Video Advertising in Russia in 2023: Is It Living or Surviving?

Contents:

• "But we can make movies": how creative video production is doing
• Working with briefs and technical specifications is still a pain
• "Finding a good producer has always been difficult"
• Artificial intelligence is not a panacea, but just a tool
• Clients need... advertising that sells

"At least we can make movies": how creative video production is doing

In 2023, the creative video production market has stabilized, according to experts. The panic that characterized 2022 is a thing of the past. Now it is clear which companies continue to operate in Russia, and it is possible to collaborate with them on the implementation of high-quality projects.

Fyodor Balvanovich describes the current situation in the industry as a metaphor. He compares it to an interesting film that is suddenly interrupted by a fire in the theater. Panic grips the people in the center, they try to leave the room, while those who remain calm take the best seats in the hall. Despite the raging fire, which will eventually end, the industry is currently experiencing active growth. We and our competitors have a significant volume of orders and many filmings. According to Fedor, we are at the dawn of a new era in the industry.

Vladimir Gorb shares his concerns: "At first, I was afraid, as I couldn't see beyond the next 10 minutes. However, overall, the situation quickly normalized, and we didn't encounter any serious problems at Vilka."

After the departure of a number of international companies, video production companies are increasingly beginning to collaborate with small foreign startups. This allows them to expand their horizons, master new technologies and adapt to changing market conditions. Cooperation with startups opens up new opportunities for creative projects and also promotes the implementation of innovative solutions in the field of video production.

Significant changes have occurred in the domestic market. These changes have affected various aspects of the economy, including the supply and demand of goods, as well as pricing policy. In a dynamic market environment, competition is increasing, which contributes to the improvement of the quality of products and services. Current trends show that companies are adapting to new conditions by introducing innovative approaches and technologies. This, in turn, influences consumer preferences and forms new consumption trends. Investors and businesses must closely monitor these changes to respond to the challenges and opportunities emerging in the market.

• The number of new clients among small and medium-sized businesses is growing.
• Some creative production companies have expanded their activities and started working in related fields—for example, organizing events and broadcasts for corporate clients.
• And some are even considering participating in film production.

Timur Ismayev notes that the video production market has undergone changes, including in the quality of orders. Previously, the main clients were international, but now their number has decreased. From a marketing perspective, it has become more profitable for businesses to invest in more stable and understandable advertising tools than in the creation of expensive commercials. In the face of such changes, all market players need to adapt. For example, we have focused our attention on film production, including series and streaming platforms, which opens up new opportunities for business.

Alya Lugovaya emphasizes that the time has come for active development and the search for new directions in business. While advertising and music videos remain important, new brands have entered the market and TV series and content are experiencing significant growth. This opens up new opportunities for creative solutions and innovative projects.

Working with briefs and technical specifications remains a pain

Clients have recently begun to pay more attention to drafting briefs and technical specifications, due to reduced advertising budgets and a reduced margin for error. However, problems with formulating objectives remain relevant. Correctly defining the objective is a key step in the successful implementation of an advertising campaign, so it is important to pay due attention to this process. Defining goals, target audiences, and key messages are all critical to achieving the desired results.

Timur Ismaev notes that when working with medium-sized businesses with their own marketing department, it is important to include elements of educational content. This is necessary to explain the reasons and goals of the decisions made. Recently, there has been a trend towards a decrease in the number of specialists with in-depth knowledge in this field on the client's side. Thus, creating educational content helps not only build trust but also improve the effectiveness of interactions between the agency and the client.

Vladimir Gorb notes that interaction with a client always involves a dialogue built on trust. When a client provides only a brief brief, this can be a positive development. This approach opens the door to deeper communication, where a specialist can explain details and demonstrate their expertise. It is important that during the communication, the client understands all aspects of the project and feels confident in the team's professionalism.

Fedor Balvanovich emphasizes the importance of verbal briefings when working with clients. While a professional brief has its advantages, an oral brief allows for a deeper understanding of the client's thoughts and ideas. This approach not only helps structure information but also guides the client toward a clearer articulation of their needs. This can significantly influence further work and lead to successful results. It is important to be able to ask the right questions and listen, which ultimately contributes to more productive collaboration.

"Finding a good producer has always been difficult"

The video advertising market is experiencing a shortage of qualified specialists, which is causing serious difficulties in finding new talent. The problem lies not only in the shortage of professionals in Russia, but also in the fact that highly qualified specialists have begun producing video content in the countries to which they have relocated. This creates significant competition for Russian production companies and complicates the market situation. In the context of globalization and business relocation, it is important to adapt and develop internal resources to keep up with global trends and maintain competitiveness.

