DIGITAL MARKETING IN RUSSIA 2018 - FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA - RMAA Group
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DIGITAL MARKETING IN RUSSIA 2018 FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? by Vadim Tylik
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? Introduction By the nature of our activities, my colleagues and I deal with many European, American and Asian businesses. Although we find various topics for discussion, in this White Paper I’ve decided to elaborate on a topic that is particularly interesting for a foreign business in the Russian market: how to find your customers in the internet in Russia? How to promote your web project in Russia This White Paper has been written specifically for foreign marketing specialists and entrepreneurs who want to expand their sphere of influence, to bring online projects to the Russian-speaking market and acquire new customers. This White Paper is not only devoted to search marketing, you will also find a complete description of the market and all the digital marketing tools that can be applied to your business in Russia. If you want to seize the Russian market a hundred percent, this White Paper will give you the knowledge to make a successful digital marketing campaign in Russia. About the Author: Vadim Tylik – Russian entrepreneur, founder and president of the RMAA Group – Russian full service marketing and advertising agency. Vadim helps foreign companies to develop and implement marketing strategies in Russia and CIS region, create performance based digital media campaigns in order to expand more effectively on the Russian market. With more than nine years of experience in the advertising industry and marketing, Vadim has worked with dozens of medium-sized and big businesses, the most famous of which are – Merkle (USA), BigPoint (Germany), and Dong Feng Motor Corporation (China). © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 2
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? Are you involved in digital marketing? Do you have the task of promoting a web pro- ject in Russia? Are you an entrepreneur or a digital marketing specialist familiar with a par- ticular local market, but not sufficiently familiar with Russian digital marketing? This White Paper has been written specifically for foreign marketing specialists and entrepreneurs who want to expand their sphere of influence, to bring online projects to the Russian-speaking market and acquire new customers. Today, I am aware of the fact that more and more foreign online stores are adapting their workflows for Russian customers. They translate content into Russian and advertise in the Russian Internet. Why is this happening? Firstly, Russians have money and they love to buy! A second reason is psychological and lies deep inside the Russian soul. It’s all about the mentality of Russians. As it happens, Russians prefer to buy abroad more than at home, they do not trust local brands. This situation is unpleasant for the Russian economy, but is good for foreign companies, as foreign businesses get high profits from sales to Russian customers. Russian consumer psychology can be formulated in a common saying: “No man is a prophet in his own country.” Despite all the prospects that foreign companies see in the Russian market, there are a number of barriers that hinder a successful business process. Not all foreign online stores and online projects are becoming popular in Russia. What is the reason for that? Lack of knowledge regarding the peculiarities of web promotion, as well as marketing opportunities. As a rule, the only promoting tool foreign marketing experts use is Google AdWords. This tool is certainly effective, but not very popular in Russia, because Google covers only 33% of all the Russian search market. This means that by confining yourself to only using the adver- tising opportunities of Google, you are losing 67% of the search market! This White Paper is not only devoted to search marketing, you will also find a com- plete description of the market and all the digital marketing tools that can be applied to your business in Russia. Or you probably only want to know how Google AdWords works in Rus- sia? If that`s it, you can stop reading this article, but if you still want to seize the Russian market a hundred percent, this White Paper will give you the knowledge to make a successful digital marketing campaign in Russia. © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 3
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? RUSSIAN INTERNET TODAY A summary of the main search engines The most popular search engine in Russia since 1997 is Yandex. The second most popular search engine in Russia is Google - the world’s leading search engine, entered the Russian market in 2006. In third place is Mail.Ru search engine. For a long time Mail.Ru was using third-party search engines - Google and Yandex, developing its own search algorithm at the same time. Mail.Ru switched to its own search engine in 2013. In Russia, the audience is almost completely divided between two search engines: Yandex and Google. According to the Russian company Liveinternet, as of December 2017 the market share between the search engines was distributed as follows: 0,74% 0,26 % Others 0,98% 2,73 % 49,13 % 46,16 % A summary of Russian social networks Let’s see what social networks are popular among Russians in order to understand how to approach the Russian Internet audience. Let`s have a look at them. VKontakte is the most popular social network in Russia. More than 470 million users are registered on it. More than 75% of site users are older than 25 years. More than 92 mil- lion visitors come to the site every day. Odnoklassniki is a social network that was set up to search for former classmates. To- day it has more than 330 million users. 44% of the audience are people aged 25 to 44 years. Every day this website is visited by 59 million users. Facebook is a social network popular worldwide. Initially Facebook users from Rus- © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 4
