Ukrainian Internet market Overview

8/14/2019 Ukrainian Internet market Overview

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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



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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


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



Affinity < 100




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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



Affinity < 100




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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



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Internet audience gender

57%

43%

Male Female



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Internet audience occupation

14%

31%

13%

2%

30%

top manager

specialist

manager

worker

student



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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.



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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)


2)


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!

Ukrainian Internet market Overview

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