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2008.01 Digital Landscape Poland 2008
 

2008.01 Digital Landscape Poland 2008

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Digital Landscape Poland 2008

Digital Landscape Poland 2008

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    2008.01 Digital Landscape Poland 2008 2008.01 Digital Landscape Poland 2008 Document Transcript

    • Digital lanDscape: polanD DIGITAL LANDSCAPE: POLAND Polish internet market accelerates I edItIon, january 2008 online advertising v e-commerce v Biggest internet players v Western investors v Market drivers and constraints 
    • DIGITAL LANDSCAPE: POLAND Table of ConTenTs In brief........................................................................................................................................................................................................................................03 1. Poland at a glance .................................................................................................................................................................................... 04 1.1.Internet.penetration . ..................................................................................................................................................................... 04. 1.2.Internet.users..............................................................................................................................................................................................04. 1.3.Online.advertising..............................................................................................................................................................................04 2. Market overview: biggest players. .............................................................................................................................. 05 2.1.Advertising.bureaus.and.advertising.networks..................................................................................05. 2.2.Biggest.online.players....................................................................................................................................................................06. 2.3.Interactive.advertising.agencies...................................................................................................................................10 3. E-commerce.............................................................................................................................................................................................................12 3.1.Online.auction.platforms..........................................................................................................................................................12. 3.2.Online.shops..................................................................................................................................................................................................12. 3.3.Polish.online.shopper.....................................................................................................................................................................14. 3.4.Threats.and.concerns......................................................................................................................................................................18 4. Market trends in brief...........................................................................................................................................................................19 4.1.New.surge.of.foreign.investments............................................................................................................................19. 4.2.Going.public..................................................................................................................................................................................................21. 4.3.Investment.frenzy.................................................................................................................................................................................21. 4.4.Interesting.facts........................................................................................................................................................................................21 5. Getting started: setting up a company in Poland.............................................................................22 5.1.Types.of.business.activity.........................................................................................................................................................24. 5.2.Tax.and.inspections............................................................................................................................................................................24. 5.3.Competitive.landscape................................................................................................................................................................25 6. Views on Poland...............................................................................................................................................................................................26 7. About Internet Standard ...............................................................................................................................................................28 
    • DIGITAL LANDSCAPE: POLAND In brief This.first.edition.of.Digital Landscape: Poland.report.is.the.most.comprehensive.study.prepared.by.. a.leading.online.magazine.Internet.Standard..It.gives.a.unique.overview.of.the.Polish.internet. industry,.showing.major.market.players,.current.and.future.investment.plans,.and.online.adspend. forecast..Covering.advertising,.e-commerce.as.well.as.ways.of.starting.a.business.in.Poland,.this. report.is.an.indispensable.study.for.anyone.interested.in.finding.out.more.about.investment. opportunities.in.the.country..Digital Landscape: Poland.gathers.investors.and.industry.leaders’. comments.on.the.country’s.development,.providing.a.fresh.view.on.the.latest.issues.. 
    • DIGITAL LANDSCAPE: POLAND 1. Poland aT a glanCe Poland,.member.of.NATO.(since.1999). broadband.connec- and.the.European.Union.(since.2004),. tions.(above.144.kb/s). has.a.population.of.about.38.million. in.October.2006. people..Gross.domestic.product.per. capita.in.Poland.was.estimated.to.be. Internet users 16,500.USD.in.2007..According.to.the. There.is.about.the.same. European.Commision.the.level.of. number.of.male. economic.growth.in.the.country.was. (50.8%).and.female. forecast.to.reach.6.1%.in.2007. (49.2%).users..Young. people.(15-24.years. Warsaw.and.Cracow.are.two.main.cities. old).form.the.largest. where.internet.companies.have.their. group.of.internet.users.. headquarters..More.and.more.online. Those.who.are.60.years. business.appears.in.Wroclaw.(south- old.or.more.represent. west.of.the.country).and.Gdansk.(north. only.2.1%.of.the.Polish. part.of.the.country). internet.population. Internet penetration Polish.users.are. According.to.SMG/KRC.NetTrack. generally.well.edu- research,.internet.penetration.in. cated..26.6%.of.them. Poland.was.around.42%..That.means. have.university.degree,. there.were.12.8.million.internet.users. 41%.-.have.completed. (over.15.years.old)..Another.research. their.A.levels. provider.Gemius/PBI.estimated.that. there.was.in.fact.a.population.of.14.09. Over.two.thirds.of.Polish. million.users.in.the.country.(May. users.surf.online.every. 2007). day.or.almost.every.day.. They.go.online.mostly.at. Internet penetration rate home.(79.4%). in Poland in Q2 2007 was 42% 64,8% ofday users go Polish more.than.5%.of.all.media.adspend.in. the.country. online every Eurostat’s.latest.available.data.on. IAB.Polska.forecasts.that.in.2007.internet. broadband.penetration.in.Europe.comes. adspend.reached.305.million.PLN.(84.5. from.July.2006..At.that.point,.broadband. online advertising million.EUR).and.search.engine.marketing. penetration.rate.in.Poland.was.only.3.9%. Interactive.Advertising.Bureau.Polska.(IAB. revenues.rose.up.to110.million.PLN.(30.5. compared.with.16.5%.average.in.the. Polska).estimates.that.in.2006.internet. million.EUR)..According.to.these.estima- European.Union..That.number.most. advertising.market.was.worth.215.million. tions.online.market.was.worth.415.million. probably.increased.in.2007..Thanks.to. PLN.(60.million.EUR),.excluding.search. PLN.(around.115.million.EUR).in.2007. bitstream.access.the.competition.on.the. adverstising..Unfortunately,.Google.does. ISP.market.is.increasing..According.to. not.disclose.its.revenues,.which.makes. Polish internet advertising Eurostat,.in.January.2007,.53%.of.Polish. the.process.of.estimating.the.value.of.the. market in 2007 companies.had.broadband.internet. market.quite.difficult..Nevertheless,.IAB. is estimated to be worth accesss,.when.average.in.European. Union.is.77%. Polska.prompted.that.paid.search. advertising.could.have.been.worth.60. 115 million eUR million.PLN.(16.6.million.EUR).in.2006.. According.to.UKE.(Urząd.Kontroli. That.makes.a.total.market.value.of.275. Online.market.grows.dynamically.at.a. Telekomunikacji.–.Telecommunication. million.PLN.(76.million.EUR),.which. pace.of.50%.per.year.and.it.is.the.fastest. Ministry).there.were.1.7.million. means.that.internet.advertising.has. growing.sector.among.all.media. 
    • DIGITAL LANDSCAPE: POLAND 2. MaRkeT oveRvIew: bIggesT PlayeRs Google.is.the.most.popular.website.in. awarded.Media&Marketing.Best.Internet. ARBOmedia.Poland.was.founded.in.2002.. Poland.(it.is.visisted.by.77%.of.Polish.users. Sales.Department.Award.for.three.times. The.acquisition.of.one.of.their.rivals.–. every.month)..The.second.most.popular. in.a.row..Currently.there.are.500.websites. Qnet.-.was.a.turning.point.in.company’s. internet.destination.is.Onet.pl,.a.web. in.their.portfolio.. history.which.provided.them.with.a. portal.owned.by.a.large.media.group.ITI. Ad.net.employs.28.people.. bigger.online.reach.than.the.main.web. portals.had..In.2005.ARBOmedia.Poland. Gazeta.pl,.owned.by.Agora,.is.the.most. ARBOmedia Polska introduced.its.own.product:.double. popular.newspaper-based.website.with. ARBOmedia.Polska.is.one.of.the.biggest. billboards,.which.is.one.of.the.most. a.monthly.coverage.of.around.42%. internet.advertising.networks.in.the. popular.online.ad.formats.in.Poland.now.. country..It.gathers.round.300.websites. When.it.comes.to.the.numer.of.page. (with.a.reach.of.11.7.million.of.unique. BizOn Media. views,.it.is.Allegro.pl.which.generates. users.according.to.Megapanel.PBI/ BizOn.media.works.as.a.business- the.highest.numbers..Allegro.(an. Gemius.2007)..Their.portfolio.consists. focused.advertising.network.in.Poland. auction.platform).is.owned.by.Tradus. mainly.of.entertainment,.music.and. specializing.in.targeting.entrepre- (former.QXL.ricardo). games.websites.targeting.young. neurs.The.company.is.relatively.new. internet.users..In.cooperation.with.one. and.was.founded.in.2006..It.has.a. Fotka.pl.-.a.social.networking.and. of.the.global.online.advertising.networks. reach.of.2.6.million.users..They.gather. dating.website.–.has.gained.a.lots.of. –.Oridian.-.ARBOmedia.Poland.facilitates. 45.high-profile.websites..BizOn.media. popularity.recently.and.generates.more. ads.for.English-language.business,.sports. has.been.developing.its.direct.sales. than.2.billion.page.views.per.month. and.youth.websites. department,.but.still.its.core.clients. In.terms.of.time.spent.on.the.website,. Google.pl.and.Onet.pl.lead.the.way.in. the.rankings. Polish.most.popular.instant.messenger. is.Gadu-Gadu,.owned.by.Gadu-Gadu. S.A..(a.company.listed.on.the.Warsaw. Stock.Exchange)..Gadu-Gadu.is.used.by. round.6.million.people.monthly. advertising bureaus and advertising networks There.are.quite.a.few.advertising. networks.and.advertising.bureaus. operating.in.Poland...We.are.presenting. some.of.them. Ad.net. Ad.net.was.one.of.the.first.Polish.internet. advertising.networks,.established.in. 2000..It.is.a.part.of.Internet.Group.S.A.. holding..From.the.very.beginning.Ad.net. was.focused.on.incorporating.new. technologies.and.empowering.their. technological.capabilities..After.being. very.successful.in.Poland,.they.decided.to. expand.their.business.in.Latvia,.Lithuania. and.Estonia..They.claim.to.have.9.74%. share.of.the.Polish.market..Ad.net.was. 
