russian internet market and yandex overview
DESCRIPTION
A detailed overview of the Russian internet market and Yandex's position within that market. Also contains details on Yandex's advertising product offerings.TRANSCRIPT
Everything will be found
Preston CareyBusiness Development Director
Part I. The Internet in Russia
3
Russia68 (48%)
Asia1 077 (28%)
Africa167 16%
North America274 79%
Latin America255 43%
Australia and Oceania
24(68%)
Europe451 (66%)
Middle East69(32%)
millions of users (% of internet penetration)
Internet penetration at the moment is lower in Russia than in developed countries.
source: Internet World Stats, June 2012
World, avg. value
Africa
Asia
Middle East
Latin America
Russia
Europe
Oceania and Australia
North America
34%
16%
28%
40%
43%
48%
63%
68%
79%
% of internet penetration
4
Despite slow growth rates, the level of internet penetration continues to increase, mostly due to regions and older age groups.
millions of users, 18+
source:Fond Obshestvennoe Mnenie (FOM), Winter 2013
Fall 2003 Fall 2004 Fall 2005 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Fall 2012 Winter 2012-2013
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
1014
1722
2632
3946
5461 64
9%12%
16%19%
23%
28%
34%
40%
47%
52%55%
Monthly audience Penetration level
6 6
Far East(50%)
The internet penetration level is higher in the Northwest Federal Region than in the Central Region.
Siberia(53%)
Volga(51%)
Central(58%)
Northwest(62%)
Ural(59%)
Southern(53%)
% of penetration, population of Russia 18+
source: FOM, Winter 2013
7
Villages
Cities less than 100,000 residents
Cities 500,000 - 1 million residents
Cities 1 million +
Cities 100,000 - 500,000 residents
Moscow
Saint Petersburg
41%
54%
60%
62%
62%
71%
70%
Moscow’s internet penetration level is higher than Saint Petersburg’s: 71% and 70% respectively. However, in cities with a population less than 100,000 people, only half of residents use the internet.
% of penetration, population aged 18+
source: FOM, Winter 2013
8
55-64
Moscow’s internet penetration level is higher than the average in Russia: 78% and 71% respectively.
Russia 97%
12-17
99%
18-24
95%
25-34
89%
35-44
72%
45-54
Moscow 94%
100%94%99%
99%
97%
82%
57%
source: TNS, February 2013
40%
9
People are using the Internet more often: the size of the daily audience is approaching the size of the monthly audience.
millions of users, 18+
Fall 2003
Fall 2004
Fall 2005
Fall 2006
Fall 2007
Fall 2008
Fall 2009
Fall 2010
Fall 2011
Fall 2012
Winter 2012-2013
10 14 1822 26
3239
4755
61 6433%
40% 39%44% 46%
56%61%
69%
75% 77% 78%
Monthly audience Daily audience, % of monthly
source: FOM, Winter 2012-2013
10
61.3 mil.(95.2% )
50.1 mil. (77.8%)
64.4 mil.
The Russian Internet’s monthly audience consists of approximately 64 million people. 78% users log on to the Internet everyday.
% of monthly audience
source: FOM, Winter 2013
11
In April 2012, the internet portal Yandex had a larger audience than any television channel taken separately.
Thousands of people, aged 12 to 54 in cities with a population of 100,000+ residents
source: TNS, November 2012
12
Yandex is a leader on the global search engine market.
source: ComScore, December 2012
Microsoft Sites
Yandex Sites
Yahoo! Sites
Baidu.com Inc.
Google sites
0 50,000 100,000 150,000
4,477
4,844
8,630
14,502
114,734
TOP 5 search engines, millions of searches
Yandex Sites
Microsoft Sites
Yahoo! Sites
Baidu.com Inc.
