ADFOX Russian RTB Market in 2013 Overview en

Russian RTB market in 2013
March 2014

Russian RTB market in 2013, ©ADFOX, 2014 2
Table of Contents
Table of Contents..........................................................................................................................................2
Introduction ..................................................................................................................................................3
Global market................................................................................................................................................4
Events........................................................................................................................................................4
Consolidations...........................................................................................................................................5
Mobile RTB................................................................................................................................................6
Video RTB at a low start............................................................................................................................6
Programmatic direct .................................................................................................................................7
Russia: Numbers, Facts, Forecasts ..............................................................................................................10
What was happening (and did not happen)............................................................................................11
Sellers......................................................................................................................................................12
Buyers......................................................................................................................................................14
Agencies ..................................................................................................................................................15
Data.........................................................................................................................................................16
Forecasts .................................................................................................................................................17
Major events on the Russian RTB market in 2013......................................................................................19
Schedule. Russian RTB market ecosystem..................................................................................................21
Schedule. Market participants ....................................................................................................................22

Introduction
The third regular “Russian RTB market Overview” sums up the development of the programmatic
segment of online advertising in Russia in 2013. Last year, experts predicted that by the end of 2013 the
Russian RTB market would account for about 2-5% of the entire display advertising segment. According
to the Russian Association of Communication Agencies (RACA), display advertising market has added
12% compared to the figures of 2012 and reached 20.1 billion rubles. The total volume of the Internet
advertising market in 2013 is 71.7 billion rubles. This segment has traditionally shown the fastest growth
in comparison with others – 27%1
.
In the first half of 2013, the Russian RTB market was estimated at 0.4 billion rubles ($12-13 million). In
the second half of the year RTB sales twice exceeded the indicators of the first six months. By the end of
2013, the Russian RTB market has reached 1.2 billion rubles ($37.7 million2
), or 6% of the display
advertising market.
According to forecasts, in 2014 the share of RTB in the total volume of the display advertising can reach
10%. This fast growth is based also regarding the agreement between market giants Yandex and Google,
Western players appearing on the Russian market, and technological developments. Experts expect
introduction of the programmatic premium concept for exclusive data-using advertising sales, the
involvement of large platforms in auctions, and integration of Russian site’s inventory with Western
DSPs.
In preparing this review, we drew upon our own experience of using the ADFOX SSP product, foreign
studies and reviews, materials from the media, and the comments and opinions of players in the Russian
market. We would like to thank Internet advertising experts including Dmitry Belozub (Tinkoff Digital),
Oleg Nazarov-Bruni (Hubrus DSP), Mikhail Getmanov (Between Digital), Ilya Lagutin (Aidata.me),
Alexander Levshin, Evgueny Lyogky (Rutarget), Roman Nester (Segmento), Alexey Rayevsky (Lamoda)
and Artyom Rodichev (IPONWEB) who contributed greatly to this review.
1
http://www.akarussia.ru/knowledge/market_size/id4044
2
http://www.cbr.ru/statistics/print.aspx?file=credit_statistics/ex_rate_ind_13.htm

Global market
Internet advertising continues to be the fastest-growing segment of the global advertising market.
According to Nielsen, global advertising across the web, including mobile Internet and apps, grew by
32.4% in 2013. The global potential of Internet advertising remains huge – this segment still accounts for
only a 4.5% share of overall spending on ads.3
IAB research on ad segments in different countries in the first half of 2013 shows that display advertising
is increasing much faster than search ads. In the UK, compared to the first half of 2012, the display
advertising market expanded by 23% to reach £1.81 billion.4
In the U.S. search advertising grew by 7%
while display advertising was up by 9%.5
Programmatic buying and ad sales through RTB auctions were
among the primary drivers of this process.
RTB is now perceived as the main driver of development in the global digital advertising market. This is
not surprising as, according to IDC, RTB-generated revenues will grow by 51% annually to reach $20.8
billion by 2017.6
In 2013 alone, it rose 60% compared to 2012 and reached $4.5 billion. The U.S. takes a
large share of the global RTB market, but in the long term it is expected to decline from 74% in 2012 to
69% in 2017. eMarketer estimates that RTB spending reached $3.37 billion in 2013, which is only 19% of
the total display advertising market in U.S. By 2017, this figure will rise to 29%.7
RTB markets in Western European countries are not yet so impressive, but they continue to
demonstrate high growth rates.
Country RTB market, $ million
2012 2013 2014
USA 1,920 3,370 4,660
United Kingdom 157.9 283.6 409.1
Germany 86.5 157.2 220.2
France 57 113.5 150.5
© eMarketer
According to IDC, the RTB market in Japan stood at $382 million (10% of the display advertising market)
in 2013, China – $60 million, Australia – $74 million.
3
http://techcrunch.com/2014/01/27/nielsen-internet-advertising-grew-32-in-2013-but-its-still-only-4-5-of-spend-
vs-tv-at-57-6/
4
http://www.iabuk.net/about/press/archive/uk-digital-adspend-hits-record-6-month-high-of-3bn
5
http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-100913
6
http://www.pubmatic.com/reports-and-whitepapers.php
7
http://www.emarketer.com/Article/Advertisers-Continue-Rapid-Adoption-of-Programmatic-Buying/1010414

