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Programmatic Market Overview and AdTech Services in Russia

DIGITAL MARKETING

In Russia, there is a consistent increase in interest in online media advertising. In particular, the demand for programmatic buying is growing, which allows for the automatic purchase of advertising space on digital platforms.

For instance, in 2023, expenditure on programmatic advertising in Russia reached $1.95 billion. Outlays on digital ad purchasing through programmatic constituted 83.2% of total digital spending. This is to be expected, given that all platforms offer to optimize advertising budgets with automatic real-time bid adjustments.

Despite the closure of numerous Western programmatic platforms in Russia, including Aitarget, the Russian market demonstrated resilience due to the implementation of new technologies across multiple companies and an increase in purchase prices (10-25% year-on-year).

Programmatic's influence on advertising market trends

Recent research indicates that the primary avenues through which Russian Internet users become aware of new brands are television advertising (35.5%) and search engines (34.5%). Programmatic platforms enhance the advertising capabilities of these channels. For instance, they can target users with greater precision and display advertisements at optimal times and in suitable contexts. This is particularly crucial for integrations in social networks (24.7%) and mobile applications (16.5%), where personalization and precise targeting are vital for success.

Russian Programmatic Market Overview: Key Trends and Insights

It is important to note that Russian users engage actively with brands through digital channels. 52.3% of respondents indicated that they research brands online before making a purchase, while 30.3% reported visiting brand websites and 5.9% stated that they click on banner ads. Programmatic platforms enable brands to manage these interactions through the use of machine learning algorithms and data analytics. This approach optimizes ad placement and increases engagement rates.

Russian Programmatic Market Overview: Key Trends and Insights

Key trends in programmatic buying

The growing interest in programmatic platforms is not solely attributable to the convenience factor and the absence of the need to employ specialists within your company. In some cases, this is due to changes in search engines and in the Internet environment in general.

For instance, Google had the intention of ceasing the use of third-party cookies. Consequently, other companies began leveraging their own user data more extensively and exploring novel methods for identifying visitors to their websites. This, in turn, has led to the emergence of new programmatic services.

The cost of purchasing such advertising also represents a significant factor. It is regrettable that the current trend favors cheaper, lower-quality sources.

It is important to note that the so-called "fake traffic" phenomenon plays a significant role in this context. The number of it grew by 35% last year. Therefore, brands must improve their ability to track and identify which visitors are "real" and which are "fake" in order to avoid losing money and to enhance the effectiveness of their advertising. Some independent platforms are already implementing anti-fraud technologies and developing improved pre-bid solutions that will help determine the value of inventory (ad space) and whether it's worth paying for, even before the auction begins.

One more effective solution to combat fraud is to use what are known as Traffic Verification Tools. These are fraud protection systems integrated into programmatic platforms (DSPs) as well as specialized services for traffic verification. These tools provide comprehensive monitoring, verification, and protection for digital advertising, enabling brands to safely and effectively engage with their target audiences. Additionally, each service offers a range of supplementary features.

To illustrate, Adriver's digital advertising management and auditing system offers a range of tools, including reports, traffic verification, and the ability to purchase ad impressions in an open auction (Soloway DSP). The Admon.ai service conducts independent traffic audits and searches for potential vulnerabilities on websites. It's an effective tool for increasing traffic visibility, tracking user paths, and eliminating poor-quality metrics. Ultimately, the selection of a traffic verification tool is contingent upon the specific objectives of the campaign, the intended placement sources, and the availability of supplementary resources, if necessary.

Another significant trend in the market is the desire for independence from major market players. In this context, we are referring to Yandex, VK, and other leading Russian platforms that have their own advertising services. Businesses are seeking to place their advertisements not only through the major platforms but also through independent ones, in order to gain more opportunities and flexibility and connect with the clients they require.

Thus, businesses are turning to programmatic platforms to purchase advertising for a number of reasons. First and foremost, they are highly flexible, enabling rapid adaptation to changes and new trends. This allows for the targeted and personalized display of advertisements, thereby enhancing their efficacy. This process is automated through the use of artificial intelligence and accumulated data. It is a particularly advantageous feature for businesses that may not have the resources or expertise to collect data from their websites and other promotional channels. Programmatic advertising can be used to achieve two key business objectives: increasing brand awareness and generating immediate results. However, the trend towards performance marketing has slowed somewhat in the past year.

