Russian Digital Marketing Landscape 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 current Demographics

• Russia’s population – 143,37 million• EU total population is – 503,7 million • Russian population alone represents more than a 3d

of the whole population of EU consisting of 27 countries

• Russian population is expected to continue to grow• There are more women in Russia, than man. In 2014

the male population is predicted to be 65 million and female 76 million.

(Source: Russian Central Statistics Office, 2012)

Online Presence in Russi@• 50,1 million Russian internet users browse online on daily basis (Ria

Novosti, 2013)• In Russian cities (>100,000 people) 94% of them have access to Internet,

even broadband• Number of Russian online users continues to grow. • Between autumn 2010 and 2011 the growth was 17%, between 2011

and 2012 it accounted towards 12%• The broadband speed has been increasing and the price for internet has

been declining.• Between 2011 and 2012 the broadband speed has doubled in Moscow

and tripled in St Petersburg.

Mobile Internet Usage in Russia

• December 2012 – 16,7 million access internet via mobile devices in Russian cities (smartphones and tablets) (TNS, 2012)

• Between 2011 and 2012 the number of Mobile internet users has increased by 35%

Mobile internet users distribution across various Mobile Operation Systems, %

Other Platforms

Source: Yandex Metrics, 2013

Source: TNS Web Index

What are the most Popular Sites in Runet?

Top Email Providers in Russia

• The usage of email services has increased by 20% between 2011 and 2012

• It is the biggest share in Europe

• Monthly email services users are 40,9million users

• The increase in usage of Mail.ru increased by 22% (42,7milliom)

• And Yandex Email by 37% (25,1 million)

Source: LiveInternet

Other

 Top Search Engines in Russia

• Yandex and Google continue taking the

lead.

• Yandex within three quarters in 2012

had a profit of 2,3 trillion of Russian

roubles, which is higher by a third

comparing to the same period of time in

2011.

• 90% of profit comes from Display text

advertisement (AdWords)

• 8% came from banner and dynamic,

interactive ads.

Jan Dec

Online Safety in Russia

• 59% of Runet users at least once have been under danger of getting a virus, while browsing websites• The rise of online banking has increased the level

of cyber attacks• The mobile internet attacks increased by 6 times

according to Kaspersky• the amount of email spam in 2012 has

decreased by 72% • Source (Kaspersky Lab, 2012)

Electronic Payments in Russia

• The revenue from electronic payment systems in Russian in 2012 was estimated to reach 45billion euros (J’son & Partners Consulting, 2011)

• Which is 24% greater that the number in 2011.

Revenue of Electronic Payment Systems Market, (billions Russian Roubles)

Source:

E-Payment in Russia• Electronic money payment platforms

have shown the greatest increase by 72% comparing to 2011 (281 billion roubles)

• The 90% of electronic money share is owned by three players – Visa QIWI Wallet, Web Money and Yandex Money

• Yandex Money within 3 quarters has enjoyed a profit of 374 million roubles (9,2 million euros)

• Yandex Money holds 12 million registered account and 9,000 new accounts are registered on daily basis.

Internet as a source of Credible information for Russians

• Internet is the top 3d source of credible information after TV and Press (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 in Russia

• Most popular social networking platforms in Russia are: Social Networks Sites, Blogs, And Forums, according to 75% (IPSOS Survey, 2012)

• At the start of Feb 2012 according to the survey 82% of Runet users have been registered at least with one social network. Highest level in the world.

• 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)

Other

Mamba

Moi Krug

VKontakteOdnoklanniki

Source: 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 surrounding region, this company allows customers to buy food and other products online and have them 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. An online “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 first mentioned last June when it raised $38 million (29.2 million euro). They’ve recently announced 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 large discounts.

What is purchased online in Russia?

Source: PWC, 2012

Tourism/ Bookings

Video and Audio

Children goods

Garden equipment

Groceries

Medicine

Sports Wear

Other

Appliances

Computers

Mobile phones

Make-up and Perfumes

Concerts/Booking

Clothes and Shoes

Books

Mobile Shopping

• Amongst Surveyed Russians 60% used smartphones or tablets for purchasing online

• Only 8% did it on the regular basis (PWC, 2012)

Total Online Purchases % Purchases From Mobile Devices %

Kitchen and Home Appliances 47 Books 38

Books 46 Bookings (concerts) 34

Mobile Phones 38 Computers and PDAs 32

Computers and PDA 37 Travel Booking 31

Clothes and Shoe wear 36 Video and Audio 27

“Today, Russian users place an order on eBay every 3 seconds” 

Wendy Jones, eBay’s Vice President of Geographic Expansion and Cross Border

trade

More than $400 million Russians spend on eBay is 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 new

oil behind the economy as- Middle class in Russia is growing- And internet access amongst Russian regions is expected to

continue increasing

To Conclude

• Russian Digital Marketing Landscape comes across as a robust one and will continue to expand as internet

access is expanding 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

less spam

• Social media marketing in the view of popularity of Social networks also comes across as good platform for

online advertisement

• 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 the second is also profitable.

• In Russia, unlike China, internet users rely on Russian ones as well as non-Russian (for example Vkontakte and

Facebook)

• In the view of the above companies and organisation who intend to expand internationally within online arena

should consider 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 25.05.2013 Available 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] Available from 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 from http://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 from http://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: daria.voronina2@mail.dcu.ie

Twitter: @voronina_d

LinkedIn: ie.linkedin.com/in/dariavoronina