2008.09 Strategic report IAB Poland 2007 - ENGLISH VERSION
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2008.09 Strategic report IAB Poland 2007 - ENGLISH VERSION

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Strategic report IAB Poland

Strategic report IAB Poland
Internet 2007
Poland, Europe, The World

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2008.09 Strategic report IAB Poland 2007 - ENGLISH VERSION 2008.09 Strategic report IAB Poland 2007 - ENGLISH VERSION Document Transcript

  • STRATEGIC REPORT IAB Poland INTERNET 2007 POLAND • EUROPE • THE WORLD ACCESS TO THE INTERNET ONLINE CONSUMERS INTERNET CONSUMPTION WWW SITES USAGE ADVERTISING ONLINE E-COMMERCE MARKET INTERNET AS A SOURCE OF INFORMATION ON PRODUCTS AND COMPANIES PUBLIC RELATIONS IN THE INTERNET ERA INTERNET MARKET RESEARCH SPECIAL EXTRA SEPTEMBER 2008
  • STRATEGIC REPORT IAB Poland POLAND • EUROPE • THE WORLD Edited by: Dominik Kaznowski, Piotr Kowalczyk, Magdalena Rówińska, Jarosław Sobolewski The cover features internet maps (router saturation and connections between routers) by Chris Harrison (www.chrisharrison.net) created basing on data Authors: collected within the framework of DIMES project (www.netdimes.org) conducted Krzysztof Adamus, Artur Banach, Olgierd Cygan, Krzysztof Dębowski, Piotr Fiećko, by Tel Aviv University. Andrzej Garapich, Małgorzata Kaczmarczyk, Olga Kamińska, Dominik Kaznowski, Piotr Kowalczyk, Małgorzata Lakowska, Maciej Ledzion, Anna Miotk, Iwona Połóg, Michał Rapacki, Magdalena Rówińska, Rafał Szychowski, Jarosław Sobolewski, Maciej Swoboda, Szymon Szmigiel, Dominik Wartecki www.iabpolska.pl From the Editor W e have the pleasure to present the first comprehensive and exhaustive description of Polish Internet. IAB’s report „Internet 2007: Poland, Europe, the World” is a continuation of four previous reports by that company, enriched with one of key market research elements – a study on advertising expenditure IAB AdEx made in partnership with PricewaterhouseCoopers Polska. In spite of numerous attempts aimed at estimating marketing budgets in the Internet, it took us quite a long time to publish this study – the first one developed in compliance with international standards. The other significant element related to this year’s report is the fact that the first people to read it will be subscribers of "Media & Marketing Polska". This report is the first effect of our partnership with IAB Polska. We are positive that results of our partnership will be noticeable in our magazines „Media & Marketing Polska” and „I-biz”; in the result, our readers will be the best informed players on the e-advertising market. Juliusz Donajski The Editor © VFP Communications Sp. z o.o. ul. Wał Miedzeszyński 630 03-994 Warszawa tel.: 022 514 65 00 faks: 022 740 50 55 www.media.com.pl Special extra Media & Marketing Polska, September 2008 3
  • Internet 2007: Strategic report by IAB Poland Table of Contents Chapter 1 . . . . . . . . . . . . . . . . . . . .12 Access to the Internet Chapter 2 . . . . . . . . . . . . . . . . . . . .24 Online consumers Chapter 3 . . . . . . . . . . . . . . . . . . . .34 Internet consumption Chapter 4 . . . . . . . . . . . . . . . . . . . .38 WWW sites usage Chapter 5 . . . . . . . . . . . . . . . . . . . .46 Advertising online Chapter 6 . . . . . . . . . . . . . . . . . . . .62 E-commerce market Chapter 7 . . . . . . . . . . . . . . . . . . . .68 Internet as a source of information on products and companies Chapter 8 . . . . . . . . . . . . . . . . . . . .72 Public relations in the Internet era Chapter 9 . . . . . . . . . . . . . . . . . . . .76 Internet market research 4 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Dear Readers, e have the pleasure to deliver to you the fifth of search engine marketing proved to be quite strong as well. W Strategic Report by IAB Polska Internet 2007 – Poland, Europe, the World. We are glad that it has been recognised as a credible and supportive source of E-advertisements became a true alternative of newspaper ads and gained the share of expenditure market typical for the best developed countries of Western Europe. information on the interactive market in Poland and worldwide E-mail marketing confirmed its efficiency and increased its by representatives of the Internet market and marketing share in the market. The popularity of video contents was also professionals. We are particularly pleased by the fact that this on the increase. anniversary falls on the year which is one of the most successful ones in Polish Internet sector. We are also proud of Editors of the Report the fact that we can for the first time publish results of advertising expenditure in the Internet. As the number of the members of the association grew this 2007 was a special year with respect to advertising year, the Managing Board of IAB decided to invite all interested expenditure in the Internet sector, which is well illustrated by parties to work on this report. The report was developed by results of the IAB AdEx 2007 study performed in partnership 20 experts from leading companies representing almost all with PricewaterhouseCoopers and published herewith. In that branches of interactive marketing. This open character of the year, the Internet medium was also appreciated by players key document marked with the logo of IAB Polska is a symbol active at other media market segments. Many companies of changes which occurred in the organisation. implemented their own Internet strategies. A noticeable trend of seeking new employees and the shortage of experienced Internet Advertising specialists were just two symptoms of the boom. Many Expenditure Study: advertising agencies opened their interactive departments. TV IAB AdEx and radio stations, alongside with newspaper publishers implemented a number of Internet projects. Many large players The initiative to study Internet advertising expenditure, the active on the Internet market changed their strategies and IAB AdEx study, will certainly become an important step in began to launch topical sites not tied to a single brand. The the development of Polish interactive market. IAB’s partner, marketing market in search engines strengthened and grew author of the methodology and the study author in Poland is considerably. The share and development of e-mail marketing PricewaterhouseCoopers Polska Sp. z o.o. (PwC Polska). The also looked promising. New markets of affiliate marketing and results of the 2007 study, published herein are the result of advergaming began to develop; earlier they used to be too partnership between IAB Polska and PwC Polska. Study narrow to function properly. The lifestyle and e-entertainment results presented below were based on data collected by PwC markets simply exploded. One should also take into account Polska from 25 key players on the Polish market. Data the spectacular appearance and development of community collection, segregation and analysis was performed by PwC sites in media environment, involving a multitude of users and Polska, but they were not in any manner audited by PwC. definitely causing a general increase in their number. A contract executed by IAB and PwC Polska envisages Internet became an important part of media plans; the performing the IAB AdEx study every half of the year and a number of units and positions in charge of internet marketing publication of annual results in an annual report on the grew spectacularly among customers, especially when expenditure on advertising in Europe, made jointly by PwC compared with previous years. Graphic advertising retained its and IAB Europe. An identical study has been conducted in strong position on the market of advertising forms. The trend Great Britain for 9 years and became a market standard there. 6 Special extra Media & Marketing Polska, September 2008
  • Polish Yellow Pages on-line? Yes! But only on www.pkt.pl! pkt.pl search engine platform provides you with high quality Yellow Pages information about business market in Poland. You can find there contacts to companies, products and institutions as well as you can localize them on maps. We offer you contacts to 1 million firms & institutions, over 2 600 maps and the shopping platform with nearly 700 000 products and offers. 0 801 88 66 66 everything and in order www.pkt.pl
  • Strategic Report by IAB Polska: Internet 2007 Changes at IAB Polska 2007 was a year of revolutionary changes in the operating style of the Association of Internet Employers IAB Polska. It adopted a budget and employed a Director General. In May, the Association opened its new offices, and soon employed a staff of three persons. Internet-related companies appreciated these changes and IAB membership increased from 13 companies at the stage of transforming the Association into a sector union to 32 companies at the end of 2007, including one new ordinary member which is TVP SA. ACTIVITIES IN 2007 One of the first activities undertaken by IAB Polska in 2007 were recruitment of employees and organisation of the work of the office which coordinates the implementation of projects initiated by IAB Polska members. The increased number and activeness of the members led to establishing working groups. The highest level of activity was achieved by the group for search engine marketing, group for e-mail marketing and for video on the Internet. IAB plans large events to be staged in 2008 in the result of the work performed by these groups. Partnership with the Association of Advertising Agencies (Stowarzyszenie Agencji Reklamowych) resulted in creating a document on the good practice on the Internet advertisement market. The document defines the competences and responsibilities of individual entities during advertising campaign, starting from client brief, including co- operation with agencies and media houses and ending with broadcasting the campaign on WWW sites. The office established active contacts with organisers of sector conferences and ensured the participation of IAB Polska lecturers at Polish conferences (which included special panels devoted to the Internet). We also organised training courses in partnership with Digital Strategy Consulting of the United Kingdom. IAB Polska also actively participated in the work of the Union of Associations – Advertising Council (Związek Stowarzyszeń Rada Reklamy). One of the key goals of the Union was to organise Forum IAB 2007 as the largest event on the interactive market in Poland, with the motto of “Creation and Efficiency”. Forum IAB 2007 was held in November at the Radisson Hotel in Warsaw. It had the highest attendance of all conferences on interactive topics staged in Poland that year (400 participants) and its special guests were President IAB Europe Alain Heureux and Deputy President of Viacom Digital Solutions Andy Chen. Speeches by renowned Polish lecturers evoke considerable interest of the guests. The gala event held after the conference at M25 club was combined with the finals of advertising campaign competition MIXX – a brand imported to Poland from IAB USA. The Grand Prix 2007 fell to Opcom agency of Cracow. 8 Special extra Media & Marketing Polska, September 2008
  • Members of IAB Polska, May 2008 Company Address Phone, fax E-mail WWW 4people.pl Sp.j. ul. Staromiejska 12/2, tel.: 032 790 21 21 kontakt@4people.pl www.4people.pl 40-013 Katowice faks: 032 790 21 11 Ad.Net SA ul. Młynarska 42, tel.: 022 447 32 00 ludmila.krol@adnet.pl www.adnet.pl 01-171 Warszawa faks: 022 447 32 01 AdAction ul. Senatorska 13/15, tel.: 022 829 65 38 kontakt@adaction.pl www.adaction.pl 00-075 Warszawa faks: 022 829 65 55 Agora SA ul. Czerska 8/10, tel.: 022 555 44 44 sprzedaz@agora.pl www.gazeta.pl 00-732 Warszawa faks: 022 555 48 70 ARBOinteractive Polska ul. Altowa 2, tel.: 022 592 45 00 info@arbointeractive.pl www.arbointeractive.pl 02-386 Warszawa faks: 022 489 42 14 Ataxo Sp. z o.o. ul. Dąbrówki 10, tel.: 032 743 74 44 info@ataxo.com www.ataxo.pl 40-081 Katowice faks: 032 743 74 94 Bankier.pl SA ul. Koszykowa 54, tel.: 022 630 82 44 reklama@firma.bankier.pl www.bankier.pl 00-675 Warszawa faks: 022 630 85 83 Bluerank ul. Gdańska 80, tel.: 042 632 33 21 bluerank@bluerank.pl www.bluerank.pl 90-613 Łódź faks: 042 632 15 51 Cormedia Sp.j. ul. Bonifraterska 15/92, tel.: 022 398 38 04 reklama@cormedia.pl www.cormedia.pl 00-203 Warszawa faks: 022 635 15 40 Cube Group Sp. z o.o. ul. Migdałowa 4, tel.: 022 201 32 90 biuro@cubegroup.pl www.cubegroup.pl 02-796 Warszawa faks: 22 201 32 91 . Digital One ul. Dowborczyków 25, tel. 042 677 14 77 info@digitalone.pl www.digitalone.pl 90-019 Łódź faks: 42 677 14 78 Direct Traffic Sp. z o.o. ul. Wołodyjowskiego 83, tel.: 022 201 22 33 sprzedaz@directtraffic.pl www.directtraffic.pl 02-724 Warszawa faks: 022 201 22 39 e-Business Solutions al. 3 Maja 2 lokal 66, tel.: 022 402 09 94 info@e-bs.pl www.e-bs.pl Sp. z o.o. 00-391 Warszawa Eniro Polska Sp. z o.o. ul. Domaniewska 41, tel.: 022 314 20 00 eniro@eniro.pl www.pf.pl 02-672 Warszawa faks: 022 314 20 01 Fast Bridge ul. Altowa 6, tel.: 022 572 33 99 office@fastbridge.pl www.fastbridge.pl 02-386 Warszawa faks: 022 572 33 01 FFCreation Sp.j. ul. Chorągwi Pancernej 43, tel.: 022 858 79 81 office@ffcreation.pl www.ffcreation.com 02-951 Warszawa faks: 022 858 79 79 Grupa Onet.pl SA ul. Wiertnicza 166, tel.: 022 453 31 00 reklama@onet.pl www.onet.pl 02-952 Warszawa faks: 022 453 31 31 Grupa Pracuj Sp. z o.o. Prosta Office Centre, tel.: 022 373 73 00 oferta@pracuj.pl www.pracuj.pl ul. Prosta 51, faks: 022 373 73 01 00-838 Warszawa Interactive Marketing ul. Młynarska 42, tel.: 022 44 73 220 biuro@impartner.pl www.impartner.pl Partner Polska Sp. z o.o. 01-171 Warszawa faks: 022 44 73 201 Interaktywna Sp. z o.o. ul. Okrzei 23, tel.: 0 793 536 365 reklama@firma.fotka.pl www.fotka.pl 03-715 Warszawa faks: 022 211 95 35 Interia.pl SA Al. Jerozolimskie 81, tel.: 022 595 16 00 reklama@firma.interia.pl www.interia.pl XV p. Orco Tower, faks: 012 646 27 10 02-001 Warszawa International Data Group ul. Jordanowska 12, tel.: 022 321 78 00 reklama_online@idg.com.pl www.idg.pl Poland SA 04-204 Warszawa faks: 022 321 78 88 Internetowy Dom Mediowy ul. Jubilerska 10, tel.: 022 211 33 88 agencje@idmnet.pl www.idmnet.pl Net Sp. z o.o. 00-939 Warszawa K2 Internet SA al. Solidarności 74a, tel.: 022 448 70 00 biuro@k2.pl www.k2.pl 00-145 Warszawa faks: 022 448 71 01 Kompan.pl Sp. z o.o. ul. Puławska 469, tel.: 022 486 96 00 kompan@kompan.pl www.kompan.pl 02-844 Warszawa Media Contacts Sp. z o.o. ul. Postępu 13, tel.: 022 843 66 60 office.poland@mediacontacts.com www.mediacontacts.com 02-676 Warszawa faks: 022 843 66 61 Media Direction OMD ul. Ateńska 67, tel.: 022 511 11 20 office@mediadirection.com.pl www.mediadirection.com.pl 03-970 Warszawa faks: 022 511 11 42 Media Regionalne Sp. z o.o. Prosta Office Center, tel.: 022 463 07 00 reklama@mediaregionalne.pl www.mediaregionalne.pl ul. Prosta 51, faks: 022 463 00 77 00-838 Warszawa Mediaedge:cia ul. Dobra 56/66, tel.: 022 55 27 791 tomasz.rzepniewski@mecglobal.com www.mecglobal.com 00-312 Warszawa faks: 022 55 27 770 MindShare Polska Sp. z o.o. ul. Dobra 56/66, tel.: 022 55 27 200 warsaw.reception@mindshareworld.com www.mindshare.pl 00-312 Warszawa faks: 022 55 27 201 Money.pl Sp. z o.o. ul. Kościuszki 29, tel.: 071 337 42 66 reklama@money.pl www.money.pl 50-011 Wrocław faks: 071 337 42 70 Mosqi.to ul. Wigury 13 lok. 10, tel.: 042 636 75 51 ideas@mosqi.to www.mosqi.to 90-302 Łódź NetSprint Sp. z o.o. ul. Bieżanowska 7, tel.: 022 844 49 90 informacje@netsprint.pl www.netsprint.pl 02-655 Warszawa faks: 022 852 20 60 Nowoczesna Firma Sp. z o.o. ul. Flory 9/1, tel.: 022 314 14 00 info@nf.pl www.nf.pl 00-586 Warszawa faks: 022 314 14 10 O2.pl ul. Jutrzenki 177, tel.: 022 398 88 88 info@firma.o2.pl www.o2.pl 02-231 Warszawa faks: 022 398 80 99 Opcom Grupa Eskadra ul. Jeleniogórska 17, tel./faks.: 012 26 80 100 info@opcom.pl www.opcom.plul Sp. z o.o. 30-422 Kraków Performance Media ul. Idzikowskiego 19, tel.: 022 899 03 45 info@perfomance-media.pl www.performance-media.pl 02-704 Warszawa faks: 022 899 15 74 Plasma Media ul. Czeremchowa 28, tel.: 0 501 541 105 agencjareklamowa@plasmedia.pl www.plasmamedia.pl 03-159 Warszawa Point of View ul. Filona 16, tel.: 022 843 50 31 info@pointofview.pl www.pov.pl 02-658 Warszawa faks: 022 843 9 97 Polskie Badania Internetu Al. Jerozolimskie 65/79, tel. 022 630 72 68 biuro@pbi.org.pl www.pbi.org.pl Sp. z o.o. 00-697 Warszawa faks: 022 630 72 67 Polskie Książki Telefoniczne al. Solidarności 128, tel.: 022 632 17 02 w. 400 infodok@pkt.pl pkt.pl Sp. z o.o. 01-195 Warszawa faks: 022 310 62 60 Sare ul. Niedźwiedzia 2c, tel.: 022 852 28 59 biuro@sare.pl www.sare.pl 02-737 Warszawa Synerway SA al. Niepodległości 69, tel. 022 322 73 18 info@synerway.pl www.synerway.com.pl 02-626 Warszawa Telewizja Polska SA ul. J.P Woronicza 17, . tel.: 022 640 22 24 cezary.chmielewski@brtvp.pl www.itvp.pl 00-999 Warszawa faks: 022 640 22 02 Trader.com (Polska) Sp. z o.o. ul. Towarowa 22, tel.: 022 455 33 00 info@trader.pl www.trader.pl 00-839 Warszawa faks: 022 455 33 01 Value Media ul. Fasolowa 31a, tel.: 022 203 60 00 biuro@valuemedia.pl www.valuemedia.pl 02-482 Warszawa faks: 022 863 13 60 Web Search Factory Polska ul. Rajskich Ptaków 55a, tel.: 022 894 41 57 info@websearchfactory.pl www.websearchfactory.pl Sp. z o.o. 02-816 Warszawa faks: 022 894 41 57 Wirtualna Polska SA ul. Sienna 75, tel.: 022 57 63 900 br@wp-sa.pl www.wp.pl 00-833 Warszawa faks: 022 57 63 999 Zanox.de AG ul. Suwak 3, tel. 022 23 21 370 info.pl@zanox.com www.zanox.com/pl 02-676 Warszawa faks: + 49 30 50 96 91 99 Zed Digital ul. Gdańska 27/31, tel.: 022 345 21 40 zed_poland@zeddigital.pl www.zeddigital.pl 01-633 Warszawa faks: 022 345 21 41
  • Strategic Report by IAB Polska: Internet 2007 Partnership with IAB Europe IAB Polska, operating within the framework of IAB Europe, organised the MIXX Awards interactive campaigns competition as the second European country (after Belgium). We also designated a Polish representative in the worldwide MIA Project initiative which aims at arriving at common currency for the audience measurement studies. 13 representatives of internet companies from Poland participated in the IAB Europe – Interact 2007 congress in Brussels. How about 2008? We will do our best to introduce and popularise events promoting interactive marketing, including IAB Update and IAB Showcase cycles. We shall arrange two single-theme conferences devoted to SEM and video on the web. Another challenge will be a two-day Forum IAB 2008 to be staged in November. We also plan a comprehensive schedule of business-related activities and we hope to attract more participants than last year. At the beginning of June, over 60 representatives of Polish internet sector shall participate in the Interact Congress in Berlin. We also plan to arrange a similar mission to visit OMD trade fair in Düsseldorf this autumn. We also work on a number of major actions whose details will be disclosed in due time. We also count on a dynamic membership increase and on more initiatives from the members. 10 Special extra Media & Marketing Polska, September 2008
  • Strategy first ARBOinteractive Poland is a part of ARBOinteractive AG – a company specializing in online and new media marketing solutions. ARBOinteractive AG offers advertising networks in its portfolio, which establishes its uniqueness in the terms of reach on online market in Mid and Eastern Europe. The company owns 6 branches – in Poland, Czech Republic, Romania, Turkey and Russia. ARBOinteractive AG represents a part of ARBOmedia AG, the European group dealing with media sales, consulting and advertising campaigns implementation. Polish branch of ARBOinteractive includes ARBOnetwork - an advertising network of nearly 500 affiliated websites, Bizon media – a theme network specializing in business, LOGICSEARCH – a SEM/SEO broker, contextual advertising system - SmartContext, and AdKing – an interactive agency.
