programmatic russia 2015

RussianProgrammaticMarketOverview

2015

©2016,IABRussia

www.iabrus.ru

RussianProgrammaticMarketOverview–2015

1

TableofContents

AboutThisDocument.........................................................................................................................................................2OrderingPartiesoftheResearch..................................................................................................................................3Definitions...............................................................................................................................................................................4ExecutiveSummary.............................................................................................................................................................5StudyMethodology..............................................................................................................................................................6

GlobalMarket..............................................................................................................................................................................7GlobalProgrammaticMarketRevenue.......................................................................................................................7TrendsandEvents.............................................................................................................................................................10BrandsAreEnteringProgrammaticandBuildingUpExpertise...............................................................10InventoryQualityandViewability.........................................................................................................................10ProgrammaticMobileGainsMomentum............................................................................................................11ProgrammaticTV..........................................................................................................................................................13

Forecasts................................................................................................................................................................................14

InRussia......................................................................................................................................................................................15ProgrammaticMarketandVolumeStructureinRussia....................................................................................16AdvertisersCategories................................................................................................................................................20

TrendsandEvents.............................................................................................................................................................22ProgrammaticNowIsMoreThanJustRTB.......................................................................................................22PlayersConsolidationandTechnologiesValue................................................................................................24ProgrammaticIsMasteringMobile.......................................................................................................................25TheDemandforVideoProgrammaticShouldSpurtheSupply................................................................27Native+programmatic=...........................................................................................................................................28

RussianDataMarket.........................................................................................................................................................30Forecasts................................................................................................................................................................................33Appendix1.RussianProgrammaticEcosystem....................................................................................................35Appendix2.RussianProgrammaticMarketPlayers..........................................................................................36AboutIABRussia................................................................................................................................................................47


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AboutThisDocument

“RussianProgrammaticMarketOverview–2015”coversmainrecenteventsandtrendsintheareaofprogrammaticadvertisinginRussiaandabroadsincethebeginningof2015.Thisreviewwillbeuseful for the entire advertising vertical, from advertisers and agencies to tech companies, datasuppliersandmediapublishers.

Forthisoverviewweuseddataobtainedduringtheexpertsurveyoftopmanagersandspecialistsof the leading companies operating in Russian programmatic ad industry, as well as personalinterviewswithmarketexperts.WealsousedsuchopensourcesasforeignandRussianresearchesandsurveys,mediamaterials.

WewouldliketothankthefollowingIABRussiaProgrammaticWorkingGroupandIABRussiaDataMarket Development Working Group experts for participating in the research, as well asrepresentativesofcompaniesthatarenon-membersoftheseWorkingGroups:EminAliev(Criteo),DenisAfanasyev(CleverDATA),MikhailBalakin(CityadsMedia),NikolayBulanov(Xaxis),MikhailGetmanov (Between Digital), Fedor Golubev (Yandex), Nikolay Danilov (Yaznayu), SergeyZhuravlev(Kavanga),DaniilZabolotny(ADLABS),MaximZenin(Mail.ruGroup),AlexeyKashtanov(AmberData), Ilya Lagutin (Aidata.me), Dmitriy Lelis (Kavanga), Anton Melekhov (RTB House),AndreyMolev (AMNET), GennadyNagornov (Auditorius), GlebNikitin (AdSniper), OlegNikolaev(RTB-media), Alexander Papkov (Digital BBDO), Nikita Pasynkov (Yandex), Artyom Rodichev(IPONWEB), Irina Skripnikova (Yandex), Dmitriy Fedoseev (OMD Resolution Russia), AndreyFilatov (Sociomantic Labs), Roman Filippov (Internest-holding), Artyom Tsyplakov (Vivaki),DmitriyCheklov(Hybrid)andKirillChistov(Exebid.DCA).


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OrderingPartiesoftheResearch

ThisoverviewwaspreparedontheinitiativeoftheIABRussiaProgrammaticWorkingGroupandIABRussiaDataMarketDevelopmentWorkingGroup,backedby theGeneralMeetingdecisionoftheIABRussiamembersinOctober2015.

Special contribution was made by the Chairman of the IAB Russia Research Committee AlexeyBelyaev (Mail.ru Group), co-heads of the Programmatic Working Group Vladimir Krivosheev(Rambler&Co) and Alexey Arshinov (Google Russia), co-heads of the Data Market DevelopmentWorking Group Dmitriy Egorov (Weborama), Dmitriy Shkolnikov (Cityads Media), Ivan Lobov(Exebid.DCA)andPresidentofIABRussiaBorisOmelnitskiy(Yandex).

Wewouldliketoexpressgratitudetoall thecompanies-membersofIABRussiathathavefundedthepreparationofthisoverviewandhavemadeanactiveexpertsupport.


4

Definitions

Programmatic is a setofonlineadbuyingmethodsviaautomatedsystemsandspecial tools fordecision-makingbasedonuserprofilesavailablebothtopublisherandadvertiser.

Real-timeBidding (RTB) isatechnologyofsellingandbuyingad impressionsbasedonauctionsheldintherealtime.

Preferreddeals/PrivateAuction is an adbuyingmodelwhere a buyerhas a priority access topublisher’s inventory, fixed prices, set terms of the deal and a possibility of using biddingmechanismsandutilizingaudiencedata.

ProgrammaticGuaranteed isanadbuyingmodelwherethedeal isnegotiateddirectlybetweenbuyer and seller, the inventory and pricing are guaranteed, and the campaign runs at the samepriorityasotherdirectdealsintheadserverbutviaprogrammaticinfrastructure.

DSP(DemandSidePlatform)isaplatformthatallowsagenciesandadvertiserstopurchaseonlineadinventoryviaprogrammaticinfrastructurethroughvariousadvertisingexchanges.

SSP (SellSidePlatform) isaplatformforpublishers thatallowstoautomateadsalesandreceivemorerevenueusingauction-basedpricedetermination.

ATD(AgencyTradingDesk)isacentralizedadbuyingplatformutilizingvariousadmodels.

DMP(DataManagementPlatform)isaplatformthatallowstoorganize,segmentandanalyzedataarraysusedforadtargetinginordertodeliverthemostrelevantandusefuladstoeachuserataparticularmoment.

Data Supplier is a company that sells its own data, raw or processed and synchronized withcookies/IDFA/phonenumber/e-mail/socialIDorotherIDs.

Data Exchange is a platform for interaction of suppliers and buyers of audience profiles andcustomerinformation.

BrandSafety–practicesandtoolsallowingtoensurethatanadwillnotappearinacontextthatcandamagetheadvertiser’sbrand.

ViewableAdImpression–aservedadimpressioncanbeclassifiedasaviewableimpressioniftheadwascontainedintheviewablespaceofthebrowserwindow,onanin-focusbrowsertab,basedonpre-establishedcriteriasuchasthepercentofadpixelswithintheviewablespaceandthelengthoftimetheadisintheviewablespaceofthebrowser.


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ExecutiveSummary

• Throughout theworld in 2015 programmatic for the first time exceeded 50% of displayadvertisingandin2016isforecastedtoreach60%ofit.

• In Russia for the full year 2015 revenues of selling advertising through programmatictechnologiestotaledRUB5billion.Publishersaccountfor62.5%oftotal,techcompanies–for35%,datasuppliers–for2.5%.

• Whiledisplay ad revenues inRussia aredeclining, programmaticmarket for the full year2015grew32%,asadvertisersarewillingtooptimizedisplaybuyingcosts.

• OpenAuction(RTB)madeupnearly73%ofprogrammaticrevenue,while27%relatedtoothermodels,suchasPreferredDeals/PrivateAuctionandProgrammaticGuaranteed.

• The main events on Russian programmatic market are related with technologiesdevelopment, growthof expertise ofmarketparticipants, PremiumProgrammaticmodelsproliferationandnewchannelsmastering,inparticular,videoandmobileprogrammatic.

• In2015revenuesofthird-partydatasuppliersinRussiaamountedtoRUB125million.Themain trendsofdatamarketareactiveusageofDMPopportunitiesandutilizing first- andsecond-party data not only inside private technological stacks of major players andretargetingplatforms,butalsoforconstructingcomplexsegmentswiththehelpofexternalDMPs.

• Increasingproficiencyof advertisers inprogrammatic benefits andactivedevelopmentofProgrammatic Premium technologies allow to expect strong programmatic ad revenuegrowthinthecourseofthenextcoupleofyears.


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StudyMethodology

According to this overviewmethodology, programmatic revenues include revenues from displayads that were bought or sold through OpenRTB protocol with the use of automated systems,decision-makingtoolsandaudiencedatabybothbuysideandsellside.

Inthisstudyweexploretrendsandevents,relatedtothemostprominentRussianindustryplayers,who offer the products that allow advertisers to buy inventory with the use of programmatictechnologies benefits: applying audience data, internal auctions and dynamic optimization of adcampaigns.HovewerifdisplayinventorywassoldoutsideOpenRTBprotocol,itwasnottakenintoaccountwhenestimatingtheprogrammaticmarketsize.

This year the market estimation was done in accordance with the methodology offered by IABGlobal in IABProgrammaticRevenueReport2014Results1.Thereprogrammaticadrevenuesaresegmented into publishers’ and tech companies’ revenues that make the ecosystem work.Additionally,thedatasupplierssegmentwashighlightedinthisoverview.

Techcompanies’revenuesincludetherevenuesofbothbuysideandsellsideplatforms.

The revenues of third-party data suppliers do not include the revenues of utilizing DSP-ownedaudiencedata (they relate toDSPs revenuestructure).Therefore, they includeonly the revenuesfromthird-partydatathatispaidbythebuysideseparately.

In the previous overview, “Russian Programmatic Market Overview – 2014”2 the programmaticmarket was not segmented by publishers, tech companies and data suppliers, though the totalestimatedidimplyallthesecategories.Inthisstudywewillpresentthelastyear’sestimatetakingintoaccountthenewmethodology.

