digital marketing in russia

BY POSSIBLE MOSCOW

AUGUST 2014

DIGITAL MARKETING IN RUSSIA

Digital! Digital! Digital! Digital! Digital! Digital! Digital! Digital!

!AGENDA !

01. RUNET: KEY FIGURES

02. RUNET: ECONOMY

03. RUNET: SOCIAL MEDIA

04. RUNET: MOBILE

05. DIGITAL AS A PART OF IMC

06. SMART APPROACH TO DIGITAL

!

!

!

!

THEY SAY

RUNET: KEY FIGURES

76 MILLION RUSSIANS ARE ONLINE

+7%

VS

PY

Source: FOM, Internet research, all Russia, 18+

#5 INTERNET PENETRATION SCORE IN THE WORLD

Source: FOM, Internet research, all Russia, 18+

INTERNET REACH IS NOW COMPARABLE TO TV REACH

Source: TNS WebIndex March 2014, Russia, cities 100+, 12-64

38,4%38,3%

31%

25%

Source: FOM, Internet research, all Russia, 18+

48% OF INTERNET USERS LIVE IN SMALL TOWNS & VILLAGES

!

!56,3MILLION PEOPLE ARE ONLINE EVERY DAY

OF ALL RUSSIA POPULATION 18+

!

!=48%

Source: FOM, Internet research, all Russia, 18+

+12

% V

S P

Y

Source: Yandex, Spring 2014

INTERNET ACCESS GETS CHEAPER FOR ALL REGIONS

INTERNET PRICE IS GETTING LOWER

SAINT PETERSBURG

Source: FOM, Internet research, all Russia, 18+

3,4 MM USERS

INCREASING FREQUENCY

MONTHLY REACH = WEEKLY REACH IN 1 MLN+ CITIES

NOVOSIBIRSK1 MM USERS

YEKATERINBURG

KAZAN

0,9 MM USERS

0,7 MM USERS

KEY ONLINE ACTIVITIES

Source: TNS WebIndex March 2014, Russia, cities 100+, 12-64

Contribution to time spent a month, %

Social Networks

Video resources

E-mail

Search

News

Online shops

Online Dating

Searching for goods & services

Music (listening/downloading)

10% 20% 30% 40%

2%

2%

2%

2%

2%

2%

5%

10%

36%

6,279&

6,299&

8,302&

8,538&

9,243&

13,388&

18,253&

21,239&

40,234&

62,159&

MYVI.RU&

BIGCINEMA.TV&

ZOOMBY.RU&

IVI.RU&

TVIGLE.RU&

VIMEO.COM&

RUTUBE.RU&

YANDEX&VIDEO&

MAIL.RU&

YOUTUBE.COM& 482$

305$

291$

171$

153$

111$

105$

61$

58$

57$

MOLODEJJ.TV$

YOUTUBE.COM$

IVI.RU$

SIBNET.RU$

ZOOMBY.RU$

RUTUBE.RU$

1TV.RU$

TVIGLE.RU$

SPORTBOX.RU$

SMOTRI.COM$

YOUTUBE: 62 MLN VIEWERS 5 HOURS A MONTH

UNIQUE USERS (‘000) MINUTES PER USER

Source: ComScore Video Metrics April 2014

125 MINUTES

AVERAGE SPENT ONLINE PER DAY

Source: TNS WebIndex March 2014, Russia, cities 100+, 12-64

WHAT ARE THE MOST ACTIVE AGE GROUPS?

Source: TNS WebIndex April 2014, Russia, cities 100+, 12-64

12-17 140 MINUTES][

18-24 +

135 MINUTES][

[CONSUMERS OF TODAY, AND TOMORROW]

CONSUMER CULTURE IS DEVELOPING

Source: FOM 2014

[E-COMMERCE, ONLINE BANKING & PAYMENTS]

!What things on Internet did not you try to do but

would like to try to?

!Online purchase (to buy goods, to order services)

!Internet banking

!To pay for goods with e-money

!!Job searching online

DIGITAL MOSCOW

Source: FOM, DIT 2014

[GOVERNMENT-OWNED SERVICES FOR CITIZENS]

70% of Muscovites are aware of governmental online services (comparing to 12% in 2009)

>70K visits per day to pgu.mos.ru

80% of marriage registration are made online (via governmental services website)

37% of schools turned to e-diaries

5,2M patients per month schedules a visit to a doctor using online registration service

Source: FOM, Internet research, all Russia, 18+

INTERNET PENETRATION IN RUSSIA BY 2020? !

