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The future of programmatic in Russia

According to Juniper Research, global spending on Internet advertising is expected to grow from $226 billion in 2019 to $520 billion in 2023. One of the key areas for this trend will be programmatic-advertising, which continues to increase its turnover from year to year on the global market, and in Russia in particular.

Our partner – MediaToday – multiformat advertising digital platform – developed an overview on the future of programmatic in Russia.

The growth in popularity of programmatic is caused by the effectiveness of this technology.

Programmatic opens new opportunities for brands by allowing to reach more target audience, attach commercial value to each of the target segments, increased transparency and control, improve real-time management and get greater efficiency due to the data-driven marketing. Russian marketers are re-thinking the way of planning, buying, measuring and optimizing media, providing the customer with a more personalized and engaging experience through the journey via different technological channels, such as social media, search engines, video streaming platforms, apps and connected devices. The essential issue for highly effective ads is to be delivered to the right people at the right time on the right platform.

Programmatic on TV

Today almost everyone has a subscription with a video service like Prime, Netflix or Okko in Russia. Smart TV is popular by Millennials (it is used by 42% of generation Y representatives according to GlobalWebIndex in 2019). In addition, Google reported 800% increase in the number of connected TV channels for 2019 and a 137% increase in advertisers on TV in the world. TV and home video cinema apps have a great potential to become a new space for non-disruptive, personalized ads that can become a legit ad revenue source for many companies.

Digital outdoor advertising

Out-of-home advertising is becoming increasingly digitalized. The usage of LED-billboards in particular, an advancement of the traditional billboard ad placement, is growing especially in Tier1 cities in Russia. According to ESPAR-Analyst, the share of DOOH costs in outdoor advertising in Russia will grow to 35% by the end of 2020.

Voice search in Advertising

The introduction of sophisticated AI technologies, new channels, and evolving privacy regulations continue to shape the digital advertising world. According to Smart speakers and voice assistants research  Russia’s smart speaker market will grow to $100 million by 2020. 50 mln people in Russia use voice assistants at least once a month:

  • Alice, Yandex — 45 mln users a month (28% of them use Alice in cars)
  • Google Assistant — some 7 mln users in Russia
  • Siri, Apple — some 8 mln users in Russia

42% are using voice assistants for web search that gives the marketers opportunities to navigate more traffic on their websites with and think about how they can capitalize in new ways.

VR in advertising

There is a demand for VR/AR in advertising both in the world and in Russia in particular. However, VR still needs time to gain mass adoption from living rooms to workplaces. But sales of virtual reality/alternate reality units are growing. IDC projects 2022 sales of 65 million units.

Having 3D objects within display ads helps consumers more actively learn and interact with products.Visual storytelling, 360° videos help brands to make a stronger impression and improve click-performance.

Greater Awareness of Online Privacy

One of the most important topics that continue to be discussed is the transition from cookie identification to ID recognition on the desktop platform. The discussion is gaining momentum both because of strict data regulations (GDPR) in 2019. This situation makes it possible to assume that one day we will completely switch from the cookie identification model to the ID identification model.

The interactive programmatic advertising market will continue to grow. According to IAB report, personalisation and access to the end consumer define the development trends in the Russian interactive advertising market. To remain successful, media companies need to learn how to adapt faster to changing market trends and make investments in innovative technologies.

About the Author
Alexander Fandera-Maslov, Brand manager of MediaToday

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