1http://www.iab.com/wp-content/uploads/2015/07/PwC_IAB_Programmatic_Study.pdf2http://iabrus.ru/projects/504


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GlobalMarket

GlobalProgrammaticMarketRevenue

Programmatictechnologieschangetheprocessofbuyingandsellingad inventorythroughouttheworld.Injustafewyearstheyturnedfromafashionabletrendintoanecessarytool.In2015globalprogrammaticmarketforthefirsttimemadeupmorethan50%ofdisplayadmarket(accordingtoZenithOptimediaforecast3),andin2016thisshareisprojectedtoreach60%.

Average annual growth rate of programmatic adspend exceeds 100%, it grew from $5 billion in2012 to $38 billion in 2015. Its further growth is slowing down but ZenithOptimedia analyticsforecastthatby2018twothirdsofdisplayandmobileadvertisingwllbesoldprogrammatically.

According to different research companies’ estimates, the biggest markets in terms ofprogrammaticaretheUS(morethanhalfofglobalprogrammaticmarket),theUK,ChinaandJapan.

In theUS programmatic exceeded50%of display admarket in 2014 and reached (according toIAB) $10.1 billion4. According to eMarketer’s preliminary estimates, in 2015 themarket grew to$15.4 billion or 59% of display ads budgets5. ZenithOptimedia projected the market to grow in2015evenhigher–to$16.8billion.

In the US programmatic is becoming a new norm for ad buying, while directs sales share isdecreasingeveryyear.AsforecastedbyeMarketer,by2017only28%ofdisplayadswillbeboughtwithoutprogrammatictechnologies.

3http://www.zenithoptimedia.com/wp-content/uploads/2015/12/Adspend-forecasts-December-2015-press-release1.pdf4http://www.iab.net/media/file/PwC_IAB_Programmatic_Study.pdf5http://www.emarketer.com/public_media/docs/Programmatic_Advertising_2015-Executive_Summary-10082015.pdf


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Forthemomentthemajorityofprogrammatic inventorythroughouttheworld isboughtthroughopenauctions(RTB).Even intheUS,wherethetrendforPremiumProgrammaticstartedseveralyearsago,RTBaccountsforfull70%ofthemarket.However,theexpertsagreethatinthenextfewyearsthemarketwillshiftsignificantlytowardsothermodels(PrivateAuction,UnreservedFixedRateandAutomatedGuaranteed).

InEurope theprogrammaticmarket isgrowingsteadily for thepast fiveyears.According to IABEurope,in2014programmaticadspendtotaledEUR3.62billion(+70.5%vs.2013).Theresultsforthe full year 2015 haven’t been published yet, but IAB Europe study6 showed that 90% ofpublishersin29countriesplannedtoincreasetheirprogrammaticrevenuesbythemiddleof2016,40%ofthoseplannedtoincreaseitsignificantly–byone-third.

The UK continues to be the leading programmatic market in Europe and is estimated to reach$2.96billionin2015(66%morevs.2014)7.UKprogrammaticshareofdisplayadsiscomparabletotheUSandaccountsfor59%.

Chineseprogrammaticmarketshowedexplosivegrowthin2015andwasforecastedtoreach44%ofdigitaladspendinthecountry(or$6.26billion).eMarketerestimatesthatin2016forthefirsttimemorethanhalfofdigitaldisplayadvertisinginChinawillbetransactedprogrammatically.Themajor impact on this surge comes from e-commerce giant Alibaba, search company Baidu andsocialmedia companyTencent– all three companies together takeupabout90%of theChineseprogrammaticmarket.8

In Japan programmatic ad spend in 2015was estimated to total $2.13 billion,where half of themoneyaccountedformobileprogrammatic.9

6http://www.iabeurope.eu/research-thought-leadership/iab-europe-attitudes-towards-programmatic-advertising-report/7http://www.emarketer.com/Article/UK-Programmatic-Display-Ad-Spending-Will-Surpass-2-Billion-2016/10129418http://www.emarketer.com/Article/Programmatic-Ad-Spending-China-Growing-Rapidly/10135429http://www.emarketer.com/Article/Programmatic-Ad-Spend-Japan-Reaches-Mobile-Tipping-Point/1013165


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In terms of programmatic share of display Russia is now lagging significantly from the leadingmarkets, however, judgingby the emerging trends of programmatic buying implementation, it iscatchingupthesecountries.Wehaveoutlinedthemaintrendsinprogrammaticthatwererelevantfor themainmarkets in theUSandEurope in2015andare likely tobecome themain trendsof2016-2017inourcountry.


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TrendsandEvents

BrandsAreEnteringProgrammaticandBuildingUpExpertiseForresterResearchandtheAssociationofNationalAdvertisers(ANA)surveyed128ANAmembersontheuseofprogrammatictechnologiesin2015.Accordingtothestudy,79%ofrespondentssaidtheymadeprogrammaticbuysinthelastyear.That’smorethantwicethe35%whoacknowledgeddoingsointhepreviousreportin2014.10

The more money brands spend on programmatic ad buying, the more severe requirements forcostseffectivenesstheyimpose.Newrequestsforcampaignresultsevaluation,qualityofinventoryand clarity of audience data sourcesmove forward the technology development and lead to thegreatermarkettransparency.

Advertisers want to see the real winning bid price, know on what assets their ad was shown,understandwhatfeegoestotechnologicalintermediaries.TheservicesofferedbytheplayersoftheUS and European programmatic market allow to track all these indicators and monitor theirdynamics.

Multiply surveys in the US show that big brands’ marketers build up their expertise inprogrammaticyearbyyear.Inordertomonitorhowtherequirementstoqualityandbudgetspendarefulfilled,majoradvertiserstendtoshiftprogrammaticbuyingin-houseoratleastbuildateamofcompetentprofessionalswhowillcooperatewithagenciesandsupervisetheirwork.

Inconnectionwiththismoreandmoretoolsappearforadvertiserstocalculatethecostoffutureadcampaignsbasedontheuseofvarioustechnologies.ThusIABhasreleasedTheFeeTransparencyCalculator11whereanadvertisercanentercampaigndetailsandexpectedresultsandthenaccessintherealtimethefeesofalladditionalparticipansinthebrand-publisherchain,aswellasidentifytheoverallimpactoftheuseofthesetechnologicalsolutions.

InventoryQualityandViewabilityAdvertisersputforwardmorestringentrequirementsforthequalityandvisibilityofpurchasedadinventory.Forexample,GroupManditsclientUnileverinlate2014madealistofrequirementsforthevideoadplacement.12Accordingtoit,100%oftheadplayermustbeinviewandatleast50%ofthevideomustbeplayedwhileinview(withthesoundon);andtheusermustpressplay,insteadofanauto-start.Unileverisreadytopayonlyfortheimpressionsthatmeetthesecriteria.

10http://marketingland.com/anaforrester-survey-most-marketers-buy-ads-programmatically-but-are-not-happy-about-fraud-and-transparency-16763811http://www.iab.com/guidelines/iab-programmatic-fee-transparency-calculator/12http://blogs.wsj.com/cmo/2014/10/24/groupm-and-unilever-push-publishers-for-more-proof-ads-are-being-seen/


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Major publisher and tech companies, taking into account advertisers’ wishes and observing thegeneral guidelines, areworking on the ad viewability. According to the commonly accepted IABguidelines,forabanneradtobedeemedviewed,50%oftheadshouldbeviewableformorethanonesecond.

In September 2015 Google introduced vCPMs, a new product that allows publishers to selladvertisingonthepayperviewableimpressions.Thetechnologyforecastswhenanimpressionisabsolutelyviewableandautomatestheprocessofdeliveringfullviewabilitytoadvertisersthatarewilling to pay a premium for the guarantee. Among the first partner to try this productwas thepublisherIDGCommunications,whichisbehindsitesincludingPCWorldandMacWorld.

Followingit,AppNexuslaunchedViewableMarketplace,thatperformsthesamefunctionsandcanworkwithanypublisher(Google’svCPMsisavailableonlyforGoogleDisplayNetwork).

InRussiaYandexusesitsowncriteriafordefiningdisplayadviewability:animpressionisdeemedto be viewed only if at least 50%of the banner is in an active browserwindow for at least twoseconds.ThistimerequirementistwicethatoftheIAB’sviewableadimpressionguidelines.Suchadifference is due to Yandex’s long-term studies on determining theminimum time duringwhichusers can get acquainted with the ad message and make a motivated click. This technology ofstringentviewabilityregistrationisusedinYandexauctionforallbannerplacementsandworksonitsproprietoryassests,aswellasonYandexAdNetworkpartnersites.

At the same time,market participants havemade efforts to clean the inventory out of fraud andarbitration, so to make it safer for major brands that are actively embracing programmatic.LiveRail,Facebook’sopenRTBplatform,in2015joinedthegrowingnumberofadexchangesthatbannedadnetworksfrombuyingadinventoryforfurtherreselling.

Malware, fraud and low-quality traffic became such hot topics that three largest industryassociations–IAB,AmericanAssociationofAdvertisingAgencies(4A’s)andAssociationofNationalAdvertisers (ANA) – created a joint cross-industry accountability program to develop standardsandmethodsofcombattingpooradinventory.13

ProgrammaticMobileGainsMomentumTheemergenceofnewtoolsfordatausageandmeasurementofmobileadcampaignseffectivenesspushed the development of mobile programmatic. Now marketers are looking for new, moreefficientadformatsthatprovidevastreachandhighperformance.

Whilein2014programmaticmobileingeneralwasoneofthemostdiscussedtrends,ayearlateratthe conferences and in professional media people already were talking about increasingmobile

13http://www.iab.com/news/4as-and-ana-join-iab-in-launching-cross-industry-compliance-organization-to-combat-ad-fraud-malware-piracy/


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performance through developing various formats, in particular programmatic native andprogrammaticvideoads.

Some analysts believe14 that in 2015 spending on programmatically purchased mobile ads overtook desktop and totaled $9.33 billion, that is 60.5% of overall US programmatic ad spending. ThisisindirectlyconfirmedbyGoogle’sobservationthatintheweekleadinguptoBlackFriday last holiday shopping season, more than 60% of impressions bought or soldprogrammaticallythroughDoubleClickcamefrommobile.15

However, the majority of this market is occupied by Google, Facebook and Twitter withProgrammaticDirectplacements,whereasopenauctionsinprogrammaticmobileaccountforonly35%ofthose$9.33billion.

