Internet economy

2023: Runet economy growth by 35% to RUB 16.4 trillion

The volume of the Russian Internet economy in 2023 reached 16.4 trillion rubles, an increase of 35% compared to the previous year. Such data in mid-December 2023 were cited by the Russian Association of Electronic Communications (RAEC).

In May [2023], we gave more conservative forecasts, but based on the results of the first three quarters, we revised the dynamics forecasts for the online advertising and marketing and digital content segments. Also, the "locomotive" of growth in the Internet industry is still the e-commerce segment, which will also grow more than predicted in May. It's great that the Internet industry is adapting to the new reality much faster than expected, - said RAEK Director Sergei Grebennikov.

The volume of the Russian Internet economy in 2023 reached 16.4 trillion rubles, an increase of 35% compared to the previous year

16.4 trillion rubles is the total revenue of all companies providing services on the Internet. According to Grebennikov, the e-commerce segment accounted for 15.4 trillion rubles (94%) of this amount in 2023. This segment also grew by 35% compared to 2022.

The main driver of the growth of the online trading market was the transition of offline retail to the Internet, said Maria Saikina, chief analyst at RAEK. Experts also record a "renaissance of cross-border trade": logistics chains have improved, torn in 2022, Saikina explained (her words are quoted by Sheets"").

According to RAEK, consumers began to show a more active interest in Russian goods and their own brands. But despite the fact that the volume of purchases on the Internet has not decreased, buyers are trying to choose more budget goods, said an analyst at RAEK.

Another significant segment was the infrastructure market, Grebennikov noted. According to him, for the entire 2023, the volume of this market exceeded 426.4 billion rubles. This is about 42% higher than in 2022.^[1]

2022: Chernyshenko - Runet's contribution to the Russian economy amounted to 12 trillion rubles

According to the Russian Association of Electronic Communications (RAEK), the contribution of Runet to the Russian economy in 2022 amounted to almost 12 trillion rubles, which is 24% more than a year earlier. Deputy Prime Minister Dmitry Chernyshenko announced this on April 7, 2023, congratulating Internet users on Runet Day.

In RAEC research, the contribution of the Internet economy to the Russian economy is determined by the contribution of four large segments - Internet advertising and marketing, e-commerce, infrastructure and digital content, which together make up the digital circuit that unites companies that receive the main income in these areas.

Deputy Prime Minister Dmitry Chernyshenko

Employees of technology companies form products and services that are used by many citizens of the country: today the daily audience of the Runet is 95.3 million people, he said (quoted by the press service of the Cabinet).

According to Chernyshenko, with the departure of Western companies, domestic developers and vendors have a "window of opportunity" in the form of a huge order for new solutions. He added that in 2022 year 100 thousand people switched to the IT industry from other spheres. In 2022, over 117 thousand students were admitted to universities for undergraduate and specialist programs in IT training at the expense of the federal budget, which is 3.2 thousand more than in 2021.

I want to wish Runet not to slow down. Companies - to expand their business and conquer new markets, ensuring the export of domestic digital solutions and the technological independence of Russia. Citizens - to use all the diversity and convenience of digital services offered by business and the state, - said the Deputy Prime Minister.[2]

2021: Runet economy grew by 42% to 9.5 trillion rubles - RAEK

The contribution RuNet Russian GDP to the results of 2021 reached 9.5 trillion, rubles which is 42% more than a year earlier. This Russian Association of Electronic Communications (RAEC) was reported at the end of May 2022.

According to an association study, the contribution of the marketing and advertising segment in Runet amounted to 432.5 billion rubles, which is 24% higher than a year ago. In the field of e-commerce, the contribution was measured at 8.65 trillion rubles (+ 44%), in the infrastructure segment - 204.3 billion rubles (+ 34%).

Runet's economy grew by 42% over the year

According to the RAEK report, excerpts from which lead, TASS the contribution of online retail Russian economy in 2021 showed the highest growth dynamics - it reached 2.992 trillion rubles (+ 52% compared to 2020). At the same time, the volume of online sales of travel services amounted to 352.3 billion rubles (+ 5%), sales of services through Internet - 1.26 trillion rubles (+ 28%), the electronic payment services market - 2.547 trillion rubles (+ 42%), the S2S online trading market - 1.5 trillion rubles.

