MEDIA BUYING
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In 2024, Internet trade in Russia saw a remarkable growth of 39% over the previous year, reaching 1.9 trillion rubles. A striking 97% of these transactions took place on Russian websites, while just 3% involved foreign internet platforms.
It is crucial for businesses to analyze consumer performance on the Internet. In the digital era, understanding how and why users make purchasing decisions allows companies to develop more effective marketing and sales strategies.
In this article, we will analyze Russian Internet users’ behavior in 2024 and provide relevant research data.
The number of Internet users in Russia is growing every year. At the beginning of 2024, the Internet audience reached 130.4 million people, a 7% increase over 2023. As for the age composition of the audience, the fastest growth is observed among people aged 25 to 34, who account for about 40% of all Internet users.
Along with the audience of Internet users, the online shopping market is growing. The online shopping market is growing, and so is the audience of internet users. In 2023, 56% of purchases were made online. The remaining 44% were made offline. Furthermore, the vast majority of consumers prefer to make their purchases on online marketplaces. They account for 81% of all online orders.
In 2023, there was a significant increase in the speed of order delivery. Today’s consumer has no patience and is willing to pay more for a delivery within a couple of days of payment. In 2024, this trend will continue. Buyers will choose sellers who deliver goods faster.
Growth dynamics of the Russian market of storage and delivery services via online stores
Russia's largest online retailer Wildberries continues to lead the market with more than 343 million visitors per month and sales exceeding 2.5 trillion roubles for 2023.
Ozon's marketplace is also experiencing exponential growth. In the first three months of 2024, it increased its total merchandise turnover (GMV) by 88%, reaching a size of 570 billion rubles. Ozon is investing in infrastructure and logistics development to expand its influence in the regions and beyond. The number of active buyers increased by 43% in 2023, reaching 49 million. Customer loyalty is on the rise. The number of completed orders amounted to 305 million last year, a 70% increase over the previous year.
Another major marketplace Yandex.Market demonstrates similar dynamics. In the report for the first quarter of 2024, the number of active buyers of the service grew by 22%, which also confirms the increased popularity of the platform among Russian consumers.
In general, there is a trend of buyers leaving direct sales channels for marketplaces. The reason is more attractive prices, installments, and convenient logistics. The buyer is sure that he will receive the order, and if something is wrong, he can make a return. The buyer knows that he will find exactly what he needs and knows in advance the terms of delivery. The reason for the large selection of goods in marketplaces is the sellers - they, not the marketplaces, constantly stimulate the market to grow.
Clothing and footwear, electronics, home goods, cosmetics, and food remain the most popular product categories online. Alcohol, flowers, and large household appliances are the least frequently ordered through online stores.
At the same time, people are making more purchases, but spending less on each one. In the wake of the pandemic and the imposition of sanctions, consumers have become more rational in their spending and have been saving money where possible. This led to the development of installment services from sellers.
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For example, the Dolami service has appeared. The price of the goods is divided into four equal parts. You pay 25% upfront, then 25% two weeks later, and so on. It is, in fact, an installment plan, as there is no additional interest in using the service. It can be used for purchases up to 30,000 rubles. The service works with online and offline stores selling cosmetics, clothing, footwear, household and children's goods.
Payment in installments offer for the purchase of goods on the Lamoda marketplace
Despite the sanctions and the withdrawal of many foreign brands from Russia, the business community has demonstrated an ability to adapt quickly to the changed political environment. For example, the well-known Zara brand is not available for direct purchase, but can instead be ordered through an intermediary company. A Russian buyer can select their preferred items from the company's American or European online stores, with all subsequent processes, including ordering, payment, and delivery, handled by intermediaries. They purchase and deliver the selected items to a consumer in Russia, charging a service fee of approximately 10% of the total order cost.
A survey conducted by Yandex Market revealed that approximately 70% of buyers have made at least one annual bank card purchase. This payment format is the most prevalent.
Just over 40% of customers opted to pay by card upon receipt.
