Competitors against their will: why Yandex and Gazprom-media are forced to fight each other for leadership in the advertising market
For several years in a row, Gazprom-Media has remained the country's largest advertising seller. The company's advertising revenues for 2015 amounted to 57.3 billion rubles. However, the results of the resources of “Yandex” for the same period were better. Internet company earned advertising 58.2 billion rubles. Thus, Yandex has become the leader in terms of revenue in the Russian advertising market.
Advertisers are spending more and more on buying contacts with online audiences. During the crisis, the Internet remained the only media in the country whose revenues grew.
According to the Association of Communication Agencies of Russia ( ACAR ), in 2015, the Russian advertising market as a whole decreased by 10% to 307.5 billion rubles, and the online advertising market grew by 15% to 97 billion rubles.
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Most media holdings in Russia, including Gazprom-Media, mainly earn on television advertising. So far, television is the largest media segment in Russia, both in terms of audience and income. However, the number of TV viewers and the time of watching TV for the last several years have hardly grown, television advertising budgets have increased mainly due to inflation and rising prices for broadcasting. And in 2015, the TV advertising market decreased by 14% to 136.7 billion rubles.
Yandex and Gazprom-Media do not compete for advertising budgets, a Gazprom-Media representative explained to Vedomosti: “Contextual advertisements on the Internet and TV spots solve various tasks of advertisers. We rather complement each other's capabilities. ” Contextual advertising, according to a representative of Gazprom-Media, is more often ordered by advertisers who cannot afford placement on TV: "By attracting advertisers with affordable accommodation, Yandex allows the advertising market to develop as a whole."
The aggregate revenues of Yandex from advertising added 16% last year, including 17% from contextual ads (contextual advertising corresponding to the topic of the search query brings the company 92% of revenue).
Summing up the results of 2015, the CEO of Yandex in Russia, Alexander Shulgin, especially drew attention to a record number of advertisers (more than 394 thousand) in the fourth quarter. Shulgin believes that the company has completed the fourth quarter "with excellent results."
March 30, "Megamind" wrote that "Yandex" is changing the scheme of work with advertisers. Yandex specialists decided that it is worthwhile to combine a support service (solving technical issues) and a department for working with clients (solving all other issues). This will create a “single window” for customer consultation. The new integrated customer service structure will be headed by Natalia Kovaleva.
“We see active development of the SMB segment (small and medium business) on our radars. This segment is growing both extensively - about several thousand new advertisers come to Yandex every month, and intensively - customers of this segment are growing more actively than customers with a large budget, says Natalia Kovaleva.
“We are planning to launch customized development programs for different groups of advertisers. Examples of such work are targeted mailings, topical webinars and video lectures, hints in interfaces, ”she adds.
In addition to merging departments for working with advertisers, Yandex began to connect external advertising platforms to its Yandex.Direct contextual advertising sales system. The first to join the service is the international exchange for the sale of online advertising Smaato .
Two years ago, “Yandex” has already bypassed the country's main television channel, “First,” in terms of revenue, and has become the largest media in Russia, Vedomosti reminds. Then the representative of "Yandex" said that the company works in a different advertising niche than television. However, since then the situation has changed somewhat. The largest television advertisers, including manufacturers of consumer goods, are increasingly using contextual ads in advertising campaigns, admitted to Vedomosti by employees of several large advertising agencies.
Although small business is still prevailing among customers of contextual advertising, but now it is also placed by large companies, they said. “It’s so unequivocal to say that the TV channels and Yandex are not competitors, it’s no longer possible,” says Andrei Brajoviche, general director of advertising Media Direction Group . “There are product categories — for example, retail or automobiles — where contextual advertising and TV spots share one advertising budget.”
Holding Gazprom-Media buys 33.3% of Plaedform LLC and will merge it with its video service Rutube , wrote Megamind on February 4. On the eve of the holding filed a petition for a transaction in the Federal Antimonopoly Service (FAS). According to a Kommersant source, the company is scheduled to be renamed Ruform LLC (Ruform). Pladform is the largest distribution network of legal content in RuNet, allowing the right holder to receive income from advertising in the player.
The deal will expand the distribution network of content of Gazprom-media and ensure its maximum availability on Internet sites. If this happens, the media holding's advertising revenues may increase abruptly, which will make it possible to adequately compete with Yandex in the advertising market in a new format.
