TRANSFORMATION OF ADVERTISING BUSINESS IN THE CONDITIONS OF THE DIGITAL ECONOMY
DOI:
https://doi.org/10.32782/inclusive_economics.12-8Keywords:
advertising, digitalization, digital economy, digital technologies, digital advertising, marketAbstract
The transformation of the advertising business in the digital economy is one of the key processes of modern economic reality, which is due to the rapid development of digital technologies, changing consumer behavior, and global crisis phenomena. In Ukraine, this problem is becoming particularly acute due to the combination of the consequences of a full-scale war, economic instability, and accelerated digitalization. In 2022, the Ukrainian advertising market experienced a catastrophic decline of 40-50%, shrinking to ≈20-22 billion UAH, and the digital segment to 10-11 billion UAH. The war caused a massive outflow of foreign companies, a sharp reduction in budgets, job losses in creative industries, and a reorientation of business to survival. At the same time, it was the crisis that stimulated the transition to digital channels: in 2023-2025, a steady recovery is observed - the total market reached UAH 33.4 billion in 2025 (+12-13% by 2024), and digital advertising exceeded UAH 19-20 billion (according to some estimates, up to UAH 50 billion in an expanded interpretation of online spending), occupying more than 60% of the structure. Digital transformation is radically changing the advertising business: from mass one-way communication to a personalized, measured, omnichannel approach using Big Data, artificial intelligence, programmatic, video advertising (share ≈45-46%), SMM, influencer marketing, and DOOH. Market concentration in the hands of global platforms (Google, Meta) is increasing, which increases dependence and at the same time opens up new opportunities for efficiency and scalability even for small businesses. In scientific terms, the specifics of the adaptation of advertising enterprises in the conditions of a war economy, the combination of crisis and technological factors, the long-term consequences of digital dependence and the formation of hybrid models have not been sufficiently studied. Therefore, the study of the transformation of the advertising business in the digital economy is relevant for developing strategies for sustainability, optimizing costs and increasing the competitiveness of the industry in Ukraine and the world.
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