WORLD PRESS TRENDS - World Association of Newspapers

RUSSIA
ADVERTISING EXPENDITURE & ECONOMIC DATA
Main economic indicators 1995-2001
1995 1996 1997 1998 1999 2000 2001
1 US$= 29.17 Roubles at 2001 rate
Gross Domestic Product (Roubles billion)
at current prices 1,540 2,146 2,479 2,741 4,767 7,302 9,041
% change 152.2 39.3 15.5 10.6 73.9 53.2 23.8
at 2001 prices 9,081 8,562 8,620 7,466 6,993 8,871 9,041
% change 3.0 -5.7 0.7 -13.4 -6.3 26.9 1.9
Gross Domestic Product per capita (Roubles 000)
at current prices 10.4 14.5 16.8 18.7 32.7 50.2 62.6
at 2001 prices 61.3 58.0 58.6 51.0 48.0 61.0 62.6
Population
Millions 148.1 147.7 147.1 146.5 145.6 145.5 144.4
Consumer Price Index
2001=100 17.0 25.1 28.8 36.7 68.2 82.3 100.0
% change 197.5 47.7 14.7 27.7 85.7 20.7 21.5
Ad.spend as a % of GDP
0.24 0.25 0.33 0.46 0.30 0.32 0.42
Advertising Expenditure Growth (%)
at current prices 14.3 31.3 33.3 -7.1 -56.0 44.3 55.9
at 2001 prices -20.1 -0.2 31.3 22.0 -39.8 36.5 33.1
Source: IFS, ZenithOptimedia
Advertising expenditure
(US$ million, in current prices)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Newspapers 220 280 350 350 190 240 310 380 450 470 480
Magazines 130 170 250 220 70 100 160 210 340 410 450
Television 300 400 550 480 190 270 480
Radio 40 60 70 80 30 45 55
Cinema 0 0 0 0 0 3 4
Outdoor 110 140 180 170 92 165 275
Internet 0 0 0 0 1 3 4
Total 800 1,050 1,400 1,300 573 826 1,288 1,920 2,715 3,420 3,775
Source: 1995-2001 RARA (Russian Association of Advertising Agencies), 2002-2005 ZenithOptimedia
Notes: Includes agency commission, excludes production costs, after discounts
Research
Circulation is audited by: The National Circulation Service (NCS).
NCS’s auditing service is entirely voluntary. Each title that has
had its circulation certified gains the right to print the NCS logo
next to its circulation statement, thus confirming the adequacy
of circulation data and allowing advertisers to assess the true
potential of the title as an advertising vehicle. However, the
NCS does not yet have much authority in the publishing market.
As of March 1 2003 only 128 newspapers and magazines certified
their circulations.
Readership is measured by: TNS Gallup Media and COMCON-
Media.
Methodology:
TNS Gallup Media (National Readership Survey – NRS)
This continuous research is based on 28,000 interviews in
Moscow and 50,000 interviews in the regions. The research measures
readership for around 80 national and 750 regional and
local newspapers and magazines. Results are supplied quarterly.
COMCON-Media (Russian Target Group Index – R-TGI)
This survey is conducted four times a year from an annual
sample of 16,000 households and 36,000 respondents. The
universal set includes Russians aged 10 and older residing in
cities with populations over 100,000, or 60.4 million people.
Research is conducted in 60 cities representing all 12 macroregions
of Russia. Information is collected through selfcompleted
questionnaires with publication logos.
Taxes
VAT on: sales 10% advertising 10%
newsprint 20% plant 20%
composition 20%* (standard VAT rate 20%)
* All except publishing and editorial services, for which a 10%
VAT is charged.
There is a 5% tax on advertising and bill posting.
What is the tax rate on profits for newspapers The tax rate on profits
is 24% (7.5% to the federal budget and 16.5% to the regional
budget), for newspapers as well as other private companies.
Are there specific tax concessions for newspaper companies Tax
concessions are provided for by RF Law No. 2124-1 about mass
media information and RF Law No. 191-93 on state support of
mass media and publishing in the Russian Federation.
Subsidies
Are there subsidies for the purchase of newsprint There are some
reductions on rent for regional and local mass media.
In accordance with the Federal Law On Economic Support of
WORLD ASSOCIATION OF NEWSPAPERS - WORLD PRESS TRENDS 2003 231