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Mail.ru Idea Proposal

Mail.ru Idea Proposal
 

Are the new ad products on Mail.ru’s myTarget platform allowing the company to increase its share of advertisers’ budgets?

Report Available: August 12, 2016

 

Blueshift’s initial research found the online ad market in Russia growing significantly, outpacing growth in the TV market. Video and mobile advertising represent the next major growth areas. Mail.ru’s myTarget is driving the company’s mobile advertising growth, and its new MMO game, Armored Warfare, is expected to ramp up considerably in 2016 after its 2015 launch. Whether it can compete with World of Tanks for users and advertising revenue remains to be seen.

 

Observations

  1. According to the Association of the Media Agencies of Russia, the online ad market in Russia continued to grow in the first quarter of 2016, re​aching 23.7 billion Ruble, up 31% year to year. TV advertising, by comparison, reached 36 billion Ruble, up 19% year to year. ZenithOptimedia expects a slowdown in search advertising in Russia, while video advertising is expected to accelerate in 2016. Currently, search makes up about 80% of the overall online ad market, but its share is decreasing.
  2. ru added several ad products and features to its three social networks VKontakte (VK), Odnoklassniki (OK.ru), and My World, including myTarget, an ad platform that allows advertisers to target users on all its networks. Mail.ru’s revenue climbed 11% in 2015, with a 19% increase in online advertising that was mainly driven by myTarget advertising revenue, particularly on mobile.
  3. In September 2015, Mail.ru’s My.com launched an MMO tank game call Armored Warfare, modeled after the very successful World of Tanks. In an effort to lure players, the company announced a promotion that all the bonuses and statuses earned in World of Tanks could be transferred to Armored Warfare without any losses. Mail.ru’s MMO revenue grew 6% in 2015 and the company is counting on Armored Warfare to increase that number dramatically in 2016. By the end of February 2016, Armored Warfare had more than 5 million registered users.
  4. In Blueshift’s 29, 2015, report, all seven repeat sources at digital media companies in Russia and with brands advertising on social media sites in Russia said Mail.ru had shown improvement with its new products since our May 1, 2015, report on the company. Two of four digital media sources said Mail.ru was gaining share of advertisers’ budgets, while three of four brand advertisers applauded the bigger influence advertising with Mail.ru was having in Oct. compared with May. Mail.ru’s MyTarget was attracting new advertisers, delivering a better ROI for one digital media source, was good at tracking spending and would be used more in 2016 by two of the brand advertisers.

 

What is advertisers’ perception of the quality of myTarget’s products? What are pricing trends for inventory? How attractive is the ROI on myTarget? What is the general state of the advertising market? What are Armored Warfare’s prospects for success? To answer these and other questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: Digital media companies in Russia, Independent/local ad agencies in Russia, Brands advertising on social media in Russia, and Gaming industry experts.

 

Companies: Mail.ru (MLRYY), Facebook (FB), Alphabet (GOOG/GOOGL), Twitter (TWTR), Yahoo (YHOO), Yandex (YNDX)

 

Research Begins: July 18, 2016