4. Big
Runet: to be the largest European internet
population by 2013 (93,2 mln)*
*Source: Forester Research World Online
Population Forecast, 2010 to 2014 (Global)
**2011 23,9 50,3 52,7 67,4 61,5
**Source: Internet World Stat 2011-2012
6. Growing
21 regions with internet penetration > 50 %
< 40 51-55
41-45 56 <
46-50
Source: FOM. Internet in Russia. Summer 2011.
7. Market Overview
High potential in the AD Market
Russian Total Ad Market ($ Bn) Online as % of Total Ad Spend
14.6 29%
11.8
9.6 20%
18% 18%
7.9 15%
13%
11%
10%
5%
2%
2010 2011e 2012e 2013e UK China Germany France US Spain Russia Italy Brazil India
7
8. 160
Internet 2nd behind TV
(in bln. rub.)
140
120
100
2008
80 2009
2010
60 2011
40
20
0
TV Radio Print Media Outdoor Advertising Online Advertising
Source: AKAR
10. Global
Russian is the 4th most spoken language globally.
250–300 mln speakers
Mandarin Spanish English Russian
Confucius Miguel de Cervantes William Shakespeare Leo Tolstoy
Source: SIL Internationaal (2002), George Weber (1997), Euromonitor (August 2010), Rosstat (2010), Company
data, Morgan, Stanley Research
11. Get Stare
Agenda
Russian Internet market
Yandex overview
Some facts about tourism
How to advertise on Yandex
11
12. Key Investment Highlights
Local Champions Can Win in Search
Yandex
Baidu
Naver
(launched 1997) (launched 2001) (launched 1999)
Yandex 2
Baidu NHN 3
1
60% 76% 65%
South
Russia China Korea
Others 5%
Others 14%
25,5%
19% 9,5%
26%
Google Google Others Google
Source: Liveinternet.ru, comScore, Analysys International
1. As of March 2012
2. As of 2Q 2011
3. As of May 2011
12
13. Introduction
Yandex is the Market Leader
Search Leader #1 Internet
Destination
60% search market share in Russia1
45 million unique visitors per month2
44% of Russian users‟ homepages3
Leading Online Largest Russian
Advertising Platform Internet Business
270,000+ advertisers in 20114 FY 2011
$622m Revenues6 (60% yoy growth)
51% online ad market share5
$287m Adj. EBITDA7 (50% yoy growth)
1 Source: 5 Source: AKAR 2011, as of Feb 22, 2012, adjusted for commissions
Liveinternet, January 2012
6 Source: Company Information for the FY period 2011, using an exchange rate of RUR 32.1961 to $1.00 as of Dec 31, 2011
2 Source: comScore (December 2011)
3 Source: TNS, January 2011 7 Source: Company Information for the FY period 2011, using an exchange rate of RUR 32.1961 to $1.00 as of Dec 31, 2011
4 Source: Company Information, FY 2011 Adjusted EBITDA is EBITDA before share-based compensation
13
15. The Gateway to the Russian Internet
Russia’s Most Popular Homepage – 44% of All Russian Users
News
Mail
Traffic Jams / Maps
Comparison
Shopping
Yandex.Money
15
16. Key Investment Highlights
Continuous Focus on Innovation
Mail Payments
Language
Search News Shopping Maps
Understanding
1989 1997 2000 2002 2004
1998 2002 2004 2005 2006
1
1989 2001 2005 2008
Source: Company information, Liveinternet.ru, iResearch, SearchEngineWatch.com, comScore
1. Baidu News Service launch date based on being available as of the date of IPO
16
21. Turkey – Our First International Market
Expected to be among leading EMEA markets in terms of Ad Expenditure growth in 2011-2014
Turkey at a Glance1 Yandex in Turkey
Population of 76MM
Internet users („11): 35MM (46%) 2.0MM users in January 20122
28 local portals >1 MM daily users of the portal
