PROGRAMMATIC BUYING MARKET IN RUSSIA - APRIL 2021 - PWC
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Programmatic Buying Market in Russia April 2021
“
The growth of the global and Russian digital advertising
market leads to the development of new technologies
that can effectively deliver advertising message to
customers. Programmatic buying is the most advanced
and fast-growing segment in media buying, and
nowadays it is becoming a priority for advertisers.
We prepared the first comprehensive research on the
Russian programmatic market for customers to learn
about modern technologies and latest market trends.
Oksana Kulakova, Senior This study is different from other types of research as it is
Manager based on interviews with representatives of the largest
Strategy and Operations companies on the market. Readers will be able to learn
consulting
about market development prospects and competitive
PwC Russia advantages of the solution developers firsthand from the
leading industry experts.
“
In the face of high concentration of technological solutions
and ecosystems, together with PwC Russia we set a goal
to objectively assess the quality of existing technologies
and get unique insights about market based on the key
market experts' opinion.
As a result, we were able to carry out a comprehensive
comparison of media buying platforms. Based on this
study, advertisers can plan and decide on their distribution
of marketing investments considering possible scenarios
Anna Ketova for the technologies’ development in the future.
Google Marketing Platform
PwC
3
Approach
Objective
Analyse the programmatic ad ecosystem and highlight the key
potential growth points and partnership opportunities.
Two types of players account for most of the activity in the market:
• Users (advertisers and advertising agencies);
• Providers of ad buying solutions, including large IT companies with
demand-side platforms (DSPs) and smaller DSPs that are not part of a
larger ecosystem.
Research methodology
This study consisted of a series of interviews with key market players who
were selected according to a set of predetermined parameters. The questions
were tailored to the backgrounds of the respondents. Following the interviews,
we prepared a summary report of our findings and main conclusions.
Selection of respondents
Advertisers
Eight companies with significant advertising budgets and experience in using
programmatic tools.
Agencies and agency products
Global agencies with in-house solutions for managing and buying
programmatic ads.
IT companies
Large IT companies that provide ad management solutions in the Russian
market.
DSP platforms
Important players that provide DSP solutions but are not affiliated with large IT
companies.
PwC
Contents Pages
Online advertising market overview 5
Key research findings 14
• Insights from users 16
• Insights from providers 30
• Choosing a platform: recommendations for
36
users
• Vendor comparison matrix 38
Market player analysis 42
• Market player profiles 44
• Provider profiles 46
5
1 Online advertising
market overview
PwC
7
Programmatic advertising ecosystem
Programmatic advertising market
Technology users Technology solutions
Major
Advertisers
companies Direct buys (10%)
(70%)
SMEs (30%) Agencies Trading desks
Network (85%)
Local (15%) Agent buys (90%)
Verification, fraud, brand safety, usability
Buy-side Ads and budgets
Key concepts
Ad Exchange DSP
Automated platform for buying and selling ads on A technological system that helps advertisers to
various media sources manage multiple ad networks, ad exchanges and
data exchanges in the RTB digital ecosystem.
Brand Safety
Measures to protect the image and reputation of Fraud
brands from negative or damaging information. Fraudulent traffic generated by manipulating ad
buying processes or parameters.
Data Exchange
A specialised data exchange platform that provides SSP
user data to advertisers. The data may include A technology platform that enables web publishers
information on the user’s sociodemographic profile, to sell ad inventory on their web resources.
geolocation, interests, activities, etc.
Trading desk
Data Management Platform (DMP) A platform for the cross-platform automated media
A technology platform that collects, processes and buying according to different advertising models
storing user data for further use in advertising (direct placements in the main digital channels or
campaigns. auction purchases in the RTB system). On the
Russian market, the analogue of ATD are agency
teams, which organize media buying from different
platforms.
Additional
Supply and demand Key counterparties
services
PwC
Data Exchange
Audience
DMP
85% Ad Exchange
Platforms
Inventory
90% owners
15% SSPs
DSPs
10%
metrics, etc.
Ad slots Sell-side
Viewability Inventory owners
A metric that allows to track the actual Internet sites that sell ad space to
display of an advertisement and the time it interested advertisers.
has been in the visibility area.
Platforms
Agencies and agency Demand-side platforms (DSPs)
products form part of the programmatic
advertising ecosystem at major IT
International communication groups that
corporations.
are present in the Russian market. Agency
products include proprietary technologies Advertisers
developed by agencies for programmatic Large companies that invest a
ad buying. significant portion of their
advertising budget in
Audience programmatic buying tools and
Audience refers to the end consumer, who that have extensive experience in
also play a key role in generating user using such tools.
data.
Verification
Traffic verification (or traffic audit) is a set
of solutions to counteract fraudulent traffic
and unfair advertising campaigns,
including in the following three key areas:
fraud, brand safety and viewability.
9
Mobile is driving growth in the online advertising
market globally1
Global online ad segments, 2018-2024, USD billions2
Growth rates
+6.6
2019-24
%
390
-2.6 371
% 349 2.3%
311 323
303
269 0.4%
Desktop
40%, -0.5%
2020
Mobile 7.7%
60%,
2020
7.0%
2018 2019 2020 2021 2022 2023 2024
Classified (desktop) Contextual ads (desktop) Display ads (mobile)
Display ads (desktop) Contextual ads (mobile)
Global spending on display ads vs Global spending on programmatic ads,
other online formats, %2 USD billions3
+26
Growth rates %
2019-24
5.1%
4.2%
2017 2018 2019 2020F 2021F
Display ads
Other formats1
1
Hereinafter display advertising includes all banner, video and mobile formats, excl. contextual advertising, classified advertising.
