According to the results of last year, according to the Association of Communication Agencies of Russia (AKAR), the volume of the Russian advertising market reached a record 578.3 billion rubles. The largest sites are the Internet and television, which accounted for 54% and 34% of market turnover, respectively. Outdoor advertising accounted for 8%, radio – 2%, the press – 1%. The fall in the advertising market, according to experts, may be 30-70% (depending on the segment).
Banks, medicines and marketplaces
According to Mediascope, the three segments in which the largest advertisers work on television and radio (the company monitors Internet advertising in a limited format) are financial services (banks), medicines and trade services (including marketplaces and services). The share of the “Food” category, which in 2021 was among the top three on television, decreased from 12% of total advertising output in 2021 to 8% in 2022 (against the background of the departure of Nestle and Mars Russia).
The highest dynamics in the list – the banks. The share of advertisers in the top 15 in the field of financial services on television rose from 12% last year to 23% in 2022, and the share of total radio advertising – from 14% to 33%. Among the largest advertisers on television are four banks: Sber, Alfa-Bank, Sovcombank and VTB. On the radio – VTB, Alfa-Bank, “Sber” and Rosbank. All these banks in the top of the largest advertisers are under sanctions, says Alexei Andreev, managing partner of the branding agency Depot: “They can not help but advertise themselves, especially now that they are in this situation. Moreover, in difficult moments of life, people more often turn to banks to keep their deposits or for loans.
VTB’s press service did not say whether the advertising budget was revised in March-April 2022, but stressed that “the bank annually plans advertising costs in accordance with business objectives, and the campaign plan is flexible and adjusted depending on the bank’s current objectives. and market situations. ” Sber did not respond to a request from Forbes.
The share of companies that advertise drugs and dietary supplements on television has not changed – 26% in 2021 against 27% in 2022. The figure rose despite the refusal to invest in advertising of the two largest advertisers from rating Sostav.ru – the British company GSK Consumer Healthcare and Bayer, whose advertising budgets in Russia in 2021 amounted to 2.9 billion and 2.8 billion rubles, respectively.
In list 15
The largest advertisers on television in 2022 included four pharmaceutical manufacturers, including new ones – Russia’s Petrovax and Binnopharm Group.
Services such as Avito, Ozon, Wildberries – newcomers to the list of major advertisers on television. “They never paid much, but now their top spot shows that companies do not want to lose the popularity they gained during the pandemic on the wave of growing online sales and delivery,” explains Andreev. The head of the Wildberries press service Valery Prokopyev confirmed to Forbes that the company maintains an advertising presence on television and the Internet. Ozon has cut media coverage this year and only supports priority projects. “For example, our mega-sale will take place in June, but the scale of its support in b2c channels is much smaller than in the IV quarter of 2021,” explains Ozon Director of Marketing and Monetization Oleg Dorozhok.
Stress for the market
AKAR President Sergei Piskarev estimates the decline in market size compared to 2021 from 30% to 70% depending on the segment. “Due to the departure of large advertisers from the Russian market, certain categories of goods have fallen, and in others there is a change of players in terms of market share,” he said. “We will not be able to replace outgoing customers and bring new brands to market, as well as ensure the loyalty of their target audiences quickly enough.” Advertising activity has been suspended by a third of the companies included in the ranking of the 30 largest advertisers in Russia according to Sostav.ru. Their share in total advertising spending in 2021 was 7% of the market.
According to the president of the Russian Association of Marketing Services (RAMU) Elena Leonova, the advertising market has been in a state of instability for two years, but recent events have put the advertising business under enormous stress. “The advertising market reacted with lightning speed: traditional advertising approaches, mechanics and models, communication platforms have changed. Advertisers are under enormous pressure, everyone is solving the problem of breaking technological and logistics chains, reviewing marketing strategies and budgets, adapting them to current realities, “says Leonova.
According to Piskarev, the growth of online advertising will slow down if it can not compensate for the losses due to the departure of foreign advertisers. The future of outdoor advertising and the print media depends on the volatility of the ruble and the shortage of imported materials, leading to rising costs. The fate of radio advertising is determined by competition with other media platforms. According to him, television will maintain its leading position among classic advertising platforms, because TV sellers are now pursuing an uncompromising policy; as an example Piskarev gives fines by the National Advertising Alliance for the removal and transfer of advertising campaigns.
