eTourism in Russia

Etourism Seminar – Saimaa / Finland Search

May 2012

2

Russian Internet market

Yandex overview

Some facts about tourism

How to advertise on Yandex

Get Stare

Agenda

RUNET:

biggrowing potential global

BigRunet: to be the largest European internet population by 2013 (93,2 mln)*

*Source: Forester Research World Online Population

Forecast, 2010 to 2014 (Global)

**2011 23,9 50,3 52,7 67,4 61,5**Source: Internet World Stat 2011-2012

5

Low penetration – high upside !

% of Population

Growing

Source: FOM. Internet in Russia. Summer 2011.

< 40 41-45 46-50

51-5556 <

21 regions with internet penetration > 50 %

7.9

9.6

11.8

14.6

2010 2011e 2012e 2013e

2%

5%

10%11%

13%

15%

18%18%20%

29%

UK China GermanyFrance US Spain Russia Italy Brazil India

7

High potential in the AD Market

Market Overview

Russian Total Ad Market ($ Bn)

10-13e CAGR: 23%

Online as % of Total Ad Spend

Source: AKAR

Internet 2nd behind TV (in bln. rub.)

TV Radio Print Media Outdoor Advertising Online Advertising0

20

40

60

80

100

120

140

160

2008200920102011

Paid Search (66%)Display (26%)

Social (4%)

Video (4%)Mobile (1%)

Online advertising share

9

Mandarin Spanish English Russian

Confucius Miguel de Cervantes William Shakespeare Leo Tolstoy

Global

Source: SIL Internationaal (2002), George Weber (1997), Euromonitor (August 2010), Rosstat (2010), Company data, Morgan, Stanley Research

Russian is the 4th most spoken language globally. 250–300 mln speakers

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Yandex overview



Get Stare

Agenda

12

Key Investment Highlights

Naver

Yandex

Baidu

(launched 1997) (launched 2001) (launched 1999)

1 2 3

1. As of March 2012 2. As of 2Q 20113. As of May 2011

Russia ChinaSouthKorea

Yandex

Google

Others

Baidu

Google

Others

Others Google

NHN

Source: Liveinternet.ru, comScore, Analysys International

Local Champions Can Win in Search

76%

19%

5%

65%

9,5%25,5%

14%

26%

60%

13

Introduction

Yandex is the Market Leader

#1 Internet Destination

45 million unique visitors per

month2

44% of Russian users’ homepages3

Search Leader

60% search market share in

Russia1

Leading Online Advertising

Platform

270,000+ advertisers in 20114

51% online ad market share5

Largest Russian Internet Business

FY 2011

$622m Revenues6 (60% yoy

growth)

$287m Adj. EBITDA7 (50% yoy

growth)1 Source: Liveinternet, January 20122 Source: comScore (December 2011)3 Source: TNS, January 20114 Source: Company Information, FY 2011

5 Source: AKAR 2011, as of Feb 22, 2012, adjusted for commissions6 Source: Company Information for the FY period 2011, using an exchange rate of RUR 32.1961 to $1.00 as of Dec 31, 20117 Source: Company Information for the FY period 2011, using an exchange rate of RUR 32.1961 to $1.00 as of Dec 31, 2011 Adjusted EBITDA is EBITDA before share-based compensation

14

Yandex is Search and Much More

15

The Gateway to the Russian Internet

News

Traffic Jams / Maps

Yandex.Money

Comparison Shopping

Mail

Russia’s Most Popular Homepage – 44% of All Russian Users

16

Key Investment Highlights

Source: Company information, Liveinternet.ru, iResearch, SearchEngineWatch.com, comScore

Continuous Focus on Innovation

1. Baidu News Service launch date based on being available as of the date of IPO

1998

1997 2000 2002 2004

2002 2004 2006

2001 2005 2008

1

Search

Mail

MapsShoppingNews

PaymentsLanguage

Understanding

1989

2005

1989

Yandex “in your pocket” : mobile apps

Yandex Raspissanie : Meta-search for transport

Yandex Maps : platform for tourism !

Yandex Taxi

Turkey – Our First International Market

Population of 76MM Internet users (‘11): 35MM (46%) 28 local portals Online ad market (‘13E): $300MM No established #2 player in search

1 Euromonitor; FOM; Global Insight; InternetWorldStats.com; ZenithOptimedia; Advertising Expenditure Forecasts, December 2011; Internet user penetration based on total population (source: Global Insight)

2 comScore, January 2012

Turkey at a Glance1 Yandex in Turkey

2.0MM users in January 20122

>1 MM daily users of the portal Local content & home page Exclusive content on Yandex.Maps

Maps and Map Based ServicesTurkish Market: Fast Growing and

Sizeable

130K downloads of Yandex Mobile

Maps

News

News

Image search

Image search

Video search

Video search

Search for

goods

Search for

goods

Mail

Mail

Weather

Weather

WidgetsWidgets

Expected to be among leading EMEA markets in terms of Ad Expenditure growth in 2011-2014

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25


Yandex overview



Get Stare

Agenda

Total possible number of impressions and clicks in the considered groups of requestsImpressions:• Tourism and related requests: more than 48,4

million impressions per month• Tourism requests: more than 138’600

impressions per month

Clicks:• Tourism and related requests: more than 1,32

million* clicks per month• Tourism requests:more than 3,8 thousand*

clicks per month

**Source: Internet World Stat 2010-2011

* If the position choice is “special placement”

