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Internet
in Russia. 2014
> Connecting Consumers and Brands

All right reserved Buzzfactory. 2014
BuzzFactory is a social media and digital PR consulting agency helping leading
international brands in implementing their digital strategies in Russia.

Digital Strategies /
Audit and Consulting

Social Media
Management

Blog Marketing /
Digital PR

Visit our website: www.buzzfactory.ru

E-Reputation
Management

All right reserved Buzzfactory. 2014
03

Buzzfactory. Leading online reputation experts

7

EXPERTS

2010
SINCE

1 blogger

2 account manager
1 digital PR specialist
2 ORM experts
1 Strategic executive

International Expertise
High performance formats

110

BLOG MARKETING
CAMPAIGNS

BUZZFACTORY IN NUMBERS
MENTIONS ANALYZED IN 2013

250.000
PUBLISHERS

Exclusive offers

550 INFLUENCERS
All right reserved Buzzfactory. 2014
04

Presentation agenda

INTERNET
DEMOGRAPHIC

SOCIAL
NETWORKS

MOBILE
INTERNET

ELECTRONIC
COMMERCE

Russia has the largest

Russian are social media

Mobile internet

Beside obvious bottle

population of internet

hardcore users thanks to

consumption is booming

necks, E-commerce is

users in Europe.

numerous social networks.

especially in regions.

slowly approaching
European level.

All right reserved Buzzfactory. 2014
Internet in Russia - Demographics

All right reserved Buzzfactory. 2014
63,5 Millions
Internet users in Russia
50.100.000

Russians
Access the Internet
Every Day

All right reserved Buzzfactory. 2014
07

Year to year evolution

DEC
2012

DEC
2013

NUMBER OF WEB USERS
Web users:Ц 939 061
55

Web users: 63 486 797

13,49%

AVERAGE NUMBER OF ANNUAL WEB VISITS
Website: 178,40 visits

Website: 233,19 visits

AVERAGE USE PER DAY
Website: 09 min 51 sec

Website: 09 min 23 sec

All right reserved Buzzfactory. 2014
08

Internet penetration rate

% of Internet penetration: international comparisons

All right reserved Buzzfactory. 2014
09

Internet population repartition per region

Growing Internet penetration by regions (2010 – 2012)

All right reserved Buzzfactory. 2014
10

Usage rates by device

Russian Federation

June 2013

All right reserved Buzzfactory. 2014
Internet in Russia – Social Networks

All right reserved Buzzfactory. 2014
13

Monthly active users in Dec 2013 (millions)

60
50
40

49 M.
37 M.

30
20
10
0

14 M.
8 M.

5 M.
Dec 2013

All right reserved Buzzfactory. 2014
14

Vkontakte vs. odnoklassniki (Thousands)
Odnoklassniki
Vkontakte

4909,6

Odnoklassniki

Vkontakte *Audience per day

All right reserved Buzzfactory. 2014
15

One user across multiple platforms

By 2015…
45% of Russian
population will be
active on at least
one social network

All right reserved Buzzfactory. 2014
16

Social reach or engagement

All right reserved Buzzfactory. 2014
17

Crisis on Social Media?

- Youngster are leaving Facebook
- It is harder to get new fans
- Brand publications are hardly visible
- New network are challenging old one
- Vkontakte is deleting pirate content
- Average time spent on SM decrease
- SM are becoming too commercial

All right reserved Buzzfactory. 2014
Internet in Russia – Mobile

All right reserved Buzzfactory. 2014
19

Mobile internet penetration

All right reserved Buzzfactory. 2014
20

Smartphone vs Tablets sales forecast

All right reserved Buzzfactory. 2014
21

Russia mobile internet users

Mobile Internet user ID
Education

Age

Sex

First-level
High-school
Post-secondary
Higher education

Male

Female

Region

City population
CFD
SFD
NWF
D
FEF
D
NFD

Moscow

UFD

250 -500 ths.

PFD
NCF
D

St.Petersburg
~ 1 mil. people
500 ths.- 1 mil.

100 - 250 ths.
< 100 ths.

Consumers of mobile Internet generally young (2/3 – younger then 35 years old), highly
educated, and 55% of them live in small cities.
All right reserved Buzzfactory. 2014
22

Frequency of mobile internet use

84% of respondents use mobile internet not less than once per week. Consumers with 2 or
more mobile devices spent about half their time online using mobile Internet.

