Programmatic Buying in Russia

The global marketing industry has been revolutionized by the advent of programmatic buying, and Russia has embraced this innovative approach with open arms. This powerful tool has enabled advertisers to purchase ad space on various websites directly and in diverse formats, streamlining the process while saving both time and money. Although programmatic buying technology is still evolving and cannot address all challenges at present, its potential for resolving them is undeniable. To gain deeper insights into the current state of programmatic buying in the Russian market, refer to the informative material provided by Quarter Billion Agency Group.

Programmatic buying encompasses a range of methods employed for the automated purchasing of media advertisements. Robotic systems now work on both the seller’s and customer’s sides, meticulously analyzing customer requirements such as audience quantity and quality, website traffic, and status. By comparing this information with data from numerous other websites, these systems efficiently determine the optimal placement of ads within seconds, benefiting both website owners and customers. Initially utilized for online sales, programmatic buying has expanded its reach to encompass television and out-of-home advertising as well.

Programmatic buying encompasses various sets of practices, one of which is Real-Time Bidding (RTB). RTB involves the real-time auction-based purchase of advertisements using advanced technology. Additionally, programmatic technologies are employed in private business contracts and advertising auctions.

Industry experts discuss a holistic approach to procurement that leverages Big Data instead of relying solely on specific practices. Big Data refers to vast and rapidly incoming digital information that is impossible to manage manually. Its utilization enables businesses to gain valuable insights and make informed decisions in an increasingly data-driven landscape.

At present, when it comes to the adoption of that particular technology, Russia lags behind Western countries. Nonetheless, the Russian market for Programmatic buying is witnessing rapid growth and is poised for further expansion. Furthermore, the market is characterized by diversity and a wide range of segments.

• Public auctions provide the opportunity to purchase banner formats with the assistance of Demand Side Platforms (DSPs) via a stock market system. These auctions offer a significant quantity of affordable advertising inventory, making it the primary source for obtaining such inventory.
• Private software purchasing systems have emerged within the online market, where certain participants develop their own advertising selling platforms. Prominent examples include Mail.ru and Yandex, both of which have established their own dedicated systems for selling advertisements.
• Fair deals involve advertisers directly purchasing advertising inventory from websites. Another aspect to consider is mobile advertising, which, for various reasons, can be regarded as a form of Programmatic buying to some extent. Despite this classification, the mobile advertising segment continues to witness growth.
• In the Russian market, multiple agencies specialize in re-engaging with the audience of advertisers’ websites by utilizing retargeting or purchasing strategies based on the accumulated client data.
• Banner networks that utilize audience data, dynamic pricing, and real-time optimization can be categorized under the RTB (Real-Time Bidding) category.

The RTB purchasing model is gaining popularity in Russia, expanding beyond its previous usage by banks and eCommerce representatives. Nowadays, automated purchases are utilized by advertisers across various categories. Leading the way in this sphere are Fast Moving Consumer Goods producers, retailers, and representatives from the auto market.

A relatively new addition to the Programmatic market is the pharmaceutical segment, which experienced significant growth in 2015. Conversely, the market share of eCommerce and banks is decreasing.

Programmatic buying technologies are continuously evolving, and we can identify several ways in which technology is expected to develop:

• Utilizing branded data for advertising placement: Many companies gather substantial amounts of personal data about their clients, particularly banks and mobile operators. This data can be effectively leveraged for automated ad purchases.
• Enhancing the quality of advertising inventory and emphasizing the role of procurements: There is a growing focus on improving the quality of available advertising inventory, and procurement processes are playing an increasingly important role in achieving this goal.
• Advancements in multi-screen monitoring control: Solutions are emerging in the field of multi-screen monitoring control. For instance, platforms like Google DoubleClick currently allow us to assess unique coverage based on campaign results while taking into account specific device types. In the near future, it will be possible to make purchases with a focus on this specific setting.

In today’s advertising market, Programmatic technology is driving development. Automated systems have the ability to analyze vast amounts of data within seconds and select the most suitable advertising options for both sellers and clients. This efficiency surpasses the capabilities of traditional media planners. At Quarter Billion Agency Group, our specialists are here to assist you in navigating the system of automated advertisement purchasing in Russia.