Media and Advertising Market Trends of Ukraine in 2021

The economic environment 

2021 was a year of recovery after the 2020 crisis for Ukraine. GDP showed a +3,5% increase and almost reached the 2019 level. IMF forecasted a positive trend onward. At the end of 2021, the average salary in Ukraine was UAH 17,453 UAH (around EUR 560), almost 33% more than in 2020, which means that the standard of living for Ukrainians improved. 

The Covid-19 crisis forced the majority of people to start saving. However, in 2021 their numbers were decreasing, because many people were exhausted of limitations and returned to pre-covid consumer behavior patterns. As a result, the 2021 consumer confidence indicator reached the 2018 level, but it was lower compared to the euphoria of 2019, when President Zelensky won the elections.

Lockdown pushed e-commerce development further. In 2021, the industry showed +18% (UAH) growth vs 2020. 66% of people (in cities 50k+) bought something via the Internet in 2020. Mobile purchases are a continuing trend, and in 2021 the share of mobile e-comm was 28% (+2 p.p) in the overall e-comm.

The political environment 

In 2021, the government of Ukraine legalized gambling. Previously top players (PariMatch, FavBet, Cosmolot, etc.) were on TV under the Ukrainian National Lottery sign, which wasn`t correct. The legislation caused a boom in new players and more than doubled category spending (+212%). That led to extra competition for inventory, especially for the alcohol category, because gambling legal restrictions are the same as for alcohol.

In August 2021, mass media started to spread information about a possible ban on advertising of non-prescription pharma products, which would be a huge blow for the media market due to a huge share of pharma advertising in media, especially on TV (almost 30% of weighted gross rating points). The possible ban pushed pharma advertisers to increase activity on TV at the end of 2021 (+29% vs the same period in 2020). But the government doesn`t push this law currently. 

The local media market 

The Ukrainian media market in 2021 showed significant growth (+18%) after the stagnation in 2020. TV still has the biggest share (44%), however, digital budgets are increasing year-on-year mainly due to video and search. In 2021, agencies passed the 50% mark in programmatic purchases.

The main media market change was the reconfiguration of TV sales houses. TV channels were redistributed between two main sellers – Premium TV and Tvoe TV (previously, there were also two main sellers – Alliance and 1+1 media). Premium TV immediately has become a solid leader with a 67% share. Since June 2021 Sold out on Premium TV were 97-99%, while on Tvoe TV 79-95%. Overall TV sold out in 2021 were higher compared to 2020. 

L`Oreal & Nestle remains leader on TV, while the online marketplace Rozetka decreased TV activity (-25%) and moved to the #4 position, which allowed P&G and local pharma advertiser Farmak to take #2 and #3 respectively.

In 2021, a National Cybersports organization was created in Ukraine as an answer to the growing audience of video games and cybersports and the increasing interest of advertisers in this field. It will enable national tournaments and create opportunities for sponsors to communicate with the Ukrainian audience, which was a problem since Ukrainian cybersports were deeply integrated with Russian.

Trends in media consumption

The worldwide Covid-19 pandemic pushed digital consumption growth in Ukraine, and this trend continued in 2021. Internet penetration reached 88% (TA 12-65 50k+) and mobile internet usage 83% (TA 12-65 50k+). As the media market follows trends, the share of mobile advertising grew by 5 percentage points and reached 68% of all Internet advertising. 

Further digitalization is also reflected in the penetration of social media and messengers. Telegram and TikTok are leaders in terms of growth. In 2021, Telegram increased by +10% vs 2020 and in 2021 was used by 89% of Ukrainians (in cities 50k+). TikTok almost doubled its penetration and showed growth in all age groups. 

The growing 4G coverage even in rural areas pushed music streaming service usage. Spotify, Apple Music, and Youtube attract more and more Ukrainians. Last year, Ukraine officially launched Netflix and gained nearly 900k users from the start. However, it’s still significantly less than Megogo – a local leader with 3,5-4 Mio monthly users. People tend more and more to choose the content they consume. Smart TV and SWOD (subscribed video on demand) growing penetration confirms.

The reverse trend of the digitization of Ukrainians is a decrease in television viewing. It slowly decreases in all age groups from year to year. On the other hand, people still spend a lot of time nearby a blue screen (3h 36 min ATV in 2021), and information on TV is still trusted the most.