The Current State and Future Outlook of the Russian Media
Reports published by the Public Affairs Office of the Federal Agency on Press and Mass Communications of the Russian Federation (Rospechat) shed light on the current state and future prospects of the Russian media. Particularly concerning is the situation in the printed press industry.
Over the past years, the number of newsstands in Russia has decreased by 31.5%, from 42,000 to 28,900 units. The printed press in Russia has experienced a significant decline in advertising revenue, losing approximately 60% of the market share due to legislative initiatives and imposed restrictions in the last 2.5 years.
The discontinuation of state subsidies for subscription delivery in March exacerbated the situation. As a result, the average national subscription circulation of newspapers and magazines dropped by 20.2% in the second half of 2014 and by 22% in the first half of 2015, according to data from the Federal State Unitary Enterprise “Russian Post.” Some regions in the Russian Federation witnessed an even steeper decline, exceeding 100%.
While the retail revenue of the printed press has remained relatively stable since 2013, this is primarily due to a significant increase in prices, which rose by approximately 20% throughout the year.
It is interesting to observe that a decreasing number of media channels is sufficient for the modern Russian citizen to access information. The RosIndex study conducted by Synovate Comcon company reveals that the percentage of individuals relying on just one or two media channels is increasing. In the first half of 2014, this figure stood at 38.3%, marking a growth of 5.4% compared to the previous year. On average, individuals in Russia tend to engage with approximately three media channels.
As depicted in Figure 1, a significant majority of readers opt for printed versions of newspapers. This preference is supported by the findings of a recent study conducted by the Russian Public Opinion Research Center, which revealed that 73% of the adult population in Russia is not prepared to completely abandon printed press in favor of electronic media. Furthermore, 51% of the audience consistently chooses print media.
Despite challenges, there are encouraging trends in the Russian press market. The annual “Sales Leader” competition organized by the Press Distributors Association (PDA) has identified numerous newspapers and magazines that have experienced successful circulation sales and revenue growth between 2013 and 2014.
Here are the top 10 Russian publishers based on the total audience of newspapers, measured in thousands of people and as a percentage of the population in 2014:
| Publishers | 2013 | 2014 | ||||
|---|---|---|---|---|---|---|
| thous. people | % | No of ed. | thous. people | % | No of ed. | |
| Komsomolskaya Pravda | 10 780.7 | 17.9 | 5 | 8 675.8 | 14.3 | 4 |
| Argumenty i Fakty | 7 074.4 | 11.8 | 3 | 6 168.9 | 10.2 | 3 |
| Bauer Media | 6 277.1 | 10.4 | 3 | 5 100.5 | 8.4 | 3 |
| Moskovskiy Komsomolets | 3 807.0 | 6.3 | 3 | 2 922.3 | 4.8 | 3 |
| Metro | 2 436.2 | 4.0 | 2 | 2 384.7 | 3.9 | 2 |
| Press-Courier | 2 038.8 | 3.4 | 2 | 1 937.6 | 3.2 | 2 |
| Media Mir | 1 618.6 | 2.7 | 1 | 1 419.7 | 2.3 | 1 |
| Rossiyskaya Gazeta | 966.8 | 1.6 | 1 | 834.2 | 1.4 | 1 |
| Klaxon | 978.2 | 1.6 | 1 | 829.5 | 1.4 | 1 |
| Za Rulem | 1 025.0 | 1.7 | 1 | 822.2 | 1.4 | 1 |
The Average Issue Readership (AIR)* refers to the average readership of all editions of publishers in cities with a population of 100,000 or more, among individuals aged 16 and above (100,000+, 16+).
In the Russian media landscape, there are examples of publishers who successfully sell content and attract advertising for both electronic and printed editions. Additionally, Russian newspapers have embraced the symbology of e-media, incorporating concepts such as hashtags, geotags, and QR-codes.
