Results and forecasts: the main thing about the digital advertising market in 2016-2017

IAB Russia has released a 60-page report on the digital advertising market in Russia. We chose from it the main trends of this and the next year:

• what advertising tools companies use;
• What formats do advertisers bid on?
• how brands plan to distribute the budget next year.

The survey of IAB Russia was attended by 12 of the 30 largest advertisers in Russia, including five from the top 10. Most of the employees interviewed are people who are directly responsible for the distribution of advertising budgets.
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Reallocation of budgets

Brand spending on advertising will only grow . However, most advertisers redistribute budgets.

Companies cut or leave the budget for offline offline and increase the cost of online advertising. This choice was made by more than half (56%) of the surveyed brands.

How will the online advertising market develop?

The budget of companies for online advertising is growing 20% ​​faster than spending on offline. IAB Russia President Boris Omelnitsky predicts that by the end of 2016, the Internet will bypass TV for advertising revenues.

65% of brands indicated that the share of digital in their advertising budget is increasing.

Last year, advertisers spent on digital 41% of the budget. In 2016, the cost of online advertising will continue to grow. On average, 43% of the budget brands will allocate to the Internet.

The slight increase - by 2% - in the report is explained not by a slowdown in development rates, but by overly cautious forecasts of experts.

88% of advertisers surveyed indicated that they consider online advertising effective. The motivation for the redistribution of the budget from offline to online also serves as the dynamic targeting and growth of mobile media consumption.

What advertising formats do brands use?

On average, advertisers use 7 digital advertising tools. In addition to the “context” and banners, more than a third of brands began to use native advertising and sponsorship formats in 2016.

What to use: the most promising advertising tools

In 2016, brands began to actively use native advertising, mobile advertising and performance. These tools showed the biggest increase in popularity.

Native advertising has the best result (+ 16% per year).

What to bet on: Native advertising

When advertisers were directly asked what tools their brand “could begin to use this or next year,” the highest growth potential was shown by native advertising.

Record 36% of brands responded that they would start using native advertising in 2016-2017. This is the highest rate among the new advertising formats.

In the answers to the question about new (still unused) tools that advertisers can start using in the near future, the most often called:

• video advertising, including mobile video and automated video advertising purchases,
• mobile advertising
• programmatic and RTB.