Russian RTB-market H12013 Overview

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The company ADFOX represents the analytical review «the Russian market of RTB in the 1st half of 2013». His purpose is to show the dynamics of the development of the young, but rapidly growing market of the Real-time Bidding in Russia. The study is published every six months and relies on its own company data ADFOX, foreign studies and surveys, media materials, as well as the comments and opinions of participants of the Russian market.

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Russian RTB-market H12013 Overview

  1. 1. Russian RTB-market in H1 2013 September, 2013
  2. 2. Russian RTB-market in H1 2013, ©ADFOX, 2013 2 List of contents Introduction ..................................................................................................................................................3 Global market................................................................................................................................................4 Russia. Numbers, facts, forecasts .................................................................................................................8 What is going on?......................................................................................................................................8 Who is buying?..........................................................................................................................................8 Who is selling?.........................................................................................................................................10 Where is the data for targeting from?....................................................................................................11 What sells well and for what price?........................................................................................................12 What are the problems? .........................................................................................................................13 What does the future hold?....................................................................................................................13 Events of the first 6 months of 2013 in Russia............................................................................................15 Schedule. The RTB market in Russia ...........................................................................................................17 Market participants.................................................................................................................................17
  3. 3. Russian RTB-market in H1 2013, ©ADFOX, 2013 3 Introduction According to an AdEx Benchmark 2012 study, published by IAB Europe, Russia ranks fourth in Europe in terms of its online advertising market (€1.6 billion in 2012)1 . The Russian market has grown at an impressive annual rate of 34%. The development of programmatic buying has been a significant driver of this growth. Last year, the main players in the RTB market were identified, which included almost all of the major Internet companies. European and American companies are now looking at the Russian market with great interest, and this promises to be an important impetus for further development. While the major RTB markets are already fully mature, the Russian market is now on the threshold of it. Lagging several years behind the U.S. and Europe in terms of development, we now have every opportunity to rapidly close this gap. Our products and experience mean that we can now work at full throttle. It is up to the Russian publishers, which are still wary of putting their traffic up for auction, and advertisers who need to get used to the new buying model. According to experts, in the first half of 2013 the RTB market in Russia broke the 0.4 billion rubles mark ($12-13 million), and with each passing quarter the market is continuing to grow strongly. At the end of last year, while discussing the forecasts for the RTB market in Russia in 2013, experts gave an average estimate of $50 million. They based this on the fact that revenues from RTB advertising could reach around 5% of the display advertising market. Will these estimates be correct? What changes have we seen in the market in the last six months, what are the trends and which Western players have turned their attention to the Russian RTB market? We have tried to answer these questions in the second RTB Market Watch in Russia. In preparing this review, we drew upon our own experience of using the ADFOX SSP product, foreign studies and reviews, materials from the media, and the comments and opinions of the players on the Russian market. We want to thank experts of online advertising market for participating in the study, and in particular Sergei Zhuravlev, founder of "Kavanga" company, Oleg Nazarov-Bruni, CEO of HubRus and Dmitry Cheklov, CEO of Targetix. 1 http://www.iabeurope.eu/news/online-advertising-sector-hits-all-time-high