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? sia were generally people with a higher education, speaking good English. Many of them are businessmen and top managers at various levels. Today the audience of Russians in Face- book is 27.7 million. Moi Mir@Mail.ru (My World) is a social network of the largest Russian Internet company Mail.ru. Followers of service – 9.1 million per month (according to TNS December 2017). Instagram is becoming more and more popular. The Russian audience of this resource is 14,4 million people, which is nearly five times as many as in April 2017. This social network takes the second place according to the number of active writers (the first place takes VKon- takte). Short Message Service Twitter is not the most popular social network in Russia. The Russian audience of this social network as of May 2017 was only 8.1 million users. Below is a list of top 20 most popular sites on the Russian Internet according to audi- ence choice. This data is presented by the research agency TNS Media Scope. ANALYSIS OF ADVERTISING TRENDS AND AUDIENCE of Russian social networks according to TNS Web-Index Russia December 2017 Monthly reach 12-64 years www.facebook.com www.my.mail.ru 21,7 mln. 9,1 mln. users users percent of Russian percent of Russian popularity 37,0% popularity 16,0% www.ok.ru www.vk.com www.instagram.com 27,0 mln. 41,1 mln. 16,0 mln. users users users percent of Russian percent of Russian percent of Russian popularity 47,6% popularity 72,4% popularity 25,5% © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 5
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? GENDER according to Media Scope December 2017 Monthly reach 76,9%* 58,9%* 55,4% 51,7% 55,6% 48,3% 44,6% 44,4% 41,1%* 21,3%* AGE 9,7% 0%* 8,9%* Age 12-17 8,6%* Age 12-17 Age 18-24 14,1% Age 55-64 12,7% Age 18-24 Age 55-64 14,9%* 37,0%* 16,0% 26,1% Age 45-54 Age 25-34 Age 45-54 Age 25-34 21,3% 7,7% 8% 30,6%* 4,8% 6,5% Age 12-17 Age 35-44 Age 12-17 Age 18-24 Age 35-44 Age 18-24 19,9% 25,0% 16,4% Age 55-64 Age 55-64 Age 25-34 20,6% Age 25-34 20,0% Age 45-54 22,2% 25,1% Age 45-54 Age 35-44 23,7% Age 35-44 *according to Brand Analytics for May 2017 ACTIVITY OF AUDIENCE the average number number of visits number of pages of minutes per visit per user viewed 10,3* 41,2 475,7 millions 4,5* 6,9 170,7 millions 10,2* 9,8 8,1 millions *according to Alexa for January 2018 © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 6
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? Rating of the most popular Russian Internet resources Top 20 Internet projects. Russia 0+, 12-64 years December 2017 The average times per day Name of The average times per month in thousands of hours project in thousands of hours 26 530 Yandex (31 projects) 50 549 18 026 Vk.com | Mail.ru (23 projects) 44 483 17 413 Mail.ru (23 projects) | Youtube.com 42 340 14 057 Google (ru+com) 41 187 13 952 Youtube.com | Vk.com 41 071 8 949 Odnoklassniki.ru 27 037 3 425 Aliexpress.com | Wikipedia.org 23 425 3 382 Facebook.com | Aliexpress.com 20 178 2 875 Avito.ru 19 334 2 814 Wikipedia.org | Facebook.com 18 811 2 260 Instagram.com 15 682 2 206 Rambler.ru | Gosuslugi.ru 12 424 1 691 Gismeteo.ru | Rambler.ru 12 326 1 364 Rbc.ru 11 174 1 218 Gosuslugi.ru | Ria.ru 11 125 1 147 Pochta.ru | LiveJournal.com 11 085 1 129 Fotostrana.ru | Kinopoisk.ru 10 643 1 092 LiveJournal.com | Kp.ru 10 415 1 070 Pikabu.ru | Mts.ru 10 048 1 034 Ria.ru | Ozon.ru 9 181 © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 7
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? WHAT IS NEEDED FOR SUCCESS IN RUSSIAN DIGITAL MARKETING? Understanding of local specifics In addition to an understanding of market analysis and market design, of which we spoke briefly above and will talk about in more detail later, knowledge of the audience’s lan- guage is very important. It is not just about the obvious need for quality localization of advertising campaigns, which must be carried out by native speakers. In the Russian Internet environment the stratification of users is huge, including age, wealth, education and ideol- ogy. Therefore, individual people choose not only different Internet platforms for communication and tracking news, but even different search engines. Each social network has a particular attitude to customers and dramatically contrasting content, even if they have exactly the same functionality. We should definitely consider Russian national character. There are examples of campaigns that worked very well in the West, but even with high-quality localization did not attract consumers in Russia, and even repulsed them. You will have to forget about