Events
In December 2012, Amazon launched an RTB ad exchange to sell advertising space on its own web-sites.
In May 2013, eBay followed with a similar product. In 2013 Avito, the largest Russian advertising
platform, offered advertisers a proprietary RTB product that makes it possible to place ads on the portal
using user data.
In March 2013, Facebook included Facebook Exchange ads in the inventory of its RTB-service. These ads
are displayed in user time lines. It was tested for a couple of months by major market players including
AdRoll, AppNexus, Brandscreen, Criteo, DataXu, MediaMath, Nanigans, Kenshoo, Optimal, RocketFuel,
Tellapart, TheTradeDesk, Triggit, TURN, Xaxis, and X+1. They all are unanimous in saying that the
effectiveness of Facebook Exchange is considerably higher than that of standard advertising campaigns,
including retargeting through Google AdExchange. Today, in collaboration with AdRoll, Facebook is on
its way to mobile RTB8
.
Last April, Foursquare partnered with TURN and now company allows the use of location data for
retargeting to other websites. Location data obtained from mobile devices is considered the most
accurate for targeting advertising. According to the head of one company working with user data, the
price usually ranges between $0.5 and $1.5 per thousand impressions, and when using data from
Foursquare the price reaches a peak.
In late 2013, a number of RTB companies announced that they would conduct IPOs. In September 2013,
Rocket Fuel has announced that company intends to place its shares on the stock exchange. On the first
day of NASDAQ trading, the stock rose 101%. Then Criteo, a company specializing in retargeting
advertising technologies, announced an IPO. Since posting in October, the share price has increased
more than twice. In early 2014, the SSP Rubicon Project filed an IPO application with the U.S. Securities
and Exchange Commission.
Consolidations
The U.S. and European inventory owners tend to control their own purchases without compromising
data security. Therefore, publishers prefer to create in-house solutions and organize networks. For
example, AOL has its own network, Ad.com, which, among other things, sells traffic of The Huffington
Post and TechCrunch. In 2013, Ad.com partnered with Facebook Exchange (FBX).
On June 19, 2013, the five largest media companies in Denmark joined forces as the Danish Publisher
Network to jointly sell advertising via the RTB-model in partnership with the Rubicon Project. Exposure
has reached 60% of the country’s population. The alliance offers data about its users and an advertising
inventory.
8
http://www.insidefacebook.com/2014/02/24/fbx-adroll-intros-a-new-way-to-retarget-across-devices/

In Australia, the online media Mi9, Yahoo!, Fairfax Media and News Limited have plans to create their
own advertising networks as a counter to Google. The media sites are looking to sell targeted
advertising themselves via the RTB-model in order to boost revenues. We are talking about $876 million
in the online advertising media segment.
Plans to launch a global ad exchange in 2013 were announced by international media group News Corp.9
Through a single broker, advertisers can buy traffic from more than 50 Internet and mobile platforms
owned by the holding company. These include the online versions of the Wall Street Journal, the Times
and the New York Post. The same Rubicon Project market solution was used instead of the company’s
own developments.
Mobile RTB
The growth trend in mobile RTB that became evident in 2013 will become the most powerful driver of
the entire market in 2014. Inspired by the RTB success in the «big» Internet marketers increase the
demand for programmatic buying of mobile audience. On the U.S. market, mobile RTB still takes only 4%
of all revenues from the mobile display advertising. But, according to IDC, mobile RTB incomes will
increase by a multiple of four in 201410
.
As every fast-growing market, mobile RTB is noteworthy for landmark mergers and acquisitions that
make it possible for traditional players to acquire the competence and technologies they need to
expand their inventory. Among such events in 2013, we note the MoPub acquisition by Twitter, the
launch of its own MMX RTB platform by Millennial Media in partnership with Appnexus, and the
Gradient X merger with Amobee.
Lack of access to personal data that may be used for deep targeting remains a constraint on mobile RTB
development. The problem is aggravated by the fact that, as opposed to personal computers, in mobile
devices it’s complicated to identify users by familiar to advertising technologies ways. Google's mobile
RTB, however, has an indisputable advantage – as the owner of Android, it has direct access to any
functionality including the identification and collection of personal data. Google may well use this
exclusive competitive advantage in future to strengthen its own position.
Video RTB at a low start
According to IAB research, online video advertising accounts for nearly 7% of ad spending across the
web.11
This segment of the advertising market increases by 20% annually. While in 2013 online video ad
spend was $3.6 billion, in 2014 it is expected to reach $4.6 billion, which is not surprising as video
consumption across the web grows proportionally — at 24% a year.
9
http://www.adweek.com/news/technology/news-corp-launches-global-private-ad-exchange-151970
10
http://www.pubmatic.com/reports-and-whitepapers.php
11
http://www.iab.net/media/file/IABInternetAdvertisingRevenueReportHY2013FINALdoc.pdf

