State of the Net issue 23 PDF


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Smartphone adoption in Ireland is the main theme of the Winter 2011 issue of State of the Net. Also covered is broadband uptake, eGovernment, digital advertising, eCommerce and social media trends.

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State of the Net issue 23 PDF

  1. 1. State of the Netessential eBusiness intelligence for Irish managers www.amas.ieA quarterly bulletin on online activity in Ireland ISSN: 1649 issue 23 Winter 2011Mobilise your brand for the smartphone revolution Smartphone ownership are not optimised for mobile and this can make otherwise simple tasks, like making Smartphone owners contact by phone or email or finding a store, difficult. 741,000 Source: Behaviour & Attitudes for The non-availability of Return2Sender, a mobile site can send customers or prospects into iPhone national survey among 1,000 the arms of online competitors. In the UK, online retailers 326,000 adults. June 2011 are estimated to be at a risk It should be of losing 30% of potential business by not having a Android noted that some people have Aileen O’Toole, more than one Managing Director, website that works on mobile (source: IAB Rich Media Brand 219,000 device AMAS Effectiveness Study July 2011).With at least three-quarters Likewise, email marketing campaigns can fall flat if they Other © AMAS graphic ( a million smartphoneowners in Ireland, it’s time do not display well on mobile, the preferred platform for 233,000for mobile to become many smartphone owners toa core component of access their email.businesses’ marketing noticing the phenomenal shift That is set to change, as thestrategies. Such strategies Adoption to mobile. RTÉ has seen traffic scale of smartphone ownershipcan be built on sound Led by the iPhone, and keen to its web services from mobile grows to levels where theybusiness case principles, competition between mobile devices increase from 15% to will overtake desktops withinbut must recognise the operators, 2011 saw significant 40% within the last year. a few short years and aschallenges of reaching and strides in smartphone adoption marketers recognise theengaging with audiences levels. Smartphone ownership Mobile marketing in Ireland effectiveness of campaignsthrough a wide range of was estimated at 741,000 in appears to be several steps delivered via “always on”gadgets and devices. June 2011, with the iPhone behind shifting consumer devices. Integrated with other accounting for 326,000 of those behaviour and trends in other forms of advertising, there isThe first point of contact devices (source: Behaviour & markets. Brands are Male 62% certainly strong evidence that mobilepotential customers Attitudes for Return2Sender). By dabbling in different mobile delivers results – leads, sales,can have with a brand It is reckoned that close on gender formats, from QR codes and engagement and interaction. 38% Femaleor a company is often five million apps have been SMS campaigns to mobile And all activity – response ratesthrough the browsers on downloaded in Ireland. display campaigns, but to and conversions – can betheir smartphones. The date do not appear to have easily tracked and analysed touser experience can be Those who monitor the committed significant budget inform future campaigns.somewhat grim – websites patterns of web traffic are to mobile. Location-based Nowhere is the power and Smartphone © AMAS graphic ( 27% -24 the potential of mobile ownership advertising more evident than 36% 25-34 with location-based services, By 62% Male By where geo-targeting allows 29% 35-49 consumers opt in to receive gender age 38% Female offers or services in their locality. 7% 50-64 Accessing local content drives action, such as Source: As above 1% 65+ Continued on page 4 27% -24 36% 25-34 ByCompiled by AMAS 29% 35-49 age in association with the Irish Internet Association 7% 50-64
  2. 2. 1. Broadband Irish broadband penetration continues for the second quarter of 2011 stood dial-up modems were decommissioned to grow, albeit at a slower rate, at almost 1.63 million, a healthy in the previous 12 months, with a year-on- according to the latest quarterly annual increase of 8.3%. year fall in narrowband subscriptions of research from ComReg. The total 55.8%. Cable broadband (such as from number of broadband subscriptions More than half of the country’s UPC) enjoyed the highest growth level of 32% to a total of 229,000 subscriptions, 1,700,000 1,628,362 followed by mobile at 14.8% to 584,000. Broadband growth 1,591,803 1,600,000 1,518,349 1,624,503 While DSL broadband connections00 4% 1,500,000 1,548,625 account for almost half of the market 1,509,934 1,400,000 1,443,350 (44.8%), it has experienced a moderate 1,305,035 yearly decline of -0.2%. 1,300,000 34% 1,272,16680 45% 1,200,255 1,361,254 1,200,000 1,125,000 © AMAS graphic ( 1,100,000 1,055,00060 1,000,000 992,000 Source: ComReg Quarterly Key Data Report, September 2011 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 1140 49% 2. Children online 46%Hours spent I don’t use the internet* online per day Under 1 hour20 1 to 3 hours Online activities 9% 3 to 5 hours *N/A for primary 6% group 5+ hours 1% 4% 0 Primary Secondary / youth rounded Percentages are Social Chat to friends Check email Look up information Look up music, Hobbies/interests Games 100 4% networking sites for school projects videos etc shopping sites Primary group 40% 21% 19% 15% 14% 14% 13% Secondary / 67% 37% 35% 28% 29% 24% 32% 34% youth group 80 45% © AMAS graphic ( Source: ISPCC, Children and the internet: “This will come back to bite us in the butt.” Published Oct 2011 Around half of Irish children and teenagers For the teenagers, the majority (56%) go 60 