February 11, 2010 at 15:382009 web development market digest
Hello, Habr!
Our forces have prepared analytical material on the results of 2009 in the market for the development of Internet projects. The material turned out to be quite large, so I will give some excerpts (namely, the sections “market situation” and “development trends”) of greatest interest:
Consolidation
Almost from the very beginning of 2009, individual representatives of large and medium-sized companies began to negotiate the formation of various associations that would help protect their interests and the growth of the market as a whole. Some of these undertakings did not end in anything, and a number of initiatives were brought to their logical conclusion and received the status of key events in the industry.
The customer began to count money.
One of the most important factors that influenced the market situation in 2009 was the customer’s desire to use the money invested on the Internet with maximum return.
On the one hand, the Internet as a communication channel has grown amid other rapidly declining advertising segments.
On the other hand, in the context of austerity of budgets, the customer stopped responding to “beautiful pictures” and began to demand the achievement of final business tasks, which could not but have a positive effect on the quality of the services provided in terms of marketing and sales.
This fact helped to “thin out” the numerous lines of non-professional players, helping to increase the market share of companies aimed at achieving the goals of their customers.
Re-profiling
During the crisis, business processes and positioning of many companies were ineffective, which forced the most mobile market players to reconsider their marketing strategy and the range of products offered to the customer.
The “corporate sites” segment “sank” significantly (because for the most part they do not set accountable business tasks), the segments for developing automation systems grew (helping the customer reduce costs) and the segment for “fast” promotions (allowing for rapid growth sales). A large number of major players began to pay close attention to integrated and long-term support services and project development.
Those players who could not quickly respond to the changing environment were inevitably in a losing position.
Transparency, Entry Threshold
Despite the crisis, the threshold for entering the market remained very low. As before, any team of 2-3 freelancers with several projects in their portfolio can declare themselves to be a “web studio”. Nevertheless, it became much more difficult for such companies to survive, because the customer became more focused on achieving the final result and long-term relationships.
The emergence of new and strengthening the positions of existing supra-industry organizations capable of systematizing and analyzing the market helps to increase market transparency and gives the customer more and more tools for market orientation.
The emergence of educational programs
One cannot but rejoice at the appearance and development of an increasing number of educational programs aimed at growing qualified specialists within the industry. The fact that people from the market become teachers of such courses makes it possible to provide training in conditions as close as possible to “combat” ones.
Mergers and Acquisitions, Consolidation
In the near future, both large acquisitions of successful companies and mass unification of small companies from related segments into compact formations are expected. The trend towards market consolidation in terms of strengthening the role of supra-industry associations will be decisive in terms of market development.
The growth in demand for complex services of the
Company, which can effectively close all digital directions of its customer, will gain an advantage over competitors (including network agencies).
This statement is true for the segment of large players, in the middle segment, narrow specialization will remain an effective business model.
Strengthening the role of customer service
Customer service as a tool to keep the customer and increase the average customer check will become one of the priority areas for the development of large digital agencies. At the moment, customer service in the vast majority of companies are absent or inefficient. To build and develop these areas, the experience of related and more adult markets will be actively used, including with the involvement of qualified personnel from such companies.
Work transfer to in-house
A customer whose online business component is critical for the company and has significant weight in the total turnover (and only such a customer!) Will inevitably develop key competencies in the digital field within its structure. The formation of a team that independently closes key areas of responsibility, and a network of subcontractors in less important areas will become the most common work model in the coming years.
Development of independent consulting services
We expect an active development of services in the field of independent consulting in the market. The range of services in this segment can begin from an audit of the effectiveness of work with the current contractors of the company and end with the development of an integrated strategy for the presence of the brand on the Internet.
The growth of the share of state projects
An important trend will be the inevitable increase in the share of “honest” state projects sold at prices close to market in the portfolios of large and medium-sized market players.
Technological innovations
In the conditions of increasing competition, dynamic companies will actively borrow successful western innovative technologies, applying them in the Russian market. Already, various areas such as SaaS, communication projects in micro-blogs, augmented reality technologies, eye-tracking usability assessment systems, etc. are being actively developed.
Studios
will develop their own startups More and more companies will develop their own projects in parallel with the development of agent business, thus closing holes in the production plan, on the one hand, and hoping to get a large rate of profit, on the other.
The business of market leaders, key events of 2009, personnel transitions for the year and expert comments can be found in the full version of the material - http://2009.tagline.ru/news/digest2009.html . The material was prepared by the Tagline expert group.
