Dropped out of a window

Players of the Ukrainian market of Internet advertising, as well as earlier, are in an anticipation of splash which, by their estimations, should come in two-three years. Under forecasts of the Vseukrainsky advertising coalition, this year on advertising on the Internet it will be spent $19 million Other market participants evaluate its volumes in $17-24 million

Primary factor of growth of volumes of the market of Internet advertising is constantly increasing level of penetration of the Internet. For last year, it agree todata Bigmir-Internet, the month audience uaneta has grown on 3,3 million users, or on 73 %, having reached a 7,77 million point For I half-year the quantity of users, by company estimations, has increased by a half-million the person. Approximately with the same figures other market participants evaluating quantity of the Ukrainian Internet users on the beginning of autumn within 8-8,5 million of persons operate also. But thus volumes of the market of Internet advertising grow advancing rates. According to the Vseukrainsky advertising coalition (VRK), for 2007 its volume has doubled and has made $12 million Despite so modest figures, Internet advertising has appeared the most fast-growing segment of the domestic advertising market which has increased by third – to $1,84 billion

However, experts sceptically enough concern the given indicators. «Having such low base, it is easy enough to show such rates», – the director for agency "Korteks" researches (Publicis Group Ukraine) Alexey Bakun speaks. As he said, the domestic industry of Internet advertising should work well still as the Internet share in aggregate profits from advertising is still scanty (hardly more than 0,5 %).

Besides quantitative growth the Ukrainian Internet has demonstrated also qualitative changes. In particular, speed of access as low level of penetration of high-speed access forces providers to invest more actively in the networks has increased. Thanks to it, under agency forecasts «Komnyus Ukraine», in the current year the quantity of subscribers of broadband access will increase by 150 % – to 1,35 million Accordingly, the quantity of the consumed traffic grows, and the content gradually becomes "more heavy".

Money in a context

If in 2006 the segment of contextual advertising, by estimations of experts, has made $1 million for last year he has grown three times. Taking into consideration this tendency, VRK in the reports has allocated a segment of contextual advertising with separate line.

Contextual advertising has appeared what small business very required. Advertisers receive the clear and effective mechanism of advancement of the goods and services, and the input threshold in an advertising campaign is at level of $5. Thanks to it more and more businessmen presume to itself that was not accessible to them earlier – to become the advertiser. Having convinced of efficiency of this marketing tool, they will increase the budgets, sellers of "context" are assured. «People who now pay on $100-150, in a close of the year will pay on $300-500», – the director of the company «the Runner Ukraine» Alexander Derkach speaks. It does not hide pleasure from last year’s successes: in 2007 business of its company has grown four times. But dealers "context" assure – demand for their services will not be limited to small and average business. «Simply large companies will come little bit later», – mister Derkach is convinced.

Besides «the Runner Ukraine» contextual service in the Ukrainian market is offered by four more companies. Like all advancing markets, here too does not do without shift of forces. Same "Runner" in July has been acquired by company Google which thus has strengthened the items not only in the Russian market. But contextual systems of the companies while work separately.

But in the middle of summer Bigmir-Internet has refused to support system AdSearch. Having apologised before clients for inconveniences, the company has suggested them to take advantage of similar service from Google – Adwords, – becoming thus the official seller of this service in Ukraine. As before on the portal bigmir.net the company used search of "Yandex" and its service «Yandex. Direkt», it is possible to consider the given event as a certain loss by Russians of the items in favour of Google.

However, according to the director of Internet agency UaMaster Evgenie Shevchenko, it is not so significant loss. «The share of search Bigmir for one and a half year has fallen about 8 % to less than 2 %, therefore ґ Yandex ґ has not lost» much, – he speaks.

Despite the fact that what precisely to evaluate shares of players in the market undertakes nobody (not all companies open the indicators), the lion’s share nevertheless take away to "Yandex" which follows Google with "Runner", and behind them – "Meta". One more system – Context. Holder Internet agencies "Mi-6" – while works only on portal I.ua. However, unlike AdSearch, it is not going to terminate work. On the contrary, according to the manager on marketing "Mi-6" Andrey Garkavljuka, the agency plans to be beyond a portal and thus to make a worthy competitiveness to other players of the market.

However between contextual systems representatives of the companies prefer not to speak about a competitiveness. Now it is a question of development of the market by common efforts, mister Derkach marks. «At us audiences of services are not crossed. If all audience it is necessary to come and to one service, and to the second» is necessary, – he explains.