Frequency of use mobile Internet
Frequency of use mobile Internet
Frequency of use mobile Internet

Frequency of mobile internet use

Period of mobile internet use
Correlation time of using Internet
Tablets
owner

Smartphones
owner
Winter
2013

Daily

2-4 times in week

Once time in week

One time per month and less often

Don’t use
Winter 2013

Spring
2013

Spring 2013

More than 1 time
per week

Winter 2013

Spring 2013

Less than 1 time
per week

All right reserved Buzzfactory. 2014
23

Device preference throughout the day

Most Weekday Tablet Usage Occurs Between 8pm and 9pm

All right reserved Buzzfactory. 2014
Internet in Russia – E-Commerce

All right reserved Buzzfactory. 2014
25

Forecast value of Russian internet retail
Forecast value Russian Internet-retail 2013-2025
(in bln. US Dollars)

Long-term
> 100 bln.
US Dollars

2020
50-70 bln.
US Dollars

2010
8 bln. US
Dollars

2013
16,5 bln.
US Dollars

All right reserved Buzzfactory. 2014
26

E-commerce market growth vs market size (2013)

Internet Retail Market Size and Growth
(in bln. US Dollars)

USA

China

UK

Japan

Germany

Brazil

Russia

All right reserved Buzzfactory. 2014
27

Penetration rate – international comparison (2013)

All right reserved Buzzfactory. 2014
28

Growth of internet retailers 2007 -2013
Russian Retail Websites with at least Two Order per Day

All right reserved Buzzfactory. 2014
29

E-Commerce Bottlenecks

- Control, quality and cost of logistics
- Online payments
- Customer acquisition
- Customer retention
- Counterfeit and grey market
- Finding skilled and experienced staff

All right reserved Buzzfactory. 2014
Contacts

All right reserved Buzzfactory. 2014
30

For any questions, please contact me:

For any questions please contact me:

Thierry Cellerin
E.: tcellerin@buzzfactory.ru
M.: +7 985 44 22 544
W.: www.buzzfactory.ru
F.: facebook.com/BuzzfactoryRussia

All right reserved Buzzfactory. 2014

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Internet in Russia. 2014 [statistics & trends]