Here is the rating of websites of news media that have federal printed versions as of December 2014:
| № | Site name | The audience of the site (‘000 people) |
|---|---|---|
| 1. | Kp.ru («KomsomolskayaPravda») | 11 964. 0 |
| 2. | Rg.ru («RossiyskayaGazeta») | 11 559.0 |
| 3. | Aif.ru («ArgumentyiFakty») | 8 503.0 |
| 4. | Forbes.ru («ForbesRussia», magazine) | 5 603.0 |
| 5. | Mk.ru («MoskovskiyKomsomolets») | 5 393.0 |
| 6. | Koinmersaut.ru («Kommersant») | 4 793.0 |
| 7. | Yedomosti.ru («Vedomosti») | 4 755.0 |
| 8. | Izvestia.ru («Izvestiya») | 2 693.0 |
| 9. | Dp.ru («DelovoiPetersburg») | 1 450.0 |
| 10. | Rbcdaily.ru «RBCdaily» | 868.0 |
At the end of 2014, the leading Russian newspapers displayed a mixed trend in circulation dynamics. Some experienced a decrease, while others maintained stability or even achieved growth. The circulation of Russian national weekly newspapers “AIF” and “KP” (W) declined by 5% and 7% respectively compared to the previous year. However, considering that these editions have a circulation of around 2,000,000 copies, the reduction is not critical, particularly in terms of advertising effectiveness. On the other hand, newspapers with smaller circulations face more noticeable impacts from such losses.
Here are the leading daily newspapers ranked by Average Issue Readership (AIR, Russia)*:
| № | Name of publication | 2013 | 2014 | ||
|---|---|---|---|---|---|
| thous. people | % | thous. people | % | ||
| 1 | Metro (Daily) | 1 882.0 | 3.1 | 1 788.2 | 3.0 |
| 2 | Rossiyskaya Gazeta | 966.80 | 1.6 | 834.2 | 1.4 |
| 3 | Moskovskiy Komsomolets | 1 068.9 | 1.8 | 788.1 | 1.3 |
| 4 | Sport-Express | 440.90 | 0.7 | 354.0 | 0.6 |
| 5 | Sovetskiy Sport | 473.20 | 0.8 | 348.8 | 0.6 |
| 6 | Izvestiya | 277.40 | 0.5 | 291.6 | 0.5 |
| 7 | Kommersant | 261.50 | 0.4 | 200.5 | 0.3 |
| 8 | Vedomosti | 143.40 | 0.2 | 166.4 | 0.3 |
| 9 | RBC (newspaper) | – | – | 152.4 | 0.3 |
Free newspapers constitute a significant segment of print media. In 2014, the Metro newspaper witnessed a notable increase in its daily audience in St. Petersburg, with an additional 16,000 readers, reaching a total of 730,400 readers. The performance of Metro newspaper in Moscow was even more impressive, as it achieved a 15% increase in average daily circulation during the fourth quarter of 2014. This growth aligns with the upward trajectory of advertising revenues for the publication. Following closely in the TOP 3 are “Rossiyskaya Gazeta” and “Moskovskiy Komsomolets.”
Here are the leading daily newspapers ranked by Average Issue Readership (AIR, Moscow):
| № | Name of publication | 2013 | 2014 | ||
|---|---|---|---|---|---|
| thous. people | % | thous. people | % | ||
| 1 | Metro | 1177.5 | 11.7 | 1068.9 | 10.4 |
| 2 | Moskovskiy Komsomolets | 644.8 | 6.4 | 511.9 | 5.0 |
| 3 | Rossiyskaya Gazeta | 152.6 | 1.5 | 147.1 | 1.4 |
| 4 | Sport-Express | 157.3 | 1.6 | 126.3 | 1.2 |
| 5 | SovetskiySport | 198.8 | 2.0 | 116.0 | 1.1 |
| 6 | Vedomosti | 106.8 | 1.1 | 107.0 | 1.0 |
| 7 | RBC (newspaper) | 112.9 | 1.1 | 105.8 | 1.0 |
| 8 | Kommersant | 121.4 | 1.2 | 96.7 | 0.9 |
| 9 | Izvestiya | 105.1 | 1.0 | 91.0 | 0.9 |
| 10 | The Moscow Times | 21.1 | 0.2 | 33.1 | 0.3 |
* Daily newspaper «Komsomolskaya Pravda» is not involved in the project of TNS
Nevertheless, the primary benefit of free newspapers in the past, namely contextual advertising (PPC advertising), has largely shifted to the Internet. Additionally, the overall advertising market is also experiencing a decline, posing significant challenges for all free newspapers during this crisis. On one hand, there may be an increased demand for these newspapers among the public. However, on the other hand, the survival of free newspapers is threatened by the contraction of the advertising market, from which many of them depend on more than 90%.