  • Strategic Report by IAB Polska: Internet 2007 CHAPTER 1 Access to the Internet Access to the Internet residents having access to the Internet. However, worldwide although Asia has a low indicator of 13.7%, the presence of Asian users is the best noticeable, as the According to data provided by InternetWorldStats.com, indicator translates into a group of more than 500 20% of world’s population were using the Internet. This million persons, or almost 40% of all Internet users. rate is equivalent to more than 1.3 billion person, which Undoubtedly, this group will strengthen its position, marks an increase by approx. 200 million, as compared mostly due to the presence of Indian and Chinese users. with the previous year. The world’s leader in the Europe ranks second with respect to the number of percentage of Internet users is the U.S.A. with 71.1% Internet users (348 million). However, they constitute only 43.4% of the residents of the whole continent. This proportion is the highest in Scandinavian countries: Access to the Internet worldwide Norway has 88% residents using the Internet (best result worldwide), Iceland has 85.4%, Sweden 77.3%, Country Number % of population Increase Denmark 68.8%. In addition to that, the Netherlands of Internet users (penetration) 2000/2007 have 87.8% of residents using the Internet and Portugal (million) (%) North America 238.0 71.1 120 ranks quite high with its 73.1% of Internet users. Oceania/Australia 19.2 57.1 152 Generally, more than half residents of European Union Europe 348.1 43.4 231 are Internet users (55.7%.) Germans have the highest Latin America 126.2 22.2 599 Internet presence out of all European nations (53.2 Middle East 33.5 17.4 920 million users) followed by Brits (40.4 million), Asia 510.5 13.7 347 Africa 44.4 4.7 883 The World 1319.9 20.0 266 The Netherlands 14.5 87.8 273 Internet Users by Regions Sweden 7.0 77.3 73 Portugal 7.8 73.1 211 North America Asia The rest Luxembourg 0.3 70.6 239 Europe Japan of the world Denmark 3.8 68.8 93 Great Britain 40.4 66.4 162 Germany 53.2 64.6 122 23 Finland 3.3 62.7 71 6 Slovenia 1.3 62.2 317 2010 36 Estonia 0.8 57.8 107 18 Italy 33.1 57.0 151 Austria 4.7 56.7 121 16 Spain 22.8 56.5 324 France 34.9 54.7 310 20 Belgium 5.5 52.8 175 9 Ireland 2.1 50.1 163 Czech Republic 5.1 49.9 410 2005 29 Latvia 1.1 47.4 614 21 Slovakia 2.5 45.9 285 22 Cyprus 0.4 45.2 197 Poland 14.1 36.6 403 Greece 3.8 35.5 280 11 Hungary 3.5 35.2 390 8 Lithuania 1.2 34.2 443 2000 17 Malta 0.1 31.7 218 25 Romania 7.0 31.4 775 39 Bulgaria 2.2 30.0 412 European Union 273.2 55.7 190 % 5 10 15 20 25 30 35 40 Source: Internet World Stats, December 2007 Source: The World Bank, CIA Factbook (2005), Jupiter Research (2006), PWC (2005), Computer Industry Almanac (2006) 12 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 20 countries with the highest number Access to the Internet of Internet users in Poland Country Number of Internet % of residents users (million) (penetration) Internet penetration in Poland is still lower than in USA 210.0 69.6 Western Europe, but the number of Polish Internet users China 132.0 10.0 is growing steadily and fast. A NetTrack study by Japan 86.3 67.1 Millward Brown SMG/KRC conducted at the end of Germany 50.6 61.3 2007 showed that Poland had 12.9 million Internet India 40.0 3.5 Great Britain 37.6 62.3 users over 15 years of age. Basing on that figure, South Korea 33.9 66.1 Megapanel study estimates that the number of Internet France 30.8 50.3 users over 7 is 14.1 million. Compared with 2006 this Italy 30.8 51.7 figure grew by more than 10% (according to NetTrack Brazil 25.9 13.9 data). Internet users constitute 39.5% of persons aged Russia 23.7 16.5 Canada 21.9 67.5 7 and more. Similar data have been provided by the Mexico 20.2 19.0 Main Office of Statistics GUS, which says that in 2006, Spain 19.2 42.7 41% households and 92% companies had access to the Indonesia 18.0 8.0 Internet. 38% households actually used the Internet, Turkey 16.0 21.1 which translates into 39% Poles in the age group of 16- Australia 14.7 70.2 Vietnam 14.5 17.1 -74 who are regular Internet users (at least once a Taiwan 13.8 60.0 week). Compared with previous year, this figure Argentina 13.0 34.0 increased by 5%. Internet usage in Poland is still centred in large cities; Source: Internet World Stats, December 2007 its penetration in cities over 500 thousand residents is almost twice as high as in the countryside. However, the Frenchmen (34.9 million) and Italians (33.1). Poland growth of penetration in previous year was slightly faster ranks 9th in Europe with its 14.1 million Internet users. The Internet is much less common in Eastern Europe. The rate of internet users in Russia, Ukraine or Turkey does not exceed 25%, but due to the size of the The number of Internet users in Poland population, the number of users is quite high anyway; Internet users over 7 years of age (Megapanel) for instance, Russians constitute 8.4% of all European Internet users over 15 years of age (NetTrack) Internet users. The examples below illustrate changes occurring in 15 14.1 the Worldwide Web. In 1995, 66% of all Internet users 3 13.1 9 12.9 in the world were from the USA; now U.S. users constitute only 18%; Vietnam and India are now among 12 7 11.7 the top 20 countries with the highest number of Internet users. India is an excellent example of the potential of 9.6 96 Asian countries, as it has now more Internet users than 9 9 8 8.4 Germany (the country with the highest number of Internet users in Europe), although Internet penetration 4 7.4 in India is as low as 5.3%. One should remember that 6.5 the quantity does not always translate into quality – the 6 5.8 highest number of features in Wikipedia is written in 4.6 English, German, French and Polish, followed by Japanese (although Japan has as many as 87.5 million 3 2.2 of Internet users) while Chinese ranks 12, which is comparatively low. mln 2000 2001 2002 2003 2004 2005 2006 2007 Source: Millward Brown SMG/KRC NetTrack, December 2000-2007, Megapanel PBI/Gemius, December 2004-2007 Special extra Media & Marketing Polska, September 2008 13
  • Strategic Report by IAB Polska: Internet 2007 Propotion of Poles using the Internet in the countryside than in the cities. Penetration in cities in 2007 grew by more than 4.5% while the increase in Internet users over 7 years of age (Megapanel) the countryside reached 5%. Most probably, the Internet users over 15 years of age (NetTrack) disproportion will be reduced in the coming year, in the result of growing popularity of the Internet. The number 50 of new users from rural areas in 2007 was a number of 42.9 times higher than the number of users from the cities. The majority of Polish users of the Internet is young. 40 38.7 39 39.5 36 36.9 The Megapanel PBI/Gemius study conducted in December 2007 showed that almost all members of age group 15-19 were internet users (2.64 million or almost 30 8 28 94.6% of all Poles in this age bracket). However, the 26 8 6 26.8 penetration in the group over 60 is still only 5.3%, 25.3 24.5 5 21.7 although it grew by half as compared with 2006. 19.3 The trend is quite clear – Internet is used by almost 20 all persons from the age bracket 15-19, by more than 15.2 half of persons from the age bracket 20-29 and by almost half of persons from the age bracket 30-39, 10 every fourth person from the 40-59 bracket and only 7.4 every twentieth person from the over 60 bracket. One should not expect any radical changes here – it seems % quite probable that more than 6 million of Poles over 2000 2001 2002 2003 2004 004 4 2005 005 5 2006 006 6 2007 20 007 60 will not use the Internet; the increasing Internet Source: Millward Brown SMG/KRC NetTrack, December 2000-2007, Megapanel PBI/Gemius, December 2004-2007, GUS Percentage of internet users out of the total number of residents Internet penetration by city/town size in Poland Village Town Average in Poland 60 50 46.8 53.5 50.5 51.6 50 42.1 43.6 39.4 42.4 40 40.5 40 34.4 29.7 30 27.3 30 31 27.3 23.6 20 25 22.2 20 10 13.9 15.7 % % Village Up to 20-50k 50-100k 100-200k 200-500k Over 20 50k 50 100k 100 200k 200 500k 2004 2005 2006 2007 20k residents residents residents residents 500k residents residents Source: Megapanel PBI/Gemius, December 2004-2007, GUS Surce: Megapanel PBI/Gemius, December 2007, GUS 14 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Internet penetration Forecast – percentage of persons by age groups in Poland with Internet access in Poland 100 94.6 60 80 50 50 47 60 56.7 43 48.7 39 44.7 40 40 34 25.1 30 30 20 5.3 % % 7 14 7-14 15 19 15-19 20-29 20 29 30-39 30 39 40-59 40 59 60+ 2005 2006 2007 2008 2009 2010 Source: Megapanel PBI/Gemius, December 2007, GUS Source: ITU penetration in the latter group will be slow and caused mostly by aging of Poles from groups which are well acquainted with that medium. According to the forecast of the International Propotion of Internet users as compared Telecommunications Union published in 2003, the with total number of residents, percentage of Poles with access to the Internet will grow by age groups up to 50% as late as in 2010. So far, the forecast has been proven valid and, taking into account a slight 7-14 15-19 20-29 30-39 increase of the number of Internet users in 2007 as 40-59 60+ Average in Poland compared with previous years, it may actually turn true. The most frequent reasons for the lack of Internet 100 access in households named by respondents in a study 93.7 94.6 by the Main Office of Statistics (GUS) included, primarily, no need to use the WWW, followed by 80 economic reasons such as to high cost of hardware and 72.8 Internet access. However, it is optimistic that the study 71.4 noted a decrease in responders naming such reasons by 60 51.7 56.7 4-5% as compared with 2006 and 2005. The fourth 46.7 48.7 key reason was insufficient knowledge. The percentage 41.7 44.7 of responders giving such reason increased by 5% in 40 39.6 42.3 39.4 35.4 37.3 three recent years, due to increased number of Internet 34,4 27.1 users and growing group of users with basic and 24.2 25.1 23.6 25 27.2 secondary education. 20 14.8 17.3 Limited technical capability of internet service 3.6 providers was more frequently named as an obstacle in 2 5.3 1.5 obtaining broadband Internet access (21% households % 2004 2005 2006 2007 without fast connection) than as an obstacle to general Source: Megapanel PBI/Gemius, December 2004-2007, GUS access to the Web (9% of households). On the other 16 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Reasons for the lack of Internet access Share of Internet access services revenue at home (% of total numbers of households in total revenue of operators 3rd quarter without access to the Internet in 2005-2007) of 2007 2005 2006 2007 Cable TV Others Telecoms Poland 41 No need 43 39 9% 32 18% Too high hardware costs 36 36 6% Too high Internet 31 64% access costs 35 33 No revelant 20 3% skills 19 15 No technical 9 infrastructure Netia Dialog for Internet 8 access 8 No mobile telephone operators included Source: Office of Electronic Communications UKE, based on data provided by operators Access 8 to the Internet from other 8 sources 7 share of Telefonia Dialog SA and Netia SA amounted 3 respectively to 3 and 6%. Dislike of the Internet 3 The reach of Internet within population is not the 3 single measure of new solution development. Other 2 important ones include the development of broadband Safety reasons 2 access and the number of arrangements concluded by 1 Internet with public administration entities and % 10 20 30 40 50 companies. In this respect, Poland ranks much lower The study allowed for more than one answers, so the totals do not sum up to 100% than other EU countries and European states without Source: GUS EU membership. According to Eurostat, only 25% of basic public services under research were available via Internet in Poland in 2007, while the average for 27 EU hand, the number of persons meeting technical members was 59. The only two states ranking lower obstacles at the stage of gaining access to the WWW than Poland were Bulgaria (15%) and, surprisingly was three times higher: for 641 thousand or 9% out of enough, Switzerland with 21%. In most European about 7,4 million households it was impossible to countries, the discussed indicator exceeds 50% and in obtain access to the Web, whiles 223 thousand of Austria it amounts exactly to 100%. households (21% of slightly more than one million) The low access to public services results in a very wanted faster connection but encountered problems on low percentage of citizens contacting public offices by the Internet provider side. the Internet: the figure for 2007 was 15% in Poland, The leading Internet provider in the 3rd quarter of while an EU average was on the level of 30%. In this 2007 was Telekomunikacja Polska SA (Telecoms ranking, Poland was ahead of Greece, Bulgaria and Poland). Its share in the revenue from Internet access Romania only. The proportion concerning companies is services amounted to 64% and it was followed by cable better, with 64% companies using Internet for contacts TV operators, with a 18% share in the global figure, with offices in 2007. The figure is close to the EU closely followed by other providers (9% share). The average amounting to 65%. Poland will probably remain 18 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 at the lowest positions in European ranking which Percentage of persons usin' the Internet concern e-government, as the development of e-society for contacting public administration offices does not seem to be the priority of authorities; even if some legal regulations are passed in this respect, their Denmark 58 implementation is usually postponed. This tendency is Norway 55 illustrated by the law of 2001 on introducing electronic Iceland 54 signature – in 2006 the deadline for introducing e- The Netherlands 49 -signature in state administration was postponed until Sweden 47 mid 2008 which means that the implementation of this Luxembourg 44 Finland 43 law has taken 7 years for the Polish state. Last autumn Germany 39 the Ministry of Finance announced that as of April 1st, France 37 2008, residents will have an option to submit their PIT Great Britain 33 returns as of April 1st, 2008. However, the option is EU (15 members) 31 open only for owners of qualified e-signature which Euro countries 30 costs some hundred PLN and requires costly extensions Slovenia 28 in the following years. In addition to that, citizens have Estonia 27 to notify the Revenue Office on their intention to send EU (27 countries) 27 their tax returns by the Internet and to wait until the Ireland 26 head of the Office issues a statement on accepting an Spain 25 electronic tax settlement; waiting time for such decision Austria 24 is a few weeks. In such circumstances, one can hardly Hungary 22 expect large numbers of citizens to use Internet for Belgium 21 sending their tax returns. For comparison, 65% citizens Slovakia 20 of Norway (an e-government leader in Europe according Cyprus 18 to Eurostat) submitted their tax returns online in 2006. Lithuania 18 Luckily, there are considerable chances for Poland to Latvia 17 undergo breakthrough in e-government in 2008. As of Portugal 17 July that year, all companies with employment over 5 Italy 15 persons will be obliged to sign their returns on social Czech Republic 14 Poland 12 insurance contribution (ZUS) with qualified e-signature, Source: Eurostat 2007 Greece 10 which will rapidly increase the number of e-signatures. Bulgaria 4 Companies providing such signatures expect that the Romania 4 requirement may result in a decrease of prices even to PLN 30 for one signature. It is expected that this year % 10 20 30 40 50 60 Polish mobile phone users will be able to use a mobile signature, cheaper than current e-signatures, easier to handle and easier to obtain by individuals. Perhaps 100 residents is 6,8 (Eurostat, 1st half of 2007). The Poland will place better in future Eurostat rankings on e- lowest rate of broadband Internet availability has been -government. noted only in Greece, Romania and Bulgaria. The EU average is almost three times higher than the Polish Broadband Internet proportion and amounts to 18.2 lines per 100 residents. Which is more, the factor grows faster in Although the majority of Poles use broadband other countries – the EU average increased from 14.8 in Internet (90% respondents of NetTrack using Internet at 2006 to 18.2 in 2007 (although the average in 2007 home had a fixed connection with the Internet), Poland was lowered by new members, Romania and Bulgaria), has the lowest broadband penetration compared with while the increase in Poland at the same time was from other developed countries. Although at the end of 2007 3.9 to 6.8. Poland had approximately 3,5 million broadband lines, Poland’s position is slightly better in the ranking of which in absolute figures gives it the 9th place in households with the access to broadband Internet. Europe, however the proportion of broadband lines per According to Eurostat, 30% Polish households has such Special extra Media & Marketing Polska, September 2008 19
  • Strategic Report by IAB Polska: Internet 2007 The number of broadband connections The rate of households with access per 100 residents to broadband Internet Denmark 37.2 Iceland 76 The Netherlands 33.1 The Netherlands 74 Finland 28.8 Denmark 70 Sweden 28.3 Sweden 67 Luxembourg 24.6 Norway 67 Belgium 23.9 Finland 60 Great Britain 23.8 Luxembourg 58 France 22.3 Great Britain 57 Germany 21.1 Belgium 56 EU (15 members) Germany 50 20.8 Estonia 48 Estonia 20 EU (15 members) 46 Austria 18.4 Austria 46 EU (27 countries) 18.2 Slovenia 44 Spain 16.8 France 43 Italy 15.9 EU (27 countries) 42 Ireland 15.5 Spain 39 Slovenia 15.3 Lithuania 34 Portugal 14.8 Hungary 33 Malta 13.9 Latvia 32 Lithuania 12.7 Ireland 31 Czech Republic 12.2 Portugal 30 Hungary 11.6 Poland 30 Latvia 11.6 Czech Republic 28 Cyprus 11.1 Slovakia 27 Slovakia 6.9 Italy 25 Source: Eurostat 2007 Poland 6.8 Source: Eurostat 2007 Cyprus 20 Greece 6.8 Bulgaria 15 Romania 6.6 Romania 8 Bulgaria 5.7 Greece 7 % 5 10 15 20 25 30 35 40 % 10 20 30 40 50 60 70 80 access, which places Poland ahead of Italy, Czech in Japan, France, Sweden or Finland is below 0.5 USD. Republic and Slovakia. However, as compared with Regrettably, Poland is far behind other countries with ranking of 2006, Poland has been taken over by respect not only to the access to broadband Internet, but Hungary, Lithuania and Ireland. The distance between also to its price. Poland and other EU countries is increasing, as the proportion of households with access to fast Internet increased in Poland by 8% throughout the year, while the average EU increase in the same period was 10%. Conclusions from Eurostat data are confirmed by a OECD report, which says that the average speed of broadband connections in Poland was 4.2 Mb/s, while the average speed of all OECD states was 13.7 Mb/s. The cost of 1 Mb/s in Poland is at least 6.5 USD, while 20 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Internet browsers The percentage of users of new browsers Polish Internet users differ from Western ones with Firefox 2.x MSIE 7.x respect to software used for Internet sites; Poland is 35 33.5 much faster in popularising new solutions, considered Source: Gemius SA, gemiusTraffic, II 2006 – II 2008 by experts as faster and more efficient. 30 26.5 After the period of market domination of various 25 versions of Microsoft browsers, three years ago there 20 appeared free, modern products with better protections 20 against network attack. 15 11.9 At the end of 2007, 59.5% users favoured Microsoft 10.9 10 8 browsers, while alternative browsers acquired more 6.7 than 40% of the market. In other countries, vast 5 2.2 3.2 majority of Internet users still prefer Internet Explorer. 0.1 % The market share of Firefox browsers is in Poland 6 06 V 6 VI 6 06 VI 06 IX 6 X 6 06 XI 06 I2 6 II 2 7 III 7 IV 07 V 7 VI 7 VI 07 VI 07 IX 07 X 7 07 XI 07 I2 7 II 2 8 8 00 0 0 00 0 00 00 00 0 0 0 00 00 00 20 20 20 20 0 20 20 20 20 20 20 20 0 0 20 20 20 II 2 I2 II 2 I2 I2 II 2 I2 33.6%, compared with Europe with 28% and America III IV XI XI VI with 21% only. The latter figure is the same as the global index. Naturally it means, that the majority of European and American users prefer Internet Explorer, as it has no other serious competitors except for Firefox. In 2007, both competitors quickly increased their market share in Poland; Explorer was upgraded to version 7 and Firefox – to 2.x. A higher number of Polish Internet users chose Mozilla product; almost 30% of them were using it at the end of the year, while only 15% users purchased the new product of Microsoft, which is 50% of Firefox buyers. Naturally, the most popular browser is still Internet Explorer 6.x, and its share decreased by 15%, down to 44.1%. Internet browsers in Poland Users of Internet browsers in Poland at the end of 2007 2004 2006 2007 MSIE 6.x 44.1 100 88 Firefox 2.x 31.5 MSIE 7.x 15 80 Source: Gemius SA, gemiusTraffic, December 2004, 2006, 2007 Opera 9.x 5.8 64.8 0.595 Firefox 1.x 2 60 MSIE 5.x 0.4 Mozilla 1.x 0.4 40 0.336 Opera 8.x 0.2 27.1 Firefox 3.x 0.1 20 Safari 3.x 8.4 8.1 0.069 0.1 3.6 % 10 20 30 40 50 % I t Internet Explorer tE l Fi f Firefox O Oth Other Source: Gemius SA, gemiusTraffic, December 2007 Special extra Media & Marketing Polska, September 2008 21
  • Strategic Report by IAB Polska: Internet 2007 PC market in Poland In 2007 the sales of PCs in Poland amounted to 3 Sales on the PC market in the years 1996-2007 million which signifies an increase by more 20% as 3 compared with 2006. The share of laptops in that figure grows steadily; in 2007 laptops constituted 2.5 approximately 50% of PCs, in 2008 Poles will probably buy more laptops than non-portable PCs. In the result, 2 Poland will be ahead of global trend, as the global sales 1.5 of laptops will be ahead of desktop PC sales in 2001 (according to IDC), although this phenomenon has 1 already occurred at the best developed markets (e.g. the U.S. reached that level 2 years ago). 0.5 The phenomenon is mostly due to decreasing prices mln of laptops, which proved attractive for small and 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 medium companies. Price reductions are partly due to Source: IDG, based on the Rzeczpospolita daily the weakening U.S. dollar and partly – to the new price and product policy of leading notebook manufacturers. Sales of portable computers in 2008 will probably Households with PC in Poland exceed the sales of desktop computers. The new products, such as micro notebooks with flash memory will be definitely attractive for retail 6 buyers. Corporate customers will be probably tempted 5 by hardware prices, which in 2007 amounted to 2-2.5 K PLN. 4 The number of PCs in Polish households keeps growing. According to a TGI study by Millward Brown 3 SMG/KRC, the number of households with PCs reached 2 the level of 5.5 million in, or 43% of all households). The same indicator provided by GUS is even higher: the 1 number of households with a PC increased in 2007 by 1 million and reached 6.8 million or 54% of all mln 2000 2001 2002 2003 2004 2005 2006 2007 households. Source: Millward Brown SMG/KRC TGI, December 2000-2007 22 Special extra Media & Marketing Polska, September 2008