According to Forrester's research "How Software Is Eating Video Ads And, Soon, TV", the programmatic
technology is confidently making its way to the online video ad market.12
Comparing the dynamic
growth of programmatic advertising and the continuous rise in online video consumption, experts
predict that the video ad market is on the brink of a revolution. Marketing experts will have to invent
cross-platform advertising campaigns instead of just placing TV video ads. In addition, development of
the programmatic direct concept will make it futile to procure huge video advertising space in an effort
to catch the user you need in front of the screen.
Programmatic direct
Marketing experts in the West have already tried and tested advertising space auctions via the RTB
model. Now they are testing another option of non-auction sales based on the programmatic services,
the programmatic direct. With programmatic direct, agencies and DSPs are able to use the RTB model
under a direct contract with publishers. This helps them to attract large-scale advertisers and premium
publishers that are not happy with standard RTB.
Programmatic direct is an ad sale model through the programmatic infrastructure at a fixed price
agreed between the buyer and the seller. This may include such programmatic advantages as the
use of different audience data and others.
When conducting transactions through programmatic direct, the advertiser, which has a direct
agreement with the SSP, is assigned the identifier of the deal – Deal ID. And if advertising tools, which
gets into this advertiser’s zone of interests, put up for auction, the system identifies it among other
customers, and gives it the victory without bidding. If the tools do not match its interests, an auction is
held among all other buyers.
Thus, a premium buyer can use all advantages of the programmatic buying, but to buy inventory for a
fixed price and without bidding. Today there are many other categories of programmatic buying in the
market, with a different type of inventory and participants of the transaction. IAB has prepared a table
describing different terms used in the sphere of programmatic sales.
12
http://www.forrester.com/How+Software+Is+Eating+Video+Ads+And+Soon+TV/fulltext/-/E-RES109201

© IAB13
Players of the Russian RTB market also call direct programmatic one of the main vectors of development
in 2014.
Alexander Levshin, independent expert: I think that 2014 will be marked by diffusion of
programmatic advertising products, that intuitively similar to traditional direct buying, but more
convenient, allowing to automate all processes of advertising campaign.
Mikhail Getmanov, Between Digital: 2013 showed a relatively low RTB efficiency in terms of large
platforms that are used to higher prices than those dominating in the RTB segment. This trend will
be corrected with the development of programmatic premium in Russia in 2014.
Boris Omelnitsky, ADFOX, IAB: The programmatic premium concept and direct sales through RTB
infrastructure (Deal ID) are supported by major market players and communication groups. They
invest in developing their own DSP-integrated Trading Desks and services to raise the efficiency of
advertising space sales, on the one hand, and to provide advertisers with closely focused
communications, on the other.
In Russia, programmatic direct is actively developed by, for example, GroupM with its Xaxis and
Quisma TDs, and Aegis with its Amnet platform. I am convinced that programmatic direct will lead
the direct procurement concept to a new technological level.
13
http://www.iab.net/media/file/IAB_Digital_Simplified_Programmatic_Sept_2013.pdf
Tipe of inventory Pricing Participation
Other Terms Used in
Market
Other Considerations
Automated
Guaranteed
Reserved Fixed One-One
Programmatic guaranteed
Programmatic premium
Programmatic direct
Programmatic reserved
Unreserved
Fixed Rate
Unreserved Fixed One-One
Prefered deals
Private access
First right of refusal
Invitation-Only
Auction
Unreserved Auction One-Few
Private marketplace
Private auction
Closed auction
Private access
Open Auction Unreserved Auction One-All
Real-tima bidding (RTB)
Open exchange
Open marketplace
• Prioritization in the ad
server
• Deal ID
• Data usage
• Transparency to buyer
• Price floors

Along the growth of traditional RTB, programmatic premium will stimulate the development of
programmatic buying and displace traditional direct buying of advertising. Magna Global is optimistic,
expecting that 83% of the display advertising inventory in the U.S. will be sold with programmatic
technology by 2017, including 52% of RTB sales and 31% through the Non-RTB programmatic14
.
© Magna Global
14
http://news.magnaglobal.com/magna-global/press-releases/magna-ipg-mediabrands-programmatic-
advertising-forecast.htm

Russia: Numbers, Facts, Forecasts
According to Public Opinion Foundation (FOM) research published in autumn 2013, 46% of the entire
Russian population, or 53.2 million users, go online on a daily basis. Over the year, this figure rose by
9%.15
According to Internet World Stats, in terms of Internet penetration Russia is in line with Italy,
outperforming China and Brazil with their 40% of daily Internet users but is considerably behind the UK,
Japan and the U.S.A., which have nearly an 80% level of active Internet users.
According to RACA, the entire Internet advertising market stood at 71.7 billion rubles in 2013. Internet
advertising has traditionally demonstrated the most impressive growth compared to other segments of
the advertising market (up 27% compared to 2012). Display advertising rose 12% (20.1 billion rubles),
and contextual advertising grew by 34% (51.6 billion rubles)16
.
In 2012, having just entered the market, RTB became the trend of the season. Everyone named Real-
time bidding a technology of the future and hurried to jump on train before it left the station. The
growing noise around RTB led to excessive expectations on the part of numerous players, both
advertisers and technology companies. While the market needed to comprehend the new bidding
reality, perform required integrations, develop new standards and collect data, advertisers were eager
to have an immediate effect. Despite an apparent disappointment, however, interest in RTB did not
subside.
Artyom Rodichev, IPONWEB: The Russian market demonstrated an enormous interest in
programmatic in 2013. I am convinced that the market shifted from pure discussions and humble
attempts to master RTB to explosive development. We launched a number of new projects with
Russian clients. We also realized that the Russian market is ready for standardization and
universal solutions, and we decided to develop BidSwitch, our product that facilitates collaboration
among RTB players, on the Russian market.
Experts expected that RTB would win about 2-5% of the Russian display advertising market by the end of
2013. In the first half of the year auction sales brought nearly 0.4 billion rubles ($12-13 million) in
revenues.17
In the second half of the year, RTB sales were double the results of the first six months. By
the end of 2013, the Russian RTB market was estimated at 1.2 billion rubles ($37.7 million18
), or 6% of
the display advertising market.
It's worth noting that this figure includes nothing but the sales of advertising inventory through Real-
time bidding. It does not include sales via the programmatic premium model or any sales other than
through an open auction for third-party DSPs.
Evgueny Lyogky, RuTarget: Indirect data make me believe that the RTB advertising market
exceeded 5% in 2013: 7-8% of the display advertising market seems a more credible figure.
15
http://fom.ru/SMI-i-internet/11288
16
http://www.akarussia.ru/knowledge/market_size/id4044
17
http://adfox.ru/ru/news_detail/17/
18
http://www.cbr.ru/statistics/print.aspx?file=credit_statistics/ex_rate_ind_13.htm