Maximum number of impressions by type of requests (Travel agency / tourism)

requests about travel agency/tour

general requests about tourism

0M

5M

10M

15M

20M

25M

20.2M

14.9M

Total capacity of considered groups of words – more than 35 million impressions per month


Maximum number of clicks by type fof requests related to tourism

Total capacity of considered groups of words – more than 806K clicks per month

requests about travel agency/tour

general requests about tourism

0K

100K

200K

300K

400K

500K

600K

700K

593K

213K


November is the Key season for tourism related requests in Russia

**Source: Internal Ressourse 2011-2012

Jan

-11

Fev-1

1

Mar-

11

Ap

r-1

1

May-1

1

Jun

-11

Jul-1

1

Au

g-1

1

Sep

-11

Oct

-11

Nov-1

1

Dec-

11

0

50

100

150

200

250

300

97 96108 113 118

129 128139

153

186

223

193

in season

Requests by theme : largest share goes to “Tours & Holidays”


Travel by bus

Fishing

Shopping tour

Ferry

Ski resort

Travel by car

Hotels

Cottage rent

Tours&Holidays

0% 10% 20% 30% 40% 50% 60%

1%

1%

4%

5%

5%

6%

9%

18%

51%

Key users interest in tourism products

In tourism seasonal fluctuations are observed: after New Year's holidays users are interested in “Holidays”, “Tour” and “Tour operator” more actively.

Jan-1

0

Mar

-10

May

-10

Jul-1

0

Sep-1

0

Nov-1

0

Jan-1

1

Mar

-11

May

-11

Jul-1

1

Sep-1

1

Nov-1

1

0M

1M

2M

3M

4M

5M

6M

7M

Holidays

Tour

Tour operator

Trip

Travel agency


Turkey and Egypt are most popular destinations, depending on season

User request of trip to the different countries has significant seasonal fluctuations and strongly depends on a season. In the summer the majority of users search information about tourism in Turkey, in the winter – in Egypt and Thailand.


Jan-1

0

Mar

-10

May

-10

Jul-1

0

Sep-1

0

Nov-1

0

Jan-1

1

Mar

-11

May

-11

Jul-1

1

Sep-1

1

Nov-1

1

0K

200K

400K

600K

800K

1000K

1200K

Egypt

Turkey

China

Thailand

UAE

Iceland

Denmark

Sweden

Norway

Finland

0K 20K 40K 60K 80K 100K 120K 140K 160K 180K 200K

3.0K

4.6K

15.3K

12.7K

87.2K

3,8K (2%)

5,4K (2%)

22,3K (10%)

14,8K (6%)

185,5K (80 %)

Nov-2011

Feb-2012

Finland leads amongst Scandinavian destinations requests


Most requests about Finland originates from Russia’s North-Western region


Others

Center

North-West

0% 10% 20% 30% 40% 50% 60% 70% 80%

10%

23%

67%

13%

38%

48%

Nov-2011

Feb-2012

Seasonality differs by category of requests


When and how it is better to place an advertisement?

• Use of tourism and related requests about trips, tours and air tickets will allow to attract more targeting users on a web-site.

• Use of tourism and related requests for advertising will make positive impact on a gain of visitors in a web-site.

• In period of active demand an advertising campaign by thematic requests will be particularly relevant.

• For the most effective budget allocation we recommend to start campaign of tourism requests in advance (or not to turn off in low demand), to accumulate high CTR.

37


Yandex overview



Get Stare

Agenda

Appropriate tools for each marketing objective

• Main page, Yandex.News, Yandex.Mail, Yandex.Direct

• Yandex.Traffic_Jams, Media-Contextual Banners, Yandex.Market, Yandex.Direct

• Yandex.Direct

Coverage Building

Niche Branding

Sales Push

Wide range of Banner Ad options available

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Yandex.Direct: places

Yandex.Direct: interface

Keywords

Ad Text

CPC Your Bid

Yandex.Direct: advantages

Targeted audience

Adverts will be shown only to users who are looking for your products or services

Ads assist, not distract

Exact answer to the user questions. The main task: sales

Budget control

PPC model. Real time bid management.

Flexibility

Variety of options. Fast and flexible ad materials change.

Post-click Analysis

Access to real time statistics at any point over the course of the campaign. Variety

of reporting options and additional instruments for further analysis.

Bid management in English

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Yandex.Metrica – web analytics tool

45

46

WebVisor

48

What problems occurred during the indexing process Which pages are included in the search index Who links to your website What searches people make to find your website How to protect your site from viruses How to improve the appearance of your site in the search results

Yandex Webmaster Tools tell you

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Contact International Business Development team

Free translation, training and initial setup

Local optimization and campaign feedback

Dedicated English speaking Account Manager in Moscow

Web based reporting, budgeting, etc. available in English language interface

European Yandex entity available for simplified payment, invoicing &

contracting

EURO vs. Rubles

Post pay billing available

EU vs. Russian legal jurisdiction

Get Stare

Try it out !!

Bernard LukeyGeneral DirectorYandex Europe [email protected] +41 41 248 08 60

Tatiana Kalinina Head of direct foreign [email protected]: +7 495 739 22 22 ext 2430

Thank You!

eTourism in Russia

Business

Transcript of eTourism in Russia