'Independent' programmatic platforms: why pay attention to them?

Russia boasts a number of independent programmatic procurement platforms that are in high demand due to their transparency, flexibility, and innovative solutions. In this context, "independent" refers to platforms that are not owned by large media holdings or advertising networks. For instance, there is a programmatic platform, such as Segmento, that provides sophisticated targeting and data analysis capabilities. While it is renowned for its transparency and flexibility, it is not an independent entity, as it is part of MTS Ads (a subsidiary of MTS PJSC), which leads the ranking in terms of revenue (1st place).

Rank	Company	Self-Service DSP	Revenue '23, ths RUB	Increase
1	MTS ads	yes	4 614 212	281%
2	Hybrid	yes	2 644 395	168%
3	Beeline adtech	yes	2 472 723	-32%
4	Bidease	yes	2 350 667	51%
5	Soloway	yes	1 616 678	95%
6	RedDigital	only full-service	1 457 016	57%
7	Getintent	yes	1 387 797	35%
8	Mediatoday	only full-service	1 204 347	152%
9	Astralab	only full-service	1 101 548	66%
10	Xapads	yes	1 048 094	928%

In addition to Segmento, MTS ads also includes Buzzoola, a platform from which MTS has acquired 67% for the placement of native advertising. The remaining portion will be purchased in due course. The platform offers a unique opportunity to display video ads and text-graphic advertising blocks while users scroll through a website page or news feed. The platform displays advertisements on websites in Russia and CIS countries, reaching a total audience of over 100 million.

MTS Ads reports revenue of 1.33 billion rubles.

In addition to not belonging to large holdings, independent platforms are smaller, which allows them to offer greater flexibility. We can tailor advertising to specific topics and sites, for instance, by displaying ads only on certain thematic pages. Such possibilities are less frequently available on larger platforms, which tend to be more structured and uniform in their approach.

Large advertising platforms have their own inventory or places to advertise, but independent platforms have their own unique placements, such as popular online movie theaters. Such options are not typically available on large resources. Therefore, we may lose a portion of our audience and the most effective advertising platforms if we decline to utilize independent ones.

Review of Perspective Programmatic Platforms with DSP Purchase Model in Russia

Let's take a look at some independent platforms to consider.

Genius Group

Genius Group has secured the 12th position in the revenue ranking. The platform offers comprehensive strategies for both media advertising (where to place ads) and performance (how to achieve specific results from ads).

Also, you can access their proprietary system or set of technologies here to assist you in selecting placements and conducting additional tests to assess the efficacy of the advertisements.

In addition, the platform provides access to the Genius Production service. We can be assisted with design, branding, website, and video production. They offer a comprehensive range of services to create visually appealing and functional ads and content.

Furthermore, the platform employs a self-service DSP (demand-side platform), enabling advertisers to manage their ad campaigns independently, specifically, to purchase advertisements, select target audiences, set budgets, and track results without the need for intermediaries or agencies. They also set goals and targeting parameters, such as audience demographics, interests, and location.

Genius has experience working with a range of clients, including those in the banking and fast-moving consumer goods (FMCG) sectors. To illustrate, the BioMio brand is a case in point. With the assistance of media advertising, they were able to achieve a twofold increase in the purchase frequency of a new product, namely a natural shower gel. The main steps involved identifying the target audience, engaging existing customers, utilizing O2O technology to assess offline sales, and optimizing advertising campaigns based on CTR and post-click performance metrics. The results demonstrated a notable increase in purchase frequency and indicated that the majority of the focus audience is comprised of males between the ages of 35 and 44 with an above-average income.

GetIntent

GetIntent has achieved the eighth position in the revenue ranking. The company also offers a self-service DSP. The platform provides video tutorials and a concise knowledge base to assist users in comprehending the system.

What's on offer?

