Internet-Companies Booming at Double Speed

Internet-Companies Booming at Double Speed

One of Russia’s most popular Web search engines, Yandex reported the 2005 results Tuesday. It achieved US GAAP net profit of $13.6 million and sales of $35.6 million in 2005, 94 percent and 109 percent up on year respectively.

Yandex reported yesterday the US GAAP net profit of $13.6 million and sales of $35.6 million for 2005, reflecting 94-percent growth in net profit and 109-percent growth in sales over the year. In Yandex, they attribute the gains to organic expansion of business. “We didn't launch any new business models past year; the company was just stepping up along with the market,” said Arkady Volozh, general director at Yandex. “In growth, the Internet promotion was ahead of other advertising,” Volozh pointed out and said that context advertising was the leader in Internet promotion.

According to Yandex, Russia’s market of Internet promotion doubled past year to $100 million; context advertising covered 40 percent of the amount and banners took the remainder.

Yandex estimate fits the expert forecasts. The analysts expect the context promotion to annually gain 100 percent to 150 percent in the near years.

“Big Internet-companies of Russia have failed so far to efficiently launch context ads placed on some thematic sites, which Google aggressively promotes worldwide,” said Igor Ashmanov, general director of Ashmanov & Partners. “While eyeing this empty niche, Google has entered Russia’s market and, quite probably, intends to aggressively fill it. This may give even 150 percent on year.”