SMX ISS - Yandex Presentation

30
International Search Summit – San Jose Search February 2012

description

Yandex presentation from SMX ISS in San Jose 2012. Market overview, Yandex overview and how to get started working with Yandex.

Transcript of SMX ISS - Yandex Presentation

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International Search Summit – San Jose Search

February 2012

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Russian Internet market

Yandex overview

How it works

Get Stare

Agenda

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Internet Users by Country

Internet Users (MM) per Country

Russian Internet Market

Russia has the 7th largest audience of Internet Users in the world; 2nd largest in Europe

Millions of Internet Users

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Internet Penetration by Country

% of Population

Internet Penetration per Country

Russia currently has fairly low penetration compared to other large Internet populations

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Russian Internet Penetration Growth

Internet Penetration in Russia (2000-2011)

Russian market is growing extremely quickly because of penetration growth

42%

2%

37%

27%

21%

19%

15%

4%7%

10%

12%% of Population

43%

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Key Investment Highlights

Source: Public opinion foundation report, June 2011. Data for other countries provided by InternetWorldStats.com, June 2011, Dec 2011.

Internet penetration in Russia by Region (%)

66%

72%

53%

40%

Moscow Saint-Petersburg 1M+ Cities Other Russia

Internet Penetration in major cities is close to western standards

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Internet users are concentrated in the western regions

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Key Investment Highlights

Source: LiveInternet.ru

26%

8%

1.6%

5%

5%

26%

Search Traffic Share

Russian Search Engine Competitive Landscape

2006• Google opens office in Russia• Google introduces Russian

language morphology

60%58%

November 2009Launch of MatrixNet

January 2010Mail.ru stops using Yandexfor search

June 2011Rambler’s search services are powered by Yandex

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7.9

9.6

11.8

14.6

2010 2011e 2012e 2013e

2%

5%

10%11%

13%

15%

18%18%20%

29%

UK China GermanyFrance US Spain Russia Italy Brazil India

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The Russian Advertising Market Is Booming

Market Overview

Russian Total Ad Market ($ Bn)

10-13e CAGR: 23%

Online as % of Total Ad Spend

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Paid Search (66%)

Display (26%)

Social (4%)

Video (4%)Mobile (1%)

Russian online advertising share by media type

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2010 2011 2012$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Source: Data Insight

Russian e-commerce(mln. USD)

Russian e-commerce has grown more than 50% in last two years

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Mobile internet penetration is still relatively low

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Russian Internet market

Yandex overview

How it works

Get Stare

Agenda

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Key Investment Highlights

Naver

Yandex

Baidu

(launched 1997) (launched 2001) (launched 1999)

1 2 3

Russia ChinaSouthKorea

Yandex

Google

Others

Baidu

Google

Others

Others Google

NHN

Source: Liveinternet.ru, comScore, Analysys International

Local Champions Can Win in Search

76%

19%

5%

65%

9,5%25,5%

12%

28%

60%

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Introduction

Yandex is the Market Leader

#1 Internet Destination

45 million unique visitors per

month2

44% of Russian users’ homepages3

Search Leader

60% search market share in

Russia1

Leading Online Advertising

Platform

270,000+ advertisers in 20114

51% online ad market share5

Largest Russian Internet Business

FY 2011

$622m Revenues6 (60% yoy

growth)

$287m Adj. EBITDA7 (50% yoy

growth)1 Source: Liveinternet, January 20122 Source: comScore (December 2011)3 Source: TNS, January 20114 Source: Company Information, FY 2011

5 Source: AKAR 2011, as of Feb 22, 2012, adjusted for commissions6 Source: Company Information for the FY period 2011, using an exchange rate of RUR 32.1961 to $1.00 as of Dec 31, 20117 Source: Company Information for the FY period 2011, using an exchange rate of RUR 32.1961 to $1.00 as of Dec 31, 2011 Adjusted EBITDA is EBITDA before share-based compensation

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Yandex: The Gateway to the Russian Internet

News

Traffic Jams / Maps

Yandex.Money

Comparison Shopping

Mail

Russia’s Most Popular Homepage – 44% of All Russian Users

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Key Investment Highlights

Source: Company information, Liveinternet.ru, iResearch, SearchEngineWatch.com, comScore

Continuous Focus on Innovation

1. Baidu News Service launch date based on being available as of the date of IPO

1998

1997 2000 2002 2004

2002 2004 2006

2001 2005 2008

1

Search

Mail

MapsShoppingNews

PaymentsLanguage

Understanding

1989

2005

1989

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Local Focus and Understanding

Russia/CIS is our “Backyard” Locally-relevant Content and Services

Financial Review

Our Ad Campaigns Have a Russian Accent…

Search Verticals

Maps/TrafficStreet Views

ImagesVideosMusicGoodsBlogs

“The monitor does not give consultations.”

1,400 different territories for Yandex

Russia + Ukraine + Kazakhstan + Belarus

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Yandex is Replicating Success in Adjacent Markets

Key Investment Highlights

Share of Search Traffic in Ukraine, Kazakhstan and Belarus 1

Ukraine Kazakhstan Belarus

Source: LiveInternet.ru

(2005) (2009) (2010)

19%

28%

3% 3%

73%

60%

24%

50%48%

22%

24%

19% 6%7%

38%37%

46%46%

1. Search traffic reflects transitions by respective country’s users to local and Russian sites

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Turkey – Our First International Market

Population of 76MM Internet users (‘11): 35MM (46%) 28 local portals Online ad market (‘13E): $300MM No established #2 player in search

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

Turkey at a Glance1 Yandex in Turkey

2.0MM users in January 20122

>200K daily users of the portal 2

Local content & home page Exclusive content on Yandex.Maps

Maps and Map Based ServicesTurkish Market: Fast Growing and

Sizeable

130K downloads of Yandex Mobile

Maps

News

News

Image search

Image search

Video search

Video search

Search for

goods

Search for

goods

Mail

Mail

Weather

Weather

WidgetsWidgets

Expected to be among leading EMEA markets in terms of Ad Expenditure growth in 2011-2014

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Russian Internet market

Yandex overview

How it works

Get Stare

Agenda

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PPC interface available in English

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Bid management in English

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Wide range of Banner Ad options available

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Yandex.Metrica – web analytics tool available in English

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Organic engine rewritten and launched as MatrixNet in November 2009

Most of the “old” advice doesn’t apply anymoreMachine learning based; Archetypal sites” chosen as targets by

“Assessors”

Makes advising on SEO very hard; we don’t even know what the weights are

No formal customer support team for SEO’sVery good webmaster tools (available in English)General written guidelines available for how to get included in

index

Yandex 101

SEO for Yandex

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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

Yandex Webmaster Tools tell you

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Yandex Webmaster Tools Examples

Click Share by Query CTR by Query

Links Popular Queries

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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

U.S. or European Yandex entity available for simplified payment, invoicing & contracting

Dollars vs. Rubles

Post pay billing available

U.S. or EU vs. Russian legal jurisdiction

Get Stare

Want to try Yandex?

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Preston CareyDirector, Business Development

[email protected]+1 857.288.8762@prestoncarey

Thank You!