Currently, we are seeing a trend of many specialists who previously left the country returning. Furthermore, entry into the video advertising market in neighboring countries is increasing. This creates new opportunities for the development and strengthening of the position of domestic businesses in the field of video marketing. Active collaboration with foreign partners and adaptation to new conditions can significantly improve companies' competitiveness on the international stage.

Alya Lugovaya emphasizes that people who have left for the CIS countries have significantly improved the local industry. For example, in Uzbekistan, the situation was extremely unfavorable: only a few production houses, a couple of cameras, and one soundstage. Although salaries there are not comparable to those in Moscow, local specialists gain valuable experience from those coming from other regions. However, this has also led to a personnel shortage at home. Finding qualified specialists, such as producers, has always been a challenge.

Vladimir Gorb emphasizes that the talent shortage in the industry has always been and will remain a pressing issue. Scriptwriting or camera operation skills are not sufficient for successful teamwork. The most important thing is to be a competent person with whom you can create something truly meaningful and interesting. Even if a specialist possesses high skills, a lack of communication can become a serious obstacle to joint creativity and project implementation. Therefore, in today's marketplace, the ability to find common ground and work in a team is becoming a key factor for success.

Timur Ismayev emphasizes the importance of choosing the right team, using the metaphor of recruiting people you'd genuinely want to embrace. It's important in business, despite the pursuit of profit, to surround ourselves with people with whom we feel comfortable building long-term relationships. Collaboration and trust within a team play a key role in the success of any project. Choosing colleagues should be based not only on professional qualities but also on personal affinity, which helps create a harmonious and productive work atmosphere.

Artificial Intelligence Is Not a Panacea, But Just a Tool

One of the significant innovations in video content production is the widespread implementation of artificial intelligence and neural networks. These technologies not only simplify and automate many processes but can also help address the talent shortage in the industry. Experts believe that by delegating monotonous tasks to artificial intelligence, professionals will be able to focus on more creative aspects of their work. This will ultimately lead to higher content quality and faster production cycles. The development of neural networks opens new horizons for video production, enabling the creation of more innovative and engaging products.

Timur Ismayev notes that in early 2023, there was a brief period when neural networks were perceived as a groundbreaking tool for generating creative solutions. This interest lasted only a few weeks in February, when neural networks became a real hit among clients. However, this excitement quickly faded, and now neural networks are used primarily as an auxiliary tool. They speed up the layout process and simplify the creation of contact reports for client meetings. An example of the use of artificial intelligence in the creative industry is the recently released video by the Voskhod agency for the developer Brusnika, which demonstrates how AI can be effectively applied to graphics creation.

Alya Lugovaya shared her successful experience using neural networks in one of the episodes of our series. The action of this episode takes place in 2014, during the Olympics in Sochi. To create it, we needed to collect an extensive array of historical chronicles. However, since the International Olympic Committee had already left Russia by that time, we encountered difficulties in obtaining the necessary materials. Despite our request, the response was refusal. Ultimately, we turned to Midjourney technology and were able to generate entire scenes, which allowed us to effectively solve the problem and make the series more believable.

Clients need... advertising that sells

Creative advertising, aimed at a narrow audience and striving for awards at prestigious festivals, primarily serves to shape an image, rather than directly increase sales. However, in recent years, due to economic challenges, brands have begun to focus on the effectiveness of advertising campaigns. This change in approach is due to the need to achieve specific business results, which makes it important to use not only creative but also effective advertising solutions.

Alya Lugovaya argues that advertising for festivals is strict adherence to mathematical calculations. It is necessary to carefully analyze each decision: which actions will bring three points, and which two. You can't simply create an attractive project and send it out everywhere. It's important to understand that submitting work to some festivals may not be practical, while focusing on one major festival where the project can gain widespread distribution is best. In meetings with clients, I often observe creative team members becoming frustrated when the client insists on a sales-focused approach. However, I understand that the client has every right to such a request, as their primary goal is to effectively promote their product. Stay tuned for updates and new materials on our website. We regularly publish helpful articles and tips to help you better understand the topics covered. Don't miss the opportunity to deepen your knowledge and improve your skills by reading our content. Stay tuned and stay up to date with the latest news and trends.

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