Russian Programmatic Market Overview
Russian Programmatic Market Overview 2014 Russian Programmatic Market Overview – 2014 Contents About research .............................................................................................................................................................. 3 Ordering parties of the research ................................................................................................................................... 4 Terms ............................................................................................................................................................................ 5 The main conclusions .................................................................................................................................................... 7 Global market ............................................................................................................................................................... 8 Events ....................................................................................................................................................................... 9 Brands enter the programmatic ........................................................................................................................... 9 Media move on to programmatic ...................................................................................................................... 10 Changes in data usage ........................................................................................................................................ 11 Investments and Acquisitions ............................................................................................................................ 11 Trends ..................................................................................................................................................................... 12 Programmatic rich media ................................................................................................................................... 13 Programmatic mobile ......................................................................................................................................... 14 Programmatic video ........................................................................................................................................... 14 Forecasts ................................................................................................................................................................. 15 In Russia ...................................................................................................................................................................... 16 Events ..................................................................................................................................................................... 19 The expansion of Western players is postponed ............................................................................................... 19 Google continues to develop on the Russian market ........................................................................................ 19 Yandex actively engaged into programmatic development ............................................................................... 20 Rambler&Co changes its strategy to programmatic .......................................................................................... 21 Other market events .......................................................................................................................................... 22 Trends ..................................................................................................................................................................... 22 Brand safety ....................................................................................................................................................... 22 The growth of requirements for analytics, campaign performance and transparency ..................................... 23 Viewability .......................................................................................................................................................... 24 Market volume ....................................................................................................................................................... 24 Forecasts ................................................................................................................................................................. 25 Appendix 1. DSP on Russian market ....................................................................................................................... 27 Appendix 2. Russian programmatic ecosystem .......................................................................................................... 31 Appendix 3. Russian programmatic market players ................................................................................................... 32 About IAB Russia ..................................................................................................................................................... 44 2 Russian Programmatic Market Overview – 2014 About research Here is the report “Russian Programmatic Market Overview -‐ 2014”, which covers the main events and trends that took place in the area of programmatic advertising in Russia and abroad. This review will be useful for entire advertising vertical: for agencies and advertisers, as well as technology companies and media publishers. For this research we used data from open sources: foreign and Russian researches and surveys, media materials, as well as comments and opinions of the Russian market participants. We thank experts from IAB Russia Programmatic Working Group for participating in research, as well as representatives of companies that are not members of the Working Group, in particular: Mikhail Balakin (Sociomantic Labs), Nikolay Danilov (Yandex), Sergey Zhuravlev (Republer), Daniil Zabolotniy (AdLabs), Dmitry Karmanov (CTC), Archil Kemularia (Crimtan), Eugene Legkhiy (RuTarget), Dmitry Lelis (Kavanga), Oleg Nazarov-‐ Bruni (Hubrus DSP), Roman Nester (Segmento), Alexey Petrovskiy (Begun & Price.Ru), Alexey Rajevskiy (Lamoda), Dmitry Kharitonov (RBC), Ekaterina Shinkevitch (CPAExchange). To complete the picture of programmatic market in Russia, to highlight the main participants of the ecosystem and to determine the underlying trends and demands, we interviewed the leading DSPs, which operate on the Russian market. We thank the companies which shared information and their views on the programmatic market in Russia: 3 Russian Programmatic Market Overview – 2014 Ordering parties of the research This research has been prepared on the initiative of IAB Russia Programmatic Working Group, upheld by of the General Meeting decision of the IAB Russia members in October 2014. Special contribution was made by the Chairman of the IAB Russia Research Committee Alexei Belyaev (Vi Analytical Centre), co-‐heads of the Programmatic Working Group Vladimir Krivosheev (Rambler & Co) and Vsevolod Leonov (Google Russia), President of IAB Russia Boris Omelnitskiy (Yandex). We express our gratitude to the companies -‐ members of the IAB Russia, which funded the preparation of the review and have made an active expert support. 4 Russian Programmatic Market Overview – 2014 Terms Programmatic – a set of procurement methods of advertising opportunities in the Internet with the usage of automated systems and tools for making decisions about the transaction on the basis of user data, which is available to both the publisher and the advertiser. Real-‐time Bidding (RTB) – technology of selling and buying advertising displays, based on real-‐time rates. Programmatic direct -‐ advertising purchasing model through the programmatic infrastructure at a fixed price, pre-‐negotiated between the seller and the buyer. Also, here may be used such advantages of the programmatic model as the usage of different audience data and so on. Preferred deals – advertising purchasing model with priority buyers’ access to platform inventory, fixed prices and terms of the transaction, with the possibility of using billing mechanisms and application of audience data. DSP (Demand Side Platform) -‐ a platform, which allows agencies and advertisers to buy online-‐advertising in various advertising exchanges. SSP (Sell Side Platform) -‐ a platform for publishers, which allows to automate the advertising sales and to receive more money from these sales by using auction’s price determination. ATD (Agency Trading Desk) -‐ centralized advertising purchasing platform on various advertising model. DMP (Data Management Platform) -‐ platform to manage the data, which allows to organize, to segment and to analyze massive amounts of information used for targeting audiences, to whom the advertising message is more suitable at a particular moment. Viewability (the appearance of advertising) – a metric, which allows to track the actual banner display and its duration. Programmatic market segmentation: Direct deals (Programmatic direct / Preferred deal) -‐ a model of advertising purchase through programmatic infrastructure at a fixed price, pre-‐negotiated between the seller and the buyer. Here can be used such advantages of programmatic model as the use of different classified data, bidding and so on. Open RTB auction -‐ sale of inventory using RTB-‐auction mechanisms and audience data. 5 Russian Programmatic Market Overview – 2014 The point of view on the market: Sell-‐side -‐ money received by the publishers (websites) as a result of the inventory sale with the usage of programmatic mechanisms. 