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  • Strategic Report by IAB Polska: Internet 2007 CHAPTER 2 Online consumers Education and professional status Polish Internet users have higher social and material Education of 18+ Internet users in Poland status than average; most of them are well educated. The percentage of persons with university education is University Primary Gymnasium (complete/incomplete) not much higher than in the whole population and amounts to 19.5% (in addition to that, 21.2% of users 1.9% 2.7% have college education). Persons with secondary education (complete and incomplete) also constitute a 13% 24.1% large group (33.4%). As compared with 2006, no major changes were noted in these indicators, although the number of Internet users grew by a million. 26.2% 32.1% Education of Internet users in Poland University Primary Gymnasium (complete/incomplete) 6.7% College Secondary Basic 9.1% (complete/incomplete) vocational 19.5% Source: Megapanel PBI/Gemius, December 2007 10.5% 21.2% 33% Professional status of Internet users in Poland Old age/disability Qualified Unemployed pensioner blue collar Other Student College Secondary Basic (complete/incomplete) vocational 18% Source: Megapanel PBI/Gemius, December 2007 3.5% 34.6% 3.5% 3.8% The education of adult Polish internet users even 4.5% better reflects the differences within the whole 4.8% population. 21.4 of Internet users over 18 have 8.2% 5.9% university education, while only 1.9 have primary 6% 7.3% education only. Every third user of Internet in Poland is a private businessman, a manager, a freelancing professional or a clerk. Although students still constitute the most Owner, manager, Free lancing White collar, director professional administration numerous group of users (34.7%), their rate decreased Lower level Businessman Trade and services in 2007 by almost 3%. Unemployed persons constitute manager Source: Megapanel PBI/Gemius, December 2007 24 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Revenue of Polish Internet users concerned – 34.7% of the users are students. 9.8% of users achieve revenue under 1000 PLN, 18,5 of users Gave no answer No revenue Up to PLN 1000 – revenue between 1001-2000 PLN, 7.1% users – over 2000 PLN and 3.9% – over 3000 PLN. The number of persons who refused to answer grew compared with 2006 from 23.8 to 26.8%. The majority of Internet 26.8% users who declared that they achieve revenue consists 33.9% of persons with earnings between 1000-2000 PLN (47.1% of this group). Persons with earnings under 1000 PLN are also numerous (25%), but the share of 3.9% this group decreased considerably as compared with 7.1% 2006 (by 7%). The share of persons with earnings 9.8% ranging between 2000-3000 PLN slightly increased, 18.5% from 15.2% in the previous year to 18%. The share of persons with earnings over 3000 PLN is 9.9% as compared with 9% in 2006. Over PLN 3000 Between PLN 2001 and 3000 Between PLN 1001 and 2000 Internet and division of residents by sex Source: Megapanel PBI/Gemius, December 2007 Almost half of Polish internet users are women. a very narrow group of 3.5%, while old age and Similarly to 2006, the age group 15-35 years consisted disability pensioners constitute 3.8%. The largest group of more women than men, while the older group is of non-students are clerks and administration employees dominated by men, particularly in the most senior age (8.2%) freelancing professionals (7.3%) persons bracket 55+, where the number of men is almost three employed in trade and services sectors (6%) and times higher than the number of women. Due to the directors (6%). higher number of men in the youngest and most senior The majority (33.9%) of Polish Internet users declare no revenue. This results from the structure of the group Polish Internet users by sex (age brackets) Revenue of Internet users among persons who declared revenue in plus Women Men 18.7 20 Over PLN 3000 Up to PLN 1000 14.3 9.9% 15 25% 11.8 18% 10.4 10 7.9 7.2 6.8 6.4 5.4 4.8 4.7 47.1% 5 1.7 Between PLN 2001 Between PLN 1001 % 0 14 0-14 4 15 24 15-24 5 25 34 25-34 5 35 44 35-44 54 45 5 45-54 5 54 55+ 5 and 3000 and 2000 Source: Megapanel PBI/Gemius, December 2007 Source: Megapanel PBI/Gemius, December 2007 Special extra Media & Marketing Polska, September 2008 25
  • Strategic Report by IAB Polska: Internet 2007 age group, the overall number of men among Polish Age structure of internet users is slightly higher than the number of Internet users women users. The time spent on visiting various portals by users of The most sizeable age group of Internet users in both sexes is also dissimilar. Men spend twice as much Poland are persons between 15-24 years of age (33%), time than women while browsing sports sites, and they followed by persons between 25-34 years (22.2%). also spend more time viewing business, information and Only every 15th person in the Web is over 55 lat. During automotive sites. Women more frequently visit 2007 the age structure of users has not changed, the community portals and sites for women, which seems only difference was slightly higher share of more senior obvious. In December 2007 men and women alike persons. spent 38 hours per month in the Internet, which constitutes a remarkable change as compared with The place of residence December 2006, when men spent in the Internet Polish Internet is still more frequently used by noticeably more time than women (30 hrs as compared residents of large agglomerations and areas with a well with 26.5). developed telecoms infrastructure, but the process of Therefore, Poland’s image is quite good with respect geographical diversification of Web users becomes more to equality of sexes as compared with other European and more noticeable. The largest number of Internet countries; the proportion of men and women using the users is in the Mazowsze province (13.5%), followed by Internet is only slightly in favour of men. The Śląsk (12.8%), Małopolska (9.2%), Wielkopolska disproportions ain this respect are quite larger in some (8.3%) and Dolny Śląsk (7.3%). EU countries. According to Eurostat, the percentage of A notable majority of Polish Internet users live in the men and women using the Internet is respectively cities, in contrast to the structure of population in 41 and 37% within the age bracket 16-74 in Poland, Poland. Although almost 40% of Polish residents live in while the same figure in Italy is only 28% for women the countryside, the proportion of Internet users from and 39% for men, in Spain – 40% of women and 49% the country is only 26.5%. However, these of men. A similar disproportion between the sexes was disproportions are being reduced, as the number of noted in Germany and Austria. Internet users in Poland by place of residence Podkarpackie Other Mazowieckie Internet users in Poland by age Śląskie Małopolskie 55+ 0-14 15-24 13.5% 25.7% 6.5% 11.1% 12.1% 12.8% 5.5% 9.2% 15.1% 5.6% 33% 6% 8.3% 6.2% 7.3% 22.2% Łódzkie Dolnośląskie Wielkopolskie Kujawsko-Pomorskie Pomorskie 45-54 35-44 25-34 Source: Megapanel PBI/Gemius, December 2007 Source: Megapanel PBI/Gemius, December 2007 26 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 The comparison of the structure of population and the structure of Internet users in Poland group of users by place of residence are rural residents Internet users Population (26.5%) and residents in towns under 20K residents (13.9%.) Both groups combined constitute 40.4% of all 26.5 Internet users in Poland. Persons living in cities over Village 38.2 500 K residents constitute the second largest group Up to 20K 13.9 (15.9%). However, as it has been mentioned earlier, this residents 12.9 proportion does not reflect the actual structure of Polish population. 20-50K 11.2 residents 10.9 The place and manner 50-100K residents 9.8 of using the Internet 8.8 100-200K 9.7 Polish Internet users most frequently surf the Web at residents 7.6 home – four out of five users declared so at the end of 13.1 2007 (83.3%). Other places include work (25.7%), 200-500K residents 10 Over 500K 15.9 The place of using the Internet residents 11.7 Source: Millward Brown SMG/KRC NetTrack, 100 December 2007 % 5 10 15 20 25 30 35 40 Source: Megapanel PBI/Gemius, December 2007, GUS 83.3 80 Internet users keeps growing, with new users coming from areas of lower Internet penetration. In the course of 2007, the share of residents of rural areas in the total 60 population of users grew by 2%, while the share of residents of the largest cities (over 500K residents) decreased by 1%. 40 In spite of much better access to the Internet in the 25.7 largest cities and agglomerations, the most numerous 20 12.5 8.4 Structure of Internet users by place 2.1 0.8 of residence (size of locality) % At home At work At school/ At frieds’ Café Others university place City between City over 500K Village City up to 200-500K 20K The place of using the Internet – changes At home At work At school/university At friends’ place Internet café, store 15.9% 26.5% 90 Source: Millward Brown SMG/KRC NetTrack 80 13.1% 70 60 9.7% 13.9% 50 9.8% 11.2% 40 30 20 Surce: Megapanel PBI/Gemius, December 2007 10 City between City between City between % 2000 2001 2002 2003 2004 2005 2006 2007 100-200K 50-100K 20-50K 28 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 school/university (12.5%), Internet cafes (2.1%) and Average time of using the Web (hrs) Source: Megapanel PBI/Gemius friends’ place (8.4%). The percentage of persons using 40 Internet at school, cafes and friends’ place decreased as compared with 2006, with a considerable increase in 35 the percentage of persons using it at home and at work. This phenomenon is related to growing access to the 30 Internet at home and increasing number of older persons using the Internet at work. The percentage of persons 25 using Internet at home kept growing in 2007. The development of home internet is related to growing 20 chances for providing permanent links at the place of residence of respondents. The Internet is becoming an 15 increasingly phenomenon in lives of its users; they 04 04 05 005 005 005 005 005 006 006 006 006 006 006 007 007 007 007 007 007 20 II 20 II 20 2 2 2 2 II 2 II 2 2 2 2 2 II 2 II 2 2 2 2 2 II 2 X X IV VI VIII X X IV VI VIII X X IV VI VIII X X gradually increase frequency and length of their visits to the WWW and in addition to that, the Web is more and more often accessible on the 24/7 basis, at home and at A certain trend has emerged in the course of recent work. three years, concerning the changes in active involvement of Internet users: the highest number of Active involvement of page views and the longest time spend in the Web is Polish Internet users observed in January, then the involvement keeps growing slightly, and it falls down in the second quarter In addition to the increased number of Internet users, of the year, particularly during holidays, reaching the one can also observe that the average time spent in the level of the best months in the previous year. In the autumn, the activeness of an average Internet user keeps growing again, reaching the level from the Active involvement of Polish Internet users beginning of the year, and then it exceeds that level in (2007) December and January, establishing a new, higher Month Average number Average Average benchmark for the coming year. of page views time per user page view per user time January 1871.74 30:57:19 0:01:00 February 1757.33 28:30:18 0:00:58 March 1809.58 29:59:43 0:01:00 April 1743.95 27:59:43 0:00:58 May 1828.08 29:24:49 0:00:58 June 1801.20 29:35:30 0:00:59 Growth of active involvement of Internet users in Poland July 1832.74 30:08:21 0:00:59 August 1914.49 31:04:20 0:00:58 Page views (billion) Source: Megapanel PBI/Gemius Time (million hrs) September 1925.46 32:00:19 0:01:00 October 2184.65 34:19:48 0:00:57 36 600 Novemer 2278.96 36:37:38 0:00:58 December 2395.53 38:11:54 0:00:57 33 550 30 500 Source: Megapanel PBI/Gemius 27 450 Web is being extended. The Megapanel PBI/Gemius 24 400 research shows that every Polish Internet users spent in the web 38 hrs 12 min per month in December 2007, 21 350 which is by 10 hours more than in the previous year. 18 300 Also, the number of page views per Internet user has 15 250 grown considerably, from 1721 in December 2006 to 6 6 6 6 6 6 6 6 6 6 6 6 7 7 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 7 7 7 7 7 7 7 7 7 7 2394 in December 2007. I 2 II 2 III 2 IV 2 V 2 VI 2 II 2 III 2 IX 2 X 2 XI 2 II 2 I 2 II 2 III 2 IV 2 V 2 VI 2 II 2 III 2 IX 2 X 2 XI 2 II 2 V V X V V X Special extra Media & Marketing Polska, September 2008 29
  • Strategic Report by IAB Polska: Internet 2007 Length of experience of Internet users Frequency of using the Internet in Poland Once a week A few times a month More than 5 years Up to 6 months 6 months – 1 year Source: Megapanel PBI/Gemius, December 2007 6.2% 4.8% 7.2% 26.9% 8.9% 19.5% 15.4% 67.1% 44% Source: Megapanel PBI/Gemius, December 2007 A few times a week Everyday or almost everyday Between 2-5 years Between 1-2 years The amount of time spent in the Web increased in men and women alike spend on the Web more than the last months of 2007 much faster than in the same 38 hours, while in December the difference between sex months in the previous years. This is mostly due to the groups was almost 4 hours (men – 30 hrs 15 min and amazing popularity of the Nasza-klasa.pl community women 26.5 hrs). A similar trend was observed with portal. However, it must be noted that some of the time respect to the number of page views: at the end of devoted to surfing was spent by Internet users on 2007, an average man had 2410 page views per month waiting for the next page of the site to load… In spite of (by 30% more than in the previous year) and an average the increased number of page views, the average page woman had almost the same number of page views view time did not fall down and still approximates (2381 per month, by 50% more than in December 1 minute. 2006). The higher number of Internet users and their higher involvement resulted in very fast increase of the number Average time spent in the Web throughout of page views and hours spent in the Web; both figures one month doubled in the course of 1.5 year only. In December 2007, total number of page views in Polish Internet was Month Women Men 33.7 billion and Internet users spent in the Web more December 2005 22:55:49 24:09:20 than 537 million hours. These figures are almost twice December 2006 26:29:41 30:14:43 as high than those noted 18 months earlier, in July December 2007 38:12:20 38:11:28 2006. It does not come as a surprise that the experience of Average number of views per month Internet users keeps growing every year, with more and more persons acquainted with the Web for a number of Month Women Men December 2005 1393.17 1498.60 years. In 2006, the percentage of persons using the December 2006 1585.48 1853.64 Web for more than 2 years was 65%, at present the December 2007 2380.94 2409.86 same figure increased to 71% The percentage of Source: Megapanel PBI/Gemius persons using the Web for more than 5 years grew by 4.5%. In the course of 2007 the differences between men The increased involvement of Internet users in Poland and women in the intensity of involvement in using results also in more frequent visits on the Web. At the Internet became less pronounced. In December 2007 end of 2007, two thirds of users (67.1%) went online 30 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 every day or almost everyday; the figure grew by 5,7% Usage of traditional as compared with 2006. In addition to that, almost one media fifth of users (19.5%) visited the Web a few times per week. In total, more than 85% of Internet users in Internet users are active recipients of all media Poland go online more often than once in a week. messages. The study on the consumption of media The involvement of internet users is affected by age. performed by Gemius as of 2004 revealed that. 71% of The most active groups (as per page views) are persons Internet users browsed WWW pages on the day before between 15-19 and 20-29 years. The least active the study, 63% watched TV and 52% listened to the groups include persons between 7-14 and over 60. radio (based on research performed in November Interestingly enough, in spite of the fact that the 2007). share of persons aged 15-19 in the whole Internet Internet users spend more and more time online, population went down, this group generated a higher which to a certain degree reduces time spent on other percentage of page views at the end of 2007 than in the media. More respondents used WWW than TV, radio or previous year, while the number of the average Internet media on the day before the study. More than 70 user went up by 39% in December 2007 as compared percent browsed WWW pages and used e-mail. These with December 2006. The same figure for Internet users figures have not changed as compared with 2006. between 15-19 years of age went up by 43%. Involvement of Internet users by age groups Usage of traditional media by Internet users – which of the activities listed below have % of Internet users % of page views you performed yesterday? Source: Megapanel 27.6 27.1 30 PBI/Gemius, December 2007 November 2006 November 2007 25.8 23.5 25 71 WWW sites browsing 71 18.8 18.4 18.2 17.8 20 70 E-mail 70 55 15 TV watching 63 11.1 Listening 50 10 to the radio 52 7.4 Using an Internet 42 messenger 39 5 service 2.6 1.7 Reading daily 41 newspapers 39 % 7 14 7-14 4 15 19 15-19 5 9 20 29 20-29 0 30 39 30-39 03 40 59 40-59 05 60+ + Reading 28 a book 29 Reading magazines 23 – weeklies 20 and biweeklies Reading 16 monthlies 13 Talking via chat 14 and discussion Source: Media groups 13 Consumption Study, Gemius, XI 2006 – XI 2007 Watching 4 movies in a theatre 4 % 10 20 30 40 50 60 70 80 Special extra Media & Marketing Polska, September 2008 31
  • Strategic Report by IAB Polska: Internet 2007 63% of respondents watched TV (an increased by 8%), The favourite channel of Internet users is TVN; 75% 52% of them listened to the radio (increase by 2%). The of them reported watching it in the study of November number of persons reading dailies or magazines 2007, which asked about channel watched on the day decreased slightly as compared with 2006. before the poll (an increase by 6% as compared with The study of November 2007 reflects certain previous year). TVN24, the other channel owned by changes in comparison to 2006 in TV channels watched TVN also recorded further increase in popularity, ranking by Internet users. The general trend shows the departure ahead of regional channels of public TV and placing 5th from national channels in favour of theme channels (32% of responses). Among national channels, Polsat (news, sports, films, documentaries, for children). and TVP2 also noted an increase in the number of Irrespective of this, most of channels recorded an spectators. increased interest of Internet users. Percentage of Internet users viewing Radio stations listened to by Internet users TV channels. TV channels watched by Internet users November 2006 November 2007 November 2006 November 2007 40 RMF FM 46 69 34 TVN Radio Zet 75 39 54 23 Polsat Eska 59 30 58 15 TVP1 Program 3 PR 58 13 48 10 TVP2 Złote Przeboje 52 12 25 10 TVN24 Radiostacja 32 8 16 TV4 6 22 Program 1 PR 7 17 TVN Siedem 6 20 Antyradio 6 25 TVP Info 5 17 Radio Wawa 6 6 TVP Polonia 4 6 Tok FM 5 Source: Media Consumption Music 19 Study Gemius, channels 22 5 XI 2006 – XI 2007 Roxy FM 5 17 Film channels 22 % 10 20 30 40 50 Documentary 17 channels 21 Sports 14 channels 16 Children’s 9 Source: Media Consumption channels 10 Study Gemius, XI 2006 – XI 2007 18 Others 22 % 10 20 30 40 50 60 70 80 32 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Dailies read by Internet users Traditional media accessed by the Internet users November 2006 November 2007 November 2006 November 2007 “Gazeta 48 Wyborcza” 46 70 Radio “Rzeczpospolita” 16 70 19 62 “Fakt” 15 Dailies 67 16 Weeklies/ 35 “Dziennik Polska 11 Europa Świat” Biweeklies 37 14 Source: Media Consumption Study Gemius, 17 31 XI 2006 – XI 2007 “Metro” Monthlies 14 30 10 “Super Express” % 10 20 30 40 50 60 70 80 11 8 “Gazeta Prawna” 10 “Przegląd 9 Sportowy” Source: Media Consumption 7 Study Gemius, XI 2006 – XI 2007 “Polska 5 The Times” % 10 20 30 40 50 The most popular radio stations are still RMF FM and national daily the “Polska The Times” attracted 5% of Radio Zet (both national), as 46 and 39% of Internet users. respondents declared listening to them on the day Internet users have more and more opportunities to before the poll. The third place is occupied by Eska use traditional media via Internet, and they use them (30% respondents). All the stations recorded a more frequently. 70% of Internet users listened at least significant increase in the number of Internet users who once to the radio on the Web, 67% read dailies on the prefer them, by 5-7% as compared with 2006. Web, and one-third reads weeklies and monthlies. Preferred dailies of Internet users include the “Gazeta In the group who listened to the radio on the Internet Wyborcza”, the “Rzeczpospolita” and the “Fakt”. The at least once, 40% of respondents do so at least once in following percentage of all Internet users reading press a week. The figure grew by 10% as compared with declared reading these newspapers respectively on the day November 2006. The number of persons who regularly, before the poll: 46%, 19% and 16%. As compared with at least once in a week read dailies on the Web 2006, the popularity of the “Rzeczpospolita” grew by 3% increased even more – by 20% as compared with which placed the daily ahead of the “Metro” which fell November 2006, and reached 57%. Every fourth down by 3% and of the “Fakt“ (gained 1%). The new all- person reading press on the Web does so every day. Special extra Media & Marketing Polska, September 2008 33
