Internet Marketing News for October 2021: 5 Key Events

Contents:

• Facebook Corporation changes its name to Meta: a new stage in the digital world
• The problem of vulnerabilities: almost 50% of Russian sites are at risk
• 62% of buyers leave sites due to inconvenient search and navigation
• Marking fakes on the Internet: new measures in Russia
• Problems with subscriptions: Russians consider them too expensive
• Google video advertising is now on Smart TV: a new era of digital marketing
• Email newsletter trends in Russia: what they say Surveys?
• Ozon on the way to a license to sell alcohol
• Only 33% of companies in Russia and the CIS track LTV
• Current trends in online business

Facebook Corporation Changes Its Name to Meta: A New Stage in the Digital World

On October 28, 2021, Mark Zuckerberg, the founder of Facebook, announced the change of the company's name to Meta. This move symbolizes the unification of all services and applications under a single brand, emphasizing Meta's ambitious plans to develop virtual reality and create a metaverse. The company's renaming also reflects a commitment to innovation and technology integration, which will facilitate deeper user interaction in the digital space.

Meta is associated with the concept of the "metaverse," previously mentioned by Mark Zuckerberg. Futurists understand the metaverse as an expanded virtual space where digital reality and everyday life are integrated. It is a new dimension of user interaction, allowing users to communicate, work, and play in a single digital space. The metaverse opens up new opportunities for business, education, and social interaction, creating unique conditions for the development of technology and innovation.

Since 2021, Facebook has been actively investing in the development of its metaverse. The company's CEO, Mark Zuckerberg, emphasizes that the new virtual reality will be significantly different from traditional social networks. It will offer users a unique immersive experience that will facilitate more natural interaction and communication between people. The development of the metaverse opens new horizons for the formation of digital communities and interaction in the virtual space, which has the potential to change the approach to social networks and online interactions.

In the metaverse, users will be able to realize all their ideas and desires: communicate with friends and family, work, study, have fun, shop, and be creative. This experience will be unlike how we perceive technology today, opening up new horizons of interaction and opportunities for self-expression. Zuckerberg emphasizes that the metaverse will be an important step towards deeper and more multifaceted interaction between people in the digital space.

The Problem of Vulnerabilities: Almost 50% of Russian Websites are at Risk

A study conducted by Tinkoff Business shows that over 40,000 Russian companies face serious problems in the security of their online resources. Data analysis indicates that 46% of websites and associated databases are at risk, creating opportunities for fraudsters to exploit these resources. Ensuring the security of online resources is becoming a pressing task for businesses to prevent data leaks and minimize risks.

Tinkoff experts have identified 20 key types of errors, most of which are associated with flaws in database management systems Data breaches, improper use of domain names, and inadequate data protection can lead to serious consequences, including information leakage and system vulnerabilities. Proper database management, smart use of domain names, and effective information security measures are critical to ensuring the security and stability of organizations.

The most common vulnerabilities in web applications include the following categories: SQL injections, which allow attackers to tamper with database queries; cross-site scripting (XSS), which allows malicious code to be injected into pages viewed by other users; and authentication vulnerabilities, which can lead to unauthorized access to accounts. Vulnerabilities related to improper server and application configuration are also common, which can be exploited to obtain confidential information. Awareness of these vulnerabilities and their prevention are key aspects of web application security.

• Unverified Domain: When registering a website, companies fail to verify that the domain name belongs to them. This opens the door for attackers to hijack the domain and deprive the company of its online identity.
• Insecure Database: Hackers can access the personal information of customers and employees, including addresses, phone numbers, and transaction details.
• Security Certificate Errors: About 15% of websites have SSL certificates that do not match the registered domains, making them vulnerable to data interception attacks. Moreover, many companies fail to update their certificates, which increases the risks.
• Insufficient protection against ransomware: if an attacker uses a virus to access company information, they can block the data and demand a ransom to restore access.

Vladimir Ulyanov, head of the Zecurion analytical center, emphasizes that there is no need to panic. For online stores that process customer data, maintaining security measures is crucial. However, simple business card websites are generally not exposed to serious risks due to such vulnerabilities. In such cases, the cost of a security specialist may be unjustified.

