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IAB Poland 2008


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Online Adverisement spends, e-commerce in Poland 2008.

Online Adverisement spends, e-commerce in Poland 2008.

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  • 1. Internet Strategic report IAB Poland 2008 POLAND • EUROPE • WORLD SPECIAL SUPPLEMENT TO AUGUST-SEPTEMBER 2009
  • 2. Report prepared by: Andrzej Garapich, Piotr Kowalczyk, Iwona Połóg, Magdalena Rówińska, Jarosław Sobolewski Authors: Karina Adaszak, Adam Chowański, Jacek Chruściany, Krzysztof Dębowski, Piotr Dębski, Łukasz Duda, Marta Dzikiewicz, dr Andrzej Garapich, Paweł Haltof, Jacek Jankowski, Dominik Kaznowski, Xawery Konarski, Daniel Kotyras, Piotr Kowalczyk, Agata Kozak, Adam Kwaśniewski, Beata Mosór, Michał Owczarek, Piotr Panasiuk, Bartosz Piński, Iwona Połóg, Paweł Sala, Iwona Sienicka, Grzegorz Sławatyński, Jarosław Sobolewski, Robert Stalmach, Tomasz Teodorczyk, Teresa Wierzbowska-Smolarek, Mariusz Woźnicki, Borys Wróbel Contact IAB Poland: WWW: Związek Pracodawców Branży Internetowej „Interactive Advertising Bureau Polska” ul. Targowa 34, lokal 43 03-733 Warszawa phone: 022 698 69 70 fax: 022 698 15 49 Editor’s note: This is the second edition of the most competent and in-depth report describing Polish Internet as a rightfull medium for marketing communication. The most interesting feature of this edition is proba- bly the way Internet has been presented; in the first part we describe it as phenomena (Polish inter- net market) and as marketing communication medium in the second part (Online advertising). This report is a result of cooperation between our publishing house with IAB Poland. This cooperation includes several areas: this report, IAB Update meetings, IAB Poland and IAB Europe congresses, pages of “Media & Marketing Polska”. We believe that the data presented in this report will enable our readers to familiarize more deeply with the commercial side of Internet, which will translate into real successes in the future. Juliusz Donajski Editor © VFP Communications Sp. z o.o. ul. Wał Miedzeszyński 630 03-994 Warszawa tel.: 022 514 65 00 faks: 022 740 50 55 August-September 2009 Special supplement to „Media & Marketing Polska” 3
  • 3. Internet 2008 Table of contents: Chapter 1: Polish Internet market Internet access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Online consumers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Internet communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Polish hosting and domain registration market . . . . . . . . . . . . . . . .41 Usability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 Website ratings in Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 Chapter 2: Online advertising Online advertising expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Display advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 Video in Internet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56 Behavioural targeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 How to measure engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 SEM – Search Engine Marketing . . . . . . . . . . . . . . . . . . . . . . . . . .64 E-mail marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69 Mobile marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72 Advertising in games . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 Word of mouth marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78 Appendix: Internet advertising and law – selected issues . . . . . . . . .80 Chapter 3: Electronic trading Classifieds and yellow pages . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82 Auctions and e-commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85 4 Strategic report IAB Poland
  • 4. Internet 2008 Dear readers, Year 2008 has been the best in the history of Internet market functioning in our country, for the online advertisement market in Poland. starting from the information on consumers 50 percent of Poles are using Internet today. and following to the legal issues relating Companies are not able to imagine daily operating to conducting Internet advertising. This report without using this medium, and online campaigns has been prepared by more than 30 authors who have gained significant share in the ads budgets. have been supporting everyday activities of IAB Experts’ prognoses in our organization have been Poland with their expert knowledge in the confirmed and the expenses on the interactive working groups, giving the lectures during the advertising have exceeded PLN 1 billion. Even more conferences as well as educating young staffs surprising was maintaining very strong growth during the university classes. This year we have dynamics of the Internet ad market that was limited number of chapters which was only 57 percent year to year; despite of the noticeable editorial operation, because finally we have symptoms of economic slow down at the end of the extended the range of issues presented. Having year. The main advertising segment in the Internet in mind the previous year’s interest, this year is still graphic advertising. Important positions for the second time we are planning to issue the occupy as well: ads in the search engines as well as report in English as well. advertisements and yellow pages. Also e-mail marketing is still maintaining its important IAB Poland 2008 position. It is worth noticing that 2008 was a year development time of coming out to the broader arena of new After difficult first year of operating in new segments. Community services have entered for formula, 2008 has been the time of strong good the canon of preferences of Polish Internet development and implementation of plans initially users and have introduced new forms of ads basing outlined in 2007. Number of organization on the interaction between them. Majority of the members has doubled, increasing from 33 to 67. Polish interactive media have introduced offers for We can definitely say that we accomplished target and behavioral campaigns trying to follow much more than we were assuming. The most the trends in the most developed markets. We important activity for the market was certainly shouldn’t forget about the growth of popularity of research projects conducted by us, including qualifying marketing as well as introduction of IAB AdEx completed together with PwC. whispering marketing. Incomes earned by We have successfully completed yearly interactive agencies have reached over PLN 100 research for 2007 and summed up the expenses million and the level of completion of national for the first half of 2008. Our data was included campaigns has been recognized by juries of in the European results of AdEx research. international contests. It becomes even more important if we perceive At the end we would like to wish our branch as it as an opportunity to promote our country on successful years in the future. the European arena, when 10-20 percent of campaigns are conducted in several countries Editorial meeting simultaneously. We want Poland to join the group This report is a sixth yearly summary of countries where such campaigns are run of activities in many different dimensions regularly. 6 Strategic report IAB Poland
  • 5. Internet 2008 We are satisfied with the popularity of In 2008 we have encountered for the first conferences and meetings organized by our time the necessity to personally represent the bureau. We have organized over 20 of them. IAB interests of interactive branch when contacting 2008 Forum has been visited by 650 guests, both the government agencies in relation to the well Polish as well as foreigners, and 400 people took known case of pop up advertising conducted by part in the award gala of the Mixx Awards contest Office of Competition and Consumer Protection. for the best Internet campaigns. We have been We have undertaken the role of mediator developing IAB Update cycles and each of them has between the bodies acting on our market and at gathered more than 350 participants, and IAB the same time we have cooperated with other Show case – addressed at marketers exclusively, organizations on the national level. We have been a series of meetings presenting the best national working together with SAR and “Advertising case studies. We have visited Cracow, Wroclaw Council” Associations Union, where we have and Tricity presenting the series of IAB Meeting. introduced two our representatives as judges Within the framework of marketing workgroup in – Dominik Kaznowski and Olgierd Cygan – who the search engines and in cooperation with IDG seat in the adjudication panel of the Advertising we have successfully prepared two day conference Ethics Committee. – SEM 2008. During those events the presence On the international arena we have been acting of clients that rarely visit branch events was in cooperation and within the framework of IAB particularly valuable. We have tried to support Europe. The success of our Polish IAB became an companies and organizations which try to organize example for Central and Eastern European individually or in collaboration local events aiming at countries. IAB Poland has supported development introducing interactive marketing, including among of local IAB branches in Hungary and Croatia. others: Media-trendy, Impactors, IDG conferences, Apart from participating in European AdEx, E-rewolucja biznesu, Tubes, Netcamps, and IT Andrzej Garapich PhD, president of PBI, Party. An interesting opportunity to establish ties representing IAB participated in the world and contacts on the international level was the initiative of MIA Project aiming at creating trip taken by the group of 70 representatives of methodology for comparing the ways of measuring our interactive market to the Interact congress the number of users in individual countries. organized by IAB Europe in Berlin. We pay Thanks to the large number of users significant attention to the process of self- participating in the research, Poland has become regulation through the documents of one of the main most active markets in the recommendation, best practices and work research. standards prepared in the Workgroups. The following groups have been conducting their works The success of 2008 activities was in 2008: interactive agencies, best practices in significantly driven by cooperation with: display advertising, e-mail marketing, SEM, Grzybowski & Grzybek Law Firm, PRActions networks, video and local searching. Unfortunately company as well as and Opcom not all the works are continued at the moment companies which support development of our and not all of them have reached the assumed communication tools in the network. It is goals. Because of that at the end of the year impossible to name all the persons who coordinator of workgroups has been employed contributed to the development of our – Jacek Wownysz who is responsible for active organization this year. Nevertheless we would animation of those activities. like to thank all of them. 8 Strategic report IAB Polska
  • 6. Internet 2008: Polish Internet market CHAPTER 1 POLISH INTERNET MARKET Internet access World Internet According to the internet users live in Asia (over 657 million), and almost 24 percent of the world population has in percentage terms the leader is the North been using Internet in 2008, which makes it America, where almost three quarters of almost 1.6 billion people. The largest number of residents use the network. World Internet users Region Population Internet Internet Penetration Growth Percent users users (population 2000-2008 of Internet in 2000 in 2008 percent) (in %) users in the world Africa 975,330,899 4,514,400 54,171,500 5.6 1 100.0 3.4 Asia 3,780,819,792 114,304,000 657,170,816 17.4 474.9 41.2 Europe 803,903,540 105,096,093 393,373,398 48.9 274.3 24.6 Middle East and Central Asia 196,767,614 3,284,800 45,861,346 23.3 1 296.2 2.9 North America 337,572,949 108,096,800 251,290,489 74.4 132.5 15.7 Latin America 581,249,892 18,068,919 173,619,140 29.9 860.9 10.9 Australia and Oceania 34,384,384 7,620,480 20,783,419 60.4 172.7 1.3 The world 6,710,029,070 360,985,492 1,596,270,108 23.8 342.2 100.0 Source:, 2008 Users according to regions Internet penetration according to regions North Asia 657.2 America 74.4 Australia Europe 393.4 and Oceania 60.4 North Europe America 251.3 48.9 Latin Latin America America and 173.6 and Caribbean 29.9 Caribbean Middle East Africa 54.2 and Central Asia 23.3 Middle East and Central Asia 17.4 45.9 Asia Australia Africa 5.6 and Oceania 20.8 Million 100 200 300 400 500 600 700 800 World average 23.8 Source: InternetWorldStats –, 2008 % 10 20 30 40 50 60 70 80 Source: InternetWorldStats –, 2008 12 Strategic report IAB Poland
  • 7. Internet 2008: Polish Internet market Internet in Europe In Europe almost 400 million people have Internet the highest (Island – 90 percent, Norway – 86 per- connection, which means that nearly every second cent, Finland – 83 percent). In percentage terms (48.9 percent) resident of the continent uses the the lowest number of internet users lives in Albania network. The most privileged are residents of Scan- – 16 percent, Moldova – 16.2 percent and Vatican dinavia where the percentage of internet users is – 16.9 percent. Country Population Internet Penetration Growth Percentage estimated users (percentage 2000-2008 of Internet users in 2008 in 2008 of population) (in %) in Europe Albania 3,619,778 580,000 16.0 23,100.0 0.1 Andorra 82,627 58,900 71.3 1,078.0 0.0 Austria 8,205,533 5,601,700 68.3 166.7 1.4 Belarus 9,685,768 2,809,800 29.0 1,461.0 0.7 Belgium 10,403,951 7,006,400 67.3 250.3 1.8 Bosnia and Herzegovina 4,590,310 1,441,000 31.4 20,485.7 0.4 Bulgaria 7,262,675 2,368,000 32.6 450.7 0.6 Croatia 4,491,543 1,984,800 44.2 892.4 0.5 Cyprus 792,604 324,880 41.0 170.7 0.1 Czech Republic 10,220,911 4,991,300 48.8 399.1 1.3 Denmark 5,484,723 4,408,100 80.4 126.1 1.1 Estonia 1,307,605 854,600 65.4 133.1 0.2 Finland 5,244,749 4,353,142 83.0 125.9 1.1 France 62,150,775 40,858,353 65.7 380.7 10.4 Germany 82,369,548 55,221,183 67.0 130.1 14.0 Gibraltar 28,002 9,853 35.2 515.8 0.0 Greece 10,772,816 4,932,495 46.0 393.2 1.3 Hungary 9,930,915 5,215,400 52.5 629.4 1.3 Island 304,367 273,930 90.0 63.1 0.1 Ireland 4,156,119 2,410,549 58.0 207.5 0.6 Italy 58,145,321 28,388,926 48,8 115.1 7.2 Kosovo 1,794,984 377,000 21.0 0.0 0.1 Latvia 2,245,423 1,324,800 59.0 783.2 0.3 Liechtenstein 34,515 23,000 66.6 155.6 0.0 Lithuania 3,565,205 2,103,471 59.0 834.9 0.5 Luxemburg 486,006 363,900 74.9 263.9 0.1 Macedonia 2,061,315 906,979 44.0 2,923.3 0.2 Malta 403,532 95,000 23.5 137.5 0.0 Moldova 4,324,450 700,000 16.2 2,700.0 0.2 Monaco 32,835 20,000 60.9 185.7 0.0 Holland 16,645,313 13,791,800 82.9 253.6 3.5 Norway 4,644,457 3,993,400 86.0 81.5 1.0 Poland 38,500,696 20,020,362 52.0 615.0 5.1 Portugal 10,676,910 4,249,200 39.8 70.0 1.1 Romania 22,246,862 7,430,000 33.4 828.8 1.9 Russia 140,702,094 38,000,000 27.0 1,125.8 9.7 San Marino 29,973 15,600 52.0 524.0 0.0 Serbia 8,032,338 2,602,478 32.4 550.6 0.7 Slovakia 5,455,407 3,018,400 55.3 364.4 0.8 Slovenia 2,007,711 1,300,000 64.8 333.3 0.3 Spain 40,491,051 28,552,604 70.5 429.9 7.3 Sweden 9,045,389 7,295,200 80.7 80.2 1.9 Switzerland 7,581,520 5,762,700 76.0 170.0 1.5 Turkey 75,793,836 26,500,000 35.0 1,225.0 6.7 Ukraine 45,994,287 6,700,000 14.6 3,250.0 1.7 Great Britain 60,943,912 43,753,600 71.8 184.1 11.1 Vatican 549 93 16.9 0.0 0.0 Jointly 803,903,540 393,373,398 48.9 274.3 100.0 Source:, 2008 14 Strategic report IAB Poland
  • 8. Internet 2008: Polish Internet Market Internet access in Poland Internet range in Poland is still lower than in Western European countries. Nevertheless, compared to the European Union countries the number of Polish Internet users is growing very quickly. According to the Net Track research conducted by Millward Brown SMG/KRC company in December 2008 there were 13,750,500 Internet users of 15 years old or older, which gives us 45.6 percent of population. Megapanel PBI/Gemius research takes into account internet users of over 7 years old and in December 2008 there were 15,523,000 of such users. Internet access in Poland Internet users over 15 years old (NetTrack) information in the brackets – what percentage of population they are the percentage of Internet users of over 7 years old (Megapanel) 2000 2.2 (7.4%) 2001 4.6 (15.2%) 2002 5.8 (19.3%) 6.5 (21.7%) 2003 7.4 (24.5%) 2004 9 8.4 (28%) 2005 9.6 11.7 (38.7%) 2006 13.1 12.9 (42.9%) 2007 14.1 13.8 (45.6%) 2008 15.5 Million 5 10 15 20 Source: Millward Brown SMG/KRC NetTrack, XII 2000-2008, Megapanel PBI/Gemius, XII 2004-2008 16 Strategic report IAB Poland
  • 9. Internet access Internet access Internet users age in the households Internet is a medium used by young people. According to the European Commission data, Age is the most important factor that diversifies 48 percent of households in Poland are provided Internet users and people who do not use the with Internet access. It ranks Poland eighth from network. According to the research institute the end on the list of 27 countries. GfK Polonia, in the youngest age groups almost every person is connected to Internet. Internet access Percentage of Internet users in the households in individual age groups in Poland EU 27 countries 60 15-19 96 EU 25 countries 62 EU 15 countries 64 20-24 88 Holland 86 25-29 80 Island* 84 Norway 84 30-34 72 Sweden 84 35-39 68 Denmark 82 Luxembourg 80 40-44 64 Germany 75 Finland 45-49 48 72 Great Britain 71 50-54 38 Austria 69 France 62 55-59 33 Belgium* 60 60-64 22 Malta 59 Slovenia 59 65-69 10 Estonia 58 Slovakia 70-75 5 58 Ireland* 57 % 20 40 60 80 100 Latvia 53 Source: GfK Polonia Net Index, III 2009, population: Poles 15-75, n=950 Spain 51 Lithuania 51 Poland 48 Czech Republic 46 Portugal 46 Cyprus 43 Italy 42 Hungary* 38 Greece 31 Romania 30 Bulgaria 25 % 20 40 60 80 100 Source: European Commission, 2008. Research on age group of 16-74 years old *Data for 2007 August-September 2009 Special supplement to “Media & Marketing Polska” 17
  • 10. Internet 2008: Polish Internet market Internet users education Reasons for refraining A factor that diversifies Poles using and not from using the Internet using Internet is education. According to a very During the past two years the dynamics of Internet interesting research project completed by CBOS users’ growth has slowed down. The reasons that the centre and research team of portal, people examined by GUS gave to answer the question Internet is used by 85 percent of people with why they do not feel the need to get an Internet higher education and only 35 percent of people connection are very interesting. Year by year the with vocational education. number of persons that indicate financial issues is decreasing. At the end of 2008 only 29 percent of people have indicated that their reasons relate to too high costs of equipment, and 26 percent stated that the reason is too high access cost. Financial barrier is Polish Internet users education becoming less and less important reason, because of which 52 percent of Polish households are still not Incomplete primary 11 connected to the Internet. On the other hand, the number of persons that, as an answer to the lack of Primary 9 Internet connection, state: “I don’t feel the need” is Middle school growing. It is alarming that 45 percent of Poles openly 93 declare that they do not feel the need to get an Vocational 35 Internet access. Secondary, no A level certificate 52 Secondary, Reasons for refraining A level certificate 73 from using the Internet Secondary vocational, no A level certificate 53 2008 2007 2006 Secondary vocational, A level certificate 63 45 No need 41 Post-secondary 69 43 Higher holding a degree of engineer, bachelor, 85 29 Too expensive registered economist equipment 32 Higher holding MA or PhD 36 85 % 26 20 40 60 80 100 Too expensive access cost 31 Source: „A portrait of Internet user” CBOS and, 2008 35 23 Lack of skills 20 19 Internet 8 connection 8 somewhere else 8 Lack of technical 7 capabilities to connect 9 to the Internet 8 5 Aversion to Internet 3 3 Security 2 reasons 2 2 %* 10 20 30 40 50 Source: GUS, 2006, 2007, 2008, research on 16-74 years old *Total number of households without Internet access. More than one 18 Strategic report IAB Poland
  • 11. Internet access Broadband connection European Union developed countries. In 2008, Although straight majority of Polish Internet in relation to the number of connections of over users use the Internet via broadband connection 144 Kb/s type bandwidth, Poland has been ranked (according to the Net Track research, 90 percent the last among 27 EU countries. Poland’s of responders using Internet at home declare position has deteriorated; in 2007 our country having always-on Internet access), in terms of was overtaken by Greece and Romania. broadband Poland holds far position behind the Broadband connection June 2008 January 2009 Population 38,115,000 38,115,000 Number of households 13,337,040 13,337,040 Number of all broadband 4,878,148 5,534,549 Total penetration (in percentage) 12.80 14.50 Total penetration in households (in percentage) 36.60 41.50 Number of stationary broadband 4,065,118 4,440,774 Total penetration – stationary access (in percentage) 10.70 11.70 Total penetration in households (in percentage) 30.50 33.30 Mobile Internet (number of modems) 733,243 1,064,158 Mobile access (in percentage) 1.90 2.80 Penetration of number of modems in households (in percentage) 5.50 8.00 Source: Office of Electronic Communication, report „Retail market of broadband access”, VI 2008, I 2009 Broadband connection in European Union 2008 2007 37.4 37.2 35.8 40 33.1 32.5 30.7 35 28.8 27.3 28.3 27.5 26.6 26.3 26.2 30 24.6 24.3 23.8 23.9 23.6 22.3 21.7 20.8 21.1 20.8 20.5 25 20.0 19.5 19.1 18.8 18.1 18.4 18.2 16.8 16.3 15.8 16.1 16.0 15.8 15.9 20 15.5 15.7 15.3 14.8 13.9 12.7 12.2 11.6 11.6 11.1 11.2 10.7 15 9.5 9.6 9.6 10 6.8 6.9 6.6 6.8 5.7 5 % De ies en d in g um y ce nia ia lta d ia ain ly a ia us Po ic l y ce ia ia d ria ies Ho k nd ga an ar tvi Gr inlan ur lan lan Ita ar str Lu Brita en l an an ak ub Ma an pr ed ee lga tr to Sp rtu lla lgi ng bo ntr La rm nm un ov Au ov hu m Ire Po Cy ep Fr Es Gr Sw Be Bu Hu m ou F Ro Ge Sl Sl co Lit t hR ea xe c 15 27 ec EU Cz EU Source: European Commission, 2007, 2008 August-September 2009 Special supplement to “Media & Marketing Polska” 19
  • 12. Internet 2008: Polish Internet market Online consumers Education and professional status Education of Polish Internet users of 18+ Internet users in Poland are representing higher than average social and material status, University Primary Middle and incomplete primary school and most of the time they are well educated. Percentage of persons holding university degree 2.4% 2.8% is much higher than in the population and is 18.7 percent. Another 18.8 percent of users have postsecondary, college or incomplete 23% 15% university education. Moreover significant group of Internet users is a group of people with secondary and incomplete secondary education 23.2% 33.6% (33.9 percent). Comparing to 2007 there have been no changes to the internet users education. Education of Polish Internet users University Primary Middle and incomplete primary Postsecondary, Secondary Vocational college and incomplete and incomplete higher secondary 11.4% 5% Source: Megapanel PBI/Gemius, XII 2008 18.7% relation to the whole population. Among people 12.2% that are using Internet and are over 18 years old, 18.8% 23 percent declares holding university degree. Primary education has been indicated only by 33.9% 2 percent of internet users. Still the largest group of Polish Internet users includes pupils and students – 32.6 percent. Their range has dropped down by 2 percent points compared to 2007. More than 1/3 of users (33.6 Postsecondary Postsecondary, Secondary Vocati Vocational college and incomplete percent) belong to the group of people running own and incomplete secondary business (18.3 percent), specialists or persons with secondary freelance occupation (8 percent) as well as office Source: Megapanel PBI/Gemius, XII 2008 workers and administration workers (7.3 percent). Unemployed (3.2 percent) and qualified laborers (3.9 percent) are the smallest group of Polish Internet If we take a look at the group of adult Internet users. Retired and pensioners (4.3 percent) group is users exclusively, the structure of education slightly exceeding the group that includes senior is illustrating even more the differences in management (4 percent). 20 Strategic report IAB Poland
  • 13. Online consumers Professional status of Polish Internet users people at school. 30.2 percent of Internet users have refused to answer the question regarding Junior manager Qualified laborer Unemployed their earnings. Among the people that answered Other Pupil or student that question, the highest percentage (18.7 percent) declares income around 1,001-2,000 PLN. Among the remaining persons earning incomes, 7.8 percent declares their income to 18.3% oscillate between 2,001-3,000 PLN, 7.4 3.2% 32.6% percent earns up to 1,000 PLN and 4.4 3.9% percent, according to their declaration, earn 4% over 3,000 PLN. 4.3% Internet users’ incomes among 5.7% 8% persons declaring income 6.1% 6.7% 7.3% Over PLN 3,000 Up to PLN 1,000 11.4% Sales or services department employee Office, administration worker Specialist, freelance 19.3% Retired or pensioner Owner, facility Own business manager, director 20.4% Source: Megapanel PBI/Gemius, XII 2008 Nearly 1/3 (31.5 percent) of Polish Internet 48.9% users declares no earnings. It coincides with the structure of professional status of Internet users, where 32.6 percent of Internet users are Polish Internet users incomes From PLN 2,001 to 3,000 From PLN 1,001 to 2,000 Answer refused No income Up to 1000 PLN Source: Megapanel PBI/Gemius, XII 2008 Among Polish Internet users earning incomes, the highest percentage earns between 1,001- -2,000 PLN (48.9 percent). 20,4 percent of 30.2% 31.6% people are earning between 2,001-3,000 PLN. The group of people earning up to 1,000 PLN includes 19.3 percent of Polish users. 11.4 percent of people earn over 3,000 PLN monthly. 4.4% 7.4% 7.8% 18.7% Over PLN 3,000 From PLN 2,001 From PLN 1,00 to 3,000 to 2,000 Source: Megapanel PBI/Gemius, XII 2008 August-September 2009 Special supplement to “Media & Marketing Polska” 21
