Internet content monetization trends Media consumption in Russia – 2019 Deloitte CIS Research Center Moscow, September 2019 Contents

01 Foreword

01 Foreword 3 06 Technology and media consumption 33 02 Research methodology Attitudes towards new gadgets 34 Russian household ownership of media devices 35 03 Key findings Devices used to watch 36 02 Research methodology 4 Popularity of smartphone features 38 04 Media consumption in Russia Messengers 39 Access to media by connection type 40 05 Data content and usage patterns Technology and media 03 Key findings 5 06 Attitudes towards advertising 41 consumption 07 Advertising tolerance and perceived usefulness 07 Attitudes towards advertising of various advertising channels 42 Media consumption in Russia 11 Adblockers 45 04 08 Media consumption in figures Media consumption by category 12 Russians as media users 15 Media consumption in figures 46 Media usage during the day 16 08 09 Contacts Media consumption practices 17 Changes in media consumption in 2015–2019 18 Video games 20 09 Contacts 48 Data content and usage patterns 21 05 News sources 22 News source ranking by trust level 23 Attitudes towards the media: Russian or foreign source? 24 The most popular content for each media 25 TV content 26 Reasons for using Internet 27 Paid online content 29 Video content 32

02 Media consumption in Russia – 2019

Foreword 01 Foreword

02 Research methodology We are pleased to present the results Moreover, Russians are still not entirely of our fifth, comprehensive study on board with the concept of paying 03 Key findings of media consumption in Russia. for copyrighted content online.

Every year we look at media consumption This forces companies to be flexible 04 Media consumption in Russia across nine key channels, with the goal with their pricing strategies. At the same time, of identifying general trends and tackling Internet users are becoming increasingly 05 Data content and usage patterns critical developments. This report focuses intolerant of advertisements and are often Technology and media on the switchover to digital TV, gaming blocking them with special software, making 06 consumption in Russia, the consumption of online video generating advertising income ever more Olga Tabakova content and usage of paid content. difficult. Monetizing online content is therefore 07 Attitudes towards advertising Partner no easy task and requires innovative solutions. CIS TMT Industry Leader Russians are using the Internet more However, those who choose the right 09 Media consumption in figures Deloitte CIS extensively and more frequently, helping format for connecting with their audience it hold on its position as one of the most will reap the rewards in the long-term. 09 Contacts vibrant media channels in the country. The Internet is encroaching into almost Deloitte’s comprehensive approach every aspect of our daily lives, with more to monitoring new trends in media consumption, and more Russians saying they cannot in Russia and globally, allow us to forecast imagine a single day without it. upcoming media market shifts, thus enabling companies to better prepare for them. Expanding the user experience drives up expectations for improved content quality We hope that our findings will help companies and streaming formats. This encourages developing strategies to better the development of paid online content serve their existing and target customers. models and creates broad opportunities for content monetization. However, declining real incomes over the past few years have made Russians extremely cautious about where they spend their money.

03 Media consumption in Russia – 2019

Research methodology 01 Foreword

02 Research methodology Purpose Goals Data collection methods Legend To study Russian media consumption trends. •• Look into how Russians’ media We used a qualitative data collection method, Men 03 Key findings consumption has changed over namely an online survey of 1,600 respondents, Target group the last five years (2015–2019); reflecting a representative socio-demographic Women Russian Internet users aged 16 or over portrait of the Russian population. 04 Media consumption in Russia •• Take a detailed look at Russians’ media (data was collected through an online survey) High income behavior, the information channels [“Russians”] Research sample 05 Data content and usage patterns they use, what they are interested Medium income A multistage and stratified sample in, how much time they spend, etc.; Technology and media Low income 06 Limitations of research of the Russian population according to gender, consumption Considering the current level of Internet •• Assess Russians’ level of trust age and settlement type – 1,600 people Cities (over 1 million people) penetration among Russians*, our sample in various information sources; from all eight federal districts, 46 regions, 07 Attitudes towards advertising tends to be biased towards Internet-users. and at least 250 settlements. •• Analyze what devices are used Cities (500,000 – 1 million people) 08 Media consumption in figures to consume media content; Cities (less than 500,000 people) •• Analyze the Russians’ attitude Secondary or incomplete secondary education 09 Contacts towards key developments on the media market; Higher education, academic degree

•• Assess the Russians’ tolerance for advertising, including by type of media activity;

•• Analyze online content consumption patterns;

•• Conduct a comparative analysis of the identified consumer profiles for different news sources.

* According to VCIOM, Internet penetration among Russians over the age of 18 was 84% in May 2019.

04 Media consumption in Russia – 2019

Key findings 01 Foreword

02 Research methodology Top five movie streaming services, % Age ratings for TV content 03 Key findings Ivi 51 The most popular types of content Megogo 28 Science % % 04 Media consumption in Russia Movies News TV series and education 49 44 Amediateka 28 consider them necessary consider them unnecessary Kinopoisk 24 94% 86% 74 % 50% 05 Data content and usage patterns Okko 22 Technology and media 06 The most popular video streaming services Transition to digital TV consumption Movie streaming Interactive Paid services 07 Attitudes towards advertising services TV/IPTV E-stores from TV channels have switched over have watched from analogue to digital TV % 08 Media consumption in figures 86% 16 % 13 % 9% TV in the last 69 two weeks % 91 09 Contacts 53 % 16 % without difficulties with difficulties

Connection Weekdays/weekends watching TV behaviour TV devices Major difficulties

Internet TV I switch on the TV to find TV set I need to buy additional equipment something to watch. If there I do not have enough information 41% 31/36 % is nothing interesting, I just 95% about switching to digital TV leave it on in the background Personal cable Smartphone I need to retune my TV and/or watch the show that The additional equipment is expensive 35% seems the most interesting 61%

Community antenna I turn on the TV to watch Desktop PC It is difficult to find the additional equipment a specific program It is difficult to install the additional equipment 27% 25/24 % 59%

05 Media consumption in Russia – 2019

Key findings 01 Foreword

02 Research methodology Top five podcast categories, % Average podcast listening time 03 Key findings Movies, music, art 74

Popular science and education 69 minutes 04 Media consumption in Russia News 69 40 per day Politics and society 64 05 Data content and usage patterns Theme programs 62 Technology and media 06 consumption Top categories Radio devices Radio listening 07 Attitudes towards advertising

Russian music – 89% behaviour Car stereo Radio at home Smartphone 08 Media consumption in figures Foreign music – 88% 49% 29% 21% Almost every day 09 Contacts News – 81% 37 % Weekdays/weekends listening radio behaviour Four to five days a week 23 % I listen to the radio while driving 43/34 % Two to three days a week 22 % I listen to the radio One day a week and less % at home 25/45 18 % I listen to the radio 20/2 % at work

have listened to the radio in the last 56 % two weeks

06 Media consumption in Russia – 2019

Key findings 01 Foreword

02 Research methodology Top 5 instant messengers, % Average number of instant messengers installed 03 Key findings WhatsApp 83 Most popular Viber 61 messengers smartphone function 04 Media consumption in Russia Skype 53 4 per smartphone Instant messengers Telegram 40 05 Data content and usage patterns Facebook Messenger 38 53% Technology and media 06 consumption Social network apps Devices for using Internet Ad-blocking on smartphones 07 Attitudes towards advertising 49% Smartphone Laptop Desktop PC 08 Media consumption in figures I have installed an ad-blocker Internet calls 13% 88% 74% 70% 09 Contacts 42% I use my browser’s ad-blocking 15% function Internet usage behaviour on smartphones

I go online often 20% I plan to start blocking ads 62 % and for extended periods of time I neither block nor plan I go online often, 31% to block ads 26 % but for short periods of time I am not aware of ad-blocking I rarely go online, but do so 21% technology 3 % for extended periods of time I rarely go online, and do so 9 % for short periods of time have a smartphone 91 %

07 Media consumption in Russia – 2019

Key findings 01 Foreword

02 Research methodology Top five Internet resources, % User categories of content generators, % 03 Key findings Top five reasons for using the Internet Youtube 86 Friends 51 during business hours VKontakte 80 Celebrities 31 Information 04 Media consumption in Russia Reading search Odnoklassniki 57 Unknown users 30 news Instagram 52 Communities 19 on social 05 Data content and usage patterns 96% Business/ media Facebook 44 News and media webpages 15 formal Technology and media Work, communi- Chatting 06 % making cations 90 consumption money 89% 86% Top three reasons 07 Attitudes towards advertising 82% for playing video games have a laptop/PC 08 Media consumption in figures

% Offline Online 97 09 Contacts Entertainment/leisure 74% Entertainment/leisure 70%

Way to pass time 32% Relaxation 26%

Relaxation 27% Way to pass time 22%

Internet connection Internet usage behaviour on PCs Gaming devices Ad-blocking on a PC

Wireless I go online often Smartphone Internet I have installed an ad-blocker (Wi-Fi) 53% and for extended periods of time 24% 65 % 54% Dedicated line I go online often, I use my browser’s ad-blocking function (direct cable Desktop PC 18% 42% but for short periods of time connection) 14 % Mobile Internet I rarely go online, but do so 44% I plan to start blocking ads (via smartphone, 14% GSM-modem, 35% % for extended periods of time Laptop LTE/4G) 8 25% I neither block nor plan to block ads Modem I rarely go online, and do so 40% connection (via for short periods of time telephone line) 14% % 13 20% I am not aware of ad-blocking technology

08 Media consumption in Russia – 2019

Key findings 01 Foreword

02 Research methodology Popularity of printed media, % Average paid online content spending by one‑off purchases 03 Key findings Newspapers 58 Оnline media Magazines 56 04 Media consumption in Russia RUB 500 per year 05 Data content and usage patterns have read Books Technology and media printed media 06 in the last consumption RUB % two weeks per year 07 Attitudes towards advertising Top categories 45 650 08 Media consumption in figures

General Type of printed media Top three news sources news 86% 09 Contacts

Printed media Printed books E-books Internet (news, analysis, official websites) 45% 42% 39% 78% 42%

TV Reading habits Science

and education 76 % By popularity 58% 28% By level of trust

I read freely available printed media Internet (social media and blogs) 27 % 37% 13% I sometimes buy certain printed media 18 % I do not buy printed media Politics 72% but I read what my friends buy and society 18 %

09 Media consumption in Russia – 2019

Key findings 01 Foreword

02 Research methodology Paid online content The share of Russians paid for online content, %

Video 6 03 Key findings have bought paid content 11 7 in the last 12 months % 2 Tablet uses 24 Books 9 04 Media consumption in Russia 9 Internet TV Video 5 Music 8 connection connection games Audience growth potential 5 05 Data content and usage patterns