The platform employs proprietary technologies that facilitate the efficient management of advertisements and analysis of their results. As a result, we are able to reduce our advertising costs. Additionally, AI-powered campaign optimization is integrated into the platform. Artificial intelligence is employed to analyze data and adjust advertisements in order to achieve optimal results.

Additionally, the platform offers a campaign planning tool and Data à la carte. The latter tool enables us to select and utilize data to personalize advertising messages. This allows us to use specific data to customize advertisements, making them more targeted and appealing to different groups of people.

Furthermore, we have the ability to track the performance of ad campaigns in real time, allowing us to make adjustments promptly if necessary.

The brand platform also provides essential security features, including anti-fraud measures, which are crucial for maintaining the integrity and trustworthiness of our operations. This ensures that advertisements are displayed in secure environments and that fraudulent activity is prevented.

Additional platform features include:

White Label: This option allows clients to utilize the platform's technology to create and manage ads under their own name and logo.
The action predictor is a tool that helps determine which users are more likely to take a targeted action (e.g., purchase) after seeing an ad.
GetRewarded. Rewarded video is a mobile advertising format that offers users incentives for viewing, such as bonuses or special offers. These ads are designed to be engaging and enjoyable for users, while also driving profitable engagement for brands.

GetIntent has a proven track record of success in a diverse range of industries, including banking, FMCG, and pharmaceuticals. For instance, GetIntent implemented a campaign utilizing dynamic creatives and geo-triggers for a PVC window manufacturer, with the objective of enhancing display performance and engaging relevant audiences. The campaign objectives were to reach over 500,000 individuals, achieve a video completion rate (VCR) of 65%, and attain a click-through rate (CTR) of 2.5%. Additionally, the campaign aimed to increase product awareness, with a bounce rate of less than 60% and a dwell time on the site of more than 40 seconds. The results for the geo-triggered creatives were a VCR of 70.8% and a CTR of 2.7%, which exceeded the planned KPIs. There was a significant increase in reach of 180%, in VCR of 9%, an in CTR of 8%, a decrease in bounce rate of 17%, and the average time spent on the site was doubled.

Soloway

Soloway is currently ranked sixth in terms of revenue. DSPs self-service is also available here.

They offer automated video and banner advertising using the following tools:

Lookalike audiences. This targeting method employs machine learning algorithms to identify new users with characteristics similar to those of existing customers. For instance, this may be done based on demographics, website behavior, and other attributes.
Retargeting and dynamic retargeting. Dynamic retargeting represents an advanced form of retargeting that automatically displays personalized advertisements to users based on their previous behavior on the site. This is accomplished through the use of dynamically generated advertisements that are tailored to the specific interests and actions of each individual user.
Audience segments. These are groups of users with similar characteristics or behaviors. These segments are created based on data collected from a variety of sources, including demographic information, interests, site behavior, and content interaction.

Soloway offers an advanced programmatic ad-buying technology, Adaptive Formula™, designed to maximize efficiency and budget utilization. How it works?

Formula™ assesses each user on an individual basis, determining the value of each ad impression. All user interests are analyzed to create unique combinations that facilitate a deeper understanding of their behavior. The Formula™ is continuously updated to reflect changes in consumer behavior and incorporates a range of factors, including user interest analysis, ad interaction, session characteristics, and external parameters like time, geography, and device.

The benefits of this technology are clear:

Full coverage of RTB space. It works with any available advertising space and determines the optimal bid for each display, providing the best price/quality ratio.
Accurate bid estimation and optimization increase ROI (return on investment).
No need to test audiences as Formula™ runs billions of micro-tests, improving performance over time.
All you need to do is set goals and KPIs. Formula™ will automatically select the optimal parameters and optimize the campaign.

Unfortunately, there are no cases published on Soloway's website, so the platform took the second-last place in our rating.

BYYD

BYYD is currently ranked 27th in terms of revenue. Self-Service DSP is in full-service mode only. This indicates that users are unable to manage campaigns independently via the platform interface, but instead require assistance from platform experts. Full-service DSPs offer a more comprehensive and personalized service. This can be particularly beneficial for companies lacking the resources or expertise to manage campaigns independently.

