Yandex overview presentation from International Search Summit in London in May 2011

1. Yet Another Index?
ISS London
May 2011

2. • Intro to Russian Internet Market
• Yandex 101
• How do you get started?
ISS London
May 2011

3. Russian Internet Market
Internet User Growth - Global
Growth is driven by Russia in Europe and China in Asia
Internet User Growth
750 2008
2009
600 +22%
477
450 +20%
Millions of 390
Internet
Users 325
300 271
+4%
191
184 +28% +79%
150
90 81
70
45
0
Asia Europe North America Latin America Middle East & Africa
Source: ComScore
3

4. Russian Internet Market
Internet Users - Global
Russia has the 7th largest audience of Internet Users in the world; 2nd largest in Europe
Internet Users (MM) per Country
500
420
375
250 239
Millions 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. Korea
Sources: Internetworldstats (2010)
4

5. Russian Internet Market
Internet Penetration - Global
Russia currently has fairly low penetration compared to other large Internet populations
Internet Penetration per Country
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 (2010)
5

6. Russian Internet Market
Russian Internet Penetration Growth
Russian market is growing extremely quickly because of penetration growth
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 2010
Source: International Telecommunications Union 6

7. Russian Internet Market
Russian Internet users by Age Range
Moscow & St Pete Internet penetration resembles major western cities
Age 18-24 25-34 35-44 45-54 55+
Moscow
Russia
Total Population Internet Users
Note: December 2010 7

8. Russian Internet Market
Top Internet Sites in Russia
Most major sites are local
Total Unique
Site Visitors (000)
% Reach
!"""""#$%&'()"*(+)," -."/01" 234-"
3"""""5$6789":%;8<" -."12-" 2!4."
-"""""=>+6;$>;8" -3"//3" .!40"
?"""""*++@&8":%;8<" 3/".0!" 1?40"
0"""""A+<B)<%68<<C+6<)&D6@" !2"2//" ?!4E"
1"""""F%>%G87%$"H+)67$D+6"""":%;8<" !."10!" -24-"
."""""B%;I+((86;"J8;K+(>" !1"3E?" -04!"
2"""""A$GL&8("#87%$" !0"0??" --4."
/"""""#%M(+<+N":%;8<" !?"-20" -!43"
!E""""":OP" !3"0.!" 3.43"
!!"""""OCQR'AO" !3"?/." 3.4!"
!3"""""*$S,(+G"#87%$" !!"322" 3?40"
!-"""""TUPQ:VIHVWU:'CQ#" !E"!2E" 334!"
!?"""""WUIVIBVI'JUI" /"E2/" !/4."
!0"""""HXCUBQQY'CQ#" 2"112" !242"
!1"""""Q,8($":+NK$(8" 2"?E/" !243"
!."""""R$ZM8["J8;" 2"-.?" !243"
!2"""""I8"#+S%&&$"Q(@$6%S$D+6" ."-E3" !042"
!/"""""WV=UVJIUAJUI'AO" 1"0?2" !?43"
3E"""""XQW4"V6M'" 1"E/." !-43"
Source: ComScore (December 2010)
8

9. Russian Internet Market
Search Engine Industry in Russia
Search Engine Traffic Market Share in Russia, January 2011
Mail.ru
Other 7%
4%
Rambler
2%
Google
22%
Yandex
65%
Source: LiveInternet.ru
9

10. Russian Internet Market
Market Share Evolution
Russian Search Traffic Market Share
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-10
Source: LiveInternet.ru. Based on monthly search traffic to Russian websites from Russian IP addresses 10

