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Yandex's latest update on the Automotive Digital Advertising market in Russia. February 2011.
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Russian Automotive Market Update
February 2011
2
Automotive Market
Automotive Industry on Yandex
vAutomotive
vBanking & Finance
vBusiness Services
vConstruction
vConsumer Shopping
Top Ten Industries on Yandex
Sources: Yandex; Top Ten by overall spend in recent period
Automotive is growing quickly and one of Yandex’s top industries
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
vHousing & Rentals
vManufacturing
vPersonal Health
vReal Estate
vTourism
Total Automotive Spend on Yandex
2009 2010
Automotive Spend on Yandex
130% Y/Y Growth
3
Automotive Market
Russian Automotive Market
v Strong Automotive resurgence in 2010
v Currently 10th largest Automotive market in the world
v Roughly 1/3 the size of U.S. marketv Very low car ownership per capita compared to Western markets
v Government is strongly focused on supporting (domestic) industry:
v Increased import dutyv Subsidized loans for purchase of domestic autos
v Direct support and intervention for domestic OEMsv Incentives for car scrapping
v Tightening restrictions on importing older used vehicles
v Strong growth is forecast to return; expected to become the 3rd largest market in the world over the next 5 years
Sources: IHS Global Insight; Earnst & Young; Ministry of Economic Development
0%
10%
20%
30%
LADA Chevrolet Ford Hyundai Renault Kia Toyota Nissan Daewoo Mitsubishi
3%4%4%
5%5%5%5%6%
7%
24%
Automotive Brand Market Share in Russia
Sources: AEB
Top Ten Automotive Brands ($ Share, 2009)
Automotive Market
Foreign brands dominate the top 10
% of Russian Market
4
5
Automotive Market
Broad coverage of both foreign and domestic brands20+ Automotive advertisers in 2010
Automotive Advertisers on YandexAdvertiser Brand Advertiser Brand
AVTOVAZ LADA INFINITI
BMW NISSAN
MINI CITROEN
CHINA CHONGQING INDUSTRY (GROUP) CO.,LTD LIFAN PEUGEOT
CHRYSLER PORSCHE PORSCHE
DODGE RENAULT RENAULT
JEEP GRAND CHEROKEE FIAT
DAIMLER AG MERCEDES-‐BENZ ISUZU
FORD SOLLERS
MAZDA SSANG-‐YONG
VOLVO UAZ
CHEVROLET SUBARU SUBARU
OPEL SUZUKI SUZUKI
HONDA HONDA LEXUS
HYUNDAI HYUNDAI TOYOTA
JAGUAR AUDI
LAND ROVER SEAT
MITSUBISHI MOTORS MITSUBISHI SKODA
VOLKSWAGEN
BMW
CHRYSLER CORPORATION
FORD MOTOR CO
GENERAL MOTORS CORP
JAGUAR LAND ROVER
NISSAN
PEUGEOT CITROEN RUS
SOLLERS
TOYOTA
VOLKSWAGEN AG (VAG)
Notes: Sample of Advertisers and Brands; not complete list
6
Automotive Market
Passenger Car spend dominates the Industry
Notes: Auto Manufacturers only, dealers excluded; Geo-Russia
Auto Loans and Commercial Transport spend grew slower than Passenger Cars
Automotive Spend by Category
7
Automotive Market
Passenger Car CPC was essentially flat in 2010
Notes: Auto Manufacturers only, dealers excluded; Geo-Russia
Auto Loan CPC had strong growth with slow overall spend growth
CPC by Category ($)
$0
$0.25
$0.50
$0.75
$1.00
Passenger Cars Commercial Transport Auto Loans
$0.64$0.66
$0.52
$0.27
$0.91
$0.48
Cost per Click
8
Russian Internet Search Market
0
125
250
375
500
China US Japan India Brazil Germany Russia UK France Nigeria S. Korea
394445516065768199
239
420
Internet Users - Global
Sources: Internetworldstats
Internet Users (MM) per Country (2010)
Russian Internet Market
Russia has the 7th largest audience of Internet Users in the world
Millions of Internet Users
9
Internet Penetration - GlobalRussian Internet Market
Sources: Internetworldstats
0%
25%
50%
75%
100%
China US Japan India Brazil Germany Russia UK France Nigeria S. Korea
81%
29%
69%
83%
43%
79%
38%
7%
78%77%
31%% of Population
Internet Penetration per Country (2010)
Russia currently has fairly low penetration compared to other large Internet populations
10
0
18
35
53
70
Germany Russia UK France Turkey Italy Spain Poland Ukraine Netherlands
1415
22
2930
35
45
51
60
65
Internet Users - Europe
Internet Users (MM) per Country (2010)
Russian Internet Market
Russia is the 2nd largest Internet market in Europe
Millions of Internet Users
11Sources: Internetworldstats
0%
25%
50%
75%
100%
Germany Russia UK France Turkey Italy Spain Poland Ukraine Netherlands
89%
34%
58%63%
52%45%
69%
83%
43%
79%
Internet Penetration - Europe
Sources: Internetworldstats
Internet Penetration per Country (2010)
Russian Internet Market
Russia has significant growth potential compared to other established European markets
% of Population
12
Average European Internet
Penetration
Russian Internet Penetration GrowthRussian Internet Market
Source: International Telecommunications Union
0%
25%
50%
75%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Internet Penetration in Russia (2000-2010)
Russian market is growing extremely quickly
13
43%
2%
37%
27%
21%
19%15%
4% 7% 10%12%
% of Population
Source: LiveInternet.ru
Search Engine Traffic Market Share in Russia, January 2011
Russian Search Engine Share
Yandex65%
Rambler2%
Google22%
Other4%
Mail.ru7%
Russian Internet Market
14
Mar
-05
Sept
-06
Jun-
07
Dec
-07
Jun-
08
Dec
-08
Jun-
09
Dec
-09
Jun-
10
Dec
-10
Source: LiveInternet.ru1. Based on monthly search traffic to Russian websites from Russian IP addresses
Market Share Evolution
2%
7%
22%
58%
26%
5
2001Google launches Russian language search engine
March 2006Google opens office in Russia
2006Google introduces Russian language morphology-based search capabilities
June 2008Google launches outdoor
advertising campaign
Russian Internet Market
May 2008Updated core search and ranking algorithms
65%
5
Nov 2009MatrixNet
Russian Search Traffic Market Share1
15
July 2010Orange (Realtime Search)
Dec 2010Spectrum (Semantic Upgrade)
