Yandex and the Russian search market

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© Search Laboratory Ltd 2013. All rights reserved. Leeds T: +44 113 212 1211 London T: +44 207 147 9980 Russian Search Market

description

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

Transcript of Yandex and the Russian search market

Page 1: Yandex and the Russian search market

© Search Laboratory Ltd 2013. All rights reserved.

Leeds T: +44 113 212 1211

London T: +44 207 147 9980

Russian Search Market

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Agenda

Russian Market

Yandex

PPC

SEO

Search Lab

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Russian Market

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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:

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Internet Penetration per Country

Low penetration – high upside!

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7,9

9,0

11,8

14,6

2010 2011 2012e 2013e

2%

5%

10%11%

13%

15%

18%18%20%

29%

UK China GermanyFrance US Spain Russia Italy Brazil India

Market Overview

Russian Total Ad Market ($ Bn)

10-13e CAGR: 23%

Online as % of Total Ad Spend

The Russian Ad market is booming

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TVRad

ioСМИ

Наруж

ка

Медийная

интрен

ет-рек

лама

Контекстн

ая интр

енет-

реклам

а

Прочие

93.23

8.7

34.422.4

6.3 9.4 2.1

110.8

10.3

3829.7

10.8 16.33.1

131

11.8

40.4 34.315.3

26.5

4.1

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

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Russian Market

Payment methods

– Cash on delivery in lots areas (69%)

– Big cities will have credit cards

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Russian Market – Other Facts

Very low percentage of mobile advertisers

Everything has to be in Russian language to work

Different social networks

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Yandex

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Yandex 60% - Google 26%O

ct-0

4

Jan-

05

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0%

10%

20%

30%

40%

50%

60%

70%

Russian Search Traffic Market Share, %

November 2009Launch of MatrixNet

January 2010Mail.ru stops using

Yandexfor search

January 2006• Google opens office in

Russia• Google introduces Russian

language morphology

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1998

1997

2000

2002

2004

2002

2004

2006

2001

2005 2008

Search

Mail

MapsShoppin

gNews

Payments

Language Understandin

g

1989

2005

1989

Continuous Focus on Innovation

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Top for Many Services

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Top for Many ServicesNew

s #1-3Mail

#2

Comparison Shopping

#1

Auto #2

Music

Yandex.Money #1

Analytics tool

Jobs

Weather #1

TV listings

Traffic Jams, Maps

#1

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Key Investment Highlights

Ukraine Kazakhstan Belarus(2005) (2009) (2010)

Other Markets

15

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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!

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PPC

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SERPs

4 key things

– Premium placements

– Guaranteed placements

– Dynamic placements

– Contextual banner

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Largely What We’re Used to…

Keyword

Ads

Ad extensions

Quality score

Tracking

Remarketing

Display targeting methods

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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

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SEO

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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

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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

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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

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How SEO Works

But not everything is the same…

– Usability

– Appeal of website

• Prices

• Payment options

• Delivery options

• Range of products

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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

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Yandex Islands

Allow processes to take place directly from Yandex