Google sites
0 500,000 1,000,000 1,500,000
TOP 5 search engines, thousands of users
13
Top-5 mail services in Europe by audience size (unique visitors 000)
# Service June 2011 June 2012 Growth
1 Hotmail 107 131 108 202 +1%
2 Google Gmail 63 280 74 670 +18%
3 Yahoo! Mail 42 587 44 290 +4%
4 Mail.Ru – Mail 35 055 42 767 +22%
5 Yandex Mail 18 353 25 143 +37%
Yandex.Mail is one of the most popular mail services in Europe.
source: ComScore, 2011
14
Yandex is the leader in Russia by share of search traffic.
Yandex62%
Google26%
Search.Mail7%
Rambler1% Bing
1%
% of search traffic
source: LiveInternet.ru (March 2013)
15
Rambler has used Yandex search technologies since June 23, 2011 and is part of Yandex Advertising Network.
Part II. Yandex Audience
17
Yandex Mission
“Our goal is to provide easy access to the wealth of
online information for users in Russia and beyond to
find the answer to any question that may arise.”
18
Yandex monthly audience is comparable to the monthly audience of the whole Russian Internet.
Photos
Weather
News
Market
Maps & Traffic
Video
Narod Sites
Images
Main
Search results
Yandex total
Internet total
12,721
19,786
20,379
20,488
22,950
28,069
28,487
32,829
33,144
49,009
50,137
57,593
64,593
12%
19%
19%
19%
22%
26%
27%
31%
31%
46%
47%
54%
61%
main projects, thousands of ppl., % of penetration (Russia, 12-64)
source: TNS, January 2013
20 source: TNS, January 2013*services with an audience of more than 60 people per month
More than half of users of Yandex main projects visit them every day.
Per day: 29 019(50%)
Per week: 46 173(80%)
Per month: 57 593 Thousand people,% of monthly audience
22
Yandex audience coincides with the Internet’s audience as a whole in terms of age structure.
Monthly audience, 12-54
12-24
25-34
35-44
45-64
16%
14%
10%
9%
Yandex Audience
source: TNS, January 2013
12-24
25-34
35-44
45-64
16%
14%
10%
9%
Internet audience
Part III. Internet advertising in Russia
24
2008 2009 2010 2011 20120%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
10
20
30
40
50
605.9% 8.8% 12.3% 15.9% 18.8%
14.9 16.2
26.8
41.8
56.3
Television Radio Press Outdoor advertising Internet Media (other) Internet (abc)
bil
lio
ns
of
rub
les,
no
t in
clu
din
g V
AT
In 2012, the advertising market in Russia was worth 300 billion rubles. The Internet is becoming more popular among advertisers.
source: АКАР, 2013
25
The most popular kind of advertising among Internet advertising is contextual advertising. Its share of the overall volume is growing steadily.
2008 2009 2010 2011 2012
58% 60% 61% 63% 68%
42% 40% 39% 37% 32%
Dynamics of Internet Advertising Structure
Contextual Media
source: АКАР, 2013
26
The volume of contextual advertising in 2012 grew by 45%.
2008 2009 2010 2011 20120
5
10
15
20
25
30
35
40
45
8.6 9.7
16.3
26.5
38.4
13%
68%63%
45%
billions of rubles, not including VAT
source: АКАР, 2013
27
Yandex68%
Google Russia28%
Begun3%
Others1%
Yandex is the leader of the contextual advertising market in Russia.
% of market share
source: eLama, 2012
Part IV. Yandex Advertising Capabilities
29
Yandex Advertising Capabilities
Direct(context)
Media advertising Market
BusinessDirectory
(geocontext)
• увеличение продаж• максимизация траффика
• увеичение осведомленности о бренде• запуск нового продукта
Banners(context)
•нишевый брендинг • увеличение продаж• предоставление полной информации
о продукте
• увеличение продаж• предоставление информации о
местоположении компании
30
Yandex Services
31
Other user content services
Yandex.Mail Mail service
Spamoborona Anti-spam software
Moi Krug Professional social network
Yandex.Photos Photo hosting
Disk Free hosting and file storage
Utilities
Yandex.Bar Search, Weather, Traffic and another line
Yandex.Server Search on servers and corporate networks
Yandex.Search for PC Search for PCs
Yandex.Online Mail notifications, Internet chat
Online Pay Systems and Mobile Apps
Yandex.Money Online pay system
Mobile apps Mobile versions of Yandex services
Main service
Yandex Search The leading search engine in Russia#1
Yandex various services allow to attract and keep a wide audience.