certain techniques. For example, the Russian audience will not tolerate aggressive pressure. You want to incite consumers’ hatred? Push the consumer to believe that he simply has no other choice but to use your product or service. Does your product meet a ready market in Russia? Before you start promoting your product or service on the Russian market, it is necessary to know how often it has been looked up in the web. In addition to Google Trends, which you are already familiar with, you should use the service provided by Yandex - “Selection of words”: wordstat.yandex.ru. In the chart below you can see that the keyword “Iphone X” was requested 364653 times per month. It is important to understand that this data is not stable; the demand is changing every month. © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 8
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? A SURVEY OF RUSSIAN INTERNET ADVERTISING SOLUTIONS SEO-promotion The principles of search engine promotion in Russia are the same as in the English Internet. Yandex develops its search algorithms in the same manner as Google does. Therefore, the principles of working with text content are the same today in Russia and abroad and are designed for behavioral ranking. Today, the presence of keywords is still important, but the texts written for search engines, as well as link-bombing are irrevocably gone. Search engines track user behavior and, therefore, success belongs to those who can keep visitors on site for longer, and achieve a high depth of viewings. The cost of SEO-promotion can vary greatly depending on the level of a request’s com- petiveness. This in turn depends on the number of competing sites and their level of invest- ment in SEO-promotion. For example, competition will be significantly higher for the request “deposits”, than for the request “ice cream manufacturer Novosibirsk.” © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 9
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? DIY or search for an executive? You’ll need at least two experts. However, there are people who combine both roles: SEO-experts to develop a semantic core and a copywriter to create content. If you choose not to use the services of the agency, you will face the problem of the search and selection of spe- cialists. Before you start looking, you need to know the following about the Russian advertis- ing market. Freelancers Many freelancers who consider themselves SEO-special- ists in Russia continue to work with outdated tools: trading links, stuffing texts with keywords until they become complete- ly unreadable. Copywriting market in Russia is very much obstructed by non-professionals. At least half of them are professionally unsuitable. Using the incompetence in advertising of managers of small and medium-sized businesses, “copywriting” in Rus- sia is a way of making a living for students, women on mater- nity leave and lots of other people who not only have zero idea about advertising and marketing, but who also don’t even try to get this sort of knowledge. They easily get positive reviews from uninformed customers; improve their positions in the catalogs of freelance marketplaces buying rating for money. Therefore we do not recom- mend seeking a specialist only according to his rating, which is highly likely to be hyped-up. It is ideal to have a native speaker familiar with advertising at hand. They will give you use- ful tips or will make a choice for you. If you still intend to seek a specialist based on his reputation, choose those who have experience of working with reputable brands. Agencies Agency services are likely to cost you more than hiring freelancers, but agencies have a few more factors that allow you to estimate their credibility and effectiveness. An agency is also useful when you need to withstand competitors constantly investing time and money into improving their content. In this case, firstly the agency will give you the advantage of an integrated approach to solving your problems. Secondly, it will give you a large amount of good texts, which are not likely to have been obtained from the freelancers - especially given the problem of their search described above. © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 10
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? Contextual advertising – advertisement with payment per click If in Russia there is a large number of competitors on the keywords that you`re inter- ested in, and you need instant gratification, then the best solution is advertising with pay per click, or contextual advertising. Ads are shown to users on the side or below the main search results in the form of text ads. Google is a worldwide leader in the field of contextual and search advertising, but in Russia you will inevitably have to deal with at least one more player on this market - Yandex and possibly with another - Begun. The difference between Google and Yandex at the audi- ence level is as follows. Google is used by those who want to see fewer advertisements and are interested in finding high-quality and informative texts. Also, a certain snobbery is resident in the audience, and confidence in their own “advanced level”. Yandex is ideal for those look- ing for Internet products, services and entertainment. The contextual advertising system in Russia operates on the same principle: you pay