How did the advertising market go in 2021? What trends determined this year for you?
The advertising industry has recovered faster than the wildest expectations. According to ACAR, in the first nine months of 2021, the Russian market grew by 25% by 2020, exceeding the pre-crisis level by 15%. The TV segment exceeded the level of 2019 by 11%, digital – by 26%. We increased the pace faster than the market: in two years, sales of Everest grew by more than 40%.
In 2021, the trend towards social responsibility of companies took on new features. According to research, 40% of Russians prefer to shop with socially responsible brands. The social mission is part of the strategy of the National Media Group, and we pay a lot of attention to it. Our #important project, launched in partnership with Otkritie Bank to help small and medium-sized businesses, has been recognized in the industry and received a record 13 awards at prestigious festivals and awards.
In terms of media consumption trends, 2021 has become the year of the big screen renaissance: viewers are increasingly choosing it to watch online content. Thus, Smart TV is the No. 1 platform for viewing content from online cinemas, and 83% of online cinema users in Russia use Smart TV. At the same time, mobile video consumption is growing, so viewers can easily switch between screens and choose the most convenient viewing format for them.
Of course, one cannot fail to note the massive growth of e-commerce. We have followed with interest the transformation of the role of the marketplace. The online store is no longer just a place to make a purchase. The consumer is increasingly coming to the online platform for inspiration. For example, in the USA they talk about it57% of consumers. But online, consumers are faced with an endless shelf and are forced to spend a lot of time and effort making decisions.
Under these conditions, the role of marketplaces as platforms for promotion is growing, and content from brands is gaining value, which helps to make a choice. The result is a record growth in investments in promotion on marketplaces and the rapid development of eRetail Media. At our Everest Expert conference, a discussion with top speakers confirmed the hypothesis of the value of content creation in strengthening brand reputation and creating new product entry points.
Shopping stream is another concept that has been heard a lot at conferences and in our office in 2021. And this is not surprising – the shoppable format from China has won the hearts of Russians and has appeared in almost all major marketplaces.
TV hasn’t ignored the evolution of shoppable video formats: 2021 has been the heyday of Shoppable TV and it looks like this trend is only gaining momentum. The world’s largest media holdings, having added QR codes to their videos, go further. Britain’s ITV has launched an interface for shopping on a TV screen, and NBCU is offering its viewers an augmented reality shopping experience. So we are waiting for new solutions in this direction!
What trends await us in the future, what areas of development do you see as promising?
If we talk about global trends that will affect a large number of industries, then here I would note the trend towards the development of metauniverses. The Metaverse is a new virtual reality where you can potentially do everything you do in the real world: chat with friends, hold work meetings, shop for clothes, and even collect art. NFT is setting the stage for the development of the metaverse, and the popularity of tokens will grow, in particular, due to digital objects from luxury brands, which will account for 8% of the NFT market by 2030.
If ecosystems sought to surround the consumer with various services in the physical and online world, then metauniverses create virtual reality and completely immerse the user in it. Facebook has loudly declared its ambitions in this direction, changing the name to Meta.
Metaverses may become the next stage of development for media holdings . Just as TV content appeared on the Internet, it can also appear in the virtual space. Of course, the metaverses will become a platform for advertising. British outdoor advertising operator Ocean Outdoor has already announced that it will bring digital billboards to video games and the metaverse.
Parallel trends that accompany the final transition to the virtual space are the concern for mental and physical health, which will determine consumer behavior in the coming years. Deloitte expects global spending on mental health apps to grow by 20-30% annually.
The transition to virtual reality and the associated change in consumer habits will lead to the emergence of new and revision of familiar advertising formats. And assistance in taking care of physical and mental health can become the basis for the image of a socially responsible brand.
“Content is the king” was first said 25 years ago. “Customer is the king” – 10 years ago, “Data is the king” – 5 years ago.
For movies and series, a serious battle flares up. In 2021, we saw a large number of first-look deals with the largest players: Ivi, Okko, Kinopoisk and others.
The National Media Group joined this fight by signing several promising contracts. Among them is a first-look deal with Videoprokat studio, exclusive agreements with Zhora Kryzhovnikov and Ilya Kulikov.
Our viewer and consumer also remains the king: we closely monitor his behavior and opinion and do everything to make him satisfied.
However, 2021 showed that a new leader has appeared in the advertising industry, without which no conference can do. This is adtech. Advertising technologies will determine the development of all segments of the advertising market and shape tomorrow’s reality.
In 2022, Addressable TV, Shoppable TV, and interactive TV will be the key drivers . A few numbers to back it up: According to Deloitte estimates, the global Addressable TV market will reach $7.5 billion in 2022. It has grown 40 times in 10 years. Everest’s interactive TV business almost quadrupled in 2021, and we expect new records next year. And like I said before, 2021 has been the heyday of Shoppable TV and its growth will continue.