Video advertizing on the Internet (the market of Russia)

2019: The fraudulent scheme because of which millions of Android smartphones are quickly discharged is opened

In March, 2019 the huge scheme of fraud at which in applications for Android the embedded video advertizing was started was opened. Because of it devices were quickly discharged and there was a transfer of personal data.

Swindlers used the services paying viewing advertizing and did so that users allegedly started video declarations which actually were not visible to owners of devices. Malefactors used popular applications which are downloaded by millions of users for swindle implementation.

Main article: Fraud in advertizing

2018

A share of mobile video advertizing — 40%, or 4 billion rubles of the total amount of an in-stream-segment

On April 16, 2019 the company in the video advertizing market a seller of GPMD (Gazprom-Media Digital, the NSK subsidiary company) summed up the results of 2018 and made the forecast for 2019. 2018 became disruptive for a segment of mobile video in Runet: its audience grew by 11%, and expenses of advertisers on video advertizing on mobile devices reached 4 billion rubles, having increased more than twice. At the same time the number of the people watching video only on mobile devices exceeded a quarter of the population of Russia in the cities with the population more than 100 thousand inhabitants – 14 million people.

According to task force of NSK, the market of video advertizing in 2018 grew by 20.4%, to 10 billion rubles. At the same time in NSK specified that it is about assessment of advertizing which is shown in the videoplayer at the time of demonstration of video content (in-stream), and advertizing which is integrated into content of the website, including text (out-stream), is not included in this digit. Experts of NSK expect that in 2019 growth rates of an in-stream-segment will be about 15%.

The period of domination of video on desktop computers comes to the end, there comes time when video on mobile devices plays with a desktop at least as equals. Desktop computers and notebooks stopped being for Russians a fixed asset of watching Internet video in the 2017th, but it led to the proportional growth of costs of brands for mobile video advertizing only a year later. It is possible to tell surely that brands in Runet estimated audience of mobile video. Though measurements of audience of mobile devices are still far from an ideal, money which the advertiser is ready to pay for mobile video stock, are comparable to costs for video advertizing for a desktop platforms now. Brands cannot but not use mobile video for communication with the consumer any more. Dmitriyeva Natalya, CEO of GPMD (Gazprom-Media Digital)

Average growth of budgets of federal advertisers in GPMD network was 19% in 2018. The main part of this money is still spent by producers of convenience goods (FMCG) and medicines – 48% and 18% respectively. Representatives of the real estate market who increased investments in advertizing by 3.5 times, producers of clothes and footwear which budgets increased by 2.4 times were most aggressively advertized using video formats and also the retailers who spent for video advertizing are 2.3 times more, than the previous year.

In 2018 in Russia it became one million more than users of Runet who watched video on all types of carriers, – 40.9 million people or 77% of the population of Russia, by data Mediaskop (the cities with the population of 100 thousand and more inhabitants). In the 2017th consumers of Internet video there were 39.9 million people and 75%.

The number of the viewers increased thanks to the people of advanced age more often addressing video in networks. The trend proved among users of 35-64 years who began to watch more commercials on mobile devices (mobile, +24%) and less – on desktop computers (desktop,-17%). As a result the average growth of audience of video consumers in this segment was 9%.

Against the background of increase in interest in viewing videos on smartphones the audience of mobile video increased by 11%. In December of the 2018th it reached 58% of the population of Russia in the cities with the population more than 100 thousand inhabitants and made 30.9 million people, The previous year 52% and 28 million respectively were the share of it.

The number of the people watching video only on mobile devices reached 14 million people. The exclusive audience on this type of carriers grew by 21%: in the 2017th among all population of Russia such people there were only 22%, in the 2018th their number increased to 27%.

However, on time spent on viewing videos desktop computers and notebooks are in the lead: in the 2018th Russians on average spent for viewing the video websites with their help 48 minutes a day, and using mobile devices – 29 minutes.

Verification of fraudulent traffic (fraud) became one of the most demanded services in 2018. GPMD entered an end-to-end measurement of all video platforms of the advertizing network for identification of fraudulent traffic. Along with it advertisers regularly carried out own measurements at placement of the campaigns on GPMD network: in the 2018th such measurements made more than a half of advertisers – 53%.

