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Iab Gemius Do You Cee

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    Iab Gemius Do You Cee Iab Gemius Do You Cee Document Transcript

    • COUNSELORS:Alain Heureux, Filip Pieczyński,Jarosław SobolewskiAUTHORS:Małgorzata Dudko, Michalina Pelc,Bartosz WardzińskiCONTRIBUTORS:Tamás Ács, Vesselin Angelov, MikhailDoroshevich, Catalin Emilian, TomášGregor, Vladimir Houba, Vlad Ionescu,Ľuboš Ivanič, Vibor Kalogjera, MartaKlepka, Alexander Levshin, DmytroLysiuk, Gökhan Mertay, GregorNišavič, Toms Panders, Jolita Reidman,Natalia Szymańska, Judit Völgyesi,Paap Peterson, Ieva KnāķeSUPPORT:Marcin Dukat, Dawid Fillmann, ŁukaszUrbański, Katarzyna ZagórskaThe authors of „Do you CEE? The Internet Market of Central and Eastern Europein 2010” wish to thank Romanian Audit Bureau of Circulations (BRAT) for providing access to data concerning the Romanian internet and for preparing the chapter on the online market in Romania.WITH SPECIAL THANKS TO:Ričardas Baltaduonis, Tomáš Búřil, Joanna Gajewska, Dmitry Gizhdevan, ElvijusGudžiūnas, Hristo Ivanov, Jan Jilek, Plamen Kalinikov, Edgars Kalniņš, AlexanderKim, Piotr Kowalczyk, István Kürti, Martin Kyncl, Tomáš Lauko, Gergana Marinova,Péter Novák, Cezar Paraschiv, Sergey Petrenko, Laurentiu Pop, Igor Rõtov, ViktorsRožkalns, Andrey Sebrant, Dmytro Sholomko, Petar Simeonov, Egidijus Sirvydis,Saša Škorić, Radoš Skrt, Aleksander Stelmakh, Orkun Tekin, Silviu Toma, GaborTóth, Tomáš Varga, Adina Vasilescu, Dilyan Velichkov, Meelis Vill, Alex Visa, ArturWaliszewski, Jurij Ziccer Anatoljewicz
    • ALAIN HEUREUXIAB Europe President and CEOAfter the enormous success of the first Do you CEE? report produced incollaboration with Gemius, I’m delighted to get back to the industry with a second report explaining the dynamics of the CEE region in 2010. Other regional reports will be provided by IAB Europe in response to the positive feedback from the members.CEE remains a special region for us, as we can feel the energy, innovation, creativity and strong growth of these markets. Jarosław Sobolewski (Manager of IAB Poland, Board member IAB Europe and Regional Manager on the CEE Region) and Martin Radelfinger (International Business Director Goldbach Media-Adconion) are working closely with the European team, the Board as well as partners like Gemius in supporting the growth, training local IABs and Partner associations and providing information to the industry. This report serves as a source of valuable information not only for marketers, media houses and advertisers who are looking for new areas for expansion, but also for the younger markets to measure their own progress and identify areas where they can continue to develop and grow. FILIP PIECZYŃSKIGemius Management Board Vice PresidentGemius has the great pleasure to present you Do you CEE? The Internet Marketof Central and Eastern Europe in 2010. This is already our second compendiumof knowledge on the CEE online reality. The last year’s report proved to be immensely popular and revealed the scale of demand for credible and unbiased compilation of data concerning the entire region. The report has also become one of the most eminent and prestigious projects carried out by Gemius.Like in 2009, this year’s report presents a landscape of the region and an overview of each CEE market, discussing its main players, online audience and most popular tools. Those familiar with the 2009 version of the report will appreciate the inclusion of interesting data from two more markets into the analysis: Belarus and Turkey. It is in these countries that Gemius successfully started its operations in the years 2009 and 2010.  I would like to thank our partner in this and last year’s project, IAB Europe, as well as all those whose effort made the creation of the report possible. I cordially invite you to join us in analysing the online reality of Anno Domini 2010 – a year marked by the growing importance of video content, invariable popularity of social networking websites and a battle of web browsers. Do you CEE?
    • TABLE OF CONTENTS10 CEE Online Landscape24 Belarus40 Bulgaria58 Croatia72 Czech Republic88 Estonia102 Hungary120 Latvia138 Lithuania156 Poland172 Romania192 Russia206 Slovakia218 Slovenia230 Turkey246 Ukraine260 Methodological Note264 SATI Methodology
    • 10 ONLINE LANDSCAPEThe online market in Central and characteristics, let us look at the dataEastern Europe is developing; describing the landscape of this fertiletherefore the dynamics of its growth online land.is still one of the key factors indicatingits great potential. Despite the fact The comprehensive description ofthat differences in the development of the online area in Central and Easternthe internet in various CEE countries Europe should focus on three basicare visible, an increase in the number and interrelated elements: size ofof new users in the whole region is market, its level of development andnot losing momentum. In this respect, its business potential. In this chapterthe Central and Eastern European all three approaches will be presentedonline market is growing from and discussed.strength to strength and appears tobe a forward-moving and extremelypromising business sector. To betterunderstand its nature and general MARKET SIZECentral and Eastern Europe is a market Ukraine is one of the exceptions.of over 300 million people, therefore At the beginning of 2010 there werethe online area has tremendous over 45 million people in the countryopportunities for growth. According and less than 8.4 million internetto the gemiusAudience study, at the users. At the same time the onlinebeginning of 2010 in all CEE countries population in Romania was 7.6 million,(plus Turkey) there were over in the Czech Republic it was slightly117 million internet users. However, over 5.2 million and in Hungary almostthis region is extremely diverse and 4.2 million. In contrast, the CEE regionthe differences in sizes of these also covers such small online marketsmarkets are great. The largest market as Latvia (1.2 million internet users),is Russia, where in January 2010 Slovenia (1.1 million internet users)exactly 40.1 million individuals were and Estonia (0.8 million internetusing the internet on a regular basis. users). However, the absolute numberThe second largest and attention- of internet users is only the first stepdrawing online market is Turkey in an exhaustive description of the(almost 22 million internet users), market.however, it is often not countedamong the relevant CEE markets. Such It is extremely important to noteuncertainty does not concern Poland, that what makes the online marketswhere almost 15 million people interesting is also the dynamics ofregularly use the internet. their growth.All other markets are proportionatelysmaller and the size of each onlinepopulation in most cases reflects theactual size of each particular country.Do you CEE? Online Landscape
    • 11Milions of users Internet population Chart 1 Internet population in the CEE region (January 2010); source of data: Ukraine: gemiusAudience; Hungary: gemius/Ipsos Fusion Data; Latvia: gemiusAudience; Belarus: gemiusAudience; Turkey: gemiusAudience; Czech Republic: NetMonitor - SPIR - Mediaresearch & Gemius; Romania: Mercury Research; Slovakia: AIMmonitor - AIM - Mediaresearch & Gemius; Bulgaria: gemiusAudience (data collected using Synovate research); Poland: Megapanel PBI/Gemius; Slovenia: gemiusAudience; Russia: Gemius estimation based on FOM statistics/gemiusAudience Data; Estonia: gemiusAudience (data collected using TURU-UURINGUTE AS research); Lithuania: gemiusAudience; Croatia: gemiusAudience [age groups – CEE: 15+; Russia: 18+; Romania: 14-64; Lithuania: 15-74]
    • 12 Since the beginning of 2009 the As for the largest markets, the general online population in the dynamics of their development seem whole region of Central and Eastern to be inversely proportional to their Europe (together with Turkey) grew size. From January 2009 to January by over 9 million new internet 2010 the number of internet users in users. That is more than the entire Poland increased by 8% and in Russia population of Slovakia. Even more by barely 6%. important is the fact that when growth dynamics are taken into The slowest online population growth consideration, it becomes obvious in 2009 was observed in Lithuania that the largest internet markets are and Croatia. In both countries the not those which develop fastest. In number of regular internet users 2009, as in the previous year, Ukraine increased by 3% (from 1.45 to 1.49 was the country which experienced, million) and 2% (from 1.63 to 1.66 relatively speaking, the greatest million), respectively. increase in the number of internet users (15%). During the same period the online population of Hungary increased by 13% and in Latvia by 12%. It is worth noting that the Latvian market is one of the smallest in the whole CEE region. Internet users 2009-2010Milions of users Growth 2009 - 2010 Chart 2 Internet population in the CEE region – growth (January 2009 – January 2010); source of data: Ukraine: gemiusAudience; Hungary: gemius/Ipsos Fusion Data; Latvia: gemiusAudience; Turkey: gemiusAudience; Czech  Republic: NetMonitor - SPIR - Mediaresearch & Gemius; Romania: Mercury Research; Slovakia: AIMmonitor - AIM - Mediaresearch &  Gemius; Bulgaria: gemiusAudience (data collected using Synovate research); Poland: Megapanel PBI/Gemius; Slovenia: gemiusAudience;  Russia: Gemius estimation based on FOM statistics / gemiusAudience Data; Estonia: gemiusAudience (data collected using TURU- UURINGUTE AS research); Lithuania: gemiusAudience; Croatia: gemiusAudience [age groups – CEE: 15+; Russia: 18+; Romania: 14-64;  Lithuania: 15-74] Do you CEE? Online Landscape
    • 13 MARKET DEVELOPMENTThe size and speed of growth attest to equally promising parts of the world,the potential of the CEE online market. the situation is improving fast.However, in answer to the questionof the state of its development, This is the case in Ukraine, whichanother indicator may be useful, i.e. for several years has been the mostinternet penetration. If one takes dynamically developing online marketinto account the differences in the and in the following comparison holdssize of CEE countries, it becomes the last position with its internetpossible to determine the real level penetration level at a mere 21%.and diversification of the development According to the gemiusAudienceof the internet infrastructure in the study, a quite low internet penetrationregion. level is also found in Belarus (35%) and Russia (36%), which,The general observation does not as a large and extremely diverserefer directly to the data. When market, still faces many obstaclescomparing the CEE online market as to the development of its interneta whole with its western counterpart, infrastructure. Similarly, Turkey, oneit becomes evident that this region still of the newest markets participating indoes not display a penetration level the gemiusAudience study, recordedsimilar to that found in more ‘mature’ an internet penetration level of 40%economies. However, as in other at he beginning of 2010.
