Which digital media channels in Russia have the biggest advertising ROI?

Nielsen Russia has published new data on the effectiveness of digital media advertising in Russia

We published a translation of Roistat research on the difference in ROI for Yandex and Google ads in Russia (part 1  and part 2). The Nielsen Russia team has researched a variety of digital media channels, comparing advertising ROI and analyzing various omni-channel strategies that could be used to maximize return on investment (results in Russian are available here).

ROI for various media channels in Russia continues to grow. While TV ads continue to be the most reliable channel, online banners, videos, bloggers and social media have a higher ROI.

In this interview (published in Russian) Aleksandr Abramov, Nielsen Marketing Effectiveness leader for Russia and Eastern Europe, digs deeper into the results and explains which underlying trends affect the ROI.

We’re publishing the key takeaways from this interview below.

Reasons why media companies in Russia have a higher ROI compared to European ones

Consumers in Russia are much more open to interacting with brands. As opposed to European consumers, their habits are not yet set in stone, and can be affected by external factors, such as advertisements.

Reasons why digital communication channels have the highest ROI, but TV ads bring in the highest volume of additional sales

This trend is in line with the worldwide trend, and does not distinguish the Russian market from others. However, spending on media channels continues to grow, and more and more brands choose to go digital. Not all companies, however, have been able to find the right mix of digital channels for a high ROI. Choosing it would depend on a variety of factors, from instruments to audience.

Best practices for optimizing ROI through media planning for Russia

Media planning can be boiled down to several steps. For all of them having data on ROI and optimizing for a maximum ROI is crucial.

Here are the steps:

  1. Setting the goals and budget for a given campaign
  2. Selecting the channel mix
  3. Determining support scenarios
  4. Buying optimization
  5. Actualizing media tactics

There are multiple ways to place ads, and companies that are capable of a large-scale implementation of the most effective media mix tactics are the ones who become market leaders. Of course, it is necessary to validate new marketing tactics by running market tests, as well as follow market trends and the experiences of other companies on the market.

How many communication channels a brand needs to succeed in Russia

For a brand operating on country-wide, 4–5 large-scale channels are a must for being in the top 3 for a market category.

However, the particular channel breakdown would depend on each brand’s strategy.

For niche brands, 2–4 channels should be enough. In this case, however, it’s important to plan and execute each campaign extremely carefully, as it’ll attract a lot of attention.

Is TV advertising going to be replaced by digital media ads?

This is a relevant question for large brands. I have seen many large companies successfully transition to digital media without losing sales. According to Aleksandr Abramov, sometimes brands use thousands of tools to manage their digital ad ecosystem. In such cases it is vital to use data-driven attribution instead of last-click attribution.

Main mistakes when adapting ads for various ad formats

Some of the most common issues are failing to adapt for various devices or failing to add subtitles. A more significant mistake would be exceptionally narrow targeting missing its mark.

Yandex.Direct has a variety of tools offering brands an opportunity to create targeted ads speaking to a particular audience.

For example, Yandex can target by device type, or based on a wide variety of Yandex or company data.

If you are curious about the way Russian men and women search online, and want to check your assumptions about their behavior, this article can help as well.

To find out more about Yandex’s capabilities for advertising in Russia, click here.