Nikita Pasynkov, ADFOX: In 2013 RTB the market in Russia has developed rapidly. New players
started their business and companies that started earlier have decided on their specializations.
More tools and opportunities for RTB-buying became available for advertisers. As a result, the
market has grown significantly, and in 2014 this growth will continue.
What was happening (and did not happen)
The noise around RTB subsided in 2013 as compared to 2012 while meaningful action gained
momentum. The market has of course lost some of the players that loudly announced themselves. They
were replaced with new technological companies and Western players.
Roman Nester, Segmento: Tinkoff Digital left the market just a year after the new business was
started. This was the most significant event of 2013. In this very short time TD, however, managed
to set the level of expectations that now every player has to deal with. I think we'll have to spend
all of 2014 explaining to advertisers that RTB is not a magic wand, but an advertising tool that
needs to be properly used.
Artyom Rodichev, IPONWEB: International players started showing interest in our market, and it's
very good. So far, they are mid-size companies. I expect that such giants as TURN and MediaMath
will come here too, which will be a strong impetus for development.
In 2012, Yandex announced the creation of its own RTB system. In 2013, partner companies (Yandex ad
network) were gradually joining the auctions. In late 2013, after Yandex acquired Kinopoisk, this popular
platform's traffic was also put on sale through the Yandex RTB system. In addition, Yandex used its own
Kritpa technology to automate audience research and classification.19
In early 2014, Yandex announced the start of collaboration with Google in the field of advertising. The
Yandex display advertising service AWAPS will be connected to Google's RTB system (DoubleClick
AdExchange), and Google's service DoubleClick Bid Manager will be connected to Yandex's RTB system.20
Roman Nester, Segmento: In 2013, Yandex joined the RTB system, and in February 2014 Yandex
and Google announced collaboration between the companies. This alliance opens up a new stage
in the development of the market, which actually will be free from any closed inventory. In the first
place, advertisers will win as they will be able to save considerably on purchasing advertising
space.
At the same time, contrary to expectations, other Russian Internet behemoths are not hurrying to enter
the programmatic buying market. Experts believe that Russian social networks will adopt the successful
experience of Facebook Exchange and take an active part in developing the market.
19
http://company.yandex.ru/technologies/crypta/
20
http://company.yandex.ru/press_releases/2014/0226/index.xml

Alexey Rayevsky, Lamoda: We're eagerly waiting for Mail.ru and Vk.com to join the auction, but
they have not done so yet.
Sellers
More and more major Russian Internet projects enter the RTB market, offering their inventory through
various advertising exchanges or experiment with creating their own technologies. The online dating
service Wamba, RBC holding, the largest Russian ads portal Avito and many others began to exhibit their
traffic on the auction last year.
Avito, for example, offers all Russian advertisers to buy ad impressions on the portal using Google
DoubleClick AdExchange and Yandex RTB. Advertisers may sign a direct agreement on the purchase of a
certain volume of traffic using data through programmatic direct or participate in the open auction.
Among major clients of Avito currently dominated retargeting companies, but there are also some of
the major brands, including BMW Group, Svyaznoy, P&G.
Experts believe that in future their RTB traffic will be concentrated in the hands of several large SSP
systems. Portal owners will test the functionality of every such system and choose the one that
generates maximum revenues from the sale of residual traffic.
Oleg Nazarov-Bruni, Hubrus DSP: Over the past six months only our company connected some
new SSP: Wamba, PayHit, Adflow, RBC, Epam, Smaclick, C8, Republer, they had started to
popularize RTB purchases from publishers. Publishers already massively try to send their traffic
and experiment with it varying rates. The average of purchasing can reach 15% of the total
volume. The share of Yandex and Google really started to decline due to the emergence of new
local players. Also in a new year a major Western SSP (PubMatic, Rubicon, Сasale, AOL, spotX)
began to claim the Russian demand. They have a lot of unclaimed Russian inventory. I think that
by the end of 2014 it will be the consolidation of traffic: sites will leave small SSP and move to the
big ones – those that will bring more money.
On the Russian market SSP services now provide:
o ADFOX
o AdRiver
o Begun
o Between Digital
o DoubleClick
o OpenX
o PayHit
o RBC
o Republer
o Yandex

The traffic purchased via the RTB model demonstrated steady growth over the year. Moreover, the
growth has been developed not only by the increase in number of provided inventory, but also by
increasing the percentage of sell-out.
% of purchases in relation to the traffic put on sale (according to ADFOX SSP)
Boris Omelnitsky, ADFOX: Over 2013 we saw continuous growth in the percentage of traffic
purchased via the RTB model while the number of ad impressions put on sale grew slower. This
means that market growth is based, first of all, on the work of the auction mechanism and the
willingness by advertisers to buy a more expensive targeted audience.
240x400 remains the most demanded ad type, its share in the total volume of RTB-sales has risen up to
80%. The next most popular is the ad type is 728x90, other formats are almost ousted. The most popular
format 240x400 demonstrates the highest CPM.

