"Rodnaya Rech" predicts a 15-20% growth in internet advertising

  • In 2023, the Retail Media sector grew by 131%, while the traditional internet advertising sector increased by only 25%.
  • It is expected that in 2024, the traditional internet advertising sector will continue to grow by 20-25%, while Retail Media will continue to show impressive growth of 100-200%.
  • In 2024, media inflation in the traditional internet advertising segment will be 15-20%, which is lower than the figures for retail media and outdoor advertising.

Russian group of companies "Rodnaya Rech" has updated its forecast for 2024, which covers all aspects of the advertising market. This news only presents the part related to internet advertising.

"Rodnaya Rech" is a Russian advertising agency specializing in the development and implementation of creative advertising campaigns. The agency stands out with a unique approach to creating advertising concepts based on a deep understanding of the culture and mentality of the target audience.

The advertising market continues to grow rapidly, especially in the internet advertising segment. In 2023, the volume of traditional internet advertising together with Retail Media reached 531.6 billion rubles, which is 40% more than the previous year. The volume of traditional internet advertising amounted to 427.6 billion rubles.

The forecast for 2024 promises even more significant growth. It is expected that the total volume of internet advertising will increase by 36-59%, reaching 721.846 billion rubles. Traditional internet advertising will also show growth of 20-25%, amounting to 513.535 billion rubles.

Media Inflation

In 2024, it is expected that media inflation in the traditional internet advertising segment will be 15-20%. This is lower than in Retail Media, where inflation is expected to be 35-40%. While television advertising is forecasted to have inflation of 20-30%, and outdoor advertising 35-40%, internet advertising remains competitive in terms of cost.

Media inflation is the increase in the cost of placing advertisements on popular platforms with a quality audience. It can be caused by the growth in demand for advertising inventory, limited supply, improved targeting, and increased advertising effectiveness. As a result, advertisers face increased campaign costs, which may require budget and strategy adjustments to maintain profitability.

For Publishers

In theory, advertising revenues for publishers should also continue to grow, especially if competitive traffic is actively attracted, and advertising platforms are assisted in audience segmentation.

Forecast

Retail Media will continue to grow at a tremendous pace and sooner or later, this will affect the entire market, adding money to the open internet.

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