  • Strategic Report by IAB Polska: Internet 2007 CHAPTER 3 Internet consumption Internet users spend an increasing amount of time on using the Web for four basic purposes: for the the Web. The figure keeps growing, because the Internet communication, information, entertainment and flexibly adjusts itself to the needs of users and gives business, while the two former factors are dominant them more opportunities; in the result they turn from since the establishment of the Web. passive into active users. We still use the Web for The time spent on the Web differs by the type of information or business, but more and more regularly we space selected by the user. Information sites take less enter the virtual world because we just like it. Visiting time, while cultural and entertainment sites, as well as sites is a pleasure. Naturally, it is also important that the community portals are more time consuming. Reading capacity of links is growing year by year, similarly to the news does not take too much time, when the readers access to broadband channels. The speed of data scans the text and photos and then loads another page. transmission is not the only factor encouraging Internet The sites which offer more interaction and provide a users. The character of Internet is changing, as the Web variety of contents presentation forms (video, audio etc.) provides more and more opportunities; it meets their attract users for a definitely longer time. expectations and provides motivation for action. We are INFORMATION NS IO AT C I U N MM CO T EN NM AI RT TE EN E SS BUSIN 34 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Information Communications Entertainment Business January 2008 January 2007 11:15 12 12 11:15 10 10 8:34 7:26 7:19 8 7:19 7:26 8 6:00 6:02 5:19 5:06 6 6 4:49 4:25 4:49 3:39 4 4 2:50 2:50 2 2 0:50 0:47 0:47 0:09 hrs Onet Google G Nasza- Gadu- G YouTube Fotka.pl e Fotka pl F Allegro Panorama Pa hrs On Onet net Google Google ogl Nasza Nasza- Gadu- Gadu- adu YouTube You uTub uTube WP W Allegro Allegro legr -klasa -Gadu firm -klasa -Gadu Source: Megapanel based on PBI/Gemius Source: Based on Megapanel PBI/Gemius – a comparison of involvement time of site users in January 2007 and 2008 The establishment of contact between the sender and decisive role for the reach of sites and involvement time. the recipient and provoking the users to interact leads to This indicator is engagement, or the measurement of the involvement in the life of the site. The time spent in total immersion of the user in the site. Engagement is the favourite site is the result of the emotional the propelling factor of the Internet and soon all reports involvement. The Megapanel PBI/Gemius study showed will take it into account, similarly to the issue of that Poles spend more and more time on the Web, but experience. the increase in the number of hours does not necessarily Passive absorption of contents, however interesting it is proportionate to the growth of the number of users or is, shall always be second to participation. A site that page views. Some sites recorded in 2007 a decline in the triggers actions and makes the user involved, ties him number of users, while the number of page views and for a long time. It is worth mentioning that both the involvement time of an average user kept increasing. character and quality of time spent online are changing What factors then affect the taste of Internet users? simultaneously with the user’s profile. The market has The analysis of the time consumed for the four basic to meet the requirements of prosumers, or intelligent goals for which people go online proves that the market consumers who devote their precious time and expect leadership falls to sites which combine the highest high quality of service, and their recommendation amount of functionalities which meet various needs of settles standards in the community. Prosumers expect the users. Sites limited only to business or information new challenges, opportunities and chances to get more recorded a decline in the number of users, experience. In the result, they acquire positive simultaneously with the increase in the number of page associations with the brand etc. and their involvement views and slight increase of time spent by one user. On the other hand, sites offering interactive services and Name Users Page views Time per user diversified form of delivering the contents, may count on (K) (million) (hrs:min) considerable involvement of users, the more so if they Google 11,733,2 3108,90 7:26 offer an opportunity to establish contacts with other Onet.pl 9753,9 4059,55 7:19 users. Such sites record both increased involvement Allegro.pl 7335,9 4005,84 4:49 Nasza-klasa.pl 7185,6 6001,90 11:15 time and the number of users, not to mention the Youtube.com 6172,3 639,20 2:56 number of page views. Grupa Gadu-Gadu 4364,2 152,13 0:47 Soon authors of reports and analyses will have to Grupa Fotka.pl 4151,9 2699,86 6:02 take into account another indicator, which will play Source: Megapanel PBI/Gemius by Polskie Badania Internetu Sp. z o.o. and Gemius SA 36 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 translates into the time spent online, and this time – in turn – means money. The era of Web 2.0 brought about new solutions, which effectively retain prosumers online, offering options which are not available in other media. An user which generates strong attachment, turns into the ambassador of a brand or product, or the site itself. His opinion affects decisions made by persons from his immediate surroundings, for instance he sends links to his favourite site, making more persons interested in it. Transfer of information on the Web takes very little time, but its efficiency is just huge. No advertising can increase sales better than good opinion from people having good experience related to a product. People have a natural need to communicate, and for this reason various community sites and messenger services attract their attention strongly and for the longest time. Nasza-klasa.pl, the absolute leader of recent rankings, owes its huge success due to a skilful combination of a few areas of users interest in one site. Due to a merger of elements of communications and entertainment, an average user of the portal spent there in January this year more than 11 hours. “There comes the time of engagement – a measure of quality time spent online. The Web 2.0, environment and the long-lasting interaction with users guarantee increased efficiency and time spent online. Due to the opportunities offered by the Internet, prosumers turn active, find their own fields of activity and new means of self-expression. The whole philosophy of experience is oriented towards them. 20 minutes of a prosumer is more valuable than one hour of a passive observer. Pretty soon, the leading places in site rankings will be determined by engagement” – says Olgierd Cygan, CEO/managing partner of Digital One. Special extra Media & Marketing Polska, September 2008 37
  • Strategic Report by IAB Polska: Internet 2007 CHAPTER 4 WWW sites usage Site ranking by monthly reach Both portals attracted a lower percentage of Internet users at the end of the year as compared with the Item Name Reach Users Site centric beginning of the year; Onet’s decrease of reach was 4% audit and Wirtualna Polska’s – as much as 8%. More than 50 1. Google 80.27% 11,351,367 2. Onet.pl 67.32% 9,520,800 of Internet users visited auction site Allegro.pl (approx 3. Wirtualna Polska 56.01% 7,921,128 yes 7.5 million users per month). Interia, which in 2006 4. Allegro.pl 52.50% 7,424,855 attracted more than half of Internet users, recorded the 5. Interia.pl 49.66% 7,023,144 yes reach of 49% at the end of 2007. O2, another portal, 6. O2.pl 46.42% 6,564,433 yes retained the reach of approximately 46% throughout the 7. Gazeta.pl 41.71% 5,898,077 yes 8. YouTube.com 38.99% 5,513,674 year. The only portal which reported increased reach in 9. Wikipedia.org 38.29% 5,414,824 2007 was Gazeta.pl, with slightly more than 5 million 10. Microsoft 38.25% 5,409,267 users visiting it per month at the beginning of the year 11. Nasza-klasa.pl 36.22% 5,122,562 yes (39% reach) and at the end of the year the number of 12. Grupa Fotka.pl 27.99% 3,958,234 yes users exceeded 6 million which means the reach of 42%. 13. Grupa Gadu-Gadu 26.75% 3,782,541 yes 14. Orange 24.98% 3,533,262 The top ten sites with the highest reach at the end of 15. Grupa IDG 22.98% 3,249,103 yes 2007 included also YouTube, Wikipedia and Microsoft. 16. Grupa YoYo.pl 22.61% 3,197,231 All of them achieved reach of 38-39% in December 17. Mozilla.org 21.57% 3,050,999 2007, but YouTube was gaining users throughout the 18. Pino.pl 21.42% 3,029,570 yes years, while the other two were losing them. 19. TP 18.46% 2,611,184 20. Grupa Medousa.pl 18.46% 2,610,779 In 2007 the leaders of the ranking hardly changed the top six in December 2007 was the same as in Source: Megapanel PBI/Gemius, December 2007 December 2006. Gazeta.pl went up form the 9th place to the 7th, and YouTube – from the 10th to the 8th. YouTube Throughout 2007, the leader of Polish sites with was the leader in gaining users out of the top ten sites, respect to reach indicator was Google, visited every with 12% reach and 2 million of new users throughout month by approximately 80% of Polish Internet users the year. It is the second year in the row for this site to (slightly less in mid year, slightly more at the year end). advance so well; in 2006, when YouTube was In December 2007, this figure was equivalent to more incorporated in Megapanel poll for the first time, its reach than 11.3 million users. Google is followed by two ranking went up from 0 to 25% in but a few months. largest portals: Onet.pl (almost 70% per month, 9.5 In 2006, YouTube was the star of the pages with the million users in December) and Wirtualna Polska highest number of visitor; in 2007, the black horse (slightly less than 60%, 7.9 million users in December). status fell to Nasza-klasa.pl. The site, established in November 2006, was first ranked in Megapanel in December 2006, with reach under 1%. After a The increase of the Nasza-klasa.pl reach Source: Megapanel PBI/Gemius spectacular rise in November and December (2 million new users every month), the site achieved 36% reach at 50 the end of the year, placing slightly under YouTube 45 which climbed to its position after two years of dynamic 40 growth. The ranking of page views is lightly different, 35 with Allegro.pl as a leader with more than 3.5 billion 30 page views per month at the end of the year, followed by 25 Onet.pl, which increased the number of its page views 20 by half (mostly with its game module) and managed to 15 overtake Allegro.pl in October 2007, although for one 10 month only. 5 The 3th place was taken by Nasza-klasa.pl, with the % I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 200 2007 number of page views growing even faster than the 38 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Sites per page views/month Sites with the highest reach in selected countries, December 2007 Item Name Page Average Site centric views time/user audit Country 1st place 2nd place 3rd place 1. Allegro.pl 3,659,302,538 4:15:15 Germany Google Microsoft eBay 2. Onet.pl 3,609,491,880 6:29:31 France Google Microsoft Orange 3. Nasza-klasa.pl 2,969,685,124 7:12:56 yes Great Britain Google Microsoft eBay 4. Google 2,819,457,102 7:37:03 Japan Yahoo! Google Microsoft 5. Grupa Fotka.pl 2,630,139,351 5:59:36 yes Canada Microsoft Google Yahoo! 6. Interia.pl 1,828,031,332 3:34:14 yes U.S. Yahoo! Google Microsoft 7. Wirtualna Polska 1,744,952,321 4:29:55 yes Source: comScore 8. O2.pl 923,708,086 3:45:37 yes 9. Epuls.pl 688,832,407 9:05:10 yes 10. Grono.net 611,865,163 5:39:09 yes Japanese rankings are led by Yahoo!. 3th place are Source: Megapanel PBI/Gemius, December 2007 occupied by international sites such as Yahoo! or eBay. In Poland, the leading position is occupied by an international site Google (just as in other countries) but number of its users, from 11 million in January 2007 to it is follow by local websites – a situation not 3 billion in December. Google fell down to the 4th place encountered in the West. in the ranking, although at the end of the year it recorded the increase of the number of page views of 800 billion, as compared with the beginning of the year. Internet messenger site ranking The 5th place is occupied by another fast growing community site Fotka.pl. 6th and 7th places are occupied Item Name Reach Users Site centric audit by two portals: Interia.pl and Wirtualna Polska, 1. Gadu-Gadu 40.58% 5,738,443 yes respectively. Interia doubled the number of its page 2. Skype 26.98% 3,815,407 views (mostly due to a game service, similarly to 3. Tlen.pl 5.77% 816,324 yes Onet.pl) and went ahead of Wirtualna Polska, which 4. AQQ 0.95% 133,651 yes had the same number of page views in December and in 5. MSN Messenger 0.93% 131,882 6. Spik 0.35% 50,023 yes January 2007. 7. Konnekt 0.18% 25,722 The top 10 is closed by O2.pl, Epuls.pl and 8. ICQ 0.17% 24,058 Grono.net, all with less than 1 billion page views per 9. Flircik 0.16% 22,096 month. However, it is worth noting that Epuls.pl and 10. Xfire 0.15% 21,232 Grono.net do not have a numerous group of users as Source: Megapanel PBI/Gemius, December 2007 compared with other ranking leaders (e.g. Epuls.pl was visited in December by 700 thousand users, which placed its outside the top 100 sites in visitors ranking), The reach of messenger services has not changed but they generate a huge number of page views: throughout 2007, with leading position occupied by Epuls.pl has almost 1000 page views per user, and Gadu-Gadu used by more than 40% users, and slightly Grono.net – more than 550, while the average number reduced reach of Tlen (still 7%); the reach of Skype of page views per one user of web sites is under went up slightly, while the market share of other 250 (only Onet has more than 350 page views per messenger services was hardly significant. user). Similarly to the reach ranking, the leadership in this ranking has not changed considerably as compared with previous year: Allegro.pl and Google went up by one place, Grono.net and Epuls.pl went up as well, while Gazeta.pl and Fotka.pl went down. The ranking of the most popular sites in Poland differs slightly from similar rankings in the West. Ranking leaders in the largest European states and Canada are sites by Google and Microsoft, U.S. and Special extra Media & Marketing Polska, September 2008 39
  • Strategic Report by IAB Polska: Internet 2007 The most popular commercial sites visited by Polish The most popular non-commercial sites Internet users visited by Polish Internet users Item Name Reach Users Site centric Item Name Reach Users Site centric audit audit 1. Microsoft 38.25% 5,409,267 1. AGH 4.84% 683.835 2. Orange 24.98% 3,533,262 2. Pajacyk.pl 3.70% 523,228 yes 3. Mozilla.org 21.57% 3,050,999 3. Uniwersytet Gdański 3.43% 485,616 4. TP 18.46% 2,611,184 4. Uniwersytet 5. Plus GSM 17.00% 2,403,997 Warszawski 3.42% 483,730 6. PTC Era 15.54% 2,197,982 5. Sejm.gov.pl 3.35% 473,480 7. Play 13.04% 1,843,872 6. WOSP .org.pl 3.21% 453,642 8. PKP 11.92% 1,685,490 7. ZUS.gov.pl 3.13% 442,507 9. PKO BP 11.81% 1,669,715 8. NGO.pl 3.05% 431,815 10. ING 9.20% 1,301,638 9. Uniwersytet 11. Bearshare.com 8.91% 1,260,343 M. Kopernika 2.72% 383,989 12. Lotto.pl 8.77% 1,240,098 10. Uniwersytet 13. Adobe.com 8.54% 1,207,799 Jagielloński 2.67% 377,434 14. Winamp.com 7.55% 1,068,352 11. Politechnika 15. MBank 7.20% 1,017,984 Wrocławska 2.18% 308,300 16. Pekao SA 6.77% 957,409 12. Europa.eu 2.08% 294,780 17. Macromedia.com 6.75% 954,774 13. Uniwersytet 18. BZ WBK 6.69% 945,517 A. Mickiewicza 2.03% 286,756 19. Netia 6.68% 944,823 14. Politechnika 20. Skype.com 6.41% 906,755 Warszawska 1.94% 274,880 21. PWN.pl 5.62% 794,630 15. MF.gov.pl 1.94% 273,806 22. Nokia 5.25% 742,002 16. Centralna Komisja 23. TKtelekom.pl 5.07% 717,447 Egzaminacyjna 1.91% 269,562 24. Coke.pl 4.34% 613,919 17. Policja.gov.pl 1.79% 253,659 25. Smileycentral.com 4.19% 592,592 18. Uniwersytet Wrocławski 1.75% 247,823 26. BPH 4.09% 578,837 19. Uniwersytet Śląski 1.70% 240,970 27. Skoda 4.01% 566,969 20. Politechnika Łódzka 1.67% 236,748 28. Inteligo 3.91% 552,953 Source: Megapanel PBI/Gemius. December 2007 29. Open.pl 3.78% 534,627 30. Sekretyhakerow.pl 3.63% 513,238 31. Avon.pl 3.58% 505,807 32. MediaMarkt 3.57% 504,686 The ranking of the number of users of commercial 33. Mozilla-europe.org 3.51% 495,901 sites also showed no considerable changes, with leading 34. Apple.com 3.50% 495,585 35. HP .pl 3.47% 491,396 position still occupied by Microsoft; the top ten still 36. K2.pl 3.46% 489,319 includes sites of telecoms operators, Polish railways and 37. IKEA 3.42% 483,375 PKO BP bank. Mozilla.org went up from the 10th place 38. Samsung 3.35% 474,256 to the 3rd and the site of Play – a new mobile phone 39. Komputronik.pl 3.28% 464,258 operator – joined the group of ten leaders. 40. Bank Millennium 3.25% 459,775 41. Sony Ericsson 3.25% 459,509 Top 10 non-commercial sites include mostly 42. Avast.com 3.03% 428,918 university sites and also the site of Pajacyk charity 43. Norwegian.no 3.01% 425,928 project, Sejm (lower house of the Parliament) and public 44. EA.com 2.98% 420,805 insurance ZUS. 45. Citi Handlowy 2.83% 400,719 46. Libertydirect.pl 2.81% 396,882 47. Java.com 2.79% 395,005 48. ZTM Warszawa 2.77% 392,273 49. Multikino 2.73% 386,059 50. Lukas Bank 2.65% 374,889 Source: Megapanel PBI/Gemius. December 2007 40 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Topical categories: Reach of topical categories Source: Megapanel PBI/Gemius News Business Sports Megapanel PBI/Gemius distinguishes 12 topical categories for classifying web sites, including: 100 • News, features, media 90 • Culture and entertainment 80 • Automotive sector, 70 • Business, finance, law 60 • Construction and real estate 50 • Education 40 • Sports 30 • Lifestyle 20 • Tourism 10 • New technology % • Work I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 2007 • Communities. The highest number of users is attracted by culture and entertainment sites, with more than 90% users Reach of topical categories Source: Megapanel PBI/Gemius visiting them every month. Approximately 80% users Culture and entertainment Lifestyle Communities visit news and community sites, lifestyle sites have reach of 70% and business/finance/law and education 100 sites are visited by approximately 60% users. Sports, 90 automotive and tourism sites attract 40-50% of users, 80 while construction/real estate and work have reach 70 under 30%. 60 50 40 30 20 10 % I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 2007 Reach of topical categories Source: Megapanel PBI/Gemius New technologies Education Automotive Tourism Work Home 100 90 80 70 60 50 40 30 20 10 % I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 2007 Special extra Media & Marketing Polska, September 2008 41
  • Strategic Report by IAB Polska: Internet 2007 Site reach – culture and entertainment category Source: Megapanel PBI/Gemius Culture and Onet.pl WP.pl O2.pl YouTube.com Interia.pl entertainment 50 The category leader is Onet.pl, attracting about 45% 45 users, followed by YouTube, with reach increase 40 throughout the year from 25 to 40%, and by O2, 35 Wirtualna Polska and Interia cultural and entertainment 30 pages. In 2007, the highest increase (in addition to 25 Onet) was reported by Gazeta.pl, where the number of 20 entertainment page users grew more than three times, 15 from 600 thousand to 2 million. 10 The total number of users in the category exceeds 5 13,5 million. % I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 2007 Site reach – communities Source: Megapanel PBI/Gemius Communities Onet.pl Gazeta.pl Fotka.pl Mojageneracja.pl Nasza-klasa.pl The most spectacular event in the last year in this 50 category was the success of Nasza-klasa.pl, which 45 attracted in December almost every second user of 40 community sites. Nasza-klasa.pl attracters also users 35 who have never visited sites of this type, and the reach 30 of the category grew from slightly more than 60% at the 25 beginning of the year to 80 % in December 2007. 20 The other fast developing site was Moja Generacja 15 (formerly Generacja Gadu-Gadu), which after merger 10 with Fora.pl attracted every fourth user of the category 5 at the end of the year. The hitherto leader Onet.pl lost % quite a lot to the new leaders, with its reach falling I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 200 2007 down by 15%. Site reach – news, features, media Source: Megapanel PBI/Gemius News, features, media Onet.pl WP.pl Gazeta.pl Interia.pl Naszemiasto.pl Similarly to the entertainment category, the leading 60 site is Onet.pl, with its information pages visited by 50 50% of category users in the course of the first three quarters of 2007. The 2nd place is occupied by 40 Wirtualna Polska with 35% reach index, followed by Gazeta.pl and Interia.pl. The number of category users 30 decreased at the end of the year from 80 to 77% of all 20 Internet users, and the decrease in the number of users attracted by category leaders was even stronger, with 10 the exception of Interia which went up to the 3rd place in December, overtaking Gazeta.pl. % I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 2007 42 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 New technological Site reach – new technological solutions Source: Megapanel PBI/Gemius solutions IDG.pl Dobreprogramy.pl Wapster.pl Interia.pl Torrenty.pl The new technological solutions category is visited 45 every month by 70-80% of all Internet users. The 40 highest number of users was attracted by sites of IDG, 35 with its reach ranking twice as high as its followers in 30 the ranking. Dobreprogramy.pl remained on the 2nd 25 place almost throughout the whole year; in December it 20 was slightly overtaken by technological sites of Interia. 15 10 5 % I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 2007 Site reach – lifestyle Lifestyle Source: Megapanel PBI/Gemius Onet.pl WP.pl O2.pl Interia.pl Gazeta.pl This category is visited by about 60% of Internet users in Poland. Top 5 Web sites have gained here a 40 considerable advantage over their competitors. In 35 December, the leadership fell to O2, which took over the 30 hitherto leader Onet.pl. It was followed by Wirtualna 25 Polska and Gazeta.pl which increased its reach in the category from about 15% to more than 25%. Interia.pl 20 attracted approximately 20% of category users. 15 10 5 % I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 2007 Site reach – business, finance, law Business, finance, law Source: Megapanel PBI/Gemius Onet.pl WP.pl Bankier.pl Interia.pl Money.pl The category is lead by Onet.pl (30% of reach in the 40 category), followed by Wirtualna Polska and Money.pl (approx 20%), and another specialist site: Interia and 35 Bankier.pl (approx. 15%). Throughout 2007, Money.pl 30 went up from the 5th place to 3rd, ahead of Interia and 25 Bankier. 20 15 10 5 % I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 2007 Special extra Media & Marketing Polska, September 2008 43
  • Strategic Report by IAB Polska: Internet 2007 Site reach – education Source: Megapanel PBI/Gemius Education Wikipedia.pl Onet.pl Sciaga.pl Wikimedia.pl Bryk.pl In the course of the school year, the educational sites 80 are visited by approximately 60% of internet users; the 70 reach rate during holidays falls down to 50%. The unquestionable leader in the category is Wikipedia, with 60 reach ranging from 65% during holidays to 75% during 50 school year (more than 6 million users). It is followed by 40 educational sites of Onet.pl and by Sciaga.pl, visited by 30 2-3 million users. The other sites in the category are hardly ever visited by more than one million users. 20 10 % I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 200 2007 Site reach – sports Source: Megapanel PBI/Gemius Sports Onet.pl WP.pl Interia.pl Gazeta.pl SFD.pl This category is considerably dispersed with leading places occupied by Onet.pl with 55% reach at the 60 beginning of 2007 and 45% at the end of 2007, 50 Wirtualna Polska – 30%, Interia.pl and Gazeta.pl (Sport.pl) – under 20%. The other places in the ranking 40 are occupied by a large number of sites with low number of viewers, which fluctuations determined by 30 sports events. 20 10 % I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 2007 Site reach – automotive Source: Megapanel PBI/Gemius Automotive Otomoto.pl Interia.pl Gratka.pl Onet.pl WP.pl Automotive sites are visited by 45-50% of Internet 45 users in Poland. The category leader is Oto Moto.pl, 40 with its reach exceeding 40% in 2007, followed by automotive sites of Interia (25%) and Onet (20%). 35 30 25 20 15 10 5 % I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 2007 44 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Tourism Site reach – tourism Source: Megapanel PBI/Gemius Onet.pl Szukacz.pl-mapa.szukacz.pl Rozklady.com.pl Eholiday.pl Maps.google.com The reach of this category changes considerably throughout the year: during holidays it exceeds 50% 40 and in winter it falls down to 40%. The most popular 35 sites are the tourist pages of Onet.pl, visited by 30 approximately 35% of Internet users in the category. The 2nd place fell to Mapa.szukacz.pl, which lost a large 25 number of users in the second half of the year. The other 20 sites hardly ever exceed 10% of reach within the 15 category. 10 5 % I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 2007 Site reach – work Source: Megapanel PBI/Gemius Work Pracuj.pl Gazeta.pl Infopraca.pl WP.pl Jobpilot.pl The category is lead by Pracuj.pl with its reach 45 ranging between 35 and 40%. The second place is 40 occupied by Gazeta.pl, visited by almost 40% of users 35 in the second half of the year (the site was the category leader at that time), but its reach fell down to 30% at 30 the year end. Lower places in the ranking are occupied 25 by Wirtualna Polska and many sites specialised in 20 recruitment advertisements. 15 10 5 % I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 2007 Construction Site reach – construction, real estate Source: Megapanel PBI/Gemius and real estate Gazeta.pl Murator.pl Gratka.pl Otodom.pl Trader.pl The category is visited by the lowest number of 35 Internet users (approx. 25%). Its leader is Gazeta.pl with approximately 25% share. 15-20% of reach was 30 gained by Murator site and approximately 15% by 25 Gratka.pl. Subsequent places are occupied by 20 advertising sites Oto Dom and Trader. 15 10 5 % I 2007 II 2007 III 2007 IV 2007 V 2007 VI 2007 VII 2007 VIII 2007 IX 2007 X 2007 XI 2007 XII 2007 Special extra Media & Marketing Polska, September 2008 45
