Analysis of the Internet marketing market in Ukraine.
The article will be of interest to consumers of Internet marketing services, marketers and Internet marketers, managers and employees of Internet agencies and everyone who is simply interested in online promotion, regardless of where you are: Ukraine, Russia, Belarus or another country.
The article contains an analysis of the proposals of the Internet agencies of Ukraine, recommendations on what I would like to see in the proposals and analysis of the main mistakes.
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Not without mentioning Habr :)
Introductory word
Most recently, our company researched the website development market and the SEO market in Ukraine, mainly with the aim of increasing the competitiveness of our Internet Sales Technologies Internet agency and improving the quality of services in this area. Now the turn has come to another interesting area of ​​our activity: Internet marketing in Ukraine.
This time we decided to do only market analytics, without a rating of Internet agencies (of course, we did the rating of Internet agencies of Ukraine, but only for ourselves, and next year we will conduct a marketing research and build an objective rating of Internet agencies, which we will show everyone wishing). This is due to the fact that our past ratings have turned out to be interesting, but subjective.
Our study was conducted under the guise of a client: we found the largest Internet agencies in Ukraine and set the task of promoting the brand in order to find out what and how market participants offer today.
What do agencies offer today?
Unfortunately, our agencies are rather weak with imagination, everyone offers mostly proven three tools: contextual advertising, banner advertising and promotion in search engines (SEO). At least the biggest players.
This is understandable for several reasons:
- For a start, these tools are proven: banner advertising is great for creating brand awareness, contextual advertising instantly increases sales when used properly, promotion in search engines also increases sales, but not instantly, unlike contextual advertising. All tools for many years, and they have repeatedly proved their effectiveness.
- The second important reason, oddly enough, is money. These 3 budget instruments are the largest in the share of client spending on the Internet, and the agency, as you know, has a profit proportional to the budgets of clients: the larger the client’s budget, the greater the agency’s income.
- The third reason is the high demand for Internet marketing services: the industry is growing at a tremendous pace, it has grown by 100% per year or more before the crisis, now, while there is a recession everywhere, there is still rapid growth. There are few specialists and many clients: the agency chooses with whom to work, and whom to refuse, and our research only confirmed this. It is natural to do two things at once difficult: to count the profits and think about the client !? No, first we count the profit, and we will think about the clients later, if time remains.
In the analysis, all of the above reasons were confirmed. Almost all offered only these three tools, to the question: “And what else can you offer?” Everyone answered unwillingly and convinced that it was better to work only in these 3 areas. Almost all the major players immediately said: “We work from the N $ budget, we are less interested”, and when we announced the budget with five zeros (UAH) and said that we can walk to six zeros if we like it - the attitude changed immediately. And, perhaps, the most interesting: we received 3 refusals from various Internet agencies at the request stage because they immediately said that they turned to several companies and will work with those who will make the best offer! The answers to this were also interesting: one company said that it did not intend to “waste their time” and compete with other agencies, while the other advised them to contact competitors and gave their names!
Another surprising fact is that only one company from the major players did something similar to the strategy, writing step by step what, when and with what purpose it will be done to achieve our goal. All the others probably forgot that you first need to work out a goal, then come up with a strategy, and only then proceed with the tactics (choice of promotion channels and media planning).
Now in more detail for each instrument that we were offered:
- Contextual advertising. Internet agencies have no problems with this. The tool is simple, there are many support programs and services that will help you select the most popular keywords, automatically calculate the monthly budget, show statistics (how many queries for selected keywords, how many clicks are expected per day, what cost per day for each word and tons .d.) The same tools automate the management of an advertising campaign: you only need to set up once in a couple of hours and devote a little time to monitoring every day.
Suggestions for contextual advertising, we received usually in the exel table, with a bunch of information on each contextual advertising system and even a single word. They offered four systems: first of all, Google AdWords and Yandex.Direct, rarely offered Runner and Meta Context, and Internet agency MI [6], without hesitating, also offered its contextual advertising system on its portal i.ua (but the budget was distributed fairly wherein).
Prices for contextual advertising are constructed as follows: budget + agency commission (from 5 to 25% depending on the contextual advertising system and agency). We will not hide the fact that Google does not give discounts to advertising agencies, therefore, this system is usually the largest commission, Yandex gives the agency a 10% discount, but often the agency takes about 5-10% more, the Runner gives 10-30% (the discount depends on agency volumes in general).
In terms of efficiency, Google is in first place for Google AdWords, if only because Google is the most popular search engine in our country, Yandex.Direct follows it, and all other systems are far behind in this important indicator.
- Banner advertising. With this tool, things are a little worse than contextual advertising, but there are no special problems. The main thing: to choose the right platforms, formats for advertising and remember about the goal of the client. But, unfortunately, not all Internet agencies remember the goal of the client and its target audience: there were offers that were far from our goal, but at the same time with a large budget on websites that give agencies good discounts.
Proposals were sent to us also in the exel table, with a large amount of information on each site (attendance, cost of 1000 impressions, CTR forecast, etc.), many large Internet agencies tried to justify the selected sites and show us that our target audience is there .
Banner advertising prices are structured as follows: a customer comes in, advertising platforms are selected for him, then the agency calls, agrees with the site about prices and discounts for themselves (which usually range from 10 to 50% of the price price) and then offers the customer the cost of placement , usually leaving from 10 to 20% of the cost. The scheme is standard in the advertising business and is very similar to advertising in other media.
All agencies offer the development of banners for advertising, but their prices are not very small, probably, many of them are reordered in design studios.
It is better to give the selection of sites to the agency, after all, people with experience work there and know where to place effectively. But, unfortunately, you cannot fully trust: the realities of our market are such that several of the largest agencies are owners of advertising sites and will push through them in the proposal, knowing in advance that there are options that are more effective for the client, but less profitable for the agency.