per click, i.e. for a potential client, jumping on your site. Cost per click can be from 1 cent and up to several dollars, depending on the number of competitors in the industry, the CTR index and your position among other ads. «Yandex.Direct» Contextual advertising on Yandex is necessary if you want to push forward in the Russian Internet. The services of this company mostly replicate the services of Google, but Yandex works with the consumer market much more thoroughly. More often than not it is with Yandex that consumers search for sell- ers of goods and services. Even those who use Google as their main tool for finding useful information or news, use Yandex when it comes to shopping. Also site owners prefer to place ads on Yandex, as the company provides the most convenient payment terms. Google AdWords You probably already know this operator. Compared to Yandex.Direct it is not very popular in Russia. The price per click is significantly higher. The payment system is incon- venient for owners of advertising platforms, so Google avoids hosting contextual advertising. However, when carrying inte- grated campaigns Google AdWords is not _ avoided. In search advertising Google has access to a secure, educated audience that is ready to buy expensive and high-quality goods. © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 11
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? Begun Begun is an operator of contextual advertising, created by Rambler. At one point it was one of the largest Russian Inter- net companies, but eventually it lost ground. By June 2013 Be- gun was almost dying. Outdated technology and low require- ments for partner sites (attendance of two people per day) did not add any popularity. In addition, professionals from online advertising suspected their partners of “click fraud” of contex- tual advertising by bots - the platform, apparently, did not allow the operator to monitor the actions of fraudsters. In June 2013 the operator presented a new platform that meets modern standards - “Begun Smart”. Begun is the only Russian operator reseller. That is, it not only sells advertising on partner sites, but also sells search and contextual advertising from Yandex and Google. If you have a need to order all “in a single package”, perhaps partly sacrificing the efficiency of campaigns, you can use this solution. DIY or find an agency? This issue should be approached carefully. If you order advertising from Yandex or Begun, contacting the agency you spend exactly the same amount as for independent work. Yandex provides significant discounts to partner agencies, which generates their income. Google does not have such a program, so when referring to the agency be prepared for an extra charge. If you choose to work on your own, then you will also need a copywriter to produce ads. Experience shows that managers, whose services are provided by the search and contextual advertising operators, are often very familiar with setting up a campaign but very poor – with Russian grammar and marketing. The resulting ads are simply embarrassing. Media-contextual advertising Banner ads are demonstrated to a target audience. Unlike sales-oriented contextual advertising, this also works for the company’s image, and increases brand awareness. Below we describe the major media-contextual solutions in the Russian market. Yandex.Bayan This banner network uses the numerous advertising ser- vices of Yandex, which are very popular in Russia (many of them have become completely irreplaceable) and encompasses a variety of target audiences. Advertisers choose thematic sites to show their banners. Unlike contextual advertising, which is aimed at the use of the © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 12
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? theme of the resource where it is located, context-media advertising from Yandex is focused on the queries that the user enters in the search box. For example, if you are looking for win- ter shoes, you will see banners of the stores that sell them. The advertiser does not pay per click, but per demonstration of advertising. Yandex provides discounts to partner agencies. Mail.ru Group This is one of the largest companies of Runet, which owns the popular Russian mail service Mail.ru, social networks “My World” and “Odnoklassniki”, as well as several thematic por- tals. Advertisement is _ targeted according to demographic (gender and age) and geographical parameters, as well as _ fields of interest. Partners of Mail Group enjoy various discounts. Begun Rambler owns a number of popular internet projects, also placing advertising on large sites that do not belong to it. There is also a partner program that allows you to advertise on small portals. Of the well-known sites where Begun places advertisement there are several that are worth mentioning. They are Afisha.ru, a portal with announcements of cultural events; Livejournal.ru - the largest blogging platform of Runet; websites Price.ru (compares prices from online stores) and Ferra.ru (reviews of home appli- ances). “Begun” claims to cover an audience of over 15 million users per day and more than 40 mil- lion per month. Advertisement is _ targeted geographically, as well as according to interests. Partner agencies enjoy discounts from Begun. Context-media network Google AdWords Context-media advertising from Google is not so relevant in Russia, compared to the English-speaking segment of the net- work. But it is also worth paying attention to, as YouTube and Gmail, which are included in this advertising network, are popu- lar worldwide. Google AdWords does not provide discounts to partner agencies. © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 13
