All About Context Advertising

The Russian entertainment and media industry has been able to adapt to new realities despite macroeconomic factors and strict domestic regulation. In 2015, the volume of the telerecule market declined by 24 per cent, and radio reclama by 32 per cent, is reported in the annual report of the PwC analytical company.

However, the outlook for the industry is very good: by 2020, most entertainment and media segments will show positive annual growth rates, with the exception of newspapers, external advertising and radio. On average, the Russian entertainment and media industry will grow by 6.4% per year, higher than the global growth rate of industry (4.4 per cent). In four years, the market will be $20,9 billion.

The World Survey of Entertainment and Media: The 2016-2020 projection concluded that, as a result of 2016, advertising on television would cease to be a revenue leader. With the rapid development of technologies, the active dissemination of the Internet and online smartphones, the Relama will overtake $2,12 billion. Telework revenues for the same period would amount to $2 billion.

Intermediate context advertising remains the main driver: in a five-year perspective, this segment will reach $2.2 billion, showing an average annual growth rate of 12.8 per cent. Mobile technology development and gadget infiltration change the structure of advertising to the addressee, as new location formats are emerging contextual advertising, shy away from traditional media.

By 2020, the most dynamic segments are expected to be Internet Relama (CAGR 16.2 per cent), paid television (9,79 per cent) and Internet access (7,61 per cent).

The World Cup in 2018 will be a positive factor for industry development. The experts are expected to increase the number of advertising sites by establishing and modernizing the relevant infrastructure. CMM will also increase advertising budgets to reach a large audience.

In segments such as Internet Relama, paid television and external advertising, growth rates are projected to exceed 10 per cent per year.