Begun, Price, Ferra

"Runner" — the first Russian service of contextual advertizing with payment for transition and auction pricing. The company services tens of thousands of clients, showing advertizing by that who shows intentions to purchase goods or service of the advertiser.

The Acting CEO of Runner is Alexey Romanenkov (November, 2011)

Services

Media partners among whom there are Poster, Odnoklassniki, Rambler, Google, Mail.Ru, RuTube and Yahoo! — daily direct visitors to the websites of clients of Runner. Service allows to broadcast advertizing in other advertizing systems, first of all, in Google AdWords.

"Runner" provides to advertisers and the agencies access both to own products, and to products of the popular and demanded by clients external services, allowing to manage at the same time advertizing campaigns from one interface. And thanks to cooperation with Google clients of Runner have an opportunity to considerably increase a scope of audience of search systems.

Performance Indicators

2011

• "Runner" - the advertizing network, largest in Runet. The monthly audience of advertizing network of Runner (not including audience of external services and mobile platforms) makes more than 26 million users (Web Index-Russia 100,000+, audience of 12-54 years, September, 2011). The dealer network contains over 2500 accredited advertizing agencies in 16 countries of the world.

• According to the research TNS Web Index, the monthly audience of advertizing network "Begun" (not including audience of external services and mobile platforms) makes 27 million users, and daily – 11.7 million (Web Index-Russia 100,000+, audience of 12-54 years, March, 2011). The dealer network contains over 2500 accredited advertizing agencies in 16 countries of the world.

2008

Revenue (2008, before payment of the VAT, IFRS) – $55.5 million.

Takes the 3rd place (13%) after "Yandex.Direct" and Google in the Russian market of contextual advertizing which volume for 2009 was 9.4 billion rubles (Mindshare Interaction assessment).

History

2002

In the 2002nd Andrey Andreyev started service of contextual advertizing Runner which became the first Russian rule of placement of contextual advertizing with payment for click. The advertiser needs to be only at the key word telling about his goods or services, and the banner or the link appear on the websites interesting to consumers of such goods and services. The advertiser pays for result (a hop count on its website), and the price of click is established as at an auction: who paid more — that more visible on the advertizing platform. Respectively, for a motor show the price of click was higher, than for bookstore. Having paid advertizing with bank transfer, the credit card or through the courier, it is possible to begin an advertizing campaign instantly. In Runet there was advertizing revolution.

"First worked at the empty computers at offices of friends — the CEO of Runner Alexey Basov remembered in an interview to "Finam of FM". — Then removed office in the shabby house on Ostozhenka: filling up with nights over the keyboard, shuddered from bustle of mice". In several months after start Runner came to operating profit. In one and a half years the firm waged campaigns for 20,000 advertisers at the average price of one — $50 a month. The monthly turnover reached $150,000.

2003

Potential investors began to address Andreyev. Then he was also acquainted with Victor Remsha from Finam. Remsha looked for online projects for investment. Met in cafe on Myasnitskaya and, discussing the transaction, used up several napkins, the investment banker tells. At the end of 2003 80% of stocks of Runner passed to Finam for $0.9 million.

These investments brought to the new owner good income. In two years of Finam sold a block packet of Runner of Rambler Media for $0.75 million. In 2007 Rambler purchased another 25%, already for $18 million.

2008

Finam could earn more when it in the 2008th Google offered $140 million for 100% of stocks of Runner. But the transaction was blocked by antimonopoly service — allegedly because of the fact that Google provided "unreliable information". However neofitsialno in Rambler told that prohibited to sell "a strategic asset" to Americans personally Vladimir Putin.

Andreyev earned real remains from the project also this time. But it already lit up the new idea.

2010: Transaction with Google

The runner and Google reported that they signed the agreement turning the Russian company in reseller Google. Until the end of January, 2010 Runner will begin to sell text advertizing not only on the websites of the partners (Rambler, Odnoklassniki, Mail.ru, Afisha.ru, etc.), but also in results of Russian-language search of Google — via the AdWords system.