The share of different formats of banners in the total volume of redemption through RTB (according to
ADFOX SSP)
Buyers
Russian DSPs that appeared in 2012-2013 continue active operations on the market, such as Hubrus,
Soloway, Begun, Rutarget, Aitarget, Targetix. Some players are expanding their activity and developing
new businesses. Kavanga, which used to buy traffic from third-party SSPs, launched its own Sell-Side
Platform, Republer, in 2013. Between Digital, a leading SSP on the Russian market, announced the
creation of its own DSP Intency.
Artyom Rodichev, IPONWEB: I think that an important feature of Russian players is their strong
technological commitment. Everyone is striving to set up its own bidder, SSP or data platform. In
absolute figures, our market is small but it has dozens of players already. It's still too early to say
in what way they will develop further. I would bet on consolidation in the next 1 to 2 years.
According to experts, in the future, companies will move from a tendency to expand its range of services
on the RTB market to specialization in its segment and cooperation with other players.
Ilya Lagutin, Aidata.me: I think that in 2014 we'll see fewer companies declaring that they deal
with the entire stack of technologies while there will be more partnerships and product
integrations. As early as the beginning of the year, we saw that market behemoths such as Google
and Yandex started integrating their RTB systems.
The DSP market in Russia is represented by several major local players, western platforms and a large
number of small buyers. Western players come to the market primarily through major media agencies.

DSP operating on the Russian market:
o AdSniper
o Aitarget
o Appnexus
o Begun
o Crimtan
o Criteo
o Doubleclick
o Getintent
o Hubrus
o Intency
o Kavanga
o Mail.ru
o MediaMath
o Mythings
o Rutarget
o Segmento
o Sociomantic
o Soloway
o Targetix
o TURN
o VI
o Yandex
Large advertisers are on the path towards creating their own technologies for purchasing traffic through
auction. The platform Data Mind was created from such in-house technology, which was originally
unveiled as an independent DSP, but a year later became a division of TCS Bank. Major online retailers
such as Lamoda are independently procuring goods. You may say that a new In-house DSP has emerged,
which continues to work and develop.
Alexey Rayevsky, Lamoda: We were expanding the share of the advertising space bought through
our own RTB system over the year. Now we continue testing new suppliers of RTB inventory.
Online retailers, including Lamoda, also develop their own technologies and accumulate
algorithmic knowledge of advertising campaigns.
Indeed, good knowledge of their audiences makes online stores sound players on the RTB market, which
suffers from the lack of data suppliers.
Agencies
Tenders for Internet advertising held by major advertisers in 2013 incorporated RTB-related conditions.
Retargeting as a programmatic buying product has become a common condition of tender documents

while requirements like "Tender Participant shall have an experience in placing Internet advertising
based on Real-Time Bidding (RTB) technology" are included in the requirements of such advertisers as
VTB and Rostelecom. While advertisers are prepared to invest a considerable part of their ad budgets in
programmatic buying, agencies have to invent new methods of business.
Evgueny Lyogky, RuTarget: We estimate that in the next couple of years, the majority of leading
agencies will set up their own Trading Desks to be able to manage advertising space for numerous
channels. The "request - media plan - reservation - confirmation - placement" scheme will become
too cumbersome. Users are mobile, they deal with growing information flows every day. To attract
their attention, agencies will have to make fast and very specific offers.
Trading Desk is a centralized platform to buy advertising space via various advertising models.
Trading Desk allows advertisers to automate advertising space purchasing as well as the management of
advertising campaigns. The platform integrates with several others and makes it possible to use the one
that is most suitable to ensure the effectiveness of a specific advertising campaign. Media agencies
often set up their own TDs focused on the requirements of their clients. Today in Russia there are only a
few Trading Desks, but several Western players entered the market with their TD: Xaxis and Quisma
from GroupM, Amnet from Aegis.
Agency Trading Desks in Russian market:
o Accuen
o Amnet
o Auditorius
o Quisma
o Vivaki AOD
o Xaxis
Data
In Russia, as throughout the world, data is collated by major Internet services and social networks, such
as Yandex, Google, Rambler, Mail.ru, VK and Facebook. Other players have extremely limited access to
this data, as user profile data is used by the companies themselves, which last year entered the RTB
market.
Online retailers also have their own data and can use it to target and segment their audiences. Nearly all
major e-commerce players have already entered the RTB market in this way or another.
Alexey Rayevsky, Lamoda: Russia still lacks a clear mechanism for obtaining third-party data,
which constrains the growth of RTB share in image (non-selling) ads. Most RTB sales come from
online retailers targeting on the basis of their own first-party data.

