In the third quarter of 2017, the Russian Internet advertising market for the first time outperformed the TV segment – 41 billion versus 36.2-36.7 billion rubles. At the end of the year, the entire advertising market in Russia could set a historic record of 400 billion rubles.
In the third quarter of 2017, the volume of the Internet advertising market exceeded the analogous revenues of the TV segment for the first time – 41 billion versus 36.2-36.7 billion rubles, according to the Association of Communication Agencies of Russia (ACAR). In the first nine months of the year, the Internet advertising market also almost caught up with TV: 115-116 billion compared to 116-117 billion rubles. The
Will the trend to lead the revenue of the Internet segment by the end of 2017, the AKAR does not predict. “The indicators of Internet advertising will be very close to the television segment, but whether they exceed them by the end of the year, it is difficult to predict,” said Sergei Veselov, co-chairman of the Research, Audit and Advertising Technologies Committee of the ACAR. According to a recent PwC forecast, the share of television advertising in 2017 still remains higher and will be 37% of the total advertising volume, the online segment – 33%.
The total volume of the Russian advertising market for the first nine months of 2017 (net of VAT) amounted to 285-287 billion rubles., Which is 14% more than the same period last year. According to the forecast of AKAR President Alexei Kovylov, the market of media communications in Russia this year will reach its historic maximum – 400 billion rubles. And it is quite possible that it will reach a mark close to 410 billion. “Thus, he confidently claims the fifth position in the European rating, approaching the volume of the Italian market. In fact, we can talk about restoring the international positions of the Russian advertising industry, “Kovylov said. Earlier, the forecast of passing the threshold of 400 billion rubles. gave Group M (unites media agencies of the WPP communication holding company) – according to experts of the group, the annual growth of the Russian advertising market will be 13.5% and will reach 408.3 billion rubles. at the end of 2017. By the end of 2016, Russia ranked sixth among the largest markets in Europe, according to the research company Magna Global. The leaders of the rating are Great Britain ($ 23.66 billion), Germany ($ 22.29 billion), France ($ 11.82 billion), Italy ($ 8.74 billion) and Spain ($ 6.03 billion).
As Sergey Veselov points out, taking into account the growth of the ruble / dollar exchange rate, the dynamics of the volume of the Russian advertising market for the entire 2017 in dollar terms may be at the level of plus 28-30%, and “such a high indicator in our market was not observed since 2007” . “Since the ranking of national advertising markets is usually carried out in dollars, then, other things being equal, our market, having reached the expected level of $ 7 billion by the end of the current year, will approach the ten largest markets in the world,” he predicts. The countries – leaders of the world advertising market are the USA ($ 190.835 billion), China ($ 80.239 billion), Japan ($ 37.681 billion). The total advertising market in the world, according to the forecast of Zenith, will be $ 559 billion, which is 4.2% higher than in 2016.
But the calculation presented by AKAR takes into account “not the incomes of certain market entities (TV channels, websites, etc.) but media segments,” the ACAR specifies. “That is, the revenues from advertising on the sites of TV channels are taken into account in the volumes of the Internet, the same situation with the sites of magazines, etc.,” Veselov said. He added that market participants are asking questions about a possible revision of the counting methodology and these questions are “legitimate”. “In the future, we plan to classify the media market according to media segments in addition to categorizing by content, that is, content on TV plus the Internet, [separately] publishing content in newspapers and magazines will be taken into account separately. But we need to work out the evaluation methodology, verification technology, etc. We plan to draw such a picture on the market in 2018, “he stated.
The distribution of the share of the advertising market in favor of the Internet will not affect the volume of the TV advertising market or the priorities of advertisers, the general director of the National Advertising Alliance (sells the advertising of Channel One, VGTRK, Gazprom Media and the National Media Group) . “80% of this money [online advertising] is contextual advertising, which has nothing to do with our business,” he told RBC. ACAR itself does not specify the data on the structure of advertising distribution in the Internet segment. According to the latest data released by the association on such a structure for 2015, out of 97 billion rubles. Internet segment for contextual advertising accounted for more than 80% (or 78.3 billion rubles.).
The representative of the federal media holding agrees with him, adding that the bulk of advertising budgets on the Internet is formed not by serious advertisers, but by the “hairdresser at Voykovskaya.” In addition, according to an interlocutor of RBC, while revenues from Internet sites are not key channels. “So far this is not more than 10% of the total revenue of TV channels,” he said. But TV holdings take into account the growth of the Internet segment in their forecasts. For example, according to a source from RBC, close to the management of Channel One, revenues from online advertising on the channel sites grew by 56% in 2016. “Since the beginning of 2017 and the current time, growth has already amounted to about 35% by the end of last year,” – told RBC spokesman, “First Channel”.
Advisor to the Russian president on the Internet Herman Klimenko believes that television is “static”, while revenues from advertising on the Internet are growing, new directions are opening up. “The main driver for the growth of advertising on the Internet is a sharp increase in demand for video advertising from classical television advertisers,” the source said.
On the Internet, the use of video as a targeted format for the promotion of brands is growing rapidly, Kovylov adds. “Also, new communication tools are being introduced in the messenger channels, including brand channels and groups,” the source said. But he clarifies that today TV offers new advertising opportunities. “The television [of advertisers] is attracted primarily by growing coverage parameters, promising tools for accurate measurement of the audience, as well as the constant updating of high-rated content,” he stated.
Author: Maria Istomina.
With the participation of: Lyubov Altukhova, Galina Kazakulova.
Article in Russian: RBC Daily