MTS will catch buyers – Kommersant

MTS plans to invest up to 1 billion rubles by 2026. into advertising technologies that allow companies, primarily in the e-commerce sector, to provide consumers with personalized product recommendations. Previously, similar advertising products were provided by Google, Criteo and RTB House, which limited work in Russia. Participants in the advertising market estimate the segment of such services at 2–2.5 billion rubles. But MTS will have to compete in it with Yandex and VK, which already offer such services, as well as other telecom operators and advertising groups that plan to develop these technologies.

MTS told Kommersant that by 2026 they will invest up to 1 billion rubles. in digital advertising technology. We are talking, in particular, about dynamic retargeting – personalized product recommendations that are formed on the basis of the analysis of data on consumer behavior. The development of the technology includes the creation of a model that, based on data analysis, will form the most relevant recommendations, and its training on anonymized data to create a portrait of online shopping behavior. MTS says that the company’s model is already being tested by several companies in the e-commerce market.

In February, MTS already became the owner of 67% of the Buzzoola native advertising platform. Then it was clarified that the company provides for the possibility of buying out another 33% of Buzzoola in 2024, and MTS itself plans to accelerate the development of advertising technologies (AdTech). In April, MTS acquired 100% of Segmento LLC (advertising platform Segmento) from AFK Sistema’s venture fund Sistema_VC.

After the outbreak of hostilities in Ukraine, large advertising platforms such as Google, Criteo, RTB House, providing retargeting services, suspended their work in Russia. According to a Kommersant source in the industry, after their departure, a niche of 2–2.5 billion rubles was vacated in the segment.

Other telecom operators also plan to develop projects in the field of retargeting. So, Tele2 sees an increase in demand for domestic offers from e-commerce. “We consider development in this segment and assess the market as promising, but we do not disclose plans,” the company said. Vimpelcom (Beeline brand) says that they have been developing a dynamic remarketing project for the last year and are conducting pilots. “The full development of technology requires constant investment. At the same time, investments are justified, since the mechanics allow you to personalize the offer and are focused on solving the customer’s performance tasks,” explains Ekaterina Gammel, advertising business director of the company.

MTS will also have to compete with Internet companies in this segment. Yandex has similar solutions: “Online stores are actively investing in smart banners in Direct, which work on dynamic retargeting technology, seeing real efficiency for their business.” VK said that a similar technology has been operating on their platform for more than ten years: “At VK Advertising, we are developing dynamic retargeting technologies that take into account not only the actions performed by users in a mobile application or on a business website, but also the activity of other buyers from similar features.”

Advertising holdings are also interested in the direction. Thus, Anna Planina, director of digital technologies at NMi Group, noted that the company plans to create technological solutions that are in demand among customers. “We are not yet ready to name the amount of funding,” she said. Group4Media notes that retargeting is useful for many businesses. “We are experimenting with different approaches internally, evaluating a wide pool of partners and solutions,” says Natalia Baluta, director of the company’s innovation and analytics department. Sbermarketing noted that they have been developing their own technological base and products to increase marketing efficiency for a long time. But there are also market participants who are not so positive. Thus, the executive director of SA Media Nikita Pribylovsky noted that the company offers retargeting to customers for whom it is relevant, “but in the last year the demand for such services has decreased.”

Julia Yurasova