Cybersecurity is crucial not only for large companies but also for small and medium-sized businesses. Regular security audits and updating security systems help minimize risks and protect data from potential threats. Investing in cybersecurity provides reliable protection, which is especially important in an environment of increasing digitalization of business. Every business must recognize the importance of cybersecurity and implement effective measures to ensure the security of their information systems.

62% of shoppers abandon websites due to inconvenient search and navigation

According to a study conducted by the American service Qubit, 62% of users abandon purchases on a website due to search problems. The survey, which covered residents of the UK and the US, found that 73% of respondents consider the difficulty of search to be the main reason for leaving. These data highlight the importance of optimizing website search functions to increase conversion and customer retention. Improving the search interface and providing relevant results can significantly reduce abandonment rates and increase sales.

Beyond search difficulties, there are other important factors that influence online shopping. 61% of respondents noted that inconvenient website navigation complicates the shopping process. Furthermore, 54.5% of shoppers expressed dissatisfaction with delivery terms and return policies. Furthermore, 52% of respondents cited a lack of reviews as the main reason they did not complete a purchase. These aspects significantly impact user experience and can hinder successful sales in online stores. Optimizing navigation, improving delivery terms, and creating a review system can improve customer satisfaction and increase conversion.

Evgeny Titarenko, founder of the BenefittY platform, emphasizes the need to improve search tools. He argues that search should be integrated into specialized tools, providing a more accurate and targeted experience compared to traditional search engines. Our platform focuses on advanced search and personalized offers, enabling a mechanism that tailors content to each user. This solution effectively addresses existing challenges in information search.

Vadim Zabeglov, founder of the marketing agency ZAMEDIA, emphasizes the importance of UX/UI in web development. With an abundance of products, users may experience difficulty navigating a website. To improve usability, it's necessary not only to provide detailed product descriptions but also to implement improvements such as search filtering, creating FAQ pages, and developing recommendations based on previous browsing. These simple yet effective measures can significantly reduce bounce rates and increase business profitability. Optimizing the user experience is key to a successful web platform.

This data highlights that ease of search and navigation are fundamental factors for successful online retail. Ignoring these aspects can lead to significant losses for a business. Optimizing the user experience in online stores not only improves customer satisfaction but also contributes to increased conversion and sales. A proper website structure, intuitive interface, and effective search system play a key role in attracting and retaining customers, which ultimately impacts business profitability.

Fake News Labeling on the Internet: New Measures in Russia

Russia is launching an initiative to label unreliable information online, which has been joined by the country's largest IT companies. Signatories to the fact-checking memorandum include leading players such as Yandex, VK, Rambler&Co, Avito, as well as reputable media outlets including TASS, Interfax, RBC, and Vedomosti. This initiative is aimed at improving the quality of information online and protecting users from fake news. The parties to the memorandum commit to using fact-checking methods and providing up-to-date and reliable information, which will be an important step towards improving the media landscape in the country.

The goal of this agreement is to create a safe information space and effectively combat fake news. According to Vedomosti, the focus will be on verifying data related to emergency situations, the COVID-19 pandemic, and important historical events. In addition, special attention will be paid to news that could cause a sharp increase in demand for certain products. This will help reduce the spread of false information and protect users from manipulation.

The expert community has expressed serious concerns regarding the implementation of the new initiative. Leyla Salieva, Marketing Director at Epicstars, commented: "While the idea itself is positive, the document raises many questions. It is unclear who will be responsible for fact-checking and what criteria will be used to make decisions. This could have a significant impact on bloggers, especially those with a following comparable to traditional media outlets. It is important to clearly distinguish between freedom of expression and the deliberate dissemination of false information."

Most likely, these media outlets will be responsible for verifying content on platforms such as Yandex.Zen, VKontakte, the Rutube video service, and Avito. This will lead to the establishment of new standards for online content and will influence future practices in the media and blogosphere. The implementation of such standards can improve the quality of information available to users and reduce the spread of false materials.

Given the significance of this topic, it is necessary to monitor developments and promptly respond to changes in legislation regarding freedom of speech and the fight against disinformation. This will not only maintain the relevance of information but also protect citizens' rights to free expression in the face of growing threats from disinformation and censorship. It's important to actively participate in discussions and initiatives aimed at protecting freedom of speech, as well as stay informed about innovations and amendments that may impact this aspect of public life.

