SMX London presentation from Yandex on organizing teams for successfully executing SEM in emerging markets.

1. 1 “Organizing for Success in Emerging Markets” 17 May 2011

2. 2 Agenda Configuration Strategies Market Trends

3. 3 Configuration Strategies

4. 4 Three Broad Strategies “Global Command & Control” “Regional Hub” “Local Partner”

5. 5 “Global Command & Control” Centralized team, usually run out of Corporate HQ Usually very highly skilled in SEM tradecraft Very engaged and data driven

6. 6 “Regional Hub” Decentralized, using regional teams Generally more integrated into regional marketing strategies Balancing global data needs with local realities; may also have local partner

7. 7 “Local Partner” Direct relationship between HQ and local market partner HQ “knows what they don’t know” Local market differences are prioritized over global needs

8. 8 Customer Strategies Brand KPI’s Conversion “Global Command & Control” “Regional Hubs” “Local Partners” Strategy = 1 Customer; size of bubble indicative of size of spend

9. 9 Potential Tradeoffs “Global Command & Control” “Regional Hub” “Local Partner” Global Reporting Consolidation Coordination Costs Localized KPI Performance Localization Success Translation Accuracy Understanding of Search Engine Use of Bid Management Platform = Positive = Negative = Neutral

10. 10 Trends

11. 11 International Market Support “Alternative” Search Engines are making it easier to do business outside local markets Dedicated teams/services for non-local market clients Support in English and help getting you started Baidu International Services - http://is.baidu.com Yandex International Business Development - http://advertising.yandex.com Varying degrees of success but improving

12. 12 Large Conversion Focused Budgets Seeing large conversion focused budgets moving to “Global Command & Control” Enterprise class bid management platforms are supporting change World class SEM leaders are usually driving the change internally Global accountability and transparency; budgets move to highest ROI

13. 13 Complicated Global Scenarios Drive for global accountability creates friction Awareness of individual and team motivations are important Reducing complexity reduces costs and performance; balance tradeoffs Communication and relationships are key to success; can’t be built from a distance

14. 14 Thank You! Preston Carey Director, Business Developmentpreston.carey@yandex.ru