Page 139 - RusRPTOct22

For comparison, Yandex's e-commerce GMV rose 67% y/y to RUB58.7bn ($980mn), while that of Wildberries grew 94% to RUB340.1bn ($5.68bn) in 2Q22.
In the post-invasion environment e-commerce is performing better than the retail sector overall (47% y/y growth in 1H22 versus 12%, respectively), while the trend for consolidation is also present as 60% of the increase was attributed to two largest players Wildberries and Ozon (respective 23% and 15% market shares), BCS GM wrote citing INFOLine and Ozon data.
Russians began to watch more videos on YouTube, according to Mediascope estimates, reports Kommersant. In July and August, Russians spent an average of 87 and 88 minutes per day on YouTube, respectively. Prior to this, the viewing practically did not grow, stopping at 84 minutes a day. At the same time, the daily audience coverage remained the same - 39%. YouTube is still the fifth largest resource on the Russian Internet after WhatsApp, Yandex, Google and VKontakte. The rise in YouTube viewing can be attributed to three factors: The absence of big premieres and the removal of old films and series from media libraries, which people began to look for in a universal service. Blocking Instagram and Facebook (services of the recognized extremist Meta) and restrictions on publications in TikTok. It is likely that people who do not use VPNs have reallocated their time to other channels, including YouTube, says Irina Edemskaya, director of research at OMD OM Group.
The e-commerce market trends remain relatively favourable,
despite more cautious customer behaviour. In 1H22, the e-commerce market grew 47% y/y (INFOLine) vs 12% for Russia retail, while the trend for market consolidation continued: c60% of increase was attributed to two largest players – Wildberries and Ozon (respective 23% and 15% market shares), based on INFOLine and company data. In Ozon’s assortment, there was a negative impact from some foreign brands exiting the market in 1H22, but it was to a large extent substituted by local brands and parallel import (3P, not 1P currently). The latter’s share is currently small, but Ozon believes it will grow. Also, Ozon works on broadening the assortment via attracting sellers from China and Turkey.
On September 1, amendments to the accounting of online advertising came into force in Russia. The new legislation will affect everyone who places ads in Runet. In this issue, we tell you where the idea to collect all online advertising in a single registry came from and how it will threaten businesses, websites and blogs.
How the online advertising market decided to take control
On September 1, a new law came into force in Russia - or rather, amendments to the law "On Advertising". Thanks to them, a unified accounting system for all online advertising will soon appear in Runet. In short, this will be a base to which everyone who advertises at least something on the Russian Internet will
139 RUSSIA Country Report October 2022 www.intellinews.com