While Google Ads dominates global search advertising in many markets, in Russia, it’s Yandex Ads that reign supreme, as a powerful gateway to over 90 million users. But beyond sheer reach, Yandex’s hyper-local targeting and AI-driven personalization used to be a not-so-secret weapon for brands looking for BRIC growth in Russia. But despite this market dominance, Yandex Ads is no longer available to US, EU, or advertisers in many markets globally. To learn why, read on.
Yandex is Russia’s leading search engine, with around 71% of Russia’s search engine traffic share. Its comprehensive digital ecosystem includes search, maps, cloud services, and Yandex Ads, an advertising tool for businesses looking to expand their reach.
Yandex and the Legacy of Arkady Volozh: Russia’s Dominant Search Engine
Yandex, often dubbed “Russia’s Google,” was co-founded by Arkady Volozh in 1997 during the dotcom boom and quickly grew to dominate Russia’s online search market. Volozh, alongside his co-founder Ilya Segalovich, built Yandex into a tech juggernaut, expanding from search into e-commerce, AI, ride-hailing, and cloud computing services. At its peak, Yandex reached a market value of $30 billion and listed successfully on Nasdaq. Volozh’s vision propelled Yandex to become the dominant force in Russia’s digital ecosystem, boasting the lion’s share of the country’s online advertising market and driving the country’s tech innovation for decades. However, Volozh left Russia in 2014, settling in Israel, where he began expanding Yandex’s technological innovations globally.
Yandex Ads for BRIC Market Reach
BRIC markets – Brazil, Russia, India and China – have been on a course of unprecedented growth in the past two decades. As of the pandemic, GDP in purchase power parity (PPP) for BRIC markets lapsed that of the G7, and by 2024, BRICS now control 35% of the world’s GDP compared to 30% held by the G7. During this journey, as Russia grew to contribute 10%, or $5 trillion to the $56 trillion of spending power of BRIC markets, Russia became a high demand market for brands looking to capitalize on this high rate of growth.
Foreign businesses use Yandex Ads to tap into Russia and neighboring countries, where Yandex is the go-to search engine and Google isn’t used. With its audience comprising almost 90 million monthly active users, Yandex Ads connects businesses with a younger, tech-savvy demographic across Russia, former Soviet block countries like Belarus, Azerbaijan and Kazakhstan, as well as Turkey, leveraging localized expertise to maximize ad performance in these regions.
The History of Yandex Ads
Yandex was founded in 1997 by Arkady Volozh and Ilya Segalovich, originally as a search engine for the Russian language. The company quickly established itself as Russia’s answer to Google, offering innovative features that catered to the local market. Over time, Yandex expanded its services to include Yandex Ads, making it a comprehensive platform for search and advertising. The advertising platform, Yandex Direct, was officially launched in 2001, marking its official entry into the digital ad space. Yandex Ads became popular because it could tailor ads for the Russian-speaking audience, giving it a significant competitive edge in Eastern Europe and beyond. In the 2010s, Yandex became the dominant search engine by capturing over 60% of the local market. They began expanding internationally, targeting countries like Turkey and Belarus.
Beyond search, Yandex has pioneered several technologies, including machine learning, AI-driven ad placement, and geo-targeting features in its Yandex Ads platform. The company has consistently integrated cutting-edge technologies, such as neural networks and real-time bidding. This leadership in technology has solidified Yandex’s position not just in search, but also in advertising solutions across Russian-speaking and other markets.
Comparing Yandex Ads with Google Ads
Yandex holds a significant share of the search engine market in Russia, while Google dominates globally with over 81% of the global market share. Google Ads, while highly powerful in its targeting, does not provide the same level of localization in the Russian market that Yandex can. Both platforms offer tools for demographic targeting and audience segmentation, but Yandex Direct is designed to better capture the unique behaviors of Russian users. For example, Russian users prefer contextual advertising and personalized ads, which Yandex Direct excels at. On the other hand, Google Ads is more suited for a general audience, with its algorithms designed for global relevance, making it less customized for the Russian market.