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? DIY or find an agency? By passing banner advertising to an agency, in four cases out of five you pay the same money as ordering a campaign by yourself. Agencies benefit from discounts that are pro- vided by the operator, not from the margins paid by the customer. At the same time people familiar with the peculiarities of the Russian media environment and the mentality of Rus- sians will be working for you. Social networks The main thing you need to know about social networks in Russia is that even if their functionality is the same, the audience is not homogeneous. VK is not very different from Facebook, but these networks have a different audience, and even the same people there will behave differently. VK This mostly Russian-oriented social network can be your main instrument. It has the largest number of users. Since more than 60% of people are under the age of 25 years, VK is considered to be a youth network. The older generation, though, often creates accounts for audio and video (almost completely unmoderated, and therefore containing a high proportion of pirated movies and music), and does not communi- cate through the site that much. When working with a group of brands, SMM-editors often adopot a casual tone, and appeal to the audience as “you” (disrespectful form of address in Russian, appropriate among family members, friends, and young people). Content is usually catchy, viral, with game ele- ments. In this social network, you will not find the usual tool of Facebook, which is advertis- ing in the news feed of users. This social network is willing to advertise in communities using their own exchange advertising, which makes it easier to search for a group and buy advertis- ing in them. You create a promotional post; select the community that is suitable for the subject according to the number of readers and the price of the post (assigned by the moderator of the group) and pass your post for moderation. At the same time the system will lock a certain amount of money on your account equal to the price of the ordered advertising. After this the group moderator expresses his willingness or refusal to publish your post, and the reserved amount is deducted or debited from the account. After this the post will appear in the news feed. Moreover, you can preset the time of publication, or the period of time the post is to be published for. The rest of the promotional opportunities of VK are very similar to Facebook: placing targeted banner advertising, special offers in games, and creating your own brand advertising applications. © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 14
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? Facebook Facebook is also used by Russians, although significantly less than VK. The Russian audience for this network is older than that for VK, usually has a high level of education, and likes meaningful communication. In communities people usually appeal to each other respectfully as «You», and try to make the posts more informative and useful, rather than entertaining. Instagram In October 2015 official ads became available on Russian seg- ment of Istagram. Such ads pop up on the newsfeed, thus attracting consumers’ attention. In Russia there are no existing competitive anal- ogies up to this point. Today, the number of Istagram users in Russia keeps on growing after it hit 12 million. This network is mostly popular in Moscow (nearly 3 mln users) and Saint Petersburg (500 thousand users). 70% of the audi- ence are women. Official advertising on Istagram has flexible settings. You can select the display time and sort your audience by location, gender, age, and interests. Business advertising would be the most promising when it’s tied to a specific city (stores, cafes, studios), goods and services for women (beauty studios, jewelry), or cell phone apps and accessories. You need to remem- ber that advertising in Istagram can also cause a negative effect, since users don’t like seeing ads in their newsfeed. So, do your best to make your ads either useful or just funny. You can manage your Istagram ads through an ad account on Facebook or though authorized resell- ers in runet and CIS countries, such as Aitarget. DIY or find an agency? Our recommendations on social marketing will be the same as for SEO. To moder- ate the communities in social networks just one freelancer is enough. I should add that in Russia fraud is thriving - when thousands of bots that are indistinguishable at first glance from real users are added into communities. Account hacking is also popular, real users are being signed for a page or brand account without their knowledge. Contacting the agency does not provide an absolute guarantee that you will not be deceived - there are examples of fraud from the companies as well, so be sure to check the reputation of the agency before starting work E-mail marketing The largest number of myths is concentrated in the field of email marketing. First, many see e-mail marketing as spam e- mail. And, secondly, the idea of e-mail marketing itself in Russia and, for example, in the United States is quite different. For in- stance, if the US has a huge amount of e-mail-brokers who offer a database of e-mail addresses according to certain characteristics: interests, work position, income, gender, and age, you won`t © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 15