  • Strategic Report by IAB Polska: Internet 2007 CHAPTER 5 Advertising online This year for the first time ever we IAB AdEx 20071, a study on the have an opportunity to discuss expenditure on advertising online, individually all segments of online developed in partnership with advertising as separate areas, due PricewaterhouseCoopers Polska to the fact that in the course of Sp. z o.o. (PwC Polska). The results last year, we managed to invite to of the AdEx study in Poland will be work in partnership with IAB Polska include in the results of a study a number of companies covering the whole Europe and representing all these segments performed by IAB Europe and and possessing expert knowledge in PricewaterhouseCoopers2. these areas, and also to launching 46 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Expenditure on online advertising Total net value of Polish online advertising market for 12.5 billion EUR with the average increase year by last year reached PLN 742.8 million and consists year of 38% in individual European countries. Main practically of all forms of promotion available online factors contributing to the increased expenditure including display advertising, e-mail marketing, search include, according to IAB Europe, the dynamical engine marketing (SEM), advertisements and yellow development of broadband access and growing pages. confidence of advertisers in the Internet. The world’s largest online advertising market are the United states, with last year’s expenditure estimated for 21.1 billion Expenditure on online advertisig USD, with a 25% increase6. The world’s leaders with respect to the share of the Internet in advertising Display SEM expenditure on media are four European countries in which the share exceeded 15%: Denmark, Norway, Sweden and Great Britain. Globally7, the expenditure on 19.7% Internet advertising in 2007 made up. 8.1% of all expenditure on media. This year, the figure should reach 9.4%, exceeding expenditure on radio advertising. In 42.4% 21.3% 2010, the Internet will attract 11.5% of all advertising expenditure. 6.0% 10.7% Share of individual sectors in expenditure on online advertising Others E-mail marketing Classifieds Financial Automotive FMCG Other Source: Estimates by IAB Polska based on AdEx 2007, IAB Polska PwC Polska3 services consumer goods 8% 6.9% 5% 11.3% 5.8% In the previous years, the value of the online advertising market estimated by IAB Polska embraced in fact only display advertising, so it should not be 13.7% surprised that this year’s value considerably exceeds market estimates for 2007 presented in the annual 35% report 2006. It is also worth noticing that previous years 14.3% estimates cannot be directly compared with the results of IAB AdEx for 2007, due to different methodologies used in both studies. From the sector perspective, entertainment and media, telecoms, financial services and automotive Telecommunications Entertainment Other Retail and media sector have the highest share in expenditure. European5 expenditure on advertising online last year are estimated Source: Estimates by IAB Polska based on AdEx 2007, IAB Polska PwC Polska4 48 Special extra Media & Marketing Polska, September 2008
  • Display advertising Display advertising continues to be the largest and reconfirmed by results of a study performed in the U.S.9 most important element of the total online advertising (9) which proved that 50% of all clicks on advertising market in Poland. online is performed by a group of 6% of Internet users with a very characteristic demographic profile (persons 2007 – The Year of within 25-44 age bracket and household income below Creation USD 40K per year, that is considerably below average U.S. income). The study showed also that there is no In addition to the continuing growth of the expenditure relation between clicking on an ad and the classical on display advertising, 2007 was marked by another indicators for measuring branding efficiency of the positive trend: more and more attention was paid to the campaign. quality of advertising creatives for online campaigns. It is worth noting that IAB strives for developing good Agencies more and more often make use of state-of-the- practice in advertising creation. art technology, particularly in multimedia and interactive IAB tries to take into account the good of all interested solutions. A departure has been noted from more and parties, that is advertisers represented by interactive more intruding forms such as top layer, brand mark and agencies, and also consumers using Internet media. In the pop up which are relatively effective with high CTR result, it is developing standards focused on giving the indicator, but are disliked by Internet users, as they users the highest possible control over the advertising interfere with using WWW sites. message. For instance, it recommends that the default More and more attention is paid to the creativity, setting for sound in advertising should be off (with the which should attract attention of users and encourage to exception of video advertising set in multimedia further interaction. This trend is reflected in the fact that environment) and that the aggressive forms displayed over the share of in-page advertising makes up 64.3% of total the contents should have a clearly noticeable closing expenditure on display advertising and confirms that button in a predefined location (upper right corner) so that Polish market is maturing and moves close to best the user had no doubts about how to close the ad at his developed market, such as the British one, where the discretion. share of in-page forms exceeds 86%. It is also and indirect proof of the facts that Polish marketers began to Behavioural targeting notice worldwide standards established some time ago, namely the fact that CTR in image campaigns is not Behavioural targeting is another important trend in sufficient to confirm success of the campaign. It was also the display segment. The topic had been discussed for a long time, but it has started to develop for 2-3 recent years, confirming its efficiency in marketing. The progress in this area has been huge, particularly in the Share of various forms of display advertising area of technological and analytical advancement of commercial solutions for behavioural targeting. In-page formats Sponsorship of sites In the result, behavioural targeting is at present an approach more complex than a simple method of displaying advertisements to persons who recently 15.2% visited sites from a given topical group. Advanced algorithms analysing consumer paths on the Web can on one hand identify group behaviours basing on a 21.6% variety of criteria and automatically segment consumers 63.2% and develop behavioural profiles of site groups for which the traffic is measured, and on the other can develop ad hoc analyses and profiles which are best adjusted to individual requirements of advertisers and campaign guidelines. In addition to that, modern systems combine behavioural and demographical data, which further enhances segmentation and precise Over-the-page formats profile description, enabling to envisage consumer behaviour in compliance with such profiles. In the Source: Estimates by IAB Polska based on AdEx 2007 study made by IAB Polska and PwC Polska result, advertisers gain access to increasingly efficient Special extra Media & Marketing Polska, September 2008 49
  • Strategic Report by IAB Polska: Internet 2007 opportunities to access the target group of their that advertisers will begin to test the related dreams, which results in higher campaign efficiency. opportunities more intensely. The approach is beneficial for both sides, as Internet The strong presence of behavioural targeting in publishers achieve better return on advertising space. 2007 was confirmed by first attempts by IAB to According to eMarketer, the U.S. advertisers spent last determine good practice in this area. The basic year 575 million USD on campaigns using behavioural guideline in brief is the transparency and openness of targeting, which constitutes 2.6% of all expenditure on criteria for which users are classified into segments online advertising. This year, the expenditure is provided by editors. The criteria embrace three groups expected to reach the level of USD 1 billion (3.4% of of information: the type of viewed contents, the total expenditure). Behavioural targeting is present on intensity of viewing and the time of collecting data for the Polish market as well, but the publishers have not analysis. In the result, advertisers can learn about yet used the most recent technological solutions. profiles offered by editors and can compare the quality Therefore one may expect that the package of services of profiles developed by editors prior to purchase. in this area will increase considerably this year and Video and multimedia Formats and non-advertising video contents (so-called pre-roll in- prospects for stream) and broadcasting them directly on WWW pages development within traditional online advertising forms (video ad). In- stream ads can be clickable or not; in the latter case, some editors offer an additional option of combining the Video advertising has appeared relatively recently on video message with standard clickable forms of the Web. Initially, the advertising sector assumed that advertising displayed on the site. The IAB standard for this form will be used for direct transferring of TV spots video ads says that spots should not exceed 30 second into the Web. However, it proved relatively soon that the (although the final decision is at the discretion of the consumption of Internet, and particularly the manner of editors, depending on the contents within which the ads using video on the Web, is different than the are displayed), and the default sound setting for video consumption of TV; in the result, the advertisers began ads should be off. Some editors offer also video ads with to seek alternative manners of conveying the message to film show turned on by the user, and not automatically the Internet users, different from the traditional after loading the www page. 30 second TV spot. The search focuses on a few aspects: the spot Expenditure on video duration (according to a number of studies, the Internet advertising requires 15 second spots10), the manner of displaying spots on WWW sites and on the extent of efficiency of Video advertising is one of the fastest developing TV creations on the Internet, testing whether the branches of Internet advertising worldwide. advertisers should make special versions of their spots According to eMarketer, last year’s expenditure on for the Web. Attempts are also made to set video ads in video advertising in the U.S. constituted 3.6% of total the environment of multimedia available on the Web, expenditure on advertising online; this figure the figure is without using video as the direct carrier of advertising to increase to 4.7% and in 2011 – to 9.8%. message. Examples of such advertisements are various graphic forms displayed around the video player or over Video advertising and it. The development of the best practices concerning access to the Internet video advertising will probably take some time. At presents, two models of video advertising have The development of this marketing channel is dominated the market: displaying them before neutral, naturally combined with the access to broadband 50 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Internet. Although the dial up access, most popular but a few years ago, is practically non-existent now, Poland is still far behind the European average with respect to broadband, not to mention the best developed countries. According to the recent report of the European Commission, the penetration of broadband Internet in January 2008 in Poland was 8.4% while the EU average is 20% and the best countries have exceeded the level of 35%. This means that only one-fourth of Polish Internet users have Internet connections accepted worldwide as broadband, allowing for free use of voice and video services. This constitutes an barrier for the development of the segment, although the situation is quickly improving, mostly due to vigorous actions by the Office of Electronic Communications and gradually increasing market freedom in this respect. One can therefore expect that Poland, in spite of its infrastructural delays in video advertising, will quickly follow the most advanced countries. Special extra Media & Marketing Polska, September 2008 51
  • Strategic Report by IAB Polska: Internet 2007 Search engines and context In recent years, the extremely fast process of million. Polish market will probably follow the Western digitalisation of all contents is accompanied by very fast European trend where search engine marketing drives development of search technologies and their business the development of Internet advertising. This trend is applications. All market studies presented herein well confirmed by a comparison of advertising confirm the importance of search engines as an efficient expenditure on Polish and British market. In Poland, the tool for delivering information to target groups that are of share of search engine marketing expenditure amounts highest interest for marketers. at present to 19.7% of expenditure on online11 This process is affected by the phenomenon of advertising, while in the Great Britain, the European transferring high quality contents to the Web, as leader in this area, the same figure amounts to 57.1%. mentioned earlier, and making these contents available, The expenditure on search engine advertising in the U.S. very fast popularisation of the Web among users and in 2007 amounted to 4.5 billion USD, and expenditure business persons and the growing effectiveness of search tools available on the Web. Two main purposes for using search engines are Measured efficiency indicators of SEM campaigns research and purchases. While seeking general information, consumers usually use natural search All Advertisers Agencies results. If they seek information on particular products, most of them browse through sponsored search results, Traffic level 73% 71% 74% Conversion rate 71% 62% 70% and 44% of users click them and get acquainted with CTR 68% 65% 70% the product range. According to a study by Kelsey Group ROI 62% 53% 67% and comScore, local queries are enjoying high popularity Cost per click 61% 60% 61% (such as real estate Warsaw, dentist Poznań) which Cost per action 58% 48% 65% make up approximately 20% of all queries. 70% of Total sales 49% 38% 56% Total income growth 47% 41% 51% consumers declare using Internet when purchasing Return on Adex 43% 37% 47% products or services on local markets, and more than Link ranking in SE 34% 31% 37% half (54%) use it instead of popular yellow pages to find Satisfaction of superiors 37% 39% 36% any services of interest. In addition to that, 33% of Cost of sales online 28% 19% 33% persons using search engines locally want to make a Effect on brand 21% 16% 25% purchase immediately and declare that they would Source: The State of Search Engine Marketing 2006, SEMPO, January 2007 prefer to contact the company by phone. For this reason, an increasing number of small and medium companies operating on local market use promotion tools in search Goals of SEM campaigns engines. All Advertisers Advertisers Trends on the search under 500 over 500 engine and contextual employees employees Direct sales of products network advertising or services 58% 59% 56% market Brand awareness increase 57% 55% 62% Generation of actions The increasing number of Internet users and queries leveraging sales via other resulted in growing interest of advertisers in promotion distribution channels 47% 46% 52% Traffic increase 42% 42% 40% in search engines, which translates in turn into Generating actions for partners, increased advertising expenditure on search engine leveraging their sales 20% 21% 19% marketing and contextual network marketing. IAB Polska Providing information basing on the AdEx 2007 IAB Polska and PwC Polska or educational contens 13% 12% 15% study estimates that expenditure on search engine Others 3% 3% 0% marketing in Poland in 2007 amounted to PLN 146.3 Source: The State of Search Engine Marketing 2006, SEMPO, January 2007 52 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Competition nad officiency tracking are basic problems high demand for professional SEM services, although of advertisers using Search Marketing techniques they initially neglected this segment. Now they Increased competitive appointed their own SEM offices 48 advantage in rankings Another important element was the departure from Efficiency tracking 42 the CPM settlement model; practically all Polish search engines began to use in 2007 the CPC settlement. Selection of right key words 38 Increase of prices on high demand key words 31 SEM – global tendencies Click fraud 24 Reduction of ROI 21 PAs confirmed by the above examples, the Polish SEM and contextual network advertising market follows SEM management in various Source: Jupiter Research/SEMPO countries/languages 19 trends typical for mature foreign market, it is worth SEM management in various presenting the changes in SEM perception and approach search engines 18 to it among marketers from the U.S. and Western % 10 20 30 40 50 Europe. The most recent research on the SEM market in on contextual network marketing – 838 million USD. France, Spain and Italy (where the market development Forrester Research estimates, that by the year 2012, processes are similar to Poland) performed by Jupiter the expenditure on search engine advertising will Research in 2007 and ordered by SEMPO presents the double, and expenditure on contextual network most typical challenges encountered by advertisers in advertising will increase more than fivefold. these countries. The most frequent problems include The contextual networks also developed intensely in increasing competition in climbing to top search result 2007. Display and video forms introduced in 2006 in position, the measurement of campaign results, contextual advertising networks kept gaining popularity selecting right keywords, growing prices per click and throughout the year. Polish contextual networks staked click frauds. on attracting valuable sites, combining textual and Two-thirds of SEMPO respondents were affected by display advertising, partner certification programmes click prices increase. Three out of four advertisers can and numerous enhancements and new functionalities in afford the increasing expenditure, but one fourth API interfaces for advertisers. They also developed new assessed that they would not be able to pay higher contextual networks connected with advertising sites prices per click. and networks. More than 50% of respondents used the following Reacting to the intense development of local search campaign efficiency indicators: market, Polish search engines introduced telephone Traffic on page, conversion, CTR, ROI, cost per click links in their products. Telephone links are displayed in and cost per action. Less than half of respondents still search engines similarly to standard sponsored links, but measured the value of sales online, total revenue it is provided with a special telephone number to reach growth, return on AdEx, link positioning in SE, project the company of interest to the user. The service is leader satisfaction, cost of online sales generation and settled by pay per call, which means that the advertiser effect on brand awareness. According to the SEMPO pays only for the direct effect resulting in a telephone research, the key goals of marketers are increased contact made by a potential customer. Telephone links products sales and development of strong brand (the are also available for mobile phones of the users who latter mostly among large companies over 500 browse through results of mobile versions of search employees). Larger companies most often point to engines and localisators increasing their sales via resellers, are more frequently The professional provision of SEM services became focus at information and education actions (15%). an important phenomenon on the Polish market in E-mail marketing is a direct marketing form using e- 2007. The existing agencies confirmed their renown by -mail as the communications tool, and embracing obtaining prestigious certificates or joining professional analyses, planning, implementation andmonitoring of associations of SEM or Web involved companies such as the following processes: establishment and development SEMPO or IAB. Media houses also responded to the of e-mail address database, database management, 54 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 E-mail marketing contents development and e-mail message creation, e- E-mailing is also the best known advertising method mail despatching, feedback management and among consumer. Its popularity translates into the development of communications pattern for e-mailing. increasing awareness on using e-mails in marketing Basic tasks of e-mail marketing include the development communications, both among marketers and interactive of consumer loyalty, establishment of relations with agencies or editors. The companies create new posts customers, development of desirable solely for managing e-mail marketing, and the market corporate/organisation image and sales. The most already has agencies specialised in such activities. popular e-mail marketing tools include advertisements in Newsletter communications using the concept of e-mail messages, company newsletters, internal permission marketing is also increasing in importance. bulletins and e-dailies. E-mail marketing refers to the This approachrequires the consent of addresses for permission marketing concept, under with the recipient receiving promotion messages, by entrusting their of a marketing message should agree to receive it; identification e-mail address. Such requirement is also otherwise, e-mail marketing turns in to spam. stipulated by the Law on performing electronic services. 2007 was the year of advertising e-mail development Marketers establish and develop address databases, (e-mail marketing is sent by owners of databases such as paying increasing attention to their professional usage. portals and vortalsupon order of third parties) and of This is also related to the increasing pressure on development of own mailing list by marketers, to be used strengthening customer loyalty, by delivering regular for establishing permanent contact with various groups of messages by e-mail, among other methods. The dynamic recipients and for newsletter communications. At the development of e-mail marketing and newsletter same time, one observed increased use of e-mail as a communications in particular results from its efficiency, communication tool supporting various operating which is in turn due to the fact that customers receive processes in companies (such as confirmation of online ordered informationwhichis adjusted to their interests. For purchases, recruitment, request and registration forms, this reason, average efficiency indicators measured by reminders and alerts). direct activities of recipientsremain in this segment on a IAB Polska estimates12 that the value of Polish relatively high level. email marketing in 2007 amounted to 44.3 million 89% of companies using e-mail marketing are of the PLN, including editors revenue from despatching opinion that this method brings measurable benefits to advertising e-mails upon order, and revenue of their companies (15), such as the increased interaction interactive agencies from managing newsletter with customers, increased number of visits on the site communications for customers and selling e-mail and reduced costs of communications. Probably for these marketing tools. reasons, 64% of marketers declared increased The negative aspect of the popularity of e-mail is involvement in this form of communications in the future. spamming its users with unwanted commercial information. In its report of January 2007, Symantec E-mailing despatches said that spam constitutes 69% of all e-mails sent sent by publishers on the Web. Naturally, users receive a much smaller online amount of such information, due to the increasing efficiency of anti-spam filters. Addresses seem to have IAB Polska and Gemius performed specially for this report gotten used toremoving unwanted mail, which does not a study on the efficiency of e-mailing campaigns performed limit their interest in using e-mail services. by large Polish portals and vortals on the order of third parties in 2007. The results contributed to our knowledge of E-mail incorporate the potential of e-mail marketing services in Poland in four marketing basic dimensions: the size of address databases, sectors communications ordering the largest campaigns of this type, average amount of advertising e-mails sent to users and average efficiency E-mail marketing is themost commonly used indicators of such campaigns. interactive marketing form in Polish companies. 80% of E-mail databases to be used for such campaigns by the marketers declare that they use various forms of e- largest publishers participating in the project exceed -mailing in various promotional actions13 and almost 4 million addresses. Other participants reported having half of them send out newsletters14. databases which do not exceed 1 million addresses. 56 dodatek do „Media & Marketing Polska” September 2008 Polska”,