Source: FOM, Internet research, all Russia, 18+

INTERNET PENETRATION IN RUSSIA BY 2020? !

85%

APART FROM FIGURES: HOW WE CHANGE OUR HABITS

DRIVING IN TRAFFIC

PAPER EVENT GUIDES

TICKET OFFICE

HOTEL ROOM BOOKING

HAILING A CAB

ONLINE DATING

RUNET: ECONOMY

Source: Runet economy Research 2013 (RAEC, HSE),

1 TRNRUNET SALES VOLUME IN 2013 1,

7%

OF

GD

P

ESTIMATED GROWTH OF RUNET ECONOMY BY 2018

!

!15-20%

A Y

EA

R

Source: FOM, Internet research, all Russia, 18+

520BILLION RUR [RUNET E-COMMERCE SALES VOLUME IN 2013]

Source: Data Insight 2013

+28

% V

S P

Y

30MILLION ONLINE SHOPPERS IN 2013!

Source: Data Insight 2013

+3

0%

VS

PY

Source: AKAR 2014

71,7BILLION RUR RUNET AD SPENDINGS

BILLION RUR [ MEDIA AD]

!20,1

+12

% V

S P

Y

+27%

VS

PY

!51,6BILLION RUR [ CONTEXT AD] +

34

% V

S P

Y

THEY SAY

RUNET: SOCIAL MEDIA

79% OF USERS HAVE AN ACCOUNT ON SOCIAL NETWORKS

Source: FOM, Internet research, all Russia, 18+

OF THEM COMMUNICATE VIA SOCIAL NETWORKS DURIN LAST MONTH

!

!60%#

1 O

NL

INE

AC

TIV

ITY

#1

WA

Y O

F O

NL

INE

C

OM

MU

NIC

AT

ION

25% OF RUSSIAN FEMALE USERS ARE OPEN TO TALK TO BRANDS & LEARN MORE ABOUT THEM ON SOCIAL MEDIA

RUSSIA

USA

CHINA

BRAZIL

INDIA

UKRAINE

POLAND

0% 10% 20% 30% 40%

11%

10%

29%

34%

27%

7%

9%

14%

15%

29%

31%

30%

11%

25%

FEMALEMALE

HOW OPEN ARE YOU TO BRANDS ON SOCIAL MEDIA?

Source: TNS Digital Life Global Research, 2014

10,4 HO

UR

S

PE

R M

ON

TH

AN AVERAGE RUSSIAN USER SPENDS IN SOCIAL NETWORKS

!

H O WSOCIAL

0 0,225 0,45 0,675 0,9

8%

4%

5%

16%

32%

54%

85% COMMUNITY

TARGETED SOCIAL ADS

SEEDING OF VIDEOs

SOCIAL LISTENING

REPUTATION MANAGEMENT

SEEDING (other)

OTHERNETWORKSU

SE

B R A N D S

VK

FB

TWI

OK

Other0 0,225 0,45 0,675 0,9

9%

14%

15%

36%

89%

WHERE? WHY?

COMMUNITIES: 85% OF BRANDS PRESENCE ON SM

Loyalty

Awareness

Sales

Traffic

Other0 0,225 0,45 0,675 0,9

15%

21%

39%

64%

86%

KPIs

# of fans

ER

Intuitive

Clicks

Other0 0,175 0,35 0,525 0,7

5%

10%

29%

53%

69%

13%

58%

29%‘I have the biggest community among my competitors’

‘I have high ER’

‘I like our content’

’I don’t have traffic to my site’

‘It doesn’t drive sales’

‘I don’t feel the results’

SO ARE YOU SATISFIED?

KEY RUSSIAN SOCIAL NETWORKS [FIGURES]

51,7 mln UU !

Affinity M - 99%Affinity W - 101%

40,3 mln UU

Affinity M - 93%Affinity W - 107%

~12 mln UU

KEY RUSSIAN SOCIAL NETWORKS [OVERLAPPING]

BUT…

AFFINITY: DEMOGRAPHY

AFFINITY: OCCUPATION

BUT NOT ONLY 3 NETWORKS

A FIGHT FOR ‘LIKE’

250+↑ 10↓

BRANDS THAT WANT TO BE ‘LIKED’

BRANDS THAT WILL BE ‘LIKED’

BRAND PRESENCE ON SOCIAL NETWORKS

IS NOT ONLY ABOUT B R A N D

COMMUNITIES

LISTENING

REACTION

ACTIVITY

PLATFORM

RESOURCES

BE

NE

FIT

S

OPPORTUNITIES

LISTENING REACTION ACTIVITY PLATFORM

Work with negative

Work with brand ambassadors

Proactive involvement

Work with opinion leaders

Contest

Entertainment

Education

Account

Community

Platform

LISTENING REACTION ACTIVITY PLATFORM

Work with negative

Work with brand ambassadors

Proactive involvement

Work with opinion leaders

Contest

Entertainment

Education

Account

Community

Platform

WHAT TO CHOOSE TO WORK WITH? !

