Yandex.Direct and Google AdWords compared
The Russian search engine marketing (SEM) market is unique and,
to a large extent, different from the SEM-markets of other countries.
The main difference lies in the fact that most of the search traffic is
concentrated on the local search engine Yandex.
According to various estimates, Yandex’s share of search engine
traffic in Russia ranges from 60% to 65%, while the share of Google, its
closest follower, is about 25%. Thus, the main competition in the SEM
market unfolds between the content providers Yandex.Direct and Google
AdWords. In terms of functionality, these systems have differences.
Both systems place text ads but with different restrictions. The
header length on Yandex.Direct can be no longer than 33 characters,
while Google AdWords allows for 25. The length of text ads is limited to
75 characters on Yandex.Direct and to two lines 35 word long lines on
AdWords. The average length of words in Russian is longer than in
English.Long titles and texts characterize Yandex.Direct as being a
system that suits the peculiarities of the Russian language better and
is more adapted for the Russian market.
In 2013, Yandex introduced another ad format that is different from
the Google AdWords formats. For advertisements that are placed on
partner sites of Yandex’s advertising network (called YAN), it is now
possible to add images. The main feature of this format is that it can
be added for remarketing ads, which undoubtedly greatly increases their
effectiveness.
- Usability and flexibility
Yandex.Direct system has a relatively simple and intuitive interface.
Its simplicity makes it more popular among Russian advertisers,
especially those whose experiences in contextual advertising are
relatively weak. However, for experienced advertisers, AdWords is a more
user-friendly system that provides important tools for mass editing,
flexible configuration, and quick optimization. All of these features
make AdWords more attractive and very popular among advertisers with
thousands, and even tens of thousands of ads and keyword phrases.
- Manage advertising display position
Yandex Direct shows each advertiser the recommended rates for taking
up a specific position in the contextual landscape that allows an
advertiser to at least get the right ad block. Google AdWords does not
give this opportunity to be in a requested position. This factor is an
issue for Russian advertisers when dealing with AdWords.
The major sources of traffic for both systems are their own search
engines. However, both systems have a network of partner sites. The ad
networks of both systems also includes a variety of content-based, news,
entertainment, and business sites. In addition, Yandex.Direct shows up
in the results of search engine portals Mail.ru and Rambler, which
traditionally are third and fourth place in terms of search traffic.
The size and quality of these networks is difficult to compare
objectively, but they can be compared on the flexibility of settings and
placement targeting. Google AdWords offers more targeting options such
as remarketing, targeting by user interest, targeting by site category,
and targeting by keyword. Yandex offers the following targeting
capabilities: retargeting, targeting by keyword, and targeting by user
interest. However, it is impossible to control the interests, as they
are automatically matched to the selected keywords. Yandex does not give
a choice of partners for ad placement, while Google allows this. The
format of ads placed on partner networks also differ. Yandex.Direct
allows you to place text ads or text and image ads (ads with a picture),
while Google AdWords allows you to place text ads, and banner ads in
various formats, as well as promotional videos on Youtube.
- Competition and cost-per-click
Having the largest share of the search market makes Yandex.Direct
more attractive to advertisers than Google AdWords. Today, according to
experts, the number of advertisers is over 350,000. Therefore, it is
generally believed that competition on Yandex.Direct is greater and fast
growth bid in many niches. As a result, cost-per-click (CPC) for
Yandex.Direct in higher on average than for Google AdWords.
- Management conversions and CPA
Every year Russian advertisers become more “advanced” and it is
necessary to manage not only the placement of advertising, but also its
economic returns. AdWords for many years now gives advertisers a tool
that enables them to manage conversions with reference to CPA. Yandex
has not yet provided anything like this. At the end of 2013, Yandex
Direct finally released a similar tool, which allows the setting of
weekly budgets and a desired target price action. Comparing the two
tools is of course difficult. It can only be added that experts say the
Yandex tool provides a significant impact on contextual media campaigns.
- Availability API for third-party developers
The growth of Internet penetration in Russia and the fact that Russia
has become the European country with the largest number of Internet
users have resulted in the growth of keyword queries on search engines.
This makes large advertisers develop their own applications for context
systems for the automation various processes via API. Yandex.Direct API
is open to virtually anyone, while Google AdWords accepts only large
advertisers with high turnover and a payment history of no less than six
months. In addition, advertisers are forced to undergo a certification
process of their applications for the Google AdWords API, which is
certainly a barrier.
The Russian contextual advertising market continues to grow at a
rapid pace, which is resulting in a more complex environment for its
management and control. Such a situation is driving the development of
the automation advertising market in Russia. The period of 2013-2014 is
marked by the advent of various automation systems. It is also worth
noting the appearance of Russian startups in the segment, such as
Alytics; the increased competition from foreign players like Marin
Software and Adobe AdLens; and a change in strategy among market
veterans, characterized by a round of new investments into the platform
eLama.
Yandex.Direct has a special Discount policy for regular customers with
large advertising budgets. The discounts can be as high as 23%. Google AdWords does not offer discounts to its customers.
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Summing up the comparison of the two systems, there are several key
points. Yandex.Direct is a leader in search engine traffic. Google
AdWords provides more sophisticated and advanced tools for settings and
targeting. Competition on Yandex.Direct is more intense than on Google
AdWords. It is worth noting that, despite the many differences between
the systems over the past few years, they approach each other and
inevitably become more like each other. This trend will continue in the
future, while each player will hope to come up with something unique to
strengthen his position and push out his competitor.
Alexander Egorov is the Director of Development for the smart content platform Alytics.
He is also an expert on CPA-campaigns and effective online media, and a
consultant for CPA-contextual advertising campaigns. He has more than 9
years of experience in integrated online marketing (including to some
degree within CPA and ROI) and contextual advertising campaigns for:
Price.ru, Credit Bank of Moscow, Aeroflot Airlines, Tour Operators
Pegas, DSBW and TezTour, Svyaznoy Bank, Saxo Bank, Central Department
Store, MIAN, publisher Ferra, and the Finn Flare store.
This article is an excerpt from a comprehensive research study
on Russian e-commerce and online marketing channels by East-West
Digital News. To receive an executive summary at no charge please
contact report@ewn.com.
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