Ukraine's advertisement market began after the breakdown of the Soviet Union and the beginning of liberalization of internal economic relations in 1991. The development of entrepreneurship in Ukraine determined the natural need of new companies in promotion of their goods and services, establishment of trade networks and distribution. These tasks are to be coped by advertisement agencies.

In Ukraine, the advertising activity is regulated by the Law of Ukraine On Advertisement, Decrees and Directives of the President, Parliament, and Government of Ukraine. As of 1 January 1998 there was nearly 2500 advertising agencies operating in Ukraine, including nearly 450 in Kyiv. The Graph shows the dynamics of the number of advertising agencies between 1991 and 1998.

Currently, the market for advertising services is established in general. It allows to use the entire range of advertising activities known in the world practice. Naturally, the most developed the advertising market is in Kyiv, the capital.

1997 may be reckoned as a turning point in the development of domestic advertisements. Nearly 160,000,000 USD was spent this year through television, the press, and outdoor advertising (Dyelovaya Nedyelia (Business Week) #6(41)).

Television. According to SOCIS Gallup International expenses on television advertisement increased by almost 35% in 1997 compared to 1996 (more than 23 mln USD in absolute terms) and amounted to 90,382,285 USD. The major portion of advertisement budgets falls to advertising campaigns via TV channels such as UT-1, UT-2 (1+1), UT-3 (Inter), ICTV. Broadcasting area of these channels covers 95% of Ukraine's territory. The main advertisers are firms dealing with pharmaceuticals, means of personal hygiene, perfumery, foodstuffs, soft drinks. Average cost per minute of airtime is nearly 1,832 USD, depending on the time and date of broadcasting. The following diagram shows the ranks of TV channels:

Among the advertisers the leader is Procter & Gamble. While the firm spent only 394,000 USD on television advertisement in the second half of 1995, and 2.3 mln USD (4th place) during 12 months of 1996, in 1997 this American giant came first in spendings (11,130,582 USD). Ferrero was among the leaders in the season of 1995-1996; however, in 1997 this firm spent less than 1.5 mln USD, which is less than one half of the 1996's spendings. On the other hand, Coca-Cola continues to increase its spending and increased its rank from the 9th (1,278,300 USD) in 1996 (2,652,010 USD) to third in 1997. Dandy and Wrigley are competitors in Ukraine. They continue to rank high. Overall spendings of these firms on television advertising have exceeded 6 mln USD. "Nestle" may be considered a "discovery of the year" which is now among the top ten advertisers in all the mass-media (television, the press and outdoor advertisement), with spendings totaling 3,656,004 USD.

The press. There are three main kinds of advertisement providers: daily, weekly, and monthly press. The main advertisers are firms dealing with computer hardware, mobile communication, foodstuffs, perfumery, furniture, production activity, sales of automobiles, tobacco, and hard drinks.

The press's share in the advertisement business is 23%. Though the 60% increase in spendings (from 22.4 mln USD to 35.9 mln USD) on advertising in newspapers and magazines suggests a close attention of firms to these advertising means, one fifth of ad budget is an unreasonably small share. In most foreign countries the press's share in ad budgets is at least 40%. In Northern European countries, this rate is close to 70%.

Outdoor advertisement. The main operators of the hoarding advertisement market are the following companies (source - MT-Monitor, # 6, 1997): Big Board (more than 1,500 panels throughout Ukraine), Razborn (over 800), Octagon Company (more than 570), Poster (in excess of 470). The major advertisers are firms engaged in communications, trade of automobiles, tobacco and alcohol products, mass-media, pharmaceuticals, means of personal hygiene.

A 19% share of the market falls to tobacco products. Seven out of the top ten advertisers are tobacco good manufacturers.

The progress of the advertisement market is suggested by the presence in Ukraine of representative offices of world's major agencies such as Burson-Marsteller (Young&Rubicam), J Walter Thompson, Leo Buurnet, McCann Erickson, BBDO, Saatchi&Saatchi, Grey.

It is not possible to assess the ranks of Ukrainian agencies as financial accounts and ad budgets of advertisers served by them are closed information. Based on the analysis of information from advertisement carriers, one may mark out some agencies with particular directions of activity: video advertisement - Priority Ad Company, Perekhid Media Ad Agency; the press - ArtMaster, Reckon, MiR; audio advertisement - Muzykalna Birzha, ad agencies at radio broadcasting stations.

The Ukrainian advertisement market, like the economy of Ukraine in general, is as the stage of steady reforming and movement, which fact is suggested by the large number of agencies. The main advertisement carriers have been established. However, the activity of the advertisement market is characterized by instability, a lack of sufficient advertisement and marketing information. This frequently leads to poorly substantiated decisions as to particular advertisement measures. On the other hand, all these drawbacks suggest that there is a potential market for the development of advertisement and marketing.

To enter the civilized market for advertisement services Ukraine needs stabilization of its economy, overcoming of the deep crisis of the administrative system.

