The number of new advertisers from the CIS countries and Asia has grown in Russia – Kommersant

“Kommersant” got acquainted with a joint study of the advertising holding NMi Group and AKAR, from which it follows that the number of new advertisers from the CIS and Asia has grown from the beginning of June last year to the end of May this year: the share of the first was 31%, the second – 19%. The survey was conducted among more than 100 advertising agencies across the country.

The most active advertiser is the FMCG segment (companies involved in the sale of consumer goods). In second place with a share of 48% are sellers of food and beverages. The pharmaceuticals and medical services segment closes the top three: the number of advertisers in the segment was 42%. Clients from retail (31%), the cosmetics and beauty industry (29%), as well as sellers of clothes, shoes, accessories (27%) and participants in the financial and insurance market (25%) began to use the services of advertising agencies more actively.

Advertisers have been cutting budgets since the beginning of the pandemic (see Kommersant dated March 18, 2020). The market began to recover in 2021, however, after the outbreak of hostilities in Ukraine, the usual foreign advertising platforms left Russia: YouTube, Google Ads, Instagram, Facebook (owned by Meta, whose Instagram and Facebook activities in the Russian Federation are recognized as extremist and banned). At the same time, the largest foreign advertisers left the country. However, already in the first quarter of this year, the share of advertisers planning to increase the budget in 2023 increased year-on-year from 40% to 53% (see Kommersant dated April 24).

“Still, 17% of agencies admitted to reducing the number of clients over the past year. The reduction in the customer base averaged 20–40%,” the study states. Thus, according to NMi Group and ACAR, 63% of European customers, 38% of domestic customers and another 25% from North American countries left the Russian market.

Igronik confirms that Chinese brands show the greatest interest in entering the Russian market: “According to our estimates, in the coming years, the number of Chinese brands and advertisers in various categories in Russia, such as auto, FMCG, beauty, etc. will continue to grow. .”. Over the past year, the Russian market has focused quite strongly on brands from Korea, China, India and Turkey, adds Ksenia Bochkareva, Sales and Advertising Technology Development Director at SberMarketing.

Taking into account all three levels of factors – the country’s GDP, population size and friendliness in relations with Russia, Group4Media suggests that by the end of the year advertisers from China, India, Indonesia, Brazil, Turkey, Egypt, Vietnam, and the United Arab Emirates may appear in Russia. “The industry (product category) in which certain brands operate is also important. This is due to the different complexity and cost of entering a new market, the size of the corresponding market in the Russian Federation, and the intensity of competition,” says Natalia Baluta, Director of Innovation and Analytics at Group4Media. Thus, according to her, the emergence of new brands offering travel services is more “probable and promising” than the entry of a grocery retailer from these countries into the Russian market.

Julia Yurasova