    • DIGITAL LANDSCAPE: POLAND are.the.biggest.Polish.media.houses.. advertising,.paid.content.services,. Allegro.pl / QXL Poland Since.its.foundation,.over.a.year.ago,. email.and.hosting,.auction.platform,. Allegro.is.the.biggest.auction.platform. the.company.has.launched.over.500. community.sites,.telecommunication. in.the.country.run.by.Polish.offices.of. campaigns. services..Onet.pl.is.estimated.to.have. British.holding.Tradus.(former.QXL. 37%.of.total.market.share.in.Poland..It. ricardo).which.was.acquired.by. IDMnet is.also.one.of.the.strongest.brands.in. Naspers,.a.South.African.media. IDMnet.was.established.in.1997.and. the.country. company,.in.December.2007...For.the. was.the.first.online.advertising.network. year.ended.31.march.2007.Tradus. in.the.country..They.gather.over.140. Wirtualna Polska (WP) generated.36.43.million.GBP.revenues. websites.and.are.able.to.reach.over.5.5. Wirtualna.Polska.is.the.second.biggest. (vast.majority.of.it.came.from.Eastern. million.users.. and.the.oldest.web.portal.in.Poland,. Europe)..British.holding.owns.not.only. part.of.Telekomunikacja.Polska/.France. Allegro.but.also.PayBack.(which.runs. IDMnet.uses.DoubleClick.adservers.. Telecom.Group..It.provides.a.multime- Payback.pl,.otomoto.pl,.otodom.pl).and. They.specialize.in.building.advertising. dia.and.telecommunication.platform. Ceneo.S.A..(which.runs.a.price.compari- strategies.and.search.marketing. offering.news,.entertainment,.finance. son.site.Ceneo.pl). campaigns. services,.blogs,.chatrooms,.e-business. solutions.and.free.e-mail.. Interia.pl SA biggest online players Interia.pl.runs.one.of.Poland’s.biggest. There.are.thousands.of.internet.firms. In.2006.WP.launched.internet.TV.(wptv. web.portals..The.firm.was.established. operating.in.Poland..We.decided.to. wp.pl).–.the.biggest.multimedia.project. in.1999.as.a.result.of.an.online.joint. present.only.those.which.are.perceived. in.Polish.internet..In.2007.WP.started.to. initiative.of.IT.and.technology. as.one.of.the.biggest.on.the.market. operate.as.MVNO.(Mobile.Virtual. producer.-.ComArch.S.A..-.and.a.radio. and.which.investors.will.most.probably. Network.Operator)..WP’s.monthly. station.RMF.FM..In.December.2000. hear.about.while..considering.their. average.reach.is.62%.(H1’07). Interia’s.stock.was..allowed.to.public. expansion.in.Poland. Google Polska Google.was.founded.in.the.USA.in.1998. and.developed.rapidly,.outpacing.top. internet.companies.and.becoming.the. world’s.most.popular.search.engine.. The.key.to.Google’s.success.is.quality. and.relevance.of.information..Polish. users.appreciate.Google.search.engine. -.it.is.the.most.popular.website.in.the. country..That.was.one.of.the.reasons. why.the.company.decided.to.open.its. office.in.Warsaw.in.January.2006..In. 2007.Google.established.a.R&D.centre. in.Krakow.and.an.innovation.centre.in. Wroclaw.(Poland). Grupa Onet.pl S.A. Grupa.Onet.pl.runs.Poland’s.biggest. web.portal.-.Onet.pl..and.also.provides. various.media.and.communication. services..Grupa.Onet.pl.is.part.of.the. leading.Polish.media.group.–.Grupa. TVN.(TVN.S.A.,.TVN.is.listed.on.Warsaw. Stock.Exchange)... Onet.pl.is.a.pioneer.in.the.income. diversification.among.Polish.web. portals..It.generates.revenues.from. 
    • DIGITAL LANDSCAPE: POLAND trading.and.since.February.2001.the. Agora S.A. (owner of Gazeta.pl). most.popular.tool.in.the.country.(even. firm.is.listed.on.Warsaw.Stock.. Agora,.one.of.the.biggest.media. to.that.extend.that.user’s.ID.has.the. Exchange..In.December.2007.Bauer. companies.in.Eastern.Europe,.owns.a. same.importance.as.a.telephone. Media.Invest.GMBH.bought.the. web.portal.Gazeta.pl,..Gazeta. number.or.email.address)..Gadu.Gadu. majority.of.Interia’s.shares,.taking. Wyborcza,.one.of.Poland’s.most. launched.social.networking.commu- control.of.the.company. popular.dailies.and.Metro.-.a.free. nity.MojaGeneracja..pl,.Gadu.Radio,. newspaper..Agora.Group.also.runs. VoIP.services.Gadu.naGłos,.microblog- Internet.advertising.sector.is.the.main. AMS,.the.outdoor.advertising,.two.local. ging.Blip.pl.and.education.portal. area.of.the.company’s.activity..The. radio.stations.Zlote.przeboje.and.Roxy. Nauka.pl.. rapid.growth.that.can.be.observed.in. FM,.a.cross.regional.radio.station.TOK. that.sector.is.taking.place.mostly.at.the. FM.as.well.as.manages.13.magazines.. Gadu.Gadu.S.A..employes.round.one. expense.of.other.media.existing.on.the. hundred.people..In.the.first.three. market.. Agora.was.establshed.in.1989..Since. quarters.of.2007.Gadu-Gadu.S.A.. 1999.it.has.been.listed.on.the.stock. generated.14.370.000.PLN.(3.98.million. Interia.pl.is.the.third.biggest.internet. exchange.in.Warsaw.and.in.London. EUR).net.income.and.5.153.000.PLN. portal.in.Poland.in.terms.of.reach. (1.42.million.EUR).net.profit.. Gazeta.pl.is.visited.by.5.2.million.users.. O2.pl sp. z o. o. Agora’s.two.thematic.vortals,.GazetaP- The.company.is.listed.on.Warsaw.Stock. O2.pl,.established.in.1999,.is.an.owner. raca.pl.(recruitment.website).and. Exchange.[GGU]..In.December.2007. of.o2.pl.web.portal,.which.offers.free. GazetaDom.pl.(real.estate.website).are. South.African.media.company.Naspers. email.services.and.an.instant.messen- one.of.the.most.popular.websites.in. bought.the.majority.of.shares.of.Gadu. ger.(Tlen.pl)..The.company.claims.to. their.categories..GazetaWyborcza.pl.is. Gadu.SA.. have.7.million.registered.email. one.of.the.largest.online.newspapers.in. accounts.and.1.5.million.instant. Poland. Interaktywna sp. z o. o. messenger.users..Tlen.pl.messenger. (owner of Fotka.pl) and.Tlenofon.(VoIP.product).have.won. Gadu-Gadu S.A. Interaktywna.sp..z.o.o.,.established.in. the.Gold.Computer.2005.competition. Established.in.2000,.Gadu–Gadu.S.A..is. February.2001,.runs.Fotka.pl.and.other. organized.by.Computerworld..O2.pl.is. a.company.which.provides.telecommu- websites.including.auction.platform.. the.fourth.fastest.developing.technol- nication.and.communication.services. Fotka.pl.employs.36.people.in.three. ogy.company.in.Central.Europe. as.well.as.multimedia.and.social. offices:.in.Warsaw,.Elblag.and.Gliwice..It. according.to.the.2006.and.2007. networking.websites..Gadu–Gadu. is.the.biggest.community.website.in. Deloitte.ranking. instant.messenger.is.regarded.as.the. Poland.with.5.5.million.registered.users.. The.company.broke-even.a.few.years. ago..The.forecast.of.their.income.for. 2007.was.over.4.5.million.PLN..Accord- ing.to.Alexa.com,.Fotka.pl.is.5th. popular.website.in.Poland.and.86th. worldwide. IDG Poland S.A. (owner of IDG.pl, Computerworld.pl, Pcworld.pl, InternetStandard.pl, NetWorld.pl) IDG. Poland.S.A..is.a.Polish.subsidiary.of. American.publishing.office.International. Data.Group..It.runs.IDG.pl.-.the.biggest.IT/ new.technologies.webportal.in.the. country..IDG.pl.also.owns:.PcWorld.pl.–. webportal.dedicated.to.PC.users.. InternetStandard.pl.–.leading.internet. industry.magazine,.Gamestar.pl.-. computer.games.website,.Computer- world.pl.–.portal.dedicated.to.IT.special- ist,.and.dozens.of.others..Internet. 