6 Russian Programmatic Market Overview – 2014 The main conclusions • In the worldwide arena programmatic remains as fast-‐growing segment of Internet-‐ advertising market. About 42% of the display advertising global market in 2014 accounted for programmatic. • The size of programmatic market in Russia increased in comparison with year 2013. This happened not because of the growth of media advertising market, but due to increasing of programmatic market share. According to the assessments made by IAB Russia Programmatic Working Group about 20% of earnings from media advertising sales accounted for inventory sales with usage of programmatic mechanisms. According to RACA research data it amounted to 3.8 bln rubles. About 75% of this volume is the revenue from the selling through an auction model, including open and private auctions and about a quarter is direct automated transaction with a fixed price (Direct deals / Programmatic Direct / Preferred deals). • Key events on the Russian programmatic market related to consolidation of main players, functionality improvement of major representatives abilities and new contract negotiations. • Due to the changes of international policy situation western players failed their attempts to step in Russian market. However, according to experts, this should spur Russian companies to more intensive development of technologies and competencies. • The crisis in the Russian economy, change in ruble exchange rate made a great influence on online advertising market. Market volumes in all segments were below expectations. • In the condition of budget cuts, advertisers are trying to choose the tools that give maximum efficiency, and programmatic is one of them. Even those companies that were not active in the use of programmatic advertising in 2013 go to the experiments in an effort to optimize budgets. • To get maximum efficiency, advertisers put forward new requirements for performance measurement tools of advertising campaigns, analysis mechanisms, viewability and brand safety. 7 Russian Programmatic Market Overview – 2014 Global market The Association of National Advertisers1 pointed out “programmatic” as the main marketing word in 2014. This is not surprising: programmatic proven effective and has been engaged in the advertising strategies of the largest brands across the globe. There are new tools and formats, there are fewer large publishers that have not yet been tried include programmatic in their advertising arsenal. According to Magna Global estimation, programmatic market in the world doubled in 2014 in comparison with previous year and amounted to $ 21 billion2. That is 42% of the display advertising world market. The US programmatic market in 2014 exceeded $ 10 billion. This is about 45% of the total market of digital display advertising 3 . 92% of revenue came from selling programmatic advertising through RTB, the remaining share came from programmatic direct. However, analysts predict a further increase on programmatic model purchasing is due to direct transactions. US programmatic market is expected to double in 2016 to $ 20.41 billion, or 63% of the market display advertising. 42% of them are projected to come on programmatic direct deals. In the US programmatic mobile market almost caught up with the display programmatic with 44.1% of total $4.44 expenditure on programmatic in 2014. According eMarketer’s forecast, in the first half of 2015 mobile channels will bypass traditional channels and occupy about 56.2% of programmatic advertising market. Although, there is a huge interest in video and rich media, these channels still make up a very small fraction of the total market and are continuing to be implemented primarily through direct sales channels. Today programmatic is continually used by advertisers to purchase inventory, even on one of the most traditional marketing channels – the Television. AOL research company surveyed the 25 largest US advertisers, 96 agencies and 56 site owners4. According to this survey, 76% of advertisers use programmatic for purchasing display advertising, 56% for the mobile advertising, 48% for video advertising, 24% -‐ for social networks, 32% -‐ for search engines and 13% for purchasing television advertising. Only 8% of respondents do not use programmatic at all. 1 http://www.ana.net/content/show/id/32825 http://news.magnaglobal.com/article_display.cfm?article_id=1657 3 http://www.emarketer.com/Article/US-‐Programmatic-‐Ad-‐Spend-‐Tops-‐10-‐Billion-‐This-‐Year-‐Double-‐by-‐2016/1011312 4 http://www.mediapost.com/publications/article/231967/over-‐90-‐of-‐buyers-‐using-‐programmatic-‐per-‐aol-‐sur.html 2 8 Russian Programmatic Market Overview – 2014 Agencies use programmatic more actively, than brands. For agencies display advertising automated purchase is 86%, mobile and video advertising -‐ 60%, social network advertising is 34%. © AOL Platforms, 2014 Overall, more than 90% of advertisers and agencies in the US use programmatic, and are planning to increase the volume of automated procurement. 87% of respondents said that in the second half of 2014 they intend to spend on programmatic purchase of advertising at least one and a half times more. In the 3rd quarter of year 2014 In Europe advertisers expenditure on programmatic increased 3 times compared to the same period of 20135. In the Nordic countries the growth was 164%, in Belgium, Netherlands and Luxembourg -‐ 83%, while in Germany, Austria and Switzerland -‐ 498%. Events Brands enter the programmatic In mid-‐2014 it became known that Procter & Gamble 6 would increase their programmatic use to 75% by December. According to the same source, in 2015, P & G would translate into RTB-‐auctions and budgets on advertising in mobile channels. This strategy of one of the biggest brands has made a great influence on marketers, who previously was in doubt of algorithmic purchasing advertising on the network. P & G shift toward trough programmatic statement followed another major brand American Express7 for full transition to programmatic-‐purchase advertising. Later, the brand representatives explained that a full transition to a programmatic is just a “strategic intent”, but the first statement of the company, which occupies the ninth place in the list of the largest advertisers in the network, thoroughly shaken up the advertising industry. 5 http://site.adform.com/resources/collateral/whitepapers/download/rtb-‐report-‐q3-‐2014/ http://adage.com/article/digital/procter-‐gamble-‐buy-‐70-‐digital-‐ads-‐programmatically/293553/ 7 http://adage.com/article/digital/american-‐express-‐100-‐programmatic-‐sort/293037/ 6 9 Russian Programmatic Market Overview – 2014 Heineken also significantly increased the expenditure on programmatic. Three years ago the brand spent on online channels only 5% of the advertising expenditure. In 2014 the digital share was already 20%, in 2015 will increase to 25%. At the same time 10% of the total advertising expenditure will go on programmatic channels. To refresh its media strategy, Heineken signed a contract with Tube Mogul, a technology company specializing on online video advertising. As part of its new programmatic strategy, luxury brand Burberry made an agreement with Yahoo and Dentsu Aegis8. In December, the Burberry advertising campaign appeared on the Yahoo main page in several European countries, implemented through the technology platform Amnet, owned by Aegis. Media move on to programmatic In 2014, a number of media companies decided to use programmatic method of buying and selling the advertising. Time Inc., News Corp., American Media, and Wenner Media decided to sell inventory through online auctions. Publishers have signed contracts with Varick Media Management, a company that develops advertising platform Alveo. The service will help the website owners to sell advertising. According to The New York Times executive vice president of advertising of Meredith Kopit Levin, one of the most important areas of advertising strategy is the availability of the publication of traditional advertising slots for programmatic-‐sales: “We take automated buying and selling very seriously and we needed to do quite a bit of work in 2014 on the plumbing underneath that, making it easier technologically, and to do private and preferred programmatic deals. In 2015 we will continue to do a whole lot of that work improving our technology stack and opening up demand with agency trading desks, and other large sources of demand”9. By the end of 2014 Apple10 has decided to move toward programmatic, announced