The growth of the domain market amounted to 3.7 billion rubles (+ 3% compared to 2020), the hosting market - 8.7 billion rubles (+ 4%); SaaS services market - 21.6 billion rubles (+ 25%); infrastructure market - 170.3 billion rubles (+ 38%).

The main trends in the infrastructure segment, according to RAEK experts, were the preservation of high demand for cloud services due to the development of hybrid work formats and the emergence of new services, as well as the development of state cloud infrastructure.

The volume of the digital content segment in 2021 amounted to 153.4 billion rubles, which is 24% more than in 2020. Growth was noted in all markets of the segment, the largest - in online video, the market volume reached 31.1 billion rubles, which is 60% more than in 2020.

The volume of the digital content segment in 2021 amounted to 153.4 billion rubles, which is 24% more than in 2020

Among the trends, association experts note an increase in investments in original content and "content transactions" between video services. Carrier services in the video services market are playing an increasingly significant role. Online cinemas are subject to stricter regulation, and more pirates have appeared on the digital book market than ever before in the entire measurement period.

At the same time, the growth rate of the games market has significantly decreased. The decline was influenced by the "rebound" effect after a sharp increase in 2020 due to the COVID-19 coronavirus pandemic and self-isolation, as well as a small number of bright new game releases, the RAEC said.

Media and entertainment is the only segment that in 2021 reduced its growth rate relative to 2020. The greatest impact was made by the online gaming market, the growth rate of which slowed down: the stabilization of the situation affected after a sharp increase in 2020 due to the coronavirus pandemic and self-isolation. In addition, there are fewer top-end game releases.

The size of the Runet audience, voiced by the chief analyst of RAEK Karen Ghazaryan, by the end of 2021 reached 97.5 million people, which is 80% of the total population of Russia. At the same time, 94% of this amount goes online every day. The Internet became the main news delivery channel for 62% of the population, bypassing television (its share 52%) and traditional media. The number of mobile Internet users in Russia amounted to 90 million people.

According to Karen Ghazaryan, the main focus of the regulation of the Runet in 2021 was focused on artificial intelligence, which is in a global direction. No less attention was paid to regulating the circulation of content. In particular, the improvement of the anti-piracy code continued. In 2022, the focus is shifting towards cybersecurity, which was facilitated by a significant increase in cybercrime and a persistent wave of attacks on Russian companies and government agencies, he said.^[3]

2020

Growth of the contribution of the Runet economy to the Russian economy by 4.7%, to 6.7 trillion rubles

The contribution of the Runet economy to the Russian economy at the end of 2020 amounted to 6.7 trillion rubles, which is 4.7% more than a year earlier, calculated in the Russian Association of Electronic Communications (RAEC).

In general, the Runet economy in 2020 grew by 22%, which exceeds the growth rate of the four previous years, when the dynamics were measured + 15-20%. The largest contribution came from the e-commerce segment, the volume of which in 2020 exceeded 6 trillion rubles, which is 22% higher than the result of a year ago.

The marketing and advertising segment grew by 11%, to 349.8 billion rubles, and the infrastructure segment - by 20%, to 152.3 billion rubles. The digital content segment grew by 44% (123.4 billion rubles)

Earlier, RAEK warned that due to the COVID-19 coronavirus pandemic, the fall in the ruble exchange rate, the global reformatting of the economy and the political situation, the development of the Runet could follow a crisis scenario, which assumed the growth of the Runet economy within 10%. However, the COVID-19 pandemic, on the contrary, spurred such components of the Runet economy as Internet commerce, advertising, cloud and media services.

RAEK analysts note that 2020 has demonstrated the high social significance of digital services. Among state digital services, experts distinguish the portal of public services - compared to 2019, the number of its registered users increased by 24 million and amounted to 126 million people.

Researchers estimated the audience of Runet at 97.4 million users, which corresponds to 79.5% of the Russian population over 12 years old. At the same time, 92% of Internet users go online every day. The audience of mobile Internet in Russia is 89.5 million people (73.1% of the population).^[4]

Forbes named the most expensive Runet companies

On February 20, 2020, Forbes magazine published a rating of the most expensive Runet companies. The first place in it, as in 2019, was taken by Yandex, whose market value is estimated at $14.64 billion against $10.7 billion a year earlier. The top three also included VK (formerly Mail.ru Group) and Avito.