2
PwC analysis, PwC Global Entertainment & Media Outlook 2020-2024
3
PwC analysis, Zenith Programmatic Marketing Forecast
PwCKey trends in the global online advertising market
In 2020, the global online ad Smartphones continue to
market declined by 2.6% due to displace computers as the
the impact of the COVID-19 primary way that people access
pandemic, except for the mobile content.
video ad segment, which grew by
Thanks to the penetration of
0.85%.
smartphones in developed and
The General Data Protection emerging markets, mobile ads
Regulation (GDPR), which has accounted for 60% of the
imposed new restrictions on how market in 2019, and may
personal data can be used, is constitute 67% by 2024.
expected to negatively effect
Mobile is also driving growth in
players that rely on third-party data
programmatic ads: over 80% of
and to strengthen large IT
all mobile ads are bought via
platforms.
programmatic.
Currently, video is leading format
The latest trend on the market is
for ad content. The development
the use of hybrid programmatic
of social networks and video
models (partially in-house) and
platforms (YouTube, etc.) has led
proprietary data collection
to a shift in consumption patterns
processes to enhance the
towards video content. This trend
effectiveness of targeting.
is also being driven by the growing
accessibility of smart TVs and
other over-the-top devices.
11The advertising market in Russia is growing faster
than the global average
Online advertising segments in Russia, USD billions2
Growth rates
+8.0 2019-24
% 5.4
5.1
+5.0 4.8 4.6%
% 4.4
3.9
3.8 4.3%
Desktop 3.3
69%,
6%
2020
Mobile 9.6%
31%,
2020
11%
2018 2019 2020 2021 2022 2023 2024
Classified (desktop) Display ads (desktop) Contextual ads (desktop)
Contextual ads (mobile) Display ads (mobile)
Expenditures on display vs. other Spending on programmatic ads in
online ads, %2 Russia, USD millions3
91.09
+15 5 15.93
%
4
Growth rates
2019-24
9%
6.3%
2018 2019 2020F 2021F 2021F 2021F
USA China
Display ads Russian market
1 Market leaders
Other formats
1
Contextual advertising on desktops and mobile devices, classified advertising
2
PwC analysis, PwC Global Entertainment & Media Outlook 2020-2024
3
PwC analysis, Zenith Programmatic Marketing Forecast. Spending in Russia does not include social media due to lack of data.
PwCKey trends on the local online advertising market
Despite the negative impact of Display ads account for 39% of
COVID-19, Russia’s online the online advertising market. In
advertising market grew 5% in 2019-2024, display advertising is
2020 and will reach USD 5.4bn expected to grow at an average
over the next five years. annual rate of 9%.
Unlike the global market, The variety of large and small
desktop advertising remains players on the Russian market
the largest segment in Russia, has encouraged competition and
accounting for 69.1% of the total helped to facilitate the growth of the
market in 2020. programmatic ad buying market as
a whole.
The mobile online ad market
has grow rapidly in recent Developers are working on new
years, including by 20.2% (USD ad formats, including
1.1bn) in 2019. Currently, mobile programmatic ad placements on
ads account for 31% of Russian smart TVs and in digital
online ad market but could reach out-of-home spaces.
36.5% by 2024.
132 Key research findings PwC
15
Users
Advertisers are widely engaged in using
programmatic ads
Advertisers in the Russian market are deeply engaged
in developing programmatic buying solutions. We
interviewed senior managers at global agencies and
brands to learn about their thoughts on the latest trends
and expectations about how the market might develop.
Conclusion: Programmatic has become the preferred
1 method for buying ad inventory
• In recent years, a substantial number of
advertisers have redistributed their
advertising budgets to focus more on
programmatic. For many advertisers, 70
to 100% of their digital ads are placed
using programmatic tools.
“
Advertising budgets have largely
been redistributed in favour of
online ad placements, as digital
channels provide more options to
engage with consumers who
• The sheer size of online audiences spend more and more time online.
means that advertisers can run a variety
of online ad campaigns and reach Anton Efimov, Digital Director
millions of users, while the development OMD
of data analytics has enabled advertisers
to target potential buyers more
effectively.
• Regardless of the goal of a given
advertising campaign, optimisation
algorithms can adjust parameters in real
time to use advertising budgets more
efficiently.
“
We spend almost 95% of the
budget on programmatic. We
define programmatic procurement
as using all platforms where we do
not use a reserved placement but
can use data-driven targeting.
Vladimir Stepanov
Media Strategy Director
PepsiCo
PwCConclusion: Advertisers are increasingly shifting to
2 programmatic ad buying and relying on in-house expertise
““““
• Brands are extensively building up their
in-house expertise in programmatic
buying. A growing number of companies Our top clients have long had
are running their own campaigns and their own agencies within their
companies. For transnational
setting up business units that specialise
companies, the trend towards
in digital advertising.
in-house is set by head offices
• Large Russian companies and global in Europe and the US. In
companies with experience in creating Russia, the market is more
complicated, therefore
business units offshore are increasingly
implementation of the in-house
interested in setting up in-house
is more difficult for advertisers.
programmatic buying functions. At the
same time, experts note that given the Elena Klimenko, Chief Innovation
diversity of the local market, the growth Officer
prospects for in-house buying in Russia Publicis
are still unclear, and it is difficult to set
up buying on all local platforms.
• Agencies believe that the movement
away from third-party expertise could
make it more difficult for companies to
““I believe that in the future we
will shift to in-house buying.
develop a clear picture of the market. This is a growth point and a
Given the large number of local players, major objective for us. We
companies need relevant expertise and partner with professionals, but
partnership experience. the speed of decision-making
and data handling can
contribute to capability building
within the company. Currently,
it is not easy for the bank to
transfer client data to other
parties.
Rostislav Orlov, Head of Digital
Performance
Raiffeisen Bank
17Solution users
Conclusion: Brands are expecting to see transformational
3 approaches in creative ads, attribution and optimisation
• Experts have noted a trend in how
functions are being distributed between
agencies and brands: companies have
started to collect and analyse user data,
while agencies engage in research,
strategic planning and partnerships,
“
I would say that agencies and
brands have split their
functions. Industries that
operate mainly on the Internet
have played an important role
drawing upon their expertise in advertising
in the transition to in-house
tools, knowledge of key trends and expertise. Still, clients have not
experience in planning large-scale ad abandoned agencies even as
campaigns. they seek to build up their
internal expertise.
