TV commercials market to shrink 17%

UrBC, Moscow, October 22, 2015. Russia’s TV commercials market is expected to shrink by 17% by the end of the year, Interfax refers to Vi as claiming.

‘We can see the prices have grown stable now, and the situation is predictable on the whole,’ Vi Director-General Sergei Vasilyev said at the Dentsu Aegis Network conference recently.

Vi expects the commercials market to sag by 17% this year, even though the forecast made in December 2014 spoke of the less optimistic 25% to 40%.

The company feels the market will decrease by another 7% after a 10% fall in September, a 14% fall in August, and a 21% fall in July. The forecast for November is -6%. At the start of the year, however, the decline stood at 25%.

‘It turns out the market was over-cautious. Things are not looking so glum after all,’ Vasilyev said.

This year was peculiar that contracts were signed for a short term (one to three months). As a result, accounts had to face air time shortage and price increases.

‘This is the outcome of TV channels being over-cautious,’ Vasilyev says.

The company does not have a forecast for how the TV commercials market will behave in 2016, but the seller plans to use Gazprom Media Holding’s Dmitri Chernyshenko’s forecast of a 3% growth as a guideline. According the Vi’s Director-General, the market ‘might stay at the same level or go up a little.’

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