the sale of advertising in its iAd platform using programmatic tools. Apple has become the partner of Rubicon Project, Accordant Media, Adelphic, AdRoll, GET IT Mobile, MediaMath and The Trade Desk. Advertisers were able to automate the placement of advertisements in 250 thousands of applications working with iAd. The process will be a private auction, customers can join it through API. Hearst Corporation in partnership with Varick Media Management in 2014 began to sell advertising across its digital media network (which includes Cosmopolitan.com, 8 http://adexchanger.com/advertiser/burberry-‐presses-‐publishers-‐to-‐embrace-‐premium-‐programmatic/ http://www.themediabriefing.com/article/meredith-‐kopit-‐levien-‐new-‐york-‐times-‐native-‐advertising 10 http://adexchanger.com/mobile/iad-‐starts-‐selling-‐programmatic/ 9 10 Russian Programmatic Market Overview – 2014 Esquire.com, GoodHousekeeping.com etc.) with the usage of programmatic direct 11 technology. Significant investments in development of programmatic technologies and its own CRM to personalize advertising messages were made by the major European publisher Northern & Shell12. Mozilla13 and eBay14 showed their intention to develop programmatic technologies for advertising selling in 2015. Changes in data usage In May 2014 Facebook announced about launching of advertising network that uses data about users of the social network for targeting advertisements on third-‐party websites. The actions of one of the largest holders of user data affected the ongoing development in other players’ strategies. In December, Twitter announced that it will collect data on the applications installed on the user's smartphone. This feature can be disabled in the settings, but by default it will be active. “To help build a more personal Twitter experience for you, we are collecting and occasionally updating the list of apps installed on your mobile device so we can deliver tailored content that you might be interested in”15-‐ as it said on Twitter website. Chinese giant Alibaba made an expected step towards programmatic. In January 2015 the company acquired a controlling stake in AdChina, №1 in China service providing platform based on programmatic for advertisers. AdChina will have access to all the data about users available in Alibaba, to develop an advertising direction, focused on major brands. AdChina survey shown that today about 80% of the Alibaba income accounted for online advertising, but in most cases it is e-‐commerce advertising. In 2014 the company was considering various options to expand its own strategy by attracting large advertisers. Investments and Acquisitions In June 2014 the Amobee company (a subsidiary of the Singapore operator SingTel) announced the double acquisition. Parts of the company (and SingTel) are technology projects Adconion (transaction amount $ 235 million.) and Kontera ($ 150 million.). 11 http://adexchanger.com/ad-‐exchange-‐news/hearst-‐lays-‐programmatic-‐direct-‐pipes-‐with-‐varick/ http://www.thedrum.com/news/2014/10/29/northern-‐shell-‐digital-‐investment-‐includes-‐moves-‐protect-‐data-‐ programmatic-‐potential 13 http://adexchanger.com/online-‐advertising/mozilla-‐finally-‐releases-‐its-‐browser-‐ad-‐product-‐hints-‐at-‐programmatic-‐ in-‐2015/ 14 http://www.thedrum.com/news/2014/11/13/ebay-‐readies-‐native-‐mobile-‐ad-‐formats-‐which-‐could-‐be-‐traded-‐ programmatically-‐2015 15 https://support.twitter.com/articles/20172084-‐ 12 11 Russian Programmatic Market Overview – 2014 Adconion specializes in online video advertising, its platform is used by more than 2 million customers. Kontera develops technologies for mobile advertising and analytics. In early July 2014 Twitter announced acquisition of TapCommerce, specializing in mobile advertising. The service allows real-‐time attraction of those customers, who downloaded any app on their phone. The purchase sum was not disclosed. This is not the first step in the direction of Twitter’s mobile advertising, in September 2013 the company bought a startup in the mobile advertising company MoPub. In August 18, 2014 during the sixth round of funding AppNexus INC company raised $ 60 million from venture capitalists. The funds raised at the company intends to research and development. The world leader in the consumer behavior research Dunnhumby LTD (a subsidiary of Tesco PLC), has acquired the Berlin company Sociomantic Labs GmbH, which specializes in providing services in the field of online advertising based on RTB. Dunnhumby plans to use the Sociomantic platform technology to improve the effectiveness of campaigns aimed at customers of retail chains. Global Corporation Acxiom collects and analyzes data for the implementation of highly targeted advertising campaigns. In May 2014 for $ 310 million Acxiom acquired startup LiveRamp, which develops technologies to download the client data in applications for digital marketing. As a result of the absorption, the combined company will be able to cover advertisements to 99% of the adult US population. Trends Advertisers, while experimenting with programmatic tools, firstly think about efficiency. Despite the fact that the display advertising is intended primarily to increase brand awareness, with the advent of programmatic it is turned into a tool to achieve a specific goals. Adform16 study shows that the efficiency of mobile, rich media and especially video advertising sold through programmatic exceeds the efficiency of standard banners. Not surprisingly, these channels show a high growth in time. 16 http://site.adform.com/resources/collateral/whitepapers/download/rtb-‐report-‐q3-‐2014/ 12 Russian Programmatic Market Overview – 2014 © Adform, 2014 Programmatic rich media Cost of programmatic rich media advertising exceeds the cost of standard banners sold through programmatic. This is a chance for publishers to attract big brands to buy advertising through automated channels and to earn more. In Europe, the advertisers’ expenditure on programmatic rich media already makes up 17% of the total cost of programmatic. Adform estimated that CPM of programmatic rich media banners is on average 152% higher than standard banners. However CTR of rich media banners is 222% higher than the standard, and the volume of conversions twice as much as in other types of programmatic advertising. Despite the high cost, the efficiency of rich media in the end turns out to be significantly higher, even if we consider rich media not as a branding tool, but as a performance-‐tool. Experts believe that the potential of this market today is limited by amounts of available inventory, rather than the buyer's request. If publishers “open the floodgates” programmatic rich media market expects explosive growth. Vladimir Krivosheev, Director of advertising products, Rambler&Co: “We see a rapidly growing interest of agencies and advertisers to purchase advertising model using rich media in the programmatic campaigns. Combining the best mechanisms for selection of ads with the best ways of bringing advertising messages can give a strong synergistic effect. We can watch it in all programmatic placements with rich media on Rambler & Co websites and expect significant growth of this product in 2015”. 13 Russian Programmatic Market Overview – 2014 Programmatic mobile Advertising on mobile devices has occupied 12% of all displays through programmatic in the United States, at the same time programmatic advertising on tablet devices almost caught up with advertising on smartphones (40% vs. 60%). Adform experts predict that programmatic mobile market in 2018 in US will reach $ 6.8 billion17. Development of programmatic mobile market in Europe is ahead of display programmatic development. Traditional banners sold through programmatic made 158% income for a year, programmatic in smartphones made 159% for a year. The programmatic in smartphones showed an increase by 591%, and in tablet devices -‐ 385%18. Programmatic video Business Insider predicts a rapid growth of the US programmatic video market to $3.1 billion by 2018 year. In 2014, the largest publishers expanded their abilities in video advertising that will result in an increase in programmatic video usage. In 2014 Facebook introduced full metrics for video advertising in social networks, and also made possible to place ads in the news clips that are automatically played when scrolling. Previously, the company posted a video on Facebook to identify how many people will start watching video .Now they will have complete information on the total number of views, unique views and duration of contacts. The President of Yahoo! Marissa Mayer, said that her company launches Yahoo Live channel, which will broadcast live music, sports and other activities. Through sponsorship and production of additional content, advertisers will be able to communicate with a wide audience of music lovers and sport fans. Yahoo! was the first partner of brand Kellogg's. Decisive steps towards video advertising were also made by Instagram. Marketing services director Jim Squires said that Instagram had already made an experiments with video advertising with such brands as a Levi's, Ben and Jerry's, Burberry and Starwood. He added that the company is testing advertising campaigns that combine the use of photos and videos for maximum effect. 