Ernst & Young considers Russia one of the most promising markets for online media
A recent study by Ernst & Young shows that the emerging markets of China, India, Mexico and Russia are becoming increasingly attractive in terms of development and investment in online business, according to TechCrunch.
Why? The answer is simple. In these four countries, the number of subscribers connected to the network is still actively growing, but up to 100% of the connection’s penetration into all homes, offices and telephones is far away.
An analytical report from Ernst & Young predicts an increase in broadband connections to 2 billion in developing countries and a doubling of the number of mobile connections by 2018.
In China, the fastest market of all four, 500 million wireless broadband connections are expected by 2016 (one could say that this should be the number of individuals, not households connected to the Network), with a total population of 1.36 billion.
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At the same time, regulatory domestic measures do not allow the largest global companies to enter the Chinese market: Facebook and Google only prove this example by trying to operate on the Chinese Internet market and are constantly under pressure from government agencies of the PRC.
For example, Google Play is not available in China. This stimulates the development and growth of alternative software stores, and even Chinese developers cannot promote applications in the domestic market - only on external ones.
India is a completely different example. There is almost no broadband Internet, but cheap smartphones and poor connectivity are flourishing. Telecommunication companies are gradually introducing a new generation network, but Ernst & Young analysts do not expect a quick increase in profits from services and advertising in India, and the local market will reach a turnover of $ 1 billion only next year. Compare this with the current $ 23 billion Chinese advertising market.
On the other hand, in India, by 2016 there will be 300 million mobile users, and by 2020 this country will be the youngest in terms of the average user - 29 years. This means that the long-term prospects are more than bright, because the population is “younger”, and the one who is young actively consumes.
As for Russia, in our country, analysts point out a higher percentage of connections (87% of broadband connections and 50% of mobile connections), but, like in China, we have built a large number of regulations that do not allow advanced companies to easily enter the market. Of all the countries in the ranking, we have the lowest value of “political stability” and the highest “digital piracy”.
The recently adopted law, which does not allow foreigners to own packages of more than 20% in national media, says that by 2017 many Western companies will simply leave our market. Who will come in their place and in what configuration - is not yet clear.
As for Mexico, there is also a difficult national situation, in which “corruption practices and the perception of bribes” are noted separately. At the same time, the mobile connection penetration is only 21%, which is much lower than other countries in the Latin region - Argentina and Brazil. At the same time, Mexico has a fantastic level of spending per user: $ 11,000 (this is a lifetime value).
Why? The answer is simple. In these four countries, the number of subscribers connected to the network is still actively growing, but up to 100% of the connection’s penetration into all homes, offices and telephones is far away.
An analytical report from Ernst & Young predicts an increase in broadband connections to 2 billion in developing countries and a doubling of the number of mobile connections by 2018.
In China, the fastest market of all four, 500 million wireless broadband connections are expected by 2016 (one could say that this should be the number of individuals, not households connected to the Network), with a total population of 1.36 billion.
')
At the same time, regulatory domestic measures do not allow the largest global companies to enter the Chinese market: Facebook and Google only prove this example by trying to operate on the Chinese Internet market and are constantly under pressure from government agencies of the PRC.
For example, Google Play is not available in China. This stimulates the development and growth of alternative software stores, and even Chinese developers cannot promote applications in the domestic market - only on external ones.
India is a completely different example. There is almost no broadband Internet, but cheap smartphones and poor connectivity are flourishing. Telecommunication companies are gradually introducing a new generation network, but Ernst & Young analysts do not expect a quick increase in profits from services and advertising in India, and the local market will reach a turnover of $ 1 billion only next year. Compare this with the current $ 23 billion Chinese advertising market.
On the other hand, in India, by 2016 there will be 300 million mobile users, and by 2020 this country will be the youngest in terms of the average user - 29 years. This means that the long-term prospects are more than bright, because the population is “younger”, and the one who is young actively consumes.
As for Russia, in our country, analysts point out a higher percentage of connections (87% of broadband connections and 50% of mobile connections), but, like in China, we have built a large number of regulations that do not allow advanced companies to easily enter the market. Of all the countries in the ranking, we have the lowest value of “political stability” and the highest “digital piracy”.
The recently adopted law, which does not allow foreigners to own packages of more than 20% in national media, says that by 2017 many Western companies will simply leave our market. Who will come in their place and in what configuration - is not yet clear.
As for Mexico, there is also a difficult national situation, in which “corruption practices and the perception of bribes” are noted separately. At the same time, the mobile connection penetration is only 21%, which is much lower than other countries in the Latin region - Argentina and Brazil. At the same time, Mexico has a fantastic level of spending per user: $ 11,000 (this is a lifetime value).
Source: https://habr.com/ru/post/285856/
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