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Yandex Overview from SES San Francisco


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Yandex Overview from SES San Francisco

  1. 1. SES San Francisco<br />Search<br />August 2011<br />
  2. 2. 2<br />Get Stare<br />Agenda<br /><ul><li>Russian Market & Yandex Overview
  3. 3. Paid Search
  4. 4. Organic Search</li></li></ul><li>Introduction<br />Yandex: World-Class Technology & Internet Leader<br />#1 Internet Destination<br />38 million unique visitors per month<br />44% of Russian users’ homepages<br />#1 Search Leader<br />65% search market share in Russia<br />Leading Online Advertising Platform<br />180,000+ advertisers<br />58% online ad market share<br />Largest Russian Internet Business<br />$440 million Revenues (2010)<br />$217 million Adj. EBITDA (2010)<br />3<br />
  5. 5. Key Investment Highlights<br />Local Champions Can Win in Search<br />Yandex<br />Baidu<br />Naver<br />(launched 1997)<br />(launched 2001)<br />(launched 1999)<br />Yandex<br />Baidu<br />NHN<br />1<br />2<br />3<br />SouthKorea<br />Russia<br />China<br />Google<br />Others<br />Others<br />Others<br />Google<br />Google<br />Source:, iResearch,, Nielsen KoreanClick<br /> As of March 2011 <br /> Average market share for 2010<br /> As of August 2010<br />4<br />
  6. 6. Key Investment Highlights<br />Continuous Focus on Innovation<br />Mail<br />Payments<br />Search<br />Maps<br />Shopping<br />News<br />Language Understanding<br />1997<br />2000<br />2002<br />2004<br />1989<br />1998<br />2002<br />2004<br />2006<br />2005<br />1<br />2001<br />2005<br />2008<br />1989<br />Source: Company information,, iResearch,, comScore<br />1. Baidu News Service launch date based on being available as of the date of IPO<br />5<br />
  7. 7. Financial Review<br />Local Focus and Understanding<br />Russia/CIS is our “Backyard”<br />Locally-relevant Content and Services<br />Russia + Ukraine + Kazakhstan + Belarus<br />Search Verticals<br />Maps/Traffic<br />Street Views<br />Images<br />Videos<br />Music<br />Goods<br />Blogs<br />…<br />1,400 different territories for Yandex<br />Our Ad Campaigns Have a Russian Accent…<br />“The monitor does not give consultations.”<br />6<br />
  8. 8. Key Investment Highlights<br />Yandex: The Search Market Leader in Russia<br />Search Traffic Share 1<br />65%<br />58%<br />November 2009<br />Launch of MatrixNet<br />2006<br /><ul><li>Google opens office in Russia
  9. 9. Google introduces Russianlanguage morphology</li></ul>January 2010<br /> stops using Yandexfor search<br />26%<br />22%<br />7%<br />5%<br />5%<br />2%<br />Source: (March 2011)<br />Source: (March 2011)<br />1. Search traffic reflects Russian users to Russian websites<br />7<br />
  10. 10. Key Investment Highlights<br />Yandex is Replicating Success in Adjacent Markets<br />Share of Search Traffic in Ukraine, Kazakhstan and Belarus 1<br />Ukraine<br />Kazakhstan<br />Belarus<br />(2005)<br />(2009)<br />(2010)<br />73%<br />64%<br />52%<br />46%<br />48%<br />48%<br />29%<br />26%<br />24%<br />37%<br />40%<br />19%<br />22%<br />20%<br />7%<br />6%<br />3%<br />3%<br />Source: (March 2011)<br />1. Search traffic reflects transitions by respective country’s users to local and Russian sites<br />8<br />
  11. 11. Leadership in a Fast-Growing Market<br />Number of Searches per Month (MM) 1<br />2,336<br />783<br />254<br />68<br />54<br />Sources: (March 2011)<br />1. Based on monthly search traffic to Russian websites from Russian IP addresses <br />9<br />
  12. 12. The Gateway to the Russian Internet <br /> Russia’s Most Popular Homepage – 44% of All Russian Users<br />News<br />Mail<br />Traffic Jams / Maps<br />Comparison Shopping<br />Yandex.Money<br />10<br />
