Financial problems hit Romanian Internet Market

The situation is not exactly “outstanding” when talking about the Romanian online advertising market in January 2009.

This is an example of a business model (local online sales agency) hit by the crisis:

  • – mid 2007 – mid 2008 – signing 2 year contracts with Romanian websites – minimum guaranteed in EUR currency;
  • – 2007/2008, stable course RON/EUR, fixed rate-card in RON, average 3,65 RON/EUR;
  • – hell breaks loose in November 2008, first signs of the financial crisis, some advertising accounts are frozen;
  • – November 2008 – sales targets not achieved, first cash flow problems, all payments delayed;
  • – early December 2008 – panic button & business reset in order to limit their loss; all the contracts are dissolved beginning with Dec 31st;
  • – December 2008 – heavy loss of portfolio and market share;
  • – 15th of January 2009 – time to pay regularization for the contracts, currency weakens dramatically – 4,30 RON/EUR;

It seems that 2009 will be a very hard year for the local players in the online display advertising market.

One Reply to “Financial problems hit Romanian Internet Market”

Comments are closed.