  • 14. Internet 2008: Polish Internet market Internet and gender Polish Internet users age The number of women among Polish Internet 55+ 7-14 15-24 users is nearly equal to the number of men. Similarly to the situation that happened a year and two years ago, in 2008 women were 7% 11.4% exceeding in the age group of 15-35 years old. Compared to the previous year, in 2008 women 11.6% to men ratio in the age group of 55+ has changed. In 2008 women were prevailing in that 15.6% 30.3% group (27.2 percent) compared to men (21.1 percent). In the remaining age groups men are more frequent. 24.1% Polish Internet users according to their gender (age brackets) Women Men 45-54 35-44 25-34 33.3 Source: Megapanel PBI/Gemius, XII 2008 35 Age structure of Internet users 27.4 27.2 30 The largest age group of Polish Internet users includes people between 15-24 years old 25 (30.3 percent). Second largest group are people 21.1 between 25-34 years old (24.1 percent). 17.3 20 The lowest percentage (7 percent) is over 55 years old. Internet users’ population 13.8 12.6 12.3 15 according to their age has not changed a lot in 10.8 10.2 2008, compared to the previous year. 9.3 10 Structure of Internet users according 4.6 to their residence (voivodships) 5 Podkarpackie Remaining Mazowieckie % Silesia Małopolskie 7 14 7-14 4 15 24 15-24 5 25 34 25-34 5 4 35 4 35-44 5 44 45 5 45-54 5 54 pow 55 pow. w Source: Megapanel PBI/Gemius, XII 2008 13.6% 23.4% Gender has been diversifying the time spent 13.3% on browsing through the websites representing 5.7% the individual subject categories. Men spend 5.2% 9.9% almost twice as much time on browsing through sport websites, they dedicate more time to 5.8% business services, news or motorization. Women 6.7% 7.6% 8.7% in majority spend time in community websites and, naturally, browse through the services dedicated to women. Łódzkie Lower Silesia Wielkopolskie Kujawsko-pomorskie Pomorskie Source: Megapanel PBI/Gemius, XII 2008 22 Strategic report IAB Poland
  • 15. Online consumers Structure of Internet users according to their residence (town/village) Town Town Village Town from 200,000 above 500,000 up to 20,000 to 500,000 o 16.1% 27.9% 12.3% 8.8% 13.3% 10.2% 11.4% Town Town Town from 100,000 from 50,000 from 20,000 to 200,000 to 100,000 to 50,000 Source: Megapanel PBI/Gemius XII 2008 Place of residence Polish Internet is still a medium of large Despite of definitely better access to the agglomerations and areas of well developed Internet in the biggest cities and telecommunication structure. The process of agglomerations, the largest number of Internet geographical diversification of Internet users is users are, irrespective of place of residence, more and more noticeable. persons living in the villages (27.9 percent) and The region with the largest number of internet in the towns of above 500,000 residents users is Mazowieckie voivodship (13.6 percent), (16.1 percent), as well as up to 20,000 next positions are held by the following regions: residents (13.9 percent). Silesia (13.3 percent), Małopolska (9.9 percent), Wielkopolska (8.7 percent) and Lower Silesia (7.6 percent). August-September 2009 Special supplement to “Media & Marketing Polska” 23
  • 16. Internet 2008: Polish Internet market Activity of Polish Internet users (2008) Month Average number Average time Average time of hits per one user spent by user of hit January 2823.49 45:32:37 00:00:58 February 2757.17 41:30:50 00:00:54 March 2987.10 42:35:25 00:00:51 April 2888.87 39:35:53 00:00:49 May 2759.40 37:44:41 00:00:49 June 2642.77 37:14:36 00:00:51 July 2525.43 37:02:46 00:00:53 August 2696.29 39:30:31 00:00:53 September 2641.65 39:14:44 00:00:53 October 2834.02 42:08:09 00:00:54 November 2915.32 44:20:20 00:00:55 December 3043.18 46:28:52 00:00:55 Source: Megapanel PBI/Gemius, XII 2008 Activity of Polish Internet users users’ activity: the highest growth of hits and time spent in the network falls down in Apart from the number of Internet users, also January, then the activity continues to grow the time spent in the network by an average slightly and in the second quarter of the year, user is increasing in Poland. especially during the holiday time drops Basing on the data collected during the significantly, to reach the level of the best research conducted by Megapanel PBI/Gemius months of the previous year. In autumn the at the end of 2008, every Polish Internet user activity of average Internet user is increasing spent on average 46 hours and 29 minutes again, reaching the level of the beginning of the monthly (December 2008), which indicates the year, and then in December and January it is growth by 8 hours and 17 minutes, compared increasing even more, reaching new, higher level to the previous year. Significant growth has been of reference for the next year. Despite of the noticed in the hits made by one Internet user, growth in number of hits, the average time of from 2,395 in December 2007 to 3,043 in December 2008. Every year we can notice a certain regularity in the changes of Internet Polish Internet users experience Over 5 years Up to 6 months From 6 months to 1 year Internet used by men and women 3.9% Average time per user (hrs:min:sec) 7.0% Period Women Men XII 2006 26:29:42 30:14:44 33.5% XII 2007 38:12:20 38:11:28 12.6% XII 2008 46:28:29 46:29:15 Source: Megapanel PBI/Gemius, XII 2006, XII 2007, XII 2008 Average number of hits per user 43% Period Women Men XII 2006 1585.48 1853.64 XII 2007 2380.94 2409.86 XII 2008 3046.98 3039.48 From 2 to 5 years From 1 to 2 years Source: Megapanel PBI/Gemius, XII 2006, 2007, 2008 Source: Megapanel PBI/Gemius, XII 2008 24 Strategic report IAB Poland
  • 17. Online consumers one hit has not dropped down – it is still under used more frequently. At the end of 2008 71.3 one minute. percent people used internet everyday or almost The group of people experienced in using the everyday, which indicates the growth by 4.2 percent Internet is growing. compared to the previous year. 18.6 percent of users declare that they use internet few times In 2007, 71 percent of Internet users had been a week, and further 6 percent uses the network using it for more than 2 years; in 2008 this once a week. 4.1 percent connects to the network percentage has grown by 5 percent. few times a month. During 2007 the differences in the intensity of Internet use between men and women have became even. This tendency has been maintained during Activity of the Internet users according to their age 2008. In December 2008, both men and women Real users Hits have spent nearly 46.5 hours on the Internet. It has increased by over 8.5 hours for both sexes, 40 compared to the previous year. Also the average 39.6 number of hits for both sexes is leveled and is 35 30.1 slightly over 3 thousands. Growth of activity among Polish Internet users 30 24.3 23.8 translates also into the fact that the Internet is 25 20 15.6 Frequency of Internet using 14 11.5 11.5 15 More or less once a week One or few times a month 8.7 9 10 7 4.8 4.1% 5 6% % 7 14 7-14 15 24 15-24 5 25 34 25-34 5 4 35 44 35-44 54 45 54 45-54 55 pow 55 pow. 18.6% Source: Megapanel PBI/Gemius, XII 2008 71.3% The activity of Internet users is influenced by their age. The most active group (counted by the hits generated) includes persons between 15-24 Few times a week Every day or almost every day years old and 25-34 years old. The least active are people between 7-14 years old and over 55 years Source: Megapanel PBI/Gemius, XII 2008 old. August-September 2009 Special supplement to “Media & Marketing Polska” 25
  • 18. Internet 2008: Polish Internet market Websites In 2008 the leader in terms of range has been Over 50 percent range among Internet users has Google, visited by nearly 86 percent of Polish been reached by auction service (ca. Internet users monthly (slightly less in the middle 7.8 million of users monthly). Interia portal which in of the year, a little bit more at the end of the 2006 has been visited by almost half of the internet year) – in December 2008 it has translated into users at the end of 2008 had 48 percent range. over 13.3 million of users. Consecutive positions Slightly behind was ranked At the beginning of are occupied by two biggest portals: the year website was visited by more than (monthly range of ca. 65 percent, 9.5 million 6.3 million of users (44 percent range), at the end users in December) and Wirtualna Polska (ca. 55 of the year the number of users exceeded 6.9 percent range, 8.6 million users in December). million, which means that the range reached the Both portals at the end of the year have noted level of 44.6 percent. lower percentage of Internet users in comparison to the beginning of the year – drop noted in range First ten places of websites of the highest range by Onet has reached – 5.9 percentage point and at the end of 2008 include also YouTube and by Wirtualna Polska – 0.8 percentage point Wikipedia. (December 2008 compared to December 2007). has noted the growth in range by In the first twenty places the highest drop in 18 percent rising from the 11th position in range has been noted by Group, by December 2007 to the 4th position a year later. 6.6 percentage point. According to the number of hits and average time Top 20 websites according to the number of users per user, has been definitely the leader of Megapanel in 2008. In December, number 15 of hits reached 11.8 billion, and average time spent in this website was over 14 hours. Allegro, having 12 hits number of 4.5 billion, has been placed on the second position with a clear gap to Nasza--klasa. 9 Further positions have been taken by Google – 3.7 billion hits and Onet – 3.5 billion hits. Last position 6 in the first ten was taken by Wirtualna Polska having 2.3 billion hits. Sixth position is occupied by 3 community service, which lost the fifth position. Seventh and eighth position includes two mln I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 portals – and Interia has noted drop in number of hits by ca. 650 million, and O2 has Google Wirtualna Polska increased number of hits by 250 million, catching up with Interia. The leading ten includes also Microsoft Gadu-Gadu Group and – both below 1 billion hits Group monthly. Two community services have fallen out of MSN IDG Group Group the first ten positions according to the number of Source: Megapanel PBI/Gemius, I-XII hits, and 26 Strategic report IAB Poland
  • 19. Internet 2008: Polish Internet market Websites ranking according Significant factor influencing the popularity of to websites monthly websites is the time spent on browsing through them. In December 2008 the average Internet Item Name Range (in %) Users Site-centric user has been spending on average 46.5 h audit monthly, which gives us 1.5 h daily. 1. Google 85.96 13,343,498 Internet users in Poland spend the biggest 2. 61.46 9,541,016 yes 3. Wirtualna Polska 55.21 8,571,114 yes amount of time on Nasza Klasa – 16.65 percent, 4. 54.18 8,410,738 yes which has overtaken Google search engine 5. 52.24 8,108,961 (12.22 percent share in the total time). The 6. 48.30 7,497,929 yes further positions are taken by Polish portals, 7. 47.71 7,405,572 yes Allegro, YouTube and Fotka. Almost half of the 8. 44.62 6,926,703 yes 9. 44.51 6,910,240 websites in the second ten positions are the 10. 39.09 6,068,858 game services (,,, 11. Microsoft 32.22 5,002,317, 12. Grupa Gadu-Gadu 27.28 4,235,243 yes 13. 25.32 3,930,437 Websites according to monthly hits 14. 22.29 3,460,822 yes 15. Grupa 21.38 3,318,462 Item Name Number of hits Average time Site-centric audit 16. 19.93 3,093,778 per user 17. MSN 19.47 3,022,725 1. 11,846,191,298 14:05:49 yes 18. 19.45 3,019,759 yes 2. 4,476,196,601 04:57:46 19. Grupa IDG 19.39 3,010,576 yes 3. Google 3,668,185,303 06:31:24 20. Grupa 18.92 2,936,782 4. 3,546,795,711 06:25:39 yes 5. Wirtualna Polska 2,264,811,029 05:02:48 yes Source: Megapanel PBI/Gemius, XII 2008 r. 6. Grupa 1,588,348,837 04:11:31 7. 1,176,891,256 03:33:27 yes 8. 1,172,830,343 04:06:17 yes Range of individual instant messengers during 9. 969,906,608 04:10:31 2008 has not changed a lot. First three 10. 894,978,743 03:51:59 positions haven’t changed, compared to 2008. First position, according to popularity, has been Source: Megapanel PBI/Gemius, XII 2008 taken by Gadu-Gadu, with the range that is Websites according to time slightly lower than in the previous year (37 percent), second position is occupied by Skype Item Name Time (hrs) Average time Site-centric audit with almost 27 percent range and the third is per user Tlen with noticeable gap to overcome to reach 1. 118,565,909.10 14:05:49 yes 2. Google 87,042,760.63 06:31:24 the first two, having over 4 percent range. 3. 61,324,395.89 06:25:39 yes Fourth and fifth positions have been swapped 4. Wirtualna Polska 43,254,899.30 05:02:48 yes between MSN messenger (2.89 percent range) 5. 40,241,911.05 04:57:46 6. 30,398,220.14 04:06:17 yes 7. 28,852,234.37 04:10:31 Instant messengers according to range 8. 26,674,722.68 03:33:27 yes 9. Grupa 13,910,930.64 04:11:31 Item Name Range Real Site-centric 10. 12,430,351.91 01:47:40 yes (in %) users audyt 11. 11,147,079.68 03:36:11 1. Gadu-Gadu 37.22 5,778,532 yes 12. 7,537,188.56 08:11:11 2. Skype 26.68 4,142,366 13. 6,614,837.90 03:51:59 3. 4.15 644,327 yes 14. 6,260,302.31 03:35:24 4. MSN Messenger 2.89 449,120 15. 5,300,965.20 06:53:03 yes 5. AQQ 0.42 65,864 yes 16 4,742,058.29 00:46:53 6. Spik 0.19 29,513 yes 17. OtoMoto 4,562,043.81 01:41:55 7. Konnekt 0.16 24,422 18. 3,536,641.30 07:39:12 8. Xfire 0.15 23,171 19. MSN 3,332,336.61 01:06:09 9. GoogleTalk 0.14 21,929 20. 3,260,762.63 02:36:36 10. ICQ 0.12 18,530 Source: Megapanel PBI/Gemius, XII 2008 Source: Megapanel PBI/Gemius, XII 2008 28 Strategic report IAB Poland
  • 20. Websites and AQQ (0.42 percent range). Sixth and Share in total time spent on the Internet seventh – also without any changes, compared to 2007 – is occupied by Spik and Konekt IM. ICQ has dropped down from eighth to tenth position. Now the eighth is Xfire instant messenger ahead 16.6 of Google Talk (ninth position). Google 12.2 In the Megapanel PBI/Gemius research there 8.6 are 13 subject categories, to which individual web pages are classified to. The following are Wirtualna Polska 6.1 those categories: 5.6 – News, commentary, media; – Culture and entertainment; 4.3 – Motorization; 4.1 – Business, finance, law; – Construction industry and real estate; 3.7 – Education; Grupa 2.0 – Sport; – Lifestyle; 1.7 – Travel; – Modern technologies; 1.6 – Jobs; 1.1 – Communities; – Maps and location finders. 0.9 0.9 0.7 0.7 OtoMoto 0.6 0.5 MSN 0.5 0.5 % 5 10 15 20 Source: Megapanel PBI/Gemius, XII 2008. August-September 2009 Special supplement to “Media & Marketing Polska” 29
  • 21. Internet 2008: Polish Internet market Internet users are mostly interested in the range, reaching ca. 70 percent range, belongs Culture and entertainment category. Every to Modern technologies and Lifestyle, and ca. month those pages are visited by ca. 90 percent 60 percent to Education and Business, finances, of users. The biggest range (nearly 98 percent) law. 40-50 percent of Internet users visit Sport, was noted in this category at the beginning of Motorization and Travel pages. The last two 2008. About 80 percent of Internet users visit categories Jobs and Construction industry and usually sites representing Communities and real estate have the range of below 30 percent. News, commentary and media category. Average Subject categories according to the range 100 80 60 40 % I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 Culture Communities Modern News, and entertainment technologies commentary, media Lifestyle Education Business, Sport finances, law Motorization Maps and Tourism Construction industry location finders and real estate Jobs Source: Megapanel PBI/Gemius, I-XII 2008 30 Strategic report IAB Poland
  • 22. Websites The leader of the Culture and entertainment category according to the range Culture and entertainment 50 category is YouTube, reaching 45 percent 40 of users. Second position has been taken by O2 service, 30 which is now equal to Onet. In December, 20 both services have noted the range of slightly over 32 % I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 percent. Forth was – entertainment services – entertainment services Wirtualna Polska, having 27 percent Wirtualna Polska – culture and entertainment range and fifth is Source: Megapanel PBI/Gemius, I-XII 2008 service. Communities’ Communities category according to the range category’s leader is This 60 service is visited by 50 every second user, or more. The growing 40 trend continues, although it is not as 30 spectacular as in the 20 previous year. The remaining services in 10 this category maintain the level of below % I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 30 percent. The range – communities – communities of the whole Communities category Wirtualna Polska – communities Gadu-Gadu Group – community services has dropped down Source: Megapanel PBI/Gemius, I-XII 2008 from over 86 percent at the beginning of the year to 79 percent in December 2008. August-September 2009 Special supplement to “Media & Marketing Polska” 31
  • 23. Internet 2008: Polish Internet market Modern Technologies subject category according to the range The whole category of Modern technologies 25 notes range on the level of 70 percent 20 every month. Within a year IDG publishing company has lost the 15 leading position and came to the third 10 position with 18 percent range. Interia was placed in % I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 the first position with – modern technologies IDG – modern technologies the range of nearly 21 percent, overtaking Wirtualna Polska – modern technologies ource: Megapanel PBI/Gemius, I-XII 2008 (second position in December), which noted the highest growth within the year. News, commentary, media category according to the range First position in the category News, 35 commentary and media 30 has been taken by Onet, which has noted 25 a drop during the year 20 (by ca. few percentage points), and in 15 December its range 10 was over 28 percent. Second position has 5 been taken by % I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 Wirtualna Polska, having the range of – news Wirtualna Polska – news – news 24 percent. Third one – news Stations TVN – is with range of nearly 20 percent. Source: Megapanel PBI/Gemius, I-XII 2008 Further position belongs to Interia – range of almost 17 percent. Last, fifth is, which range has grown by nearly 7 percentage points. 32 Strategic report IAB Poland
  • 24. Websites Lifestyle category Lifestyle subject category according to the range took the fifth position in the ranking of 2008, 30 while a year ago it was third. Websites in this 25 category have been visited by nearly 70 percent of Polish 20 Internet users. First two positions 15 interchangeably during the year were occupied by Onet and O2, and in % I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 December 2008 they – lifestyle – lifestyle Wirtualna Polska – lifestyle have leveled their ranges to the level of – lifestyle – lifestyle 23 percent. Third one Source Megapanel PBI/Gemius, I-XII 2008 was Wirtualna Polska. Fourth and fifth were Gazeta and Interia. Education category Education subject category according to the range has overtaken Business, finances 50 and law. During the school year, the 40 number of visits to education services is 30 balanced and continues to be 20 around 57 percent. During holiday time 10 there is a drop down by several percentage % I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 points. The first – education services position has been taken by Wikipedia with 40 percent Source: Megapanel PBI/Gemius, I-XII 2008 range, further are Onet and (with more than 20 percentage points of gap to the leader), which have leveled websites is noticeable their range in – Onet is ranked December 2008 to higher by nearly 15 percent. During 10 percentage points. the holiday time Fourth and fifth are a significant gap and between those two August-September 2009 Special supplement to “Media & Marketing Polska” 33
  • 25. Internet 2008: Polish Internet market Business, finances, law subject category according to the range Business, finances and law category has 20 been visited by more than half of Polish Internet users 15 (December 2008 – 51 percent). First 10 position is still occupied by, having 15 percent 5 range. Second is (nearly % I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 12 percent range). Third and fourth are – business services Wirtualna Polska – business services – business services Wirtualna Polska and – business services financial service of Fifth is Source: Megapanel PBI/Gemius, I-XII 2008 Sport subject category according to the range Clearly, in this category the sport 30 events that took place in 2008 had influenced 25 that category. During 20 the months of Euro championships and 15 olympic games, we could notice the 10 growth. First three 5 positions belong to the portals. First is Onet % I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 with 17 percent range, second Wirtualna Polska – sport Wirtualna Polska – sport – sport (13 percent) and third – sport Interia (7 percent). Fourth and fifth are Source: Megapanel PBI/Gemius, I-XII 2008 and, having the range of 6 percent. 34 Strategic report IAB Poland
  • 26. Websites Motorization Motorization subject category according to the range services have been visited in December 25 2008 by 42 percent of Polish Internet 20 users. The leader is, which in 15 2008 had over 17 percent range. 10 Further positions have been taken by 5 websites that had ca. 6 percentage points % I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 of gap to the first OtoMoto position. Second was – motorization services – motorization services Onet with 11 percent Grupa Gratka – motorization services – motorization services range, third Interia. Source: Megapanel PBI/Gemius, I-XII 2008 Group and have got equal range of 5 percent. Maps and location finders subject category according to the range Created in 2008, new subject category 25 spreads its range to over 35 percent of 20 Polish Internet users. First position has been 15 occupied by Google maps, which noted 10 the growth by 15 percentage points 5 in July. Second is Onet with its Zumi % I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 localization finder. Both Google – maps those services are – localization – maps leading and the gap finder between them and the Source: Megapanel PBI/Gemius, I-XII 2008 rest of the services is significant. comes in third position, fourth and fifth. August-September 2009 Special supplement to “Media & Marketing Polska” 35
  • 27. Internet 2008: Polish Internet market Number of visits to Travel subject category according to the range this category is grow- 15 ing seasonally. During holidays the range in- 12 creases from 37 per- cent to 47 percent. 9 First position has been taken by Onet, having 6 14 percent range in July 2008. The remain- 3 ing websites do not ex- ceed 10 percent range. % Second is Wirtualna I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 Polska (5 percent), – travel services Wirtualna Polska Grupa third Group – travel services (3 percent). Successive – travel services Grupa SA positions have been oc- Source: Megapanel PBI/Gemius, I-XII 2008 cupied by Interia (fourth) and Travel- Group (fifth). Construction industry and real estate subject category according to the range Construction and properties category 8 has exchanged the po- 7 sitions with Job cate- gory. This might be re- 6 lated to the economic 5 crisis – in 2008 the in- 4 ternet users have been 3 looking for job offers more often than prop- 2 erty offers. First posi- 1 tion has been taken by % I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 with nearly 7 percent range. Seond Murator Group OtoDom – construction industry – construction industry is Murator Group, and real estate and real estate which has overtaken Group Group – construction industry, in November Source: Megapanel PBI/Gemius, I-XII 2008 and in December they had equal ranges. The following is an analogi- cal situation: OtoDom levels with Group in December, reaching nearly 3 per- cent range. Fifth in this subject category is Group. 36 Strategic report IAB Poland
  • 28. Websites A leader in Job subject category according to the range this case is, second position 15 has been taken by, which was 12 visited by 10 percent of users in the middle 9 of the year (this portal was a leader in this 6 category at that time). Further posi- 3 tions have been taken by Wirtualna Polska % I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 (third), – jobs – jobs Wirtualna Polska – jobs service (fourth) and (fifth). – jobs Source: Megapanel PBI/Gemius, I-XII 2008 August-September 2009 Special supplement to “Media & Marketing Polska” 37
  • 29. Internet 2008: Polish Internet market Internet communities Community services are no doubt one of the Internet users become more experienced most visible development directions of Internet – quickly get bored of currently used solutions. in the recent years. The reasons for that are As a natural consequence new, more advanced several. We have to remember that the network ways of using the network are searched. itself has not changed. New functionality Significant factor allowing to understand the solutions and modern technologies constantly phenomena of network communities is arise that enhance the capabilities of WebPages progressing segmentation of services offered in creators. More and more frequently, especially in the network. Current community services are case of more advanced community services, we directed at different consumer groups, starting do not deal with static WWW but with from youngsters (e.g. ePuls,, applications and websites using advanced professionals (e.g.,, technologies. Apart from the technical aspects local communities (e.g., up to persons that influence the community development we looking for tools to start and keep in contact have to mention first and foremost persons with family, friends and colleges such as Nasza- using them to broadly understood,,,, communication. Polish commercial Internet It is the need to continue the is more than 10 years old, and therefore friendship that is indicated as a reason to – network users are generally not newcomers. open and keep an account in community service Monthly range of chosen services 60 50 40 30 20 10 % 6 IX 2006 6 X 2006 6 XI 2006 6 XII 2006 7 I 2007 7 II 2007 7 III 2007 7 IV 2007 7 V 2007 7 VI 2007 7 VII 2007 7 VIII 2007 7 IX 2007 7 X 2007 7 XI 2007 7 XII 2007 8 I 2008 II 2008 8 8 III 2008 8 IV 2008 V 2008 8 8 VI 2008 VII 2008 8 VIII 2008 8 8 IX 2008 X 2008 8 8 XI 2008 XII 2008 8 Nasza Klasa Fotka Moja Generacja GG Grono Ajo Epuls GoldenLine Mixer Source: Megapanel PBI/Gemius, IX 2006 – XII 2008 38 Strategic report IAB Poland
