recession-2009: results and lessons

Andrey Sebrant

Yandex

Recession-2009:results and lessons

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Warsaw, October 2008, “Russian hour”

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19 months later

So, what were we doing?

What happened?

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Russian Internet growth (in ‘000)

Cities 100 000+, monthly reach

Age, years

March 2008 March 2010March 2009

Source: TNS WebIndex

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Activity growth

More frequent users every year

Reach

6 months

3 months

1 month

1 week

1 day

Source: FOM

2006 2007 2008 2009

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Age matters; size, too

Internet penetration

Age, years

All cities100 000+

Moscow

Source: TNS WebIndex, March 2010

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Important note

Russian market is changing very fast.

Data in Do you CEE report are valid for January 2009; do not reflect the reality of summer 2010.

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Result #1

Despite recession, we’ve got

more people online

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They love context ads

In tough time, they come in crowds

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…and they got smarter

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…and they are slightly different

The realty segment was the most spectacular looser.

On the other hand, health and beauty gained a lot.

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Not a mourning time 2009,

billion RUR2008,

billion RURChange, %

Ad market total 204 277 -26%

TV 113.7 138.9 -18%

Radio 9.0 14.0 -36%

Print 32.6 57.6 -43%

Outdoor 27.3 45.8 -41%

Other 2.6 3.2 -19%

Internet 19.0 17.6 +8%

-Display ads 7.7 7.4* +4%

-Context ads 11.3 10.2 +11%

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2010Q1

First financial results for 2010 are even more impressive:

Display ads +16%

Context ads +42%

Total +31% (3,4 billion RUR)

Source: ACAR

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Result #2

Despite recession, we’ve got

more money in online ads (but not as much as we’d wish…)

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Online money go down the funnel

Interactive marketing requires activity from a recipient.

That’s why responsive and truly interactive ads are getting more and more popular. They are unique for the Internet (+mobile), they attract offline money.

user activity

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Recession is anything but a slowdown…

Internet is the last thing people cut from their budgets (personal or marketing)(In fact, Misha predicted it here in 2008)

Advertisers DO run online in tough time, but become much more demanding – so you better meet their expectations

New services and devices (mobile first) catch on faster than ever.

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PS. One slide of boasting

Or maybe it’s a lesson, not just boasting…

InternetCEE’08

40% -

60% -

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They say it may be a W-shaped one?

Okay, we’ll keep working!(Because we know it’s not all that bad, after all)

And dancing, of course ;)

Warsaw, yesterday ;)

Thank you!asebrant@yandex-team.ru

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