The US-based Internet company ReachLocal, which specializes in context advertising tools, has launched a Russian subsidiary, Digit.ru reported this Monday. In its first year on the Russian market the company expects to post €10 million in revenue, said Nataliya Matusova, general manager of ReachLocal’s Russian branch, at a press-conference in Moscow.
Although its Moscow subsidiary was officially launched only yesterday, the company has been working in Russia since June 2012 through a franchise agreement.
The company’s main service, ReachSearch, allows users to optimize their context ad campaigns by performing an exhaustive search through keywords on all platforms and automatically choosing the most cost-effective ones.
The Moscow headquarters of ReachLocal employs 28 people, although by 2015 the company plans to expand to 500 staffers and open regional offices in St. Petersburg, Nizhny Novgorod, Ekaterinburg, Samara, Kazan and Rostov-on-Don.
ReachLocal was founded in the US in 2003 and since then has opened more than 80 offices worldwide. Its revenue in 2012 reached $455 million, showing 21% year-to-year growth.
ReachLocal is playing in a fast-growing and already competitive field. In 2013 alone two contextual ad solution startups – Alytics and Garpun – have raised more than $3.5 million in funding.
