With a larger market share than Google, Yandex dominates the Russian search engine market. In this presentation we look at how to advertise on Yandex and also how to optimise natural rankings on the search engine

1. © Search Laboratory Ltd 2013. All rights reserved.
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London T: +44 207 147 9980
Russian Search Market

2. Agenda
Russian Market
Yandex
PPC
SEO
Search Lab

3. Russian Market

4. Big
In 2012 Russia became the
largest internet audience in
Europe
19.4 43.0 39.4 52.4 61.4
Millions of
unique
internet users:

5. Internet Penetration per Country
Low penetration – high upside!

6. 7,9
9,0
11,8
14,6
2010 2011 2012e 2013e
2%
5%
10%
11%
13%
15%
18%18%
20%
29%
UK China Germany France US Spain Russia Italy Brazil India
Market Overview
Russian Total Ad Market ($ Bn) Online as % of Total Ad Spend
The Russian Ad market is booming

7. 93.23
8.7
34.4
22.4
6.3 9.4
2.1
110.8
10.3
38
29.7
10.8
16.3
3.1
131
11.8
40.4
34.3
15.3
26.5
4.1
TV Radio СМИ Наружка Медийная интренет-
реклама
Контекстная
интренет-реклама
Прочие
Advertising budget dynamics (bln. rub.)
2009 2010 2011
+63%
+18%
Outdoor Media internet
advertising
Paid search otherMass media
+15%
+6%
+15%
+42%
+32%
Paid Search Growing Fast

8. Russian Market
Payment methods
– Cash on delivery in lots areas (69%)
– Big cities will have credit cards

9. Russian Market – Other Facts
Very low percentage of mobile advertisers
Everything has to be in Russian language to work
Different social networks

10. Yandex

11. Yandex 60% - Google 26%
0%
10%
20%
30%
40%
50%
60%
70%
Oct-04
Jan-05
Apr-05
Jul-05
Oct-05
Jan-06
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Russian Search Traffic Market Share, %
November 2009
Launch of MatrixNet
January 2010
Mail.ru stops using Yandex
for search
January 2006
• Google opens office in Russia
• Google introduces Russian
language morphology

12. 1998
1997 2000 2002 2004
2002 2004 2006
2001 2005 2008
Search
Mail
MapsShoppingNews
Payments
Language
Understanding
1989
2005
1989
Continuous Focus on Innovation

13. Top for Many Services

14. Top for Many Services
News
#1-3
Mail
#2
Comparison
Shopping #1
Auto
#2
Music
Yandex.Money
#1
Analytics tool Jobs
Weather
#1
TV
listings
Traffic
Jams, Maps
#1

15. Key Investment Highlights
Ukraine Kazakhstan Belarus
(2005) (2009) (2010)
Other Markets
15

16. Google vs Yandex
Quite an aggressive rivalry
Google are the biggest TV advertiser in Russia
Google is set as the default browser on Chrome and can’t be changed
However, Yandex actually link to Google!

17. PPC

18. SERPs
4 key things
– Premium placements
– Guaranteed placements
– Dynamic placements
– Contextual banner

19. Largely What We’re Used to…
Keyword
Ads
Ad extensions
Quality score
Tracking
Remarketing
Display targeting methods

20. How it Differs from Google
No ad groups
Weird bidding methods
2 different content networks
Different match types
Analytics (“Metrica”) more integrated
Can optimise for bounce rate
RTB
Search retargeting

21. SEO

22. How SEO Works
Human website raters hand-pick results
– http://www.russiansearchtips.com/2012/05/yandex-the-human-factor/
Each other site is ranked based on similarity to
this
Machine learning “MatrixNet” aims to deliver
optimal results
Importance of factors will vary depending on
prevalence
Personal search

23. How SEO Works
Actually very similar to Google in terms of what
will work
– High quality links
– Great on-page content
– Proper usage of Russian language
– Better ranking of bigger brands
– (Rich) Snippets
– Own version of webmaster tools

24. How SEO Works
Actually very similar to Google in terms of what
will work
– CTR
– Bounce Rate
– Time on Site
– Black hat tactics will be quickly punished

25. How SEO Works
But not everything is the same…
– Usability
– Appeal of website
• Prices
• Payment options
• Delivery options
• Range of products

26. How SEO Works
But not everything is the same…
– Trust factors
• Secure payment system
• Russian landline phone number
• Office address with opening hours and
directions
• No intrusive advertising

27. Yandex Islands
Allow processes to take place directly from Yandex