    • 14Internet penetrationInternet penetration [%]Chart 3 Internet penetration in the CEE region (January 2009 – January 2010)source of data: Ukraine: gemiusAudience; Hungary: gemius/Ipsos Fusion Data; Latvia: gemiusAudience; Czech Republic: NetMonitor- SPIR - Mediaresearch & Gemius; Romania: Mercury Research; Slovakia: AIMmonitor - AIM - Mediaresearch & Gemius; Bulgaria:gemiusAudience (data collected using Synovate research); Poland: Megapanel PBI/Gemius; Slovenia: gemiusAudience; Turkey: IpsosKMG; Russia: Gemius estimation based on FOM statistics/gemiusAudience Data; Estonia: gemiusAudience (data collected usingTURU-UURINGUTE AS research); Lithuania: gemiusAudience; Croatia: gemiusAudience; Belarus: gemiusAudience (February 2009,January 2010); Romania: Mercury Research; [age groups – CEE: 15+; Russia: 18+; Romania: 14-64; Lithuania: 15-74]Interestingly, the highest level of Should this result be regarded asinternet penetration in Central satisfactory? Yes, especially seeingand Eastern Europe is the domain that no country in this part of theof small and very small countries, world is sluggish when it comes towhich have already managed to cope internet penetration growth. Sincewith a host of challenges associated last year this indicator has increasedwith infrastructural and business in all CEE markets. The greatestdevelopment. In this respect, Estonia growth took place in Belarus.appears to be the undisputed leader Between January 2009 and Januaryof the whole region. In January 2010 2010 internet penetration in thisinternet penetration in this country country increased by astoundingreached a level of 71%. At the 9 percentage points. Significantforefront of the list are the other growth of internet penetration inBaltic countries: Latvia (65%) and 2009 has also been observed inLithuania (57%), as well as Slovenia Poland (7 percentage points) and(62%) and the Czech Republic Latvia (6 percentage points). In turn,(58%). In turn, the average internet for the Czech Republic, Croatia,penetration for the whole region Hungary and Romania 2009 wasat the beginning of 2010 equaled 49%. a year of moderate development,Do you CEE? Online Landscape
    • 16 as internet penetration grew on CEE markets is much lower than these markets by 5 percentage in Western European countries. points. Incidentally, the average The leading position in Europe increase of internet penetration in this respect belongs to the for the entire region was also exactly Nordic markets (Iceland, Sweden, 5 percentage points. Norway, Denmark, and Finland), small countries like the Netherlands While considering the problem of or Luxembourg, as well as ‘mature’ internet development in Central economies such as the United and Eastern Europe, the issue of Kingdom. broadband internet penetration cannot go unnoticed. It is worth In the CEE region there is one remembering that the share of small, yet very interesting and modern, high-speed internet stigmatic market. Croatia, which is in connections on the market is not question, appears to have a virtually only a precise illustration of its brand new internet infrastructure. status, but also a key foundation The ‘online boom’ on that market for its future development. began suddenly and caused a massive flood of completely new Apart from Estonia, where technologies. Croatia did not have broadband internet penetration time to develop the infrastructure per household amounted to 62% of the internet gradually; it began in 2009, the share of high speed with the introduction of the newest internet connections on other possible solutions available. Broadband penetration - 2009Broadband penetration [%] Chart 4 Broadband internet penetration per households in the CEE region and Western Europe; sources of data: Eurostat, broadband.ua, Gemius calculations based on ITU, Ipsos, Turkey census, Russian census, National Statistical Committee of the Republic of Belarus and ANCOM (National Authority for Administration and Ruling in Communications of Romania) Do you CEE? Online Landscape
    • 17This is rather an extreme example;however, it shows clearly one ofthe most important characteristicsof the whole region. Despite the factthat the penetration of broadbandinternet remains lower than inWestern Europe, it is crucial toremember that the whole onlineindustry in CEE began to developlater than in western economies.Due to this fact, the natural processof improving and exchanging oldinternet technologies, practicallyspeaking, does not apply to mostcountries in this part of Europe.This is one of the features whichmake this region a place withextraordinary potential. The CEEonline market is something akinto a half-written book. In the nearfuture it will be filled only withthe newest content.
    • 18 MARKET POTENTIALWhen a new medium creates a space often making significant shifts withinfor lucrative business activities, general budgets for all types of media.it immediately becomes a huge Although the global economic crisisindustry. This stage of development has led to a slowdown in the dynamicshas already taken place for the of online adspending on some CEEinternet in Central and Eastern Europe. markets, the general trend has beenFor years the ultimate indicator of its maintained. It is important to note atdevelopment has been - and still is this point that the interpretation of- money. And whenever money met data for online adspends must precedethe internet, online advertising always awareness that the methodology usedtriumphed. to measure it differs from country to country and depends on the researchCurrently, there is no need to convince company. However, the overall pictureanybody in the CEE region that online of online adspends in this regionadvertising is the future and the basis appears to be quite clear.for commercial operations withindigital media. Year on year, advertisers In 2009 on all CEE markets includedspend more money on the internet, in this summary over 1.3 billion EuroOnline adspendsChart 5 Online adspends in the CEE region (2008-2009);source of data: TNS Gallup; BG Piero & Argent; SPIR (Admonitor); TNS Emor; IAB Europe; PricewaterhouseCoopers; TNSMI; lra.lv; Ukra-inian Advertisement Coalition; AKAR; marketing.by; Gemius; (Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia,Slovenia, Turkey: gross values; Belarus, Estonia, Latvia, Lithuania, Russia, Ukraine: net values)Do you CEE? Online Landscape
    • 19was spent for various kinds of online Due to the global economic collapse,advertising. This equates to a 11% 2009 was also a year of significantincrease of online adspends compared declines in online advertising spends.to the previous year. The largest The greatest falls were observedamount of online ad-money is found in Lithuania (-33%), Latvia (-32%)on the largest markets, like Russia, and Estonia (-22%). Thankfully,where in 2009 advertisers spent the prognosis for 2010 is veryalmost 494 million Euros. During promising. For example, a 15%the same period in Poland the volume increase in Romania and a 16%of online advertising expenditures increase in Lithuania are expectedequaled slightly more than 296 million within the next year.Euro, while in the Czech Republicalmost 250 million Euro was spent. As it is the case with describing onlineThis market recorded the second market size, one should rememberlargest increase in online advertising that in estimating business potential,expenditures, 32% to be exact. absolute values represent only a halfThe most rapid increase of online of the truth. When the total volumeadspends in the period between 2008 of online adspends is compared withand 2009 was observed in Ukraine. the number of internet users living inIn 2009 almost 15 million Euro each country, the juxtaposition of CEEwas spent on this market, which is markets leaders changes profoundly.an increase of 45%.
    • 20Online adspends per internet userChart 6 Online adspends per internet user in the CEE region (2009);source of data: TNS Gallup; BG Piero & Argent; SPIR (Admonitor); TNS Emor; IAB Europe; PricewaterhouseCoopers; lra.lv; UkrainianAdvertisement Coalition; AKAR; marketing.by; Gemius; (Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia, Slovenia,Turkey: gross values; Belarus, Estonia, Latvia, Lithuania, Russia, Ukraine: net values)Although the largest amount of spent barely one Euro per averagemoney on online advertising is spent Belarusian internet user last year.in Russia, the industry fights for the Great hopes are pinned on the recentaverage internet user most fiercely campaign aiming to activate thein the Czech Republic, where 48 Euro Belarusian internet industry. One thingwas spent on this purpose in 2009. is certain: this market is definitelyIn the same period, advertisers in worth fighting for.Poland and Hungary spent 20 Euroto attract and acquire one customeron the internet. Russia comes fifthamong all CEE markets with a resultof 12 Euro per average internet user.A similar amount of money for onlineadvertising is spent in Slovakia (11Euro).Finally, the weakest market inthe CEE region is Belarus. In 2009only 4.3 million Euro was spent ononline advertising in this country.The rapid increase in the numberof internet users has caused theamount of money available to shrinkin a relatively constant manner.It is noteworthy that advertisersDo you CEE? Online Landscape
    • 22 A STEP FORWARDIt is easy to demonstrate thatthe online market in Central andEastern Europe is a very interestingand promising area of business.It is also one of the fastest-growingmarkets. The internet industry in thispart of the world is already relativelystrong and year on year is becominglarger, more developed and moreaffluent.Moreover, the most importantfeature of the CEE online market isthat it is extremely diverse, colorfuland unique. This market not only hasmuch more room for new media and isa fertile ground for new investments,but is also a perfect field to conductcomplex and valuable researchstudies.To summarize, the objectives candiffer, but one simple need is common:it is worth knowing as much aspossible about the CEE online marketbecause in the near future it willmost certainly play one of the mostsignificant roles in the global networkwhich we know as the internet. Thus,it is hard to understate the value of thepresent report. It includes a detaileddescription of the online industry in allCEE countries. In this document onecan find the detailed characteristics ofthe major internet players, the onlineaudiences, the most significant onlineindustry organizations operating inthe region and much, much more.We hope that this year’s Do You CEE?report will be absorbing, practical anduseful.Do you CEE? Online Landscape
    • Belarus3.09minternet users 1. MAINPLAYERS_25 1.1. Top10websitesbyreach_25 1.2. Top10websitesbyaveragetimespentperuser_26 1.3. Topportals_28 1.4. Social networks_29 1.5. Onlineclassifiedadsbyreach_30 1.6. Topfinancesitesbyreach_30 2. ONLINEAUDIENCE_32 3. TOOLS_34 3.1. Browsers_34 3.2. Operatingsystems_34 3.3. Search engines_35 3.4. Screen resolutions_35 3.5. Mobiledevices_35 4. ADVERTISINGNETWORKS_36 5. OPINIONSFROMTHEMARKET_37
    • 25 1. MAIN PLAYERS 1.1. TOP 10 WEBSITES BY REACH WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH USERS VIEWS USER USER 1 mail.ru horizontal portal 1 155 292 203 421 963 176 04:23:36 37% 2 onliner.by new technologies portal 351 367 30 300 784 86 01:41:32 11% 3 kp.by news portal 242 600 2 310 352 10 00:20:27 8% 4 irr.by classified ads 226 648 15 174 480 67 00:51:12 7% 5 readme.ru news aggregator 201 415 1 626 006 8 00:20:31 7% 6 naviny.by news portal 160 206 1 052 255 7 00:09:23 5% 7 rbc.ru news portal 146 605 2 384 651 16 00:48:33 5% 8 loveplanet.ru dating service 111 857 17 789 718 159 02:21:29 4% 9 utro.ru news portal 110 218 512 713 5 00:06:51 4% 10 relax.by entertainment directory 103 822 1 620 685 16 00:16:20 3% Table 1 Top 10 websites in Belarus by reach level (gemiusAudience, March 2010)Two of the most significant features According to the gemiusAudienceillustrating the Belarusian online study results, in March 2010 themarket can be easily revealed by greatest number of Belarusian internetanalyzing the above ranking of top users visited mail.ru, one of theonline market players. The first is that, leading Russian horizontal portals,according to the gemiusAudience which takes second place on its ownstudy, 50% of the top 10 most domestic market. However, the otherpopular places on the web visited places on the ranking are occupied byby local internet users are Russian local players. The second website inwebsites. The second characteristic is Belarus is onliner.by, which is a verticalthat only two websites covered portal and extended discussion forum in the above ranking are something focused on new technologies andother than portal or news services. lifestyle. In March 2010 it gainedThe strong market position of a reach level among Belarusianhorizontal platforms is a common internet users of 11%. In turn, thephenomenon observed in many CEE third place was taken by kp.by, thecountries; however the great popularity most popular classical news service.of news services may be especiallysymptomatic for the Belarusian The website irr.by heads the group ofonline area, where free and objective most popular online sites in Belarusinformation seems to be of great value outside the top three in March 2010.and is sought after by many internet This internet database of classifiedusers. ads took fourth place among the most Do you CEE? Belarus
