Yandex - Russian Automotive Market Update - February 2011

Russian Automotive Market Update February 2011

Automotive Market Automotive Industry on Yandex Automotive is growing quickly and one of Yandex’s top industries Top Ten Industries on Yandex v Automotive v Housing & Rentals v Banking & Finance v Manufacturing v Business Services v Personal Health v Construction v Real Estate v Consumer Shopping v Tourism Automotive Spend on Yandex Total Automotive 130% Y/Y Spend on Growth Yandex Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2009 2010Sources: Yandex; Top Ten by overall spend in recent period 2

Automotive Market Russian Automotive Market v Strong Automotive resurgence in 2010 v Currently 10th largest Automotive market in the world v Roughly 1/3 the size of U.S. market v Very low car ownership per capita compared to Western markets v Government is strongly focused on supporting (domestic) industry: v Increased import duty v Subsidized loans for purchase of domestic autos v Direct support and intervention for domestic OEMs v Incentives for car scrapping v Tightening restrictions on importing older used vehicles v Strong growth is forecast to return; expected to become the 3rd largest market in the world over the next 5 yearsSources: IHS Global Insight; Earnst & Young; Ministry of Economic Development 3

Automotive Market Automotive Brand Market Share in Russia Foreign brands dominate the top 10 Top Ten Automotive Brands ($ Share, 2009) 30% 24% 20% % ofRussianMarket 10% 7% 6% 5% 5% 5% 5% 4% 4% 3% 0% LADA Chevrolet Ford Hyundai Renault Kia Toyota Nissan Daewoo MitsubishiSources: AEB 4

Automotive Market Broad coverage of both foreign and domestic brands 20+ Automotive advertisers in 2010 Automotive Advertisers on Yandex Advertiser Brand Advertiser Brand AVTOVAZ LADA INFINITI NISSAN BMW NISSAN BMW MINI CITROEN PEUGEOT CITROEN RUS CHINA CHONGQING INDUSTRY (GROUP) CO.,LTD LIFAN PEUGEOT CHRYSLER PORSCHE PORSCHE CHRYSLER CORPORATION DODGE RENAULT RENAULT JEEP GRAND CHEROKEE FIAT DAIMLER AG MERCEDES-‐BENZ ISUZU FORD SOLLERS SOLLERS FORD MOTOR CO MAZDA SSANG-‐YONG VOLVO UAZ CHEVROLET SUBARU SUBARU GENERAL MOTORS CORP OPEL SUZUKI SUZUKI HONDA HONDA LEXUS TOYOTA HYUNDAI HYUNDAI TOYOTA JAGUAR AUDI JAGUAR LAND ROVER LAND ROVER SEAT VOLKSWAGEN AG (VAG) MITSUBISHI MOTORS MITSUBISHI SKODA VOLKSWAGENNotes: Sample of Advertisers and Brands; not complete list 5

Automotive Market Passenger Car spend dominates the Industry Auto Loans and Commercial Transport spend grew slower than Passenger Cars Automotive Spend by CategoryNotes: Auto Manufacturers only, dealers excluded; Geo-Russia 6

Automotive Market Passenger Car CPC was essentially flat in 2010 Auto Loan CPC had strong growth with slow overall spend growth CPC by Category ($) $1.00 $0.91 $0.75 $0.66 $0.64 $0.52 $0.50 $0.48 Cost per Click $0.27 $0.25 $0 Passenger Cars Commercial Transport Auto LoansNotes: Auto Manufacturers only, dealers excluded; Geo-Russia 7

Russian Internet Search Market 8

Russian Internet Market Internet Users - Global Russia has the 7th largest audience of Internet Users in the world Internet Users (MM) per Country (2010) 500 420 375 250 239Millions of Internet Users 125 99 81 76 65 60 51 45 44 39 0 China US Japan India Brazil Germany Russia UK France Nigeria S. KoreaSources: Internetworldstats 9

Russian Internet Market Internet Penetration - Global Russia currently has fairly low penetration compared to other large Internet populations Internet Penetration per Country (2010) 100% 83% 81% 77% 78% 79% 75% 69% 50% 43%% of Population 38% 31% 29% 25% 7% 0% China US Japan India Brazil Germany Russia UK France Nigeria S. Korea Sources: Internetworldstats 10

Russian Internet Market Internet Users - Europe Russia is the 2nd largest Internet market in Europe Internet Users (MM) per Country (2010) 70 65 60 51 53 45 35 35 30 29Millions of Internet Users 22 18 15 14 0 Germany Russia UK France Turkey Italy Spain Poland Ukraine NetherlandsSources: Internetworldstats 11

Russian Internet Market Internet Penetration - Europe Russia has significant growth potential compared to other established European markets Internet Penetration per Country (2010) 100% 89% 83% 79% 75% 69% 63% 58% Average European Internet 52% Penetration 50% 45% 43% % ofPopulation 34% 25% 0% Germany Russia UK France Turkey Italy Spain Poland Ukraine NetherlandsSources: Internetworldstats 12

Russian Internet Market Russian Internet Penetration Growth Russian market is growing extremely quickly Internet Penetration in Russia (2000-2010) 75% 50% 43% % of 37% Population 27% 25% 21% 19% 15% 12% 7% 10% 2% 4% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Source: International Telecommunications Union 13

Russian Internet MarketRussian Search Engine Share Search Engine Traffic Market Share in Russia, January 2011 Mail.ru Other 7% 4% Rambler 2% Google 22% Yandex 65% Source: LiveInternet.ru 14

Russian Internet MarketMarket Share Evolution Russian Search Traffic Market Share1 Nov 2009 MatrixNet 65% Dec 2010 Spectrum (Semantic 58% Upgrade) July 2010 Orange (Realtime May 2008 Search) Updated core search and ranking algorithms 2006 Google introduces Russian language morphology-based search capabilities June 2008 26% Google launches outdoor advertising campaign 22% 2001 Google launches March 2006 Russian language Google opens search engine office in Russia 5 7% 5 2% Mar-05 Sept-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10Source: LiveInternet.ru1. Based on monthly search traffic to Russian websites from Russian IP addresses 15

Preston CareyBusiness Developmentpreston.carey@yandex.ru+1 857.288.8762 16

http://siberianlight.net	322
http://translate.googleusercontent.com	3
http://paper.li	2
http://konyvklub.com	1
http://www.globalpost.com	1

Yandex - Russian Automotive Market Update - February 2011

by Preston Carey on Feb 09, 2011

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Yandex - Russian Automotive Market Update - February 2011 — Presentation Transcript