Mail.Ru Group wants video advertising out of control of Gazprom Media Digital

    Mail.ru Group takes step by step to engage in the sale of advertising alone. Now, the turn can reach video advertising. It is likely that the company will still decide to terminate its cooperation with Gazprom Media Digital (GPMD), its main supplier of advertising video products, as there are certain complaints about GPMD regarding the monetization of videos on Mail.ru Group resources, Vedomosti reports .

    The decision has not yet been made, but, according to newspaper sources, most likely, the contract with GPMD, which ends this year, will not be extended.

    Mail.ru Group signed an exclusive contract with GPMD back in 2013. GPMD sells ads on the company's social networks: Vkontakte and Odnoklassniki. However, according to TNS, 80% of the GPMD business is in VKontakte. In February of this year, according to TNS estimates, 24.6 million users watched videos on the social network. The number of users who could see GPMD ads there is estimated at approximately 16.9 million people.

    The Russian video advertising market, according to the Association of Communication Agencies of the Russian Federation, increased by 35-40%, and sales increased to 4.6 billion rubles.

    Official VKontakte revenue data from video ads isn’t disclosed. An independent expert in the advertising business, talking with Vedomosti, estimated this figure at about 500 million rubles over the past year.

    Since Mail.ru Group completely bought out VKontakte in September 2014, it began to gradually transfer advertising sales under its control. So, in February 2015, cooperation with IMHO Vi, the largest seller of RuNet advertising , was terminated .

    Soon after, the group launched a single platform of mobile advertising MyTarget, which allows you to publish ads for three social networks at once: Vkontakte, Odnoklassniki and My World.

    Sources familiar with the matter believe that Mail.ru Group is heading in the right direction, as their advertising should not be under the control of another major market player.

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