ukrainian internet market overview
TRANSCRIPT
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Ukrainian Internet
Market Review
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INTERNET PROFILE
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Steady growth of UA zone
Data source: HostMaster, 2008
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Up to 50% of sites are still business and service (portals)
oriented
Web sites profile
27%
21%
16%
6%4% 2%
2%
12%
10%
Business
Internet portals/Services
Leisure and Entertainment
E-commerce, E-shops
Tourism
Science/Education
Auto
Real Estate
Mass Media
Data source: Meta.ua catalog, 2008
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In January daily audience of Ukr.net exceeded 400.000
December 2008 January 2009
Data source: bigmir
Daily audienceActive
New
Core
Ukr.net the biggest and growing portal
Data source: bigmir
December 2008 January 2009
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INTERNET PENETRATIONAND AUDIENCE
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Internet usage 41% or up to 7 mln
Do you personally use theInternet?
Population of the Ukrainian
cities 50K+ is 16 005Kpeople(age 14-65)
6 637K Internet Users(vs. 10 032K Internet users by Bigmir-Internet on-line measurement, 2008)
All cities 50K+ (3 000 cities)
41%
59%
Internet user Do not use
Data source: GFK off-line measurement, 2008
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Internet market potential plus 12% or 1.9 mio
All cities 50K+ (3 000 cities)
41%
12%
47%
Internet user
Do not use, but are going to
Do not use and aren't going to
Optimistic forecast is 1.9
mio users growth for the
half of the year
40% (under 25) and 7%
(50+ age) are going to use
the Internet
Data source: GFK, 2008
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Up to 80% of users surf Internet several times a week
The usage frequency(all cities 50K+)
44%
33%
10%
8%5%
Once or several times a day
Several times a week
Once a week
Several times a month
Once a month or less
Data source: GFK, 2008
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Broadband Internet > 1 mio users
4,2
5
0,92 1,05
2007 2008
Household broadband penetration, % Broadband users, mln
Data source: iKS Consulting
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Internet access points & average time
49.21%
77.84%
3.98%
8.60%
7.84%
6.42%
1:39:22
2:09:53
1:29:43
1:16:14
2:09:53
1:39:22
Other
Friends/Relatives
Internet caf
School/Institute
Work
Home
Internet Access points Average time per user
Data source: Gemius, 2008
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Data source: TNS Ukraine 2008/ 2+3All people 12-65, cities 50 000+, N=10 002
PC users Internet access points
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
At home At job/ study
At some other
place Do not use
PC usage:
In
ternetusage:
Do not use
At some other place
At friends/ relatives
At Internet caf
At job/ study
At home
Among those
who do not use
PC 2% do surf
Internet
somehow!
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Mobile subscribers Internet access points
Internet access points
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
All Life:) Beeline
Mobile subscribers
Do not use
At other place
At friends/ relatives
At Internet caf
At work/ study
At home
life:) users are
most active in
Net!
Data source: TNS Ukraine 2008/ 2+3All people 12-65, cities 50 000+, N=10 002
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Internet access at home: new quality of contact
Internet access points
0
10
20
30
40
50
60
Q1'04
Q2'04
Q3'04
Q4'04
Q1'05
Q2'05
Q3'05
Q4'05
Q1'06
Q2'06
Q3'06
Q4'06
Q1'07
Q2'07
Q3'07
Q4'07
Q1'08
Q2'08
Q3'08
%
At home At work/ study At Internet caf At other place Do not use
Break point: since 2005
number of users who have
access at home exceeded
those who have access at
work/ study
Number of those
who have access athome doubled in the
last two years!
Data source: TNS Ukraine 2004-2008All people 12-65, cities 50 000+, N=10 002
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At home
1 846 350
There are ~870K of active Internet users (with access at
home AND at work) in Ukraine
At work/
study
774 380
At home AND
at work/ study
871 100
Bubble size corresponds the number of usersData source: TNS Ukraine 2008/ 2+3. All people 12-65, cities 50 000+, N=10 002
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Active Internet users are young
Age
0
2
4
6
8
10
12
14
16
18
20
12-15
16-20
21-25
26-30
31-35
36-40
41-45
46-50
51-55
56-60
61-65
%
Affinity > 140
120 > Affinity > 139
100 > Affinity > 119
Affinity < 100
Audience: Internet users at home and at work, N=493
Data source: TNS Ukraine 2008/ 2+3Base: All people 12-65, cities 50 000+, N=10 002
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Active Internet users have higher income
Monthly income per family member
0
5
10
15
20
25
30
6000+
UAH
4000-
5999UAH
2500-
3999UAH
1500-
2499UAH
900-
1499UAH
500-899
UAH
< 500
UAH
%
Affinity > 140
120 > Affinity > 139
100 > Affinity > 119
Affinity < 100
Data source: TNS Ukraine 2008/ 2+3Base: All people 12-65, cities 50 000+, N=10 002
Audience: Internet users at home and at work, N=493
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Active Internet users live in Kyiv
City size
0
5
10
15
20
25
30
35
Kyiv 500K+ 100-500K 50-100K
%
Affinity > 140
120 > Affinity > 139
100 > Affinity > 119
Affinity < 100
Data source: TNS Ukraine 2008/ 2+3Base: All people 12-65, cities 50 000+, N=10 002
Audience: Internet users at home and at work, N=493
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Daily & weekly reach & average time
Internet users number of
unique users, who have
viewed the web page more
than once a month
10 031 778 internet users(vs. 6 637K Internet Users by GFK off-line
measurement, 2008)
Weekly audience 4 801 572
24h audience 1 918 144
24h workday audience 2 163 386
24h day-off audience 1 427 661
Monthly page views 1 795 633 496
Average time spent on site 3,48 min
Average depth of site viewing 3,05 pages
Data source: Bigmir on-line measurement, 2008
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Audience age split & penetration
All cities 50K+
95%
86%
69%
51%
44%
33%
31%
5%
15%
31%
49%
56%
67%
69%
60 - 65
50 - 50
40 - 49
30 - 39
25 - 29
20 - 24
14 - 19
Do not use Use Age Users number Cities 50K+,
population
14 19 1 277 756 1 844 744
20 24 1 374 967 2 060 222
25 29 981 459 1 755 167
30 39 1 516 436 3 107 447
40 49 1 000 023 3 226 196
50 59 434 748 2 992 635
60 65 52 227 1 068 660
TOTAL: 6 637 616 16 005 070
Corresponding numbers
Data source: GFK, 2008
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Internet audience gender
57%
43%
Male Female
Data source: Gemius, 2008
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Internet audience occupation
14%
31%
13%
2%
30%
top manager
specialist
manager
worker
student
Data source: Gemius, 2008
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Income skewed to higher income
8%
26%
66%
65%
18%5%
Internet users Non users
High income
Average income
Low income
High income enough money for food,
clothes, footwear, expensive purchases. Needs
to put by or borrow to buy a car or a flat.
