Online advertising expenditures were up 56% in Russia in 2011, overtaking print ads for the first time. The internet presently accounts for 16% of ad spending in Russia, still a far cry from TV ad dominance.
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Web ads in the UK overtook print in 2010, and eMarketer projects the same in the U.S. in 2012. eMarketer estimates online advertising spending in the U.S. will grow 23.3% in 2012, to reach $32 billion, while print ads are expected to bring in only $22.8 billion. Still, like in Russia, TV ads are still dominant, and will remain that way for the time being. U.S. TV ads brought in $60.7 billion in 2011, and is expected to grow to $72.0 billion by 2016.
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In Russia, the biggest web advertising gain came from contextual ads, which attracted 63% percent more expenditures. Print saw the slowest gains, only seven percent, though the entire Russian ad market was up 21% in 2011. Though, web ads are still being used three times less than TV ads, according to the Russian Association of Communication Agencies. Also, Yandex, Russia’s most popular search engine, was up 60% in sales growth in 2011, but is expected to be down 15-20% in 2012. Google retained roughly 25% of the Russian search engine market in 2011.
Broadband adoption has been growing amongst the ad-targeted Russian middle class, and roughly 43% of the country’s population is online. These numbers have been rising steadily, according to Google public data.