The multimedia project of the revamped newspaper “Vechernyaya Moskva” has been showing promising development in the regional editions with the backing of the Moscow City Government. This project is projected to become self-sufficient by 2017. According to TNS Russia, “Vechernyaya Moskva” currently demonstrates the highest growth in the number of advertisers and advertising volume in the capital market.
Regional newspapers constitute a significant segment of the newspaper market. Almost every region in Russia includes at least two or three local newspapers among the most cited media (Top 10 of “Medialogia” company). Some of these regional newspapers receive support from the government. In 2014, a total of 215 social projects in regional and local editions received state support amounting to 49.6 million rubles. However, due to the limited amount of allocated funds, this support could not fully compensate for the subscription losses experienced by the regional press.
Simultaneously, there exist numerous success stories of socio-political regional and local newspapers that have achieved economic independence while maintaining editorial freedom.
Top weekly and monthly newspapers based on Average Issue Readership (AIR, Russia)
| № | Name of publication | 2013 | 2014 | ||
|---|---|---|---|---|---|
| thous. people | % | thous. people | % | ||
| 1 | Argumenty i Fakty | 6 393.2 | 10.6 | 5 538.5 | 9.1 |
| 2 | Komsomolskaya Pravda (w) | 5 325.7 | 8.9 | 4 528.9 | 7.5 |
| 3 | TV Program | 4 479.6 | 7.4 | 3 826.3 | 6.3 |
| 4 | 777 | 4 161.0 | 6.9 | 3 277.8 | 5.4 |
| 5 | Orakul | 2 188.0 | 3.6 | 1 802.8 | 3.0 |
| 6 | My Family | 1 618.6 | 2.7 | 1 419.7 | 2.3 |
| 7 | MC plus TV | 1 682.5 | 2.8 | 1 250.2 | 2.1 |
| 8 | 1000 Secrets | 1 321.1 | 2.2 | 1 241.0 | 2.0 |
| 9 | MK-Regnon | 1 497.8 | 2.5 | 1 182.1 | 2.0 |
| 10 | Express newspaper | 1 240.2 | 2.1 | 983.1 | 1.6 |
In 2014, the Russian media experienced significant losses with the bankruptcy of “Trud” newspaper, although it continues to be printed as a weekly publication. Furthermore, “The St. Petersburg Times” published its final issue on December 24th, 2014, resulting in a scarcity of English-language newspapers in Russia. These publications are not even available at international airports such as Sheremetyevo and Domodedovo. In contrast, airports like Rome offer a diverse range of newspapers in various languages, including an impressive selection of Russian press such as “Argumenty i Fakty,” “Komsomolskaya Pravda,” “Rossiyskaya Gazeta,” “Nezavisimaya Gazeta,” “Kommersant,” “Literaturnaya Gazeta,” and “Pravda.”
The magazine market in Russia appears to be vibrant and active. According to the Federal Service for Supervision in the Sphere of Telecom, Information Technologies and Mass Communications (Roskomnadzor), there were 31,714 officially registered magazine titles in the Russian Federation by the end of 2014. Throughout the year, 1169 magazines ceased publication, but 1960 new magazines were launched, resulting in a net increase of 791 publications. TNS Russia estimates that the combined audience of the top 20 magazine publishers in Russia amounts to 100 million people.
