Ernst & Young considers Russia one of the most promising markets for online media

    Recent research by Ernst & Young shows that the emerging markets of China, India, Mexico and Russia are becoming more attractive in terms of development and investment in Internet business, TechCrunch reports .

    Why? The answer is simple. The number of subscribers connected to the network is still actively growing in these four countries, but up to 100% penetration of the connection into all houses, offices and telephones is still 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 out of all four, 500 million wireless broadband connections are expected by 2016 (we can say that this should be the number of individuals, not households connected to the network), with a total population of 1.36 billion people.

    At the same time, regulatory internal measures do not allow the world's largest companies to enter the Chinese market: Facebook and Google only prove this example, trying to operate on the Chinese Internet market and constantly being subjected to pressure from the state authorities of the PRC.

    For example, in China, Google Play is not available. This stimulates the development and growth of alternative software stores, and even Chinese developers cannot promote applications on the domestic market - only on the external ones.

    India is an entirely different example. There is almost no broadband Internet, but cheap smartphones and poor connectivity are booming. Telecommunications companies are gradually introducing new generation networks, but Ernst & Young analysts do not expect fast growth in profits from services and advertising in India, and the local market will only reach $ 1 billion in turnover next year. Compare this with the current turnover of the Chinese advertising market of $ 23 billion.

    On the other hand, in 2016 there will be 300 million mobile users in India, and by 2020 this country will become 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 “getting younger”, and the one who is young is actively consuming.

    As for Russia, in our country, analysts note a higher percentage of connections (87% of broadband and 50% mobile), but, like in China, we have built a large number of regulations that prevent advanced companies from easily entering 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, suggests that by 2017 many Western companies will simply leave our market. Who will come in their place and in what configuration is still unclear.

    As for Mexico, there is also a difficult national situation, in which “corruption practices and the perception of bribes” are separately noted. At the same time, 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 expenses per user: $ 11,000 (this is a lifetime value).

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