The creative industry has been undergoing significant changes. Service costs are rising, client demands are becoming more complex, and competition is intensifying. In 2024 the Russian market demonstrated a sharp increase in creative service prices, presenting a serious challenge for agencies and clients alike. For Kazakhstan, this experience can serve as a valuable lesson to prepare for similar trends.
Price Growth: The Russian Experience
According to the AKAR Analytical Center, the average cost of creative services in Russia saw significant increases in 2024.
• Brand positioning and platform development – prices rose by 41%. This service involves analyzing the target audience, trends, and competitors, as well as defining the essence and values of the brand. The increase reflects the complexity and strategic importance of these tasks.
• Communication strategy – costs grew by 28.5%. This service includes the development of tactical messaging for various marketing activities. The rise in price is tied to the need for adaptation to new communication channels and formats.
• “Big Idea” long-term creative concepts – prices increased by 8%. These are comprehensive strategies designed to support a brand’s marketing activities for several years.
• Creative tenders – prices soared by 89%. This spike is attributed to the rising costs of preparing detailed proposals, including presentations, mock-ups, and concepts.
These trends are not exclusive to Russia. They could have significant implications for Kazakhstan’s creative market as well.
Challenges for Local Agencies
The report highlights a notable cost disparity between local and ex-network agencies in Russia.
• Brand positioning. The average cost for local agencies is 1.49 million RUB. For ex-network agencies, it is 2.86 million RUB — nearly double.
• Big Idea. Local agencies charge an average of 1.63 million RUB, while ex-network agencies charge 3.47 million RUB.
• Communication strategy. Local agencies offer this service at 1.07 million RUB, compared to 1.95 million RUB for ex-network competitors.
Kazakhstan’s local agencies face similar challenges. Limited experience, fewer resources, and constrained access to technology hinder their ability to compete. Rising costs could exacerbate these issues, forcing many smaller agencies to underbid or lose clients to international players.
Problems in Kazakhstan’s Market
Kazakhstan’s creative market remains in its formative stages. Local agencies often operate with smaller client budgets and limited investments in innovation.
A critical issue is the lack of associations to support the industry. In Russia the organizations such as AKAR play a vital role in promoting standards and ensuring transparency in tenders. Kazakhstan lacks similar structures leaving its market more fragmented and vulnerable.
Price Growth as an Opportunity
Despite the challenges, rising costs present new opportunities. Local agencies can use this moment to improve service quality and innovate.
• Investing in education. Training employees in new technologies and creative methodologies can boost competitiveness.
• Adopting technology. Automation tools and AI for content creation and data analysis can reduce costs and enhance efficiency.
• Strengthening local market positions. Developing tailored solutions for clients and leveraging local expertise can give agencies a competitive edge.
The Role of Government Support
Government support can be a critical factor in overcoming these challenges. Kazakhstan could implement measures such as:
1. Financial grants. These could help offset the costs of participating in tenders or developing complex projects.
2. Creating an industry association. This would allow local agencies to advocate for their interests and establish standards.
3. Subsidies for training and technology. Supporting workforce development and innovation could empower local agencies.
The Future of Kazakhstan’s Market
The Russian experience underscores the importance of adaptation. Kazakhstan’s agencies must not only respond to rising costs but also focus on improving service quality and efficiency.
The first step is to enhance service quality. Clients are willing to pay more if they perceive value. The second step is to form a unified industry association. This would help local agencies protect their interests and compete on equal footing with international players. The third step is to adopt new technologies. Automation and innovation can reduce costs and accelerate project delivery.
The rise in creative service costs is both a risk and an opportunity. Kazakhstan’s market can leverage this trend for growth and transformation. The key lies in studying international practices and tailoring them to local realities. By doing so, local agencies can remain competitive and sustainable in the long run.
Source: AKAR / ARIR / RAMU / GIPP Analytical Center, September 2024.
Prepared by: Alen Serik, expert of the Economy KZ portal