The rating includes companies created in Russia, operating mainly in the Russian market and specializing in business on the Internet. At the same time, online stores were not included in the rating, the publication clarifies.

Forbes published a rating of the most expensive Runet companies

For calculations, data on revenue were used if companies provided it, or they were carried out on the basis of a survey of experts and market participants. The capitalization of public companies is given according to the exchange as of January 27, 2020. The study does not provide estimates of the Russian business of global corporations, as well as companies that mainly conduct offline.

The updated rating of the most expensive Runet companies is as follows:

1. Yandex - $14.64 billion;
2. Mail.ru Group - $5.29 billion;
3. Avito - $3.85 billion;
4. - QIWI $1.16 billion;
5. HeadHunter - $1.15 billion;
6. 2Gis - $0.32 billion;
7. Rambler Group - $0.3 billion;
8. - ivi $0.26 billion;
9. Eruditor Group - $0.23 billion;
10. Aviasales - $0.18 billion

At the same time, Forbes magazine published the first rating of the largest sellers of goods and services in Runet. The list consists of 10 items, it includes companies whose goods and services exist and are located off the Web, but the Internet has become an important sales channel for them. The rating shows revenue excluding VAT or turnover less returns. The top 5 is as follows:

1. Wildberries with revenue from online sales of 223.5 billion rubles;
2. Aeroflot, whose own online sales have grown 2.5 times over five years, to 221 billion rubles;
3. AliExpress Russia (AliExpress) with revenue from sales on the Internet in 201.4 billion rubles;
4. Russian Railways with revenue from online sales in the amount of 172.2 billion rubles;
5. M.Video-Eldorado (120 billion rubles).

The European tech companies that attracted the most investment in 5 years

The European technology companies that attracted the most investments from 2015 to February 2, 2020

2019

Runet economy grew by 64% to 6.4 trillion rubles

The contribution of the economy of the Russian segment of the Internet to the Russian economy at the end of 2019 reached 6.4 trillion rubles, which is 64% more than a year earlier. Such data are given in a study by the Russian Association of Electronic Communications (RAEC).

In 2019, the contribution of Runet to the Russian economy amounted to 6.4 trillion rubles, which is 64% more than in 2018

The largest volume of the e-commerce segment is more than 4.17 trillion rubles. It included:

• online retail (1.3 trillion rubles, + 26% by 2018);
• electronic payment services market (1.34 trillion rubles, + 19%);
• Internet services market (809 billion rubles, + 19%);
• online travel (730 billion rubles, + 9%).

The media and entertainment segment in 2019 showed an increase of 14% compared to 2018 and amounted to 85.7 billion rubles, of which:

• online video - 7.8 billion rubles (+ 34% compared to 2018);
• online music - 4.2 billion rubles (+ 20%);
• online games - 69.4 billion rubles. (+12%);
• e-books - 4.3 billion rubles (+ 16%).

The contribution of the marketing and advertising market to the Runet economy, according to RAEK, in 2019 amounted to 314 billion rubles, which is 19% more than in 2018. The infrastructure and communications market grew by 19% in 2019 and reached 126.8 billion rubles.

In connection with the spread of the coronavirus COVID-19, RAEK analysts record interruptions in the supply of goods from foreign stores and an increase in their cost, a drop in the number of orders and the average check in the categories of "clothes and shoes," "goods for recreation and travel," "household and audio and video equipment," etc.

According to experts, with a moderate development of the crisis scenario, the growth rate of the Internet market in Russia by the end of 2020 will amount to 6-10% due to the first and fourth quarters. In the negative scenario, positive dynamics will be measured in the range from 0 to 5% with negative indicators for some segments.^[5]

RAEC data

The volume of the Runet economy amounted to 4.7 trillion rubles, an increase of 20% compared to 2018. The volume of hubs of the Runet economy: Advertising and marketing - 330 billion rubles, Infrastructure - 130 billion rubles, E-commerce - 2850 billion rubles, Payment services - 1350 billion rubles, Digital content - 115 billion rubles.

