In my latest post I wrote about advertising expenditures in the Russian market and the affect of the economic crisis on the advertising industry. The turnover of the advertising market in Russia decreased by 14% so far this year in comparison to the same period of 2014 after showing constant growth for several years in a row. Advertisers started shifting budgets into more efficient and measurable channels, such as search advertising – SEM came out as the only medium that saw higher volumes this year.
But how did the crisis really affect your customers? Nielsen’s Consumer Confidence Index sheds some light on changes in Russians’ purchase behavior in 2015.
Expert commission of the Association of Communication Agencies of Russia summarized statistics on the latest development of advertising market in Russia.
The total turnover of the advertising market in Russia in the first three quarters of 2015 landed at 209 billion rubles (slightly over 3 billion Euro), which is 14% lower than in the same period of 2014.
Mobile Internet usage in Russia is increasing and so does smartphone penetration. According to eMarketer, over 58 million Russians own a smartphone, which is 55% of all mobile users and about 40% of the total Russia’s population.
Rapidly increasing adoption of smartphones, and hence mobile apps, has lead to extensive growth of mobile advertising offerings in the market. Apart from traditional mobile ad networks, both global and local (Wapstart being the largest), Internet giants such as Yandex and Mail.ru Group, started creating very interesting products for mobile app promotion.
VK launched their app install ads in October 2014. Later, in early 2015, Mail.ru Group introduced myTarget – an advertising platform merging mobile inventory of Russia’s largest social networks VK, Odnoklassniki and MoiMir. Yandex started offering mobile-specific ads in summer of 2015 and now they are launching their first app promotion format.
Google has been found guilty in a Russian antitrust probe initiated by Yandex earlier this year, reports Vedomosti [in Russian].
Russia’s Federal Antimonopoly Service (FAS) recognized that Google restricts the competition in the market of app stores. Agreeing with Yandex that Google is forcing manufacturers of mobile devices on the Android operating system to give up preset applications that compete with the products. In other words, Google was found guilty of “abusing its dominant market position”. Yandex believes this can help to restore the competition on the mobile market.
Google is expected to be fined with the amount of 1-15% of their turnover in the market where the law violation occurred. “Since we are talking about the market pre-installed app stores, the punishment may not be imposed on the Russian entity of Google, but rather on Google Inc. and Google Ireland,” reports Vedomosti.
This is quite a big ruling since it can lead to similar verdicts in other markets around Europe as well.
The stock exchange was not late to react on the news and Yandex shares soared over 7% on Nasdaq following the regulator’s decision reports NASDAQ.
From this week, you can adjust your bids for Yandex.Direct ads shown to various gender and/or age groups, as well as to your “retargeted” audience (people who have previously visited your website).
It’s not the first time Yandex introduces more options of adjusting CPC for specific categories of ads. In March, a separate bid management for mobile ads was added, which now can be set in combination with the new variables!