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Bringing clients back segments and retargeting bids in search

In order to identify the most promising customer groups and maximize sales, S7 Airlines used bid adjustments on Search by segments, with their promotions tailored to the steps of the sales funnel set as goals in Yandex.Metrica. As a result, sales from search campaigns increased by 73% compared to the previous period, while the cost per conversion decreased by 48%. The most promising group was, understandably, a segment of loyal customers who had previously booked tickets through the S7 website.
S7 Airlines
Case results
+73%
+73%
sales from search campaigns
–48%
–48%
CPA
Client
Russian passenger airline S7 Airlines (part of “Siberia” airline)
Facts & figures
1992 “Siberia” airline founded, 2005 S7 brand launched, 10,6 млн passengers in 2015

Goals

  1. Segment audience according to sales funnel and determine most promising groups
  2. Maximize sales

Tools used:

  • Search ads / Yandex.Direct
  • Yandex.Metrica

Period: July 2016

Putting things in context

An individual approach to the client is the foundation of effective communication.

S7 wanted to distinguish groups of promising clients and convey a relevant message to each of them. To achieve this, they segmented users according to the sales funnel and applied separate bid adjustments in search.

Audience segmentation using the sales funnel

S7 divided their audience into five segments according based on how far they had proceeded in the sales funnel:

  • “First timers,” who had never visited the site before
  • “Bouncers,” who had been on the site but did not view the search results
  • Users who viewed search results by flight but didn’t make a reservation
  • Users who started but did not complete the reservation process
  • “Loyal” users who successfully completed a reservation

Step 1. Set up goals in Yandex.Metrica based on sales funnel

S7 set each step of the sales funnel as a goal in Yandex.Metrica.

Step 2. Create retargeting lists in Yandex.Direct

Then they created a retargeting list for each level of the sales funnel.

For example, the retargeting list “Step 2: viewed search results” has two rules: users who completed the goal “search results” WITHOUT completing “data entry.”

Retargeting lists must be unique. Their conditions must not overlap, so that no user should fall into more than one, and should be relevant over a period of 30 days.

Step 3. Divide traffic between new and repeat visitors

S7 made four copies of each campaign in the experiment — one for each step of the sales funnel, with its own retargeting list.

The keywords and campaign settings were the same for the four copies. The bid adjustments and ad texts were different, reflecting the user group each campaign focused on.

This setup allowed S7 to personalize their messages, making their ads relevant for each group.

To the right you can see a breakdown of an original campaign and its four copies (experimental campaigns with their own retargeting lists).

Step 4. Show repeat users discounted offers

Users that were absolute “first timers” saw the ads from the original campaign.
Previous visitors to the site who had gone farther down the sales funnel, however, saw ads from the experimental campaigns. These ads contained additional information about a discount promo-code. The link led to a separate landing page for the “It’s Time to Fly” sale, offering a 2% discount off any ticket.

Step 5. Set bid adjustments for each segment

To correctly divide their traffic, S7 applied a -100% bid adjustment in the original campaign for users who had already visited the site, guaranteeing that their ads only appeared to users who were absolute “first timers.”
To prevent new users from seeing the experimental ads, they set bids 4-6 times lower than in the original campaign for “first timers.” This guaranteed that the experimental campaigns would lose in auctions for users who hadn’t been to the site. Conversely, they applied a +1100% bid adjustment for return users, making sure that only the intended audience would see the promotions intended for return visitors.

Quality control

Creating Yandex.Metrica reports

In the “Yandex.Direct summary” report, they clicked on “Visits in which” → “Sources” → “Last source” → “Yandex.Direct” → “Campaigns” and listed all the experimental campaigns.
To check the quality of your traffic segmentation, you can create a report in Yandex.Metrica on campaigns aimed at “first timers.”
And a report on campaigns focusing on return clients.

“First timer” campaigns

The “percentage of new users' sessions” metric in the report shows that new users made up roughly 93% of those whose last source were the experimental campaigns aimed at “first timers.”

Creating a report in Yandex.Metrica

The “percentage of new users’ sessions” metric in the report showed that less than 8% were new, and the other 92% had returned to the S7 site from Yandex search.

Results

Determining the most promising groups

The conversion rate for users that made it to the search results was 6.7 times higher than first-timers. Users who had made a reservation before were 7.7 times more likely to book tickets than new users.

The CPA for these users were 85% and 87% lower respectively.

Most reservations (42%) were made by new users. 33% come from users who started reservation process, and 14% were repeat orders.

Normalized data from “New users” presented as a percentile difference, and absolute values of the relative sizes.
Alexander Nazarov
Performance Group Head, Performics (Publicis Media)
The approach we’ve described — separate promo landing pages with targeted messages for each segment — improved the campaigns’ performance and optimized communications through increased personalization.
Bringing clients back: segments and retargeting bids in search
Bringing clients back: segments and retargeting bids in search
Presentation
Download PDF
Case prepared in collaboration with the Performics (Publicis Media) agency

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