3. Hermes NexTec
– e-commerce projects development for clients: platform,
logistics, payments, digital marketing, client support services, etc.
• Hermes NexTec countries of operation: the EU, USA, China, Brazil, Russia.
– Launching e-commerce projects for global
brands in the Russian Internet.
• The unique e-commerce experience of Otto Group & Hermes.
5. Content
• Internet-addicted
• No more growth of Internet audience?
• Internet audience growth: new paradigm
• Unknown Internet users: who are they?
• Children of Internet Age
• Elderly in Internet
• Internet speed measurement: megabytes vs. megabits
• Russia’s broadband connection: here and there
• Mobile Internet: might be better
• Russia: more Internet devices than residents
6. Monthly, Weekly, Daily Audience
• Through the last 6 years
the difference between
daily, weekly and monthly
Internet audience has
almost faded away
53
63
66
Daily Internet Audience
Weekly Internet Audience
Monthly Internet Audience
mln, 2014 year
Source: TNS, FOM
7. Caught in Web
THROUGH SOME YEARS THE INTERNET HAS BECOME THE DAILY
LIFE PHENOMENON, IT’S NOT LONGER AN EPISODIC ONE
IF SOMEONE USES THE INTERNET, HE DOES IT EVERY DAY. 80% OF
THE INTERNET AUDIENCE DO IT DAILY.
8. Russia’s Internet Audience: No Growth Any More?
• FOM and TNS show the same picture:
there is no growth of Internet audience
in Russia through the last year (Winter
2013 – Winter 2014)
• This phenomenon is typical for Russia
in general and for major cities in
particular.
Source: FOM, TNS
9. That Will Do
OBVIOUSLY THE PREVIOUS GROWTH DRIVERS OF INTERNET
AUDIENCE RUN DRY
CITIES ARE ‘FED UP’ WITH THE INTERNET. NOW THE GROWTH IN
QUALITY RATHER THAN IN VOLUMES IS POSSIBLE HERE
10. Data Sources & Measurement Specifics
• TNS Web Index – panel study. Cities with population 100k +, age 12-64.
Selection = 20k participants*
• FOM – representational survey. Population under research – Russians,
age 18+. Selection = 30k persons**
http://www.tns-global.ru/services/media/media-audience/internet/description/
http://runet.fom.ru/
*
Children
Youngsters
Rural population
Aged
Small town residents
**
11. Growth Drivers
GROWTH POTENTIAL: COUNTRYMEN AND SMALL TOWNS
RESIDENTS, KIDS AND YOUNGSTERS, AGED PEOPLE
THE CATEGORIES MENTIONED ABOVE ARE NOT WELL-STUDIED
WHILE THEIR VOLUME AND INTERNET PENETRATION GROWTH
RATE ARE SUBSTANTIAL
13. Difficult and Not Interesting Yet
• Kids (3-12), aged people (64+) and countrymen are not attractive for the advertisers in
the Internet yet.
• These population categories are highly specific and difficult to study.
14. One Doesn’t See Them
THESE AUDIENCE SEGMENTS ARE DIFFICULT TO SURVEY, BUT
IMPOSSIBLE TO IGNORE
NEARLY 20 MLN OF THE INTERNET USERS ARE NOT TAKEN INTO
ACCOUNT IN STANDARD SURVEYS
15. «Invisible Users» of the Internet
Kids 3-12 yo 13 mln 5 mln use the
Internet
Countrymen 37 mln 13 mln use the
Internet
Aged 64+ 19 mln 4 mln use the
Internet
Source: Rosstat, Hermes NexTec Russia, experts estimates, TNS, FOM
16. Kids in the Internet
The Internet penetration, kids & youngsters 0-15 yo, Russia, 2013, %
• In the early childhood (up to 6 yo) not more than 10% of kids use the Internet
• The breakdown occurs during the growing age when the share of teenagers using the
Internet sharply increases – form 35% up to 72%
• According to TNS for cities with population 100 000+ the share of the Internet users among
12-17 yo is 98%
Source: Hermes NexTec Russia, eMarketer, TNS, experts esimates
yo yo yo yo yo
17. Children as the Internet Future
CHILDREN 7 YEARS+ BECOME THE MAIN LONG-TERM DRIVER OF
THE INTERNET AUDIENCE GROWTH
OBVIOUSLY THE AGE OF INTERNET USAGE FOR KIDS STEADILY
DECREASES. THERE ARE 5 MLN CHILDREN (3-12 YO) IN RUSSIA
WHO ALREADY USE THE INTERNET
18. Internet for 64 yo+
• A share of the Internet users for female and male Russia’s population among all age
categories is quotable. Though within the category 64 yo+ gender differences are
significant: only 12% women and above 28% men are the Internet users.