Subscription Issues: Russians Consider Them Too Expensive

According to a recent study conducted by Anketolog, 66% of Russians perceive the possibility of trial subscriptions positively, indicating significant interest in this model. At the same time, 27% of respondents remain neutral, and 7% express a negative attitude. This indicates growing interest in subscription services in Russia, which could be an important factor for companies considering implementing such offerings. Understanding consumer sentiment will help businesses effectively adapt their strategies and offer services that meet audience expectations.

Among surveyed users, video services are the most popular, with 70% of participants signing up for trial offers. Music platforms are second with 41%, followed by software with 35%. Internet and mobile services were chosen by 32% of respondents. These data highlight the importance of video content and music services in the modern digital space, and also demonstrate growing interest in software solutions and telecommunications services.

Trial subscriptions are becoming increasingly popular, but their renewal statistics are worrying. Only 23% of users continue to pay for a subscription after the trial period ends. Furthermore, 60% do so only occasionally, and 17% have never subscribed to a paid plan. The primary reason for canceling a subscription is high cost, cited by 73% of respondents. Furthermore, 36% of users note that the service did not meet their expectations. This underscores the importance of analyzing pricing policies and service quality to improve customer retention. Vadim Zabeglov, a marketing expert, notes that subscription cancellations in Russia are linked to several key factors. One of the main ones is the legacy of consumer culture, when piracy was the only available option. This has created a low sense of responsibility and reluctance among users to pay regularly. Many Russians are experiencing financial difficulties and are unsure of their means for the next month, which also influences their subscription choices. In addition, the lack of awareness of the benefits of paid subscriptions, such as the absence of ads and access to advanced features, does not contribute to their adoption, unlike in Western countries. However, awareness of the benefits of subscriptions is growing among more responsible users, which may lead to a change in the future.

Google Video Advertising Now on Smart TVs: A New Era of Digital Marketing

Google video advertising has recently become available on Smart TV platforms, which creates new opportunities for advertisers. YouTube users can now see active URL links at the bottom of the screen. This allows them to quickly go to brand websites to make purchases without interrupting their viewing of the video. This feature significantly simplifies interaction with advertising and helps increase website traffic, as well as improves conversion for advertisers. The introduction of such technologies makes video advertising more effective and targeted to the needs of the audience.

According to YouTube statistics, over 90% of users in the US choose to watch content on big TV screens. This underscores the strategic importance of the platform for advertisers looking to expand their audience. Given the growing popularity of video platforms, optimizing advertising campaigns for the television format is becoming a crucial step for achieving successful marketing results.

Experts warn that while using in-video advertising can help increase reach, high click-through rates and sales can be deceptive. Many users experience fatigue from the constant stream of ads and may not show interest in purchasing while watching. The effectiveness of such advertising directly depends on the harmony between the product and the video content. In this context, advertising becomes a combination of product placement and traditional advertising approaches. Therefore, it is important to carefully consider how to integrate the product into video content to maintain audience attention and achieve real results.

In today's increasingly competitive environment, the impact of video advertising on the user experience is becoming key. It is necessary to find strategies to make video advertising less intrusive and harmoniously integrated into the content. This will not only increase user satisfaction but also improve the effectiveness of advertising campaigns. It is important to strive to create video ads that will be perceived as part of the content, and not its distracting element.

Email newsletter trends in Russia: what do the surveys say?

A study by Rambler&Co shows that Russians show limited interest in email newsletters. Only 10% of respondents use their email to subscribe to newsletters, which raises doubts about the effectiveness of classic email marketing. This indicates the need to reconsider customer communication strategies and find alternative methods of information distribution. In an increasingly competitive environment, it is important to adapt marketing approaches to attract audience attention and increase engagement.

According to surveys, 37% of respondents check their email several times a day, while 20% do it only once. Interestingly, 22% of Russians keep their email inbox open throughout the working day. At the same time, 7% of users access email very rarely, and 3% can't even remember the last time they checked their inbox. These data highlight the varied email habits of users and the importance of optimizing email services to improve their effectiveness.

