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Everything will
be found
Preston Carey
Business Development Director

Part I. The Internet in Russia

3
Russia
68 (48%)
Asia
1 077 (28%)
Africa
167 16%
North
America
274 79%
Latin America
255 43%
Australia and Oceania
24(68%)
Europe
451 (66%)
Middle East
69(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
34%
16%
28%
40%
43%
48%
63%
68%
79%
World, avg. value
Africa
Asia
Middle East
Latin America
Russia
Europe
Oceania and Australia
North America
% 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
10
14
17
22
26
32
39
46
54
61
64
9%
12%
16%
19%
23%
28%
34%
40%
47%
52%
55%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Fall 2003 Fall 2004 Fall 2005 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Fall 2012 Winter
2012-2013
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
41%
54%
60%
62%
62%
71%
70%
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
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+

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+
10 14 18
22
26
32
39
47
55
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

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
4,477
4,844
8,630
14,502
114,734
0 40,000 80,000 120,000
Microsoft Sites
Yandex Sites
Yahoo! Sites
Inc.
Google sites
TOP 5 search engines, millions of
searches
0 500,000 1,000,000 1,500,000
Yandex Sites
Microsoft Sites
Yahoo! Sites
Inc.
Google sites
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.
Yandex
62%
Google
26%
Search.Mail
7%
Rambler
1%
Bing
1%
% of search traffic
source: LiveInternet.ru (March 2013)

15
Rambler has usedYandex search technologies since June 23, 2011
and is part ofYandexAdvertising Network.

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.
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%
Photos
Weather
News
Market
Maps & Traffic
Video
Mail
Narod Sites
Images
Main
Search results
Yandex total
Internet total
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
16%
14%
10%
9%
12-24
25-34
35-44
45-64
Yandex Audience
16%
14%
10%
9%
12-24
25-34
35-44
45-64
Internet audience

Part III. Internet advertising in Russia

24
5.9% 8.8% 12.3% 15.9% 18.8%
14.9 16.2
26.8
41.8
56.3
0
10
20
30
40
50
60
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012
billionsofrubles,notincludingVAT
Television Radio Press Outdoor advertising Internet Media (other) Internet (abc)
In 2012, the advertisingmarketin Russiawas worth300 billion rubles.
The Internetis becomingmore popularamong 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.
58% 60% 61% 63% 68%
42% 40% 39% 37% 32%
2008 2009 2010 2011 2012
Dynamics of Internet Advertising Structure
Contextual Media

26
The volume of contextual advertising in 2012 grew by 45%.
8.6 9.7
16.3
26.5
38.4
13%
68%
63%
45%
0
5
10
15
20
25
30
35
40
45
2008 2009 2010 2011 2012
billions of rubles, not
including VAT

27
Yandex
68%
Google Russia
28%
Begun
3%
Others
1%
Yandex is the leader of the contextual advertising market in
Russia. % of market share
source: eLama, 2012

Part IV. Yandex
Advertising Capabilities

29
YandexAdvertising Capabilities
Direct
(context)
Media
advertising Market
Business
Directory
(geocontext)
• увеличениепродаж
• максимизациятраффика
• увеичениеосведомленностиобренде
• запускновогопродукта
Banners
(context)
• нишевыйбрендинг • увеличениепродаж
• предоставлениеполнойинформации
опродукте
• увеличениепродаж
• предоставлениеинформациио
местоположениикомпании

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
Media
advertising
MCB
Metrica
Word stat
Direct
API
Mailfor
Domain
Maps
API
Webmaster
Business
Directory

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:

36
Yandex.Direct
This is one way of placing search and contextual advertisements
on Yandex or YandexAdvertising Network partner sites.
It helps companies to:
• increase sales
• increase site traffic
• provideinformationsupport
• Increasebrandawareness

37
Media Context
Banner
GuaranteeSpecial placement
Searchresults
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

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

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 budget
An 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
Afixedamountofclicksatminimal 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 position
Impressions in any block in the highest available position.
The price per click for each key phrase is set manually.

57
Cheapest position in ad block
Ads are shown in the selected block for the minimal price and at the
most accessible level in other blocks.

58
Impression is to the right of search results
Ads are shown only in the guaranteed impressions block. One of two strategies
can be selected for this: highest available position or minimum CPC.

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 phrases
Aselectionofadditionalrelevantphrasesareusedinadditiontotheoriginalphrasesset
bytheadvertiserstoincreasetargetaudiencecoverage.
Additionalphrasesareselectedautomaticallyandareupdatedregularlybasedon
collectedstatistics.

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.

65
Direct Commander
The 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 ads
 simultaneously edit many phrases
 replace the text or links in many ads

66
Media advertising on
Yandex

67
67
Media advertising on Yandex
An internet advertisement in the form of interactive banners. The advertiser
can cover a wider audience and improve his/her brand‟s image.
• increasebrandawareness
• createmarketdemand
• supportanewproduct‟slaunch
• provideinformationsupport

68
The kind of media ad placement on Yandex depends on the
advertiser‟s goals.

70
Yandex Media Content Banner
A new form of internet advertisement that combines elements of
mediaandcontextualadvertising.Onlyinterestedusersaretargeted.
• increase brand awareness
• perform niche branding
• increasesales

71
Yandex MCB can be placed:
Next to search results Mail.ru

73
Yandex.Market
The leading product comparison site. Stores can buy the best
position in search results.
• increase sales
• provideinformation 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
4
6
8
10
12
14
16
18
Millionsofusers
source: TNS, November 2012

76
Yandex.Market monthly audience in Russia consists of more than20
million users. 10% of them use the service every day.
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

81
Types of Stores
Any 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 reviews
Users‟ 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

86
Yandex.Directory
The largest catalog of organizations and mapping
service on Runet.
• increase sales
• provideinformation 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 Positions
Advertisement

88
Yandex.Maps Audience
Yandex.Maps is the most popular mapping service on Runet, its monthly
audience is around 16 million users.
0
2
4
6
8
10
12
14
16
18
20
Sep2…
Oct.2…
Nov.…
Dec.…
Jan.2…
Feb.…
Mar.…
Apr.2…
May.…
June.…
July.…
Aug.…
Sep.…
Oct.2…
Nov.…
Dec.…
Jan.2…
Feb.…
Mar.…
Apr.2…
May.…
June.…
July.…
Aug.…
Sep.…
Oct.2…
Nov.…
Dec.…
MillionsofUsers
monthly audience

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

98
Kinds of Targeting on the Internet
• Search
• Content
• Behavioral
• Geographic and Time
• Socio-demographic

99
Targeting Yandex Services
Direct
Media
Market
Business
Directory
• search
• content
• behavioral
• geographicandtime
• socio-demographic
• content
MCB
• search
• content

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
Afisha
Photos
Mail
Weather
TV
News
Younger Older
Men
Women

107
Yandex.Metrica
This is a tool for assessing traffic, analyzing users‟behavior
and assessing an ad campaign‟s effectiveness.

108
Yandex.Metrica
Metrica 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 group
These 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: Geography
Metrica registers a user as belonging to this or that
geographical region.

114
Metrica Reports: Demographic group
This report shows consolidated data on age-sex and
allows comparison of the age structure of users of both
sexes.

115
Metrica Reports: Behavior group
This 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 group
The 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 Reports
In these reports, data is collected on phone calls from users
stemming from Yandex contextual advertising.
They include:
 Asummary report
 Adetailed 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 Wizard
The Report Wizard is a tool for building user reports.

121
Yandex.Wordstat
This 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
preston.carey@yandex.ru
@prestoncarey
Thank you

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