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? find this in Russia. And if someone offers you such a service in Russia, then you should think about the quality of this service. Speaking of e-mail marketing, I mean the following: people expressed a will to sign up for your newsletter, which means agreed to be sent letters from you. In Russia there is a huge amount of spam, so recipients of e-mails they didn`t subscribe for have no enthusiasm for letters from unknown addresses. Most of these messages are sent to spam without being read. However, there is a way to reach the desired audience via e-mail. If you do not own an e-mail database of a Russian-speaking audience, but you want to do e-mail marketing, in this case, you will need to reach those who have access to the desired audience. Russian internet agencies that are engaged in e-mail marketing create their own Internet projects. For example, a site dedicated to cooking, where users can get thousands of free recipes, working “at the behest” of an agency. An advertiser comes to an agency with the request that he is interested in access to an audience of “women, aged 25+, with chil- dren”, and the agency shall carry an e-mail campaign of the brand “jointly” with the cooking website. Thus, it becomes a legalized e-mail newsletter, which does not contradict - Russian legislation and is accepted normally by internet users. B2B e-mail campaigns are more difficult to carry, but, it is possible. Therefore, it is im- portant to find an agency that has connections with the sites or resources, owning the neces- sary databases. DIY or find an agency? For conducting mailing you only need one copywriter who speaks Russian. If you are able to find a good specialist without the help of the agency it’s half the battle. The other half - to find the necessary databases (which is the main problem), here you cannot do well without a professional agency with access to the right resources. Cost per Action – advertising model This business model is relatively new to the Russian advertising market. A CPA agency assumes a full range of measures to promote your project and gets paid for the results of its activities: customer calls, purchases from an online store, placing goods on a wish list, in- stalling applications, accounts registration, and so on. Each of these events, pushing consumers to pur- chase something, is negotiated and rated by the CPA agency and is marked by a short but succinct term «lead». The procedure for obtaining leads is called, lead generation. Lead generation is basically a win-win business pro- motion format for those who do not want to delve deep- ly into digital strategies. The business does not have to agree on all the advertising moves to © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 16
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? approve layouts and paying video producers, then await the issue, and worry about the errors and miscalculations of staff or invited marketing specialists. Besides, leads allow the specifying of the task at most through the use of certain con- straints. You can choose a specific product that needs to be promoted, the most interesting region for business, the social status of the consumer and even the cost of the lead - in gen- eral, any parameter, allowing you to select the best consumer out of a huge audience. Most often, the CPA agency enables customers to set the monthly amount of leads that they can actually handle. Where do leads come from? Today, there are four general directions of lead genera- tion: contextual advertising, cold calls - implemented with the help of call-centers, the con- version of organic traffic of successful online projects with a high level of attendance into leads, as well as affiliate marketing. Influencer Marketing Influencer Marketing is going to remain an effective way of brand promotion in 2016. This promotion channel can prove effective on any platform: personal website, live journal and other blogs, youtube, periscope, social networks, such as VK, Facebook, Istagram. It is extremely important for your opinion leader to engage with his audience. The main ways to promote the product through the opinion leader include direct recommendation, casual mentioning of the brand in a positive context without imposing, and testing the product. Many brands in Russia are currently using influencers for promotion. How do you choose the influencer? It’s better if this is a person whose spheres of interest naturally include the product being promoted. For example, a blogger writing about tourism can advise his readers the equipment of a certain brand. In the same way, it’s better to promote online games on the game channel. It’s very important that your audience is laid-back. Your influencer must be either a professional in a certain sphere or a celebrity whose life interests many ordinary people. It’s important to make sure that the main audience of your leader