2 All x times for paid online content Games 6 50% 38% 18 % 2 5 Technology and media Educational 1 06 3 consumption of those who purchased services 2 Electronic 1 subscriptions 1 07 Attitudes towards advertising % media 1 79 for the previous year still have it valid Subscriptions One-off purchases 08 Media consumption in figures

have and use Useful advertisement channels Top three reasons to buy / to not buy 09 Contacts a tablet % paid online content 53 Internet advertising TV advertising Outdoor advertising The content I want is not 49% +28% +15% -3% 1 available for free Paid content is of better quality 28% Internet usage behaviour on tablets 2 I go online often I think this is the right thing to do 23% 32 % and for extended periods of time 3 I go online often, The content I want is available 47% 29 % but for short periods of time 1 for free I rarely go online, but do so It is too expensive 29% 13 % for extended periods of time 2 I rarely go online, and do so I never pay for content 27% 26 % for short periods of time 3 10 01 Foreword

02 Research methodology

03 Key findings

04 Media consumption in Russia Media consumption by category Russians as media users Media usage during the day Media consumption practices Changes in media consumption in 2015–2019 Video games

05 Data content and usage patterns

Technology and media 06 consumption 07 Attitudes towards advertising

08 Media consumption in figures

09 Contacts Media consumption in Russia 11 Media consumption in Russia – 2019 | Media consumption in Russia

Media consumption by category 01 Foreword

02 Research methodology Audience reach, % Trend

Which of the following media channels have you used in the last two weeks? •• The average media reach1 in Russia 03 Key findings dropped 1 pp to 52% in 2019. 2019 2018 2017 2016 2015 •• Theater and concert attendance 04 Media consumption in Russia Internet 100* 100* 100* 100* 100* declined 4 pp over the year. Media consumption TV 91 93 92 92 94 •• Radio audience has declined by category Radio 56 59 62 58 61 for the second year running at 56%, Russians as media users Video games 48 45 50 54 53 its lowest level in the past five years. Printed media 45 44 50 52 57 Media usage •• Video game usage increased 3 pp. during the day Printed books 42 42 45 41 44 Media consumption practices E-books 39 39 42 39 44 Insights Cinemas 32 34 36 33 37 Changes in media •• The highest media consumption Theaters/concerts 13 17 15 13 16 consumption in 2015–2019 is in Moscow (56%) and other large cities (53–55%), while people living in smaller cities Video games * Based on the data collection method (online survey) and towns are less engaged with media (48% or 4 pp below the average). 05 Data content and usage patterns 56 55 54 53 48 51 52 46 53 46 48 46 55 47 54 •• Men and women use various media channels Technology and media 06 52% in almost equal amounts (51% vs. 52%). consumption Average •• Pensioners and the unemployed media reach1, 07 Attitudes towards advertising % and respondents living alone are the least active media users (6 pp below the average). 08 Media consumption in figures •• Respondents with a bachelor’s or master’s degree are significantly more active 09 Contacts in using media channels than those without higher education (7 pp higher). Moscow Students Employed Pensioners Pensioners Unemployed Respondents St. Petersburg who live alone do not live alone Respondents who Respondents

1 Average media reach for the nine selected media channels

12 Television Radio Printed media Video games 01 Foreword

Insights Insights Insights Insights 02 Research methodology The TV audience in Moscow is getting Radio is most popular with respondents Printed media is more popular with people Video games are most popular much smaller compared to other cities in Moscow (60%) and average-sized cities (62%). living in Moscow (5 pp above the average). with the residents of large cities (52%) 03 Key findings (6 pp below the average). and the North Caucasian Federal District (60%). It is also particularly popular with men The print media audience`s share is below 04 Media consumption in Russia The same trend is true for people aged 20– (+10 pp vs. women), employed respondents average among residents of the Siberian People aged 16–29 (56%) and Russians 24 (16 pp below the average). (+17 pp vs. the unemployed) and respondents and Southern Federal Districts (by 7 pp), aged 35–44 (55%) are most likely to play Media consumption with a bachelor’s or a master’s degree students (by 19 pp) and unemployed (by 6 pp), video games. by category Changes in consumption (+13 pp vs. those without higher education). as well as among those who live alone (by 13 pp). Russians as media users Television consumption declined significantly Men are likely to play more video games this year in the Urals and Siberian Federal Young people aged 16–24 are the least active Women are 5 pp more likely to read printed than women (by 17 pp). Media usage Districts (-7 pp and -6 pp respectively). radio listeners (21 pp below the average). media than men. during the day Changes in consumption Media consumption practices According to last year’s Deloitte global Changes in consumption Changes in consumption Video games fell in popularity over the year 1 Changes in media predictions, young people will continue Over the past year, the radio audience fell Print media reach fell in Moscow in Moscow (-6 pp) and St. Petersburg (-3 pp) consumption in 2015–2019 steadily reducing the amount of time they in Moscow (by 12 pp) and cities with a population (by 10 pp) and the North Caucasus federal but became more popular in other cities spend watching TV, while their watching habits of over 1 million people (by 6 pp). district (by 8 pp). and towns (up to +6 pp), and significantly Video games will change: people aged 18–24 are watching more popular in the Siberian, North more streaming services like Radio audience rose 7 pp in the Far Eastern The reading audience among respondents Caucasian and Far Eastern Federal Districts 05 Data content and usage patterns and YouTube. Our research confirmed Federal District compared to last year. aged 20–24 years also decreased (by 17 pp). (+12 pp, +10 pp and +8 pp respectively). Technology and media that the popularity of TV among people 06 aged 16–24 in Russia fell substantially Radio consumption among young people Among the residents of the Urals Federal More Russian respondents aged 16–44 consumption (by 9 percentage points). aged 16–24 fell by 15 pp. District, as well as people aged 45–49 years, played video games (+10 pp to 55%). 07 Attitudes towards advertising the print media audience has grown compared They also became more popular among to last year (by 11 and 7 pp respectively). the unemployed (+10 pp to 43%), while 08 Media consumption in figures video game popularity among the employed remained unchanged over the year (51%). 09 Contacts

1 Technology, Media and Telecommunications predictions 2018

13 Media consumption in Russia – 2019 | Media consumption in Russia

E-books Printed books Cinema Theaters/concerts 01 Foreword

Insights Insights Insights Insights 02 Research methodology E-books are more popular with residents Printed books are most popular with People living in St. Petersburg go to the cinema Theaters and concerts are most popular of Moscow than in Russia as a whole (8 pp Moscow residents (58%), respondents more often than those living in other Russian among residents of St. Petersburg 03 Key findings above the average). E-books are also more aged 20–24 and the over 65s (both 49%) cities and towns (10 pp above the average). (15 pp above the average). popular with people aged 20–24 (by 9 pp). and businessmen (50%). 04 Media consumption in Russia People aged 20–24 are more active cinema Theaters are more popular among The least active e-book users are people aged Printed books are less popular goers than respondents in other age Russians aged 40–44 and those over 65 Media consumption 60–64 (35%), unemployed Russians (30%) with unemployed people and respondents categories (at 52% or 20 pp above the average). (5 pp and 6 pp above the average respectively). by category and respondents without higher education (31%). without higher education (5 pp and 12 pp Russians as media users below the average respectively). Cinema is also popular with Russians Respondents with a bachelor’s or a master’s Changes in consumption who have children (40%). degree are more active theatergoers Media usage Smaller cities and towns were the only Women are significantly more likely than those with secondary education (by 6 pp). during the day places to see a slight increase in e-book to read printed books than men (by 12 pp). Russians over 55 are less active cinema Women go to theaters more often than men Media consumption practices consumption (+2 pp), while e-book use visitors (13 pp below the average). (7 pp higher). Changes in media declined in all other cities (-6 pp). Changes in consumption consumption in 2015–2019 All Russian cities demonstrated an increase Women visit cinemas slightly more often Changes in consumption The North Caucasian Federal District in printed book consumption, with Moscow, than men (5 pp higher). This year saw a significant decrease Video games posted a 7 pp increase in e-book St. Petersburg and the Siberian Federal District in theatergoing by residents of Moscow and other consumption, while the Northwestern leading (+7 pp, +6 pp and +6 pp respectively). Changes in consumption large cities (-6 pp and -8 pp respectively). 05 Data content and usage patterns Federal District saw a 5 pp decline. Over the past year, cinemas have Technology and media The difference between men and women become less popular among residents The share of concert- and theatre goers 06 The audience size of young people aged more than doubled, with the share of Moscow (-9 pp), and residents among men dropped (-8 pp), which means consumption 16–19 and people aged 35–39 drop of men readers falling 4 pp and the share of the North Caucasian Federal District (-10 pp). that they go there less frequently 07 Attitudes towards advertising in the year (-17 pp and -9 pp, respectively), of women readers rising 3 pp. than women, whose habits remained while those aged 20–24, 40–49 The share of moviegoers among men almost unchanged this year (17%). 08 Media consumption in figures and over 65s read e-books more often Printed books became less popular decreased (from 34 percent to 29 percent). (+7 pp, +6 pp and +14 pp, respectively). with Russians aged 16–19 and those The popularity of theaters and concerts 09 Contacts aged 50–64 (both -6 pp). However, On the other hand, Russians aged 20–24, decreased significantly among Russians aged respondents aged 25–29 and 40–44 read 40–44 and over 65 showed an upward trend 30–34 and 55–59 (-10 pp and -6 pp respectively) printed books more often than last year (+9 pp, +11 pp and +9 pp respectively). but more than doubled among the over 65s (19% (+7 pp and +6 pp respectively). vs. 9% last year). Among the employed, popularity of theatres and concerts also increased (+6 pp).