Handelsblatt: How Russia is turning into a great internet power

On February 15, 2019, the German business newspaper Handelsblatt published an article with the headline "How Russia Turns Into a Great IT Power." Journalists paid special attention to Yandex . Read more here.

2016

According to The Boston Consulting Group (BCG, August 2016), the share of the digital economy (also called the web or Internet economy) in the GDP of developed countries has grown by 1.2 pp since 2010 and amounts to 5.5%. In developing countries, this figure increased from 3.6% to 4.9% of GDP.

In Russia, the share of the digital economy in GDP is 2.8%, or $75 billion. Most, $63 billion, falls on the sphere of consumption (Internet trade, services, online search, and offline purchases^[6].

If in 2010 the share of online commerce in all sales was 1.7% ($12 billion), then in 2016 it grew to 3.2% ($43 billion). In 2010, advertising costs on the Internet amounted to 10.8% ($0.9 billion), then in 2016 - 19% ($4 billion).

The UK is the world leader in the share of the digital economy in GDP. The sector, which includes IT and telecommunications, online trading, government spending related to the Internet, ranks second in the country's economy after real estate and overtakes production and trade.

In 2016, the internet economy is expected to bring the UK 12.4% of GDP, while in the G20 countries this figure is 5.3%. In 2010, in the G20 countries, the digital economy brought 4.1% to GDP.

2012

Internet millionaires in Russia

In 2012, the publication "Secret of the Company" prepared a rating of 50 Internet millionaires from among Russian-speaking entrepreneurs.

BCG Internet Economics Study

According to a study by the Boston Consulting Group (BCG, March 2012), 90% of all information in the entire previous history was generated by humanity in the last two years (2010-2011).

According to surveys conducted by BCG in each of the G20 countries, it is estimated that their population spends on average 3 to 6% of their income on purchases through the Network. Already, many users prefer to purchase goods via the Internet, as it is more convenient and cheaper. According to the British company Kelkoo, in 2011, Europeans made more than 20% of all pre-Christmas spending in online stores.

"Online commerce is booming. The grid becomes as necessary as electricity or water. Globally, companies that use the Internet to market, sell and engage with consumers and suppliers are growing faster and creating more jobs than those that don't. By encouraging enterprise networking activity, states can improve the competitive landscape and economic growth prospects, "argue study authors David Dean and Dominic Field.

Countries leaders

The most significant share of online commerce is in the British economy, accounting for 8.5% of the kingdom's GDP ($2.3 trillion). In 2010, the British carried out 13.5% of all purchases on the Internet (by 2016 this figure will increase to 23%)^[7]In the country's total GDP, the Internet industry has surpassed the construction, health and education sectors in terms of volume. BCG estimated the share of the Internet economy in national GDP by calculating the cost of purchasing goods and services online.

The rapid growth of the internet segment in Britain is a good sign for small and medium-sized enterprises operating in this sector. Over the past three years, their incomes have grown by 12.5% annually, while those not adapted To the Internet to businesses have grown by only 4%, according to the study.

Among the leaders were also:

• South Korea (7.3% with GDP of $1 trillion),
• China (5.5% and $5.9 trillion, respectively),
• Japan (4,7%; 5.5 trillion dollars),
• USA (4.7%; $14.5 trillion) and
• Indonesia (1.3%; $0.7 trillion).

As for Russia, in terms of the importance of the Internet segment in the G20 ranking, it is still in 18th place (1.9% of GDP). Our users mainly spend time on social networks and do not want to make online purchases due to distrust of payment services. But at the same time, the growth of the online market in the country is 18.3% annually, and by 2016 the share of the Internet sector in Russia's GDP will increase to 2.8%, allowing the country to get ahead of South Africa, Brazil and Turkey.

Development forecast

The growth rate of the Internet economies of some G20 countries is already reaching 8% per year, and by 2016 the volume of Internet segments in national GDP will amount to 4.2 trillion dollars, which is 1.7 times higher than in 2010 (2.3 trillion dollars), together exceeding the GDP of Italy and Brazil. If the Internet were a national economy, it could take fifth place in five years, behind only the United States, China, Japan and India. According to BCG calculations, such a rise will occur due to the active growth in the number of users of the World Wide Web in both developed and developing countries. By 2016, the number of network users will reach 3 billion.