Search and information services
Yandex.Traffic Monitoring maps and traffic jams
Yandex.News News aggregator
Yandex.Market Compare prices and search for goods
Yandex.Blogs Blog Search
Yandex.Auto Search for new and used automobiles
Yandex.Video Video Search
Yandex.Dictionaries Encyclopedia and Directories
Yandex.Catalog A content catalog of Runet sites
Yandex.Afisha Guide for movies and cultural events
Yandex.TV TV Guide
Yandex.Timetables Tickets for planes and trains
Yandex.Weather Weather forecast (1,700 cities)
#1
#1
#1
#2
#1
#1
#1
#1
32
• Search• Mail• Maps
Universal aims
• Webmaster• Widgets• News, Auto, Real Estate, Jobs
Professional aims
(increase contextual traffic)
• Media advertising• Media content banner (MCB)
Advertising aims
(create and nurture demand)
• Direct• Market• Business Directory
Commercial aims
(attract new target clients)
• Metrica• Word statAnalysis and Marketing
Yandex services were developed for both users and advertisers.
33
Yandex offers commercial services … plus support tools.
•Direct
Market
Mediaadvertising
MCB
Metrica
Word stat
Direct API
Mail forDomain
Maps API
Webmaster
BusinessDirectory
34 34
• Internet advertising agencies
• Companies working with site promotion and internet
advertising
• Web studios
• Full-service advertising agencies
• Other advertising intermediaries
Our partners are:
35
Yandex.Direct
36
Yandex.DirectThis is one way of placing search and contextual advertisements on Yandex or Yandex Advertising Network partner sites.
It helps companies to:
• increase sales
• increase site traffic• provide information support
• Increase brand awareness
37
Media Context Banner
GuaranteeSpecial placementS
earc
h re
sults
Yandex.Direct
Features– Impressions for interested users
– Pay by click
– Independent assessment of budget and transfer price– Ability to make changes in real time
–Free virtual card (vCard) for advertisers without a website
– Different kinds of targeting
– Detailed statistics and reports on an ad’s effectiveness
– Yandex Advertising Network
– Yandex.Metrica
–Target call
Yandex.Direct
38
Yandex Advertising Network (YAN) provides advertisers access to a wider audience than Yandex.Direct.
source: internal information, 2012
39
Placing ads: Yandex search(search targeting)
40
Placing ads: YAN partner search sites. (search targeting)
41
Placing ads: content sites(content targeting)
42
Placing ads: non-content sites(behavioral targeting)
43
– Autobroker
– Autofocus
– Impression strategies
– Impressions based on additional relevant phrases
– RTB
– Direct Commander
Yandex.Direct’s Technology
44
Yandex.Direct: Autobroker
45
Yandex.Direct: Autobroker
Autobroker is an automatic optimization system for CPC.
Autobroker always lowers the maximum CPC set by the advertiser, setting the lowest sufficient CPC with each impression in order to provide the ad the best possible position considering:
• bids (from competitors)
• CTR
• geographical targeting
• time targeting• competitors for the query that
includes the given key words
46
Yandex.Direct: Autofocus
47
Yandex.Direct: Autofocus
Autofocus is a system that automatically refines key phrases.
Phrases on the verge of being disabled for low CTR (<0,5) are automatically specified by the system and continue to work without prior check by a moderator.
In doing so, advertisers are no longer obliged to specify such phrases on their own.
48
Yandex.Direct Strategies
Strategies for manually managing bids
Advertisers have more flexible advertising campaign settings
and more tools at their disposal.
Automatic strategies
The budget is managed automatically and doesn’t require
any effort from the advertiser.
49
Yandex.Direct:
automatic strategies
50
Weekly budgetAn effective distribution of spending on an advertising campaign with a set budget.
the best positions saves time and money
priority for keyword phrases takes into account a decrease in consumer activity
Advantages:
• easy to set up• control expenses
Limitations:
• loss of a significant part of audience• reduced ad efficiency and price of key queries
51
Increase capture of target audience coverage.