SET YOUR BUSINESS GOALS FIRST

1. WHAT’S YOUR DESTINATION POINT?

4. MOVE ON!

5. KEEP THE DIRECTION!

6. ARRIVE TO DESTINATION POINT WITHOUT LOSING YOUR STUFF!

2. WHERE ARE YOU [AND YOUR COMPETITORS]?

3. GET THE DIRECTION!

7. UNDERSTAND NEXT STEPS!

HOW CAN YOUR BUSINESS GOAL BE ACHIEVED?

A

B

WE NEED TO SET UP A VK COMMUNITY!

WE NEED BRAND FB PAGE AS BIG AS GLOBAL ONE! KPI: 100K FANS BY EOY

OUR BRAND BACKGROUND IS… !SO OUR TASKS ARE THE FOLLOWING…

1. WHAT’S YOUR DESTINATION POINT?

B

SALES1

LOYALTY2

CUSTOMER SUPPORT3

4 IMAGE

COST OPTIMISATION5

RESEARCH6

HUMAN RESOURCES7

PUBLIC RELATIONS8

1. WHAT’S YOUR DESTINATION POINT?

B

WHERE ARE YOUR

COMPETITORS?

WHAT’S USER JOURNEY?

!+SWOT ANALYSIS

WHAT DOYOU HAVE?

Y

X

BRAND

2. WHERE ARE YOU [AND YOUR COMPETITORS]?

A

2. WHERE ARE YOU [AND YOUR COMPETITORS]?

BRAND CHANNELS

1.1. CONTENT

1. PLATFORM2. SOCIAL

MEDIA

3. ONLINE

2.1. Other communities of the brand

3.1. Website3.2. Special projects

4. OFFLINE

3.3. Other digital

channels

3.4. CRM

1.2. APP 1.3. Events

1.5. Announcement

in relevant communities

1.6. Announcement

via opinion leaders

1.4. Social ads

A

OWNED CHANNELS ANNOUNCEMENT

COMPLAINTS MANAGEMENT

CONTENT STRATEGY DEVELOPMENT: !interesting for TA, differentiate us from competitors, solve key brand problems

OPEN OWNED CHANNELS ON RELEVANT SM

3. GET THE DIRECTION!B

A

Monthly organic community growth +5%

OPEN OWNED CHANNELS ON RELEVANT SM

OWNED CHANNELS

ANNOUNCEMENT

CONTENT STRATEGY

DEVELOPMENT

COMPLAINTS MANAGEMENT

Monthly content coverage up 1MM users by the end of the 2nd year thanks to sharings

Feedback to all complaints & reviews given by users on SM. Negative mentionings/ reviews on owned channels reduction up to 10% to total

Initial fans recruitment via paid ad

Free traffic conversion via existing fans

Negative mentionings reduction on external resources by 10% vs PY

3. GET THE DIRECTION!B

FANBASE GROWTH

Dynamics

CONTENT COVERAGE INCREASE

CUSTOMER SUPPORT

EFFICIENCY

USEFUL INSIGHTS

4. MOVE ON! 5. KEEP THE DIRECTION!

Fanbase quality

Traffic sources

Engagement level

Engaged users & active core

Sharability

Negative feedback

Content themes efficiency

Response rate

Community score

For content development

For service improvement

Competitors insights

B

4. MOVE ON! 5. KEEP THE DIRECTION!

0

15

30

45

60

0

2

4

6

8

Cats PR release Naked princesses Tro-lo-lo Special offers§

# of content Total interactions Sharability Negative feedback

0

20

40

2

30

652

19

8

12

42

52

25

50

5

8

6

55

30

2

40

20

0

8

19

25 6

50

25

52

42

12

Please note: all figures on the graph are fiction.