  • Strategic Report by IAB Polska: Internet 2007 The sectors which most frequently ordered campaigns in 2007 included telecommunications, finances and insurance, Prospects for the as well as automotive industry; the leastnumber of campaign future orders came from companies from the textile industry, sports betting, media, industry and On the markets of Western Europe and the USA, the e- entertainment/culture/education. The number of advertising -mail is one of the most important media used for corporate e-mails sent in 2007 to a single user by editors with marketing communications. In addition to expenditure on theirown address databases ranged between 2 and 31 own www sites and SEM, it consumes the largest part of (average 10.4), while the CTR indicator for e-mailing interactive marketing budgets. In 2007, the budget share in campaigns ranged between 4 and 35%. The return on e- Great Britain amounted to 19%. While the value of the -mailing campaigns ranged between 0% (for mailings only to whole Western European e-mail marketing market is verified accounts from own address database) to 35%. estimated for 160 million EUR16. Marketers using e-mail encounter now considerable challenges. We estimate that the leading ones includeensuring failure-freedeliveries to users (bypassing Average indicators of e-mailing campaign anti-spam filters) andreliable display of e-mails in HTML efficiency, % format in various types of e-mailsoftware), as well as the integration of e-mail marketing systems with database tools Advertising e-mailing Newsletter (%) (%) used simultaneously by companies. CTR 11.7 16.2 Openings 25.6 26.8 Returns 10.0 7.5 Surce: Gemius, SARE 2008 Special extra Media & Marketing Polska, September 2008 57
  • Strategic Report by IAB Polska: Internet 2007 Classifieds IAB Polska estimates17 that the revenue of internet On the other hand, the specialised topical classifieds classifieds sites and yellow pages amounted in 2007 to sites or the so-called vertical sites, are great money PLN 158.5 million, mostly generated by professional earners. They operate in three leading sectors: work, real advertisers, in particular by SMEs. The remaining part is estate and car industry. generated by private users. The basic product in the sector is an advertisement, Work usually in the form of an announcement indicating the readiness to perform an activity (concluding a sales/purchase Recruitment sites are the best profit-generating group transaction, establishing partnership, performing an in the classifieds business. The act as an agency between exchange, opening recruitment etc.) and providing contact work candidates and potential employers. The candidates details of the advertiser. In contrast to auction sites, the are usually not charges for using the site, and all the advertising sited do not participate in transactions between profit is generated by employers and recruitment buyers and sellers and no not collect any fees. Their task is companies. just to establish contact between the parties by displaying contact details of one of them. The advertising party and the Real estate buyer contact each other directly, and the advertisement site charges only for placing the ad. The key customers of such sites are individuals Actually, the classifieds sites earnmoney not only by intending to sell or rent real estate and real estate placing the ads but also by offering a considerable agencies, together with primary market developers. number of products and services. Ads can be singled out for additional charge, packages of services are sold, and Car industry regular customers can buy subscriptions and other supplementary services related to their sector (such as Automotiveclassifieds sites offer their services to professional recruitment services). A large part of revenue individuals, commission sales agencies and dealers of new is generated also from selling display advertisements. cars. An interesting eventlast year was the attempt to However, a group of advertising sites does not charge launch the first Polish aggregator of car advertisement, for their services. Most of them are multi-topical sites intended to work as the search engine for all car sites. Such which attempt to combine advertising with social model was successfully implemented in other countries, by services, similarly to U.S. Craigslist. Basic characteristics no means limited to car industry, but encompassing also of advertising-community sites include regionalisation real estate and work. The condition for success of such (advertisements are grouped by large cities), very simple project is the consent of advertising site for indexing their form and the presence of a discussion forum. content. It is difficult to obtain it, becausesites treat The development of social classifieds sites is definitely aggregators as potential dangerous competitors. For this worthobserving. The model has considerable potential, as reason it seems that such projects do not have great it has been illustrated by the immense popularity of chances for success on the Polish market. Craigslist. The only problem is the uncertain business An analysis of activities and habits of Internet users model, or rather the lack of it. suggests that the Web is not only the source of 58 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Advertising in games information, a bottomless treasury of knowledge and faster than the game market itself. It is to grow almost a medium for communicating with people who are twofold in the coming three years, and every second thousands of kilometres away. In recent years, the Web dollar spent on advertising in games willgo to the U.S. became a great virtual playground, and by no means market. only for children; this stereotype has been abandoned This comes as no surprise, because the largest a long time ago. The most numerous group of Internet manufacturers of computer games are based in The users are adults who first surfed on the Web in the U.S.A., and American budgets for the newest 1990’s. If at that time they were teenagers, then now multimedia productions often match those made up in they belong to the generation of 20 and 30 years old Hollywood. However, Europe follows the example of the persons. They not only spend long hours writing U.S.A., turning games into a separate category of online presentations, reports, tables, sending e-mails and communications. Although it is estimated that the searching for information, but also use their PCs for number of game-playing Poles may even amount to 4,5 entertainment. This is an ideal moment for playing million persons (source: Gry-online.pl), the awareness of games. this fact among marketers is relatively low, with the The Internet turned into a fully interactive medium exception of child brand managers. No wonder: 70% of oriented towards direct contact and interaction with the children use the Internet, mostly for playing games18. user. The trend affects also the product presentation The interest in such entertainment is almost the same methodsused on the Web. Marketers noticed the potential among boys and girls in the age bracket of 7-14 years. resulting from shifting the emphasis in Internet Girls spend more time on game sites than boys (4 h 50 communications from push to pull and with increasing min – 4 h 34 min respectively). Polish game portals are frequency they decide to create mechanisms that let the developing very fast, and the quality of games is more users decide whether they want to play with the brand or and more frequently as good as that ofgames by foreign product before they buy, and even show them the games to competition. play with it. This purpose is achieved with two marketing Adults from the age group of 20-34 years are also tools, that is in-game advertising, that is placement of ads playing games (more than 30% of respondents), men in exiting games online, for PC or console, or advergames, and woe almost alike (56 and 44% respectively)19. It is that is the development of PC games for brands or products worth noting that this group is not only limited to IT and placing them on the Web. specialists, programmers and graphic artists whose The market of computer games has long ago ceased workrequires spending many hours in front of the to be small or niche. It is estimated that its global value computer screen. Games online are played by on the turn of 2007 and 2008 exceeded 35 billion individuals who do it for pleasure, often with friends or USD, and will increase up to almost 50 billion in three family members. They are better educated thanaverage years’ time. These values describe the whole market, Poles, they earn more, are fond of experimenting, are including production, promotion, distribution etc. The not afraid of new things and gladly buy thingssuggested value of advertising in games in 2007 alone exceeded by advertisements. They spend an increasing amount of one billion USD. Games are slowly turning into a new time on the Web, which involves time for entertainment medium used by marketers for product promotion. online. The largest group online game players are A comparison of statistics concerning expenditure on persons whospend time on Web entertainment every advertising in games shows that it will grow relatively day. 85% of respondents enjoy online entertainment at Special extra Media & Marketing Polska, September 2008 59
  • Strategic Report by IAB Polska: Internet 2007 least once a week20. This result is particularly important sophisticated form of online advertising, in which the while designing competitions or games with some or recipient decides about the length and manner of his several steps or stages. contact with the brand. This unique experience of the The number of persons sending links to their brand is the point here. Such contact is much longer favourite games to friends is also increasing, and last than standard advertisingand effects are relatively easy year it grew by 10%. This figure confirms the fact that to measure, for instance by statistics of a special games online functioning mostly due to purposewww site where the game is placed. recommendations among friends, are a perfect medium Since the beginning of internet advertising, its basic for viral marketing. Games sent out by users allow to distribution channels were advertising portals and maximise interest in advertising. The power of this tool networks. Observation of the development of Polish is the trustworthiness of messages received from Internet in recent months showsnew trends which lead acquaintances whom we believe. Research shows also to establishing additional channels for the distribution of that only 6% of Internet users refuse to open links advertising. received from friends. The most important thing for a marketer is the fact that a game online, whether promoting toothpaste, spirits or new exclusive car models, is just a Expenditure on in-game advertising worldwide, 2006-2001 2011 1.938 2010 1.855 2009 1.658 2008 1.330 2007 1.003 2006 0.692 References: billion USD 0.5 1.0 1.5 2.0 1 IAB AdEx 2007 study involved 25 leading companies representing Source: eMarketer.com, April 2007 online advertising market in Poland. The process of collecting, aggregating and analysing data was performed by PwC Polska, but data presented in the report were not subjected to any form of audit performed by PwC Polska. 2These result shall be officially presented in June at IAB Europe Interact 2008 Congress. 3The share of individual segments of online advertising were estimated Expenditure on in-game advertising in the U.S.A, 2006-2001 by IAB Polska basing on declared revenue provided for PwC Polska by key representatives of Polish online market. 4The share of individual sectors in online advertising expenditure were 2011 969 estimated by IAB Polska basing on declared revenue provided for PwC Polska by key representatives of Polish online market. 5 The research on advertising expenditure PwC/IAB Europe encompasses 2010 928 15 countries: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Holland, Spain, Slovenia, the United Kingdom, Norway, 2009 829 Turkey and Poland. 6 Data: PwC/IAB US. 2008 665 7 Data: ZenithOptimedia. 8The share of individual forms of display advertising were estimated by 2007 502 IAB Polska basing on declared revenue provided for PwC Polska by key representatives of Polish online market. 9Natural born clickersstudy performed by Starcommedia house, 2006 346 comScoreand Tacoda. 10E.g. Frames of Reference: Online Video Advertising, Content and billion USD 200 400 600 800 1000 Consumer Behaviour study, June 2007, Online Publishers Association. 11Based on AdEx 2007 IAB Polska and PwC Polska. Source: eMarketer.com, April 2007 12Estimate by IAB Polska based on IAB AdEx 2007 by IAB Polska and PwC Polska. 14Data: SARE E-mail use study, September 2007. 15Data: SARE E-mail use study, September 2007. 16Data IAB Europe/PwC. 17Estimate by IAB Polska based onAdEx 2007 study by IAB Polska and PwC Polska. 18Study by Gemius SA, June 2007. 19Data Millward Brown SMG/KRC TGI/NetTrack. 20Study performed on the turn of 2007/2008 by Ostryga e-ntertainment. 60 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 New models of advertisement distribution Topical networks Do you send links to games to your friends? No One of the new distribution channels are the relatively new topical networks. Their existence is the logical consequence of the increasing popularity of specialised sites with sufficiently high reach to be of interest for advertisers. 38% This phenomenon is a proof that Polish Internet reached a mature stage, with increasingly demanding consumers who seek specialised knowledge and use Internet as an indispensable work tool. For the time being, topical networks 62% in Poland include real estate and business. Their restricted operations allows for precise development of offers for customers from the above sectors. Narrow specialisation allows to access more demanding target groups with more Yes detailed offers. Source: Ostryga e-entertainment 2008 Individual Internet sites with own advertising How often do you play computer games? sales Once a week A few times per month A few times a year Another distribution channel are individual Internet sites which opened their own advertising sales and resigned from their network membership. These sites offer a variety of 5% advertising products which are precisely matched with the 10% area of their operations, being much more precise than 8% 42% individual sections of large portals or topical networks. This interesting phenomenon is a proof of the advanced development stage of Polish Internet. 17% Topical sites diversifying 18% the contents of main portals The last of the new channels are Internet sites of main portals operating under independent brands. In the result of 2-3 times a week 4-6 times a week Everyday their contents diversification and strong promotion, some of Source: Ostryga e-entertainment 2008 their brands have become quite well known and have exceeded the structures of their parent portal, creating extra advertising space. This trend allows portals to diversify their offered by the model and also to the appearance of foreign user profile etc. companies on the Polish market. 2007 was also a year in which the customers awareness increased with respect to Ad settlement models their presence on the SEM and SEO (Search Engine Optimisation) market; this resulted in the increased number In recent months, advertisement distribution has changed of companies offering comprehensive servicesin this respect. not only with respect to the place of ad displaying, but also to An analysis of the above new trends shows that all of settlement methods. Campaigns based on efficiency sales them head towards solutions which are more and more models, such as CPC (cost-per-click), CPA (cost-per-action) efficient in using Internet for marketing actions. This goes and CPL (cost-per-lead) have developed intensely, due to the hand in hand with the worldwide marketing trend towards establishment of new companies specialised in the seeking new, more involving and more effective channels for management of such campaigns, to high sales efficiency delivering advertising message to customers. Special extra Media & Marketing Polska, September 2008 61
  • Strategic Report by IAB Polska: Internet 2007 CHAPTER 6 E-commerce market 18% of Poles have at least once in their life made The value of Polish e-commerce market a purchase on the Web, says a report made by Cetelem. This rate is still quite low as compared with Germany, E-stores Internet auctions Great Britain or France, but one should consider the fact 4600 5000 that access to Internet is in Poland also much lower than in the leading countries. 3470 4000 3000 Rate of persons buying on the Web as compared to total population of a country 3000 2000 Denmark 1800 62 Great Britain 57 2000 1300 Belgium 51 980 921 France 48 1000 410 328 Italy 180 152 27 60 48 Czech Republic 24 mln PLN 2001 2002 2003 2004 2005 2006 2007 Poland 18 Source: eCard, Allegro.pl, IAB Polska, Sklepy24.pl, InternetStandard Slovakia 18 Spain 16 2007 showed that 45% of Internet users shopped Hungary 12 through Internet, which is equivalent to 5,8 million Sweden 7 persons. This group increase by 2,5 million customers Portugal 6 as compared with 2006. Research of the e-commerce Russia market performed by Gemius also confirms the fast 4 All increase of Internet users who shopped on the Web. 13 countries 28 The number of e-shoppers in 2007 increased to % 10 20 30 40 50 60 70 80 66%, by 11% as compared with 2006. Source: Obserwator Cetelem 2007 The research shows also that auction shopping is even more popular, with 76% of polled persons shopping there, as compared with 58% respondents In 2007, shopping was the third most popular purpose of using the Web among Polish Internet users, Persons shopping on the Web named after the search for information and using e-mail, as showed by Net Track. 42.2% of respondents declared Year Number of Rate of that they make purchases on the Web. It is estimated Internet users Internet users (%) that the e-commerce market recorded in 2007 the 2007 5,819,510 45.00 volume of trade exceeding 8 billion PLN, exceeding by 2006 3,350,420 28.71 2005 1,542,876 18.29 61% the results of 2006. 2004 789,436 10.69 The rate of users shopping on the Web keeps 2003 692,173 10.61 increasing, and the number of e-store and e-auction 2002 459,008 7.91 customers grows faster than the number of Internet 2001 264,894 5.95 users in Poland. Net Track report made at the end of Source: SMG/KRC NetTrack, December 2001-2007 62 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Places for e-shopping The frequency of e-shopping in the future (May 2007) Internet stores and auctions Only e-stores Hard to say More often I do not intend to buy on the Web any more 24% 34% 23% 36% 1% 42% 39% 1% Only auctions Source: Gemius SA/Sklepy24.pl, E-commerce in Poland 2007, July 2007 Same frequency Less frequently than until now Source: Gemius SA/Sklepy24.pl, E-commerce in Poland 2007, July 2007 Categories of products purchased through the Internet shopping at e-stores. The group of persons shopping both at e-auctions and e-stores is also numerous and Clothes, lingerie, shoes 17.54 encompasses 34% of Internet users. The results of the Books 1 16.83 study hardly changed as compared with 2006. Radio/tv sets 1 10.21 The most numerous group of Polish consumers Computers 1 10.18 declare that they make a few buys on the Web a year (39%), but groups which go shopping on the Web at Mobile phones. Accessories, cards 1 10.12 least once a month (19%) and a few times a month Cosmetics 9 9.71 (13%) also seem quite numerous. Music (discs, cassettes, dvd, mp3) 9 9.04 E-commerce does not have to fear anything in the Cars, motocycles, spare parts 7 7.40 immediate future. If a user has successfully done shopping on the Web, he most frequently declares to Fashion accessories, jewellery, watches 6 6.41 continue shopping with the same frequency (39%) or Air and railway tickets 6 6.25 more often (36%). Cameras 6 6.07 Items for children 6 6.06 Sports/tourist accessories 5 5.92 Household equipment 5 5.91 Concerts tickets 4.98 4 Computer games 4.90 4 Films (vhs, dvd, cd-r) 4.69 4 The frequency of e-shopping (May 2007) Household appliances 4.59 4 Only once 1 11 Software 4.50 4 About once a week 4 Tourist services 3.69 3 Several times a month 13 Items for collections, modelling, hobbies 2.70 2 About once a month 19 Gardening accessories, plants, seeds 2.03 2 A few times a year 39 Musical instruments 1.37 1 About ance a year 7 Others 2.06 2 Less than once a year 6 Never bought anything 50.96 % 5 10 15 20 25 30 35 40 % 10 20 30 40 50 60 Source: Gemius SA/Sklepy24.pl, E-commerce in Poland 2007, July 2007 Source: SMG/KRC NetTrack, January/December 2007 Special extra Media & Marketing Polska, September 2008 63
  • Strategic Report by IAB Polska: Internet 2007 Internet users declare that they most often buy & accessories, health & beauty as well as photo clothes, lingerie and shoes on the Web (17,5% of & household appliances/radio & TV. Gifts and accessories Internet users) and books (16,8%). Other most popular category recorded the highest increase of its share as purchases include radio and TV equipment, PCs, mobile compared with 2006. phones/accessories/cards, says Net Track. The study performed by Sklepy 24.pl shows that more than a half of e-stores (52.1%) treats the Web as the E-stores additional sales channel. The remaining part (almost 2K of stores) are solely virtual brands. The study shows also The value of Polish e-store market in 2007 was that three quarter companies have one e-store, 18% of estimated at 3,47 billion PLN, and increased by 74% as polled entities manage 2 stores with different product compared with previous year. Sklepy 24.pl site estimates profiles and 7% companies have three or more e-stores. that at the end of 2007 Poland had approximately The e-commerce market in Poland is quite young, as 4 thousand e-stores, as compared with about more than a half (54.2%) of polled stores have been 2.5 thousand in 2006. operating on the Web for up to 2 years. However, this In Sklepy 24.pl catalogue (almost 3,3K stores), the group has decreased by almost 7% in the course of last most numerous group encompasses home & garden, gifts year, in favour of companies with larger history of operations. Product range structure of Polish e-stories 2006 2007 The length of operation of Polish e-stories 2006 2007 13.9 Home & market 14.8 25.7 2 Less than 1 year 9.3 20.3 2 20 3 Gifts & accessories 10.5 35.3 10.5 1-2 years Health & beauty 33.9 10.3 32.1 Photo, radio/tv, 11.3 2-5 years household 36.7 appliances 10.3 6.9 10.1 More than 5 years Computer 9.2 10.1 % 5 10 15 20 25 30 35 40 8.3 Clothing 8.9 Source: Sklepy24.pl, December 2006/2007 8.5 For children 7.5 7.1 The Megapanel study shows that in December 2007 Hobby 7.2 the highest number of users visited Merlin.pl (1.75 million) and Empik.com (1,04 million). The market 6.9 Sport & tourism leaders with respect to the number of users are not always 6.7 the same as the leaders with respect to the trade volume; 6.5 Books & multimedia the product profile also plays an important role. The 6.1 ranking published by Sklepy 24.pl/Internet Standard, the 5.1 highest volume of trade was achieved by Agito.pl Car/parts 5.1 (120 million PLN) and Komputronik.pl (100 million PLN), 2.5 with Merlin on the third place. The YTY dynamic growth Delicatessen 2.5 of the e-commerce market shapes optimistic approach % 3 6 9 12 15 of e-traders. 76% of them expect higher volume of trade in the coming year, showed a poll by Gemius. Source: Sklepy24.pl, December 2006/2007 64 Special extra Media & Marketing Polska, September 2008
