The economic aftermath of the past years, especially Russia’s invasion of Ukraine has been harsh in the Central Eastern European region, and as this new crisis unfolds, it has significant effect on consumption habits, therefore on the advertising industry. We asked weCAN agencies how they perceive the current situation and see the near future and in the third part of our series, Andrew Andrushenko, CEO Razom Group shares the specifics of the Ukrainian situation.
For Ukraine, 2023 is the second year of war and we hope it will be the last year when the entire economy and media market operate in wartime mode. Despite the war and the infrastructure damage that results in power and heating outages in some cities, the advertising media continues to function and is aided by advertisers. Some categories have experienced a significant decline, but we are confident that with the end of the war, the advertising market will grow exponentially. This will be especially noticeable for categories related to economic recovery such as finance, construction, communication, and technology. The war has seriously changed the behavior of advertisers even within a single category. Some have almost stopped communicating with consumers, and the brands that demonstrate not only value but also an active position in approaching victory are replacing them in the minds of consumers. The war has brought significant changes to business agencies as well. Traditionally, agencies in Ukraine were among the most professional in the region, and with the reduction in client budgets, especially international ones, many have reoriented to provide services for other markets. As a result, this provides advantages for both sides: Ukrainian specialists effectively solve the problem of resource shortages, while European agencies have the opportunity to provide high-quality services at prices close to Ukrainian ones, especially in the Digital area, where projects are not tied to a specific market and use global platforms. This can be particularly relevant in a situation where European clients are looking for opportunities to optimize costs and get a fresh perspective on their own problems - teams of Ukrainian agencies, who gained experience working in wartime conditions in 2022, can provide valuable insights.Andrew Andrushenko/Андрей Андрющенко, CEO Razom Group