Russian market vs Japanese market regarding ovt

[IDNCowboy]

Am I stupid to pick up 5-15k overture japanese keywords when there are 100k + yandex russian terms left? or at least 70k



I see other people picking up japanese terms with little overture too but I always think ppl in Japan are more tech savvy etc.

Comments?

[Drewbert]

It may be easier to monetise Japanese traffic?

[Edwin]

Here are the figures from the CIA World Factbook. The GDP figures are "purchasing power parity" adjusted, apparently.

RUSSIA
GDP: US$1.535 trillion (2005 est.)
GDP per capita: US$10,700 (2005 est.)
Household income or consumption by percentage share:
lowest 10%: 1.7%
highest 10%: 38.7% ( 1998 )

JAPAN
GDP: US$3.867 trillion (2005 est.)
GDP per capita: US$30,400 (2005 est.)
Household income or consumption by percentage share:
lowest 10%: 4.8%
highest 10%: 21.7% (1993)

In other words, the average Japanese GDP per capita is 3x the Russian figure, and that wealth is spread much more evenly through the population. Japan's economy is immensely stronger than Russia's is, right now, and even if Russia grew at 10% a year and Japan stagnated (which isn't happening - Japan is growing comfortably) it would take 15 years to start to catch up.

The Russian advertising market stands at US$3.86 billion and is growing VERY fast (according to the article below) but only US$55 million is being spent on the Internet (even though it's the fastest growing advertising market)
http://beta.therussiajournal.com/?p=50

However, Japan's advertising market stood at 5,857.1 billion yen (US$49.6 billion) in 2004 according to a report by Dentsu, Japan's largest advertising company. Of that, 181.4 billion yen (US$ 1.53 billion) was spent on Internet advertising (and again it's the fastest growing advertising segment).
http://www.dentsu.com/news/2005/pdf/2005006-0217.pdf

In other words, Japan's advertising market is nearly 13x the size of Russia's and the internet portion of Japan's ad market is 28x that of Russia.

If you factor in the population size, things get even worse. Russia's population is 143,420,309 but Japan's is 127,417,244 meaning that advertisers are spending US$26.91 per person on advertising in Russia, but US$389.28 per person in Japan. Online, the numbers are US$0.38 in Russia vs US$12 in Japan.

It will be a very, very, very long time before Russia catches up.

The one saving grace for Russia seems to be that users are generally more internet-savvy, so there is a greater prospect of near-term typein traffic. But all the other numbers overwhelmingly favour Japan, to a stunning degree!

----

For completeness, I'm going to add China into the mix below.

CHINA
GDP: $8.158 trillion
GDP per capita: $6,200
Household income or consumption by percentage share:
lowest 10%: 2.4%
highest 10%: 30.4% ( 1998 )
Population: 1,306,313,812

At a breakneck, impossible to sustain 10% growth rate, it would take China 17 years to reach Japan's current GDP per capita. Again, that's assuming Japan magically stops growing today.

China's internet advertising spend in 2004 was 2 billion yuan (about US$248 million) according to the link below (I'm having trouble finding good figures). That's US$0.19 per person.
http://www.researchandmarkets.com/re...port_id=306692

BTW, there's an amazing amount of info on China available here...
http://answers.google.com/answers/threadview?id=435051

[kenne]

Edwin, great info together.

The GDP cited for china/japan are purchasing parity. According to cia fact book, the official exchange rate GDP for china is $1.833 trillion, lower than purchasing parity gdp;

official exchange rate gdp for japan is $4.955 trillion (2005 est.), higher than pp gdp.

[touchring]

I would try not to believe in these GDP figures or 10% per annum growth.

If you want to know which economies are buying actively, you should ask businessmen that do business in Japan, Russia and China, and they will probably tell you half the buying comes from China. Bill is in the expo business, he might know more.

[IDNCowboy]

but.... i want to do ecommerce sites so would this effect me at all?

like if i have "cellular" (which i do) and it has 400,000 searches/month i could have an affiliate page for cell phone contracts and get a commission from each sale... i would advertise on adwords or yandex

so basically if you have hot keywords i don't think it will matter as some things like cell phone contracts are hot.

[touchring]

If you are talking about adwords and yahoo ads, it is obvious that Japan's market is many times more developed and fetches many times higher price than Russia's Yandex.

[Edwin]

PPC is going to be factored into the overall online advertising stats, so there is a great deal of relevance if you're planning to monetize the domains by parking them with LOCAL ads i.e. ads in that language. Clearly the bids aren't going to be there to any significant degree in some languages for quite a long time...

Frankly, it doesn't make any real difference to any of us what's happening off-line. For example, there's massive growth in radio advertising in China right now, but that doesn't change the online math. It's only money being spent on getting customers via the web that will float our boats...

Another key metric is credit card use. Stats from late 2004 suggest only 2 million consumers in China have credit cards (though some may have several cards) so that's basically the sum total of people who can BUY something online.

Again, let's not mix apples and oranges - an exploding local economy doesn't necessarily have to be fueled by the Web, and in this case it seems to be mainly cash-based transactions pulling in the numbers...

