The Advertising Market: Why High Revenues Don’t Always Mean Steady Growth
1 April 19:40
The advertising services market remains one of the most dynamic segments of the economy, but at the same time, one of the most uneven.
A study by the YC.Market analytical platform shows that a company’s size significantly affects its financial stability, access to resources, and ability to weather economic shocks, reports "Komersant Ukrainian".
The analysis covers advertising agencies whose primary activity falls under NACE code 73.11
and is based on financial results for 2024–2025.
What makes the advertising market unique
Analysts note a paradox in the advertising industry:
- the barrier to market entry is relatively low;
- yet revenue is concentrated among a small group of large agencies.
As a result, the market is home to:
- several powerful players with multimillion-dollar revenues;
- a large number of small companies with unstable financial performance.
Under these conditions, a company’s revenue level becomes a strategic indicator that determines:
- access to major clients and technology platforms;
- the ability to attract investment;
- the ability to withstand economic shocks.
How the research was conducted
To avoid statistical distortions, analysts used percentile analysis.
All advertising agencies were divided into 20 groups based on revenue.
For each group, the following were determined:
- median revenue—the typical scale of operations;
- median revenue growth—a typical change in revenue.
Using the median helps avoid the influence of isolated outliers, which can skew the average statistics.
Why a logarithmic graph was used
The incomes of the smallest and largest agencies differ by a factor of thousands.
To ensure a fair comparison, the researchers used a logarithmic scale.
This allowed them to:
- display both microbusinesses and large corporations on a single graph;
- show the actual relative changes in revenue across different market segments.
As a result, it became clear that a company’s transition to a higher segment is not always accompanied by faster growth.
How market leaders behave
An analysis of the largest players showed that even in the top segment, growth trajectories differ sharply.
For example:
- EMARKET UKRAINE increased its revenue from UAH 3.06 billion in 2024 to UAH 3.66 billion in 2025.
- Google, on the other hand, recorded a drop in revenue from 3.21 billion UAH to 2.58 billion UAH.
This means that even the largest budgets do not protect companies from market shocks.
Volatility in the mid-market segment
Mid-sized agencies are characterized by even greater instability.
Often, such companies depend on a limited number of large clients, making them vulnerable to contract changes.
For example:
- STAR AP PLUS lost 75.3 million UAH in revenue growth in 2025.
- ADVERTISING AGENCY “AITI” recorded a drop of 41.3 million UAH.
At the same time, some companies continue to grow steadily.
In particular, ROBOTA INTERNATIONAL reported revenue growth of 136.6 million UAH in 2025.
Analysts identify three key trends in market development.
Scale increases resilience
Large agencies have a financial safety margin, which is ensured by:
- automation;
- scalable business models;
- customer diversification.
The mid-market segment is the most vulnerable
Mid-sized companies often fall into the trap of volatility because they depend on a few large contracts.
Even large companies can lose ground
The erratic financial trajectories of major players highlight the risks of outdated business strategies.
What this means for businesses and investors
Research shows that revenue alone is not a sufficient indicator of success.
For evaluating companies in the advertising sector, the following are more important:
- cost structure;
- diversification of the client base;
- the ability to quickly adapt the business model to market changes.
It is these factors that increasingly determine the long-term financial stability of advertising agencies.