Russians still prefer to access email on desktop devices, as confirmed by 65% ​​of users. However, a significant share, almost a third of respondents, use smartphones for this purpose, indicating the growing mobility of email access. Furthermore, 3% of respondents access email on tablets. This trend underscores the importance of adapting email services and content for different devices, taking into account changing user preferences.

Leila Salieva, Marketing Director at Epicstars, emphasizes that even 10% of users supporting email newsletters can deliver successful results for marketers. With personalized approaches, email marketing can achieve conversion rates of up to 15% or more, making it an effective tool in a digital marketing strategy. Personalizing content and understanding the needs of the target audience are key to increasing the effectiveness of email campaigns and boosting user engagement.

According to McKinsey research, email marketing can sometimes be more effective than social media promotion. The high return on investment (ROI) from email campaigns is due to their low implementation costs. Email marketing allows businesses to reach their target audience directly, making it an essential tool in digital marketing strategies. Effective email campaigns can drive sales and strengthen customer relationships, making them an integral part of a successful marketing campaign.

Evgeny Titarenko, founder of the digital loyalty program platform BenefittY, emphasized that 10% is an impressive result, but it is likely to decline given the growing trend toward smarter information consumption. In the future, we expect the active development of integrated services capable of providing only relevant and necessary information. These could include personalized apps with unique offers, as well as smart banking solutions that will meet the individual needs of users.

Ozon on the Path to an Alcohol Sales License

In early October 2023, the Russian marketplace Ozon announced the creation of a new company called "Ozon Alco." The company's official statement announced its intention to obtain a license to sell alcoholic beverages. It is important to emphasize that, in accordance with current Russian legislation, online sales of alcohol remain prohibited. This circumstance creates certain challenges for Ozon and other market participants seeking to develop online sales of alcoholic beverages.

Currently, marketplaces serve as storefronts for buyers, allowing them to browse products on the platform, but the payment and pickup process takes place directly with the supplier. Since August 2023, Ozon has been testing a new model in partnership with SimpleWine wine shops. In the future, users will likely be able to pay for alcoholic beverages directly at Ozon pickup points. This change could significantly simplify the purchasing process and make it more convenient for customers.

Discussions about legalizing online alcohol sales in Russia have been ongoing for several years. Initially, a legalization experiment was planned to begin in the summer of 2023, but this project remains unimplemented to date. The issue of legalizing online alcohol sales is relevant and requires further consideration, as it may significantly change the market and consumer habits.

Only 33% of companies in Russia and the CIS track LTV

According to a study conducted jointly with Coffee Analytics, Mindbox, and Owox, only one third of companies in Russia and the CIS actively analyze the LTV (Lifetime Value) metric. In contrast, 93% of organizations in the UK track this metric, demonstrating significant differences in approaches to analytics and customer data management. Understanding and measuring LTV plays a key role in shaping marketing strategies and improving business performance, which underscores the importance of applying modern analytical tools in the Russian context.

Among companies using LTV (customer lifetime value), 43% update data monthly, 27% weekly, and 17% daily. These figures indicate that only a small percentage of organizations pay attention to regularly monitoring this important metric. Regularly updating LTV data allows companies to better understand their customers' value, optimize marketing strategies, and improve overall business performance. This underscores the need to implement a systematic approach to LTV analysis to achieve sustainable growth and competitive advantage.

94% of respondents note that when calculating LTV (Lifetime Value), they rely on transaction data. 46% use information about advertising campaigns and traffic sources. In the B2B sector, the emphasis is on analyzing user behavior on the website, which accounts for 41%, as well as interactions via calls and chats (31%). Meanwhile, in the B2C sector, the focus is on advertising metrics, including response to promotions (26%) and loyalty program usage (43%). Effective LTV calculations allow companies to better understand customer value and optimize their marketing strategies to increase revenue.