Sincevideoconsumptiononmobiledevicesisgrowingyearafteryear,videoadbudgetsinevitablyshifttowardmobileaswell.In2015mobilevideobecamethefastestgrowingsegmentofUSdigitaladmarket.Andadtechcompaniesaretryingtogetinvolvedintothispromisingmarketandofferadvertisers additional methods of automation and campaigns optimization. Judging by majoradvertisers’ opinions we will see a significant increase in the budgets for programmatic mobilevideoin2016along.

LuisdiComo,SeniorVicePresidentGlobalMediaatUnileverobserved16intheForbescommentary:“Recent research from the Mobile Marketing Association shows the effectiveness of mobileadvertising and, in particular, the strength of mobile video advertising combined with data andcontexttargeting.”This,hesays,dovetailswithwhatUnileverisalsoseeing.“Videohaslongplayedan important role in building Unilever brands and now that consumers are spendingmore and

14http://www.emarketer.com/public_media/docs/Programmatic_Advertising_2015-Executive_Summary-10082015.pdf15http://adexchanger.com/investment/google-touts-traction-mobile-ads-youtubes-trueview-q4/16http://www.forbes.com/sites/peggyannesalz/2016/01/12/why-mobile-video-advertising-will-eat-the-world/


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moretimewithmobilemediaUnileverisworkingtounderstandhowbesttousemobilevideoandothermobileadformats.”

ProgrammaticTVAutomatingbuyingoftelevisionadvertisingiswhatwassaidaboutalotin2015.Obviously,suchatraditionalmediaasTVwillslowlyadoptnewmethodsofadplacement,butthefirststepsinthisdirectionhavealreadybeenmade,andaccordingtoMagnaGlobalresearch,4%ofTVadbudgets,or$2.5billionweresoldprogrammaticallyin2015.17

Programmatic TV is designed to optimize TV ad placement based on more accurate knowledgeabouttheaudiencethanjustsimpleTVratings.Therealgrowthofthischannelispredictedtooccurin the next few years, when digital TV operators start embedding into set-top-boxes specificmodulestodemonstratedifferentcommercicalstodifferentviewers.TheseveryoperatorswillalsobedatasuppliersalongwithSmartTVvendors,whowillanalyzeusers’profilesdependingontheirTVviewinghabits.

Themajormarket drivers will be not the largest TV channels (which even now don’t have anyproblemswithadsales),butregional,cableandnichechannels,whereadvertisersarenowratherhesitanttobuyadpackages,andinfuturetheywillbeabletobuythereagranularadimpressiontargetingapotentialcustomer.

InRussia in theearly2016DentsuAegisNetwork communicationgroupand the largestRussiansales-house Vi announced creating a programmatic platform, that allows to place advertisingcampaignsinbroadcastTVinonlinemode.ThenewproductisbasedonVi’ssoftwaredevelopmentVIMB,adplacementautomatedsystem.Itcarriesoutfulltechnologicalcycleofimplementationofmediaadopportunities,unitingallstakeholdersinasingleplace.In2016theplatformwillbeusedintestmodeaspartofanexclusivepartnership.18

17http://adage.com/article/agency-news/programmatic-tv-climb-10-billion-global-tv-budgets-2019/298786/18http://www.sostav.ru/publication/vi-i-dentsu-aegis-network-zapuskayut-programmatic-tv-21208.html


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Forecasts

AccordingtoZenithOptimediaforecasts,in2016programmaticwillmakeup60%ofglobaldisplayadmarket.19

IntheUSwhereprogrammaticmarketstarteddevelopingbeforeall,themarketisexpectedtogrowbynearly40%20in2016toreach$21.55billion.Furthergrowthratewilldecline,butby2017morethan70%ofUSdisplayadvertisingwillbesoldprogrammatically.

Researchersintheirforecastsrelyonthedevelopmentofmobileandvideoprogrammatic.

AccordingtoeMarketer,by2017videoprogrammaticwilltakeup75%ofUSvideoadmarket,andthe only constraint is the lack of available inventory. In Europe this market segment is alsoforecasted to win its share. Programmatic will reach half of video admarket in the UK and theNetherlands by 2019, and in France – by 2020. This year in European countries 10% to 43%ofvideoadswillbesoldprogrammatically.21

IntheUKin2016programmaticmarketisexpectedtogrowby37%toreach$4.12billion.ThiswillallowtheleadingEuropeanmarkettobypasstheUSintermsofprogrammaticshareofdisplayadmarket(70%).58.7%willaccounttoprogrammaticmobile.22

InChinathisyearprogrammaticmayalsotakethemostofdisplayadmarket.Itisexpectedtogrowby48%tototal$9.29billion.23

19http://www.zenithoptimedia.com/shop/forecasts/programmatic-marketing-forecasts-2015/20http://www.emarketer.com/public_media/docs/Programmatic_Advertising_2015-Executive_Summary-10082015.pdf21http://www.emarketer.com/Article/Europes-Programmatic-Video-Ad-Revenues-Will-Near-2-Billion-2020/101305522http://www.emarketer.com/Article/UK-Programmatic-Display-Ad-Spending-Will-Surpass-2-Billion-2016/101294123http://www.emarketer.com/Article/Programmatic-Ad-Spending-China-Growing-Rapidly/1013542


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InRussia

AccordingtoRACAstudy“AdMarketVolumein2015bytheMeansofDistribution”24,virtuallyallsegmentsofRussianadvertisingmarketshowedanegativetrend.ThetotalvolumeofadrevenuesamountedtonearlyRUB307billion,whichis10%lessthanin2014.

Like in the last year, online was the only ad market segment, which showed growth: it totaledRUB97billion,thatis15%morecomparingto2014.Onlinehastraditionallybecomethesecond-largestsegmentbyrevenue,itsshareinthetotalmarketvolumeexceeded30%.

Search advertising continues to be themain driver of online segment: it grew by 20% to reachRUB78.3 billion. Online display (includes banner and video ads) declined by 2%, and totaledRUB18.7billion.

Insearchofthemosteffectivemarketingtoolsadvertisersareincreasinglyturningtheirattentionto programmatic, which has ceased to be perceived solely as a low-cost open auction and hasbecomeaneffectivetoolforreachingtherightaudienceusingavarietyofmodelsandadvertisingformats.

Increaseduseofaudiencedata,PremiumProgrammaticmodeldevelopmentandtheemergenceofnewformatsledtothefactthatRussianprogrammaticrevenuesgrewby32%,fromRUB3.8billionin2014toRUB5billionin2015.

AlexeyArshinov,Google:“In2015thetwodeterminingfactorsclashed:thecurrenteconomicconditions,thatareforcingcompaniestofightevenmorevigorouslyfortheeffectivenessofad

placementbudgets,and thepresenceofa "criticalmass"of technologies, toolsandexpertise

that enable to meet this challenge. Obviously expected growth of context and search ad

segmentswassupportedbythegrowthofprogrammaticchannel”.

24http://www.akarussia.ru/knowledge/market_size/id6462


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ProgrammaticMarketandVolumeStructureinRussia

Accordingtothisoverviewmethodology,programmaticrevenuesincluderevenuefromdisplayadsthatwereboughtorsoldthroughOpenRTBprotocolwiththeuseofautomatedsystems,decision-makingtoolsandaudiencedatabybothbuysideandsellside.

This includes revenues by publishers, tech companies that make the ecosystem work and datasuppliers.Adagenciesrevenuesarenotincluded.

In2014RussianprogrammaticmarketwasestimatedtototalRUB3.8billion,includingpublishers’and tech companies’ revenues. In compliance with the new methodology we present Russianprogrammaticmarketsegmentatonbythecompanytype.

Publishersrevenuesin2014accountedformorethan64%ofprogrammaticmarketvolume,thatis,in accordance with the market estimate in “Russian Programmatic Market Overview – 2014”25,makes up nearly RUB 2.5 billion. According to RACA estimates, in 2014 in Russia publishers’revenues from display ad sales totaled RUB 19.1 billion. Therefore, programmatic share ofpublishers’ revenues is 13%. Additional 35% of total programmatic market (RUB 1.3 billion)accountedtoadtechcompanies.Third-partydatasuppliers’sharein2014wasinsignificant.

25http://iabrus.ru/projects/504


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In2015theoverallprogrammaticrevenueinRussiaisestimatedtoreachRUB5billion.Itis32%morecomparingtothepreviousyear.

Programmatic share of publishers’ revenues from display ad sales in 2015 was 16.7%, that isRUB3.12billioninaccordancewithRACA’sdisplayadmarketestimamtes(RUB18.7billion).


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Publishers’revenuesaccountedto62.5%ofRussianprogrammaticmarket,further35%accountedtorevenuesofadtechcompaniesthatmaketheecosystemwork,and2.5%-todatasuppliers.

The revenues of third-party data suppliers do not include the revenues of utilizing DSP-ownedaudiencedata (they relate toDSPs revenue structure).Therefore, they includeonly the revenuesfromthird-partydatathatispaidbythebuysideseparately.


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Nearly73%oftheinventorysoldprogrammaticallyin2015inRussiaaccountedforOpenAuctiondeals (RTB), while 27% related to other models, such as Preferred Deals/Private Auction andProgrammaticGuaranteed.

Vladimir Krivosheev, Rambler&Co: “Major publishers’ revenue structure from

programmatic display offerings is usually strongly shifted towards direct deals, private

auctionsandsaleofproprietaryaudienceproducts.Thereasonsaresignificanceofaudience

reachingeneralsplit,high-qualityinventory,predictabilityofaudienceproducts’performace,

volumeguaranteeandbookingopportunities. Second-and third-tierpublishershave limited

capabilities in independent sales and therefore have to rely on selling inventory throughad

exchangesandthird-partyadproducts.Openauctionwilldominateintherevenuestructureof

such publishers. Site reach, unique knowledge about the audience, data processing

technologies and skills of turning obtained knowledge into a competitive audience product

allowpublisherstocountonthesteadilyhighinterestfromthebuyside.


