Internet advertising in 2015 - survey "Megamind"

This year has not been easy for several factors at once: a strengthening dollar, a falling ruble, sanctions against the largest domestic enterprises. It would be strange if all this did not affect the state of the Russian Internet advertising market, which is sensitive both to the world economic situation and to the level of expenditures of the largest state. corporations.

In the meantime, Goldman Sachs Global Investment Research publishes its own analytical notes predicting a 15% reduction in the advertising market in Russia in ruble terms, and the ratio of advertising costs to the country's GDP will return to the level of 2001 - we decided to go a different way.

Megamind asked a few simple questions to representatives of advertising agencies operating in Russia, in order to listen to their opinions on the most pressing issues facing the representatives of the advertising industry today.
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Questions were answered by representatives of three different companies: KupiSlova , a participant of the Dentsu Aegis Network company iProspect and Resolution Media . We have systematized their answers to each of the questions so that you can independently compare the answers coming from different companies operating in the same market — online advertising.

Question one: How do you assess the events on the online advertising market in 2014? What were your financial indicators?

Karina Khachaturian , director of customer service "Kupislova" :

2014 is an interesting and controversial year. Events in the Russian and world economy were immediately reflected in the activities of clients in the advertising market. The culmination of the commercial hype became the last weeks of 2014 - people rushed to invest rapidly lowering rubles in real estate, cars and equipment. As a result, the total turnover in advertising increased by 20-25%. Our agency was no exception to the general trend.

Alexey Nikitin , CEO iProspect :

Despite expectations, 2014 was not so bad. Contextual advertising quite confidently felt, showing an increase of 25-30%. There were certain difficulties in certain categories, but, in general, the year ended better than the initial forecasts.

Anastasia Varzakova , Buying Director at Resolution Media :

The growth of the audience and, consequently, of the inventory slowed down, which was reflected in the growth rates of Internet advertising, which also decreased. The main growth still occurred in contextual advertising. However, in the first half of the year, display advertising continued to grow, largely due to two events: the Olympics and the World Cup. In the second half of the year, crisis phenomena have already become apparent, which primarily affected the traditional banner advertising, which has become less in demand, but in spite of this, video advertising and mobile remained growing segments in the media industry.

As for the main market players, here we have seen ongoing consolidation and integration: this is the completion of the merger of the united campaign of Rambler and Co., which began in 2013, and the complete transition of the social network Vkontakte into the hands of Mail.ru Group and even collapsed in early 2015 years, the consolidation of the Internet departments of large TV sellers: Video International and Gazprom Media, which had a significant response in the market.

For us as an agency, the year was productive not only in terms of growth in turnover and profits, but also in strengthening the team (primarily in the mobile direction), building up expertise, including new directions, such as programmatic and mobile, and optimizing internal processes , which allowed us to win several victories in major tenders.

Question two: How do you assess the prospects for the online advertising market for 2015?

Karina Khachaturian :

In the coming year, we can also expect a growth of the contextual advertising market (in rubles) by 15-20%. Although, of course, the forecast, which will certainly come true with one hundred percent probability, no one can give you. Funding is not the most profitable and effective advertising channels will be cut. The released funds will be invested in the most effective resources - in contextual advertising.

Alexey Nikitin :

But for 2015, it seems, all the fears that were in 2014 moved. Most advertisers are not talking about reducing budgets, but many have already abandoned annual planning. Everyone is looking closely at the results.

Anastasia Varzakova :

Of course, the context and performance will continue to grow, as first of all there will be demand for tools whose effectiveness is obvious, measurable and not delayed in time. The image component, on the contrary, will be somewhat reduced, which will lead to a fall in the cost of banner advertising and image special projects, but at the same time the video will continue to grow, especially among those advertisers who use a unified approach to planning a video campaign on TV and in digital.
As for RTB gaining momentum, the situation here is nonlinear: on the one hand, like any tool that improves efficiency, it is certainly in demand, on the other hand, the data market that is just beginning to form and which is a necessary component of the programmatic cannot actively develop in a crisis year. Nevertheless, many advertisers are already using their data to purchase inventory in digital and the proportion of such purchases will continue to grow.

Question three: What do you think will happen to the budgets of advertisers in the current year?

Karina Khachaturian :

Reducing less efficient channels and switching to context. In digital - many have problems with SEO and also transition to context. A possible increase in competition will benefit both the business as a whole (more effective working methods and strategies will be developed) and consumers (in the struggle for customers, players offer them more and more favorable conditions).

Alexey Nikitin :

January was calm. What will happen next? It will be seen. The experience of 2008 gives us hope that the context will be in the green zone. In times of crisis, you need to optimize advertising costs, the context gives the sale here and now. Abandoning him is the same as sawing the branch on which you sit.

Anastasia Varzakova :

In general, I think, the Internet and TV, more than other media are viable during the crisis year. Advertisers now have several scenarios, they are moving to flat-panel planning and want flexibility and efficiency from the media, which has always been the advantage of digital.

Question four: Do you expect changes in competition among advertising agencies?

Karina Khachaturian :

A positive business concept means improving conditions for consumers while increasing competition among suppliers. Therefore, increasing competition is the best thing that should happen this year.

Alexey Nikitin :

Of course we expect, regardless of the market situation. Our market is one of the youngest and most dynamically developing. Here you need to clearly monitor all the trends and keep abreast of, so as not to fall behind. This, of course, affects competition. And every year is different from the previous one. Previously, it was necessary to learn to grow in a rapidly growing market, now hold their positions on the stagnating. Win here are those who focus on the quality of services provided, on the analysis of the effectiveness of campaigns and their optimization. And those who are dumping, just to attract new budgets, will lose out. We have always belonged to the first group of agencies, so we hope that our approach will justify itself.

Anastasia Varzakova :

Naturally, competition during the crisis will intensify, which, on the one hand, is not bad for the market, since it entails the optimization of all processes, starting with planning and choosing tools and ending with the optimization of the internal structures of agencies; on the other hand, it will be difficult for local digital agencies to survive.

Question five: What advice would you give to advertisers in 2015?

Karina Khachaturian :

Many advertisers are seriously considering cutting their budgets. However, for some of them, a much more sensible solution would be a point reduction in the staff responsible for these very budgets, followed by transfer to advertising agencies. Of course, it is necessary to closely monitor the situation on the market, pay attention to the actions of competitors and consistently strengthen their own positions. Plus crisis situations like the current one, in that new business opportunities are opening up - many large advertisers face an outflow of investments and leave the market, contextual advertising auction rates are falling, and therefore new niches are being released for new, active and ready to fight for a place in the sun players. Such opportunities should not be neglected unambiguously.

Alexey Nikitin :

Year will be difficult. But it will be difficult for everyone. No matter what category you have, it is important to be better than your competitors. This year it will be necessary to count money even more carefully. In advertising, in conversion media there are all possibilities for this. If you have already mastered these extremely useful skills, then you have an amazing opportunity to improve them, and if not, then it would be better to learn. Good luck. I am sure everything will be fine.

Anastasia Varzakova :

Do not panic, monitor the situation and be ready to respond quickly to it, choose reliable partners and stay online.