Terms of agreement of the party do not open. The CEO of the Russian office Google Vladimir Dolgov says only that separation of income is not supposed. Clients of the reseller participate in auctions on purchase of advertizing on an equal basis with clients of Google and are calculated directly with the American company. But Google deducts to resellers the commission — as a rule, units of percent from advertizing revenues, one of her partners tells.

Terms of agreement with Runner not quite standard, Dolgov is recognized. Unlike other Russian resellers Google Runner has the technology of sale of advertizing and the stable customer base, he explains.

The main plus of partnership with Google — access to the new advertizing platform, the CEO of Runner Alexey Basov explains. Now from all search systems "Runner" sells advertizing only in Rambler and Yahoo!, and a share of Google in the market of search in Runet 10 times more.

For the reseller partnership with Google — an opportunity to increase profitability of the existing clients, the CEO of iContext Maria Chernitskaya considers (her agency the first in Russia signed such agreement with Google a year ago). Also Google gives to resellers technology privileges, she adds. And to Runner alliance with Google especially on a hand, the contribution Rambler to revenues of Runner decreases together with its share in the search market, Chernitskaya assumes. The source, close to Runner, confirms it. For Google Runner will become in fact the Russian sales office, Chernitskaya continues.

2011

• In October, 2011 Google submitted the new affiliate program on work with small and medium business. Within this Runner program for November, 2011 is the only thing in Russia the exclusive partner of Google AdWords.

• In November, 2011 it became known that the supermarket of the Internet advertizing "Runner" became the winner of an award of Google among exclusive partners of Google AdWords in EMEA region. The companies from Belgium, the Czech Republic, Estonia, France, Germany, Greece, Israel, Latvia, Lithuania, Romania, Spain and Great Britain also participated in an award. "Runner" is recognized by the best company in the "For the Greatest Gain of Active Base of Advertisers" nomination. The awards ceremony took place within the annual international conference of Google in Zurich at the beginning of November.

The gain of reklamodatelsky base was estimated from April 1 till September 30, 2011. During this time the number of the clients of Runner broadcasting advertizing in Google AdWords increased more than twice.

2012: Finam sells a share in the Runner of Poster and Rambler company

The Afishi and Ramblera consolidated company announced in October, 2012 acquisition 49.9% of stocks of service of contextual advertizing Runner. The company signed the relevant agreement with Finam holding and Skagit investment company. Transaction amount of the party is not disclosed.

"Rambler" possesses 50.1% of stocks of Runner. The company began their redemption from Finam in 2005, having acquired then 25% and one share. In 2007 the company repeated this procedure, having taken another 25% of shares of service of contextual advertizing. Runner was created in 2000.

After completion of the transaction Poster - Rambler based on Runner and service for accumulation of price proposals of Price.ru is going to begin to consolidate the projects connected with e-commerce, the company reports. Among them – the platform for electronic trading of "Ichiba" and also a number of investments into projects through "Rambler Fund", for example, Time Pad – service for the organization of events.

2013

Merge of Begun, Price.ru, Ferra.ru and Ichiba

A company merger of Begun, Price.ru, Ferra.ru and Ichiba it was announced in October, 2012. From this point in the company the general organization structure was created, single systems of management are implemented and already now uniform business strategy begins to be implemented.

One of steps to the business strategy of the company is consolidation of sales of advertizing products in service of the Internet advertizing Begun. Since the middle of April in a personal account of the advertiser, except contextual and media advertizing campaigns, traditional for Runner, there is an opportunity to order services in placement of price lists on the portal and a partner network of Price.ru and also to begin to use the service Management of online store using the Ichiba technology which is also consolidated at a transaction stage. For clients of Begun company there will be an opportunity to place price lists and to advertize the goods on the most different platforms and on the most different pricing models through a uniform office, the uniform billing account, the uniform agreement.

These innovations are implemented via the new Runner interface. Smart which exit was announced at the end of March.

All changes correspond to the concept of "uniform point of entry" for advertisers. At this stage the company is focused on development and development of advertizing products for an e-commerce segment.