  • 30. Internet communities – 57 percent of users declare the above (D-Link PBI/Gemius research conducted in November Technology Trend, May 2008). 2008, definitely the “youngest” communities are Similarly import reason is curiosity (52 percent). (70 percent of users are below 24 years Moreover the key motivations include: intention to old), (69 percent) and kill the time (26 percent), starting new friendships (63 percent). Older consumers prefer (25 percent), and willingness to discuss interesting (71 percent of users are over 25 years old), subjects (18 percent). (66 percent) and Although Internet communities are currently (61 percent). Similar relations can be found also associated with services that represent the in other variables, for instance in education type of social networking, to the website structure of users of individual websites. category that gathers real communities (social Websites dominated by younger Internet users media) we have to include also: blogs (e.g.: have high share of persons that have not, Blog., Photo, graduated from secondary school, and on the,, microblogs other hand – services addressed at managers (e.g.:,,, Internet and persons already working have over average forums (e.g., websites share in consumers’ groups with higher dedicated to sharing videos or photos (e.g. education.,, civil journalism Describing the so called Internet websites (e.g.:,, communities, we have to bear in mind the fact, Interia, community recommendations that because of the established name of this (e.g.:,, or type of websites, it is commonly believed that community knowledge bases (e.g. the users of such websites meet only in the Growing popularity of community services virtual reality. While in reality Internet profiles results in the fact that they are highly are used to maintain the communication recognizable brands for the average consumers. between persons that know each other very well Brands of such services as, – most frequently they are family members, or are widely recognized by friends and colleagues. Hence, users of Internet users – the spontaneous awareness of community services are deeply engaged and those portals is 90 percent, 48 percent and involved. Main variables indicating the 26 percent respectively (GUS, Millward Brown overactivity of Internet users towards the SMG/KRC, D-LinkTechnology Trend, May 2008). websites representing traditional character are However we have to remember that high – higher number of hits and longer time spent on recognizability of the most popular services is a browsing through the site. Usually the online result of their universal character. Community users do not limit to using only one community platforms addressed at particular groups of service. Constant pattern among persons consumers (youngsters, business) reach professionally active is having at least two similarly high indicators within their destination accounts used for professional and private aims. groups. Users using these new tools do not limit Large selection and growing popularity of themselves to opening the profiles. Currently Internet communities result in the fact that online communities are used for both individual services representing this type differ multidirectional communication that uses significantly. Usualy it is reflected in the mechanisms offered by website developers, as demographic structure of users. Almost all well as applications not connected with the Polish community services maintain similar, close service itself, for instance widgets. General to average, gender structure, although services characteristic of community trend in the that are the most dominated by women are: network is considerable segmentation of tools (61 percent of users are women) and ways of communicating with people. The and (56 percent). Much more following are in use: mail systems inside the significant differences in users’ profiles relate to community platforms, mechanisms of the age structure. According to the Megapanel notifications and statuses, opportunity to August-September 2009 Special supplement to “Media & Marketing Polska” 39
  • 31. Internet 2008: Polish Internet market personalize the profile site and its individual G The connectors – they have used social elements, exchanging photographs and network services for a relatively short time commenting, instant messengers and chat and are closely bound together with their rooms, friends’ groups or blogs on profiles. friends, they rely, more often than other Using individual website functionalities segments, on their opinion but present their depends, to a large extent, on the degree of point of view just as eagerly. They make up 18 Internet training of individual users and as percent of all users. a result the knowledge and approval of particular G The see and be seen – they use social network tools. The variables described above such as services mainly for self-presentation, they are gender, age or education, together with an familiar with social mechanisms and tools. It is internaut’s experience, make up a significant a group comprising 14 percent of all users. element in comprehending his behavior and G The explorers – they have used social network attitude. Among other things, this is why services for a relatively short time – the vast a distinct segmentation of social websites users majority for less than 1 year. Their profiles are on the basis of their activity in the Web takes natural part of their lives. They make up place. According to the Never Ending Friending approximately 25 percent of all users. survey carried out by TNS in cooperation with G The rookies – they have just begun using social MySpace and Isobar & Carat, those internauts network services and are usually reluctant to using social network services can be divided into make virtual friends – they prefer to 6 basic segments: concentrate on keeping in touch with a G The pros – they are experienced and demanding current group of friends. This group makes up users of social network services over the 25 percent of all users. Internet, characterized by the high level of G The spectators – they are passive users who commitment and activity while their profiles have logged in but not filled their available form a significant part of their private lives. space with photos or comments. They make up 20 percent of all users. High range Rising cadence of SN activity of SN using The pros The see and be seen Connectors The explorers Small emotional Big emotional attachment attachment The rookies The spectators Low range of SN activity 40 Strategic report IAB Poland
  • 32. Polish hosting and domain registration market Polish hosting and domain registration market The market of hosting services and domain Primary market registration has been analysed in an IAB Polska In the Polish market only precise statistical report for the first time. In connection with this data regarding the Polish domain registration are set of market related data from 2008, its known. In the case of other domain types (global, general picture will be sketched. European), only a general number of registrations made (for global domains this number is Domain registration in Poland imprecise) is known while the remaining data (e.g. On the Polish market, registration of concerning the registration of particular domain practically all domain types is possible, ranging types by a given service provider) are estimated. from global domains (e.g.: .com, .net, .info) This is why the statistical data given below will through national domains (e.g.: .pl for Poland, .de mainly concern the Polish domain registration as for Germany, .fr for France) to regional and well as regional and functional domains in the .pl functional domains in the .pl domain (e.g., domain. In its communiqué at the turn of,, From 1990 it has been 2008/2009, NetArt said to have served 500,000 NASK, namely the Scientific Academic Computer domains. The number concerned all types of Network, which has been running the national domains operated by it, the Polish ones as well as registry of Internet names. Being the .pl domain global and European. Other domain registering operator, NASK allows the final clients companies do not present precise numbers (companies, institutions, private persons) regarding the operated domains. Among other to register Polish domains for a one year things, on the basis of the data published by subscription period by the agency of a partner NetArt, it has been estimated that the total network, i.e. the domain registrars. The Polish number of all domains operated by the national domain registrars, such as, or registry is approximately 1,700,000 (Polish, also participate in the registration of other domains – 1,300,000, global domains – 280,000, domain types. For instance, as regards European European domains – 170,000). The 2008 data .eu domains, they are registered for their final shows that the Polish registration market of clients by EURiD, the European Registry of Internet domains has grown by about 700,000 Internet Domain Names. domains, hence over a 40 percent increase within a year. Domains can be registered in the primary market, hence directly by NASK or by the agency There are two unquestionable leaders on the of domain registries, for instance, Polish domain market that comprise about 50, Domain purchasing can also take percent of it: NetArt ( and place in the secondary market, namely through ( There exist around directly repurchasing a service from a current 100 other companies in Poland that perform the subscriber, by getting in touch with him in function of Internet domain registration but only person or using auction services like 9 of them hold more than 1 percent shares in or It is also possible to buy domain the market. The percentage share in the market options or a domain itself in a domain is calculated as two models: one being the dropcatching service. number of subscribers operated by a given August-September 2009 Special supplement to „Media & Marketing Polska” 41
  • 33. Internet 2008: Polish Internet market registrar, the other being the number of .pl Prices of Polish domains in 2008 were stable. domains operated by it. It is crucial to remember Those of the .pl domains, offered to the final that a subscriber is the final client, hence the clients by the registrars for extending the first model is a statistic showing the market subscription period oscillated between 80 situation much most measurably. and 100 PLN. Additionally, 2008 was abound in promotions led by the domain registrars who Statistics concerning the number lowered the price of a single domain registration of subscribers served for the first subscription period to less than 25 10 PLN (e.g. offered domains for 0 PLN, 23 for 7 gr, for 90 gr). On the Consulting Service 9 basis of the number of domains registered, the height of a renewal indicator as well as the mean 8 price of domain extension, it can be estimated Domain Maker 6 that the Polish market is worth between Dinfo 5 80,000,000 to 100,000,000 PLN. 3 Active24 2 Secondary market In the past few years there took place many Key Systems 1 transactions on the domain secondary market % 5 10 15 20 25 that have affected the formation of the image of Source:, 2008 an Internet address as a valuable investment. It is just enough to mention having sold the Statistics concerning the number domain for about 150 000 PLN or the of domains served domain for about 200,000 PLN in 27 2007 (unofficial data). Also in 2008, there were domain transactions amounting to high sums: 24 for USD 45,000, for EUR 25,000 9 or for EUR 2,000 (source: auction Consulting Service 8 services, In these cases, the Domain Maker 4 domain prices are known as the transactions Dinfo 4 were carried out at an open auction. However, one should remember that the secondary market Active24 3 holds a smaller share in the entire domain market Michau Enterprises 3 valuation. 2 % 5 10 15 20 25 30 Domain registration worldwide Source:, 2008 The number of all domains registered all over According the „Domains of 2008” report by the world is difficult to determine, all global, NASK (available online at, the year national, functional and regional domains of 2008 ended up with 1,300,000 .pl domains particular countries together with so-called registered. In relation to the previous year, continental domains (e.g. .eu, .asia) are involved. a 73.5 percent rise in the registration was According to, at the end observed. This was one of the most dynamic of 2008, there were about 104,000,000 rises in the number of registration of all national registered global domains. However, during the domains worldwide. In the same period the 3-year period, from the moment when it was French domain, for instance, observed first possible to register domains, until the end a 33 percent increase (Source: of the previous year, the number of European while the Spanish a 34 percent one (source: domains registered was about 3,000,000. The This dynamism was confirmed by most common type of registered domains are the registration of further new .pl domains in .com domains that exceed 78,000,000. Among 2008, which remained to be 1,800-2,000 daily. national domains, the most abundant ones are 42 Strategic report IAB Poland
  • 34. Internet 2008: Polish Internet Market German .de domains which exceed 12,500,000. tested until the end of 2008, out of which 8,700 With respect to national domain registrations, names were registered for a one-year Poland ranks 5th among European countries and subscription period after the testing. The is preceded only by Germany (12,500,000 .de efficiency of DNT has remained 9 percent and domains), Great Britain (over 7,300,000 .uk the quarterly number of tests has been forecast domains), the Netherlands (over 3,000,000 .nl to be 13,000. The testing service is offered by domains) and Italy (1,600,000 .it domains). numerous registrars and provided by two Poland ranks 10th in the world among those dominating subjects: (64 percent of DNT countries with the greatest number of national market) and Michau Enterprises (20 percent). domains registered. WLS’s popularity has increased and this is Polish market trends connected with the lowering of its price since According to NASK, the dynamism of the the beginning of 2008. The service is based on increasing number of registered domains will a paid domain reservation. The subject that has oscillate between 9 and 10 percent quarterly in purchased a domain option becomes its 2009. The daily number of new domain subscriber once the current subscriber has not registrations next year has been forecast to be extended the domain for another subscription in the 1,800-2,000 range and the 70 percent period. In this way over 15,000 domains were degree of extension of the existing registered registered in 2008. Based on the number of services for the following subscription period has options founded in 2008, NASK has predicted been estimated (source: NASK „Domeny 2008” that around 32,000 WLS options will be bought report, in 2009. Just like in the case of DNT, domain The .pl domain is the most commonly options are sold by numerous service providers registered domain in Poland, however very in Poland and the greatest shares are held by popular are also: the .com domain (around two subjects: Michau Enterprises (59 percent 150,000 registrations among the 270,000 of the market) and (15 percent). global domains registered in Poland), the .eu domain (175,000) and functional domains Hosting in Poland belonging to the .pl domain: (around The hosting service is based on making free 250,000 registrations), (around 27,000), disk space on a WWW server and its (around 19,000) and (around administration tools available to clients. Within 15,000). As regards the decreasing popularity the confines of the available disk space, the of free addresses with the .pl extension, there server ensures maintenance of a company WWW has been more interest in Polish regional page, e-mail address, databases, maintenance of domains. The most commonly registered regional many domains and convenient management of domains in the .pl domain: and services. It is a necessary backup for every recorded a 40 and 36 percent growth in the WWW page functioning. The number of hosting registration number in 2009, respectively. services in Poland is not known and neither is the number of companies providing such Extra services to domain services. The number of hosting services in registration Poland can be estimated on the basis of NASK offers two extra services to the .pl websites functioning over the Internet together domains registered and these comprise: the with the number of domains registered. Wait List Service (WLS or the so-called domain However, the number is not measurable enough option) and the Domain Name Testing (DNT). to determine, for the sake of the present report. DNT service activated in September 2007 It is assumed that the hosting service market is allows for testing a chosen domain for the period worth several times more that the domain of 14 days. In this way a person interested in registration market (mainly because of higher registering a domain can test a domain for service prices). 1 PLN without having to pay for a one-year long registration. Almost 100,000 domains were 44 Strategic report IAB Poland
  • 35. Usability Usability Usability means designing interfaces to make contacts with the users and are offered by a few them more user – friendly. Usability’s goal is to companies in Poland. Usability research is made create a simple, attractive and comprehensible within the confines of marketing budgets or solution that would be effective to use. particular computing projects. In practice, the knowledge of usability is currently acquired from Adjusting the product to a user’s need classic marketing research (IDI, FGI, surveys, provides benefits for a service owner. This is CA, TI). The development of usability research in significant for those services that use complex Poland can only happen once specialized functionalities such as payment transactions companies are commissioned to perform them. or reservations. Services with high usability are characterized by high efficiency and its users Global trends attachment and satisfaction. The trend in usability is commonly understood While concentrating on the user, it is as a social committee. The tools should be important not to forget that his needs and designed so as to make them useful without feelings must meet his business goals and further instructions. Specialization in the field of necessities. Only once a compromise between usability concerns sale processes, optimization these two is reached, high usability of the of websites to which a user is re – directed and service will be ensured. how simple the mobile tools are in use. Designing In relation to the Western market, Poland lags with the intention to evoke emotions in the several years behind the US, Germany or users has become more popular. It is described Sweden. A service care has developed in Poland as building the user experience of a brand and since 2000. The 2007-2008 period was the product. heyday of those companies that specialized in usability research. Since the beginning of this Trends in Poland year, usability research has permanently gained In Poland usability is not only a trend but also a place in finance, insurance and a requirement. Research dealing with the sale telecommunications. In the mechanisms of optimization, usability research on cell phones as a direct sale, an optimization of usability is well as neurophysiologically supported tests of crucial for its effectiveness. Users’ feelings are emotions are novelties. Expert audits are, particularly important for lasting loyalty. despite their superficial role, relatively cheap in Poland and are used to preliminarily spot Usability’s popularity in Poland usability problems. 3 methods of usability research are popular in As a matter of fact, Poland lacks companies Poland: expert audits, user research and specialized in usability but the market’s potential eyetracking methods. The first method based on has been spotted by Western companies that an expert’s knowledge and experience is sell professional research equipment. particularly offered by most companies in the trade. The two remaining methods concern August-September 2009 Special supplement to “Media & Marketing Polska” 45
  • 36. Internet 2008: Polish Internet Market Market problems, prospects of usability development, attempts at integrating this field into others The market lacks highly – qualified usability experts. There are no institutions that would provide training in this field. Advanced publications are only available in English. The field of usability research is an interdisciplinary direction that combines psychological, technical, journalistic, social, artistic and marketing – business knowledge. The clients’ growing requirements should be conductive to the development of usability. Thinking of usability as a public function of services on the Internet shows that this might not be only a passing trend. Usability is a social mission, a necessity to secure the best service and its adjustment with respect to our needs for the client. 46 Strategic report IAB Poland
  • 37. Website ratings in Poland Website ratings in Poland Internet market research Megapanel PBI/Gemius A research project that has a basic meaning indicators. The Megapanel PBI/Gemius results for the Polish Internet and the advertising are published monthly since October 2005 for market is one executed by the Polish Internet monthly periods and for weekly periods since Research company working in cooperation with December 2005. The research result files are a research company Gemius to form Megapanel made available until the 20th day of the second PBI/Gemius. The Megapanel PBI/Gemius research month following the month the research has is reliant on 4 different sources of data: socio- concerned. The data is available in the -demographic information from recruitment gemiusExplorer analytic application that allows surveys, the participants’ activity according to for an export of the current analysis to the CSV the website research, information about format and for copying it to a clipboard. gemiusTraffic system audited website ratings and data on the number and structure of Parallel with the research results, a thematic Internet users in Poland, available from the tree that groups the researched websites into Millward Brown SMG/KRC institution. Currently, categories of similar content and character is there are almost 20,000 Internet users published. The thematic tree consists of 12 main registered for the panel providing data on the categories of websites and services such as: WWW pages. – Culture and entertainment; The Megapanel PBI/Gemius research provides – News, commentary, media; data on the number of users and their profiles – Communities; from around 9,000 websites and Internet – Modern technologies; services that have been visited by the Polish – Lifestyle; users as well as the number of messenger users – Business, finance, law; (applications like instant messaging) and their – Education; profiles. As early as September 2007, the – Motorization; measurement also includes using RSS readers – Sport; and desktop applications. – Travel; Apart from basic statistics like the number of – Work; real users, hits (openings), sessions and the – Construction industry and real estate. total time spent on the website, a number of Moreover, the gemiusExplorer application derived indicators are available: the average enables designing one’s own unit trees which number of one user’s openings, an affinity index could be used for analysis, together with or co-rating of chosen websites. The data can be authorized aggregate trees that can, for analysed and narrowed to fit the indicated instance, bring together all the websites target groups and thanks to the filter option, belonging to one publisher or the websites the analysis may be narrowed to fit those whose advertising space is being sold by one websites having particular values of particular broker. August-September 2009 Special supplement to „Media & Marketing Polska” 47
  • 38. Internet 2008: Polish Internet market Figure 1.: Window of analysis of results of Megapanel PBI/Gemius research in gemiusExplorer program Tracking research of website Because of free access, the ratings statistics system is a tool used by a part of website owners to measure and compare the gemiusTraffic ratings of particular websites. The results of The most popular cracking system of website several million website ratings come from ratings in Poland is the gemiusTraffic research activity measurements of several millions of available in the Gemius company offer. According users worldwide that have the Alexa Toolbar to the company data, the research currently application mechanism installed. The statistics comprises almost 100 percent of the available are restricted to the accessibility advertising websites over the Polish Internet. and number of openings. Information about internaut traffic in the The results of the measurements of those websites under research has been collected particular websites available at have using scripts that count the number of websites a questionable value as the selection of a sample published in the code. On the basis of the (those volunteers that have installed the toolbar) cookies technology that allows for internaut is not at all representative of the internaut identification, the system registers each such population and moreover, of groups of Web users opening. The results of the research are from particular countries. Owing to its presented in the actual time with the help of the specification and low resolution of the results, interface available at the window of a browser. the Alexa system can only be used for estimated The gemiusTraffic research gives a great measurements of changes in the ratings and amount of information concerning the behavior of this is applicable only to greater websites. internauts on the monitored website. The basic measuring unit is one opening which is an event that involves displaying websites with a counting 48 Strategic report IAB Poland
