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Moscow (pte035/04.02.2003/13:39) - As advertising in western countries stagnates, Russia has evolved to become the world's fastest expanding advertising market.
A broad range of advertising forms from billboards to neon signs and roadside videos are quickly changing the face of the Russian capital.
According to the Wall Street Journal (WSJ), advertisers in Russia are profiting from an economy boosted by the high price of oil, which remains the country's staple export. The last year saw a marked increase in equity prices, corporate profits and consumer spending, and a total economic growth surge of four per cent.
Advertisers have been quick to take advantage of this wave of prosperity. According to the Russian Advertising Agencies Association (RAAA), television ads made for the biggest increase, climbing 76 per cent to USD 900 million. In total, ad spending grew by 51 per cent to USD 2.68 billion (EUR 2.49 billion).
Russia's biggest advertiser is Wimm-Bill-Dann, a dairy and juice group with its headquarters in Moscow.
However on an international scale the total advertising budget remains small. Ad spending per person is only USD 19 compared to USD 500 in the United States. Analysts at ZenithOptimedia http://www.zenithoptimedia.com say Russian ad spending amounts to 0.6 per cent of what one would expect of a developed country.
In terms of relative percentage increase, however, Russia well exceeded the European markets, which have been stagnating or shrinking. The German ad market sagged by 5 per cent, while Britain and France saw a one per cent drop.
ZenithOptimedia predicts the Russian ad market will continue to grow by 41 per cent this year.
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