1) Russia has one of the largest internet audiences in Europe, with over 82 million users in 2013, though internet penetration is still only around 61% overall. 2) Yandex is the dominant search engine in Russia, accounting for over 60% of searches. It is also the leader in the online advertising market. 3) The travel sector in Russia has high growth potential, as internet usage expands to more regions and age groups. Queries related to travel make up around 1-2% of total searches, with hotels being a particularly popular topic.

1. Tatiana Kalinina, Business Development Director,
International Dev

2. Russia’s internet
audience

3. Russian is the 4th most spoken
language globally. 250–300 millions
speakers
Mandari Spanish English Russian
Confucius Miguel de Cervantes William Shakespeare Leo Tolstoy
n
Source: SIL Internationaal (2002), George Weber (1997), Euromonitor (August 2010), Rosstat (2010), Company data, Morgan, Stanley Research.

4. Top 10 Internet Countries
in Europe in 2013, million
Russia 82.9
0 10 20 30 40 50 60 70 80
Germany
France
United Kingdom
Turkey
Italy
Spain
Poland
Netherlands
Ukraine
Source: eMarketer, Internetlivestats July 2014
60.3
50.1
49.7
35.8
35.4
30.6
25.7
16.8
14.3
Big
In 2013 Russia became the
largest internet audience in
Europe

5. Low penetration – high upside (%) !
Source: eMarketer, Gemius, Information Technologies and Communications Foundation, 2013

6. Only 61% of the Russian
population is online
Russia, age 18+, %
Source: FOM, June 2014

7. Internet penetration in Russia by age
97% 99%
95%
Source: TNS, February 2013
89%
72%
40%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
12-17 18-24 25-34 35-44 45-54 55-64 Age

8. Russia’s advertising
market

9. Russia’s advertising market
grows rapidly
The largest contributors
to the growth of the world’s ad
market (bn., $)
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
Source: ZenithOptimedia, June 2014.
From 2013 to 2016,
Russia’s ad market is
expected to grow by
$2.35
billion

10. How will Russia’s ad market look?
Volume of ad market’s segments in dynamics
200
180
160
140
120
100
80
60
40
20
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Billion rubles
TV
Internet
Outdoor
Magazines
Source: ZenithOptimedia, June 2013.

11. 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.

12. Russian e-commerce market
monthly users online
82.9
million
58%
of all population
30.6
million
users buy in e-shops
Growth is due to expansion of regional shoppers.
Source: eMarketer, July 2014

13. E-commerce boost!
The e-commerce market in Russia will double between 2011
and 2015
Source: eMarketer, July 2014.

14. Digital Landscape –
The Players

15. Yandex is the first search engine
in Russia
Source: LiveInternet.ru, July 2014
29.7
2.5
7.3
% 60.5

16. Don’t Forget about CIS!
Ukraine
32.4%
Source: LiveInternet.ru, July, 2014
Belarus
44.2%
Kazakhstan
24.5%

17. Bigger than any TV channel

18. Bigger than any TV channel
27,000
24,000
21,000
18,000
15,000
12,000
9,000
6,000
3,000
0
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.

19. 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

20. Goals of an advertising campaign
can be different
Goal 1
директ
Yandex.Direct
Generate Sales
Yandex.Market
Sales Volume Increase via Comparison Shopping
Yandex.Display
Brand Awareness
Building Coverage
Goal 2
маркет
Goal 3

21. 1. Content Network on top of Search!

22. Two types of Content sites:
Search sites
(search intent)
Content sites
(thematic targeting)

23. 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

24. Wordstat - Keyword Suggestion Tool
Real Searches on Yandex

25. 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

26. 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

27. Yandex.Display
Vision
Goal 3

28. 10+ Thematic Portal Projects – Leaders in
their Theme
News
#1-3
Mail
#2
Comparison
Shopping #1
Auto
#2
Music
Yandex.Money
#1
Metrika.Analytics
tool
Jobs
Weather #1
TV listings
Traffic Jams,
Maps #1

29. Display Targeting Types
• Soc-Dem Targeting (age, gender,
income)
Available
on RTB
• Targeting by Interests
• Search Retargeting
• Behavioral Retargeting incl.
Audience Extension to Content
Across 10+ Portal Projects & Content
49 M Unique Users monthly

30. Yandex.Schedules
Travel!
______________________
________________
CPM: 4,60/4 GBP
Part of RTB network
Yandex.Weather
Dream of warm continents!
728х90
______________________
________________
CPM: 4 GBP
Part of RTB network

31. Display Traits in «Hotel Booking» segment
Average Page Depth
+ 0,4
Данные Метрики в категории «Услуги отелей/гостиниц»
за период Q1 2013 - Q1 2014
Avg Bounce Rate
- 7 %
18.0%
24.9%
Баннеры Яндекса Все рекламные системы
3.2
2.8
Баннеры Яндекса Все рекламные системы

32. Display Traits in «Hotel Booking» segment
Avg CTR for Display placements on Yandex
Данные AdOffice и Баян-2 и за период Q1 2013 - Q1 2014
0.14%
0.28%
0,39%
2012 2013 Q1 2014

