Russian platform for placing online advertising CityAds enters the US market
The Russian online advertising platform CityAds Media is entering the US market. The company will open an office in San Francisco. Among its investors is the Klever Internet Investments fund, co-founder of the PIK development group Yuri Zhukov.
CityAds business in the USA will be developed by Nikolay Davydov and investment consulting company Gagarin Capital created by him. According to him, the main goal is to get in the USA in three years a 3-4% share of the advertising market, placed according to the Cost Per Action (CPA) model. This can provide up to 40% of the turnover of the entire CityAds.
Placing online advertising on the CPA model involves payment for the actual result in the form of targeted user actions (ordering goods, filling out a loan application form, registering in an online game, and so on). According to own data as of November 1, 2015, 117 thousand sites and almost 1.5 thousand advertisers are connected to the platform.
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Among its clients are AliExpress , Svyaznoy , Citibank , Russian Standard Bank, Tinkoff Credit Systems and other advertisers from the Financial Services, Online Games, Travels and e-commerce categories. In 2014, Klever Internet Investments Ltd. invested $ 5 million in the company . The remaining co-owners and financial performance of the company are not disclosed.
CityAds has been developing on the international market since 2014. Offices of the company have offices in China, Brazil, Mexico, Malaysia, preparing for the opening of representative offices in India, South Korea, Ireland, Poland and Spain. At the end of 2015, international markets will bring the company 60% of revenue - it is “several tens of millions of dollars,” said Alexander Savchenkov, the founder and executive director of CityAds.
Mr. Savchenkov cites data from JP Morgan, for which the global online advertising market in 2014 amounted to $ 124 billion, and this year it will grow to $ 145 billion. Its US segment in 2014 amounted to $ 43.7 billion and this year should increase by 18%, to $ 51.6 billion.
The Russian online advertising market is estimated by JP Morgan at $ 2.7 billion and by the end of 2015 should grow by only $ 100 million, to $ 2.8 billion.
The main driver of growth of the online advertising market in the coming years will be advertising on mobile devices, analysts of Sberbank CIB write in their report, Russian Media and Internet. From 2015 to 2018, this market, according to their forecasts, will grow by an average of 33% per year. For comparison: in general, the entire online advertising market will grow annually by 14%, the Vedomosti newspaper reports.
“Abroad, we can triple revenues annually over the next few years,” hopes Mr. Savchenkov. Now in the United States are preparing to sign contracts with the first customers, the rate will be made on two main categories of advertisers - the financial sector (banks and insurance companies) and electronic commerce.
The US market is large, but the competition there is much higher than in Russia, Ekaterina Shinkevich, general director of CPAExchange, warns. The American market is so large that if CityAds succeeds in earning there at least a tiny share, the company will be able to realize plans for revenue growth, said the Kommersant source in a large Internet company.
CityAds business in the USA will be developed by Nikolay Davydov and investment consulting company Gagarin Capital created by him. According to him, the main goal is to get in the USA in three years a 3-4% share of the advertising market, placed according to the Cost Per Action (CPA) model. This can provide up to 40% of the turnover of the entire CityAds.
Placing online advertising on the CPA model involves payment for the actual result in the form of targeted user actions (ordering goods, filling out a loan application form, registering in an online game, and so on). According to own data as of November 1, 2015, 117 thousand sites and almost 1.5 thousand advertisers are connected to the platform.
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Among its clients are AliExpress , Svyaznoy , Citibank , Russian Standard Bank, Tinkoff Credit Systems and other advertisers from the Financial Services, Online Games, Travels and e-commerce categories. In 2014, Klever Internet Investments Ltd. invested $ 5 million in the company . The remaining co-owners and financial performance of the company are not disclosed.
CityAds has been developing on the international market since 2014. Offices of the company have offices in China, Brazil, Mexico, Malaysia, preparing for the opening of representative offices in India, South Korea, Ireland, Poland and Spain. At the end of 2015, international markets will bring the company 60% of revenue - it is “several tens of millions of dollars,” said Alexander Savchenkov, the founder and executive director of CityAds.
Mr. Savchenkov cites data from JP Morgan, for which the global online advertising market in 2014 amounted to $ 124 billion, and this year it will grow to $ 145 billion. Its US segment in 2014 amounted to $ 43.7 billion and this year should increase by 18%, to $ 51.6 billion.
The Russian online advertising market is estimated by JP Morgan at $ 2.7 billion and by the end of 2015 should grow by only $ 100 million, to $ 2.8 billion.
The main driver of growth of the online advertising market in the coming years will be advertising on mobile devices, analysts of Sberbank CIB write in their report, Russian Media and Internet. From 2015 to 2018, this market, according to their forecasts, will grow by an average of 33% per year. For comparison: in general, the entire online advertising market will grow annually by 14%, the Vedomosti newspaper reports.
“Abroad, we can triple revenues annually over the next few years,” hopes Mr. Savchenkov. Now in the United States are preparing to sign contracts with the first customers, the rate will be made on two main categories of advertisers - the financial sector (banks and insurance companies) and electronic commerce.
The US market is large, but the competition there is much higher than in Russia, Ekaterina Shinkevich, general director of CPAExchange, warns. The American market is so large that if CityAds succeeds in earning there at least a tiny share, the company will be able to realize plans for revenue growth, said the Kommersant source in a large Internet company.
Source: https://habr.com/ru/post/296490/
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