market Booming

The Russian online advertising market doubled again in 2007 to US$369 million and is expected to reach $685 million in 2008.

Search and contextual advertising accounted for US$210 million or 57% of total spending while display (banner) advertising spending was US$159 million or 43%.

The combined revenues of two largest Russian internet companies, Yandex and Rambler, is expected to reach US$232 million in 2007, or 63% of the Russian internet advertising market. It's estimated that Google (GOOG) earned US$10 million in Russia in 2007 that is less than 3% of the total advertising market and about 5% of contextual advertising market.

Top online advertisers comprised the following industries:

1) Mobile communications - Beeline, Megafon, MTS (MTSC)

2) Automotive - Nissan (NSANY), Toyota (TM), Peugeot, Volvo

3) Mobile phones - Nokia (NOK)

4) Consumer goods - Wrigley (WWY), Procter & Gamble (PG)

5) Technology - Intel (INTC), IBM (IBM), Microsoft (MSFT)

6) Telecommunications - Comstar

7) Retail - Eldorado, M-Video, Evroset, Technosila

8) Financial services - Citibank (C), Maxwell (MXWL)

In display advertising spending automotive accounted for 25% of the total spending, consumer good companies 18%, telecommunications and financial services companies 11%.

Comments

[athenian:]

It would have been more helpful if the writer had indicated how investors might cash in on this huge increase in internet advertising. For example, is VIP a possible beneficiary of advtg revenues?

2008 Feb 10 11:08 AM

[Russian Bus...:]

By the nature of my business I have a healthy exposure to Russian Community in the USA. Even in our local advertising (catering largely to the Russian community, obviusly) the trend has been mopwing from mom and pop cleaning businesses to large corporations placing their ads in the magazines.

2008 Jul 19 01:32 AM