  • Revenue of Polish e-stories Auction platforms 2007 2008 Auction platforms generated in 2007 a revenue 120 amounting to PLN 4.6 billion, or 57% of total e-commerce Agito.pl 53 market, reporting an increase of 53% as compared with 2006. The market leader is Allegro.pl, which according to Komputronik.pl 100 47.5 Megapanel was visited by 7.42 million users in December 2007, due to which the platform ranked fourth in the real Merlin.pl 80 users ranking. In December 2006, the platform occupied 63 the same position. For comparison, the number of users Oponeo.pl 63 who visited eBay.pl at the same time was 1.77 million, 30 while Swistak.pl was visited by 0.86 million users. The 60 annual value of transactions concluded at Allegro in 2007 Max24.pl 25 was 3.8 billion PLN, increasing by 52% as compared with 51.7 2006. It is estimated that more than 80% of total Hoopla.pl 27 transaction value is processed by Allegro.pl. 40-50 Empik.com 17.9 40 Megamedia.pl 23 Annual value of transactions made 27 at Allegro.pl Sirius.pl 16 4000 3800 20 Stereo.pl 7.5 3500 17 e-Cyfrowe.pl 3000 13.5 2500 10.7 2500 Militaria.pl 7.5 2000 mln PLN 20 40 60 80 100 120 1554 1500 Source: Sklepy24.pl, December 2006/2007 1000 831 12-month revenue change forecast for e-stories (2007) 500 386 171 68 Hard to say Will increase mln PLN 2001 2002 2003 2004 2005 2006 2007 Source: Allegro.pl 11% 12% 1% 76% Will remain on the present level Will decrease Special extra Media & Marketing Polska, September 2008 65
  • Strategic Report by IAB Polska: Internet 2007 The continuing growth trend is reported also with A study by Net Track shows that although the rate respect to the number of items sold annually: in 2007 of Internet users shopping on the Web is constantly this figure exceeded 70 million, exceeding by 53% the on the increase, while this rate hardly grows for figures from previous year. Allegro users most frequently participants in e-auctions. In December 2007, 21.8% sell lifestyle products, that is clothing, collections, users participated in auction trade, and the same figure radio/TV equipment, household appliances and for 2006 amounted to 19.6%. computers. Allegro offers daily more than 3.5 million auctions, reporting an increase as compared with 2 million auctions daily in 2006. Annual number of items sold at Allegro.pl Percentage of Internet users participating in e-auctions 80,000 70,579 Year Number Rate 70,000 of users of users (%) 2003 462,390 7.1 60,000 2004 737,043 10.0 2005 1,303,997 15.5 50,000 46,000 2006 2,283,637 19.6 2007 2,825,087 21.8 40,000 Source: SMG/KRC NetTrack, December 2003-2007 30,000 25,900 20,000 11,885 10,000 4,550 469 1,677 thousands items 2001 2002 2003 2004 2005 2006 2007 Source: Allegro.pl 66 Special extra Media & Marketing Polska, September 2008
  • Special Report 2009 INTERNET in February! IN REPORT.: Interactive Agency of the Year; Start-Up of the year awards; Polish Internet – annual summary. CONTACT: reklama@media.com.pl, phone: 022 514 65 00 VFP Communications Sp. z o.o. Ltd. ul. Wał Miedzeszyński 630, 03-994 Warszawa tel.: 022 514 65 00, faks: 022 740 51 00
  • Strategic Report by IAB Polska: Internet 2007 CHAPTER 7 Internet as a source of information on products and companies In search for an opinion Social shopping becomes fashionable The Trust Barometer study released in 2006 by Edelman says that 68% of respondents trusts others as Internet is an excellent source of product and company strongly as they trust themselves while making decisions information, providing opinions which affect purchase on purchases. After less than two years, this trend was decisions or even employment decisions. Opinions on reflected also in the behaviour of online buyers. products published within a community provide a base for The activation time of Internet users in the Web 2.0 a new trend defined as social shopping. One third of Internet era considerably affected the contents of the Internet. users admit that their purchasing decisions are affected by Today, the strength of a network is determined to a large community sites. In 2007, Jupiter Research performed a extent by the so-called user generated contents, created poll on the issue, with results published as iProspect Social directly by users. It is reflected primarily by opinions on Networking User Behaviour Study, April 2007. The products and services used by them in real life. This questionnaire provided a definition of a community site as phenomenon is of paramount importance now, when e- a site which enables users to add their own contents and -shopping has gained immense popularity. Internet users opinions, including for instance Amazon.com and similar buy more and more and e-sellers give up their sites where users can exchange information on products. reservations, opening still more e-commerce projects. 56 of TripAdvisor visitors, 39% of Yahoo!, Answers and The Internet Standard E-commerce 2007 report Craigslist users and 32 of Village users seek primarily shows that we buy increasing numbers of products in e- product and service information. -stores and on e-auctions. Our purchasing decisions are A study by Forrester Research, with approximately affected primarily by recommendations of our friends. 5 thousand Internet users as respondents, concerned the A study by J.C. Williams Group performed for the most desirable contents and functionalities of e-commerce Canadian branch of Yahoo! proved that sites and showed that most users want the access to recommendations are the most trusted source of product comments and product rankings. 64% of consumers said information (selected by 60% of the polled), leaving that they best appreciate comments on products provided by behind magazines which are treated as the key other Internet users. However, only 23% expect that Internet information on products by 31% of respondents. The sites should provide an option to add one’s own contents. poll confirmed the fact that 38 buyers online compare Almost the same number of respondents want to se clearly offers by various e-stores. This figure has grown by 4 as determined prices. 61 of them pointed to details of special compared with 2006. deals, while 59 wanted access to price comparison tools for individual products. 68 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Consumer Power! information on the Web can spread with the speed of light. Just a single information on a specialised site, such as Members of WOMMA (Word of Mouth Marketing Hacking.pl is enough to affect newsmen from the best Association), Bazaarvoice and Vizu Corporation created opinion-making and most frequently viewed portals. For this a study on the importance of consumer comments. reason, current and constant monitoring of Internet gains an It proved that eight out of ten Americans trust brands increased importance. which use consumer comments in their marketing Internet monitoring may be performed with own actions. 75% of the polled is of the opinion that results resources of the company, or can be outsourced to of consumer analyses should be consulted prior to a specialised media monitoring firm. Monitoring with making a purchase. 85% of respondents prefer one’s own resources uses Internet and news search consumer comments to expert opinions. This situation engines, news aggregators and RSS readers. has been confirmed by a study by eMarketer which says that comments by common users are considered most trustworthy by Internet users. However, the position of Internet search experts remains safe: corporate analysts are a valuable engines source of knowledge for 56% of Internet users, and scientists – for 54% of users. 12% of the polled trust Internet search engines are the most popular Internet bloggers, and 23% – heads of companies. monitoring tools (e.g. Google, Onet – Szukaj/Morfeo, WP/Net Sprint.pl, which return the highest amount of Online supports offline search results in Polish. However, a feature, comment on a site or a post has a chance to appear within search Power Reviews (a member of WOMMA) conducted results after 24 hrs from posting it. Its ranking within a study on the potential of Internet comments on search results depends mostly on the popularity of the products in the U.S. It proved that 22% consumers site on which it was placed, as search engines return always browse through comments before products search results in the order compliant with its search purchase. 43 of respondents do it in most cases, and algorithm, which is mostly oriented towards site only 2% do not user comments. popularity. Results of the most recent study by eMarketer, signed by Jefferey Grau (“EMarketer The Multi-Channel News search engines Retailing”, February 2008) confirm that modern and aggregators consumers gain product information in the Internet for their non-virtual shop purchases as well. Estimates of Other commonly available tools are new search the analytical team at eMarketer.com show that the real engines, which can operate as separate sites, such as sales supported by Internet promotions reached in the the first Polish news search engine Donosiciel launched U.S.A. in 2007 the value of 471 billion USD, while the by Net Sprint.pl, or as a functionality of large Internet value of online sales amounted only to 136 billion USD. portals (such as Gazeta.pl, WP or IDG.pl). News .pl The poll showed that the major part of purchases made search engines do not require installing any extra in real world is preceded by seeking information online. applications, they are used in a way similar to standard Estimates by eMarketer show that real world purchases search engines; however, the functions of the tool are affected by Internet promotions, combined with e- more advanced, as it can inform on the placement of -commerce sales made up 15% of total retail sales in news of interest to the user. The information is delivered 2007 in the U.S.A. All things considered, this indicator by e-mail or via RSS channel; the tool can also browse will probably double by the year 2012, reaching the news within a predefined time bracket or return search level of 28%. results for a specified key words. Monitoring of Internet RSS aggregators communications (readers) This year’s Internet crises which affected such renowned Other tools which facilitate Internet browsers are RSS brands and organisations as mBank or Allegro.pl show that aggregators (readers) such as. Cafe News, BRE Info, Special extra Media & Marketing Polska, September 2008 69
  • Strategic Report by IAB Polska: Internet 2007 intraVnews, News Feed, Paseczek, RSS Bandit, RSS selected texts on the user’s site – e-mail, RSS or SMS Reader, RssSpeed or Wiadomek. RSS aggregators or alerts and contextual search. readers consist of software which has to be loaded into In this respect, the systems for monitoring Internet the operating system, and configured. The most communications are similar to services of companies problematic functionality of a RSS reader is adding new which provide monitoring of traditional media. information channels, as it can monitor only the sites Some of the systems re specialised in monitoring of and blogs whose existence is known to the operators. a specific sector. For instance, Media Explorer Another condition is presence of the RSS channel on introduced its GPW Watcher service which was a site in question, as the reader skips sites without the originally intended to work as a stock exchange cannel. Newly launched sites have RSS channels as companies monitoring tool (such companies require fast a standard option, but many sites created before Web access to information). 2.0 lack such channels. The best known monitoring systems of this type worldwide include Cyber Watcher and E-watch. Blog search engines The first Polish solutions was NewsPoint system offered by Net Sprint.pl, a company specialised in Internet Browsing blog contents is possible via blog search monitoring. Such services are provided by the largest engines. The best known foreign tools of this type media monitoring companies, such as Press-Service (by include Blog Pulse.com and Technorati.com, and Polish Net Patrol), Instytut Monitorowania Mediów, ePrasa.com, ones include Blog Frog and 10przykazan.com. Blog Newton (working in partnership with NewsPoint in the search engines monitor the activities of bloggers area of its Internet services), Media Explorer (in mid 2007 measured with the frequency of publishing their entries, acquired by Press-Service), Pan Media and a multitude of the popularity of words and phrases, the popularity of smaller companies. blogs measured with the number of visits, quotations The larger provider of such services with respect to and numbers of comments. The results are presented in the number of monitored sites is NewsPoint which a simple and understandable manner. Such search currently monitors 1.3K sites in Polish and more than engines can yield results as graphic presentations or can 650 foreign sources. It is the only company on the provide results for several queries at the same time (e.g. Polish market offering a platform for browsing, names of two U.S. political parties). Their drawbacks generating and managing acquired information include limiting the results to the newest entries only immediately after placing it on the Web. Its customers and skipping older entries referring to the topic in pay a fixed monthly subscription for Internet monitoring question. Some blog search engines require registration services with unlimited number of keywords. on their site and placing the site logo in the source code NewsPoint is closely followed by Press-Service with of the blog, which limits the search areas to pre- its Net Patrol solution (1K sites) and the Instytut registered blogs. Monitorowania Mediów (715 sites). These companies offer search services paid per keyword, delivering search Systems for monitoring results in the form of individual cut-outs to their Internet communications customers, via e-platforms. However, their customers do not have the option to browse through Internet in real Systems for monitoring Internet communications are time. The strong point of such companies is the option more advanced than the solutions listed above. They do to browse a large number of traditional media, as the not require any installation, as they are serviced by an companies in question originally specialised in administration panel to which the users can log in. Their traditional media monitoring and expanded their usage is similar to news search engines, but they offer services when the Internet developed. an option for advanced information analysis, such as A report by Monika Kaczmarek-Śliwińska, Ph.D. on popularity trends, quality of information messages, Internet monitoring, based on studies made at the editors’ activity in a given area or topic and comparative beginning of 2006 says that the range of services analyses of the above data. The engines also have offered by monitoring companies is very broad, information management tools including the encompassing the monitoring of information from archivisation of selected information in a user-defined portals, vortals, topical sites, news sites and e- format, news feed – an option allowing to place links to -newspapers and magazines. However, not all 70 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 companies were able to offer monitoring of radio or TV stations broadcast via Internet (respectively 91.67% and 83.33%). A half of polled companies offered also the monitoring of discussion lists and groups, forums and chats, while one third of companies offered monitoring of blogs. Envisaged trends Due to the expected increase in the number of Internet users and resulting increase in the number of sites or user generated contents, experts expect an increasing importance of such services in the coming years. A study by Monika Kaczmarek-Śliwińska, Ph.D., shows that although clients declare the press monitoring as the most important aspect (70% of respondents), monitoring of the Internet is gaining importance (expected increase of user interest up to 70%). The research is confirmed by a change in the structure of reports with media publications, noticeable in the course of two recent years: initially, press publications were achieving higher numbers, then the percentage became balanced, and then the number of items published on the Web exceeded the number of items published in the press. This phenomenon reflects changes on the press market, where Internet editorial offices are being developed together with the contents of online equivalents of newspapers/magazines, on the expense of their paper versions. Another trend is the introduction of technologically advanced solutions for monitoring user generated contents such as blogs, internet forums, video/music/ photo file sharing sites etc. This trend will be accompanied by market education concerning the necessity of monitoring such site. The research by Kaczmarek-Śliwińska shows that monitoring of such contents has the same number of supporters and opponents. On the other hand, the U.S. market shows now a trend for developing solutions which integrate various types of information placed in the Internet (such as media monitoring data and company site statistics) with data provided by CRM systems, corporate image research such as DIY Dashboard solution. This will provide users with more detailed information on PR results, not limited to the immediate effects, but also including the long-lasting ones. Special extra Media & Marketing Polska, September 2008 71
  • Strategic Report by IAB Polska: Internet 2007 CHAPTER 8 WE ARE MEDIA PR in the Internet era "Success is the measure of how many little things you do right" Jeffrey Eisenberg The fast development of Internet as an equivalent The recent year brought about numerous negative medium not only affected public relations activities, but effects of ignoring Internet users by PR experts; a few also changed basic guidelines underlying this sector. Today, some instances in which a blogger forced a large the borders of marketing and PR increasingly overlap. company to change its policy considerably affected PR Internet changed primarily the model of communications sector and Internet users as well. In the era of the with the final recipient. In the era of traditional media Internet, the brand publicity is created not only by PR domination, media served as a channel which linked the experts, press spokesmen and company presidents, but recipient, but on the other hand they created a distance, also by consumers who joined newsmen and investors due to which PR people were dependent on journalists. in becoming a fully authorised group of public relation Internet liberated PR from this dependency, although customers: they want to subscribe newsletters, obtain during all-national debates it is noticeable that a large press information and participate in conferences. group of PR specialists shy away from the Web and takes Bloggers seem to be most active in this respect. the number of journalistic publications as the only indicator of their efficiency. New media relations The Internet allows to establish direct relationship with the final recipient, giving an opportunity to present PR more and more frequently discusses the effect of not only a concrete message, but also to interact. One the Internet on media relations, one of its most should be aware of the fact that the audience is tired important branches. The appearance of a prosumer, that with the mainstream and a participation in a local or is an active consumer and recipient who gets involved in topical forum may be more efficient than another press a dialogue with the company and often is a leader of conference or individual press releases published in public opinion on the Internet, changed the approach to newspapers. A lot of PR specialists are afraid of media relations. The audience of press releases on the participating in Internet discussions, however, Internet is no more limited to newsmen only, but it also discussions on the subject of their interest will continue, includes bloggers and other users. irrespective of whether they take part in them or not. Press information directed to the Internet should be Active participation provides not only a chance for the concise (not exceeding 1000 characters), well dialogue and clarifying doubts, but also for showing supported with links to source pages and to pages on respect to direct recipients/users. similar topics, and supplied with attachments including As it has been mentioned earlier, the Internet blurs graphic and/or video contents in a suitable format which the border between PR and marketing, and for this shall not unnecessarily burden the e-mail box of reason a number of PR tools used in the Internet can be a newsmen. just as well considered to be marketing tools. With the Interestingly enough, the Internet liberated PR people exception of systems of virtual press offices and from deadlines. The production cycle of a monthly monitoring, all the other tools, such as forums, blogs approximates 30 days and of a daily – 24 hours, but and community sites are used both by marketing and Internet media count time in minutes which are PR. A modern marketing division should treat PR sometimes decisive of who will be quoted as a source of experts as partners for campaign creators and let him information. Internet media newsmen work in a different participate in campaign development, instead of limiting time frame than traditional editors. For this reason, his activities to sending out another press release. information can be sent out on business days and also 72 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 on weekends. The distribution date should depend on Pioneering companies to use virtual press offices the priority of the issue of the press release and should include BRE Bank SA group (www.media.grupabre- not wait for a suitable date before editorial meeting. banku.pl), TP group (www.biuroprasowe.tp.pl) and Due to the common use of the Internet and the Ericsson (www.media.ericsson.pl). At present the most continuous information flow, PR experts, spokesmen active clients of virtual press offices are banking, and employees in charge of communications receive an finance, telecoms and Internet companies. One of the increasing number of questions from media, scientists, providers of such services, NetPR.pl, says that such bloggers and other Internet users. This situation is solutions are currently used by about 200 companies a huge