RIA.UA company is called today the leader of the Ukrainian segment of Internet ads. It owns the largest project in the automotive category, and is rapidly gaining popularity in search of resources and real estate. Last year, its prospects and believed foreign investors face in holding Allegro Group. About how little of Vinnitsa company has turned the player on a national scale, in an interview AIN.UA said its general director Sergei Luzhetsky.
Tell us where to start RIA.UA and how is it that you became her manager in 17 years?
RIA.ua originates from the web-page media corporations RIA. In the 17 years I was its first developer. And when the project began to evolve in the direction of the ad is independent online resource, I was his project manager. With the increase, and the team going. In 2004 the company was founded RIA.UA and I took over as CEO. Industry, we have very young. Therefore, managers often find the appropriate age.
What are the main stages in the development of the company you select?
First, an initial – it is actually creating RIA.UA as a normal web-page and the gradual development of the project towards klassifaydov. The second – the beginning of our flagship AUTO.ria.ua in 2004, the stage of the project, its gradual monetization.
The next step – access to self-sufficiency and to launch a new project – DOM.ria.ua in 2006. Well, in 2009 – is joining the company in an international holding company Allegro.
What is today represented by the company?
Today in RIA.UA employs over 80 people (the “turnover” a very small staff). If we talk about the structure, each project work team leader, project manager, its own team of programmers and managers on advertising.
The marketing department with two divisions – offline and online, as well as the department of design and interface work on all three projects. Administrative department deals with the general organizational issues.
What financial indicators can share?
During the year, revenue growth in the national currency amounted to 88% increase in the number of ads – 73%.
In the structure of costs accounted for 35% of marketing, including online promotion, 35% of the fund’s salary – I think that this is a fairly high rate.
Your office is located in the winery, the cost there, for sure, below …
Of course, this is the main difference between working in the regions – the low cost compared with the capital and major cities. This also applies to pay, which is 50% less, and the cost of maintaining an office.
However, if the project is a media, the location, for example, in the capital, gives certain bonuses, since Kiev is the vast number of advertisers. For our part, opened in Kiev, Sales House, to be closer to customers. We have never regretted that founded the winery and have no plans to move whatsoever.
What makes the company a basic income?
The most profitable monetization model projects at the moment – media advertising. This is made possible by a large enough audience – a million visitors a month. Recently, significantly increased the proportion of direct sales – income from car dealers, real estate agencies.
Now actively developing micropayments from users (primarily pay for the selection board) and try to extend payment by all available means: SMS, payments via terminals, webmoney, through the Bank and others. During the year, the share of such payments in the revenue structure reached 30%.
We are pleased with the current diversification, but if you look in the future, we want to prepare the market for a full transition to paid advertisements. Sure, the future for it. Therefore, the share of micropayments to grow significantly in coming years.
When it came to focus just on the niche ad?
Since RIA.UA grown in media corporations RIA, our destiny is largely predetermined off-line company projects. And they just include newspaper ads – that have experience with the company for klassifaydami been accumulated. Our objective was to develop it on-line segment.
Several of your projects are very busy (eg, auto and home). At the same time, some other far off the lead. With what do you associate?
To begin with, that RIA.UA part of the holding, in an Internet group of RIA, which includes three companies: RIA Allegro, RIA Multimedia and Sweet Dream Ukraine. Each company has its management, development and marketing.
RIA Allegro RIA.UA controls and, accordingly, klassifaydami: AUTO.ria.ua, DOM.ria.ua, RABOTA.ria.ua.
The second company – RIA Multimedia Content implements projects: mamaclub.ua, myradio.ua.
Third – Sweet Dream Ukraine – Ukrainians dream of tourism and recreation in reality, and engaged in transactions – these are the projects and hotels24.ua kvartira24.ua.
I would not jump to call some projects are not popular and far off the lead – each has its own problems. If RIA.UA leader in the niche klassifaydov and has a high attendance, projects hotels24.ua, kvartira24.ua focused on transactions, rather than visits. So, after going hotels24.ua 300 bookings a month.
As for content projects RIA Multimedia, they have grown because of the off-line projects, corporate RIA, only now come to self-sufficiency and provide quality content to users. All these projects are different, they must be considered separately.
OK, but if a project is “no shoots”, what is your strategy?
If we see that the business model of the project within 6 months of not working – we will stop investing. This happened, for example, weekend.com.ua
A separate line of work – investing in new projects, start-ups. First and foremost pay attention to the project team, and then – on the idea. After all, a great team to realize the most daring ideas, and vice versa. Over the past year, we invested in four start-up.
In what?
I can not yet disclose the information. I can only say that the projects are early. I think in 2010 we see them in full.
Tell me about your transaction with Allegro. What were its terms?
According to our agreements, we do not disclose financial and other terms of the transaction. I can only note that the majority remained in the corporation RIA.
In Ukraine, the Ukrainian co-ordination between projects where the owner of Allegro or investor, there is a regional manager Julia Marishchuk. In addition, there is a direct co-operation with all the Eastern and Central European sites of a group of Allegro on verticals – auto, home, work.
Partnership Ukrainian colleagues often expressed in an exchange of experiences. For example, on the basis of our educational center this year we conducted a two-day conference of developers. With Prom.ua, for example, constantly communicate about sales, marketing, and even engaged in cross-selling our promotional products.
Way, the market segments in which you work (auto, real estate, work) are very affected by the crisis. How it affected you?
A significant decrease occurred only in the market job postings.
In this segment offers cars and property only increased. Many of our partners turned to Internet marketers looking for more efficient and low cost methods for attracting clients, we help them to succeed and.
Therefore our company for a period of crisis, but improved its performance, and restructured the work both inside and with clients.
You stated that AUTO.ria.ua – the flagship of your project. And what is the “second” – work or home?
Our second project is DOM.ria.ua. The project is developing dynamically, the first task to build the portal on a national scale with a large presence in each region.
We are actively engaged in forming relationships with real estate agencies. We just started this year and have it monetized every 20 agency in Ukraine with us regularly.
Recently, we spent a lot of marketing activities online. Including four conference “Effective selling real estate in the Internet” (with Mail.ru, Yandex, Gemius). Next, by the way, will be in Kiev on November 19.
In general, we plan to DOM.ria.ua at rates comparable to the income in 2013 AUTO.ria.ua
And that the most immediate plans?
We have three vectors of now: a new design RIA.ua, development and monetization services for micropayments, and in mobile technology.
In conclusion, also opened a secret – in March 2011 we plan to launch another website ads, but the details can tell as early as next year.