    • 26popular websites, attracting over 9th place in the ranking of websites by220,000 real users and gaining reach are respectively: a Russian newsa reach of 7%. Despite the fact that aggregator, readme.ru (7% reach), andthis website is dedicated to a local two Russian news portals: rbc.ruaudience and has a .by domain, (5% reach) and utro.ru (4% reach).it cannot be considered as a purely However, when it comes to fun andlocal project. Irr.by is owned by entertainment, Belarusians seemBELPRONTO, which is the Belarusian to trust their own local solutions.branch of the famous Russian media Although 4% use the Russian datingholding, Pronto-Moscow. service loveplanet.ru, the ranking of top 10 websites on the market isOne of the most interesting top propped up by the local websitewebsites in Belarus is naviny.by, relax.by. This website is an extendeda news portal run by BelaPAN, online directory of places to goa private local information agency out in Minsk (related to culturalproviding political, economic, and entertainment activities). Itscommercial and financial news. This database includes information onsite, established by Ales Lipai, was in cafes, restaurants, clubs, cinemas,2006 the first Belarusian website to bowling centers, hotels, casinos andwin the Runet prize, a distinction given much more. This website seems toby the Russian Federal Agency for maintain a visible interest of thePress and Mass Communications. online audience. According to the gemiusAudience study, in March 2010Finally, what kind of internet activities it gained a reach of 3%. At the sameare popular among Belarusian internet time, its users spent an average ofusers? They most certainly read news more than 16 minutes on the site.on Russian websites. The 5th, 7th and 1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH REAL USERS USER PER USER 1 mail.ru 1 155 292 176 04:23:36 37% 2 torrents.by 58 905 143 02:30:01 2% 3 loveplanet.ru 111 857 159 02:21:29 4% 4 semeistvo.by 57 455 85 01:52:45 2% 5 borda.ru 26 090 72 01:46:54 1% 6 onliner.by 351 367 86 01:41:32 11% 7 sng.by 4 739 50 01:33:33 0,2% 8 charter97.org 100 646 48 01:18:27 3% 9 belaruspartisan.org 60 696 40 01:14:47 2% 10 football.by 19 645 41 00:56:45 1% Table 2 Top 10 websites in Belarus by average time spent per user (gemiusAudience, March 2010)Do you CEE? Belarus
    • 27Among the websites participating in certainly lead to a situation wherethe gemiusAudience study in Belarus, native products and solutions will takethree of the top ten most popular ones over from foreign players.are Russian. According to the resultsof the above-mentioned research for How about Belarusian websitesMarch 2010, the average internet user which presently engage local internetin Belarus spent almost 4.4 hours and users most often? They seem to begenerated over 170 page views using developing at a rapid rate and looka Russian horizontal portal, mail.ru. and operate more professionally,The last six months in Belarus were an although most of them use veryextremely successful period for this simple business models. The mostbrand, which experienced over 10% ‘engaging’ Belarusian website, whichgrowth without bearing any significant holds second place in the abovecosts. The high quality of this product, ranking, is a torrent tracker. Torrent.bythe similarity of both languages was created almost one year ago(Russian and Belarusian) and a lack and it is a file exchange databaseof local alternatives have made its dedicated to Belarusian internet usersdevelopment possible and, to some only. As its administrators explain,extent, natural. the outbound traffic of this website is closed not because of legal issuesMail.ru is not the only Russian website or internal regulations, but becausewhich Belarusian internet users seem of the cost ($3 per 1GB transmittedto love. ’Love’ is the apt word here outside Belarus). Indeed, thebecause the website in 3rd place is telecommunications market in Belarusa Russian dating platform, loveplanet.ru. is still dominated by Beltelecom, whichDespite the fact that this website is a government-controlled monopoly.enjoys only a 4% reach among This example is an excellent illustrationBelarusian internet users, those who of the problems local onlineused it in March 2010 remained active developers and publishers in Belarusfor over two hours while looking for must continue to struggle with.‘love’ or casual acquaintances. Among all the websites monitored inIn this top ten, there is also one very the gemiusAudience study in Belarus,interesting player from Russia, such sites as: semeistvo.by (an onlineborda.ru. This website is not forum for parents, especially mothers,particularly popular in Belarus – only run by a private individual), sng.by1% of the general audience (slightly (a small but strong online communitymore than 26,000 real users) visited of gamers) and football.by (a verticalit in March 2010. However, those portal devoted to football with onlyindividuals spent an average of almost 1% reach) can be defined as the most2 hours chatting and exchanging engaging ones. However, the rankinginformation with others during this of the top 10 websites by averageperiod. Considering the fact that the time spent per user also includesBelarusian market is still undeveloped three other significant and interestingbut is growing extremely fast, the players.position of this player cannot bedeemed strong or enduring. The Let us begin with Onliner, a Belarusianrevival of local forces, the inflow portal devoted to lifestyle andof capital and the development of new technologies. It is owned byinfrastructure and local initiatives will a private unitary enterprise „Onliner”. Do you CEE? Belarus
    • 28This website was established in 2001 characteristics (at least in terms ofand was initially an online forum, the local market). They operate as anthen, after the implementation of opposition, partisan in some manner,ICT-News, a directory and many to other sources of information onother subservices, became more of the Belarusian internet. It is no secreta regular horizontal platform. From that independent media in Belarus isits beginnings, onliner.by has not lost still a thorny issue, therefore (despiteits lifestyle character, but has grown the high quality of information andand gained significant popularity. engagement of users) advertisersAccording to the gemiusAudience are afraid to use these websites asstudy, it is currently the second largest placements for their online campaigns.website in Belarus with a reach among It is a pity, considering that the resultsinternet users of 11%. of the gemiusAudience study indicate that in March 2010 the averageThe 8th and 9th places in the above internet user spent more than anranking belong to particularly hour on each of these two websites.interesting players, charter97.org This would be a particularly longand belaruspartisan.org. These two exposure time for any potential piecenews websites have very specific of advertising. 1.3. TOP PORTALS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 mail.ru 1 155 792 176 04:23:36 37% 2 onliner.by 351 367 86 01:41:32 11% 3 naviny.by 160 206 7 00:09:23 5% 4 myminsk.com 77 447 3 00:03:00 3% Table 3 Top 4 portals and news services in Belarus by reach level (gemiusAudience, March 2010)Among all the portals participating in Russia’s greatest player, Yandex.ru.the gemiusAudience study in Belarus, What is most interesting is that thethe unquestionable leader is mail.ru, high interest in Yandex’s searchwhich in March 2010 gained a reach services in Belarus has caused theof 37%. However, the largest Moscow-based service to preparehorizontal platform on the market full entry into this market. Yandexis tut.by, which, according to some announced last year its intention toestimates, is said to attract around open an office in Minsk and run2 million users (understood as unique a dedicated search engine in the .byvisitors) each month. Tut.by is a typical domain. According to the results ofinformation portal. gemiusTraffic, Yandex enjoys more than half of all visits which are begunRussia plays a significant role on the (with gemiusTraffic-participatingBelarusian online market, in particular websites) using any search engine.Do you CEE? Belarus
    • 29However, this excellent result is covers mainly local news, classifieddecreasing year on year in favor of advertising as well as cultural andGoogle. Therefore, Yandex must hurry. entertainment information. In March 2010 it attracted almost 80,000 realApart from onliner.by and naviny.by, users with a reach of 3%.the sector of internet portals inBelarus also includes sites such asopen.by (the oldest Belarusian portalrun by the Open Group, the owner ofthe largest Belarusian e-commerceplatform, shop.by) and interfax.by(a news portal of the well-knowninformation agency). Another Russianportal, rambler.ru, also has a relativelystrong market position. The rankingof top portals measured in thegemiusAudience study is proppedup by myminsk.com, a small websitefor Minsk citizens. This city portal 1.4. SOCIAL NETWORKSThe social networking sector in horizontal portal (my.mail.ru), attractsBelarus does not differ from other more Belarusian internet users thanparts of online market in this country the most popular social networkingin terms of the major players. Like the platform in the world, Facebook,whole online area, foreign services which is the top global player on thisalso visibly dominate here. The leaders developing online market. Despite theare, of course, Russian. Based on the worldwide popularity of services suchreliable estimates, the most popular as Facebook, YouTube and Twitter, atsocial networking website in Belarus present they do not have any chanceis vkontakte.ru and second place to compete with the Russian brands.is held by another Russian service, However, they successfully competeodnoklassniki.ru. In turn, the third with Belarusian community websites,major player on the Belarusian social such as i.tut.by (the online communitynetworking market is livejournal.com, run by tut.by portal) and vceti.by.the blogging platform owned by At this point in time, only oneLiveJournal, Inc., but licensed and Russian online community service,operating in Russia by SUP, a media habrahabr.ru is less popular thancompany founded in Moscow in 2006 these two sites.by Andrew Paulson and AlexanderMamut. Its ownership is split betweenMamut, the Kommersant PublishingHouse and the management.Apart from these three socialnetworking websites, another servicefrom Russia is also found on theBelarusian market. The community-based subservice of the mail.ru Do you CEE? Belarus