Lifetime Value (LTV) plays a key role in business analytics, as it allows media planning to focus on the most profitable segments. Increasing the number of loyal customers directly leads to increased revenue. However, many businesses fail to consider LTV, as well as other important metrics such as ROI and ROMI. Ignoring these metrics can lead to ineffective marketing strategies and missed opportunities to optimize costs and maximize profits. It's important to integrate LTV into your business strategy to make informed decisions and direct resources to the most profitable channels and initiatives. Failure to measure LTV (Lifetime Value) can lead to a situation where the costs of producing, acquiring, and retaining customers exceed revenue. This can force a company to reconsider its business strategy and, in the most extreme cases, lead to bankruptcy. Proper understanding and analysis of LTV are key to optimizing cash flows and ensuring sustainable business growth. Measuring LTV allows companies to more effectively manage their resources, minimize risks, and improve marketing and sales strategies. Vadim Zabeglov, founder of the marketing agency ZAMEDIA, emphasizes the importance of this metric for achieving business success. Proper understanding and analysis of key metrics allow companies to optimize their strategies and improve operational efficiency. Zabeglov notes that without taking this data into account, it is difficult to make informed decisions and achieve goals.

Current Trends in Online Business

Tinkoff Bank announced the launch of a new ecosystem aimed at users of e-commerce platforms such as Ozon and Wildberries. In addition, the ecosystem will facilitate the development of independent online stores. This step is a key element of the bank's strategy to support small and medium-sized businesses in the digital economy. The creation of such an ecosystem will open up new opportunities for entrepreneurs, providing them with access to modern tools and resources for effectively running a business online.

Given the growing popularity of online sales, Ozon has introduced a new line of business – the production of ready-made meals available for delivery under the Ozon Express brand. This service is already available in Moscow and the Moscow region, significantly expanding the range of offers for users. Now customers can quickly and easily order a variety of dishes, making shopping more convenient and efficient. Ozon strives to meet customer needs by offering high-quality and delicious food solutions, underscoring its leadership in the online services market.

A study conducted by Beeline Business in collaboration with the Initiative agency revealed that approximately 25% of marketplace traffic is generated by television advertising. The average conversion rate from watching a TV commercial to visiting a marketplace is 2.7%. This underscores the importance of traditional media in today's digital marketing environment. The study's results confirm that integrating television advertising into a marketplace promotion strategy is an effective tool for engaging audiences and increasing sales.

X5 Group, a leading retail company, together with Alfa-Bank, announces the launch of a new financial service that will be integrated into all of the group's apps. This innovation will significantly improve the user experience and simplify the shopping process for customers. Users will be able to complete transactions quickly and easily, making shopping more convenient and efficient. The joint initiative of X5 Group and Alfa-Bank underscores the company's commitment to implementing innovative solutions in retail and financial services.

According to the survey, 93% of video game advertisers have increased their advertising budgets this year. However, 20% of respondents do not consider this channel effective, demonstrating a wide range of opinions among marketing professionals. This underscores the importance of analyzing and adapting video game advertising strategies to achieve maximum effectiveness.

Sociological studies confirm that over 60% of Russians are open to the introduction of a new consumer ethic. In particular, 67% of respondents believe that boycotting brands is an effective way to influence business. This trend underscores the growing importance of conscious consumption and social responsibility among consumers. These data can serve as the basis for further analysis of changing consumer habits and their impact on the market.

Sber and VK continue to actively develop their partnership in the taxi and foodtech sectors. Their joint venture, O2O, recently attracted an additional investment of 12.2 billion rubles, highlighting the growing interest in these industries. This funding will improve services and expand the project's capabilities, which, in turn, will positively impact the customer experience. Innovative solutions offered by O2O will not only improve the quality of services but also strengthen the companies' market positions.

Currently, a quarter of Russians subscribe to online cinemas, demonstrating the growing popularity of streaming content. KinoPoisk, ivi, and Okko are among the leaders in this segment, while Netflix remains a favorite among Russian subscribers. The growing interest in online cinemas is driven by the convenience of accessing a variety of content and the ability to watch movies and series at any time. This makes subscriptions to such services attractive to a wide audience, which in turn contributes to the development of the streaming video industry in Russia.

Half of all advertising spending is spent on promoting gaming applications. Furthermore, advertising budgets for fitness apps, social media, and food delivery services are growing significantly. This highlights the broad scope and diversity of today's mobile app market, where competition between different categories is constantly intensifying. Advertising is becoming a key tool for attracting users and increasing app visibility in a saturated market.