17 http://www.businessinsider.com/the-‐programmatic-‐and-‐rtb-‐ad-‐report-‐2014-‐8 http://site.adform.com/resources/collateral/whitepapers/download/rtb-‐report-‐q3-‐2014/ 18 14 Russian Programmatic Market Overview – 2014 Forecasts As a key technology of programmatic, RTB is growing at the highest rates. According to Business Insider forecast, by the year 2018 the RTB global market will reach $18.2 billion expenditure with an average annual growth rate of 42%. Main reasons for rapid growth will be mobile advertising ($6.8 billion in 2018) and video advertising ($3.1. billion in 2018). Also, till the year 2016 open auctions will technologically dominate the market, after that time the domination will be taken by open auctions. According to eMarketer, the programmatic market in the US will reach $20.41 billion by the year 2016. That will be 63.3% of total display advertising market and programmatic direct will take more than 40% of this share. According to IAB UK forecast, programmatic share in the European market will reach 60-‐75% by the 2017. By the year 2018 the main reason for the growth of online advertising market share will be a programmatic video. The growth of this format on the period from 2012 to 2018 will be more than 80%, while the indicators of online video and traditional programmatic are more modest -‐ 38% and 33% respectively. 15 Russian Programmatic Market Overview – 2014 In Russia At the end of last year Russian advertising market experts have made a forecast19 that 2014 year in programmatic market will be dedicated to the inclusion of major media platforms into RTB. Also, in 2014 were forecasted brand safety technology development (brand protection from advertising on unwanted websites) and integration of the Russian traffic in Western DSPs. Changes in the political and external economic situation in 2014 and the increased volatility of the ruble made a strong influence on the Russian advertising market and programmatic development in particular. According to RACA study “The volume of the advertising market in the means of its distribution in 2014”20 almost all segments on advertising market showed zero or negative trend. Television and radio have added only 2% in comparison with 2013, outdoor advertising remained at 40.6 billion rubles, and the print media have lost 11% in comparison with revenues in 2013. Only Internet advertising showed significant growth in 2014 -‐ by 18% to 84.6 billion rubles. The major growth was provided by contextual advertising, which revenues amounted to 65.5 billion rubles (27% more than in 2013), at the same time banner advertising lost 5%. Media platforms in 2014 earned on media advertising placement 19.1 billion rubles. Due to the growing effectiveness of online advertising despite the crisis, major advertisers are increasing its volume much faster than the total amount of advertising. According IAB study “Russia Digital Advertisers Barometer”, 65% of large Internet companies were planning to increase its budget for online advertising in 2014 for more than 10%. ”For “brick and mortar” companies (i.e., those companies which primarily do their business offline) this value equals 39 percent of the respondents. Big advertisers increase their advertising budgets for interactive advertising despite the growing expectations of the difficult economic situation in the country. In this regard, more than two-‐thirds of the respondent advertisers agree with the statement that the share of interactive advertising in the general advertising budget is increasing and will continue to increase”.21 19 http://www.slideshare.net/AdFox/adfox-‐russian-‐rtbmarket2013overview110314 http://www.akarussia.ru/knowledge/market_size/id5354 21 http://iabrus.ru/research/barometer/default.aspx 20 16 Russian Programmatic Market Overview – 2014 How will the budget of your brand for interactive advertising change in 2014 compared to 2013? © IAB Russia, Digital Advertisers Barometer, 2014 More than 40% of the Russian market experts noted the negative impact of the economic situation on programmatic advertising market, but nearly a third of respondents believe that economic difficulties have affected the market positively. How changes in the economic situation influenced the Russian programmatic market in 2014? © IAB Russia, 2015 17 Russian Programmatic Market Overview – 2014 Maxim Tadevosyan, Deputy CEO, Rambler & Co: “The recession spurred many businesses to significantly increase its investment in programmatic, but still today there is an acute problem of automatic purchasing technological readiness to both agencies and clients. Unfortunately, even the big players have frozen their investments in favor of developing their own platforms for a period of economic turmoil, and therefore the local players and local platforms will be in high demand by the entire market”. Evgeny Legkhiy, Founder of RuTarget: “As usual, there are its own advantages in a difficult economic situation. For example, the crisis has traditionally makes all to accelerate. Changes that were predicted in the industry for the next two or three years is likely to occur later this year”. Alexey Rajevskiy, Head of advertising department, Lamoda: “Advertising associated with straight, well-‐analyzed response, does not suffer from external factors. Programmatic, unlike some other media placements, won’t experience any threats. Disable or reduce programmatic is the same thing as to reduce or turn off the sale at all. This year programmatic has won than lost”. Earlier, programmatic was tried mainly by innovative companies that could afford to experiment. Now advertisers forced to search channels that will save money without losing the effectiveness of advertising campaigns. According to IAB Russia’s “Digital Advertisers Barometer” study, 44% of large advertisers in Russia are already using RTB technology to purchase advertising, and about 20% are ready to start using them. Sergey Zhuravlev, CEO of Republer: “Programmatic has been developing relatively active since 2013, and over time has achieved some victories. But in this case programmatic was used by innovators companies, those who was searching new knowledge and approaches and was very interested in the application of new technologies. According to the theory -‐ such companies are not more than 5% of the market. The remaining 95% are subject to strong inertia. Many companies had no motivation to deal with something new. The overall economic situation in the country will make them search new ways to solve their problems. I am definitely sure that programmatic will be first to acknowledging”. 18 Russian Programmatic Market Overview – 2014 Events The expansion of Western players is postponed One of the most expected events in 2014 was the arrival of large foreign technology companies in the Russian market (AppNexus, Invite Media, Rocket Fuel, TURN and others). Due to the changed economic situation, this arrival has not happened yet. According to experts, the expansion of foreign companies in the Russian market is delayed for at least a year. Evgeny Legkhiy, Founder of RuTarget: “At the beginning of 2014 there was expected the active intrusion of Western players into the Russian market. Now all local players have for at least another year to catch up with new technologies. On the other hand, an access to Western markets also became complicated for Russian companies”. Despite this fact, some Western companies in the first half of 2014 took steps in the Russian market of media advertising. For example, Microsoft Advertising Exchange started in Russia in the spring of 2014 in partnership with Sociomantic Labs, giving Russian advertisers all the available tools (Skype, MSN, and Outlook) for the purchase through programmatic. Criteo, the global leader in high-‐performance advertising, in May 2014 opened an office in Moscow in order to realize the market potential for advertisers looking to engage the Russian online audience. Criteo started its activities in Russia two years ago. So far, the team of Russian digital professionals served customers, partners and publishers from the German office in Munich. Google continues to develop on the Russian market DoubleClick was very active in Russia in 2014 as a key platform and with agencies and advertisers. Today DoubleClick Russia has full local team and local support. Last year several major Russian media platforms joined DoubleClick . DoubleClick key customers not only participate in a open auction, but also actively use direct transactions (Preferred Deals). Vsevolod Leonov, Head of Partner Business Solutions Russia, Google Russia and the CIS countries: “DoubleClick remains an active player in the Russian programmatic market. We continue to increase the number of partners and integrate key customer, data providers and advertising inventory owners in our platform”. Also in 2014, the Russian partners were one of the first in Europe to access the DoubleClick Bid Manager Premium package. The main advantage of the package is the 19 Russian Programmatic Market Overview – 2014 ability to work