B

6. ARRIVE TO DESTINATION POINT WITHOUT LOSING YOUR STUFF! 7. UNDERSTAND NEXT STEPS!

1 900

8 000

11 500

TWI 13 189

FB 39 240

VK 38 047

0

0,085

0,17

0,255

0,34

Апрель Май

21%

34%

SENTIMENT

INSIGHTS

1. Employees on SM

2. Areas for improvements

3. News hook

4. Offline PR opportunities

B

7. UNDERSTAND NEXT STEPS!

SALES1

LOYALTY2

CUSTOMER SUPPORT3

4 IMAGE

COST OPTIMISATION5

RESEARCH6

HUMAN RESOURCES7

PUBLIC RELATIONS7

B

THEY SAY

THEY SAY

RAPID CHANGES TOOTHBRUSH OR PHONE?

RAPID CHANGES

27,3 MILLION RUSSIANS ARE ON MOBILE

+3

7%

VS

PY

Source: TNS WebIndex March 2014, Russia, cities 100+, 12-64

1,4MlnUSERS ACCESS

INTERNET ONLY VIA MOBILE DEVICES

40%OF ALL RUNET TRAFFIC IS M

OB

ILE

T

RA

FF

IC

Source: LiveInternet.ru, Summer 2014

MOBILE PLATFORM IS ANDROID

Source: LiveInternet, Yandex Metrica, Spring 2014

60

% O

F M

OB

ILE

T

RA

FF

IC

Source: LiveInternet, Yandex Metrica, Spring 2014

Runet mobile traffic by OS type, July 2011-Feb 2014

#1

THEY SAY

2000 RURAPPROXIMATED STARTING PRICE OF AN ANDROID SMARTPHONE

MOBILE INTERNET ACCESS GETS CHEAPERUSERS NO LONGER CARE ABOUT CALCULATING TRAFFIC

Source: Yandex, Spring 2014

>50%USERS PAY FOR MOBILE INTERNET EVERY MONTH

~110SCREEN

UNLOCKS EVERY DAY

EVERY 8 MINUTES WE DO IT

Source: J’son & Partners data, December 2013

MORE TIME ON MOBILE THAN ON ANY OTHER COMMUNICATION CHANNEL [INCLUDING PC]

Source: InMobi, “Global Mobile Media Consumption”conducted by Decision Fuel & On Device Research, Feb 2013

ALWAYS ON

RUSSIA IS #4 IN APPS DOWNLOADING IN THE WORLD

>20 MOBILE APPLICATIONS PER USER

Source: FOM, Internet research, all Russia, 18+

WHAT’S IMPORTANT FOR THE BRAND?

Mobile video, Mobile display

Mobile search

Social media, Apps Specials, Mobile games

Mobile sites & Landings, search

Mobile Apps, Social Media

AWARENESS

FAMILIARITY

CONSIDERATION

PURCHASE

LOYALTY

DIGITAL AS A PART OF IMC

BUSINESS & MARKETING OBJECTIVES

!!COMMUNICATION

IDEA/ BIG IDEA

TV OOH

PRINT

PR

TRADE

DIGITAL

DIGITAL AS A PART OF IMC: SCENARIO 1

INSIGHT BASED (CONSUMER, CATEGORY,

CULTURAL, PRODUCT, ETC.)

COMMUNICATION CHANNELS

KEY MESSAGE DELIVERY

DIGITAL

DIGITAL AS A PART OF IMC: SCENARIO 2

INSIGHT BASED (CONSUMER, CATEGORY,

CULTURAL, PRODUCT, ETC.)

DIGITAL ACTIVATION

IDEA

!!COMMUNICATION

IDEA/ BIG IDEA

COMMUNICATION CHANNELS

KEY MESSAGE DELIVERY

TV OOH

PRINT

PR

TRADE

BUSINESS & MARKETING OBJECTIVES

DIGITAL

DIGITAL AS A PART OF IMC: SCENARIO 3

INSIGHT BASED (CONSUMER, CATEGORY,

CULTURAL, PRODUCT, ETC.)

KEY MESSAGE DELIVERY

DIGITAL ACTIVATION

IDEA

!!COMMUNICATION

IDEA/ BIG IDEA

COMMUNICATION CHANNELS

DIGITAL BIG IDEA

TV OOH

PRINT

PR

TRADE

BUSINESS & MARKETING OBJECTIVES

THEY SAY

!

FOR ACHIEVABLE GOALS

BALANCING BETWEEN SALES & BRAND EQUITY

DIGITAL IS THE MOST FLEXIBLE TOOL TO LAUNCH & EXECUTE LOCAL CAMPAIGNS

THEY SAY

ADVANTAGES OF DIGITAL COMMUNICATION

• EASIER TO IDENTIFY TARGET AUDIENCE: WE CAN GET A LOT OF INFORMATION ABOUT THEM ONLINE !

