Advertising spending in Russia in 1Q19 stood at RUB111bn ($1.7bn), the growth of the ad market slowing down to 4% from 13% for the same quarter of 2018, Kommersant daily reported citing the data of Association of Communication Agencies of Russia (AKAR) on May 21.
Internet advertising continued to outperform the market at 18% to RUB51.5bn, but also slowed down from 22% seen in 1Q18. TV advertising declined by 6% to RUB42bn. Last time a decline in TV ads was registered in 2015 following a sharp ruble depreciation in December 2014.
"We can say that the advertising market has finally caught up with the actual economic situation," Sergey Veselov of AKAR commented, adding that given the real income decline of 2% seen in the first quarter, 4% growth of the ad market was "decent". Veselov also attributed steady growth in the market seen in 2018 to introduction of new technologies.
Russia's largest internet majors Yandex and Mail.ru also reported a decline in advertising revenues, to 18% of RUB27bn for Yandex and to 19.3% to RUB7.3bn for Mail.ru.
Overall the advertising market grew by 12.4% to RUB469bn in 2018, with Dentsu Aegis Network expecting growth in 2019 not to exceed 4.5%, according to Kommersant.