11. Russian Internet Market
Social Networking in Russia
Local players dominate social media; but Facebook and Twitter doubled in reach in 2010
Global Russia
Total Unique Total Unique
Site Visitors % Reach Site Visitors % Reach
(000) (000)
1 Facebook 662,420 50% 1 VKONTAKTE.RU 32,992 72%
2 Windows Live Profile 131,206 10% 2 Odnoklassniki 27,134 59%
3 Twitter 104,995 8% 3 Mail.Ru - My World 16,458 36%
4 MySpace 79,474 6% 4 FACEBOOK.COM 8,668 19%
5 LinkedIn 65,775 4% 5 FOTOSTRANA.RU 5,216 11%
6 Orkut 52,755 4% 6 TWITTER.COM 2,660 6%
7 Vktontakte 50,517 4% 7 PRIVET.RU 1,848 4%
8 Odnoklassniki 43,241 3% 8 VKRUGUDRUZEI.RU 1,055 2%
9 Yahoo! Puls 39,709 3% 9 MOIKRUG.RU 1,000 2%
Source: ComScore (December 2010)
11

12. Russian Internet Market
Russian Digital Advertising Market
Market grew ~60% Y/Y in Q1 2011
Digital Advertising Market ($MM)
$1,500
$1,333
$1,200 $1,067
$900 $817
$708 Text-based
$599
$600 $497 $517
$410
$356
$237 $274
$300 Display
$56 $107 $130 $298 $300
$21 $47 $107
$223 $243 $0 $0
$35 $60
$0 $0 $0
2004 2005 2006 2007 2008 2009 2010 2011 (f) 2012 (f)
Digital Ad Market as a % of Total Advertising Market
15% 13%
12%
11%
9%
10%
6%
5%
5% 3%
1% 2%
0%
2004 2005 2006 2007 2008 2009 2010 2011 (f) 2012 (f)
Sources: All data other than for online text-based advertising for 2004 - 2006 based on ruble-denominated data from the Association of Communication Agencies
of Russia (AKAR). Data on online text-based advertising for 2004 – 2006 are provided by AIB, and include both text-based advertising and a small portion
of contextually targeted display advertising. 2010-2012 data from Kommersant. All data are reported inclusive of VAT 12

13. Russian Internet Market
Text Ad Revenues in Russia
Yandex owns ~80% of the Russian text ad market when measured by revenues
Yandex
v More than 78,000 advertisers
vMore than 4,300,000 active ads
vMore than 29,000,000 active keywords
Google
Begun
Sources: Market report from Q1 2011; data from iContext
13

14. • Intro to Russian Internet Market
• Yandex 101
• How do you get started?
14

15. Yandex 101
To Win in Certain Markets, Local Knowledge is Key
China Proprietary Search South Korea
Search market share 1: Search market share 2:
• Baidu – 73% Technology • Naver – 75%
• Google – 25% • Google – 3%
Search market share 3:
• Yandex – 65%
• Google – 22%
+ Taiwan
Czech Republic
Japan
Sources:
1. Analysys International
2. KoreanClick
3. LiveInternet.ru 15

16. Yandex 101
Yandex at a Glance
The largest Internet company in Russia
v 65% market share in search
Russia’s #1
v Over 54 million users per month
search engine
v Over 20 years of development
v Local market dominance
Differentiation v Breadth and reach for all demographics
v Machine learning based organic engine
v Local search / Location based services
2011 Initiatives v Global expansion
v IPO on NASDAQ
Track record in v FY 2010 gross revenue - $430M (~85% from text ads)
monetization and v Up 43% over 2009 y/y
profitability v 40%+ EBITDA margin
Sources: LiveInternet.ru; ComScore 16

17. Yandex 101
Yandex - Russia’s Search and Information Retrieval Portal
The largest and highest rated Internet offerings in Russia
News
#1-3
Mail #2
Market #1
Traffic jams/
Photo Sharing #3 Weather #1 maps #1
Blog search #1
Money #1
17

18. Yandex 101
Text Ads on Yandex’s Owned & Operated Websites
Access to the large user base of Yandex’s search and other services
Yandex.Direct
Highest ranking ads
Yandex.Direct
Paid search ads ranked by cost
per click, CTR, and relevance
Organic
search results
Produced by Yandex search Yandex.Market
algorithms Relevant offers from Yandex
comparison shopping
system
Banner
Contextual graphical ads
18