Against the background of growth of number of measurements of advertizing traffic from brands market participants recorded decrease in Runet of volumes of the fraudulent traffic which is purchased by advertisers. Publishers connected the third-party systems of verification and began to hold regular events for cleaning of the traffic. According to Weborama Russia, the share of such traffic in 2018 made 14.7% against 45% which the company fixed the previous year. Weborama Russia notes that indicators of Runet approached values of the European and American markets where the share of fraudulent traffic, according to the international companies verifiers, fluctuates within 5-15%.

Among the reasons of so significant decrease in a share of non-valid traffic in Weborama Russia call implementation by seller and Internet publishers of the systems of internal verification for partners and partner networks. Such systems allow to disconnect quickly from advertizing accommodations of suppliers of fraudulent traffic. Wide circulation of the systems of verification positively affected also quality of measurements: growth of volumes of selection provided broader base for the analysis of normal and aberrant user behavior.

In a year many of systems provided in Runet adapted the algorithms to realities of Runet. So, in the 2017th some systems of verification automatically set off as fraudulent demonstrations of advertizing in old versions of browsers and also in the browsers which were widely adopted only in Runet. In the 2018th the sharpness of this problem considerably decreased.

In the 2018th volumes of the targeted placement or target advertizing using data allowing to show rollers only to those people who are necessary for a brand continued to increase. According to GPMD, in 2018 using demographic and behavioural targetings it was the share of placement nearly 7% more, than the previous year.

However the most demanded are so far demographic targetings allowing to define gender and age of audience which are used by the majority of brands. The share of the campaigns waged using behavioural or targetings on interests remains stable – about 8%. At the same time at separate categories of advertisers this indicator can be many times higher. So, according to GPMD, in category of financial services the share of the placements targetted on the interests of users in 2018 reached 37%, in the real estate – 30%, and producers of cars and joint products marked 19% of the video advertizing on such model.

The quantity of the brands placing video advertizing without targeting, opposite continued to be reduced and reached a point minimum in recent years. According to GPMD, the share of such demonstrations in 2018 made no more than 25% of the total amount of placements. At the same time among separate categories of advertisers the share of not targeted demonstrations was even lower and in some cases reached 5%.

Mail.ru Group: 77% of costs for video advertizing are the share of out-stream rollers

On April 11, 2019 Mail.ru Group reported analysis results of key trends in use of video advertizing in 2018. In a research considered investments of advertisers into different formats of videos, including in separate commodity categories.

The popularity of online video advertizing grows from year to year. It is connected as with development of Internet platforms and opportunities of a format, and with habits of users who even more often give preference to video content. A variety of formats and platforms for placement of advertizing filmlets allows brands to solve a number of problems: from increase in level of memorability of a brand up to growth of number of installations of applications.

As show data, growth of investments in video advertizing advances the general investment behavior in online promotion. Based on a research, in 2018 expenses of advertisers on videos grew more than twice in comparison with 2017. At the same time the total costs of online advertizing on the Mail.ru Group projects and in a partner network increased by 39%.

Data of Mail.ru Group show that among video formats advertisers give preference of out-stream to rollers, 77% of investments are the share of them. The most popular format in this category – native video posts with autostart in tapes of social networks (92% of expenses in category out-stream). Other 23% of expenses on video advertizing belong to in-stream to rollers – prerolla to video on social networks, on the Mail.ru Group projects and in a partner network.

video advertizing types]]

Video advertizing helps the companies to increase brand recognition and loyalty to them (image tasks) and also to motivate users to make target actions (task performance). Using in-stream of rollers advertisers mainly solve the first type of tasks. In an out-stream segment of 85% of investments use for the solution of image tasks, and 15% – performance of tasks. In-stream and out-stream rollers can effectively attract audience on the website or increase conversion indicators. Formats allow to add the appeal button to action that motivates users to pass the shop/page of the company to the website or to install the application.

Experts analyzed as advertisers of different commodity categories distribute budgets between out-stream and in-stream of video in marketing mix. It turned out that in all segments more than a half of costs is the share of out-stream rollers though concedes in some categories in-stream slightly. For example, the highest shares of investments into in-stream were mentioned in sectors "Medicine and health" (49%), Telecom (45%) and "media" (43%). The greatest preference of out-stream to video advertizing is given in categories "Games" (97%), by "Education and work" (96%) and Retail (92%).