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AdvertisersCategoriesComparingwiththepreviousyear,therearesomechangesintop-5advertisers’categoriesamongthosewhouseprogrammatic.

The first place is retained by “Retail” (including e-commerce). These advertisers use RTBopportunities more actively than others, in particular, various types of retargeting as a tool ofincreasingsales.

In2015“FinancialSevices” left thetop-5categories, itsmarketshare isstillprettyhigh(about5-6%),buttheactivityofpharmaceuticalcompaniesforcedittoshifttothe6thposition.

“Drugs&Supplements”categoryshowedgrowthandmoveddromthe7thtothe5thposition.Theseadvertisers are increasing ad activity in all media year over year. According to TNS estimates,pharmaceuticalcompaniesaccout formorethan20%ofalladbudgetsontheRussianmarket.Atthe same time, while overall ad budgers are declining, this category in 2015 didn’t reduce butincreasedadspendingby8%.26

“FMCG”and“Automotive”categoriesshowhighactivityontheprogrammaticmarket.2015hasalsobecame a time of active experiments with programmatic for the real estate industry. Expertssupposethatforthefullyearof2016thiscategorycanentertop-5advertisers’categoriesamongthosewhouseprogrammatic.

DmitryFedoseev,OMDResolutionRussia: “In2015we sawmanyclients turning towardsprogrammaticbuying.Theyareprimarilyautomotiveandtelecomcategories.”

Nikolay Bulanov, Xaxis: “In my opinion, the top categories did not change drasticallycompared to thepreviousyear. Iwouldlike tonote thatAutomotiveandFMCG this yearare

muchmoreactiveinprogrammatic,soperhaps,bytheyear-endFMCGwillovertaketelecom

operators in this ranking. Pharmaceutical companies also have a good chance to take a

significantshareofprogrammatic.”

26http://www.sostav.ru/publication/p-and-g-vernul-liderstvo-v-rejtinge-reklamodatelej-21297.html


21

According to a survey of market experts, the five most active advertisers’ categories that usedprogrammaticforpurchasingadinventory,areasfollows:

Top-5AdvertisersCategories,RankedbyProgrammaticSpending

2014 2015

1. Retail(includinge-commerce) 1. Retail(includinge-commerce)

2. Automotivemanufacturersanddealers 2. Automotivemanufacturersanddealers

3. Telecomandmobileoperators 3. Consumergoodsandservices(includingFMCG)

4. Bankingandfinance 4. Telecomandmobileoperators

5. Consumergoodsandservices(includingFMCG) 5. Drugsandsupplements

RomanNester,Segmento:“In2015Russianagenciesandbrandswereactivelymasteringthepossibilitiesofalgorithmicbuying.Someadcampaignshadmechanicsthatwerenot inferior

toUSandEuropeancases.Flagshipsofchangeswere,asusual,automotiveandFMCGbrands.

Unfortunately,weseeatremendousinertiafromtraditionalsaleshousesandtheirpartners.In

my opinion, in 2016 those brands who are slowly changing their buying approach and are

keen on “testing” the technologies for a full year or even two,will lose considerablemoney,

comparedwiththeirfastercompetitors."


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TrendsandEvents

All Russian ad market players, including publishers, ad agencies and advertisers, continueevaluating the benefits of programmatic technologies. In 2015 major brands and premiumpublishers started being actively involved into programmatic market. The main trends ofprogrammaticin2015arethedevelopmentofPreferredDeals(PrivateAuction)andProgrammaticGuaranteedmodels, the increased use of data in ad sales, emergence of new ad formats and theproliferationofmobileandvideochannels.

AlexeyArshinov,Google:“Iwouldhighlightthefollowingpointsofgrowth,whichwillremainrelevantin2016aswell:connectingalargeamountofinventory(includingpremium)tothe

main Traffic Exchanges; critical pressure by advertisers and agencies to shift significant

budgetsharesintoprogrammatic(thisalsoexplainstheapparentsuccessofthemajorbrands

in Europe and theUSwhen placed in programmatically); the beginning of the datamarket

formation,wherethedataisavailablefortargeting.”

ProgrammaticNowIsMoreThanJustRTBIn2015nearly73%ofprogrammaticmarketinRussiaaccountedtoOpenAuction(viaRTB)model,but theshareofPremiumProgrammatic isgrowingeveryyear.Thismaynotbeveryobvious forthe total market, but even now certain premium publishers obtain more than 90% of totalprogrammaticadrevenuefromnon-auctionbasedmodels.

Vladimir Krivosheev, Rambler&Co: “We launched the first Programmatic PremiumMarketplaceinRussiaattheendof2014andoverthepastyearwewerecompletelycertainin

thecorrectnessoftheselecteddirection.High-qualityaudienceproductcreatedonthesellside

and implemented through programmatic direct and preferred deals channels, is the most

demanded solution on the market. It is absolutely obvious that advertisers’ and agencies’

interestinbuyingadsonpremiumsitesalgorithmicallywillcontinuetogrow.Thisgrowthwill

bethemaindriverofprogrammaticmarketinthecomingyears."

NikolayBulanov,Xaxis:“Thedemandforsuchplacementsisratherhighandwecanfeelthelack of quality inventory. So-called Programmatic Guaranteed is in the particular demand

right now,when the advertiser does not simply buy quality traffic on quality sites, but also

receivesguaranteesonthetrafficvolumefromthepublisher.”

Bigbrandspaygreatattentiontothecontentenvironmentoftheiradplacementsandwanttohaveguaranteesoftheabsenceofdubioustrafficintheadinventory.

At the same time, most of the premium publishers are still hesitant to put their inventory inprogrammaticchannels,asaudiencebuyingforthemcanbeakindofathreattotheirbusiness:thecostof inventorysoldprogrammaticallyissignificantly lowerwhencomparedtodirectsales.Thesolution of this dilemma lies in the development of Programmatic Premium models: PreferredDeals(PrivateAuction)andProgrammaticGuaranteed(ProgrammaticDirect).


23

PreferredDeals/PrivateAuction is anadbuyingmodelwhereabuyerhas apriority access topublisher’s inventory, fixed prices and terms of the deal, and a possibility of using biddingmechanismsandutilizingaudiencedata.

ProgrammaticGuaranteed isanadbuyingmodelwherethedeal isnegotiateddirectlybetweenbuyer and seller, the inventory and pricing are guaranteed, and the campaign runs at the samepriorityasotherdirectdealsintheadserverbutviaprogrammaticinfrastructure.

ByusingProgrammaticPremium,advertisersareabletobuyinventoryonlyonthesitestheyhaveselected,thoughwithalltheadvantagesofprogrammatictechnologies.Theimpressionsaresoldonpre-negotiated prices, and audieince targeting and optimization technologies are applied in thecourseofthecampaign.

NikitaPasynkov,Yandex:“Weseeastrongdemandfromlargeadvertisersforprogrammaticbuying of premium publishers’ inventory, and from these publishers – for the tools towork

with thisnewtypeofdemand.At the sametime,programmatic is justapartof thebroader

advertisingstrategyforbothbuysideandsellside,thereforetheyneedsolutionsforcombining

traditionalandprogrammaticsalesinbothOpenandPrivateAuction.Thatiswhyweprovide

publisherswith the ability tomanage all kinds ofmonetization throughADFOX technology,

andadvertisersandagencies–withallbuyingtoolsthroughYandex.Display.”

OlgaKulbashnik,Avito:"Lastyearwesawastrongdemandforprivatedealsfrommajoradgroupsandlocalagencies(beforethatalmost100%ofourprogrammatictransactionswere

done through an open auction). This year we see even more active players: now some

customershavetheirownaccountsintheDSP,andtheagenciesthathaveneverspecializedin

displaybefore,alsoshowtheirinterestindirectdeals."

Sincethebeginningof2015,severalRussianprogrammaticplayershaveannouncedthelaunchofspecific products for advertisers and ad agencies, thatmake automated access for programmaticinventoryofpremiumandnichesitesaseasyaspossible.OneoftheexamplesisBetweenSelectbyBetweenDigital.

MikhailGetmanov,BetweenDigital:"In2015themarketclearlydelineatedthedemandforprogrammaticpurchaseofqualitypublishers’ inventory. In thiscaseweare talkingnotonly

aboutthepremiumsites,butmostlyaboutthesecond-andthird-tiernichesites,thatcouldbe

convenienttopurchasewithoutworryingaboutthequalityofcontent,trafficandaudience.To

satisfy this need, BetweenDigital has launcheda special productBetween Select. As part of

thisprojectweformadpackagesoutofnichesites,unitedbyasingleidentifier(dealID)foran

easy targetingonDSPside.CPM in thesepackages is somewhathigher thantheaverage for

thesesitesinanopenauction,butthisisoffsetbyhigherperformanceoftraffic."

InMarch 2015mediaholding RBC signed a partnership deal with AMNET (a part of the DentsuAegisNetworkcommunicationgroup).According to it,AMNETcreates customer segmentsbasedon first- and third-party data andbuys targeted ad impressions onRBC assets in the formof adpackages through an auctionwith prices fixed for each individual client. PrivateAuction is done


24

throughDoubleClickBidManager system.The first advertiser to testProgrammaticPremiumonRBCwasLumia(Microsoft).27

InMarch2016asapartofthepremiumprogrammaticinventoryexpansion,myTargetadvertisingplatformbroughttogetherthelargestfemale-orientedsitesintheRunet:LadyMail.Ru,Woman.ruandStarhit.ru.Thetotalmonthlyreachofthesesitesis14.7millionusers.Allkindsoftargetingareavailable in this package at no extra charge – geo, reach&frequency, gender and age, income,interests, TV viewing, search and behavioral retargeting, CRM segments, data from third-partyDMPs.28

Also inMarch2016classifiedssiteAvitoentered theProgrammaticGuaranteedmarket.The firstcampaign on Avito was launched by the digital ad agency Realweb through DoubleClick BidManagerplatformforthebank"Tochka"(FG"Otkrytie").29

PlayersConsolidationandTechnologiesValueOntheonehand,thecrisisyearof2015promptedadvertiserstoseekeffectivewaysofadplacing,whichresulted in thegrowthofprogrammaticmarket.Ontheotherhand, it forcedcompanies topay more attention to technology and expertise offered by ad tech suppliers and to make newrequirementsfortransparencyandperformanceofadcampaigns.