    • 30 1.5. ONLINE CLASSIFIED ADS BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 irr.by 226 648 67 00:51:12 7% 2 slanet.by 71 350 9 00:06:43 2% 3 migom.by 65 902 13 00:11:29 2% Table 4 Top 3 online classified ads in Belarus by reach level (gemiusAudience, March 2010)Classified advertising seems to be onliner.by, which on its site runsa perfect activity for local players a section devoted to this kind ofin Belarus. Among the three most advertising, catalog.onliner.by. Thepopular websites of this kind there are Belarusian online market is alsono Russian or global sites. According filled with well performing thematicto the gemiusAudience study results classified advertising services. Thefor March 2010, the leading classified best example of this is kosht.com,advertising service is irr.by, which is which aggregates computer hardwarealso generally one of the most popular announcements. According towebsites in Belarus (it takes fourth gemiusAudience, it attracted almostplace in the ranking of top 10 websites 68,000 real users in March 2010by reach). Second and third place, gaining slightly more than 2% reach.taken by slanet.by and migrom.by,gained over 71,000 and almost 66,000users, respectively during the sameperiod, which gave them identicalreach levels of 2%.It is worth noting that a significant partof the internet classified advertisingmarket belongs to the second mostpopular horizontal portal in Belarus, 1.6. TOP FINANCE SITES BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 afn.by 60 634 21 00:35:14 2% 2 ej.by 30 651 9 00:13:05 1% 3 belmarket.by 12 926 6 00:07:06 0,4% Table 5 Top 3 finance sites in Belarus by reach level (gemiusAudience, March 2010)Do you CEE? Belarus
    • 31The area of finance seems to be belmarket.by attracted just underan unfilled niche on the Belarusian 13,000 real users, which gave it lessinternet. Apart from the journalistic than 0.5% market reach.activity of rbc.ru, which holdsa strong position on the market, Another interesting website inthe popularity of websites devoted Belarus is rbcard.com; it is devotedto these topics is still very low. to banking and dedicated primarilyThe greatest one measured in the to individuals owning various kindsgemiusAudience study, afn.by, gained of payment and credit cards. RBCARDa reach of barely 2% in March 2010, was established in 2002, but duringhowever, at the same time its users the last eight years did not managewere active for an average of over to gain any significant popularity.35 minutes. AFN (АФН) has been According to the results of theoperating on the information market gemiusAudience study, in March 2010since 1995 providing financial news it attracted slightly more than 7,000regarding the Belarusian, Russian and real users and kept them active for anUkrainian economy. average of 4 minutes. However, there are also much more successful andThe second most popular financial better performing financial serviceswebsite participating in the on the Belarusian online market,gemiusAudience study in Belarus namely infobank.by and select.by,is ej.by, which in March 2010 both operating since 2007.gained only a reach of 1%. Ej.by(Ежедневник) basically operates asan internet-based economic magazine(available in PDF) and extendedeconomic news service. Its creatorsclaim that it is the first e-press projectin Belarus and is a response to thehuge gap in the market.Among the finance websitesparticipating in the gemiusAudiencestudy in Belarus there is yetanother player worth mentioning:belmarket.by, an online version of theeconomic newspaper „Belarusiansand the Market” (“Белорусы ирынок”), formerly “BelarusianMarket” (“Белорусский рынок”),established in 1990. This weeklymagazine is considered the firstindependent newspaper in Belarus,which started to deal with complexeconomic analyses, problems in thecountry, new businesses. It promotesdemocratic institutions within society.According to the gemiusAudiencestudy results, in March 2010 Do you CEE? Belarus
    • 32 2. ONLINE AUDIENCE As on most other CEE markets, the academic environment, fromthe gender structure of the online students with incomplete higherpopulation of Belarus is also education to individuals with sciencevery balanced. According to the degrees (together making up 46%gemiusAudience study for March 2010 of the total). The least representedalmost 51% of internet users are men group of internet users in Belarusand just over 49% of the whole online are individuals with an MBA degree,population are women. Internet use making up only 0.34% of the wholein Belarus remains equally distributed online population.among both genders and no significantfluctuations within this area are being The largest group of Belarusianobserved. internet users (exactly 38.3%) live in the Minsky region. The high density Internet users in Belarus of users in this region is due to theare very young. According to the fact that in Belarus the majority ofgemiusAudience study for March people who are active on the internet2010, almost 40% are aged between live in the capital city (as with other15 and 24 years. Moreover, almost young and underdeveloped markets).68% of the whole online population According to the gemiusAudienceconsists of individuals younger than study for March 2010, almost 33%34 years old. On the other hand, of the whole online population ofusers aged 55 years or over represent this country consists of individualsonly 1.6% of the all internet users. who live in Minsk. Individuals fromThis visible disproportion is caused other regions of Belarus representmainly by the immaturity of the a proportionally smaller share withinBelarusian online market, which is not the internet user population, that isyet experiencing the phenomenon of from 16% in the case of Gomelskyaging (along with its users). It is highly region to a mere 9% in the case ofprobable that in the near future the Mogilevsky region.share of individuals older than 45 and55 years will rise year on year. Three biggest groups of Belarusian online population are The educational structure of students, specialist/chief specialistsBelarusian internet users does and engineers/technical workers. Theynot differ a great deal from those constitute nearly 50% of internet userscharacteristic of other CEE markets. in this country. The other half consistsWithin the whole online population of other occupations with almostof this country there are three major equal shares.groups of users: individuals with ahigh education (32%), vocationaleducation (26%) and those who havegraduated from a secondary school(22%). However, when broadercategories are taken into account, itbecomes very clear that the dominantgroup of internet users in Belarusconsists of people connected withDo you CEE? Belarus
    • 34 3. TOOLS 3.1. BROWSERSChart 1 Top browsers in Belarus by share of page views generated by internet users who visit theBelarussian websites using gemiusTraffic (gemiusTraffic study 1Q 2009 – 1Q 2010)3.1. Browsers the market at the end of first quarter of 2009, when it beat off its rival -The web browser most intensively Mozilla Firefox. The third force on theused in Belarus is Opera. According market is Microsoft Internet Explorer.to gemiusTraffic, in the first quarter In the first quarter of 2010 its usersof 2010 almost 49% of all page views were responsible for 19.4% of all pagegenerated by Belarusian users on views recorded in the gemiusTrafficwebsites monitored in the study have study.been made using this browser. In thisregard the Belarusian online market 3.2. Operating systemsis similar to Ukraine, where Opera isalso the dominant software used for Internet users in Belarus are not anweb browsing. In Belarus, Opera won exception when it comes to the usage 3.2. OPERATING SYSTEMSChart 2 Top operating systems in Belarus by share of page views generated by internet users whovisit the Belarussian websites using gemiusTraffic (gemiusTraffic study 1Q 2009 – 1Q 2010)Do you CEE? Belarus
    • 35of operating systems. Windows XPhead the list and the whole market 3.3. SEARCH ENGINESis dominated by Microsoft products(non-MS Windows operating systemshold less than a 3% share). Accordingto the gemiusTraffic study, in the firstquarter of 2010, Windows XP wasresponsible for almost 83% of all pageviews monitored in the study, whilethe second most intensively usedoperating system, Windows 7, wasresponsible for slightly more than 10%of all page views. Interestingly, thelatter is experiencing dynamic growth Chart 3 Top search engines in Belarus by share of visits made by internet users who visit the Belarus-on the Belarusian market. At the sian websites using gemiusTraffic (gemiusTraffic study 1Q 2009 – 1Q 2010)beginning of 2009 it was completelyabsent in Belarus, in the second 3.4. SCREEN RESOLUTIONSquarter of 2009 it gained 0.67% of allpage views and by the first quarter of2010 its market share had increasedmore than 15 times.3.3. Search enginesThe search engine most frequentlyused in Belarus is Russian-basedYandex. According to gemiusTraffic, infirst quarter of 2010 more than 56%of all visits on websites monitored Chart 4 Screen resolutions in Belarus by share of page views generated by internet users who visitby Gemius in this study have their the Belarussian websites using gemiusTraffic (gemiusTraffic study 1Q 2009 – 1Q 2010)origins in Yandex search results.The second search engine mostfrequently used by Belarusians is 3.5. MOBILE DEVICESGoogle, which accounts for morethan 41% of all visits on websitesmonitored by gemiusTraffic. Otherengines, including Microsoft MSN,have a negligible market share andare single-handedly unable to breakthe 1% barrier.3.4. Screen resolutionsThe most popular screen resolutionin Belarus is 1280x1024, the visitorsof which generated nearly 28% of allpage views on websites monitored Chart 5 Top 5 mobile devices in Belarus by the website-averaged percentage share of page viewsin the gemiusTraffic study in the generated by internet users form Belarus who visit the Belarusian websites using gemiusTraffic (gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10first quarter of 2010. What is most **to 2010-07-25 Do you CEE? Belarus
    • 36important is the fact that at the the average Belarusian website usingbeginning of 2010 there was no gemiusTraffic. The other devices inscreen resolution which could be the top 5 ranking were SonyEricssonidentified as strongly dominant on the products and each gained around aBelarusian market (the shares of the 3% share.most popular ones are distributed in avery balanced manner).3.5. Mobile devices - modelsUnlike the majority of CEE countrieswhere the iPhone dominates themobile devices market, accordingto the gemiusTraffic study, the mostpopular mobile tool used to accessthe web in Belarus is Nokia 6300. InJuly 2010 it was responsible for 8%of page views generated by mobiledevices on the average website.Apple’s iPod had a 5% share whichgave it second place in the ranking.However, the popularity of bothmarket leaders is gradually decreasingand over two months both productslost approximately 1 percentagepoint. The third most popular mobiledevice was Nokia 5800. Its usersgenerated 4% of the mobile traffic on 4. ADVERTISING NETWORKS GENERAL CONTACT INFORMATION FULL NAME HOMEPAGE URL REACH MAIN OFFICE CONTACT ADDRESS ADDRESS Phone: +375-17-222-3204 416-14, 1 Mediacode mediacode.by 24% Fax: +375-17-222-3204 Pervomaiskaya Street, Minsk Email: manager@mediacode.by Phone: +375-17-217-02-42 109 - 24/2 2 Red red.by N/A Fax: +375-17-217-02-42 Pervomaiskaya Street Email: admin@red.by Phone: +375-17-296-62-62 214-5. 3 Webody webody.by N/A Fax: +375-17-296-62-62 Oktaybrskaya Street, Minsk Email: welcome@activemedia.byDo you CEE? Belarus
    • 37 5. OPINIONS FROM THE MARKETAleksander StelmakhDirector, Onliner.byOnline advertising marketWhat are the opportunities and obstacles for the Belarusian onlineadvertising market?The online market is still extremely small; worth only about $3 million in2009. Moreover, rapid growth is not expected in 2010. This is partly due tothe tardiness of the whole advertising market (including TV, radio „Outdoor”advertising amongst others) compared to, for example, the Ukrainianmarket, even if the discrepancy in population sizes is taken into account.Advertising is a sign of activity in the economy. In Belarus most companiesdepend on the government in some form or another, which (with a fewexceptions) promotes products and services using „kuplyay Belarusian”methods (national products don’t need advertisement). However, theadvertising market is still at a low level and no changes in the short term areexpected.In addition, we should not have any illusions about the purchasing powerof the population even in the capital, Minsk. The average household hereoperates with a budget of approximately $673 (2 million BYR) per month.The main problem of the local market is a fixation on media advertising.Banners, which are sold daily, are at the level of the past decade andpublishers forget that there are more efficient ways to direct monetizationthan banners.The market faces many difficulties and not all of them are related directly tothe online sphere.Global vs. local playersAre the local players present on your local market strong enough to competewith the global giants? What advantages and strategies do they use in thisbattle?The local players do not have much chance to compete unless they providethe services that are truly demanded. One well-known site in Belarusformerly positioned as a search portal with a mail service and varioussubsites, also became popular as a content aggregator, gathering newsfrom other services. The portal then tried to create their own content, but Do you CEE? Belarus