During the research analysts studied expenses in each video format – in-stream and out-stream – separately. FMCG was the largest category in terms of investments – 26% of all investments in in-stream, and 27% – in out-stream video advertizing are the share of it. Top three in in-stream also included categories "Medicine and Health" (11%) and "Goods for beauty" (10%). In out-stream on the second place there was a category "Rest and Entertainments" (17%), and on the third – E-commerce (7%).

Video advertizing becomes more and more personalized. Advertisers use technologies of a remarketing to show rollers to those who were already interested in a product or service. The tool use 20% of out-stream of video and 18% of in-stream for promotion.

2017

The desktop computer stopped being for Russians a fixed asset of watching Internet video: in the 2017th watching commercials with its help it became 9% less, than the previous year, and the size of audience of mobile video was equal to a similar indicator for desktop computers and exceeded 26 million people. However it did not lead to proportional increase in expenses of advertisers at advertizing on mobile devices: brands spent for it about 20% of money or 1.6 billion rubles. In the 2018th this segment can show growth at the level of 100%, and its volume can exceed 3 billion rubles. Such data are provided in the report of Gazprom-Media Digital company distributed in March, 2018.

Mobile viewings went to growth

2017 recorded a downward tendency of watching Internet video by users of Runet on desktop computers. According to Mediascope, in 2017 their quantity was reduced by 9% by 2016th year, to 26.3 million people (hereinafter Mediascope, WEB Index, Russia, the cities with the population more than 100 thousand people, age 12-64 years, December, 2016 and 2017.). However, in comparison with the 2015th when such users there were 27.7 million, falling was less essential – only 5%. At the same time the cumulative number of viewings content on desktop computers reached 2.7 billion viewings, growth was 0.2% at the end of year.

September of the 2017th became an important milestone for sellers of video advertizing on mobile devices. According to Mediascope, the size of audience of mobile video was equal to a similar indicator for desktop computers and exceeded 26 million people.

It, however, did not lead to significant changes in distribution of advertizing budgets. One of basic reasons – lack of the commonly accepted high-quality measurements of audience of advertizing on mobile devices. Mediascope since 2018 began delivery of data on advertizing which is placed in mobile applications. At present the measuring instrument works on technology of measurement of advertizing campaigns in mobile browsers.

Pulling of the budget

As a result in 2017 the share of mobile video in the market of video advertizing remained low. According to GPMD, about 20% of the total amount of costs for this type of advertizing in Runet or in terms of money 1.6 billion rubles were the share of it. At the same time the share of the advertizing stock falling on mobile devices was significantly higher and exceeded a share of costs more than twice. GPMD predicts that in 2018 the share of mobile video advertizing will increase to 30-40% of all costs of advertisers for video advertizing in Runet. The mobile segment can grow more than twice – to 3-4 billion rubles at growth rates from 87% to 150%.

The market of video advertizing will grow in general more slowly. According to the results of the 2017th, its volume reached 8.3 billion rubles, and growth rates were 25.8% that is comparable to growth rates of all Russian market of Internet advertizing. In 2018 growth will slow down and will be about 20% that will not prevent the video advertizing market to reach closely a point in 10 billion rubles.

Average growth of budgets of federal advertisers in GPMD network was 23% in 2017. More than a half of advertizing money still falls to the share of producers of convenience goods (FMCG) and medicines – 47% and 19% respectively. Financial services became category which representatives were advertized most aggressively in 2017. Representatives of banking business and financial services providers for 2017 increased the investments in advertizing by 2.5 times. At the same time expenses were increased as the companies which are already provided in a video advertizing segment, and by new advertisers.

"Advertisers are ready to put in video advertizing on mobile devices today, without waiting for emergence in the market of precise measurements of its audience, – the CEO of Gazprom-Media Digital Natalya Dmitriyeva says. – For many brands such advertizing already became an integral part of a media mix. Responding to the market request, we transformed the advertizing product GPMD and now we implement mobile and stationary stock in a single batch, in proportion to shares which occupy both platforms. In some age groupes, including among active buyers of 20-35-year age, to a third of Russians uses exclusively mobile devices today. Thus, the only opportunity for a brand to set communication with these people – advertizing on mobile devices".