  4. 4. Russian RTB-market in H1 2013, ©ADFOX, 2013 4 Global market The display advertising global market is continuing to grow strongly. According to eMarketer, in 2013 in the U.S. the market will reach $17.6 billion. The main players are Facebook ($2.18 billion in 2012) and Google ($2.26 billion in 2012). The agency notes that this year Facebook should surpass Google, partly due to Facebook Exchange (FBX), which is a platform that allows advertisers to buy advertising through real time bidding2 . In March 2013 Facebook included Facebook Exchange ads to the inventory of its RTB-service. These ads are displayed in user timelines. At the same time, in May 2013 Google launched the alpha version of its own RTB-service Open Bidder3 . Developers have reported that they have been working for over a year to create the platform, and its main advantage is the bidding and response speed of the system. According to Adform, by 2015 the global RTB market will grow to $20 billion4 . The most profitable RTB market remains North America. According to eMarketer, the RTB market in the U.S. in 2012 was worth $1.95 billion, which constituted 13% of the digital advertising market. The forecast for 2013 is $3.36 billion dollars and 19%5 . eMarketer believes that 2014 will be the year in which the market matures, and its dramatic growth will come to an end. All the social networks are looking for new ways to monetize, and if Facebook and Twitter already have a healthy income stream, then Foursquare is just at the beginning. The geolocation service recently partnered with Turn, and now Foursquare can use location data for retargeting to other websites. Location data obtained from mobile devices is considered the most accurate for targeting advertising. According to the head of one of the companies that work with user data, the price usually ranges between $0.50 and $1.50 per thousand impressions, and when using data from Foursquare the price reaches a peak6 . In 2013, three new trends have come to the forefront in all western RTB markets: o the consolidation of the major players in the market who hold user data o the use of RTB in mobile advertising o the use of RTB in video advertising on the Internet Publishers team up to sell to users via an auction In the West, where RTB technology is not an experiment but rather a proven revenue stream, publishers are increasingly creating in-house solutions, sometimes teaming up to do this on the net. As we remember AOL has its own network Ad.com. It sells, for example, The Huffington Post and TechCrunch traffic. 2 http://www.emarketer.com/Article/Google-Facebook-Continue-Lead-Digital-Display-Earnings/1009769 3 http://www.webpronews.com/google-announces-open-bidder-real-time-bidding-platform-2013-05 4 http://blog.adform.com/real-time-bidding/cpm-of-rtb-ads-increases-by-100/ 5 http://www.emarketer.com/Article/RTB-Ad-Spend-Continues-Robust-Growth/1009783 6 http://www.cossa.ru/articles/152/46909/
  5. 5. Russian RTB-market in H1 2013, ©ADFOX, 2013 5 On June 19, 2013 the five largest media companies in Denmark joined forces as the Danish Publisher Network to jointly sell advertising via the RTB-model. Exposure has reached 60% of the population of the country. The alliance offers data about its users and an advertising inventory. In Australia, the online media Mi9, Yahoo!, Fairfax Media and News Limited have plans to create their own advertising networks as a counter to Google. The media sites are looking to sell targeted advertising themselves via the RTB-model with the aim to boost revenues. We are talking about $876 million in the online advertising media segment. More recently, plans to launch a global ad exchange were announced by the international media group News Corp7 . Through a single broker advertisers can buy traffic from more than 50 Internet and mobile platforms owned by the holding company . These include the online versions of the Wall Street Journal, the Times and the New-York Post. The Rubicon Project market solution (innovative software, data and hardware) was used instead of the company’s own developments. Mobile advertising has rocketed as a result of RTB On April 19, 2013 the mobile advertising network Flurry launched the automated service Flurry MarketPlace, with its own RTB Exchange8 . To date, Flurry provides mobile advertising to the tune of 1.3 trillion impressions per month, targeting an audience of more than a billion users of smartphones and tablets. The service allows targeting options and the cost per impression or action to be set, and the placement of adverts in applications is done via the RTB model. The service is part of the SSP-platform AppSpot, and is also owned by Flurry. The main advantage of Flurry MarketPlace is that it provides rich data about users around the world, which has been collated over many years. Today, 50% of the revenues from the Nexage mobile advertising network come from RTB. The share of RTB in online advertising in 2013 will be 15%, and in 2014 this will jump to 40%. On July 1, 2013 the ad network Airpush launched its RTB-service AirDSP for mobile advertising campaigns.9 Airpush has said that the main benefits of its network include the large number of SSP partners (Inneractive, MobClix, MoPub, OpenX, Smaato), more than 5000 advertisers and the open API, allowing all aspects of the management of the campaign to be seamlessly integrated into its interfaces and applications. In just six months of operation of its DSP-platform the Israeli mobile advertising platform Jamptap has showed RTB adverts to 440 million people, 171 million of whom are Americans. The platform was launched in the autumn of 2012, and its main partners today are Burstly, Mobclix, MoPub, Nexage and Smaato. 7 http://www.adweek.com/news/technology/news-corp-launches-global-private-ad-exchange-151970 8 http://venturebeat.com/2013/04/09/flurry-launches-market-to-match-mobile-advertisers-and-content-in-real- time/ 9 http://www.financialpost.com/markets/news/Airpush+Launches+AirDSP+Provide+Effortless+Real+time+Bidding+C apability/8600792/story.html