    • 38its quality was low, even when compared to Belarusian counterparts. Theservice has lost users in favour of Russian sites like vkontakte.ru and mail.ru.This could lead to greater losses in user numbers unless the portal changesits development strategy.Yury ZisserFounder and co-owner, Tut.byOnline advertising marketWhat are the opportunities and obstacles for the Belarusian onlineadvertising market?Share of internet advertising in total advertising is growing each year. In thecrisis period this share rose from 4.5% in 2008 to a surprising 7% in 2009(the entire media market fell by 21.4% while the internet grew by 16%).Another serious obstacle to dynamic growth is the modest size of the privatesector, the lack of small- and medium-sized businesses.Dominating trendsWhat are the recent trends on your local online market? What areas areexpected to develop most in the future?In 2009 a new trend appeared on the market: the transfer of ads salesto specialized structures, sales houses which form a professional marketusing clear rules. Position of sales houses will strengthen in the future.Market will grow, technology will improve. Role of mobile, contextual andvideo advertising and advertising with possibility of targeting using socio-demographic profiles will grow.Global vs. local playersAre the local players present on your local market strong enough to competewith the global giants? What advantages and strategies do they use in thisbattle?Successful local players use brand strategy to create powerful local brands.The lion’s share of advertising sales is held by Belarusian players. All theefforts of foreign players, mostly Russian, have not as yet beensuccessful. Global brand expansion in Belarus has not happened and will notcome soon due to the small capacity of the Belarusian market.Do you CEE? Belarus
    • 39Market specificsWhat makes your local online market unique? Are there any specifics thatmake it different from others in the CEE region?Due to the above mentioned weakness of small- and medium-sized business,search advertising is not well developed in Belarus. Its share in Belarusianinternet advertising does not exceed 20% and over the last years there hasbeen slow increase. There is a concentration of advertising budgets aroundthe main players: the Belarusian portal tut.by which accounts for one thirdof all the budgets of banner advertising or about half the budgets of allmedia advertising on the Belarusian internet. Do you CEE? Belarus
    • Bulgaria 3.28m internet users1. MAINPLAYERS_411.1. Top10websitesbyreach_411.2. Top10websitesbyaveragetimespentperuser_421.3. Topportals_441.4. Social networks_451.5. Onlineclassifiedadsbyreach_461.6. Topfinancesitesbyreach_472. ONLINEAUDIENCE_483. TOOLS_503.1. Browsers_503.2. Operatingsystems_513.3. Search engines_513.4. Screen resolutions_513.5. Mobiledevices_514. BRANCHORGANIZATIONS_525. ADVERTISINGNETWORKS_536. OPINIONSFROMTHEMARKET_54
    • 41 1. MAIN PLAYERS 1.1. TOP 10 WEBSITES BY REACH WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH USERS VIEWS USER USER 1 abv.bg mail service 1 954 947 335 065 970 171 02:34:07 60% 2 dir.bg horizontal portal 1 340 402 89 431 095 67 01:18:54 41% 3 gbg.bg horizontal portal 945 424 15 177 123 16 00:25:48 29% 4 start.bg horizontal portal 893 066 7 247 182 8 00:09:41 27% 5 btv.bg horizontal portal 777 131 20 184 745 26 00:21:54 24% 6 svejo.net social bookmarking 761 397 5 547 144 7 00:09:45 23% 7 vesti.bg news portal 745 950 14 796 523 20 00:29:02 23% 8 bg-mamma.com lifestyle portal 674 676 26 259 938 39 01:00:44 21% 9 mobile.bg auto classified ads 669 052 149 438 163 223 01:57:50 20% 10 sportal.bg sports portal 659 510 47 819 851 73 01:49:03 20% Table 1 Top 10 websites in Bulgaria by reach level (gemiusAudience, March 2010)The most popular website in Bulgaria package of searching options includingmeasured by gemiusAudience is a huge bank of images as well as videoabv.bg, a free web mail service. It not content. Gbg.bg gathers over 47,000only reaches 60% of the audience, selected sites and their number isbut also outnumbers other players constantly increasing. The next player,in terms of user engagement, with start.bg, had a reach level of 27%.a result of over 2.5 hours spent byaverage user monthly. The service is Among the market leaders there areowned by NetInfo, the digital media also two news services: btv.bg andcompany, which in turn belongs to vesti.bg that gained reach levels ofSanoma Media International. Apart 24% and 23% respectively in Marchfrom the mail service it also provides 2010. The first is the site of the mostits users with a search option, news, popular private TV station in Bulgaria,weather forecasts and entertainment. and at the beginning of 2010 it was bought by CME, the internationalWith a 41% reach, dir.bg, the largest media company. The second, vesti.bgand trusted Bulgarian portal, takes is third among the four players presentsecond place. The top 3 is propped up in the ranking owned by NetInfo. Theby the web directory gbg.bg, which last site is svejo.net, which rankedreaches 29% of the Bulgarian online 6th in March 2010. It is a socialaudience. The site, created in 1997, bookmarking portal reaching 23% ofbelongs to the same owner as abv.bg. the audience.The website offers its users a complete Do you CEE? Bulgaria
    • 42The second significant group within sports events as well as the Sportalthe Bulgarian online market includes TV service with a large amount ofspecific portals such as bg-mamma. HD videos. In March 2009 its reachcom and sportal.bg. The first is mainly level amounted to 11% but in Marchdedicated to women and contains 2010 this grew to 20%. Its risinga great deal of useful information popularity makes it a preferable siterelated to children, health, beauty for advertisers.and lifestyle. The strongest part of thesite is its forum, where women can Another popular site on theexchange views and ask other users Bulgarian online market in Marchfor their opinion. In March 2010, the 2010 was mobile.bg, a classified adswebsite had almost 660,000 real users service specializing in automotiveand the number is growing. advertisements. It had almost 670,000 real users, who constituted a reachThe second website, sportal.bg, is level of 20%. In terms of averagea portal containing sports news, time spent per user, mobile.bg, cameespecially popular among the male second among the top 10 websites byonline audience. The site offers reach level with almost 2 hoursdetailed information about different a month spent per user. 1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH REAL USERS USER PER USER 1 ladypopular.bg 132 271 602 07:13:40 4% 2 aha.bg 374 559 1,005 07:03:59 11% 3 impulse.bg 598 852 483 07:03:56 18% 4 prodavalnik.com 47 095 239 04:40:30 1% 5 forum.levski.com 5 289 259 04:10:04 0.2% 6 focus-news.net 224 209 81 03:29:48 7% 7 conquiztador.bg 68 653 472 03:17:56 2% 8 abv.bg 1 954 947 171 02:34:07 60% 9 mobile.bg 669 052 223 01:57:50 20% 10 novsport.com 111 604 47 01:52:04 3% Table 2 Top 10 websites in Bulgaria by average time spent per user (gemiusAudience, March 2010)Three major groups can be average user spent more than 7 hoursdistinguished in the ranking of top in March 2010.10 websites by average time spentper user. The first one includes Like in other CEE online markets,ladypopular.bg, aha.bg and impulse. people in Bulgaria tend to spend mostbg. These are sites on which the of their online time making friendsDo you CEE? Bulgaria
    • 43and having fun. Ladypopular.bg is The last player in this group isan online game for girls who dream of conquiztador.bg, with a result ofbecoming popular. Users create 3 hours 18 minutes spent on averagea ‘lady’, follow her career, take care on this website by users. It is an onlineof her pet and organize virtual garden game, where users have to answerparties. The game has a pleasant questions to conquer new territoriesdesign and is available after free on a virtual map.registration. Moreover, the site isavailable in 25 languages. The other The last group of sites includes onestwo sites with an average time per with an average time spent online peruser of over 7 hours, aha.bg and user of around 2 hours. One of them isimpulse.bg, are social networking sites mobile.bg, the previously-mentionedwith reach levels of 11% and 18%. automotive classified ads website, which is very popular in Bulgaria.The second group consists of siteswith average online time per user of Abv.bg, the market leader in terms3-5 hours a month. Prodavalnik.com is of reach, does not dominate as faran online auction mainly for women, as the average time spent per user iswith a great deal of information about concerned and ranks 8th with a resultbabies, gardening, home and family. of just over 2.5 hours. This is mainlyMoreover, there are direct links to due to the fact that abv.bg is primarilyother websites with the same theme: a mail service.clothes, baby toys, etc. In March 2010this site had on average 239 page The last website is a sport site:views generated by each of the more novsport.com. It presents newsthan 47,000 real users. concerning sports events, teams and players. Moreover, it keeps statistics ofThe next website in this group is forum match results, covers live games andlevski.com. Although in March 2010 its contains many helpful links for sportsreach level amounted to only 0.2%, fans.it ranked fifth in the ranking presentedabove, with 4 hours and 10 minutesspent by the average user. It is aforum for FC Levski supporters, wherethey can exchange views, meet otherfans and be up-to-date with newsconcerning their favorite footballteam.A news service can also be foundin this group: focus-news.net. It isa part of the first Bulgarian privateinformation agency FOCUS. One of thegreatest advantages of focus-news.netis the fact that it offers news, analysisand comments not only in Bulgarianbut also in English 24 hours a day. InMarch 2010 its reach level amountedto 7%. Do you CEE? Bulgaria
    • 44 1.3. TOP PORTALS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 dir.bg 1 340 402 67 01:18:54 41% 2 gbg.bg 945 424 16 00:25:48 29% 3 start.bg 893 066 8 00:09:41 27% 4 btv.bg 777 131 26 00:21:54 24% 5 vesti.bg 745 950 20 00:29:02 23% Table 3 Top 5 portals and news services in Bulgaria by reach level (gemiusAudience, March 2010)The importance of horizontal portals 14 websites including blog.bg,and news services in Bulgaria can be dnes.bg and snimka.bg. In 2004 itdemonstrated by the fact that the five was listed on the Bulgarian Stockmost popular ones were also included Exchange and is said to have a marketin the top 10 websites by reach. share of almost 10%. Start.bg has links classified into 22 categories andIn March 2010, the leading position approximately 1,900 topics, whichbelonged to dir.bg, which is just like enables its users to search for anythe year before. It is seen as information they may need. In Marcha trustworthy portal containing 2010 its reach level amounted to 27%a variety of information and catering (in March 2009 it was 32%).for the needs of visitors in termsof entertainment, discussion Btv.bg is a website run by theforums, classifieds; it also includes most popular private TV stationcommunication tools. in Bulgaria. On the 1st June 2000 bTV broadcasted for the first timeAccording to the gemiusAudience thus breaking the monopoly of thestudy, gbg.bg ranked second with national public TV station. Overa reach level of 29%. This portal was the years it has established itscreated in 1997 and since that time position as the most watched TVhas been offering a wide range of channel in Bulgaria. According to theoptions enabling its users to search gemiusAudience study, its reach levelfor online content. Moreover, it has amounted to 24% in March 2010a huge bank of images and videos giving it the third place in the top 5and its directory contains over 47,000 portals ranking. bTV has been presentselected sites. on the market for almost two years. In February 2010 an agreement forThe 3rd player in this category is its sale was reached. It was bought bystart.bg, a horizontal portal and the Central European Media Enterpriseslargest online catalog, owned by (CME), one of the leading radio andInvestor.BG AD, a leading internet television groups in Central andmedia company in Bulgaria with Eastern Europe.Do you CEE? Bulgaria
