Madison Avenue has a new address: The Republic of Armenia. Working there this past summer, it was impossible to ignore that advertising has found its stride and is booming on the free-market landscape.
On television and on social media, on billboards and wall posters, advertisers from large corporations (Microsoft, Facebook, Visa) to financial institutions such as Ardshinbank and tech startups (Picsart), to fine spirits (Karas wines, Rémy Martin brandy) and even fast-food franchises (Kentucky Fried Chicken), mass marketing today seems omnipresent in the Armenian capital and the rest of the country. But while most of us in the West have always taken advertising for granted, it is a relatively new phenomenon for Armenians.
Soviet Legacy
In Soviet Armenia (1922-1991), as in other republics, advertising as we understand it was virtually nonexistent. As neither competition nor free markets existed, advertising was instead limited to propaganda by centralized government agencies. Television and radio commercials were unknown to Soviet consumers. For example Intourist—the Soviet state travel agency reportedly said to be run by the KGB—produced most of the posters, brochures, and ads in the land. Often commissioning renowned artists to design its ads, Intourist mainly targeted wealthy foreign tourists, hence its name, “foreign tourist.” Other government agencies promoted consumer products such as Atlant refrigerators, Ararat Brandy and Lada cars in the same manner. These targets were predominantly a small, elite class of professionals, government, and cultural officials. And while the former might be granted a car by the government their first year on the job, mid-level employees had to wait an average of 7 to 10 years, while a lower status worker might never be given one.
This Soviet Armenia poster by Sergei Igmunov was commissioned by Intourist in 1935. Designed in the Soviet Art Nouveau style, it depicts worry-free westerners speeding in an open top four-seat luxury car through an idealized landscape. While the sleek design mimicked ads produced on Madison Avenue, the lack of text explaining what made Armenia preferable to say the Cote d’Azur or the Alps is conspicuous.
In time, Soviet advertisements became more sophisticated, as evidenced by a fun 1986 promotion for the popular VAZ 2121 Lada Niva automobile. In it, two energetic women in expensive fur hats stand next to the Lada Niva, holding the reins of their trusty camels, ready to trade them in for the new sleek new car, even when crossing blistering desert sands. It’s especially witty when compared to the typical car ads that we’re used to seeing with a glamorous model or actor zooming along a coastal or mountain highway at breakneck speed. Designed as a joint venture with Italian manufacturer FIAT, Lada Nivas were also exported to former Soviet Block countries, as well as South America, Canada, Italy, and Germany. They are still popular enough that the 2024 Armenian Eurovision song contestant was a popular French-Armenian duo…called Lada Niva!
As for the many everyday people in Armenia and its sister republics who would never own a Lada Niva, these advertisements perhaps functioned to make the proletariat “work harder” in the hopes of one day being able to afford one—new or used.
Free Market Rising
Independent Armenia opened up economically to the west in 1992 in the wake of the collapse of the USSR, but things were slow to change, as expertise had to be built. Armenians have always been skilled in both the arts and commerce, and a new generation emerged in the early aughts that attended university abroad or at the American and French universities of Armenia, organizations which helped to train them in new, up-to-date ways of doing business.
Not surprisingly McCann Yerevan, part of a large global communications agency, was the first to open offices in the capital when it established its regional presence there in 2001 to market Coca Cola products, including Diet Coke and Coke Zero. Their main strategic competitor Publicis Armenia followed several years later in 2009. As the tech, mobile phone, and financial service sectors began to develop, local agencies such as DeeM Communications, Davel Creative Agency, Nett Digital and Aragil Digital also sprouted up. Some are general agencies while others specialize in a particular area, such as social media or data mining. As of now, the major agencies all offer a full menu of services, like what you might find in the West, including digital advertising, television commercials, print messaging in newspapers and magazines, as well as placement of advertisements in programs, films, and sponsorships. But while they are large in talent, they remain small with under 50 employees each. And while market experts Statista estimate that Armenia will reach US$86.55 million in ad spending in 2024, this represents only a fraction of the total Armenian national GDP of $25 billion. Of the total ad dollars spent, TV & Video represents the largest sector (US $27.40 million). Digital advertising is poised to take a 63% market share by 2030, with a growing emphasis on social media and influencer marketing strategies, and over 50% directed at mobile devices.
The Armenian government’s willingness to reform outdated laws and pass much-needed regulatory legislation, particularly the 1996 Law on Advertising, has also helped. Its law defines advertising standards and principles, and forbids ads for cigarettes aimed at minors. It also tries to ensure truth-in-advertising and even includes a key provision that makes Armenian the official language for national advertising.