  6. 6. Russian RTB-market in H1 2013, ©ADFOX, 2013 6 ©BI Intelligence 10 Video advertising is growing, and RTB is helping drive this growth According to Forrester Research, the share of RTB in the total sales of video advertising in the U.S. in 2014 will reach 24.7% or $1.14 billion11 . In 2012, RTB revenues in the online video advertising market in the U.S. totaled $402 million, and in 2013 will reach $686 million. The study was commissioned by the online video ads agency SpotXchange. The study showed that RTB has become the fastest growing segment in the online video advertising market. Growth in 2012 compared to 2011 was 100%, and in 2013 RTB in video advertising will grow by another 70%, driving the entire video advertising market forward. Advertising in online videos, according to experts, is an important part of the media mix, complementing TV campaigns. The opportunity video advertising provides to target the desired audience in the network has driven this trend. On April 17, 2013 a world leader in the field of data center services and data transfer Equinix and the largest independent online video advertising platform BrightRoll presented the VideoRTB+ RTB- platform for selling video ads via the RTB model.12 The companies believe that the video advertising market will see significant growth due to algorithmic purchasing, and reliable technical solutions for online bidding in this situation is a must. The companies have said that the main benefit of their solution is the bidding and response speed of the system. In Russia, despite the fact that growth in the Russian Internet video segment has slowed somewhat in recent years, the video advertising market is continuing to grow fast. According to Gazprom-Media Digital and the Video International Analytical Center (ACVI), in the first half of 2013 video advertising 10 http://www.businessinsider.com/mobile-real-time-bidding-ad-ecosystem-2013-55 11 http://www.businesswire.com/news/home/20130408005376/en 12 http://www.equinix.com/company/news-and-events/press-releases/brightroll-and-equinix-introduce-video- advertising-industrys-fastest-real-time-bidding-solution/
  7. 7. Russian RTB-market in H1 2013, ©ADFOX, 2013 7 expenditures increased by 60-75% to RUB 0.9-1 billion. The forecast for 2013 remains unchanged: advertisers will spend RUB 2.5-3 billion on video ads in Russia13 . 13 http://www.iabrus.ru/rus/217/news.aspx
  8. 8. Russian RTB-market in H1 2013, ©ADFOX, 2013 8 Russia. Numbers, facts, forecasts What is going on? According to Comscore estimates, in Russia today there are more than 61.3 million unique Internet users aged 15 and older14 . According to the Public Opinion Foundation, in the fall of 2012, the monthly Internet audience in Russia is 61.2 million people older than 18 years, which is more than 52% of the entire adult population of the country. Three-quarters of them (47 million people) go online daily. The Russian Association for Electronic Communications (RAEC) estimates that each user spends 100 minutes a day online. IAB Europe has called Russia the fourth biggest market in Europe in terms of investment in online advertising .15 In 2012 in Russia the Internet advertising market began using the RTB model. Almost all the major players launched their own RTB-service, the prospects for new technologies were discussed at conferences, journalists worked to figure out the intricacies of online bidding, and advertisers started asking their agencies: Is it worth a try? But despite this widespread interest not everyone took action. It is clear that at this starting point of the new scheme to sell traffic it is inevitable that there will be problems. The Russian market is very different from that of the Europe and U.S. The leading positions are occupied by local players, who typically work to the familiar model of fixed price advertising. Websites are used to selling ads directly, and to knowing in advance how much they will earn in the next month. Advertising agencies are used to directly buying ads by booking space in advance. To grasp the financial benefits of online bidding and adopt the new advertising scheme, some time is needed. 2013 will focus on this “adoption process”. RTB in Russia is now working and bringing in money. According to expert estimates, this was about 0.4 billion rubles ($12-13 million) in the first half of 2013. But so far only a few of the premium publishers are putting their traffic up for auction and few advertisers are spending large amounts of money on algorithmic purchases. The only exceptions are retargeters, which as of now constitute the majority of advertising budgets in this market. In addition to local players the major foreign retargeters are interested in the Russian traffic: for example, myThings and Sociomantic has already opened their offices in Russia. Who is buying? According to Google, in Russia retargeters buy more than 75% of the traffic in AdX, advertising networks buy 15%, and less than 10% - DSPs and advertising agencies. At the same time, in the U.S. DSPs buys about 40%, networks - almost the same amount, and retargeters - a little over 20%16 . 14 http://ria.ru/society/20130422/933951604.html 15 http://www.iabeurope.eu/news/online-advertising-sector-hits-all-time-high 16 http://www.etarget.ru/wp-content/uploads/2013/03/04-parshentsev-etarget2013.pdf