Table 7.1. Advertisers' Expenditures on TV (top ten)

##	Advertiser	Expenditures, USD	%		Duration, minutes	%	Number of Spots	%
1	Procter & Gamble	11 130 582	12.32	6 129		9.92	9 031	6.01
2	Dandy	3 652 879	4.04	1 887		3.05	5 561	3.70
3	Coca-Cola	2 651 010	2.93	1 462		2.37	3 028	2.02
4	Wrigley	2 600 912	2.88	1 221		1.98	3 872	2.58
5	SmithKlineBeecham	2 371 729	2.62	1 178		1.91	2 839	1.89
6	Nestle	2 309 355	2.56	1 255		2.03	2 940	1.96
7	Jonson&Jonson	2 267 739	2.51	1 153		1.87	2 317	1.54
8	Samsung Electronics	2 192 862	2.43	943		1.53	2 894	1.93
9	Privatization	1 824 959	2.02	975		1.58	1 992	1.33
10	Upsamedica Ukraina	1 620 835	1.79	599		0.97	1 213	0.81
	Top 10	32 622 862	36.09	16 802		27.21	35 687	23.77
	Others	57 759 424	63.91	44 982		72,79	114 502	76.23
	TOTAL	90 382 285	100	61 783		100	150 189	100

Table 7.2. Advertisers' Spendings on TV Advertisement by Categories (Top Ten)

##	Category	Spendings	%	Air time, min.	%	Number of spots	%
1	Cosmetics. Perfumery. Means of hygiene	21257676	23.52	11261	18.23	23949	15.95
2	Confectionery	14056272	15.55	8640	13.98	22843	15.21
3	Pharmaceuticals	11568908	12.80	6578	10.65	17664	11.76
4	Beverages	5896709	6.52	3362	5.44	8761	5.83
5	Home chemicals	5309007	5.87	2825	4.57	5213	3.47
6	Home appliances	4444641	4.92	1901	3.08	5805	3.87
7	Audio-video. Musical instruments. Photo.	3439115	3.81	1823	2.95	5615	3.74
8	Foodstuffs	3393512	3.75	2004	3.24	4846	3.23
9	Automobiles (Means of transportation)	2398702	2.65	1457	2.36	3273	2.18
10	Shops. Marketplaces.	1876514	2.08	2741	4.44	6171	4.11
	Top 10	73641056	81.48	42590	68.94	104140	69.35
	Others	16741230	18.52	19193	31.06	46049	30.65
	TOTAL	90382285	100	61783	100	15089	100

Table 7.3. Advertisers' Expenditures on TV by Brand (top ten)

##	Brands	Expenditures, USD	%	Duration, minutes	%	Number of Spots	%
1	Orbit	2 521 397	2.79	1 182	1.91	3 769	2.51
2	Samsung	2 194 525	2.43	949	1.54	2 906	1.93
3	Daewoo	2 059 571	2.28	876	1.42	1 839	1.22
4	Stimorol	1 899 246	2.10	1 028	1.66	2 506	1.67
5	Pantine Pro-v	1 883 169	2.08	1 024	1.66	1 810	1.21
6	Dirol	1 753 634	1.94	859	1.39	3 055	2.03
7	Coca-Cola	1 363 111	1.51	758	1.23	1 576	1.05
8	Blend-a-med	1 221 067	1.35	654	1.06	1 050	0.70
9	Always	1 206 149	1.33	654	1.06	686	0.46
10	Efferalgan	1 153 671	1.28	428	0.69	859	0.57
	Top 10	17 255 539	19.09	8 413	13.62	20 056	13.35
	Others	73 126 747	80.91	53 371	86.38	130 133	86.65
	TOTAL	90 382 285	100	61 783	100	150 189	100

Table 7.4. Advertisers' Expenditures in the Press (top ten)

##	Advertiser	Advertiser's Expenditures, USD	%	Number of advertisements	%	Square Millimeters A4		%
1	Samsung Electronics	889 914	2.48	219	0.36	12 344 299	198	1.95
2	New Wind	648 376	1.81	236	0.38	9 096 913	146	1.44
3	LG Electronics Inc.	609 896	1.70	172	0.28	8 262 287	132	1.31
4	Philip Morris	376 855	1.05	55	0.09	6 251 286	100	0.99
5	UMC	367 578	1.02	131	0.21	5 860 746	94	0.93
6	хЛТРТПНЙОЧЕУФ	356 486	0.99	559	0.91	6 440 615	103	1.02
7	Daewoo	351 346	0.98	105	0.17	6 547 967	105	1.03
8	Merx International	316 281	0.88	492	0.80	4 865 398	78	0.77
9	Golden Telecom	250 843	0.70	97	0.16	3 248 786	52	0.51
10	Nestle	235 939	0.66	70	0.11	3 410 022	55	0.54
	Top 10	4 403 514		2 136		66 328 319	1 063	10,48
	Others	31 512 735	87,74	59 213	96,5	566 620 004	9 085	89,52
	TOTAL	35 916 249	100	61 349	100	632 948 323	10148	100

Table 7.5. Advertisers' Expenditures in the Press by Category (top ten)

