Ukraine - Ad Network & Internet business

The state of development of the Internet in Ukraine and in the world;



Place Internet & Ad Networks in the information space of Ukraine According to the Law of Ukraine "On the main measures for the development of the information society in Ukraine for 2007-2015", one of the main priorities of the development of the national segment of the Internet network is the construction of a people-centered, open for all, and aimed at the development of an information society in which everyone could create and accumulate information and knowledge, to have free access to them, to use and exchange them, to give every person the opportunity to fully realize his potential, to promote social development, improve the quality of life. Thus, the national segment of the Internet in Ukraine becomes a necessary step for joining the Unified World Information Space. The Internet Association of Ukraine (InAU, http://www.inau.org.ua/) acts on the part of providers and other Internet market participants.

The number of Ukrainian segment of the Internet in July 2010, according to the data bigmir.net, reached more than 16.7 million unique users per month. According to other data, the level of coverage of the population of Ukraine by the Internet is more than 33%, which is one of the lowest rates in Europe. Nevertheless, Ukraine ranks 9th among the countries of Europe by the number of Internet users (Table 1.1).

Ukrainian Internet consumers account for more than 3.2% of all Internet users in Europe. According to bigmir.net statistics, 40% of this number of users have their own access to the Internet or constantly use the services of the Internet. Of these, almost 55% falls on the Kyiv region (Kyiv and Kyiv region). More than 30% of users belong to major cities and regions of Ukraine, such as Odessa, Donetsk, Kharkiv, Lviv, Crimea, Lugansk.


Comparison of Internet usage in European countries
Europe Population ( for 2009 ) Number of Internet users Coverage (% of population) Growth rates (2000-2010) Percentage of users in Europe
1 2 3 4 5 6
Germany 82,282,988 65,123,800 79.10% 171.30% 13.70%
Russia 139,390,205 59,700,000 42.80% 1825.80% 12.60%
UK 62,348,447 51,442,100 82.50% 234.00% 10.80%
France 64,768,389 44,625,300 68.90% 425.00% 9.40%
Turkey 77,804,122 35,000,000 45.00% 1650.00% 7.40%
Italy 58,090,681 30,026,400 51.70% 127.50% 6.30%
Spain 46,505,963 29,093,984 62.60% 440.00% 6.10%
Poland 38,463,689 22,450,600 58.40% 701.80% 4.70%
Ukraine 45,415,596 15,300,000 33.70% 7550.00% 3.20%
Netherlands 16,783,092 14,872,200 88.60% 281.30% 3.10%
Sweden 9,074,055 8,397,900 92.50% 107.50% 1.80%
Belgium 10,423,493 8,113,200 77.80% 305.70% 1.70%
Romania 21,959,278 7,786,700 35.50% 873.30% 1.60%
Czech Republic 10,201,707 6,680,800 65.50% 568.10% 1.40%
Hungary 9,992,339 6,176,400 61.80% 763.80% 1.30%
Austria 8,214,160 6,143,600 74.80% 192.60% 1.30%
Switzerland 7,623,438 5,739,300 75.30% 168.90% 1.20%
Portugal 10,735,765 5,168,800 48.10% 106.80% 1.10%
Greece 10,749,943 4,970,700 46.20% 397.10% 1.00%
Denmark 5,515,575 4,750,500 86.10% 143.60% 1.00%
Finland 5,255,695 4,480,900 85.30% 132.50% 0.90%
Belarus 9,612,632 4,436,800 46.20% 2364.90% 0.90%
Norway 4,676,305 4,431,100 94.80% 101.40% 0.90%
Lithuania 3,545,319 2,103,471 59.30% 834.90% 0.40%
Latvia 2,217,969 1,503,400 67.80% 902,3% 0.30%
Estonia 1,291,170 969,700 75.10% 164.50% 0.20%
Total 803,850,858 425,773,571 53.00% 305.10% 100.00%




Advertising Model:
The advertising model on the Internet has grown from the traditional model of media broadcasting. The translators in this case are websites that provide content and services, combined with banner ads. Banner ads may be the only source of revenue for a broadcaster. A broadcaster may be a content creator or distributor of content created elsewhere. The ad model works better if visitors traffic is large or highly specialized. The Advertising Model includes:
  • - Portal - serves as the "point of entry" of users, an Internet resource, which brings together a huge number of different content and services. A large number of visitors makes advertising profitable and allows further development of portal services. The vertical portal is clearly targeted to a specific social or geographic audience of visitors;
  • - Query-based Paid Placement-Contextual and search advertising - sales of promotional links (ie sponsored links), or ads that match specific keywords in user queries, as well as a paid registration model (for example, google in the AdWords system). com, advertising Yandex.Direct);
  • - Behavioral Advertising (Contextual Advertising / Behavioral Marketing) - is used by developers of freely distributed software that embeds in their programs promotional inserts. Another example is browser extensions that can auto-identify and fill forms, as well as programs that remove advertising links or pop-ups when surfing the user online. Contextual advertising agencies can sell targeted ads based on individual user activity during surfing;
  • - Content-Targeted Advertising is the direct founder of Google, which has expanded targeted search advertising to the rest of the Internet. Google determines the semantic content of the web page and then automatically publishes the relevant advertisement when the visitor visits this page (the Google AdWords system);
  • - Intramercial (Intromercials) is an animated full-screen advertisement that is placed at the site entrance, before the content of the site is accessible to the visitor;
  • - Ultramercials - an interactive advertisement that requires a visitor to periodically respond in a certain way so that he can get access to the content he needs.

Examples of implementing an advertising model are known horizontal Internet portals: yahoo.com, msn.com, i.ua, mail.ru, rambler.ru, bigmir.net, etc.

Infomedia Model: 
Consumer data and their purchasing preferences are highly valued, especially when this information is thoroughly analyzed and used by targeted advertising companies. Independent collection of data on producers, suppliers and their products is useful for consumers in planning purchases. Some firms operate as information brokers. They serve buyers or sellers, providing information about a particular market. This model includes the following business categories on the Internet:
  • - Advertising Networks (Advertising Networks) - provide a banner advertising network of participants' sites, which allows large scale marketing companies. Ad networks collect data about web users that can be used to analyze marketing effectiveness (in Ukraine - bigbn.com.ua, abn-ad.com, banner.mytop-in.net, banner.kiev.ua,);
  • - Audience Measurement Services - an online market research agency (Internet company alexa.com, in Ukraine - gemius.com.ua);
  • Incentive Marketing - consumer loyalty programs that provide incentives for consumers, such as coupons or coupons for purchasing from their intermediaries. Gathering data about the users who made purchases, is carried out for carrying out targeted promotions;
  • - Metamediary - facilitates transactions between sellers and buyers by providing comprehensive information and additional services, excluding the natural barter of goods and services between the parties.


Affiliate Model: 
Together with a regular portal that generates a large amount of traffic on one site, the partner model provides the ability to make purchases anywhere, where buyers can be. This is achieved through financial incentives (in the form of a percentage of revenue) of the owners of partner sites. Partners provide trader to buyers. This is a pay-per-action model - if the partner does not generate sales, then the merchant does not pay anything. The affiliate model is well suited for the Internet, which explains its popularity. Modifications present are banner exchange programs, pay per click and revenue sharing.
  • - Banner Exchange (Banner Exchange) - trade in placing banner ads among the network of partner sites;
  • - Pay-Per-Click (PPC) - a site paid by partners for their visitors' referrals (questionable earnings but still exists, for example: netklix.com);
  • - Revenue Sharing - Sales commission offers, depending on the number of visits from partner sites (top-shop.ru, shop.bigmir.net).

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