Russian Communications Consultancies Association Report: PR suffered from crisis less than expected. Russian PR market volume in 2009 reached $1,99 billion. 2010 forecast calls for 12% growth.

Russian Communications Consultancies Association (ÀÊÎS) reveals financial results of PR industry in Russia in 2009 and forecast for 2010.

After a very rapid development in 2007-2008, when market size reached $ 1,75 and $ 2,5 billion respectively, representing 43% growth, in 2009 Russian PR market suffered from global financial crisis. In the beginning of 2009 AKOS predicted yearly market size reduction by 28% to $1,8 billion. However Russian PR market fell in 2009 26,8% less than expected originally. Actual drop compared to 2008 was 20,5%. Total Russian PR market size in 2009 reached $ 1,99 billion.

Among the most popular PR services in 2009 were crisis communications, public affairs, consumer marketing and corporate communications. These practices were impacted to a lesser extent: by 12%, 15% 17% and 18% accordingly.  During the downturn companies placed special emphasis on using PR tools as most effective for achieving such objectives as positive reputation building, relations with governmental bodies and promotion of their products and services among consumers.  

The crisis very much affected financial communication (-35%), B2B (-30%) and internal communications (-25%). Financial, real estate, automotive and luxury sectors suffered under a substantial pressure, while PR budgets of pharmaceutical, energy and IT companies were stable or showed growth in 2009.

«Beginning of 2009 was marked by a heavy reduction of PR expenditures, however in the last quarter some growth was to see. So, at the year-end the market reached $1,99 billion. Forecast for 2010 is positive: we expect 12% growth, — Elena Fadeeva, AKOS Chairwoman, General Director of Fleishman-Hillard Vanguard says. — This year, we expect marketing communications, CSR, governmental relations, healthcare and digital communications to develop better than other PR types. Digital PR deserves a special mention, as it has shown impressive growth of +25% over 2009 and will continue to grow in 2010 (+25%). Nowadays digital communications are becoming increasingly important not only for B2C marketing, but also for corporate reputation management».

According to forecasts, B2B marketing and internal communications budgets will stay stable in 2010. In case of further financial markets recovery, AKOS expects reducing of crisis communications and growth of financial communications.

General tendencies of PR development in Russia correspond with European trends. According to European Communication Monitor 2009by 2012 European companies will extensively use above all such services as corporate communications, public affairs, internal communications and crisis management, including CSR.

The global trend of increasing PR share in total marketing budgets will continue in Russia in 2010. One of the reasons for this is increasing investments in digital communications.

* PR market volume — cumulative PR budgets in Russia, including implementation by both PR-agencies and in-home PR departments/press-offices. The number include all PR costs, among them PR professionals' and third-parties' expenditures.

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