Weekly budget: maximum conversion rate
the best positions saves time and money priorities by keywords
Advantages:
• maximum number of conversions• easy to set up• control expenses
Limitations:
• Available only after installing Metrica counter• Availability only after selecting “Weekly budget” strategy
52
Average Cost Per Click (CPC)The maximum amount of clicks per week at the average CPC and no larger than the sum designated by the advertiser.
convenient if advertiser has a set CPC in mind priority for key phrases ability to limit weekly budget
Advantages:
• easy customization• determine visit price
Limitations:
• click quantity and budget size indicators are unpredictable• no ability to consider conversion by key phrases when setting the
maximum CPC
53
A fixed amount of clicks at minimal price.
Weekly clicks package
more than 100 clicks per week average or maximum bid by click priority for key phrases
Advantages:• easy customization• traffic is even and predictable
Limitations:
• difficult to forecast CPC and budget size• large quantity of expensive non-target clicks (if the set size is large)• loses part of audience (if the set size is small)
54
Automatic strategies’ features
The system needs time to reach an optimal level.
In the first few days, it’s possible that set conditions will be
rejected.
Automatic customization starts over if you disable and then
enable Autobudget.
55
Yandex.Direct:
strategies for manually managing bids
56
The highest available positionImpressions in any block in the highest available position.
The price per click for each key phrase is set manually.
57
Cheapest position in ad blockAds are shown in the selected block for the minimal price and at the most accessible level in other blocks.
The price per click for each key phrase is set manually.
58
Impression is to the right of search resultsAds are shown only in the guaranteed impressions block. One of two strategies can be selected for this: highest available position or minimum CPC.
The price per click for each key phrase is set manually.
59
Independent management of search and content sites
The strategy allows you to split ad management between Yandex Advertising Network’s content resources and search platforms
By enabling the “Independent management” strategy, advertises can set the price for key phrases on YAN’s content resources (the ad is shown on a platform if the key phrase corresponds to the page’s content).
60
Yandex.Direct: impressions for additional relevant phrases
61
Impressions for additional relevant phrasesA selection of additional relevant phrases are used in addition to the original phrases set by the advertisers to increase target audience coverage.
Additional phrases are selected automatically and are updated regularly based on collected statistics.
62
Yandex.Direct: RTB
63
Yandex.Direct: RTB
This system compares bids and CTR of the advertiser’s keywords with his/her competitors’ figures. The ads with the best characteristics are placed in the best positions to decrease the price per click.
Individual price for each key phrase.Advertiser’s price and key phrase’s CTR
are used in calculation.Data is collected for analysis for 28 days
after the key phrase starts working.Data on “premium placement” and
“guarantee” is collected separately.
64
Direct Commander
65
Direct CommanderThe Direct Commander app is installed on the user’s computer and allows the user to independently customize his/her ad for Yandex.Direct.
In a few clicks it’s possible to: find a phrase among thousands of
phrases find an ad among hundreds of adssimultaneously edit many phrases replace the text or links in many ads
66
Media advertising on Yandex
67 67
Media advertising on YandexAn internet advertisement in the form of interactive banners. The advertiser can cover a wider audience and improve his/her brand’s image.
It helps companies to:• increase brand awareness
• create market demand•support a new product’s launch
• provide information support
68
The kind of media ad placement on Yandex depends on the advertiser’s goals.
69
Yandex Banners
70
Yandex Media Content BannerA new form of internet advertisement that combines elements of media and contextual advertising. Only interested users are targeted.
It helps companies to:• increase brand awareness
•perform niche branding•increase sales
71
Yandex MCB can be placed:
Next to search results Mail.ru
72
Yandex.Market
73
Yandex.Market
The leading product comparison site. Stores can buy the best position in search results.