does not involve people with well-developed critical thinking. Otherwise, this promotion attempt can turn into a negative experience both for you and your blogger. So, it is preferable to choose an agent who would talk to his audience about simple things, such as entertainment, good food, his tastes and plans, and so on. In a blog with mainly analytical materials, you will instantly face a negative reaction from the audience, as soon as they are given any advice. Besides, it is worth remembering that you can’t just promote any product or service through opinion leaders. It should look like a simple recommendation from a friend. For instance, in most blogs it’d be hard to offer the readers a specific mix for construction or a certain type of tyres, though it might still be possible on some specialized YouTube chan- nels. Influencer Marketing is perfect for promoting products and services related to health and entertainment, for this is exactly what can be advised in an informal conversation with a friend: things like clothes, cosmetics, trips, restaurants and cafes, goods for kids, etc. © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 17
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? Blogging Russia has two major blogging platforms: LiveJour- nal for texts and YouTube for videos. YouTube is the number one video hosting site in the world, and Russia is no exception. “LiveJournal” owes its popularity to a glorious past. It was the first social platform that Rus- sians began to explore. Many used it as a social network, until the much more convenient and technologically advanced Vkontakte and Facebook appeared. However, these networks are poorly adapted to posting big texts, text search and arrangement. Also blogs on «LiveJournal» are popular because old-timers that became popular many years ago did not want to leave them. And there is significantly less trouble with the platform than with your own website on a separate domain. Blogging and video blogging in Russia is very different. If video bloggers, as with other countries, mostly work with their own themes, bloggers on LiveJournal stand out not for their knowledge of a particular narrow topic, but writing skills, personal charisma, intel- ligence, the ability to create viral posts, and excite the readers. In other words, if YouTube has the advantage of revealing certain topics and meeting interests, “LiveJournal” is an area almost entirely owned by individuals endowed with charm. In both cases, of course, there are some exceptions. Themed blogs can be found in the segment «stand alone». This is because of the fact that bloggers earn by placing ads, and until relatively recently, “LiveJournal” did not provide such an opportunity. YouTube To find bloggers who can present your product or service, it’s best to use the search on YouTube. Enter the name of the topic you want in the search box and select the filter “Chan- nels”. Next, the use options “Sort by rating” and “Number of Views” – they will help you find the most popular bloggers working with the topic you are interested in. Also, websites analyzing lookup statistics can also be helpful, for example, Topchannel.ru or Whatstat.ru, where information is presented more clearly than in video sharing. LiveJournal LiveJournal has its own rating based on views of blogs, num- ber of comments and reposts. It is quite objective. Ratings of Russian-language blogs can be found at Livejournal.com/ ratings/users?country=cyr. This value, referred to as social capital is used for web ranking. The calculation algorithm is kept secret in order to avoid ratings being artificially inflated by bloggers. Besides individuals, thematic communities, which are collective blogs, are a force. They can © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 18
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? be a good tool in promoting your business, but require a certain delicacy when working with them. Any member of the community can create a post in it by default, but moderators often impose restrictions, such as some criteria according to which the post is considered worthy of the community. In conjunction with the pre-moderation and limited access to writing posts it is quite a serious barrier for publication. Therefore, working with communities requires a thorough understanding of the principles of their operation. If you want to create an advertising post in the community, first contact the moderator and ask for permission to do it, and second, try to make sure that the post is not just advertising. Blogs entertain people and help them to learn new things; make sure that these functions are performed by your post. Instagram Istagram is currently being used by numerous brands to promote their products and services. For several reasons, Instagram network proves to be quite convenient for Influencer Marketing. The lion’s share of a post is taken by pictures, and the audience of popular bloggers and celebrities is pretty laid-back. Besides, Istagram is mostly a female social network. It’s essential that your opinion leader does not simply share pictures of the product, but adds his positive remarks as well. It’s very good if the blogger uses home pictures instead of professional shots in front of the logo banner. Here are some typical examples of advertising posts in Instagram: ce- lebrity recommends a