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Media advertising market falls back to 2004 level
Lithuania's media advertising market contracted by 39% in 2009, wiping out the gains achieved during a few preceding years and returning to the level of 2004. In 2010 only internet advertising volumes are seen posting a recovery, while the whole market is expected to shrink further.
According to the media market monitor firm TNS LT, the country's main advertising channel TV suffered a 37% revenue decline. However, the deepest falls were posted in the paper and magazine market (47-49%) prompting the closure of an array of titles.

The reason is all too well known: in order to reign in costs, companies slashed advertising budgets. In turn, advertising channels cut their rates that resulted in competition not only within the same channel but also among channels.
A recent specialist poll by TNS LT shows that the market expects a further 14% decline this year, ranging from a modest 10% fall for TV to a more serious 16-18% for papers and magazines.



The Finnish marketing agency B9 established rep offices in Estonia, Poland and Russia this spring in order to benefit its Finnish customers who consider the whole Baltic Sea region their home market.
"The Estonian advertising market itself is quite small, especially when compared to that of Russia, so we are not expanding there for economic reasons," says Jari-Pekka Rau-tamaa, CEO and majority owner of B9 to news2biz. "We just want to have people in every market that our clients consider important." "About 130-140 of Top 500 Finnish companies consider the whole Baltic Sea region their home market," adds Mr Rautamaa. "This is the reason why B9 developed its network strategy, that is to be present in each country bordering the Baltic Sea."
B9 already had offices in Copenhagen and Stockholm in addition to the head office in Helsinki. This spring, the firm established joint ventures with three peers in order to add another three countries to its network.
In Tallinn, B9 is partnering with the Estonian marketing agency Ra-kett, in Moscow with Twiga Communications Group, and in Warsaw with Red 8 Communications. The Finnish company has majority shares in B9 Tallinn and B9 Warsaw offices, and a minority share in B9 Moscow.
"Rakett was the best choice as they have a lot of experience in dealing with the Finnish customers, but also a proficient team and an impressive portfolio," says Mr Rau-tamaa. Rakett was established by designers who left one of the leading agencies Zoom Ogilvy (currently Taevas Ogilvy) in 2003, and they have provided advertising campaigns for such Finnish companies as Elisa, Sampo Pank, Valio and Paulig.
No workforce will be recruited into B9's overseas offices; the joint ventures will use the current employees of the local agency.


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