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20090616 Ru Market Overview Add Venture
1. Business models with high growth potential in Russian Internet
AddVenture Investment Seminar
Moscow, June 25th, 2009
This report is solely for the oral presentation. No part of it may be distributed, quoted, or reproduced
outside the presentation room without the prior written approval of eVenture Capital Partners GmbH.
2. Runet is in the middle stage of development compared to other markets and has
significant growth potential
RUNET DEVELOPMENT COMPARED TO OTHER MARKETS
Ukraine Russia Germany
Technological
level in
Internet
31,0
B2C 4,5
E-commerce
volume, 0,4
Bn USD
Number of
users, Mio 10 38 55
Source: EVC analysis Seite 2
3. To identify high potential areas eVenture divides Internet business models into 5
major groups according to revenue generation and underlying technology
MAJOR GROUPS IN BUSINESS MODEL CLASSIFICATION
Transaction Advertising Subscription Community Other1)
•All other
•Transaction brokers •Free content or service •Users are charged a •User loyalty business models
•Advertising is major periodic fee
INTERNET •Merchants/Shops source of revenue. •High user investment in
•Combination of free and time and emotion
•Affiliate model •Large traffic volume “premium” content
•Various ways of
monetizing communities
MOBILE
TV
1 Includes Gaming, MVNO etc.
Source: EVC analysis Seite 3
4. To reveal market gaps we investigated the 5 selected categories from the point of
user frequency
Visitor frequency of the biggest player in each key segment of Runet, Mio UV per month
Mio Unique 25
visitors per
month
Portal
20 Shop enabler
20 (payment system)
News 18
18
Person to person
(Dating)
15 Social
15 network
13
Games
10
10
Search 8
Media
7
sharing
5 Classified 5
Maps 3 Bit vendor 3
Blogs 2
Shopping portal 2
Advice0,4
0
Advertising Transaction Subscription Community Other
Source: EVC analysis Seite 4
5. In category Advertising more complex business models are expected to develop
Visitor frequency of biggest players in category „Advertising‟, Mio UV p.m. Comments
25 Social Maps Search News Portals
Book-
marking
The strongest developed
areas
Customer reviews Mail.ru
News.Mail.ru 20,4 Portals
20 18,7
Advertising networks News
Search engines
Mobile marketing The areas with highest
15
potential
SEO Incentive marketing
SEO technologies
10 Yandex.ru
Incentive marketing Mobile marketing
Begun.ru 8,1 Auto.Mail.ru
n.a Maps.yandex.ru 6,7 Advertising networks
2,7 Lady.Mail.ru
5
Market.yan
dex.ru Travel.Mail.ru
3,5 Customer reviews (Smart
2,2 Realty. 2,9 consumer concepts)
Mail.ru
2,9
0
Investment attractive sectors for EVC Property Finance Travel Beauty Auto Generic
Source: EVC analysis Seite 5
6. In category ‚Transaction‘ highest potential reveal social shopping concepts and e-
commerce affiliates and enablers
Visitor frequency of biggest players in category „Transaction‟, Mio UV p.m. Comments
Category Shopping
Special shop Auction Bit vendor Classifieds Shop enablers
UV / month , Mio Mass killer portal Most developed
customi
6 zation Cars.auto.ru Yandex are basic models
Money
5,7
18,1
E-Money
Private shopping Job.mail.ru Classifieds
5 4,5
Bit vendors
Virtual marketplace The models with
IRR.ru
highest potential
3,8
4 Social shopping Shop enablers are believed to be
Affiliate
Gdeetotdom.ru networks
3,8
Virtual market
3 Affiliate networks
place
Social
Ozon.ru component
Mvideo.ru 2,0 mixed with
2 Widgets Molotok.ru 1,8 shopping
SaaS
1,5 (social
Vsemaiki.ru Web Money shopping,
0,3 1,0 private
I-on.ru
1 1,5 shopping)
KupiVIP.ru
Live shopping
0,3
0
0
Hotel Job Auto Other enablers
Source: EVC analysis Property Generic Seite 6
7. Among Subscription models we recognise Geoservices and Mobile services to be
the next points of growth
Visitor frequency of biggest players in category „Subscription Comments
UV / month, Services Person to
B2C Subscription
Mio provider Person sevices The best developed models so far are
8 Love.mail.ru dating services
15,4
Most of them have been free before
Loveplanet.ru
Autumn 2008, however crisis made them
Geoservices 6,8 introduce several monetization options
6
Improvement of profile
Paid games
Mobile Services Mamba.ru
4,9
Presents to other members
4 “Service provider” segment is generally
very weak so far, legal rights issues should
be addressed
Highest potential is believed to lie
2 Radmin.ru
within
(Distant PC
management)
Geoservices based on mobile
TV-Portal.ru 0,5
technologies
0,07
Internet mobile applications
0
Dating
Source: EVC analysis Seite 7
8. In category „Community“ monetized social networks are seen as the next step of
developement
Visitor frequency of biggest players in category „Community‟, Mio UV per month Comments
UV / Open Advice/Recommen- Blogs Media sharing Social networks
month,
15 content dation Top developed areas
Mio
Paid social
VKontakte.ru Social networks
13,1
networks My.mail.ru (active growth and
„My World“ saturation in 2008)
11,5 11,5
Media sharing
Odnoklassniki.ru
Blogs
10
RuTube.ru Currently social
7,2 networks with payment
Foto.mail.ru
7,0
options (transaction or
subscription) are seen as
most attractive option
5
LiveJournal.ru
1,8 Moi krug.ru
Answer.mail.ru
1,9
0,4 Blogs.mail.ru iFolder.ru
iCompas.ru
15,4 0,3
n.a. Otziv.biz Smster.ru Professionali.ru
0,2 n.a n.a.
0 0 0
Travel Products Q&A Microblogging Documents Photo Video Professional Generic
Source: EVC analysis Seite 8
9. EVC identified attractive market niches in Runet with regards to own focus
KEY LEARNINGS OF RUSSIAN BUSINESS MODELS OVERVIEW
Advertising
1 Smart marketing in Internet
„Smart consumer“ concept
Transaction
Social shopping
2
Various affiliates and e-
commerce enablers
Subscription
Geo- and Internet mobile
3 services are expected to be
in demand
Community
Transaction- or
4 subscription-based
communities
Other
5 - Have not been considered
within this report
Source: EVC analysis Seite 9