Advertisers are spending more and more on buying contacts with online audiences. During the crisis, the Internet remained the only media in the country whose revenues grew.
According to the Association of Communication Agencies of Russia ( ACAR ), in 2015, the Russian advertising market as a whole decreased by 10% to 307.5 billion rubles, and the online advertising market grew by 15% to 97 billion rubles.
')
Most media holdings in Russia, including Gazprom-Media, mainly earn on television advertising. So far, television is the largest media segment in Russia, both in terms of audience and income. However, the number of TV viewers and the time of watching TV for the last several years have hardly grown, television advertising budgets have increased mainly due to inflation and rising prices for broadcasting. And in 2015, the TV advertising market decreased by 14% to 136.7 billion rubles.
In 2015, the advertising revenue of CTC Media holding , managing TV channels CTC, Domashniy, Che and CTC Love, fell by 22%. It turns out that CTC Media is almost two times behind the entire television advertising market.So, one might say, the affairs of Gazprom-Media are going fine. Gazprom-Media sells advertising not only on its TV channels, but also on radio, in the press and on the Internet. Its advertising revenue grew by 3%, while total advertising expenses decreased by 10%, to 307 billion rubles.
Yandex and Gazprom-Media do not compete for advertising budgets, a Gazprom-Media representative explained to Vedomosti: “Contextual advertisements on the Internet and TV spots solve various tasks of advertisers. We rather complement each other's capabilities. ” Contextual advertising, according to a representative of Gazprom-Media, is more often ordered by advertisers who cannot afford placement on TV: "By attracting advertisers with affordable accommodation, Yandex allows the advertising market to develop as a whole."
The aggregate revenues of Yandex from advertising added 16% last year, including 17% from contextual ads (contextual advertising corresponding to the topic of the search query brings the company 92% of revenue).
Summing up the results of 2015, the CEO of Yandex in Russia, Alexander Shulgin, especially drew attention to a record number of advertisers (more than 394 thousand) in the fourth quarter. Shulgin believes that the company has completed the fourth quarter "with excellent results."
March 30, "Megamind" wrote that "Yandex" is changing the scheme of work with advertisers. Yandex specialists decided that it is worthwhile to combine a support service (solving technical issues) and a department for working with clients (solving all other issues). This will create a “single window” for customer consultation. The new integrated customer service structure will be headed by Natalia Kovaleva.
“We see active development of the SMB segment (small and medium business) on our radars. This segment is growing both extensively - about several thousand new advertisers come to Yandex every month, and intensively - customers of this segment are growing more actively than customers with a large budget, says Natalia Kovaleva.
“We are planning to launch customized development programs for different groups of advertisers. Examples of such work are targeted mailings, topical webinars and video lectures, hints in interfaces, ”she adds.
In addition to merging departments for working with advertisers, Yandex began to connect external advertising platforms to its Yandex.Direct contextual advertising sales system. The first to join the service is the international exchange for the sale of online advertising Smaato .
Two years ago, “Yandex” has already bypassed the country's main television channel, “First,” in terms of revenue, and has become the largest media in Russia, Vedomosti reminds. Then the representative of "Yandex" said that the company works in a different advertising niche than television. However, since then the situation has changed somewhat. The largest television advertisers, including manufacturers of consumer goods, are increasingly using contextual ads in advertising campaigns, admitted to Vedomosti by employees of several large advertising agencies.
Although small business is still prevailing among customers of contextual advertising, but now it is also placed by large companies, they said. “It’s so unequivocal to say that the TV channels and Yandex are not competitors, it’s no longer possible,” says Andrei Brajoviche, general director of advertising Media Direction Group . “There are product categories — for example, retail or automobiles — where contextual advertising and TV spots share one advertising budget.”
Holding Gazprom-Media buys 33.3% of Plaedform LLC and will merge it with its video service Rutube , wrote Megamind on February 4. On the eve of the holding filed a petition for a transaction in the Federal Antimonopoly Service (FAS). According to a Kommersant source, the company is scheduled to be renamed Ruform LLC (Ruform). Pladform is the largest distribution network of legal content in RuNet, allowing the right holder to receive income from advertising in the player.
The deal will expand the distribution network of content of Gazprom-media and ensure its maximum availability on Internet sites. If this happens, the media holding's advertising revenues may increase abruptly, which will make it possible to adequately compete with Yandex in the advertising market in a new format.
Source: https://habr.com/ru/post/299856/
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