Atthesametime,theperiodofmassiveinvestmentsinemergingtechstartupshascometoanend,and those who could not gain the course were forced to announce the closure. During 2015, anumberofplayers,whopreviouslyloudlydeclaredthemselvesattheformingstageofthemarket,abandonedit.

Roman Nester, Segmento: "2015 proved the benefits of long-term investments in complextechnologiesondigitalmarket:strongtechnologycompanieswereacquiredbylargerplayers,

weakcompanieseitherleftthemarketorhavelittleinfluenceonit."

In the beginning of January 2015 Rollad project announced its closure. The company used todevelop theauction,participating inwhichwould take intoaccount the following indicators, thatareofaninteresttotheadvertiser:thecostofimpression,clicks,actions,advertisingperformanceorconversionsonsite.

InMarch2015,Sberbankacquireda controlling stake in theadplatformSegmento.According tothe bank’s press release, the platform, which is based on artificial intelligence and Big Datatechnologies,willallowSberbanktousethelargestinRussiacustomerbehaviordataset.30

27http://www.sostav.ru/publication/rbk-perekhodit-na-programmatic-15755.html28https://corp.mail.ru/ru/press/releases/9551/29http://www.realweb.ru/blog/sobytiya/avito-i-rialveb-zapustili-chastnuyu-sdelku-po-modeli-programmatic-guaranteed-na-platforme-doubleclic/30http://www.rbc.ru/technology_and_media/12/03/2015/54c25d589a79478439e57458


25

LastyearDSPHubrusceaseditsoperation,theteamsisnowconcentratingonthedevelopmentofcontextuallytargetedvideoadvertisingwithinacompanyViHub.

InNovember2015programmaticplatformExebid.DCAannounceditsexpansionbytheadditionof"ProgrammaticTechnologies”team,thatusedtorepresentBritishtechcompanyCrimtaninRussiaforthepastfouryears.31

AmongthenewplayersappearedintheRussianmarketin2015,itisworthnotinganinternationalcompany RTB House, that specializes in the development of online retargeting and RTB-basedsolutions.InMarch2015itestablisheditsbranchinMoscow.Thecompanybelievesthatfocusingonthe long-termpresence inRussia isastrategic investment in itsowndevelopment,asRussianretargetingsegmenthasastronggrowthpotential.32

GennadyNagornov,Auditorius:"Animportantresultofprogrammaticmarket inRussiain2015isamultiplegrowthofcustomerswhousetechnologiesand,hence,amultiplegrowthof

budgets. 2016 will be dedicated to the more active market education. It is important for

decision-makers to understand whom to trust and where to invest their money. After all,

programmatic’sobjective is tohelpadvertisersmakemoremoney,and for this choosing the

rightpartnersisveryimportant.

Therequirementsfortheprogrammaticcampaignresultsarebecomingsevere,andnotevery

team can create solutions that will suit smart customers (the number of which constantly

increases).2016willbetheyearofresonatingcomingouts,aswellastheyearwhenthevalue

ofproprietarytechnologywillriseonthefirstplace."

ProgrammaticIsMasteringMobileAccording toa study “RussianMediaand Internet”bySberbankCIB,mobileadvertisingaccountsforabout28%ofthetotalonlineadvertisingmarketinRussia.33InaccordancewithRACA’sonlineadmarketestimate34,themobilesegmentthereforeequalstoRUB27billion.SberbankCIBanalystspredict mobile advertising market to grow in 2015-2018 at a pace of 33% annually, which issignificantlyaheadoftotalonlineadmarket’sgrowthrate(14%peryear).

TheseforecastsaresupportedbymobileInternetusedata inourcountry.AccordingtoTNSWebIndex35,outof83millionInternetusersinRussia53milliongoonlinefrommobiledevices.Asforthe Internet penetration by age groups, it is worth noting that young people (15-24 years old)finally gave preference to mobile Internet in October 2014, while in the adult category (25-44years)itishappeningrightnow.

31http://adindex.ru/news/agencies/2015/11/26/130253.phtml32https://www.rtbhouse.com/ru/rtb-house-otkryvaet-svoe-predstavitelstvo-v-rossii/33https://www.vedomosti.ru/technology/articles/2015/11/12/616601-rinok-internet-reklami34http://www.akarussia.ru/knowledge/market_size/id646235http://adindex.ru/news/digital/2015/12/2/130417.phtml


26

Inrespondtothegrowingdemandformobileinventory,thelargestplayersonRussianmarketareexpandingtheirmobileofferings.

Fedor Golubev, Yandex: "We see a growing demand from our advertisers for thecommunication with mobile audience. In 2015 we launched a display auction on mobile

versionsofYandexandYAN,whichincludesbothsitesandmobileapplications.Inadditiontoa

widerangeofstandardtargetingsthereareavailableones,morespecific formobiledevices.

Apartfromthatitisworthnotingthecapabilityofcreatinglocallygeo-targetedbanners.They

aredisplayedonlytouserswhoareincloseproximitytotheselectedgeographicalpoint."

InMarch 2016 Yandex announced the start of integrating external ad platformswith its systemYandex. Direct. Advertisers now can place ads not only on the Yandex search results and YANpartner sites, but also on third-party publishers and mobile apps. The first partner to join theplatform is the international ad exchange Smaato. Yandex. Direct will integrate all Smaato’spublishersthatareavailableinRussiaandmeetYandexrequirements.

AtthesametimeMail.rualsostrengthensitspresenceonthemobilemarket– it integratesthird-party applications and mobile networks aggregators with its platform MyTarget. According toDmitry Sergeyev (Deputy CEO of Mail.Ru Group), the Group dominates the mobile advertisingmarketandprovidesmorethan50%ofallmobiletrafficinRussia.36

MobileprogrammaticwasoneofthemostanticipatedtrendsontheRussianprogrammaticmarketin2015.AccordingtotheexpertsinterviewedbyIABRussia,todaymobileaccountsfornearly15%ofprogrammaticadmarketinRussia.

During2015severalRussiantechcompaniesofferedmobileprogrammaticproductsinalleligibleformats,includingvideoandrichmedia.In2016theyexpectthefurthergrowthofmobileshareofprogrammatic.

In July 2015 the new player appeared on Russian mobile ad market – MobiSharks agency. Itsdistinctivefeatureistheemploymentofnotonlyautomatedbuyingmodels,butmanualcampaignoptimization as well. The company’s plans include consolidation of all major mobile platformswithinitssystemandafullstackofmobileinventory.

InSeptember2015Data-CentricAlliancelaunchedanewtechnologysolutionforadvertisers,whichallows to extend the reach of programmatic campaigns by adding iOs and Android apps users.Initially,theplatformwillbringtogethermobileappinventorytotaling12billionimpressionspermonth.

36http://www.vedomosti.ru/technology/articles/2016/03/30/635733-yandeks-reklami


27

TheDemandforVideoProgrammaticShouldSpurtheSupplyAdvertisersareincreasinglyutilizingvideoadvertisingnotonlyforthevastreach,butasawaytocommunicate with specific target audiences as well. Technology plays an important role in thedevelopmentofvideoadvertising:varioustypesoftargeting,auction-basedpricingmodelandvastopportunitiesofevaluatingadcampaignperformancegiveonlinevideoadditionaladvantage.

Irina Skripnikova, Yandex: "Yandex video ad network provides a significant amount ofprogrammatic audience sales compared to simple reach-based ones. A large part of them

though is still soldata fixedprice.This is due to the fact thatprice-lists containall eligible

audience segments, while the auction-based method of selling Yandex video network until

recentlyincludedonlysocio-demographictargeting.Atthesametime90%ofgeneric(reach-

based)salescomefromCPVproduct-100%completedviews."

According to the IABRussiastudy“RussianDigitalVideoAdMarketOverview–2015”37, in2015videoadmarketinRussiatotaledRUB5.6-5.8billion.InaccordancewithRACA’sestimatesontotalRussian ad market, it comprised 32% of online display segment. IAB estimates that throughprogrammatic went 10-15% of in-stream video adspend and 30% of out-stream. Therefore,programmaticmadeup16%ofdigitalvideosegment,orRUB800million.

As Russianmarket participants state, today advertisers’ demand for programmatic video is verylarge and even exceeds the supply. There is not enough quality video inventory available forprogrammaticbuyingtomeetthisgrowingdemand.

MaximZenin,Mail.Ru:“ProgrammaticvideoholdsastrongpositionintheRunet,showingasteady growth in terms of inventory, budgets and the number of advertisers. Unfortunately,

largesellersdonothurrytoopentheirvideoinventoryforathird-partypurchase,sonowthe

amount of premium video inventory, available to be bought programmatically, is extremely

small.”

Nikolay Bulanov, Xaxis: “The demand for programmatic video is strongly growing, manyRussian leading video publishers are experimenting with video programmatic from the

beginningof2015.Thisyearthetrendisdevelopingfurther,andin2016-2017themarketwill

obviouslywitness theappearanceofcompletelynewofferings in thisarea.Wecanseemany

successfulcasesacrossallindustries:Auto,FMCG,Retail,Finance,Pharma.”

Oneofthelargetssuppliersofprogrammaticvideoinventoryin2015wasYouTube,butintheendof thevlast yearGoogleannounced the terminationofYouTubead inventory sales through third-party DSPs. Starting January 1, 2016 advertising in this channel can be bought only throughDoubleClickBidManager(DBM)andAdWords,andonlyonapay-per-viewbasis.