with dynamic creativity, quality audience targeting, look-‐alike targeting, etc. In 2015 Google plans to add for DBM users “pay per click” possibility, API to manage campaigns and measure the impact of advertising campaigns for brand recognition. Yandex actively engaged into programmatic development In February 2014 Yandex has announced a partnership with Google in the sphere of media advertising. According to the agreement, Yandex media advertising accommodation services (AWAPS) connected to the Google RTB-‐system (DoubleClick Ad Exchange) and Google’s DoubleClick Bid Manager will be connected to Yandex RTB-‐system. It was assumed that the technical integration of systems will take several months. ”The integration of advertising systems will certainly be an incentive for the development of the online advertising market. Bidding transparency, which is typical for RTB-‐systems, provides new opportunities for growth. The more players there are, the wider the selection of sites, the higher the competition for impressions, the better the selection of advertisements”22, -‐ said Nikolai Danilov, Head of technology sales of Yandex. The agreement on cooperation of the two Internet giants in the field of programmatic advertising is recognized by experts as a major event in the Russian programmatic market. However, experts note that the expected practical effect of this interaction in 2014 was not reached. Archil Kemularia, Country manager of Crimtan: “Yandex and Google cooperation is still in the process of technical integration. Unfortunately, initially was announced that it would take only few months”. In September 2014 Yandex acquired ADFOX, technology platform for managing online advertising. Based on these technologies Yandex plans to develop solutions for large resources, and at the same time developing ADFOX under the same brand. ”With the help of targeting based on the Crypta technology you will be able to show ads to the audience that advertisers need. ADFOX clients will be available to new ways to monetize traffic through RTB and Yandex Direct. There will also be additional tools for optimization of advertising campaigns. All this will help ADFOX customers to create new advertising products and increase efficiency and revenue. Advertisers will 22 http://company.yandex.ru/press_releases/2014/0226/index.xml 20 Russian Programmatic Market Overview – 2014 also win because they will have more promotional tools”, – as described in ADFOX press release23. Based on machine learning methods Crypta technology was launched by Yandex in 2011. The purpose of this technology is to determine the audience studying by exploring the behavior of the Internet typical users. Crypta used by Yandex not only in contextual advertising, but also in media advertising to show banners with certain parameters to customers, as well as in look-‐alike. Since 2013 the Crypta technology is used for display ad targeting not only on media platforms and Yandex advertising network, but also on websites provided by IMHO VI advertising agency through service IKnow. Yandex revenue increase in media advertising in 2014 amounted to 4%. At the same time sales result on Yandex’s own resources fell by 5%, while posting on affiliate networks showed 145% growth. Experts believe that this increase is associated with the launch of the Yandex RTB, also this increased the amount of partners. The purchase of ADFOX would further increase Yandex revenues from display advertising. Rambler&Co changes its strategy to programmatic In October 2014 the representatives of Rambler & Co outlined a new strategy for the company. The company decided to shift the business focus from traditional display advertising on the mobile, video and programmatic in order to offer the market the most effective advertising tools. Moreover, for these purposes Rambler&Co has created its own advertising agency R.Point. In November 2014 Rambler & Co began selling through its own SSP-‐platform. Technology provider for this platform was made by Begun (part of the group of companies). Now a group of platforms, which includes Afisha.ru, Lenta.ru, Gazeta.ru, LiveJournal.com, Championat.com and Rambler.ru, exclusively serviced by RTB-‐platform Rambler-‐SSP. These days the Rambler&Co platform audience is more than 40 million Russian users monthly. DMP “User Model”, which has been developing by Rambler & Co since 2012, allows determining the audiences profile by machine methods, build look-‐a-‐like model and create custom audience segments. Audience segments obtained by “User Model” are used in programmatic premium and preferred deals transactions, thus enriching the inventory implemented through Rambler-‐SSP. 23 http://adfox.ru/ru/news_detail/47/ 21 Russian Programmatic Market Overview – 2014 Also Rambler & Co announced a strategic partnership with the advertising group Dentsu Aegis and its member agency AMNET. The company focuses on the creation of joint programmatic premium products. Other market events In September Between Digital company launched a programmatic premium functional for the advertising market. The opportunity to sell and buy premium inventory with the help of the program approach and automated arrangements without the participation in the online auction is available to customers of Between SSP and Intency DSP. ViHub -‐ the first Russian service for online video advertising purchasing (programmatic video) was launched in November 2014, based on the Hubrus DSP platform. Major funding was made by Impusle and VCi Paradigm Investment In the beginning of January 2015 the project Rollad announced its closure. The company developed the auction which was based on the indication that was interested to the advertiser: the cost of impressions (CPM), clicks (CPC), action (CPA, CPO), the effectiveness of advertising (CTR) or conversion on the website (CR). Trends Boris Omelnitsky, the President of IAB Russia: “In Russia there is interest in programmatic of two separate groups of advertisers who solve various problems. The first group is large companies, which are interested in engaging the target audience in communication, measure the results of investments in advertising with the usage of brand metrics and which are very attentive to brand safety and viewability. For them programmatic technology is a way to get a significant tool improvement of media advertising. Another group focused on performance metrics and for them programmatic products used as an addition to contextual advertising, brand safety goes into the background”. Brand safety For many advertisers, especially for major brands, one of the limiting factors for programmatic technology usage, particularly in open RTB auctions, is lack of clear 22 Russian Programmatic Market Overview – 2014 understanding on which media platforms their advertising will be displayed. Brands may experience reputational risks by placing their ads on irrelevant websites or in a negative context. In addition, as in the case with contextual advertising, advertisers are concerned about the quality of the audience and the possibility of fraudulent traffic during auctions. These problems can be solved in two ways: using specially developed technology to provide brand safety or using programmatic direct and preferred deals -‐ direct purchase of audience on certain websites using all programmatic opportunities. To meet advertisers demand on increasing the quality of purchased inventory, Russian DSPs create their own technology or collaborates with third-‐party companies. For example, Segmento in late 2013 launched a dedicated service Brand Safety Shield, which analyzes the websites for “forbidden” content that is pre-‐specified in the advertising system. Hubrus and Intency in 2014 integrated with traffic quality control company – Botscanner Group. According to the Hubrus representatives, they managed to achieve a radical increase in the quality of the audience and to reduce the share of fraudulent traffic in more than 3 times. The expert survey showed that media platforms are worried about their reputation no less than advertisers. Billing traffic to an open auction allows all kind of advertisers to get in any advertising slot on the site. The growth of requirements for analytics, campaign performance and transparency At a time when brands are forced to cut marketing budgets there is a huge demand on advertising technologies, which effectiveness can be traced. During the crisis firstly cuts the expenditure on media advertising, because media ads work on the brand recognition, but not aimed to achieve a specific result. Programmatic, as a media advertising technology, allows segmenting advertising campaigns narrowly, thereby increasing their effectiveness. In 2014 advertisers were increasingly turning to technology companies with the needs for measurement tool and analysis for programmatic performance advertising. Roman Nester, CEO of Segmento: “Today more and more customers and brands are guided by ROMI (return on marketing investments). For example, they are no longer interested in so called abstract “coverage”, but in the growth of awareness about a particular product, brand or an offer after the advertising campaign. To meet customer demand we created a product, based on the Brand Lift metric. This metric was used firstly by global brands Intl and Hyundai, as well as major local players such as Citylink and its partners”. 