  • 1. Internet in Russia. 2014 > Connecting Consumers and Brands All right reserved Buzzfactory. 2014
  • 2. BuzzFactory is a social media and digital PR consulting agency helping leading international brands in implementing their digital strategies in Russia. Digital Strategies / Audit and Consulting Social Media Management Blog Marketing / Digital PR Visit our website: www.buzzfactory.ru E-Reputation Management All right reserved Buzzfactory. 2014
  • 3. 03 Buzzfactory. Leading online reputation experts 7 EXPERTS 2010 SINCE 1 blogger 2 account manager 1 digital PR specialist 2 ORM experts 1 Strategic executive International Expertise High performance formats 110 BLOG MARKETING CAMPAIGNS BUZZFACTORY IN NUMBERS MENTIONS ANALYZED IN 2013 250.000 PUBLISHERS Exclusive offers 550 INFLUENCERS All right reserved Buzzfactory. 2014
  • 4. 04 Presentation agenda INTERNET DEMOGRAPHIC SOCIAL NETWORKS MOBILE INTERNET ELECTRONIC COMMERCE Russia has the largest Russian are social media Mobile internet Beside obvious bottle population of internet hardcore users thanks to consumption is booming necks, E-commerce is users in Europe. numerous social networks. especially in regions. slowly approaching European level. All right reserved Buzzfactory. 2014
  • 5. Internet in Russia - Demographics All right reserved Buzzfactory. 2014
  • 6. 63,5 Millions Internet users in Russia 50.100.000 Russians Access the Internet Every Day All right reserved Buzzfactory. 2014
  • 7. 07 Year to year evolution DEC 2012 DEC 2013 NUMBER OF WEB USERS Web users:Ц 939 061 55 Web users: 63 486 797 13,49% AVERAGE NUMBER OF ANNUAL WEB VISITS Website: 178,40 visits Website: 233,19 visits AVERAGE USE PER DAY Website: 09 min 51 sec Website: 09 min 23 sec All right reserved Buzzfactory. 2014
  • 8. 08 Internet penetration rate % of Internet penetration: international comparisons All right reserved Buzzfactory. 2014
  • 9. 09 Internet population repartition per region Growing Internet penetration by regions (2010 – 2012) All right reserved Buzzfactory. 2014
  • 10. 10 Usage rates by device Russian Federation June 2013 All right reserved Buzzfactory. 2014
  • 11. Internet in Russia – Social Networks All right reserved Buzzfactory. 2014
  • 12. 13 Monthly active users in Dec 2013 (millions) 60 50 40 49 M. 37 M. 30 20 10 0 14 M. 8 M. 5 M. Dec 2013 All right reserved Buzzfactory. 2014
  • 13. 14 Vkontakte vs. odnoklassniki (Thousands) Odnoklassniki Vkontakte 4909,6 Odnoklassniki Vkontakte *Audience per day All right reserved Buzzfactory. 2014
  • 14. 15 One user across multiple platforms By 2015… 45% of Russian population will be active on at least one social network All right reserved Buzzfactory. 2014
  • 15. 16 Social reach or engagement All right reserved Buzzfactory. 2014
  • 16. 17 Crisis on Social Media? - Youngster are leaving Facebook - It is harder to get new fans - Brand publications are hardly visible - New network are challenging old one - Vkontakte is deleting pirate content - Average time spent on SM decrease - SM are becoming too commercial All right reserved Buzzfactory. 2014
  • 17. Internet in Russia – Mobile All right reserved Buzzfactory. 2014
  • 18. 19 Mobile internet penetration All right reserved Buzzfactory. 2014
  • 19. 20 Smartphone vs Tablets sales forecast All right reserved Buzzfactory. 2014
  • 20. 21 Russia mobile internet users Mobile Internet user ID Education Age Sex First-level High-school Post-secondary Higher education Male Female Region City population CFD SFD NWF D FEF D NFD Moscow UFD 250 -500 ths. PFD NCF D St.Petersburg ~ 1 mil. people 500 ths.- 1 mil. 100 - 250 ths. < 100 ths. Consumers of mobile Internet generally young (2/3 – younger then 35 years old), highly educated, and 55% of them live in small cities. All right reserved Buzzfactory. 2014
  • 21. 22 Frequency of mobile internet use 84% of respondents use mobile internet not less than once per week. Consumers with 2 or more mobile devices spent about half their time online using mobile Internet. Frequency of use mobile Internet Frequency of use mobile Internet Frequency of use mobile Internet Frequency of mobile internet use Period of mobile internet use Correlation time of using Internet Tablets owner Smartphones owner Winter 2013 Daily 2-4 times in week Once time in week One time per month and less often Don’t use Winter 2013 Spring 2013 Spring 2013 More than 1 time per week Winter 2013 Spring 2013 Less than 1 time per week All right reserved Buzzfactory. 2014
  • 22. 23 Device preference throughout the day Most Weekday Tablet Usage Occurs Between 8pm and 9pm All right reserved Buzzfactory. 2014
  • 23. Internet in Russia – E-Commerce All right reserved Buzzfactory. 2014
  • 24. 25 Forecast value of Russian internet retail Forecast value Russian Internet-retail 2013-2025 (in bln. US Dollars) Long-term > 100 bln. US Dollars 2020 50-70 bln. US Dollars 2010 8 bln. US Dollars 2013 16,5 bln. US Dollars All right reserved Buzzfactory. 2014
  • 25. 26 E-commerce market growth vs market size (2013) Internet Retail Market Size and Growth (in bln. US Dollars) USA China UK Japan Germany Brazil Russia All right reserved Buzzfactory. 2014
  • 26. 27 Penetration rate – international comparison (2013) All right reserved Buzzfactory. 2014
  • 27. 28 Growth of internet retailers 2007 -2013 Russian Retail Websites with at least Two Order per Day All right reserved Buzzfactory. 2014
  • 28. 29 E-Commerce Bottlenecks - Control, quality and cost of logistics - Online payments - Customer acquisition - Customer retention - Counterfeit and grey market - Finding skilled and experienced staff All right reserved Buzzfactory. 2014
  • 29. Contacts All right reserved Buzzfactory. 2014
  • 30. 30 For any questions, please contact me: For any questions please contact me: Thierry Cellerin E.: tcellerin@buzzfactory.ru M.: +7 985 44 22 544 W.: www.buzzfactory.ru F.: facebook.com/BuzzfactoryRussia All right reserved Buzzfactory. 2014