    • DIGITAL LANDSCAPE: POLAND 
    • DIGITAL LANDSCAPE: POLAND TOP DIGITAL MEDIA AGENCIES IN POLAND Fastbridge http://www.initiative.pl Beyond.Interactive http://www.gobeyond.pl/ Starcom.Next http://www.next.starcom.com.pl/ ZED.Digital http://www.optimedia.com.pl/ MRM.Worldwide http://www.mrm.pl/ OMD.Digital http://www.omd.pl/ ACR http://www.acr.pl/ Source: Internet Standard Standard,.part.of.IDG.Poland.S.A.is.also.a. Gemius S.A. independent.recruitment.sites.with. popular.conference.organizer..Business. Gemius.S.A..is.the.largest.online.research. websites.from.60.different.countries. conferences.attract.hundreds.of. agency.in.Central.and.Eastern.Europe.. businessmen.in.the.country. The.company.has.been.providing.online. Grupa.Pracuj.employs.190.people. market.analysis.since.1999..In.2004,. working.in.the.central.office.in.Warsaw. IDG.Poland.S.A..also.publishes.B2B.IT. Gemius.started.operating.in.Czech. and.in.regional.offices.located.in. magazines.(CMO,.CXO,.CIO,.NetWorld,. Republic.after.wining.a.tender.for. Bydgoszcz,.Gliwice,.Krakow,.Lodz,. Computerworld).and.B2C.magazines. internet.audience.measurement. Poznan,.Sopot.and.Wroclaw..In.2007. (PC.World.Komputer,.Computerworld,. services..Later.Gemius.continued.its. Grupa.Pracuj.was.recognized.as.the. Kino.Domowe.Magazyn.DVD).. expantion.in.Central.and.Eastern.Europe. twelfth.fastest.growing.IT.company.in. launching.its.branches.in.Slovakia,. Central.and.Eastern.Europe,.and.one. IDG.pl.Group.is.visited.by.3.million. Hungary,.Ukraine,.Lithuania,.Latvia,. of.the.500.fastest.growing.IT.compa- users.monthly.what.makes.it.one.of.the. Estonia,.Romania,.Slovenia,.Croatia,.and. nies.in.Europe. 20.most.popular.destinations.among. Bulgaria..In.2006,.Gemius.entered. Polish.internet.users. Russian,.Dannish.and.Austrian.markets. Money.pl Money.pl,.established.in.1997,.is.one.of. Travelplanet.pl Grupa Pracuj the.most.popular.Polish.financial.web. Travelplanet.pl.is.a.countrywide. Grupa.Pracuj.runs.recruitment.and. portals.with.nearly.2.million.users.every. internet.travel.agency.listed.on. education.websites.in.Poland.and. month..It.provides.news.and.commen- Warsaw.Stock.Exchange..It.is.a. other.countries.in.CEE..(Polish.recruit- tary.on.finance,.law,.labour.market,.real. member.of.the.Polish.Chamber.of. ment.site.Pracuj.pl.and.Ukrainian. estate,.business.and.politics..In.2006. Tourism..The.Travelplanet.pl.Group. Rabota.ua,.Edu.pracuj.pl.targeting. Money.pl.generated.a.net.profit.of. runs.also.Aero.pl..(airplane.tickets. specialists.and.Edulandia.pl.targeting. nearly.1.3.million.PLN.(360.thousand. provider),.Hotele24.pl.(hotel.booking. students)..Grupa.Pracuj.has.also. EUR);.with.revenue.of.11.million.PLN.(3. provider).and.TravelPass.Polska.(a. organized.Virtual.Job.Fair.and.Virtual. million.EUR),.which.means.that.during. firm.distributing.Travelplanet.pl. Education.Fair.it.is.a.founding.member. five.years.(2001-2005).portal’s.revenue. vouchers).. of.The.Network,.the.largest.alliance.of. increased.by.1428%..Money.pl.was.on. the.7th.position.in.the.ranking.of.the. most.dynamically.developing.compa- nies.in.the.Central.Europe.(“Technology. Fast.50”.by.Deloitte).. In.2006,.a.German.publishing.house. Handelsblatt.(Verlagsgruppe.Han- delsblatt),.member.of.Georg.von. Holtzbrinck.media.group.became. Money.pl’s.strategic.investor. Currently,.the.company.employs.over.60. people..It’s.based.in.Wroclaw,.but.part.of. the.team.works.in.Warsaw.as.well... 
    • DIGITAL LANDSCAPE: POLAND Bankier.pl S.A. tion.on.personal.funds,.investing,. calculators.and.comparisons.of. Bankier.pl.S.A..is.one.of.the.leading. capital.markets.and.financial. financial.products.offered.by.nearly. media.companies.focused.on.finanse. products..Bankier.pl.gives.its.users. 50.financial.companies. sector..It.runs.Bankier.pl,.a.web. an.access.to.a.current.stock.ex- portal.providing.financial.informa- change.quotes,.experts.analysis,. The.Bankier.pl.Group.owns.six.web. portals:.Bankier.pl,.Twoja-Firma.pl,. PIT.pl,.VAT.pl,.PRNews.pl.and. TOP POLISh INTERACTIVE AGENCIES Mojeauto.pl.(with1.73.million. NAME WEB ADDRESS unique.users).. 180.Heartbeats http://www.180heartbeats.pl/ Since.June.2006.Bankier.pl.S.A..has. Adv.pl http://www.adv.pl/ been.listed..on.the.Warsaw.Stock.. Ars.Thanea. http://www.arsthanea.com/ Exchange. Artegence. http://www.artegence.com Grono.net BeeStudio. http://www.beestudio.pl/ Grono.net.is.an.invitation-only. Byss. http://www.byss.pl community.service.which.gathers. groups.of.friends.and.families.(over.1.3. Click5. http://www.click5.pl million.registered.users)..Users.can. Conecto. http://www.conecto.pl/ load.pictures.or.video.onto.their. Cookie. http://www.cookie.pl/ profiles.and.the.website.has.currently. over.15.million.pictures..Grono.net.is. Digital.One. http://www.digitalone.pl/ available.in.Polish,.English,.Spanish,. Emarketing.Experts. http://www.emarketingexperts.pl/ French,.German.and.Italian.language. Engine. http://www.engine.pl/ versions. FFCreation. http://www.ffcreation.com/ In.September.2007,.Intel.Capital. Genero. http://www.genero.pl/ announced.its.plans.to.invest.in.. Grono.net..The.firm.employs.over.. Hint.Intermedia. http://www.hintintermedia.com/ 60.people.. Honki. http://www.honki.pl/ HYPERmedia. http://www.hypermedia.pl/ MCI Management MCI.Management.is.an.investment. Insignia. http://www.insignia.pl/ group.managing.venture.capital.and. Internet.Designers. http://www.id.pl/ private.equity.funds,.including:. Isens. http://www.isens.pl/ TechVentures’99,.TechVentures’03,. MCI.BioVentures,.MCI.EuroVentures. Janmedia. http://www.janmedia.pl/ and.MCI.SuperVentures..It.has.been. K2.Internet. http://www.k2.pl/ listed.on.the.Warsaw.Stock.Exchange. Madonet. http://www.netizens.pl/ (with.present.market.cap.around.1. billion.PLN).since.February.2001..MCI. Max.Weber. http://www.maxweber.com/ Management.SA.specializes.in. Media.Ambassador. http://www.mediaambassador.pl/ investments.within.the.region.of. Central.and.Eastern.Europe..It.mainly. MindChili. http://www.mindchili.pl/ invests.in.innovative.companies. MRM.Worldwide. http://www.mrm.pl/ operating.in.the.area.of.internet,. Netarena. http://www.netarena.pl/ mobile.telephony,.e-commerce,. wireless.technologies,.software,.IT,.. Opcom. http://www.opcom.pl/ biotechnology/life.science.and. OS3.Multimedia. http://www.os3.pl/ media. Pro-Creation. http://www.pro-creation.pl/ Merlin.pl S.A.. Zjednoczenie.com. http://www.zjednoczenie.com.pl/ Merlin.pl.is.one.of.the.oldest.and. Source: Interaktywnie.com, own biggest.online.shops.in.Poland. 0
    • DIGITAL LANDSCAPE: POLAND (operating.since.April.1999)..It.mainly. group.acquired.the.majority.of. capital.firm.invested.a.few.million.PLN. sells.books,.films,.music,.games,. NetSprint’s.shares. in.Nasza-klasa. computer.programs.and.toys..It.is. visited.by.round.100,000.users.every. SARE This.list.of.the.companies.mentioned. day..In.2004.Merlin.pl.was.acclaimed. SARE.specializes.in.offering.e-mail. above.certainly.does.not.exhaust.the. the.fastest.growing.company.in. marketing.services.(e-mail.cam- database.of.important.internet.firms. Central.Europe.by.Deloitte.&.Touche.. paigns,.newsletters,.bulletins)..It. in.Poland..There.are.key.enterprises.in. In.2005.Merlin.pl.launched.its.first. works.with.over.200.clients.(e.g.. the.region.like.Panorama.Firm.-.the. offline.shop.. Media.Markt,.Siemens,.Kofola. biggest.yellow.pages.website.in.the. Holding,.Danone,.Lexus,.G+J,.Bauer).. country,.epuls.–.one.of.the.most.popu- NetSprint.pl Sp. z o. o. It.claims.to.be.the.largest.email. lar..social.networking.websites,.Empik. NetSprint.pl.runs.a.search.engine..The. marketing.company.in.the.country. com.–.online.shop.or.NetPress.Digital.-. company.was.established.in.2000.and. electronic.publications.distributor.. was.the.first.firm.which.introduced.the. Nasza-Klasa Sp. z o. o. Future.editions.of.this.report.will. top-notch.search.engine.technology. Nasza-Klasa.pl.is.a.social.networking. include.more.top.business.initiatives. to.Polish.market..NetSprints’s.key. website.(Polish.equivalent.of.Class- in.the.country. customers.and.partners.include.both. mates)..It.was.launched.in.November. Poland’s.major.horizontal.portals.as. 2006.and.within.a.few.months.gained. Interactive advertising well.as.international.corporations..In. an.enormous.popularity..At.the.end.of. agencies 2004.the.company.was.ranked. 2007.it.had.more.than.6.million. There.are.more.than.1000.interactive. seventh.in.Deloitte’s.Fast.50.ranking.of. registered.users,.and.became.one.of. agencies.in.Poland..We.present.just.a. the.fastest-growing.high-tech. the.biggest.social.networking. few.top.ones,.according.to.Interakty- companies.in.Central.Europe..In.2006. websites.in.the.country..In.September. wnie.com.ranking.(pleace.see.the.table. Orkla.Media,.a.Norwegian.media. 2007.European.Founders,.a.venture. ”Top.Polish.Interactive.Agencies”).. 