Stationary quality

Against the background of overflowing of audience from desktop-platforms on mobile the media measuring instrument recorded growth of qualitative indexes of watching Internet video on desktop computers. According to Mediascope, in 2017 the average time of stay on the video website increased from 41 to 45 minutes a day. People became more active to address video in networks – the frequency of viewing grew from 8 to 10 rollers a day. At the same time in December 2017th on one browsing Internet video by the Russian 103 rollers against 93 were necessary on average the previous year. Average monthly frequency of consumption of video content among women increased from 86 to 94 rollers, among men – from 101 to 112. At the same time, according to Mediascope, young men of 18-24 years browsed 159 videos a month, and women of the same age – only 100 rollers.

There was more also an advertizing weight on the user. According to GPMD, in December, 2017 in network of a seller Russians looked for 13% at more video advertizing, than the previous year, – 27 rollers against 21 in December of the 2016th.

At the same time to young men video advertizing is shown considerably less than to young girls. According to GPMD, girls of 12-17 years browsed in December on average in 46 advertizing filmlets, and young women of 18-24 years – 38 rollers. At the same time among young people 12-17 this indicator were only 26 advertizing videos, and among young men of 18-34 years – 36 advertizing videos.

Target demonstration

Brands in 2017 almost completely switched to targeted placement or the target advertizing allowing to show a campaign only of that audience in which the brand is interested. According to GPMD, in 2017 70% of demonstrations were the share of advertizing using demographic and behavioural targetings that is 18% more, than the previous year. The share of the campaigns waged using behavioural or targetings on interests grew almost twice – from 4% to 7%.

The number of the advertisers placing video advertizing without use of demographic and behavioural targeting continued to be reduced. According to GPMD, the share of such demonstrations in 2017 dropped by 29% and reached a point minimum in recent years of 30% of the total amount of placements. At the same time among separate categories of advertisers the share of not targeted demonstrations was even lower and in some cases reached 12%.

If earlier target advertizing was placed by mainly large brands, then now the increasing number of average and small advertisers resorts to it. According to GPMD, in category of producers of mass market products (FMCG) and household chemicals the share of accommodations of the users targetted on interests in 2018 reached 38%, car makers have 24%, at players of the markets of retail and financial services – on 21% in each of segments.

One more trend – increase in a share of interactive advertizing formats in total amounts of placement. Such formats are expected interaction of the user with advertizing and induce to click on special interactive elements. In 2017 their share increased by 44% – from 7% to 10%. In a number of advertizing categories the share of the demonstrations which fell on interactive formats exceeded mean values. So, in sports goods it reached 80%, car makers have 46%, in the real estate – 34%, in financial services – 28%.

2016

Data of IAB Russia: 6.6 billion rubles (+19%)

The size of the market of video advertizing in Runet in 2016 grew by 19% and was 6.6 billion rubles. 24% of all brendingovy advertizing on the Internet and 5% of Internet advertizing were the share of this segment, said in the report of IAB Russia.

In the market of video advertizing of 6.2 billion rubles 400 million rubles – on out-stream are the share of the in-stream format. The agency predicts that in 2017 in-stream and out-stream will begin to compete actively for budgets of advertisers.

Advertizing videos in Russia make 12% of all shown video on the Internet that is almost twice less, than in Great Britain, and three times less, than in the USA. The largest advertisers in this segment are Mars-Russia companies, Procter&Gamble, Nestle, Reckitt Benckiser – they also more than others make investments in TV commercial.

The research IAB Russia also showed that the Russian users move attention from desktop devices on mobile though meanwhile 55% of viewings are the share of a desktop, 33% - on mobile devices and 12% - on SmartTV. Volumes of budgets on in-stream advertizing are distributed as follows: 60-80% - on a desktop, 15-30% - on a mobile segment, 5-10% - Smart TV.

Experts remain are sure that video advertizing will show the best dynamics in comparison with banner and, respectively, from all media. The majority of estimates of a gain of video advertizing in 2017 is in the range from 15% up to 25%, says the agency.

Assessment of ADV: 4.1 billion rubles (+18%) (April-November)

Video advertizing volume in Runet in April-November, 2016 grew by 18% to 4.1 billion rubles, and this indicator reflects a trend of all year, Kommersant with reference to a research of the ADV agency tells ^[1].

