Yandex Advertising: Monetization Technologies 2024

Yandex Advertising: Monetization Technologies 2024

The conference "Yandex Advertising: Monetization Technologies", held on December 5, 2024, provided "Yandex's" perspective on the Russian advertising industry and brought together numerous participants and experts to discuss key trends and technologies.

In this article, I will cover the key highlights from the presentations, and you can find the full recording of the conference here (duration: 2.5 hours).

The New Landscape of the Digital Advertising Market

Boris Omelnitsky, President of ARIR and Strategic Market Development Director of Yandex's Commercial Department:

  1. Growth in media consumption via the internet:
    • For audiences under 30, the internet accounts for 85% of total media consumption: 77% is internet surfing, and 8% is online video.
    • In the 30–60 age group, the internet represents over 60% of media consumption.
  2. Expansion of the internet audience:
    • According to Mediascope, the monthly internet audience in Russia has reached 103 million people (85% of the population).
    • With audience growth slowing, the priority shifts to deepening engagement with existing users.
  3. Innovative segments are growing faster:
    • Retail media, messengers, and influencer advertising are demonstrating dynamic growth, outpacing traditional banner and video ads.
    • Thanks to accumulated user data, retail media and online stores have become full-fledged advertising platforms.
  4. Advertising market dynamics:
    • In 2023, the Russian advertising market grew by 32% after stabilizing in 2022.
    • There are 880,000 registered advertisers in Russia.
  5. Global trends:
    • The share of digital advertising in Russia is 70%, lagging behind the UK and China, where it is 83–85%.
    • In the long term, the Russian market is expected to move toward these figures, maintaining high growth rates in innovative areas.
  6. Forecasts for 2025:
    • An optimistic scenario predicts a 22% growth in the advertising market, including a notable increase in budgets for outdoor and audio advertising.
    • Forecasts may be adjusted depending on the macroeconomic situation and Central Bank decisions on key interest rates.
  7. Main conclusions:
    • The Russian digital advertising market is transforming after the departure of global platforms.
    • Brands are actively integrating advertising into content and leveraging data to improve efficiency, creating new opportunities for all market participants.
    • The primary task is to deepen relationships with the existing audience as the influx of new users slows.
Monetization Factory

Development of Yandex Advertising Network

Ekaterina Romanova, Head of Development for the "Yandex Advertising Network", and Viktoria Kinash, Director for Agency and Partner Relations of the Yandex Advertising Network.

  1. Inventory shortage:
    • The market faces a lack of quality advertising platforms, especially after the withdrawal of international players.
    • This increases competition for audience attention and stimulates the creation of new ad formats.
  2. Decline in platform revenues:
    • Some partners have experienced revenue declines due to changes in user habits and reallocation of ad budgets.
    • Users are increasingly shifting to mobile apps and changing their content consumption methods.
  3. Growth indicators:
    • In the first 9 months of 2024, ad block impressions increased by 38%, and in mobile apps by almost 100%.
    • Partner revenues grew by 32%, despite local declines for some platforms due to traffic redistribution.
  4. Innovative ad formats:
    • InImage Ads: placing ads over images without taking up additional space.
    • Recommendation Widgets: new algorithms increased CTR by 20%.
    • Improved traditional formats: displaying forgotten cart items and promo codes directly on banners.
  5. Partner support:
    • Quarterly reports with personalized recommendations for improving efficiency.
    • Launching a new partner dashboard with advanced analytics and traffic quality metrics.
    • Enhanced communication via Telegram and WhatsApp.
  6. Partner retention and development:
    • The Yandex Advertising Network improves monetization and provides tools for audience quality analysis.
    • Partner success is built on three pillars: monetization efficiency, quality of service, and ad quality.
  7. Technological advancements:
    • Implementing neural networks and automation to optimize ad campaigns.
    • Integrated A/B testing platform in the partner dashboard for quick testing of new formats.
  8. Main conclusions:
    • The Yandex Advertising Network adapts to market changes by offering modern solutions and support.
    • Focusing on quality and innovation attracts advertisers and increases revenues for all network participants.
    • Long-term partnerships are the foundation of sustainable growth for the Yandex Advertising Network.
  9. Goals:
    • Increase ad efficiency by 27%.
    • Grow partner revenues through new technologies and analytics tools.
Monetization Magic

Monetization Opportunities for Bloggers

Anton Popov, Head of Telegram Channel Monetization at Yandex.