spend an average of one to three hours online from the family kitchen or sitting online each day and many do so from their room, but 44% said that they accessed the bedrooms, without parental supervision. internet from their bedrooms. Among the These are some of the topline findings from primary group, 23% used the internet in 40 49% a survey that canvassed the views of more their bedrooms while slightly more than half than 18,000 children and teenagers. the sample said that they used it from their 46% I don’t use the internet* kitchen or sitting room. The large sample size was split into two Under 1 hour groups – primary students, who were The survey threw up some serious privacy 20 1 mainly aged 11, and secondary students to 3 hours concerns. Nearly a quarter (24%) of the and members of youth groups. Different older group indicated that they did not 9% 3 to 5 hours usage patterns were recorded between use privacy settings, while over a third 6% 5+ hours groups, with a strong social media the two (36%) of the younger group (primary) said 1% 4% 0 and communications bias among the they didn’t know how to keep their social Primary Secondary / youth older group. network accounts private.
  3. 3. Top Trends 3. eGovernment 100% eGovernment availability Full online availability in 2010 Full online availability in 2009 eGovernment is back on the agenda, with internet services 80% © AMAS graphic ( from online voting registers to a new central portal for govern- ment services being planned as part of public sector reforms. 60% Where does Ireland stand in terms of eGovernment 40% adoption? Quite well is the conclusion from a European benchmarking study. Ireland was one of just six European countries to achieve full online availability 20% of key government services in 2010, according to the latest European Commission data. Along with Austria, 0% Italy, Malta, Portugal and Sweden, Ireland scored 100% Estonia Sweden Slovenia Ireland Latvia Italy Portugal *UK Spain Finland Denmark Germany Norway France Lithuania Hungary Austria Netherlands Belguim Malta on 20 basic services. Some 12 of the services, such as vehicle registration and *UK score dropped in 2010 health-related services, are aimed at citizens, while a further 35 37 eight, such as corporate tax and environmental permits, are 30 targeted at businesses. The services were measured against 32 29 25 71% EU Average 2009 27 Source: Digitizing Public two indicators: full online availability and level of sophistication. 20 Services in Europe; 9th Benchmark Measurement; Eurostat figures show that while Ireland enjoys significant 15 59% EU Average 2007 Eurostat, Information Society eGovernment availability, just 37% of Irish people are 10 Statistics, 2010 interacting with public authorities using the internet – a 5 figure that has remained broadly static over the previous 0 three years and still below the EU27 average of 41%. Obtain Download Send Interact with How Irish people interact information forms forms Authorities with the authorities online Irish digital advertising market €53.9m €64.9m 4. Digital advertising While weak consumer demand than an also-ran. The result is that © AMAS graphic ( 26% 21% has depressed the advertising budget is flowing into a variety of market, one medium is experiencing digital formats. SMEs, too, are diverting80% significant double-digit growth and scarce marketing resources into online grabbing market share. New IAB campaigns, predominantly search. 29% 34% Ireland/PwC data shows that digital60% advertising was worth €65 million in Among the three categories of the first half of 2011, a 20.5% increase digital advertising, display advertising40% 45% 45% on the previous year. showed the greatest growth. Valued at almost €21 million, display20% This makes it the third largest experienced year-on-year growth of medium behind TV and print, with an 41%, buoyed up by demand for social advertising market share of 13%. By media, video and mobile formats. 0% contrast, advertising on non-digital Jan - June 2010 Jan - June 2011 media declined in value by 1.5% to Search – predominately Google – is €443 million over the same period, the largest category at €27.2 million Search Display Classifieds according to Nielsen data. and showing annual growth levels of 17%. Online classified was worth €12.7 Source: IAB Ireland/ PwC Online Adspend study, Digital is now a core part of big brand million, a modest decline on the first January-June 2011 advertisers’ media strategies, rather half of 2010. the opportunity to win online
  4. 4. 29% 45% 1% 5% 7%5. eCommerce 13% Internet information sources for research and comparison Social media (Facebook etc.) 9% 9% 35% 47%More than half of Irish consumers planto use both online and offline retail Forums and blogs 8% 9% 33% 51%channels in combination for researchand comparison when shopping this Comparison sites 7% 16% 50% 27%Christmas. When it comes to buying, halfwill do it in-store, 11% online and 39% will Search engines 23% 8% 58% 11%do both. The buying figures are broadly Website with offers 14% 10% 55% 21%in line with the European average. Websites of brands / suppliers 16% 13% 59% 12%These are among the findings of theDeloitte Christmas Spending Survey, which Online shops (with offline stores) 14% 14% 63% 9%examined the shopping habits of 18,000consumers in Europe and South Africa. Online shops (without offline stores) 16% 12% 56% 15%When it comes to research and Online leaflet via email 11% 13% 43% 33%comparison, the online stores of brands Online leaflet on store website 12% 14% 47% 26%and shops are the most popular informationsources, along with search engines. Email Email newsletters 11% 11% 32% 46%advertising and newsletters are morepopular sources with those aged 35 to 