##	Advertiser	Advertiser's Expenditures, USD	%	Number of advertisements	%	Square Millimeters A4		%
1	Office equipment Office supplies	3 707 636	10,32	4 747	7,74	56 791 021	911	8,97
2	Shops. Marketplaces	2 933 595	8,17	3 626	5,91	49 809 463	799	7,87
3	Motor transport	2 881 954	8,02	7 853	12,80	50 420 494	808	7,97
4	Services	2 561 833	7,13	3 415	5,57	52 360 832	840	8,27
5	Real estate Construction. Renovation.	2 493 144	6,94	8 857	14,44	48 359 927	775	7,64
6	Telecommunications	2 213 642	6,16	2 561	4,17	31 825 782	510	5,03
7	Household chemical goods	2 123 159	5,91	2 242	3,65	29 394 248	471	4,64
8	Cosmetics. Perfumery. Means of hygiene	1 995 030	5,55	1 817	2,96	34 040 071	546	5,38
9	Mass-media	1 763 963	4,91	1 506	2,45	34 758 364	557	5,49
10	Financial services	1 638 886	4,56	1 772	2,89	33 404 152	536	5,28
	Top 10	24 312 841	67,69	38 396	62,59	421 164 353	6753	66,54
	Others	11 603 408	32,31	22 953	37,41	211 783 969	3 396	33,46
	TOTAL	35 916 249	100	61 349	100	632 948 323	10148	100

Table 7.6. Advertisers' Expenditures in the Press by Brand (top ten)

##	Advertiser	Advertiser's Expenditures, USD	%	Number of advertisements	%	Square Millimeters A4		%
1	Samsung	1 021 351	2,84	453	0,74	14 311 739	229	2,26
2	LG	728 161	2,03	380	0,62	9 806 096	157	1,55
3	Daewoo	442 580	1,23	395	0,64	8 437 785	135	1,33
4	Canon	295 486	0,82	311	0,51	5 541 250	89	0,88
5	Marlboro	248 568	0,69	32	0,05	4 106 362	66	0,65
6	Whirpool	234 163	0,65	131	0,21	3 243 306	52	0,51
7	Pravex Bank	229 798	0,64	293	0,48	3 865 702	62	0,61
8	UMC	227 437	0,63	82	0,13	3 682 804	59	0,58
9	Opel	198 637	0,55	145	0,24	2 346 145	38	0,37
10	нЙОЙНБЛУ	194 348	0,54	258	0,42	8 910 218	143	1,41
	фПТ 10	3 820 529	10,64	2 480	4,04	64 251 407	1 030	10,15
	Others	32 095 720	89,36	58 869	95,96	568 696 916	9 118	89,85
	TOTAL	35 916 249	100	61 349	100	632 948 323	10148	100

Table 7.7. Advertisers' Expenditures on Outdoor Advertisement by Advertisers (top ten)

##	Brands	Expenditures, USD	%
1	Philip Moris	5 833 090	19,08
2	B.A.T.	1 719 160	5,62
3	Coca Cola	1 420 840	4,65
4	Reemtsma	1 345 625	4,40
5	Nestle	1 110 710	3,63
6	Karelia	992 725	3,25
7	Papastratos	968 095	3,17
8	Rothmans	961 170	3,14
9	RJR Tobaco	866 210	2,83
10	DAEWOO	862 520	2,82
	Top10	16 080 145	52,59
	Others	14 495 595	47,41
	TOTAL	30575740	100

Table 7.8. Advertisers' Expenditures on Outdoor Advertisement by Brands (top ten)

##	Brands	Expenditures, USD	%
1	Marlboro	2 313 660	7.57
2	L&M	1 695 735	5.55
3	Coca Cola	1 248 590	4.08
4	Lucky Strike	1 247 445	4.08
5	Chesterfield	1 192 415	3.90
6	DAEWOO	1 000 820	3.27
7	President	845 175	2.76
8	American legend	785 680	2.57
9	CORONA	748 565	2.45
10	Bond	631 280	2.06
	Top10	11 709 365	38.30
	Others	18 866 375	61,70
	TOTAL	30 575 740	100

Table 7.9. Distribution of Ad Expenditures by Months

Month	Expenditures, USD			Overall Ad Budget, USD
	TV	PRESS	Outdoor advertisement
January	4 429 332	1 901 143	1 972 995	8 303 470
February	5 432 179	2 461 437	2 107 805	10 001 421
March	7 774 090	2 799 240	2 205 185	12 778 515
Aprile	7 382 127	2 711 947	2 290 320	12 384 394
May	7 165 401	3 500 494	1 977 575	12 643 470
June	7 610 000	2 933 398	2 120 280	12 663 678
July	5 234 682	2 698 884	2 429 975	10 363 541
August	6 069 797	1 973 387	2 643 260	10 686 444
September	8 497 653	3 602 566	2 789 325	14 889 544
October	9 449 430	3 385 007	2 900 000	15 734 437
November	10 884 424	3 618 079	3 433 085	17 935 588
December	10 453 170	4 330 667	3 705 935	18 489 772
Total:	90 382 285 (57,61%)	35 916 249 (22,89%)	30 575 740 (19,49%)	156 874 274