We knew Russia’s online economy was booming compared to the rest of Europe, and now here’s an extra slice of proof: the online advertising market in the country grew 55 percent year on year to 14.7 billion rubles (£292.9 million) in 2008, according to a report from Mindshare Interaction, via Yakov.
Contextual ads represented 8.9 billion rubles (£177.3 million), or 60 percent of that figure while display ads made up the rest, generating 5.8 billion (£115.5 million). Car manufacturers, consumer goods companies, telcos and home appliance makers were the main spenders on the display side in an economy that may be unique in Europe in looking forward to sustained, significant growth in online display ad spend.
– Slowdown in 2009: So that was 2008, but what of this year? MindShare estimates the Russian online ad market will grow five percent in 2009 — a massive reduction in growth and some way behind Forrester’s recent prediction of a Europe-wide online ad spend growth of 10 percent.
– Emerging markets: Russia’s still a good bet for your investment however: Publicis is on track to generate 25 percent of its revenues from emerging economies like China, Brazil and Russia by 2012. A report from research firm Tagline predicted Russia’s online marketing spend would rise to anything between $1 billion (£687 million) and $1.5 billion (£1.03 billion) during 2008. But no one should be in any doubt that even in emerging markets, the days of 55 percent annual growth in online ad spend are well over.