23 Russian Programmatic Market Overview – 2014 Viewability In search of the most accurate indicators of the effectiveness of the advertising campaign, advertisers, including Russia, are beginning to talk about viewability -‐ advertising visibility indicator. After all, even if the banner is located in the most “profitable” place on the website, there is no guarantee that the user will see ad correctly and pay his or her attention to it at least for a split second. Even in 2012 the world's experts in the field of interactive advertising have been developing metrics measuring viewability of banners. In the summer 2014 there were IAB recommendations on how to correctly measure the viewability of interactive advertising. In accordance with the association, “visible” can be considered a banner 50% of which are visible to the visitor for 1 second. “Invisible” are those impressions that do not meet the adware criteria or are the result of the activity aimed at obtaining fraudulent impressions. According to Google Viewability Benchmark study 24 , an average viewability of advertising banners on the website is 50.2%. This means that about half of the advertising messages users do not see at all. A banner “visibility” depends on a combination of parameters such as size and type of ad unit, its position on the page, etc. Researching the dependence between banners viewability and its changes due to various parameters can help advertisers to build improved advertising strategy and to save budget. Market volume According to the IAB Russia Programmatic Working Group on, about 20% of the revenue of media platforms from display advertising sales in 2014 brought Programmatic. Based on RACA research, the media advertising volume in Russia amounted to 19.1 billion rubles. Accordingly, the share of programmatic accounted for 3.8 billion rubles. About 75% of this amount was revenue of media platforms from online advertising through an auction model, including open and private auctions, and about a quarter were in direct automated transaction with a fixed price (Direct deals / Programmatic Direct / Preferred deal). In 2013, according to “RTB Market Overview” by ADFOX25, through open auctions website owners earned 1.2 billion rubles. 24 https://think.storage.googleapis.com/docs/the-‐importance-‐of-‐being-‐seen_study.pdf http://adfox.ru/ru/news_detail/29/ 25 24 Russian Programmatic Market Overview – 2014 The main categories of advertisers, who use programmatic tools, remain ecommerce, automobile companies, mobile operators, financial companies and FMCG sector. The share of these segments accounted for more than 65% of the total budgets for programmatic. An estimation of the budget proportions of various commodity groups in all procurement operations using programmatic mechanisms © IAB Russia, 2015 Forecasts The next year there is an expectation of reallocation of budgets in the segment of media advertising in favor of programmatic. In relation to this, there will be changes and in major advertising agencies, who will continue to develop its own Trading desk and will cooperate with the DSP, which offer self-‐service to maintain control over the advertising campaign. 25 Russian Programmatic Market Overview – 2014 Maxim Tadevosyan, Deputy CEO, Rambler & Co: “Today the economic situation forced all market participants to look at media investments from the other hand -‐ in favor of maximum transparency and return on marketing investment. Non-‐FMCG category redirected about 50% of Internet media investments in favor of automated technology products and purchase methods. The companies in this category are almost run out of proposals the wide mass target audiences, today are taking narrowly targeted products. A similar situation presents in the FMCG-‐segment, but this category for the past three years is a key investor in video formats, and, unfortunately, here today we do not see a rapid movement of the leading players in the development of such areas as programmatic video. However, I am sure that this tool in the near future will be monetized and developed for the benefit of automated technology model”. While making their predictions for 2015, experts often mention the market consolidation, cooperation of players due to mergers and acquisitions. Evgeny Legkiy, Founder of RuTarget: “It seems that 2015 will be a year of consolidation. In 2014 Yandex bought ADFOX, Rollad announced its closure. It is very likely that there will be interesting news on purchases and investments in the programmatic market. Large IT-‐market players are looking at long Big Data and targeted communications”. The “weak” players who did not manage to gain a stable position on the market are likely will be forced to leave. Roman Nester, Segmento: “The market will be strictly filtered by crisis, young and unstable startups will be out of race. Advertiser will seek to technology and data with a minimum of aggregators, resellers and value-‐added resellers (and additional costs and commissions). Notorious chain from the client to creativity will be reduced. This happens not only due to the pursuit of efficiency, but also the requirements for handling and customizes campaigns”. To stay in the market and earn by using the programmatic in 2015 companies will have to actively develop technologies that are in demand by advertisers and websites: the possibility of procurement through programmatic premium, increasing viewability, complex custom targeting, performance measurement and analytics. 26 Russian Programmatic Market Overview – 2014 Appendix 1. DSP on Russian market We interviewed the top 20 DSP-‐platforms that are operating on the Russian market in purpose to find out which services of advertising buying through RTB are commonly used by consumers, advertisers from which segments are interested in programmatic procurement and which public announcements are expected in the near future. Half of the DSPs have their own platform for data management The survey revealed that the majority of companies which provide DSP services in Russia at the same time provide other technical services. More than a half have a private DMP for aggregation and data processing, 45% of companies offer SSP services, 10% have a private Data Exchange, and 5% use their own Trading Desk. Which technologies besides DSP your company provides? © IAB Russia, 2015 DSPs consider that its main competitive advantage is unique technologies It is not surprising that only 20% of DSPs considers DMP as a competitive advantage due to its extension. But having their own unique technologies and developments considered as a big advantage over the competitors by 55% of companies. A quarter of respondents stressed the importance of a large audience coverage and individual approach 27 Russian Programmatic Market Overview – 2014 to clients. 20% of respondents mentioned that their advantage is a wide range of targeting, 11% pointed out the presence of its own team of analysts and quality service. What is your advantage compared to other DSPs on the Russian market? © IAB Russia, 2015 DSPs offer advertisers more than 20 different types of targeting In addition to the most popular targeting models: temporal, geographical and socio-‐ demographical, DSPs offer advertisers retargeting. About a quarter mentioned targeting by platforms, user interest, operating systems, and behavioral targeting. Less companies provide targeting by SSP, thematic and contextual targeting. Top-‐10 SSP According to the responses from representative 20 DSPs work with more than 50 Russian and foreign SSPs. Most cited are ADFOX, Google, Between Digital, Begun, Republer, Yandex, Soloway, Adeasy, OpenX and Rubicon. 28 Russian Programmatic Market Overview – 2014 Which SSP do you work with? © IAB Russia, 2015 AiData -‐ the main data source for third-‐party Russian DSP Interesting results showed the issue of DMPs and data sources which work with DSPs. As already mentioned, almost a half of the companies have their own data processing technology. The most popular third-‐party data provider is AiData. Mobile RTB is offered almost by 80% of companies Among all advertising formats that DSPs work with the most popular were standard Internet banners. The results showed that the market is beginning to conquer the mobile advertising and video advertising. These formats are considered to be key points of RTB market development. Which advertising formats do you work with? © IAB Russia, 2015 29 Russian Programmatic Market Overview – 2014 DSPs plan to develop mobile advertising direction and connect new SSP In the near future Russian DSPs plan to develop mobile direction and connect new SSP. Companies are also planning to offer customers video advertising, new formats and targeting reports. 30 Russian Programmatic Market Overview – 2014 Appendix 2. Russian programmatic ecosystem 31 Russian Programmatic Market Overview – 2014 Appendix 3. Russian programmatic market players DSP (Demand Side Platforms) Ad4u is a full-‐service e-‐commerce agency. To achieve its objectives, agency uses all modern technologies, including the purchase of RTB-‐traffic as well as development of effectiveness analysis of advertising channels and CPA work. http://www.ad4u.ru/ AdSniper company operates in the market since 2013. In addition to the DSP, AdSniper offers DMP services. AdSniper offers individual procurement algorithms, as well as its own system of formation and Look-‐alike audience targeting. The system is intended to the resultative purchase: the active-‐click, registration, purchase. http://adsniper.ru The company works with its own DMP Aidata.me. Aitarget operates on market since 2012. The major clients are auto manufacturers, branded retail and FMCG companies. Nowadays, company works on Brand Effect measurement technology after the campaigns. http://aitarget.ru Begun online advertising service is one of the largest advertising networks in Russia. Company gained extensive experience in contextual and behavioral technologies and now develops products for RTB-‐sites and advertisers. Since 2014 acts as the solution provider for Rambler-‐SSP, which exclusively sells programmatic on sites of Rambler & Co. 32 Russian Programmatic Market Overview – 2014 www.begun.ru Cqube, one of the first companies in Ukraine, has launched RTB Exchange, built on its own technological platform. The company offers products for advertisers, agencies and sites. In addition to its own SSP, company works with a number of SSP in Russia, Ukraine and the West. http://cqube.net/ Crimtan entered the market in 2009. In Russian market company appeared two years ago. As the DSP operates on proprietary technology it can offer customers flexible solutions. With a lot of experience in the international market, the company boasts a high standard of service and a good understanding of the customers’ needs. www.crimtan.com Criteo is the global leader in high-‐performance advertising, providing its solutions to more than 5,000 companies around the world. Company has about 800 employees in the US, Europe and Asia who serve customers in more than forty countries. In the Russian market the company exists about two years, in it opened its first office in Moscow. http://www.criteo.com/ A young company DuMedia focused on providing retargeting and online shopping services. DuMedia entered the market in February 2014 and is already working with leading Russian SSP. 33 Russian Programmatic Market Overview – 2014 DuMedia works with an AdmitAd, which brings together more than 200 advertisers from the sphere of e-‐ commerce. The company plans expanding range of clients, as well as cooperating with major partners, including Google and Yandex. https://dumedia.ru Company D.C.A. Data-‐Centric Alliance brings together several RTB-‐products for the Russian market: Exebid DSP, Spicy SSP, and FACETz DMP. Company’s own DMP accumulates data on the Internet audience for an extended automated and behavioral targeting. Exebid offers taxonomy audience of more than 700 segments. www.exebid.ru The GetIntent company offers customers a full self-‐service and fast access to RTB-‐inventory. GetIntent is designed for those who are willing to manage their own campaigns. Service is mostly used by small agencies with campaigns budgets from 10.000 rubles. Recently, the company entered the US market and now has more than 50% of the income account for the western market. http://getintent.com/ DoubleClick Bid Manager is Googles’ DSP, which provides a real-‐time control of media purchasing and video advertising on RTB model. Google DBM works with major RTB-‐exchanges in the world (DoubleClick Ad Exchange, AppNexus, FBX, MoPub, etc.), and since August 2014 they include Russian ADFOX SSP. For advertisers is also available Premium package, which allows to get access to additional features of the system: working with “dynamic creative”, broadened targeting capabilities and Look-‐alike. https://www.thinkwithgoogle.com/products/doubleclick-‐bid-‐manager.html 34 Russian Programmatic Market Overview – 2014 The Russian company Hubrus appeared on the market in May 2012. Company has a complete stack RTB-‐ products: DSP, SSP, DMP, Data Exchange and even a separate service for the purchase of a programmable video advertising Vi.Hub. Technical partner and technology provider of a company is Iponweb. The company offers customers the purchase of media, mobile and video advertising. Advertising in social networks plan to add to the arsenal in 2015. http://www.hubrus.com IMarker company offers targeted advertising based on user behavior on the Internet, entered the RTB market in 2014. To obtain data on the behavior, iMarker collaborates with leading ISPs in Russia. The company has its own DMP. http://imarker.ru DSP Intency entered the market only in 2014, but its creators – the Between Digital company operates in the RTB market almost since its inception in Russia with its own SSP-‐platform. Distinctive features are special offers for agencies, Whitelabel DSP and API. Accordingly, the main customers are the DSP buying agencies. http://intency.com/ Kavango company was founded in 2008. It brings together in a single ad space more than 1000 high-‐quality thematic sites. Unique monthly audience reaches to 27 million people aged 12-‐54 years in Russia. Clients of a company are more than 500 companies and brands. Their clients are small and large advertisers, Russian and international businesses, who works through their advertising agencies. http://kavanga.ru/ 35 Russian Programmatic Market Overview – 2014 MADNET — is the first Russian mobile advertising platform which uses Real Time Bidding technology. It is built with respect for the advertising market trends and with the use of cutting edge technology. One of the key features of platform is a system of probabilistic modeling and automated decision-‐making, which enables amazingly accurately predict performance and automatically optimizes ad impressions to achieve maximum results. http://madnetex.com/ One of the largest Internet companies in Russia since mid-‐2013 also has a DSP and a DMP, whose data are used only for company’s clients. Due to this, advertisers can use all abilities of advertising system available to customers on an external traffic. https://mail.ru/ RealWeb company has an extensive experience in programmatic. From 2013 in RealWeb was created an expert team of RTV. At the moment, the agency is working with all the major players of the Russian eco-‐ system of RTB. For customers in addition to third-‐party DSP also used its own DSP system. In the near future will be launched another in-‐house development -‐ ATD (Agency Trading Desks). http://www.realweb.ru/ RTB media service launched in October 2013. The main areas of work: services for algorithmic advertising purchasing in the Internet (Agency trading desk) and management of automated data (Data Management Platform). http://rtb-‐media.ru/ 36 Russian Programmatic Market Overview – 2014 Segmento is a programmatic platform for media advertising placement. The platform based on artificial intelligence algorithms that process data on the customer behavior in the Internet. This allows the platform to predict the actions of users and high precision advertising targeting in all online channels. From 2013 on a platform Segmento conducted more than 500 successful campaigns, including brands such as Hyundai, Intel, S7, Emirates, Paypal, Microsoft, Tikkurila, Ecco, Yulmart, Wikimart and others. www.segmento.ru Company Seopult is tuned for purchase through RTB traffic that affects ranking in search engines. In addition to traditional custom targeting, Seopult offers the “percentage impact on search engine optimization”. The platform can search for users who clicked on the necessary searches and having a positive metric sites. Seopult servicing more than 10,000 of advertisers -‐ the owners of small and medium-‐sized businesses. www.seopult.ru Sociomantic company was founded in Berlin in April 2009. Sociomantic created to work with e-‐commerce, has its own DMP, which aggregates and processes the 1st party and CRM data. Company has more than 200 active customers around the world. In Russia the major clients are the largest online retailers and travel-‐ services: Ozone, Sapato, Ostrovoc, Travelata.ru, Butik.ru, Enter.ru, Mvideo, MediaMarkt, Groupon, Biglion, Wikimart, Quelle.ru, Otto.ru and others. www.sociomantic.ru 37 Russian Programmatic Market Overview – 2014 The operator of selective advertising Soloway offers RTB-‐solutions for platforms (SSPAdRiver), and for advertisers (DSP and DMP). Over the years, Soloway gathered a large network of Internet websites, and now offers auction advertising purchasing. In addition to internal auction, Soloway provides both “open” auctions, collaborating with other SSP in the Russian market. www.soloway.ru The platform of advertising automation Sputnyx began work in 2013. The company develops solutions for the client, as well as developing its own DSP and DMP. The main category of advertisers, which operates the platform -‐ e-‐commerce. Among the clients are the largest online stores in Russia. Sputnyx experts participated in the development of in-‐house DSP Lamoda. www.sputnyx.ru Thumbtack is the