The most significant contribution to the growth of the online economy will be made by developing countries. If in 2010 emerging markets accounted for only less than a quarter of the volume of the entire Internet economy, then in 2016 their share will grow to 34%. This is due to the fact that by 2016 almost 70% of Internet users in the G20 will be from developing countries, while in 2010 there were 56%. China alone will number about 800 million Internet users - about the same as France, Germany, India, Japan, Great Britain and the United States combined.

Analysts predict that the network economy will grow at the most significant pace in India and Argentina, where annual growth is expected at 23 and 24%, respectively. 'The internet economy will represent one of the few industries to see growth in the coming years, says David Dean, senior analyst at BCG. "But for the older generation, the Internet is still a relatively new realm. Because these people are more tolerant of traditional sales systems, they need to see compelling benefits to 'go' online. For young consumers, it becomes like air, they immerse themselves in it irrevocably. '

Apparently, the role of the Internet economy in the future is difficult to overestimate. It will directly provide global economic growth along with traditional, will participate in the creation of new jobs. The speed of development of the Internet economy depends on the development of technologies that already demonstrate exponential growth.

Top trends in the Internet economy

BCG believes that those companies that learn to use the realities of the'new Web' will have a serious advantage in the rapidly changing digital world:

• mobile Internet - the user model for the Network resources will change. Fixed access will no longer be a determining factor for access to the Network, since Internet access through mobile devices will become ubiquitous (four out of five devices by 2016 when accessing the Network will be mobile - smartphones or tablets);

• The network is becoming everything - according to the forecast, by IDC 2015 the number of annually sold smartphones will reach one billion. They will provide widespread access to the Web, which can fundamentally change the behavioral model between business and consumers, as well as pose a threat to traditional sectors of the economy;

• ecosystem - this word analysts use more and more often. However, if at first it concerned only the company's infrastructure, Apple now many other major companies form their own ecosystems. For example,, in Amazon Facebook, Google USA Chinese Baidu and Tencent, Russian, "etc.;Yandex

• Internet as an economy - the growth of the global Internet economy will reach an astronomical value of 4.2 trillion dollars. The network will attract investment, create new jobs and compete with the traditional economy;

• The network is becoming everyday - the Internet is becoming more and more rooted in everyday life;

• a new generation will grow on the Internet - it has new expectations, a new way of thinking that will directly affect society in general and business in particular.

Companies planning to take their place in this upcoming digital era should significantly revise their business model and adapt it to new conditions. Given the speed of change, many enterprises will have to abandon the long-term and cyclical planning of their business and comprehend the essence of this new technological phenomenon called 'Internet economics', realizing the speed and scale of its development with its own resources and capabilities.

French about the Internet market in Russia

The French consulting company faberNovel published the results of its study of the Russian Internet market and presented its research in the form of a presentation:

2011: Internet market growth 30%

The study was carried out by the Russian Association of Electronic Communications (RAEC) and the National Research University Higher School of Economics (HSE), with the assistance of BostonConsultingGroup.

"This is the first comprehensive study of the Russian Internet economy," Russian presidential aide Igor Shchegolev told reporters at the presentation of the study. "Her role is growing every year, her penetration into the real economy is growing."

As the rector of the Higher School of Economics Yaroslav Kuzminov noted, the methodology used during the study did not imply the disclosure of all financial information, since when interviewing companies it was not about exact figures, but rather about the order. However, the companies were honest in their answers, which ensured greater accuracy of the final results.

"If you look at the dynamics of the Internet economy, we will see that its growth is fantastic for the Russian economy - tens of percent," Yaroslav Kuzminov emphasized. "None of the other sectors of the economy are growing like that." According to him, we can expect that by the end of 2012 the volume of the Runet economy will be about 1.5% of GDP. "If the growth rate of the Internet economy continues, then by the end of the decade the Internet will serve more than 50% of the Russian economy," predicts the rector of the Higher School of Economics

According to the study, the total volume of Internet markets investigated by the company in 2011 amounted to 553.79 billion rubles, with a 30% growth forecast for 2012. The volume of all Internet-dependent markets in 2011 amounted to 2.52 trillion rubles, which is 4.62% of the country's GDP. At the same time, different segments of the Internet market are growing in different ways.