Top 20 Publishers by Total Audience of Magazines (AIR, Russia)
| № | Publishers | 2013 | 2014 | ||
|---|---|---|---|---|---|
| thous. people | % | thous. people | % | ||
| 1 | Burda | 17 848.8 | 29.7 | 16 045.3 | 26.5 |
| 2 | Hearst Shkulev Media | 13 505.0 | 22.4 | 11 800.2 | 19.5 |
| 3 | Sanorna Independent Media | 11 630.3 | 19.3 | 10 442.0 | 17.2 |
| 4 | 7 Days | 7 872.2 | 13.1 | 6 850.4 | 11.3 |
| 5 | ZaRulem | 7 732.0 | 12.9 | 6 487.6 | 10.7 |
| 6 | Bauer Media | 7 515.4 | 12.5 | 6 308.1 | 10.4 |
| 7 | Edipresse-Konliga | 5 707.0 | 9.5 | 5 660.4 | 9.3 |
| 8 | Toloka | 5 411.3 | 9.0 | 5 237.8 | 8.6 |
| 9 | Vokrug Sveta | 4 396.4 | 7.3 | 4 033.1 | 6.7 |
| 10 | Popular Press | 4 467.0 | 7.4 | 3 965.3 | 6.5 |
| 11 | Press-Courier | 2 512.1 | 4.2 | 3 414.3 | 5.6 |
| 12 | Axel Springer Russia | 3 441.2 | 5.7 | 3 284.2 | 5.4 |
| 13 | Zdorovye | 2 899.2 | 4.8 | 2 322.7 | 3.8 |
| 14 | Conde Nast | 2 327.0 | 3.9 | 2 234.3 | 3.7 |
| 15 | Bonnier Publications | 2 386.7 | 4.0 | 2 175.3 | 3.6 |
| 16 | Parlan Publishing | 2 001.1 | 3.3 | 2 138.0 | 3.5 |
| 17 | Forward Media Group | 2 021.6 | 3.4 | 1 512.9 | 2.5 |
| 1$ | Discovery | 1 475.0 | 2.5 | 1 403.5 | 2.3 |
| 19 | Afisha Industries | 1 345.5 | 2.2 | 1 360.4 | 2.2 |
| 20 | Moskovskiy Komsomolets | 1 488.9 | 2.5 | 1 306.2 | 2.2 |
*AIR – Average Issue Readership: The cumulative average audience of all editions of publishers in cities with a population of 100,000 or more, comprising individuals aged 16 and above (100,000+, 16+).
Similar to newspapers, magazines are actively expanding their presence in the online market and transitioning to digital versions.
There is a gradual decline in magazine circulation as a prevailing trend. In 2014, the most popular Russian magazine, “Antenna-Telesem,” had a single circulation of 2,796,000 copies, as evaluated by the Russian Audit Bureaux of Circulation. By comparison, the single circulations of other notable magazines were as follows: Cosmopolitan – 768,000 copies, Maxim – 166,000 copies, Men’s Health – 142,000 copies, and Ogonek – 91,700 copies.
Here are the top 20 monthly magazines based on Average Issue Readership in Russia.
