The online segment in the CEE in 2023
In 2023, the digital advertising landscape across Central and Eastern Europe (CEE) experienced significant growth, driven by changing consumer behavior and the increasing dominance of online platforms. Across the region, digital advertising is capturing a larger share of media investments, with mobile consumption and programmatic buying at the forefront of this shift.
Compared to the past year, when the online segment didn’t show a particularly big growth, in 2023 this segment fueled the increase of ad spending in the region. The overall spending online is near 6.38 billion euro, equaling to a 29% growth compared to 2022. Digital now accounts for 57% of all advertising spending in the CEE, while also changing its average share to 41%, taking the lead from TV with 38%.
The steady rise of digital ad spending continues across CEE markets. Countries like Poland, Romania, and Hungary saw notable increases, with digital media surpassing traditional platforms like television in many regions. The strongest digital countries are traditionally the biggest spenders too: In Poland, digital ad spending amounted to 1.7 billion euros, making it the largest market in the region. In Ukraine, Hungary and the Czech Republic online have had its share over 50% for years now, and they continue to show significant growth from year to year.
The share of online from the total ad spending vs. Internet penetration, 2023
Mobile consumption has also become a central pillar of online media usage. In Romania, over 80% of internet use now occurs on mobile devices, reflecting the broader shift toward mobile-first advertising strategies. Ukraine, impacted by the war, has seen mobile-oriented platforms like Telegram grow to a 93% penetration rate, making it one of the most widely used platforms for communication and news.
Programmatic advertising continues to grow, particularly in markets like the Czech Republic, where 72% of online ad purchases are now programmatic, reflecting the region's move toward automated, efficient ad buying. However, Hungary's market shows evolving trends with a slight decrease in programmatic advertising in favor of direct influencer and social media spending.
Online media consumption is fragmenting, as users spread their attention across multiple platforms, with growth powered by younger audiences. Social media plays a key role, particularly with TikTok, Instagram, and Telegram, particularly in Ukraine gaining influence. The king of short format videos, TikTok continues to rise, even though its advertising platform hasn’t been made available yet in the whole region, prompting brands to use influencers and other types of sponsored content.
As the cookie era comes to an end and AI-driven strategies rise, advertisers in CEE are adapting to new realities by exploring innovative, sustainable content and creative ways to engage fragmented audiences. AI technologies still dominated the discussion about digital in 2023, we_can held its annual conference on its effects on the advertising market: with our speakers we aimed to provide an insight into ethics and implementation in agency work, all in the context of the complex economic and pollical landscape of Central and Eastern Europe.
Published: September 29, 2024