• Meanwhile, large performance-oriented
brands have built dedicated teams to
engage in buying. Customers with in-house
data pools (e.g., telecom operators, Arman Djamalov, Development and
Innovation Director
e-commerce platforms) were the first to
embrace data analytics. Brands focused on Media Direction Group
expanding their reach often seek to
outsource the buying process to agencies,
as brand awareness and reach campaigns
are labour-intensive and expensive.
“
Clients are setting up teams to
operate their in-house data
platforms, while research,
industry-specific tools and
other topics remain in the
domain of agencies.
Elena Klimenko, Chief Innovation
Officer
Publicis
PwC19
Solution users
Development of in-house ad
buying
“
Publici
In order to develop in-house buying and manage
s
campaigns, advertisers need specialists with diverse skill Group
sets. From a practical point of view, companies may not e
have enough work over the course of an entire year for
specialists with narrow skill sets. Currently, most of the
in-house teams consist of specialists working on
proprietary data platforms.
Elena Klimenko
Chief Innovation Officer
“
Large corporations have developed best practices on
launching in-house buying functions. Major advertisers
are trying to apply these best practices in other countries.
Their platforms are based on automated self-service
models where companies can manage ad campaigns
themselves by adjusting the settings. Russia’s online
OM
D
advertising market somewhat unique, however, and
differs from most countries where only two major
platforms—Google and Facebook—control the market.
The Russian market is far more diversified and local
players, including search services and social networks,
hold significant market share. International best practices
are thus less relevant and local expertise is more
important.
Anton Efimov
Digital Director
PwC21
Users
Brands believe that the appeal of major IT
platforms lies in their exclusive data and ad
inventory
Conclusion: Major brands trust large DSPs and major
4 platforms developed by IT companies
• Our respondents noted that most of their
budget is spent on ad placements on major
IT platforms, including Google, Yandex,
Mail.ru and Facebook.
• Brands believe that the large ecosystems
developed by major players provide greater
““
Usually, we plan to spend
about 80-90% of our annual
budget with major partners. It is
convenient, because we can
forecast all reach indicators
access to user data and are better and understand how to plan
equipped to reach large audiences (e.g., each campaign. We hardly ever
YouTube for Google, Facebook and use DSPs anymore, except
Instagram). Clients are confident in the when we have a unique offer.
transparency of services provided by major
players and in their technology solutions.
• Multinational companies tend to use global
platforms, which helps them to take a
uniform approach to managing their
advertising campaigns. Vladimir Stepanov
Media Strategy Director
PepsiCo
PwCConclusion: Major advertisers see inventory and traffic
5 quality at smaller DSPs as a “black box”
• When choosing DSPs, most companies
prioritise transparency and traffic
verification capabilities.
• As smaller SDPs rely on external ad
exchanges, control over the quality of
inventory is largely limited. This is a key
““
As for third-party DSPs—in
comparison with Google or
Yandex—a lot of effort is
required to verify and
thoroughly audit traffic.
challenge for major advertisers, who are
concerned about brand safety and are not
convinced that smaller DSPs can ensure
high-quality placements. Artem Lopukhin, Head of Media
Planning, Advertising and
• Advertisers are also interested in Sponsorship
optimisation algorithms and flexibility. Our MTS
respondents noted that small players are
more often ready to accommodate
customer requests and are open to
third-party verification, while large IT
platforms typically use in-house solutions.
• However, respondents highlighted the lack
of unique inventory or data offers from
““
Efficient algorithms and
transparency are critical for us
in addressing our customers’
needs. Customer and first-line
support is essential for us too.
smaller DSPs. If these services are lacking or
provided only with a delay, we
• Furthermore, respondents highlighted that may face difficulties in
pricing is paramount, because smaller implementing custom inquiries
DSPs use third-party audience data and ad for our clients.
inventory.
Sergey Efimov
Marketing Technologies Director
OMD OM Group 23
(Annalect Division)Solution users
Choice of ad placement
platforms
“
PepsiC
o
Both globally and in Russia, PepsiCo typically partners
with Google and Facebook. Among local ecosystems, we
work with Yandex and Mail.ru. DSPs without in-house
inventory are less transparent about where ads will be
placed, so they are a kind of black box. The entire chain is
not always clear. For example, to what extent can they
meet our brand safety requirements? We are a global and
public company and cannot allow ads to be placed with
inappropriate content. We must continuously monitor
things, but we prefer to solve problems before they
happen.
Vladimir Stepanov
Media Strategy Director
“
In our experience, platform-based optimisation algorithms
(primarily, Facebook and Google) work very well. We can
see the benefits from such campaigns, and the platforms
regularly offer up new algorithms to optimise the buying
process. While our expenditures on these vendors are
substantial, the algorithms produce tangible results. If we
talk about trial campaigns with moderate budgets, we
MTS
typically do not see a meaningful effect.
Artem Lopukhin
Head of Media Planning, Advertising and
Sponsorship
PwC25
According to our respondents, the market needs
free data exchange and new technological
solutions to develop further
Conclusion: Restrictions on the handling of personal data
6 will shape the future
• Our respondents believe that the further
“
development of programmatic buying is being
held back by the lack of free data exchange in Fragmented data has no
online and offline environments among market value. Globally, Facebook
players. and Google cover 100% of
• Audience data is largely collected by a handful the target audience, but in
of players, primarily large operators (e.g., retail Russia, there are other
and cellular companies) and IT platforms players, too. The market
(walled gardens). should be open for new
developments in marketing
• As the ecosystems of large players expand,
technology. We should start
data monopolies are created, making it
to transfer data and develop
increasingly difficult to obtain data from third
an index system to combine
parties. The toughening of legislation on data data from different sources.
collection has led data to be concentrated in the
hands of a relatively small number of IT
platforms.