| № | Publishers | 2013 | 2014 | ||
|---|---|---|---|---|---|
| thous. people | % | thous. people | % | ||
| 1 | Za Rulem | 7 170.6 | 11.9 | 6 108.3 | 10.1 |
| 2 | Cosmopolitan | 5 776.1 | 9.6 | 4 918.1 | 8.1 |
| 3 | Vokrug Sveta | 4 396.4 | 7.3 | 4 033.1 | 6.7 |
| 4 | Karavan Istoriy | 4 096.0 | 6.8 | 3 588.9 | 5.9 |
| 5 | I Like Cooking! | 3 319.6 | 5.5 | 3 003.4 | 5.0 |
| б | Lubimaya Dacha | 2 612.2 | 4.3 | 2 390.9 | 3.9 |
| 7 | Zdorovye | 2 350.9 | 3.9 | 2 322.7 | 3.8 |
| 8 | National Geographic Russia | 2 251.9 | 3.7 | 2 245.9 | 3.7 |
| 9 | Burdа | 2 411.4 | 4.0 | 2 170.9 | 3.6 |
| 10 | Top Gear | 1 898.5 | 3.2 | 2 038.4 | 3.4 |
| 11 | KaravanIstoriy Collection | 1 922.7 | 3.2 | 1 807.1 | 3.0 |
| 12 | Maxim | 1 981.0 | 3.3 | 1 591.0 | 2.6 |
| 13 | Eden of Your Home | 1 591.1 | 2.6 | 1 588.7 | 2.6 |
| 14 | Domashniy Ochag | 1 768.5 | 2.9 | 1 496.6 | 2.5 |
| 15 | Domashny Doktor | 1 537.4 | 2.6 | 1 475.7 | 2.4 |
| 16 | Lisa Dobrye Sovety | 1 985.5 | 3.3 | 1 474.1 | 2.4 |
| 17 | Discovery | 1 475.0 | 2.5 | 1 403.5 | 2.3 |
| 18 | Popular Mechanics | 1 336.4 | 2.2 | 1 298.3 | 2.1 |
| 19 | Glamour | 1 365.6 | 2.3 | 1 264.6 | 2.1 |
| 20 | Lisa Horoscope | 1 241.9 | 2.1 | 1 193.4 | 2.0 |
The state of printed advertising is far from satisfactory. In 2014, the advertising revenue of the print media market amounted to less than 39 billion rubles, representing an 11% decrease compared to 2013. The decline in advertising revenues continued in the first quarter of 2015, with a decrease of over 40%, as reported by the Russian Association of Communication Agencies (RACA or ACAR).
In 2014, “Rossiyskaya Gazeta” did not experience significant changes in its revenue structure. In comparison to 2013, the proportion of advertising revenue declined by 1%, accounting for 81% of total revenue. The remaining 19% was generated from retail sales and subscriptions to both the printed and electronic versions of “RG.” The share of advertising revenue from the printed version dropped to 87%, while the share from website advertisements increased to 13%.
Overall, there was a 9.6% decline in advertising income, which aligned with the rate of decline in advertising revenues observed across the Russian print media in 2014. The electronic version of “RG” saw a 13% decrease in advertising revenue, while the weekly newspaper “RG-Week” experienced a nearly 20% decline. However, advertising revenues for the Rg.ru website saw a 20% increase. Despite this, the growth in website advertising revenue was unable to offset the loss of revenue from the printed versions.
The lack of market transparency poses a significant challenge for the magazine and newspaper segments in Russia. According to experts, this factor plays a major role in the 11% decline in advertising revenues for magazines in 2014. Furthermore, it is anticipated that magazines may experience a further decrease of up to 30-35% in advertising revenues this year.
On the other hand, electronic editions are gaining popularity among advertisers. Globally, advertising revenues for electronic magazines are projected to reach $13.4 billion in 2016, comprising over a quarter (27%) of the total advertising revenues for magazines. This represents a notable increase from the 17% share ($8.4 billion) recorded in 2013.
The Analytical Center of Vi Company (ACVi) reports a 13.7% average decrease in advertising volume in the Russian national press for the period of October-December 2014, compared to the fourth quarter of 2013. Initially, these figures may not appear too concerning, considering the significant economic downturn experienced by Russia during that time. However, when comparing the monthly earnings of the national press in 2014 to the corresponding figures in the relatively stable period of 2013-2014, the overall situation becomes much more alarming.