cosmetic/clothes brand, popular blogger shares about promotion at a specific place, influencer mom recommends a cool developing game for toddlers. «Blogun» and other exchange platforms In addition to personal work with bloggers there is another possibility - bulk buying of adver- tising on blogs via global web marketplace. This is a risky way since when making a bulk order you cannot control the blogs and social networking ac- counts where your advertising will appear, nor the quality of their content and audience. The oldest and most popular of such marketplaces is Blogun.ru. Requirements for the bloggers are: at least 20 posts per month, not less than twenty subscribers in LJ. At the same time, it is quite difficult to ensure that blog subscribers did not stop reading it a few years ago. But Blogun also helps to make contact with the stand alone blogs where thematic con- tent is placed, as we mentioned before. © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 19
FINDING YOUR CUSTOMERS ON THE INTERNET IN RUSSIA — HOW TO GO ABOUT IT? DIY or find an agency? Finding a popular blogger, inviting him to use the product or service and place a review is not too difficult, and there will be a real effect. But you can produce a much greater effect by enlisting the help of people who have worked with the blogosphere for years, familiar with the characteristics of audiences for each of the most popular bloggers. They will be able to target your PR more accurately. PERSPECTIVES OF WEB ADVERTISING IN RUSSIA The digitalizing of media space is continuing and will continue. More and more people are shifting their attention to the Internet. The Russian online audience is growing. Mobile devices that allow you to use the Internet wherever you go are developing rapidly. Unfortunately, today, during this period of political and economic difficulties, busi- ness has more obstacles. This is a good reason to use the experience of the global financial crisis of 2008 and apply it to online advertising, which demonstrated its effectiveness back then. According to the agency «Mindshare Interac- tion», during the crisis the Internet advertis- ing market in Russia increased by 55%. Cheap advertising contact, precise targeting, specific tools for advertising campaign tracking and managing made online advertising an ideal tool in times of crisis, when it was important to get the most out of the money invested in sales promotion. Today, digital marketing techniques allow you to get in touch with Russian consumers worldwide. My experience in promotion of international brands on the Russian market in- dicates that businessmen today are not just interested in the Russian market; they are inter- ested in the whole Russian-speaking audience, living in CIS countries, Europe and America. As of 2014 the Russian-speaking market as a whole covered more than 270 million people according to the Ministry of Foreign Affairs of Russia. The crisis and political woes will pass – we`ve been through it many times before. So use the crisis as an opportunity to get a piece of the pie from the Russian market, while your competitors behave passively, trying not to take risks. © Vadim Tylik • 2018 • RMAA Group • www.russia-promo.com 20
So Where to Go From Here? This paper merely touches the surface of How to Reach Us: If you want to contact the Digital Marketing in Russia. If you Vadim Tylik directly, he can be reached need help promoting your business in via e-mail at : Russia, consider RMAA Group. We offer vadim@russia-promo.com the following services to help you: or connect Vadim on LinkedIn: http:// Full Digital Marketing Solutions in www.linkedin.com/in/vadimtylik Russia for foreign companies: We handle everything from developing marketing strategy, market analysis to ads production, digital and online advertising that fits your specific needs. For more information contact RMAA team via e-mail: office@russia-promo.com Be sure to check out RMAA Group`s blog for the latest information on the Russian marketing trends. See www.russia-promo.com/blog About the Company: RMAA Group is an independent Russian full service Marketing agency. RMAA Group helps international b2c and b2b brands enter the Russian market. RMAA Group serves companies from the USA, England, Europe, South Korea and China which are interested in the Russian market. RMAA Group`s core competencies include: Search Marketing, Digital Advertising, Analytics & Conversion Rate Optimization, Mobile & Social Media Marketing, Content Marketing, Digital Marketing Strategy & Media Planning and Influencer Marketing. Our global vision is to create a favorable economic environment allowing foreign companies to operate successfully in the Russian market. About the author: Vadim Tylik – Russian entrepreneur, founder and president of the RMAA Group – Russian full service marketing and advertising agency. Vadim helps foreign companies to develop and implement marketing strategies in Russia and CIS region, create performance based digital media campaigns in order to expand more effectively on the Russian market. With more than nine years of experience in the advertising industry and marketing, Vadim has worked with dozens of medium- sized and big businesses, the most famous of which are – Merkle (USA), BigPoint (Germany), and Dong Feng Motor Corporation (China).
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