19. Yandex 101
Text Based Ads
v Auction based system based primarily on CTR and Bid
v Placement on four types of sites:
v Yandex Search
v Partner Search (ex. Bing.ru)
v Yandex Advertising Network
v Catalogue & Market Pages
v Three types of targeting available:
v Contextual/keyword
v Geographic (city level)
v Thematic (categories of site types in network)
v Variety of tools available to help in campaign management
v Keyword suggestion, refinement & bid management
v Automatic bid management
v Budget management
19

20. Yandex 101
Top Industries on Yandex
Wide variety of opportunities in both B2C and B2B
Top Ten Industries on Yandex
vAutomotive
vBanking & Finance
vBusiness Services
vConstruction
vConsumer Shopping
vHousing & Rentals
vManufacturing
vPersonal Health
vReal Estate
vTourism
Sources: Yandex; Top Ten by overall spend in recent period
20

21. Yandex 101
Who sees Yandex ads?
Significant reach across multiple cities and countries
21

22. Yandex 101
Text Ad Audience
Geographic targeting is critical for campaign success
Moscow and St Petersburg Other Regions
Internet audience
Contextual ads audience
Paid clicks
22

23. Yandex 101
Wide Array of High Volume Display Advertising Locations
Home Page, Mail, News, Travel, Money, Traffic, TV Guide, Market, Gift Cards, Maps, Weather, 404 Page...
23

24. Yandex 101
SEO for Yandex
vOrganic engine rewritten and launched as MatrixNet in November 2009
vMost of the “old” advice doesn’t apply anymore
vMachine learning based; Archetypal sites” chosen as targets by “Assessors”
vMakes advising on SEO very hard; we don’t even know what the weights are
vNo formal customer support team for SEO’s
vVery good webmaster tools (available in English in Q3 2011)
vGeneral written guidelines available for how to get included in index
vGood writeup by Webcertain that summarizes how the engine works
24

25. • Intro to Russian Internet Market
• Yandex 101
• How do you get started?
25

26. Get Started
4 Things to Remember
vSimple auction based bidding; but with some local differences
vGeographic targeting is important; but you can dip your toes in without it
vRussian language is very different; localization and translation from English is difficult
v“Conversion” can be different; make sure you are measuring the right things
26

27. Get Started
Want to try Yandex?
vContact International Business Development team
vFree translation, training and initial setup
vLocal optimization and campaign feedback
vDedicated English speaking Account Manager in Moscow
vWeb based reporting, budgeting, etc. available in English language interface
vYandex U.S. entity available for simplified payment, invoicing & contracting
vDollars vs. Rubles
vPost pay billing available
vU.S. vs. Russian legal jurisdiction
vEuropean entity planned for late 2011
27

28. Thank You!
Preston Carey
Director, Business Development
preston.carey@yandex.ru
+1 857.288.8762
@prestoncarey
28

29. Appendix
29

30. Russian Internet Market
Russian Advertising Market
Russian Advertising Market ($MM)
$12,000
$11,150
6% $10,373
13%
$9,200 17% $8,874
$9,000 5%
12% 13%
17%
$7,567
$6,800 21%
11% 13%
$6,450 14%
13%
$6,000 18% 22% 5% 9% 14% 5%
$5,100
13% 15% 4%
$MM
24% 6%
$3,930 18% 16% 4%
4%
18% 7%
27%
$3,000 56%
31% 6% 50% 57%
48% 57%
6% 56%
47%
46%
43%
$0
2004 2005 2006 2007 2008 2009 2010 2011(f) 2012(f)
TV Radio Print Outdoor Internet
Sources: All data other than for online text-based advertising for 2004 - 2006 based on ruble-denominated data from the Association of Communication Agencies
of Russia (AKAR). Data on online text-based advertising for 2004 – 2006 are provided by AIB, and include both text-based advertising and a small portion
of contextually targeted display advertising. 2010-2012 data from Kommersant. All data are reported inclusive of VAT 30