64 Source: Average 13% 12% 48% 27%than with younger consumers, who tend Deloitte Christmas Percentages are rounded © AMAS graphic ( towards blogs and social networks. Spending Survey 2011 Searching Comparing Searching & comparing Not usedThe main reasons Irish consumers givefor choosing to shop online are: The weaknesses of shopping online countries, consumers said lower prices• Shopping when I want (54%) were reported to be after-sales service, were a priority for them in relation to• Saving time (54%) exchanging or returning products easily all retailers. In the other countries lower• Getting other consumers’ opinions (50%) and payment safety. In 10 of the 18 prices were second or third priority.Continued from page 1calling a business (61%), physically visiting channels, marketers need to be flexible from their phones if they don’t hit the mark.a business (59%), making a purchase in and adopt the channels that best suitthe store or business (36%) or through an their objectives and their brands. Other brands have rejected apponline store (22%). (Source: The Mobile development or made it a lower priorityMovement Study, Google/Ipsos OTX Planning than developing a mobile website inMediaCT, April 2011). Ignore the planning at your peril. Some HTML5. Their reasons for doing so include brands have had bruising experience avoiding App Store restrictions, retainingTechnological innovation is happening at with apps, sometimes developing them as much revenue as possible anda rapid pace. Near Field Communication purely because their competitors had assessments that mobile websites will(NFC) is one example, which will allow one or it was considered the trendy thing better match their users’ needs and theirconsumers to pay for items or exchange to do. They hadn’t worked through the business by swiping their phones against a benefits for the consumer and how andpay point or another device. where an app adds value to the brand. It is impossible to say which strategy will win out in an area where technology,The building blocks for embracing mobile They underestimated the bear pit of services and user behaviour are allare about understanding customer competition that is Apple’s App Store evolving rapidly. One thing, however,behaviour and habits, and having clear and the need to invest in marketing apps is certain - the revolution summarisedobjectives about where mobile fits and encourage use. Beware the fickle in the unlovely abbreviation SoLoMowithin the overall marketing strategy. consumer, who is spoilt for choice and (the social, location-based and mobileWith increasing fragmentation of online routinely ignores apps and will delete them internet) is only beginning.
  5. 5. Top Trends6. Social media than three years ago. Three quarters of Irish Facebook account holders who members are less inclined to reveal their age compared with Facebook’s.New milestones have over the past six months. specify an age declarebeen reached for the that they are under 35. The number of actual usersnumbers of Facebook and While the rate of new of both social mediaLinkedIn account holders accounts being established LinkedIn has shown a sites may be far less thanin Ireland. Facebook has is slowing down, Facebook growth spurt over the past the number of accountpassed the two million has critical mass in Ireland, six months, gaining 120,000 holders, as some users havemark, gaining approximately building up its presence from accounts to bring the Irish duplicate accounts and120,000 new accounts a lowly 400,000 accounts less total to 591,000. LinkedIn many accounts are dormant. Ireland Number of account Ireland Age of Irish Facebook users 4% 13% holders 8% (where age is specified) 591,000 2.06m © AMAS graphic ( 13-17 18-24 18% USA Other USA Other 24% 25-34 35-4456.7m 42m 156m 573m 45-54 India UK India UK 55-64 12.7m 8m 38m 30.5m 33% Wo io n Wo io n Source: Facebook; rl d w ide 1 2 0 m ill rl d w ide 8 0 0 m ill LinkedIn mCommerce set to be major theme in 2012 consumers make mobile a year of rapid change open data movement in payments on their phones in 2012. With pervasive Ireland, in 2012 the focus like a credit card, using smartphone devices, is likely to shift towards near-field communication realtime social influence the commercialisation (NFC) technology. is leapfrogging SEO with of big data. “Enterprising Google tracking +1 social OpenData: The Game Is On” ABI Research has estimated likes and crowdsourcing was a brainstorming seminar/ that shopping on the mobile influence trends. conference that explored web will reach $119 billion the interesting possibilities for Joan Mulvihill by 2015, and you can be Within this combination open data in the interactive CEO, Irish Internet Association sure that a growing number of realtime and social gaming and social space. of these consumers will be via mobile devices, a Smartphones are about to replacing their wallets with potential commerce game- While many people get a good deal smarter their phones for making changer is the new breed associate open data with and more indispensible payments – online and offline. of “contextually aware” eGovernment and citizen than ever. At a recent technologies that anticipate services, the potential for Irish Internet Association Just when consumers and user needs and deliver social gaming underpinned networking event, members business owners were products and services by a demand for were briefed by the mobile getting used to the internet proactively. contextually aware services micropayments service as part of everyday business, makes for a wide-open Boxpay on this rapidly the convergence of mobile, While 2011 marked a platform for new business growing area – where cloud and social will mean turning point for the opportunities.
