Advertising Spotlight: Russia in 2015

Our advertising spotlight for June is focused on the sprawling nation of Russia, the largest nation in land mass in the world. Russia is home to the sixth-largest economy, possessing numerous natural resources, a diverse industry base and a well-educated population. With a growing urban middle class and strong market for reaching consumers via digital and traditional forms of media, Russia’s advertising opportunities are promising and geared toward expansion.

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Research indicates that traditional media in Russia is stronger than the global average. Reports predict that the Russian media market will become the fifth-largest TV advertising market in the world, behind only the United States, Japan, China and Brazil. Likewise, the TV advertising and internet access share of the Russian media market was projected with stable increases by almost 50 percent from 2010 to 2015.

Additionally, the opportunities to reach customers via mobile are expanding. Despite Russia’s sprawling land mass, the infrastructure lacks a low-cost postal service, reliable air, rail and road distribution channels. This perhaps explains the rapid adoption of digital technology by Russian consumers. Home to over 53 million internet users, Russia boasts the largest internet marketing audiences in Europe.

Landscape

Russia’s land mass is 1.74 times that of the United States and covers nine time zones. The population is concentrated in the western part of the country, far away from major cities such as St. Petersburg and Moscow. Aside from those large cities though are 10 other Russian cities with populations above one million that offer plenty of opportunities to reach stable middle-class customers.

In 2010, the Russian media market grew by 13 percent and is estimated today to be worth $35.7 billion USD. Between 15 and 25 percent of the country’s 144 million citizens belong to the middle class, expected to grow by 16 percent by the year 2020. Sales have risen by an average of 57 percent for U.S. companies that have designated Russia as their largest international market, compared to India at 38 percent, China at 26 percent, and Brazil at 19 percent growth. Among the BRIC economies and a recent entrant to the WTO, Russia is identified an emerging economic powerhouse with numerous advertising opportunities within.

Media Outlet Showcase – Izvestia

Izvestia is one of the most traditional and influential newspapers in Russia. Started in 1917, the newspaper is now published daily with a circulation of over 359,700 nationwide. Readers respect and trust Izvestia for its journalistic objectivity and professional analysis of major domestic and international issues. Politicians and top executives throughout Russia appeal to Izvestia as a quality news source that contains in-depth coverage of events that grab national attention.

If you would like to learn more about advertising in Russia or Izvestia, contact us.

Sources:

http://www.forbes.com/sites/christinemoorman/2014/02/18/the-riddle-of-marketing-in-russia/

http://www.comscore.com/Insights/Press-Releases/2013/3/comScore-Releases-2013-Europe-Digital-Future-in-Focus-Report

http://www.pwc.com/gx/en/entertainment-media/publications/pwc-outlook-on-russia.pdf

Image via flickr.com