Online ad market („13E): $300MM Local content & home page
No established #2 player in search Exclusive content on Yandex.Maps
Turkish Market: Fast Growing and Sizeable Maps and Map Based Services
News
Mail
Weather
Image Video
Search for search search
goods
Widgets
130K downloads of Yandex Mobile Maps
1 Euromonitor; FOM; Global Insight; InternetWorldStats.com; ZenithOptimedia; Advertising Expenditure Forecasts, December 2011; Internet user penetration based on total population (source: Global Insight)
2 comScore, January 2012
24
22. Get Stare
Agenda
Russian Internet market
Yandex overview
Some facts about tourism
How to advertise on Yandex
25
23. Total possible number of impressions and
clicks in the considered groups of requests
Impressions:
• Tourism and related requests: more than 48,4 million
impressions per month
• Tourism requests: more than 138‟600 impressions per
month
Clicks:
• Tourism and related requests: more than 1,32
million* clicks per month
• Tourism requests:more than 3,8 thousand* clicks per
month
**Source: Internet World Stat 2010-2011
* If the position choice is “special placement”
24. Maximum number of impressions by type
of requests (Travel agency / tourism)
25M
20.2M
20M
14.9M
15M
10M
5M
0M
requests about travel general requests about
agency/tour tourism
Total capacity of considered groups of words – more than
35 million impressions per month
**Source: Internet World Stat 2010-2011
25. Maximum number of clicks by type fof
requests related to tourism
700K
593K
600K
500K
400K
300K
213K
200K
100K
0K
requests about travel general requests about
agency/tour tourism
Total capacity of considered groups of words – more than
806K clicks per month
**Source: Internet World Stat 2010-2011
26. November is the Key season for tourism
related requests in Russia
300
in season
250 223
186 193
200
153
139
150 129 128
118
108 113
97 96
100
50
0
May-11
Apr-11
Aug-11
Nov-11
Jan-11
Mar-11
Oct-11
Fev-11
Jul-11
Jun-11
Sep-11
**Source: Internal Ressourse 2011-2012
Dec-11
27. Requests by theme : largest share
goes to “Tours & Holidays”
Tours&Holidays 51%
Cottage rent 18%
Hotels 9%
Travel by car 6%
Ski resort 5%
Ferry 5%
Shopping tour 4%
Fishing 1%
Travel by bus 1%
0% 10% 20% 30% 40% 50% 60%
**Source: Internet World Stat 2011-2012
28. Key users interest in tourism products
7M
6M
5M
4M Holidays
Tour
3M
Tour operator
2M Trip
Travel agency
1M
0M
Feb-10
Apr-10
May-10
Aug-10
Nov-10
Feb-11
Apr-11
May-11
Aug-11
Nov-11
Jan-10
Jan-11
Mar-10
Oct-10
Mar-11
Oct-11
Jul-10
Sep-10
Jul-11
Sep-11
Jun-10
Dec-10
Jun-11
Dec-11
In tourism seasonal fluctuations are observed: after New Year's holidays users
are interested in “Holidays”, “Tour” and “Tour operator” more actively.
**Source: Internet World Stat 2010-2011
29. Turkey and Egypt are most popular
destinations, depending on season
1200K
1000K
800K
Egypt
600K Turkey
China
400K
Thailand
200K UAE
0K
Feb-10
Apr-10
May-10
Aug-10
Nov-10
Feb-11
Apr-11
May-11
Aug-11
Nov-11
Jan-10
Jan-11
Mar-10
Oct-10
Mar-11
Oct-11
Jul-10
Sep-10
Jul-11
Sep-11
Jun-10
Dec-10
Jun-11
Dec-11
User request of trip to the different countries has significant seasonal
fluctuations and strongly depends on a season. In the summer the majority of
users search information about tourism in Turkey, in the winter – in Egypt and
Thailand.
