Russian Advertising Market 2024
Another important trend is the narrowing income gap between regions. The least developed regions are demonstrating higher income growth rates, which bodes well for the development of retail and other industries.
Russian Advertising Market 2024
The leveling off of the situation can be clearly seen in north american healthcare sector data the growth in demand for goods. Thus, by the end of 2023, Russians' spending had accelerated by more than 20% compared to December. Demand increased in almost all segments, especially for durable goods (cars, household appliances, electronics), as well as for food eaten outside the home. Clothing and footwear were the exception.
Russian Advertising Market 2024
Along with rising demand, prices have risen sharply since May of last year. Inflation in December stood at 7.42%. This occurred against the backdrop of a weak ruble and a lower base for the second half of 2023.
It's noticeable that inflation varies by category. The largest price increases are for food products. This has, among other things, increased the role of online shopping, where consumers believe they can find goods at lower prices. Double-digit growth rates are forecast to persist for at least another five years, until market saturation. This scaling will occur through large retail formats.
Russian Advertising Market 2024
Media market
The advertising market is reaching historic highs in spending. While the global advertising market is growing at 5.3-5.8%, the Russian market is expected to grow at a rate of 45% by the end of 2023. It is forecast to grow by a further 32% by the end of 2024.
According to research company Mediascope, the top five categories that have remained leaders in the media market since the "pandemic" year of 2020 are: retail, finance, the service sector, FMCG, and pharmaceuticals.
The media market as a whole is showing positive trends, with growth forecast. Demand for all media is increasing, with digital technologies scaling faster than other technologies.
Among the growth factors:
high competition in top categories;
activating localized enterprises that create new brands and images;
the presence of large advertisers with diverse assets;
entry of new small and medium-sized business players into the market;
the growth of e-commerce, with marketplaces becoming TV resellers.
In addition, the active promotion of social initiatives by the state also has a positive effect.