33. Display Traits in «Hotel Booking» segment
Данные AdOffice и Баян-2 и за период Q1 2013 - Q1 2014
Avg CPC (RUR) of Display Placements on Yandex
168.17
118.37
9.83
2012 2013 Q1 2014

34. No of Display Placements is growing
Данные TNS AdFact Q1 2013 – Q1 2014
900
800
700
600
500
400
300
200
100
0
Q1 Q2 Q3 Q4
2013 2014
22,3%

35. No of Display Spaces (Publishers) is growing
Данные TNS AdFact Q1 2013 – Q1 2014
50
45
40
35
30
25
20
15
10
5
0
Q1 Q2 Q3 Q4
2013 2014
40,6%

36. No of Brands with regular Display Activity is growing
(7 days continuous or more)
При условии, что ежемесячно размещения проходили не менее 7 дней
Данные TNS AdFact Q1 2013 – Q1 2014
30
25
20
15
10
5
0
Q1 Q2 Q3 Q4
2013 2014
8,3%

37. Search Banner
Keyword 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

38. Travel Vertical Overview in
 Hotel Booking
 Flights
Search

39. 39
User Interest in Category
Queries 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
4%
Queries on hotel booking made
approximately 30% of total
amount queries.
1.8%
1.6%
1.4%
1.2%
1.0%
0.8%
0.6%
0.4%
0.2%
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%
30%
16%
50%
Hotels
Air tickets
Package tours
Other

40. 40
User Interest in Category: Hotels
Impressions May’2012 – Apr’2013 May’2013 – Apr’2014
Generic queries
on hotels
Yandex, Apr 2014
wordstat.yandex.ru
128,247,4
08
+12%
144,092,2
26
1 2
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
May Jun Jul Aug Sep Oct Nov Dec 2013 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 Feb Mar Apr

41. 41
User Interest in Category: Flights
46,524,399
+25%
58,221,942
1 2
wordstat.yandex.ru
Geo: Russia+CIS
Aug’2012 –Jul’2013 Aug’2013 – Jul’2014
Generic queries
on air tickets
Im7p,r0e0s0si,o0n0s0
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0

42. 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.
58% 56% 56% 57% 57% 56% 53% 50% 50% 49% 48% 49%
42% 44% 44% 43% 43% 44% 47% 50% 50% 51% 52% 51%
The total share of Moscow and St. Petersburg has dropped from
58% to 47-49%. Flights are a little more Capital focused than
Hotels.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Autumn
2011
Winter 2011-
2012
Spring 2012 Summer
2012
Autumn
2012
Winter 2012-
2013
Spring 2013 Summer
2013
Autumn
2013
Winter 2013-
2014
Spring 2014 Summer
2014
Russia (except Moscow and St. Petersburg) Moscow and St. Petersburg

43. 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. 44
Number of Brand queries is growing
35000000
30000000
25000000
20000000
15000000
10000000
5000000
0
+14%
Generic queries
Brand queries
2012 2013 2014 2015

45. 45
Top Search Queries regarding Hotels
Отель Inlaid Queries Гостиницы Inlaid
Queries
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

46. 46
Stars - Segment dynamics
Wordstat
May’2012 – Apr’2013
May’2013 – Apr’2014
region: Russia ; Apr 2014.
Impressions
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
Variation of user interest
Impressions
0
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%
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
Hotels 5* Hotels 4* Hotels 3* Hotels 2*

47. 47
Seasonal interest growth structure
Generic queries on the travel
to the country
Queries on air tickets
to the country
25000
20000
15000
10000
5000
0
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)

48. Top Brands

49. 49
Hotel Booking Services – Most Searched brands
Yandex, Apr 2014
wordstat.yandex.ru
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
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. 50
Flight Aggregator Brand dynamics
250,000
200,000
150,000
100,000
50,000
0
Aviasales
Ozon.travel
Onetwotrip
Davs
Svyaznoy.travel
Aviacassa
Bravoavia
Nabortu
Jizo
wordstat.yandex.ru Geo: Russia
Impressions
Skyscanner
Momondo
Anywayanyday
Trip.ru
Kayak
Senturia
Biletix
Amargo
Skyscanner is the leader in terms of user interest. Momondo took 2nd place.

51. 51
Top Searched Airlines
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0

52. Destination popularity

53. 30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
53
The Most Popular Countries to Travel to
(Top-20, throughout the year)
Yandex, Apr 2014
wordstat.yandex.ru
5,000,000
0
“Package” destinations
Other countries

54. 54
The Most Popular Countries (“non-package”
destinations except Russia)
Yandex, Apr 2014
wordstat.yandex.ru
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0

55. New Product Release
 Temperature targeting

56. Yandex.Weather – no1 Weather
Portal in Russia

57. Ьлллллллл
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л
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л

58. On Your
Way?

59. 59
Tatiana Kalinina
Business Development Director,
International Division
kalinina@yandex-team.ru
International Sales
Eng-ad@yandex-team.ru
Thank you!