  • 39. Website ratings in Poland Figure 2.: Interface of gemiusTraffic research results script in its code on the internaut’s computer An important advantage of the described (conjecture – the internaut has seen it). The system is the possibility of independently making registered openings are the basis for counting a measuring tree that would model the the indicators of the number of visits structure of the monitored website, and hence (a sequence of openings coming one after tracking the ratings of its particular parts in another), the number of unique users (cookies) almost any degree of detail (website, section, who visited the website at a specific time (day, subsection, single webpage). week, month) and the time spent on the Numerous extra options are available in the website. On the grounds of these basic interface that facilitate management of even indicators, gemiusTraffic counts the series of very complex websites: export reports with measurements that describe the traffic on the source data, forecasting ratings, average values webpage more precisely. The interface provides of particular ratings’ measurements, script information about the average time spent on the sorting etc. website, the length and broadness of the visit as well as reference statistics (reference pages, stat24 browsers and catalogues) through which the A second very popular tracking research in users are directed to the monitored website. Poland that monitors users and their behaviors The system enables a more precise analysis of on the website are stat24 statistics. The the users’ visits to the website under research product is, first of all, meant for small and and presents the paths that have been taken. medium Internet services whose construction is The gemiusTraffic research also collects system complex enough to require more advanced tools. variables such as versions of the browsers used, Thanks to the integration with the technological the type and version of the operations system or platform of the Gemius company, the ratings’ the monitor resolution as well as geolocation indicators available at stat24 are almost data that allows to assign a website visitor to identical to the gemiusTraffic research however a specific geographical region (continent, the way of presentation of the results on the country, province and city in Poland). interface is different. At present, the stat24 August-September 2009 Special supplement to “Media & Marketing Polska” 49
  • 40. Internet 2008: Polish Internet market Figure 3.: Interfacte of stat24 research results – standard version system serves over 1,100,000 accounts and measure of redirection). A more difficult task in measures the traffic that exceeds 2,500,000 this version concerns using the presented data, openings monthly. since the interface does not permit access to summary data or the so-called quick statistics The stat24 statistics are available in 3 main and different types of detailed information about versions: free for companies and online the website traffic. A version for companies (two businesses. Owners of home webpages, blogs, variants – statOptimum and statOptimum Plus) thematic and hobby websites are encouraged to recommended for company and product websites use the basic version for free, however with the and vertical portals assumes the possibility of necessity of putting a company logo on the main using 50 counting scripts belonging to a domain page of the monitored website and to agree to and has a monthly limit to the number of emit research surveys. As a matter of fact, the openings registered by the system. Just like the version does not have a limit to the number of free version, it allows neither measuring the size openings, nevertheless it enables using only two of the webpages served in the secure connection counting scripts belonging to one domain. It nor does it count the number of clicks on a URL, does not however give a possibility of measuring however it does allow size measurements of the the webpage size designed in the Flash webpages designed in the Flash technology. On technology, the number of webpages served in the presentation level, only the number of the safe SSL connection and counting the available information is restricted – some more number of clicks on the URL reference (the advanced measures become inactive. The most 50 Raport strategiczny IAB Polska
  • 41. Website ratings in Poland complex version (also in two variants Research of number and – statBiznes and statBiznes Pro) is designed for characteristics of Internet Internet publishers and enables them to use users 200 counting scripts that belong to one domain. The version does not at the same time contain NetTrack any extra restrictions imposed on the lower Nowadays, NetTrack is the only wide opinion versions. In all the paid options, the subscription poll tool providing information about the number price of an account is dependent on the average of Internet users in Poland as well as their socio- number of openings registered on the website -demographic profiles. This projects focuses on during the 3 subsequent calendar months. the following: Google Analytics – using Internet currently; The popularity of free system statistics – areas Internet usage and type of information offered by the Google company, namely Google searched for; Analytics, has gained more and more popularity – place of Internet usage (access to Internet); in Poland. First of all this tracking solution is – average time of Internet usage at home, in being used mainly by smaller websites since its office, at school/university, at friends’/family free version does not impose a limit on the place, in Internet café/computer shop and other number of monthly openings only of those places; websites that are at the same time customers – frequency of Internet usage generally and in of the Google AdWords system. For the details: at home, in office, at school/university, remaining websites, the measurement limit has at friends’/family place, in Internet café/computer been set up to be 5,000,000 openings monthly. shop and other places; Google Analytics is a suitable product for those – access to Internet at home (having who do not need to inspect the data that has connection at home, planning to get access been updated in the actual time, simply as within 6 months, way of connection to Internet, Google counts the ratings in general daily cycles. number of people using Internet at home); Undoubtedly, an added value of Google Analytics – top-of-mind knowledge; is the close connection of its mechanisms with – websites visited most often during by day Google AdWords that permits monitoring the and night; behaviors and profitability of those users who – Internet shopping; find the websites through particular – Internet messengers used; advertisements, browsers and e-mail campaigns, – using voice over IP technology. as well as analyzing conversion indicators and the influence of advertising operations over the The NetTrack research results can be Internet. analyzed in typical demographic economic sections such as: gender, age, education level, place of residence (old and new province, region, size of place), marital status, socio-civil status, monthly income (one’s total family income and per capita in household). An unquestionable advantage of NetTrack is that it is executed as a single source project with Miliward Brown SMG/KRC, the Polish Reading Research and Target Group Index. This makes further cross-sectional community analyses with regards to psychology, consumer behaviors, lifestyles, attitudes and opinions, interests, preferred entertainment and leisure activities of the Polish internauts possible. Since August-September 2009 Special supplement to “Media & Marketing Polska” 51
  • 42. Internet 2008: Polish Internet market the beginning of 2000, NetTrack has been the same time, the first panel of that type in performed by the Milliward Brown SMG/KRC Poland with 40,000 people registered at institute on a representative sample of Poles present. It is a continuous project whose aged 15-75. The results are collected by means research problems concern both the Internet of personal interviews carried out at home. The and the respondents’ opinion on newly current sample size is 4,000 monthly which introduced products, advertisements or ensures precise high resolution results that are brands. With the help of an Internet consumer published in the Soft Report Explorer format panel, it is possible not only to find the opinion monthly. of the internauts or of a population with a high number of Internet users (e.g. cell phone, Ad hoc Internet research credit cards holders, bank clients), but also to In the past few years, ad hoc research on research product – and Internet – connected Internet users has become more trendy. Among services (product and packaging tests, logo the other traditional types of research, ad hoc types, advertisement banners and concepts) differs in its low price, short executing time and and other marketing research. People who have hardly any geographical limits at all. The participated in the panel are rewarded with research can be undertaken in two ways – by one points that can be directly exchanged for cash – time sampling for the sake of a specific project or donated to charities. The Internet IMAS and on the panel users. OnLine panel of the IMAS International company works very similarly. The company enables the gemiusAdHoc respondents to express themselves by means The gemiusAdHoc research offered by the of Internet surveys that present opinions and Gemius company is conducted by means surveys attitudes with regards to various issues. The emitted in pop-up windows of websites. The Marketing Research Center „Indicator” has surveys are displayed randomly and the users been executing a project named Inet panel – an become a representative group of the Polish international research panel comprising the internauts population, specific website or Baltic Sea area with about 20,000 people website type or according to particular socio- registered – in cooperation with a Danish -demographic/behavioral features. With regards company. The Ipsos company has introduced to its specification, gemiusAdHoc is designed to Inno Track research that is designed for meet various informational needs of its clients. detailed diagnosis of new product results. The Depending on the chosen subject and frequency research allows for identifying specific of the research (single, continuous), it can consumer groups and their profiles (people support both the company’s operations and knowing the product, trying it out, rejecting it) strategic decision making. The research can also as well as a broad why – buy – and – why be useful for solving different marketing – reject analysis. The e-panel project by Pentor problems by means of providing information Research International enables constant about consumer needs and preferences, the monitoring of consumer preferences and market’s segment structure, the company’s acquiring extensive knowledge about the image, brand awareness, satisfaction and loyalty clients’ needs, expectations and opinions. The of the clients as well as the market trends. panel bases on the idea of making a community by means of the Web and the usage of Panel research qualitative marketing research methods. The Currently, the panel of the research ARC Institute of Market and Public Opinion Research Rynek i Opinia company is Poland’s greatest CEM, GfK Polonia and Millward Brown SMG/KRC panel. It was launched in May 2001 and was at have introduced their own Internet panels. 52 Raport strategiczny IAB Polska
  • 43. Online advertising expenses Chapter 2 ONLINE ADVERTISING Online advertising expenses The value of Polish online advertising market in Shares of online formats 2008 amounted to PLN 1.17 billion1. It stands in net total expenses for the value growth by 57 percent compared with the year 2007. With regards to the online 2007 formats the display advertising still constitutes Display SEM the largest part of the market, though its share dropped from 42 percent to 40 percent. Also the share of classifieds and yellow pages decreased from 20 percent to 19 percent, 20% whereas the importance of SEM advertising increased from 20 percent to 23 percent. 42% When analyzing the above data it should be noticed that in comparison with the year 2007 20% the make-up of the base of enterprises taking part in the IAB AdEx Research changed and their 6% 12% total number increased by one entity. Clearly it may influence the value of the whole market dynamics and its particular segments. However, it is the unavoidable aspect of natural development of the research and its “infantile” age (the survey was initiated on the Polish Others E-mail marketing Classifieds /yellow pages market only a year ago). Source: IAB AdEx2007 carried out by IAB Polska and PwCPolska 2008 Display SEM 23% 40% 19% 12% 6% Others E-mail marketing Classifieds /yellow pages Source: IAB AdEx2008 carried out by IAB Polska and PwCPolska August-September 2009 Special supplement to “Media & Marketing Polska” 53
  • 44. Internet 2008: Reklama online Shares of industry categories The industry categories that made the largest in net total expenses investments in online advertising in 2008 include: finances (13.2 percent of share Others Finances compared to 11.3 percent in 2007), Household utility products Telecommunication telecommunication (10.5 percent, drop from Motorization 13.7 percent in 2007) and motorization Pharmaceutical products and drugs nd Media, book books, (7.5 percent, drop from 8.0 percent). Other CD and DVD categories are not fully comparable with the 13.2% results from the previous year as in the IAB 35.9% 10.5% AdEx research the change of categories’ classification was introduced, from the one used by Nielsen into the one used more often in 7.5% Poland, i.e. classification by Expert Monitor. 6.4% A trend that is worth noticing as regards the expenses of enterprises on the online advertising 5.9% 5.2% is also the settlement model for CPA (cost per % action). It refers mainly to such segments as 0.1.0% 1.5 % 1 1.5 % 2 finances and e-commerce. Last year the total % 1.5% 1. 2.3% 2.8% 3.4% expenses on all advertising activities settled in Clothes and accessories Retail this model amounted to almost PLN 80 mln and Beverages and spirits Hobbies corresponded to 14 percent of revenues of the Travelling and tourism, Food enterprises that offered to their clients this hotels and restaurants Computers model2. Household equipment, and audio/video furniture and decorations Hygiene 1 Data IAB/PwC Poland on the basis of the research IAB AdEx2008. and care 29 enterprises took part in the research 2 IAB Polska estimation on the basis of the IAB AdEx research 2008. Data as regards CPA revenues were contributed by 12 enterprises Source: IAB AdEx2007 carried out by IAB Polska and PwCPolska taking part in the research. 54 Strategic report IAB Poland
  • 45. Display advertising Display advertising The year 2008 within the display advertising Shares of formats of display advertising can by all means be called in Poland the year of rich media. Advertisers and the agencies representing them, in cooperation with Internet display advertising in e-mail in-page formats media, decided to make use of non-standard options within the already existing advertising 1% formats in numerous advertising campaigns. The concept of “rich media” comprises e.g. such functions within advertising creations as 21% interaction with a customer, sounds or films, expandable creatives, loading and displaying additional advertising contents at the request of 8% a customer etc. It gives an almost unlimited range of possibilities of forming advanced 70% creatives which enable to go beyond the passive advertising message and to engage customers into a dialogue with a brand. As regards the popularity of display formats no considerable changes took place last year, i.e. in-page formats as well as sponsorships interruptive formats sponsorships gathered in all 79 percent of advertising budgets Source: IAB AdEx 2008 (IAB and PwC Polska) destined for display, whereas “interruptive” formats – 21 percent. Within the in-page format what functioned very strongly was the double billboard which in fact is a typical format for the Polish market and occurs nowhere else in the world. It dethroned the format that had been most popular beforehand i.e. billboard. Also the formats defined generally as rectangle, i.e. creatives of 300x250 pixels, have grown in importance. In next sub-chapters other most interesting trends within display advertising such as video commercial and behavioural targeting are talked more widely about. maj 2009 dodatek do „Media & Marketing Polska” 55
  • 46. Internet 2008: Polish Internet market Video in Internet Video development in Internet the websites basing solely on video contents were Last year confirmed the importance of video created. contents in Internet. They became one of the basic What should be paid attention to is the sources of information and entertainment in the phenomenon of dynamically developing Internet net. All this was reflected in advertising as well. The televisions last year9. These interactive platforms IAB AdEx research showed that the expenses on import contents from traditional television, but video commercials amounted in 2008 to as much as most of all they create their own. Contrary to short PLN 44.5 mln which constituted 7 percent of total video forms, Internet televisions usually rely on an advertising revenues of enterprises which offer such additional software and are characterized with services3. The value of video commercials for the stream broadcasting offering to the audience the American online market estimated by IAB AdEx option of switching over various channels10. amounts to USD 734 mln. It is over twice as much What is also worth noticing is the dynamic as in 2007 when this value amounted to USD 324 development of Internet serials in Polish Internet. mln4. Not only did a progressing increase in number Productions based on the success of such hits as of quick connects contribute to this situation, but “LonelyGirl15” or “KateModern” become more and also popularization of various mobile devices enabling more popular among both internauts and marketers. both consumption and video contents creation did. They offer a range of possibilities – starting from What is more the quality of online video materials a classic product placement and finishing on tribal increases successively. In the United States marketing. streaming in HD quality is a standard nowadays. The interest of Polish internauts in video contents We may observe a similar process in Poland, in the net resulted in the popularity growth of this however, it is not as fast as the overseas one. format among advertisers. It caused the In “The Global Information technology report 2008- development of new products by offerors of Internet -2009”5 Poland was classified at the remote advertising area. Video commercials made a stay in position of 69 (per 134 classified countries) as portals and subject websites; what appeared on the regards the development of information society. One market is both interactive production houses of the classifying criteria was the progress within specialising in creating video forms and the entities broad band services which are a basic indicator of specializing solely in their broadcasting. video development in Internet. For certain, last year witnessed quite a growth In the research carried out by Gemius6 in the 3rd within video commercials; however, this line still quarter of last year 76 percent Polish internauts faces numerous challenges such as the preparation declared contact with video contents in Internet, of conventional standards. Online video is still and 70 percent of them watch videos at least a few perceived in Poland as a luxurious accessory and times a week. These values did not change in marketers allocate relatively little budgets for it. relation to the previous research carried out in May 20077. The group watching video in the net includes Online video and TV spot 70% internauts under the age of 35, slight majority The strategy that is most often encountered in of males. These, however, declared more frequent Poland is the transmission of a spot known from TV watching of online video than females did. in the net. Though Internet is not a simple The most popular service among Polish Internet substitute for television. Due to the specific users is invariably, which in November character of both media the way video contents are 2008 recorded over 7.1 mln users8. Services received from Internet differs from the consumption aggregating video contents such as YT or the of traditional television. Its simplest example relates second popular – use the in-page player. It to the rule, however unfortunately not in force in enables broadcasting in full screen. The mechanism Poland, of watching an online advertising spot of film embedding makes them available on numerous without sound which enables an internaut to make external pages, in blogs and portals. Moreover, also their choice. Another issue regards the duration of 56 Strategic report IAB Poland
  • 47. Video in Internet a commercial film, i.e. in Internet short forms which Crucial distinguishing features of these formats are also characterized with little importance are include keeping an internaut on the creation level and preferred. An internaut is able to turn off offering him/her numerous possibilities without the a commercial quickly and for this reason spots necessity of going to a webpage. These formats produced for Internet should be dynamic and arouse themselves may contain their menu, minilibrary with interest e.g. by additional value in the form of an video materials or files to be loaded. This type of entertaining or educational layer. It is confirmed creations constitutes an effective tool to build by the latest research11 according to which video a brand awareness and also is characterized with content is created especially for the needs high effectiveness measured by the conversion of Internet is bound to gain importance. of clicks on actions (acc. to statistics from first Internet is an unlimited well of possibilities for realizations of this type in Poland). creators of spots. What constitutes the undeniable One of examples of such creations is video cube advantage of Internet commercials that cannot be format used for the first time in Poland last year. forgotten and that has already been mentioned is It is a layered form applied on the window of their interactivity. Another aspect is a more a search engine making use of flash technology accurate than on TV adjustment of a commercial or 3D interaction video. Such creations are in the to the contents viewed by a user and even targeting shape of a cube on whose sides various video files a message to a precisely defined target group. can be placed. This cube can be manipulated by The countability of an online video is a crucial shifting its respective walls, playing back films. Thus factor differentiating it from a television spot. Not a viewer finds himself on the level of creation, may only does the net enable the measurement of influence what he watches at the same time transmissions of a given commercial, but it also communing with a brand even before deciding to records clicks and other ways of interaction with enter the webpage. The format is not closed after a given creation, behaviour of internauts once it a given time, but the moment a user does a specific reaches the target side as well as the number of activity, it is a user who decides how long he wants repeated displays of a spot or a spot moment which to make use of it. After first successful attempts of it reached. These data constitute a source of this format releases this video format was information about audience and are of use for introduced to the offer of one of portals. adjusting on current basis their message according Other interactive video formats used in 2008 are to needs and at the same time they allow to also double billboard and skyscraper. The formats like optimize a given campaign and its costs. What still these may include their own menu in the form of remains unsolved is the issue related to conversion bookmarks presenting e.g. a library of video of Internet indicators into television research materials. It is also possible to collect virtual methods. gadgets, such as wallpapers, screen savers or As it can be seen, a video in the net can function whole applications directly from a creation. as a perfect television message reinforcement. Though the solutions discussed still constitute Not only does an advertiser build on a range of a slight percentage of creations applied in a campaign reaching such part of an audience that comparison with the estimation of eMarketer saying is harder to reach by television, but also is able to that this type of formats will constitute almost one locate a selected group and to enter into a so-called fifth of expenses on online advertising in the United measurable dialogue with its members. Online States in 2012, they lay foundations for advancing activities should still be coherent with the the thesis that also in Poland this tendency will communication present in other media, relate to it develop dynamically in the nearest future. It also or constitute its development, e.g. alternative seems that the economic crisis will not have version of a spot, making off in the net etc. a bigger influence on online video, the advertisers in the United States are going to spend USD 2.57 Development of formats such billion in 2009, i.e. 22.5 percent more than in 2008, as rich media in 2008 on the advertising broadcasted in video materials in The year 2008 brought a few novelties within the Internet.12 application of video and solutions such as rich media in Internet advertising campaigns. August-September 2009 Special supplement to „Media & Marketing Polska” 57
