Digital Video Advertising - Russia

Ad spending in the Digital Video Advertising market in Russia is forecasted to reach US$1.09bn in 2024.
The market is expected to experience an annual growth rate (CAGR 2024-2030) of 5.93%, leading to a projected market volume of US$1.54bn by 2030.
With a projected market volume of US$85.39bn in 2024, the majority of revenue will be generated the United States.
In Russia, 85% of the total ad spending in the Digital Video Advertising market is anticipated to come from mobile in 2030.
The average ad spending per internet user in the Digital Video Advertising market is expected to be US$8.31 in 2024.
Connected TV ad spending in the Digital Video Advertising market in Russia is projected to reach US$160.40m in 2024.
Connected TV is estimated to have an annual growth rate (CAGR 2024-2030) of 7.76%, resulting in a projected market volume of US$251.20m by 2030.
Ad spending on short-form videos in the Digital Video Advertising market in Russia is forecasted to reach US$552.10m in 2024.
The ad spending on short-form videos is projected to have an annual growth rate (CAGR 2024-2030) of 8.18%, resulting in a projected market volume of US$885.10m by 2030.
Russian companies are increasingly utilizing programmatic buying and data analytics in digital video advertising to target specific audiences effectively.

Definition:
Digital Video Advertising includes all ad formats within webpage-based videos, app-based video players, social media, or streaming apps on computer screens, smartphones, tablets, and other internet-connected devices. Videos that seamlessly match the form and function of the environment (e.g., news websites, video platforms) in which they appear (so-called native advertising) are also included in Digital Video Advertising.

Additional information:
Digital Video Advertising comprises advertising spending, connected-TV advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending. Figures are based on Digital Video Advertising spending and exclude agency commissions, rebates, production costs, and taxes. Key players in Digital Video Advertising include Comcast Corp., The Walt Disney Company, YouTube, TikTok, and Facebook. For more information on the data displayed, use the info button right next to the boxes.

All ad formats within webpage-based videos, app-based video players, social media networks, or social media apps
Pre-roll, mid-roll, and post-roll video ads
Text- or image-based overlays that appear in video players
Native advertising
Connected TV advertising
Ad spending on short-form videos

Traditional TV advertising video formats broadcasted over traditional transmission channels (e.g., DTT, cable, satellite)
Addressable TV ads, targeted advertising to individual households via set-top boxes; including cable and satellite using addressable technologies such as Dynamic Ad Insertion (DAI)

The Digital Video Advertising market in Russia is experiencing significant growth and development.

Customer preferences: In Russia, there is a strong demand for digital video advertising among consumers. With the increasing penetration of smartphones and internet access, more people are consuming video content online. This has led to a shift in consumer preferences towards digital video advertising as a means of reaching and engaging with the target audience.

Trends in the market: One of the key trends in the Russian Digital Video Advertising market is the rise of programmatic advertising. Programmatic advertising allows for more targeted and personalized ad campaigns, which can result in higher engagement and conversion rates. Advertisers are increasingly adopting programmatic advertising to optimize their digital video ad campaigns and reach the right audience at the right time. Another trend in the market is the increasing popularity of native video advertising. Native video ads seamlessly blend into the user's online experience, making them less intrusive and more engaging. This type of advertising is gaining traction in Russia as it provides a more organic and non-disruptive way of delivering video ads to consumers.

Local special circumstances: One of the unique aspects of the Russian Digital Video Advertising market is the dominance of local video platforms. While global platforms like YouTube and Facebook are popular in Russia, there are also several local platforms that have a significant user base. Advertisers need to consider these local platforms and tailor their digital video ad campaigns to reach the desired audience effectively. Furthermore, the Russian market has its own cultural and linguistic nuances that need to be taken into account when creating digital video ads. Advertisers should consider local customs, traditions, and language preferences to ensure their ads resonate with the target audience and drive engagement.

Underlying macroeconomic factors: The growth of the Digital Video Advertising market in Russia can be attributed to several macroeconomic factors. The increasing internet penetration and smartphone adoption rates have provided a larger audience base for digital video advertising. Additionally, the rising disposable income and changing consumer behavior towards online consumption have contributed to the growth of the market. Furthermore, the Russian government has been actively promoting digitalization and technological advancements in the country. This has created a favorable environment for the development of the Digital Video Advertising market, with increased investments in infrastructure and technology. In conclusion, the Digital Video Advertising market in Russia is experiencing significant growth and development. Customer preferences are shifting towards digital video advertising, driven by the increasing consumption of video content online. Advertisers are adopting programmatic advertising and native video ads to optimize their campaigns and engage with the target audience effectively. Local special circumstances, such as the dominance of local video platforms and cultural nuances, need to be considered when creating digital video ads. The growth of the market can be attributed to underlying macroeconomic factors such as internet penetration, smartphone adoption, and government support for digitalization.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats (web-based, app-based, social media, and connected devices).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, internet users, and digital consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, 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 case market dynamics change.

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

From six-second bumper ads to multi-minute compilations, video marketing is constantly evolving, and audiences everywhere never fail to tune in. As the number of digital video viewers keeps rising every year, marketers embrace video as a promotional tool more vividly than ever. In 2023, digital video ad spending amounted to almost 176.63 billion dollars. Unsurprisingly, the United States remains the country with the highest spending on digital video ads, followed by China and the United Kingdom. Connected TV (CTV) and social video are among the most popular content marketing tactics worldwide, and the post-pandemic era has only consolidated companies’ dependency on these tools.