  9. 9. Russian RTB-market in H1 2013, ©ADFOX, 2013 9 The DSP market in Russia is represented by several major local players, some foreign platforms and a large number of small buyers. DSPs operating on the Russian market : o Adnologies o AdSniper o Appnexus o Begun o Crimtan o Criteo o Doubleclick bid manager o Hubrus o Kavanga o Konverta o MediaMath o Mythings o Rutarget o Soloway o Sociomantic o Targetix o Turn o Video International Large advertisers, as in the U.S., are on the path towards creating their own technologies for purchasing pay per click traffic. The platform Data Mind was created from such in-house technology, which was originally unveiled as an independent DSP, but a year later became a division of TCS Bank. Major online retailers such as Lamoda are independently procuring goods. We can say that a new In-house DSP segment is emerging on the market. In-house DSPs on the Russian market : o Lamoda o DataMind (ТКС) o Xplosion (Otto Group) The Russian market is saturated with solvent users, and is attracting the attention of foreign players. According to the study Data Insight, in 2012 Russians made between 5 and 8 million purchases in foreign online stores worth a total of $1.3 billion.17 Among the key drivers of growth of the RTB market experts point to advertising agencies, which must soon move in this direction. As the head offices of many major network agencies are located in the U.S. 17 http://www.datainsight.ru/ecommerce2012
  10. 10. Russian RTB-market in H1 2013, ©ADFOX, 2013 10 or Europe and already fully enjoy the benefits of programmatic buying, the active dissemination of algorithmic purchases in Russia is only a matter of time. RTB has benefits for agencies. Now agencies can easily purchase a single target audience on websites with different advertising platforms. But today, even when buying visitors from a DSP, they try the old trick of "keeping the audience for themselves" and buy a bundle of impressions won at auction. It is the lack of qualified professionals on the part of advertisers that is largely inhibiting the development of the RTB market in Russia. The problem could be solved by holding training sessions for employees of agencies to teach them about the basic principles and specifics of automated purchasing. Regarding advertisers who are already experimenting with programmatic buying in Russia, according to agencies and DSPs, cars, real estate, finance and e-commerce advertisers dominate. Who is selling? Publishers are also very apprehensive. While in the U.S. traffic is sold by premium content sites via RTB, in Russia many sites are worried about data security. Of course, you do not have to give full details of the impressions put up for auction. But it's a double-edged sword, as anonymous traffic has a much lower value, and by concealing information about the destination page, publishers run the risk of having significantly lower purchases. At the eTarget conference Artem Parshentsev said that the share of anonymous traffic to Google sites in Russia stands at about 60%, whereas in the U.S. this figure is less than 20%.18 At the same time, ADFOX is offering another approach to the sale of traffic through auctions, in which information about the impressions put up for auction is given in full, and anonymous traffic is kept to a minimum. Through SSP exclusively premium traffic is sold with a fairly high minimum purchase value. High minimum prices are used by websites to reduce the risks of loss of income. Site owners have the leverage to optimize revenue by targeting buyers, and by setting a minimum price and the level of transparency of the traffic. In the Russian market the following companies have their own SSP service: o ADFOX o AdRiver o Begun o Between Digital o DoubleClick AdExchange o OpenX o Republer o Yandex 18 http://www.etarget.ru/wp-content/uploads/2013/03/04-parshentsev-etarget2013.pdf
  11. 11. Russian RTB-market in H1 2013, ©ADFOX, 2013 11 Players provide a total volume of about 6 billion impressions available via RTB, a week.19 . In the near future a few more players plan to launch their own SSP-solutions, such as Kavanga with its SSP-service Republer. The Russian market of automated sales traffic has huge potential. It is estimated that today the Russian ad-serving systems provide at least 3 billion impressions per day, a not insubstantial part of which can potentially be put up for auction. The market leaders of external technologies for advertising management are AdRiver and ADFOX, and the largest online projects such as Yandex, Odnoklassniki and Vkontakte have their own technology. Where is the data for targeting from? In Russia, as throughout the world, data is collated by major Internet services and social networks, such as Yandex, Google, Rambler, Mail.ru, VK and Facebook. Other players have extremely limited access to this data, as user profile data is used by the companies themselves, which last year entered the RTB market. Other players use the services of existing suppliers to get third-party data. These suppliers can be divided into two groups: 1) companies that possess data that provide it for targeting advertising (Data Suppliers) 2) companies that aggregate the data of suppliers to generate aggregate profiles based on several sources (DMP). The companies that provide data for targeting advertising include: Data Suppliers: o AddThis o Adex o Liveinternet o Pluso o uLogix o Visual DNA DMP: o Aidata.me / Loger o Auditorius o Lotame o Visual DNA 19 http://www.etarget.ru/wp-content/uploads/2013/03/04-parshentsev-etarget2013.pdf
  12. 12. Russian RTB-market in H1 2013, ©ADFOX, 2013 12 What sells well and for what price? The most popular format in Russia is 240x400, and as expected it is also the most popular format in RTB auctions. Almost 70% of impressions won through auctions were sold in this format. The next most popular formats are 728x90 and 300x250, which are the leaders in the European RTB market. What kind of formats sells well in Europe? ©Adform RTB European Trend Report, 2012 The most popular format (240x400) has the highest CPM.
