General Overview of Russian Search Market

Russian Internet sector is undoubtedly one of the most fast-growing sectors of the global web. Number of Internet users and amount of resources invested into internet-advertising is growing very fast.

By the end of 2007 number of Internet users in Russia turned 32 mln people and analysts foresee this figure to reach 35-40 mln people by the end of 2008. Yearly growth of number of people amounts to 20-30%.

By the end of the year the number of national domain names in .RU zone exceeded 700,000, growth worked out 61% per annum. It means that business actively perceives Internet as one of the strongest development instruments.

Russian Search Market

russian search market

Source: LiveInternet.ru

Yandex ( www.yandex.ru ) is the leader in the Russian Internet market , which occupies 48.715% of the market. According to the results of the first quarter of 2006 Yandex share amounted to 51.8%, which means that Yandex lost 3.1%. Yandex’ offerings include web directory, search engine, (text & image), paid advertising/search (local), news, encyclopedia, shopping search, RSS search, online transaction system, games, and geographical maps. Yandex.Direct is its advertising program. The portal/search engine enjoys more than 50 percent share of the total Russian market. Yandex generates around 60 percent of traffic .

The main competitor of Yandex search system is a world leader Google, which forereached Rambler in 2006 and took second place occupying a 21.8% search market share.

For the period of 2006 Google increased its market share by 7.4%. Google established an office in Moscow , Russia , as a part of its global expansion strategy. The company intends to become a major player in the Russian Internet ad market. Improving the search capacity in Russian language is on the company’s list of future activities. Google enjoys an edge over domestic players in Russia, in terms of its offerings, including satellite images. The new office includes an R & D center .

Rambler lost 2.5% of the audience for the last year. Runet currently occupies only 17.21% of the market.

Internet Advertising Market

In 2006 total Internet ad market volume amounted 237 mln USD in Russia (in comparison with the previous year the growth made up 87%). The sum includes:

·Media advertizing – 87 mln. (dynamics growth – 42% per annum)

·PPC advertizing – 102 mln. (dynamics growth – 155% per annum)

·Search engine optimization – 50 mln. (dynamics growth – 60% per annum)

The source: АКАР , MindShare INTERACTION

Search Dominates Online Advertising Market

The search industry is an area of constant transformation. The Web’s widespread reach combined with the overwhelming growth of information has transformed it into a major source to collect data. Search engines act as a gateway for users to find web sites over the Internet. Web searches number in the billions per month. Search dominates online advertising marketing with a share of over 40%, followed by display ads and classifieds.

Online Advertising Market (2006E): Percentage Breakdown of

Various Advertising Forms – Search, Display Ads, Classifieds, Rich Media,

Sponsorship, Referrals, Email, and Others

Apart from this, we should not forget about least popular today, but very perspective in the future, types of Internet advertising, such as social media optimization, viral marketing, hidden marketing. Those are not included into overall market assessment.

According to the forecasts of analysts, Russian Internet ad market should grow to 400 mln USD by the end of 2007 (planned growth 40-70%), when the biggest growth will be observed in context advertising and search optimization.

Fast Internet ad market growth is related with certain problems, as follows:

· Shortage of highly qualified specialists at the market which leads to fast growth of education market in the area of PPC companies’ management, search optimization, web- analytics.

· Absence of complexity of the provided services, limited number of companies providing wide range of services in the area of Internet marketing.

To our thinking, company will transfer from direct services sale to a consulting model in the short run. Analytics and consulting in the area of Internet marketing will grow.

About our company

Our company (Fatum LLC) have been in the IT industry since 1999 and have been involved in a host of companies and projects related to the world wide web and stand alone PC application software. Our web-site www.seo-study.ru was founded in 2006 and now it is very popular web-portal in Russia among SEO specialists. We have the first positing in the most popular search engine in Russia – Yandex.ru for query «SEO», «Google Analytics», «Google AdWords» and for a lot of russian keywords. We always try to publish interesting materials about Internet-marketing as in Russian as in English language. We have written some articles about Russian search market for international portals and magazines. For example, «Search Marketing Standard Magazine» Aug. 2007 edition, other article you can read here

http://www.searchmarketingstandard.com/articles/2007/12/search-engine-marketing-russia-report.html

We offer rather wide number of services beginning from hosting and registration domin names in the RU zone and up to search optimization, PPC advertisement and web-analytics. For details you can visit the following sige: http://www.fatum-spb.ru/ In 2006 we started up the portal, totally dedicated to the guestions of the Internet-marketing, including distance learning in the field of the Internet-marketinghttp://www.SEO-Study.ru. In the immediate future we are going to start a new portal http://www.sem-complex.ru It will higdly tailored site to attract offers for complex Internet-marketing (search optimization, management of PPC systems, web-analytics).

SEO-Study.ru portal is only 2 years old, but it has already occupied the place according to out main queries it is situated on the top positions in all search engines.

For instance, such queries as:

- SEO Courses (In Russian “ курсы SEO”);

- SEO Study (“ обучение SEO”);

- Web-promotion course (“ курсы по раскрутке сайтов ”);

- Internet-marketing education (“ обучение интернет – маркетингу ”);

And many others highly targeted queries.

Besides our sie is situate

ed in TOP 10 for some adjacent, but very high answered queries , such as

- English site promorion

and many others

- SEO

- поисковая оптимизация

- интернет-маркетинг

- google analytics

- google adwords

- продвижение англоязычных сайтов

- оптимизация

Except previous projests our company took part in promotion or such projects as:

- germany.ru

- ams-templates.com

- epn-consulting.ru

- mogmo.com

and many others both Russian-speaking and English-speaking projects.

The first results are usually seen after 2-3 weeks sine the work has been started, buy everything depends on the competitive ability of the concrete field.

If client wants an immediate result though at the beginning, in accordance with the client’s desires, we start up a PPC advertisement. You can interrupt it, but usually we recommend to continue it becausei5 possesses a list of essential advantages, in comparison with the search optimization (our clients using web-analytics are able to see them, and also understand that their costs are compensated and they get good profit.

The work price of site promotion depends on competitive ability of the topic, but on average it varies from $2000 up to $5000 per month

We are always ready work with people from other parts of the world. If your company is going to expand your business into the Russian market, we would be happy to offer our services in helping you achieve your objectives. We have a long and successful history of working in this market and have gained a lot tremendous exposure and experience especially in the Russian Internet Market. If you are interesting in learning more about the Russian Internet Market you can also read my article published in the Search Marketing Standard Magazine’s Aug. 2007 edition, or you can read my book “Search Engine Optimization. Basis. Secrets. Trick” (written in Russian). You can find links to the book and other material at http://www.seo-study.ru/project-news/seo-book/

You can contact me by E-mail Данный адрес e-mail защищен от спам-ботов, Вам необходимо включить Javascript для его просмотра. Alexey Yakovlev