Other players use the services of existing suppliers to get third-party data. These suppliers can be
divided into two groups: companies that possess data and provide it for targeting advertising (Data
Suppliers) and companies that aggregate the data of suppliers to generate aggregate profiles based on
several sources (DMP).
Among the companies that provide data to the solution for advertising targeting:
Data Suppliers:
o AddThis
o Adex
o Liveinternet
o Pluso
o Proximic
o uLogix
o Visual DNA
DMP:
o Aidata.me
o Auditorius
o Lotame
o VI
Forecasts
In 2014, the Russian RTB market will develop along several lines:
o The programmatic direct technology will develop to provide for premium sales of advertising
inventory via the programmatic infrastructure.
o Brand safety technologies will develop to protect advertisers from the appearance of their
banners in unwanted websites.
o More and more large platforms will use auctions to sell their advertising inventory.
o The data market will develop, and new suppliers will emerge.
o Russian traffic will integrate with Western DSPs.
o The market will see more and more professionals able to deal with data and new technologies.
According to forecasts, in 2014 the RTB share may reach 10% of the entire Russian display advertising
market.
Oleg Nazarov-Bruni, Hubrus DSP: I hope that by the end of 2014 the market will grow at least
twofold. Major clients that started increasing the levels of expertise and analytics on their side will
change the situation. They start experimenting with DSPs directly, and will demand results from
agencies over time. The development will accelerate when Western platforms come to the market
in 2014 – they will bring their own clients that have a successful buying experience with them.

Alexey Rayevsky, Lamoda: RTB share will exceed 10% of the display advertising market. Further
growth will be based on the data market development and new large platforms joining the
bidding.

Major events on the Russian RTB market in 2013
January
The operator of selective advertising Soloway gave its 2012 results. The company's turnover reached
500 million rubles. One of the most important events of the past year in Soloway was the rapid
development of RTB technology in Russia. By connecting the RTB protocol to Google Double Click Ad
Exchange and ADFOX SSP, Soloway allows its advertisers to place banner ads in the Google advertising
network, on the sites of the holding SUP Media and the media agency +Sol. At the same time, the
Soloway behavioral targeting can be applied to all of the connected platforms21
.
March
The Internet company Tinkoff Digital launched its mobile platform MadNet, built on RTB technology.
According to company heads, it has entered into agreements with Google DoubleClick Ad Exchange,
Smaato, Mopub, Mobclix and Hunt Mobile Ads22
.
The fund Russian Ventures and AIData have launched DMP Loger. According to the creators, the Loger
platform is independent, and does not belong to one of the Top 10 media holdings, which does not
impose limits on the system in terms of the selection of the data provider23
.
April
The fund iTech Capital invested $3.5 million in the Garpun advertising platform. According to the press
service, the funds will be used to speed up the development process, and also to automate additional
online marketing channels, including RTB24
.
The advertising network Kavanga launched a new company Republer. The Sell Side Platform (SSP) will
allow site owners to sell traffic at auctions in real time. Dmitry Glavatsky was appointed CEO of
Republer. The platform is currently being tested25
.
The independent advertising DSP-platform by Hubrus has been launched commercially. Iponweb is the
support partner and supplier of technology.26
21
http://internet.cnews.ru/news/line/index.shtml?2013/01/15/515462
22
http://internet.cnews.ru/news/line/index.shtml?2013/03/11/521982
23
http://www.towave.ru/news/fond-russian-ventures-i-aidata-zapustili-proekt-loger.html
24
http://www.digit.ru/internet/20130410/400530137.html
25
http://www.sostav.ru/publication/kavanga-sozdala-rtb-kompaniyu-republer-2301.html
26
http://adindex.ru/news/digital/2013/04/3/98042.phtml

May
The venture fund Prostor Capital invested in the company CPAExchange - an automated service for
placing online adverts based on the CPA (cost per action) model. The fund now owns 25% of the
company. The size of the investment was not revealed. The funds will be used to complete the
development of the RTB-systems in order to increase conversions and also to buy traffic27
.
June
The international advertising group Aegis Media launched an advert purchasing system in Russia, which
is displayed to users in real time. Amnet (belonging to Aegis) has developed an RTB-platform, it is used
by advertisers in the U.S., the UK, Germany, France and other countries28
.
August
Segmento, which uses RuTarget RTB technology, entered the Russian media marketing and advertising
market. Segmento provide high-tech advertising services to agencies and end clients29
.
December
Segmento launched the Brand Safety Shield service based on RuTarget's web-crawler technology to be
able to guarantee that its clients' ads won't appear on unwarranted sites30
.
Between Digital launched DSP Intency.
P.S. February 2014
Yandex and Google agreed to cooperate in the field of advertising. The Yandex display advertising
service AWAPS will be connected to Google's RTB system (DoubleClick AdExchange), and Google's
DoubleClick Bid Manager will be connected to Yandex's RTB system31
.
27
http://www.adindex.ru/news/digital/2013/05/30/99393.phtml
28
http://www.vedomosti.ru/tech/news/12635631/potorguyutsya_za_polzovatelya
29
http://www.searchengines.ru/press-releases/archives/segmento.html
30
http://www.searchengines.ru/seoblog/segmento_zapustila.html
31
http://company.yandex.ru/press_releases/2014/0226/index.xml