  • 48. Internet 2008: Polish Internet Market Bartosz Drozdowski, managing director ARBOinteractive Polska: A TV advertising spot is the most perfect, most popular and most suggestive form of advertising that a human being has invented so far. The combination of its advantages with the most perfect media which, in my opinion, Internet is and, most of all, the possibility of interaction and efficiency measurement is the mixture that after a bitmap and vector graphics will be a new standard of quality. Michał Kidała, interactive media manager Hypermedia: Rich media-based formats are the future of display advertising. It is noticed by marketers and interactive communication agencies in Poland. Making use of such forms of communication is not easy. It requires more work and time to create a message and to plan interaction with a user. Moreover, technological (ad serving) solutions frequently used by local editors are a restraint that is hard to overcome, each time they require negotiations and an individual approach. Wojciech Drath, creative director Opcom Grupa Eskadra: Two different media: Internet and television are getting together. They begin to have more and more in common and they seem to be 3 IAB Polska estimation on the basis of the survey of IAB AdEx 2008. Data building quite a durable relationship. For the as regards revenues settled by CPA were contributed by 12 enterprises time being links “crunch” and we accept poor taking part in the survey. 4 IAB Internet Advertising Revenue Report. quality picture but more and more advanced 5 ”The Global Information Technology Report 2008-2009” productions begin to appear. Video in Internet 6 Consumption of media. Ways of Internet usage among internauts, wave: no longer stands only for amateur short November-December 2008. Report of Gemius, January 2009. movies created by internauts and corporative 7 Consumption of media. Ways of Internet usage among internauts, wave: May 2008. Report of Gemius, July 2009. pages with talking figures. Movie-makers 8 Megapanel PBI/Gemius, November 2008, N=16 679. learn this new medium, producers seek 9 Polish Internet 2008/2009, Gemius, Warszawa, February 2009. business models, internauts raise the bar – it 10 Kaznowski D. Nowy Marketing, [New Marketing] Warszawa 2008 p. 119. is nice to see how new quality derives from it. 11 “Pro Online Video Views 1998-2012”, AccuStream iMedia Research. 12 “Pro Online Video Views 1998-2012”, AccuStream iMedia Research. 58 Strategic report IAB Poland
  • 49. Behavioural targeting Behavioural targeting What is behavioural targeting? a considerable level of such campaign’s Behavioural targeting came into being in the effectiveness. An advertiser reaching the same United States in reply to the need of reduction of number of customers is able to buy a much smaller so-called media losses. They appear when not all number of hits, in other words, the same effect is users of a given medium/-a given website constitute reached, however, at a smaller expense. a target group of a campaign, i.e. it reaches also Behavioural targeting appears to be beneficial not persons outside a target group. In such case we only to advertisers, but also to editors and owners speak of so-called empty contacts. of webpages. They are able to prepare an offer for This situation, in a way, also takes place in case of users of particular profiles/interests regardless to classic behavioural targeting which is based on an the subject matter of a given webpage. This way analysis of contents watched by a customer and of advertising potential of a website is used to its activities performed by him/her in the net. The tools maximum and the level of users’ irritation is reduced presently being developed enrich additionally to its minimum since they are presented information obtained this way by features that are a commercial matching their own profiles. hard to identify on the basis of CTR analysis and hits, i.e. in particular socio-demographic features Behavioural targeting in Poland and related to one’s lifestyle and social position. First Polish attempts related to the actions The solutions of this type bring a considerable within behavioural targeting were taken by Internet quality change into advertising campaigns realized portals. The solutions of the time were based and in Internet. still are on independently developed technology. On the basis of any combination of such features Behavioural targeting of a new generation appeared behavioural targeting systems enable the creation in Poland in 2007. Then international suppliers of of detailed profiles of internauts as well as the behavioural targeting technologies entered the identification of an internaut of a given profile Polish market enabling the usage of technical regardless of a service he is currently in. solutions combing both an analysis of internaut In practice it means that it is possible to transmit behaviour as well as declarative data and offering a commercial to a customer interested in e.g. advanced tools for data analysis, user segmentation motorization not only within motorization contents, and profile creation. but also within other ones, which enables the use of During that year the issue of behavioural even less popular services. This model is also called targeting became extremely popular. Behavioural audience-centric media buying, i.e. buying of hits of targeting products were implemented by the individual internauts and not the hits within a given majority of entities present on the Internet subject-matter. advertising market. Also the first audience-centric Behavioural targeting tools give lots of advertising network was created. What conduced advantages. An advertiser is able to reach precisely and still does the solutions of this type is the defined segments of customers that are most situation of the world economy. Growing economic valuable for a given campaign. What is more, these crisis contributed to the importance increase of tools make the optimization of a campaign in real effective marketing actions which behavioural time possible as a system displays an advert to the targeting fits perfectly. customers who have hitherto showed their interest A similar situation is taking place in the United in commercial communication. It allows to achieve States. Although that market has a much longer August-September 2009 Special supplement to “Media & Marketing Polska” 59
  • 50. Internet 2008: Online Advertising experience than the Polish one as regards the issue to transmit advertising campaigns only for the of buying Internet advertising it is still in the course users who fulfil given behavioural or demographic of a development phase. EMarketer estimates that features, behavioural targeting does not provide an in 2008 the costs for the campaigns making use of advertiser with a possibility of verifying who should behavioural targeting amounted to USD 1 billion. constitute his target group. Retargeting mechanism This amount constitutes 11 percent of American by the measurement of behaviour of the website costs of display sector, rich media and video users enables an advertiser to determine who such advertising and is to increase up to 25 percent group is so as to be able later on to transmit such in 2011.13 advertising campaign to these users and alike. Retargeting allows to define precisely behavioural Future of behavioural targeting profiles of users of an advertiser’s website and to The services within behavioural targeting enter into communication by advertising actions only presently available are distinguished with with such users. considerable advancement in comparison with the first solutions of this type. Targeting still remains GLOSSARY: a relatively young field that requires the preparation of regulations related in particular to safety and Behavioural targeting – methodology of confidentiality of user data as well as intensive advertising campaign transmission in Internet based education of the market. The possibility of realizing on advanced website tools enabling the identification an advertising action that is adjusted to particular of user behaviours and to adjust only on its basis users and their individual behaviours, not to a given a commercial communication for them. medium, changes the philosophy of media planning. Agencies and customers, as well as website editors Predictive behavioural targeting face a challenge requiring the change of the way – methodologies that enrich traditional they think about online campaigns and also measurement of behaviours of Internet users with understanding of targeting mechanisms. declarative data obtained from questionnaire One of the basic interpretational errors is the transmission. On their basis statistical models conviction that using behavioural targeting results of user behaviours are created and they prevent only in CTR increase. Targeting enables advertisers from creating the effect of so-called limited range to reach a defined group, whereas it has no which takes place when a small group of users influence on click-through ratio which results from despite their interest in a given subject does not numerous and various factors, such as: creation, click, nor does it view the related contents. form or location of a commercial communication within a website. Precision and correct identification Media losses – the effect that occurs in the of advertising receivers as well as its transmission situation when a campaign is transmitted within directed exclusively to them may contribute to and a medium in which a target group does not usually, to a large degree, it does to the increase of constitute 100 percent users. Thanks to various CTR level, however, it is not a rule. targeting methods, e.g. behavioural targeting, such Another doubt is related to the fact that profiles losses can be limited to a large degree by being gathered by behavioural targeting systems identification of users being in a target group. can be replaced with profiles available in Megapanel PBI/Gemius research. It should be remembered, Audience-centric buying model – campaign buying however, that Megapanel informs about a statistic model for advertisers that consists in the distribution of particular profiles, but it does not transmission of a commercial communication only make the identification of internauts fulfilling the to particular users regardless of the area they are indicated criteria possible, neither does it enable currently in. advertising display only for them. Another step which is a natural phase of behavioural targeting development should be the interest in retargeting solutions. Although it allows 13Hallerman, Behavioral Targeting: Advertising Gets Personal, eMarketer, June 200 60 Strategic report IAB Poland
  • 51. How to measure engagement How to measure engagement How to measure customer engagement in One of the key advantages of engagement is interaction with a brand? How to create an its universality that by skilful use of the right effective message that will distinguish itself in the techniques enables the realization of diverse surrounding world? In the world where objectives, regardless of the are we move in and a customer creates a brand by what he thinks what reply we expect from the audience. and says about it. In the world where customers Engagement is a highly subjective and variable expect something more from products than mere factor determining a brand capacity to make the fulfilment of basic functions. In the world where audience interested in and willing to take our audience believe more in opinions of strangers desirable actions, thus more and more entities than in traditional advertising. When creating try to define and quantify it (Forrester Research, a relation between a brand and a customer Nielsen AG, McKinsey & Company). Mastering limiting to the ways of communication relying the skill of engagement level measurement solely on providing a customer with information results directly in the possible effectiveness is not enough. Saying the right things in the right growth and the control of actions taken to time to the right persons is no longer enough. realize strategies. It is particularly important in A dialogue with a customer should be carried out case of the most dynamically developing areas in the most engaging manner possible. Only then such as social media and video, as they have at a customer will want to pay attention to our their disposal incommensurably high potential of message and will try to understand it. And only audience engagement in comparison with then such dialogue makes sense. Ineffective standard advertising forms. Properly designed communication of a brand with its customer and standardized indicator will allow advertisers results in the lack of desirable reaction of to understand better both interactive medium a customer which hampers and even prevents capacity and rightness of allocated budgets. from the realization of business or marketing objectives. Definition of engagement The element of engagement becomes a key Engagement is most of all a subject of component going between catching customer’s debates of marketing theoreticians and attention to our brand and him taking a practicians. Some proclaimed it the word of the particular action. It is particularly important in year, whereas others treat is as yeti, case of Internet which allows to follow a full nevertheless it became the hottest topic of the decision path, starting from product recognition line. Lots of opinions are expressed on this and finishing on its purchase. subject and thus various definitions determining Interest Engagement Action August-September 2009 Special supplement to “Media & Marketing Polska” 61
  • 52. Internet 2008: Online advertising its form appeared as well. One of them describes Engagement indicator model engagement as “an active involvement of (online insurance purchase) a customer in a brand communication enforced by the surrounding context”. Whereas the Influence Involvement measurement of its action effectiveness should clearly determine the degree and quality of customer engagement in brand actions in 18% 15% relation to clearly defined objectives. Engagement in reality Since the definitions themselves operating on the level of theory do not fully meet the needs 30% 37% of their practical use, Forrester Research made an attempt to define the factors forming the concept of engagement. By formalizing the definition of engagement Forrester Research distinguished four Intimacy ntimacy Interact Interaction components of this phenomenon defined as Engagement Index: Source: Forrester Research Inc. – Involvement – is understood as the presence of a customer in places where he has contact with a brand. It is expressed with numerical values such as a number of hits or the time spent on a website; – Interaction – describes actions that a user takes in places where he has contact with a brand. Depending on objectives assumed they Engagement indicator model can include various actions such as: clicking (image creation of a clothing brand) a banner, inscribing a newsletter, downloading an information brochure, watching video materials, Influence Involvement contacting an advisor or buying a product. They 2% are measured by the number of actions taken 5% and the degree of their completion; 33% – Intimacy – stands for an emotional determination of the attitude towards a product or a given service. It defines the customer satisfaction from the interaction with a product 60% or with a brand itself. It may manifest itself in the form of commentaries on blogs or opinions on forums or opinionating services; – Influence – is determined in actions hat are Intimacy ntimacy Interact Interaction taken by customers in order to share their opinion and influence the opinion of others Source: Forrester Research Inc. consciously or unconsciously. They frequently constitute a manifestation of actions of a loyal customer who is a brand ambassador. 62 Strategic report IAB Poland
  • 53. How to Measure Engagement Depending on an assumed strategy and on Has the time for engagement expected results a scenario of customer come yet? behaviour is to be created and then the Interaction constituting the foundations importance of each of the components in of Internet is one of the key elements enabling a particular situation is to be determined as the active involvement of a customer in brand structure of an engagement indicator will differ actions. The engagement in a more or less in case of actions that are of business nature developed form is nowadays present in almost (e.g. online insurance purchase) from the ones any sign of this interactive medium functioning. that are of marketing nature (e.g. image The range of solutions, social media or video creation of a clothing brand being introduced in particular, requires rules for measurement to the market). of their effectiveness and influence on building a relation between a brand and a customer For the Index to be reliable its structure to be prepared. should be a resultant of a strategy approved Although presently there is no universal and that is determined before being executed. Next common engagement indicator it is worth to the results of actions carried out and their carry out measurement on one’s own. However, effects should be subjected to final evaluation for this indicator structure should be properly the purpose of determining the optimum balanced between measurable elements and the architecture of engagement elements. elements that are hard to be expressed The engagement components must be by means of numerical values as also emotional reflected in actual actions. factors influence engagement and without them the evaluation of effects of carried out actions would not be complete. August-September 2009 Special supplement to “Media & Marketing Polska” 63
  • 54. Internet 2008: Online advertising SEM – Search Engine Marketing Presently the tendencies on the marketing gathered in the global network. One’s wish to market in search engines are determined by two receive the most accurate results possible forces factors, i.e. the increasing awareness of search a user to be more precise when asking their query engine users enforcing advertisers to develop their in a search engine. This in turn requires a advertising campaigns as well as the economic crisis considerable expansion of structure and vocabulary inducing advertisers to put more pressure on of advertising campaigns in search engines and thus measuring effects of advertising campaigns. consequently bigger popularity, in particular among As it may be concluded from HitWise research SEM agencies, is won by systems of automatic the queries asked in search engines are getting binding as well as by softwares enabling precise longer and longer. Users still keep on writing two- management of a very expanded campaigns. -word-queries, nevertheless the majority are the Progressing proffesionalization of SEM services queries consisting of three or more words particularly in the markets in the West is a (55 percent of all queries14). noticeable change. More and more large advertisers Such situation proves the increasing awareness decide to entrust their campaigns conducted in of users as regards the capacities that search search engines to specialized entities, such engines have. Longer and longer queries are also the tendencies are likely to be even stronger in reply to constantly increasing resources being consecutive years; the competition growing among Click percent according to the length of queries in search engines January 2008 January 2009 annual change 22.03 21.92 25 20.96 20.99 24.91 23.65 20 14.89 14.54 15 8.68 8.20 10 4.65 4.32 2.49 5 2.23 % 1 2 3 4 5 6 7 number of words in a query -5 Source: Forrester Research Inc. 64 Strategic report IAB Poland
  • 55. SEM – Search Engine Marketing search engines as well as the pressure to ROI equivalent of the “search engine” phrase. There are maximization demand from advertisers conducting a few reasons of this situation, not only the growth more and more advanced, and what follows time- of domain (85.6 percent at the end of -consuming, campaigns. 200816), but also the fact that this search engine is Also the market of search engines has changed; placed in portals and services – two significant during a few years it transformed from a niche players on the Polish Internet market ( and market into a mass market in the full sense of this implemented on their websites word. In the largest countries the leaders as Google search engine. regards the range are search engine platforms that Last year we faced also a dynamic growth of overtake the most popular portals. The mass contextual advertising market. Not only does it refer character of search engine markets makes finding to the number of players who appeared on the a niche that is not managed by advertisers harder market, but also the variety of advertising products and harder. Year by year more and more business available in contextual networks. The transmission of lines notice the potential that SEM offers. On the advertising initiated by Google in 2004 also on the other hand high competitiveness and large inflation partner websites of AdSense systems made of prices for redirection in the most popular search contextual advertising stay in SEM budgets for engine systems induce advertisers to search longer. alternative search engine platforms. In 2008 the Polish market had, except for The share of expenses spent on marketing in Google with AdSensea and NetSprint with search engines amounted in 2008 to 23 percent AdContext which deliver contextual advertising, which stands for the amount of PLN 269.1 mln.15 In also some other contextual systems not having comparison with the year 2007 (PLN 146.3 mln) roots in the solutions related to search engines, the expenses on SEM increased by 84 percent (!) like e.g. Smartcontext, Business click, thus making search engine marketing the fastest Onetkontekst. Taking into consideration the fact developing branch of online advertising. The growth that a contextual selection is one of the crucial in outlays of advertising in search engines that has factors influencing the profitability of advertising been taken place for a few years now results from activities, dynamic development of partner a few factors. In 2008 small and medium networks transmitting contextual advertising enterprises seeking methods of promotion within does not seem such a surprise. In accordance their little marketing budgets contributed to the with Enquiro Research it is the contextual growth of expenses on SEM. Nevertheless, what connection of advertising that could result in the becomes visible is also another trend, i.e. shifting increase of buying intentions by even 36 percent. budgets from offline to Internet, including SEM to What is more in case of contextual selection we a large degree. Media houses and large interactive deal with a much better adjustment of agencies that more frequently open their own units commercial communication to a brand. dealing with marketing in search engines gain more and more importance as the players of the Trends within the market of marketing payers. The media houses themselves marketing in search engines appreciated last year marketing potential of search According to the data published by SEMPO the engines by directing more and more parts of American market of SEM was last year worth over budgets of their customers to SEM. The increase of USD 12 billion (research covered both payable forms expenses on advertising in search engines is the of advertising and expenses incurred on optimization outcome not only of popularity increase of this form of websites in natural results SEO) which in of advertising, but also of the increase of average comparison with the year 2007 stands for over price per a click resulting from the auction system 40 percent growth. and a larger competitiveness among advertisers. Most estimations related to expenses incurred The year 2008 was another year when the on advertising assume a dynamic growth of position of the largest search engine on the Polish expenses on marketing in search engines. According market – Google – increased. As the consequence of to eMarketer in the next five years the expenses on the dominating position of Google within the market SEM are expected to be doubled. Observing of search engines the word “google” became an tendencies present on the markets in the West is August-September 2009 Special supplement to “Media & Marketing Polska” 65
