Effect of the Media Environment on the Advertising Market in Russia

© Media Watch 11 (4) 709-720, 2020
ISSN 0976-0911 | e-ISSN 2249-8818
DOI: 10.15655/mw/2020/v11i4/204637

 

Effect of the Media Environment on the Advertising Market in Russia

 

Oksana V. Tretyakova

Tyumen Industrial University, Russian Federation

 

Abstract

The development of the media environment and the advertising market is closely interrelated. The current research demonstrates that this relationship is more significant than previously thought. Addressing Russia’s advertising market’s case study, we analyze the major trends and establish the media environment’s effect. To do so, we put forward several hypotheses designed to elucidate the ongoing changes. Statistical and structural-dynamic analysis of development indicators of the media sphere and advertising in 2010–2019 and analysis of macroeconomic data led to the conclusion that Russia’s advertising market has considerable unfulfilled potential for growth. The research results indicate a structural shift towards a growing share of Internet advertising (3.97 times), while all other media market segments are shrinking amid deepening industry diversification. The study confirms the hypothesis that the advertising market is dramatically affected by the level of internet penetration, investments in the media and content sector, and the size of the profit and loss balance of organizations (potential advertisers). The hypothesis that there is a correlation between the growth of the advertising market and the growth in the number of organizations operating in the economy was not confirmed. Based on the regression models, we produce a scenario forecast for developing Russia’s advertising market for 2020–2024. Depending on the action factor, its growth potential ranges from + 5% to + 27% during the indicated period. One of the avenues for further studies is searching for useful tools to stimulate market development based on the patterns identified.

 

Keywords:    Media environment, advertising market, Internet resources, media segment, mass media, structural analysis, advertising content

 

 

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Oksana V. Tretyakova is an Associate Professor in Tyumen Industrial University Russian Federation. Her research interests are in reputational management, advertising in the economy, business planning in the advertising field, tourism policy and planning, and socio-demographic trends.

 

Correspondence to: Oksana V. Tretyakova, Tyumen Industrial University, 38 Volodarskogo Street, Tyumen, 625000, Russian Federation.  

 

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