An introduction to Russian Digital Advertising and Yandex.

1. Preston Carey
Business Development Director

2. • Market Trends
• Yandex Overview
• Advertising Opportunities
Agenda
• Online Customers in Russia

3. Market Trends

4. 4
67,4
50,3
61,5*
23,
Source: Internet World Stat 2011-2012
in 2012 Russia became the largest internet audience
in EuropeBig

5. 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. 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. $)

7. 7
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

8. 8
How the market will look
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Mln.rubles
Russian ad market segment dynamics
Журналы
ТВ
Наружная
Интернет
Magazines
TV
Outdoor
Internet
Source: ZenithOptimedia, Sptember 2012

9. 9
Global advertising shifts
TV
48%
Radio
4%
Cinema/Indoor
2%
Outdoor
12%
Press
9%
Internet
25%
TV
33%
Radio
6%
Cinema/Indoor
0%
Outdoor
20%
Press
41%
Online
0%
20142000
Source: ZenithOptimedia, June2012

10. 10
Contextual advertising is the most popular type of online
advertising and its market share continues to grow
58% 60% 61% 63%
68%
42% 40% 39% 37%
32%
2008 2009 2010 2011 2012
Russian online ad market structure dynamics
Contextual Banners
Source: АКАР, 2013

11. 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. 12
E-commerce boosts online advertising
$0
$5
$10
$15
$20
$25
$30
$35
$40
2012 2015
Billions
The e-commerce market in Russia will double between 2012 and 2015
Source: Morgan Stanley, 2013

13. Yandex Overview

14. 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
Aug-06
Oct-06
Dec-06
Feb-07
Apr-07
Jun-07
Aug-07
Oct-07
Dec-07
Feb-08
Apr-08
Jun-08
Aug-08
Oct-08
Dec-08
Feb-09
Apr-09
Jun-09
Aug-09
Oct-09
Dec-09
Feb-10
Apr-10
Jun-10
Aug-10
Oct-10
Dec-10
Feb-11
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
Aug-12
Oct-12
Dec-12
Feb-13
61.9%
60%
26.1%
8%
6%
21%
8.6%
1.3%

15. 15
Bigger than any TV channel

16. 17
0
3,000
6,000
9,000
12,000
15,000
18,000
21,000
24,000
27,000
Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14
Bigger than any TV channel

17. 18
One of 3 global search engines

18. 19

19. 20
Yandex Portal
The gateway to the Russian internet

20. 21
News
Mail
Comparison
Shopping
Weather
Traffic
Jams, Map
s
Auto
Music
Yandex.Money Analytics tool
Jobs
TV
listings

21. 22
Services
that change life

22. 23

23. 24
The unique service supported
by users themselves
Traffic

24. 25

25. 26
Taxi
2,000 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)

26. 27
Online Customers
in Russia

27. 28
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

28. 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
%

29. 30
30
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

30. 31
31© 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%

31. 32
32
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%

32. Advertising Opportunities

33. 34
Yandex – the biggest
internet ad platform
350.000 advertisers
53% online ad market share
* Company Information, FY 2012
** AKAR for 2012, adjusted for commissions

34. 35
Yandex is Russia’s leading contextual
advertiser
68%
28%
3% 2%
Yandex
Google Russia
Begun
Other
Source: eLama, 2013

35. 37
Yandex Search Results Page
1st Premium
Premium
Contextual
Banner

36. 38
Yandex Search Results Page
1st Place
Guaranteed
Placement
Dynamic
impressions
on 2d
and further
pages

37. 39
PPC interface available in English

38. 40
Bid management in English

39. 41
Yandex.Market
Gateway to Russian eCommerce - #1 Comparison Shopping Tool

40. 42
Market
More than 16.5 mln visitors monthly
More than 9,000 e-tailers
Mobile applications with barcode reader
Pay-per-click model

41. 43
Wide range
of Banner Ad
options
available

42. 44
Yandex.Metrica – web analytics tool
available in English

43. 45
RussianSearchMarketing.com

44. Preston Carey
Business Development Director
+1 857 288 8762
preston.carey@yandex.ru
@prestoncarey
Thank you!