• Respondents say that more flexible exchange
Anton Efimov, Digital Director
of audience data could help enhance targeting
and the development of new marketing OMD
solutions.
26Conclusion: Advertisers want to see the development of
7 new technology
“
• Advertisers are looking for more precise
targeting and audience microsegmentation
solutions, including enhanced algorithms for What really needs to be
improved is the automated
segmenting in-house and external data.
matching of segments and
• Respondents noted that the development of new creative ads and the search for
solutions for creative ad placement is another hypotheses, which would
promising area. optimise campaigns and make
• Some respondents highlighted that the lack of a the matching of segments
single reporting format and of guidelines to more efficient.
define fraud and brand safety is a challenge.
Mikhail Shklyaev, Chief
Transformation Officer
dentsu Russia
“
Lack of technological
solutions is not a critical
factor for us when choosing
agencies. But we look
positively at agencies
developing them. With their
“
own tools, the agency will be
able to differentiate
One of the barriers hindering growth is themselves from the rest for
technological constraints on making creatives advertisers and provide
and communicating with audience segments. additional competitive
Nowadays, custom creative technologies to advantages.
address the most relevant message to each of
the segments are still rarely used.
Rostislav Orlov, Head of Digital
Elena Klimenko, Chief Innovation Officer Performance
Publicis Raiffeisen Bank
27Solution users
The COVID-19 pandemic has led to a temporary
decline in image campaigns
Conclusion: Banners and video are currently very popular,
8 while new formats have potential for the future
• Advertisers noted that traditional formats like
TV and outdoor ads are relevant on the
advertising market, but the main formats for
online placements are standard size banners
and videos. For instance, brands that use TV
commercials as the key reach instrument
usually launch Internet campaigns with
““
In the context of information
overload, we must constantly
invent new ways to attract the
attention of our customers, and
the use of new formats is one of
online video services. them.
• Some advertisers acknowledged that smart
TV and digital-out-of-home ads are
promising formats for programmatic buying
and have already developed ready-made Elena Klimenko, Chief Innovation
Officer
solutions. However, far technology
constraints have been an obstacle to their Publicis Groupe
effective use.
• Advertisers are looking at new formats in
social networks like Instagram Stories and
TikTok ads—and some have already had
“
some success on these platforms. In
contrast to direct deals with content creators,
programmatic placement is less costly New formats invariably appear
thanks to automation. with the goal of attracting
viewers’ attention. However, it is
• Following the growing popularity of podcasts important not overdo it. For
and voice assistants, audio advertising is example, the Wi-Fi network
also a potential growth area, although this launched in the Moscow Metro
format is not capable of reaching large opened new opportunities for
audiences right now. advertisers, but consumers
were turned off by the sheer
number of advertisements on
the service.
Anton Efimov, Digital Director
OMD
PwCConclusion: The COVID-19 pandemic has led to more
9 digital and short-run performance campaigns
• In 2020, COVID-19 impacted the media
market on a global scale. In response, some
advertisers were forced to cut their
advertising expenditures or to transform their
budgets.
• Among the key factors driving the
“
Everybody is hoping for the
best and returning to image
placements. Products that were
going to be launched in the
summer were finally released
transformation of promo campaigns,
in the fall. Summer and late
respondents highlighted the transition from spring were dominated by
offline to online, as more and more performance campaigns.
customers started to shop online more
frequently. At the same time, brands opted to
shorten the customer journey and improve
targeting of the right audience, given the Arman Djamalov, Development and
numerous distractions on the Internet along Innovation Director
the consumer path to purchase. Media Direction Group
• There was also a temporary reduction of
image campaigns. For the most part, brands
“
maintained permanent or short-run
performance campaigns, but cast aside
traditional formats (e.g., switched from TV to During a recession, many
video). One of the few sectors where customers invest in in short
advertising budgets increased was in performance campaigns
e-commerce, where revenue increased looking for quick wins, and this
during the lockdown. crisis was no exception. The
main difference, this time,
• However, agencies acknowledge that this however, was that rapid
was a short-term trend, and the market advances in e-commerce and
returned to normal in the fall. the expansion of ecosystems
helped push the market in a
different direction that the
overall economy.
Mikhail Shklyaev, Chief
Transformation Officer
Dentsu
29Solution developers
Platforms are developing self-service tools in line
with the growing digital skills of advertisers
The presence of local ecosystems and social networks
distinguishes Russia’s programmatic ad market from
other global markets. All players have certain
competitive advantages and strategies. Based on our
interviews, we were able to identify several key trends in
the Russian market.
Conclusion: Self-service solutions for managing
1 campaigns are playing a larger role
• As advertisers have become more
“
comfortable with technology, platform
developers have expanded the tools they Historically, the full-service
can use for managing campaigns on their model was more widespread
own, based on the self-service model. for obvious reasons, as initially,
very few could understand the
• Some DSPs that used to run full-service process of programmatic
campaigns (e.g., Segmento and buying.
MediaSniper) have started to adopt
Evgeny Doronin, CEO
self-service solutions.
MediaSniper
• At the same time, companies are
developing clear interfaces and support
systems for advertisers, including 24-hour
help desks, personal managers and training
materials.
“
We think that a large share of
SME advertisers do not need
resource-intensive advertising.
Self-service would help us scale
up our business by engaging
with these advertisers.
Alexander Kulikov, Development
Director
Segmento
PwCConclusion: Large IT companies have the advantage of
2 unique data and inventory
• Major platforms and DSPs (e.g., Google Ads,
DV360, Yandex, Mail.ru) maintain data pools on
millions of users. Platforms collect data on
consumers’ interests, behaviour, online purchases
and other characteristics, which collectively
constitute their digital profiles.