  • 56. Internet 2008: Online advertising essential provided that they indicate the direction measurable factor of a campaign specified in SEMPO the Polish advertising market is aiming at. report by marketers is the conversion ratio which SEM campaigns match perfectly the clearly shows that in the eyes of advertisers an effective articulated expectations of advertisers who in the campaign stands most of all for a campaign with times of the crises declare their willingness to high conversion result. invest their marketing budgets in advertising products that can be precisely measured and will be Campaign objectives characterized with high profitability. Despite the The primary objectives of a campaign have not fact that the forecast of a drop in advertising changed, the marketers taking part in SEMPO expenses is not a pessimistic scenario for SEM research still most frequently indicate the market, the pressure to restrict costs, to freeze enforcement of a brand image on the market as the investments, the drop in tendency to risk and campaign objective (important to 63 percent of demand for effectiveness of carried out activities is respondents), the other objectives of importance also quite a challenge for marketers conducting indicated are as follow: direct sale (important to campaigns in search engines and contextual 61 percent), online action support or winning traffic networks. for a website. In 2008 an increasing number of Therefore, the next year will be a year of marketers started to pay attention to the results scrupulous planning of SEM activities in order to returned by search engines after writing a product make the best of potential of advertising products or a brand name. The global economic crisis is available. Apart from precise determination of expected to set new objectives to campaigns and to campaign objectives a large pressure must be have advertisers start to take more notice to exerted on the optimization of advertising activities conversion cost. carried out and on the measurement of The year 2008 brought a significant change as effectiveness of related internaut actions. The SEM regards the results of search, i.e. placement (first market itself is bound to change as well, in the Western countries, then in Poland) of new performance marketing will enjoy increasing functionalities in search results by Google. After the popularity. increasing number of queries of users, what appears in research results, apart from standard links to Effectiveness Indicators websites, includes graphical links with video results of SEM Campaigns related thematically with a user query, map Advertising campaigns in search engines became fragments (from Google Maps) or links summarizing much more advanced, also the concept of campaign a set of information in reply to a given query. Google effectiveness evolves. Still the factor related to explains the implementation of these hitherto non- advertising that is the greatest importance is the standard links in the search results as their care for redirection of the traffic to a website, nevertheless results and facility for users. Using new advertisers more frequently tend to pay attention to functionalities for advertising purposes is bound to the quality of this traffic. There are more and more be a new challenge to advertisers and the whole campaigns in which the traffic redirected from SEM branch. search engines is monitored thoroughly and the In relation to the almost total domestication of conversion rate as well as ROI (Return on contextual advertising in SEM budgets a Product Investment) decide whether a campaign is Paid Placement Portfolio available within programs successful or not. The second most important has been considerably enriched with new advertising Expenses on advertising in search engines in the United States in the years 2007-2013 as regards a type (in billions of USD) 2008 2009 2010 2011 2012 2013 PPC advertising 10,691 12,286 13,880 15,552 17,686 19,530 Search Engine Organization (SEO) 1,550 1,825 2,100 2,550 3,200 3,850 Total expenses on SEM 12,241 14,111 15,980 18,102 20,886 23,380 Source: 66 Strategic report IAB Poland
  • 57. SEM – Search Engine Marketing forms. What is additionally used within SEM Expenses on advertising in search engines budgets, apart from text forms, includes also: in the United States in the years 2007-2013 graphic-text forms (e.g. Adkon-Text-Exclusive), static (expressed in billions of USD) graphic forms (billboard, rectangle, skyscraper and others) as well as fully multimedia flash or video 2007 8.8 animations. A revelation of the year 2008 was the use of 2008 10.7 innovatory method of contextual advertising 2009 12.3 presentation in the form of Intelli Text advertising by contextual networks (other names of this 2010 13.9 advertising are: intelligent text, wordlayer, rectangle, intertext). These advertising forms are 2011 15.6 activated only when a user moves his mouse over the key words marked in a text. And thus an 2012 17.7 advertising message is presented according to the key words defined by an advertiser in the contents 2013 19.5 of articles which are connected contextually with mld 5 10 15 20 the range of such advertiser’s services. Intelli Text USD advertising presents both text forms, text-graphic Source: forms as well as flash and video animations. As regards the settlement model CPC dominates (clicking an ad and moving to an advertiser’s Traced results of SEM program success website). Some contextual networks permit – “What indicators did you pay attention to when alternatively payment in the CPM hit model (in tracing a search engine marketing campaign?” particular in case of video products). Traffic increase 75 Prospects Despite the economic slowdown the forecasts for Conversion ratio 73 the advertising market seems to be promising. The Polish market of SEM has been developing dynamically for last years and though the present CTR 70 economic situation may decrease this dynamics a bit, still it seems, when we look at the expenses ROI 67 on SEM in the Western countries, that this branch has large growth potential. Advertisers will spend CPC 60 their budgets on advertising in search engines more willingly than on other media. According to SEMPO Conversion cost 56 only 14 percent of researched advertisers say they % 10 20 30 40 50 60 70 80 are going to spend less on SEM in 2009 than in 2008. Due to the possibility of directing the Source: SEMPO advertising to a defined group of customers, the large measurability of advertising effects as well as a relatively small entrance barrier we may soon witness the acceleration of budget allocation change from traditional media to SEM. August-September 2009 Special supplement to “Media & Marketing Polska” 67
  • 58. Internet 2008: Online Advertising The objective to be realized when using search engine marketing – “What did your company use search engine marketing for?” number of employees in a company below 500 number of employees in a company above 500 To improve 58 /change the brand awareness 70 To sell products/services 61 directly by website 63 To obtain 54 potential customers and finalize transactions 58 To direct the traffic 42 to a website advertised 49 To obtain 13 potential customers for one’s distributors in the net 17 To promote information 8 & educational forms 16 Others 1 2 % 10 20 30 40 50 60 70 80 Source: SEMPO 14HitWise, January 2009 15IAB Polska estimation on the basis of the IAB AdEx research 2008 carried out by IAB Polska and PwC Polska 16 68 Strategic report IAB Poland
  • 59. E-mail marketing E-mail marketing E-mail marketing experienced another year of receiving servers will amount to 45,000 dynamic growth which can be observed both in messages per a user21. the increasing number of marketing e-mails sent and the steady growth of this market value. In 2008 total expenses on communication by Planned changes within the expenses means of electronic mail amounted in Poland to on particular marketing communication PLN 70.2 mln and was 58 percent bigger than last year17. This amount includes both revenues of publishers from commissioned advertising increase decrease e-mails and increasing revenues of interactive E-mailing to own 48 agencies and firms specializing in e-mail address bases -14 marketing. Advertising in 48 social network services -20 What is of importance is the fact that the year 2008 in Poland was the year when the Advertising in 27 search engines -33 number of firms making use of e-mail marketing 18 Telemarketing in their promotional activities exceeded the -22 number of those which did not make use of this Display advertising 16 in Internet -43 tool18. Data coming from the American market19 Mobile marketing 13 indicate that e-mail marketing will be, apart from -20 search engines and societies, the only marketing Direct marketing 12 tool on which the expenses during the economic -52 8 slowdown will increase. As far as the expenses Events -57 on communication with customers of marketers’ E-mailing to external 6 databases will increase, the expenses on e-mails address bases -83 to be sent outside address bases may face Radio and television 6 advertising -43 considerable reductions. However, it is hard to 4 Press advertising predict whether the situation will look similar in -60 -100 -80 -60 -40 -20 0 40 20 % 20 40 60 Poland. What is importance is the fact that at the Source: Marketing Sherpa, statistical survey “Marketing and the economy”, tx. 2008 end of 2008 a considerable drop of non- -commissioned e-mails (spam)20 was noted which in November amounted to 66 percent. It was connected with the cut-off of the American Newsletter communication hosting service provider – McColo from the The year 2008 must be ranked among very network, by means of this provider’s connects successful ones as regards e-mail marketing a large number of unwanted messages used to activities carried out in own databases. The be sent. In the nearest future this situation will research shows22 that almost 9 out of 10 probably return to the condition it was in at the respondents subscribe at least one newsletter beginning of 2008, which means that during the a week and at least half of them receives from 3 to year the number of spam caught by filters of 5 newsletters a week. Also the awareness related August-September 2009 Special supplement to “Media & Marketing Polska” 69
  • 60. Internet 2008: Online advertising to this form of communication has increased Structure of newsletters opening among both addressees and senders. According to (expressed in %) the research “Beyond the click: The indirect value Sending offs Openings Clicks Monday 17.4 12.7 12.6 of e-mail” as many as 84 percent of respondents Tuesday 24.2 17.4 18.7 enjoy receiving newsletters which they subscribed Wednesday 20.9 19.4 17.0 for, though they do not always read them. In Thursday 19.8 18.2 22.6 comparison with the year 2005 when to the same Friday 14.8 25.2 16.7 questioned was asked 69 percent of respondents Saturday 1.7 4.6 7.1 Sunday 1.1 2.6 5.3 gave a positive answer; thus it is a very good result. The Polish research23 also confirms that the Source: working group of e-mail marketing IAB Polska, own survey majority of respondents (74 percent) declare their positive or very positive attitude towards willingly. At the same time Thursday is the day newsletters. Only 3 percent of respondents do not when users carry out the actions such as like receiving them. It is no surprise therefore that clicking a link placed in an e-mail. 59 percent of questioned enterprises declare intensification as regards the use of this form of E-mail sending offs communication, whereas only 8 percent is going to commissioned by online make use of it rarer or is not going to use it at all. publishers In accordance with the report “Retail e-mail In 2008 expenses on advertising e-mail year-end trends for 2008” prepared in the amounted in the USA to one third of outlays on United States by Smith-Harmon in 2008 we e-mail marketing. The participation of this form could observe a steady growth of the number of of advertising is going to increase slightly (by messages sent to users. Most probably the approx. 3 percent) this year and will maintain the same situation concerns the Polish market, of same level in 201027. It is estimated that the which the evidence is a growing demand for participation of e-mail advertising in Poland in the services of agencies specialising in e-mail expenses on widely understood e-mail marketing marketing activities. According to the above is much larger than in the American market; mentioned report the most popular days for however, in relation to constantly growing sending marketing e-mails in 2008 were ex awareness of marketers and the increase of aequo Monday and Tuesday, Thursday came the outlays on newsletter communication (directed second. These data differ from the results of the to own bases) and base-data marketing these research carried out for the purpose of this proportions may change in the nearest future. report among Polish service providers. It can be Despite the growing economic crisis, in the concluded from the analysis prepared by IAB second half of last year in particular, expenses Polska that marketers consider Tuesday as the on e-mailing were not decreased considerably. best day for sending marketing mail, Wednesday Last year in the United States USD 472 mln and Thursday come second. On the other hand (almost 9 mln less than it was forecasted) was weekend is the least popular period to take this spent on this form of communication. In 2009 type of actions. a 5.7 percent drop of expenses on this objective is expected. In comparison with cutbacks on What can be noticed when analyzing the other forms of advertising newsletter behaviour of newsletter addressees is a growing communication is going to face one of the tendency as regards the number of newsletters smallest planned reductions of marketing received by users in comparison with the budgets28. previous year.24 In relation to also the structure For the needs of this report the contents of of newsletters received has changed. Users e-mail boxes of Polish internauts were subject to most frequently receive: Internet journals, analysis. The accounts of the largest portals advertising newsletters and company news. (Onet, WP Gazeta, O2, Interia) were under , Statistical data coming from providers of e-mail observation. This research29 showed that almost marketing indicate that campaign receivers open every 5th e-mailing was commissioned by the correspondence on Wednesday and Friday most enterprises from the financial sector (banks, 70 Strategic report IAB Poland
  • 61. E-mail marketing total expenses destined for e-mail marketing is Average indicators of e-mail effectiveness likely to grow. It means the growing demand for to bases of online publishers in 2008 services of firms providing technological and (expressed in %) consulting services within this area and Poland25 USA26 maintaining prices on the hitherto level. CTR 3.6 5.6 Although the prospects for e-mail marketing OR 23.4 19.8 are very good, a few possible risks that all its Returns 11.0 6.0 participants must face should be indicated. The first one of them is the increasing number of Source: ARC, own survey, XII 2008 messages received by addressees and the insurance, pension plans). The first five of the related need of particular e-mails to be distinct most active branches included: e-commerce, on the level of creation, contents and headlines education, FMCG and telecommunication. The as well. What will be also of importance is the most seldom received e-mails came from care for correct display of messages in various developers, medical branch and clothing firms. e-mail programs. Another issue that should be The analysis of addressees’ mailboxes proved paid attention to is the correct segmentation that advertising e-mailing was mainly used in of an address base and behavioural targeting sales campaigns, whereas in image campaigns or (related also to shopping done). As regards e- information campaigns was not used to such a -mail marketing actions taken in own databases degree as the creations of e-mailing with what will be of considerable importance involves distinct call-to-call action elements and the their development (lead generation) as well as contents reduced to two, three distinguishing maintaining relations with addressees obtained features of an offer prove. this way and holding them in the base In relation to high pressure exerted by the (retention). customers preferring settlement for results lots of publishers decided to value also e-mails in CPA and CPL model (fee for an action or obtained lead). The change of approach of the greatest players as regards the issue of the settlement model could be observed in the second half of the year 2008 I particular. However, it did not influence much the level of prices calculated as CPM. It should be noted though that e-mailing prices were increased by 20 percent by one of the greatest players in the market, i.e. Onet explaining this action with the increasing demand for this type of advertising. Also the results of e-mailing campaigns are on relatively high level in comparison with other forms of advertising. Prospects 17IAB Polska estimation on the basis of the IAB AdEx 2008. Data as The market value of e-mail marketing was regards expenses on e-mail marketing were contributed by 26 enterprises taking part in the research growing in 2008 in Poland at the rate of the 18Report of V research of e-mail usage. SARE 2008 19Datran Media, 3rd Annual Marketing & Media Survey, December 2008 whole Internet advertising market. We estimate 20Spamcop 21Google that keeping this dynamics up will result in its 22SARE, Report from V research of e-mail usage, September 2008 increase in 2009 by 18 percent, to almost PLN 23Report from V research of e-mail usage, SARE 2008 24SARE, Report from V research of e-mail usage, September 2008 83 mln. Although the most part of this amount 25EMarketer, US E-mail Advertising vs. Marketing Spending, 2006-2011. June and September 2007. is going to be still allocated on sending the 26eMarketer, Change In Marketing Budget Allocation In 2009 according to advertising e-mails off by online publishers, the Marketers Worldwide, by Tactic, January 2009 27ACR, own survey, December 2008 participation of newsletter communication in 28Averagized data of portal 29Epsilon. Q3 2008 E-mail Trends and Benchmark, January 2009 August-September 2009 Special supplement to “Media & Marketing Polska” 71
  • 62. Internet 2008: Online advertising Mobile marketing Difficult first steps… Crucial growth factors are the need for mobility Although it has been developing in Poland related to a change of a lifestyle and a pressure since 2003, the market of mobile marketing still of being mobile felt particularly by young waits for achieving the large scale. Mobile customers. services, already popular among customers, push consequently their way to the awareness of Mobile marketing marketers. It allows to look with optimism at the The equals sign put a few years ago between future despite so many barriers to be overcome mobile marketing and SMS advertising has less yet… and less support in practice. It is true that What happened in 2008 in the mobile market? SMS-s are (and will still be for a longer time) the At the beginning – a few facts. most commonly used means in mobile marketing Mobile telephony penetration (SIM cards) in – as it also happened in 2008 (in sales Poland exceeded in the 4th quarter of 2008 the promotion, loyal programs, competitions and level of 115 percent30. 83 percent of Poles lotteries). declare to have a mobile telephone, it is a much Nevertheless, popularity is gained also by new larger percent than in case of stationary solutions like bluetooth, photo codes (2D codes), telephony (58.4 percent)31. applications and localization services. Openness Still pre-paid phones enjoy the greatest of advertisers to new solutions is demonstrated popularity though their number dropped slightly by their seeking individualized methods of in 2008 (approx. 55 percent of phone users in reaching a user. Mobile marketing enables Poland are the customers of pre-paid phones)32. message targeting, result measurement and Text messages keep on being the most popular high effectiveness (high response rate of form of communication – SMS-s are sent by customer campaigns). 93.7 percent of mobile phone users33 (77 In 2008 mobile advertising appeared also in percent of all adults; 28 percent of all adults the form of display advertising on “light” sites of used communicators and 38 percent e-mails34). large Internet portals and on portals of GSM A considerable percentage of users (41.3 operators. A very attractive target group, percent) sends MMS35– it is good news that innovativeness and also relatively high CTR of MMS-s are used more and more often in mobile advertising allow to presume that there marketing campaigns and projects, they are also will be more campaigns like this in 2009. used as the touch point of various media (WWW, Bluetooth marketing stands extends POS journals) e.g. in services of citizen journalism. communication and outdoor with multimedia The most important market growth factors contents. It is possible to send video files, include the improvement of phone functionality MP3, games, wallpapers or product catalogues (and what follows – the range of their via bluetooth. This solution enables advertisers application) and the drop in prices caused by the to reach a target group in an innovative way competitiveness among operators, including the by using fully the potential of a mobile phone drop in prices of pre-paid services enlarging the as an immediate and direct communication market with customers with lower incomes. channel. 72 Strategic report IAB Poland
  • 63. Mobile marketing In advertising campaigns in 2008 m-coupons M.WP .pl,,, nevertheless appeared on a scale larger than ever before. One of no precise statistics related to these services the embodiments of m-coupons is SMS discount and the market as the whole are known. The first code (prize) which gives a marketer a possibility of five most popular “light” websites in Opera Mini electronic distribution of prizes in contests and search engine include:,, promotions (e.g. m-coupons for Internet shops).,,, and the This tool helps to optimize the costs of storage increase of hits in this search engine from and distribution of prizes. And moreover, a January to November 2008 amounted to 200 customer has a chance to choose a prize. percent36. The estimated participation of non- Last year photo codes (2D codes) were widely -voice services in ARPU (average revenue per talked about. Thanks to them it is possible to user) in Poland amounts to approx. 20 percent. elicit fast action on a user’s phone (access to The increase of broad band Internet range on information, video/audio files, games, payments, computers resulted in the appearance of the WAP and webpages, initiation of a phenomenon of Web 2.0. Mobile telephony awaits connection/SMS etc.). Thus the potential of a similar catalyst. The coincidence of a few applications is enormous. In August 2008 Polish factors such as: technological progress, cost GSM operators officially announced their decrease (lump sum), awareness of users and common standard – Data Matrix which they are understanding their needs by service providers going to promote jointly in the market. Such will bring a rapid acceleration. common standard permits to look with optimism at the development of this service in Poland. Mobile TV What seems to be a problem nowadays is the Another step within the development of video compatibility of the application to read photo format will involve mobile television i.e. broadcast codes with phones (at the end of 2008 the of a television program to mobile devices. In application was operated only by 20 percent of comparison with traditional television mobile mobile phones available in the market). television will ensure greater personalization and interaction (voting, polling, betting results during Mobile Internet programs). It is expected that all over the world The technological development (3G, HSDPA, the number of mobile television users will HSUPA, Wi-Fi, WiMax) makes the Internet a truly increase from 12 to 120-200 mln during the mobile solution. Moreover, mobile Internet should next five years.37 not be only associated with a mobile phone, but The frequency competition for the purpose of also with other mobile devices (e.g. e-paper running a multiplex in DVB-H technology was readers, consoles). The year 2008 is also the announced by UKE president on October 10, phenomenon of iPhone. Users of this Apple 2008. In compliance with the competition product constituted, to tell the truth, sizeable documentation a mobile television service is to minority in all markets where iPhone appeared, be launched in Poland in 2009. Probably at the however, their participation in total Internet end of the year there will be not more than consumption was significant. On the average it is 100,000 service users, but already in 2010 estimated that 55 percent of the time when there may be about 1 mln of them. iPhone was used was consumed on data transfer Obviously this forecast may come true (25 percent on other devices). The appearance of provided that some conditions like a moderate iPhone in the market induced other producers to service price and introduction of functional and introduce phones with large touch screens well- cheap telephones into the market are met. The -adjusted to Internet use (e.g. BlackBerry Storm, availability of attractive contents and, what is G-phone with Android, Samsung Omnia N97). more, presented differently than in case of The Polish market still lacks a standard for traditional television (attracting attention of mobile Internet testing. The most popular so- a user on the move will be quite a challenge -called “light” sites are especially adjusted itself) will be equally important for the popularity services of the largest portals:, of mobile television. August-September 2009 Special supplement to “Media & Marketing Polska” 73
