US Tech Leaves Russia And Their Advertising Market Meta (Facebook, Instagram and Audience Network), Google and TikTok have stopped buying ads in Russia. What will happen to the Russian advertising market in the future?
For Facebook and Google leaving Russia is not critical:
Meta receives a little more than 1% of total revenue, Google – 0.5%. This is insignificant from the world profit.
Russian advertisers will move to Yandex and VK, the effectiveness of campaigns will drop, competition will increase, and prices will rise.
For most businesses – especially small ones – buying ads can become out of reach because it will be very expensive.
The volatility of advertising will be the same as in the stock and currency markets: today advertising will pay off the investment, and at the end of the week it will “drag into the red”.
Russian firms will need to count ROI – an indicator of return on investment: now more than ever it is important to quickly count money. As Russian firms have seen their global buying power crater in the last few weeks.