Trends in Video Advertising as a Promotional Tool in the Russian Market for 2022

Video advertising has long been recognized as one of the most effective ways to engage with audiences, and according to invesp, over 90% of advertising experts consider it a crucial part of product promotion strategy. In 2022, it is predicted that video advertising will make up 82% of the world’s internet traffic. This is due to the fact that 6 out of 10 users prefer video ads online over traditional TV commercials. Video content is also known to increase website traffic by 87%, extend user visit times by 81%, attract potential customers by 83%, and enable them to see all the product’s benefits, resulting in an 80% increase in sales. Moreover, video ads receive 48% more views than text or graphic content, making it an ideal format for product promotion.

In 2021, 71% of users watched more videos than in the previous year, and 90% of consumers believe that video advertising helped them make informed purchasing decisions. These figures are consistent across different markets and regions, although the channels for promoting video content may vary depending on the product type and country.

Especially in Russia

The Association of Communication Agencies of Russia reported that in 2021, video advertising on the internet cost a total of 32.9 billion rubles, which is 1.5 times more than the combined budget for radio and press advertising (22.2 billion rubles). This highlights the high demand for this promotional format on the market. However, in 2022, the conventional means of communicating with the audience have undergone significant changes.

At the beginning of the year, the Russian advertising market was completely transformed, leading to an urgent “relocation” of all advertising traffic to domestic social services due to the blocking of foreign platforms. As a result, Russian advertisers lost access to Google Ads and could no longer place video ads on popular platforms such as Youtube, TikTok, Instagram*, and Facebook* (owned by Meta**). These were replaced by Rutube, VKontakte, and other platforms.

Nevertheless, it is important to note that each channel has its specificities, advantages, and disadvantages, which vary depending on the type of video content, target audience, and other factors. RMAA experts have conducted their own research on popular Russian resources and identified video advertising trends that have emerged in the market in 2022.

Video Content Formats

There are several main formats of video advertising:

1. In-Stream is the most common type of video advertising, similar to traditional TV commercials. The video plays automatically while users watch the content. Advertisers can choose to broadcast ads before, during, or after the content, or when users pause the content. The option to skip ads is often available. In-Stream is responsible for about half of all YouTube budgets in Russia.
2. Out-Stream is a more native format that plays video inside the content on a website or mobile application. It plays automatically when most of the video player is on the screen. Experts believe that Out-Stream is less disruptive to users as it does not interrupt the reading of news or viewing of graphic elements on a website. Users can close the video at any time and continue playback.
3. Rewarded video is commonly used in applications or games, where users receive rewards for watching the video, such as in-game currency. This format is perceived more positively by users.
4. Top-line is a small banner at the top of the screen that plays video automatically without sound.
5. Fullscreen video appears as a pop-up window on the full screen, often without the option to close it. This format can be annoying to users and disrupt their interaction with the content.
6. Wow-roll is an unusual format that incorporates animated elements that go beyond the player and move around the screen. It attracts users’ attention and can be effective on landing pages where users are interested in learning more about a product.

Depending on the type of video advertising and its features, advertisers can integrate product promotion with various channels that support video advertising. In the following discussion, we will delve into these channels and the services available for launching video campaigns on the Russian market, along with their functionalities.

How does Rutube differ from YouTube in the current Russian market?

We have provided an overview of these services as they share a similar interface and focus solely on video content. However, it is important to note that from an advertising standpoint, the platforms differ in functionality due to market characteristics. This became evident earlier this year due to the blocking and restrictions imposed on foreign companies. It should be remembered that YouTube is owned by Google, a subsidiary of the American holding company Alphabet.

In March 2022, YouTube management temporarily suspended advertising for Russian users. However, the video service continues to operate in Russia and broadcasts independent news amidst the global political climate. As a result, integrating video advertising through YouTube’s advertising dashboard is no longer feasible.

As a consequence, many advertisers have shifted their attention to Rutube, the Russian equivalent service, which enables them to broadcast video ads of varying formats in unlimited quantities. This is not the only reason, though. In March of this year, the platform began attracting new users. Alexander Zharov, CEO of Gazprom-Media Holding, revealed that video uploads on Rutube increased from 3,000 to 40,000, and the number of daily users reached 450,000. Furthermore, Zharov stated that Rutube is currently prepared for increased activity since it underwent a complete upgrade at the end of 2021. Nevertheless, in May 2022, Similarweb experts noted a decrease in user activity on the platform, with a monthly outflow of 23 million users. Despite this, Rutube still ranks fourth in the category of “Movies and streaming in Russia,” with YouTube remaining the top choice for Russian viewers.

Looking at the video marketing aspect, it is difficult to declare either service as better or worse than the other. YouTube has a larger user base, but advertising opportunities are limited. On the other hand, Rutube offers more advertising formats, but its audience is smaller. The effectiveness of advertising on each platform depends on the type of integration used. Russian advertisers need to identify which content to broadcast and which service to use. YouTube is ideal for influencer marketing due to its high viewing rates.

Meanwhile, Rutube can help with other video advertising types and provide targeting options. Furthermore, SocialJet experts have expanded the functionality of Rutube beyond this.

Rutube’s Expansion with Rocket Video

Amid the ad blocking situation on YouTube and the growing popularity of Rutube in the Russian market, SocialJet has developed a new video advertising platform called RocketVideo. The platform is exclusively designed for video advertising and enables the promotion of videos from Rutube to external websites, including those with video content. According to SocialJet, their service places up to 6 million views per day. One of the benefits of RocketVideo is its integration with thematic resources, which results in more precise targeting.

