Market Trends of Russia OOH And DOOH Industry
Digital OOH (LED Screens) to Drive the Market
- In 2023, outdoor advertising in Russia surged by 46%, driven predominantly by the rising appeal of DOOH advertising to brands, as highlighted by RMAA, a Moscow-based marketing and advertising company. A technical overhaul in the industry, initiated in early 2022, introduced fresh formats and tools for advertisers.
- The growth in the advertising sector is significantly driven by the evolution of advertising infrastructures. With the expansive coverage of a single DOOH screen and its relatively cost-effective placement, there is a notable shift: physical advertising structures are dwindling while the advertising inventory is on the rise. Compared to traditional formats, screens offer the advantage of displaying a higher volume of advertising messages. The speed of placing an ad on a screen far surpasses that of printing and installing a billboard. This shift not only amplifies commercial exposure but also augments sales potential.
- According to Russ Group's estimates, Moscow has seen a significant surge in digital outdoor advertising, with its share doubling in recent years to now represent 67% of all advertising installations. In comparison, St. Petersburg lags slightly behind, with digital outdoor ads making up 43% of its total. Russ Group's analysis focuses on standard outdoor formats, such as city boards, supersites, and pillars, across 50 Russian cities. Notably, the data excludes indoor advertising (like in shopping centers) and transit ads (on transport and at airports).
- Simultaneously, regions are witnessing a gradual shift towards digitalization. A case in point: Ekaterinburg is set to unveil Russia's most expansive media facade, boasting a panel size of 10,000 square meters. This move was anticipated, given that in 2023, spending on Digital Out-of-Home (DOOH) advertising in Ekaterinburg outstripped investments in traditional Out-of-Home (OOH) channels. Notably, the Zolotoy shopping center, currently under construction in Yekaterinburg, will host the nation's largest media screen, also spanning 10,000 square meters.
- Admetrix, an ad metrics company, estimates that the lion's share of advertisers' outdoor advertising expenditure in Russia is now directed toward digital screens. In the first seven months of 2023, digital outdoor advertising accounted for 54% of total ad spending, up from 48% in 2022 and 40% in 2021.
Understand The Key Trends Shaping This Market
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Retail and Consumer Goods to Drive the Market
- Retailers and consumer goods brands are leveraging data analytics and digital technologies to tailor personalized messages for consumers. This involves crafting dynamic content on digital screens, honing in on specific demographics, interests, and behaviors.
- Retailers are increasingly leveraging digital screens, both indoors and outdoors, to elevate the shopping experience. These screens are used for various purposes, such as highlighting in-store promotions, spotlighting product attributes, and offering live updates on inventory, all aimed at boosting footfall and sales.
- For instance, in November 2023, Addreality, a prominent player in Russia's Digital Signage landscape, unveiled its latest offering, a long-term rental program tailored for LED panels. This novel service presents clients with a turnkey Digital Signage solution, marrying cutting-edge displays with robust, dependable software. Renowned as a frontrunner in the Russian Digital Signage arena, Addreality's solutions cater to a diverse clientele, spanning businesses of all scales across retail, hospitality, transportation, and corporate sectors.
- Brands are increasingly blending OOH and DOOH campaigns with online platforms and e-commerce channels. They leverage digital screens not just to boost online traffic but also to highlight exclusive offers and bridge the gap between offline advertising and digital sales channels. Russia is one of the majoe e-commerce market and is constantly growing and expanding.
- For instance, in 2023, Wildberries maintained its position as Russia's top online retailer, boasting sales of RUB 2.14 trillion. Following closely was Ozon, the country's second-largest marketplace, with sales reaching RUB 1.36 trillion. Wildberries' extensive product range and customer accessibility not only secured its top spot but also outpaced sales of Russia's major airline, Aeroflot.
