Yandex and Russian Digital Advertising Market Overview
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Transcript of Yandex and Russian Digital Advertising Market Overview
Preston CareyBusiness Development Director
• Market Trends
• Yandex Overview
• Advertising Opportunities
Agenda
• Online Customers in Russia
Market Trends
4
67,4
50,3
61,5*
23,
Source: Internet World Stat 2011-2012
in 2012 Russia became the largest internet audiencein EuropeBig
5
Low penetration – high upside!
Source: FOM (Public Ppinion Foundation) release, March 2012.Data for the countries other than Russia is provided by InternetWorldStats.com as of March 2012
6
The Russian advertising market continues to grow rapidly
№ Country Growth
1 U.S.A. 19 821
2 China 11 641
3 Brazil 5 397
4 Russia 4 026
5 Indonesia 3 911
6 Japan 3 015
7 Argentina 2 268
8 South Africa 2 067
9 Great Britain 1 883
10 South Korea 1 702
The global ad market will have grown
by U.S. $4 billion from 2011 – 2014
Source: ZenithOptimedia, September 2012
Countries contributing the most to the growth of the world ad market (bln. $)
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And here’s the result…
We’re now one of the top ten largest world ad markets
2011 Value 2014 Объем
1 U.S.A. 154 129 1 U.S.A. 173 950
2 Japan 49 949 2 Japan 52 964
3 China 32 299 3 China 43 940
4 Germany 25 571 4 Germany 26 828
5 Great Britain 19 204 5 Brazil 22 216
6 Brazil 16 819 6 Great Britain 21 088
7 France 13 788 7 France 14 216
8 Australia 12 767 8 Australia 13 770
9 Canada 10 974 9 Russia 12 593
10 South Korea 10 232 10 Canada 12 394
Source: ZenithOptimedia, Sptember 2012
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How the market will look
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Russian ad market segment dynamics
Журналы
ТВ
Наружная
Интернет
Mln
. ru
ble
s
Magazines
TV
Outdoor
Internet
Source: ZenithOptimedia, Sptember 2012
9
Global advertising shifts
TV48%
Radio4%
Cinema/Indoor2%
Outdoor12%
Press9%
Internet25%
TV33%
Radio6%
Cinema/Indoor0%
Outdoor20%
Press41%
Online0%
20142000
Source: ZenithOptimedia, June2012
10
Contextual advertising is the most popular type of online advertising and its market share continues to grow
2008 2009 2010 2011 2012
58% 60% 61% 63% 68%
42% 40% 39% 37% 32%
Russian online ad market structure dynamics
Contextual Banners
Source: АКАР, 2013
Russian ecommerce market
58 million monthly users online (~41% of all population)
15 million users seek information about goods
10 million users buy in e-shops
E-commerce B2C revenue – 8 billion dollars (2011), growing ~30% per year
Growth is due to expansion of regional shoppers.
*FOM 04.2012
12
E-commerce boosts online advertising
2012 2015$0
$5
$10
$15
$20
$25
$30
$35
$40
Chart Title
Bil
lio
ns
The e-commerce market in Russia will double between 2012 and 2015
Source: Morgan Stanley, 2013
Yandex Overview
14
#1 search in Russia
1 Source: LiveInternet.ru, February 2013. Search traffic reflects Russian users to Russian websites and includes desktop and mobile
Share of Searches1
61.9%60%
26.1%
8%
6%
21%
8.6%
1.3%
15
Bigger than any TV channel
17
Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-140
3,000
6,000
9,000
12,000
15,000
18,000
21,000
24,000
27,000
Bigger than any TV channel
18
One of 3 global search engines
19
20
Yandex PortalThe gateway to the Russian internet
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Yandex PortalThe gateway to the Russian internet
News
Comparison Shopping
Weather
Traffic Jams, Maps
Auto
MusicYandex.Money Analytics tool
JobsTV
listings
22
Servicesthat change life
23
24
The unique service supported by users themselves
Traffic
25
26
Taxi2,000 cabs online at any given seconds
300,000 downloads for iOS and Android
12 min to reach a client via traffic
Revenue share model (to be featured)
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Online Customers in Russia
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Search Engines as Tools for Making a Purchase
28Source: Euromonitor, Morgan Stanley
87% of online customers in Russia use search engines to make
a purchase decision
56% of them use Yandex
29
Cross-border shoppers 36%
29© GfK | August-September 2013
Online Shopping in Russia
In 2012, one in three online customers in Russia ordered a product or made a purchase abroad
Domestic shoppers 95%
25% 21
%
59%
67%
0%
17.5%
35.0%
52.5%
70.0%
3030
Reasons for Сross-Border Shopping
A large proportion of online shoppers in Russia are aware of cross-border shopping opportunities
62%
20%
17%
11%
8%
6%
4%
3%
3%
5%
© GfK | August-September 2013
3131© GfK | August-September
2013
Reasons Against Cross-Border Shopping
41.5%
18.0%
17.6%
15.8%
12.1%
11.5%
8.3%
7.4%
6.6%
3.4%
3.0%
1.4%
3232
Customer Concerns about Cross-Border Shopping
© GfK | August-September 2013
% of all Russia’s online shoppers
38.8%
32.4%
32.0%
27.4%
22.4%
21.0%
17.3%
8.3%
5.2%
5.1%
0.3%
0.2%
0.2%
Advertising Opportunities
34
Yandex – the biggestinternet ad platform
350.000 advertisers53% online ad market share
* Company Information, FY 2012** AKAR for 2012, adjusted for commissions
35
Yandex is Russia’s leading contextual advertiser
68%
28%
3% 2%
Yandex
Google Russia
Begun
Other
Source: eLama, 2013
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Yandex Search Results Page
1st Premium
Premium
Contextual Banner
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Yandex Search Results Page
1st Place
Guaranteed Placement
Dynamic impressions
on 2d and further
pages
39
PPC interface available in English
40
Bid management in English
41
Yandex.MarketGateway to Russian eCommerce - #1 Comparison Shopping Tool
42
MarketMore than 16.5 mln visitors monthly
More than 9,000 e-tailers
Mobile applications with barcode reader
Pay-per-click model
43
Wide rangeof Banner Ad
options available
44
Yandex.Metrica – web analytics tool available in English
45
RussianSearchMarketing.com