The volume of advertising budgets on television fell by 50% in March-April, says Alexei Andreev of Depot (the agency works with Nestle, Unilever, X5 Group, Magnit, Sovcombank, etc.). “Unlike typical economic crises, today’s situation is hopeless. Sanctions drive the economy into a stalemate, he said. – When you fall, you can’t make decisions. Now everyone is waiting for the market to reach the bottom, because only in relation to it can we plan for the future. “
According to Mediascope, between March 1 and April 15, 2021, nine of the 15 buyers of television advertising were foreign companies. During the year, six left the list: Nestle, McDonald’s, Mars Russia, PepsiCo, as well as pharmaceuticals Bayer and GSK. Therefore, in the top 15 this year, Russian companies predominate – 12 of them on the list. In the top three: “Sber”, Alfa-Bank and Sovcombank. Also included are Magnit, Avito, Ozon and Wildberries, YUM! Restaurants (KFC restaurants) and others.
“Large advertisers from the FMCG categories, food, pharmaceuticals and cars that have just left the Russian market accounted for TV,” said Elena Kalmykova, commercial director of Media1 (Muz-TV and Yu). , Disney, federal outdoor advertising operator Gallery, regional radio holding “Choose Radio”). “Overall for the year, we estimate a drop in advertising on the group’s TV channels of about 25%.”
Substitute and reduce
On the radio, according to Mediascope, of the top 15 advertisers in 2022 – 14 Russian advertisers and only one foreign (Tele2). During the year, including three foreign automakers (Toyota, Mitsubishi Motors and Volkswagen) and the Liqui Moly car care store left the list. According to Kalmykova, in March in the regions on the radio there was an outflow of advertisers at the level of 20% from the same period last year. “This is primarily due to the suspension of car dealers of European brands, as well as some developers due to the unclear position in rates on credit and mortgage programs and prices for building materials, as well as other brands (air transport, home and computer), which are highly dependent from the exchange rate and logistics “, – describes the situation Kalmykov. However, already in April, the volume of advertising at Media1 increased by 28% compared to last year, in particular, thanks to companies in the real estate segment. Banks and other financial services (36%), clothing (+ 28%), furniture (+ 22%), retail (+ 20%) and tourism (+ 10%) show positive dynamics.
“On the one hand, all major advertisers have remained committed to their media strategies. And such monsters as sellers of drugs, food and banks, continue to use television as the main channel of promotion, – says Alexei Andreev. “On the other hand, the departed Western brands are replacing those who have decided to stay in Russia.” For example, the operator YUM! Restaurants (2% of total television advertising output in 2022). According to the rating of the 30 largest advertisers in Russia according to Sostav.ru, in 2021 McDonald’s advertising budget amounted to 3.1 billion rubles, YUM! Restaurants – 2.3 billion rubles.
“Westerners have left, but the Russians have not made much money, so we do not have to talk about restoring market size at the expense of Russian advertisers,” adds Andreev. “Some are cutting advertising budgets for optimization, others are temporarily freezing activities because it is unclear what the new rules of the game are and what to advertise when the world and needs have changed.” According to him, “one big bank” suspended its advertising campaign until the fall, explaining that he does not know what to advertise – what will be the loan rate.
In the first half of the year, the M. Video-Eldorado chain of stores reduced the volume of advertising in all media, primarily on television and outdoor advertising, but did not completely abandon advertising activity. “During March, we saw a gradual decline in demand, in April it stabilized, and now retailers have returned to the intense struggle for consumer demand,” said director of marketing and digital experience of the customer Vasily Bolshakov. “At this stage, we do not plan to increase the budget, we continue to use all available channels – TV, outdoor advertising, digital – and we are working to improve the performance of each advertising ruble.”
Avito, on the other hand, has maintained its advertising investment in TV advertising, focused on youth channels and will continue to be present in key regions. “Now that many businesses and people are changing their usual way of life, it is important to remember that there is such a massive platform for commerce in Russia that on Avito you can buy and sell goods, apartments, cars, rent and lease, find work – that’s it that is so important for most Russian citizens now, ”says Avito Commercial Director Igor Makarov.