In 2019, the Russian outdoor advertising market experienced growth and development

According to the Russian Association of Communication Agencies’ 2018 ad display report, out-of-home advertising in Russia totaled 43.8 billion rubles ($63 million), a 3% increase from 2017. However, compared to TV and online ads, OOH ads experienced lower growth rates. TV ads totaled 187 billion rubles ($2.7 billion) and grew by 9%, while online ads demonstrated the highest growth rate of 22% and amounted to 203 billion rubles ($2.9 billion).

Top 10 Russian OOH Advertisers

AdIndex reports that construction, telecommunication, FMCG, banks, and electronics manufacturers are the top out-of-home advertisers in Russia. The top 10 out-of-home advertisers in Russia, according to AdIndex, are as follows:

2019 OOH Trends

One should keep in mind that the outdoor advertising market is diverse, and growth is primarily associated with segments that actively integrate new technologies or approaches. Experts emphasize that a key factor in successful out-of-home advertising is raising the creative bar.

Placement on digital billboards

According to ADV Group’s forecast, the out-of-home advertising market in Russia is expected to grow by only 5% in 2019 and 6% in 2020. However, the Director of OOH at ADV, Dmitry Gribkov, believes that increased advertiser spending on Digital Out-Of-Home (DOOH) could boost market growth by several percentage points. ADV reported that DOOH accounted for 19% of outdoor advertising budgets in Russia in 2018, and this figure is expected to increase to 35% by the end of 2020.

Yandex began placing digital out-of-home ads on Moscow billboards in 2018, using an auction model. Customers state their rates and budget, while Yandex algorithms determine where and when the ads will be displayed. Payment for digital billboard ads is made per 1K OTS (Opportunity to See).

In 2019, the key trend in OOH development in Russia is expected to be the placement of ads on digital billboards. However, this trend may only impact large cities like Moscow and Saint Petersburg, as Russian regions are not yet prepared for digital out-of-home advertising. According to Olga Kovalchuk, the General Director of VirGo Group advertising agency in Nakhodka, this is mainly due to local laws and the lengthy process required to obtain approval for replacing static structures with new dynamic ones.

Programmatic in OOH

In May 2019, Russ Outdoor and GetIntent announced the successful development and testing of an SSP platform that enables the purchase of audience (OTS/CPM) instead of plays.

To collect information about the audience, optical cameras and a proprietary Wi-Fi network are used to measure the flow of people driving or passing by advertising structures. Real-time data is transmitted through the network, and the sumstat allows for the use of unique data in planning.

Communication comes first

As digital advertising media continue to dominate their share of the market, content trends are shifting towards fostering a dialogue with consumers.

Experts predict that the following features will be popular in the upcoming year:

• instead of using aggressive and pushy appeals such as “Buy!” or “Choose me!”, the focus of advertising is shifting towards storytelling and engaging potential consumers through a narrative that allows them to see themselves in the story. This softer approach is becoming increasingly popular in the industry;
• the storytelling approach is also being implemented step by step, with an advertising story being told through a series of billboards located one after another along a particular route. These series of billboards, which develop a theme, have proven to be highly effective in grabbing the attention of people who commute to work every day;
• the era of curlicue calligraphy is a thing of the past, and the trend is now towards simplicity and purity of lines. Simple fonts are in vogue and highly sought-after in the industry;
• respect is paramount in advertising, and caution must be exercised when using allegories and humor. Anything that can offend or insult any social group, such as racial prejudices or sexism, is strictly prohibited. In today’s world, it is easier than ever before to damage your reputation by violating the feelings of any group;
• combining creativity with provocation is a powerful mix that is sure to attract attention. It’s not just about making an appeal, but about grabbing the viewer’s attention and then explaining what the offer is all about.

Omnichannel and virality

Interestingly, outdoor ads have the ability to motivate pedestrians to share content on social media. If a billboard is eye-catching, innovative, and creative, people are eager to click on hashtags and visit social accounts or share posts containing selfies and amusing ad images on social media. This has an undeniably favorable effect on the reach and outcomes of advertising.

A remarkable instance of creative out-of-home advertising that went viral on the internet was the promotion of Italian cuisine that evaded the police. A small Italian shop in the heart of Moscow was struggling to survive amidst the food embargo. As a result, the agency developed a creative solution: ordinary passers-by could see ads of the Italian shop on the banner, but if a policeman approached the banner, the ads changed to those of shops with the best matryoshka dolls. According to the video, facial recognition technology was utilized to change the banners, which was reprogrammed to identify elements of the Russian police uniform. It is difficult to estimate the number of people who saw the banner on the street, but the video has already been viewed by over 600 million users.

Conclusion

In 2019, the integration of traditional out-of-home advertising and new technologies is happening. To enhance the reach and effectiveness of brand promotion in the Russian market, it is crucial to combine different ad placement formats.

The experts at Quarter Billion Agency Group are keeping a close eye on market trends and can assist you in selecting the best advertising channels that fit your offer and target audience.

Get insights into the unique features of the Russian media market by reading our White Paper “How Does the Media-Buying Market in Russia Work? A media buyers’ quick guide for effective work in Russia”.