Transcript of "Russian Digital Marketing Landscape 2013"
Russian Digital MarketingLandscape 2013
Agenda1. Outline of Russian Demographics2. Internet Penetration in Russia3. Mobile Internet Usage in Russia4. Runet’s most popular Sites5. Top Email Providers in Russia6. Top Search Engines in Russia7. Online Safety in Russia8. E-payment in Russia9. Internet: Credible Source of Information10. Popular Social Networks in Russia11. Russian E-Commerce
Outline of Russia’s currentDemographics• Russia’s population – 143,37 million• EU total population is – 503,7 million• Russian population alone represents more than a 3dof the whole population of EU consisting of 27countries• Russian population is expected to continue to grow• There are more women in Russia, than man. In 2014the male population is predicted to be 65 million andfemale 76 million.(Source: Russian Central Statistics Office, 2012)
Online Presence in Russi@• 50,1 million Russian internet users browse online on daily basis (RiaNovosti, 2013)• In Russian cities (>100,000 people) 94% of them have access toInternet, even broadband• Number of Russian online users continues to grow.• Between autumn 2010 and 2011 the growth was 17%, between 2011and 2012 it accounted towards 12%• The broadband speed has been increasing and the price for internethas been declining.• Between 2011 and 2012 the broadband speed has doubled inMoscow and tripled in St Petersburg.
Mobile Internet Usage in Russia• December 2012 – 16,7 million access internet via mobile devices inRussian cities (smartphones and tablets) (TNS, 2012)• Between 2011 and 2012 the number of Mobile internet users hasincreased by 35%Mobile internet users distribution across various Mobile Operation Systems, %Other PlatformsSource: Yandex Metrics, 2013
Source: TNS Web IndexWhat are the most Popular Sites in Runet?
Top Email Providers in Russia• The usage of email serviceshas increased by 20%between 2011 and 2012• It is the biggest share inEurope• Monthly email servicesusers are 40,9million users• The increase in usage ofMail.ru increased by 22%(42,7milliom)• And Yandex Email by 37%(25,1 million)Source: LiveInternetOther
Top Search Engines inRussia• Yandex and Google continue taking thelead.• Yandex within three quarters in 2012had a profit of 2,3 trillion of Russianroubles, which is higher by a thirdcomparing to the same period of time in2011.• 90% of profit comes from Display textadvertisement (AdWords)• 8% came from banner anddynamic, interactive ads.Jan Dec
Online Safety in Russia• 59% of Runet users at least once have beenunder danger of getting a virus, while browsingwebsites• The rise of online banking has increased the levelof cyber attacks• The mobile internet attacks increased by 6 timesaccording to Kaspersky• the amount of email spam in 2012 hasdecreased by 72%• Source (Kaspersky Lab, 2012)
Electronic Payments in Russia• The revenue from electronicpayment systems in Russianin 2012 was estimated toreach 45billion euros (J’son &Partners Consulting, 2011)• Which is 24% greater that thenumber in 2011.Revenue of Electronic Payment Systems Market,(billions Russian Roubles)Source:
E-Payment in Russia• Electronic money payment platformshave shown the greatest increase by72% comparing to 2011 (281 billionroubles)• The 90% of electronic money share isowned by three players – Visa QIWIWallet, Web Money and YandexMoney• Yandex Money within 3 quarters hasenjoyed a profit of 374 million roubles(9,2 million euros)• Yandex Money holds 12 millionregistered account and 9,000 newaccounts are registered on daily basis.
Internet as a source of Credibleinformation for Russians• Internet is the top 3d source of credible information after TV andPress (Wcion, 2012 Survey)• 64% of the sample study this information is perceived as trustworthy• Russian people use internet primarily to look for information(Levada,2012)• The Russian searchers are- 77% of them tend to be man- Age range 25-40 (77%)- Managers and seniors (90%)- Specialists and students (82%)
Popularity of Social Networks inRussia• Most popular social networkingplatforms in Russia are: SocialNetworks Sites, Blogs, AndForums, according to 75% (IPSOSSurvey, 2012)• At the start of Feb 2012 according tothe survey 82% of Runet users havebeen registered at least with onesocial network. Highest level in theworld.• Typical Social network user is:- 18-24 years old (96%)- Middle or upper class (87%)- Lives in Moscow or St. Petersburg(87%) (Wcion.ru)Social Network Users (mill)Growth %% of Internet users% of population*Use Social Networks at least once a month
Popular Social networks and Hosted Blogs, user %(2012)OtherMambaMoi KrugVKontakteOdnoklannikiSource: WCIOM, 2012
Average Amount of Time spent by Runet Users hours per month(Apr, 2012)
Major Players in Russian E-Market(Forbes, 2013)• Utkonos – $300 million (230.6 million euro) – Geared towards Moscow and the surroundingregion, this company allows customers to buy food and other products online and havethem delivered.• Wildberries – $290 million (223 million euro) – An online clothing store• Ozon.ru – $270 million (207.6 million euro) – Basically a Russian version of Amazon. Anonline “megamart”.• Holodilnik – $262 million (201.4 million euro) – The company’s name means “refridgerator”in Russian and, as the name suggests, it’s a store which sell home appliances.• KupiVIP – $256 million (197 million euro) – An online fashion retailer which we firstmentioned last June when it raised $38 million (29.2 million euro). They’ve recentlyannounced that they’re seeking a $145 million (111.6 million euro) IPO in 2014.• Biglion – $175 million (135 million euro) – Offers a variety of products and services for largediscounts.
