The news: Russia’s invasion of Ukraine is having dramatic effects on the advertising world. With many brands having pulled back from Russia, we have forecast new ad spending figures both within Russia as well as Central and Eastern Europe.
Slowdown in view: We developed two ad spending forecasts for Russia and Central and Eastern Europe, using a scenario-based approach. Our “moderate” scenario is our official estimate, which shows a drastic decline. The “severe” scenario would apply if the war in Ukraine lasts an exceptionally long time.
Brand effects: For most brands, the geopolitical reverberations of the war are the biggest challenge, not immediate revenue losses. Few of the world’s biggest tech or consumer brands are highly dependent on operations in Russia. Even so, some companies have felt pain.
Why it matters: The war could exacerbate economic challenges that are already straining the ad spending environment. Although Ukraine and Russia’s ad markets represent a tiny percentage of the global total, the war could have a wider-ranging impact on the ad industry eventually.