An advertiser can choose between two options for placement, depending on the campaign objectives: semi-automatic with the assistance of project managers or fully automated if specific characteristics are not required. RocetVideo supports popular video content formats such as In-Stream (pre-roll) and Fullscreen for the mobile version. The platform’s capabilities enable advertisers to set the required number of video views and increase user traffic to Rutube with the “View on Rutube” button.

In summary, RocketVideo is an effective addition to video advertising promotion on Rutube, enabling content broadcasting to external sites. The platform’s ability to quickly switch advertising activity between various websites is particularly relevant in the unstable Russian advertising market.

Websites that offer online cinema services

According to a report by Telecom Daily in early 2022, the revenue of online video services in 2021 increased by 41% to around 55 billion rubles. A significant part of this revenue, approximately 33 billion rubles, was generated in the second half of the year. However, the market segment faced a wave of sanctions that led to discussions of a possible reduction in budgets. Despite this, online cinemas continue to dominate the market, which is a significant advantage for video marketing.

In general, these platforms utilize In-Stream advertising content and provide additional interactive features. For example, ivi.ru allows users to engage with content through quizzes and other interactive features, while Kinopoisk.ru offers advanced In-Stream advertising that can be placed at the beginning and end of the main content. Since late 2021, Okko has also been offering similar features to advertisers.

Overall, online cinemas are an effective means of promoting products, primarily through In-Stream advertising. Their large audience reach is a key advantage for advertising campaigns seeking broad exposure. However, if the campaign requires more specific targeting, other popular platforms in Russia may be more suitable.

VKontakte and Odnoklassniki offer additional advertising campaign settings

These social resources, which are part of the Mail.ru holding, offer a significant advantage in the form of a single advertising cabinet. The myTarget advertising cabinet enables campaign setup and scaling across multiple platforms simultaneously, such as Odnoklassniki, VKontakte, My World, and Mail.ru partner networks. With flexible targeting settings, advertisers can tailor their campaign to specific audiences based on interests, queries, or geolocation. Two integration formats are available for video advertising: Super Video, which is a Fullscreen advertising video that appears after switching to the website, and Video Post, which has a native format like a regular user post, including text and links.

The extensive functionality of myTarget is a result of data collection from all Mail.ru services, including user search queries, counter data, and pixels. In 2022, the popularity of these services among Russians has increased significantly, with Odnoklassniki reporting a 66% increase in registrations and a 40% increase in activity in March alone. VKontakte also set a new record in March with 1.31 billion video views and 840 million clip views per day. Although there was a slight outflow of users, VKontakte remains the most popular platform, with 3.96 million authors and approximately 13.5 million units of published content per day as of May 15, 2022, according to Brand Analytics.

Furthermore, the platform developers are actively implementing new ways to monetize video content. Professional authors on VKontakte have access to a support program that allows them to earn income from all social network advertising tools. Additionally, a Smart TV application was released at the beginning of 2022, which extends the reach of VKontakte and Odnoklassniki to all user devices.

Therefore, VKontakte and Odnoklassniki are currently among the most versatile channels for promoting video content. Other domestic services are also gaining popularity alongside them.

Yandex.Video and Yandex.Zen: Multiple Video Integration Formats

In 2022, Yandex and its projects have gained significant popularity in Russia. According to analytical data from developers, Yandex’s monthly audience reached approximately 355 million users in May. Such impressive figures provide ample advertising opportunities, especially in the video format, which is highly demanded by the audience. Additionally, Yandex offers two methods for broadcasting video advertising on its platform.

One way to broadcast video ads on Yandex is through Yandex.Direct, which distributes video content throughout its advertising network. This means that the ad will be seen by users of all Yandex services, including Poster, Kinopoisk, TV Program, and partner sites. Video ads can take several formats, such as ad with video elements embedded in the text, in-stream video ads, and rewarded video ads for apps.

Another way to advertise through video is by using Yandex.Zen blog platform. This platform mainly consists of longer videos with a minimum duration of 20 seconds. Advertisers can take advantage of the platform’s focus on native content by targeting their ads based on user interests, subscriptions to popular Zen channels, behavioral reactions, browsing history, and impression statistics. Advertisers can also collaborate directly with platform influencers.

With these various options, advertisers have a wide range of formats and services for promoting their content through video ads on Yandex. Despite its large audience, Yandex’s advertising platform allows advertisers to customize their ads to specific audiences based on various criteria. However, unlike myTarget’s functionality on Odnoklassniki and VKontakte, which allows advertisers to make necessary settings themselves, Yandex requires advertisers to trust the system algorithm.

Excellent Prospects in Every Aspect. In lieu of a concluding remark.

Despite the blockage of YouTube Advertising Cabinets, which is the leading platform in the video advertising market, Russian advertisers still have access to alternative content distribution channels in 2022. These channels include Yandex services, Mail.ru social networks, Rutube, and the Rocket Video platform. Each of these platforms has a wide audience coverage and extensive opportunities for narrow targeting.

Although YouTube is still relevant in Russia, particularly for successful integrations with influencers, it is important to note that video advertising itself has several advantages and greater loyalty among users. Therefore, the effectiveness of product promotion through video content relies heavily on the channels of its distribution and competent targeting.

To ensure successful promotion on the Russian video advertising market, it is recommended to entrust this task to QB Agency specialists who possess the necessary expertise and knowledge of popular video services.