Schedule. Russian RTB market ecosystem

Schedule. Market participants
Profile: Data Suppliers
AddThis is the largest sharing and social data platform. The company personalizes the web with powerful, easy-to-
use social engagement tools, APIs and services. AddThis social plugins and analytics are used by over 14 million
sites worldwide.
http://www.addthis.com/
ADEx – a platform for providing target data. Since 2009 engages in the collection and provision of non-personal
data about users activity for promotional use.
http://adex.pro/
Profile: SSP, AdServer
ADFOX has operated in the market since 2005 and provides independent technologies for management of
advertising in Internet, mobile, application, and online video. In November 2012, ADFOX entered the RTB market
and launched ADFOX SSP - its own platform for commercial use to optimize advertising revenue on the websites.
The ADFOX SSP has undergone technical integration with all of the leading DSPs on the market.
http://adfox.ru/
Profile: AdServer
The Internet advertising management system AdRiver began working in March 2001 and is now one of the leaders
in the Russia technological solutions market in the field of online advertising. AdRiver software currently provides
more than 2 billion ad impressions per day. AdRiver belongs to the Internest group of companies.
http://www.adriver.ru/

Profile: DSP
AdSniper is a system to automatically purchase advertising with price correction in real time in accordance with
the campaign results.
http://adsniper.ru/
Profile: DMP
Aidata.me is a data management platform. It operates in the markets of Russia, CIS, Brazil and Southeast Asia. The
company is engaged in segmenting and transfer of socio-demographic and behavioral data. Various advertising
platforms using data Aidata.me provide 100 million targeted impressions per day.
http://aidata.me/
Профиль: DSP
AppNexus is a New York City-based company that provides a platform specializing in real-time online advertising.
As of 2013, AppNexus servers process 16 billion ad buys per day; it handled an estimated $700 million in ad
spending in 2012, giving it the biggest reach on the open web after Google.
http://www.appnexus.com/
Profile: Trading Desks, DMP
The project was launched in November 2012. Auditorius works like TradingDesk in the Russian RTB ecosystem.
http://www.auditorius.ru/

Profile: DSP
Begjun is the first Russian performance based contextual advertising service with auction pricing. It enables a “one
stop shop” advertising campaign to be held on partner sites in all the major search engines on the Russian
Internet, as well as in external advertising services. The company has been operating on the market since 2002,
and in 2012 it launched its own RTB-service for its customers.
http://www.begun.ru/
Profile: SSP
Between Digital is an integrated platform for managing website advertising that works with RTB technology. The
commercial launch was announced in December 2012. Today Between Digital is integrated with AdRiver, Begun,
CPA Exchange, Google, and Retargeter. In December 2013, the company launched its own DSP Intency.
http://betweendigital.ru/
Profile: DSP
Crimtan is a behavioral advertising network, built on the basis of its Real-time Audience & Media Platform. The
company provides advertisers with advanced internet marketing features, including profiling, segmentation and
targeting of the Internet audience, optimization, delivery and campaign reports through a vast network of sites,
networks and traffic aggregators.
http://crimtan.com/ru/
Profile: DSP
Criteo is a global leader in personalized retargeting. The company was founded in 2005 in Paris and now works
with more than 4000 customers and 600 publishers worldwide. Criteo has business partners in 30 countries in
Europe, Asia, the U.S. and has opened representative offices in 15 of them. The company’s largest clients include
the Internet store Ozon, Sapato.ru, and Quelle.
http://www.criteo.com/

Profile: RTB Stack
The company was founded in 1998, and now is a leading web corporation in the major global markets. The
company has been developing RTB since 2009, and has so far invested more than a billion dollars in the
development and promotion of this technology. Google has operated in Russia since 2005, and first offered its
RTB-products to its customers in 2012.
www.google.ru
Profile: DSP
Russian technology for optimization of advertising budgets. In addition to providing tools to purchase advertising
directly, targeted according to the actions and behavior of the audience in real time, customers are given access to
the Russian traffic exchange. The first independent service using the company's technology is Retargeter.
http://hubrus.com/
Profile: DSP
Kavanga is one of the largest Russian Internet advertising networks that operates on its own process platform. The
company was founded in 2008. Today it integrates more than 1000 high-quality thematic sites into a single
advertising space. In Russia it gets 27 million visitors per month aged 12-54 years.
http://kavanga.ru/
LiveInternet is a portal that has since 2003 provided website statistics services and online diaries, and also a variety
of other services that serve a wide range of user needs. The leading statistical service LiveInternet provides tools to
collate, process and then analyze website visitor data.
http://www.liveinternet.ru/

Profile: DMP
Lotame empowers publishers, agencies, and brands to unlock the full value of their audience data with data
management platform Crowd Control. Clients leverage Crowd Control to collect unstructured audience data,
irrespective of the source, and convert that audience data into insights and analytics, which allows them to make
informed decisions and increase ROI of their data assets.
http://lotame.com/
Profile: DSP
Headquartered in New York, MediaMath was founded in 2007 and is a leader in the demand side platform
category (Forrester Wave, Q4 2011). The company buys billions of highly targeted ads per month on behalf of
dozens of agencies, including all the major agency holding companies. Major brands include American Express,
Kellogg’s, Prudential and Kayak. MediaMath is a global company with additional offices in London, Boston,
Chicago, Los Angeles and San Francisco.
http://www.mediamath.com
Profile: Retargeting
Founded in 2005, myThings is a global leader in customized programmatic ad solutions. Turning big data into
incremental demand, the company personalizes over 5 billion impressions a month for top advertisers in 30
markets including Adidas, Walmart, ToysRUs, Littlewoods, Very.co.uk, Zalando, Orange, Best Buy, and Microsoft.
http://www.mythings.com/
Profile: SSP
OpenX is a global leader in digital and mobile advertising technology. OpenX’s vision is to unleash the full economic
potential of digital media companies. OpenX solutions provide a unique Software as a Service platform by
combining ad serving, an ad exchange, which includes Supply Side Platform technology, and content valuation.
http://openx.com/