Theaters have become less popular with respondents who live alone (-5 pp) and those who live with their children (-6 pp). 14 Media consumption in Russia – 2019 | Media consumption in Russia

Russians as media users 01 Foreword

02 Research methodology Would you describe yourself as an active media user who watches TV, Trend Insights reads printed and electronic media, listens to the radio and browses the Internet The share of the most active media users People aged 16–29 are significantly more active 03 Key findings on a regular basis? Please select the response that best describes you. decreased slightly over the past year media users compared to the older generation (-3 pp) to 83%. Interestingly, the overall (the share of active media users is 92%). Yes, I am an active media user. I share news with friends/colleagues/acquaintances decline in media consumption was driven 04 Media consumption in Russia face-to-face and online (social networks, blogs, forums, etc.) by a decline in the share of most active However, the youngest respondents in this Media consumption 40 media users. Respondents generally prefer category (aged 16–19) demonstrated two 43 by category 40 to share information both face-to-face opposing trends: they either share news both 42 and online (40%), and a third (34%) only online and face-to-face (63%) or not at all (12%). Russians as media users 47 The share shares news in face‑to‑face communication. Media usage Yes, I am an active media user. However, I prefer to share news of the most People aged 50–54 are active media users during the day with friends/colleagues/acquaintances face-to-face active users: The share of those who prefer online (84%), but they prefer face-to-face over online 34 2019 – 83% Media consumption practices 34 over face-to-face communication communication (9 pp above the average). 35 2018 – 86% remains relatively low, at 9%. The older generation are the least active Changes in media 36 consumption in 2015–2019 34 2017 – 84% media users (75%). However, the share of respondents in this group who Yes, I am an active media user. However, I prefer to share news with friends/colleagues/ 2016 – 87% Video games acquaintances online (social networks, blogs, forums, etc.) prefer to share news online is in line 2015 – 89% 9 with the average for all respondents (9%). 05 Data content and usage patterns 9 9 Women use media more actively than men 9 Technology and media 06 8 (by 6 pp) and are more likely to prefer to share consumption Yes, I am an active media user. However, I prefer not to share news news both face-to-face and online (by 9 pp). with friends/colleagues/acquaintances face-to-face or online 07 Attitudes towards advertising 17 14 08 Media consumption in figures 16 13 11 09 Contacts

2019 2018 2017 2016 2015

15 Media consumption in Russia – 2019 | Media consumption in Russia

Media usage during the day 01 Foreword

02 Research methodology What type of media do you prefer? Average media usage The Internet remains the dominant per day media channel on weekdays 03 and at weekends, as shown by the average Key findings

Weekday usage period, which is much longer 3 hrs 34 min than for any other media channel. 04 Media consumption in Russia Weekend magazines)

books 3 hrs 15 min Media consumption - Printed media (newspapers and Printed books Video games None of the above Television Radio Internet E in this time period Russians spend more time by category Weekday on the Internet (by 19 minutes) and listening 2 hrs 16 min to the radio (by 10 minutes) on weekdays Russians as media users

Weekend than at weekends, but watch more Media usage On weekdays 2 hrs 43 min TV and play more video games at the weekends during the day (27 minutes and 21 minutes more). 6am to 9am 22% 14% 32% 2% 3% 1% 1% 26% Weekday Media consumption practices 1 hrs 29 min 9am to 12pm 11% 12% 52% 4% 4% 2% 2% 14% Changes in media Weekend consumption in 2015–2019 12pm to 6pm 9% 8% 57% 5% 4% 4% 4% 11% 1 hrs 50 min Video games 6pm to 9pm 29% 4% 40% 7% 4% 5% 8% 5% Weekday 9pm to midnight 28% 2% 35% 9% 4% 6% 7% 8% 1 hrs 25 min 05 Data content and usage patterns Weekend Midnight to 6am 5% 2% 14% 3% 2% 3% 3% 68% 1 hrs 15 min Technology and media 06 At weekends consumption Weekday 6am to 9am 19% 8% 20% 2% 2% 2% 1% 46% 51 min 07 Attitudes towards advertising 9am to 12pm 28% 9% 39% 3% 3% 2% 2% 15% Weekend 56 min 12pm to 6pm 17% 6% 49% 6% 3% 4% 5% 10% 08 Media consumption in figures

6pm to 9pm 26% 4% 40% 8% 4% 5% 8% 5% 09 Contacts 9pm to midnight 30% 3% 33% 6% 5% 6% 8% 10%

Midnight to 6am 6% 2% 14% 3% 1% 3% 4% 67%

Most active Fairly active Least active

16 Media consumption in Russia – 2019 | Media consumption in Russia

Media consumption practices 01 Foreword

02 Research methodology Television Internet Radio 03 Key findings I switch on the TV to find something to watch. If there is nothing I go online often and for extended periods of time, % I listen to the radio while driving, % interesting, I just leave it on in the background and/or watch 65 43 04 Media consumption in Russia the show that seems the most interesting, % 58 34 32 31 I listen to the radio at home, % Media consumption 36 62 33 25 by category I switch on the TV to watch a specific program, % 45 I go online often, but for short periods of time, % Russians as media users 25 I listen to the radio at work, % 24 14 19 20 Media usage I switch on the TV to find something to watch. 29 2 during the day If there is nothing interesting, I turn it off, % 26 22 I listen to the radio on public transport, % 23 6 Media consumption practices 22 I rarely go online, but do so for extended periods of time, % 3 Changes in media I leave the TV on in the background, % 8 10 I listen to the radio while walking, % consumption in 2015–2019 15 13 3 13 3 5 Video games I only watch TV when I have company, % 17 6 I rarely go online, and do so for short periods of time, % Weekday Weekend 05 Data content and usage patterns 5 13 13 Work day Weekend Technology and media 26 06 9 consumption 27 Printed media 07 Attitudes towards advertising Desktop PC Tablet TV I read free printed media, % Laptop Smartphone 08 Media consumption in figures 27 I buy certain printed media items, but irregularly, % The share of respondents who regularly 18 09 Contacts use their smartphones to connect I read what my friends/colleagues/relatives buy, % to the Internet for extended periods of time has risen 18 for the third consecutive year (+20 pp since 2016). I purchase certain printed media on a regular basis, % 13 I purchase printed media to pass the time, % 13 I have subscriptions to certain printed media items, % 11

17 Media consumption in Russia – 2019 | Media consumption in Russia

Changes in media consumption in 2015–2019 01 Foreword

02 Research methodology The media usage index, pp1 03 Key findings How has your media usage changed over the last three years? Trend According to the respondents, 2019 2018 2017 2016 2015 Internet usage (+62 pp) and e-book 04 Media consumption in Russia Internet +62 +59 +66 +62 +61 Higher readership (+27 pp) are still growing in 2019. usage Media consumption E-books +27 +29 +29 +31 +31 by category Average index +9 +7 +5 +6 +8 At the same time, Russians perceive a decline in readership of printed books Russians as media users Video games +7 +4 +6 +4 +10 (-9 pp), printed media (-20 pp) and television Cinema +4 +4 +3 0 +7 Media usage consumption (-4 pp). during the day Radio +2 0 -3 -4 -7 Media consumption practices Theaters/concerts +2 +6 -2 0 +3 Respondents reported an increase Television -4 -7 -11 -8 -5 in video game usage (+7 pp) in 2019. Changes in media -9 -12 -18 -16 -9 consumption in 2015–2019 Printed books Lower Printed media -20 -26 -22 -24 -17 usage Despite of radio audience decline mentioned Video games above, radio consumption among those who still use it has increased slightly in 2019 – 05 Data content and usage patterns for the first time since 2015 (+2 pp). Technology and media 06 A similar situation exists with theatres consumption and concerts: the share of visitors decreased, but attendance frequency by the remaining 07 Attitudes towards advertising visitors rose (+2 pp). 08 Media consumption in figures The perceived decline in the readership of printed books slowed for the second year 09 Contacts in a row (from -18 pp in 2017 to -9 pp in 2019).

Television consumption demonstrated a similar trend (from -11 pp in 2017 to -4 pp in 2019).

1 The media usage index is calculated as follows: [The proportion of respondents who indicated higher usage minus the proportion indicating lower usage] 18 Media consumption in Russia – 2019 | Media consumption in Russia

01 Foreword

02 Research methodology Insights

03 Key findings Internet E-books Printed books Television

04 Media consumption in Russia Internet has the highest media usage index Despite the fact that the audience for e-books The usage index for printed books is -9 pp. In 2019, the usage index for television (+62 pp) of all channels. remains stable (see p. 12), the users noted was -4 pp, with the decline slowing Media consumption that they were reading them a lot more Printed books saw the biggest decline for the second year in a row. by category Young people aged 16–19 are the most active frequently: the media usage index is +27 pp. among people living in the Far Eastern Internet users with the usage index of +77 pp. Federal District and people aged 45–49 Television is particularly unpopular Russians as media users People aged 40–44 and over 65s shared This year men and people who live alone (-26 pp and -25 pp, respectively). among the 16–24 age group Media usage second place (both with +71 pp). reported reading e-books more often and people living in the Northwestern during the day (+31 pp and +35 pp, respectively). At the same time, people aged 16–29 Federal District (the usage index was Media consumption practices The Internet usage index grew and respondents who live in St. Petersburg -21 pp and -18 pp respectively). above average in Moscow and cities The numbers are even higher for freelancers indicated spending more time reading Changes in media with 500,000 to one million inhabitants (+49 pp) and respondents with a secondary printed books (+10 pp and +12 pp, respectively). Only residents of the Far Eastern Federal consumption in 2015–2019 (+68 pp and +65 pp, respectively). education (+39 pp). Among the Russians aged District and pensioners (+16 pp and Video games 16–24 reading frequency is increasing (+44 pp), +12 pp respectively) has high usage indexes. There were also high growth despite a certain drop in audience size. 05 Data content and usage patterns in the Far Eastern Federal District (+75 pp). Printed media Technology and media 06 The usage index for printed media Respondents aged over 60 reported consumption is the lowest of all media channels (-20 pp). a steep decline (-32 pp) as well 07 Attitudes towards advertising as those with higher incomes (-27 pp). The strongest decline in the use of printed 08 Media consumption in figures media was registered for people living in smaller cities and towns and the Northwestern Federal 09 Contacts District (-25 pp and -41 pp, respectively).

19 Media consumption in Russia – 2019 | Media consumption in Russia

Video games 01 Foreword

02 Research methodology Popularity of video games

03 Key findings 41 41 31 47 52 49 27 42 37 53 39 50 33 38 43 38 36 46 48 46 40 48 Trend Insights Almost half of the respondents (48%) Older generations tend to play video games less play video games, with online and offline often than young people (48–53 % for Russians 04 Media consumption in Russia 41% 44% Offline games having almost equal shares aged 16–29 vs. 27–31% for those aged over 60). Online Media consumption games (41% and 44% respectively). games by category Video games are much more popular among Russians mostly play video games men than women (49% vs. 33% for online Russians as media users for pleasure, as reported by 80–82%. games and 52% vs. 38% for offline games). Media usage during the day However, the reasons for playing Video games are especially popular in million‑plus Media consumption practices offline and online games differ slightly. cities and cities with 500,000 to one million Moscow Ages 60+ Ages 16–29 Ages 45–59 Russians are more likely to play offline inhabitants (2–5 pp above the average). Changes in media Ages 30–44 Online games

St. Petersburg video games to pass the time (by 9 pp), consumption in 2015–2019 Offline games while online games are used more often Video games are 9 pp more popular in large Video games to socialize with other people (by 8 pp). cities vs. smaller cities and towns.