When examining the dynamics of advertising revenues in the national press throughout 2014 in comparison to the average monthly figures from 2011-2012, the decline becomes more evident.
| Jan. | Feb. | Mar. | Apr. | May | June | July | Aug. | Sept. | Oct. | Nov. | Dec. |
|---|---|---|---|---|---|---|---|---|---|---|---|
| -14% | -11% | 15% | -15% | -22% | -22% | -23% | -21% | -17% | -24% | -31% | -30% |
The advertising revenues of the national press, excluding VAT, for the years 2013-2014, in million rubles.
| № | Type of edition | 2013 | 2014 | Dynamics, % |
|---|---|---|---|---|
| 1. | Newspapers | 6 118 | 5 455 | -10,8% |
| 2. | Magazines | 16 568 | 14 686 | -11,4% |
| 3. | Advertising editions | 2 463 | 1 645 | -33,2% |
| 4. | Total: | 25 149 | 21 785 | -13,4% |
The advertising market of the national press did not undergo any substantial shifts in the previous year. However, there were notable differences in the pace of advertising decline across various media types. Advertising publications experienced a decrease in volume, while weekly newspapers and magazines faced an even more rapid decline compared to daily newspapers and monthly magazines. Similar trends were observed in 2013, but the reduction in advertising was nearly half as significant.
Advertising revenues of different media types in the national press, for the years 2013-2014, in million rubles (excluding VAT).
| № | Type of edition | 2013 | 2014 | Dynamics, % |
|---|---|---|---|---|
| 1. | Daily newspapers | 3 314 | 3 126 | -5,7% |
| 2. | Weekly newspapers | 2 804 | 2 329 | -16,9% |
| 3. | Monthly magazines | 10 702 | 10 794 | -7,8% |
| 4. | Weekly magazines | 4 866 | 3 892 | -20,0% |
| 5. | Advertising editions | 2 463 | 1 645 | -33,2% |
| 6. | Total: | 25 149 | 21 785 | -13,4% |
The market share of advertising editions in the national press experienced a significant decline, reaching 7.6% in early 2015 (compared to 9.8% in 2013). However, it is worth noting that in regional areas, the market share is considerably higher. Additionally, the share of monthly magazines in the advertising market of the national press increased and approached 50%, resulting in a decrease in the share held by weekly editions.
The publishing niches in 2014 mirrored the trends observed in 2013, albeit with a more challenging overall situation. Women’s magazines experienced a shift from a zone with some positive growth to a moderate contraction in advertising. The dynamics of major niches such as TV guides and weekly mass newspapers also deteriorated.
However, amidst the general decline in advertising revenues, inflight magazines managed to not only remain in positive territory but also witnessed a significant increase in advertising revenues, reaching nearly 15%. As a result, this niche, consisting of just over a dozen magazines, moved up from the 12th to the 8th position in the leading publishing segments ranking. The “Gardening and Floriculture” segment also showed notable growth, although its size was relatively smaller.
On the other hand, the largest decline in advertising revenue, similar to 2013, was observed in editions related to computers, e-technology, and tourism. The volume of advertising in segments such as “Entertainment guides,” “Quality weekly newspapers,” and “Child care editions” experienced a similar decline in volume. The contraction in advertising revenues for business weeklies reached a record level.
The advertising revenues of national press editions categorized by thematic niches, for the years 2013-2014, in million rubles (excluding VAT).
| № | Type of edition | 2013 | 2014 | Dynamics, % |
|---|---|---|---|---|
| 1. | Daily newspapers | 3 314 | 3 126 | -5,7% |
| 2. | Weekly newspapers | 2 804 | 2 329 | -16,9% |
| 3. | Monthly magazines | 10 702 | 10 794 | -7,8% |
| 4. | Weekly magazines | 4 866 | 3 892 | -20,0% |
| 5. | Advertising editions | 2 463 | 1 645 | -33,2% |
| 6. | Total: | 25 149 | 21 785 | -13,4% |
The market share of advertising editions in the national press experienced a significant decline, dropping to 7.6% in early 2015 compared to 9.8% in 2013. However, it is important to note that in regional areas, the market share is considerably higher. Meanwhile, the share of monthly magazines in the advertising market of the national press witnessed an increase and reached close to 50%, resulting from a reduction in the share held by weekly editions.