31. Yandex Overview
Company History
Search technology developed and refined over almost 20 years
Founding team Search of
starts Incorporation
Fact Launch of international
developing of Yandex
Yandex.ru extraction Yandex documents
Yandex search website is Parallel technology in advertising
technology launched Search Yandex.News network Yandex.Traffic Yandex.com
1993 1998 2002 2004 2007 2009
1989 1997 2000 2003 2005 2008 2010
Breakeven MatrixNet –
Founding team The first Proprietary Purchase of
point achieved breakthrough
joins CompTek contextual anti-spam Yandex.Money
in Q3 search
banner is software
displayed School of Data technology
introduced
Analysis
Yandex.Music
31

32. Yandex Overview
B2B vs B2C: CPC Dynamics
B2B CPC’s are pricer than B2C
32

33. Yandex Overview
B2B CPC Detail
B2B CPC has on average remained flat over last 30 months
33

34. Yandex Overview
Yandex Advertising Network extends our reach
vHigh quality, manually moderated partner sites
vMinimum daily audience of 30k visitors per site
vExcludes “made for advertising” sites which can be prolific in Runet
34

35. Yandex Overview
B2C CPC Detail
B2C CPC prices are generally rising; up to 50% per year
35

36. Russian Internet Market
U.S. Internet Population vs. Rest of World
Global SEM is critical for most multinationals
Global Internet Population Growth
100%
34%
75%
85% Rest of World
50%
United States
% of total
Internet
Population
66%
25%
15%
0%
1996 2009
Source: ComScore
36

37. Russian Internet Market
Internet Penetration: Moscow vs. Other Regions
Internet Users (2009)
Central, incl.
Moscow
Other (31%)
Regions 1
(69%)
Internet Penetration in Russia (2009)
TNS reports that over 85% of
61%
Internet users in Moscow have
48% broadband access
37% 36%
34% 32% 31% 30%
Moscow Central ex-Moscow Northwest Far East Ural Siberia Volga South
Source: FOM (18+ age group) for Fall 2009; 1. Includes Volga, North-West, South, Siberian, Ural and Far East Source: FOM (18+ age group) for Fall 2009 37

38. Russian Internet Market
Top 10 Runet Sites as of April 2010
Russia, Monthly Reach (000’s)
Sources: TNS Web Index Research
38

39. Yandex Advert. Engines
Yandex Display Advertising
vThree types of display advertising are currently offered:
Wide Audience
v ex. Yandex Home Page
v Most visited page on Runet (16M users per week)
v Top advertisers in Russia are here (Honda, Nokia,
Coke, HP, etc)
Affinity
v ex. Yandex “What’s on Guide”
v Top guide to cultural entertainment in Moscow and
St. Petersburg
v 3M unique visitors per week
Contextual
v ex. Yandex Search Engine
v Broad contextual targetting
v Large content sites can also be targetted
39

40. Yandex Advert. Engines
Contextual Text Ads
Yandex.Direct
is a Pay-Per-Click keyword-based service for placing
ads on Yandex and on partner sites of the
Yandex Advertising Network.
40

41. Yandex Advert. Engines
Ads on the Yandex Network of Partner Websites
Broader audience reach for Yandex and its advertisers; enhanced monetization prospects for network partners
through targeted contextual and/or search advertising
Network Partners Bing, Aport & Nigma
Contextual advertising Search advertising
Served by Yandex based on the Served by Yandex based on natural
content of the third-party website search results
and/or the user’s search history
41

42. Yandex Advert. Engines
Yandex.Market
vLeading comparative shopping service
vWeekly audience of 2.5M unique users
vOver 1,500 vetted shops
42