  6. 6. Intranets have big productivity potentialIntranets survey of over 1,400deliver – and intranets which Top tips for an intranet that worksare increasingly found: 1. Remember that a successful intranet is a process, not a projectdoing so with • 61% had one or 2. Set out a mission statement, objectives and targetsin-house social more web 2.0 tools,media features. with blogs and 3. Understand staff and business needs fullyThose were discussions the most 4. Involve staff in design work and test drafts with themamong the popular 5. Keep it simple and focus on navigation and structuremessages from • The most commonthe first Intranet platform was a 6. Make it fast, easy and helpful to staff in their daily tasksGlobal Forum. portal such as 7. Create an effective, interesting home page SharePoint (34%), 8. Good change management will drive use and satisfactionAnother key followed by contenttake-away management systems 9. Get visible senior management supportwas the critical Fiachra Ó Marcaigh (27%) and custom- 10. Governance, governance, governancerole of intranet Director, AMAS built systems (20%)governance. • Over half (55%)Repeatedly, had social media Among the benefits cited were: 49 million times this year.the G-word cropped up in tools for most staff. • Time to market halved to 12case studies, presentations on months IBM relies on its intranet tobest practice and discussion Among the many other • Email volume reduced by 38% communicate with its 400,000sessions. Who does what, findings, he emphasised the • A 12% productivity gain per staff, and it also has one ofwho posts content and (most limited satisfaction levels employee. the world’s most sophisticatedcritically) how it is archived and reported, with just 30% of and extensive websites.removed are vital questions for intranets seen as good or PepsiCo does business in 200 Attendees were fascinatedsuccessful intranets. very good and the remainder countries, marketing hundreds to hear Peter J. Ceplenski of satisfactory or poor. Noting the of food and beverage brands, IBM describe the “Galactic low levels of spending reported, and 145,000 employees use Internet Presence Redesign” he said that despite its potential its intranet. Its redeveloped that will see it converge its for saving cost and boosting intranet, launched in December intranet and internet sites. productivity the intranet was 2010, relies heavily on video Poor relation or not, many often the very poor relation of content and social features. Its companies expect big returns the corporate website. home page has been viewed from intranet investments. “It may be that you get what you pay for” (in terms of AMAS: what we do We cut through the clutter and the complexity to allowToby Ward, CEO Prescient Digital satisfaction), he said. AMAS is an internet consultancy our clients to capitalise on with a simple goal – help our the unlimited opportunities(Photo: Prescient, Case studies clients to exploit the offered by the internet. The forum heard detailed Large corporates, governmentThe forum brought together case study presentations on bodies and, increasingly, high- Services:developers, intranet large-scale intranet projects potential businesses retain us to • Strategymanagers and agencies that had delivered very develop and help implement • Researchfrom around the world for a substantial gains. internet strategies. • User experiencetwo-day event in New York in • ContentNovember. Prescient Digital, Cisco Systems invested heavily Contact Us: Aileen O’Toole, • Trainingthe Canadian consultancy in its intranet to support itsthat organised the forum, strategic corporate goals of Managing Director on • Marketingdeclared itself pleased with accelerating time to market +353 1 6610499 or • Project managementthe event and said that it may and faster revenue generation.become an annual one. Social profiles, blogs, wikis and Follow us: dynamic communities were For digital research and insights,Prescient CEO Toby Ward part of the intranet roll-out to follow AMAS on Twitter@AMASinternetpresented results from a its 50,000 staff world-wide. © AMAS Ltd. Published by AMAS Ltd., 38 Lr. Leeson Street, Dublin 2, Ireland. Tel: +353 1 6610499 Email: Web: