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Yandex and Google seal advertising partnership

0 27 February 2014

Yandex and Google have announced a partnership that will bring together their real-time-bidding (RTB) advertising services. The agreement means that Yandex clients will gain access to DoubleClick AdExchange, which Google acquired to manage its RTB-advertising in 2007, while Google clients will be connected to Yandex’s AWAPS platform. 

RTB is a sales system that mediates ad marketing between buyers and sellers, and the reasoning behind this deal is that by increasing the number of bidders and sellers it will be possible to better fine-tune ad-targeting and optimise bids. 

Yandex made clear however that the deal only covers display advertising, and that the companies’ text-based contextual advertising systems will remain independent. 

According to ComScore, Yandex reaches 96% of Russia’s internet audience, giving it a very powerful position in the local advertising market. In 2013 the company made $97 million from display advertising out of a total revenue of $1.1 billion. This represented a 30% increase in revenue from display advertising.

As well as reaching out to Google, Yandex has also acquired the right to index public content posted by users on Facebook and Twitter in Russia, Turkey and much of the former CIS. Yandex is also planning to provide a dedicated Twitter search engine for tweets posted in Russian, Ukrainian, Belarussian and Kazakh. 

Nikolay Danilov, head of sales technologies at Yandex, commented that 

“The integration of the two advertising systems will undoubtedly stimulate the online advertising market.

The more players, the wider range of ad inventory, the greater the competition for placement, and the higher the quality of the ads themselves. We anticipate that the partnership with Google will result in increased display advertising sales and improvements in ad quality.”

Frank Einecke, head of SEEMEA Media Buying Solutions at DoubleClick, also welcomed the agreement:

“We are happy about this partnership that will help to develop the RTB ecosystem in Russia. Given the adoption speed of RTB in this market, accessing local and global qualified inventory is key to our publishers and advertisers who are looking for incremental reach.

We are very excited to see the Russian market moving towards innovative programmatic solutions that can serve both branding and performance strategies in reaching their targets in a more efficient way.”

As well as reaching out to Google, Yandex has also acquired the right to index public content posted by users on Facebook and Twitter in Russia, Turkey and much of the former CIS. Yandex is also planning to provide a dedicated Twitter search engine for tweets posted in Russian, Ukrainian, Belarussian and Kazakh. 

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