Such brands as Procter & Gamble, Unilever and Coca-Cola which for the specified period spent for these purposes of 213 million rubles, 166 million and 164 million respectively became the largest advertisers in this segment. At the same time they still consider the main reference point of advertizing campaigns TV, and direct only 6% of budgets to Internet video advertizing. However analysts predict a trend of doubling of this share to 12% as such percent of costs goes on an online segment to the USA.

Growth of video advertizing happens due to redistribution of budgets between segments in the Internet, the representative of the National Reklamngo Alliance (NRA) commented to the edition. In addition, advertizing in the press is reduced.

In general it is noted that due to online video advertizing of the company gather additionally an advertizing scope on TV.

Forecast

The market of online video advertizing in the Russian Federation at the end of 2016 can make 6.25 billion rubles. Such forecast in October, 2016 within a business breakfast of TVzavr was read by the CEO of IMHO Vi company-sellera Alekseev Ilya. In comparison with 2015 growth^[2] should make about 18%^[3].

In 2015 Ilya specified that a third of income from the market of online video fell on online movie theaters. Considering that in 2015 the Russian market earned 5.3 billion rubles from online video, therefore, the share of online movie theaters in this roar had to make about 1.7-1.8 billion rubles. Whether the share of video services this year changed/will change, Alekseev did not specify.

At the same time, he specified that according to the results of the first quarter the market of video advertizing on the Internet grew by 24% and made 2.6 billion rubles. In the second quarter dynamics was below (+14%), nevertheless, the market grew to 3.65 billion rubles.

In 2017, according to forecasts of IMHO Vi, growth rates of video advertizing will remain and will be from 15 to 20%. And according to polls of experts, market size by the end of the next year can reach 7.7 billion rubles, and by the end of 2018 — to 8.6 billion rubles.

"Video advertizing on the Internet showed really impressive result in the first half of the year 2016. Together with development of advertizing products we predict not only increase in investments from top advertisers into video, but also appearance of new advertisers in a segment" — Ilya Alekseev noted, having added that it is about such sectors as finance, home appliances and electronics, the real estate and construction.

Such companies as Procter & Gamble, Unilever, Mars, in particular, with advertizing of the Always, Gillette and Pampers brands run the show in a segment of online video. As for advertizing agencies, are in the lead on budgets of Vivaki, ADV, DentsuAegis here.

On the sector of FMCG 52% of the market of video advertizing on the Internet, are the share of pharmaceutics — 19%, cars, retail, mobile operators and telecommunications follow. The share in 11% is the share of all other sectors.

As notes IMHO Vi, the video advertizing share from TV-budgets in 2016 can make 5% that is 1% more in comparison with 2015.

"We observe the high growth of classroom purchases, where to buy this audience is of great importance. Only on bonus stock of online movie theaters and the websites of TV channels it is possible to achieve the most high-quality contact of the user with the advertizing message. On the basis of the last researches qualitative indexes on such stock are 20-30% higher" — Lyubov Yachkova, the head of department of the video advertizing IMHO Vi noted.

According to the director on date to the products Weborama of Dmitry Egorov, the market of a vydeoreklama in Runet accelerated growth in the first half of the year 2016 thanks to Data-technologies and opportunities for combination of quality of stock of online movie theaters with behavioural scenarios of users on all devices and also to emergence of new interactive formats of video advertizing.

"The market of online video grows in Russia at very good rates now, overtaking the ShPD market and make the real competition to the market of paid TV — Denis Kuskov, the CEO of Telecom Daily news agency considers. — Based on data of the research Telecom Daily of the market of online video in 1 half-year 2016, in 2016 the gain at the level of 16-17% in relation to last year is expected. The market of online video in Russia at the end of 2016 can reach 7.4 billion rubles. Revenue of online movie theaters in Russia in January-June made 3.1 billion rubles".

As for Tvzavr online movie theater, its revenue from video advertizing in 1 half-year 2016 grew by 30% in relation to the same period of 2015. According to the commercial director of TVzavr Varvara Davydova, such dynamics will remain also in the II half-year 2016. Taking into account revenue growth, the online movie theater expects to come to profit in 2016, on operational profitability, according to the statement of the PR-director of TVzavr Olesya Teplova, the project appeared in 2015.

