Blog about successful marketing strategies in russia

What does the TV commercial market in Russia look like?



Share this Post

Good day!

For Russian consumers nowadays TV commercials are the most common contact with advertising. Different studies demonstrate that TV and the Internet have the broadest audience reach. So today we will be talking about TV commercials.

Russian TV audience

Since the beginning of the 2000s, the proportion of Russians who watch TV daily has decreased, while in the 1990s we observed growth in TV audiences. This decrease is mostly among young people from 15 to 24 years old, while for the older generation respondents this percentage has increased. This can be seen from the survey data table.

Source: Levada-Centre

It can be deduced that the decrease in daily TV audiences has been caused by the development of Internet technologies in Russia. Nevertheless, according to the results of the survey “Where do Russians get the news from?» (held among people aged 18 and above in 130 towns of 45 regions), it turned out that that TV is still the main source of information, not the Internet, 88% against 21%.

Russian television has a strict categorization of 3 groups of channels according to the age of the audience.

The first group is for the older generation and includes 5 channels. Four of them focus mostly on the female audience – «1st Channel», «Russia», «TVC» and «Culture», the last one – «NTV» - concentrates on the male audience. The second group is channels for young people, they are «TSN» and «YNT». The percentage of girls is only slightly higher than young men. The third group of channels is for the middle-aged audience and includes «Ren-Tv», «5th Channel», «TV-3» (mostly male audience) and «Home» (mostly female audience).

TV commercials in Russia: what determines the cost

Depending on the region and population size, commercial placement costs can differ a lot.

In big cities with a population of 100 000 and above the cost depends on the rating. It means that in big cities the advertiser pays for GRP (Gross Rating Point), but not commercial airtime (minutes).

The rating is the average number of people who watched the TV program at one time or another, expressed as a percentage of the total number of members of the audience taking part in this research, i.e. civilians aged 4 and above in cities with a population of over one hundred thousand people.

As long as small population centers do not have any telemetering, only commercial airtime (minutes) is being sold there.

It’s more progressive and effective to sell TV advertising by ratings. The main advantage of advertising by GRP is the opportunity to pay for guaranteed contact with potential customers, and not airtime. Sales by ratings also allow advertisers to choose the target audience.

Also, in contrast to advertising by minutes, the seller is responsible for ensuring that the campaign reaches the necessary GRP number, and if it does not happen, the advertiser gets money back or receives additional GRP as compensation.

How are TV ratings being measured? Who is measuring it?

For TV rating, a special panel has been created. This panel has the same general demographic characteristics as urban Russia, taking into account gender, age, education, number of children, and social status). In Russia this panel consists of 4000 households, which is about 10 thousand people.

For this measurement a peoplemeter, (which looks like a remote control) is set up at the house of the respondent. Each member of the family has a fixed button. Pressing this button transmits a signal of every movie, TV series or TV program viewed to a computer centre. This data is then used to calculate the ratings.

TNS Media Intelligence Company measures the ratings in Russia. As of today the data provided by TNS Russia is acknowledged as official. Commercial placement costs for big cities depends directly on this rating.

Russian TV channel ratings

According to the latest figures of TNS TV company research staff, the top-10 TV channels in Russia are as follows:

Source: TNS Russia, the first half of year 2013 figures, Russia

TV channel daily average percentage according to TNS for the time period of 7.10.2013 — 13.10.2013 (Russia) is as follows:

The top-100 programs for last week (7.10.2013 — 13.10.2013) in Russia looks like this:

You can see the full list at TNS channel.

Focusing on these indexes, we can choose the most popular channels and time for placing a TV commercial.

Also I would like to bring your attention to White Papers 'How does the media-buying market in Russia work? A media buyers’ quick guide for effective work in Russia. Our E-book is written for professional international media buyers. All professional media buyers are very familiar with their local market and its characteristics. But when they are faced with the challenge of entering a new market, they need to have a grasp of the peculiarities of this new arena.

About the Author

Vadim Tylik – Russian entrepreneur, Founder and President of the RMAA Group. Vadim helps foreign companies to develop and implement marketing strategies in Russia and CIS region, create performance based media campaigns in order to expand more effectively on the Russian market.

Author Vadim Tylik