    • DIGITAL LANDSCAPE: POLAND 3. e-CoMMeRCe According.to.the.estimates.released. for.three.quarters.of.2007.Allegro’s. Polish.eBay.managed.to.find.its.own. by.Interactive.Advertising.Bureau. total.transaction.value.was.already. niche.–.thanks.to.the.integration.with. Polska,.from.2001.to.2006.Polish.e- 10%.higher.than.total.results.for.2006.. foreign.platforms,.and.users.can.buy. commerce.market.grew.by.over. Although.Allegro.pl.is.still.perceived.as. and.sell.goods.not.only.in.Poland.but. 4500%..The.highest.growth.rate.was. an.auction.platform,.almost.80%.of.all. also.in.28.other.countries. seen.in.2000-2004.when.Polish.online. transactions.are.made.without. retail.trade.sales.increased.by.200%. bidding;.the.reason.being.that.a. online shops per.year..The.value.of.the.market.in. number.of.small.shops.(traditional.and. The.catalogue.run.by.Sklepy24.pl. 2006.was.estimated.to.be.5.billion. online.ones).treat.Allegro.pl.as.one.of. currently.contains.information.about. PLN.(1.39.billion.EUR)..Online.auction. their.selling.channels..This.trend.will. 3,300.Polish.online.stores.divided.into. platforms.generated.3.billion.PLN,. be.even.more.prominent.in.the.future. 12.groups..Home.&.Garden.makes.the. online.shops.had.a.turnover.of.2. largest.category;.there.are.another. billion.PLN.(500.million.EUR)..Accord- The.second.popular.auction.platform. four.significantly.big.groups:.Health.&. ing.to.the.latest.estimations.pub- is.eBay,.which.appeared.on.the.Polish. Beauty,.Gifts.&.Flowers,.Electronics.&. lished.by.Rzeczpospolita,.Polish. market.in.2005..In.2006.sales.reached. Photo.and.Computers..There.are.not. online.shops.and.auction.platforms. 100.million.USD,.but.in.comparison. many.Polish.shops.selling.food,.only.a. generated.8.billion.PLN.(2.22.billion. with.Allegro.pl.it.is.a.rather.poor.result.. few.from.77.listed.in.the.catalogue. EUR).in.2007. Polish.market.is.significantly.bigger. than.Irish,.Portuguese.or.Greek..In.2006. internet.sales.in.Austria.and.Denmark. were.comparable.to.Poland’s..Swiss. results.were.a.bit.lower.than.Polish. revenues..eMarketer.expects.that.over. the.next.five.years.European.e- commerce.market.will.grow.at.an. annual.growth.rate.of.25%..Central.and. Eastern.European.countries,.especially. Poland,.Czech.Republic.and.Russia.are. expected.to.be.a.driving.force.of.that. growth.at.the.beginning.of.the.next. decade. In.2006.Polish.online.sales.for.the.first. time.exceeded.1%.of.total.domestic. retail.trade.value..According.to.the. Polish.Market.Review.(PMR).forecast,. in.2009.this.proportion.may.go.up.by. over.2%. online auction platforms Since.2005.about.60%.of.Polish.e- commerce.sales.have.been.made.by. transactions.performed.on.auction. platforms...The.indisputable.online. auction.leader.in.Poland.is.Allegro.pl. In.2006.the.total.value.of.completed. auctions.reached.2.5.billions.PLN.and.. 
    • DIGITAL LANDSCAPE: POLAND The value of the Polish e-commerce market in 2006 was estimated to be 8 billion PLN (2.22 billion EUR). 
    • DIGITAL LANDSCAPE: POLAND offer.fresh.food.(e.g..Frisco.pl)..Apart. from.e-shops,.there.are.over.ten. online.travel.agencies.(e.g..Travel- planet.pl).and.financial.product. brokers.(e.g..Bankier.pl).on.the. market. Not.many.Polish.online.stores.reveal. their.financial.results,.but.it.is.very. likely.that.those.who.decide.to.do.are. the.leaders..In.2006.Merlin.pl.gener- ated.the.biggest.revenues.in.Polish. B2C.e-commerce..Merlin.pl.is.one.of. the.oldest.online.shops,.which.sells. mainly.books,.music,.toys.and. electronics..Agito.pl.and.Hoopla.pl. offer.electronics.and.home.appliances,. Komputronik.pl.distributes.computers. and.computer.parts.whereas.Oponeo. pl.is.the.largest.Polish.online.store. with.tyres.and.car.accessories. Few.years.ago.virtual.shopping.arcades. in.popular.web.portals.played.an. important.role.in.Polish.e-commerce.. Now,.it.is.comparision.sites.that.have. become.the.sources.of.information.about. stores.offers.and.prices.for.the.growing. number.of.Polish.internet.users...The. most.popular.Polish.site.of.that.type.is. Ceneo.pl,.which.had.almost.1.7.million. unique.users.in.August.2007.(according. to.Megapanel.PBI/Gemius)..Ceneo.pl. currently.allows.to.compare..about..1.7. million.offers.from.700.shops..The.second. place.belongs.to.Nokaut.pl,..which.in. spite.of.significantly.bigger.catalogue.(4. million.offers.from.788.shops).is.a.bit.less. popular. Polish online shopper According.to.data.published.by.Eurostat,. in.2006.one.in.eight.Poles.and.one.in. four.Polish.internet.users.did.their.online. shopping.at.least.once..This.proportion. places.Poland.on.17th..position.in.the. European.ranking,.next.to.Slovenia,. Czech.Republic.and.Slovakia. A.slightly.higher.proportion.of.men. then.women.do.shopping.online..The. highest.discrepancy.occurs.in.the.age. group.of.25-34.and.in.the.income. groups.declaring.monthly.net.income. 
    • DIGITAL LANDSCAPE: POLAND 
    • DIGITAL LANDSCAPE: POLAND In 2006 one in eight Poles and one in four Polish internet users did their online shopping at least once. 