Google’schangeinthecorporatepositionandagrowingdemandforprogrammaticvideoopensupgreat opportunities forpublisherswith legal video content. This yearmarketparticipants expect

37http://iabrus.ru/news/639


28

major Russian video sales houses to enter programmatic. In October 2015 CEO Amnet AndrewMolevreportedthatDentsuAegisNetworkin2016expectedprogrammatictoappearonpremiumvideoinventoryoftwolargestRussianvideosellers,IMHOViandGazprom-MediaDigital.

Alexey Arshinov, Google: "Youtube’s decision to make its inventory available exclusivelythrough DBM and Adwords, made a number of possible inconvenience for clients and ad

agencieswhonowhave to “readjust" for thenewTrueViewpaymentmodel.However, inmy

opinion, thishascreatedextramotivation forvideocontentowners todevelop thisdirection

andmonetize videomore easily, offering it in theusual formof CPM.AfterYoutubehas left

AdX,anincreaseddemandforvideoinventoryformedandthisisgreatnewsforpublishers."

Native+programmatic=Nativeadvertising includesvarious typesofad formatsmessages, seamlesslyplaced into thesitecontent.Itcouldbepaidblocksonsocialnetworks,recommendationsinappstoresorcontextuallyrelevantadunitsplacedinthebodyofthenewsarticle.

Duetothefactthatthisadvertisingisrelevanttothepagecontent,itisbetterperceivedbyuserandshowsenhancedviewabilityandmessageeffectiveness.10%ofarticlesinthedigitalversionofTheNew-YorkTimesalreadycontainnativeadvertising38,LinkedIngets45%of its ad revenues fromnativeadvertising39,andinmobileFacebookAudienceNetworkshareofnativereaches83%40.

First global native programmatic product was announced in 2013 by the largest programmaticplatformXaxisandadiscussionserviceDisqus. In the following fewyears,major techcompaniessuchasOpenXandVivaKi,onebyoneofferedadvertiserstheirownproductsandtechnologiesforunitingnativeadvertisingandprogrammaticbuying.

InteractiveAdvertisingBureauisactivelyworkingonthestandardizationofthisnewadformat.InJanuary2015 IABupdatedOpenRTBprotocol toversion2.3, and themain innovation in thisAPIspecificationversionwasthesupportofnativeadvertisingprecisely.

GeorgyLevin,GetIntent: "After IABreleasedtheupdate,GetIntent immediatelyswitchedtothenewprotocol,butonlystartingthefourthquarterof2015ourAmericanclientsbeganthe

first testsandarenowactivelyworkingwithnative formats. InRussiawehavenot runany

native campaign through programmatic, as the market has almost no inventory. Another

reason is the lack of Russian SSPs that are ready toworkwith native formats. I think that

native programmatic in Russia may never appear in the open auction entirely, it can go

straighttoProgrammaticDirectinstead.”

38http://adage.com/article/media/york-times-sold-18-2-million-worth-native-ads/296966/39http://digiday.com/publishers/linkedin-native-ads/40https://www.facebook.com/audiencenetwork/news-and-insights/native-advertising-forecast-2020


29

In our country, the trend for native programmatic outside the social networks is in its infancy.Russian social networks, in pace withmajor American and European ones, are actively offeringnativeadvertisinginusernewsfeeds:advertiserscanplacepromotionalpostsandtext-and-imageunitsin“Odnoklassniki”(ok.ru)and“Vkontakte”(vk.com)usingallpossiblekindsoftargetingandMyTargetinternalauctionsystem.

MaximZenin,Mail.Ru:"NativeformatsinsocialnetworksareamongtheabsoluteleadersintermsofpurchasesthroughMyTarget.Theyshowconsistentlyhighperformanceforvirtually

anytypeofcampaign."

In2015thefirststepsweremadetodevelopnativeprogrammaticchannelforsponsoredcontent,though also within a private stack. Rambler & Co launched Programmatic Native Advertisingproduct, which allows to show advertising articles in the editorial content with precision andefficiencyofprogrammaticadvertising.Audience targeting isdone throughRambler’sDMP“UserModel”, and theuseofprogrammatic technologyallows tooptimizeplacement towardsaudiencesegmentsthatdemonstratethegreatestinterestinthecontent.41

Vladimir Krivosheev, Rambler&Co: “Out of all existing native formats, advertorials hastraditionally demonstrated the highest level of audience engagement. In 2015 we applied

programmatic as the most progressive of the existing methods of ad targeting and

optimizationtothebestnativeadvertisingmedia.Wecreatedtoolstoaccuratelymeasurethe

effectivenessandlaunchedtheproductontheaudienceofpremiumsites,coveringmorethan

40millionpeoplepermonth.NativeProgrammaticplacementsdemonstrateimpressiveresults

thatarevalidatedthroughresearchconductedbyindependentonlinepanels.InRambler&Co

weplaceextraemphasisonNativeProgrammaticproductdevelopmentin2016.”

41http://rambler-co.ru/live/programmatic-native-advertising-novyj-reklamnyj-produkt-na-ploschadkah-ramblerandco


30

RussianDataMarket

Russian data market in 2015 has just started the process of formation and is in its infancycomparedtotheglobalmarket.AdvertisersareonlybeginningtoexperimentwiththeuseofDSPcapabilities,first-partyandthird-partydatainadcampaigns.Despitethefactthatdatapurchasingaccounts for only 2.5% of companies’ revenues from advertising sold through programmaticchannels,expertsseeapositivetrendinthedevelopmentofthismarket.

Third-partydatamarketforbuyingonlineadsinRussiaamountedtoRUB125millionin2015and,followingtheoutlinedtrends,willactivelygrowinthecurrentyear.

DmitryEgorov,Weborama:"In2015,thebasisforRussiandatamarketwasestablishedbothin terms of the ecosystem formation, and advertisers having a better understanding of the

ways they can use data management platforms (DMPs). One of the trends is the clearly

increasinginterestinthefulluseofsuchplatforms.Outofmorepractice-relatedareasI’dlike

topointoutworkingwithmediadata(second-partydata)andsolvingtheproblemsofcross-

deviceuseridentification.Judgingbytheresultsofthefirstmonthsof2016wecanconfidently

predictthefurtheractivegrowthofdatamarket.”

AlmosteveryDSPonRussianmarkethasitsowndataprocessingplatform,andprogrammaticadbuysinRussiain2015wereheldmostlywiththeuseofthisaudiencedata,availableinDSPatnoextracharge.However,inordertoimprovetheaccuracyandeffectivenessofaudiencedataandsoto improve campaign performance, advertisers and agencies are increasingly applying paid datafromthird-partysuppliers.

Data Supplier is a company that sells its own data, raw or processed and synchronized withcookies/IDFA/phonenumber/e-mail/socialIDorotherIDs.

On the Russian market operate raw data suppliers (Pluso, AddThis, Openstat, UsefulData,Surfingbird, RedHelper, HotLog, AlterGeo, etc.), as well as processed data suppliers (Avito,AmberData,Facetz,HH,Weborama,tbh,ClearData,NousData,Soloway,etc.).

AnnaKuzmenko,Exebid.DCA:"ManyRussiancompaniesfromcompletelydifferentindustriesbegan implementing their ownprojectsand showingactive interest indatamarketandBig

Datatechnologies.Majoraggregatorsstartedofferingservicesonthebasisoftheirdata.There

appearedfull-fledgedplatformsthatallowcompaniestosolvetheirproblemswiththeuseof

externaldepersonalizeddata,includingdataexchanges,wheredatasuppliersanddatabuyers

canfindeachother,negotiateoncommercialtermsandestablishtechnicalintegration."

Data Exchange is a platform for interaction of suppliers and buyers of audience profiles andcustomerinformation.

Data Exchange sells raw branded data and has a fullMarketplace technology. There are severalplatformsinRussiathatprovidetheinteractionofdatasuppliersanddatabuyers.Inadditiontothe


31

largest exchange Google DDP (DoubleClick Data Platform), CleverData and its product DataMarketingCloudcanalsohelpmonetizeaccumulateddata,sellingitouttomanybuyersatonce.

IndependentDMPs(DataManagementPlatforms)startedbeingactivelyusedfortheaggregationofall kinds of data fromdifferent sources, processing and synthesizing it into audienceprofiles forlater use in ad campaigns. An important difference of DMP from Data Supplier is the ability totransfer audience data to any buying platform (DSP) or publisher’s admanagement system (AdServer).DMPisnottiedtoaparticulartrafficsourceorplatformandcaneasilybeintegratedintoany media space. The largest DMPs on the Russian market are AiData, Facetz.DCA, Weborama,CleverData,AmberData.

DMP(DataManagementPlatform)isaplatformthatallowstoorganize,segmentandanalyzedataarraysusedforadtargetinginordertodeliverthemostrelevantandusefuladstoeachuserataparticularmoment.

Oneofthetrendsof2015,notedbyalmostallmarketparticipants,isthebeginningofutilizingfirst-partydata(advertiser’sowndata)inprogrammaticcampaigns,togetherwithsecond-partydata–data collected in the course of the campaign, not only within the private technological stack oflargestplayers and retargeting services, but also for the constructionof complex segmentsusingexternalDMPs’resources.

First-party data is advertiser’s proprietary data, information collected through user interactionwiththewebsite,dataonperformedactions,purchasehistory,otherbrandcommunications, leadgenerationdatabases,subscriptoninformationetc.storedincorporateCRMandloyaltyprogramsdatabases.

Using1stpartydata forad targetinggivesan impressiveeffect, as itbrings together informationabouttheusers,thatarealreadyinterestedinthebrand’sproductorservice.

The first experiments of using propriatery data in Russia have shown good results. However,despitealltheindisputablebenefitsofsuchdata,thereisonedrawback-itslimitation.Averysmallpercentage of advertisers can accumulate the amount of data about their own audience, that issufficientforprovidingthenecessarycampaignreach.

In this regard, Russian advertisers have begun assessing the large prospects of utilizing second-partydata.

