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This article was published on April 17, 2013

    In Russia, Internet giant Yandex now matches the country’s top TV channel in advertising revenues

    In Russia, Internet giant Yandex now matches the country’s top TV channel in advertising revenues Image by: Marco Martins
    East-West Digital News
    Story by

    East-West Digital News

    East-West Digital News (EWDN) is the first comprehensive English-language online resource dedicated to Russian digital industries. The s East-West Digital News (EWDN) is the first comprehensive English-language online resource dedicated to Russian digital industries. The site offers a full coverage of Russian market activity, providing news and data directly from Russian sources in English to bridge information gaps between the vibrant innovation markets in Russia and the rest of the world. EWDN offers a comprehensive range of information content – from daily news to in-depth studies – as well as a variety of professional business tools designed to improve business communication between market participants at all levels.

    Editor’s note: This article originally appeared on East-West Digital News, a leading English-language resource on Russian digital industries and related venture activity.

    Illustrating the trend of moving online in the Russian advertising market, search engine giant Yandex saw its advertising revenues equal those of First Channel (“Pervyi Telekanal”), the country’s leading TV channel, for the first time last year.

    According to First Channel’s annual financial results released earlier this week, the TV channel generated 28.2 billion rubles ($896 million) in advertising revenues in 2012, compared to Yandex’s 28.1 billion – including 25.5 billion from text-based advertising.

    In 2011, First Channel generated 28.8 billion rubles, exceeding Yandex by almost 9 billion rubles ($300 million). But the search engine company begun surpassing First Channel in terms of audience as early as April 2012.

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    From an advertiser’s standpoint, however, TV and search engines should not always be regarded as competing for advertising expenditures, said Moscow-based Western marketing expert Bas Godska to East-West Digital News.

    “Due to the noticeable price hike in online advertising over the last few years, TV has a lower cost when looking at cost per contact (reach). Yet from a performance marketing perspective focused on transactions in e-commerce, search advertising makes a lot of sense. If you have the budgets, you should definitely use both channels in tandem,” Godska explained.

    “Google search advertising, for a range of product categories, is somewhat cheaper even though its click volumes in Russia are lower than Yandex,” he noted, referring to the US giant’s relatively small market share – around 25% – in Russia.

    Screen-Shot-2013-02-11-at-23.15.44

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