  • 64. Internet 2008: Online Advertising What is the prognosis Glossary: regarding mobile marketing IVR (Interactive Voice Response) development in Poland? – a service based on voice communication and To put short – optimistic. Both as regards the transmitting tone signals from a phone keyboard. short-term and long-term perspective. Mobile Voice messages prepared beforehand are services are bound to be more and more transmitted by a specially designed computer common. Consequently marketers seeking new, depending on a subscriber’s commands and the non-standard and effective forms of customer solution assumptions. The solution is used for gainning will reach for the arsenal of mobile the purpose of, among others, process marketing tools more courageously. automatization of so-called customer service. Robert Stalmach, Agora SA: The market develops very fast. Not long GPRS (General Packet Radio Service) ago mobile marketing did not exceed beyond – a packet service of data exchange via GSM simple SMS actions. Nowadays it often takes networks. In practice, it enables to receive and the form of complex projects linking various send information for WAP or MMS needs quickly. media where such solutions as bluetooth, In connection with the fact that a subscriber 2D codes, GPS and applications are used. making use of GPRS pays for the amount of Big hopes can be put on mobile television and transmitted data and not for the GPRS mobile games (advergaming). connection time this service is called a cordless Growing needs of marketers are not permanent connection. presently reflected in the organization of the mobile advertising market. The owners of the Photo codes (2D codes) – matrix codes, being big brands expect common standards the successors of bar codes, offer a possibility (formats, efficiency measurement). of coding on a small area a bigger amount of The key factor in mobile Internet information suitable for automatic read-out. consumption growth in the nearest future is 2D codes ensure fast information downloading the increase in the smartphone share in total on phone, payment making, access to services, sale of telephones. At present there are WAP sites and webpages, a connection/SMS about 3 mln smartphones in Poland, of which initiation etc. the largest group is the group of telephones with Symbian software – approx. 60 percent. M-coupon – special or discount offer, in the form of SMS that is sent on a customer’s phone. It contains a unique code being the Agata Kozak, MobiJoy!: identifier of a discount that is verified in a point Mobile marketing in 2009 and in of sale by means of m-terminals or online consecutive years has a chance to win more applications. appreciation in the awareness of marketers – despite the crisis it is assumed that the market will grow steadily offering to the advertising branch new solutions enriched 30 with innovatory, yet still efficient and telefonii-komorkowej&j=pl effective, functionalities. The brands that 31Telecommunication market in Poland in 2008, individual customers, CBM Indicator for UKE, Warszawa, December 2008 perceive mobiles as something more than 32Polish SIM card market after 2008 SMS-s have quite a chance to be successful. 33Telecommunication market in Poland in 2008, individual customers, CBM We believe that marketing communication Indicator for UKE, Warszawa, December 2008 34Poles in the network, CBOS report, April 2008 enriched with mobiles will become a standard 35Telecommunication market in Poland in 2008, individual customers, CBM Indicator for UKE, Warszawa, December 2008 in the market in some years. 36Opera: State of Mobile Web, November 2008 37Juniper, Informa telecoms & media 74 Strategic report IAB Poland
  • 65. Advergaming – Advertising in Games Advertising in games Advertising in games is still in most cases, Advertising market value in games in the USA unfortunately, treated as the actions directed 2006 346 towards the youngest customers. Fortunately more and more marketers have noticed already 2007 502 greater possibilities of advertising actions in games to be used in Poland as well as a 2008 665 developing group of experienced players aware of 2009 829 their choices who play games for pleasure. Appearing advertising campaigns and new mln 200 400 600 800 1,000 USD products designed for payers destroy the out-of- -date stereotypes illustrating players as Source: eMarketer. weirdoes, mainly males living their life only to play computer games, taking care neither for their shopping being under its influence, but also even personal hygiene, nor for their relationships with requires that advertising of interesting brands the nearest surrounding, friends or family. New get to him by a well-selected advertising products in the Polish market, related to console message. games in particular, designed for players, clearly show the way to the new vision of a Polish player, There are relatively few researches and how he is perceived by aware marketers and surveys carried out in Poland as regards players equipment producers. This new vision of a player as well as the subjects related to players as is the image of a person who perceives playing advertising receivers. However, relying on available games as conscious entertainment (such person sources related to the Polish market and prefers paying similar amount of money for referring to the research of Western markets, it a game to going to the cinema, comparing the can be safely said that the situation looks quite price to the time of entertainment he may good, even very good, with both Polish game receive in return), shares it with his family and playing and Polish players. The players playing on friends (hence the tendency to change a place of computer games, console games or online games playing games, i.e. it is no longer a bedroom with constitute over 16 percent of population over 15 a computer, but a living room with a console years of age39. The majority of this group, i.e. over connected to the TV set equipped with HD 50 percent, are the persons aged 15-2440, screen where one may as well play with the whereas in the US the dominating group are the youngest members of the family or fish with persons between 18 and 3441 years of age and a grandpa by means of a Wii console), plays for the average age of a player is 3242. This group pleasure (giving priority to playing games over statistically grows old as it bases on the persons e.g. watching TV, surfing Internet, reading books, who began their adventure with games in the going to the cinema or the theatre)38, likes 90’s; however, thanks to new game interfaces advertising in games and even expects it which (Wii console with Wii Fit bundle, guitar with Guitar can be concluded from previous experiences with Hero or a microphone with SingStar) they other media. A new player is simply a perfect introduce to the world of computer games the receiver of advertising, not only is he able to do persons who even used to be against playing August-September 2009 Special supplement to „Media & Marketing Polska” 75
  • 66. Internet 2008: Online advertising computer games. The tendency of accelerated Incomes of players against the population aging of the society of players caused by the elder generation joining this group is noticeable in the players population division of players into the steady ones (playing for 0.14 over two years) and new ones (playing shorter Up to PLN 200 0.22 than two years). New players constitute a larger 0.39 group among the persons aged 45-54 PLN 201-400 0.67 (20 percent vs. 17 percent) and the ones aged 1.11 PLN 401-600 25-34 (27 percent vs. 22 percent) than among 2.53 the steady ones. When referring to the age of 1.64 PLN 601-800 players we should return to the subject related 3.66 to availability of games and computer game 4.16 PLN 801-1000 6.53 playing, as the average age of a player is related 2.41 to the fact that this form of entertainment is PLN 1001-1200 4.04 dedicated to young persons. The average age of 4.29 players results mainly from fact that computer PLN 1201-1400 5.84 games are a relatively young phenomenon, just 5.39 PLN 1401-1600 like e.g. Internet and just like in case of Internet 7.04 this average will systematically increase along PLN 1601-1800 4.96 with the first generation of players growing old. 6.25 Only presently we deal with the generation that 9.27 PLN 1801-2000 9.25 was born in the new world, the world of Internet 8.49 and games. Players are mostly males, they PLN 2001-2500 7.88 constitute about 59 percent of the whole PLN 2501-3000 10.77 population of players43. However, the persons 8.88 playing games are a very good target group as 9.77 PLN 3001-5000 when comparing them with the rest of the 7.24 population we will realize that they are wealthier PLN 5001-… 2.75 and dominate in the groups earning net over 1.88 PLN 2,000 per person in a household.44 They are % 2 4 6 8 10 12 also better market educated and more prone Source: Millward Brown SMG/KRC TGI/Net Crack to advertising which influences their shopping behaviours. A wider look at players as the target group of production that is also available on the Polish marketing actions by the persons deciding about market – “BMW M3 Challenge” – a game where advertising expenses of companies is not only commercials not only of BMW but also of the wider range measured in the increasing age products related to motorization (e.g. Castrol of a receivers, but also a considerable increase oils) appear. This game distribution was supported in the number and quality of available tools within by WoM actions which simultaneously made it the field of computer games, and even within possible to check both the internaut reaction to a few fields: advergame, static in-game, dynamic this game as well as the perception of BMW in-game, as this is the division of advertising brand in relation to the game itself. The results possibilities when using computer games. of buzz marketing were great, over 75 percent Advergames are dedicated productions that of players estimated BMW brand positively, are realized directly for an advertiser or a group 21 percent – neutrally and only 4 percent of them of advertisers. These productions are most often had negative attitude towards the brand.45 aimed at younger audience, however, it may be Static in-game is based on placing in an already noticed that there are also interesting existing production a static advertising (e.g. solutions dedicated to other target groups. A billboard, balloon with a logo) or a product perfect example of this may be a German (product placement variety). Such actions are 76 Strategic report IAB Poland
  • 67. Advergaming – Advertising in Games presently seldom made use of in Poland due to Stationary and mobile consoles are not only the necessity of cooperation between advertisers a source of fun connected with games but also or advertising agencies and game producers. The a home multimedia entertainment centre by productions of brands present in Poland and in means of which a film can be watched in Blu-ray games available on the Polish market are based (e.g. PlayStation 3), a movie can be rented online mainly on foreign tiles and global advertising (Xbox 360 from Netfix), Internet can be surfed contracts (e.g.: Diesel, Burger King and Gillette, on, high quality music can be listened to. It is in “Burnout: Paradise City”) and the productions this various, multimedia usage that makes it of Polish publishers leave much to be desired. possible to replace a DVD player that had Quite a breakthrough can be achieved by the eliminated video players from our living rooms titles that are to appear in the middle of 2009 with new toys for big boys and girls, i.e. with and that are mainly connected with brands and high efficiency consoles. The sale of consoles products designed for males and drivers. in Poland has increased, Sony PlayStation Dynamic in-game is the field in case of which dominates, it achieved in 2008 the sale on the year 2008 brought the greatest positive the level of over 57,000 items. The present changes. The development of technologies of greatest competitor of Sony – Microsoft advertising provision by the American advertising – treads on its heels steadily increasing the network IGA Worldwide as well as noticing range of Xbox 360 what is however surprising the potential of the Polish market allowed to is the low sale level of Wii console that commence cooperation with a local dominates in the world with the number of sold representative. In-game ads is the advertising devices (49 mln) in comparison with Xbox that make dynamic presentation of ads in games (29.68 mln) and PS3 (21.6 mln).46 on PC-s and consoles connected to Internet Mobile phones that according to statistics possible. Ads are displayed in places indicated by constitute the most often used tool of a game producer and an advertising network, entertainment in every Polish home have become whereas their transmission of their display also the most frequently used platform to countdown is carried out by means of an distribute free games – both in the filed of advertising format server. Thanks to such use of classic advergaming and by distribution of games technology taken from Internet advertising and in the advertising model. The first solution is combined with the experience of game producer related to an advertiser providing a free non-invasive dynamic advertising carriers came advergame, the other one requires a user to into being. This new form of advertising is made watch ads before playing a production made use of in Poland by the brands like: BMW, 36,6 available for free by an advertising network (e.g. or Vichy. The final element increasing the range of Games in all their variety on all platforms still players as a target group is both popularization are not a fully used marketing mix tool in Poland, of game platforms and increase in their capacity. however, the actions of Polish advergaming The platforms that can be presently successfully agencies may change this situation diametrically used for game playing include personal in the years 2009-2011. computers, consoles and mobile phones. Playing on a home PC does not only stand for playing installed games, but also – or maybe most of all – online games available via a search engine. Online games apart from entertainment in case of productions made in flash technology 38Entertainment and Leisure Software Publishers Association (range of the largest service with the games of 39Millward Brown SMG/KRC TGI/Net Crack 40Millward Brown SMG/KRC TGI/Net Crack this type in Poland – – reaches over 3 mln 41ESA & IGN’s 2008 42ESA & IGN’s 2008 unique users a month) offer also a contest based 43Millward Brown SMG/KRC TGI/Net Crack on strategic games with community elements 44Millward Brown SMG/KRC TGI/Net Crack 45Jogo Media 2008 MMO (Massive Multiplayer Online, e.g. 45VG Chartz or OGame). August-September 2009 Special supplement to „Media & Marketing Polska” 77
  • 68. Internet 2008: Online advertising Word of mouth marketing aware that they are experts, they will engage „(...) opinion-Ieading 10 percent themselves in it regardless of the remuneration. of any target market determine And it is like this in fact, they are very important to brands regardless of their participation in what the other 90 percent think, a WoM campaign as it is up to opinion leaders to buy and do (...)” a large degree if a brand is a success or Marsden (London School of Economics) a failure. It refers in particular to these brands whose recommendations customers seek in Word of mouth marketing is the tool that Internet. I word to mouth marketing we build in 2008 created furore in Internet and enjoyed a strong relationship with a brand customer. a huge dynamics of growth of orders of this type We base on that assumption that the persons of services. Due to its increasing importance it will feel appreciated and important and then we appears in the report for the first time. do not have to pay them. We create websites In what way is Internet used in WoM actions? where they communicate with other leaders What is word of mouth marketing in the Polish taking part in a campaign and this way they know network? they are a part of a larger entirety. Although we To put it shortly, word of mouth marketing do not pay to opinion leaders used in campaigns, stands for exerting influence on customers by such cooperation model is based on gadget or identifying and effecting on environment opinion product distribution and most of all on being leaders and trendsetters. WoM makes use of informed about some ideas earlier and batter the power of the net of relationships and than others. interactions for advertising purposes. Internet smoothed greatly both identification and Tools recruitment, as well as two-way communication The primary tools that word to mouth with opinion leaders and evangelists (see: marketing makes use are as follow: subchapter “For whom WoM”). – viral; – buzz; What is WoM in the net – recommendation marketing; WoM acts on the basis of a personal – ambassador programs; recommendation. Opinion leaders, i.e. specially – cooperation with opinion leaders, bloggers. selected persons taking part in a word of mouth campaign pass to one another information Word to mouth marketing determines the about a brand from mouth to mouth, from contents of communication, enables to use the a communicator to a communicator, from credibility of a person passing a recommendation as a person leaving a post to the one reading it on well as to reach a target group cheaply and to make a forum. The psychological basis that is used in a product an important conversation topic. WoM such campaigns, is the so-called Hawthorne’s marketing is the technique of inducing social buzz by effect that says if we tell a selected group of means of small means by preparing an attractive persons that they are very important for a message or wisely designed MgM mechanism. One brand, a product or an idea and make them of the channels of information passing to 78 Strategic report IAB Poland
  • 69. Word of mouth marketing customers is the channel based on a personal 100 percent. When conducting WoM campaigns recommendation. Word to mouth marketing makes we rely on directives prepared by the Word of use of lots of communication channels – by a gossip Mouth Marketing Association that in short can passed on personally, virus advertising camping as be presented in three main assumptions: well as the actions within Internet amplifying, public honesty, identity, openness. It means that the relations or partisan marketing. Briefly speaking opinion leaders taking part in a word to mouth a well-constructed WoM campaigns resembles campaign always admit that they take part in a crossmedia campaign. a marketing campaign, spread only their own opinions and do not falsify their identity. For whom WoM At the beginning of 2008 renowned agencies Along with the development of marketing associated in the working group of word to techniques WoM has no longer been perceived as mouth marketing at IAB started to work over a tool to reach young target groups, party- the code of online word of mouth marketing -goers, school youth. WoM is an effective ethics which is to regulate the actions within solution in case of advertising campaigns of WoM in Poland. products designed for a wide spectrum of target groups. WoM seems to work perfect in case of e.g. brands designed for the mother with Summary children segment, household appliances and A skilful and non aggressive request to test audio/video devices as well as financial services. a product and share opinions related to it with other customers is going to result in crossing On some level of generalization we may say the barrier that has hitherto been considered that a product that is perfect for WoM uncrossable by some brands – it is the marketing should meet the following conditions: customers who share information about it, pass – be objectively good; opinions and ideas that so far has reached them – has a large potential of carrierness only by classic channels of communication. This – virusness; way word to mouth marketing helps to rebuild – be complicated of indicative of us; customer’s trust in advertising. – be a novelty/innovation. Media houses in Poland include WoM in mediaplans of a large part of FMCG campaigns conducted in Internet as cheap and at the same time effective support to standard actions. WoM actions can be divided in two groups: – Ad hoc projects – word to mouth marketing ensures support within a propagation of a catchy marketing idea on which an integrated advertising campaign is based or buzz marketing content propagated by means of appropriately selected communication channel is created. – Permanent projects – word to mouth marketing in a permanent way creates a brand image, improves its perception by conducting planned actions based on the net of the spread the word about a brand. Ethics A skilfully conducted word to mouth campaign is ethical and in compliance with the Polish law in August-September 2009 Special supplement to „Media & Marketing Polska” 79
  • 70. Internet 2008: Online advertising Appendix: Internet advertising and law – selected issues Pop-up (pop-under) spamdexing is the principle according to which the Pop-up or pop-down ads are permissible. website contents, which are indexed by search However, in some situation using them can be engine systems, is the same as the website qualified as an act of unfair competition defined in contents with which an internaut entering a given art. 16 par. 1 point 5 of the Act on Combating website visits familiarizes with. In relation to the Unfair Competition. This regulation finds an ad above the unfair actions involve various methods of arduous should such ad “constitute significant hiding key words e.g. by using a text in the color of interference in the sphere of privacy, in particular the background, placing it on an invisible element by abusing technical mass media”. According to or in the place that is usually not looked at by the explanations of the Chairman of UOKiK the a user or finally a dirty business defined as dishonest advertising includes these pop-ups and cloaking, i.e. of building a website, especially other similar sort of ads “in which the cross field prepared for the search engine systems, that is is inactive or runs away from the cursor or does different from the one that is visible to internauts. not have a closing field at all or its closing field In the last case a user is redirected to the appears only after a dozen of seconds or it is website other than the website which appeared in a sound one, often very laud”. search results. If it is stated that another entrepreneur uses this sort of unfair methods of Web positioning – SEO web positioning there are grounds to find them to Positioning or optimization of websites is the be an act of unfair competition within the meaning adjustment of the contents and code of websites of art.3 par. 1 of the Act on Combating Unfair so that the service could be more visible Competition. (recognized better) in search engines. These actions are permitted, however, some SEO Search Engine Marketing (SEM) methods can infringe the law, in particular the Two groups of legal issues are related to regulations of the Act on Combating Unfair sponsored links. Firstly sponsored links must be Competition. absolutely distinguished from ordinary links Internet service creators place key words they appearing as natural search results. Secondly, want their services to be associated with (so- what evokes controversies is the legal estimation -called meta tags) in the headlines of websites. of a contextual ad. Making use of a contextual ad Optimization of a website code in this case relies is permissible indisputably in the situation when an on proper selection of key words. Legal advertiser uses generic names of goods or controversies thus appear when a third’s party services (e.g. skis) as key words. Whereas legal trade mark (e.g. “playboy”) is used as a key word. controversies are induced by using the The actions of this sort, i.e. the ones that lure designations third parties have legal rights to (e.g. internauts into their website, can be treated as an third party’s trade mark). Presently there is no act of unfair competition defined in art. 3 par. 1 Polish jurisdiction as regards this subject. Thus of the Act on Combating Unfair Competition decisions of Polish courts related to Google cases (“contrary to good manners”). In some cases they will be surely influenced by verdicts of the Court of may also consist an act of unfair competition is an Justice of the European Communities. They are ad is misleading (art. 16 par. 1 point 2 of the Act expected to be pronounced in 2010. on Combating Unfair Competition). This sort of attitude has been confirmed in the decisions E-mailing of Polish courts. The rules of conducting e-mail advertising are Whereas in case of website contents included in art. 10 of the Act on providing services optimization the primary principle of distinguishing via electronic communication networks introducing between White hat SEO and Black hat SEO, the so-call spam prohibition. According to this 80 Strategic report IAB Poland