- Promotion in search engines (SEO). It's all sad. As we already wrote in the review of the SEO market, a significant share of the market in this area belongs to Internet agencies, but they do not have their own specialists and outbid the services either from specialized companies or from freelancers. All this often leads to: unprofessional counseling of the client and misleads him, a significant (sometimes multiple) increase in the real cost of the service, the absence of any guarantees, etc.
Although, in our analysis, one agency came across, which more or less correctly filed this tool and offered guarantees, but the price was still too high.
The only ray of light in this tool is presentations: almost all Internet agencies have them, and they perfectly describe what a terrible beast this “SEO” is and what it is for.
- Other tools. The market of Internet marketing is growing and developing very quickly, constantly emerging new features and tools. And besides the top three of the most popular tools, there are still other tools, we cannot be said that they offered, rather, we pulled out offers, but formally the services of Internet agencies in Ukraine are not limited to the context, banners and SEO, there is also advertising on blogs and social networks, viral marketing, etc.
Basically, we were offered work with social networks and viral marketing, some said that these were effective tools, others dissuaded others, but as a result of intelligible proposals in this area we did not hear.
The result is obvious: there is a market, there are customers, there are offers, but all of this needs significant development and improvement, which is lower.
What do you want to see?
And I want to see - efficiency! That the agency helped to achieve the goal of the client at the lowest cost.
We believe that any proposal for integrated brand promotion on the Internet should begin with a strategy, at least a small one (at the request stage it is not advisable to write a full-fledged strategy for free, but it is worth developing a small document that will describe step by step how you intend to achieve the client’s goal) written by a customer service manager and internet marketer. This simple move will immediately allow you to move in the right direction and as a result will make the client satisfied.
When you have decided on a strategy, you can move on to tactics, to tools, they should also be immediately included in the proposal. And not only 3 basic, but also to look towards other tools, such as:
- Advertising on blogs and social networks. Communication with consumers through social networks. Creation of corporate blogs both on the corporate website and on popular free platforms: LiveJournal , VKontakte , Twitter , PROFEO , etc., leading discussions in professional circles, disseminating information about the company, etc. Example: our corporate group in PROFEO - at the time of this writing, there are only 146 people in the group, 11 topics, 174 messages, a lot of interesting people, pleasant communication, several potential customers almost immediately after the group was opened.
- Viral marketing. Creating a so-called "viral carrier" - information with an advertising message, which is so interesting that people themselves begin to transmit it to each other via email, messengers, social networks and other means of communication. Example: Contest iCondom Condom Advertising .
- PR on the Internet. Purposeful communication with consumers on the Internet. The concept is rarely used and often overlaps with advertising on social networks, but it is not limited to this. There is also: communication with online media and journalists, the organization of special events, the dissemination of information about the company on the Internet, etc. Example: publication of author articles on behalf of a company in the largest industry media
- Branding online. Like PR, the concept of branding on the Internet is rarely used, but it exists. This purposeful creation of brand recognition on the Internet and linking certain associations to it. Example: the thematic social network Habrahabr (www.habrahabr.ru), which has acquired a whole cult: all concepts are used with the root “Habr” (habrouser, zababrit, sit on Habré), almost all “itishniki” (and not only they) know this network and constantly communicate there - a great idea for developers, which has turned into a popular brand
- Email marketing. It is important to understand that this is NOT SPAM, namely marketing. Everyone knows that spammers need ******* (the number of stars, in proportion to the number of letters in the word, which clearly describes what needs to be done with them). Here I mean personalized, manual mailing of letters to potential partners. Example: for printing, which deals with printing, including advertising materials, we send personalized letters with a proposal for cooperation to city advertising agencies - such a simple move can increase the printing turnover several times.
- Other tools. Naturally, there are many more advertising tools on the Internet, besides those listed, however, they are not suitable for everyone, among them: advertising in games and online worlds, video advertising on the network, non-standard advertising, etc.
Common Internet Agency Mistakes
In general, a lot of mistakes, and often they are quite ridiculous. But briefly analyze the main ones:
- Incorrect communication. The most common mistake is due to the fact that the market is still too young. Very often they communicate with the client without elementary politeness, they may delay the response for a week without explanation or not answer at all, they do not at all think that the client may not know professional terms and concepts, etc.
- Incorrect advertising space or words. Another common mistake is the wrong selection of sites and words for an advertising company, as a result, the client spends money, and sales do not grow or grow slowly - many internet agencies now make this mistake and, often, clients who come to the agency with their requirements. If sales do not grow, this is a sure sign that it is necessary to change either the strategy and tactics of the advertising company or the agency.
- Lack of strategy. As we wrote above, this is also a common mistake and it means only one thing - the advertising budget is not spent as efficiently as it could.
- Use not all tools. The restriction of the advertising company only traditional tools: context, banners and SEO - this error means that not all efficiency is extracted from the Internet, as from a channel of communication with consumers.
- Bad service. Not at all, but bad service is often encountered, ranging from direct refusals and ending with the wrong advice on certain tools, such as, for example, SEO.
Summarize:
The Internet marketing market in Ukraine is still underdeveloped, but there are already strong players on it, such as MI [6], MEDIACOM, UaMaster, MediaEffect and others, as well as relatively new, but promising Internet agencies like Internet Sales Technologies or COXO.
Many players, unfortunately, are chasing budgets, not efficiency for the client. But gradually the market will correct this mistake and become more civilized. It was not without statements by several players that they are "the best" or "first."
The original article here:
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Author:Nikita Semenov (
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CEO
SECL GROUP / Internet Sales Technologies