What is purchased online in Russia?Source: PWC, 2012Tourism/ BookingsVideo and AudioChildren goodsGarden equipmentGroceriesMedicineSports WearOtherAppliancesComputersMobile phonesMake-up and PerfumesConcerts/BookingClothes and ShoesBooks
Mobile Shopping• Amongst Surveyed Russians60% used smartphones ortablets for purchasingonline• Only 8% did it on theregular basis (PWC, 2012)Total Online Purchases % Purchases From Mobile Devices %Kitchen and Home Appliances 47 Books 38Books 46 Bookings (concerts) 34Mobile Phones 38 Computers and PDAs 32Computers and PDA 37 Travel Booking 31Clothes and Shoe wear 36 Video and Audio 27
“Today, Russian users place an order oneBay every 3 seconds”Wendy Jones, eBay’s Vice President ofGeographic Expansion and Cross Border tradeMore than $400 million Russians spend on eBayis 54% more than the year before (2012-2013)
Russian Digital Market Future Forecast• According February 2013 report by the Russian bank Sberbank- by 2020, Russia will be Europe’s largest consumer market- as well as the world’s 4th biggest market- Online shopping is dramatically increasing in Russia and is the newoil behind the economy as- Middle class in Russia is growing- And internet access amongst Russian regions is expected tocontinue increasing
ToConclude• Russian Digital Marketing Landscape comes across as a robust one and will continue to expand as internet access isexpanding and its quality continues to improve• There is a potential for email marketing growth, as there is a high reliance on email amongst Russian and there is lessspam• Social media marketing in the view of popularity of Social networks also comes across as good platform for onlineadvertisement• E-payments are becoming more popular and e-commerce is expanding• In the view of Yandex’s revenue, Text advertisement seems more effective than the banner advertisement. However thesecond is also profitable.• In Russia, unlike China, internet users rely on Russian ones as well as non-Russian (for example Vkontakte andFacebook)• In the view of the above companies and organisation who intend to expand internationally within online arena shouldconsider Russia as a # 1 target
References• Forbes. 2012. Top 30 Russian Internet Companies. [Online] Available from http://www.forbes.ru/investitsii-slideshow/nedvizhimost/79474-30/slide/1 [ Accessed: 25 May 2013]• Quartz. 2013. The new force behind the Russian economy is online shopping. [Online] Available from http://qz.com/78442/the-new-force-behind-the-russian-economy-is-online-shopping/ [Accessed: 25 May 2013]• Ria Novosi. 2013. 43% Russian Use Internet Every Day – Study. [Online] Date published 16.03.2013. Date Accessed 25.05.2013Available from http://en.rian.ru/russia/20130316/180057375.html [Accessed: 25 May 2013]• Russian Federal Agency for Mass Media and Press. 2012. Internet in Russia: Current State Trends and Prospects. [Online] Availablefrom http://www.fapmc.ru/rospechat/activities/reports/2013/internet_in_Russia.html. Moscow: 2013 [Accessed: 25 May 2013]• Russian Federal State Statistics Service. 2013. [Online] Available fromhttp://www.gks.ru/free_doc/new_site/perepis2010/croc/perepis_itogi1612.htm [Accessed: 24 May 2013]• Yandex. 2013. Development of Internet with Russian Regions. [Online] Available fromhttp://company.yandex.ru/researches/reports/2013/ya_internet_regions_2013.xml [Accessed: 24 May 2013]The sources below were featured in the above Russian Federal Agency for Mass Media and Press Report.• TNS. 2012 [Online] Available from http://www.tns-global.ru/rus/index.wbp• Kaspersky Lab. 2012. [Online] Available from http://www.kaspersky.ru/threats• J’son & Partners Consulting. 2011 [Online] Available from http://www.json.ru/en/• Levada-center. 2012. [Online] Available from http://www.levada.ru/eng/• LiveInternet. 2012. [Online] Available from http://www.liveinternet.ru/corp/statistika.html• Price Water House Coopers, 2013. [Online] Available from http://www.pwc.ru/ru• Wcion,ru. 2012. [Online] Available from http://wciom.ru/research/
Contact Details:Presentation done by:Daria Voronina, Digital Marketing Masters Student, Dublin City College, Ireland.Email: email@example.comTwitter: @voronina_dLinkedIn: ie.linkedin.com/in/dariavoronina
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