• MASS & NICHE - DEPENDING ON THE TASKS !

• IMMEDIATE FEEDBACK !

• ON-GOING MANAGEMENT !

• NEW INSIGHTFUL METRICS TO MEASURE !

• EASY TO SHARE, ETC.

THEY SAY

!

S M A R T

SETTING DIGITAL GOALS

FOR SPECIFIC

FOR MEASURABLE

FOR ACHIEVABLE

FOR RELEVANT

FOR TARGETED

!

S FOR SPECIFIC GOALS

AWARENESS

FAMILIARITY

CONSIDERATION

PURCHASE

LOYALTY

New product launch: display ad, SEM

Product news/ launch: display

E-commerce, digital promo campaigns

Digital CRM, friending, fan base communication & support

SEM, Partnership

All levels of purchase funnel are covered

!

M FOR MEASURABLE GOALS

To set realistic measurable digital parameters/ KPIs [both quantitative & qualitative] !!To use powerful digital analytics tools to measure results [and to get insights]

THEY SAY

!

EVERYTHING IS ILLUMINATED: insightful metrics on internal & external platforms !

!

WHAT TO MEASURE? KEY METRICS WHAT

TOOLS?

Web & mobile platforms performance: !Website & apps traffic parameters !Ad campaign results: display ad, SEO, context !E-commerce !User’s behaviour !UX/UI, etc.

WEB ANALYTICSWHAT PLATFORMS?

OWNED/ PAID: !Websites !Web pages !Social media apps !Mobile apps

Traffic: visits & unique visitors, !Traffic sources: referral websites, search traffic, direct traffic !Traffic by type of devices, etc. !Purchase funnel !User’s actions: time spent on site/page/app, pages/screens per visit, bounce rate !Navigation & exploration

Google Analytics !Yandex Metrics !Omniture Website Catalyst !Fabric Worldwide !Flurry (mobile), etc.

!

KEY METRICS WHAT TOOLS?

# subscribers/ likers/ followers !# of active subscribers/ likers/ followers !!Users’ activity & engagement parameters (based on likes, comments, shares) !Sources of traffic & subscriptions

SOCIAL MEDIA ANALYTICSWHAT PLATFORMS?OWNED/ EARNED + OTHER BRANDS

Social networks internal statistics !Socialbakers (Facebook, VK, YouTube, Twitter) !Nippel (VK), etc.

Social media pages/ channels: !VK !Facebook !OK !YouTube channel !Twitter !Instagram

Social media pages performance: !Users’ quantity !Users’ activity !Ad campaign tracking

WHAT TO MEASURE?

!

KEY METRICS WHAT TOOLS?

Brand/ product mentionings made by users online

WHAT PLATFORMS?EXTERNAL + OWNED/ EARNED

Number of mentioning !Sources of mentionings !Tonality !Most active users

!Youscan !IQ buzz !Brandspotter !Wobot, etc !

Social networks (VK, OK, Fb, YouTube, Twitter) !Blogs !Forums

SOCIAL MEDIA MONITORINGWHAT TO MEASURE?

!

A FOR ACHIEVABLE GOALS

PLANNING TERM

(SHORT/ MEDIUM/ LONG)

AMBITIONSAMBITIONS

!

R FOR RELEVANT GOALS

!

T FOR TARGETED GOALS

• Who is a message supposed to reach? !

• Are they digital? !

• Where are they in digital? !

• What do they do online? !

• Where? (key resources/ platforms) !

• Are they mobile? !

• What are the most important demographic, psychographic & behavioural facts (lifestyle highlights, values, rituals, state of mind, etc.)?

WHO IS OUR TARGET [IN DIGITAL]?

!

DIGITAL AS A SOURCE OF TARGET INSIGHTS

Brands can learn about TA to work on communication ideas & to make the right decisions

Internet makes it easy to identify target audiences, since consumers have segmented themselves according to their behaviour & actions

THEY SAY

A FULLY-FEATURED BRAND PLATFORM

DIGITAL COMMUNICATION COVERS ALL TYPES OF BRAND PLATFORMS

COMMUNICATION PLATFORM

MEDIA PLATFORM

SERVICE PLATFORM

The essence of long-term communication: It is based on communication idea/ big idea [for digital]

Audience accumulation: website, social media, e-mail base [everything owned & on-going]

Communications beyond advertising: social listening, consumers online support service, etc.

!

THANK YOU