Usually “deserters” return in April

The law “On advertisement” provoked growth of the advertising market
Today advertising market, perhaps, is the friskiest child of economy. Having been born quite recently, it quickly grows, and for the last year it “put on weight” of 25 percents. By initial estimations of the Association of advertising agencies, its volume amounted to nearly 95 million US Dollars against 70 million US Dollars in 2006. Besides, this indicator turned out to be by 5 million US Dollars higher than forecasts, but, in opinion of experts, it is no surprise. “The last “accord” of beer manufacturers influenced market growth very much, when they tried to attract maximum attention on the eve of entering into force of a new statutory wording “on advertisement”, — explains the executive director of the company “Starcom Mediavest Group” Petr Popelushko. The specialist points out, that the movement in this segment was determined not only by future difficulties of separate big advertisers: “Brewers were the first among Belarusian producers to acknowledge, that marketing activity is a good way of strengthening not only positions of commodity, but also conquering a big part of the market”. 
The head of the Association of advertising agencies Igor Samkin notes, that on the whole expectations of boomers respectively market growth proved true. “It would have been surprising, if total figures would have become less than forecasting, — he explains. — Today the market simply collects something, which was lost in the previous years during the forced downtime”. 

As in the last years, the suppressing part of the advertising market formed at the expense of foreign advertisers — producers of goods. However, experts note, that so far as development of the national economy more enterprises believed in truth, that advertisement is a mover of trade. The part of the national advertisers at the market grows irrepressibly, and their structure gradually changes. If the brewers were market “pioneers”, they were gradually joined by the representatives of fish, meat and dairy industry. As a matter of fact, exactly these companies now occupy vacant places in the media space after the brewers left them. 

A new statutory wording “On advertisement”, which entered into force in the end of November, put into operation the classical market mechanism: limitation of the production volume at the growing demand led to the fact, that the sellers of advertising space began increasing prices. This reaction was rather predictable and it didn’t leave any variations for the advertiser.

In point of fact, specialists began talking about future increase of prices for advertisement in all advertising carriers without exception immediately after changes in the advertising legislation. TV-channels lifted their prices to a greater extent in comparison with the others — by 20–30 percents, outdoor advertisement at an average got up by 10 percents. And radio stations and printed Mass didn’t practically overview their prices. However, according to assurance of the specialists, this is a temporary event — already in the first quarter of 2008 FM-waves and printed words will got up by 10–20 percents. 
Media inflation touched upon advertisement positioning in Belarusian Internet-portals, but on a selective basis. Many little and middle web-resources increased prices twice. And, for example, portal TUT.BY, accumulating nearly 80 percents of Belarusian Internet-advertisements, only overviews a price. According to the media director of the enterprise “Reliable programs” Natalya Silvanovich, from March the price for these services in the company will increase by 15–20 percents, and this means, that all electronic advertisement in Bynet will get up. Those Belarusian portals and sites, which didn’t yet lift prices, will have to make it following the leader. “Placement of banners (media advertisement) on big areas in Internet becomes more expensive, the cost of the contact doesn’t increase, but the audience grows, — points out Natalya Silvanovich. — As for context advertisement, the demand for it grows quickly: more and more companies understand its effectiveness”.

As specialists note, media inflation was influenced by three factors minimum. Firstly, the demand for advertisement, which increased sharply and which even outstrips the supply. It is especially noticeable on the advertising market of Bynet, which, in distinction from other segments, grows by 80–90 percents per year. More and more companies make sure, that Internet-advertisement, expertly placed and relatively cheap, is more profitable, than many traditional carriers. 

Secondly, from the beginning of the last year, the cost of lease of office premises increased, transport expenses of the companies, and media market tries to shift the expenses to the shoulders of the clients. Thirdly, the audience of advertising sites grows each year, and this means, that advertisement there is more effective. 

“It is logical, that advertisement, which works better, should cost more. Here everything is interrelated: attendance increased — effectiveness of advertisement increased, prices got up, profitability increased — consequently, the quality of advertisement grows”, — says the deputy director of Kosht.com resource Elena Kachanovskaya. 

On the whole, prices for advertisement in January increase traditionally, and annually in the first months of the year 18–20 percents of advertisers go away from boomers. To March-April all “deserters” come back. Here an amusing mechanism is switched on — from one hand, local lowering of profitability takes place, but owing to new prices and attraction of new clients turnovers of advertising areas increase by 50–80 percents per year.

Anna Bondarchuk
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