Without digital channels company promotion impossible - Marketing industry in Serbia totals RSD 44, 3 billion, business profit on the increase of 6, 9%

In 2012, 206 marketing industry representatives in Serbia generated almost four hundred million euros of business profit.

The Taboo magazine conducted analysis which later showed that, divided into eleven specific groups, in line with their core activity; they ended 2012 with RSD 44. 307.372.000 of business profit thus generating a 6, 9% growth compared to 2011.

These data refer to 206 legal entities which is significantly less than in 2011 when the analysis comprised 370 companies– specialized agencies operating at the marketing services market that year. Among other reasons, (bankruptcy, liquidation, headcount, etc.) the main reason was (non) acceptance of description of business and profit structure check so the shown business profit is not the real profit at the marketing services market in Serbia since it would, definitely, be higher - Taboo says.

Still, not all communication sectors contributed to the overall profit of RSD 44,3 billion in the same way. The largest funds were generated by media design, programming and realization, term and financial advertising plan, with RSD 18,073 billion. To sum it up, these are agencies buying advertising spare and selling it to companies.

This means these agencies participated with 41% in total profit and the market communications agencies with 24%. Probably a surprising data, but according to the ones Taboo represented at the Marketing event 2013, PR agencies generated only 2% in the overall profit.

On the other hand, this sector of agencies increased by 2,6% while the market communications agencies increase by 19%, digital marketing 25,1%. The sports marketing sector generated the biggest growth of 26, 7% last year.

These trends prove companies turn more to new media, internet promotions and social networks. Still, according to Jovan Stojanovic, director at Direct Media, which received the Full Steam Ahead Award for the seventh time in a row for the best agency for media design, programming and realization, term and financial advertising plan in Serbia, television is not endangered in clients' eyes (companies or entrepreneurs).

Television still gets the biggest funds

- Television is not loosing its position because in the situation of lower marketing budgets, people play safe and television is a safe media. It is the practice not only in Serbia but worldwide. The increase in television popularity happened to us in 2009 when the crisis hit. Namely, television, with a decreasing trend then, increased by five percentage points. It is not loosing its first position because people do not have funds, they do not buy newspaper, they consume less some other media which have to be paid - Stojanovic says for eKapija.

Still, neither he can neglect the rising influence of internet and new communication media as well as digital promotions channels.

- Internet is developing and has a generic growth which certainly has to be taken into account since it is a new media but, according to my opinion, it does not develop as fast as it was expected which is caused by the economic situation - director of Direct Media adds.

He explains that some other processes in internet development compensate for its influence on television and therefore television remains a dominant media.

The fact that media rent prices do not decrease prove that majority of companies nowadays cannot do without advertising. The situation will remain the same while there is a demand.

- Practically, when you divide the available budget with the rating score, you will get the average price which is higher than the price clients pay. It is our mutual fault - a collocutor of eKapija says.

The price of media rent is the same as it was in the previous years and the director of Direct Media, Jovan Stojanovic forecasts the situation will be the same in the upcoming period as well.

Where the highest salaries are?

Although it was thought that salaries in PR sector are high, they are actually a bit above the average in the country. According to Taboo’s data, the average net salary per person in the agencies for media was RSD 77.363, in the market communications agencies RSD 55.390, research agencies RSD 62.567, PR agencies 46.475, while the staff in digital marketing agencies received RSD 39.685 on the average.

Who is the best?

Yesterday at the Marketing event 2013 manifestation the most successful companies in the world of marketing were awarded.

Apart from Direct Media, the Punom Parom Napred award (the Full Steam Ahead award) went to Ipsos Strategic Marketing, in the category of the agencies for market and public opinion survey.

The Represent Communications received the PR award and Initiative FB received the digital marketing award. The best company for meetings and fairs was Beogradski sajam while Beoexpo system was awarded for fair performances, trade events and exhibitions.

The Represent Communications agency was awarded seventh time in a row since the award was introduced in 2006.

- Changed business terms and thus communication terms imposed a need to expand our business to integrated communications but also to, through implementation of a wide range of new services and approaches to information placement, prove once more we are a step ahead of the market. - Jelena Kovacevic, General Manager at Represent Communications said at the award ceremony.

She added that the Represent Company will make a significant step forward towards digital promotions channels but that it will also focus on increasing their regional presence.

Jelena Djelic