Yandex releases report on contextual advertising in Russia

Yandex, the largest search engine in Russia with 55% market share, has released a report on the current state of contextual advertising in Russia. Their data comes from their advertising platform, Yandex Direct and covers the period from January 2006 to June 2007.

Key Findings

Yandex Direct showed 140m adverts per day
1.2/1.3m advert clicks per day
Contextual Advertising turnover amounted to $110m (145% increase on 2005)
Over 50% of the total Russian Internet Advertising budget ($210) is spent on contextual advertising
Customers for contextual advertising increased in 2006 to 60-70%.
Number of conversions on contextual ads on the sites of advertisers has increased by 4x (280%).
Major buyers of contextual advertising are businesses with high product or service cost: manufacturers and suppliers of industrial products (B2B-segment), the construction, automotive, insurance and financial markets. Other growing areas are the business services, tourism and real estate sector.
Most of the traffic for contextual advertising comes from Moscow, equally Moscow advertisers provide over 70% of advertising turnover.

Full report in Russian can be downloaded here (PDF)