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In 2022, the advertising market may fall by 40-60% compared to last year

According to the Association of Communication Agencies of Russia (ACAR), in 2021 the advertising market grew by 22%, reaching 578 billion rubles. These are the best figures since 2008, but in 2022 Dentsu Russia holding analysts predict a sharp drop of 40-60% compared to 2021.

The Kommersant publication got acquainted with the results of the AKARA study. According to the data provided, the growth was 22% compared to 2020 and 17% compared to 2019 (there was a drop in 2020 due to the coronavirus pandemic). Indicators have improved in almost all segments of the advertising market.

Internet advertising - growth to 313.8 billion rubles in 2021 (24% by 2020 and 29% by 2019).

Advertising on television - growth to 197.3 billion rubles (17% by 2020 and 13% by 2019).

Radio advertising — growth to 14 billion rubles (an increase of 25% by 2020 and a fall of 12% compared to 2019).

Out of home advertising — growth to 45 billion rubles (40% by 2020 and 3% by 2019).

Advertising in the press - growth to 8.2 billion rubles (2% by 2020, but 46% less than in 2019).

Despite encouraging figures in 2021, analysts predict a sharp drop in the advertising market in 2022. Against the backdrop of events in Ukraine, foreign advertisers (such as PepsiCo, Procter & Gamble, L`Oreal Groupe and Unilever) are terminating or rescheduling contracts. At the same time, they account for about half of the television advertising market. According to the communication holding Dentsu Russia, the Russian advertising market "virtually froze", and the plans of manufacturers "came under pressure due to problems with the exchange rate, logistics and political pressure."

Dentsu Russia predicts a market decline of 40-60% in 2022 compared to 2021. ACAR believes that there will certainly be losses, but in the current realities, making forecasts is incorrect or even harmful for the industry. The models used to calculate losses during the economic crisis are not applicable to the current situation. ACAR Vice President Sergey Veselov notes that the Russian market is not ready to abandon foreign advertisers: “They spent several billion on investments in Russia, they have production in Russia, if they leave, they will lose the largest consumer market in Europe with 145 million consumers” .

In 2022, the advertising market may fall by 40-60% compared to last year