Yandex Studied Context Advertising in the Russian Internet

Internet, July 4, 2007. Yandex issued the information bulletin ”Context advertising in Russia”. The analysis is based on data from Yandex.Direct, the first and the largest system for context advertising in Runet. The data cover the period from January 2006 to June 2007. The full text of the analysis is available at http://download.yandex.ru/company/yandex_on_context_advertising_summer_2007.pdf.

As for June 2007 only in the Yandex.Direct system context advertisements are showed over 140 mln times a weekday, and over 1.2 – 1.3 mln conversions are made to advertisers' websites.

Out of $210m overall turnover of the Russian Internet advertising in 2006 the context advertising turnover was $110m (by 145% above the indicators in 2005). The same year for the first time in the history of the Russian Internet context advertising overtook display advertising not only in growth rates, but also in absolute values.

The number of context advertising clients, and the number of advertisement campaigns they ordered, in 2006 grew by 60-70%. The number of conversions made from context advertisements to advertisers' websites within the year grew by almost four times (by 280%).

As the Russian market for context advertising is growing, the advertisers are starting to actively explore less competitive advertisement niches and to occupy new segments of audience. In particular, the share of search queries bought by the advertisers for displaying context advertisements, in 2006 almost doubled.

Major customers in the Russian market for context advertising are representatives of high-cost-client-attraction businesses: producers and suppliers of manufactured products (B2B-segment), participants in construction, insurance and financial markets. Besides, a significant portion of the turnover in the market is provided by consumer electronics sellers, representatives of the business services sector, tourism sector, and real estate sector.

Moscow accounts for the main portion of the turnover in the Russian market for context advertising: Moscow advertisers and head offices of federal businesses located in Moscow provide over 70% of the advertising turnover.

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Vladimir Isaev, Ochir Mandzhikov
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E-mail: pr@yandex-team.com