“
Yandex is developing
services that have
become part people’s
everyday lives. This also
us to develop effective
• Most major platforms and DSPs collect and keep B2B products. By
user data in their walled gardens and restrict creating ads, we use our
access to other market players, creating a robust knowledge of our
competitive advantage against smaller DSPs. This potential customers care
approach to data storage and use also ensures about and how they
compliance with tightened regulations on data search for goods and
privacy (e.g., cookie constraints). services, and also
predict their potential
• In turn, most small DSPs are integrated with preferences.
third-party DMPs. The market the same audience
data that is available to mobile operators, retail
and finance companies. As a result, some DSPs
have recently announced partnerships or deals
with data operators. Maria Savitskaya, Head of
Yandex.Direct
• Another key factor that distinguishes the platforms Yandex.Direct
and DSPs of large IT companies from smaller
DSPs is their exclusive in-house inventory, which
contributes to greater platform flexibly in operating
ad inventory, monitoring low-quality viewings and
utilising unique formats. Platform inventory attracts
advertisers by providing greater transparency over
ad placement and a clear source of traffic.
“
Along with providing
access to YouTube,
DV360 is directly
integrated with GA360,
an advanced analytics
solution, and enables full
control over media
indices and
cost-efficiency of
digital-media.
Anna Ketova, Google
Marketing Platform
Google DV360
31Solution developers
Data collection restrictions
“
We see that technology platforms with hard IDs are playing
an increasingly stronger role. All ecosystems are operating
now as walled gardens anyway… Everyone has survived
the adoption of the GDPR. However, given that many users
now reject cookies, advertising targeting capabilities are
going to need to change.
Publici
s
Group
e
Elena Klimenko
Chief Innovation Officer
“
Most large data owners and platforms have benefitted
from the GDPR, because they became monopoly owners
of user data, while small advertising platforms that
operate on third-party data and via open auctions have
struggled. One day, you opened an Google or Mail.ru
account and showed them your phone number and now
Den
tsu
they know all about you. For an open auction with
numerous third-party data, it is a difficult situation. If we
talk about Russia, I am pretty sure that within a year, we
will see deals with one or two telecom operators,
because user identification capabilities for independent
DSPs are shrinking.
Mikhail Shklyaev, Chief
Transformation Officer
PwC33
Solution developers
Solution developers are expanding access to
analytics and verification tools
Conclusion: Users and providers are both looking for more
3 transparency
• In response to advertisers’ demand for
transparency, providers have developed a
variety of reporting systems. Most of our
respondents say that they have access to
detailed reports in their personal accounts with
campaign data and the possibility to download
“
The data accessibility,
openness and transparency
provided by DSPs are
important for self-service
the data to do analytics offline. users. Soloway discloses
detailed statistics on the cost
• Flexibility and verification are key strategic structure, including the cost
proprieties for DSPs. Companies provide custom of media, data, all extra
reporting services and analysis of campaign technology mark-ups and
effectiveness. In addition, most DSPs allow their detailed data on buying
clients to directly engage with auditors and channels, as well as offers
verifiers upon request. plenty of opportunities to
obtain various data and
• However, DSPs highlighted the lack of uniform integrate with customer
standards on fraud and brand safety, which may systems.
lead to inconsistency in verification. Some
international verification systems do not deal
with Russian companies that can only obtain
local certification (e.g., IAB instead of MRC).
• As walled gardens, IT platforms are less inclined
to allow independent verifiers, if they do not Roman Filippov, CEO
directly integrate with an auditor. Nevertheless, Soloway
platforms use advanced in-house analytics to
measure effectiveness and identify low-quality
traffic.
PwCConclusion: Agencies are deeply engaged in developing
4 new technology
• Major advertising agencies are working on
developing their own IT solutions, from
campaign data systematisation to buying
inventory via trading desks.
• Most solutions enable customers to
manage campaigns in via one-stop shop
““
Market players are
expanding their geographic
reach, while ad inventory is
growing. This ecosystem
makes it difficult and
and include personal accounts with practically impossible to
integrated dashboards and systems for create an all-embracing
selecting the right audience or analysing technology that would be
platform and DSP data feeds. meaningful for most
platforms, including trading
• Advertisers mostly view these products as desks and verification
tools, rather than as important factors to platforms (for example, IAS
keep in mind in choosing a partner. or Oracle). The solutions on
the market already have
• Agencies understand that the structure of limited relevance. As an
the Russian market, particularly the agency, we value flexibility
presence of large local players, makes the as a key skill, especially
creation of a universal tool for buying ad during an economic
inventory that would work for most clients downturn. Therefore, we see
more complicated. added value in creating
products based on
• Nevertheless, agencies are building up technology that can address
their R&D functions and drawing on foreign our customers’ needs.
experience.
Christina Movsesyan, CEO
Dentsu
(Amnet)
35Key variables to consider when choosing a
programmatic partner
• Scope and quality of • Sources of audience data
inventory • Data privacy issues
• Advertising formats
Inventory Data source
and and
advertising targeting
formats
01 02
Key factors
03 04
Customer
Analytics and
services and
reporting
support
• Collaboration
model
• Access to personal
accounts and • Optimisation tools
functionalities • Detailed reportingInventory and advertising formats
1 Scope and quality of ad inventory: It is important for advertisers to understand the type of ad inventory
that the DSP has (i.e., in-house or third-party). A key factor when choosing a platform should be whether
there is a straightforward and transparent process for buying inventory.
2 Available advertising formats: Depending on the goals of their campaign, advertisers may want to
consider using unique or custom-made advertising formats and creative ads. In many cases, such formats
may perform better.
Data source and targeting
1 Sources of audience data: Most DMPs make third-party DMP data available. However, some players
aggregate unique audience data from in-house resources or partners. For advertisers, it is important to have
an understanding of the data sources used for targeting, as they directly impact the effectiveness of ad
placement and the message delivered to the target audience.