  13. 13. Russian RTB-market in H1 2013, ©ADFOX, 2013 13 What are the problems? Today, with the high growth rates of the RTB market in Russia there are still certain factors that are inhibiting growth. The main ones are: o publishers are concerned about their data; o it is profitable for agencies to continue working in the old way; o buyers are only just beginning to experiment; o it is not clear what kind of data is going to be supplied and by whom; o the pricing models, standards and quality verification mechanisms are not yet fully determined. What does the future hold? Experts predict that in 2013, RTB will constitute 2 to 5% of the display advertising market. This year is the time for both advertisers and sites to gain a full understanding of the advantages of the new purchasing schemes. Technically, the auction system in Russia can already be put on full throttle, but market participants are not eager to abandon conventional models in favor of unfamiliar schemes with a non-guaranteed income. The short-term forecasts are much more optimistic. The founder of Kavanga Sergey Zhuravlev believes that in 2014 the share of RTB in the display advertising market will jump to 10%. After the first year of growth, which saw the new market segment starting out from point zero, growth will increase rapidly. The CEO of Hubrus Oleg Nazarov-Bruni agrees with this. He is confident that the Russian market will grow faster than the U.S. market because it will “skip” a few steps. All the required products have been invented, and Russian specialists just need to promote them to their customers. According to Oleg, in two years the Russian market will grow as fast as the U.S. did in 5 years, and 30% of media budgets will be spent on RTB.
  14. 14. Russian RTB-market in H1 2013, ©ADFOX, 2013 14 The international company Aegis MediaMore gives more cautious forecasts. This year the company launched a Russian technology platform for the purchase of digital-advertising via the RTB model AMNET. The CEO of AMNET Kirill Chistov, speaking at a Russian Internet Forum in the spring of 2013, forecasted that in 2015 the Russian RTB market will constitute 15% of the total display advertising market. In 2013 and 2014, along with an open auction among multiple DSPs, the Russian market will begin the first steps on the use of programmatic direct. This technology involves the sale of traffic to a single buyer outside the auction, but using the same technology and standards, and at RTB-auction. Programmatic direct allows agencies and DSPs to use the RTB-procurement scheme, working under a direct contract with the sites.
  15. 15. Russian RTB-market in H1 2013, ©ADFOX, 2013 15 Events of the first 6 months of 2013 in Russia January The operator of selective advertising Soloway gave its 2012 results. The company's turnover reached 500 million rubles. One of the most important events of the past year in Soloway was the rapid development of RTB technology in Russia. By connecting the RTB protocol to Google Double Click Ad Exchange and ADFOX SSP, Soloway allows its advertisers to place banner ads in the Google advertising network, on the sites of the holding SUP Media and the media agency +Sol. At the same time, the Soloway behavioral targeting can be applied to all of the connected platforms20 . March The Internet company Tinkoff Digital launched its mobile platform MadNet, built on RTB technology. According to company heads, it has entered into agreements with Google DoubleClick Ad Exchange, Smaato, Mopub, Mobclix and Hunt Mobile Ads21 . The fund Russian Ventures and AIData have launched DMP Loger. According to the creators, the Loger platform is independent, and does not belong to one of the Top 10 media holdings, which does not impose limits on the system in terms of the selection of the data provider22 . April The fund iTech Capital invested $3.5 million in the Garpun advertising platform. According to the press service, the funds will be used to speed up the development process, and also to automate additional online marketing channels, including RTB23 . The advertising network Kavanga launched a new company Republer. The Sell Side Platform (SSP) will allow site owners to sell traffic at auctions in real time. Dmitry Glavatsky was appointed CEO of Republer. The platform is currently being tested24 . The independent advertising DSP-platform by HubRus has been launched commercially. Iponweb is the support partner and supplier of technology.25 May 20 http://internet.cnews.ru/news/line/index.shtml?2013/01/15/515462 21 http://internet.cnews.ru/news/line/index.shtml?2013/03/11/521982 22 http://www.towave.ru/news/fond-russian-ventures-i-aidata-zapustili-proekt-loger.html 23 http://www.digit.ru/internet/20130410/400530137.html 24 http://www.sostav.ru/publication/kavanga-sozdala-rtb-kompaniyu-republer-2301.html 25 http://adindex.ru/news/digital/2013/04/3/98042.phtml