43. Yandex Advert. Engines
Yandex.Direct Tools
vBid management, campaign reporting, keyword suggestions,
webmaster tools and online help are all available
43

44. User Services
Breadth of User Services and Category Leadership
Yandex is one of the best known Internet brands in Russia
Core web search service
#1 Yandex.Search The leading search engine in Russia
Other search and information retrieval services Other services and user-generated content
#1 #2
Yandex.Maps & Traffic Maps and traffic monitoring Yandex.Mail Email service
#2
Yandex.News Aggregator of news Spamooborona Anti-spam software
#1 Yandex.Market Price comparison and shopping engine MoiKrug.ru Online network for professionals
#1 Yandex.Blogs Blog search tool Yandex.Fotki Photo hosting and sharing
Yandex.Adresa Yellow pages and address finder Narod Website hosting platform
Yandex.Auto New and used car search Utilities
Yandex.Video Video search and hosting service Yandex.Bar Yandex toolbar utility
#1
Yandex.Dictionaries Reference and translation resource Yandex.Server Search tech. for servers and networks
Yandex.Catalog Thematic directory of Russian Yandex.Desktop Search Search tech. for personal computers
websites
Yandex.Online Incoming email notification system
Yandex.Afisha Movie and live events guide
Yandex.TV TV program guide Online payment system and mobile applications
Yandex.Travel Schedules Plane and train schedules Yandex.Money Online payment system
#1
#1 Mobile applications Mobile versions of selected Yandex
Yandex.Weather Weather forecasts (1,700 cities
services
worldwide)
44

45. User Services
Yandex.Maps & Traffic #1
The leading maps and traffic service in Russia
Key features Monthly users in Russia, June 2008 (000s)
• Detailed scalable maps with street names and house
numbers
• Satellite images of Russia and Europe
• Proprietary and exclusive live traffic congestion monitoring
system
– Acquisition of road traffic monitoring agency Smilink
– User-generated input via GPS-enabled devices
• Yandex.Adresa – fully integrated with Yandex.Maps, helping
users find local business listings and events
• Mobile maps recently launched – 120,000 weekly users
Information on
local businesses
Traffic jam
viewer
Source: Server logs (stat.yandex.ru, stat.mail.ru) 45

46. User Services
Yandex.Mail #2
Webmail service for the tech-savvy Russian users
Advanced web mail service Monthly users in Russia, June 2008 (000s)
• Proprietary anti-spam technology
• Unlimited storage space
• “Opt out” option for advertising-free email interface
• AJAX interface
– Search-as-you-type
– Email quick summary feature
• Advanced address book
⎯
Transliteration Latin/Russian alphabets
Source: TNS
‘Spamooborona’ anti-spam technology Monthly users in Moscow, June 2008 (000s)
• Proprietary, popular anti-spam software
– Used in Yandex.Mail as well as other web mail and
corporate email systems
• Filters approximately 95% of email as spam
• Performs analyses of thousands of email properties to
ensure highly efficient and precise filtering
• Standalone server solution
• Mass mail clustering
• Self-learning system automatically collects spam
characteristics
Source: TNS
46

47. User Services
Yandex.News #2
News aggregation service
Key features of Yandex.News Monthly users in Russia, June 2008 (000s)
• Innovative aggregation features
̶ News clustering by event
̶ Multi-document summary of an event
̶ Geo-tagging and categorization of events
̶ Name and fact extraction
̶ Linked to biography and quotation database
̶ Searchable news stories within minutes of
publication on the web by original source
• No editorial intervention
− Technology-driven, politically agnostic
Source: TNS
− No preferred sources
− No proprietary content Monthly users in Moscow, June 2008 (000s)
− News aggregators popular in Russia for the
diversity of views they provide access to
• Over 2,000 “content-for-traffic” agreements with
copyright owners
− 30,000 automated entries per day
− No copyright infringement
Source: TNS
47