Any time can do any necessary purchasing.
Average income enough money for food,
necessary clothes, footwear. Needs to put by orborrow to by good suit, good cell phone,
vacuum cleaner.
Needs to put by or borrow to buy an expansive
things (TV or freezer).
Low income needs to save money on food
and to put by or borrow to buy clothes,
footwear.
Data source: GFK, 2008
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INTERNET ADVERTISING MARKET
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Internet advertising market investment dynamics
0
2
4
6
8
10
12
14
16
2003 2004 2005 2006 2007 2008 2009
$mln
Media advertising
Context advertising
Data source: net estimate, All-Ukrainian AdCoalition, 2008
Internet is supposed to be the only media with positive dynamics in 2009
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Key facts
(experts opinion)
Media peculiarities A natural multi-task media
Wide usage of web 2.0 (User Generated Content, Social Networking,
blog and video)
A very limited number of national content sites with minimal media
cover
Absence of relevant measurement makes planning of on-line
campaigns a guesswork
Adv peculiarities The only advertising market, that will grow in 2009
CPM is a leading model of payment, however CPC is going to be
more common (estimations: CPM=$ 4,3 CPC=$2)
CPM model still lets publishers to make contact forecast mistake up to
20-30%
Context advertising is the main anti-crisis on-line tool
Social networks and interaction is a trend, but needs to be purposely
planned and tracked
Appearance of Internet sales houses (FISH, TakiTak)
Two opposite ways of ads selling (market structure conflict)
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Ways of ads selling.
Selling and Buying inside one and the same business
Portal is loosingits motivation on
quality of audienceand contentimprovement
Priority on
statistic indexesimprovement byengaging not targetaudience
conflict
Interested in buyingads on its own portals
Seller
+Buyer(internet-agency 1)
Not interested inbuying ads oncompetitor portal
Buyer(internet-agency 2)
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Ways of ads selling.
Diversity of selling and Buying.
Structure makesmarket standard of
objective andeffective planningand buyingprocedures
Portals are
interested in highquality of the contentSeller(Ad Portal)
Buyer 1(internet-agency
1)
Buyer 2(internet-agency
2)
Buyer 3(internet-agency
3)
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Banners will still dominate in 2009
(expert opinion)
70%
20%
8%2%
Banner advertising
Context avertising
SEO and traficgeneration
Sponsorship
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INTERNET PLANNING TOOLS
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Quantitative indexes:
Which resources (and how often)
are browsed by Ukrainian audience
Who is our audience:Demography, preferences,
media consumption
TA behavior in the Internet:
Main services and sites,audience profile
TNS Ukraine
Bigmir.net
Gemius
Research tools
G l T d f f h t l t
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Google Trends new free-of-charge tool to
analyze Internet trends
Searches: Shows relative frequency of searches of certain words in
relative dynamics by region and period
Websites: Shows relative dynamics of pages visits by region and period
Main advantage: it is able to show data for Ukraine only split byregions
Searches: Google Trends could be the source of
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Searches: Google Trends could be the source of
insights
Google trends reflects UAH exchange rate fluctuations in 2008 and the
end of credit boom
job exchange rate credit
Data source: Google Trends
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Websites: Dynamics of major portals audience
Data source: Google Trends
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AITI Internet
All data sources: TNS, BigMir, Gemius
Cutting-edge placement AdRiver
Exclusive monitoring
All kinds of promotion: banners, richmedia, context, buzz, social networks,
video, games etc.
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Exclusive technology of banner advertising market
monitoring
Market is in the full view
Structuring of Top sitesinformation:
Banner location
Advertiser
Such system allows tomonitor exact brandadvertising on exact
banner location
Unique analysis ofactivity of:
Particular advertisers
Brand categories &sites orientation
Market trends
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Campaign realization technology
Flexible targeting possibilities
Contact frequency control
Automatic banner replacement depends on effectiveness
Retargeting in case of banner feedback
On-line access to current campaign results
Complete reports of Ad campaign, separate sites, feedback results andcontact frequency
Behavior analysis of Advertiser site users
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Thank you!