In addition to dynamics on online video advertizing revenues, representatives of TVzavr shared as well other information. In particular, that the company carried out redesign and changes in the interface of service on all platforms. Together with new design on the website also the new section - a sensuality appeared. At the moment content is available "to adults" only on the web platform TVzavr, on other platforms the company tells it about an output vaguely so far. It is interesting how the company will resolve this issue, in particular, on Smart TV, considering that vendors are known for the tough policy concerning erotic content. They or require it to hide "far", or at all not to place on the platforms.

2014: Gazprom-Media Digital: 1.9 billion rubles (+50%) (first half of the year)

The market of video advertizing in the Russian segment of the Internet in the first half of the year 2014 grew by 50% in comparison with the same period of last year and reached 1.9 billion rubles, reported in August, 214 online edition Lenta.ru with reference to Gazprom-Media Digital companies.

The number of those who watch video advertizing on the Internet for the first half of the year of this year made 63 million people, what is 11% more, in the first period of last year. Russians browsed more than 15 billion videos in the first half of the year 2014, is 48% more, than in 2013. On average one viewer watched 238 commercials a month whereas the previous year this indicator was 175. For the first time users in Russia began to spend for watching video of more than a day (25.7 hours) in a month - 14% more, than last year.

Growth of the market of video advertizing still goes to networks much more actively, than media Internet advertizing. Gazprom-Media Digital predicts increase in a scope of audience of six years, and growth of number of watchings license video on social networks "Odnoklassniki" and "VKontakte" will become one of factors of positive dynamics, as expected.

2013

IAB Russia and AKAR: 2.9 billion rubles (+70%)

According to IAB Russia and AKAR, video advertizing segment volume on the Internet in 2013 reached 2.9 billion rubles (excluding VAT), dynamics of a gain of advertizing budgets to previous year exceeded 70%. Experts emphasize that it is the highest growth rates among all segments of the Russian advertizing market in 2013.

Increase in audience and time of viewing video resources and expansion of amount of the available license video content monetized on advertizing model became drivers of such growth of video advertizing.

In December, 2013 the users watching video in network became 13.1% more – 62.8 million, and the number of watchings video increased by 38.6% - to 14.3 billion (these researches Video Metrix of comScore company, audience 15+).

In December, 2013 the average time of watching video in network on the user in a month, for the first time exceeded day and was 24.5 hours. According to experts, on the basis of data of comScore, the audience of video resources with license content (45.7 million people) exceeded audience of non-licensed video resources (36.4 million people). Besides, users watched on license resources more video (on average 70 watchings license video and only 20 – non-licensed).

Experts also note significant growth of number of the different connected-devices (smartphones, tablets, smart TV) allowing to browse online video.

Specialists assume that in 2014 video advertizing will still advance in network on growth rates other segments of the advertizing market. If to speak about the medium term, then by 2018 it is expected that about 1/3 all media Internet budgets will fall on video advertizing.

Assessment of RAEC: 2.9 billion rub (+67%)

The market of video advertizing grew up up to 2.9 billion rubles, having increased in 2013 by 67% in comparison with 2012. Researchers designate it growth by 50% in 2014. Data of October, 2014.

2011: Waiting of a boom

Opinion of Ilyichev Mikhail, CEO of RuTube:

In 2012 there will be growth to the level of 1.5 billion rubles. The break will be farther, its beginning can come for the end of 2012, and can for the end of 2013 - still difficult to predict. If this break is necessary the next year, by 2013 market size will be up to 2.7 billion rubles if it does not happen - 2.2-2.3 billion rubles. But there is a feeling that this break can happen because already now those who trim the sails to the wind, understand that they video traffic on the Internet are money. The quicker it will reach the majority, the quicker there will be a break. Our share made about 30%. We are not going to increase intensively a share in the market: now grow in common interests of all players due to growth of the market, but not due to the competition for increase in a share. Time for fierce competition did not come yet, it is far more profitable to raise the market. So at the end of 2012 we expect that we will save our share at the previous level.

Advertizing disablers

Main article: Advertizing disablers in Russia

What cannot be advertized on the Internet

Main article: What cannot be advertized on the Internet

You See Also

• Internet advertizing (world market)
• Internet advertizing (market of Russia)
• Video advertizing on the Internet (the market of Russia)
• Internet advertizing (market of the USA)
• Internet advertizing (market of the countries of Europe)