  16. 16. Russian RTB-market in H1 2013, ©ADFOX, 2013 16 The venture fund Prostor Capital invested in the company CPAExchange - an automated service for placing online adverts based on the CPA (cost per action) model. The fund now owns 25% of the company. The size of the investment was not revealed. The funds will be used to complete the development of the RTB-systems in order to increase conversions and also to buy traffic26 . June The international advertising group Aegis Media launched an advert purchasing system in Russia, which is displayed to users in real time. Amnet (belonging to Aegis) has developed an RTB-platform, it is used by advertisers in the U.S., the UK, Germany, France and other countries27 . 26 http://www.adindex.ru/news/digital/2013/05/30/99393.phtml 27 http://www.vedomosti.ru/tech/news/12635631/potorguyutsya_za_polzovatelya
  17. 17. Russian RTB-market in H1 2013, ©ADFOX, 2013 17 Schedule. The RTB market in Russia Market participants
  18. 18. Russian RTB-market in H1 2013, ©ADFOX, 2013 18 Profile: Data Suppliers AddThis is the largest sharing and social data platform. The company personalizes the web with powerful, easy-to-use social engagement tools, APIs and services. AddThis social plugins and analytics are used by over 14 million sites worldwide. Profile: Data Suppliers ADEx – a platform for providing target data. Since 2009 engages in the collection and provision of non- personal data about users activity for promotional use. Profile: SSP, AdServer ADFOX has operated in the market since 2005. The company specializes in the development and delivery as a service independent of technologies for control, monitoring and analysis of the online advertising effectiveness. In November 2012, ADFOX entered the RTB market and launched ADFOX SSP - its own platform for commercial use to optimize advertising revenue on the websites. The ADFOX SSP has undergone technical integration with all of the leading DSPs on the market. Profile: DSP The company was created in 2006 in Germany. It is now one of the leading independent European companies that deals with adverts based on user data. Adnologies offers a wide range of products for websites, agencies and advertisers.
  19. 19. Russian RTB-market in H1 2013, ©ADFOX, 2013 19 Profile: AdServer, Data Supplier The Internet advertising management system AdRiver began working in March 2001 and is now one of the leaders in the Russia technological solutions market in the field of online advertising. AdRiver software currently provides more than 2 billion ad impressions per day. AdRiver belongs to the Internest group of companies. Profile: DSP AdSniper is a system to automatically purchase advertising with price correction in real time in accordance with the campaign results. Profile: DMP Aidata.me is a data management platform. It operates in the markets of Russia, CIS, Brazil and Southeast Asia. The company is engaged in segmenting and transfer of socio-demographic and behavioral data. Various advertising platforms using data Aidata.me provide 100 million targeted impressions per day. Profile: Trading Desks AMNET (Aegis Media) provides responsible and effective data driven display advertising, performance marketing and brand campaigns. The company fuses smart Demand Side Platform technology and data to improve service delivery to clients by buying highly targeted multi channel media. AMNET operates in Russia since May 2013.
  20. 20. Russian RTB-market in H1 2013, ©ADFOX, 2013 20 Профиль: DSP AppNexus is a New York City-based company that provides a platform specializing in real-time online advertising. As of 2013, AppNexus servers process 16 billion ad buys per day; it handled an estimated $700 million in ad spending in 2012, giving it the biggest reach on the open web after Google. Profile: Trading Desks, DMP The project was launched in November 2012. Auditorius works like TradingDesk in the Russian RTB ecosystem. Profile: DSP Begjun is the first Russian performance based contextual advertising service with auction pricing. It enables a “one stop shop” advertising campaign to be held on partner sites in all the major search engines on the Russian Internet, as well as in external advertising services. The company has been operating on the market since 2002, and in 2012 it launched its own RTB-service for its customers. Profile: SSP Between Digital is an integrated platform for managing website advertising that works with RTB technology. The commercial launch was announced in December 2012. Today Between Digital is integrated with AdRiver, Begun, CPA Exchange, Google, and Retargeter. Profile: DSP Crimtan is a behavioral advertising network, built on the basis of its Real-time Audience & Media Platform. The company provides advertisers with advanced internet marketing features, including