  13. 13. The Most Popular Online Destination in Russia<br />Monthly Unique Visitors in Russia (MM)<br />Source: comScore (March, 2011)<br />11<br />
  14. 14. Key Investment Highlights<br />Russia: Large and High Growth Internet Market Opportunity<br />Growth in Internet Users vs. Penetration<br />Total Internet Users (MM)<br />Key Developed Markets<br />Russia 2014e<br />BRIC<br />Brazil<br />Internet Penetration 2010 (%)<br />Russia 2010<br />China<br />India<br />Internet users CAGR 2010-14e (%)<br />2010<br />2014e<br />Source: Euromonitor (January 2011), FOM (March 2011) for Russia<br />12<br />
  15. 15. Market Overview<br />The Russian Advertising Market Is Booming<br />Russian Total Ad Market ($ Bn)<br />Online as % of Total Ad Spend – 2010<br />10-13e CAGR:23%<br />Source: ZenithOptimedia (April 2011)<br />13<br />
  16. 16. Financial Review<br />Russia – A Rich Source of Technical Talent<br />Education in “Hard” Sciences<br />Math & Programming Olympiads<br />Yandex School of Data Analysis<br />Best Place to Work for Russian Developers<br />14<br />
  17. 17. 15<br />Get Stare<br />Agenda<br /><ul><li>Russian Market & Yandex Overview
  18. 18. Paid Search
  19. 19. Organic Search</li></li></ul><li>16<br />4 Things to Remember when you use Yandex<br /><ul><li>Simple auction based bidding; but with some local differences
  20. 20. Geographic targeting is important; but you can dip your toes in without it
  21. 21. Russian language is very different; localization and translation from English is difficult
  22. 22. “Conversion” can be different; make sure you are measuring the right things</li></li></ul><li>17<br />Get Stare<br />Want to try Yandex?<br /><ul><li>Contact International Business Development team
  23. 23. Free translation, training and initial setup
  24. 24. Local optimization and campaign feedback
  25. 25. Dedicated English speaking Account Manager in Moscow
  26. 26. Web based reporting, budgeting, etc. available in English language interface
  27. 27. Yandex U.S. entity available for simplified payment, invoicing & contracting
  28. 28. Dollars vs. Rubles
  29. 29. Post pay billing available
  30. 30. U.S. vs. Russian legal jurisdiction
  31. 31. European entity planned for late 2011</li></li></ul><li>18<br />Get Stare<br />Agenda<br /><ul><li>Russian Market & Yandex Overview
  32. 32. Paid Search
  33. 33. Organic Search</li></li></ul><li>19<br />Yandex 101<br />SEO for Yandex<br /><ul><li>Organic engine rewritten and launched as MatrixNet in November 2009
  34. 34. Most of the “old” advice doesn’t apply anymore
  35. 35. Machine learning based; Archetypal sites” chosen as targets by “Assessors”
  36. 36. Makes advising on SEO very hard; we don’t even know what the weights are
  37. 37. No formal customer support team for SEO’s
  38. 38. Very good webmaster tools (available in English)
  39. 39. General written guidelines available for how to get included in index</li></li></ul><li>20<br />Yandex Webmaster Tools tell you<br /><ul><li>What problems occurred during the indexing process
  40. 40. Which pages are included in the search index
  41. 41. Who links to your website
  42. 42. What searches people make to find your website
  43. 43. How to protect your site from viruses
  44. 44. How to improve the appearance of your site in the search results</li></li></ul><li>21<br />Yandex Webmaster Tools Examples<br />CTR by Query<br />Click Share by Query<br />Links<br />Popular Queries<br />
  45. 45. 22<br />How do I get started on Yandex.Webmaster in 3 easy steps?<br /><ul><li>Register on
  46. 46. Verify site ownership (variety of choices - text file, DNS, etc)
  47. 47. Go play!</li></li></ul><li>Thank You!<br />Preston Carey<br />Director, Business Development<br /><br />+1 857.288.8762<br />@prestoncarey<br />