Reasons for playing video games, % 05 Data content and usage patterns A not insignificant share of respondents Women selected relaxation as the reason Leisure/entertainment who play video games (6–7%) for playing online games more often than men Technology and media 82 Online games use educational video games. (by 7 pp) while men were more likely to cite 06 80 consumption Offline games the social aspect of gaming (by 4 pp). Relaxation Only 1–2% of gamers see gaming 07 Attitudes towards advertising 31 28 as a source of income. Men tend to use offline games for relaxation Way to pass time (6 pp higher vs. women). 08 Media consumption in figures 26 35 Young respondents are more likely to play 09 Contacts Socializing/communication online video games for socializing than older 13 5 generations (19%). Russians aged 30–59 more Self-development/education commonly use online video games to pass time 7 (28%), while over 60s mostly play to relax (38%). 6 Earning income 2 1

20 Data content and usage patterns 01 Foreword

02 Research methodology

03 Key findings

04 Media consumption in Russia

05 Data content and usage patterns News sources News source ranking by trust level Attitudes towards the media: Russian or foreign source? The most popular content for each media TV content Reasons for using Internet Paid online content Video content

Technology and media 06 consumption 07 Attitudes towards advertising

08 Media consumption in figures

09 Contacts

21 Media consumption in Russia – 2019 | Data content and usage patterns

News sources 01 Foreword

02 Research methodology Top 3 news sources Russians of all ages named the Please select the top two sources you go to for the news (%) Internet (news, analytics and official Internet (news, analytical,

87 03 Key findings 85 official websites) websites) as a key news source 83

in 2019. Television still ranks second 78 71 78% 69 04 Media consumption in Russia 67

for the majority of age groups. The importance 67 66 64

2019 62 of television as a key news source tends to increase with the age of respondents 55 05 Data content and usage patterns Television 45 (from 28% for the 16–24 age range News sources 58% to 66–69% for over 45s). The importance 35

2019 28 27 News source ranking of news, analytics and official websites grows 25 26 with the age of respondents (from 64% by trust level Internet (social media and blogs) 10 9 8 8

to 87%), while the importance of social media 7 7

6 Attitudes towards the media: 4 5 4 4 37% and blogs declines (from 67% to 25–26%). 3 Russian or foreign source? 2019 Internet Internet (social Printed media Radio TV The most popular content Change in the importance of news sources (official websites) media and blogs) for each media The importance of social media and blogs as a key news source increased significantly TV content Ages 16–24 Ages 25–34 Ages 35–44 Ages 45–54 Ages 55–64 Ages 65+ over the year (+7 pp), with the highest increase Reasons for using Internet among the 16–34 age range (+8–10 pp). Paid online content The importance of television waned in 2019 (-9 pp on average), with the most notable Video content decline among 16–24 year olds (-13 pp). Technology and media 06 consumption 07 Attitudes towards advertising

08 Media consumption in figures

09 Contacts

22 Media consumption in Russia – 2019 | Data content and usage patterns

News source ranking by trust level 01 Foreword

02 Research methodology If different news sources report on the same event differently, which source will you believe? Which news source do you trust most? 03 Key findings

Internet (official websites), % Newspapers, % 42 2 2019 04 Media consumption in Russia 42 1 2018 40 1 35 3 2017 05 Data content and usage patterns 40 3 2016 News sources TV, % Magazines, % 2015 28 1 News source ranking 30 0 30 1 by trust level 28 1 29 0 Attitudes towards the media: Russian or foreign source? Internet (social media and blogs), % 13 The most popular content Trend Insights 10 for each media 11 News, analytics and official websites The highest trust in television was reported by people 13 are the most trusted new sources in Russia. living in smaller cities and towns (30%), respondents TV content 14 aged 30–44 (33%), pensioners (34%) and Russians Word of mouth, % Reasons for using Internet Trust in established news websites grew without higher education (32%). 6 6 most this year among unemployed respondents Paid online content 6 and those who live alone (+6 pp). Students have the lowest levels of trust in television 8 (13 pp below the average). Video content 8 Television lost trust from people living in cities Radio, % Technology and media with a population of 500,000 to one million Residents of large cities have less trust in established 06 3 consumption 3 and residents of the Urals Federal District news websites than their counterparts in smaller 3 (-6 pp and -8 pp respectively) but gained cities and towns (+4 pp higher). 07 Attitudes towards advertising 2 2 trust from those living in the Far Eastern Federal District (+7 pp). Muscovites were most likely to cite social media and blogs 08 Media consumption in figures as trusted news sources (4 pp above the average). Social media and blogs reversed their 09 Contacts declining trust level in 2019, with 13% People aged 16–29 displayed the highest trust in of Russians citing them as the most social media, with almost every fifth respondent (19%) trusted news source. saying they trust this news source. However, this view is shared by only 6% of respondents aged over 65.

23 Media consumption in Russia – 2019 | Data content and usage patterns

Attitudes towards the media: Russian or foreign source? 01 Foreword

02 Research methodology Is it important whether information comes from a foreign or Russian source? Trend Insights Almost two thirds of Russians (64%) say Students are more interested in foreign 03 Key findings I prefer Russian sources, % it matters where information comes from. sources (9 pp above the average). 56 2019 This group was also most likely to be indifferent 59 •• Despite a steady decline over the past 2018 about the origin of news sources (56%). 04 Media consumption in Russia 58 five years (-8 pp), the majority (56%) 62 2017 64 still prefer Russian sources. The most popular 2016 Russian news sources are more popular 05 Data content and usage patterns Russian news sources are newspapers (60%) I prefer foreign sources, % 2015 with residents of the Far Eastern Federal District and television (59%). News sources 8 (61%) and people aged over 35 (62%). 7 News source ranking 6 •• The share of respondents preferring 6 foreign sources remains relatively small Foreign magazines are increasingly favored by trust level 6 (8%) but has increased for the second year by respondents living in St. Petersburg Attitudes towards the media: It doesn’t matter, % running. Preference for foreign sources (3 pp above the average). Russian or foreign source? 36 reaches 11% for established news websites. 34 The most popular content Higher income respondents have a greater 36 •• Respondents are most indifferent to the for each media 32 preference for foreign television channels 30 origin of the magazines they read or the (5 pp above the average). TV content public opinion they hear: 39% and 41% respectively have no preference about Reasons for using Internet The origin of a new source is not important whether this information comes from foreign Preferred Russian and foreign news sources in 2019, % to 44% of Moscow residents and 43% or Russian sources. Paid online content of St. Petersburg residents. Average 56 8 36 Video content

TV 59 9 32 Russian television is more popular Technology and media with pensioners (74%). 06 Radio 56 6 38 consumption Newspapers 60 6 34 07 Attitudes towards advertising Magazines 53 8 39 News, analytics, official websites 56 11 33 08 Media consumption in figures Social media, blogs 56 7 37 Public opinion 54 5 41 09 Contacts

I prefer Russian sources I prefer foreign sources It doesn’t matter

24 Media consumption in Russia – 2019 | Data content and usage patterns

The most popular content for each media 01 Foreword

02 Research methodology What content do you prefer? How often do you access it? How long do you listen/watch/read the content you specified each day? 03 Key findings Television Annual change Annual change Printed media Annual change Annual change 04 Media consumption in Russia TV series 2.9 times1 +0.3 2 hrs 05 min2 8 min Popular science 1.6 times1 +0.1 33 min2 1 min Movies 3.9 times1 +0.2 2 hrs 04 min2 2 min and education 05 Data content and usage patterns General news 4.0 times1 -0.2 1 hrs 01 min2 0 min Politics and society 1.8 times1 0 30 min2 1 min (daily news) General news 2.2 times1 -0.1 28 min2 1 min News sources (daily news) News source ranking by trust level Radio Annual change Annual change Online podcasts Attitudes towards the media: Russian or foreign source? Foreign music 3.4 times1 0 1 hrs 09 min2 3 min Movies, music, art 2.2 times1 53 min2 Russian music 3.6 times1 +0.1 1 hrs 08 min2 0 min Popular science and education 1.9 times1 44 min2 The most popular content Information programs 3.5 times1 +0.2 45 min2 11 min Current affairs 2.4 times1 41 min2 for each media (news, weather) TV content Reasons for using Internet TV news and sports are more favored by men Pensioners watch TV news more than five times Russian music is more popular with residents People living in Moscow, St. Petersburg Paid online content and especially older men. Women, and again a week (the highest figure of all respondents). of average-sized and smaller Russian and average-sized cities and towns have the especially older women, prefer TV series. Students watch TV news twice per week or less. cities than with people living in Moscow highest interest in printed media, and young Video content and St. Petersburg. people aged 16–19 have the lowest. Residents of Moscow and other million-plus People with higher incomes generally Respondents with higher incomes are more Technology and media 06 cities tend to watch sports and political tend to watch less TV series. Residents of the Urals Federal active readers of printed news media. consumption TV shows more frequently than those District and respondents without 07 Attitudes towards advertising of other Russian cities. The youngest age groups up to 35–45 year higher education are most interested Podcasts have been gaining ground recently, olds tend to listen to music on the radio more, in radio entertainment shows. with 43% of Internet users citing them 08 Media consumption in figures however, declining for people aged over 45. among their preferred news sources. The top categories are movies, music, art, popular science and education and current affairs. 09 Contacts

1 Average frequency per week 2 Average time spent per day

25 Media consumption in Russia – 2019 | Data content and usage patterns

TV content 01 Foreword

02 Research methodology Do you think it is necessary to assign age ratings Russia is switching over from analogue to digital TV in 2019. for TV content (0+, 6+, 12+,16+, 18+)? Have you experienced any difficulties when switching to digital TV (please specify)? 03 Key findings

04 Media consumption in Russia 7% 2% Yes, it helps to protect children I have switched Yes, other reasons 16% with difficulties 05 Data content and usage patterns No, it has no effect without difficulties No, other reasons I haven’t switched yet 43% 31% 69% News sources 42% I don’t know News source ranking 53% by trust level

