Page 175 - RusRPTApr23

tech and internet majors as VK (former Mail.ru) and Yandex.
As followed by bne IntelliNews, both companies managed to survive the market decline through boosting their market shares, although VK was burdened by higher costs and leverage.
Other market participants, such as OMD OM, estimated that the internet ad market shrank by 15%. The main factor behind the decline in the ad market in 2022 was the departure of foreign advertisers, according to ACAR, especially in the food, beverage and fast moving consumer goods (FMCG) segments. Blocking of Instagram and Facebook (owned by Meta, a company labelled an “extremist” organisation and banned in Russia), has also influenced the market.
The market participants surveyed by Vedomosti believe that the ad market in 2023 will grow in by 3%-7%, recovering to the 2021 level, helped by the development of leading categories (ecosystem Internet players, finance, retail, real estate, etc.), further localisation of brands, as well as the arrival of new advertisers from "friendly economies" (Turkey, China and India).
The Russian advertising market is expected to surge to 17% growth to RUB657bn ($8.5bn) in 2023, with the main beneficiaries being video streaming platforms and bloggers, Kommersant daily reported citing a report by the Okkam agency.
As followed by bne IntelliNews, Russian advertising market declined by 2% in 2022 in 2022. The biggest share of the ad market in 2022 accounted for the internet placements, which also slid by 2% to RUB325bn, posting the first recorded decline in their history.
The internet ad market is in focus, as it is the main revenue source for such tech and internet majors as VK (former Mail.ru) and Yandex. Both companies managed to survive the market decline through boosting their market shares, although VK was burdened by higher costs and leverage.
At the same time, the online cinema and video streaming market in 2022 managed to register growth and showed increased demand for domestic original content amid isolation due to the full-scale military invasion of Ukraine.
While video streaming and blogging internet advertising sub-segments are expected to post the fastest growth in 2023, all of the market participants surveyed by the daily agree that printed press will be the segment worst hit in 2023. Ad revenues anticipated to shrink by up to 25%, after print press ads already saw a 41% plunge in revenues in 2022 mainly due to the departure of major foreign advertisers.
Apart from the Okkam study cited by Kommersant, Group4Media expects the
175 RUSSIA Country Report Russia April 2023 www.intellinews.com