Diaspora Influences
The Armenian diaspora has also helped accelerate change by building a network of adept international communications professionals. This is perhaps best exemplified by DeeM Communication, an agency founded in 2006 by Canadian repatriate Raffi Niziblian. He brought his years of experience to bear in helping to train a new generation of communications executives who have gone on to leading positions in the private sector and government or founded their own independent shops. DeeM has worked on marketing initiatives for the tourism sector including the Marriott, Best Western, and Golden Tulip Hotels, and branding for Square One, and was one of the first agencies to organize large outreach campaigns for Oriflame, American Express, and VISA card. It organized the opening events of TUMO, the Tatev Ropeway and festivals like Europe Day and Winterfest Armenia, which it initiated for the winter tourism market. Many of these activities are measured with increased participation, increased sales and brand recognition. DeeM also holds a yearly communications conference—the past edition was held at the American University of Armenia—co-founded by the AGBU in 1991—which invites leading stakeholders to discuss their work and important changes in the industry.
Using our expertise, collected data, and research, we identify the correct touchpoints and paths to effectively reach the target audience. From there, we shape messages that will resonate with the audience and align with the brand’s goals.
In the case of McCann Yerevan and Publicis Armenia, being part of renowned global communications giants is key. Their managers have access to expertise and support that Yerevan staff use to tailor campaigns for the local market. Gone are the days when Armenians were just playing catch-up: the major Yerevan agencies today function similarly to their counterparts elsewhere. They provide clients with research, strategic planning and creative execution that run the gamut of services including social media, digital, TV, and out-of-home advertising. Increasingly, AI is important and already being integrated into campaigns on an ongoing basis, although its exact and uncertain role will continue to change. And while Armenia’s political situation and small market are not ideal, the country also possesses a rich culture, a high level of tech/digital expertise, and e-commerce potential.
Social Impacts
The advertising industry’s impact however goes beyond growth projections and dollar amounts and is leading the way in bringing important social awareness and impact on Armenian society. Since 2020 for example, Publicis Armenia helped to implement a multi-stage anti-COVID awareness strategy, as well as anti-corruption campaigns like the award-winning I Know campaign, gender equality projects, and various UNICEF initiatives. For its efforts, Publicis Armenia was crowned by the 2019 ACT Cannes tribute in Human Rights. Also in 2020: when the Yerevan Municipality announced the implementation of waste sorting in the city, Publicis was called in to teach residents how to sort waste correctly. “It’s time to sort the waste.” The shape of the hourglass became the key visual for the campaign and emphasized both the urgency and the need for sorting.
Public Service Ads
In Yerevan today, recycling is now being practiced, and the prominence of these ads no doubt contributed to awareness building and implementation. Similarly, the agency’s Different and Equal project helped to combat gender-based violence and sex-selective abortion in Armenia. The campaign that Publicis developed helped to underline the importance of equal rights for boys and girls at its earliest stage, i.e. birth with sex-selective abortions, and then during education, sports, daily life.
Publicis Armenia also continues to provide creative and media services for major international brands like Pepsi, Samsung, and Visa. Creative Executive Hripsime Minasyan explains: “Using our expertise, collected data, and research, we identify the correct touchpoints and paths to effectively reach the target audience. From there, we shape messages that will resonate with the audience and align with the brand’s goals.”
Meanwhile, McCann Yerevan was the first advertising agency in the Armenian market that signed the WEPs (Women’s Empowerment Principles) together with five other companies from IT, banking and hospitality sectors. The agency completed two successful “Ring the bell for gender equality” events together with UNDP and AMX. And given McCann’s presence in the carbonated beverage sector, its subsequent championing of the Armenian food and wine industry isn’t surprising. It’s wildly successful 2024 “Gastronomic Days” Instagram Campaign was a natural fit. The agency created everything from the logo branding and social media presence, and then implemented produced live televised international chef competitions done in parallel with Yerevan Wine Days. The campaign was a win-win as the tourism, gastronomy, and wine sectors all benefitted. In fact for several weeks it was impossible, for example, not to notice the large live Best Chef-style competition that they established in Kentron, Yerevan’s downtown area, which was projected onto huge screens and even invited passersby to serve as audience members.
The advertising industry in Armenia is also working hand-in-hand with hi-tech and financial services to help make Armenia “fully digital” like another former Soviet republic, Estonia. A good example was the partnership formed with Visa Armenia when Apple Pay entered the Armenian market. Publicis and Visa implemented various promotions and benefits in Yerevan’s best-known cafes and shops. By providing multiple opportunities for Yerevantsies to use Apple Pay for discounts and vouchers, the campaign had a positive effect on purchasing power and customer satisfaction. The deceptively simple slogan Visa welcomes Apple Pay in Armenia, greeted people throughout the city, along with clear pared down visuals.
As part of one of the world’s leading communications giants, McCann Yerevan also draws on a wealth of partner expertise when needed. The Yerevan office works closely with the EMEA (Europe, Middle East and Africa) region and recently launched advertising.ge as a single platform for McCann agencies in Georgia and Armenia. Clients include Coca-Cola, L’Oreal, Mastercard and Microsoft. The agency offers full services including Creative and Branding; Design and Packaging; Strategic Planning; BTL and Events, and Audio/Video Production; as well as Digital Marketing, Universal McCann and Media Services. McCann Yerevan typically focuses on creative and competitive content for the Armenian market, which includes branding, design, event planning, digital marketing, and CRM (Customer Relationship Manage-ment) projects, helping to identify new opportunities and foster growth. It also handles different social initiatives as part of the global agency and provides pro bono services for different foundations, such as 4090 Foundation, SOS Children’s Villages Armenia, and FAR USA. Some of their more important campaigns have included the launch of new Galaxy Flip6 Fold6 Smartphones, which was featured in the American Chamber of Commerce Magazine.