Second-partydata is data collectedby ad servers in the courseof brand’s ad campaign:bannerclickthroughs, page views, completion of specific actions, user’s social activity. Also second-partydataincludesproprietarydataofotheradvertisers,thattheyarewillingtoshareforcarryingbrandadcampaign.

Thescopeofsecond-partydataapplicationisverybroad.Suchdatacanbeusedeffectivelyforadcampaigns,andthevolumeofthisdatacanbeexpandedthroughtheuseoflook-aliketechnologies,thatinthereal-timemodefindonlineusers,whoaresimilartothosecommiteddesirableactions,andaddtheirprofilesintotargetingdatasheet.


32

Brandcanusethedata,collectedduringthepreviouscampaigns,forfurthertargetingpreciselytothoseusers,whoreactedinacertainwaytoanadinthatpreviouscampaign.Orthisdatacanhelpexcludefromtargetingthoseusersthatwerealreadyexposedtothebanner.

DmitryEgorov,Weborama:"During2015thelargestadvertisershaveformedastrategyofusing media data in programmatic activities. In particular, the use of ad placements’ data

allowstoimplementstrategiesofincrementingreach,frequencyorretargetingtothoseusers

whohavecompletedthevideoview.Themostcommonstrategyisincrementingunduplicated

reach to the direct placement, that allows to minimize the overlap between direct and

programmaticflights(theintersectionislessthan1%).”

According to a survey of market experts, in 2015 first-party data was used for 15% ofprogrammaticadinventoryinRussia,second-partydatawasusedfor10%ofit.

In2016expertsestimatethedatamarketgrowthtobeprovidedthroughtheincreaseduseofDMPcapabilitiesbythebuyside,theincreasedamountofdatasuppliersandgrowthofdatamarketformobileaudience.

Anna Kuzmenko, Exebid.DCA: "In 2015 everyone waited for offline data to come toprogrammaticanditseemedtohavecome.2016willbetheyearofmobiledata,atleastwein

theDCAare investingresources in thisdirectionandobservingapositive feedback fromthe

market.Thecombatwithbotswillcontinue,filteringtechnologieswillperfect.Thedataitself

will become more "connected", there will appear noticeable independent providers of such

links,asthemarketforthemisready.”


33

Forecasts

Market experts forecast that in 2016 publishers’ revenues from the sale of programmaticadvertisinginRussiawillexceed20%oftotalmediaadvertisingmarket.Takingintoaccounttheadtech revenues and the growing share of data suppliers’ revenues, the projected amount ofprogrammaticadvertisinginRussiawillexceedRUB6billion.

Marketgrowth, in the firstplace,willbeprovidedbytheproliferationofPremiumProgrammaticmodels,arrivalofbigbrandsandpremiumpublisherstoaudiencebuyingandtheincreaseduseofdata.Expertsexpectfurthergrowthofvideoandmobileshareinthetotalprogrammaticmarket.

AlexeyArshinov,Google:Themainprogrammatictrendin2016shouldbethedevelopmentofProgrammaticPremium.Themarketisscarcelyovercomingtheinternalinertiaandismore

often launching campaigns through private auction tools and guaranteed programmatic

deals.”

NikolayBulanov,Xaxis:"Russianprogrammaticmarketin2016willgrowattheexpenseofincreasing share of videoprogrammatic anda long-awaited start ofmassive programmatic

sales by numerous premiumpublishers. This process is only gainingmomentum, so it has a

greatpotentialforthecomingyears.

At the same time therewill be quite a strong programmatic inflation, i.e. average CPMwill

continue increasingdue to the fact that clients andadagencies have come to the following

conclusion: the inventory, which can be bought through an open auction and networks (at

leastthatofanacceptablequality)isveryverylimited,andtheleadersofdisplayadmarket

should enter programmatic. Publishers, for their part,matured to understand how towork

with programmatic efficiently, and that when used properly, it does not cannibalize direct

sales,but,onthecontrary,increasesthem.


34

DmitryEgorov,Weborama: "In2016,BigDataapproachwill allow to collectandanalyzeaudience data from all marketing activities and to turn unstructured stream of online and

offline data into a single user profile. This will contribute to the growth of programmatic

mobile and programmatic TV channels as brandswill be able to customize communication

withrealpeople,notwiththeirdevices.”


35

Appendix1.RussianProgrammaticEcosystem


36

Appendix2.RussianProgrammaticMarketPlayers

DSP(DemandSidePlatform)

AdSniper operates on themarket since 2013. It is an automatic ad placement system,modifyingcostsinreal-timeaccordingtothechangesinthecampaignresults.ItoffersDSPandDMPservices,aproprietarysystemofaudiencebuildingandlook-aliketargetingmechanisms.Thesystemfocuseson performance-based buyings (active click, registration, transaction) and is suitable for CPAclients.

http://adsniper.ru

Aitarget istheonlyFacebookreseller inRussiaandamarketingpartnerofInstagram.Company’sactivity is focused on mobile advertising, including social video. It works with its own DMPAidata.me.

http://www.aitarget.ru/

AuditoriusProgrammaticBuyingPlatformistheleadingRussianindependentcompanyinthefieldofRTB/programmaticanddatamanagement.AccordingtoDigitalIndexitistheplatform#1bythequality of client experience (2015) and aided awareness (2014, 2015). Auditorius has a stack offollowingtechnologies:AuditoriusTD(programmatictradingdesk),AuditoriusDSP(aplatformforbuyingad inventory forprogrammaticcampaigns),AuditoriusDMP(aplatform fordatastoriage,analysisandusage),tBH(TheBigHistory–aproprietarysupplierofthird-partydata).

http://www.auditorius.ru/


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Begun online ad service is one of the largest advertising networks in Russia. Company gainedextensive experience in contextual and behavioral technologies and now develops products forRTB-sites and advertisers. Since 2014 it acts as a solution provider for Rambler-SSP, whichexclusivelysellsprogrammaticinventoryofRambler&Coassets.

www.begun.ru

Criteo is the global leader in high-performance advertising, providing its solutions tomore than5,000companiesaroundtheworld.Thecompanyhasabout800employeesintheUS,EuropeandAsiawho serve customers inmore than forty countries. In 2014 Criteo opened its first office inMoscow,Russia.

http://www.criteo.com

Exebid.DCA is a programmatic platform (DSP), a subsidiary of D.C.A. Data-Centric Alliance.Exebid.DCAtechnologyimplementshighlyperformingdigitalcampaingsonthebasisofdataaboutRunet audience.More that 2,000 audience segments are available through the proprietaryDMP.Exebid.DCAisapartofawholeDCAprogrammaticecosystemtogetherwithoneofthebiggestDMPinRussiaandaproprietarySSP.

www.exebid.ru

GetIntent is an international tech company that provides a transparent and fast access toprogrammatic infrastructure. It has proprietary technologies and machine learning algorithms.GetIntent DSPworks as a self-service platform and helps advertisers create campaigns, managethem and optimize ad budgets. Core technologiy is licensed to other ad companies as RTBSuiteproduct.GetIntentworkswithalladformats:desktop,video,mobile,native.

http://getintent.com/


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DoubleClickBidManagerisDSPbyGoogle,whichprovidesareal-timecontrolofmediapurchasingandvideoadvertisingonRTBmodel.GoogleDBMworkswithmajorRTB-exchanges in theworld(DoubleClickAdExchange,AppNexus,FBX,MoPub,etc.).TheplatformisapartofGoogle’sglobalinfrastructureandisfullyintegratedwithDoubleClickDigitalMarketing.

https://www.thinkwithgoogle.com/products/doubleclick-bid-manager.html

Russian company that works with its own stack of programmatic technologies: DSP, SSP, DMP,TradingDesk.Hybridoffersefficientproductsforsmallandmiddlebusinesses,majorinternationalbrandsandadagencies.

http://hybrid.ru/

iMarkercompanyoffers targetedadvertisingbasedonuserbehavioronthe Internet,enteredtheRTBmarket in 2014. To obtain data on the behavior, iMarker collaborates with leading ISPs inRussia.ThecompanyhasalsoitsownDMP.

http://imarker.ru

KavangaDSPcomprisesadinventoryofmorethan100nichesitesandadexchanges.KavangaDSPprovidesusefultoolsforfastlaunchandadcampaignsmanagements.Thecorefeatureisdisplayadplacementsondigitalmediasites.

http://kavanga.ru/


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Mail.RuGroup is the leading Internetcompany inEuropeand is the1st largest Internetbusinessglobally, based on the average minutes per visitor. It develops a unified integrated platform ofcommunication and entertainment online services. The company owns Russia’s leading emailservice and one of Russia’s largest internet portals, Mail.Ru. The company operates Russianlanguage social networks VKontakte (VK), Odnoklassniki (OK) and Moi Mir (My World), andRussia's largestonlinegames.Thecompany’sportfolioalsoincludesAgentMail.RuandICQ–twoinstantmessagingservicespopularinRussiaandCIS.

https://corp.mail.ru

RealWeb has worked in the digital marketing field since 1998 and has managed to gain vastexperienceanddeepunderstandingofInternettechnologies.RealWebisoneoftheoldestandmostskilleddigitalmarketingagencies inRussia.For themoment itpartnerswith themainplayersofRussianRTB-ecosystem.ForitsclientsthecompanyalsoprovidesaproprietaryDSPplatformandisnowworkingonitsownATD.

http://www.realweb.ru

RTBHouseisoneoffewcompaniesintheworldthatmanagedtodevelopandimplementitsowntechnology for purchasing advertisements in the RTB model and one of the most dynamicallydevelopingEuropeantechcompanies.Overthelast3yearsithaslauncheditsoperationsintensofdifferent countries ofEurope,withmost recent kick-offs in theAsia andPacific region andLatinAmerica.Theteamismadeupofover100people:performancemarketingexperts,analysts,salesandcustomercarespecialists,programmersandothers.

https://www.rtbhouse.com


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RTB-Media is a service for ad agencies anddirect advertisers that helps tomanagemediabuyingwith theuseofmodernprogrammatic technologies.The companywas founded in2014with thesupportofImpulceVCandMoscowSeedFund.Forthebeginningof2016theofficesareopenedinMoscow,OdessaandSan-Francisco.