2 Concern about user data and privacy: Advertisers should also pay attention to issues of compliance with
data protection and storage regulations. Data downloaded by advertisers from in-house customer bases
must be kept confidential, too.
Optimisation and analytics
1 Optimisation tools: One of the main areas of difference among developers of programmatic solutions is
technology, especially optimisation solutions. Automated systems are generally more effective at
optimisation, but it is also helpful to have access to a manager who can oversee the whole process.
2 Transparent and explicit reporting: Analytics provide clients with transparency on budget expenditures as
well as on the effectiveness of ad placements. Clients can monitor and optimise results in real-time, as well
as optimise their expenses on future campaigns The more transparent and detailed the reporting is, the
more confident the advertiser will feel about its partner’s credibility. In some cases, advertising agencies
provide technology solutions to run analytics.
3 Integration and connectivity with third-party verifiers: The ability to connect to a third-party auditor or
verification system is another factor to keep in mind when selecting a partner. Independent assessments of
ad placements help to objectively measure damage from poor-quality impressions and gives the advertiser
an understanding of how its budget is being used.
4 Fraud controls and brand safety: Tool for detecting fraud and unreliable platforms can help to minimise
financial and reputational risk during the campaign. Depending on their goals, advertisers should review the
traffic control solutions that developers provide.
Customer services and support
1 Collaboration model and additional opportunities: Apart from traditional self- and full-service
collaboration models, developers offer a variety of added-on services, including trainings, technical support
and personal managers. By providing tailored approaches and support, advertisers are able to respond
quickly to any issues that may arise during an ad campaign.
Access to personal account and functionalities: Regardless of the type of collaboration model, clients
2 would be well served by using a personal account. The functionality of personal accounts may differ,
depending on the provider and the collaboration model. However, when choosing a platform, the advertiser
should make sure that the functionalities that they need will be provided.Key findings: Comparison matrix for IT platform
characteristics
Platform characteristics Google Ads Yandex.Direct
• Access to YouTube inventory • Yandex services
• Google services (including • Ad inventory of Yandex
search) Advertising Network (YAN)
Inventory • Ad network partners (Google partners
Display Network)
• User data from the Google • User data from the Yandex
ecosystem ecosystem
Audience data
and targeting
• Integration with major • Yandex.Metrica analytics
third-party auditors (MOAT, IAS, • Solution for real-time and offline
DoubleVerify) traffic monitoring
Traffic verification tools • Traffic verification with
Campaign Manager
• Customer support and direct • Customer support and direct
contracts with key customers contracts with key customers
• 24-hour help desk with Russian • Industry analytics and
Customer support speaking staff benchmarks
• Automated creative ad • Optimisation based on
placement and Ml-based Yandex’s AI algorithms
optimisation
Optimisation algorithms
• Creatives for YouTube (e.g., • Ads in Yandex.Maps
musthead) • Audio advertising
• Ads for search queries and • Smart TV placements
Creatives mailbox
• Display ads
• Audio advertising
• Smart TV placements
Conclusions Google Ads provides access to Yandex has extensive expertise
unique and exclusive Google with large parts of the Runet
inventory, including the largest audience and advanced AI-based
video platform, YouTube. Advanced optimisation algorithms. Numerous
verification and optimisation ecosystem applications enable
systems ensure ad placement access to unique ad formats and a
quality. wide audience.
Unique platform functionalities
PwC Standard platform functionalities Platform name* - interview with the platform was not held (as of February 2021)MyTarget Facebook Ads* Rambler PMP TikTok Ads Manager*
• Inventory of Odnoklassniki • Facebook, Instagram, • Ramble&Co Group • TikTok and news apps
and VK social networks Messenger services (e.g., Afisha)
• Mail.ru Group services
• Inventory of MyTarget
partners
• Direct deals with publishers
• User data from Mail.ru • User data from Facebook • User data from Rambler • User data from TikTok
Group (including social • Sberbank data
networks)
• Data marketplace
• In-house solution Fraud • Partnership with • Brand safety solution for • Third-party verifiers
Scanner DoubleVerify and IAS page sentiment analysis • Solution to prevent fraud
• Platform for ads visibility • In-house solution to prevent clicks
metrics fraud clicks
• Support from platform • Reference materials in • Full-service with personal • Reference materials in
managers public domain manager support public domain
• Expert consultations
• Trainings and webinars for
users
• Automatic optimisation, • Optimisation algorithms • Automated or • Optimisation based on ML
including tips on launching based on two parameters: semi-automated with expert algorithms on user
ad campaigns budget and goal support behaviour
• Expert support on
optimisation
• Social network ad formats • Unique formats for social • Any banners and video • Video ads up to 1 min long
• Smart TV ads networks: Stories, formats in news feeds at on app opening, in news
• Digital-out-of-home ads Messenger ads customer request feed, branded filters and
• In-door ads hashtag challenges
MyTarget offers inventory of Facebook makes it possible to Rambler, unlike other In 2020, TikTok was one of the
Runet major social networks place ads on social networks platforms, offers a full range of fastest-growing platforms
and enables user data from using simple, inventory reservation services. worldwide and on the Runet.
their platforms along with data easy-to-understand settings. It contributes to formats Respondents were pleased
obtained via data marketplace. Respondents highlighted adaptivity and quality of with the success of their
Facebook’s advanced metrics verifications. campaigns and performance
optimisation algorithms and that exceeded their
display policy, which prevents expectations.
users from being overloaded
with too many ads.