    • DIGITAL LANDSCAPE: POLAND 
    • DIGITAL LANDSCAPE: POLAND higher.than.2.000.PLN.(550.EUR). SMG/KRC.report.shows.that.in.2006. Polish.online.shoppers.bought.mainly. books.and.clothes,.then.mobile.phones,. computers.and.electronics..Compared.to. 2005,.in.2006.significantly.more.shoppers. were.interested.in.car.accessories,.toys. and.children’s.accessories.as.well.as. airline,.train.and.bus.tickets. Last.year.statistical.Pole.spent.47. dollars.on.online.shopping,.more. than.the.Greeks.or.the.Portuguese. but.still.considerably.less.than. average.citizens.in.Western.Europe.. Statistical.resident.of.Denmark. (where.in.2006.e-commerce.sales. was.comparable.with.Polish.e- commerce.revenues).spent.seven. times.more.in.online.stores.than.a. Pole. Polish.internet.users.pay.for.ordered. products.mainly.in.cash.on.delivery.. Last.year.23%.of.orders.were.paid.by. cards.and.7%.-.by.other.forms.of. payment.(e.g..bank.transfers)..Poles. rarely.use.cards.because.they.are. concerned.about.security.or.do.not. have.a.card.allowing.them.to.pay.over. the.internet..In.2006.only.5.6.million. from.24.million.existing.cards.could.be. used.for.online.transactions. Threats and concerns. At.the.beginning.of.2007,.one.third.of. respondents.(According.to.Gemius. Survey).claimed.that.the.biggest. problem.with.online.shopping.was. long.delivery.time..One.sixth.had. troubles.with.finding.products.and.one. eighth.complained.about.poor. customer.service..What.is.important,.it. that.nearly.a.half.of.respondents. experienced.no.problems.while. shopping.online. Polish e-commerce in brief from 00 till 00 Polish e-commerce market grew by over 00% The value of the market is estimated to be  billion Pln in 00 (. billion eUr) online auction platforms generated  billion Pln in 00 (0 million eUr)
    • DIGITAL LANDSCAPE: POLAND 4. MaRkeT TRends In bRIef Polish.internet.market.can.be.consi-. The.only.example.of.sudden.and. new surge of foreign dered.a.mature.one.with.local.compa- undisputable.victory.is.Google.which. investments nies.having.very.strong.market. became.the.most.popular.website.in. What.created.a.lot.of.stir.on.Polish. positions..Although.foreign.big.players. Poland..What.is.interesting.is.to.observe. market.recently.were.two.announce- start.their.operations.in.Poland.it.has. how.quickly.YouTube.com.is.climbing. ments:.both.MySpace.and.AOL.decided. proved.difficult.for.them.to.outplace. up.through.the.popularity.rankings.(in. to.open.their.offices.in.Poland..At.the. local.firms.in.a.short.period.of.time..A. August.2007.it.was.the.10th.most. moment.MySpace.is.in.the.process.of. good.example.is.eBay,.which.entered. popular.online.destination.in.the. hiring.staff.for.marketing.and.content. Polish.market.in.2005.and.is.still.behind. country)..It.is.worth.mentioning.that. management.departments..Interest- local.auction.platform.-.Allegro.pl.. Polish.language.version.of.YouTube. ingly,.MySpace.is.perceived.as.one.of.a. Allegro.is.the.4th.most.popular. was.one.of.the.first.European.editions. few.international.companies.which. destination.in.Poland.whereas.eBay.pl. stands.real.chances.of.conquering. remains.below.Top.20. Google.provides.most.of.its.services.in. Polish.market. Poland,.including.Google.Docs.and.GMail.. There.is.a.similar.situation.with.instant. One.of.the.few.exceptions.is.Google. Other.international.social.networking. messengers:.local.Gadu.Gadu.leads.the. News,.still.not.available.in.local.language. players.(Hi5.and.Bebo).are.trying.to.enter. way.attracting.more.than.5.million. version..Global.gigiant.has.even.decided. Polish.market,.but.they.will.have.to.face. users.per.month.whereas.Skype.still. to.open.a.Research.&.Development. very.strong.competition..There.are. remains.second.best.with.3.million. Centre.which.is.based.in.Krakow.as.well.as. already.local.firms:.Fotka.pl.(with.more. users. client.service.branch.in.Wroclaw. than.3.million.users.a.month),.Moja. 
    • DIGITAL LANDSCAPE: POLAND POLISh INTERNET MARKET ACCELERATES Major changes in 2007 January • Gazeta.pl.(Agora.S.A.).acquires.Wrocek.pl.-.a.social.networking.site.about.Wroclaw.city. February • Bankier.pl.S.A.,.owner.of.the.financial.web.portal,.acquires.MojeAuto.pl,.car.classifieds.website.. • Grupa.Onet.pl.S.A..acquires.blogging.site.Blog.pl. March • Onet.pl.starts.to.sell.advertisements.on.its.portal.on.time.basis,.like.in.TV. • Gadu-Gadu.S.A.,.owner.of.Polish.most.popular.instant.messanger.goes.public.. ....(IPO.at.Polish.Stock.Exchange.-.Gielda.Papierow.Wartosciowych). • Gemius.S.A.,.online.reasearch.firm.starts.its.operations.in.Romania.and.Bulgaria. • Gadu-Gadu.S.A.,.starts.operating.in.Ukraine. • German.Holtzbrinck.ventures.investment.fund.invests.in.Pixelate.Ventures,.owner.of.ePuls.pl.social.networking.site. April • Onet.pl.launches.Zumi.pl.-.mapping.and.yellow.pages.site. • MCI.venture.capital.investment.fund.invests.1.5.mln.PLN.in.Netpress.Digital,.e-press.distributor. • TVN.Group.(one.of.the.biggest.private.TV.stations.in.Poland).launches.TVN24.pl,.news.site.run.by.more.. ....than.40.editors. • Pino.pl.(social.networking.portal).acquires.Blogi.pl.(blogging.website). • Launch.of.Business.Angels.Seedfund..It.announces.to.spend.15-30.million.PLN.(4-8.million.EUR).. ....for.investing.in.start-ups. May • Gadu-Gadu.S.A..acquires.Nauka.pl,.education.website. • Merlin.pl,.one.of.the.biggest.internet.shops,.acquires.Presco.Media.owner.of.e-cyfrowe.pl,.online.shop.with.digital.cameras. • Agora.announces.that.it.will.open.a.new.multimedia.newsroom.which.will.combine.exisiting.radio.. ....and..internet.newsrooms. June • Hoopla.pl.announces.that.it.will.debut.on.stock.exchange.(IPO). • Onet.pl.launches.Onet.TV,.video.website. • Google.launches.Polish.version.of.YouTube. • Gadu-Gadu.S.A..acquires.Blip.pl,.micro-blogging.website. • Onet.pl.S.A..announces.its.partnership.with.Opera.Software. July • Research:.66%.of.Polish.internet.users.have.tried.shopping.online,.it’s.the.biggest.percentage.in.Eastern.Europe. • Wykop.pl,.Polish.start-up.based.on.DIGG.com.idea,.receives.600,000.PLN.fund.(around.165,000.EUR). • Launch.of.Polish.language.version.of.Bebo.com. • Pracuj.pl,.biggest.recruitment.website.in.Poland,..launches.Profeo.pl,.social.networking.site.for.employees,.. ....a.competitor.to.Goldenline.pl. • Gadu-Gadu.S.A..acquires.Fora.pl,.a.discussion.website. August • AOL.announces.that.it.will.open.Polish.version.of.its.portal.at.the.end.of.2007. • Wirtualna.Polska,.second.biggest.internet.portal.becomes.a.Mobile.Virtual.Network.Operator.(MVNO). • Gadu-Gadu.celebrates.its.7th.birthday. • Agito.pl,.an.e-shop,.announces.its.plans.of.initial.stock.offering.(IPO). September • Tomasz.Lis,.one.of.the.most.influential.Polish.TV.journalists,.quits.his.job.at.TV.station.and.starts.his.TV-show.online. • Nasza-Klasa.pl.-.a.small.social.networking.service.with.a.very.dynamic.growth.rate,.receives.a.funding.. ....of.a.few.million.PLN. • Agora.(owner.of.Gazeta.pl)..acquiers.BlogFrog.pl.-.a.blogs.search.engine. • Oponeo.pl.S.A.,.online.shop.with.tyres,.announces.that.it.will.debut.on.stock.exchange.. • o2.pl.Sp..z.o.o.,.one.of.Polish.main.web.portals.announces.that.it.will.launch.8.new.sites.by.the.end.of.2007. October • MySpace.Poland.announces.that.it.will.start.operations.in.next.few.months..It.starts.recruiting.for.Polish.offices. • G+J.company,.publisher.of.Polish.edition.of.„National.Geographic”.and.lifestyle.magazines.buys.Odyssei.pl,. ....travel.website. • Wirtualna.Polska.introduces.behavioral.targeting.advertising. • o2.pl.Sp..z.o.o..launches.Pinger.pl,.micro-blogging.service,.which.is.a.direct.competitor.to.Blip.pl,.owned.by.. ....Gadu-Gadu.S.A. • First.edition.of.Polish.MIXX.Awards.takes.place.(best.interactive.campaigns.are.awarded). December • Bauer.Media.acquires.Interia.pl,.a.web.portal..Cost.of.acquistion.is.over.200.million.PLN.(55.million.EUR) • Agora.becomes.an.exclusive.partner.of.Bebo’s.social.networking.website.in.Poland. • AOL.starts.Polish.version.of.its.web.portal.-.AOL.pl • Naspers,.South.African.media.company.acquires.Tradus.PLC,.owner.of.Allegro.pl.for.1.9.billion.USD.. ....(about.1.3.billion.EUR). • Naspers.buys.66.7%.shares.of.Gadu.Gadu,.Polish.most.popular.instant.messenger.
