20090616 Ru Market Overview Add Venture


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20090616 Ru Market Overview Add Venture

  1. 1. Business models with high growth potential in Russian Internet AddVenture Investment Seminar Moscow, June 25th, 2009 This report is solely for the oral presentation. No part of it may be distributed, quoted, or reproduced outside the presentation room without the prior written approval of eVenture Capital Partners GmbH.
  2. 2. Runet is in the middle stage of development compared to other markets and has significant growth potential RUNET DEVELOPMENT COMPARED TO OTHER MARKETS Ukraine Russia Germany Technological level in Internet 31,0 B2C 4,5 E-commerce volume, 0,4 Bn USD Number of users, Mio 10 38 55 Source: EVC analysis Seite 2
  3. 3. To identify high potential areas eVenture divides Internet business models into 5 major groups according to revenue generation and underlying technology MAJOR GROUPS IN BUSINESS MODEL CLASSIFICATION Transaction Advertising Subscription Community Other1) •All other •Transaction brokers •Free content or service •Users are charged a •User loyalty business models •Advertising is major periodic fee INTERNET •Merchants/Shops source of revenue. •High user investment in •Combination of free and time and emotion •Affiliate model •Large traffic volume “premium” content •Various ways of monetizing communities MOBILE TV 1 Includes Gaming, MVNO etc. Source: EVC analysis Seite 3
  4. 4. To reveal market gaps we investigated the 5 selected categories from the point of user frequency Visitor frequency of the biggest player in each key segment of Runet, Mio UV per month Mio Unique 25 visitors per month Portal 20 Shop enabler 20 (payment system) News 18 18 Person to person (Dating) 15 Social 15 network 13 Games 10 10 Search 8 Media 7 sharing 5 Classified 5 Maps 3 Bit vendor 3 Blogs 2 Shopping portal 2 Advice0,4 0 Advertising Transaction Subscription Community Other Source: EVC analysis Seite 4
  5. 5. In category Advertising more complex business models are expected to develop Visitor frequency of biggest players in category „Advertising‟, Mio UV p.m. Comments 25 Social Maps Search News Portals Book- marking  The strongest developed areas Customer reviews Mail.ru News.Mail.ru 20,4  Portals 20 18,7 Advertising networks  News  Search engines Mobile marketing  The areas with highest 15 potential SEO  Incentive marketing  SEO technologies 10 Yandex.ru Incentive marketing  Mobile marketing Begun.ru 8,1 Auto.Mail.ru n.a Maps.yandex.ru 6,7  Advertising networks 2,7 Lady.Mail.ru 5 Market.yan dex.ru Travel.Mail.ru 3,5  Customer reviews (Smart 2,2 Realty. 2,9 consumer concepts) Mail.ru 2,9 0 Investment attractive sectors for EVC Property Finance Travel Beauty Auto Generic Source: EVC analysis Seite 5
  6. 6. In category ‚Transaction‘ highest potential reveal social shopping concepts and e- commerce affiliates and enablers Visitor frequency of biggest players in category „Transaction‟, Mio UV p.m. Comments Category Shopping Special shop Auction Bit vendor Classifieds Shop enablers UV / month , Mio Mass killer portal  Most developed customi 6 zation Cars.auto.ru Yandex are basic models Money 5,7 18,1  E-Money Private shopping Job.mail.ru  Classifieds 5 4,5  Bit vendors Virtual marketplace  The models with IRR.ru highest potential 3,8 4 Social shopping Shop enablers are believed to be  Affiliate Gdeetotdom.ru networks 3,8  Virtual market 3 Affiliate networks place  Social Ozon.ru component Mvideo.ru 2,0 mixed with 2 Widgets Molotok.ru 1,8 shopping SaaS 1,5 (social Vsemaiki.ru Web Money shopping, 0,3 1,0 private I-on.ru 1 1,5 shopping) KupiVIP.ru Live shopping 0,3 0 0 Hotel Job Auto Other enablers Source: EVC analysis Property Generic Seite 6
  7. 7. Among Subscription models we recognise Geoservices and Mobile services to be the next points of growth Visitor frequency of biggest players in category „Subscription Comments UV / month, Services Person to B2C Subscription Mio provider Person sevices  The best developed models so far are 8 Love.mail.ru dating services 15,4  Most of them have been free before Loveplanet.ru Autumn 2008, however crisis made them Geoservices 6,8 introduce several monetization options 6  Improvement of profile  Paid games Mobile Services Mamba.ru 4,9  Presents to other members 4  “Service provider” segment is generally very weak so far, legal rights issues should be addressed  Highest potential is believed to lie 2 Radmin.ru within (Distant PC management)  Geoservices based on mobile TV-Portal.ru 0,5 technologies 0,07  Internet mobile applications 0 Dating Source: EVC analysis Seite 7
  8. 8. In category „Community“ monetized social networks are seen as the next step of developement Visitor frequency of biggest players in category „Community‟, Mio UV per month Comments UV / Open Advice/Recommen- Blogs Media sharing Social networks month, 15 content dation  Top developed areas Mio Paid social VKontakte.ru  Social networks 13,1 networks My.mail.ru (active growth and „My World“ saturation in 2008) 11,5 11,5  Media sharing Odnoklassniki.ru  Blogs 10 RuTube.ru  Currently social 7,2 networks with payment Foto.mail.ru 7,0 options (transaction or subscription) are seen as most attractive option 5 LiveJournal.ru 1,8 Moi krug.ru Answer.mail.ru 1,9 0,4 Blogs.mail.ru iFolder.ru iCompas.ru 15,4 0,3 n.a. Otziv.biz Smster.ru Professionali.ru 0,2 n.a n.a. 0 0 0 Travel Products Q&A Microblogging Documents Photo Video Professional Generic Source: EVC analysis Seite 8
  9. 9. EVC identified attractive market niches in Runet with regards to own focus KEY LEARNINGS OF RUSSIAN BUSINESS MODELS OVERVIEW Advertising 1  Smart marketing in Internet „Smart consumer“ concept Transaction  Social shopping 2  Various affiliates and e- commerce enablers Subscription  Geo- and Internet mobile 3 services are expected to be in demand Community Transaction- or 4 subscription-based communities Other 5 - Have not been considered within this report Source: EVC analysis Seite 9