http://rtb-media.ru/

Segmento is a platform that uses artificial intellect and Big Data processing technologies for theextra precise ad targeting. Among the clients are major brands (Hyundai, S7, PayPal etc.), adagencies and online-retailers. The platform manages advertising on all main channels: banners,videoandmobile.Since2015itisapartoftheSberbankGroup.

www.segmento.ru

SociomanticLabs,adunnhumbycompany,providesprogrammaticsolutionsforonline,mobilewebandin-appdisplayadvertising.Thecompany’sproprietarytechnologyenablestheworld’sleadingadvertisers to harness the value of first-party data assets to deliver individually personalized,dynamicadsforthefullcustomerjourney.Thisresultsinbroaderreach,morenewcustomersandincreasedloyaltyofexistingcustomers.SociomantichasbeenprofitablesinceitsfoundinginBerlinin2009andhasgrownorganicallytomorethan250employeesservingover70countriesacrosssixcontinentstoday.

https://www.sociomantic.com/

Soloway is a system for programmatic display campaigns. Unlike other companies, Solowayoptimizescampaignsimmediately,ontheend-customer’sKPIs:targetedactions,orders,sales.Highadperformanceisprovidedbyproprietaryalgorithms.

www.soloway.ru


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Sputnyx is a programmatic ad platform that started operating in 2013. The company developssolutionsforexternalclientsandalsoworksonitsownDSPandDMP.Themainadvertisercategoryis ecommerce; the clients are the largest online-retailers inRussia. Sputnyx specialists have alsoparticipatedindevelopingLamodaDSP.

http://www.sputnyx.ru/

Yandex.DisplayisatoolforplanningdisplayadplacementsonYandexservicesandacrossYandexAdvertisingNetwork(YAN).ItisdesignedforadagencieswhocanwithoutYandex’smanagercheckthe availability of inventory, create ad campaign plan, evaluate the cost, sent an ad placementrequest,uploadbanners,trackadimpressionsandadspend.

https://display.yandex.ru/

SSP(SellSidePlatform)

ADFOX was founded in 2005 by experts with years of experience in marketing, advertising,customer service and programming. ADFOX offers services to all participants of the online admarket: publishers, advertisers, ad networkss, selling and buying agencies in terms of providinginfrastructural services for planning, carrying out and analyzing advertising, BTL and PRcampaigns. ADFOX technologies are integrated with Yandex Advertising Network, that unitesthrough RTB auction banners from DSPs, Yandex.Direct listings and Yandex display ads, whichguaranteesahighincomeforpublishers.

http://adfox.ru/


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AdRiverstartedworkingin2011andoverthistimehasbecomearecognizedleaderintheRussianmarketoftechnologicalsolutionsinthefieldofonlineadvertising.AdRiversoftwareprovidesmorethan 4 billion hits daily. Today AdRiver has the possibility of selling advertising inventory viaAdRiverSSPthroughanyauctionmodel(open,private,directdeal).

http://www.adriver.ru/

BetweenDigital,commerciallylaunchedintheendof2012,isanintegratedplatformformanagingadvertisingonthewebsites,whichoperateswiththeusageofRTBtechnology.InDecember2013the company launched its ownDSP Intency and in 2014 – programmatic premium solutions forRussianadmarket.

http://betweendigital.ru/

DoubleClick Ad Exchange (AdX) lets publishers get the maximum revenue from every adimpression thoroughoutall channels.This is theonlyadauctionwhereallmaindemandsourcesare available in real-time, in particular, Google’s Context-Display Network. Besides this, AdX isintegratedwithDFPadplatform.

https://www.doubleclickbygoogle.com/solutions/revenue-management/dfp/

Rambler & Co was formed in 2013 following the merger of two important Internet groups,Rambler-Afisha and SUPmedia. The group controls a number of onlinemedia outlets, includingAfisha.ru,Lenta.ruandMotor.ru,aswellascontextualadvertisingserviceBegun.Rambler.ruusedtobeRussia’s leadingsearchengineinthe1990sbutnow,witharound1%ofthesearchmarket,Ramblerpositionsitselfasamediatechplatform,aggregatingcontentfrom2,000publishersacrossthe country. Programmatic inventory is sold through Rambler-SSP platform, created andimplementedby“Begun”.AlsoRambler&CodevelopsitsproprietaryDMP“UserModel”.

http://www.rambler-co.ru


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Republer is thesuccessorof “Kavanga”,a real time tradingplatformspecifically forpublishers. Itincreasesrevenuesofonlinesitesbyplacingandoptimizingdisplayads.Thecompanyserves1,500publishers,whousedtobein“Kavanga”adnetwork.

http://republer.ru/

Spicy.DCAisanSSP-platformforadmanagementofsitesandappsondesktop,mobileandinSmartTV. It is based on DCA’s own solutions and allows to maximize the revenue from selling adinventory.

http://sspicy.ru/

YandexisoneofthelargestEuropeaninternetcompanies,providingawidevarietyofsearchandotheronlineservices.Yandex'smissionistohelpuserssolvetheireverydayproblemsbybuildingpeople-centric products and services. Yandex announced the launch of its proprietary RTB-platform in March 2012. For the moment it already has several DSPs connected, including thecompany’sownYandex.DirectanddisplayadsystemYandex.Display.

http://www.yandex.ru/

TradingDesks

AccuenisOmnicomMediaGroup’sprogrammaticspecialistdivision,whichisdesignedasanopen,integrated,neutralpartner.Withmorethan400specialistsinover45countries,Accuen’sexpertsand the programmatic platform help clients reach their consumers with the most effectiveadvertisingexperiences.

http://www.accuenmedia.com/


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AMNET is the programmatic expert for the Dentsu Aegis Network, specializing not only inprogrammatic buying, but also in the planning, analysis and activation of audience data. AMNETwas established in 2011 andnowoperates in theUS, Germany, France, theNetherlands, theUK,Russia(in2013throughAegisMedia)andothercountries.

http://www.amnetgroup.com/

VivaKiRussiaisthelargestmediabuyinggroupinRussiaaccordingtoRACAandSostav.ruratings.It comprises four operationally independent parts: Mediavest, Starcom, Zenith and Optimediaagencies,aswellastwoaffiliatedagencies,namely,MedialinkandStarlink.Theagenciesspecializeinmediaplanning,adplacement,mediaconsulting.

http://www.vivaki.ru/

Xaxis istheworld's largesttechnologyplatform,workinginthefieldofprogrammaticbuyingandadbuyingindigitalmedia.XaxisRussiaispartofGroupMRussia,theleadingglobalmediaholding.

http://www.xaxis.com/

DMP(DataManagementPlatform)

Aidata.me offers to all players of RTB market its DMP solutions for smarter audience buying.Aidata.me aggregates, processes, segments and delivers data about age, gender, interests andintentsofmorethan1,000,000,000uniquecookiespermonth.

http://www.aidata.me/


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AmberDataisahigh-techdatamanagementplatformforaggregationofdepersonifiedinformationaboutonlineusersandconstructingsegmentsoutofthisdata.WithAmberDatadatasupplierscanmonetizedata, andadvertisersandadagencies canbuild themosteffective communicationwithtargetaudience.

https://amberdata.ru/

CleverDATA is concentrated on developing its proprietary product – datamanagement platform1DMP. The platform is designed for collecting, processing, enrichment and analysis of customerdata,formationofclients’3D-profilesandmicro-segmentationfortargetedmarketingpurposesandimprovement of customer experience. In addition, CleverDATA has created and develops cloudserviceDataMarketingCloud(DataExchange),whichservesasaplatformforinteractionbetweensuppliersandconsumersofaudienceprofilesandcustomerknowledge.

http://cleverdata.ru/

Facetz.DCAisaDMP,anintegratedsolutionfyDCA(Data-CentricAlliance),thatallowstoaggregateaudiencedata fromvariousonlineandofflinedatasources,produceasynthesisofconsumerandbehavioral profiles for accurate segmentation and audience targeting. Facetz.DCA hasmore than400ready-madesegments.Inaddition,theself-serviceplatformtoolkitallowscustomerstocreateanduploadaudiencesegmentsfordifferentbusinessneeds.

http://facetz.ru/


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tBh(TheBigHistory) isaDMPfromthecompanyAuditorius,whichenteredthemarket in2014.The platform collects and analyzes user browsing history without tying it up to personalinformation.

http://www.tbighistory.com/

WeboramaisakingfishofEuropeanaudiencedatamarket.Ithasthefullstackoftechsolutionsandexpertiseforusingdatainmarketing:itsownDMP,adserveranddisplayauditsystem,interactivetechnologies.InRussiathecompanyoperatessince2012andcollaborateswithleadingadvertisers,agencygroupsandpublishers.

http://www.weborama.com/


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AboutIABRussia

TheInteractiveAdvertisingBureau(IAB)Russia

Anon-commercialpartnershipforinteractiveadvertisingpromotion,apartofaninternationalIABassociation. The main objective is to grow and develop interactive advertising market. IABsuccessfullyoperatesin41countrieson5continents.

PriorityareasofTheInteractiveAdvertisingBureau(IAB)Russiaarethefollowing:

• Educationalactivities;• Formationofindustrystandards,guidelinesandglossaries;• Organizingindustrialevents,includingMIXXConferenceandMIXXAwards;• Conducting research in the field of online advertising, taking into account international

methodologiesandbestpractices

Contacts:

3-3PolkovayaSt.,4thFloor,Moscow,127018.Tel/fax:+7(495)6623988

email:[email protected]

www.iabrus.ru


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Thereport“RussianProgrammaticMarketOverview–2015”wascommissionedbyIABRussiaProgrammaticWorkingGroupand

IABRussiaDataMarketDevelopmentWorkingGroup�

Editor:VeraKhiteeva,April2016TatianaFirsova(EnglishVersion),May2016

Forallquestionsregardingthisreportpleasecontact:�

[email protected]

programmatic russia 2015

Data & Analytics