Yandex Overview from SES San Francisco

SES San Francisco
Search
August 2011

2
Get Stare
Agenda
Russian Market & Yandex Overview
Paid Search
Organic Search

Introduction
Yandex: World-Class Technology & Internet Leader
#1 Internet Destination
38 million unique visitors per month
44% of Russian users’ homepages
#1 Search Leader
65% search market share in Russia
Leading Online Advertising Platform
180,000+ advertisers
58% online ad market share
Largest Russian Internet Business
$440 million Revenues (2010)
$217 million Adj. EBITDA (2010)
3

Key Investment Highlights
Local Champions Can Win in Search
Yandex
Baidu
Naver
(launched 1997)
(launched 2001)
(launched 1999)
Yandex
Baidu
NHN
1
2
3
SouthKorea
Russia
China
Google
Others
Others
Others
Google
Google
Source: Liveinternet.ru, iResearch, SearchEngineWatch.com, Nielsen KoreanClick
As of March 2011
Average market share for 2010
As of August 2010
4

Continuous Focus on Innovation
Mail
Payments
Search
Maps
Shopping
News
Language Understanding
1997
2000
2002
2004
1989
1998
2002
2004
2006
2005
1
2001
2005
2008
1989
Source: Company information, Liveinternet.ru, iResearch, SearchEngineWatch.com, comScore
1. Baidu News Service launch date based on being available as of the date of IPO
5

Financial Review
Local Focus and Understanding
Russia/CIS is our “Backyard”
Locally-relevant Content and Services
Russia + Ukraine + Kazakhstan + Belarus
Search Verticals
Maps/Traffic
Street Views
Images
Videos
Music
Goods
Blogs
…
1,400 different territories for Yandex
Our Ad Campaigns Have a Russian Accent…
“The monitor does not give consultations.”
6

Yandex: The Search Market Leader in Russia
Search Traffic Share 1
65%
58%
November 2009
Launch of MatrixNet
2006
Google opens office in Russia
Google introduces Russianlanguage morphology
January 2010
Mail.ru stops using Yandexfor search
26%
22%
7%
5%
5%
2%
Source: LiveInternet.ru (March 2011)
1. Search traffic reflects Russian users to Russian websites
7

Yandex is Replicating Success in Adjacent Markets
Share of Search Traffic in Ukraine, Kazakhstan and Belarus 1
Ukraine
Kazakhstan
Belarus
(2005)
(2009)
(2010)
73%
64%
52%
46%
48%
48%
29%
26%
24%
37%
40%
19%
22%
20%
7%
6%
3%
3%
1. Search traffic reflects transitions by respective country’s users to local and Russian sites
8

Leadership in a Fast-Growing Market
Number of Searches per Month (MM) 1
2,336
783
254
68
54
Sources: LiveInternet.ru (March 2011)
1. Based on monthly search traffic to Russian websites from Russian IP addresses
9

The Gateway to the Russian Internet
Russia’s Most Popular Homepage – 44% of All Russian Users
News
Mail
Traffic Jams / Maps
Comparison Shopping
Yandex.Money
10

The Most Popular Online Destination in Russia
Monthly Unique Visitors in Russia (MM)
Source: comScore (March, 2011)
11

Russia: Large and High Growth Internet Market Opportunity
Growth in Internet Users vs. Penetration
Total Internet Users (MM)
Key Developed Markets
Russia 2014e
BRIC
Brazil
Internet Penetration 2010 (%)
Russia 2010
China
India
Internet users CAGR 2010-14e (%)
2010
2014e
Source: Euromonitor (January 2011), FOM (March 2011) for Russia
12

Market Overview
The Russian Advertising Market Is Booming
Russian Total Ad Market ($ Bn)
Online as % of Total Ad Spend – 2010
10-13e CAGR:23%
Source: ZenithOptimedia (April 2011)
13

Financial Review
Russia – A Rich Source of Technical Talent
Education in “Hard” Sciences
Math & Programming Olympiads
Yandex School of Data Analysis
Best Place to Work for Russian Developers
14

15
Get Stare
Agenda
Paid Search
Organic Search

16
4 Things to Remember when you use Yandex
Simple auction based bidding; but with some local differences
Geographic targeting is important; but you can dip your toes in without it
Russian language is very different; localization and translation from English is difficult
“Conversion” can be different; make sure you are measuring the right things

17
Get Stare
Want to try Yandex?
Contact International Business Development team
Free translation, training and initial setup
Local optimization and campaign feedback
Dedicated English speaking Account Manager in Moscow
Web based reporting, budgeting, etc. available in English language interface
Yandex U.S. entity available for simplified payment, invoicing & contracting
Dollars vs. Rubles
Post pay billing available
U.S. vs. Russian legal jurisdiction
European entity planned for late 2011

18
Get Stare
Agenda
Paid Search
Organic Search

19
Yandex 101
SEO for Yandex
Organic engine rewritten and launched as MatrixNet in November 2009
Most of the “old” advice doesn’t apply anymore
Machine learning based; Archetypal sites” chosen as targets by “Assessors”
Makes advising on SEO very hard; we don’t even know what the weights are
No formal customer support team for SEO’s
Very good webmaster tools (available in English)
General written guidelines available for how to get included in index

20
Yandex Webmaster Tools tell you
What problems occurred during the indexing process
Which pages are included in the search index
Who links to your website
What searches people make to find your website
How to protect your site from viruses
How to improve the appearance of your site in the search results

21
Yandex Webmaster Tools Examples
CTR by Query
Click Share by Query
Links
Popular Queries

22
How do I get started on Yandex.Webmaster in 3 easy steps?
Register on http://webmaster.yandex.com
Verify site ownership (variety of choices - text file, DNS, etc)
Go play!

Thank You!
Preston Carey
Director, Business Development
preston.carey@yandex.ru
+1 857.288.8762
@prestoncarey

Yandex Overview from SES San Francisco

by Preston Carey on Aug 23, 2011

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Yandex Overview from SES San Francisco — Presentation Transcript