Our forces have prepared analytical material on the results of 2009 in the market for the development of Internet projects. The material turned out to be quite large, so I will give some excerpts (namely, the sections “market situation” and “development trends”) of greatest interest:
Market situation:
The market volume in 2009, according to our estimates, increased compared to 2008 (recall, the market volume in 2008 was estimated at 6.8 billion rubles). There are about 4,000 players on the market (the vast majority are small companies), which makes it still very opaque. The financial crisis played a decisive role in the development of the industry in 2009, in a positive sense influencing the rate of market growth and the average quality of the services provided, as well as the effectiveness of interaction with the client.Consolidation
Almost from the very beginning of 2009, individual representatives of large and medium-sized companies began to negotiate the formation of various associations that would help protect their interests and the growth of the market as a whole. Some of these undertakings did not end in anything, and a number of initiatives were brought to their logical conclusion and received the status of key events in the industry.
The customer began to count money.
One of the most important factors that influenced the market situation in 2009 was the customer’s desire to use the money invested on the Internet with maximum return.
On the one hand, the Internet as a communication channel has grown amid other rapidly declining advertising segments.
On the other hand, in the context of austerity of budgets, the customer stopped responding to “beautiful pictures” and began to demand the achievement of final business tasks, which could not but have a positive effect on the quality of the services provided in terms of marketing and sales.
This fact helped to “thin out” the numerous lines of non-professional players, helping to increase the market share of companies aimed at achieving the goals of their customers.
Re-profiling
During the crisis, business processes and positioning of many companies were ineffective, which forced the most mobile market players to reconsider their marketing strategy and the range of products offered to the customer.
The “corporate sites” segment “sank” significantly (because for the most part they do not set accountable business tasks), the segments for developing automation systems grew (helping the customer reduce costs) and the segment for “fast” promotions (allowing for rapid growth sales). A large number of major players began to pay close attention to integrated and long-term support services and project development.
Those players who could not quickly respond to the changing environment were inevitably in a losing position.
Transparency, Entry Threshold
Despite the crisis, the threshold for entering the market remained very low. As before, any team of 2-3 freelancers with several projects in their portfolio can declare themselves to be a “web studio”. Nevertheless, it became much more difficult for such companies to survive, because the customer became more focused on achieving the final result and long-term relationships.
The emergence of new and strengthening the positions of existing supra-industry organizations capable of systematizing and analyzing the market helps to increase market transparency and gives the customer more and more tools for market orientation.
The emergence of educational programs
One cannot but rejoice at the appearance and development of an increasing number of educational programs aimed at growing qualified specialists within the industry. The fact that people from the market become teachers of such courses makes it possible to provide training in conditions as close as possible to “combat” ones.
Market Development Trends in 2009
The following key trends in market development in 2010 can be distinguished:Mergers and Acquisitions, Consolidation
In the near future, both large acquisitions of successful companies and mass unification of small companies from related segments into compact formations are expected. The trend towards market consolidation in terms of strengthening the role of supra-industry associations will be decisive in terms of market development.
The growth in demand for complex services of the
Company, which can effectively close all digital directions of its customer, will gain an advantage over competitors (including network agencies).
This statement is true for the segment of large players, in the middle segment, narrow specialization will remain an effective business model.
Strengthening the role of customer service
Customer service as a tool to keep the customer and increase the average customer check will become one of the priority areas for the development of large digital agencies. At the moment, customer service in the vast majority of companies are absent or inefficient. To build and develop these areas, the experience of related and more adult markets will be actively used, including with the involvement of qualified personnel from such companies.
Work transfer to in-house
A customer whose online business component is critical for the company and has significant weight in the total turnover (and only such a customer!) Will inevitably develop key competencies in the digital field within its structure. The formation of a team that independently closes key areas of responsibility, and a network of subcontractors in less important areas will become the most common work model in the coming years.
Development of independent consulting services
We expect an active development of services in the field of independent consulting in the market. The range of services in this segment can begin from an audit of the effectiveness of work with the current contractors of the company and end with the development of an integrated strategy for the presence of the brand on the Internet.
The growth of the share of state projects
An important trend will be the inevitable increase in the share of “honest” state projects sold at prices close to market in the portfolios of large and medium-sized market players.
Technological innovations
In the conditions of increasing competition, dynamic companies will actively borrow successful western innovative technologies, applying them in the Russian market. Already, various areas such as SaaS, communication projects in micro-blogs, augmented reality technologies, eye-tracking usability assessment systems, etc. are being actively developed.
Studios
will develop their own startups More and more companies will develop their own projects in parallel with the development of agent business, thus closing holes in the production plan, on the one hand, and hoping to get a large rate of profit, on the other.
Conclusion
The crisis of 2009 was a powerful impetus that made many companies wake up from hibernation. Promising companies had excellent growth opportunities, while the "ballast" began to gradually disappear from the market. The processes of growing the industry of developing Internet projects, barely tangible in the period 2005-2008, began to gain significant turnover, which allows us to hope for a transparent environment in which it will be easy for both the customer and the contractor to navigate over the next two to three years.The business of market leaders, key events of 2009, personnel transitions for the year and expert comments can be found in the full version of the material - http://2009.tagline.ru/news/digest2009.html . The material was prepared by the Tagline expert group.