Continuing the recovery that began in 2016, the Ukrainian advertising market showed growth in 2017 and is predicted to strengthen this year.
According to the latest report by All-Ukrainian Advertising Coalition, advertisers spent $578 million (Hr 16.2 billion) in 2017, compared to $427 million (Hr 11.6 billion) the year before.
The coalition experts expect this year’s market to reach $721 million (Hr 20.4 billion), which makes 26 percent growth comparing to 2017.
Last year, the All-Ukrainian Advertising Coalition predicted advertising market to reach Hr 14.8 billion, or $540 million. Although Ukraine’s currency was unstable, the market surpassed expectations.
Anastasiya Baydachenko, an All-Ukrainian Advertising Coalition Board member, says the growth in advertising spending is a sign of an improving economy and better investment climate in Ukraine.
“All the media have grown, but a significant contribution to it was made by outdoor advertising, the internet and television,” Baydachenko told the Kyiv Post.
TV ads accounted for the biggest share last year — Hr 7.3 billion or $262 million, showing 29 percent growth compared to 2016.
However, Baydachenko says that internet advertising — showing steady growth — is breathing down the neck of TV. She says that, over the next few years, internet advertising will most likely take first place.
“It corresponds not even to a global but already regional trend.”
She says that online media are favored by more advertisers such as those engaged in e-commerce.
Online ads showed the greatest growth in 2017, compared to other media, with a 39 percent burst, increasing its share of the market to Hr 4.3 billion, or $155 million.
The main drivers of digital advertising last year were paid search (advertising in the sponsored listings of a search engine), digital video and mobile ads.
Baydachenko points out that there was a significant increase in the consumption of online media using mobile devices and this trend is predicted to intensify next year.
The experts expect the Ukrainian advertising market to continue growing in 2018.
“All-Ukrainian Advertising Coalition expects advertisers to keep increasing investments in different channels of communication,” the report reads.
According to Baydachenko, next year television and digital media will take the lead, leaving a great gap between them and other media such as print and radio.
TV ads are predicted to reach Hr 9.2 billion or $327 million, growing by 26 percent.
Meanwhile, digital media are expected to make Hr 5.6 billion ($200 million), growing by 30 percent.
Baydachenko says that another trend for online ads will be a surge of advertisers’ interest in Youtube as a new media.
“The coverage of some of the Ukrainian Youtube channels reaches tens of millions of people, which is comparable to television, but it allows to use targeting by audience or geolocation.”
According to report, print media will slightly grow this year by 18 percent, increasing its investment from Hr 1.3 billion ($48 million) now to Hr 1.6 billion ($56 million) in 2018.
Over the last two years, the market has developed much faster than most commodity categories in Ukraine, since it continued to recover from the crisis, however, the next year the dynamics of growth will lower.
“The growth of advertising investment will increasingly correlate with the general economic realities,” the report continues.
