About a third of tenders in the advertising market in 2024 were unethical
The number of unethical tenders is not decreasing and remains consistently high – in 2024, 28% of competitions involving advertising agencies and brands were fake. The problem of unfair tenders persists, and more market players are facing a lack of transparent criteria for selecting winners.
The Analytical Center of the Russian Advertising Industry (AC RIR), in collaboration with the Ethics Commission of RACA, conducted the fourth wave of research on unethical tenders. The project’s goal is to analyze compliance with procedures and identify trends in key violations during tenders.
This allows us to conclude that the picture is quite objective. A third of tenders leave agencies disappointed, feeling that they were simply used – exploited for their resources: human, time, emotional, and often financial
Denis Maksimov
Co-chair of the RACA Ethics Commission, Managing Director of Media Direction Group
First, there is a growing number of companies openly reporting violations, documenting damages, and seeking legal protection. Second, tolerance for fake competitions and manipulation of selection criteria is decreasing». According to Ekaterina, «the industry is entering a new phase of maturity, where professional players not only recognize the scale of the problem but also begin shaping new rules through collective pressure and dialogue. This provides grounds for cautious optimism – especially if these changes are supported by industry tools, standards, and ongoing ethical oversight.
Ekaterina Selyavina
Co-chair of the RACA Ethics Commission, President of the MOV!E Communications Group
Participation in tenders
A third of respondents (31%) participated in fewer than 20 tenders in 2024. The share of respondents who applied to 20-30 tenders increased from 13% to 16%. The most common business sectors in which respondents participated were retail (53%), real estate (50%), pharmaceuticals (47%), and food (47%).
There has been a gradual increase in the share of commercial tenders (from 77% to 87%) and a decrease in government tenders (from 23% to 13%). The number of open commercial competitions has also risen compared to closed ones: 67% vs. 34%. Most (81%) of the tenders in which respondents participated in 2024 were free of charge.
«The reduction in the share of unethical tenders in the government sector is largely due to the overall decline in government tenders on the market», — Ekaterina emphasizes. «This means that the drop in absolute numbers does not reflect improved practices but is primarily due to shifts in market structure».
The problem of unethical tenders
Throughout all waves of the study, the number of unethical tenders has remained stable at around 30%. In 2024, 28% of tenders in which respondents participated turned out to be fake. The share of unfair tenders increased by 4% compared to 2023.
The number of respondents frequently encountering unethical tenders rose from 36% to 53%. Those facing fake competitions on a regular basis doubled (from 9% to 18%).
Lack of transparent winner selection criteria was the main problem cited by study participants. The number of respondents giving this answer increased from 67% to 79%. Lack of feedback from organizers was reported by 74% of respondents – 7% more than the previous year.
Nearly half of industry representatives (47%) believe that the most unethical tender procedures occur in the media sector. This figure decreased by 7% compared to 2023.
Ekaterina believes that solving the problem requires developing a unified industry standard for tenders – a checklist with ethical and operational guidelines that considers the interests of both brands and agencies. «It is also important to create feedback and monitoring tools within the industry – for example, a platform for collecting and analyzing reports of procedural violations, based on principles of transparency, voluntariness, and data verification», — the expert adds.
The problem of price dumping
Dumping remains a common practice in tenders, negatively affecting work quality, market participants’ financial stability, and industry stability. 66% of respondents encountered this issue in competitions – 37% in commercial tenders.
Respondents believe dumping leads to decline in tender work quality (55%), participation of unqualified contractors (48%), and market instability (44%), causing staff turnover, hindering company growth, and weakening financial sustainability.
Over half (54%) of study participants believe monitoring systems by industry associations are necessary. 52% propose developing an industry standard for tenders.
Motives behind unethical tenders
A consistently high percentage of respondents (57%) noted that unethical tenders are conducted to gather creative ideas, concepts, strategies, and materials for free. Meanwhile, the share of respondents who believe fake tenders are used to justify pre-selected contractors decreased from 72% to 61%.
The main reasons unethical tenders remain a serious market problem include lack of accountability and tender culture and an illusion of impunity. «Often, organizers don’t realize that fake tenders or price dumping damage not only contractor relationships but also brand trust», — Ekaterina explains. She also highlights low awareness of business and reputational consequences.
Damages from unethical tenders
Time losses increased (71% to 74%). 24% estimated losses at 600-1,000 work hours (+4% vs. 2023). Reputational damage was reported by 25% (+5%). Critical losses affected 52%, while 41% suffered minor losses. Financial losses impacted 50% (-5%). 34% lost up to 5 million rubles, and 31% lost 10-20 million rubles (+8%).
Preventing damages from unethical tenders
Despite an increase in respondents receiving partial compensation (19% to 55%), 71% still cannot recover losses or penalize unethical participants. However, 29% secured compensation or penalties. 27% successfully harmed the unethical party’s reputation (+14%). 19% sought compensation independently. 23% sued organizers. 54% blacklisted unethical participants.
«To secure compensation, document participation, submitted materials, and compliance (or non-compliance) with tender terms. Well-documented communications increase legal protection chances. We recommend agencies include clauses in tender agreements prohibiting the use of proposals without a contract», — Ekaterina advises.
She also stresses that protection starts before participation: «Agencies sometimes enter tenders hoping for a miracle, ignoring red flags like unclear criteria, vague evaluation structures, or suspicious timelines. We urge participants to scrutinize briefs, ask questions, and – if in doubt – decline participation».
Denis asserts that tender ethics is a top priority for RACA: «We will present the study’s findings to all relevant bodies – especially the Media Agencies Committee, Creative Agencies Committee, RAMU, and RACA‘s board. I expect these committees to address this issue thoroughly». He also advocates for tender regulations focusing on pain points identified in the study.
Initiatives by the Ethics Commission
The Ethics Commission’s initiatives aim to reduce fake tenders in the advertising market. «Experts review industry complaints case-by-case, hear both sides, analyze context, and provide conflict-resolution recommendations», — Ekaterina explains. This approach helps market players gain support and foster a more mature ethical environment through dialogue and professional assessment.
«Based on complaints and resolved cases, the Ethics Commission drives systemic work across RACA‘s committees. This is how industry standards, guidelines, and templates emerge – rooted in real-world practice and ensuring a fairer, more transparent tender environment for all».
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