39Key findings: Comparison matrix for DSP
characteristics
Platform
characteristics Google DV360 Segmento Getintent
• YouTube • More than 20 major Russian • Access to foreign SSPs
• Google ecosystem SSPs
Inventory • More than 80 Display
Network exchanges
• User data from Google • Sberbank user data • Proprietary Datanautica
(including first-, second-, • OFD platform and Ozon technology for real-time
Data third-party data) partners data audience segmentation
and targeting
• Integration with major • Brand safety web crawler • Brand safety solutions and
third-party auditors and anti-fraud algorithms anti-fraud algorithms
Traffic • Traffic verification with
verification tools Campaign Manager
• Customer support and • Segmento operates in • Individualised customer
partnerships with key full-service format and offers support for both full- and
Customer customers customer support self-service formats
support • Campaign management by
accredited agency –
Google partner
• Automated creative ad • Automatic optimisation • Semi-automatic ML
placement and Ml-based based on recommendations optimisation based on
Optimisation optimisation on Segmento systems Getintent algorithms
algorithms
• YouTube creative ads (e.g., • Standard banner and video • Smart TV placements
True-view in-stream) formats, In-App
Unique creative • 3D-banners
ads • Smart TV ads
• Audio advertising
Conclusions DV360 provides access to Segmento is a part of the Getintent offers access to
unique and exclusive Sberbank Group, enabling foreign inventory and
inventory, including the largest access to unique data on user audience. Due to a flexible
video platform, YouTube. It has spending. In addition, this Collaboration model,
more comprehensive settings system maintains partnership customers can switch from
than Google Ads and provides agreements on data transfer self-service to full-service
access to third-party platforms from OFD and Ozon. mode and at any time receive
and integration for other personal recommendations
systems. regarding their campaigns.
Unique platform functionalities
PwC Standard platform functionalities Platform name* - interview with the platform was not held (as of February 2021)Media Sniper Hybrid.ai Between Soloway
• More than 20 major • Access to foreign SSPs • In-house Between SSP • In-house Adriver SSP
Russian SSPs with Russian and foreign
inventory
• In-house segment real-time • Hybrid DMP collects data • Audience segmentation • Adriver DMP for storage
overlay technology from mobile resources via DMP Vihub and segmentation of first-
and third-party data
• Brand safety web crawler • Friendly Index for brand • Proprietary anti-fraud • Traffic monitoring and audit
solution safety analysis solution in Adriver
• Simplified traffic • Solution for pre-bid traffic
verification via in-house verification
SSP
• MediaSniper primarily • Client introduction to • Between primarily • Model of white label
operates in full-service platform operation operates in full-service partnership (customised
mode with customer • Customer training materials mode with customer interface with explicit
support support analytics for advertising
agencies)
• Post-click/post-view • Automatic recommendations • Semi-automatic • Optimisation based on two
optimisation for start-up settings optimisation with settings: goal and cost
specialists involvement
• Smart TV placements • Standard banner, video and • Standard banner, video • Standard banner, video and
mobile formats and mobile formats mobile formats
MediaSniper diligently Hybrid is focused on developing Between has a full technology Soloway maintains integration
develops technology solutions: programmatic on mobile stack for ad placement, with in-house SSP along with a
algorithm for real-time custom devices. This service maintains including in-house SSP, which management and audit system
segments overlapping for more an in-house DMP and ensures flexible approach to for Adriver online ads. In
precise audience targeting, connectivity to many analytics ad formats and traffic addition, the company offers a
brand safety analysis. systems to collect data from verification. white label partnership model
mobile devices. for agencies and ad placement
based on reservation.
413 Market players PwC
43
Programmatic market players
List of surveyed players
Technology
Technology solutions
users
Advertising
IT platforms DSPs
agencies
• Dentsu Aegis Network • Google Ads • Display&Video360
Russia • Yandex.Direct (Google)
• OMD Optimum Media • MyTarget (Mail.ru • Segmento
Group Group) • Between Exchange
• Publicis Media Russia • Rambler PMP • Soloway
• GroupM • Facebook Ads* • MediaSniper
• Media Direction Digital • TikTok Ads Manager* • Getintent
• ADV* • Hybrid.ai
• Accenture*
Advertisers Agency products
• Bayer • Xaxis (Group M) • Annalect (OMD)
• PepsiCo • MDP Programmatic (MDD) • Amnet (Dentsu)
• MTS • Aisek (ADV)
• Lada • AOD (Publicis)
• Yandex
• Mail.ru
• OZON
• Raiffeisenbank
The survey included interviews with two groups of The advertisers included major brands that spend
market participants: developers and users of significant resources on programmatic ad buying. The
programmatic ads. majority of these companies are experienced in ad
Our survey of developers included two subgroups of placement via agencies and in self-service campaigns.
respondents: large IT platforms (e.g., Google, Yandex) The survey shed light on the experience of agencies
and independent DSPs. and brands in programmatic ad buying and made it
Major advertising agencies were interviewed possible to identify the competitive advantages of each
as both users and as in-house solution developers. player.
The agency products are used for customised agency
needs and may include different tools: from analysis of
audience data and placement platforms to direct
buying via agency trading desks.
*As of February 2021, no interviews were held
PwC45
3.1 Large IT companies PwC
47
Platform profile: Google Ads
Google Ads Platform providing
Collaboration model Main model: self-service
Additional collaboration options:
• Personal manager support
• Technical support
Transparency and • Pricing model: sale of in-house ad inventory
pricing • Transparency: personal account owners have access to full data on all ad campaign
budget categories
Ad inventory • In-house inventory: Google services (e.g. YouTube, Google search, Google.Play)
• Third-party inventory: Google Display Network platforms (e.g. ivi.ru, Twitch)
Targeting In-house data:
• Google Audience 360 based on the Google ecosystem (such as YouTube, Gmail, Google
Maps, Search) audience data
• First party Audience based on client campaign data from Google Analytics 360 and
Floodlight
• Category targeting based on the audience’s interest in product categories or services
• Keyword contextual targeting based on keywords that appear in Google search
• Technology targeting based on the device and Google environment used (e.g. Android
OS, type of device)
• Geographical targeting based on Google Maps data
Third-party data:
• CRM. Targeting based on advertiser’s CRM data
“
We like the Google Customer Service team. I would put it like this… It is clear
that international companies provide more sophisticated support to customers.