The publishing niches in 2014 mirrored the situation seen in 2013, albeit with a general decline overall. Women’s magazines experienced a shift from a zone displaying some positive growth to an area of moderate contraction in advertising. The dynamics of major niches such as TV guides and weekly mass newspapers worsened. Despite the overall decline in advertising revenues, inflight magazines not only maintained a positive position but also managed to increase their advertising revenues by nearly 15%. This particular niche, consisting of just over a dozen magazines, climbed from 12th to 8th place in the ranking of leading publishing segments. Alongside inflight magazines, the “Gardening and Floriculture” segment also showed significant growth, although not as substantial. Conversely, the most significant decline in advertising revenue, as observed in 2013, affected publications focused on computers, e-technology, and tourism. The decline in advertising volume was nearly equal for the “Entertainment guides,” “Quality weekly newspapers,” and “Child care editions” segments. Business weeklies experienced a record contraction in advertising revenues.
The advertising revenues of national press editions across different thematic niches in 2013-2014, measured in millions of Russian rubles (RUB) and excluding VAT, were as follows:
| № | Thematic niche of press | 2013 | 2014 | Dynamics, % |
|---|---|---|---|---|
| 1. | Women’s magazines | 5 994 | 5 716 | -4,6% |
| 2. | TV guides | 2 446 | 1 967 | -19,6% |
| 3. | Weekly newspapers (mass) | 2 226 | 1 851 | -16,9% |
| 4. | Daily newspapers (“quality”) | 1 971 | 1 788 | -9,3% |
| 5. | Movies and celebrities | 1 162 | 1 064 | -8,5% |
| 6. | Men’s magazines | 1 260 | 1 044 | -17,1% |
| 7. | Automobile editions | 1 102 | 1 013 | -8,1% |
| 8. | Inflight magazines | 780 | 896 | +14,9% |
| 9. | Free editions | 954 | 856 | -10,2% |
| 10. | Interior, country-house | 939 | 823 | -12,6% |
| 11. | Employment | 989 | 790 | -20,1% |
| 12. | Business and socio-political magazines | 1 009 | 684 | -32,2% |
| 13. | Daily newspapers (mass) | 679 | 574 | -15,4% |
| 14. | Directories: construction, interior | 579 | 399 | -31,1 |
| 15. | Family, Child Care | 403 | 314 | -22,0 |
| 16. | Entertainment Guides | 371 | 280 | -24,6% |
| 17. | Educational Publications | 302 | 264 | -12,7% |
| 18. | Healthy Lifestyle | 237 | 194 | -18,2% |
| 19. | Editions with free ads | 287 | 183 | -36,3% |
| 20. | Gastronomic | 187 | 170 | -9,1% |
| 21. | Automobile ad | 260 | 148 | -43,2% |
| 22. | Young | 187 | 139 | -25,4% |
| 23. | B2B | 154 | 136 | -11,7% |
| 24. | Tourism and Travel | 176 | 129 | -26,5% |
| 25. | Computer | 148 | 109 | -26.4% |
| 26. | Weekly newspaper(“quality”) | 140 | 104 | -25,7% |
| 27. | Crosswords & Entertainment | 77 | 61 | -20.7% |
| 28. | Electronic equipment | 103 | 53 | -48,2% |
| 29. | Gardening and Floriculture | 27 | 34 | +24,6% |
| 30. | Total: | 25 149 | 21 785 | -13,4% |
In 2014, there were significant changes in the volumes and allocation of advertising budgets across major product categories. The share of the 20 largest advertisers increased to 24.3%, indicating their growing presence in the market. Additionally, the share of the 20 largest publishers reached 86.3%, highlighting their dominant position in the industry.
