Ukrainian ad­ver­tis­ing en­ters 2019 still try­ing to get back to its 2013 high of $1.4 bil­lion

Kyiv Post - - Business - BY NATALIA DATSKEVYCH [email protected]

Since 2016, the Ukrainian ad­ver­tis­ing mar­ket has been re­bound­ing, with dig­i­tal me­dia show­ing the most prom­ise.

The mar­ket hit $625 mil­lion in 2018 and is ex­pected to reach $793 mil­lion in 2019, ac­cord­ing to the lat­est re­port by All-Ukrainian Ad­ver­tis­ing Coali­tion.

But the mar­ket is still lower than the 2013 peak of nearly $1.4 bil­lion.

The dig­i­tal sec­tor is ex­pected to keep grow­ing fast, reach­ing $134 mil­lion in 2018, or 17 per­cent more than the pre­vi­ous year. But still, TV ads ac­counted for the big­gest share in 2018 — $331 mil­lion — and will again in 2019, at $411 mil­lion.

Elec­tion years are al­ways good for ad­ver­tis­ing. This one will be no ex­cep­tion, with likely a two-round pres­i­den­tial elec­tion on March 31

and April 21, and par­lia­menta- 672 ry elec­tions on the last Sun­day in Oc­to­ber.

The po­lit­i­cal ads are also giv­ing a boost to dig­i­tal ad­ver­tis­ing.

“Many clients worry that TV will be over­loaded with po­lit­i­cal ad­ver­tis­ing, and in the first half of the year they tend to con­sider only lim­ited con­tent on these channels. This will only fur­ther in­crease the (im­por­tance) of dig­i­tal ad­ver­tis­ing,” said Vic­to­ria Enk­ina, com­mu­ni­ca­tions di­rec­tor at Tabasco, an ad­ver­tis­ing agency, back in De­cem­ber, ac­cord­ing to Sostav.ua.

YouTube ma­nia

Ad­ver­tis­ers also showed sub­stan­tial in­ter­est in the Amer­i­can video-shar­ing web­site YouTube as an ad­ver­tis­ing plat­form last year. Dig­i­tal video channels, in­clud­ing YouTube, in Ukraine al­most dou­bled and reached $48.5 mil­lion. Next year it might grow by an­other 70 per­cent, ex­perts pre­dict.

Print me­dia Even though Ukraine’s ad­ver­tis­ing mar­ket still did not ex­ceed the 2013 pre-cri­sis pe­riod, it has re­cov­ered at a stable rate since 2016. Over­all, the mar­ket was worth $625 mil­lion in 2018 and is ex­pected to grow by al­most 30 per­cent this year. ad­ver­tise­ment is headed for more de­cline, ex­pected to dip to only $65.8 mil­lion in 2019. Ra­dio ads are ex­pected to grow by 24 per­cent, reach­ing $25.5 793

2019 (fore­cast) mil­lion, in 2019. Last year sev­eral groups of ad­ver­tis­ers, such as phar­ma­ceu­ti­cals and food prod­ucts, tried out ra­dio.

Global ad­ver­tis­ing trends, such as mo­bile ap­pli­ca­tions and so­cial me­dia, are shap­ing bud­gets too.

For ex­am­ple, In­sta­gram is set to grow, says Yu­lia Sergiy­chuk, di­rec­tor at Pro­mo­tion Tech­nolo­gies, a con­sult­ing agency, ac­cord­ing to Sostav. ua in Dec. 25, 2018. Ukraine's ad­ver­tis­ing mar­ket is con­strained by low in­comes, the need for more high­speed in­ter­net and other fac­tors, Sergiy­chuk says.

Com­pe­ti­tion is be­com­ing tougher for all brands and in all cat­e­gories.

“Lead­ers that have oc­cu­pied their mar­ket share over the years may lose ev­ery­thing in one day due to an in­ap­pro­pri­ate phrase posted on their so­cial page. Now there are no unim­por­tant mo­ments,” Enk­ina said. “I think that there will be more ad­ver­tis­ing, (and) it will def­i­nitely be­come bet­ter.”

Ukraine’s dig­i­tal ad­ver­tis­ing has been on the rise and its growth is ex­pected to out­pace out­door bill­boards, ra­dio and print me­dia. Over­all, Ukraine's ad­ver­tis­ing mar­ket reached only $625 mil­lion in 2018, dom­i­nated by TV ad­ver­tis­ing with $331 mil­lion. (Oleg Pe­tra­siuk)

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