Tatiana Kalinina, Business Development Director,

International Dev

Russia’s internet

audience

Russian is the 4th most spoken

language globally. 250–300 millions

speakers

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

Confucius Miguel de Cervantes William Shakespeare Leo Tolstoy

RussianEnglishSpanishMandari

n

Top 10 Internet Countries

in Europe in 2013, million

Source: eMarketer, Internetlivestats July 2014

0 10 20 30 40 50 60 70 80

Ukraine

Netherlands

Poland

Spain

Italy

Turkey

United Kingdom

France

Germany

Russia 82.9

60.3

50.1

49.7

35.8

35.4

30.6

25.7

16.8

14.3

BigIn 2013 Russia became the

largest internet audience in

Europe

Low penetration – high upside (%) !

Source: eMarketer, Gemius, Information Technologies and Communications Foundation, 2013

Only 61% of the Russian population is online

Russia, age 18+, %

Source: FOM, June 2014

Internet penetration in Russia by age

Source: TNS, February 2013

97% 99%95%

89%

72%

40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

12-17 18-24 25-34 35-44 45-54 55-64Age

Russia’s advertising

market

Russia’s advertising market grows rapidly

The largest contributors to the growth of the world’s ad

market (bn., $)

Source: ZenithOptimedia, June 2014.

Country Growth

1 U.S.A. 23.66

2 China 15.73

3 Indonesia 6.02

4 Argentina 5.37

5 UK 4.80

6 Brazil 3.89

7 Japan 2.65

8 Russia 2.35

9 South Korea 2.15

10 Mexico 2.12

From 2013 to 2016,

Russia’s ad market is

expected to grow by

$2.35billion

How will Russia’s ad market look?

Volume of ad market’s segments in dynamics

0

20

40

60

80

100

120

140

160

180

200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Billion rubles

Internet

Outdoor

Magazines

TV

Source: ZenithOptimedia, June 2013.

Contextual advertising is the most popular type of online advertising

Russian online ad market structure dynamics.

Banners

Contextual

And its market share continues to grow

Source: RACA, 2014.

Russian e-commerce market

82.9million

monthly users online

of all population

30.6million

users buy in e-shops

Growth is due to expansion of regional shoppers.

58%

Source: eMarketer, July 2014

E-commerce boost!

The e-commerce market in Russia will double between 2011

and 2015

Source: eMarketer, July 2014.

Digital Landscape –

The Players

Yandex is the first search engine

in Russia

Source: LiveInternet.ru, July 2014

29.7

2.57.3

60.5%

Don’t Forget about CIS!

Ukraine

32.4%

Source: LiveInternet.ru, July, 2014

Belarus

44.2%

Kazakhstan

24.5%

Bigger than any TV channel

Bigger than any TV channel

0

3,000

6,000

9,000

12,000

15,000

18,000

21,000

24,000

27,000

1/1/08 1/1/09 1/1/10 1/1/11 1/1/12 1/1/13 1/1/14

Source: TNS TV Index, TNS Web Index, Russian daily audience aged 12-54, cities with population 100 000 and more , August 2013.

Yandex is Russia’s leader in online

advertising market, 2013, %

Source: RACA, 2013

58%

79%81%

70% 70% 69% 68%

39%

53%56%

49%51%

53%55%

16%18% 18%

15%18% 19%

21%

2007 2008 2009 2010 2011 2012 2013

Contextual advertising

Online advertising

Display advertising

директ

Goals of an advertising campaign

can be different

Yandex.Direct

Generate Sales

Yandex.Market

Sales Volume Increase via Comparison Shopping

Yandex.Display

Brand Awareness

Building Coverage

маркет

Goal 1

Goal 2

Goal 3

1. Content Network on top of Search!

Two types of Content sites:

Search sites

(search intent)

Content sites

(thematic targeting)

2. Don’t copy content from other

Search Engines/other Markets!

