Russian print and online media expected to lose about 2B rubles once bans on alcohol and tobacco advertising are enacted, industry officials say

Nevin Barich

MOSCOW , October 19, 2012 (RBC News) – Russian print and online media are expected to lose some RUB 2bn (approx. USD 64.34m) after the ban on alcohol advertising comes into force on January 1, 2013, and an anti-tobacco law, which will be reviewed today in a cabinet meeting, is enacted, RBC Daily reported today.

Tobacco and alcohol advertising is already banned from radio and TV, as well as transportation and outdoor advertising. Tobacco companies are expected to channel RUB 788m (approx. USD 25.58m) into advertising in 2012, while alcohol advertising amounted RUB 1.21bn (approx. USD 39.32m) in 2011. Overall, losses incurred by print and online media are expected to total in the range of 4.5%-5% of their $42bn-$43bn advertising revenue.

Tobacco companies have long been prepared to face an advertising ban, and publishers do not seem to be alarmed by such prospects, market players pointed out. Only specialized tobacco publications have tough times ahead of them, but such titles are few in Russia.

(c) 2012 RosBusinessConsulting

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