  21. 21. Russian RTB-market in H1 2013, ©ADFOX, 2013 21 profiling, segmentation and targeting of the Internet audience, optimization, delivery and campaign reports through a vast network of sites, networks and traffic aggregators. Profile: DSP Criteo is a global leader in personalized retargeting. The company was founded in 2005 in Paris and now works with more than 4000 customers and 600 publishers worldwide. Criteo has business partners in 30 countries in Europe, Asia, the U.S. and has opened representative offices in 15 of them. The company’s largest clients include the Internet store Ozon, Sapato.ru, and Quelle. Profile: RTB Stack The company was founded in 1998, and now is a leading web corporation in the major global markets. The company has been developing RTB since 2009, and has so far invested more than a billion dollars in the development and promotion of this technology. Google has operated in Russia since 2005, and first offered its RTB-products to its customers in 2012. Profile: Retargeting eTargeting was founded in 2011 by European and Russian entrepreneurs with a background in technologies, marketing and international commerce. eTargeting is a four digital channels marketing company: display, affiliation, loyalty, CRM. eTargeting has more than 100 Russian and international clients from different industries. Profile: DSP Russian technology for optimizing advertising budgets. In addition to providing tools to purchase advertising directly, targeted according to the actions and behavior of the audience in real time,
  22. 22. Russian RTB-market in H1 2013, ©ADFOX, 2013 22 customers are given access to the Russian traffic exchange. The first independent service using the company's technology is Retargeter. Profile: DSP Kavanga is one of the largest Russian Internet advertising networks that operates on its own process platform. The company was founded in 2008. Today it integrates more than 1000 high-quality thematic sites into a single advertising space. In Russia it gets 27 million visitors per month aged 12-54 years. Profile: DSP Konverta is one of the pioneers of the Russian RTB-market. The company was founded in 2011. It provides advertisers services to buy traffic at auctions in ad networks. Profile: Data Suppliers LiveInternet is a portal that has since 2003 provided website statistics services and online diaries, and also a variety of other services that serve a wide range of user needs. The leading statistical service LiveInternet provides tools to collate, process and then analyze website visitor data. Profile: DMP Loger is an advertising DMP with a large number of users and a unique quantity of data, processed using a methodology that is new for Russia. The service receives information from 14 different sources. The project was initiated by the fund Russian Ventures and AIData.
  23. 23. Russian RTB-market in H1 2013, ©ADFOX, 2013 23 Profile: DMP Lotame empowers publishers, agencies, and brands to unlock the full value of their audience data with data management platform Crowd Control. Clients leverage Crowd Control to collect unstructured audience data, irrespective of the source, and convert that audience data into insights and analytics, which allows them to make informed decisions and increase ROI of their data assets. Profile: Trading Desks, Interactive Agency «Media Set» was established in 1998 and pioneered Russian digital media advertising landscape. Based on a deep understanding of media consumption and audience behaviour «Media Set» delivers content to the right people at the right time. Agency has been an authorized partner of Yandex, Google, Mail.ru, Begun, AdRiver, DoubleClick, Marin Software, Media Math and other major players both locally and globally. Profile: DSP Headquartered in New York, MediaMath was founded in 2007 and is a leader in the demand side platform category (Forrester Wave, Q4 2011). The company buys billions of highly targeted ads per month on behalf of dozens of agencies, including all the major agency holding companies. Major brands include American Express, Kellogg’s, Prudential and Kayak. MediaMath is a global company with additional offices in London, Boston, Chicago, Los Angeles and San Francisco. Profile: Retargeting Founded in 2005, myThings is a global leader in customized programmatic ad solutions. Turning big data into incremental demand, the company personalizes over 5 billion impressions a month for top advertisers in 30 markets including Adidas, Walmart, ToysRUs, Littlewoods, Very.co.uk, Zalando, Orange, Best Buy, and Microsoft.
  24. 24. Russian RTB-market in H1 2013, ©ADFOX, 2013 24 Profile: SSP OpenX is a global leader in digital and mobile advertising technology. OpenX’s vision is to unleash the full economic potential of digital media companies. OpenX solutions provide a unique Software as a Service platform by combining ad serving, an ad exchange, which includes Supply Side Platform technology, and content valuation. Profile: Data Suppliers Pluso is a sharing service in social networks and blogs. 55 thousand sites have installed the Pluso plugin. Pluso used the widely known link exchange service AddThis as its protocol. The company provides data to Russian DMPs. Profile: Retargeting, Trading Desks Quisma offers full-service, innovative technology and profound expertise covering the entire spectrum of digital marketing. The agency was founded in 2001 and became a member of GroupM (Mindshare, Mediacom, MEC, Maxus) in 2007. Headquartered in Munich the agency has other 12 offices in 10 countries. Quisma works in Russia since 2012. Profile: DSP, Data Suppliers Rambler is a platform that amalgamates Russian language content from the media and reference services. Rambler gets more than 29 million visits per month. Rambler was founded in 1996, and in 2010 it joined the incorporated company Afisha and Rambler, which belongs to the holding ProfMedia.
