7 theses on the advertising market in the media in 2016

"We can not assume that the programmatic will come and save everyone." The results of the discussion with the Vice-President for Strategic Development of Dentsu Aegis Network Russia, Andrei Chernyshov.

CEO Relap.io Sergey Shalaev and Vice-President for Strategic Development of Dentsu Aegis Network Russia, the largest advertising holding company in Russia, Andrey Chernyshov talked about the future of media advertising at the MediaMakers conference. Read the main theses.

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Andrey Chernyshov

Vice President, Strategic Development, Dentsu Aegis Network Russia

The key word in 2016 should be “relevance”. Changes in the world and media consumption by the audience lead us to this. Information is becoming more and less time. The audience learns to select information as much as possible and limit itself from unnecessary. Irrelevant ads are an uninvited guest at this celebration of life. The task of RTB is not to reduce the cost of advertising through auction purchases, namely, to increase relevance by segmenting the audience based on data. Right message, right people, at right place, right time. So the cost of advertising will not fall, but grow. Technologically, we can do the last three components (right people, place, time). Now it's up to the creative agencies. How to deliver the right messages to the audience when it is not All 25-45, but dozens and hundreds of different segments.



Media should be as friendly as possible with advertisers on special projects. Firstly, because if the content is posted on the advertiser's site, the media cannot yet be the main traffic providers. It is cheaper and more efficient to buy advertising in context, social networks, on portals. On the other hand, a big threat to the media comes from social networks, and above all from Facebook with its initiative to take the content of the news media itself. And then the more direct connections the media has with customers, the better.



The fall in media advertising in unspecialized news media is faster than in media advertising in general. Due to competition with portals and advertising networks in which higher coverage and low CPM.



Good news - there are some areas of display advertising, which are still growing. This video, advertising purchases by RTB, mobile advertising, native formats and contextual technologies. Internet media versions need to develop strategies for maximum integration with these types of content and advertising.



Our advertising market is lagging behind the United States by a couple of years, so you can focus on the growth of the advertising market in the author's content in 2017-2018.



Mobile advertising is still in its infancy. Large advertisers are planning it on a residual basis. If digital is 10-20% of the total advertising budget, then the media mobile is 10-20% of digital. But the situation will change over the next two years. This can lead, at a minimum, to parity between mobile and desktop in turns.



The number of intrusive, irrelevant advertising has recently increased dramatically. And especially in the mobile - where sites and new agencies have not yet filled cones and do not understand all the risks. Full-screen, pop-up formats with unregulated frequency is a real evil for all.

Sergey Shalaev

CEO Surfingbird and Relap

Relevant and unobtrusive advertising is native advertising. In terms of advertorials, this is what Medusa is doing now, for example. What makes Medusa different from other Russian media projects - it understands that advertorials should be cheap and relatively simple to manufacture, otherwise it will not work. Special project in most Russian media is expensive. Plus, the communication costs of the advertiser and the editorial staff, who often live in parallel worlds, make it difficult for them to reach a common understanding. To make a special project quickly and cheaply, the media lacks the process of working with the advertiser, a ready-made package of product features and formats that they are ready to offer.

Native advertising is not only about how to find a platform, and make a joint competition, text, test, whatever. Many brands are now actively investing in the production of content: GoPro , Nike , Redbull , Tinkoff . They strive to be useful and convey to the user, either the necessary information or brand values ​​that the buyer is willing to share. Brands are turning into the media and are faced with the same problems - to find their audience and bring their message to them.

Media should be a single product, not split into content and advertising. The media and nonsense have the same task - to inform, so that people can make decisions. Or entertain or benefit. Eternal this covenant.

You can not assume that the programmatic will come and save everyone. What the majority is doing now is auction purchases of old non-working formats. For ads to be seen, it should not violate the UX. Right people, at the right place, right time - this is a purely technological task, which is quite applicable to native formats.

Total: media should rethink advertising formats and make them more native. Brands, to continue to successfully cooperate with the media, must do the same. And the general global trend is that it will be so. In the coming years, those who switch to native formats will be a few steps ahead. This shows the experience of Bazfid, Haffpost, VOX and other leaders.