Russian-‐American technological company, which specialized in complex information systems for operating large amounts of data. Company helps suppliers to work with “cloud” services andplays as a creator of non-‐relational databases, focused on high loads. Among the customers of Thumbtack are The New York Times, eBay, AppNexus, Gazprom Neft, Forex Club and others. http://www.thumbtack.ru/ Targetix company specializes in the development of innovative technologies in the field of Internet advertising, operates in RTB market since 2013. Company offers semantic technologies, which allows to define the semantics of web pages. The company also developed a machine learning framework, which is used in the prediction CTR algorithm, building look-‐alike conversion models and recommendation systems. http://targetix.net/ 38 Russian Programmatic Market Overview – 2014 Whisla service designed to automate the process of placing contextual and banner advertising on the websites. To accommodation are available more than 200 sites of various subjects. The selection of sites for the affiliate program is performed in manual mode. http://whisla.com/ Bayan-‐2 -‐ is a tool for scheduling display advertising on the pages of Yandex services and Yandex Advertising Network. Bayan-‐2 is designed for employees of advertising agencies, which can without the help of Yandex manager check free advertising sites, to create an advertising campaign plan, evaluate its cost, send a request for advertising, add banners, track ad impressions and budget spending. https://bayan.yandex.ru/ SSP (Sell Side Platforms) ADFOX works on the Internet advertising market since 2005 and provides the technology to manage online, mobile, applications, and online video advertising. In November 2012 company entered the RTB market and opened for commercial use its own platform ADFOX SSP. In September 2014 the ADFOX platform was bought by Yandex. http://adfox.ru/ AdRiver began to work on 15 March 2001 and over this time has become a recognized leader in the Russian market of technological solutions in the field of Internet advertising. AdRiver software provides more than 2 billion hits daily. Today AdRiver have the possibility of selling advertising inventory via AdRiver SSP on any auction model (open, private, direct deal). 39 Russian Programmatic Market Overview – 2014 http://www.adriver.ru/ Between Digital is an integrated platform for managing advertising on the websites, which operates with the usage of RTB technology. Today Between Digital integrated with AdRiver, Begun, CPAExchange, Google, and Retargeter. In December 2013 the company launched its own DSP Intency. In 2014 Between launched programmatic premium functional for the Russian advertising market. http://betweendigital.ru/ Google is an American multinational corporation specializing in Internet-‐related services and products. These include online advertising technologies, search, cloud computing, and software. Most of its profits are derived from AdWords, an online advertising service that places advertising near the list of search results. www.google.ru Rambler is a Russian search engine and one of the biggest Russian web portals. It is owned by the Rambler Media Group and Prof-‐Media since 2006. It was launched in 1996 by Sergey Lysakov and Dmitry Kryukov as a website for Russian speakers. It includes more than 50 premium sites and projects, including: Lenta.ru, Gazeta.ru, Afisha.ru, LiveJournal.com, Championat.com, Rambler.ru portal and others. Programmatic-‐ inventory sold through platform Rambler-‐SSP, created and implemented by Begun, a member of the Rambler & Co. Rambler & Co also develops its own DMP “User Model”. http://www.rambler-‐co.ru Republer is the successor of Kavanga company created in 2013 specifically to work with the site owners. Republer solves the problem of increasing the income of Internet projects, through the placement and optimization of display advertising. The company serves 1,500 sites, formerly part of the network Kavanga. http://republer.ru/ 40 Russian Programmatic Market Overview – 2014 Yandex is a Russian Internet company which operates the largest search engine in Russia with about 60% market share in that country. It also develops a number of Internet-‐based services and products. Yandex ranked as the 4th largest search engine worldwide, based on information from Comscore.com, with more than 150 million searches per day as of April 2012, and more than 50.5 million visitors (all company's services) daily as of February 2013. The company's mission is to provide answers to any questions users have or think about (explicit or implicit). Yandex also has a very large presence in Ukraine and Kazakhstan, providing nearly a third of all search results in those markets and 43% of all search results in Belarus. http://www.yandex.ru/ Trading Desks Automated advertising purchase network Accuen belongs to Omnicom Media Group. The company brings together experts from 60 countries and is a leading global platform for the purchase of advertising using automated data. http://www.accuenmedia.com/ Amnet trading desk was created in response to the technology driven revolution in digital media buying and provides best in class service and expertise in emerging data-‐driven media strategies. Company uses a sophisticated technology stack to target precise audiences and to deliver better business outcomes. http://www.amnetgroup.com/ The project was launched in 2012 and became one of the first Trading desks in the Russian market. In 2014 company launched its own DMP tBh (The Big History). http://www.auditorius.ru/ 41 Russian Programmatic Market Overview – 2014 QUISMA is part of GroupM and WPP, the world number one in media, advertising and communication. A member of IAB Europe and support youronlinechoices.eu, the European initiative for more transparency in behavioural online advertising. Our aim is to work so successfully for our clients that was main one of the world leaders in digital performance marketing. http://www.quisma.com/ru_RU At the global level VivaKi combines global network Digitas, Razorfish, Starcom MediaVest and Zenith Optimedia and enters Publicis Groupe -‐ one of the world's largest advertising and communications holdings. Group communication agencies VivaKi Russia (till July 2008 – Publicis Groupe Media Eurasia) was formed in late 2005 VivaKi -‐ largest group media buying in Russia on the ratings of the RACA and Sostav.ru. http://www.vivaki.ru/ Xaxis is the world's largest technology platform, working in the field of programmatic buying and purchasing classroom in digital media. Xaxis Russia is part of the holding company GroupM Russia -‐ the leading global media holding company. http://www.xaxis.com/ DMP (Data Management Platform) The company offers all RTB-‐market participants solutions for the purchase of an audience using “smart data”. Aidata collects, analyzes, segments and provides data on sex, age, interests and intentions of Internet users. http://www.aidata.me/ 42 Russian Programmatic Market Overview – 2014 FACETz DMP is integrated platform for navigating various kinds of audience datasets, bespoke segmentation and rapid activation through relevant omnichannel communication. Brings together more than 30 data providers, including OpenStat, Imhonet, DSL, LiveInternet, and Pluso, providers of finance, retail and e-‐ commerce. http://www.facetz.net/ RuTarget is Russian adtech company that specializes in developing analysis technologies Big Data, predicting the behavior of users and targeting digital-‐communications with them. On the stack technology RuTarget successfully operating platform Segmento, this provides high-‐tech services for advertising agencies and advertisers. http://www.rutarget.ru/ tBh (The Big History) -‐ DMP from the company Auditorius, which appeared on the market in 2014. Platform engaged in RuNet analytics, collects and analyzes the history of visited Web pages without reference to personal data. http://www.tbighistory.com/ 43 Russian Programmatic Market Overview – 2014 About IAB Russia The Interactive Advertising Bureau (IAB) Russia A non-‐commercial partnership for interactive advertising promotion, a part of an international IAB association. The main objective is to develop the interactive advertising market. IAB successfully operates in 41 countries on 5 continents. The priorities of the Interactive Advertising Bureau (IAB) Russia are: • Educational activities; • The formation of industry standards, guidelines and glossaries; • Conducting industry events, including the MIXX Conference and MIXX Awards; • Conducting researches in the field of Internet advertising, with analyzing international methodologies and practices in this area. Contacts: 127018, Moscow, Polkovaya Street, build. 3.3, 4 floor, tel/fax +7 (495) 662 39 88 Email: [email protected] www.iabrus.ru 44 Russian Programmatic Market Overview – 2014 The research “Russian programmatic market overview” was prepared by IAB Russia Programmatic Working Group Editor: Vera Khiteeva March 2015 – Russian Version April 2015 – English Version For All questions about the Review contact: Irina Shpuntova [email protected] 45
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