Market Dynamics for 2019-2020
Updated: Jan 26
As per tradition, come spring in Kyiv, MAMI heads behind doors and starts crunching numbers related to the general dynamics of the market and marketing agencies according to income. The group collects data in the usual way, through questionnaires, etc, the info from which is then confirmed by official financial reports, independent audits, etc etc etc. We won’t bore you with the science (though if it is of interest you can get in touch with MAMI direct). What we want to share with you are the great results!
While last year was less than ordinary, if we consider the last 20 or so then there is hardly a year or two that could be considered “typical” – the political, economic, and global realities have always had a massive effect on markets, and not only here in Ukraine.
If we look at data in general over the 2019-2020 season, with a total of 25 and 26 participants (respectively), the total market grew by 7%, from 2 699 543.69 thousand UAH (approximately 98 379 470 USD) to 2 896 397.67 thousand UAH (approximately 105 553 420 USD). Given that there was a 5% inflation rate, most specifically due to the pandemic and COVID threatening many areas in the marketing world, what is hugely optimistic is that the lack of decline demonstrates that the industry is still alive and very very well.
So what does all this mean for 2020? Well, we managed to keep the market moving, our customers coming back for more, our staff employed, and activities, well, active. Even those analytics in the area of marketing services demonstrate that things aren’t really as bad as they might seem, with trade marketing in the lead, consumer marketing, loyalty programmes, and events trailing not far behind. According to MAMI, this “honest picture shows that even in a crisis, business is stimulating trade channels, keeping in close contact with consumers, and maintaining the emotional context in their communications.”
So, what’s been the biggest change? MAMI has categorised all agencies into five groups according to their income, key services, and clients, as well as where each agency falls in terms of the types of services offered. Pulse moves up from 12th position (group 3) in 2019 to 8th position (group 2) overall in 2020 with regards income dynamics with big thanks to its consumer and trade marketing services and work with clients JTI, Carlsberg, Unilever, Kimberly-Clark, Syngenta, ATB, MHP, Bunge, Kormotech, and Henkel.
What’s more, if we look a little closer at the specific spheres (particularly consumer marketing, merchandising, trade promotions, and sales incentive programmes), Pulse is actually in 5th place out of the 26 agencies studied. That’s fabulous!
What this means in the grand scheme of things is that this is a very positive sign, that the market volume has hardly changed, and the list of market participants has not suffered any losses. During the global pandemic, when large international companies have been cutting back on business, the Ukrainian marketing services industry is living, working, and breathing in spite of everything. In addition, despite the “crisis”, a reality Ukraine has been facing on a regular basis for decades, marketing agencies – and not only – have been working hard to pivot and remain relevant in these unusual times.
This past year has been no exception and is testament really to the creativity, ingenuity, and intelligence of Ukrainian companies.