Every fifth advertising Agency in the country has reduced some of the staff because of falling advertising market, the survey of the Association of communication agencies of Russia (ACAR). The most popular measure to reduce costs among agencies was a reduction of rental payments — this technique is used by 71% of respondents.More than 20% of advertising agencies had already resorted to layoffs because of the crisis in the industry and pandemic coronavirus, according to the survey conducted by the Association of communication agencies of Russia (ACAR), whose results are reviewed by “b”. A survey made in two waves, March 26 and April 21. A month ago about the cuts said only 14% of respondents. In the first wave were interviewed 117 members of AKAR, the second — 78.Most agencies are faced with the transfer of the client’s budgets at a later date (87%), reduction (57%) or cancellation of new contracts (59%). Customers 54% of agencies have moved or canceled their advertising tenders. “For agencies huge risk — it is the pressure from customers and dumping: advertisers are demanding discounts, relieve the budgets, asking for every penny, and the margin was so low. This will force people to reduce and degrade the quality of services”,— said a top Manager of one of the agencies from the top ten.Salaries while cutting depending on their size, said the source “b” in another major communication group: most of all, to 25%, cut employee benefits with a large income, and people with low wages reduction is not affected. At the same time and working day is reduced proportionately — for example, the maximum salary reduction for the quarter is accompanied by a reduction of the working day by two hours, said the source “Kommersant”.Communication group ADV (fourth place for the procurement of advertising, according to Adindex) reviewing the budgets for training and internal events, discussing with landlords changing conditions and reduces costs “so as to keep the composition ADV”, reported in its press service.A significant drop in the advertising market will be consequences for all participants, including from the point of view of staff reductions, adds a representative of ADV: “Understanding these risks, we initiated the inclusion of industry in the list of the most affected sectors”. The founder of ADV Dmitry Korobkov has previously estimated the decline of the advertising market in the second quarter at more than 30%.In advertising groups OMD OM Group, Publicis Groupe Media Russia and Media Direction Group declined to comment in Dentsu Aegis Network GroupM did not respond to requests to “Kommersant”.”Catastrophic and unprecedented contraction of demand and falling revenues, according to our calculations, could lead to the loss of more than 40% of people employed in the industry,” wrote earlier, the head of “Business Russia” Alexey Repik economy Minister Maxim Reshetnikov.In the first quarterdediny the results only for TV commercials: for the seller of National advertising Alliance (NDA) in the first quarter of 2020 sales of TV advertising increased by 3% over the same period of 2019. As earlier wrote “Kommersant”, according to the forecast from foreign investment banks, at the end of the year 2020 will fall in the segment of Internet advertising, which has always maintained double-digit growth even during the crisis. Goldman Sachs analysts, in particular, the predicted drop in online advertising in Russia by 3% with the overall decline of the advertising market by 15%.Valeria Ledebev