    • 45The last place in the ranking istaken by vesti.bg, formerly knownas Netinfo.bg, which in March 2010had a reach level of 23%. The siteprovides its users with current newsfrom Bulgaria and the world. Thanksto a modern and user-friendly design,visitors can quickly find everythingthey are searching for. Moreover, thesite offers a section with the mostpopular news for busy users. 1.4. SOCIAL NETWORKS NUMBER OF PAGE VIEWS AVERAGE TIME REACH REAL USERS PER USER PER USER 1 impulse.bg 598 852 483 07:03:56 18% 2 dir.bg-CLUBS.dir.bg 493 509 15 00:10:59 15% 3 dir.bg-GLOG.dir.bg 420 138 15 00:10:32 13% 4 teenproblem.net 404 388 17 00:15:45 12% 5 aha.bg 374 559 1,005 07:03:59 11% Table 4 Top 5 social networking sites in Bulgaria by reach level (gemiusAudience, March 2010)There is no dominant leader on the Clubs.dir.bg and glog.dir.bg bothlocal social networking market in belong to dir.bg. The first includesBulgaria. Although in March 2010 clubs, in which people with the sameimpulse.bg had the greatest reach interests are grouped together. Inlevel (18%), it was only 3 percentage March 2010, clubs.dir.bg had almostpoints higher than clubs.dir.bg, 500,000 real users who spent anwhich ranked second. However, as average of 11 minutes online a month.mentioned before, impulse.bg is Glog.dir.bg enables its users to createundoubtedly the leader when it comes their own profile and use it to stay into number of page views per user. touch with friends or make new ones.In terms of average time per user Its reach level of 13% gave this socialit took second position, right after networking site 3rd place in the top 5aha.bg. Impulse.bg is a typical social ranking.networking site offering its usersthe possibility to make new friends The last two most popular Bulgarianor retain old ones. It also includes social networks, measured in thea section devoted to classified ads, gemiusAudience study in Marchclubs with users grouped together by 2010 were teenproblem.net (12%)interest with access to almost 60,000 and aha.bg (11%). They both belongtopics as well as a games section. to Investor Group (start.bg, blog.bg, Do you CEE? Bulgaria
    • 46etc.). Teenproblem.net is popular with gives its users a chance to meet newyoung people. On the website they people, exchange messages, create listcan find answers to their questions of friends and watch music videos.and problems, including someembarrassing ones, as well as generalinfo about anything that can be of anyinterest to a teenager. The site is veryuser-friendly and is designed to attractyoung online audience.The second site, aha.bg, has a morediversified user structure with usersaged 19-35 predominating. Thispopular social networking website 1.5. ONLINE CLASSIFIED ADS BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 mobile.bg 669 052 223 01:57:50 20% 2 imot.bg 219 376 104 01:12:24 7% 3 karieri.bg 202 899 6 00:06:35 6% Table 5 Top 3 online classified ads in Bulgaria by reach level (gemiusAudience, March 2010)Each of the top 3 online classified ads The third place belonged to karieri.bg.in Bulgaria specializes in a different It had over 200,000 real usersfield. Number one in March 2010 interested in job offers. Beside regularwith a reach level of 20% was job advertisements, there are alsomobile.bg. It is the most popular offers of training sessions, educationalBulgarian site where people can buy courses and the like.or sell a car. The site also containsmany other automotiveadvertisements of different kinds,from VIP to regular. The price is relatedto the ad’s type.The second player on the Bulgarianclassified ads market is imot.bg, whosereach level amounted to 7%. Users anddealers publish ads related to buyingand selling real estate. Like other sitesof this kind, there are various kindsof advertisements and their pricesdepend on what options are used.Do you CEE? Bulgaria
    • 47 1.6. TOP FINANCE SITES BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 econ.bg 304 865 16 00:03:54 9% 2 odit.info 256 078 20 00:24:55 8% 3 investor.bg 214 850 24 00:39:36 7% Table 6 Top 3 finance sites in Bulgaria by reach level (gemiusAudience, March 2010)According to the gemiusAudience and on average 20 page views perstudy from March 2010, there visitor. It is a popular website ownedwas no definite leader among finance by Economedia, which publishes thesites in Bulgaria. Although the reach most current information especiallylevel of econ.bg gave it first place, for accountants. There is a sectionthe difference between it and the with notices on courses and seminarsreach levels of odit.info (2nd) and as well as a forum.investor.bg (3rd) was just 1 percentagepoint. In terms of average time spent Another important finance site inonline per user, the leader is investor.bg Bulgaria was investor.bg with a reachwith almost 40 minutes a month per level of 7% in March 2010. It is auser. site with business information from Bulgaria and the world. Apart fromEcon.bg is a business portal with typical financial sections such asover 300,000 real users. The site was Exchange or Forex, it also has a sectioncreated through the cooperation of dedicated to lifestyle.the Center for Economic Development(CED) and the United States Agencyfor International Development (USAID)and was launched in April 2001. Apartfrom presenting business news fromBulgaria and the world, its userscan also find interviews, analyses,classified ads and a law section here.An additional feature is the Englishversion of the site. Even though itcontains information which is often2 months old, it is a useful source ofinformation for English-speaking users,especially considering the fact thatecon.bg gives its users free access toan archive of all information uploadedon the site since its creation in 2001.The second significant player, odit.info,had over 250,000 users in March 2010 Do you CEE? Bulgaria
    • 48 2. ONLINE AUDIENCE The gender structure of the 2010, 27% of the Bulgarian onlineBulgarian internet population is quite population lived in Sofia, the capitalbalanced and does not differ much of Bulgaria. Cumulatively, users livingfrom those observed on other CEE in cities with over 100,000 citizensmarkets. In March 2010, women accounted for 60% of the onlineconstituted 51.5% of the online population. Another significant grouppopulation, while men comprised of users (19%) lived in cities, in which48.5%. However, what distinguishes there are 20,000 – 99,999 people.the Bulgarian online population fromother CEE countries is the fact that With regards to occupationmen on average spent one hour more the most numerous group amongthan women surfing the web. Bulgarian internet users in March 2010 were specialists and office workers. Undoubtedly, the Bulgarian online The second force on the internet wasmarket is dominated by young people. the group made up of unemployedAccording to the gemiusAudience internet users. The unskilledstudy, in March 2010 people aged workers accounted only for 1% of15-24 accounted for 29% of the online the researched internet audience,population. Moreover, they spent however this occupation group wasthe greatest amount of time surfing the most active and in March 2010 thethe studied websites, i.e. 19 hours. average user from this group spentIncreasingly more elder people have over 19 hours surfing the web.become interested in the internetduring the last twelve months. InMarch 2009 the share of people over55 years old was 5%, and in March2010 it was 9%. The Bulgarian online population isquite well-educated. In March 2010 amere 1% of internet users had primaryor no education. The majority hadgraduated from secondary school and27% had a degree. With regards toaverage time spent online per user, inMarch 2010 the groups of users withbasic or lower education consistentlyspent approximately 21.5 and 18.5hours online, whereas users withhigher education spent only 10 hoursand 44 minutes online. As it is the case in the majorityof CEE countries, the greatestnumber of internet users in Bulgarialive in big cities. According to thegemiusAudience study from MarchDo you CEE? Bulgaria
    • 50 3. TOOLS 3.1. BROWSERSChart 1 Top browsers in Bulgaria by share of page views generated by internet users who visit Bulga-rian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)3.1. Browsers the top browsers in Bulgaria. The popularity of Opera and Chrome isThere are two main players on the not of any significant value. However,Bulgarian browser market. Number it is important to note that Chrome isone is Firefox with a market share of gaining popularity extremely quickly.46%. At the end of 2009 it overtook Also, while Opera’s market share grewMicrosoft Internet Explorer, whose during the past year by 0.5 percentagepopularity has been declining for some point, Chrome’s market share rose bytime already. After the first quarter 4 percentage points.of 2010 its market share was 42%giving MSIE the second place among 3.2. OPERATING SYSTEMSChart 2 Top operating systems in Bulgaria by share of page views generated by internet users whovisit Bulgarian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)Do you CEE? Bulgaria
    • 513.2. Operating systems 3.3. SEARCH ENGINESLike in the other markets in Centraland Eastern Europe, the most popularoperating system in Bulgaria wasWindows XP with an 82% share in thefirst quarter of 2010. However, this was9 percentage points less than a yearago. This is mainly due to Windows 7,Microsoft’s newest operating systemlaunched in the second quarter of2009. Since then it has been constantlygaining popularity, and in the firstquarter of 2010 its market shareaccounted for 9% overtaking Windows Chart 3 Top search engines in Bulgaria by share of visits made by internet users who visit BulgarianVista with its 8% share. The market websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)share of Linux is relatively stable at thelevel of 0.3%. 3.4. SCREEN RESOLUTIONS3.3. Search enginesGoogle is the leader of the Bulgarianonline search engine market. In thefirst quarter of 2010 its share of themarket accounted for almost 99%.Second place belonged to MSN, andthird to Yahoo. However, their marketshares declined during 2009 andaccording to the gemiusTraffic studythey did not even exceed 1% in the firstquarter of 2010. Chart 4 Screen resolutions in Bulgaria by share of page views generated by internet users who visit Bulgarian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)3.4. Screen resolutionsThe market share of 1024 x 768 3.5. MOBILE DEVICESmonitor screen resolutions hasbeen decreasing over the last years.However, in the first quarter of 2010it was still the most popular choiceamong Bulgarians. Other popularscreen resolutions among internetusers who visit Bulgarian sites usinggemiusTraffic were 1280 x 1024 and1280 x 800. Also, the screen resolutionof 1440 x 900 has been gainingpopularity in recent years and after thefirst quarter of 2010 its market sharewas 6%. There is also a newcomer,1366 x 768, whose popularity has Chart 5 Mobile devices in Bulgaria by the website-averaged percentage share of page views genera-been growing and during one year this ted by internet users from Bulgaria, who visit Bulgarian websites using gemiusTraffic (gemiusTraffic,resolution gained a market share of 4%. 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10 **to 2010-07-25 Do you CEE? Bulgaria
