Any changes in the life of tech companies like Yandex or Google have a direct impact on their stocks. This is common knowledge. The reason is simple: new products and services lead to new customers. In case with companies operating search engines, it means new visitors and more money coming from contextual advertizing.
According to Eugene Olkhovsky, ’s leading expert in financial markets for Canada, services directly connected with advertising present special interest to investors. Not so long ago, Yandex announced the retargeting of Яндекс.Директ (direct.yandex.ru).
What are the strengths of retargeting as a method of sales increase? How will it influence the company’s stock? Let’s ponder on these questions in this article.
Yandex Retargeting
Not so long ago, Yandex announced the beta-testing of the retargeted advertising service. The renewed service will target those who have already visited the advertiser’s website. From now on, all the visitors will be divided into categories based on their behaviors. Each group will be targeted differently (with help of different ads).
The retargeting plan will help the advertiser to bring the customer back to the website, thereby increasing the efficiency of the advertising campaign. For example, the renewed service makes it possible to find out what products and services the customer bought previously. Therefore, the service may offer related products and services as well as discounts and promos.
The service is flexible and customizable. For now, any advertiser can test it for free while it is in beta-testing.
Experts on Internet Retargeting
Retargeting is a form of targeted advertising. Ads are targeted to consumers based on their previous purchases or search requests.
When visiting a website for the first time, only 2-3% of the visitors eventually become customers. Therefore, experts assume that in order to increase the percentage of buyers, it is necessary to make people visit the site up to 7 times. That is what retargeting does.
Will retargeting influence Yandex’s stock?
Retargeting is definitely a positive factor for a company’s stock.
Google and Yandex keep seeing their stock appreciating. Google’s stock is more volatile. Yandex’s stock makes more shallow pullbacks.
Yandex’s retargeting is a positive factor. However, it has an indirect impact on the market. The more positive factor is that American investment funds believed in Yandex’s bright future and started purchasing its stock.
As of February 5th, Yandex and Google’s stocks are bullish and trading around $24,24 and $759,02 per share correspondingly.
The charts below, courtesy of , reflect the current state of affairs in the markets of Google and Yandex:
