Internet Marketing in Ukraine

Agenda

• The explosive growth of internet in Ukraine• Who are those people?• I waste half my advertising money…• Putting on our Creative Hats

The Explosive Internet Growth

According to Bigmir, internet users have doubled in 18 months

Bigmir Ratings: Total Ukrainian Internet Users

0

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

Dec 20

05

Jan 20

06

Feb 20

06

Mar

2006

Apr 20

06

Jun 20

06

Aug 20

06

Sept 2

006

Nov 20

06

Dec 20

06

Jan 20

07

Feb 20

07

Mar

2007

Apr 20

07

May

2007

Jun 20

07

Jul 2

007

user

s

Source: Bigmir Ratings

MMI shows similar growth

MMI: Weekly Ukrainian Internet Users

1000

2000

3000

2004/3 2004/4 2005/1 2005/2 2005/3 2005/4 2006/1 2006/2 2006/3 2006 / 4 2007 / 1 2007/2

user

s (0

00)

MMI 2007-1,2

Using the internet is emerging as one of the more popular activities in Ukraine

37,6%36,4%

20,6%

14,9% 12,9%

9,7% 8,6% 6,7%5,7%

4,0% 1,8%

-5%

5%

15%

25%

35%

45%

Use B

ank C

ard

Read m

agaz

ines w

eekl

y

Go to R

estau

rant w

eekl

y

Coke a

s a br

and p

efere

nce

Wee

kly I

ntern

et Use

rs

Go to D

isco W

eekly

Go to C

inem

a Wee

kly

Plan to

buy i

nsur

ance

Energ

y drin

ks w

eekly

Travel

outsi

de U

krain

e

Travel

by pl

ace i

nt.

Activities by percent

MMI 2007-1,2

Who are those people?

From MMI, we can derive an Audience Profile

• M/F: 57/43• Average Age: 27• Married: 45%• Working: 55%• Managers & Specialists: 25%• Cities 500K+: 52%

MMI 20071,2

Hey, wait a second…

I use the internet all the time and that’s not anything like me.

Let’s take a more realistic look…

Weekly Internet Users splitinto four roughly equal segments

0

20

40

60

80

20 25 30 35 40 45 50 55 60 65 70

Single Men Married Men

Single Women Married Women

• Pop: 316,000• % of internet: 14%• Average Age: 20• Working: 36%• Man & Specialists: 16%• Cities 500K+: 50%

• Pop: 554,000• % of internet: 24%• Average Age: 37• Working: 93%• Man & Specialists: 46%• Cities 500K+: 52%

• Pop: 550,000• % of internet: 24%• Average Age: 22• Working: 40%• Man & Specialists: 13%• Cities 500K+: 51%

• Pop: 456,000• % of internet: 20%• Average Age: 35• Working: 67%• Man & Specialists: 33% • Cities 500K+: 55%

38% 44%

MMI 20071,2

0

20

40

60

80

20 25 30 35 40 45 50 55 60 65 70

Single Men Married Men

Single Women Married Women

Each segment has a different outlookwith minimal overlap

Professional life is important for a woman 91%Better to divorce than be unhappy 86%I prefer to be different 85%Children are for after achievmenet 79%I like to have fun outside home 79%I like to buy prestigious clothes 76%I like to dress trendy every day 72%I choose clothes to attract opposite sex 72%I can sacrifice for a beautiful body 71%

Statements most agreed with:I like helping people 89%Professional life is imp for a woman 89%I try to spend time with family 82%Sometimes I gossip 77%I like that I have male/female qualities 66%I read labels 62%Religion asnwers my questions 48%Shopping improves my mood 46%I don't like vulgar jokes 35%

Statements most agreed with:

Small groups are better than big 81%I try to spend time with family 80%I'm not jealous of anybody 76%I don't try new brands 75%I don't like Fast food 73%I buy only clothes I need 71%I don't like shopping 65%I prefer modest clothes 61%I buy only basic products 51%

Statements most agreed with:Children are for after achievment 79%I don't read long instructions 72%I'm competitive 69%Enjoy life before having children 65%I can risk for what I want 56%I buy products with artificial ingredients 50%Pricey shops are like museums 50%No trashcan, I throw on the street. 50%I seek out advenure 49%

Statements most agreed with:

MMI 20071,2

0

20

40

60

80

20 25 30 35 40 45 50 55 60 65 70

Single Men Married Men

Single Women Married Women

With a little interpretation, we can understand how different they are

Studying or beginning career

Notice me!!!

Don’t tell me how to live!!!

What can I do for you!

Don’t waste my time!

Short term plans don’t include family

Egoistic

Fashion Forward & Brand Sensitive

Ambitious

Working and professional

Family oriented

Focused on other people

Responsible shoppers

Spiritual

Studying or beginning career

Short term plans don’t include family

Rebellious

Anti-Brand

Adventurous Risk Takers

Working and professional

Family oriented

Indifferent to social pressure

Go with what they know

Satisfied with everyday life

MMI 20071,2

…And what their interested in.

Popular Reading Topics among Internet Users

Int. News

Ukr. News

Auto Sports

Music

Cinema

Horoscope

Fashion

Culture

Dosug

Humor

Travel

Stars

Health

Food Family

TV

City News

Econ

Real Estate

0

20

40

60

80

20 30 40 50 60 70

Single Men Married Men

Single Women Married Women

MMI 20071,2

But knowing who these Consumers

are doesn’t mean anything if we can’t reach them

Efficiently!!!

MMI 20071,2

And I know exactly where!

I waste half of my advertising money

We know where our TV money goes…

Effective Coverage & Cost

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Frequency

% C

ove

rag

e

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

% o

f b

ud

get

Reach % of Budget

7% of Budget

Guys like this eat lots of pizza and half our budgets!

Wouldn’t this be nice…

Effective Coverage & Cost

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Frequency

% C

ove

rag

e

Reach

100% of Budget

In the internet you can cap frequency, increase cover and response while lowering cost.

Based on 20,000 shows per banner

Unlimited Frequency

3 frequency per day cap

2 frequency per day cap

CTR 0.25%

CTR 1.25%

CTR 1.68%

UU 2 724

UU 9 641

UU 12 719

CPC$ 1,17

CPC$ 0,24

CPC$ 0,18

6x coverage and nearly 50x response for 1/6 cost per click!

With Internet Video and increasing broadband penetration, we’re looking at a new media world!

Putting on our Creative Hats

Awareness is no longer enough!

Consumers demand to be

Engaged!

Non-Standard Placement with

Nestle Muzon

Nestle Muzon Promotion

• Consumers were encouraged to listen to music, collect wrappers and win prizes!

• On the internet Nestle wanted to direct traffic to the contest site and increase awareness among young, active, light TV viewers.

• In 2 weeks over 1 million people had bunnies walking across their screen and 36,000 were directed to the contest site.

Winning Hearts and Minds with

Content Affiliation

Compelling Editorial Creates Brand Engagement

Direct users to your site to learn more about your brand

Embed Video

Co-create Editorial feature

’

Launch Headquarters

This Summer, Foster’s launched an Active, Energetic Brand!

Party!

Play!

Windsurf!Again,Engagement is Crucial!

With so much going on, consumers needed a web site to keep up

Party dates

Frisbee standings

Croatia Surf tour info

News and updates

Photogalleries

Forums

One final thought…

Don’t get caught behind!

“The Internet? We are not interested in it."Bill Gates, 1993

Discussion