In a partnership announced in February, Google and Yandex, the most popular search engine in Russia, will cooperate to allow their respective advertising platforms to access each other’s inventory.
Image courtesy of Flickr user Carlos Luna
In the deal, Google’s demand-side ad platform, DoubleClick Bid Manager, will be connected to Yandex’s real-time bidding system. At the same time, Yandex’s demand-side platform, AWAPS, will become part of the DoubleClick Ad Exchange, Google’s real-time bidding marketplace. Real-time bidding is a means by which online ads are bought and sold on a per-impression basis in an instantaneous, programmatic marketplace, similar to financial markets. Advertising buyers bid on an impression and, if the bid is won, the buyer’s ad is instantly displayed on the publisher’s site. According to The Next Web, this means that Google’s clients will have access to Yandex’s advertising inventory, and Yandex’s clients will be able to bid for ad display space in the global network of DoubleClick Ad Exchange partners. While Google has always lead the market in ad display optimization, Yandex brings their MatrixNet technology which learns user behaviors to target ads to consumers more precisely. Together, Google and Yandex may create the ultimate ad platform delivery system, according to Search Engine Watch. In a recent blog post about the partnership, Yandex stated that the growing popularity of such automated systems has made it necessary for them to participate in the global ad exchange market. The switch from human-based to technology-based mediation in advertising trading helps to keep Yandex relevant globally. The partnership, made to “facilitate global networking and open competition in digital marketing” noticeably contradicts Russia’s current trend of isolation in other communication technologies, such as social media. However, Yandex also signed an agreement with Facebook in January to create a social search feature that provides Yandex visitors related, real-time public posts from Facebook alongside other search results. With the bilateral partnership agreement already signed, Google and Yandex are now in the process of implementing the ad cooperation project, which only relates to display advertising, not text-based contextual advertising. The goal of the project is to raise the quality of ads for users globally, by increasing competition among advertisers and bidders and generating higher bids at auction. Yandex accounts for about 62% of searches made in Russia, while Google accounts for about 67% of searches made in the United States.