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Hester Abrams
London, Aug 5: When the snow melts at last, galoshes are put away and ice cream appears on the streets, advertisers in Russia sense a change of mood that could mean a lot for big brands.
"When summer is coming people are positive about the future. But when it changes to autumn and winter, people view the world very poorly, everything is bad," says Bruno David, general manager of Publicis Moscow. "The weather has a very big impact on Russians mind and mood. It affects sales and the reaction to advertising."
Such close attention to the rude Russian climate is part of a growing realisation among advertising agencies that "thinking globally and acting locally" in this vast market means seeing life through Russian eyes.
Russias booming advertising market is increasingly competitive. Russians are exposed to 43 minutes of advertising a day, agencies say, with cheap airtime producing a blizzard of TV commercials and local newspapers chock full of small ads.
But the multinational companies which have promoted London, Aug 5: When the snow melts at last, galoshes are put away and ice cream appears on the streets, advertisers in Russia sense a change of mood that could mean a lot for big brands.
"When summer is coming people are positive about the future. But when it changes to autumn and winter, people view the world very poorly, everything is bad," says Bruno David, general manager of Publicis Moscow. "The weather has a very big impact on Russians mind and mood. It affects sales and the reaction to advertising."
Such close attention to the rude Russian climate is part of a growing realisation among advertising agencies that "thinking globally and acting locally" in this vast market means seeing life through Russian eyes.
Russias booming advertising market is increasingly competitive. Russians are exposed to 43 minutes of advertising a day, agencies say, with cheap airtime producing a blizzard of TV commercials and local newspapers chock full of small ads.
But the multinational companies which have promotedgoods in Russia since the early 1990s are fighting to stay on top as consumers become more "ad-aware" and start yearning for goods that are sturdily Russian, not irrelevantly Western.
"The future growth of multinational advertising agencies lies in Russia and the developing countries. The two biggest opportunities are Russia and Ukraine," said Lance Price, regional managing director for DMB&B in an interview.
DArcy Masius Benton & Bowles (DMB&B), part of the MacManusGroup, had $86 million billings in Russia in 1997 and sees market growth of some 20 to 30 percent this year, even despite Russias volatile economy, Price said.
The Russian Association of Advertising Agencies calculates that overall advertising expenditure approached $2 billion in 1997. The market is "extraordinarily big and very empty," said Maxima Advertising Group chief Vladimir Evstafiev, its head.
"There are almost more proposals in Moscow than in Paris or London," Evstafiev said in an interview in Cannes, France. "I tell my clients togo to the regions because there are people there with money but not enough proposals."
Agencies say growth will come from the hundreds of international companies which have not yet posted a brand presence in Russia.
But some sense saturation, saying sales of some goods have slowed up to 40 per cent this year in Russias financial crisis.
"All these people have bought a lot of products, but the middle class is not spending enough," says Christophe Marchal, client services director Russia and CIS for Omnicom Groups DDB Needham. "Its about making a choice between buying a pair of really expensive Reeboks, buying a kettle or going on holiday."
Amid a cacophony of foreign brands, consumers are switching on to the familiar sounds of Russian "produkty" (products).
"If you look for an exhaustive list of all Russian brandsyou would come down to 10," said DDBs Marchal. "But there has been a comeback of...Russian origin. They say If its from Russia, its natural, its healthy, even if it canT be proved. We takethis more and more into consideration."
"Homo Sovieticus is a reality," said Publicis Bruno Davidin a telephone interview from Moscow. "There is a strong Russian identity and its clear that if they can defend it through the way they consume, they will."
Recent work by Publicis for Coca-Cola uses overtly Russian imagery based on the Firebird folk tale to promote the idea "Drink the Legend". It aims to make an historic association for Coke to parallel brand values that made it an icon in the West.
The Coca-Cola campaign and insights about the effects of the weather on Russians moods resulted from Publicis "Insight Mining" research which explores the perceptions and cultural references of people facing a revolution in consumption.
Publicis has since applied the technique to other brandslike Diageos Beefeater gin and to consumers in Greece, Bulgaria and Kazakhstan.
"Russians make decisions very quickly, but at the same time they are really idealistic. Some brands talk to one side or another, but rarelyto both," Bruno said.
"Insight Mining gives marketers an opportunity to understand what is irrational in consumers. Nothing is obvious here."
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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