Incomes of the Internet-advertising: the first rating of the companies in Russia

25.03.08

With the announcement of preliminary results of 2007 leading Internet-companies of Russia, the estimation of volume and structure of the Internet-advertising market became possible. The interrogation of experts has led to unexpected results: banner advertising still is the most demanded.

The Russian market till now is far from a transparency. Only two companies are public it is RBC and Rambler. "Yandex" and "Begun" also have opened the size of own proceeds. Begun in the middle of the last year was a part Rambler. The others do not publish data about volume and structure of the incomes. The estimations received from experts of proceeds of the companies had some disorder, therefore arithmetic-mean parameters are included in the table below.

Volume and structure of incomes of Internet-companies in Russia, 2007 in million dollars

 * Parameter of volume and structure of proceeds of the company - an average estimation of the experts 

 ** All data without taking into account the VAT 

 *** Text blocks, advertising in video, SMS-payments, sponsorship of sections, accommodation of price-lists and other

This rating does not reflect all volume of Internet-companies business, it is the incomes received only from advertising, and the proceeds from the Internet-services which at some players is rather significant are not considered. By virtue of information closeness of the companies the collected data cannot apply for high-grade research, but are indicative. According to the received figures, 48,7 % of the Internet-advertising market in Russia is necessary on banner placements (206,9 million dollars), 42,5 % - on a context (180,6 million dollars) and 8,8 % on other Internet-advertising (37,3 million dollars). Total amount of the market is estimated in 424,8 million dollars

As participants of the market mark the general sensation of prevalence of contextual advertising has been caused by subjective factors. So, the perception of scale of contextual placements is substantially deformed by fact that the same incomes are considered twice, there is so-called  "double effect ". Networks of contextual advertising ("Yandex", "Begun" and Google) and their sites-partners report about high sales. Though, as a matter of fact, often it is a question of the same money which, passing through providers, get to owners of small sites on which references are placed.

Arrival to networks of contextual advertising traditional advertisers is not mass. In the foreign markets more than 50 % of all contextual advertising are necessary on the Internet-media or others Internet-projects. Leaves, that contextual advertising today is substantially advertising the Internet-companies, instead of representatives of traditional business.

The share of banner advertising in 2005-2006 was really reduced under pressure " new " contextual advertising.  However in second half 2007 the situation has changed - demand for banners has started over again to grow advancing rates.

Efficiency of banner advertising is recognized even in the companies which are traditionally guided a context.  Banner advertising allows capturing a wide audience and solves image problems.  As a whole contextual and banner advertising are effective. The choice of the advertiser depends only on the purposes of an advertising campaign. However, many analysts converge in opinion that gradually a side between contextual and banner Internet-advertising will disappear. The market of Internet-advertising can annually grow on 50 % and more on an extent of several years. Thus rates of growth contextual and banner advertising will be leveled, and the border between them will be washed away.