6% Attitudes towards the media: Russian or foreign source? The most popular content for each media Russians have mixed feelings about age ratings Russia is switching over from analogue Key challenges of going digital TV content for TV content. Almost half of the respondents to digital TV in 2019. At the time of our •• I need to buy additional equipment (8%); (49%) believe that age ratings are necessary survey, 31% of respondents had not yet Reasons for using Internet to help protect children from certain content, •• I do not have enough information (5%); switched over to digital. Among those who Paid online content while other respondents (44%) think that age had, the majority (53%) did not encounter •• I need to tune my TV (4%); ratings have no effective and are unnecessary. any difficulties, which suggests that Video content •• Additional equipment is expensive (3%); the transition is going rather smoothly. Women, respondents aged 30–44, Technology and media 06 and respondents who have children On the other hand, 8% of Russians consumption tended to appreciate age ratings surveyed said they had to buy additional 07 Attitudes towards advertising somewhat more often than other groups equipment, with 3% noting its high price. (54%, 56% and 54%, respectively). Moreover, 5% of respondents said they 08 Media consumption in figures did not have enough information about how to switch to digital TV, while 4% had difficulties when retuning their TVs to the digital signal. 09 Contacts

26 Media consumption in Russia – 2019 | Data content and usage patterns

Reasons for using Internet 01 Foreword

02 Research methodology How much time do you spend online for the following activities Trend Insights on weekdays and at weekends? The reasons for accessing the Internet Women go online for informal communication 03 Key findings remained generally unchanged from last more often (by 5 pp). They also browse the web Percentage of users Average time spent year. Respondents mainly go online to search without any specific purpose more frequently 04 Media consumption in Russia Weekday Weekend Weekday Weekend for information, check for updates on social than men (by 6 pp). Men, however, are more media and talk to friends. The same proportion likely to download movies and music and listen I search for information, 96% 88% 1 hrs 33 min 1 hrs 14 min of respondents check their social media to podcasts (by 11, 7 and 4 pp respectively). 05 Data content and usage patterns including information needed for work, educational accounts and communicate with friends News sources or personal reasons online at weekends and on weekdays, People aged 30–44 have the highest share News source ranking I check for updates on my 90% 90% 1 hrs 13 min 1 hrs 16 min which illustrates how far social media has of the respondents who go online to work (92%) personal social media accounts penetrated the everyday lives of Russians. and respondents on higher incomes (90%). by trust level

Skype, email, blogs, Attitudes towards the media: forums, social media Interestingly, 74–75% of Russians go online Pensioners’ use of the Internet for shopping Russian or foreign source? informal communication 89% 89% 1 hrs 18 min 1 hrs 21 min for work and business/formal communication and listening to music and radio declined The most popular content formal communication 86% 75% 1 hrs 20 min 1 hrs 9 min purposes, even at weekends. significantly compared to the previous year for each media I use the Internet for work 82% 74% 2 hrs 1 hrs 40 min (-17 pp and -19 pp respectively). Large cities saw

I read news, newspapers, 81% 72% 59 min 1 hrs 2 min The share of users who download movies, a major decrease in the share of respondents TV content books, blogs music and books online has decreased who download movies and , music Reasons for using Internet noticeably over the year (by more and books (-27, -31 and -28 pp respectively). I watch movies and videos 76% 81% 1 hrs 50 min 2 hrs 1 min than 20 pp). This data was not included Paid online content I make purchases online 74% 73% 51 min 56 min in the table to the left. I listen to the radio and music 73% 71% 1 hrs 25 min 1 hrs 22 min Video content No specific purpose 66% 60% 1 hrs 19 min 1 hrs 31 min Technology and media An expert’s view 06 I download movies and videos 50% 53% 1 hrs 14 min 1 hrs 19 min “Increased online video viewing is a major trend today. In terms of minutes spent each day consumption by users, video viewing already exceeds all other online activities. We expect this trend to gain pace. I download music 49% 51% 59 min 1 hrs 4 min 07 Attitudes towards advertising Therefore, one of the company’s key priorities is the development of video services such as Yandex.Efir.” I download books 45% 45% 58 min 1 hrs 3 min Leonid Savkov, Commercial Director, Yandex I listen to podcasts 37% 38% 1 hrs 4 min 1 hrs 10 min 08 Media consumption in figures

I only browse the web 21% 20% 1 hrs 30 min 1 hrs 32 min with my friends/colleagues/ 09 Contacts acquaintances

27 Media consumption in Russia – 2019 | Data content and usage patterns

Please specify the Internet resources that you use. YouTube and VKontakte are the most 01 Foreword What type of users create the content that you consume most often? popular Internet resources, (attracting 86% Do you use the Internet resources listed more or less often than last year? and 80% of Russians respectively) followed 02 Research methodology by Odnoklassniki (57%), Instagram (52%) Usage Sources of content Change and Facebook (44%). 03 Key findings as a key in usage1 resource Friends Celebrities Amateur users Communities Mass Other and other media Telegram has retained its popularity 04 Media consumption in Russia YouTube 86% 7% 37% 32% 7% 11% 6% +29 pp among Russians (25%) despite official attempts to block it. VKontakte 80% 51% 9% 10% 23% 3% 4% +15 pp 05 Data content and usage patterns

Odnoklassniki 57% 73% 5% 10% 6% 2% 5% -3 pp Respondents report using YouTube more News sources Instagram 52% 37% 34% 15% 8% 2% 3% +19 pp (+29 pp), and social media channels such News source ranking as VKontakte (+15 pp) and Instagram (+19 pp). Facebook 44% 43% 16% 17% 14% 5% 6% -3 pp by trust level

News websites 34% 2% 11% 12% 8% 64% 4% +5 pp YouTube, the most popular platform, is primarily Attitudes towards the media: Russian or foreign source? Telegram 25% 34% 21% 12% 25% 4% 5% +5 pp used to consume content created by celebrities (37%) and other amateur users (32%). Twitter 18% 21% 33% 24% 11% 7% 4% -3 pp The most popular content for each media Pinterest 12% 9% 8% 58% 13% 5% 6% +1 pp On social media sites such as VKontakte, TV content LiveJournal 7% 9% 44% 30% 12% 2% 4% -2 pp Odnoklassniki and Facebook, users prefer content created by their friends. Snapchat 6% 40% 13% 15% 7% 5% 21% -1 pp Reasons for using Internet This is especially true for Odnoklassniki LinkedIn 6% 24% 13% 40% 15% 2% 7% -2 pp (73%), while VKontakte users are much Paid online content Stream 5% 6% 52% 19% 10% 5% 8% 0 pp more interested in content created by public Video content Moi Krug 5% 44% 11% 27% 8% 4% 6% -2 pp groups (23%). Facebook users give far higher preference to celebrity content (16%) Technology and media TikTok 4% 19% 22% 45% 5% 5% 3% 0 pp 06 and content created by amateur users (17%). consumption 07 Attitudes towards advertising An expert’s view “In Russia, influencer advertising is becoming an integral part of any major activation. We see that advertisers’ focus is shifting 08 Media consumption in figures substantially towards Instagram. However, in contrast to last year, when top bloggers and celebrities were most popular, now there are many new campaigns using mid-level and microinfluencers. In terms of costs per impression, bloggers ads may be significantly more efficient than traditional ones which means that the market still has significant growth potential.” 09 Contacts Sergey Kovalyov, Technical Manager, NativeFlow.io

1 The Internet resource visit index is calculated using the formula: [the share of respondents who began using a resource more often minus the share of those who began using a resource less often]

28 Media consumption in Russia – 2019 | Data content and usage patterns

Paid online content 01 Foreword

02 Research methodology The share of Russians paid for online content, % Trend Insights About a quarter of Russians (24%) have bought The share of those who have paid for online 03 Key findings Have you consumed paid online content over the last year? content online in the past 12 months, primarily content over the past year is higher among videos (11%), books (9%) and music (8%). One high-income respondents (5 pp above the Videos in five Russians made one-off media content average). 04 Media consumption in Russia 6 11 Subscriptions purchases while 13 percent of the respondents 7 One-off purchases did so as part of a subscription plan. Young people aged 16–29 purchase content 05 Data content and usage patterns Books on the Internet more often than others 2 News sources 9 9 When buying books and games, Russians are (13 pp above the average). Music 2-4 times more likely to make one-off purchases News source ranking 5 than to buy subscriptions. However, roughly Men pay for games more often than women by trust level 8 5 the same number of Russians are buying video (by 4 pp), while women are more likely Attitudes towards the media: Games All and music subscriptions and making one- to go online to buy books (by 3 pp). Russian or foreign source? 2 6 off purchases. 5 The most popular content The popularity of the subscription model also Educational services for each media 1 rises with the level of income (from 10% to 19%). 3 2 TV content Electronic media 1 Reasons for using Internet 1 1 Paid online content Video content

Technology and media 06 consumption 07 Attitudes towards advertising

08 Media consumption in figures

09 Contacts

29 Media consumption in Russia – 2019 | Data content and usage patterns

Reasons for buying paid content online, % Trend Insights 01 Foreword As people have the option of using free Residents of large cities are much more likely The content I need is not available for free 49 content, many respondents (47%) see to pay for content because it is the right thing 02 Research methodology

Paid content is better quality 28 no point in paying for it. On the other hand, to do than their counterparts in smaller cities almost half of those who buy content (49%) (29% vs. 17%), because they want to support 03 Key findings I think this is the right thing to do 23 do so because the content they need content creators (16% vs. 9%) or because I want to avoid advertisements 17 is not available for free, which indicates that they do not want to break the law (17% vs. 9%). 04 Media consumption in Russia I don’t want to break to the law 13 Russians are willing to pay for exclusive content. Websites offering free content can be malicious 12 Among Russians aged 16–29, 39% do not buy 05 Data content and usage patterns I want to support content creators 11 Other common reasons for not buying content online because it is too expensive. content on the Internet include its high At the same time, respondents over 60 usually News sources I received subscription as a gift/bonus for buying a PC/TV set, etc. 11 price (28%) and a general hostility towards pay for content because they cannot find I get access to additional functions 10 News source ranking paying for content (27%). it for free (63%) or they think that websites by trust level offering free content can be malicious (18%). In contrast, those who do pay for content Attitudes towards the media: Russian or foreign source? Reasons for not buying paid content online, % say that they get a higher quality product Respondents with lower incomes are the most (28%). Ethical reasons matter too: 23% price sensitive: a third of those who do not The most popular content The content I need is available for free 47 of the respondents pay for content because buy content on the Internet (34%) indicated for each media they believe it is the right and fair thing that it is too expensive. In contrast, the share Paid content is too expensive 28 TV content to do, 11% want to support content creators, of lower income respondents who pay I never pay for content 27 and another 13% do not want to break the law. for content because they cannot access Reasons for using Internet I think that websites offering paid content are not secure 8 it for free is 13 pp higher than for other groups. Paid online content Importantly, 17% of those who pay, do so to avoid ads. Of the paying respondents, Video content 11% received subscriptions as a gift from friends or a bonus for buying a device and 10% Technology and media 06 did so to get access to additional functions. consumption Concerns that websites offering free content 07 Attitudes towards advertising can be malicious was cited by 12%. 08 Media consumption in figures

