Knowledge Bridge

Global Intelligence for the Digital Transition

Presentation: Digital advertising and sales for Russia and Ukraine

Russia and Ukraine saw dramatic growth in internet advertising in 2011. Internet ad spending rose 56 percent in Russia and 59 percent in Ukraine. In the first presentation below, we look at who is advertising on the internet in Russia and Ukraine, as well as advertising standards, pricing models and advertising management.

Russian and Ukraine Digital Market Overview from MediaDevelopmentLoanFund

To take advantage of this growth in internet advertising, we explore how to organise and motivate your sales team. Advertising sales is fundamentally about solving problems for your advertisers by providing them with products and an audience, at prices they are willing to pay.

In the next presentation we look at key sales concepts including:

• Calculating your potential advertising market.

• Identifying sales channels.

• Strategies for making money in print (or broadcast) and online.

• Motivating your sales force.

• Organising digital sales.

Sales organisation for Russia and Ukraine from MediaDevelopmentLoanFund

After looking at how to organise and motivate your sales teams, we look at two types of digital advertising: ad networksAd networksAd networks provide an outsourced sales capability for publishers and a means…

Although a couple of large ad networks get the lion’s share of the attention, there are more than 300 ad networks out there, with some focused on specific platforms or technology such as mobile or video ad networks, some focused on specific geographical areas, others focused on specific themes or types of content such as the Active Youth Network and even others focused on audience behaviour online.

Ad networks help address a number of issues facing advertisers such as the large choice of publisher sites leading to an over-supply of ad space, and the difficulty of identifying high-quality content.

In the next presentation, we look at different ad network pricing models and how to choose the right ad network.

Ad networks for Russia and Ukraine from MediaDevelopmentLoanFund

We look at classified advertising, beginning with a cautionary tale about the collapse of online classifieds as a revenue source for newspapers in the US. New online classified players such as Craigslist, Monster.com and HotJobs.com all helped to shift classified advertising from newspapers to new digital players. We look at how to develop your digital classifieds offering to prepare to defend yourself against new digital competitors.

Online classifieds include not only the “Big Three” of classified advertising – recruitment (jobs), real estates/rentals and auto – but also directories, free classifieds and calendars. Specialist classified providers that focus on dating, education or other types of products and services have also sprung up. Online classified advertising is in the early stages of development, but it still represents a potentially large market and has already attracted a number of large, international players.

We then cover several different strategies for developing your online classifieds business, including:

• Go it alone: building, selling and marketing your own classified advertising site.

• Build a network with other local media.

• Partner with a national site, which provides the technology and perhaps marketing and sales service, leaving you to focus on local marketing and sales.

• Enter into a traffic partnership, which means that you sell a traffic sponsorship deal to a national partner.

We look at examples of these strategies and how to organise your business to achieve success using one of these strategies.

Of course, digital advertising is a fast moving sector, so we also look at new developments and the future of the online classifieds.

Russia and Ukraine digital media classifieds from MediaDevelopmentLoanFund

In the final presentation, we look at how news organisations are using social media to generate revenue, either indirectly by using it to grow audiences and gain more data about their audiences, or directly by selling social media advertising.

How news organisations are using social media to generate revenue from MediaDevelopmentLoanFund

Article by Ross Settles

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