    • 523.5. Mobile devices - models popular. During the same period, Apple’s latest product, the iPad, hasA wide variety of mobile devices can been consistently gaining popularity,be found on the Bulgarian market. increasing its share by 3 percentageThe five most popular tools constitute points from May 2010.less than 50%. However, like inmajority of CEE markets, Bulgaria’stop mobile device is the iPhone,which in July 2010 had a share ofover 17%. However, compared to theprevious month, it decreased slightly.The next three positions were takenby Nokia devices among which theNokia 5530 XpressMusic is the most 4. BRANCH ORGANIZATIONSInteractive Association Bulgaria association is to protect the interests of its members with regard to thewww.iabulgaria.bg development of e-commerce and also to enhance public confidenceDescription: The mission of IAB in it. Moreover, BEAT aims to createis to show the advantages and professional ethical standards topossibilities of interactive marketing: be followed by its members. BEATtargeting, on-line measurement, also concentrates on cooperationhigh effectiveness, a great variety of with public authorities in creatingformats and different approaches laws and regulations relating toand to the internet as one of the internet trade and in monitoring theirmain channels of communication, implementation.next to TV, radio, press and outdooradvertising. Members: BGPRINTER Ltd., JAR Computers Ltd., Interminds Ltd., SILAMembers: The greatest rivals and BG, Store Ltd., SuperHosting.BG, Bwleading internet players include: Time Ltd.Darik News, Dir.bg, Economedia,Investor.bg, NetInfo.bg, mail.bg andan associate member, ABC Design and Bulgarian Web AssociationCommunication. www.bwa.bgBulgarian e-commerce association Description: The Bulgarian Web Association (BWA) is an internetwww.baet.bg industry association, representing the interests of web companies andDescription: The main objective professionals in Bulgaria. At present,of the Bulgarian e-commerce the Bulgarian Web AssociationDo you CEE? Bulgaria
    • 53(BWA) is the only association with web services: User Media Ltd.,activities directed to the benefit DIDZHITREYS Ltd., ESRI Bulgaria Ltd.,and protection of legal entities and ET-MarMaN Mario Mankov, Rippednatural bodies, working on the design, Ltd., Imaynd Ltd.arrangement, organization, realizationand hosting of internet sites, webdesign and internet advertisement.All activities of the Bulgarian WebAssociation (BWA) are in the serviceof the interests of the Bulgarian webmarket operating in the free economyenvironment.Members: associated web studios:Studio 3B, Etaligent.Net, You EyeDesign Ltd, Blekbord Studio Ltd.,By BG Ltd., DOTmedia DZZD, DreamStudio Ltd., DriymMediya Ltd., ExsistoLtd., Leks.BG AD, MediaBasket OOD,Need BG Ltd., Stenik Group Ltd.,Studio IDA, associated web media:Inteldey Solutions Ltd., ProgrammeMedia Group Ltd., associated 5. ADVERTISING NETWORKS GENERAL CONTACT INFORMATION FULL NAME HOMEPAGE URL MAIN OFFICE CONTACT ADDRESS ADDRESS 61 Vitosha Blvd, Phone: +359-2-988-09-75 1 Httpool httpool.bg 1000 Sofia, Bulgaria Email: info@httpool.bg Nikola Vaptzarov Blvd 29, Phone: +359-2-962-29-94 2 Easy Trader stat.easytrader.bg et. 2, floor B, ap.13, Email: ivanchev@easytrader.bg 1407 Sofia, Bulgaria Solunska 59, et. 4, Phone: +359-2-954-29-70 3 User Media - Student.forums usermedia.net 1000 Sofia, Bulgaria Email: reklama@usermedia.net Solunska 59, et. 4, Phone: +359-2-954-29-70 4 User Media - Autoforums usermedia.net 1000 Sofia, Bulgaria Email: reklama@usermedia.net Solunska 59, et. 4, Phone: +359-2-954-29-70 5 User Media - Sportforums usermedia.net 1000 Sofia, Bulgaria Email: reklama@usermedia.net 7, Danail Dechev st. 6 Direct direct.dir.bg Phone: +359-2-969-45-33 1407 Sofia, Bulgaria 70, Tsaribrodska Blvd, Phone: +359-2-489-50-63 7 E- target etarget.bg office 3, Email: business@etarget.bg Sofia 1309, Bulgaria Do you CEE? Bulgaria
    • 54 6. OPINIONS FROM THE MARKETHristo IvanovMarket Research and Analyses specialist, NetinfoOnline advertising marketWhat are the opportunities and obstacles for the Bulgarian online advertisingmarket?The economic environment has led to a serious decline in advertising expenditurein all types of media. Only the internet succeeded in keeping the same level as in2008. The largest advertisers: automotive and finance, brought their investmentsin advertising for the past year to a relative standstill.We believe that this situation will remain unchanged for the next year or two.Online video and social media advertising together with rich media will leadthe development of the online market in Bulgaria. Advertisers will learn to usedifferent channels for different goals: e-mail and social media marketing forcustomer loyalty, keyword search ads for direct responses and display ads forbuilding brand awareness.Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in the future?The financial crisis slowed down the development of the internet market inBulgaria during the last year and the market players were forced to focus on theirmain and most profitable products. This led to ever increasing competition incertain internet categories such as news and information (including sports), dating,entertainment, and the suchlike. Internet penetration in Bulgaria continued toincrease but at a slower growth rate compared to previous years. Furthermore,the largest publishers have invested time and money in the mobile versions oftheir websites following the latest trends on global markets.Petar SimeonovHead of Internet Department, Piero97Online advertising marketWhat are the opportunities and obstacles for the Bulgarian online advertisingmarket?The world economic crisis did not overlook Bulgaria in 2009. The growth ofinternet advertising budgets was 60% during the previous three years, but in 2009this shrunk to a mere 4%. On the backdrop of a total ad market decline of aboutDo you CEE? Bulgaria
    • 5514%, this is a good result, although expectations were for at least 20% growth.In 2008 the gross internet advertising budgets in Bulgaria were 32.3 million Leva(16.5 million Euro), and in 2009 they were 33.4 million Leva (17 million Euro). Thisdata do not contain the budgets spent on Google advertising and other mediasituated outside of the country, due to the fact that this data are unobtainable.There were other positive results on the internet market in general, for instancesignificant growth in the number of internet users: at the end of 2009 there werealready 3.413 million in Bulgaria (45% penetration). The internet share in the totalmedia mix is also on the rise: in 2008 it was 2.7%, in 2009 3.4%, and a rise of 5% ispredicted for 2011.The steepest decline in the advertising budgets of 2009 was noticed in thetelecommunications sector. Surprisingly, it was overtaken by the financialand banking sector, which was also hit by the crisis, but tried to regain clientconfidence via various marketing and advertising incentives. A similar situationwas observed in the construction and automotive businesses.News sites and portals drew the largest part of advertising budgets, in third placewere social networking sites, followed by sport sites. Facebook attracted greatinterest with 1.2 million subscribers at the end of 2009.A significant growth in online advertising (approximately 20%) is expected for2010, as well as substantial growth in video advertising on the internet. The numbers used in the above text have been collected by Piero97 Media Agency.Plamen KalinikovMarketing Director, Argent media agencyOnline advertising marketWhat are the opportunities and obstacles for the Bulgarian online advertisingmarket?We had anticipated that the global financial crisis would lead to significantbudget allocation on traditional media channels: TV, radio, print as well asOOH would face a major drop at the expense of digital advertising. Alas, netonline investments for 2009 in Bulgaria retained the same levels as those fromthe ‘extremely successful’ year of 2008. The growths of 50 to 100% from theaforementioned 2008 would later become something to dream about over thefollowing years. The main players on the market decided not to take risks andkept their investments allocated to the media channel that responded in the mostappropriate way to the economic realities and the fiscal deficit. They stayed withTV. The national TV channels lowered their prices and boosted bonuses, and thuskept the lion’s share in the media mix. Digital advertising comprises about 10% ofthe Argent media agency portfolio but the average for the market percentage does Do you CEE? Bulgaria
    • 56not exceed 5%. The long-awaited arrival of the largest global advertisers like P&G,Henkel, and Kraft Foods meant that the digital market has (again) been put on holdfor an uncertain period of time. Most committed advertisers in the digital domainare from the financial, automotive, as well as telecommunications sectors but theyalso have the most experience in internet advertising. Most companies divertedabout 10-20% of their online budgets to cheap CPC solutions and in consequencethey delivered millions of impressions.Market specificsWhat makes your local online market unique? Are there any specifics that make itdifferent from others in the CEE region?internet usageThe combination of ADSL by Vivacom and cable internet furthered broadbandpenetration even in the smallest towns and villages. However, advertisers stillhave to understand that 95% of the most difficult-to-get audience in the 15-24 agebracket is on the web.publishersBulgaria is no exception regarding the development of social networking and themost popular site, Facebook, has more than 1.5 million users. Unfortunately,the stability of the banking system and the great number of debit and creditcards have not smoothed out the progress of e-commerce and e-shops. Bulgarianpublishers could well offer advertisers anything their creative agencies couldthink of.Gergana Marinova and Dilyan VelichkovMarketing Director, Zed Digital CybermarkOnline advertising marketWhat are the opportunities and obstacles for the Bulgarian online advertisingmarket?Despite the general upward trend during the last 10 years and the expectationsfor even faster growth during the recession, in 2009 and early 2010 the Bulgarianonline advertising market experienced its first year of an almost complete halt.Instead of trying to optimize their budgets through the use of internet as a moreeffective medium, as foreseen by specialists in the field in 2008, advertiserspreferred to ‘play it safe’, investing most of their budgets in the ‘good old media’,such as press, radio and television. This led to the small growth of the onlineadvertising market of 4%, as estimated by a leading Bulgarian media house.In 2009 the online media in Bulgaria continued their development of new formsof online advertising as well as the process of creating better opportunities foradvertisers. This trend is expected to continue, following general technologicaldevelopments.Do you CEE? Bulgaria
    • 57Moreover, many cost-effective buying solutions in the online media wereintroduced last year. This was a simple response to the unclear expectations andfears of advertisers, but it led to certain deviations in general pricing and buyingmodels. Finally, it caused some chaos on the market. Buying banner positionsusing both CPM and CPC is common practice for advertisers and for a short periodthe cost-per-click model flourished. However, most media soon recognized thatselling ad space using CPC as a mistake and corrected this by either increasingtheir prices per click, or returning to CPM.The interest of advertisers in professional online measurement opportunitiescontinued to grow. Precise advertising tracking tools started to be treated not asan extra option but as both a common and essential part of online campaigns.Despite the obstacles caused by the world recession, the Bulgarian onlineadvertising market as a whole continued its development and maintained anupward trend, albeit at a slower pace.Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in the future?A continued and natural trend in 2009 was the extremely fast growth of Facebook.Its Bulgarian audience continued to increase by over 100% on year to year. Thishad a strong negative impact on the local social media, which had so far also beendeveloping quickly. Although internet users keep spending more time on socialnetworking sites, a relatively small percentage of advertising budgets is investedtherein. In 2009 and at the beginning of 2010, Bulgarian advertisers togetherwith agencies were still unable to find the most suitable way to take advantage ofthe increasing usage of social media. They rely mostly on traditional advertisingformats, while rarely trying to utilize social media in a more unconventional andcreative way.Another trend continued in 2009 was the growth of online search investments,driven to a large extent by small advertisers entering this market for the first time. Do you CEE? Bulgaria