09 Contacts

30 Media consumption in Russia – 2019 | Data content and usage patterns

01 Foreword

02 Research methodology Number of active subscriptions, % Would you consider buying content online in the future? (of those who have purchased content in the last 12 months) 03 Key findings

None 21 Yes 21% 04 Media consumption in Russia One 37 Possibly yes Two-three 36 No 40% 05 Data content and usage patterns Four-six 3

Seven-ten 2 News sources More than ten 0 39% News source ranking by trust level Attitudes towards the media: Russian or foreign source? Average paid content spending in the past 12 months, RUB The most popular content Last year, in its global research,1 This indicates that Russians for each media One-off purchases Subscriptions Deloitte predicted a considerable increase are very conservative when it comes TV content Video content 550 1,000 in content subscriptions. Our survey showed to spending money and prefer making Books 650 650 that 13 percent of our Russian respondents one-off purchases, buying short-term Reasons for using Internet have bought an online subscription in 2019. subscriptions or using special offers. Music content 700 750 Paid online content Of those who had purchased subscriptions, Games 1,700 2,700 79 percent had at least one active subscription On the other hand, one in five Russians Video content Educational resources 1,100 1,150 when the survey was taken, with 37 percent (21%) intend to consume paid content using only one service and 36 percent having in the future, and another 39% say they Technology and media Electronic media 500 400 06 two or three paid subscriptions (just 6 percent may do so. As only 24% of the population consumption had four or more active subscriptions). currently buy subscriptions, the potential 07 Attitudes towards advertising market could grow two-fold. An analysis of the Russians’ average 08 Media consumption in figures spending on online content in the last On the other hand, 40% of Russians would not 12 months shows that they spend much less even consider paying for online content. on annual subscriptions than the actual cost 09 Contacts of these subscriptions on the Russian market. This suggests that Russians spend their money cautiously and make one-off purchases 1 Technology, Media and Telecommunications predictions 2018 or only pay for short-term subscriptions.

31 Media consumption in Russia – 2019 | Data content and usage patterns

Video content 01 Foreword

02 Research methodology Which of the following online video services do you access to watch video content? (%) Which of the following online video services do you access to watch paid video content? (%) 03 Key findings YouTube 89 Ivi 51 VKontakte Megogo 59 28 04 Media consumption in Russia Yandex 52 Amediateka 28 Odnoklassniki 36 Kinopoisk 24 05 Data content and usage patterns Instagram 32 Okko 22 News sources Kinopoisk 26 Netflix 19

Movie streaming services 25 Interactive TV/IPTV 16 News source ranking by trust level Facebook 20 Digital stores (iTunes, , etc.) 13

Other websites with TV-series, movies and cartoons 19 Paid services from TV channels 9 Attitudes towards the media: Russian or foreign source? RuTube 17

Twitch.tv 3 The most popular content Movie streaming services (of those who for each media TikTok 3 % bought online content in the last 12 months) 86 TV content

Trend Insights Reasons for using Internet YouTube is by far the most popular Netflix launched in Russia in 2016, People aged 16–29 and respondents Women are more likely to use Ivi than men Paid online content video hosting service, accessed has a 19% share of the paid content market. with higher incomes are most likely (by 16 pp), while men more frequently by 86% of respondents. More than half to pay for online content (both 20% go for Netflix, Kinopoisk, interactive TV and paid Video content of the respondents also watch video content In addition to movie streaming services, or 7 pp above the average). channels (by 5, 7, 10 and 6 pp, respectively). on VKontakte (59%) and Yandex (52%). respondents use interactive TV offered Technology and media 06 by broadcasting companies (16%), digital People living in large cities are more People aged 16–29 use Amediateka more consumption Paid video services are also gaining traction. stores such as iTunes or Google Play (13%), frequent customers of digital stores often (39%), while Russians aged 45–59 report 07 Attitudes towards advertising As mentioned earlier, only 11% of Russians while Paid services from TV channels are ranked (iTunes and Google Play) and paid channels the widest usage of interactive TV (24%). pay to access videos online. in last place (9%). (11 and 3 pp above the average respectively). 08 Media consumption in figures Russians mostly consume paid video content using movie streaming services, which account for 86% of the market. Ivi 09 Contacts tops the list (51%), followed by Megogo and Amediateka (28% each).

32 01 Foreword

02 Research methodology

03 Key findings

04 Media consumption in Russia

05 Data content and usage patterns Technology Technology 06 and media consumption Attitudes towards new gadgets Russian household ownership and media consumption of media devices Devices used to watch video Popularity of smartphone features Messengers Access to media by connection type

07 Attitudes towards advertising

08 Media consumption in figures

09 Contacts

33 Media consumption in Russia – 2019 | Technology and media consumption

Attitudes towards new gadgets 01 Foreword

02 Research methodology Would you describe yourself as a gadget enthusiast? Please select the statement that most applies to you. 03 Key findings I prefer tried-and-tested, established devices to the latest trends, % I will only buy a new device once it has gone mainstream and there are no alternatives, % 39 7 2019 35 9 2018 04 Media consumption in Russia 39 6 40 10 2017 8 35 2016 05 Data content and usage patterns 2015 Technology and media I conduct extensive research before buying new gadgets to select the best one, % I do not typically buy devices myself. It is usually a gift, a company-provided device or other, % 06 28 8 consumption 30 6 30 5 Attitudes towards new gadgets 29 4 31 4 Russian household ownership of media devices I like to buy new gadgets before they go mainstream, % I buy new gadets as soon as they appear on the market. I like to be one of the first adopters, % Devices used to watch video 13 4 14 5 Popularity of smartphone 14 5 features 11 5 16 5 Messengers Access to media Trend Insights by connection type The majority of Russians take Only 4% of early adopters look to buy Most early-adopters live in Moscow Residents of small towns, the elderly, 07 Attitudes towards advertising a rational approach when buying the latest gadgets as soon as they appear and other million-plus cities unemployed and people on lower gadgets, with over a third of them (39%) on the market, and 13% prefer to buy new (2 pp above the average) and are aged incomes are more conservative and prefer looking for tried‑and-tested devices gadgets before they become mainstream. 16–19 (3 pp above the average). tried‑and-tested devices (3, 5, 4 and 7 pp 08 Media consumption in figures and another 28% selecting a new product above the average respectively). only after extensive research. Notably, the share of Russians who do not buy People in smaller cities and towns tend 09 Contacts a device themselves has doubled over the past to buy fewer new gadgets (2% vs. 6% People on higher incomes are much more three years (8% in 2019). cent in large cities). likely to be first adopters of new gadgets (9%) than their less well-off peers (1%).

34 Media consumption in Russia – 2019 | Technology and media consumption

Russian household ownership of media devices 01 Foreword

02 Research methodology Do you own any of the devices listed below? Trend Insights If yes, please specify how you use them. The top three most common devices The most significant drop in TV usage was 03 Key findings in Russian households remain unchanged: recorded for Muscovites, men, people aged 36 61 72 43 61 36 41 36 21 21 20 9 4 •• TV sets (96%) hold onto the top spot 20–24 and people without higher education 91 96 (-21, -11, -21, and -11 pp respectively). 04 Media consumption in Russia 80 despite losing some popularity over +82 1 79 79 +89 the last year (-2 pp). The usage index for TVs +69 The popularity of car stereos plummeted 05 Data content and usage patterns +59 +69 declined by seven points, falling to 82%, in Moscow (-20 pp) and among respondents 64 64 64 which suggests that some Russians stopped Technology and media 06 58 59 +43 using their TVs even if they own one. aged 30–34 and 50–54 (both -12 pp). consumption +42 +38 •• Smartphone (91%). According Deloitte’s 2018 global forecasts2 predicted Attitudes towards new gadgets 40 39 to Deloitte’s 2018 global forecasts2, that older users would be the main +22 the popularity of smartphones will continue Russian household ownership 28 +25 driver behind the explosive popularity of media devices +11 to surge. In line with this trend, smartphone +10 of smartphones. As forecast, smartphone penetration on the Russian market rose Devices used to watch video usage increased most among pensioners by 1 percentage point to 91 percent in 2019, this year (soaring 13 percentage points). Popularity of smartphone while the smartphone usage index gained features -6 2 percentage points to 89 percent, making -3 -1 -1 -3 +1 -3 -7 -5 +1 -2 0 +2 -7 The DVD and VCR usage index dropped Messengers 1 smartphones the most popular device. Annual change in the usage index , pp the most significantly in smaller cities •• PCs (80%) round out the top three, and towns (-15 pp), among students (-26 pp) Access to media PC just edging out laptops (79%). The usage and respondents on lower incomes (-18 pp). by connection type TV set Tablet E-book index for both PCs and laptops is 69%. DVD, VCR DVD, VCR Car stereo 07 Attitudes towards advertising

Smartphone Muscovites, respondents on higher Audio system Mobile phone phone Mobile Radio at home Portable player Portableplayer (MP3, iPod, etc.) Notably, car stereos have seen a significant

Laptop, netbook Laptop, incomes and people aged 25–34 decrease in the usage index (-7 pp). 08 Media consumption in figures Video game console are the most active users of game consoles (+14–19 pp above the average). 09 Contacts Yes, % No, % Usage index1, %

1 The usage index: [the share of respondents who own and use a device minus the share of those who own a device without using it] 2 Technology, Media and Telecommunications predictions 2018

35 Media consumption in Russia – 2019 | Technology and media consumption

01 Foreword

02 Research methodology Which devices do you use to watch TV? How often? Which devices do you use to surf the Internet? How often?

