Retail Platform Advertising - Ukraine

In Ukraine, ad spending in the Retail Platform Advertising market market is projected to reach US$84.17m in 2024.
This ad spending is expected to exhibit an annual growth rate (CAGR 2024-2030) of 29.75%, leading to a projected market volume of US$401.70m by 2030.
The average ad spending per user in Ukraine's Retail Platform Advertising market market is anticipated to amount to US$10.24 in 2024.
In a global context, the highest ad spending will be generated the United States, which is expected to reach US$57.63bn in 2024.
In Ukraine, the retail platform advertising sector is witnessing a significant shift towards digitalization, driven by growing consumer demand for personalized online shopping experiences.

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 Ukraine is witnessing mild growth, influenced by factors such as evolving consumer preferences, increased digital engagement, and the need for targeted marketing strategies amidst a competitive landscape.

Customer preferences: In Ukraine, consumers are increasingly gravitating towards personalized shopping experiences, prompting retail platforms to adopt advanced data analytics and AI-driven marketing strategies. The rising influence of social media and online communities is shaping brand loyalty, as younger demographics seek authentic connections with brands. Additionally, a growing preference for sustainability is driving demand for eco-friendly products, compelling retailers to highlight their commitment to ethical practices in advertising. These shifts necessitate a responsive approach to meet the evolving expectations of diverse consumer segments.

Trends in the market: In Ukraine, the Retail Platform Advertising Market is experiencing a surge in the adoption of AI-driven strategies, as retailers leverage data analytics to deliver hyper-personalized shopping experiences. The influence of social media is reshaping brand engagement, particularly among younger consumers who prioritize authenticity and community. Moreover, sustainability trends are prompting retailers to prominently feature eco-friendly products, reflecting a growing consumer preference for ethical practices. These developments are significant as they necessitate agile marketing strategies, compelling industry stakeholders to adapt swiftly to consumer expectations and enhance brand loyalty.

Local special circumstances: In Ukraine, the Retail Platform Advertising Market is shaped by a unique blend of cultural resilience and economic challenges stemming from ongoing geopolitical tensions. The strong emphasis on community ties and local artisans fosters a preference for domestically produced goods, prompting retailers to highlight local brands in their advertising strategies. Additionally, regulatory frameworks are evolving, with a focus on consumer protection and data privacy, influencing how retailers collect and utilize consumer data for targeted advertising. This context drives a demand for innovative solutions that resonate with consumers' values and aspirations.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Ukraine is significantly influenced by macroeconomic factors such as inflation rates, consumer spending patterns, and currency stability. Ongoing geopolitical tensions have led to fluctuations in economic performance, impacting consumer confidence and purchasing power. As the government implements fiscal policies aimed at stabilizing the economy, there is a growing emphasis on supporting local businesses, fostering a preference for homegrown brands in advertising strategies. Moreover, global economic trends, including shifts in e-commerce and digital marketing innovations, are prompting retailers to adapt their advertising approaches, ensuring they resonate with a consumer base seeking authenticity and value amidst uncertainty.

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.