how to get profit in the russian market: useful tips from successful cases

How to get profit in the Russian market:

useful tips from successful cases

Evgeny Marchenkov

VP of Sales and Marketing

DataLead

© DataLead 2015

Something about DataLead:

u  Leading performance marketing agency in Russia and Eastern Europe

u  Premium partner of Facebook and myTarget

u  Up to 500K daily installs globally u  170K iOS and 330K Android installs every day

u Working only with premium traffic sources: myTarget, Facebook, Instagram, Google

u  Deep integration through API

u  Traffic optimization focused on ROI

u  Long-term partner of AliExpress, Glu Mobile, Tap4Fun, MachineZone, Electronic Arts and others

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Main characteristics of the Russian market

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u  More than 65 million mobile users

u  Local social networks (VK, OK) as main traffic sources

u  Number 5 in the world by combined iOS App Store and Google Play downloads1

u  Number 12 in the world by combined iOS App Store and Google Play revenue2

u  Lower CPI comparing to TIER 1

2 Top 100 Countries by Game Revenues

1 according to App Annie research

Growth of mobile gaming revenue in Russia:

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Russian market share by OS

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Data from Statista.com

Russian market share by traffic sources for mobile games

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Data from AdMobiSpy

Facebook vs myTarget: mobile audience in Russia

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Main benchmarks in the Russian market

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Data from AdMobiSpy

myTarget platform (OK, VK, MoiMir) u  Audience: Russian speaking audience from all over the world u  Ad format: native ad (in-feed banner) placed in the news feed

with a headline, short description and install-now button u  Ad placement: VK, OK and MoiMir mobile sites and apps u  Targeting: mobile OS and its versions, GEOs, Interests, sex,

age etc. u  Prices and volume:

u  Up to 150 000 daily installs

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Benchmarks Games Dating Utilities E-Commerce

iOS $2,5+ $1,2+ $0,6+ $0,8+

Android $2+ $1+ $0,3+ $0,6+

Facebook

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u  Audience: Russians with monthly earnings above the average and foreigners living in Russia

u  Ad format: native ad banners in the news feed with a heading, short description and install button

u  Ad placement: Facebook mobile site and Facebook and Instagram applications

u  Targeting: mobile OS and its versions, geo, interests, age, sex, etc

u  Prices and volume:

u  Volume: 5000+ Daily installs


iOS $3,5+ $1,8+ $0,6+ $0,9+

Android $3+ $1,5+ $0,3+ $0,7+

u  Ad format: colorful dynamic banners u  Ad placement:

u  On display network

u  On search network

u  AdMob network

u  Targeting OS and its versions, geo, interests, age, sex, etc

u  Prices and volume: u  Volume: 50 000+

Google


iOS $2+ $1,7+ $0,9+

Android $1,8+ $1,5+ $0,15+ $0,7+

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Global ad publishers for games

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Data from Appsflyer statistics

Global ad publishers for e-com, travel and utilities

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Data from The AppsFlyer Performance Index for eCommerce, Travel and Utility Apps

Case studies: Rage of the Seven Seas by Unalis

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Average CPI 2 USD

3 USD

Average ARPU 2,3 USD 4 USD

Conversion rate 5% purchase conversion rate

10% purchase conversion rate

Case studies: AliExpress by Alibaba Group

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u  Estimated revenue at the Russian market by the end of 2015: 183 Million USD

u  More than 16 million users every month u  Audience increased by 300% during only 1 year u  70% of all Russian customers use AliExpress app

Average CPI 0,4 USD

1,2 USD

Case studies: Lamoda by Lamoda (Rocket Internet, Global Fashion Group)

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u  112 million USD revenue in the 1st half of 2015 u  About 1,5 million users every month u  Average bill: 80 USD u  Average CPI: 0,9 USD for iOS and 0,6 USD for Android

Major differences between Russian and international users

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Russian users International users

Speak only Russian

English-friendly

Need time to make first in-app purchase

Really quick with their first purchase

Long-term users Prefer to try different games and apps

Frequently believe in advertising Do not generally trust banners

Still prefer to use desktop Prefer to use their phones

Summary

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u  Despite economic crisis, Russian mobile market is still growing

u  Users prefer to go online through their smartphones

u  Average bill value is increasing for both games and e-com applications, but games have to be adopted (culturalized) for the Russian market (localized)

u  Russian market is less competitive comparing to Europe and USA

u  LTV is lower comparing to Europe and USA

u  CPI rates are lower comparing to TIER 1

Want to get more insights?

Send «hello» letter to

[email protected]

and we will send you this presentation with some other perks in reply to your mail

© DataLead 2015