Given the Armenian diaspora’s involvement in the Republic of Armenia, it seems only fitting that one of the most dynamic, if smaller, agencies in the country DeeM Communications, was created by a Dias-poran. It offers campaigning, events management, creative design work, PR, digital and influencer marketing. Starting a company from scratch in Armenia was challenging, as Niziblian had to provide professional training to employees and clients alike, that was lacking in the older generation: “On the other hand,” Niziblian states “working in a small market made things move quicker.” DeeM’s PR clients have included the Central Bank of Armenia, HSBC and Byblos Bank and the agency introduced and handled promotions for Serj Tankian from System of a Down on two occasions, as well as PR and events management for telecom giant Orange and media buying for food giants Nestlé and Ferrero Rocher. Says Niziblian: “You can be more daring in such an atmosphere, as in a recent project that used digital tool firework drones and solutions.” DeeM is a thoroughly cutting-edge operation that uses modern and trendy solutions like celebrity/influencers, 3D projections and digital and AI tools. It is also involved in the always interesting fields of film marketing and production. Niziblian instituted “a Canadian business model,” by which he means full transparency and a “zero non-ethical business behavior” culture based on respect and trust. And while one can measure a particular campaign’s influence in increasing the number of customers or by tallying the number of ad dollars that clients have spent in a year, the type of change Niziblian has instituted contributes to much-needed democracy building and helps Armenia adhere to internationally accepted standards and practice. From 2014 to 2017, DeeM hosted the well-attended PR Summit Armenia with international specialists and academics that helped build the PR sector of young Armenian media creatives and executives.
DeeM has championed the building of strategic national campaigns. In one fascinating partnership, DeeM joined forces with the International Organization for Migration (IOM) to launch the Sincere Talks social media awareness campaign about HIV, migration, and well being, which targeted migrant workers and their families. DeeM chose Facebook as the main channel for the campaign, and created uniquely designed visuals and characters and a unique tone of voice to attract the target audiences. Implemented between January-April 2024, the campaign focused on addressing pressing humanitarian needs, particularly in vulnerable communities in Armenia. By aligning content with core messages and values, DeeM tries to foster trust and make a lasting impact on Armenian society.
DeeM is in tune with global priorities such as climate change and waste management. It has implemented over a dozen campaigns on renewable energy, energy efficiency with the European Union, IFC, and EBRD to name a few. In a recent campaign, DeeM showcased its expertise by organizing the 10th-anniversary cooperation and signing ceremony of the Green Bond between National Mortgage Company (NMC) and the Agence Française de Développement. The awareness campaign and this specific media event will help develop a dynamic path towards a more sustainable future in Armenia.
Another noteworthy innovative solution it offered recently is the Waste Monsters educational game-application it created for school children of Yerevan, Warsaw, and Tirana. The aim is to help younger people learn about the impacts of hazardous waste, how to sort and manage it and what preventive methods there are for them. The game is tested and is being discussed with the Ministry of Youth and Education to be launched in 2025 as an auxiliary for teachers as a learning tool as well as public use for young people to play and learn.
Measures of Success
Neither the government nor ad agencies keep exact statistics on how much an individual campaign or the industry itself contributes to the economy’s development. Yet this much we do know: there are upwards of 500 people working full-time in the industry as a whole. In the case of the Apple Pay and VISA campaign, Publicis campaigns introduced Apple Pay to the market for the very first time and within a year, six of the largest banks in Armenia including ACBA, Ardshin, and HSBC were accepting Apple Pay. In fact combined VISA/Apple Pay options are predicted to soon account for over 50% and 75% by volume of the Armenian debit and credit card markets. In the case of McCann’s Gastronomic Days campaign, the agency’s work helped to grow the overall attendance at the wine and gastronomy events to upwards of 15,000 visitors in 2024, up from 63,000 in 2022 to 120,000 in 2023. And when it comes to DeeM’s recent eight-month-long domestic violence law campaign, during which the agency used no less than thirteen unique tools to engage the public on traditional, social and digital media platforms, Niziblian explains that certain metrics highlight its success: “For instance, the e-draft.am website recorded over 20,400 views—a record-breaking figure. The campaign also garnered significant public participation through voting. On social media and digital platforms, the campaign achieved an estimated reach of 2.5 million. It generated three videos, 20 social media posts, 50+ media mentions, and over 1,350 third-party references to the campaign’s activities.” These efforts effectively shaped public opinion, ensuring a better understanding of the proposed law’s objectives and countering misinformation. Given these remarkable statistics and the continued efforts of global giants like McCann Yerevan and Publicis Armenia, the advertising industry should continue to expand and make a positive impact on Armenia in ways both quantitative and qualitative.