  1. Popularity of Telegram Advertising Service:
    • Over 15,000 advertisers and 9,000 Telegram channels have joined the service.
    • Total payouts to bloggers have exceeded 1.5 billion rubles.
    • Geographic reach has expanded: monetization is now available in Russia, Belarus, Uzbekistan, and Kazakhstan.
    • The minimum subscriber threshold has been lowered, and monetization for private channels has been introduced.
  2. Service Updates:
    • Reduced entry thresholds for subscriber numbers.
    • Monetization for private Telegram channels added.
  3. Yandex Advertising Network for Bloggers:
    • The platform supports Telegram channels, Rutube, YouTube, and VKontakte.
    • Main advantages:
      • Dynamic links automatically direct users to relevant products or stores.
      • Automatic ad labeling resolves legal and technical issues.
      • No need to negotiate content with advertisers; posts are moderated by Yandex.
    • Monetization formats:
      • Product advertising through links.
      • Promo codes with performance tracking.
  4. How It Works:
    • Bloggers choose the advertising target: product or store.
    • Dynamic links analyze user preferences upon clicking and direct them to a relevant page for better conversion rates.
    • Payments are based on publications and click-through numbers.
  5. Comparison of Two Approaches:
    • Service for Telegram Channels:
      • Operates fully automatically.
      • After connecting a channel, Yandex independently selects and publishes ads, crediting the blogger with rewards.
    • Service for Bloggers:
      • Bloggers independently choose products to advertise, create creatives, and publish them.
      • Allows fine-tuned ad campaigns across different platforms.
  6. Examples and Recommendations:
    • Telegram Ad Analytics: Partners are provided with analyses of publication timing, post visibility duration, and popular ad themes for improved efficiency.
    • Diversity of Formats: Combining automatic and manual monetization methods is recommended for maximizing revenue.
  7. Main Conclusions:
    • Yandex tools allow bloggers to focus on creating content instead of handling technical advertising aspects.
    • Dynamic links ensure advertising offers remain relevant over time.
    • The services offer a flexible approach, from full automation to detailed ad campaign customization.
Yandex Cat and Team

Automation of Telegram Channel Monetization

Sergey Andreev, Head of Advertising Technologies and Labeling at Komsomolskaya Pravda.

Sergey shared the experience of "Komsomolskaya Pravda" in utilizing Yandex Advertising Network (YAN) to manage advertising across multiple Telegram channels.

  1. Challenges of Working with Social Media:
    • Social networks are closed ecosystems, complicating the integration of third-party advertising technologies.
    • Telegram, however, stands out with its openness via bots and APIs, making it convenient for automation.
  2. Solutions by Yandex: A year ago, Yandex introduced a tool for monetizing Telegram channels, significantly simplifying ad management for publishers and channel owners.
  3. Integration with Yandex's System: Bots automatically select advertisements, manage their publication, and collect statistics.
  4. Key Features:
    • Automatic Ad Selection: The system analyzes the channel's theme and audience preferences to display relevant ads.
    • Timing Management: Optimizing the timing of ad publications to maximize reach.
    • Data Collection and Analysis: Automated reports on conversions and audience engagement help refine strategies.
  5. Ease of Implementation: Connecting a Telegram channel is sufficient; all other processes, including ad selection and labeling, are automated.
  6. Revenue Growth:
    • Relevant ads and well-timed publications increase Telegram channel revenues.
    • "Komsomolskaya Pravda" effectively monetizes dozens of channels without additional management costs.
  7. Resource Optimization:
    • Automation reduces time spent managing ad campaigns across multiple channels.
    • Freed-up resources are redirected to content creation and developing new channels.
  8. Use Analytics: Track statistics for each ad and optimize publication frequency to avoid overloading with ads.
  9. Diversify Income Sources: Combine Yandex's automated services with manual ad selection for maximum revenue.
  10. Prioritize Quality Over Quantity: Yandex's system supports only high-quality ads, ensuring audience trust and high conversion rates.
  11. Main Conclusions:
    • Yandex's tools make ad management simple and efficient.
    • Telegram is becoming a key platform for content distribution and monetization due to its flexible APIs.
    • Channel owners can focus on content development rather than the technical aspects of advertising.
Yandex Cyber City

Insights: Monetization of Yandex’s Own Services

Alexander Ganshin, CEO of Yandex.Weather, and Yulia Gangnus, Head of Strategic Partnerships at Yandex.

  1. Using an Ecosystem Approach:
    • Yandex services operate as a unified ecosystem, effectively leveraging user data for personalized advertising.
    • The integration of "Yandex.Weather," "Yandex.Maps", and "Yandex Zen" creates a cohesive advertising space, accompanying users across various interaction stages with Yandex products.
  2. Ad Personalization:
    • Analyzing user behavior—location, preferences, and queries—ensures the display of relevant ads.
    • "Yandex.Weather" adapts ads to current weather conditions and local events, boosting their effectiveness.
  3. Neural Networks and Algorithms:
    • Yandex employs advanced technologies to predict user behavior and tailor content accordingly.
    • This enables the delivery of ads closely aligned with audience interests, enhancing engagement.
  4. Optimizing Ad Placement: Ads are seamlessly integrated into the interface, ensuring a smooth user experience. On "Yandex.Weather," ad blocks naturally fit into the design.
  5. "Yandex.Weather":
    • Contextual ads are linked to weather conditions—for example, promoting warm clothing in winter or umbrellas during rain.
    • Dynamic formats allow real-time updates to ad content as the weather changes.
  6. "Yandex Zen": Content and ads are personalized based on user behavior across all Yandex services.
  7. Balancing Ads and User Experience:
    • The key goal is retaining users through unobtrusive advertising.
    • Yandex tests various formats, striving to make ads useful rather than intrusive.
  8. Ad Effectiveness:
    • A/B testing and analytics enable real-time optimization of ad campaigns.
    • The result is increased conversions and revenue while maintaining high user satisfaction.
  9. Main Conclusions:
    • Data Value: Leveraging extensive user data ensures relevant ads, boosting both revenue and service quality.
    • Innovation: Implementing neural networks and dynamic formats helps adapt to evolving market needs.
    • Ecosystem: Service integration ensures effective cross-promotion and a unique advertising experience.
Scientist Cat

