Retail Platform Advertising - Russia

In Russia, ad spending in the Retail Platform Advertising market market is projected to reach US$2.06bn in 2024.
The ad spending in Russia is expected to show an annual growth rate (CAGR 2024-2030) of 10.22%, resulting in a projected market volume of US$3.69bn by 2030.
The average ad spending per user in the Retail Platform Advertising market market in Russia is projected to amount to US$45.85 in 2024.
In a global comparison, the majority of ad spending will be generated the United States, which is expected to reach US$57.63bn in 2024.
In Russia, the retail platform advertising sector is increasingly focusing on localized content to better engage consumers amidst evolving digital consumption habits.

Definition:

Retail platform advertising (RPA) refers to digital ads displayed on websites and apps dedicated to retail platforms, such as Amazon, Walmart, eBay, Alibaba, and JD.com. This includes all types of advertising across various devices, e.g., PCs, smartphones, and tablets, and covers formats such as sponsored products, banners, and videos. RPA specifically excludes offline retail ads (e.g., in-store displays and billboards), off-site ads (e.g., ads appearing on non-retail websites or apps), ads on social media platforms (e.g., Facebook or Instagram), and ads on search engines (e.g., Google or Bing).

Additional Information:

It is important not to confuse RPA with retail media networks (RMNs). RMNs involve digital ads that are also displayed on retail e-commerce sites or apps, but these ads are purchased through a retailer’s media network or a demand-side platform (DSP). While RMNs include ads on sites such as Amazon and Walmart, they also cover ads bought through networks such as Amazon DSP, Walmart Connect, and Etsy’s Offsite Ads, and these ads may not necessarily appear directly on the retailer’s e-commerce site or app. Unlike RPA, RMNs represent a broader approach that encompasses a range of ad placements, both on and off the retailer’s own platforms.

Digital ads displayed on websites and apps dedicated to retail platforms
All types of advertising across various devices, e.g., PCs, smartphones, and tablets
All types of sponsored ad formats, such as sponsored products, banners, and videos

Offline retail ads (e.g., in-store displays and billboards)
Off-site ads (e.g., ads appearing on non-retail websites or apps)
Ads on social media platforms (e.g., Facebook or Instagram)
Ads on search engines (e.g., Google or Bing)

The Retail Platform Advertising Market in Russia is witnessing subdued growth, impacted by factors such as economic challenges, regulatory changes, and evolving consumer preferences, which collectively shape the dynamics of advertising investments in the region.

Customer preferences: Consumers in Russia are increasingly gravitating towards personalized shopping experiences, driven by a desire for convenience and tailored product recommendations. This trend is evident in the growth of AI-driven algorithms that curate options based on individual preferences. Additionally, the rise of e-commerce has led to a demand for integrated shopping experiences across platforms, blending online and offline retail. As lifestyle factors shift, particularly among younger demographics, brands are adapting their advertising strategies to emphasize sustainability and local products, reflecting cultural values and social consciousness.

Trends in the market: In Russia, the Retail Platform Advertising Market is experiencing a notable shift towards data-driven marketing strategies, with brands leveraging consumer data to create highly personalized advertising content. As mobile commerce continues to expand, advertising on social media platforms is becoming increasingly integrated with e-commerce functionalities, enhancing user engagement. Additionally, there is a significant emphasis on sustainability, prompting brands to highlight eco-friendly practices in their campaigns. These trends underscore the need for industry stakeholders to adapt their strategies to meet evolving consumer expectations while fostering a more sustainable retail environment.

Local special circumstances: In Russia, the Retail Platform Advertising Market is shaped by a unique blend of cultural and regulatory factors that set it apart from other regions. The vast geographical expanse and diverse demographics create challenges in targeting, necessitating a localized approach to advertising. Furthermore, the influence of Russian digital culture, characterized by a strong preference for social media interaction, drives brands to build community-focused campaigns. Additionally, strict regulations surrounding data privacy compel advertisers to innovate within compliance, leading to a more transparent relationship with consumers.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Russia is significantly influenced by macroeconomic factors such as fluctuating consumer purchasing power, inflation rates, and shifts in national fiscal policies. The ongoing geopolitical tensions and sanctions have led to economic volatility, affecting consumer confidence and spending habits. Additionally, the growing digital economy and increased internet penetration open new avenues for retail advertising, although these opportunities are tempered by stringent regulations on data usage and advertising practices. As brands navigate these complexities, a focus on innovative, cost-effective strategies becomes essential for maximizing engagement and driving sales in a challenging economic landscape.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on Retail platform ad spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year. In some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.