Source: TNS
19. Internet for Aged
AGED PEOPLE CATEGORY IS THE LESS ACTIVE PART OF THE
INTERNET AUDIENCE, BUT THERE IS A POTENTIAL
THERE ARE 19 MLN PEOPLE 64YO AND ABOVE, 4 MLN OF THEM –
ARE ALREADY INTERNET USERS. YOUNGER PEOPLE (USUALLY
CHILDREN AND GRANDCHILDREN) HELP THE AGED TO GET FEEL
OF THE INTERNET
21. Measuring the Internet Speed
MEGABYTE DIFFERS FROM MEGABIT EIGHTFOLD
THE TYPICAL MISTAKE IS TO THINK THE INTERNET SPEED IS
MEASURED IN MEGABYTES PER SECOND
22. Internet Speed: Megabytes vs. Megabits
• 1 byte = 8 bits. It means if the announced Internet speed is 10 Mbps then
the data transferring speed is 1,25 megabyte per second.
• Thus the file of 1 Gb size can be downloaded in 13,7 minutes.
23. Broadband Internet Connection
• The average broadband Internet speed in Russia is quite comparable to the leading
European countries – Germany, France, UK. In absolute terms it is 21,6 Mbps
• The price of 1 Mbps decreased by 28% in a year and now equals $1,05. The Internet price
in Russia is extremely reasonable – the 6th place in the world (among 100 countries
surveyed).
Mbps
Russia 21,6
Germany 25,8
Spain 20,3
Italy 8
Sweden 41,9
UK 24,5
France 26,9
Ukraine 20,2
Poland 19,3
Hungary 24,6
Austria 19,8
Nerherlands 40,1
Czech Rep. 24,6
Source: NetIndex
24. Fast Internet
RUSSIA HOLDS THE 34TH POSITION AMONG 189 COUNTRIES BY
BROADBAND INTERNET SPEED
THROUGH THE LAST YEAR (MARCH 2013 – MARCH 2014) THE
AVERAGE BROADBAND INTERNET SPEED IN RUSSIA INCREASED
BY ALMOST 18%
25. Mobile Internet: Could Be Better
• The average speed of the mobile Internet in Russia in absolute terms
reaches 5,5 Мbps
• In a global ranking of the mobile Internet speed Russia holds the 59th place
among 105 countries
Mbps - mobile
Russia 5,5
Germany 9,9
Spain 9,9
Italy 6,9
Sweden 13
France 15
Poland 6,8
Source: NetIndex
26. Mobile Internet
RUSSIA HOLDS THE 59TH PLACE IN A GLOBAL RANKING OF THE
MOBILE INTERNET SPEED AMONG 105 COUNTRIES
THROUGH THE LAST YEAR (MARCH 2013 – MARCH 2014) THE
AVERAGE SPEED OF THE MOBILE INTERNET INCREASED BY 2,8
TIMES
27. Internet Devices in Russia and Across the Globe
3,6
5,7
3,1
6,3
The number of the Internet devices per 1 household, pcs.
Russia
USA
UK
France
Source: Kaspersky Security Network, Ofcom, Gfk, NDP
28. The Internet in Devices
THERE ARE ABOUT 150 MLN DEVICES WITH THE INTERNET
ACCESS IN RUSSIA
AT THE SAME TIME JUST 1 MLN RUSSIANS SURF THE INTERNET
WITH THE HELP OF MOBILE DEVICES ONLY
29. Head of Internet Marketing Oleg Zhukov
Oleg.Zhukov@hermes-europe.de
Phone: +7 (495) 775-86-87 ex.1176
https://www.hermesworld.com
