Study: Ukraini­ans browse more, on­line ad­ver­tis­ing yet to boom

Kyiv Post - - Business - BY KATYA GORCHINSKA­YA GORCHINSKA­[email protected] Kyiv Post ed­i­tor Katya Gorchinska­ya can be reached at gorchinska­[email protected]

Ukraine is a land of prom­ise for on­line mar­keters. It has the largest pop­u­la­tion in Cen­tral and Eastern Europe, and one of the re­gion's fastest grow­ing num­ber of In­ter­net users. But ad­ver­tis­ers have yet to cash in on these op­por­tu­ni­ties.

These are the find­ings of a new re­port by Gemius SA, a re­search and mar­ket­ing agency. The group's most re­cent re­port gives a unique peek at the re­gion's on­line op­por­tu­ni­ties.

Ukraine is one of 15 coun­tries of the re­gion an­a­lyzed dur­ing the pe­riod be­tween De­cem­ber 2010 and De­cem­ber 2011. Ukraine had the high­est au­di­ence growth in the re­gion at 17.5 per­cent (for those older than 14 years of age.)

That trans­lates into 2.4 mil­lion more users, bring­ing the to­tal num­ber of users to 13.6 mil­lion. By com­par­i­son, the re­gional In­ter­net pop­u­la­tion grew by 9.2 per­cent, or by 12 mil­lion users.

Yet the In­ter­net ad­ver­tis­ing mar­ket re­mains weak in Ukraine. Ad­ver­tis­ers only spent about four eu­ros per user, the third low­est re­gional fig­ure af­ter Be­larus and Ro­ma­nia.

The good news is that Ukraine's on­line ad­ver­tis­ing grew at the fastest rate in the re­gion, by 57 per­cent, com­pared to 2010. The na­tional mar­ket reached Hr 440 mil­lion, Yan­dex Ukraine CEO Sergei Pe­trenko was quoted in the re­port as say­ing.

The re­port shows that so­cial net- works are pop­u­lar. Four of them are in the top 10 most browsed web­sites. Three of them are Rus­sian – Vkon­takte, Od­nok­lass­niki and Fo­to­strana. Face­book is also on this list.

“One of the few mar­ket seg­ments where the lead­er­ship be­longs to a lo­cal player is on­line shop­ping,” the re­port says, with hav­ing a strong mar­ket po­si­tion.

Ukrainian in­ter­net users also "be­gan to per­ceive the web more as a source of ad­vice on off­line mat­ters. Tak­ing a look at the chart makes clear that the web­site cat­e­gories which grew most rapidly in 2011 were health & medicine, women, en­ter­tain­ment & leisure,” the re­port says. The web­site which grew most in was eu­ro­, a med­i­cal por­tal, which had a mere 6,000 users in De­cem­ber 2010 and a half-mil­lion one year later.

Users with a higher ed­u­ca­tion con­sti­tute the largest group of In­ter­net users (41.2 per­cent).

Res­i­dents of cities with more than 500,000 res­i­dents make up the big­gest group of In­ter­net users – 45.7 per­cent. The rate of In­ter­net pen­e­tra­tion in Ukraine is 33 per­cent.

In Ukraine, less than 5 per­cent of all pageviews were gen­er­ated with mo­bile de­vices in 2011. While low, it's higher than the re­gional av­er­age. In 2011, Ukraini­ans mostly used Nokia phones, but Ap­ple’s share is ris­ing.

Ukraine’s In­ter­net au­di­ence is small but grow­ing fast, ac­cord­ing to re­search and mar­ket­ing firm Gemius SA.

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