Ukraine’s advertising industry grew by 25% in 2019 and, more encouragingly, its expansion will continue in 2020 at a rate of 18%, according to the latest report by the All-Ukrainian Advertising Coalition, Ukraine’s largest public association of the advertising industry.
According to the coalition, the upward swing will be for both online and offline ads in Ukraine. TV ads, meanwhile, are expected to perform better in 2020 with the European Football Championship and the Summer Olympics in Tokyo on the radar.
In 2019, the total advertising market was valued at roughly $1 billion. The market, however, is still lower than the 2013 peak of nearly $1.4 billion.
Ads on television
The market for television ads was valued at $480 million in 2019. And it will grow by 25% for direct marketing ads – for example, the ones during commercial breaks – and 20% for sponsorships, ads placed in TV shows and televised sports events.
According to the All-Ukrainian Advertising Coalition, sponsorships will grow faster than direct marketing, primarily due to the activity of betting companies, which will increase their presence on TV while awaiting the start of the European Football Championship and the Summer Olympics in Tokyo.
Sports broadcasting sponsorships can increase by at least 20% in 2020.
Online advertising
Online ads, in turn, also generated 24% more profit in 2019, making $240 million.
There were several key drivers of the growth in online ads: the dominant role of banner advertising on Facebook, promotions via U.S.-based video-sharing platform YouTube and the growing number of Ukrainians with access to mobile internet.
In 2020, online banner advertising placed on websites as well as ads spread through social media like Facebook and Instagram will see 20% growth, generating $146 million more than in 2019, the All-Ukrainian Advertising Coalition forecasts.
Digital video advertisements will see 30% growth, generating roughly $33 million more to reach a total of over $140 million in revenue.
Offline advertising
The market for outdoor ads, including billboards and transport advertising, was valued at $177 million in 2019. The advertising coalition predicts it will be the most promising direction in marketing in 2020, with an impressive 86% growth. The amount of outdoor billboard ads, for example, is expected to increase by up to 15% only due to the space left vacant after political ads were removed following the presidential and parliamentary elections in 2019.
Ads in press, radio
In the press, the advertising market was valued at $77 million in 2019, 14.8% more than in 2018.
The fact that newspapers Segodnya (Today) and Dzerkalo Tyzhnia (Mirror of the Week) stopped publishing print editions in 2019 may cause the press ad market to slow its growth a bit to 13.5% a year.
The radio ad market has shown growth of roughly 25%, making $30 million; it is expected to grow at least 15% more in 2020.