48. User Services
Yandex.News (continued)
Innovative functionalities: fully automated news clustering, summaries and facts extraction
Real-time
breaking news
displayed at the Top news
top stories
Personalities in
the news and
link to their
“press portraits”
Original story
and full list of
related entries,
images and
videos
Top stories in
the same news
category
48

49. User Services
Yandex.Market #1
The leading comparison shopping service
Value proposition Monthly users in Russia, June 2008 (000s)
• Price comparison and consumer reviews for shops and
thousands of products throughout Russia
• Advanced recommendation engine
– Database of thousands of product models and
features
– Product description compiled by Yandex
• Prioritizes display of offerings from shops in close
proximity to users, increasing relevance to shoppers
and advertisers
• Cross-shop basket
• Public wish lists
Source: TNS
Key features Monthly users in Moscow, June 2008 (000s)
• Over 1,500 pay-per-click merchants
– Automatic product categorization and identification
– Online retailers need to register to get their
products and prices referenced; no unsolicited
“price grabbing”
– Strict merchant quality control
• Does not compete with online store fronts
– Yandex does not keep inventory
• User reviews of merchants and products
Source: TNS
49

50. User Services
Yandex.Market (continued)
Sample product page
Pricing
evolution
List of shops
Summary Publish in wishlist
Product
description Submit reviews
Related
products
Product
accessories
Detailed product
specifications
50

51. User Services
Yandex.Dictionaries #1
The leading reference and translation online resource
Value Proposition Monthly users in Moscow, January 2008 (000s)
• Comprehensive reference and multi-language translation tool for Russian
users
• Access to online encyclopedias and more than 60 dictionaries
– Yandex sponsors digitization of encyclopedia and other offline
resources under exclusive agreements
• Integrated within Yandex.Search to power parallel results
Source: TNS
Access to a rich and ever-expanding database of dictionaries and encyclopedia
Search
Languages
available for
translation
List of dictionaries and Recently added
encyclopedia dictionaries and
encyclopedia
Total number of
dictionaries
51

52. User Services
Yandex.Fotki #3
Photo hosting
Key features
My favorite
• Photo sharing website photographers Search
• Unlimited storage space
• Easy mass upload tools (built in browser) Easy photo Easy photo print
• Launched in 2007 and is already #3 photo hosting service in Russia download
• Accessibility on mobile devices / easy file transfer
• Social network features
Monthly users in Russia, June 2008 (000s)
Photo
contest Real-time top photos of
the day
Most popular Links to Recently
categories related downloaded photos
services
Source: TNS; although not measured by TNS, we believe that PhotoFile is #2
52

53. User Services
Yandex.Blogs #1
The leading blog search engine in Russia
Search Advanced blog search and hosting service
• Collects important information daily out of the Russian
blogosphere
• The largest and most comprehensive blog search
engine in Russia
• Providing instant access to more than 4.5 million blogs
as of June 30, 2008
• Key attractions for our users include daily rankings on
Yandex.Blogs of the most popular postings and topics
• Ability to filter spam
Most Most
popular discussed
blogs entries of the
day
53

54. User Services
New User Services – Recently Launched
Numerous opportunities to add complementary services and drive further growth in user base
Auto search Train and plane schedules
Video search and hosting Disk (file sharing)
54

55. User Services
Yandex.Money
Leading online payment solution with a broad base of users and merchants
Active users (000s) Selected online merchant partners
Russian International
9%
: 12
CAGR
07
04-
Total payments volume ($MM)
%
132
R:
CAG
07
04-
55

56. Automotive Market
Russian Automotive Market
v 2009 was a challenging year; overall sales down by 50%
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 years
Sources: IHS Global Insight; Earnst & Young; Ministry of Economic Development
56