    • DIGITAL LANDSCAPE: POLAND Generacja.(with.more.than.2.million.users. The.amount.of.venture-capital.invest- a.month),.Nasza-Klasa.pl.(with.more.than. ments.and.acquisitions.has.not.been. Year 2007 should 6.million.registered.users),.Grono.net. seen.in.Polish.market.before..There.are. (with.more.than.1.million.users.a.month),. many.traditional.firms.buying.small.and. be called ”the year ePuls.pl.(with.round.600.thousand.users. medium.size.internet.companies.to.gain. of investments” . a.month),.which.are.doing.very.well.and. market.advantage.or.online.entrepre- which.may.prove.very.difficult.to. neurs.widening.their.portfolios.and. That amount of compete.with. increasing.revenues.from.the.internet.. venture-capital There.is.also.more.seed.fund.initiatives. going public which.are.looking.for.promising.new. investments and Many.Polish.firms.made.public.offerings. starters.(see.more.in.a.table.listing.major. acquisitions has in.2007..There.are.already.a.few.compa- nies.which.have.been.listed.on.the.stock. events.in.Poland.in.2007). not been seen exchange.in.Warsaw.for.many.years. Interesting facts: on Polish market (Interia,.Agora)..Last.couple.of.years.has. shown.that.more.and.more.firms.find. •.. ain.web.portals.have.launched. M special.versions.of.their.websites.to. before. stock.exchange.a.very.tempting.way.for. cater.for.Polish.immigrants.who.are. finding.new.resources.for.business. living.in.the.UK.and.in.Ireland •.. otka.pl,.a.local.social.networking. F development..Hence,.Bankier.pl.S.A.,. •.. olish.branch.of.MSN.has.only.one. P website,.has.more.than.2.billion.page. Gadu-Gadu.S.A.,.Travelplanet.S.A..and. employee views many.more.firms.went.public. •.. ost.of.main.Polish.web.portals. M •.. Bay.Poland.tried.two.times.to. e launched.their.own.society.gossip. outpace.local.competitor.-.Allegro.pl,. Investment frenzy websites.(eg.o2.pl.started.Pudelek.pl,. but.with.no.success.so.far It.goes.without.saying.that.year.2007. Gazeta.pl.runs.Plotek.pl.,.Interia.pl. •.. ll.of.the.main.web.portals.have.TV/ A should.be.called.”a.year.of.investments”.. owns.Pomponik.pl) video.sites. 
    • DIGITAL LANDSCAPE: POLAND 5. geTTIng sTaRTed: seTTIng UP a CoMPany In Poland It.will.be.an.exaggaration.to.say.that. Poland.then.. moves.on.the.Polish.market..Internet. Poland.has.become.a.titbit.for.investors. ”Many.Polish.users.who.had.already. gigants.like.Myspace.and.AOL.are. from.all.industry.sectors.but.when.it. used.American.or.German.online. opening.their.offices.in.the.country.as. comes.to.the.internet.it.goes.without. auction.websites.sent.inquiries.to.eBay. well.as.smaller.SEM.and.advertising.agen- saying.that.the.online.market.attracts. head.quarters.asking.when.Polish. cies.from.the.CEE.region..What.drives.big. more.and.more.foreign.capital..”The. platform.was.due.to.be.open,”.Alina. and.small.businesses.there.is.the.market. perception.of.Poland.in.the.Western. Prawdzik,.country.manger.at.eBay. potential..and.a.relatively.quick.return.of. world.has.changed,”.Chris.Modzelewski,. Poland.recalled..Poland.is.the.only. investment. CEO.at.Emerging.Analysis.Corporation. country.in.Central.and.Eastern.Europe. said..Modzelewski.is.an.owner.of.Eastern. that.eBay.is.present.in.but.conquering. Investing.in.Poland.has.become.much. Europe’s.largest.online.media.research. this.market.proved.to.be.a.hard.nut.to. easier.and.much.frequent.recently..The. agency.-.Gemius.-.and.was.one.of.the. crack..Although.eBay.claims.to.have. Polish.Information.and.Foreign. early.investors.in.Polish.online.market.. done.a.thorough.market.research. Investment.Agency.(PAIiIZ).estimates. „Poland.is.no.longer.viewed.as.the.‘wild. before.launching.a.Polish.platform,.it.is. that.all.foreign.direct.investment.in. post-communist.east’.where.only.big. clear.that.initially.they.underestimated. the.country.in.2006.was.at.an.all.time. risk-takers.go..Today,.Poland.is.an. the.sophistication.and.competetive- high.of.14.7.billion.USD.(this.amount. extremely.attractive.location.for. ness.of.the.local.environment.. covers.all.industry.sectors)..A.few. investment.with.the.largest.domestic. 2008.is.going.to.bring.more.interesting. important.factors.attract.foreign. market.in.the.CEE.region.(excluding. Russia),.tamed.inflation,.a.highly. educated.workforce.and.an.economy. growing.at.6.5%.annually,”.he.added. There.are.quite.a.few.foreign.compa- nies.operating.in.Poland.already..In. 1999.British.online.consumer.trading. platform.Tradus.(former.QXL.ricardo. plc).opened.a.Polish.branch.-.QXL. Poland.-.which.runs.the.leading.online. auction.platfom.Allegro.pl..In.the.last. quarter.of.2006.all.the.Tradus.invest- ments.in.CEE.brought.9.million.GBP. revenues.(the.vast.majority.of.them. came.from.Poland)..Tradus.employs. around.350.people.in.Poland.whereas. there.are.only.10.members.of.staff.in. the.UK.and.they.are.mainly.focused.on. controling.and.consolidating.financial. data,.PR.and.fullfilling.stock.listing. obligations. At.the.end.of.the.90s..various.entrepre- neurs.(mainly.local.companies).invested. in.internet.firms.because.of.a.tempting. perspective.of.lucrative.profits.during.the. dot.com.boom..Another.big.surge.of. investments.in.Poland.appeared.in.2005. when.global.firms.started.opening.their. branches.in.CEE..Google.and.eBay.were. one.of.the.major.firms.which.settled.in. 
    • DIGITAL LANDSCAPE: POLAND 
    • DIGITAL LANDSCAPE: POLAND capital.to.Poland:.market.size,.rela- the.procedures.should.be.shorter,.easier. partnership.(spółka.jawna),.limited. tively.low.employment.costs,.econom- and.friendlier.like.in.many.other.EU. partnership.(spółka.komandytowa),. ic.growth.and.the.availability.of. countries. limited.joint-stock.partnership.(spółka. human.resources.. komandytowo-akcyjna),.professional. ”Registering.a.joint-stock.company. partnership.(spółka.partnerska),.limited. Types of business activity (‘spolka.akcyjna’).in.Poland.was.not.a. liability.company.(spółka.z.ograniczoną. The.process.of.opening.a.branch.in. problem.per.se..However,.it.is.impor- odpowiedzialnością),.joint-stock. Poland.has.been.modernised.since. tant.to.remember.that.the.process.is. company.(spółka.akcyjna),.branch.office. Poland.entered.the.EU..In.August.2004. much.more.difficult.than.in.the.United. (oddział),.representative.office.(przed- The.Economic.Freedom.Act.was. States..In.America.I.can.register.a. stawicielstwo).or.just.simply.an.entry.in. introduced.which.made.the.process.of. company.in.less.than.24.hours.over.the. the.business.activity.register.(wpis.do. setting.up.a.business.easier.(thanks.to. internet..In.Poland,.the.process.takes.at. ewidencji.działalności.gospodarczej). cutting.down.the.number.of.documents. least.one.month..But.if.one.is.under- required)..However,.it.is.still.far.from. standing.of.this.fact,.and.has.a.good. Jarosław.Chałas,.managing.partner.at. ideal. attorney.to.handle.the.formalities,.it.is. Chałas.and.Wspólnicy.chambers. no.more.or.less.difficult.than.register- prepared.a.useful.investor’s.guide.for. Nigel.Adams,.managing.director.at.Nigel. ing.a.company.in.any.other.country”,. The.Polish.Information.and.Foreign. Adams.&.Company.Ltd.who.has.been. Chris.Modzelewski.explained. Investment.Agency.(the.document. working.with.Poland.since.1972.as.a. There.are.initiatives.to.shorten.the. which.gives.a.clear.overview.of.the.legal. governmental.advisor.knows.perfectly. process.of.registering.a.firm.in.the. procedures.and.provides.some. well.that.starting.a.business.in.Poland. country..The.Polish.Information.and. recommendations.is.available.here:. means.going.through.a.lot.of.paper- Foreign.Investment.Agency.reveals. http://www.paiz.gov.pl/index/ work..What.one.has.to.be.prepared.for.is. that.a.system.which.will.handle. ?id=4f8bc5ac1dc2b49434efe9e72f183 a.large.number.of.documents.required. submitting.online.applications.should. de8)..According.to.Chałas.and.Wspóln- which.need.to.be.signed.and.stamped.. be.available.by.the.end.of.2008..It. icy,.the.best.choice.for.large.firms.which. ”Most.British.directors.and.managers. should.definitely.speed.up.the. plan.to.operate.in.Poland.is.to.set.up.a. feel.that.the.amount.of.red.tape.in. registration.process. limited.liability.company.or.joint-stock. Poland.hampers.their.companies’. company.(there.is.an.entry.fee.of.1000. efficiency.and.leads.to.extra.costs,”.Nigel. Investors.who.plan.to.start.a.business.in. PLN.(277.EUR).and.a.requirement.of. Adams.said..Arjan.Bakker,.a.Dutch. Poland.are.provided.with.a.wide.choice. 50,000.PLN.(13850.EUR).initial.capital. businessman.who.runs.Polish.offices.of. of.forms.of.business.activity:.civil. contribution.if.one.is.interested.in. Allegro.shares.this.view..In.his.opinion,. partnership.(spółka.cywilna),.registered. opening.a.limited.liability.company.or.a. 500,000.PLN.(138500.EUR).contribution. for.a.joint-stock.company)..Those.who. would.prefer.to.limit.operation.costs. should.definitely.consider.starting.a. branch.or.a.representative.office. Tax rates and inspections All.entrepreneurs.need.to.apply.for.their. NIP.(taxpayer.identification.number). and.REGON.(statistical.number)..Another. important.step.is.to.register.with.the. Social.Insurance.Office.(ZUS).. Each.firm.is.obliged.to.pay.value.added. tax.(VAT).as.well.as.corporate.income. tax.(CIT)..CIT.has.gone.through.a.lot.of. changes.throughout.the.years,. dropping.its.value.from.27%.to19%..All. taxpayers.have.to.submit.a.monthly.tax. return.form.to.the.tax.office..Apart.from. the.monthly.reports.each.firm.has.to. send.a.final.tax.settlement.by.the.end. of.March.each.year. 