03 Key findings TV set Smartphone Desktop PC Laptop Tablet Smartphone Laptop Desktop PC Tablet TV set

95% 61% 59% 58% 38% 88% 74% 70% 50% 47% 04 Media consumption in Russia

05 Data content and usage patterns 5.3 Days 3.0 Days 2.6 Days 2.4 Days 1.4 Days 5.2 Days 3.8 Days 3.7 Days 2.1 Days 2.1 Days per week per week per week per week per week per week per week per week per week per week Technology and media 06 Time per day Time per day Time per day Time per day Time per day Time per day Time per day Time per day Time per day Time per day consumption Attitudes towards new gadgets 2 hrs 32 min 1 hrs 49 min 1 hrs 39 min 1 hrs 33 min 1 hrs 15 min 2 hrs 57 min 2 hrs 46 min 3 hrs 1 min 1 hrs 39 min 2 hrs 3 min Russian household ownership of media devices Devices used to watch video Popularity of smartphone Which devices do you use to play video games? How often? Which devices do you use to listen to the radio? features Messengers Smartphone Desktop PC Laptop Tablet Game console Car stereo Radio at home Mobile phone/ Desktop PC Portable player 54% 44% 40% 18% 14% smartphone (IPod, etc.) Access to media 49% 29% 21% 20% 6% by connection type 07 Attitudes towards advertising 4.3 Days 4.1 Days 4.0 Days 3.7 Days 3.3 Days per week per week per week per week per week 08 Media consumption in figures

09 Contacts

36 Media consumption in Russia – 2019 | Technology and media consumption

Devices used to watch video 01 Foreword

02 Research methodology Which devices do you use to watch videos online? Compared to the previous year, Trend Insights which devices do you use more or less often to watch videos online? Smartphones are the most popular Women use smartphones to watch 03 Key findings devices for watching videos online, videos online more often than men with almost two thirds (63%) using them (by 10 pp), but are less likely to use PCs Smartphone Laptop Desktop PC Tablet TV set to consume online video content. In addition and TVs (15 and 7 pp less respectively vs. men). 04 Media consumption in Russia 63% 54% 45% 24% 22% to being the most commonly used devices for browsing videos online, smartphones Older age categories are less likely to use 05 Data content and usage patterns have the fastest growing usage index (+35%). their smartphones to watch videos (from 84% Technology and media for ages 16–29 to 41% for the over 60s). 06 +35% +14% +5% +5% +4% consumption Laptops and PCs rank second and third The usage index1 However, older Russians increasingly by popularity (54% and 45% respectively). prefer PCs (from 33% for ages 16–29 Attitudes towards new gadgets to 53% of over 60s). Russian household ownership TVs are still the least popular way of watching of media devices online videos, but their use is growing (+4%), Devices used to watch video almost reaching the level for PCs and tablets. Popularity of smartphone features Messengers Access to media by connection type

07 Attitudes towards advertising

08 Media consumption in figures

09 Contacts

1 The usage index: [the share of respondents who indicated more frequent use minus the share of those who indicated less frequent use compared to the previous year]

37 Media consumption in Russia – 2019 | Technology and media consumption

Popularity of smartphone features 01 Foreword

02 Research methodology Which smartphone features do you use more and less often? Trend Insights Annual Instant messengers were the number Mobile calls are more popular with men (+15%) change 03 Key findings Instant messengers one smartphone feature for the second and less so with women (-1%). (WhatsАpp, Viber, Telegram, etc.) 53 6 +47 +7 pp consecutive year, with over half of Russians Internet calls (Skype, etc.) 42 12 +31 +11 pp (53%) indicating more frequent use Residents of Moscow and St. Petersburg 04 Media consumption in Russia Social media 32 13 +19 +4 pp and the feature usage index growing by made mobile calls less frequently Mobile calls 24 18 +6 -24 pp 7 pp to +47%. Internet calls are also more (-3 and -2 pp respectively), but these 05 Data content and usage patterns popular this year (+11%), outpacing mobile calls remain quite popular in other Text messages 9 47 -38 +1 pp Technology and media calls for the first time. Mobile calls, on the cities and towns (+8%). 06 Video games 6 29 -23 +12 pp consumption other hand, are less popular (+6%), having lost -24 pp compared to the previous year. Women are more active users of social Attitudes towards new gadgets More frequent use, % Social media apps continue to gain ground media apps (the difference in the usage Less frequent use, % Russian household ownership (+19%), while text messages and video games indices is 19 pp). of media devices Feature usage index1, % are losing traction (-38% and -23% respectively) Devices used to watch video even though the usage rate for video Respondents on higher incomes reported games was 12 pp higher than last year. higher usage of both Internet calls and mobile Popularity of smartphone calls (+34% and +12% respectively). features Lower income respondents reported higher Messengers usage of social media apps (+22% vs. +14%). Access to media Young people aged 16–29 use social media by connection type apps twice as often as the average (+40%). 07 Attitudes towards advertising The popularity of this feature is declining among older age categories, dropping to +4%. 08 Media consumption in figures

09 Contacts

1 The feature usage index: [proportion of those who have indicated a more frequent use minus the proportion of those who have indicated a less frequent use]

38 Media consumption in Russia – 2019 | Technology and media consumption

Messengers 01 Foreword

02 Research methodology Which instant messengers do you have installed on your smartphone? Trend Insights Which ones do you use most often? Most Russians have more than one The popularity of Telegram 03 messenger installed on their smartphone. in Moscow is well above the national Key findings 95 92 92 88 84 83 74 62 60 47 39 17 The average number is four. average (by 18 pp). This messenger is also more popular with young people 04 Media consumption in Russia

83 WhatsApp (83%), Viber (61%), Skype (53%) aged 16–19 (25 pp above the average). +74 and Telegram (40%) are the most popular. 05 Data content and usage patterns 61 This year, WhatsApp and Telegram People living in the Far Eastern Federal Technology and media recorded the highest spikes in popularity District and the North Caucasian Federal 06 consumption 53 +47 (+14 pp and +15 pp respectively). District prefer WhatsApp, using it much more WhatsApp (+47%), Viber (+47%), and Telegram often than Viber (by 71 and 70 pp, respectively). Attitudes towards new gadgets 38 40 (+23%) have the highest usage figures. Russian household ownership +23 Men are more likely to use Skype of media devices 26 +11 Google Hangouts and Apple iMessage than women (by 15 pp), while women 16 17 Devices used to watch video 5 8 8 12 +14 are preinstalled apps with relatively low more commonly use Apple iMessage +3 +4 0 +2 0 usage indexes (-7% and +3%, respectively) and Snapchat (by 5 and 4 pp, respectively). Popularity of smartphone despite a significant share of respondents features -2 -7 having them on their smartphones. People on higher incomes tend Messengers

ICQ to use Skype more frequently than people Viber Signal Skype on lower incomes (+30% vs. +2%). Access to media Discord WeChat Telegram Snapchat Facebook Facebook by connection type WhatsАpp Messenger

Apple iMessage iMessage Apple 07 Attitudes towards advertising Installed, % Hangouts Google Not installed, % 08 Media consumption in figures Usage index1, %

09 Contacts

1 The usage index: [the share of those who have installed a messenger and use it minus the share of those who have installed a messenger and do not use it]

39 Media consumption in Russia – 2019 | Technology and media consumption

Access to media by connection type 01 Foreword

02 Research methodology Internet connection TV connection Radio connection 03 Key findings Wireless Internet (Wi-Fi), % Online TV: most often used in the Urals and Siberia federal districts Car stereo, % 53 (50% and 45%, respectively). 49 04 Media consumption in Russia 51 41 50 47 38 51 47 36 48 05 Data content and usage patterns 44 35 50 37 Dedicated line (direct cable connection), % Radio at home, % Technology and media 06 42 Personal cable: most often used in the Urals Federal District (42%). 29 consumption 42 32 35 48 36 34 Attitudes towards new gadgets 46 35 35 52 28 35 Russian household ownership Mobile Internet (via smartphone, GSM-modem, LTE/4G), % 38 Mobile device, % of media devices 35 Community antenna: most often used in the Northwestern 21 36 22 Devices used to watch video and Central Federal Districts (both 30%) and least often used 31 16 in the Urals Federal District (12%). 27 16 Popularity of smartphone 29 23 19 features 27 Modem connection (via telephone line), % 32 Internet (PC users), % Messengers 14 28 20 13 30 19 Access to media 13 21 by connection type 14 Satellite TV: most often used in the North Caucasian 14 11 and Southern Federal Districts (43% and 30%, respectively). 19 07 Attitudes towards advertising ADSL connection (high bit rate access via modem), % 24 Portable player, % 24 10 6 26 Media consumption in figures 10 24 7 08 11 25 6 12 6 12 6 09 Contacts

2019 2018 2017 2016 2015

40 01 Foreword

02 Research methodology

03 Key findings Attitudes 04 Media consumption in Russia 05 Data content and usage patterns Technology and media 06 towards advertising consumption 07 Attitudes towards advertising Advertising tolerance and perceived usefulness of various advertising channels Adblockers

08 Media consumption in figures

09 Contacts

41 Media consumption in Russia – 2019 | Attitudes towards advertising

Advertising tolerance and perceived usefulness of various advertising channels 01 Foreword 02 Research methodology

03 Key findings What is your attitude towards various advertising channels? Tolerance Usefulness Have you received useful information from adverts? Russians are generally positive towards Online advertising was perceived outdoor ads, ads in printed media as the most useful (+28%), with two thirds 04 Media consumption in Russia Tolerance1 Perceived usefulness2 and sponsorship‑based ads (advertising of the respondents (64%) reporting having Outdoor ads +12 -3 tolerance index of +12%, +8% and +3% received useful information from online adverts. 05 Data content and usage patterns Ads in printed media respectively). People are more or less TV ads were also rated as useful (+15%). +8 -12 Technology and media indifferent towards online, television 06 Sponsorship-based ads +3 -52 consumption and radio advertising (-2% tolerance index). Cold calls, e-mail, mobile, radio Online ads -2 +28 and sponsorship ads are perceived 07 Attitudes towards advertising Radio ads -2 -36 Mobile and e-mail ads are viewed quite as the least useful sources of information Advertising tolerance TV ads -2 +15 negatively (-16% and -12% respectively), (-79%, -35%, -44%, -36% and -52%, respectively). and perceived usefulness Email ads -12 -35 turning very negative when it comes of various advertising channels Mobile ads -16 -44 to cold calling (-31%). Sponsorship-based ads usefulness is perceived negatively because they seek to create Adblockers Cold calling -31 -79 a positive image for a company, rather than provide practical information to consumers. 08 Media consumption in figures The advertising tolerance index1, % The advertising usefulness2, %

The difference in advertising tolerance 09 Contacts and usefulness is a matter of perception An expert’s view by respondents: TV and online ads “Internet advertising is more likely than other formats to contain useful information for consumers: are perceived as irritating, which brings this is confirmed by our own data. Yandex tools allow us to identify target audiences as accurately the tolerance indices to below zero, as possible and serve them ads that are most relevant. This approach increases user confidence even if the usefulness indices are very positive. and allows for the most efficient allocation of advertising budgets.” Leonid Savkov, Commercial Director, Yandex

1 The advertising tolerance index: [the share of respondents who favor ads minus  the share of those who disapprove 2 The advertising usefulness is assessed based on the respondent experience with advertisements as a source of useful information: [the share of respondents who have found ads useful minus the share of those who had not].