It helps companies to:
• increase sales• provide information support
74
Yandex.Market
A list of stores
Similar products
Accessories
Description of main features
Store locations on the map
Features– A comparison of prices and buyer reviews about
stores and products around Russia.
– A database of thousands of product models and sets
– Product description by Yandex– Automatic product categorization and identification
– Sorting offers by geographic availability
– Rigorous control of stores
75
Yandex.Market audience in Russia is constantly growing.
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
source: TNS, November 2012
76
Yandex.Market monthly audience in Russia consists of more than 20 million users. 10% of them use the service every day.
source: TNS, January 2013
thousands of people, % of monthly audience
In a month: 20 487
In a week: 8 488 (41%)
In a day:1 960 (10%)
77
Best positions: Yandex.Market search
78
Best positions: product cards
79
Best Positions: list of stores
80
Placing ads: Yandex search
81
Types of StoresAny store can place their product offers on Yandex.Market, including stores that take orders on their site and retail outlets and sale points.
Stores on Yandex.Market are divided into two types:
• Online store (sell goods on the site)
• Physical stores (goods are only sold in-store)
Online stores may have the following kinds of points of sale:
• Pick-up point (pick-up point where customers can pick up their order)
• Physical store (a regular store where customers can come and buy goods)
• Physical store and pick-up point
82
The offer can be suspended for a few reasons:• Unacceptable quality• Similar characteristics among stores• Other problems with quality• Site is temporarily unavailable
Automatic check:• Products with a low relative conversion rate• Site’s efficiency
Before advertisers can place their ads, Yandex.Market Quality Control Service checks the advertiser.
83
Yandex.Market: assessment and reviewsUsers’ reviews are published on Yandex.Market and create the store’s rating. A user can assess the level of service and add their own comments.
84
Ratings allow users to assess a store’s level of service and quality of work. Ratings are based on buyers’ assessments and reviews. The ratings start working 30 days after the first ad placement.
Yandex.Market: Ratings
85
Yandex.Business Directory
86
Yandex.Directory
The largest catalog of organizations and mapping service on Runet.
It helps companies to:
• increase sales• provide information support
87
– The largest mapping service in Russia with geolocational information.
– The “vCard”‘ contains the company’s contact information, address, website, and other information..
– Mobile versions of the service are available.
– The best positions for companies that users are interested in.
– An additional advertisement and contact information on the selected company’s card are shown on the map.
Features
Yandex.Business Directory
Best PositionsAdvertisement
88
Yandex.Maps Audience
Yandex.Maps is the most popular mapping service on Runet, its monthly audience is around 16 million users.
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
20,000,000
monthly audience
source: TNS, January 2013
89
Priority Placement
Priority placement (in Yandex search results or Yandex maps) helps a company to stand out from the crowd of similar organizations.
Priority placement is possible for: Separate branches/locations The whole chain
It is also possible to edit ads for separate branches/locations.
90
Priority Placement: Yandex search
91
Priority Placement: Yandex.Maps
92
Advertising on the company’s vCard
93
Advertising in Yandex search results
94
Placement: Mobile Maps
95
Scale: City
96
Scale: Street
Part V. Kinds of Targeting
98
Kinds of Targeting on the Internet
• Search
• Content
• Behavioral
• Geographic and Time
• Socio-demographic
99
Targeting Yandex Services
Direct
Media
Market
BusinessDirectory
• search• content• behavioral• geographic and time
• socio-demographic• content
MCB• search• content• geographic and time
• geographic and time
• geographic and time
100
Ads are shown only to users who are looking for something specific.
Advantages:- Users are involved in the
process.- High probability that users
will respond to the ad.
Features:- The potential audience
with similar interests is not covered.
Search Targeting
101
Ads are shown only on a site with specific content.
Advantages:- Users are interested in their
own right- Wide coverage of audience
Features:- If the content is too wide,
the target audience may not be completely covered.
Content targeting
102
Ads are shown only to users who have expressed prior interest in the given subject.
Behavioral Targeting
Advantages:- An increased amount of
contacts with an interested audience improves effectiveness.
Features:- If it tries too hard, the ad
will seem too intrusive.