    • DIGITAL LANDSCAPE: POLAND Smaller.entrepreneurs.can.take.adventage.of.„tax. credit”.which.means.that.they.are.entitled.to.income. tax.deferral.during.their.first.tax.year..What.is.also. tempting.is.a.relief.from.submitting.tax.returns. during.the.same.period.of.time.. From.time.to.time.entrepreneurs.may.expect. inspectors.to.come.to.their.firms..By.law.authorti- ties.cannot.carry.out.more.than.one.inspection.at. the.same.time.in.the.same.business..Such.visits.are. limited.–.inspectors.cannot.stay.longer.than.four. weeks.if.they.examine.smaller.or.medium.size.firms;. inspections.in.larger.companies.are.limited.to.eight. weeks. Competitive landscape Polish.online.market.has.developed.organically. without.the.presence.of.Yahoo!,.AOL.or.MSN.in.its. early.years..Although.global.online.gigants.like. Google.or.eBay.have.started.operating.in.the. country.not.long.time.ago.it.was.not.as.easy.for. them.as.one.may.think.to.gain.high.market. positions..„The.most.dangerous.misstep.that. investors.may.take.is.underestimating.Polish.local. competitors,.or.(even.more.dangerously).underesti- mating.the.sophistication.of.the.Polish.consumer,”. Chris.Modzelewski.warned..Many.western.firms. forget.that.Polish.users.have.access.to.the.same. products.or.services.as.westerners.. Many.investors.confirm.that.competitive.landscape. makes.entering.Poland.just.as.difficult.as.entering. any.other.foreign.market.in.Western.Europe..„Like. any.country.in.Western.Europe.or.Asia,.entering. Poland.demands.creative.strategies.to.realize.the. country’s.potential,”.Modzelewski.added. Alina.Prawdzik.who.runs.Polish.offices.of.eBay. knows.from.experience.that.users.expect.even. more.from.foreign.firms.than.from.local.ones.. „Satisfying.Polish.consumers.is.possible,.but.it’s.not. an.easy.task,”.Prawdzik.stressed..That.is.why.it’s.best. to.dig.as.much.information.as.possible.about.local. competitors.before.facing.them.directly. investment projects in central & eastern europe were particularly labour intensive. While central and eastern europe attracted only % of investment projects, they ben- efited from % of the new jobs created by foreign investors. This represented an average of  jobs per project, compared with  jobs per project in Western europe. Poland was the largest creator of fDi jobs, with almost % of the total. eUroPeAn ATTrAcTiVeness sUrVeY, 00 bY ernsT & YoUnG 
    • DIGITAL LANDSCAPE: POLAND 6. vIews on Poland Nigel Adams portals,.current,.well.developed.e-commerce.and.social. Managing Director at Nigel Adams & Company media.environment.are.all.signs.of.a.healthy.online. Ltd, Visiting Lecturer at University of Buckingham, market.. Great Britan There.are.a.lot.of.advantages.for.investors.in.the.CEE. I.have.been.working.with.Poland.since.1972.and.lived. region.and.I.cannot.see.any.major.constraints.of.its. in.the.country.from.1993.until.2002.as.a.British.Govern- development..The.language.fragmentation.of.the.CEE. ment.“Know.How.Fund”.Management.Adviser,.so.I.have. countries.can.be.an.issue.and.can.make.it.difficult.. seen.many,.many.changes..I.find.the.country.fascinat- to.decide.to.target.the.region.at.large.with.local. ing.to.work.in.and.despite.many.years.of.experience,.I. approach.... always.tell.my.clients.that.they.should.“Expect.the. . unexpected!”.I.also.warn.my.client.companies.to.expect. more.bureaucracy.and.more.regulations.than.in.a. British.company..However,.I.also.tell.them.that,.on.the. Alain heureux, whole,.in.Poland.they.will.find.very.hospitable.people. President of IAB Europe and IAB Belgium who.are.great.to.work.with. I.think.that.Polish.Interactive.Advertising. Most.British.directors.and.managers.feel.that.the. Bureau.will.be.playing.a.role.of.a.“bridge”. amount.of.“red.tape”.in.Poland.hampers.their.compa- between.Eastern.and.Western.Europe..Broadband.and. nies’.efficiency.and.leads.to.extra.costs..In.addition,.the. technologies.are.not.always.there.yet.in.Poland.but.the. need.to.report.and.pay.corporate.taxes,.and.VAT. creativity.certainly.is..The.European.IAB.Network.is. monthly.is.an.extra.cost.they.think.should.be.removed.. gaining.more.value.thanks.to.Poland. The.high.social.security.costs.and.the.very.strong. employment.regulations.were.accepted.when.Polish. . labour.rates.were.very.low,.but.I.think.that.as.Polish. wages.are.increasing.significantly,.these.costs.and. regulations.will.not.encourage.future.investment.in. Jan Jilek Poland.by.British.companies. CSO at Xclaim.hr, Vice President at Interactive Marketing Association, Croatia On.final.point,.the.British.will.never.get.used.to.the. need.for.all.documents.to.be.signed.and.“stamped”.. In.my.opinion.Poland.has.the.biggest. This.is.just.not.necessary.in.Britain,.for.example.in. potential.in.CEE... Britain.a.company.will.accept.a.commercial.order.over. I.believe.that.in.3.years’.time.Poland.will.jump.from.the. the.phone.from.a.regular.customer,.by.accepting.an. regional.avarage.to.the.first.place.in.terms.of.the.online. “Order.number”..No.contracts,.signatures.or.stamps.are. market.growth..The.only.thing.which.may.affect.its. needed!. development.is.a.slowing.growth.rate.of.an.internet. penetration..I.think.that.it.may.be.necessary.now.to. . introduce.internet.to.the.rural.parts.of.the.country.to. maintain.current.pace.of.growth. Massimo Burgio . Co-chairman of the Global Committee at SEMPO, Founding Member of Sempo Europe, Sempo Latino and a frequent speaker at SES, Italy/USA Martin Kovac Country Manger at ETARGET a.s., Slovakia Poland.has.a.very.vibrant,.passionate.and.professional. community.of.online.marketers..I.have.always.observed. With.the.population.of.almost.40.million. Polish.market,.especially.search.engine.marketing. people.Poland.is.the.strongest.and.the.most. sector.with.curiosity..The.early.presence.of.local.search. attractive.market.in.CEE..It.will.remain.the.biggest.player.in. engines.used.by.millions.of.users,.as.well.as.local.web. the.region.having.overseas.money.shaping.its.development.. 