Pluso is a sharing service in social networks and blogs. 55 thousand sites have installed the Pluso plugin. Pluso used
the widely known link exchange service AddThis as its protocol. The company provides data to Russian DMPs.
Profile: SSP
Affiliate program which offers the sale of advertising tools for web sites, including the RTB auction. Connected to
several Russian DSPs.
http://pay-hit.com/
Profile: Data Supplier
Proximic provides advertising networks, agencies, DSPs, and publisher networks with the information needed to
drive premium ad placements by combining non-linguistic contextual profiling technologies, resulting in better
targeted ads and filtering content across highly granular topical categories.
http://www.proximic.com/
Profile: Retargeting, Trading Desks
Quisma offers full-service, innovative technology and profound expertise covering the entire spectrum of digital
marketing. The agency was founded in 2001 and became a member of GroupM (Mindshare, Mediacom, MEC,
Maxus) in 2007. Headquartered in Munich the agency has other 12 offices in 10 countries. Quisma works in Russia
since 2012.
http://www.quisma.com/

Profile: SSP
Republer is a part of Kavanga Group as well it is a stand-alone project that is span oﬀ from ex advertising network
Kavanga. Republer SSP — one of the ﬁrst full-service Sell-Side Platform in Russia. Republer SSP technology
platform was developed inhouse. Our tech-savvy team boasts a great experience of working with publishers’
business inherited from Kavanga.
http://republer.ru/
Profile: DSP
RuTarget is a Russian developer of RTB technologies, creating professional solutions to order. Segmento uses
RuTarget RTB technology. Segmento provides complex high-tech advertising services for agencies and advertisers.
http://www.rutarget.ru/
Profile: DSP
Founded in Berlin in 2009, the company works with Internet marketing, network analysis and scalable computing.
As a leading supplier of bidding solutions for advertising companies worldwide, the company helps its customers
gradually increase sales, using what are for the brand effective and secure marketing channels to obtain the
desired result, which are very clear to the client.
www.sociomantic.com
Profile: DSP, Retargeting
The selective advertisement operator Soloway has operated on the market since 2004 and uses all of the most
advanced developments in the field of Internet advertising. Soloway collates and analyzes information about
Internet users: about where and how they access the Internet, search engine terms, and also website and page
visitor history. Adverts are shown in the extensive media space, which includes hundreds of thematic sites.
http://www.soloway.ru/

Profile: DSP
Targetix specializes in the development of Internet advertising solutions. In 2009 the company launched its own
media network Targetix Display Network, which now integrates more than 5000 Russian language portals.
http://targetix.net/
Profile: DSP
The largest independent company in the advertising technology sector and the recognized leader in platform-
based mobile, video, display, and Facebook advertising. An early pioneer of data-driven advertising, having
delivered one of the industry’s first programmatic ad impressions in June 2009. A technology-first company,
committed to making big data infrastructure available to customers on five continents on a self-service,
subscription basis.
http://www.turn.com/
uLogix operates the data on more than 70 million usersrs monthly, processing an average of 15 interests of each
user. The company declares about the coverage of Runet at the level of 80%. Also uLogix offers the technology of
mining of retargeting.
http://ulogix.ru/
Profile: DSP, DMP
Vi is the largest media advertising market operator in Russia and Eastern Europe providing professional media
advertising outsourcing services, including media-selling, analytics, law and IT-support. Company consists of
media-selling companies ranked as leaders in basic segments of the Russian media advertising market Vi is
conducting business in Russia, Belarus and Kazakhstan.
http://www.vi.ru/

VisualDNA is a fast growing startup with offices in Moscow and London. It uses its own patented technology to
collate data about Internet users. To create the user portrait it uses visual tests.
http://data.visualdna.ru/
Profile: Trading Desks
VivaKi was established in 2008 by Publicis Groupe, the world’s third largest marketing communications
organization, to accelerate the digital transformation and expertise of the Groupe and its agencies. Today VivaKi is
a global leader in digital advertising solutions, working with the world’s leading organizations to help them
navigate the evolving and chaotic consumer landscape.
http://www.vivaki.ru/
Profile: Trading Desks
Xaxis is the world’s largest audience buying company. Through its proprietary platform, Xaxis offers advertisers a
single, comprehensive resource from which to reach and engage with global audiences across the universe of
digital media. Xaxis does this for its GroupM agency partners, Maxus, MEC, MediaCom, and Mindshare. In October
2012 Xaxis opened its office in Moscow as part of GroupM Russia.
http://www.xaxis.com/
Profile: RTB Stack
Yandex is the largest Russia Internet company, with its core business being search engine development. The
company has a search engine of the same name and the Internet portal yandex.ru. Founded in 1997, Yandex
announced the launch of its RTB-platform in March 2012. Several DSP systems have now been connected to the
Yandex RTB-system, including Direct, which belongs to Yandex and a media advertising system.
http://www.yandex.ru/

Russian RTB market in 2013
Office 508, 6 B Artioukhinoi Street, Moscow, Russia
Tel +7 (495) 661 76 77
Email: info@adfox.ru
www.adfox.ru
Authors:
Boris Omelnitsky bo@adfox.ru
Nikita Pasynkov nikita@adfox.ru
Vera Khiteeva vera@adfox.ru

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