Match Type Differences

Ad Copy Size/Layout Differences

Actual Search patterns differ from market to

market

Wordstat - Keyword Suggestion ToolReal Searches on Yandex

Account Level

Brand

Own brand campaign

Competitor brands

Top destinations

Countries

Cities

POI

Hotel names

Generic

Further Intent

Promos

Winter destinations

Holiday destinations

Content Campaign

2

5

3. Semantic Account Structure in Paid Search- Hotel Booking

Based on actual Russian search

patterns

Semantic Account Structure in Paid Search- Flights

Account Level

Brand

Own brand campaign

Competitor brands

Top destinations

Countries

Cities

City Pairs

Airline Brands

Generic

Further Intent

Promos

Winter destinations

Holiday destinations

Content Campaign

Yandex.Display

Vision

Goal 3

News

#1-3Mail

#2

Comparison

Shopping #1

Auto

#2

Music

Yandex.Money

#1

Metrika.Analytics

tool

Jobs

Weather #1

TV listings

Traffic Jams,

Maps #1

10+ Thematic Portal Projects – Leaders in

their Theme

Display Targeting Types

• Soc-Dem Targeting (age, gender,

income)

• Targeting by Interests

• Search Retargeting

• Behavioral Retargeting incl.

Audience Extension to Content

Across 10+ Portal Projects & Content

49 M Unique Users monthly

Available

on RTB

Yandex.SchedulesTravel!

______________________________________

CPM: 4,60/4 GBPPart of RTB network

728х90

Yandex.WeatherDream of warm continents!

______________________________________

CPM: 4 GBPPart of RTB network

Display Traits in «Hotel Booking» segment

Данные Метрики в категории «Услуги отелей/гостиниц» за период Q1 2013 - Q1 2014

18.0%

24.9%

Баннеры Яндекса Все рекламные системы

Avg Bounce Rate

- 7 %

3.2

2.8

Баннеры Яндекса Все рекламные системы

Average Page Depth

+ 0,4

Display Traits in «Hotel Booking» segment

Данные AdOffice и Баян-2 и за период Q1 2013 - Q1 2014

0.14%

0.28%

0,39%

2012 2013 Q1 2014

Avg CTR for Display placements on Yandex

Display Traits in «Hotel Booking» segment

Данные AdOffice и Баян-2 и за период Q1 2013 - Q1 2014

168.17

118.37

9.83

2012 2013 Q1 2014

Avg CPC (RUR) of Display Placements on Yandex

No of Display Placements is growing

Данные TNS AdFact Q1 2013 – Q1 2014

0

100

200

300

400

500

600

700

800

900

Q1 Q2 Q3 Q4

2013 2014

22,3%

Данные TNS AdFact Q1 2013 – Q1 2014

0

5

10

15

20

25

30

35

40

45

50

Q1 Q2 Q3 Q4

2013 2014

40,6%

No of Display Spaces (Publishers) is growing

При условии, что ежемесячно размещения проходили не менее 7 днейДанные TNS AdFact Q1 2013 – Q1 2014

0

5

10

15

20

25

30

Q1 Q2 Q3 Q4

2013 2014

8,3%

No of Brands with regular Display Activity is growing

(7 days continuous or more)

Search BannerKeyword Targeting

—Double hit – visually attention grabbing while targeting through keywords

— Guaranteed contact with your target audience

________________Price (CPM): 750 RUR

Banner format: 200x300 pixel, 240x400 pixel

Hotel Booking

Flights

Travel Vertical Overview in

Search

39

User Interest in CategoryQueries related to traveling varies from 0,5 to 1,7% of total Yandex

queries.

Queries share related to traveling in total

amount of Yandex queries

Queries share related to Hotels in overall

Travel category volume

Queries on hotel booking made

approximately 30% of total

amount queries.

Seasonal peak in July for “traveling”

queries was less pronounced in 2013,

although total share of queries for the

year stayed the same.

Yandex, Apr 2014

wordstat.yandex.ru

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

30%

16%50%

4%Hotels

Air tickets

Package tours

Other

40

User Interest in Category: Hotels

May’2013 – Apr’2014May’2012 – Apr’2013 Impressions

Yandex, Apr 2014

wordstat.yandex.ru

128,247,408

144,092,226

+12%

1 2

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

May Jun Jul Aug Sep Oct Nov Dec 2013 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 Feb Mar Apr

Generic queries

on hotels

41

46,524,39958,221,942

+25%

1 2

User Interest in Category: Flights

wordstat.yandex.ru

Geo: Russia+CIS

Aug’2013 – Jul’2014Aug’2012 –Jul’2013

Generic queries

on air tickets

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000Impressions

42

Interest Travel in Russian regions

Share of queries from users of the regions with the highest internet

penetration (Moscow and St. Petersburg) is gradually reducing.

