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Eastern Europe
May, 2018 www.intellinews.com I Page 17
Internet catches up with TV on Russian ad market
IntelliNews Pro
In 2017 Russian advertising market grew by 14% year-on-year to RUB417bn ($7.3bn), posting
the second year of growth in a row, according
to Association of Communication Agencies of Russia (AKAR).
While TV placements remained the largest segment of the market with RUB171bn (up by 13%), Internet advertising almost caught up increasing by 22% y/y to RUB166bn and beating TV market in terms of growth pace for the second consecutive year.
The largest part of the Internet segment was promoting search content on which RUB73bn was spent (up by 25%), followed by advertising in the
social media and mobile apps with RUB58.9bn (up by 19% y/y).
AKAR expects Internet to beat TV in 2018, follow- ing the general global trend. Internet segment is also characterised by higher proportion of SMEs advertisers.
In the meantime Out of Home segment grew by 9% to RUB41.9bn, out of which outdoors remained the dominant media with RUB33.8bn (up by 8%). Digital displays is the main driver of growth in the segment, but the share of digital displays remains at 18% in Russia and 30 in Moscow, on average, below the global average of 35%.
Sales of connected appliances jump in Russia
IntelliNews Pro
Sales of Internet-connected household appli- ances such as refrigerators, washers, dryers, and other jumped by 50% in Russia to 1.2mn units, Vedomosti daily said on April 3 citing the data by M.Video retailer. In monetary terms the sales gained 70% to RUB29bn ($0.5bn).
The share of connected appliances in total sales of devices in Russia increased from 3% in 2016 to 2017. This is in line with previously reported trends of growing sales of "smart" devices and
growing availability of mobile connectivity.
M.Video representative commented to Vedomo- sti that smartphone penetration allows to fully utilise the functionality of the Internet of Things, such as remote control, real time updates, etc.
The product line of such devices is constantly growing, while the prices are falling by 20-
30% annually. The trend was also confirmed by Samsung representative in Russia to Vedomosti.