  • 71. Appendix: Reklama internetowa a prawo – wybrane zagadnienia regulation sending so-called commercial other entrepreneurs not having to obtain consent information by the means of electronic of the addressees of such messages. The senders communication (e.g. e-mailing, SMS, MMS) is of such messages are not allowed, however, to permissible if an addressee of such communication receive any benefits from the entity whose image agrees to that a priori. The concept of or goods/services are promoted this way. It does “commercial information” covers various forms of not refer only to direct benefits (e.g. commercial advertising (e.g. company newsletter), remuneration), but also to indirect benefits (e.g. what it, however, does not cover is the actions additional facilities when making use of service within social advertising (e.g. e-mailing promoting administrator’s services). a political party or a confessional association). Viral marketing may also consist in encouraging The spam prohibition covers not only sending users to inform consciously their acquaintances advertising materials to natural persons but also about a given product or service. The methods to legal persons or economic entities not having that are used for it include placing proper scripts legal personality (e.g. civil partnerships). It would in Internet services. The entities making use of be impermissible to send unordered commercial this technique of viral marketing should follow the information to the following address: guidelines below so as to eliminate a legal risk connected with this sort of actions. Firstly, it According to the Act commercial information is is impermissible to enclose advertising materials considered to be ordered if an addressee gives his other than the materials recommended by consent to receive materials of this sort. a sender of a given message. Secondly, a system A consent cannot be assumed to be given just on should be built in such a way that a message the grounds of putting one’s e-mail address in sender had to give his first name and surname Internet. Thus it would be in violation of the Act to as well as his e-mail address. This condition is to use addresses collected on various public forums smooth possible complaint filing by an addressee (e.g. discussion lists) for advertising purposes, in the situation when he does not know the sender unless their disposers gave their explicit consent and he has not given his consent to receive this for e-mailing. sort of messages from such sender. Thirdly, it The infringement of the spam prohibition may would be impermissible for a service administrator result in civil and legal sanctions. In the first case to keep addresses of message receivers without an e-mailing addressee may claim the obtaining their explicit consent for this action (and determination of the infringement of his personal possible further usage of these addressees for rights and compensation. In practice the amounts marketing purposes). awarded by courts do not exceed PLN 10,000. Sending unordered commercial information is also Word of mouth marketing an offence that is liable to affine. Its upper limit is The essence of word to mouth marketing (buzz PLN 5,000 regardless of the number of e-mails marketing) is the use of the influence of various sent. persons on decisions concerning a purchase being When this report is being drawn an made by other persons. These opinions may be administrative sanction for spams is planned to be expressed by so-called leaders, experts and even introduced within the amendment of ordinary customers. The situation when these telecommunication law. According to the bill persons encourage to buy a given product or service prepared by the Ministry of Infrastructure the for the sake of remuneration they receive from an president of the Electronic Communication Office advertiser is prohibited as the addressees of such (UKE) is to have the right to impose a fine messages are convinced that these opinions are amounting to PLN 100,000. neutral. A classic example of such impermissible situation includes seemingly neutral entries on Viral marketing discussion forums (so-called comments). This sort Using viral marketing techniques is permissible. of actions constitutes an act of unfair competition In case of the action consisting in switching e.g. described in art.16 par. 1 point 4 of the Act on advertising films by users the art. 3 par 2 of Act Combating Unfair Competition (so-called hidden ad). on providing services via electronic communication According to this regulation “the act of unfair networks shall be applicable in particular. competition within advertising is a statement that According to this regulation sending messages encouraging to buy goods or services seems to be among natural persons is not subject to the Act, a neutral message”. Such actions may also be including the regulations of spam prohibition. considered an unfair market practice the art. 7 Consequently natural persons may send to one point 22 of the Act of counteracting unfair market another message promoting goods or services of practices refers to. August-September 2009 Special supplement to “Media & Marketing Polska” 81
  • 72. Internet 2008: Electronic trading Chapter 3 Electronic trading Classifieds and yellow pages The revenues of the classifieds and yellow general economic situation. The boom in the real pages sector in 2008 amounted to approx. estate market in Poland in the first half of 2008 PLN 226.1 mln47 and in comparison with the brought the increase in classified revenues and year 2007 they increased by 43 percent. This also let the new players gain some market share. growth is smaller than the general increase of A rapid change of macroeconomic situation at the whole advertising spending in Internet (57 the end of the year resulted in the slow down of percent). It may be caused by two reasons. this trend. Additionally, it moderated the Most of all, this sector is relatively mature and expenses of firms from other sectors of developed. In comparison with the steadily economy. As regards the whole year 2008 the increasing number of entities competing actively influence of this slow down is not visible yet, but for revenues from display advertising new strong it will presumably count much more on this players in the classifieds and yellow pages year’s revenues. market are much less numerous and they often enter the market with a free model or much In the United States which as the first one cheaper offer than of competitors. As a result experienced painfully effects of the economic the increase of revenues in this sector depends crises, the revenues of the classifieds sector mainly on the dynamics of revenues increase of already in the first half of 2008 dropped by 5.2 the largest websites. percent in comparison with the corresponding period of the year 2007 (from USD 1 billion 699 The other reason is the large dependence of mln to USD 1 billion 611 mln).48 The whole year this category of internet advertising on the 2008 was closed with even bigger 9.5 percent Number of classified ads on websites in the Real Estates category in 2008 1,000,000 800,000 600,000 400,000 200,000 0 I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 Gratka Domiporta GazetaDom OtoDom Source: Own data, Polska 82 Strategic report IAB Poland
  • 73. Classifieds and yellow pages drop (from USD 3 billion 321 mln to USD 3 billion are content providers. This popular model of 174 mln).49 partnership is beneficial to both parties. It In relation to the Polish online classifieds increases the reach of classified ads and, what market it is worth paying attention to the follows, their effectiveness (i.e. the number of consolidation trend. Finally in 2008 the group of generated leads). It increases also the reach and leading Internet publishers active in all most advertising space of a portal. important thematic categories of classified ads (jobs, real estate, cars) came into being. Except Jobs Gratka belonging to Polskapresse this group In 2008 over 1,304,000 recruitment postings includes Agora strengthened by the purchase of were published, which stands for a drop by almost (among others: GazetaPraca, 100,000 in comparison with 2007. Over 48,000 GazetaDom, Domiporta, Autotrader), Allegro employers seeking employees were registered in the Group (OtoMoto, OtoDom, AllePraca, job websites. The largest number of employers AlleWakacje) and the group It is to sought employees in the following regions: Masovian these four publishers that the majority of (over 27 percent of all employment offers), Silesian classified revenues goes to. What is also worth and Wielkopolska. The largest number of noticing is the increasing activity of O2 (NajAuto employment offers in 2008 (over 580,000, and NajDom) which has chosen though another 43 percent of the total number) were directed to business model, i.e. ad placement both by specialists without higher education.50 private persons and companies for free. Real estate Three largest horizontal portals (Onet, WP , Prosperity in the real estate market in Poland Interia) do not pursue their own sales activity in 2008 resulted in the increase in advertising within classified advertising. Each of them, activity of real estate agencies and primary however, has a classified section within the market developers. And thus both the traffic and portal website. They are run in cooperation with number of offers on classified websites the above mentioned classified publishers who increased during this year. Number of classified ads on websites in the Cars category in 2008 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 I 2008 II 2008 III 2008 IV 2008 V 2008 VI 2008 VII 2008 VIII 2008 IX 2008 X 2008 XI 2008 XII 2008 OtoMoto Gratka Autotrader NajAuto Source: Own data, Polska August-September 2009 Special supplement to “Media & Marketing Polska” 83
  • 74. Internet 2008: Electronic Trading As far as this category in concerned, the During the last few years the yellow pages press advertising is still important for clients. branch puts the main emphasis on online Although it does not bring such a direct sales activities and it is also the development direction result as Internet does it is perceived as the set by users who migrate from printed media to best tool to build an image and a brand, Internet. Because of the growing potential of particularly by the primary market developers. It this segment not only traditional leaders act on relates only, however, to display advertising. the market (“Panorama Firm”, “Polskie Książki Budgets for classified advertising are already Telefoniczne”), but also new players like Onet mostly spent on Internet that is cheaper, has ( and WP ( strive to win their incomparably wider reach and provides more share in this branch, e.g.). Due to the dynamic sales contacts. development of mapping services geolocational services became an inseparable element of Cars yellow pages. In the promotion of sales of new vehicles Internet gains more and more importance, but The most frequently sought entries are tightly still it is rather a complementary communication connected with the market trends. There are channel. Whereas trading of second-hand cars searching categories like banks, cashpoints, almost totally moved from a car markets and restaurants or hotels, whose popularity does classified press to Internet. It is interesting that not decrease all year long. In case of some classified websites from this category not only branches, like tourism or education their fulfil the transaction function, but also an seasonality can be observed. informative one. It is the best source of information about current prices and popularity “Yellow advertising market”, wanting to keep of defined models and makes. OtoMoto, the up with internauts’ needs, will invest in quality unquestioned leader in this category, is at the improvement and contents amount increase as same time the most popular automotive website well as the development of advertising forms, in Poland. It has the highest numbers of users paying particular attention to search engine not only among other classified websites but marketing (SEM). More specialized products also the informative ones. fluffing needs of narrowly defined target groups (verticalization), new forms of distribution Yellow pages (mobile devices) and services as well as Yellow pages, presently more often called specialist verticals for particular branches, “local search engines” is the collection of services or products are bound to appear. information about companies, products and services available in a free of charge paper (offline) and electronic (online) form. The primary feature of yellow pages is the conjunction of purchasers and sellers. The presentation of a company offer on yellow pages is subject to payment depending on its format. Main customers of yellow pages include firms of Small Business sector for which advertising in a 47IAB Polska estimation on the basis of the IAB AdEx research 2008 catalogue or a tele-address search engine the conducted by IAB Polska and PwC Polska 48Interactive ADvertising Bureau (IAB) and PricewaterhouseCoopers only way to present their offer. However, yellow (PwC), „IAB Internet Advertising Report: 2008 Full-Year Results”, March 30, 2009 pages seem to be also an attractive advertising 49Interactive ADvertising Bureau (IAB) and PricewaterhouseCoopers medium for large business entities that (PwC), „IAB Internet Advertising Report: 2008 Full-Year Results”, March 30, 2009 appreciate them for a user profile 50Expert Report „Recruitment in Polish Internet”,, April 2008 – persons/companies seeking products/services, 51PRO MilwardBrown SMG KRC research, April 2008 interested in the purchase.51 84 Strategic report IAB Poland
  • 75. Auctions and e-commerce Auctions and e-commerce In 2008 Poles spent over PLN 11.01 billion on value could have been even three times bigger. online shopping which constitutes 36.4 percent It created a market niche where agencies quickly growth in comparison with the previous year. appeared (if in a given country to realize an order The share of transaction realized by means of one needed a local correspondence address). internet auctions (CtoC, BtoC) increased by This situation related mainly to the USA where about 1.9 percent to the level of 58.86 percent more expensive electronic equipment (e.g. of sales value (PLN 6.480 billion). Ipso facto via computers, photo cameras) was bought most internet shops (BtoC) as much as 41.14 percent willingly. of money i.e. PLN 4.53 billion was spent on We also have to remember about the influence online shopping. internet exerts on purchases made outside the net. Over 90 percent of Polish internauts Polish e-commerce market value declare to use internet as support of their purchasing decisions.53 At the same time only internet shops auction platforms 66 percent of net users54 declare that they have ever made any purchase there. What is more the 2001 48 average of transaction value in such schema 60 152 (online searching, offline shopping) is much higher 2002 180 than in other behaviour variants. Also the 2003 328 specific character of branches is of importance, 410 i.e. the more expensive the product, the more 2004 980 921 frequent the occurrence of this type of 1,300 customer behaviour model55. The value of 2005 1,800 products bought under the influence of internet 2006 2,000 but outside it amounted in 2008 to about PLN 3,000 3,470 17 billion (in 2007 about PLN 9 billion, increase 2007 4,600 by 89 percent). The effect of searching in 2008 4,530 internet and purchasing outside will grow 6,480 stronger (growth dynamics is stronger than mln 2,000 4,000 6,000 8,000 internet trading itself) which is confirmed by PLN experience of more developed countries (e.g.: Source: SMB “Polish e-commerce market” Great Britain, Germany, France). The estimates include solely the turnover of goods, excluding the sector of services. In case For a few months in 2008 due to the strong of the majority of services the penetration of Polish zloty the number of purchases made customer service channels (online and offline) is abroad increased considerably. For Poland this stronger, sometimes even indispensable to average amounts to about 2 percent52, for 25 conclude a deal, that is why it is difficult to countries of Europe – 7 percent, for 15 categorize properly this sort of sales. The countries of the European Union – 9 percent. In branch that is relatively well monitored is online the period from March to September 2008 this tourism whose value (Poles’ expenses) in 2008 is August-September 2009 Special supplement to “Media & Marketing Polska” 85
  • 76. Internet 2008: Electronic trading estimated to reach about PLN 850 mln Let us compare now an almost 2 percent (including package tours – PLN 300 mln, airplane share of e-commerce in retail sale to the tickets – PLN 300-350 mln, others including situation in Great Britain considered as the hotel booking, insurance, car rental etc.). These most developed European e-market. A similar estimates relate to sales via internet, without evaluation method (comparison with total retail sales by stationary customer service centres, sale) applied by Verdit Research estimated which some internet players have. Let’s e-commerce share in the whole trade in 2007 to remember that some tourist agencies sell reach 5.2 percent. Obviously we need to take tourist services of a few categories (e.g. trips crucial differences, e.g. society wealth and and tickets). It should be emphasised that the parameters of internet traffic (penetration, effect of net searching and of outside buying may price, throughput) into consideration. be even stronger than in case of goods, Nevertheless e-commerce in Poland shows still a products. large growth potential. A question “how quickly it Evaluating e-commerce share in total retail will be realized” remains. trade (large discrepancies between branches) is Analysing the cycle of mature e-commerce very difficult without a detailed calculation of market development we are able to distinguish expenses in particular branch categories. Taking legible phases related to the dynamics of annual into consideration the whole retail sales acc. to growth: revolution (over 100 percent growth year GUS (Central Statistical Office) we receive about in, year out), development (over 50 percent 1.91 percent share of e-commerce in trading growth), evolution (over 20 percent), stabilization (note – a considerable share of retail sale (below 20 percent). In 2008 the British market belongs to food articles whose share in internet was in the evolution phase (about 30 percent of is still rather small). By means of the analogues annual growth), the American one – stabilization method of share evaluation we receive the (a few dozens of percent). Gradual flattening of following results as regards the year 2007: growth dynamics curves is now intensified by the 1.55 percent of e-commerce in total retail trade present economic situation and consumer moods. which stands for 22.4 percent increase. The index growth rate forecasts for future years This growth is not surprising if we compare are nowadays corrected down (by 10 percent on percent growth of turnovers of traditional trade. the average), however still being in black (which The retail sale in 2008 grew on the average by cannot be said about traditional trade). 13 percent56. The e-commerce noted turnovers The first two phases have already occurred on larger by 36.43 percent year in, year out. the Polish market: Dynamics of annual growths (up to the previous year) 250 200 150 100 50 % 2002 2003 2004 2005 2006 2007 2008 Internet shops e-commerce (total) Auction platforms Source: SMB report: Polish e-commerce market. 25.03.2009 86 Strategic report IAB Poland
  • 77. Auctions and e-commerce By 2005 we observed the “explosion” phase. purchasers. It may mean that the increases of In 2008 we completed the “revolution” phase, e-trading turnouts will to a larger degree depend which was in the fourth quarter of the year more on purchasers in internet and the weakened by the economic slowdown. It is also frequency of purchases being made than on worth mentioning that in 2008 trading was winning new purchasers. The branch of realized by means of internet auctions faster electronic trading does not have a significant than in traditional shops (48.36 percent). influence on technical infrastructure, prices of access devices and the access itself The indicator of general climate of the (parameters of the number of internauts). The economic situation in trading in February 2009 main area of activity should be dedicated to reached the level – 10, which presently does not convincing internauts to buy in internet, as their indicate the trend reverse. The year 2009 for behaviour may be decisive as regards the market the Polish e-commerce will mean an initial period dynamics. of the evolutionary development phase at the Positive information within this area relate to estimated increase of returns on the level of 20 activities carried out at the state level percent in 2009. What will get stronger, concerning internet access (including internet however, is the internet searching effect before development in rural areas) or the governmental purchase making – finding the possible offer will program of activities for the benefit of support be significant to consumers having access to the to e-trading and e-services58. We should net due to economic slowdown. also mention the initiative of the greatest Polish e-commerce enterprises appointing Purchasers in Internet within the SMB (Direct Marketing Association) According to Megapanel research during 2008 the e-commerce group focused on proactive the number of internauts increased by 1.4 mln, support of e-trading development. which in comparison with 2007 constitutes the growth by 9.8 percent at the same time already Internet shops 66 percent of internauts declare to do shopping At the end of December 2008 the catalogue of in the net57. It stands for a 10 percent growth in internet shops kept by included 4,615 relation to the previous year. registered verified e-commerce businesses. At What may worry within the longer period is the end of 2007 the number was estimated to the decreasing dynamics of internaut number reach about 4,000 Internet shops (3,300 growth or the percentage of internet entities were registered in the catalogue). It Assortment structure of Polish Internet shops Category 2007 2008 2008 Growth 2008 (%) do 2007 (%) House & Garden 492 818 17.7 66.3 Gifts & Accessories 350 496 10.7 41.7 Health & Beauty 343 489 10.6 42.6 Clothes 297 454 9.8 52.9 Photo & Electronic Appliances 342 433 9.4 26.6 Computer 336 404 8.8 20.2 Child 250 335 7.3 34.0 Sport & Tourism 222 319 6.9 43.7 Hobby 241 285 6.2 18.3 Auto & Moto 171 233 5.0 36.3 Books & Multimedia 202 227 4.9 12.4 Dainties 83 122 2.6 47.0 Total 3,257 4,615 100.0 41.7 Source: 12.2007 August-September 2009 Special supplement to “Media & Marketing Polska” 87
  • 78. Internet 2008: Electronic trading stands for the growth of total number of shops competition (which is suggested by the greater by 41.7 percent. The greatest growth year in number of hits and much longer time spent by an year out took place in the categories of House internaut on websites of internet shops). & Garden (66.3 percent), Clothes (52.9 percent) Bankruptcies of some internet shops were and Dainties (47 percent). widely talked about in media at the end of 2008 and at the beginning of 2009. Undoubtedly it is Such large growth of shop number may be an abuse to treat equally the cases when a related to the following factors: business activity is closed because of its • new payers of e-commerce (in particular unprofitabliness and the swindles by means of expanding internet with distribution channels of internet (taking advantage most of all of risky existing firms); behaviour of consumers and not technological • the shops that have existed before, but abuses). Nevertheless, the strongly negative were not categorized register in the catalogue; undertone of the above is the fact that e- • proffesionalization of an activity by natural commerce entrepreneurs will have to face. Trust, persons (business activity); reliability, safety are becoming, next to price and • development of the offer of e-commerce comfort, significant factors of online shopping. platforms providing access to infrastructure to conduct one’s own internet shop. Internet auctions Just like in case of internet shops auctions The comparison of monthly traffic statistics recorded the growth of the number of visitors, but (December 2007 to December 2008) acc. to the drop of range is related to a larger number of Megapanel research shows that on one hand the internauts. What is also visible is the effect of the category of Internet Shops was visited by 5 growth of number of hits and the time spent on percent more persons, but on the other hand it making a decision but to a smaller degree than in meant in fact the range decrease (due to the case of internet shops (finding anew offerer is larger growth of the number of new internauts). carried out within the same platform). It confirms the weakening dynamics in the According to such depiction, it is not only the growth of new purchasers which for shops range that dropped but also the number of results in the necessity of more intensive internauts in comparison with December 2007. Thus where do growths in separately depicted Comparison of monthly traffic statistics – category of Internet shops Dec. 2007 Dec. 2008 Change (%) RU 7,154,851 7,569,146 5.79 PV 360,760,825 491,506,911 36.24 Average time per user 00:33:51 00:48:04 42.00 Range (%) 50.59 48.76 -3.62 Source: Megapanel PBI/Gemius, XII 2007-2008 Comparison of monthly traffic statistics – category of Internet auctions Dec. 2007 Dec. 2008 Change (%) RU 7,795,880 8,220,882 5.45 PV 3,717,170,962 4,564,755,783 22.80 Average time per user 04:08:21 05:03:29 22.20 Range (%) 55.13 52.96 -3.94 Source: Megapanel PBI/Gemius, XII 2007-2008 88 Strategic report IAB Poland
  • 79. Auctions and e-commerce Comparison of monthly traffic statistics – category of Internet shops + auctions Dec. 2007 Dec. 2008 Change (%) RU 9,729,786 9,367,755 -3.72 Range (%) 68.80 60.35 -12.28 Source: Megapanel PBI/Gemius, XII 2007-2008 – transaction values expressed in thousand of PLN 2006 2007 2008 Annual transaction value 2,500 3,800 5,200 Year-to-previous year percent 52 37 Number of sold items 46 70.5 96.7 Year-to- previous year percent 53 37 Source: auctions and shops come from? Most of all they however, is the effect of using internet to search result from the behaviour of internauts that for the most favourable offer even if the hitherto had used only one form of online purchase is to be made outside the net. The shopping (auctions or shops) and then expended value of purchases made outside internet, but their behaviour with the other shopping form. under its influence may reach even as much as Still it is that is the leader of PLN 25 billion. auction platforms. The service strengthened its The greatest challenges that entrepreneurs position during the year at the expense of other will have to face include the adjustment of their auction platforms by increasing its number of business activity to a slower growth (which may visitors from 7.42 mln internauts in December result in stronger competition in the sector) and 2007 to 8.1 mln in December 2008. It stands in case of companies acting also outside internet for a 99 percent growth, i.e. much more than – an attempt to evaluate and use the “offline the average for the category of auctions. Allegro effect”. also actively wins new internauts – the range of this service remained almost unchanged during the year. An event that was widely talked about refers to eBay’s decision to close the Polish branch of the company and to support the Polish version of the service from abroad. Summary We expect a year of slower growth and of e- -commerce sector stabilization. E-commerce market will exceed the amount of PLN 13.2 billion in 2009 (growth by 20 percent in relation to previous year), including tourist services it will reach PLN 14.5 billion. Without transborder trade stimulation (restrictions related to ordering goods from Poland and even in the 52“Report on cross-border e-commerce in the EU”; Commission of the European Communities countries of the European Union that were 53TNS Infratest for Google 54“Polish Internet” 2008/2009 Gemius commented in press) due to the weal Polish zloty 55TNS Infratest 56Index GUS 2008/2007 no considerable strengthening of shopping 57“Report on cross-border e-commerce in the EU”; Commission of the European Communities abroad can be expected. What will strengthen, 58The Ministry of Economy August-September 2009 Special supplement to “Media & Marketing Polska” 89