  25. 25. Russian RTB-market in H1 2013, ©ADFOX, 2013 25 Profile: SSP Republer is a part of Kavanga Group as well it is a stand-alone project that is span off from ex advertising network Kavanga. Republer SSP — one of the first full-service Sell-Side Platform in Russia. Republer SSP technology platform was developed inhouse. Our tech-savvy team boasts a great experience of working with publishers’ business inherited from Kavanga. Profile: DSP RuTarget is a Russian developer of RTB technologies, creating professional solutions to order. Segmento uses RuTarget RTB technology. Segmento provides complex high-tech advertising services for agencies and advertisers. Profile: Retargeting Segmento works using the RTB-technologies of RuTarget and provides high-tech advertising services to agencies and direct customers. Segmento allows delivering personalized advertising messages and those who at least once visited the advertiser's website. Profile: DSP Founded in Berlin in 2009, the company works with Internet marketing, network analysis and scalable computing. As a leading supplier of bidding solutions for advertising companies worldwide, the company helps its customers gradually increase sales, using what are for the brand effective and secure marketing channels to obtain the desired result, which are very clear to the client.
  26. 26. Russian RTB-market in H1 2013, ©ADFOX, 2013 26 Profile: DSP, Retargeting The selective advertisement operator Solovey has operated on the market since 2004 and uses all of the most advanced developments in the field of Internet advertising. Solovey collates and analyzes information about Internet users: about where and how they access the Internet, search engine terms, and also website and page visitor history. Adverts are shown in the extensive media space, which includes hundreds of thematic sites. Profile: DSP Targetix specializes in the development of Internet advertising solutions. In 2009 the company launched its own media network Targetix Display Network, which now integrates more than 5000 Russian language portals. Profile: DSP The largest independent company in the advertising technology sector and the recognized leader in platform-based mobile, video, display, and Facebook advertising. An early pioneer of data-driven advertising, having delivered one of the industry’s first programmatic ad impressions in June 2009. A technology-first company, committed to making big data infrastructure available to customers on five continents on a self-service, subscription basis. Profile: Data Suppliers uLogix operates the data on more than 70 million usersrs monthly, processing an average of 15 interests of each user. The company declares about the coverage of Runet at the level of 80%. Also uLogix offers the technology of mining of retargeting.
  27. 27. Russian RTB-market in H1 2013, ©ADFOX, 2013 27 Profile: DSP, DMP Video International is the largest operator on the media advertising market in east Europe. It provides professional outsourcing services in the field of the media advertising opportunities. The company is working in several areas of the seller business: the implementation of advertising opportunities in TV, websites, radio stations, cinemas, digital indoor networks, and also regional and foreign media. Profile: Data Suppliers VisualDNA is a fast growing startup with offices in Moscow and London. It uses its own patented technology to collate data about Internet users. To create the user portrait it uses visual tests Profile: Trading Desks VivaKi was established in 2008 by Publicis Groupe, the world’s third largest marketing communications organization, to accelerate the digital transformation and expertise of the Groupe and its agencies. Today VivaKi is a global leader in digital advertising solutions, working with the world’s leading organizations to help them navigate the evolving and chaotic consumer landscape. Profile: Trading Desks Xaxis is the world’s largest audience buying company. Through its proprietary platform, Xaxis offers advertisers a single, comprehensive resource from which to reach and engage with global audiences across the universe of digital media. Xaxis does this for its GroupM agency partners, Maxus, MEC, MediaCom, and Mindshare. In October 2012 Xaxis opened its office in Moscow as part of GroupM Russia.
  28. 28. Russian RTB-market in H1 2013, ©ADFOX, 2013 28 Profile: RTB Stack Yandex is the largest Russia Internet company, with its core business being search engine development. The company has a search engine of the same name and the Internet portal yandex.ru. Founded in 1997, Yandex announced the launch of its RTB-platform in March 2012. Several DSP systems have now been connected to the Yandex RTB-system, including Direct, which belongs to Yandex and a media advertising system.
  29. 29. Russian RTB-market in H1 2013, ©ADFOX, 2013 29 Russian RTB-market in H1 2013 Office 508, 6 B Artioukhinoi Street, Moscow, Russia Tel +7 (495) 661 76 77 Email: info@adfox.ru www.adfox.ru All issues relating to the review, please address to Vera Khiteeva, vera@adfox.ru V2 230913

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