The agency controlled online advertising market in Bulgaria grows 110% from 2005 to 2006 shows a recent study by Investor.bg. Advertisers spend 5.6 million leva (3.8 mln USD) through advertising agencies and media shops during 2005. In 2006 spending increases rapidly to 12.5 mln. leva (8.6 mln USD) and is expected to reach 20 mln. leva in 2007 (13.7 mln. USD). This implies a 60% growth in internet advertisng for 2007.
Top advertisers are from the telecommunications industry – mobile and fixed-phone operators, followed by companies from the financial sector – mainly banks. Bulgarian online advertisting market volume now accounts for 4-5% of the Bulgarian advertising market and is expected to account for between 5 and 10 percent of the market in the following years.
These estimations, however, do not take into account direct deals between advertisers and website owners as well as most of the money spent on PPC, affiliate marketing, SEO and other areas of online promotion where agencies are not so strong.
The growth in the market is powered by the greater recognition of the media from business owners and advertising agencies as well as the ever increasing online population. Broadband internet penetration is quite high and provides new horizons for audio and video delivery.