    • DIGITAL LANDSCAPE: POLAND Chris Modzelewski Right.now.the.main.market.constraint.to.consider.is.the. CEO at Emerging Analysis Corporation, owner of competition.in.the.labour.sector..Poland’s.educated. Eastern Europe’s largest online media research workforce.and.especially.its.excellent.software.developers. agency Gemius, one of the earily investors in are.highly.prized.by.high-technology.companies.from. Polish online market, USA around.the.world..This.combined.with.strong.domestic. macroeconomic.growth.is.driving.up.wages.and.competi- My.first.investments.in.Poland.were.in.1999.when.I.established. tion.for.the.most.talented.workers..While.this.benefits. Gemius.(Central.&.Eastern.Europe’s.leading.internet.research. Poland,.it.is.a.factor.that.investors.looking.at.Poland.have. agency)..In.1999.Poland.was.a.much.stabler.location.for.invest- to.consider.carefully..Why.should.someone.build.a. ment.than.in.1991.(when.I.first.visited.the.country),.but.I.still.saw.it. development.center.in.Poland.if.they’ll.have.to.recruit. as.far.riskier.than.other.countries.I.could.invest.in..Today,.just.a. staff.(or.open.another.center).in.Ukraine.to.find.talented. short.8.years.later,.Poland.is.an.entirely.different.country..The.rule. employees? of.law.is.stronger.and.corruption.is.less.endemic. The.other.constraint.to.consider.when.investing.in.Poland. The.Polish.internet.market.has.a.tremendous.potential.. is.the.competitive.landscape..A.sophisticated.market.that. With.close.to.40.million.people,.dropping.internet.access. evolved.organically.without.significant.infusions.of. prices,.rapidly.growing.penetration.and.advertising. western.capital,.strategy.or.brands.has.a.very.different. budgets.shifting.online,.Poland.is.one.of.the.most. competitive.landscape.than.some.westerners.might. attractive.internet.markets.in.Europe.today..Its.„potential”. expect..This.is.not.so.much.as.a.„constraint”.as.it.is.a. -.which.from.a.western.perspective.can.be.seen.as.the. warning.to.investors:.if.you’re.going.to.invest.in.Poland,. ability.to.generate.both.domestic.profits.and.provide. do.your.homework.first... lower.costs.-.is.attractive.to.investors,.but.they.should. . enter.the.market.with.open.eyes.and.be.very.sensitive.to. . the.local.reality. Eric Urdahl, Head of International Business, AD Europe, Germany From.the.perspective.of.western.internet.players,. Poland.is.different..Poland’s.internet.industry.evolved. Polish.online.market.is.the.most.important.one.in.CEE.in.terms. (at.least.in.its.early.years).in.its.own.local.reality..This. of.pan-European.online.campaigns.for.our.international. shaped.the.competitive.landscape.very.differently.than. network.AD.Europe..We.have.been.experiencing.the.strongest. what.many.western.players.would.expect.based.on. growth.rates.since.2005. experiences.in.the.United.States.or.Western.Europe.. Western.investors.considering.how.to.tap.into.Poland’s. .Interest.in.Poland.has.grown.since.the.country.entered.the. internet.potential.should.bear.this.fact.firmly.in.mind. EU..Poland.has.good.penetration.rates.and.broadband.cover- and.approach.the.market.respectful.of.Poland’s.suc- age..This.fuels.its.online.advertising.market.and.also.attracts. cesses.in.the.past.10.years. more.European.advertisers. 
    • DIGITAL LANDSCAPE: POLAND 7. aboUT InTeRneT sTandaRd about the authors: Michał Grzechowiak Michał.started.working.at.IDG.Poland.in. 2007..Previously,.as.a.journalist.of. „Magazyn.Internet”,.a.Polish.magazine.for. internet.users,.he.used.to.cover.many. aspects.of.the.web..In.Internet.Standard.he.focuses.on. writing.case.studies.on.Polish.online.firms.to.”E-biznes. od.kuchni”.(”E-business.uncovered”).section.as.well.as. providing.business.news..Apart.from.working.for.IDG. Poland,.Michał.studies.economics.at.University.of. Warsaw.. . E-mail: Michal_Grzechowiak@idg.com.pl anna Meller Anna.joined.IDG.Poland.team.in.2000..At.the.beginning. of.her.career.she.worked.for.PC.World.Komputer,. covering.stories.on.artificial.intelligence,.new.online. trends.and.future.of.the.web..Later.(after.the.dot.com. bubble.burst).she.moved.to.Internet.Standard,.where. she.focused.on.the.business.aspects.of.the.internet..She. helped.to.revive.the.online.business.community. gathered.round.the.title..Anna.is.responsible.for.writing. reports.and.news..She.is.also.involved.in.organizing. Internet.Standard.businesss.conferences..Anna.studied. Polish.and.English.literature.and.linguistics.at.Gdansk. University.in.Poland..She.likes.jazz.music,.hiking.and. reading.books... . Email: Anna_Meller@idg.com.pl Production team: Piotr Zalewski Piotr.has.been.working.as.an.online.editor. at.IDG.Poland.since.March.2006..He.mainly. COVER. covers.new.trends.and.business.aspects.of. Grażyna.Stefek. the.internet..Piotr.is.responsible.for. . editorial.content.of.Internet.Standard..He.writes.news. DESIGN. and.articles,.and.also.helps.with.organizing.confer- Anna.Karabon ences..He.is.in.charge.of.the.development.of.the.new. design.of.magazine’s.website..Piotr.studied.social. DTP. psychology..He.is.interested.in.new.technologies,. Beata.Miętus media.and.skiing.. . ChARTS. Email: Piotr_Zalewski@idg.com.pl Adam.Sienkiel 
    • DIGITAL LANDSCAPE: POLAND ADVERTISING CSO,.Computerworld,.GamePro,.InfoWorld,.Macworld,. Anna.Stando. Network.World,..Internet.Standard.and.PC.World..IDG’s.lead- Email:.Anna_Stando@idg.com.pl. generation.service,.IDG.Connect,.matches.technology. Tel..+48.22.321.78.00 companies.with.an.audience.of.engaged,.high-quality.IT. professionals,.influencers,.and.decision.makers.. INTERNET STANDARD CONFERENCES Agnieszka.Świtkowska. Each.month,.over.80.million.unique.visitors.visit.the.more.than. Email:.Agnieszka_Switkowska@idg.com.pl 450.websites.of.IDG’s.online.network..To.ensure.that.IDG. online.audiences.have.access.to.rapidly.updated.information,. Internet standard IDG’s.online.network.is.supported.by.more.than.2,000. InternetStandard.pl.is.a.leading.Polish.online.magazine. journalists.and.the.only.24-hour.global.technology.news. published.by.International.Data.Group.Poland.S.A... organization,.the.IDG.News.Service,.which.reports.the.latest. It.is.visited.by.more.than.200,000.users.monthly.(real.users,. technology.news.from.its.bureaus.around.the.world..IDG.has. Megapanel.Gemius/PBI),.among.them.there.are.top.internet. built.the.broadest.network.of.technology.content.online.and. industry.leaders,.managers,.directors,.advanced.web.users.. reaches.more.technology.buyers.than.any.other.media. Internet.Standard.is.focused.on.business.and.social.aspects.of. company.. the.internet..Online.magazine.runs.its.Online.Expert.Forum. and.business.conferences,.which.are.very.popular.in.the. IDG.produces.more.than.750.globally.branded.confer- country. ences.and.events.in.55.countries..Industry.leading. international.events.include.Macworld.Conference.&.Expo. International data group and.LinuxWorld.Conference.&.Expo..IDG’s.LinuxWorld. International.Data.Group.(IDG).is.the.world’s.leading.technol- events.are.now.found.in.nearly.20.countries.on.five. ogy.media,.events,.and.research.company..IDG’s.online. continents..Leading.conferences.include.CIO.100,.DEMO. network.includes.more.than.450.web.sites.spanning.business. and.IDC.Directions..IDG.produces.19.conferences.and. technology,.consumer.technology,.digital.entertainment,.and. events.in.China.alone,.and.was.first.to.offer.expos.in. video.games.worldwide..IDG.publishes.more.than.300. emerging.markets.throughout.Asia,.Eastern.Europe.and. magazines.and.newspapers.in.85.countries.including.CIO,. Latin.America. 
    • www.internetstandard.pl Conferences DIGITAL LANDSCAPE: POLAND INTERNET STANDARD There is one standard – Internet Standard In 2007 Internet Standard organized a few strategic, business-to-business conferences which were met with great acclaim from internet and related industries. • must attend internet industry annual event • latest online research and business analysis • new market trends • online adspend • new investments, mergers and acquisitions, stock exchange listings • best online marketing practice CLIENTS 2.0 • new trends: Web 2.0, social networking, behavioural targeting FMCG • best FMCG case studies • internet in media mix • online ad spend • advertising strategy • best case studies • new developments in e-commerce market • consumer behaviour • business models for e-commerce • customer acquisition and retention • online payment systems ConferenCe SChedule for 2008 V best internet industry conferences in the country • future media • Clients 2.0 • searCh engine marketing • adstandard 2008 V exclusive analysis standard 2008 • e-CommerCestandard V leading keynote speakers • internet 2k8 2008 V brilliant networking opportunity If you would like to get involved in Internet Standard Conferences project 0 or simply find out more about the coming events please contact Agnieszka_Switkowska@idg.com.pl, www.internetstandard.pl