The platform is utilized for the purpose of procuring advertising traffic on smartphones and tablets within mobile apps. Additionally, clients may avail themselves of banner and video creation services, as well as detailed analytics and reports on the performance of advertising campaigns.

To gain further insight, we will examine a case study illustrating the functionality of this platform.

The objective of the Kia Sorento advertising campaign was to attract users from mobile applications to the landing page, thereby increasing brand awareness and encouraging purchases. Targeting was conducted based on socio-demographic attributes and interests, with optimization relying on data from the BYYD platform and Yandex.Metrics. The campaign was executed in Kazakhstan from June 1 to June 30, 2024. The results surpassed expectations, with the number of impressions reaching 104.39% of the planned amount and the number of clicks at 110.38%.

Qualitative measurement of campaign results

In conjunction with the launch of programmatic campaigns, additional research can be conducted. We are talking about Brand Lift and Sales Lift.

Why is this necessary and what is the main difference?

Brand Lift

It is an evaluation system that enables the monitoring of brand perception shifts during a specific advertising campaign or multiple campaigns, allowing for the optimization of promotional strategies based on the acquired data. The objective of such research is to enhance brand awareness. This is primarily concerned with media advertising and creative content. The Brand Lift mechanics are based on the methodology of a sociological survey. During the course of an advertisement, viewers are presented with a series of questions and answer options. The advertisements are displayed directly in the video player or on the banner spot. All selected users meet the specified targeting criteria. The test group views the video or banner, while the control group does not. This enables us to ascertain the impact of advertising on brand awareness and the likelihood of purchasing a product from the brand.

Brand Lift is now offered by major market players such as Yandex, as well as independent programmatic platforms, for instance, BYYD, which we previously discussed.

Sales Lift

The objective of this study is to ascertain the impact of advertising on sales. To this end, particular customer actions are assessed, including purchases, reactions to the creative (banner ad), and text messages.

A/B testing is a common methodology employed in sales lift research. In other words, audience segments are compiled based on aggregated and anonymized data. Two target audience groups are formed from the segments: a test audience (which receives the advertising) and a control group (which does not see the advertising). After that, the results are evaluated on a comparative basis within each group. Subsequently, it becomes evident which creative concept was more effective, which text resonated with the audience, and so forth.

In many cases, this is not sufficient. This is why data operators (such as the Russian mobile operator MTS) provide additional research functions, known as Post Campaign Brand Lift. These include analysis of other qualitative KPIs, competitors, the number of calls or downloads of the mobile application after the campaign, and so on.

Naturally, the selection of research is contingent upon a multitude of brand attributes and financial resources. It is advisable to take advantage of the opportunity to analyze the programmatic aspects of the campaign in this way, as it is often beneficial to do so. As a result, you can examine the data in depth and swiftly modify the strategy to boost sales.

Programmatic challenges in Russia

As many companies have noted, the issues are largely associated with fraud, low-quality inventory, and limited transparency.

Russian Programmatic Market Overview: Key Trends and Insights

Transparency should be understood by some of its aspects as the correctness of customization and speed of advertising strategies and data.

What to do?

Transparency in the use of strategies and data provides access to comprehensive reports on targeting and ad customization, as well as real-time updates on campaign performance. The strategies transparency are made clear through the use of algorithms and change history.

Automated checks and tools, advice, and feedback from technical or customer support platforms enable us to ensure the correctness of customization. In terms of operational speed, this is guaranteed by the rapid processing of data and a user-friendly interface, as well as the use of AI to optimize and adapt campaigns in real time.

It is therefore advisable to select advertising platforms that provide transparency in reporting, offer proven customization methods, and have fast data processing speeds.

The process of working with programmatic campaigns is inherently complex. However, if approached in a competent manner, this task can be highly effective. There is a wide range of programmatic services currently available in the Russian market. Such platforms may be niche, advertising systems belonging to the leaders of the paid advertising market, or solutions from mobile data operators.

What is the best way to select an appropriate strategy?

As a preferable alternative, you may wish to request assistance from RMAA specialists by completing the contact form. We guarantee prompt feedback and a comprehensive range of services for campaign programmatic management.