The volume of the cloud computing (SaaS) market in Runet in 2011 is estimated at 1.89 billion rubles. In 2010-2011 it grew by 46%, experts predict the same growth in 2011-2012. Such a rapid increase in both volume and number of players is associated with a gradual departure from "boxed" software and an increase in the use of mobile devices, for which "being in the cloud" is organic and effective. Startups are a natural client of cloud services: clouds allow them to cut costs, but at the same time lay down the possible rapid growth of the company.

The volume of the web development market in 2011 amounted to 9.6 billion rubles. In 2010-2011 it increased by 35%, in 2012, as experts predict, it will increase by 27%.

The e-commerce market in the study is divided into several segments. The volume of the e-commerce market in 2011 amounted to 166.7 billion rubles. with a projected growth of 32%. Experts note its high concentration: the three largest payment systems - Yandex.Money, Webmoney and Qiwi - account for up to 80% of the market. According to the study, in 2010-2011 the market increased by 34%, and by the end of 2012 it will grow by another 32%.

Viktor Dostov, Chairman of the Board of the Electronic Money Association (AED), considers this assessment too soft: "In a study of the activities of e-commerce market participants in 2011, which AER published in April 2012, the growth rate in the audience was 30%, and in terms of turnover - 70%. I believe that such dynamics will continue, and the market will grow by 70% in 2012, "he told a ComNews reporter. At the same time, the market volume indicated in the RAEC study differs from the results of the April study (125 billion rubles) within the error range, the head of the AED council noted

The volume of the online retail market amounted to 309.4 billion rubles, dynamics in 2010-2011. - 30%, projected dynamics in 2011-2012. - 27%. The main point of growth of this market, according to respondents, is an increase in the number of Internet users actively shopping on the Internet. Of the 52-55 million Russian users, only a fifth make purchases via the Internet, said Maelle Gavet, CEO of the Озон.ру online mega market.

The volume of the content and games sales market amounted to 309.4 billion rubles, with dynamics similar to the dynamics of the online retail market.

The volume of the contextual advertising market amounted to 24.24 billion rubles. according to the results of 2011, media advertising - 15.83 billion rubles, search engine optimization - 8.56 billion rubles, marketing in social networks - 2.98 billion rubles, video advertising - 0.8 billion rubles. The video advertising market is growing fastest - 53% in 2010-2011, 59% according to the forecast for 2011-2012.

Zavyalova, head of sales marketing at Yandex, told a ComNews reporter that the high growth rates of the online advertising market indicate unsaturation of demand, that the market can be considered relatively immature. "If you compare it with other channels, it is - the age of the outdoor advertising, radio, TV, press advertising markets exceeds the age of the online advertising market by several times, or even tenfold," she stated. "Due to its youth, the online advertising market is still relatively undervalued due to the inertia of advertisers. Just this underestimation, as companies become aware of it, leads to high growth rates - marketing budgets flow into this channel. On the other hand, due to the same youth, the Internet advertising market is the most technologically advanced, "Elena Zavyalova reflects. - It provides advertisers with tools that are incomparable with other channels in accuracy for communication with customers and for assessing the quality of these communications. It also provides prospects for further growth. " Strategically, the most important now remain the processes of improving the two most developed types of online advertising - media and contextual, she added

Vice President and Commercial Director of VK (formerly Mail.ru Group) Alexei Katkov also believes that, despite the high growth rates in recent years, online advertising "is still far from a fair share in media sheets." "In our opinion, the fair share of the Internet today should be comparable to the share of TV," he told a ComNews reporter. The growth of this market will continue due to an increase in the Internet audience and an increase in education among clients and advertising agencies, which will allow you to work with the Internet as an advertising platform, using all the possibilities: coverage, interactivity, context, targeting, said Alexey Katkov. "According to my forecasts, video advertising in various formats, as well as large media formats designed for wide coverage and viral projects on social networks, will receive more and more popularity," he concluded.

Notes