Specificity of this business is that, that here competitors are advertisers. «Who uses the mechanism of contextual advertising is better, that and will receive the biggest return of investments», – Evgenie Shevchenko speaks. Also reminds: advertisers should take advantage of services of Internet agencies which will more effectively conduct campaigns, let and for commissions. «As pricing with payment for transition under the reference is based on auction principles, and all will want to place the announcements on more advantage-grounds will grow in due course and the prices», – it ascertains.

In the current year to contextual advertising prophesy the same success. Under forecasts VRK, 2008 will bring to the market $6 million But some sellers optimistically suppose, that all together will earn on one million more. And in two-three years contextual advertising under incomes will be compared with media, confirm in company "Meta".

Transparent problems

Despite successes of contextual advertising, media while brings more money. This year, according to VRK, earnings in this sector should make $13 million

But representatives of the companies are assured, that at all perspectivity the market still receives less incomes: according to the director for marketing of Internet company "Meta" of Alexey Chuksina, at least $2 million last year. «This year this figure can be around $5 million», – he speaks. In its opinion, the main reason of it is the unwillingness of the large companies of a FMCG-segment to allocate significant budgets on advertising on the Internet.

Mister Chuksin cites as an example the next Poland where the FMCG-companies are leaders on volume of budgets on Internet advertising, and in Ukraine they do not enter even into the first five.

And if the mechanism of work and efficiency of contextual advertising by all are clear, banner advertising in this plan still lags behind. The basic trouble of media advertising experts name its opacity, meaning under it set of factors. And main from them – that the market is not investigated till now. Representatives of Internet agencies and have not learnt to explain to the advertisers, what audience sees their advertising. Furthermore the companies use different standards of the reporting, that hinders work with customers even more.

«While players do not know how accurately to explain, why and on what money has been spent. It is not known, the housewife came on this or that resource or the quantity of visitings has been wound by the metre of the enterprising holder of advertising agency», – Alexey Bakun from «Korteks» explains. Also supplements: «Nesformirovannost game rules often leads to opaque relations between the advertiser and agency». Easier speaking, such situation involves fans of recoils.

Representatives of Internet business were going to solve these problems, having created in the autumn Association of the Ukrainian Internet advertising (AUIR). It, according to its founders, marks a new stage of development uaneta. «While it is not clear, that from this leaves, but, perhaps, it is the first serious attempt to unite», – the general director of company "Yandex-Ukraine" Sergey Petrenko makes comments.

First of all the association has undertaken studying of the Ukrainian Internet users. For this purpose she carries out the tender for the first research and next year plans to have the first data.

Results of regular independent research not only will allow to raise trust to the Internet as to media, mister Chuksin considers. «It also will give the chance to plan advertising campaigns in the same format to which the advertiser has got used, placing TV spots or in a press», – he marks. As a result it will allow to involve in an advertisement positioning on the Internet of all who avoided it till now.

Internet advertisement makers assign special hopes to the FMCG-companies which as experiment only start to allocate the small sums for promotion in a network. President AUIR Dmitry Bondarenko hopes, that efforts of association will increase costs of the companies for advertising on the Internet in times. «It would be ideal to speak at least about 2 % next year, and the potential volume in Ukraine can make 5 % and more», – mister Bondarenko argues.

Though some market participants do not exclude also difficulties which AUIR can face in the undertaking. According to chief executive VRK Maxim Lazebnika, research works can appear the expensive for the industry. «If on TV to pay some millions a year for the contract habitually for the Internet it is very heavy money», – he speaks.

One more uneasy problem will convince players of the market to accept results of research. «It is necessary, that use of this technique has still proved the efficiency, and it is a question not one month», – the director of Internet agency "Mi-6" Maxim Homutin confirms.

But in association while trust in the undertaking. Especially, as its participants consider, under incomes they take the big half of market – about 60 %. And in the near future expect joining and other companies.

In any case of boom of business on the Internet not to pass, mister Bondarenko considers. For this purpose the quantity of Internet users should reach critical weight. «By this moment there should be a tool, and also all the accepted information on socially-demographic indicators, – it predicts. – such splash, I think, will occur till 2010».

Players do not exclude occurrence by then new players who will strengthen a competitiveness. Market participants prepare for it and develop new tools of competition. For example, agency "Mi-6" has started the the Internet-video advertising and has passed to dynamic placing of banner advertising. A payment for quantity of displays, instead of the placing period, other portals, for example "Meta" and Bigmir take also. «It will allow to optimise budgets of clients and to increase efficiency of campaigns, and in the long term – and the income from a site», – mister Homutin speaks.