Video advertising in Runet for the six months increased by a quarter

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Video advertising in the Russian Internet in the first half of 2016 increased by 24%, to 2.6 billion rubles, said Ilya Alekseyev, the General Director of the company-seller IMHO Vi, a division of the largest seller of display advertising in Runet. Forecast IMHO Vi, at the end of 2016 video advertising in Runet will grow by 18% and will amount to 6.3 billion rubles.

“Video advertising on the Internet showed really impressive results in the first half of 2016,” said Ilya Alekseyev on Tuesday at the final conference on online video advertising-cinema TVzavr.ru.

Faster TV

For comparison, in 2015 the total video advertising market amounted to 5.3 billion rubles In 2017, according to the IMHO Vi, a stable growth of video advertising will total 15-20%.

“The growth of video advertising is clearly ahead of the pace of growth of volumes of advertising on TV. More and more advertisers are starting to plan their media investments on the basis of the required level of coverage of the target audience by means of video advertising as a whole, implying that the placement of promotional videos on TV and online-resources,” said General Director of Etat Control International Rus (ECI) Dmitry Kuraev.

Evidence that online advertising is growing faster than TV advertising, confirmed the Association of communication agencies of Russia (ACAR). According to her, the volume of advertising on television in the first half of 2016 increased by 17% to 71.8 bln RUB While the growth rate of Internet advertising, according to AKAR estimates ranged from 26% to 55 billion rubles, up to 30% to 63 billion rubles (ACAR results in the interval, explaining that the Association’s experts have dispersed in approaches to the assessment of the segment the Internet-advertising).

The Internet was the only advertising channel, which grew in the first half of 2015 by 12% (to TV ads in that period fell by 19%). In June 2016, Google, “Yandex”, “Vkontakte” and YouTube Mail.Ru surpassed Russia’s largest TV channels by audience reach aged 12-44 years in large Russian cities (population more than 700 thousand people), wrote “Vedomosti”.

New players

The segment of video advertising on the Internet remains small when compared to television, although increasing its share in the structure of expenditures of the advertisers. According IMHO Vi, if you compare the promotional video online and on TV, online videos by 2016 will have 5% “of television budgets” (in 2015 4%).

According IMHO Vi, the most in the video on the Internet in the first half of 2016 invested companies of segment FMCG (consumer goods). The company offers perfumes, cosmetics and hygiene, 20%, food and beverages 17%. The largest budgets on video ads spent by Procter & Gamble, Unilever, Mars, among agencies Vivaki, ADV, Dentsu Aegis.

The company estimates, in 2017 the segment of online video can appear advertisers categories Finance, consumer electronics, real estate and construction.

Work in pairs

The video advertising market is growing the background incidence of other types of media advertising we are talking about the redistribution of the budgets with banner ads in favor of online video, said Dmitry Kuraev. So, to say that there is a “flow of funds” from TV to online video, it would be, in his opinion, a mistake.

“The assertion that the part of advertisers selects a video in the damage location on TV, wrong agrees the head of Department of TV and media content J’son & Partners ?onsulting Dmitry Kolesov. Rather, the actions of the seller contribute to the symbiosis of these two platforms has only increased.”

Associate Professor, Department of integrated communications, HSE Paul Rodkin links the growth of the video advertising market with the increase in bandwidth of Internet and the development of broadband access (broadband access) while reducing the cost of access to the network in the regions, as well as the proliferation of new gadgets, providing mobile consumption of online content, including advertising.

“The annual growth of video advertising it is possible to predict at the level of 30%. It gives the same capabilities as the “full” TV advertising, so this format is extremely attractive and is perceived by the advertiser as “the same, only in the Internet,” says Rodkin. A significant role in this process plays also an increased interactivity with web content and the growth of user video that becomes an advertising medium, similar to how it is implemented in YouTube.

Movie time

The main driver of growth in video advertising experts say the emergence of new interactive advertising products to advertisers, in particular, to a Smart TV. As the General Director TelecomDaily Denis Kuskov, the online video market in Russia ahead of the broadband market and is a real competitor in the pay TV market. Still the main option for viewing online video remain PCs and laptops, which accounted for 49% of impressions, he said. In the next few years will increase the share of hits, “long” videos through the app Smart TV: this will occur primarily in the segment of legal video services.

“The current situation is favorable for the development of the online movie theaters, because of competition from a potentially powerful rival pay TV operators is virtually nonexistent,” says Grand. For the first half of 2016 Tvzavr revenue from video advertising grew by 30% compared to the same period in 2015, said the commercial Director Tvzavr Varvara Davydova. According to TelecomDaily for the first half of 2016, revenue of online cinemas in Russia in JanuaryJune amounted to 3.1 billion rubles.