How the Brain Reconstructs Content

Alexander Kaplan, Doctor of Biological Sciences, Professor at Lomonosov Moscow State University.

This section explored the neurophysiological aspects of information and advertising perception, as well as applying brain functioning principles to create more engaging and effective content.

  1. How the Brain Perceives Information:
    • Information is perceived non-linearly— the brain reconstructs scattered content pieces into a cohesive image.
    • For effective advertising, content elements should evoke associations and complement existing mental constructs.
  2. Emotions as the Key to Memory:
    • Emotionally charged information is significantly more memorable.
    • Ads that evoke strong emotions (joy, surprise, or mild discomfort) create more persistent associations.
  3. Attention and Overload:
    • Information overload in modern users reduces their ability to focus.
    • The solution lies in using minimalist designs, clear messages, and visual triggers.
  4. Visual Structure:
    • The brain processes visual information faster than text, making simple and contrasting elements more attention-grabbing.
    • Effective advertising includes large images, vibrant colors, and concise headlines.
  5. Storytelling and Associations:
    • Stories that resonate with users' personal experiences are perceived more vividly and emotionally.
    • Content based on storytelling activates more neural connections, enhancing memorability.
  6. Personalization:
    • Ads tailored to the interests and needs of specific users elicit stronger emotional responses.
    • Behavioral and preference analysis helps create content perceived as personally relevant.
  7. Effective Advertising: Ads that incorporate neurophysiological principles ensure higher engagement, particularly those starting with a strong emotional trigger.
  8. Content for Social Media: In social networks, short, visually rich formats align best with contemporary information consumption habits.
  9. Platform Adaptation: Each platform demands a tailored approach: text storytelling with images for Telegram, dynamic videos for YouTube.
  10. Main Conclusions:
    • The brain perceives advertising through emotions, associations, and visuals—this forms the foundation of successful campaigns.
    • Understanding brain function enables the creation of more captivating and memorable content.
    • Adapting formats to platform-specific perception nuances significantly boosts effectiveness.
Magical Yandex Advertising Forest

Conclusion: The Future of Monetization

Kirill Karavaev, founder of SlovoDna and the brand KIRILL KARAVAEV.

  1. Creativity as the Key to Success:
    • Modern advertising demands unconventional solutions and innovations to stand out among competitors.
    • Bold ideas in unique formats effectively capture audience attention and spark interest.
  2. Monetization of "Non-Standard Content":
    • Kirill showcased successful examples of monetizing memes, humorous videos, and other unconventional content, previously considered challenging to monetize.
    • These formats resonate particularly well with younger audiences who value originality and emotional engagement.
  3. The Power of Personal Branding: In an increasingly competitive environment, personal branding has become a key monetization tool. Collaborating with bloggers and influencers helps brands create more authentic content.
  4. The Role of Artificial Intelligence:
    • AI is becoming indispensable in creating creative content, analyzing audiences, and optimizing targeting.
    • Generative models open new opportunities for producing unique visual and textual content.
  5. Flexibility of Formats: Kirill emphasized the importance of diversifying advertising formats and platforms. Constant testing and adaptation to audience demands allow higher conversion rates.
  6. Multi-Level Monetization: Diversifying income streams through advertising, partnerships, and product sales helps reduce risks and increase overall profitability.
  7. Adapting to Changes: Kirill noted the necessity for the market to be prepared for constant changes in technology, user behavior, and regulatory frameworks.
  8. Investing in Creativity: The future requires brands to invest not only in technology but also in creative teams capable of generating bold and unique ideas.
  9. Collaborations and Partnerships: Collaborations between brands and influencers, artists, and creative agencies are becoming defining factors for successful monetization.
  10. Main Takeaways:
    • The future of advertising lies in the synergy of technology and creativity, creating truly memorable content.
    • Unconventional thinking and bold monetization approaches are critical for success, especially when engaging with a young digital audience.
    • Flexibility, multi-channel strategies, and adopting new technologies are key strategies for sustainable growth in a dynamic advertising landscape.