In fact, in China in particular there is likely to be far too much traffic chasing far, far too few advertisers. Baidu is one of the busiest sites on the Web - Alexa has it pegged just behind Google - yet they brought in just US$39.6 million in revenues for the whole of 2005 (see their Q4 income statement, below) vs US$6.139 billion for Google. In other words, Google brought in approx. 155x as much revenue as Baidu from a relatively small amount more traffic (compared to the revenue disparity, anyway). This almost perfectly mirrors the difference in the two advertising markets. China, as we've seen, has about $250 million in online advertising, vs $11.3 billion in the US - that's a 45x differential.

http://media.corporate-ir.net/media_...iduQ4_2005.pdf
http://investor.google.com/releases/2005Q4.html
http://www.poynter.org/column.asp?id=31&aid=77429

Factor in all the other Chinese mega-portals (and those seem to be growing all the time) and it's obvious there is a staggering glut of almost totally unmonetized traffic.

[touchring]

Despite the traffic, online advertising in China is still in its infancy -

http://news.moneycentral.msn.com/pro...223&ID=5525163

http://msnbc.msn.com/id/11498375/

[blastfromthepast]

You have to realize also that Russian language traffic is coming from places outside of Russia, such as America, Canada, and Israel where lots of people also speak Russian.

Furthermore, there is a huge and wealthy community of people living in London.

Also, other languages that use the Cyrillic writing system may also have words that are spelt exactly the same way because they are slavic languages (Serbian, Ukrainian, Belarusian, Macedonian) or because they have incorporated Russian (usually) words into their language and also use cyrillic, such as Kazah and Mongolian.

That's a huge global market out there for Cyrillic language and Russian speakers that mostly also speak English and are going to click through. With porn sites though, it doesn't even matter, everyone knows what XXX means.

[IDNCowboy]

Right but you guys are missing my point.

I'm not interested in doing ppc. I'm interested in joining an affiliate program and selling cell phone contracts on my celluar site so i could give a damn how much advertisers spend on the web.

[blastfromthepast]

Keep in mind that Russian mobile phone operators don't usually run on contracts outside the realm of corporate accounts.

Mobile phones are usually are prepaid cash at numerous offices, many of which (due to widespread fraud, bad laws, etc.) don't even take credit cards.

Also, websites in Russia have a hard time getting people to enter their cards, and they also have difficulty obtaining merchant licenses.

That's where the mobile phone operators kick in, since they can team up with websites and by dialing special numbers on their phones, users can pay sites with their mobile phone balance. This is how big sites such as the huge russian dating conglomerate make money.

Even Yandex and the registry nic.ru don't directly accept credit cards, but rely on an external provider.

[IDNCowboy]

Alright guys i guess its back to the japanese market for me as everyone is saying the russian market sucks heh

[touchring]

Yes, but frankly, there's not much free domains left in the Japanese arena, except for maybe the more expensive .jp.

[IDNCowboy]

Originally Posted by touchring

Yes, but frankly, there's not much free domains left in the Japanese arena, except for maybe the more expensive .jp.

I've found quite a few...
I've also found chinese words........... so many people here are talk saying theres nothing left in the market as alot of words in my list are still not taken...... yes some just have the .jp available but a good # of them have the .com

BTW whats the average bid on your names

[touchring]

Originally Posted by Jeff

I've found quite a few...
I've also found chinese words........... so many people here are talk saying theres nothing left in the market as alot of words in my list are still not taken...... yes some just have the .jp available but a good # of them have the .com

BTW whats the average bid on your names

I'm talking about A grade domains like cars, loans, insurance, mortgage, motorcycle, bikes, hosting, software, etc. A first grade domain could be worth 100-500 times more than a dictionary word domain in the long run.

[IDNCowboy]

Originally Posted by touchring

I'm talking about A grade domains like cars, loans, insurance, mortgage, motorcycle, bikes, hosting, software, etc. A first grade domain could be worth 100-500 times more than a dictionary word domain in the long run.

true but i own fur.jp in japanese...

all i need to do it sell one coat to make some $$


whats the avg overture bid on your names and avg ovt score?

[touchring]

I didn't check across the entire portfolio, but here's a few from names of places:

神戸市.com Kobe City 57,057 ¥450
川崎市.com Kawasaki City 53,699 ¥251
滋賀県.com Shiga Prefecture 50,997 ¥137
奈良県.com Nara Prefecture 34,439 ¥110
富山県.com Toyama Prefecture 33,226 ¥144

I've got several ¥800 to ¥1500 product/service domains.

[IDNCowboy]

Originally Posted by touchring

I didn't check across the entire portfolio, but here's a few from names of places:

神戸市.com Kobe City 57,057 ¥450
川崎市.com Kawasaki City 53,699 ¥251
滋賀県.com Shiga Prefecture 50,997 ¥137
奈良県.com Nara Prefecture 34,439 ¥110
富山県.com Toyama Prefecture 33,226 ¥144

I've got several ¥800 to ¥1500 product/service domains.

darn i never checked my names but some are Y9 lol oh well ..... I'm more interested in getting affiliate programs up and running. I think I still have a strong portfolio... I was more interested in grabbing names while they were available as I was finding names were being taken each day from my list.

[touchring]

I had always checked bids before registering - my min. is ¥20 for non-adult domains. I think my average bid would be around ¥200 to ¥300. Those city bids are surprising right?