International Search Summit in London , Oct-2010

1. Russia: The New Frontier
Yandex, Russia
International Search Summit

3. Russian Internet Audience

4. Geography
2010
2009
Area – 17M km² = 11% of mainland
Population – 142M people = 2% of Earth
population
83 federal subjects, 11 cities 1M+, more
than 180 different ethnic groups, 9 time
zones

5. Russian Internet Users (Spring 2010; millions people)
DailyWeeklyMonthly
Spring
2003
Spring
2004
Spring
2006
Spring
2007
Spring
2008
Spring
2005
Spring
2009
Summer
2009
Autumn
2009
Winter
2009-2010
Spring
2010

6. Moscow 2010
Internet Penetration in different age groups
Internet Users of this ageAll people at this age = 100%
Russia 2010
18-24 25-34 35-44 45-54Age
Monthly reach
55+

7. Runet is not only in Russia
Data source:
InternetWorldStats
Belarus
4,4M of users,
Ukraine
15,5M of users,
Kazakhstan
5,3M of users,
Russian
Federation
59,7M of users,

8. Popular Browsers
51%
31%
11%
4%
2%
1%
IE
Firefox
Chrome
Safari
Opera
Other
Worldwide
33%
27%
6%
1%
32%
0%
IE
Firefox
Chrome
Safari
Opera
Other
Russion Federation
Data sources:
LiveInternet,
StatCounter, 2010

9. Data source:
ComScore
Russian Internet audience
Social Networking
Media
Total Unique
Visitors (000)
% Reach
1 VKONTAKTE.RU 31 524 72,8
2 Odnoklassniki 16 552 38,2
3 Mail.Ru - My World 14 231 32,9
4 FACEBOOK.COM 3 885 9,0
5 FOTOSTRANA.RU 3 565 8,2
6 TWITTER.COM 1 772 4,1
7 PRIVET.RU 1 522 3,5
8 VKRUGUDRUZEI.RU 1 471 3,4
9 MOIKRUG.RU 992 2,3
Media
Total Unique
Visitors (000)
% Reach
1 FACEBOOK.COM 571 480 45,3
2 Windows Live Profile 143 540 11,4
3 MySpace 97 734 7,7
4 TWITTER.COM 94 813 7,5
5 Orkut 55 027 4,4
6 LINKEDIN.COM 49 661 3,9
7 VKONTAKTE.RU 46 958 3,7
8 Yahoo! Pulse 45 643 3,6
9 Baidu Space 37 731 3,0
Russian
Federation
WorldWide

10. Data source:
ComScore
Russian Internet audience
Most of top sites are russian
Media
Total Unique
Visitors (000)
% Reach
1 Yandex Sites 34 182 78,9
2 Vkontakte 31 596 73,0
3 Mail.Ru Sites 30 207 69,7
4 Google Sites 29 096 67,2
5 RosBusinessConsulting 18 701 43,2
6 Odnoklassniki 16 552 38,2
7 Rambler Media 14 363 33,2
8 Wikimedia Foundation Sites 14 333 33,1
9 BitTorrent Network 13 927 32,2
10 Microsoft Sites 11 479 26,5
11 AOL LLC 11 281 26,0
12 SUP 9 678 22,3
13 DEPOSITFILES.COM 9 171 21,2
14 Opera Software 9 079 21,0
15 UCOZ.RU 8 720 20,1
16 ZAYCEV.NET 8 415 19,4
17 Gazprom Media 8 101 18,7
18 LETITBIT.NET 7 919 18,3
19 The Mozilla Organization 7 915 18,3
20 KP Publishing House 6 272 14,5

11. What is new?
• Russian internet
is going mobile
• Cyrillic domain names (Яндекс.рф)

12. Yandex mobile search audience
~ 10% of our general search audience
~ 3% of our paid clicks
CTR is 40% higher
Pages per user – 26% lower

13. Leading Searchengines in Russia
(yandex.ru)

14. Search Engines in Russia, %, monthly
LiveInternet.ru Stat

15. Why Yandex?
•Russia is special •Yandex is local
•Russia has strong
background in mathematics
and linguistics
•Yandex built world class
R&D team
•Russia has economy big
enough to generate big and
complicated busynesses
•Yandex developed
contextual advertizing
system, which dominates
local market

16. What makes us strong?
• School of data analysis - a 2-year
Master’s-level program. Subjects: automated
indexing, information, search technologies and methods
of data processing (aggregation, automated
classification, facts extraction, decision-making theory,
etc)
• Matrixnet – machine learning based
technology for ranking search results

17. Russian Internet Advertizing
Market

18. Russian advertising market

19. Internet Advertising Market ($ m)
Display Ads – Russian Association of Communication
Agencies (AKAR) Research,
All Market - RBC & “Kommersant” Publication.

20. Market size, millions $
Online advertising
Data sourse:
AKAR,
January-June
271
100
171
361
119
242
Total Internet banner ads contextual ads
2009 2010
+40%
+33%
+20%

21. Contextual ads market in Russia
Market evaluation for the Jan-Jun 2010:
– AKAR: USD 210 million (without VAT)
– MindShare Interaction: USD 186 million (without VAT)
Yandex.Direct
Google Adwords
+ Begun

22. Yandex Direct Now:
• More than 78 000 advertisers monthly
• More than 4 300 000 active ads monthly
• More than 29 000 000 active keywords in
ads monthly

23. Who sees Yandex.Direct Ads (September 2010)

24. Audience Geography
Источник: ФОМ, Яндекс.Директ
Moscow and
Petrersburg
Other regions
Internet audience
Contextual ads
audience
Paid clicks

25. Regions grow faster
Moscow + Petersburg
Regions
Regional share in Yandex paid clicks

26. Yandex.Direct – advertisers number

27. B2B vs B2C: cpc dynamics

28. B2B cost per click

29. B2C cost per click

30. Market size, billion $
Online shopping
2.9
3.5
4.8
2007 2008 2009
+20%
+40%
Data sourse:
RBC

31. WELCOME!
•Yandex sales representative in the USA –
Preston Carey
preston.carey@yandex.ru
Office: +1 857.288.8762
Mobile: +1 617.306.0963
Address:
4 Middle Street
Newburyport, MA 01950

32. Eugene Lomize
Head of advertising technology dep.
address: 16, Leo Tolstoy st.
Moscow, Russia, 119021.
phone: +7 (495) 739-2222
fax: +7 (495) 739-2332
e-mail: eml@yandex-team.ru