103
Geographical and Time Targeting
Ads are shown only to users of a set region and at a set time.
Advantages:- It effectively cuts out unnecessary
audience.
Features:- The unnecessary audience is cut out
rather broadly and doesn’t allow a more precise targeting.
104
Ads are shown only to users who meet set socio-demographic criteria.
Advantages:- It’s convenient to use if the target
audience is determined in socio-demographic terms.
- Different creative ads can be displayed to different social groups.
Features:- The real target audience and
the model target audience don’t completely coincide: there’s a risk of cutting out a necessary audience.
Socio-Demographic Targeting
Homepage
CardsJob
Timetables
Auto
Money
Market
Maps and traffic
Dictionaries
Video
Music
Games
Services
AfishaPhotos
WeatherTV
NewsYounger Older
Men
Women
Part VI. Yandex Tools
106
Yandex.Metrica
107
Yandex.MetricaThis is a tool for assessing traffic, analyzing users’ behavior and assessing an ad campaign’s effectiveness.
108
Yandex.MetricaMetrica allows the owner of an online store, for example, to assess revenue and the activity of the site’s users.
109
Metrica Reports: Traffic group
These reports are created to analyze a site’s traffic for a given period.
The group includes reports on:
Users’ engagement with site
Load on the site
Number of visits per user
Visit frequency
Time elapsed since the first visit
Time elapsed since the penultimate visit
110
Metrica Reports: Sources group
These reports analysis sources of site traffic.
They include:
• A general report• A report on sites• A report on search engines• A report on search phrases• A report on advertising
systems• Reports on Direct• A “Tags” report
111
Metrica Reports: Content groupThese reports analyze the degree of users interest in the site’s content.
They include:A Popular report
A Log-on Page report
A Log-out Page report
A Title Page report
A URL Parameters report
A “Share” button report
An External Links report
A Download Files report
A Visit Parameters report
An Online Store report
112
Metrica Reports: Webvisor
Webvisor allows Yandex.Metrica users to analyze user behavior on their site by replaying their actions. A detailed analysis of user behavior helps to identify problems with navigation, logic, and usability, and as a result, to increase the site’s conversion rate.
113
Metrica Reports: GeographyMetrica registers a user as belonging to this or that geographical region.
114
Metrica Reports: Demographic groupThis report shows consolidated data on age-sex and allows comparison of the age structure of users of both sexes.
115
Metrica Reports: Behavior groupThis group’s reports analysis the characteristics of users’ behavior on a site.
They include: A Click Path analysis A Link Map A Click map
116
Metrica Reports: Computers groupThe Metrica Counter gathers data on the technical characteristics of site users’ computers. Information is presented in respective reports on operating systems and users’ browsers, display resolution and the presence and versions of Flash plug-ins, Java, and .NET.
They include:
A Computers report
A Mobile Devices report
A JavaScript presence report
A Cookies presence report
A Silverlight Version report
117
Metrica Reports: Calls ReportsIn these reports, data is collected on phone calls from users stemming from Yandex contextual advertising.
They include:
A summary report
A detailed report Call distribution by hour
118
Metrica Reports: Monitoring
Metrica collects information on the site and any occurring errors, making a special report on them.
119
Report WizardThe Report Wizard is a tool for building user reports.
120
Yandex.Wordstat
121
Yandex.WordstatThis is an instrument that shows statistics for search queries and gives a provisional forecast for the monthly amount of queries for a keyword.
Keyword or key phrase
Geographic region
Other queries for the viewed topic
Query forecast
122
Yandex.Wordstat allows users to estimate seasonal fluctuation.
123
Yandex.Wordstat shows a query’s regional popularity – places where the topic is must relevant.
124
Yandex.Wordstat shows the proportion of each region in the overall amount of page displays by keyword queries. The statistics are shown for the whole world, Russia, Belarus, and Ukraine.
125
Yandex.Wordstat statistics help estimate the possible size of an ad campaign’s monthly budget.
Preston Carey
Business Development Director
+1 857.288.8762
@prestoncarey
Thank you