An emerging segment in an emerging market: online video in Russia by Bonno van der Putten

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An emerging segment in an emerging market: online video in Russia

Russia is Europe’s biggest Internet market in terms of number of users (already over 70 million users) and yet almost half of the population is still not online

With 60 million monthly viewers in July 2013 according to comScore, online video in Russia is huge but there’s still massive growth potential, with the audience expected to grow 18% per year on average over the next five years, and video views per viewer expect to increase 6% per year over the same period.

YouTube and other Google sites generate the most online video views, with 54 million users in June 2013, followed by homegrown companies Mail.ru, Gazprom Media, Yandex and Tvigle.ru. When you strip out user-generated content, Tvigle.ru comes out on top, while familiar names like Netflix and Amazon are yet to enter the Russian market.

Spending on online video ads grew 120% between 2011 and 2012, sitting at $52 million. That figure is expected to grow 60 per year over the next two years.






There are still challenges, though. Further growth will be driven by a variety of factors, from
the new anti-piracy legislation – which is likely to increase content owners’ interest in the Russian
market and stimulate the development of legitimate online video platforms – to the beginning of
massive advertiser involvement in online video formats, to the growing maturity of several online
video platforms.

All of this means new patterns of consumption and new opportunities. More than $200 million
has been invested in Russia’s online video sector in the last five years, yet this is just the start.

Online video advertising, as can be clearly seen from this report, also has tremendous room for
rapid growth. Currently it accounts for just 8% of online display advertising in Russia (vs. 20% in
the US) and a tiny 3% of total Internet advertising (8% in the US). The latest forecasts suggests
growth rates for online video advertising will be over 90% CAGR through 2015.
Check more: http://youtu.be/1Lz_DYDyQIc and http://thenextweb.com/insider/2013/10/18/everything-need-know-online-video-russia-explained-new-report/?fromcat=all