2018 / IAB Russia & PwC. Russian Market Digital Ad Spend 2017-2020
IAB Russia and PricewaterhouseCoopers (PwC) has proceeded to first stage of cooperative research “Russian Market Digital Ad Spend 2017-2020”. The project is devoted to forecast of the interactive advertising market development for nearest 3 years and creation of complex representation of market players moods and expectations.
PwC has already experience of similar researches abroad. The company has its own search “Global entertainment media outlook 2017-2021”, in which the prediction of development of all advertising channels is based on key player’s survey, including the largest advertisers.
It is planned to invite foreign experts to work, including from the USA and Great Britain being masters of similar evaluation of the market in one’s countries.
By result of the research should be an independent assessment of the current state of the market with the allocation trends and representation of digital forecasts on various segments.
It is expected as well that research will not be limited by definition trends and will give a chance to receive comprehensive idea of current moods and expectations of advertisers, advertising agencies and platforms regarding volumes and segmentations of platforms to immediate prospects.
The president of IAB Russia Boris Omelnitskiy in an open letter to interactive advertising market’s participants has approached with a proposal to take part in the research and support the project.
Dear colleagues and experts of interactive advertisement market!
On behalf of Association, I am pleased to inform that to our cooperative activity on development of the market we have attracted PwC Company for the study “Russian Market Digital Ad Spend 2017-2020”.
Within the project verification of the market evaluation on totals of 2017 and construction of the development forecast of the advertising digital tools for the nearest three years as compared with other media, such as ТВ, Radio, Press and Outdoor advertising is planned.
The committee on researches IAB Russia throughout the last three years leads the evaluation of the interactive advertising market in Russia on its own technique relying to expert community and co-operation with PwC will become following step in increase of transparency and accuracy of the evaluation
PwC actively co-operates with IAB US and IAB UK in projects by estimations and researches of the interactive advertising market and I am happy that they will bring their experience to Russia.
I ask all participants, players and advertising market users to support the research and to assist employees PwC at surveys and interview.
Let’s make the market of interactive advertising more clear!
OBJECTIEVES OF THE RESEARCH
- Verification of the evaluation Russian interactive advertising market volume in Internet, including mobile advertising, for 2017
- Forecast preparation of its dynamics in 2018-2020 as compared with other media (TV, UN, press and radio);
- Determination of the most significant trends and the development objectives of Russian interactive advertising market for the nearest 3 years.
In the context of the research, the volume of the Russian interactive advertising market on the Internet is understood as the amount of money spent communicating with the Russian audience, regardless of who is the advertiser and on what platform the advertising content is located.
In the research gross rating of the receipts will be used from advertising, without VAT. Size of commissions, discounts and partner remunerations will be taken into account at the stage of comparison of data between buy-side by the agencies and platforms \ sellers. Measurement of actual volume of the interactive advertising market and its forecasting will be carried out within four segments by the way of the collection and data aggregation from market players.
- Performance search
- Performance CPx
- Branding video
- Branding banner.
All forecasts are based on the results of the past periods data collection from various sources. In the research, the facts for 2017 received from market players will be used.
To get more accurate analysis the interviewed market players will be divided into the following categories:
- Technological vendors.
Measurement of the market volume will be led on the shear between buy-side agencies and platforms \ sellers so that to compare which amount of the platform and sellers sold, and the agencies - purchased an advertising inventory.
Calculation of the actual market volume for 2017 will be implemented as follows:
- A number of the largest companies will be identified on the side of the platforms \ sellers, at which the actual data will be collected using a questionnaire.
- The list of the largest buy-side companies of agencies will be determined, at which using a questionnaire correlation distribution of advertising budgets between the list of platforms chosen during the first phase and other platforms will be received.
- With the help of information on the actual revenue of the selected list of platforms and the share that these companies are engaged in in agency purchases, the total amount of advertising proceeds of the sites
- Items 1-3 will be repeated for the list of the largest agencies, with the aid of what will be received the total sum of advertising stock purchases by the agencies.
- Using a questionnaire, the information about proceeds of technological vendors will be received.
- A series of interview with the experts of industry presenting various market players - agency, platform, sellers, technological vendors will be carried out.
- Received data will be aggregated and indiscriminate, as well as compared and verified among themselves. Apart from it, evaluation and comparison of assembled data with data from public reports will be carried out, including official statistics.
Forecasts preparation includes both quantitative and qualitative analysis of ratings. Forecasts are result of careful under study questions circle definition, constructions of schematic market structure, data acquisition, statistical simulation, check and acknowledgement of correctness of received results.
At forecasts preparation many factors will analysis, including economical, demography, behavioral, technological, competitive conditions and state legislation, as well as a series of specific growth factors which will influence to market change.
Making forecast of market change on 2018-2020 will be conducted as follows:
- The interrogation of the representatives of all market players about expectations of growing incomes of the company particularly and volume of the market as a whole for following 3 years will be conducted.
- Using the received information the calculation of the middle expectation of companies, additions weighted by the volume of their receipts will be made..
- Market growth expectations will be calculated by means of calculations of average values by segments.
- Interviews will be held with advertisers, market experts and representatives of other media (UN, TV, press, radio) to discuss key trends and obtain expert estimates of market development forecasts.
- To obtain the final forecast values, the indicators obtained in stage 3 will be compared with:
- By information received by results of interview;
- By retrospective data on past periods;
- By common economical trends and its possible influence;
- By prognosis data from PwCOutlook;
- By industry’s trends and its influence to financial companies ratings by the example of foreign markets.
As addition to research comparative data on other segments of Russian advertising market for (TV, UN, radio and press) 2017-2020 will be presented. Comparative data will be received from the open sources (PwCOutlook, AKAR etc.).
ALEXEY OKISHEV, THE CHIEF OF THE DEPARTMENT OF ANALYSIS AND THE CONTROL OF THE RISKS PWC.
“Confidence in the effectiveness of advertising costs is today a key challenge for all players in the Russian media market, and particularly for the interactive advertising segment. The maximum effectiveness of an advertising campaign is achieved not only due to high-quality advertising message, but also due to correctly configured targeting, precisely selected set of communication channels, as well as the volume and degree of the audience involvement.
To get the maximum benefit from the advertising campaign, it needs to have reliable and understandable indicators of the advertising effectiveness, the optimization of which will improve communications with consumers. We are sincerely convinced that in the future, advertising incomes will be determined by the ability of market players to offer transparent scorecards to determine and assess the extent of audience coverage and activity on various platforms.
In turn, the system of efficiency ratings advertisings is directly related to an accurate assessment of the advertising market. Joint research with IAB Russia on the evaluation of the Russian interactive advertising market for 2017-2020 is designed to improve the accuracy of market valuation, and PwC's participation as an independent expert ensures impartiality and transparency of data.
We believe that such cooperation in the field of measurement and analysis of interactive advertising in Russia will be beneficial to all market players and will make a positive contribution to the transformation of the advertising industry, which undergoes significant changes in methods and methods of advertising, when digital advertising is gaining more and more development. "