The most prevalent method of delivery is self-collection from a store or designated delivery point. This method was utilized by nearly 80% of buyers at least once a year. The next most popular methods of receiving goods are delivery by Russian Post (35%) and via courier (30%).
The primary factors that influence consumer decisions regarding goods and services remain price, reviews, and the convenience of delivery. For instance, Ozon employs reviews as a sales-boosting strategy. Marketplace statistics indicate that goods with 10 reviews are ordered 30-40% more often, and those with 100 reviews, are twice as often. Orders increase threefold when there are more than 1,000 reviews.
The results of surveys indicate that 45% of buyers are influenced by negative reviews when making purchasing decisions, leading them to choose a different product instead. Furthermore, 44% of consumers are influenced by price differences. Thirty-one percent of buyers will not place an order with a seller who has received a low rating. Additionally, 26% of respondents indicated that a comprehensive product description on the product card is a key factor in their purchasing decision.
With regard to reviews, it is important to consider the impact of social networks. Approximately 45% of Russians make purchasing decisions based on reviews on social networks. To promote their products, companies create brand pages, publish promotional posts, and hold contests for subscribers.
Car giveaway from Cooper's delivery service in VK
All contemporary promotional channels are now utilizing video content as a means of attracting customers. In order to achieve these goals, it is important to engage with well-known bloggers. They publish reviews and unboxings of products, providing insight into their experience of using them. Subscribers give feedback on these videos, sharing their impressions and recommending the product to others. Furthermore, the placement of video content with bloggers on social networks with a high user base - VK, YouTube, Telegram, Odnoklassniki, Instagram*, and others - is an effective strategy. We have prepared a detailed guide on the specific aspects of social media marketing for brands, including comprehensive insights on effective promotion strategies.
Video review of iPhone15 & iPhone15 Plus by YouTube blogger Wyslacom
Please, follow the link if blogger influence interests you more than other factors.
Another key strategy for customer acquisition is paid ads in search networks. Guided by user requests, the network provides information about the characteristics, prices, ratings, reviews, and other features of the product in real time. This allows customers to swiftly evaluate all available options and identify the most suitable seller.
In Russia, the dominant search network is Yandex, which enables the use of search results, media advertising, posts on Telegram, and, more recently, the promotion of goods from marketplaces to build brand awareness. The functionality of the Yandex.Direct contextual advertising service is extensive. It is also important to note that paid advertising has a significant impact on a more "warm" audience, who are already interested in the category of goods or specific products. Yandex algorithms enable the display of ads to such users in various formats and on disparate sites, thereby enhancing the likelihood of a purchase.
Media advertising on the Yandex.Weather service
While this article focuses on digital tools, we will briefly address TV. It is worth noting that TV and digital advertising are both effective channels for influencing audiences. It is becoming increasingly clear that a digital TV approach to brand promotion is a relevant and effective strategy. These include online movie theater advertising and CTV, whose formats are more targeted. For further details on this topic in the Russian market, please refer to our materials, "Exploring CTV (Connected TV) Advertising in Russia. Captivate the Connected Audience" and "Russian Online Cinemas as an Effective Platform for Advertisers."
The online behavior of Russians in 2024 is evolving, with a notable shift towards a more active use of digital technologies. The growth of the internet audience using mobile devices, the popularity of social and e-commerce platforms, and the influence of reviews, ratings, and video content from bloggers are key trends that brands must consider to engage with customers successfully. The functionality is extensive, but regardless of the chosen strategy, a personalized approach is essential to maximize the impact on potential customers.
The RMAA team provides assistance to foreign companies operating in Russia and the CIS. Based on our research, analytics, and experience, we can help you develop and implement a strategy to promote your brand. To discuss the specifics, please contact our manager by filling out the form provided in the contacts section. We guarantee prompt feedback.
For further information on the advertising market, please refer to our special industry report. To remain informed of the latest developments in marketing, please subscribe to our newsletter.
*Meta's activities are banned on the territory of the Russian Federation.
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About the Author
Digital Strategist. Head of one of the project groups at RMAA. Maria started her journey in digital marketing in 2009.
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