Ukraine’s $1 billion advertising market is expected to continue its recovery this year after a sharp downturn during the 2009 global economic recession.
According to the All-Ukrainian Advertising Coalition, a nongovernmental organization, the cumulative volume of advertising in Ukraine grew almost 20 percent in 2011, reaching slightly more than $1 billion. That’s a significant rebound from $655 million posted in 2009, a rocky year that rattled confidence as the domestic currency lost nearly half of its value.
And 2012 is even expected to be better.
“We expect a moderate 10-15 percent growth of the advertising market in 2012,” said Maksym Lazebnyk, executive officer of All-Ukrainian Advertising Coalition. According to his forecast, net advertising could reach $1.2 billion, the same amount spent in the record 2008 year.
Of course, the coming June 8-July 1 Euro 2012 football championships, co-hosted by Ukraine and Poland, will help.
Fresh sources of advertising and sponsorship revenues are expected during the run-up to the tournament, as well as a spike during the tournament. Moreover, this is an election year, and political advertising is expected to be heavy as the Oct. 28 parliamentary elections approach.
That’s more good news for marketing and media businesses that rely on advertising budgets as their main source of revenue.
Estimates suggest that almost 42 percent of this year’s advertising pie, some $480 million, will go to television channels. Print media will get about 29 percent, or $300 million. Outdoor advertising should get about 13 percent, or $150 million. The rest will trickle down to Internet, radio, transport, indoor advertising and cinema.
Artem Bidenko, head of the Outdoor Advertising Association of Ukraine, expects demand for outdoor advertising to surge during Euro 2012 as advertisers seek to maximize exposure to the hundreds of thousands of tourists expected to arrive in the country.
“Sponsors of Euro 2012 will want to advertise their products intensively during the tournament. They will be especially interested in the downtown areas and billboards along major tourist routs,” Bidenko said. “Euro 2012 alone may account for half of the 10-15 percent annual growth forecast for outdoor advertising this year.”
So far, Internet advertising accounts for a small share of the overall advertising dollar in Ukraine, less than $60 million in 2011. But it is also the fastest-growing segment and will likely remain so.
Industry watchers said advertising on the Internet is gradually picking up and will continue to do so in the future. This option offers businesses an effective way to target their advertising towards specific target audiences with disposable income.
“Globally, the Internet has already established itself as a top advertising channel. For Ukraine, it will take some more time,” said Olexiy Mas, head of the Ukrainian Banner Network.
“Internet penetration in Ukraine is still low. Only one-third of Ukrainians use the Internet on daily basis. When this figure increases to 80 percent, then the Internet will become a top advertising tool,” Mas added.
Kyiv Post staff writer Oksana Faryna can be reached at [email protected].