42 Media consumption in Russia – 2019 | Attitudes towards advertising

01 Foreword

02 Research methodology Tolerance towards various advertising channels Trend Insights The overall tolerance index for major As seen on the chart, men and Russians 03 Key findings What is your attitude towards various advertising channels? advertising channels has declined slightly over 60 have the lowest tolerance (-2 pp), falling to +2%. Importantly, tolerance for advertising, with an average tolerance has inched down for all advertising channels. of -2%. 04 Media consumption in Russia

Russians living in cities with a population 05 Data content and usage patterns of between 500,000 and 1 million are more Technology and media tolerant of adverts, demonstrating no negative 06 consumption attitudes to any of the advertising channels listed. +5 +4 +6 +1 +5 +1 +5 +1 +2 +1 07 Attitudes towards advertising +1 Online ads are least tolerated by Russians Advertising tolerance -2 aged 16–29, residents of St. Petersburg and perceived usefulness and towns with a population of less than of various advertising channels 500,000 people (4 pp below the average). In contrast, respondents aged 45–49 Adblockers and residents of cities with a population between 500,000 and 1 million are more 08 Media consumption in figures tolerant of ads online (+4 pp above the average). 59 29 44 − − − 09 Contacts Russia

Moscow Older generations, men and respondents Аged 16 Aged 45 Aged 30 living in smaller cities and towns St. Petersburg demonstrated negative perceptions

Outdoor ads Aged 60 and older of TV ads (4 pp below the average). Ads in printed media TV ads Radio ads Change in the tolerance index1, % 2019 2018 2017 2016 2015 Changes Online ads Average tolerance index1, % Outdoor advertising +12 +13 +12 +10 n/a +2 pp Printed ads +8 +9 +7 +7 +8 0 pp Average tolerance level +2 +4 +2 +2 +1 +1 pp Internet ads -2 0 -5 -2 0 -2 pp Radio ads -2 -1 -2 -2 -2 0 pp TV ads -2 -1 0 -3 -3 +1 pp 1 Tolerance index: [the share of respondents who favor ads minus the share of those who disapprove]

43 Media consumption in Russia – 2019 | Attitudes towards advertising

01 Foreword

02 Research methodology Perceived usefulness of advertising media Trend Insights The overall advertising usefulness rating Pensioners and those living in Moscow 03 Key findings Have you received useful information from adverts? declined by 4 pp in 2019, dropping tend to find ads less useful (17 pp below to -2%, which indicates that the majority the average). In contrast, people aged of Russians do not consider advertising 30–44 generally rate the usefulness 04 Media consumption in Russia a source of valuable information. of advertisements at 16 pp above the average. 05 Data content and usage patterns This decline is attributable to lower Women tend to find outdoor ads useful +14 Technology and media +6 usefulness ratings for outdoor ads, (+4%), while men hold the opposite view 06 +1 +1 consumption -1 ads in printed media and radio ads (-11%). As the chart shows, people living -2 -5 -9 -1 -9 as compared to a year ago. in large cities perceive online ads as less -18 07 Attitudes towards advertising -19 useful than respondents from smaller Advertising tolerance cities and towns (+33% vs. +21%). and perceived usefulness of various advertising channels Changes in the usefulness index1, % Adblockers 2019 2018 2017 2016 2015 Changes Internet ads +28 +26 -19 +5 +16 +12 pp 08 Media consumption in figures TV ads +15 +17 +17 +7 +7 +8 pp 59 29 44 − − − Average usefulness -2 +2 -9 -6 -1 -1 pp 09 Contacts Russia

Moscow Outdoor ads -3 +1 -4 -7 n/a +4 pp Аged 16 Aged 45 Aged 30 Printed ads -12 -4 -9 -6 -1 -11 pp St. Petersburg Radio ads -36 -30 -29 -28 -26 -10 pp

Outdoor ads Aged 60 and older Ads in printed media TV ads Radio ads Online ads Average usefulness index1, %

1 Usefulness is assessed based on the respondent experience with advertisements as a source of useful information: [the share of respondents who have found advertisements useful minus the share of those who had not].

44 Media consumption in Russia – 2019 | Attitudes towards advertising

Adblockers 01 Foreword

02 Research methodology Do you use ad blockers (software that blocks Internet ads)? Which ad blockers do you use? 03 PC/laptop users Smartphone/tablet users Key findings

Average 42 14 25 19 Average 28 20 31 21 I have installed an ad-blocker, % 04 Media consumption in Russia Men 53 12 22 13 Men 35 20 31 14 I use my browser’s ad-blocking function, % Women 32 15 27 26 Women 22 20 32 26 I plan to start blocking ads, % 05 Data content and usage patterns Аged 16−19 53 8 18 21 Аged 16−19 36 18 29 17 I neither block nor plan Technology and media to block ads, % 06 Аged 20−24 52 11 23 15 Аged 20−24 38 13 35 15 consumption Аged 25−29 44 11 26 20 Аged 25−29 27 17 39 17 I am not aware of ad-blocking technology, % 07 Attitudes towards advertising Аged 30−34 43 18 22 17 Аged 30−34 27 24 28 21

Аged 35−39 44 11 24 21 Аged 35−39 29 21 29 21 Advertising tolerance and perceived usefulness Аged 40−44 40 16 32 13 Аged 40−44 29 25 32 14 of various advertising channels Аged 45−49 34 18 26 23 Аged 45−49 26 21 29 24 Adblockers Аged 50−54 39 15 28 19 Аged 50−54 28 19 33 20 Аged 55−59 38 12 26 24 Аged 55−59 22 20 33 25 08 Media consumption in figures Аged 60−64 37 15 26 22 Аged 60−64 25 19 32 24 Аged 65 and older 45 6 23 26 Аged 65 and older 26 19 28 28 09 Contacts

Trend Insights The share of PC and laptop users who Over a quarter (28%) of smartphone users In its 2018 global report, Deloitte1 highlighted People aged 16–24 are more likely block online ads has risen significantly (+11 pp) block Internet ads through special increased usage of ad blocking practices to block online ads (52–53% block ads on PCs compared to 2018 (+6 pp), reaching 42%. apps (13% or +6 pp from the previous in various countries. Today, almost a half and 36–38% on smartphones). At the same Of the respondents, 24% of PC and laptop year) or embedded browser functions of our Russian respondents (44 percent) time, older respondents aged 45–64 are less users have installed an ad blocker (15% or +5 pp from the previous year). stated that they use various programs likely to use ad blockers (34–39% block on PCs (+3 pp), and another 14% intend to start The share of smartphone users who intend to block online advertising: 16 percent and 22–28% on smartphones). blocking ads on their devices. to start blocking ads is 20%. only block ads at their PCs, 2 percent only block ads on their smartphones, Men are almost 1.5 times as likely to use and 26 percent do so on both devices ad blocking software as women. (the graphs do not reflect total numbers).

1 Technology, Media and Telecommunications predictions 2018

45 01 Foreword

02 Research methodology

03 Key findings

04 Media consumption in Russia Media consumption 05 Data content and usage patterns Technology and media 06 in figures consumption 07 Attitudes towards advertising

08 Media consumption in figures Russian media consumption in figures

09 Contacts

46 Media consumption in Russia – 2019 | Media consumption in figures

Media consumption in figures 01 Foreword

02 Research methodology Size of target audience Time spent on media channels Russians’ weekday preferences 03 Key findings Weekdays Weekends What Russians cannot 100% 93% 56% 45% 3 hrs 34 min 3 hrs 15 min do without on weekdays? 04 Media consumption in Russia Weekdays Weekends 74% 22% 9% 2 hrs 16 min 2 hrs 43 min Change from 2018 05 Data content and usage patterns 0 pp -2 pp -3 pp +1 pp Weekdays Weekends Technology and media 06 1 hrs 29 min 1 hrs 50 min What Russians would like consumption Usage frequency of media channels to avoid on weekdays?

Weekdays Weekends 07 Attitudes towards advertising 6.0 Days 6.4 Days 4.2 Days 1.2 Days 1 hrs 25 min 1 hrs 15 min per week per week per week per week 30% 27% 24% 08 Media consumption in figures Weekdays Weekends 51 min 56 min Russian media Change from 2018 Russians’ weekend preferences consumption in figures -0.1 0 0 = 0 09 Contacts What Russians cannot Overall usefulness rating of media channels* do without at weekends?

Weekdays Change from 2018 Weekends Change from 2018 Average Change from 2018 63% 39% 9%

Internet +47% -2 pp +35% -3 pp 41% -2 pp

Printed books +3% +1 pp +1% 0 pp 2% 0 pp What would Russians would like to avoid at weekends? Radio +2% -4 pp +1% -3 pp 2% -3 pp 33% 28% 21% E-books +1% +2 pp -1% +1 pp 0% +1 pp

Printed media +1% -1 pp +2% 0 pp 1% -1 pp

TV set -8% +3 pp +6% +10 pp -1% +7 pp * The media channel usefulness index [the share Video games -20% +2 pp -13% +4 pp -17% +2 pp of respondents who would like to continue using a media channel minus the share of those who would like to stop using it for better daily productivity]

47 Media consumption in Russia – 2019

Contacts 01 Foreword

02 Research methodology

03 Key findings Olga Tabakova Lora Nakoryakova Partner Research Centre Leader CIS TMT Industry Leader 04 Media consumption in Russia Deloitte CIS 05 Data content and usage patterns Technology and media 06 consumption

Anton Shulga Mikhail Gordeev 07 Attitudes towards advertising Partner Head of research projects CIS Telecom Leader 08 Media consumption in figures Deloitte CIS 09 Contacts

Ekaterina Lukianova TMT Industry Development Coordinator Deloitte CIS [email protected]

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