Within development of Price.ru the first trial steps on use of Ichiba technology are carried out, in particular such popular Online stores as Ozon and Myshop are connected. Now the order in these shops can be issued directly on the platform Price.ru without passing to their own websites.

Reductions and conflict with employees

In December, 2013 the Begun company within the program for increase in efficiency and cost reduction began to reduce the staff of technical workers, the staff of the company claims. IT specialists of Begun accuse top management of threat of reductions, unreasonable authority punishments and forced holidays.

The policy of the company for workers began to become tougher in November, 2013. In reply some specialists of the company entered trade-union employee organization of the IT sphere of Moscow and the Moscow region which is a part of interregional labor union "New Labor Unions", the head of one of technical departments of Runner and in combination the member of labor union who asked not to mention his name reported. Now in labor union more than ten people consist "that makes very considerable part of technical department of the company", the interlocutor of CNews notes.

For the last few months sent three members of trade-union committee and one more employee of Runner who does not consist in the trade-union organization on forced leave. Their forced rest will last 28 calendar days because of what in the summer they will not be able to take a vacation any more. At the same time the staff of the company already not numerous therefore this measure considerably will affect work of some divisions, notes a source of CNews. Some employees until the end of December, 2013 were already managed to be dismissed, the representative of trade-union committee reported, however found it difficult to call exact quantity of dismissed.

Many IT specialists of the company also received in December, 2013 a post factum authority punishments for November, 2013, the cause for which delay were, the head of one of technical departments of Runner reported. He notes that IT specialists of Runner had rather free working schedule earlier, but at the same time did not break technology process. IT specialists compensated these privileges by remote work after hours: at the nights, on days off and on holidays. Similar practice suited until recently both the staff of the company, and its management which did not wish to pay work of specialists after hours according to the Labor code. "Our schedule was made according to arrangements with the direct management" — the interlocutor of CNews notes.

Nevertheless, authority punishment for delay was received even by the head of technical department. After that IT specialists agreed accurately to observe the working schedule and demanded to pay processings and night work according to shopping mall. According to the trade union representative, the employer rejected this offer, having referred to the fact that only works on a written request of the employer are overtime.

Dmitry Kotov, the director of the HR policy Runner, reported to CNews that in the united company Begun, Price, Ferra really goes a lot of work on increase in efficiency and cost reduction, but noted its legitimacy. "All actions going to the companies are held with respect for rules of law, including the Labor Code of the Russian Federation. It is difficult to call prosecution of the employee the requirement to come to work as morning, but not by a lunch" — Kotov notes.

Let's note that to one of members of trade-union committee also wrote out authority punishment for failure of a meeting. At the same time a meeting, the head of technical department of Runner notes, reminded interrogation more and was organized in the company basement. During the conversation demanded signing of documents on which there was no printing of the organization and the signature of the CEO from the employee. The member of trade-union committee used legitimate right to be present at a conversation of representatives of employer with the worker then received authority punishment.

Also the fact that, according to members of labor union, pressure is put only upon IT specialists, whom in Runner by no more than a third of the state is interesting.

"The numerous staff of managers (about 2/3 personnel) is engaged in auxiliary activity and sales. Therefore actions of the management of Runner which for "expense optimization" decided to reduce technical part look even more ridiculously" — members of labor union note.

Apparently, the company really is not going to reduce the number of managers. On Headhunter at Runner vacancies are open for 6 managers, the supply manager and only one specialist whose work, judging by the list of duties, can be referred to technical with great reserve.

IT specialists believe that the policy of employer is directed to improvement of annual financial performance. The marketing director in Runner Olga Ivashina reported that work on increase in efficiency and cost reduction in the company is really connected with its financial performance, however did not disclose details.

The head of technical department of the company notes that Runner practically ceased to be engaged both in development of really new products, and a little notable high-quality improvement of already available. At the same time members of labor union tried to exercise the right to access to financial documentation of the enterprise, but the statement with a request did not accept to provide these documents at them^[1].

Notes