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.