Here are the advertising budgets in the national press by product categories for 2013-2014, measured in millions of Russian rubles (RUB) and excluding VAT:
| № | Product category | 2013 | 2014 | Dynamics, % |
|---|---|---|---|---|
| 1. | Clothes, shoes, accessories | 2 761 | 2848 | +3,0% |
| 2. | Perfumes and cosmetics | 2 934 | 2 814 | -4,0% |
| 3. | Medicine, Drugs, Dietary Supplements | 3 371 | 2 799 | -17,0% |
| 4. | Cars and Accessories | 2 617 | 2 168 | -17,0% |
| 5. | Watches & Jewelry | 1291 | 1428 | +11,0% |
| 6. | Finance and Insurance Services | 1170 | 1187 | +1,0% |
| 7. | Real Estate | 994 | 780 | -21,0% |
| 8. | Furniture and Furnishings | 737 | 710 | -4,0% |
| 9. | Media and Special Events | 785 | 680 | -13,0% |
| 10. | Food and Drink | 666 | 580 | -13,0% |
| 11. | Construction Goods and Services | 590 | 487 | -18,0% |
| 12. | Appliances | 491 | 422 | -14,0% |
| 13. | Trade Organizations | 394 | 373 | -5,0% |
| 14. | Tourism and Leisure | 388 | 331 | -15,0% |
| 15. | Childen’s Goods | 355 | 304 | -14,0% |
| 16. | Computers, software | 361 | 248 | -31,0% |
| 17. | Audio, Video, TV, Photo Equipment | 190 | 129 | -32,0% |
| 18. | Sports Goods | 141 | 128 | -9,0% |
| 19. | Mobile Phones | 97 | 106 | +9,0% |
| 20. | Mobile Telecommunication Services | 98 | 81 | -18,0% |
| 21. | Household Chemicals | 114 | 68 | -40,0% |
| 22. | Alcohol Beverages and Beer | 100 | 30 | -70,0% |
| 23. | Social Advertising | 34 | 30 | -12,0% |
| 24. | Political Advertising | 11 | 10 | -5,0% |
| 25. | Tobacco Products | 621 | 0 | -100,0% |
| 26. | Others | 1535 | 1359 | -11,0% |
| 27. | Classified | 2 305 | 1685 | -27,0% |
| 28. | Total: | 25 149 | 21 785 | -13,4% |
In 2014, the Top 20 publishing houses witnessed an 11% decline in advertising income, while other publishers faced an even larger drop of 24%. Interestingly, the budgets of the Top 20 advertisers did not decrease; instead, they actually increased by 2%. However, the total budget of advertisers ranked 21-100 decreased by 3%, and budgets of advertisers beyond the Top 100 saw a significant decline of 20%. This implies that the shrinking print media advertising market poses a greater threat to small and medium-sized players.
The press distribution market also encountered its own set of difficulties. Many regional distributors faced economic challenges, leading to a reduction in sales points and an increase in outstanding payments to publishers for circulation. Consequently, publishers have had to impose limitations or even cease supply altogether.
Both federal and regional newspaper publishers have been facing significant challenges due to a sudden increase in delivery tariffs imposed by FSUE “Russian Post” in March 2014. This tariff hike resulted in a cumulative decrease of over 40% in subscription circulation nationwide during the second half of 2014 and the first half of 2015. Market participants have varying levels of pessimism when it comes to the future prospects of subscriptions, ranging from moderate to deeply pessimistic.
Another major issue contributing to these challenges is the rapidly increasing prices of paper and printing services. If the current economic trends persist, it is only a matter of time before the prices of printed media continue to rise, posing a significant problem for the industry.
In summary, the decline of the Russian print media market can be attributed to several key factors:
- Legislative initiatives implemented in the past year and a half.
- The devaluation of the Russian ruble against foreign currencies, leading to increased printing costs.
- Cessation of state subsidies, specifically for subscription delivery.
- Competition posed by web-based media platforms.
Considering the current situation, the report suggests a series of measures aimed at supporting the print media market. These measures aim to generate faster income growth, reduce production and distribution costs, and ultimately provide support to the print media industry. Some of these measures have already been put into action.
Source: adindex.ru