The audience is gradually being reallocated in favor to the regions.

The total share of Moscow and St. Petersburg has dropped from

58% to 47-49%. Flights are a little more Capital focused than

Hotels.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Autumn2011

Winter 2011-2012

Spring 2012 Summer2012

Autumn2012

Winter 2012-2013

Spring 2013 Summer2013

Autumn2013

Winter 2013-2014

Spring 2014 Summer2014

42% 44% 44% 43% 43% 44% 47% 50% 50% 51% 52% 51%

58% 56% 56% 57% 57% 56% 53% 50% 50% 49% 48% 49%

Russia (except Moscow and St. Petersburg) Moscow and St. Petersburg

43

How do users search within the Travel segment?

Top Searches of accommodation types

Отели (hotels)

Гостиницы (as above, synonym)

Хостел (hostel)

Апартаменты (apartments)

Brand-oriented

Hilton

Radisson

Азимут (Azimut)

Marriott

44

Number of Brand queries is growing

0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

2012 2013 2014 2015

+14%

Generic queries

Brand queries

45

Top Search Queries regarding Hotels

отели турции

отель звезда

5 отель 5* hotel

гранд отель

отель 4

отели египта

отель будапешт

отели хургада

Лучшие отели best hotels

отель 5 звезд hotel 5 stars

гостиницы москвы

сайт гостиницы

официальная гостиница

гостиница официальный сайт

гостиницы петербурга

гостиницы санкт

гостиницы санкт петербурга

гостиницы цены

недорогие гостиницы

мини гостиница

Отель Inlaid Queries Гостиницы Inlaid

Queries

46

Stars - Segment dynamics

Wordstat

region: Russia ; Apr 2014.

Impressions

Impressions

Variation of user interest

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Hotels 2*

Hotels 3*

Hotels 4*

Hotels 5*

+24,24%

+30,44%

+35,70%

+49,67%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Hotels 5* Hotels 4* Hotels 3* Hotels 2*

May’2012 – Apr’2013

May’2013 – Apr’2014

47

Seasonal interest growth structure

Interest growth in a flight to a destination usually comes before the main

wave of tourist interest. Often it consists of 2 waves:

- the first wave that precedes tourist season and general interest in the

country by 1-2 months;

- the second wave coincides with a peak of interest in tourism in the

country (July)

Generic queries on the travel

to the country

Queries on air tickets

to the country

0

5000

10000

15000

20000

25000

Top Brands

49

Hotel Booking Services – Most Searched brands

Yandex, Apr 2014

wordstat.yandex.ru

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

May Jul Sep Nov 2013 Mar May Jul Sep Nov 2014 Mar

BOOKING.COM

OSTROVOK.RU

TRIPADVISOR

TRIVAGO

AGODA

ROOMGURU(HOTELSCOMBINED)

OKTOGO

HRS.RU

HOTELS.COM

HROS.RU

HOTEL-SCANNER

Impressions

50

0

50,000

100,000

150,000

200,000

250,000

Flight Aggregator Brand dynamics

wordstat.yandex.ru Geo: Russia

Impressions

Skyscanner

Momondo

Aviasales

Anywayanyday

Trip.ru

Onetwotrip

Kayak

Svyaznoy.travel

SenturiaBiletix

Ozon.travel

Amargo

Nabortu

Jizo

Bravoavia

Davs

Aviacassa

Skyscanner is the leader in terms of user interest. Momondo took 2nd place.

51

Top Searched Airlines

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

Destination popularity

53

The Most Popular Countries to Travel to(Top-20, throughout the year)

Yandex, Apr 2014

wordstat.yandex.ru

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

“Package” destinations

Other countries

54

The Most Popular Countries (“non-package”

destinations except Russia)

Yandex, Apr 2014

wordstat.yandex.ru

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Temperature targeting

New Product Release

Yandex.Weather – no1 Weather

Portal in Russia

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EMPTYллл

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On Your

Way?

59

Thank you!

Tatiana Kalinina

Business Development Director,

International Division

Eng-ad@yandex-team.ru

kalinina@yandex-team.ru

International Sales