One of the key advantages of Yandex Ads is its typically lower cost-per-click (CPC) compared to Google Ads in competitive markets, allowing for more cost-effective campaigns. However, Google Ads offers a larger audience and wider range of markets, which may justify its higher pricing in some cases.
Why Yandex Ads is No Longer Available to USA Advertisers
In recent years, however, Yandex Ads faced limitations in availability to U.S. and some EU countries advertisers due to increasing regulatory scrutiny and geopolitical tensions. Yandex is currently on the Office of Foreign Assets Control (OFAC) list of sanctioned entities and persons as a result of Executive Order 13662 regarding the war in Ukraine.
Strained relations between the U.S. and Russia have led to sanctions and restrictions that impact many industries, but especially digital advertising. Yandex, like many Russian companies, must comply with both Russian and international laws. Due to sanctions imposed by the U.S. government, Yandex has either restricted or fully stopped offering its advertising services to U.S.-based companies to avoid legal and financial penalties. While Yandex Ads remains a strong platform for foreign advertisers outside the U.S., companies within the U.S. have been forced to explore alternative platforms such as Google Ads and other local solutions. This has limited the reach of Yandex to a specific set of global advertisers, primarily those outside the sanctioned markets.
Arkady Volozh’s Exodus and the Future of Yandex
In 2014, Volozh left Russia to settle in Israel, where he began expanding Yandex’s technological innovations globally.
Following Russia’s invasion of Ukraine, Western sanctions placed a major strain on companies tied to Russia, including Yandex. The European Union sanctioned Arkady Volozh, forcing him to step down as Yandex CEO in June 2022. With sanctions limiting Western companies’ ability to engage with Russian businesses, Yandex’s ability to attract foreign advertisers took a significant hit. However, with the successful completion of a deal to split Yandex’s Russian and international assets in July 2024, the situation shifted. The newly formed Dutch-based Nebius Group, now headed by Volozh, is separate from the Yandex brand and Russia. This new structure opens the door for Western advertisers to potentially engage with Yandex’s Russian services, as Volozh himself is no longer linked to the Russian company. For U.S. and European advertisers, this split presents opportunities to once again consider Yandex for marketing efforts in Russia, although the Kremlin’s control over the newly independent Yandex raises questions about international expansion.
Volozh’s Denunciation of the War and Yandex’s Future Under New Russian Ownership
In August 2023, Arkady Volozh made headlines when he publicly denounced Russia’s invasion of Ukraine, sparking speculation that Yandex was on a course to shake sanctions, in an effort to reposition the company outside of Russia.
However, these hopes were short-lived. By February 2024, a deal was reached for Yandex to sell off its Russian operations to a consortium of Russian investors, including senior management of Lukoil, the Russian energy conglomerate. As a result, Yandex’s Russian operations remain firmly within Russia’s state internet apparatus. Volozh has fully separated from Yandex, and his Nebius Group is now focused on AI infrastructure and innovation outside of Russia. Meanwhile, Yandex continues as a powerful, state-aligned tech giant in Russia, and trading of the Yandex brand under its new owners commenced on the Moscow Exchange in July 2024 under the ticker YDEX, where the stock rebounded from a 2022 low of 1600, jumping 1.5x to over 4000 by fall of 2024.
Is Yandex Ads a Good Fit for Foreign Advertisers?
Yandex Ads offers a strong entry point for businesses targeting Russian-speaking markets, particularly Russia and neighboring regions. With lower competition compared to global giants, foreign advertisers often benefit from reduced Cost-per-Click (CPC) and increased ad visibility, which can result in a higher return on investment (ROI). While Google Ads is ideal for reaching a global audience, Yandex Ads is more effective for tapping into specific local markets where Yandex holds dominance. The biggest downside is its availability, since US advertisers no longer have access to the platform.
For foreign businesses seeking to expand into Eastern Europe, particularly Russia, Yandex Ads should be part of their marketing toolkit, if your country allows it. It offers targeted access to a large, engaged user base, often at a lower cost than Google. The platform is ideal for companies with goals to penetrate regional markets and diversify their digital advertising spend.