challenge, not only due to time pressure but also including enterprises, capital groups and PR agencies. to the importance of answers: every information placed In 2007, the number of virtual press offices increased on the Web may affect company image. by 30%. The efficiency of media relations depends also on the The largest systems of virtual press offices service availability of materials (virtual press offices are quite traffic on the level of 100K visits per month (data by helpful in this respect – see information below) as well NetPR.pl system). This number does not seem excessive as on the ability to undertake a dialogue with the as compared with the total number of Internet users, but Internet community and to pay attention to all the one should remember that it concerns a niche, precisely groups of recipients. targeted service. The value of the traffic is also proven by the character of the site and its focus on the Virtual press office information on a concrete company. – something more than Providers of press offices expect to provide in 2008 a corporate site a number of new solutions such as an option to place and use videos in players a module of press conferences A virtual press office is often identified with the online and an option for managing relations with module of a corporate site which is usually named “The investors. Company” or “About us”. However, the term means something more. Virtual press offices not only allow for Blogs as a new PR efficient publication of releases for media, but also for communications creating a platform for communications between media channel relations experts and journalists and Internet users interested in a sector. Blogs turned into a long tail of public relations Although a few years ago the market offered systems and marketing. Another thing which makes them providing comprehensive press office management and a particularly efficient tool for both of these areas is the administration, this report has not yet discussed them fact that blog readers treat them as one of the forms of separately. They are worth attention, for instance due to authentic communications, while remaining sceptical excellent search engine positioning of information and distanced towards advertisements, treating them as published in such systems, which allows to access messages which do not belong to the sphere of reality. recipients interested in the issue in a precise way, not In contrast to general opinion, Internet users, and young involving any additional costs. The benefits of a virtual users in particular, do not divide the world into virtual press office include its availability on the 24/7 basis, and real. Internet is a part of their everyday activities. information available via RSS, search for press This fact, combined with the confidence in the contents information by dates and key words, adding new presented in blogs has been noticed by modern PR. materials such as messages in other formats, source Blogs as communications tools provide: features, videos and links without overloading mail 1. A simple manner of monitoring opinions of millions boxes of journalists, and granting access to such of users on products, brands, companies etc. materials to all interested parties. Advanced virtual 2. An opportunity to participate in a discussion by press office systems allow for registering newsmen who posting comments. have to provide their contact details and specify their 3. An opportunity to commence and shape discussions area of interests in the process, which allows for an easy by creating and writing one’s own blog. development of a valuable media database and for more precise targeting of information. Special extra Media & Marketing Polska, September 2008 73
  • Strategic Report by IAB Polska: Internet 2007 Discussing the role of blogs in PR activities, one acquaintance in the role of a blog author or should mention two basic activity paths: commentator, and 80% of bloggers discuss their blogs communications with bloggers and creating one’s own with friends. These figures indicate a huge activity field blog. In both cases, one should accept some general available for PR. rules respected in blogosphere: Many PR people, particularly those attached to The language used in contacts with Internet users, traditional media and used to them, can commit a basic particularly in the blogosphere, should be natural. mistake, failing to understand bloggers, their role in The recipients are best convinced by people who shaping the opinion and importance in the speak their own language. This task is particularly communications process. While discussing blogosphere difficult for PR people who sometimes have as the new PR communications channel one should problems with getting rid of habitual use of their remember that, although bloggers are no newsmen, this lingo. is not a reason to marginalise their importance. All actions should be transparent, not only due to the ethical codes (including the code of the Word of Mouth Marketing Association), but also due to the fact that mystifications and false identities are very quickly decoded by Internet users. The lack of communications is also a message. The lack of communications with bloggers, particularly those active in the sector of interest, means no influence on the opinions expressed on the product or brand in question by millions of Internet users, both authors and readers. According to a report published in February 2008 by Blox.pl and Gemius SA (Source: Behavioural motivations and opinions of blog readers and authors, a report on a poll by Blox.pl and Gemius SA), although most of bloggers are young people in general, one-third of them is over 30, and most of them are employees (66%) or students. The report shows bloggers as very active Internet users: 92% of them find information on products, services or companies on the Web, 85% use discussion forums and groups, 76% go e-shopping and 66% participate in e-auctions. The results of the report confirm that one should not look down even at inexperienced bloggers. The study shows that no experience does not negatively affect the number of readers and comments. The most frequently updated blogs turn most popular. A half of authors of blogs read by at least 1000 persons per week is over 30 years of age. The quoted report proves that blogs are read in bulk (every third person polled declared that he reads at least several blogs). As many as 92% of blog authors enable comments, which is a proof of their openness to dialogue. Two thirds of the polled bloggers check persons who place links to their blogs and quote them. 37% of respondents reading blogs at least once met personally with somebody with whom they made 74 Special extra Media & Marketing Polska, September 2008
  • Daily Service “Media & Marketing Polska” The daily service “Media & Marketing Polska” supplies the information on the latest news from the media, advertising and marketing fields. It consists main divisions: local news, public order information and international news (based on the exclusive license of “Advertising Age”). Every day the subscribers receive an e-mail with the latest sector news gathered directly by the journalists of “Media & Marketing Polska” (about 30-45 per day). Moreover, each subscriber has an individual access password to the web site www.dziennik.media.com.pl, which contains full information as well as service archive. Contact: Tadeusz Bogdal, PHONE: +48 22 514 65 64 E-MAIL: tadeusz.bogdal@media.com.pl
  • Strategic Report by IAB Polska: Internet 2007 CHAPTER 9 Internet market research The measurement of Internet user in Poland provided by Millward Brown popularity of Internet SMG/KRC. sites in Poland The panel providing data on WWW sites has presently about 20 thousand registered Internet users. MEGAPANEL PBI/GEMIUS Megapanel PBI/Gemius provides data on the number and profiles of users of almost 9 thousand WWW sites Megapanel, a project conducted by Polskie Badania visited by Polish users and the number and profiles of Internetu Co and research company Gemius, experts users of Internet messengers (instant messaging considerable influence on the whole Internet and applications). As of September 2007, the measurement advertising market in Poland. embraces also RSS readers and desktop applications. Megapanel PBI/Gemius is based on four In addition to basic statistics such as the number of different data sources: social and demographic real users, page views, sessions and total time spent by information from recruitment questionnaires, user users at the site, one can use also a number of derivative activity statistics of participants in the study at WWW indicators such as the average number of page views per sites, data on popularity of WWW sites audited by user, average time per user, user/page view matching gemiusTraffic and data on the number and structure of affinity index, aggregated viewing figures for selected Figure 1: Window with an analysis of Megapanel PBI/Gemius results in gemiusExplorer 76 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 sites. The data can be analysed only for selected target representative for the population of all Internet users, groups, and the filter option can also restrict the scope of and particularly for Web users from individual countries. the analysis to sites with selected value levels for Due to its special character and low resolution of the individual indicators. results, Alexa can be used only for estimating changes in Results of Megapanel PBI/Gemius are published viewing trends, solely for larger WWW sites. every month as of October 2004 for monthly periods, and from December 2005 also for 7-day periods. Files Tracking research of with reports are made available up to the 20th day of the site viewing figures second month following the month of the research. The data are available in the format of gemiusExplorer gemiusTraffic application, enabling the expert of current analysis to CSV format and copying it into the clipboard. GemiusTraffic is the most popular tracking system for Simultaneously with the study results, the authors WWW site tracking of visibility figures. The system is publish also a so-called topical tree which groups the provided by Gemius, and according to the research by researched sites into categories with similar character its provider, embraces almost 100% sites providing and contents. The tree includes 12 main categories of advertising services in the Internet in Poland. sites: Data on user traffic on the sites are collected on – culture and entertainment, information, features, a running basis by counting scripts placed in the media, WWW site code. The cookies technology which allows – communities, for identifying Internet users lets the system record – new technologies, every page viewing. Results are presented in real – lifestyle, time via an interface available through Internet – business, finance, law, browsers. – education, GemiusTraffic provides a large amount of information – automotive, on the behaviour of users on the monitored site. The – sports, basic measurement unit is a page view, or an event – tourism, which consists in displaying a site on the user’s screen – jobs, (assuming that he reads the contents), which has the – construction and real estate. counting script. The registered page views serve as the GemiusExplorer allows also to develop one’s own base for calculating page view number indicator aggregate trees for performing analyses, including (a series of subsequent page views), the number of authorised aggregate trees which combine sites unique users (cookies) visiting the site in a predefined belonging to one editor or sites with advertising space period (hour, day, week month) and the time spent on sold by a single broker. viewing the site. These basic indicators lets gemiusTraffic count Alexa.com a number of derivative indicators for more precise description of the character of traffic. The interface Due to free access, Alexa.com statistics system is includes, for instance, information on the average time a popular tool used by some site owners for spent on the site by users, the length and extension of measurement and comparing the viewing figures for their visits, and the statistics of referrals (referring sites, individual Internet sites. Viewing figures tens of millions search engines and catalogues) leading users to the of Internet sites are generated by a measurement of monitored site. activities of some million users worldwide who have The systems allows also for a precise analysis of installed a mechanism built in the Alexa Toolbar visits of users on the site, including paths along which application. they travel. GemiusTraffic collects also system variables, The available statistics are in fact limited to the reach such as versions of used browsers, type and version of and number of page views. operating systems, resolution of the screen and geo- Results for individual sites available at Alexa.com are location details allowing for locating the visitor of questionable value, due to the fact that the sample geographically (by continent, state, province and city in selection (volunteers who installed the toolbar) is not Poland). Special extra Media & Marketing Polska, September 2008 77
  • Strategic Report by IAB Polska: Internet 2007 Figure 2: gemiusTraffic results interface Another important strong point of the system is the integration with technological platform of Gemius, option to create an individual measurement tree, viewing figures available at Stat24 are practically reflecting the structure of the monitored site, and identical with those provided by gemiusTraffic, differing allowing for tracking the viewing of its individual parts, only with the manner of interface presentation of results. practically down to any complexity level of choice At present, Stat24 services more than 1.1 million (whole site, module, sub-module, single page). accounts and measures traffic which exceeds 2.5 billion The interface provides also a number of options page views per month. facilitating the management of highly complex sites, Stat24 products are available in four main versions: including the export of reports with source figures, free of charge, corporate and for business online. The viewing forecasts, average values for individual viewing basic version, recommended for owners of home pages, indicators, script sorting etc. blogs, topical and hobby pages, is available free of charge, provided that the owner places Stat24 logo on Stat24 the main page of the monitored site and expresses contents for editing research questionnaires in the site. Stat24 is another tracking tool for monitoring users The version has no page view limit, but it allows only for and their behaviour on site, which enjoys considerable using two scripts belonging to one domain. It does not popularity in Poland. The product is intended primarily for allow for monitoring sites made in flash technology, sites small and medium sites which have relatively simple provided in safe connection (SSL) and URL clicks structure, not requiring more complex tools. Due to its (measurement of redirecting). The version makes it 78 Special extra Media & Marketing Polska, September 2008
  • Strategic Report by IAB Polska: Internet 2007 Figure 3: Standard Stat24 result interface slightly more difficult to use the presented data restrictions placed on the less comprehensive versions of simultaneously, as the interface does not provide the product. All paid options relate subscription price to summary data, fast statistics options and a number of the average number of page views recorded on the site in detailed information on site traffic. the course of three subsequent calendar months. The corporate version, provided in two variants: statOptimum and statOptimum PLUS is recommended for Google Analytics corporate and product sites as well as for vortals, allows for using up to 50 counting scripts belonging to a single Free statistics system offered by Google as Google domain, and has a monthly limit of page views registered Analytics is enjoying increasing popularity in Poland. by the system. Similarly to the free of charge version, it This tracking solution is used primarily by smaller sites, does not provide an option for sites provided with safe as the free version has no restrictions in monthly SSL connection and URL click counting, but it allows for number of page views only for sites which are Google measuring flash sites. The only limitations on the level of Ad Words clients. All the other sites have a limit of data presentation include the number of available figures, 5 million page views per month. Google Analytics is as some more advanced measurements remain inactive. suitable for companies which do not need real time The most comprehensive version of the statistics, information on the statistics, as the viewing results are offered in two variants: statBiznes and statBiznes PRO is provided by Google once in 24 hrs. intended for Internet editors, using up to 200 counting Undoubtedly, the added value of Google Analytics scripts belonging to a single domain and has no consists in a strong linking of this system with Google Special extra Media & Marketing Polska, September 2008 79
  • Raport strategiczny IAB Polska: Internet 2007 Ad Words service enabling to track behaviour and with such syndicate projects as Millward Brown profitability of users who find the site through individual SMG/KRC, press readership research (Polskie Badania advertisements, search engines and e-mail campaigns, Czytelnictwa) and Target Group Index (TGI). In the to analyse conversion indicators and the effect of result, it includes additional cross-cut analyses of Internet advertising. Internet user community in Poland with respect to psychographical characteristics, consumer behaviour, lifestyle, approaches and attitudes, interests, preferred Research on the entertainment and leisure. number and Net Track is performed by Millward Brown SMG/KRC characteristics of as of the beginning of 2000 on a representative sample Internet users of Poles between 15-75 years of age. The results are collected by personal interviews made by pollsters at NetTrack homes of the polled. The current sample size is 4 thousand of persons by month, which allows for Net Track is at present the sole broad polling providing high resolution, precise results. The results of research tool providing information on the number and the research are provided every month in the Soft demographical/social profile of Internet users in Poland. Report Explorer format. The project focuses on the following issues: – current use of the Internet, Ad hoc Internet – areas of using the Internet, types of information research sought there, – place of using the Internet (internet access), Ad hoc Internet research on Internet user community – average time of using the Internet at home, at has been enjoying increasing popularity in recent years. work, at school/university, at friends’ place/family, Such research, as compared with traditional tools, is in an Internet cage/computer store and in other a low-cost method performed in a short time, with places, practically no geographical restrictions. The research is – frequency of using Internet in general and in detail: conducted in two ways: involving once-off samples at home, at work, at school/university, at friends’ recruited individually for every project, and involving place/family, in an Internet cage/computer store and Internet user panels. in other places, – the access of Internet at home (home access, plans GemiusAdHoc for obtaining home access in the coming 6 months, manners of accessing the Internet, number of GemiusAdHoc research offered by Gemius is persons using the Internet at home), performed by way of questionnaires displayed in pop-up – top-of-mind, spontaneous and assisted knowledge windows on Internet sites. Questionnaires are displayed of the most popular sites in Poland, at random to Internet users who are a representative – Internet sites visited most frequently in the course sample of Polish Internet users, of a group of site users of a week and month, (or type of sites) or a group selected for its particular – e-shopping, social, demographic and behavioural characteristics. – Internet messenger services, Due to its special character, gemiusAdHoc can meet – services of Internet call operators. a variety of various needs of the ordering parties. Results of Net Track can be analysed for typical Depending on the subject and frequency of research demographic/economic/social profiles such as sex, age, (once-off, regular, constant), the tool can support both education level, place of residence (old and new the ongoing operations of companies and their strategic province borders, region, localities by size), marital decision making. It can be used for solving a variety of status, social and professional status and monthly marketing problems by delivering information on the income (total for the whole family and per person in needs and preferences of consumers, segment structure a household). of the market, corporate image, brand awareness, The unquestionable value of Net Track research is satisfaction and loyalty of customers and on market that it is performed as a single source project together trends. 80 Special extra Media & Marketing Polska, September 2008
  • Raport IAB 2007 Panel research The largest Internet panel in Poland is at present the ePanel conducted by ARC Rynek i Opinia. The panel was launched in May 2001 as the first service of this type in Poland, and at present it has more than 40K persons registered. The panel is a continuing project, with research areas including the Internet itself and the opinions of respondents on the newly emerging products, advertisements and brands. An Internet consumer panel is not limited to examining opinions of Internet users or of a population of persons including many Internet users (e.g. owners of mobile phones, credit cards, banking services etc.) but it can also be used for research on products and services not related directly to the Internet such as test of products, packaging, logo, advertising slogans, concepts etc., as well as for many other types of marketing research. Panel members are rewarded for their participation with points which can be exchanged directly for cash or transferred to a selected charity organisation. IMAS OnLine panel by IMAS International operates in a similar manner The company uses general and specialised panels for expressing opinions and attitudes via Internet questionnaires and concerning a multitude of topics. Centrum Badań Marketingowych “Indicator” in partnerships with Zapera.com of Denmark develop their Inetpanel project which is an international research project involving Internet from Baltic countries. Currently the number of its registered members approaches 20 thousand. IPSOS offers InnoTrack research for detailed diagnosing of new product results. The research identifies individual consumer groups and their profiles (acquainted with the product, testing, using it and rejecting) together with a comprehensive analysis of reasons for purchase and rejection of products. Pentor Research International offers its e-Panel project with ongoing monitoring of consumer preferences, allowing to acquire in-depth knowledge on customer expectations, needs and opinions. The panel is based on the concept of creating an Internet community and using qualitative methods in marketing research. Other companies which developed their own Internet panels include Instytut Badań Rynku i Opinii Publicznej CEM, GfK Polonia and Millward Brown SMG/KRC. Special extra Media & Marketing Polska, September 2008 81
  • YOU HAVE TO KNOW MORE – market information about client in a split of second. Take a weekly free test and order a subscription. Contact: Katarzyna Marchel, phone: +48 22 514 65 14, e-mail: katarzyna.marchel@media.com.pl, www.destylator.pl