Why All The Interest In Russia? Try 10x Online Ad Growth In Next Decade


We’ve definitely noticed increased interest in the Russian internet market, marked notably by Google’s (NSDQ: GOOG) acquisition of a contextual ad firm from Rambler and the planned IPO of Yandex, the Baidu.com of Russia. It’s not hard to figure see what all the fuss is about. A recent report said the Russian online ad sector grew 73 percent last year. Geopolitics aside, the future looks bright too. In a new report, Lehman analyst Viktor Shvets predicts the online ad market there to grow from around $400 million in 2007 to $4 billion by 2017. (If you add other non-Russia Russian speaking states, the total is $5 billion) As a percentage of total ad spend, he predicts it will grow from 4 percent to 13 percent.

Some other highlights from the long report (and chart is below), which delves into such areas as GDP growth and commodity prices after the jump

— “Google



Odnoklassniki.ru recently reached a major milestone of 20 million registered users. They are catching up with Yandex and Mail.ru in spite of the fact that the site is only two years old. So is Vkontakte.

Christian Santiago

The russian market is exploding/expanding – no pun intended. Income and consumer expenditure are increasing rapidly while inflation and unemployment are at ten-year lows. Foreign Direct Investment is also at an all time high – was something like $33B in 2006. Bolshoe Spasibo.

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