Advertising sales on Russian radio in the first half of the year increased by 20–50% year-on-year

According to market participants, radio advertising sales in the first half of the year increased by 20–50% year-on-year. Experts attribute the growth to the low base effect. Market participants do not agree with this: they argue that the growth was affected by the localization of manufacturers and the need for Chinese brands to advertise. At the end of the year, experts expect market growth in monetary terms to be 10–20% versus 5–10% a year earlier.

Based on the results of January-June, advertising sales on Russian radio stations increased compared to the same period last year, specialized holdings and advertising groups told Kommersant. Thus, SberMarketing (referring to Mediascope data using the agency’s estimates) estimates year-on-year growth at 57%, up to 3.3 billion rubles. NMi Group talks about a 37% increase in radio advertising sales. According to ADV, advertising sales increased by “more than 20%.”

GPM Radio (Autoradio, Radio ENERGY, Humor FM, Radio Romantika, Comedy Radio, Like FM, etc.) claims that radio advertising sales in the first half of the year increased year-on-year by 45%, to RUB 8.2 billion (the company evaluates the market based on independent advertising monitoring data). The “European Media Group” (“Europe Plus”, “Retro FM”) and the “Russian Media Group” (Maximum, “Radio Monte Carlo”, “Russian Radio”, etc.) did not answer “Kommersant”. At the end of 2022, radio advertising showed an increase of 5–10% (see “Kommersant” on January 25); a negative factor for the market was the departure of almost all major automakers from the Russian Federation: this category was one of the leaders in investments in radio.

ADV representatives say that this year the top 3 advertising categories remained unchanged: retail, finance and real estate. Most often, they add in SberMarketing, radio advertising is placed by companies from the real estate sector (up 49% year-on-year), financial services (up 22%) and pharmaceuticals (up 20%).

At the same time, GPM Radio claims that the top 3 advertising categories on radio have changed. If in January-August 2022 it included the “financial sector”, “medicine and pharmaceuticals”, “public sector”, then at the end of the same period in 2023 “medicine and pharmaceuticals” and “public sector” were replaced by the digital categories (advertising of digital goods , the increase in money amounted to 114% year-on-year), as well as “motor transport and related products” (increased in money by 88%).

The top 5 advertisers in the digital category included SberMarket, Yandex, Samokat, Rostelecom (Wink), as well as Sutochno.ru, said Yulia Andryushova, an expert at the Gazprom Media sales house. In the first half of the year, the volume of SberMarket placements on radio increased 2.5 times compared to the same period last year, confirmed the director of the company’s strategic and brand marketing department, Tamila Agamova.

Radio, as the most “operative” media, quickly responded to the restoration of the advertising market, says Ekaterina Rybakova, director of press and radio at ADV Group: “The entry of new companies and the localization of manufacturers of various categories of goods have created a high need for advertising.” Mrs. Andryushova agrees with this. As an example, she cites data from Autostat, which announced the launch of 46 new models from 20 Chinese brands by the end of the year. However, Kommersant’s interlocutor at one of the publishing houses associates the growth with the “low base effect.”

In general, by the end of the year the market will grow by 25%, Ms. Andryushova believes. Okkam and OMD OM Group are more reserved in their forecasts, where they talk about 10% and 17%, respectively.

NMi Group suggests that in the near future there will be further changes in the top advertisers on radio: “Fast-growing advertisers, for example, self-care services (focused on mental and physical health), who are currently choosing podcasts, will turn towards radio.” The company explains that traditional media channels, including radio, attract advertisers with low cost per contact and at the same time large reach.

Yulia Yurasova