Yandex and Russian Digital Advertising Market Overview

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An introduction to Russian Digital Advertising and Yandex.

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  • Yandex and Russian Digital Advertising Market Overview

    1. 1. Preston Carey Business Development Director
    2. 2. • Market Trends • Yandex Overview • Advertising Opportunities Agenda • Online Customers in Russia
    3. 3. Market Trends
    4. 4. 4 67,4 50,3 61,5* 23, Source: Internet World Stat 2011-2012 in 2012 Russia became the largest internet audience in EuropeBig
    5. 5. 5 Low penetration – high upside! Source: FOM (Public Ppinion Foundation) release, March 2012. Data for the countries other than Russia is provided by InternetWorldStats.com as of March 2012
    6. 6. 6 The Russian advertising market continues to grow rapidly № Country Growth 1 U.S.A. 19 821 2 China 11 641 3 Brazil 5 397 4 Russia 4 026 5 Indonesia 3 911 6 Japan 3 015 7 Argentina 2 268 8 South Africa 2 067 9 Great Britain 1 883 10 South Korea 1 702 The global ad market will have grown by U.S. $4 billion from 2011 – 2014 Source: ZenithOptimedia, September 2012 Countries contributing the most to the growth of the world ad market (bln. $)
    7. 7. 7 And here’s the result… We’re now one of the top ten largest world ad markets 2011 Value 2014 Объем 1 U.S.A. 154 129 1 U.S.A. 173 950 2 Japan 49 949 2 Japan 52 964 3 China 32 299 3 China 43 940 4 Germany 25 571 4 Germany 26 828 5 Great Britain 19 204 5 Brazil 22 216 6 Brazil 16 819 6 Great Britain 21 088 7 France 13 788 7 France 14 216 8 Australia 12 767 8 Australia 13 770 9 Canada 10 974 9 Russia 12 593 10 South Korea 10 232 10 Canada 12 394 Source: ZenithOptimedia, Sptember 2012
    8. 8. 8 How the market will look 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Mln.rubles Russian ad market segment dynamics Журналы ТВ Наружная Интернет Magazines TV Outdoor Internet Source: ZenithOptimedia, Sptember 2012
    9. 9. 9 Global advertising shifts TV 48% Radio 4% Cinema/Indoor 2% Outdoor 12% Press 9% Internet 25% TV 33% Radio 6% Cinema/Indoor 0% Outdoor 20% Press 41% Online 0% 20142000 Source: ZenithOptimedia, June2012
    10. 10. 10 Contextual advertising is the most popular type of online advertising and its market share continues to grow 58% 60% 61% 63% 68% 42% 40% 39% 37% 32% 2008 2009 2010 2011 2012 Russian online ad market structure dynamics Contextual Banners Source: АКАР, 2013
    11. 11. Russian ecommerce market 58 million monthly users online (~41% of all population) 15 million users seek information about goods 10 million users buy in e-shops E-commerce B2C revenue – 8 billion dollars (2011), growing ~30% per year Growth is due to expansion of regional shoppers. *FOM 04.2012
    12. 12. 12 E-commerce boosts online advertising $0 $5 $10 $15 $20 $25 $30 $35 $40 2012 2015 Billions The e-commerce market in Russia will double between 2012 and 2015 Source: Morgan Stanley, 2013
    13. 13. Yandex Overview
    14. 14. 14 #1 search in Russia 1 Source: LiveInternet.ru, February 2013. Search traffic reflects Russian users to Russian websites and includes desktop and mobile Share of Searches1 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 61.9% 60% 26.1% 8% 6% 21% 8.6% 1.3%
    15. 15. 15 Bigger than any TV channel
    16. 16. 17 0 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 27,000 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Bigger than any TV channel
    17. 17. 18 One of 3 global search engines
    18. 18. 19
    19. 19. 20 Yandex Portal The gateway to the Russian internet
    20. 20. 21 News Mail Comparison Shopping Weather Traffic Jams, Map s Auto Music Yandex.Money Analytics tool Jobs TV listings
    21. 21. 22 Services that change life
    22. 22. 23
    23. 23. 24 The unique service supported by users themselves Traffic
    24. 24. 25
    25. 25. 26 Taxi 2,000 cabs online at any given seconds 300,000 downloads for iOS and Android 12 min to reach a client via traffic Revenue share model (to be featured)
    26. 26. 27 Online Customers in Russia
    27. 27. 28 Search Engines as Tools for Making a Purchase 28Source: Euromonitor, Morgan Stanley 87% of online customers in Russia use search engines to make a purchase decision 56% of them use Yandex
    28. 28. 29 Cross-border shoppers 36% 29© GfK | August-September 2013 Online Shopping in Russia In 2012, one in three online customers in Russia ordered a product or made a purchase abroad Domestic shoppers 95% 25% 21% 59% 67% 0% 17.5 % 35.0 % 52.5 % 70.0 %
    29. 29. 30 30 Reasons for Сross-Border Shopping A large proportion of online shoppers in Russia are aware of cross-border shopping opportunities 62 % 20 % 17 % 11 % 8% 6% 4% 3% 3% 5% © GfK | August-September 2013
    30. 30. 31 31© GfK | August-September 2013 Reasons Against Cross-Border Shopping 41.5% 18.0% 17.6% 15.8% 12.1% 11.5% 8.3% 7.4% 6.6% 3.4% 3.0% 1.4%
    31. 31. 32 32 Customer Concerns about Cross- Border Shopping © GfK | August-September 2013 % of all Russia’s online shoppers 38.8% 32.4% 32.0% 27.4% 22.4% 21.0% 17.3% 8.3% 5.2% 5.1% 0.3% 0.2% 0.2%
    32. 32. Advertising Opportunities
    33. 33. 34 Yandex – the biggest internet ad platform 350.000 advertisers 53% online ad market share * Company Information, FY 2012 ** AKAR for 2012, adjusted for commissions
    34. 34. 35 Yandex is Russia’s leading contextual advertiser 68% 28% 3% 2% Yandex Google Russia Begun Other Source: eLama, 2013
    35. 35. 37 Yandex Search Results Page 1st Premium Premium Contextual Banner
    36. 36. 38 Yandex Search Results Page 1st Place Guaranteed Placement Dynamic impressions on 2d and further pages
    37. 37. 39 PPC interface available in English
    38. 38. 40 Bid management in English
    39. 39. 41 Yandex.Market Gateway to Russian eCommerce - #1 Comparison Shopping Tool
    40. 40. 42 Market More than 16.5 mln visitors monthly More than 9,000 e-tailers Mobile applications with barcode reader Pay-per-click model
    41. 41. 43 Wide range of Banner Ad options available
    42. 42. 44 Yandex.Metrica – web analytics tool available in English
    43. 43. 45 RussianSearchMarketing.com
    44. 44. Preston Carey Business Development Director +1 857 288 8762 preston.carey@yandex.ru @prestoncarey Thank you!

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