**Source: Internet World Stat 2010-2011
30. Finland leads amongst Scandinavian
destinations requests
185,5K (80 %)
Finland
87.2K
14,8K (6%)
Norway
12.7K
22,3K (10%)
Sweden Nov-2011
15.3K
Feb-2012
5,4K (2%)
Denmark
4.6K
3,8K (2%)
Iceland
3.0K
0K 20K 40K 60K 80K 100K 120K 140K 160K 180K 200K
**Source: Internet World Stat 2011-2012
31. Most requests about Finland
originates from Russia’s North-
Western region
48%
North-West
67%
38%
Center Nov-2011
23%
Feb-2012
13%
Others
10%
0% 20% 40% 60% 80%
**Source: Internet World Stat 2011-2012
33. When and how it is better to place an
advertisement?
• Use of tourism and related requests about trips, tours and air tickets will allow
to attract more targeting users on a web-site.
• Use of tourism and related requests for advertising will make positive impact
on a gain of visitors in a web-site.
• In period of active demand an advertising campaign by thematic requests will
be particularly relevant.
• For the most effective budget allocation we recommend to start campaign of
tourism requests in advance (or not to turn off in low demand), to accumulate
high CTR.
34. Get Stare
Agenda
Russian Internet market
Yandex overview
Some facts about tourism
How to advertise on Yandex
37
35. Appropriate tools for each marketing objective
Coverage Building
• Main page, Yandex.News,
Yandex.Mail, Yandex.Direct
Niche Branding
• Yandex.Traffic_Jams, Media-
Contextual Banners,
Yandex.Market, Yandex.Direct
Sales
Push
• Yandex.Direct
39. Yandex.Direct: advantages
Targeted audience
Adverts will be shown only to users who are looking for your products or services
Ads assist, not distract
Exact answer to the user questions. The main task: sales
Budget control
PPC model. Real time bid management.
Flexibility
Variety of options. Fast and flexible ad materials change.
Post-click Analysis
Access to real time statistics at any point over the course of the campaign. Variety of
reporting options and additional instruments for further analysis.
43. Yandex Webmaster Tools tell you
What problems occurred during the indexing process
Which pages are included in the search index
Who links to your website
What searches people make to find your website
How to protect your site from viruses
How to improve the appearance of your site in the search results
48
44. Get Stare
Try it out !!
Contact International Business Development team
Free translation, training and initial setup
Local optimization and campaign feedback
Dedicated English speaking Account Manager in Moscow
Web based reporting, budgeting, etc. available in English language interface
European Yandex entity available for simplified payment, invoicing &
contracting
EURO vs. Rubles
Post pay billing available
EU vs. Russian legal jurisdiction
49
45. Thank You!
Bernard Lukey
General Director
Yandex Europe AG
Saleseurope@yandex-team.ru
Tel +41 41 248 08 60
Tatiana Kalinina
Head of direct foreign accounts
kalinina@yandex-team.ru
tel: +7 495 739 22 22 ext 2430
Notas do Editor
This plotrepresents the dynamics of advertisers per month. As we can see the amount of advertisers is increasing and reached 223 advertisers in season (November).
This diagram represents the percentage of different type of requests. Nearly a half is related to category “Tours&Holidays”, “Cottage rent” has 18% and “Hotels” has 9%.
This diagram represents the number of user requests from Russia by different Northland countries. Finland is in the lead with a big gap – nearly 80% of total requests in season.
This diagram shows the percentage of user requests in different Russian region. In season (October-November) the number of request from Center is close to North-West (the difference between North-West and Center is only 10%). Increase in Center is mainly because of greater growth in categories such as “SPA-hotels”, “Hotels”, “Travel by car” and “Ski resort” and less growth in categories “Fishing” and “Shopping tour”. In another months North-West has the lead maybe because North-West is situated near Finland and people who live there travel to Finland more often.
This diagram represents the seasonality in different requests. “Ski resort”, “Tours&Holidays”, “Cottage rent” have a sharp request peak in autumn (October-November). Other way “Fishing” decreases in autumn but has a peak in summer (June-July). “Ferry” and “Shopping tour” have approximately smooth season lines with a little peak in autumn.