Coca-Cola for the first time since the 1990s, not included in the top-20 advertisers of Russia

Photo: Luke Agripina Hyman / Bloomberg

In 2016 the Coca-Cola company not included in top 20 advertisers, taking into consideration the cost of advertising in all segments, except the Internet. Market participants attribute this to the redistribution of advertising budgets in online

For the first time since 1999, the Coca-Cola company is ranked in the top-20 Russian advertisers on the size of budgets, estimates Agency Initiative (part of advertising group ADV) based on data from Mediascope. As said the representative of the Initiative in 2016, the world’s largest producer of carbonated drinks spent on advertising in Russia of 3.98 billion rubles or 24% less than the year before. Thus he sank in the rankings from 15th on the 25-th line.

For comparison, the budget of the eternal competitor Coca-Cola company, Pepsi Co is in 2016, made up 9.23 billion RUB., having increased in comparison with the previous year by 5%. In the end, PepsiCo has risen in the rankings from fifth to fourth place.

The biggest advertiser at the end of 2016 was unchanged at Procter&Gamble, spent on advertising 10.6 billion rubles — the same as in 2015. The second and the third position is a pharmaceutical company Otcpharm and food manufacturer Nestle.

A rating (at the disposal of RBC), was compiled based on the number of placements and the prices quoted in the official price lists with no discounts for volume placement. The study took into account all types of advertising media except for the Internet TV, radio, press, outdoor advertising, advertising in cinemas and digital indoor (advertising on digital screens installed in public places).

The representative of Coca-Cola Vladimir Kravtsov explains the absence of companies in the top 20 advertisers is the fact that it focused on working with the Internet. “The age of the target audience, which focuses on the brand, between 15 and 19 years. If you take the more “senior” segment, 25-29. The audience mostly does not use such channels of communication as radio, television and especially print media. This generation draws information from mobile devices — smartphones and tablets,” explained Kravtsov. According to him, if the structure of the budget of Coca-Cola on the Internet is accounted for in 2015 12%, in 2016 — already 18%. The company did not reduce the overall cost of advertising, assured Kravtsov.

“Major redistribution of funds in favor of digital, and the fact that Coca-Cola for the first time fell out of the rankings — just confirms this hypothesis. This advertiser is perhaps the youngest target audience of all the top 20 advertisers”, — confirms Dmitry Kuraev, CEO Etat Control International Rus, specializing in mediaaudit.

Associate Professor, Department of integrated communications, HSE Paul Rodkin believes that the growing share of online ad spend is also due to the fact that Internet sites keep prices below the TV. As previously wrote RBC, megaproducer of TV advertising in Russia, the national advertising Alliance announced that advertising in 2017 will grow by 15%.

According to the IAB Russia survey conducted among the largest advertisers, if in 2015, only 33% of respondents planned to increase investments in Internet advertising in 2016, said 52% of respondents.

In the first three quarters of 2016 the online advertising grew faster — by 24%, while the Russian advertising market as a whole — by 13% to 240 billion rubles., estimated by the Association of communication agencies of Russia. At the end of the year it is predicted that the advertising market will increase by approximately 10%.

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