The All-Ukrainian Advertising Coalition (VRK), the largest advertising and communications market association in Ukraine, conducted a survey of its members on the state of affairs, in order to understand what is happening with agencies advertising and the advertising market in the sixth month of the war in Ukraine.
The research was conducted through targeted online interviews with representatives of VRK member companies. 112 companies of various specializations took part in the survey. The implementation period is July 2022.
According to the research results, the vast majority of VRK member companies (94%) continue to work. This applies to all types of companies that took part in the survey: communication agencies, media agencies and media companies.
The amount of work decreased significantly in 81% of businesses of all types.
Most companies that nearly stopped working were from the media segment (13% media agencies and 14% media companies). At the same time, the volume of activity of 14% of communication agencies remained at the same level or even increased.
Most of the respondents (71%) have a low or average workload compared to the same period last year. Only 9% of the companies surveyed report a very high workload. These are mainly communication agencies (11%) and media companies (14%).
The total number of employees of all responding companies decreased by 24%. 30% of companies have reduced the number of employees in a range of 10 to 30%. A quick layoff (of 70% or more) occurred in only 7% of respondents.
51% of companies indicated that almost a third of their team is currently located outside Ukraine. 30% of respondents indicated that all or nearly 90% of their employees are currently located in Ukraine.
Significant changes in cooperation with clients have taken place in communication agencies (72% of companies): they have partially or completely suspended the cooperation with clients they had until February 24, 2022. At the same time, more than half of media agencies (53%) continue to partner with their “pre-war” clients.
Many respondents (74%) started cooperating with new customers during the war. This concerns communication agencies (87%). This may be related to cooperation with foreign customers. After all, today the majority of respondents (71%) have international partners (clients or agencies). Communication agencies have many clients in foreign markets (75% of respondents), more than half of media agencies and media companies also have international partners.
More details of the Ukrainian research on the pulse of the advertising industry are via the link.
All-Ukrainian Advertising Coalition is the key association of the advertising and communication market in Ukraine (25 years in the Ukrainian market). It brings together the main players in the market (more than 150 companies), including creative agencies, marketing, public relations, media companies and advertisers. The coalition is an organizer of key international and local advertising contests and events in Ukraine (such as – Effie Awards Ukraine, Kyiv International Advertising Festival, The Night of Ad Eaters, etc.) and local representative for all contests international (such as Epica, ADC*E, Gerety awards, etc.). It is a member of the European Association of Communication Agencies. https://vrk.org.ua/