They actively engage in planning our ad campaigns and offering quality insights
on our business plan.”
Artem Lopukhin, Head of Media Planning, Advertising and
Sponsorship
MTS
“
Undoubtedly, Google is our channel of choice for digital advertising. They have
the largest traffic with the target ROI.
Oleg Dorozhok, Chief Marketing and AdRevenue Officer
Ozon
PwCaccess to Google exclusive ad inventory
Ad formats
• Image & HTML banner ads
• Lightbox
Text and Image • Search ads
• Native
ads • Dynamic ads
• Gmail Ads
• Discovery Ads
• Video Lightbox
• TrueView for Bumper Ad / Shopping Ad
• Musthead
Video • TrueView for Video Discovery
• Out-Stream video ads
• Native in-banner videos
• TrueView In-stream
Audio • Yes (beta version)
• Image & HTML banner ads
For mobile • Interstitial
• Click-to-app
devices • In-App
• Click-to-call
Optimisation strategies • Machine-learning-based automation depending on the campaign’s goals
Integration with analytics • In-house: Google Ads, Google Analytics, Campaign Manager, Firebase
systems • Third-party: Salesforce, Zapier to import offline conversions. A link to any vendor can
be set up for app analytics purposes. Available integration with trackers, e.g. Adjust,
Appsflyer
Access to a personal “One-stop-shop” personal account to manage ad campaigns, develop creative and
account generate ads reporting
Reporting • Online dashboard reports on the customer’s personal account
• Report export (Excel, csv)
• Additionally: API data can be exported for metrics analysis by third-party systems.
Also, data can be exported to Studio to generate custom reports
External verification • Independent audit: integration with MOAT, DoubleVerity and IAS directly or data
analysis in Ads Data Hub
• Proprietary technologies: Campaign Manager 360
• Third-party solutions: Weborama via Ads Data Hub
MRC / IAB certification MRC accreditation by such metrics as video impressions, clicks, viewable video ad
impressions and sophisticated invalid traffic detection
User Privacy • Compliance with international data protection laws
• Compensation for loss of traffic: for example, conversion modelling and Google
account-based targeting
• Analysing audience data based on data pools for groups of 50 people in Ads Data Hub
• Third-party DMP connections are restricted
• Restrictions on sensitive categories
• Limited data storage period
49Platform profile: Yandex.Direct
Yandex.
Service for creating, placing and managing ads
Direct
Collaboration model Main model: self-service, full-service
Additional collaboration options:
• Personal manager support
• Industry benchmarks based on anonymous customer data
• 24/7 technical support
Transparency and • Pricing model: service fee is included in ads dynamic rates.
pricing • Transparency: personal account owners have access to full data on all ad campaign budget
categories
Ad inventory • In-house inventory: Yandex ecosystem services (e.g. Search, Yandex.Zen< Yandex.Music)
• Third-party inventory: resources (e.g. avito.ru, mk.ru) connected via the Yandex
Advertising Network (YAN)
Targeting In-house data:
• Sociodemographic targeting based on machine learning algorithms (the Crypta technology
allows to show relevant ads with account of anonymous audience data on internet
behaviour) and registered customer profile data
• Short-term and long-term targeting based on data from Yandex services and the results of
machine learning
• Targeting by customer profiles based on data from Yandex services and the results of
machine learning
• Contextual (keyword) targeting based on Yandex search queries
• Geographical targeting based on Yandex.Maps data
• Device targeting based on data from Yandex services
• Audience targeting based on Yandex.Metrica data
• Category targeting based on content category search data from Yandex services and
partner sites
Third-party data:
• Integration with third-party DMP databases. Targeting based on the integrated partner
DMP data
• CRM. Targeting based on advertiser’s CRM data
PwCon Yandex and its Advertising Network (YAN) partner sites
Ad formats
• Text ads and text-and-image ads
• Site-based or feed-based dynamic text ads
Text and Image ads
• Graphic banners paid for on CPC, CPM and CPA basis
• Smart banners (interactive feed-based banners)
• In-stream
Video
• In-page
Audio Audio ads up to 30 sec. (without/with banner)
• In-App (rewarded)
• Image banners
• Native in apps
• Dynamic ads
For mobile devices • Interstitial
• Themed banners (for Yandex.Zen)
• Ads in Yandex services (Yandex.Maps,
• Accelerated mobile pages
Yandex.Navigator)
Smart TV Yes
Additional
The interface has an Ad Banner Builder and a video Ad Builder with template videos
information
Optimisation strategies • Automated optimisation (including bids) based on the budget parameters and
campaign goals using Yandex AI algorithms
• Creating custom applications or using external bidding systems connected to
Direct’s API
Integration with analytics • In-house: Yandex.Metrica, AppMetrica
systems • Third-party: integrated systems (e.g. K50, AppsFlyer)
• Additionally: option to export data from Yandex.Metrica to other analytics systems
Access to a personal • All-in-one personal account to manage advertising campaigns, develop creative and
account generate reporting (under both self-service and full-service models)
• A special management format for agencies (different access levels for agency
specialists: a single account for all campaigns and a separate access for different
campaigns)
Reporting • Online reports are available in the customer’s personal account in a dashboard and
Excel format
• Additionally: industry benchmarks based on advertisers’ anonymous data, brand-lift
reports on the standard interface, post-view for individual customers
External verification • Independent audit: integration with MOAT*
• Proprietary technologies: in-house system of real-time traffic analytics and ad views
offline processing
• Third-party solutions: integration with MediaScope, Weborama, Adloox*, AdRiver* via
a separate platform
MRC / IAB certification IAB Tech Lab Measurement compliance certification
User Privacy • Compliance with international laws (e.g. GDPR)
• Data is anonymised on uploading to Yandex.Metrica and Yandex.Audience
• Users can request that data be deleted or restricted
* As of December 2020 is undergoing integration via a separate platform
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