57. Automotive Market
Automotive Brand Market Share in Russia
Foreign brands dominate the top 10
Top Ten Automotive Brands ($ Share, 2009)
30%
24%
20%
% of
Russian
Market
10%
7%
6%
5% 5% 5% 5%
4% 4%
3%
0%
LADA Chevrolet Ford Hyundai Renault Kia Toyota Nissan Daewoo Mitsubishi
Sources: AEB
57

58. Automotive Market
Volume loss in 2009
Market collapse was not shared equally among all brands
Loss in Volume of Cars Sold, 2009 vs. 2008
70% 66%
64%
61%
59%
56%
54%
47% 44%
% of Volume 35%
Lost 33%
23% 19%
0%
LADA Chevrolet Ford Hyundai Renault Kia Toyota Nissan Daewoo Mitsubishi
Sources: AEB
58

59. 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 61% 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
2009 2010
Sources: Yandex; Top Ten by overall spend in recent period
59

60. Automotive Market
Relative Industry Competition in SEM
Automotive CPC is much lower than other Top 10 Industries
Relative CPC on Yandex of Top 10 Industries
Housing & Rental 100%
Construction 98%
Business Services 86%
Banking & Finance 77%
Personal Health 77%
Real Estate 68%
Manufacturing 68%
Consumer Shopping 55%
Tourism 45%
59% Avg. Across All Industries
Automotive 43%
0% 25% 50% 75% 100%
Relative CPC
Sources: Yandex
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61. Automotive Market
Automotive Spend by Brand on Yandex
Wide range of spend that is not well aligned with current market share
Relative Spend by Brand on Yandex (2010)
100% 98%
100%
86%
77% 77%
75%
68% 68%
% of Largest
Brand 55%
Spend
50% 45% 43%
25%
1% 1% 1% 1%
0%
A B C D E F G H I J K L M N
Brand
Sources: Yandex
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62. Automotive Market
CTR by Brand on Yandex
CTR optimization is highly varied even among big spenders
CTR by Brand on Yandex
4%
2009
2010
3.1%
3%
CTR
2%
1.6%
1.5%
1%
0.7% 0.6%
0.5% 0.6% 0.6%
0.5% 0.5% 0.5% 0.5%
0.4% 0.4% 0.3%
0.3%
0.3% 0.3%
0.3% 0.3% 0.3%
0.2%
0.1%
0.1% 0.1%
2010 Average CTR
0% 0% 0%
0%
A B C D E F G H I J K L M N
Brand
Sources: Yandex
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63. Automotive Market
CPC by Brand on Yandex
Average CPC has remained constant but individual brands performance has changed significantly
CPC by Brand on Yandex
$1.50
2009
2010
$1.16
$1.13
$0.96
CPC $0.84
$0.87 $0.86
$0.81
$0.75 $0.72
$0.56 $0.56
$0.49
$0.48 $0.50 $0.50
$0.43 $0.45 $0.45 $0.43
$0.42 2010 Average CPC
$0.38 $0.32 $0.34
$0.30
$0.26
$0.17
$0.12
$0.10
$0 $0 $0
$0
A B C D E F G H I J K L M N
Brand
Sources: Yandex
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64. Automotive Market
Share of Voice by Brand on Yandex
Large spenders share of voice has shifted strongly in 2010
Share of Voice by Brand on Yandex
30%
2009
27%
26% 2010
21%
20%
20%
17%
% of Total
Automotive 14%
Industry
Clicks 13% 13%
12%
10%
10%
6%
5%
3%
2% 2% 2% 2% 2%
1% 1% 1%
0% 0% 0% 0% 0% 0% 0%
0%
A B C D E F G H I J K L M N
Brand
Sources: Yandex
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65. Automotive Market
Automotive SEM Takeaways
v Establishing market share is key in this fast growing market
v Lower market share foreign brands are increasing budgets aggressively
v Dominance in the automotive SEM market is still being established
v Fairly low competition today
v ROI and tracking technologies are not well established
v Budgets are all over the map but growing
v Existing “global” campaigns are rarely well optimized for local realities
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