Developers on the shield – Newspaper Kommersant No. 210 (7411) dated 11/14/2022
[ad_1]
Developers were among the few industries that increased advertising spending this year: according to SberMarketing, they invested 28% more in promotion in nine months than a year earlier. Market participants explain the growth by an increase in the number of projects against the backdrop of a general stagnation of the real estate market, as well as an increase in advertising prices. For outdoor advertising operators, growth in industry budgets helped offset the drop in revenue due to the departure of foreign brands. But this will not save the entire advertising market from falling at the end of 2022.
Kommersant got acquainted with the study of SberMarketing on the dynamics of advertisers’ costs for January-September based on the Mediascope database (absolute figures are not disclosed). It follows from this that the volume of media investments in real estate in 2022 increased by an average of 28%. Level Group increased its investment in advertising the most — by 304%. The Samolet group had a 93% increase, while the MITs Group had an 81% increase.
The maximum investment was received by performance advertising (a type of online advertising in which payment is made for the result) and outdoor advertising – in general, 50% of developers’ budgets. The second and third places are shared by regional TV and radio with 15% each. National TV spending increased by 13%, while digital media advertising (videos on the Internet) increased by 7%. The main part of the budgets is spent on promoting sales of business and premium real estate. Some developers have reduced their advertising budget, but have not abandoned promotion, the study says. The budgets were affected by the growth in the supply of new buildings: it has almost doubled compared to previous years, says Levan Todua, head of the business development group at SberMarketing.
Maria Golikova, Marketing Director of the MIC Group of Companies, specifies that the company’s investment in advertising grew in January-September even by 163%. “A combination of factors played a role – an increase in the cost of digital advertising (depending on the sites from 30% to 40%). MIC also launched a number of new projects for sale. We also take into account the media significance of competitors, the stagnating market,” she says. Samolet group marketing director Roman Senchikhin confirms that investments in advertising have grown. He says that the real figure does not match the one given in the study, but does not name it – “growth rates are determined by the company’s strategy, the introduction of new services to the market and market factors.” The Level Group did not respond to a request.
Other developers are also talking about rising advertising costs. In GloraX, for example, the volume of advertising investments increased by 40%, which is associated with the start of sales of several new projects, says Ekaterina Ulyanova, director of marketing and PR campaigns. In Asterus, growth was 15% also due to an increase in the number of projects, said Vera Stefan, commercial director. There is no data on these companies in the SberMarketing study.
The trend is also confirmed by outdoor advertising operators. The increase in the budgets of developers, as well as e-commerce, financial services and banks “more than covered” the fall from the withdrawal of foreign advertisers, “growth is observed in all sales channels, most significantly in transit (metro, MCC, MCD, Sapsan, advertising at railway stations)”, says commercial director of Russ Outdoor Boris Peshnyak. Gallery is seeing similar dynamics, the company notes. “In our opinion, this is due to the growth in the number of objects, increased competition for the audience and the need for developers to sell objects at earlier stages,” they say. In 2023, Gallary believes, the dynamics will continue. The growth of budgets in the real estate segment is also noted on TV: according to the National Advertising Alliance, on regional television, the growth of budgets in the category for January-September amounted to 24%, in Moscow – 38%.
While maintaining the “current external factors” in 2023, there will be a slight increase in budgets (developers), primarily due to inflation, and not an increase in the number of purchased inventory, says Nikita Pribylovsky, Executive Director of SA Media RA. It will be possible to partially compensate for the fall, the advertising market expects growth in 2023, but it will still take more time to return to the volumes of 2021, he adds. According to Media Instinct Group’s latest forecasts, the advertising market as a whole will fall by 18% this year, and will grow by 6-10% in 2023.
[ad_2]
Source link