    • Croatia 1.67m internet users1. MAINPLAYERS_591.1. Top10websitesbyreach_591.2. Top10websitesbyaveragetimespentperuser_601.3. Topportals_611.4. Social networks_621.5. Onlineclassifiedadsbyreach_621.6. Topfinancesitesbyreach_632. ONLINEAUDIENCE_643. TOOLS_663.1. Browsers_663.2. Operatingsystems_663.3. Search engines_673.4. Screen resolutions_673.5. Mobiledevices_674. BRANCHORGANIZATIONS_685. ADVERTISINGNETWORKS_686. OPINIONSFROMTHEMARKET_68
    • 59 1. MAIN PLAYERS 1.1. TOP 10 WEBSITES BY REACH WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH USERS VIEW USER USER 1 net.hr horizontal portal 829 372 158 273 571 191 04:32:15 49% 2 index.hr horizontal portal 755 780 76 327 847 101 03:09:12 45% 3 tportal.hr horizontal portal 735 631 69 055 950 94 02:07:32 43% 4 forum.hr forum site 655 139 27 588 585 42 01:01:32 39% 5 24sata.hr news portal 631 918 89 223 037 141 02:02:18 37% 6 jutarnji.hr news portal 600 535 48 851 538 81 01:53:06 35% 7 njuskalo.hr classified ads 548 991 72 245 870 132 01:15:26 32% 8 blog.hr blog site 536 094 4 896 194 9 00:12:55 32% 9 bloger.hr blog site 473 324 8 601 594 18 00:24:22 28% 10 vecernji.hr news portal 456 003 19 800 231 43 00:53:11 27% Table 1 Top 10 websites in Croatia by reach level (Gemius/Valicon gemiusAudience March 2010)Majority on the Croatian online a news portal of one of the leadingmarket is made up of horizontal newspapers Večernji List, owned byportals and they lead in the ranking Styria Media Group AG, comes in attaking the first three positions. tenth in the ranking.Net.hr dominates the market reachingalmost every second Croatian internet Apart from portals and news servicesuser. With a reach 4 percentage points among the market leaders there is alsolower than the leader, second position a forum site (forum.hr), classified adsis taken by index.hr, a portal which service (njuskalo.hr) and two blogginghas reinforced its position within the platforms (blog.hr and bloger.hr).last year. The top 3 is propped up by Forum.hr is the most popular, multi-tportal.hr, which reaches 43% of the thematic forum site which like index.hraudience. At the beginning of 2008, does not belong to any large mediathis service headed the market. After group. It reaches 39% of Croatiana significant decrease in 2009, it will online internet users who on averageprobably gain second place by the end spent 1 hour on this service monthly.of 2010. Njuskalo.hr, which ranks seventh, owned by Styria, is the most popularThe second important group of players classified ads service.includes news services. The first,24sata.hr, in fifth place, has a reach First among the blogging platforms,level of 37%. In sixth place is jutarnji.hr blog.hr, was bought by NOVA (thewith a reach of 35%. Vecernji.hr, Croatian commercial television Do you CEE? Croatia
    • 60Network) 2 years ago. At the beginning case of the second player, blogger.hr,of 2009, it reached almost 37% of the which lost 3 percentage points inCroatian online audience; however, March 2010 compared to March 2009.after one year its reach has declinedby almost 5 percentage points.A similar situation can be observed in 1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH REAL USERS USER PER USER 1 net.hr 829 372 191 04:32:15 49% 2 index.hr 755 780 101 03:09:12 45% 3 1klik.net 2 419 49 02:24:36 0,17% 4 business.hr 73 578 36 02:15:04 4% 5 tportal.hr 735 631 94 02:07:32 43% 6 igre123.net 175 810 98 02:03:35 10% 7 24sata.hr 631 918 141 02:02:18 37% 8 fotozine.org 12 527 219 01:57:36 1% 9 jutarnji.hr 600 535 81 01:53:06 35% nogometni-maga- 10 44 585 60 01:30:38 3% zin.com Table 2 Top 10 websites in Croatia by average time spent per user (Gemius/Valicon, gemiusAudience, March 2010)The players that engage Croatian is very limited, lower than 1%. Theinternet users most are the popular next position, with a result of 2 hoursportals that take the lead in terms of 15 minutes, is taken by a popularreach. Net.hr dominates in the ranking business portal, business.hr.with a result of 4.5 hours. At the sametime, its main rival, Index, has over What is interesting is that there areone hour less than Net.hr. Tportal.hr hardly any entertainment websitesdoes not significantly lag behind its present in the ranking. The onlytwo major rivals in terms of number of gaming service, igre123.net, comes inusers, but has two hours less than the 6th place with a result of 2 hours.leader when average time spent peruser is taken into account. Croatian users also devote much of their time online to news services andThird position is taken by 1klik.net, two of them, 24sata.hr and jutarnji.hr,a website catalog and search domain are the listed in the ranking withbased on the Google engine. Though a result oscillating around the 2 hoursthe average time spent per user equals mark.almost 2.5 hours, the service’s reachDo you CEE? Croatia
    • 61Among the leaders in terms of averagetime spent per user, there is alsoa service dedicated to photography,fotozine.org, where its users spent onthe site almost 2 hours monthly onaverage.The ranking is propped up bynogometni-magazin.com dedicated tofootball. Though its audience is limitedto users interested in football theyspent on average of 1.5 hours on thewebsite monthly. 1.3. TOP PORTALS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 net.hr 829 372 191 04:32:15 49% 2 index.hr 755 780 101 03:09:12 45% 3 tportal.hr 735 631 94 02:07:32 43% 4 24sata.hr 631 918 141 02:02:18 37% 5 jutarnji.hr 600 535 81 01:53:06 35% Table 3 Top 5 portals in Croatia by reach level (Gemius/Valicon, gemiusAudience, March 2010)All of the portals and news services belong to any large media house andare listed among the most popular Index promocija d.o.o. is the soleplayers on the market. The first, net.hr, owner of the portal.was formerly known as iskon.hr, theportal of the ISP provider. It has been Index’s main rival is tportal.hr,leading the market since the beginning a service which at the beginningof 2008. This website, owned by of 2008 used to lead the market.Centrum Holdings (75%) and Proficio It belongs to the largest ISP provider(25%), is operated by Adriatic Media. T-com. Tportal provides its usersApart from news, the portal offers with news as well as entertainment.a wide variety of services such as free Although the discrepancy in termsmail, and chat. of reach between Index and Tportal is not that significant and accountsThe second is index.hr, a portal for a mere 2 percentage points,with a tabloid character. Apart from the latter loses out in terms of averagenews, it offers also a forum, nightlife time per user with a result over oneinformation, video content, a blog hour worse than Index.platform and more. Index does not Do you CEE? Croatia
    • 62The last two services included in the The ranking is propped up by jutarnji.hr,ranking are more news services than the news portal of a popularhorizontal portals. The first, sata24.hr, newspaper “Jutarnji List”. It belongsis a news portal run by a leading to Europapress Holding (EPH),daily tabloid. It belongs to Styria a media company operating in CroatiaMedia Group AG and has a unique, and Southeastern Europe. It ownsinteractive design, which distinguishes 5 daily newspapers and more thanit from other services. 24sata.hr 30 magazines.reaches 37% of the Croatian audiencewho on average spent 2 hours monthlyusing this service. 1.4. SOCIAL NETWORKS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER tulumarka.com 57 152 9 00:05:53 3% Table 4 Local social networking site measured by Gemius/Valicon, the gemiusAudience study by reach level (Gemius/Valicon, gemiusAudience, March 2010)Unlike other CEE online markets, their market share. For example, theCroatia has no strong local player that share of the second important localwould attract a wide group of internet player, Tulumarka, fell by 1 percentageusers. The most popular community point last year, losing almost 15,200site is Iskrica. Even though it has been users from March 2009 to Marchpresent on the market for more than 2010.10 years, its reach is estimated at onlya few percent. Currently, Facebook isthe strongest social networking siteon the Croatian online market andits position is still growing. Due to itsdomination, local players are losing 1.5. ONLINE CLASSIFIED ADS BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 njuskalo.hr 548 991 132 01:15:26 32% 2 oglasnik.hr 232 790 48 00:33:03 14% 3 auti.hr 184 722 107 01:08:32 11% Table 5 Top 3 online classified ads in Croatia by reach level (gemiusAudience, March 2010)Do you CEE? Croatia
    • 63The unquestionable leader among a print version, Plavi Oglasnik, andonline classifieds is njuskalo.hr, is the oldest site in this category.a service presenting itself as It is owned by Trader Media East anda „marketplace”. It contains a wide publishes more than 300,000 new adsspectrum of categories beginning with every month. However, the service isautomotive to tourism. The service not performing as well as njuskalo.hris extremely popular among Croatian and gained a reach of 14%. Last placeinternet users and comes in at 7th is taken by the auti.hr, auto classifiedplace in the general reach ranking service with a reach level of 11%with a reach level of 32%. The second which also belongs to TME.player is oglasnik.hr which also has 1.6. TOP FINANCE SITES BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 poslovni.hr 149 786 28 00:42:12 9% 2 limun.hr 81 728 24 00:55:38 5% 3 business.hr 73 578 36 02:15:04 4% Table 6 Top 3 finance sites in Croatia by reach level (Gemius/Valicon, gemiusAudience, March 2010)Among Croatian finance websites, the leading financial services is business.hr,unquestionable leader is poslovni.hr, which seems to be most engagingthe vertical portal of the first Croatian for its users who spent an averagedaily business newspaper Poslovni of more than 2 hours monthly onDnevnik. The portal has a large online this website. Moreover, the portal iscommunity of users centered around supported by a printed newspaper.financial and business topics, alongwith current affairs and analysis.Poslovni.hr provides an overviewof trading on regional stock exchanges.Moreover, it offers many businessand professional titles availablethrough an online bookstore.The second site, limun.hr, belongsto Raiffeisen Consulting d.o.o.,a company specializing in businessconsulting and brand management.This site is devoted to economic newsand advanced financial services.According to Gemius/Valicon, thegemiusAudience study, it reached 5%of the Croatian online audience inMarch 2010. Last in the ranking among Do you CEE? Croatia
    • 64 2. ONLINE AUDIENCE The Croatian gender structure – 24,999 inhabitants (19%). 11% ofof the online population is quite the online population lived in villagesbalanced, like on most other CEE and small towns with less than 1,000markets. In March 2010 men inhabitants.accounted for 52% of the onlineaudience. Moreover, the average man According to the Gemius/Valiconspent over 2 hours more online than gemiusAudience study from Marchthe average woman. 2010, the largest group among Croatian internet users in terms In terms of age, the most of occupation consisted of peoplesignificant group within the Croatian employed in companies. Theyonline population are young people accounted for 26% of the onlineaged 15-24. According to the Gemius/ population. Second place belongedValicon gemiusAudience study to students, who accounted for 22%from March 2010, they constituted of the online population. Another35% of the population. The second significant group is users employed inlargest group, users 35-44 years old, the public sector (18%).accounted for 23% of the population.People aged 25-34 accounted for1 percentage points less of the onlinepopulation. Croatian internet users are quitewell-educated. Majority of Croatianinternet users graduated fromsecondary school. According to theGemius/Valicon gemiusAudience studyfrom March 2010, they accountedfor 48% of the online population inCroatia. The next significant groupconsisted of users who were still inschool or faculty (29%). Only 3% of theCroatian online population had at bestprimary education. In March 2010, 27% of Croatianinternet users lived in cities with over100,000 inhabitants. What is more,these users were also the most activeones, spending over 14 hours online.The second most important group ofinternet users lived, according to theGemius/Valicon gemiusAudience studyfrom March 2010, in towns with 5,000Do you CEE? Croatia
    • 66 3. TOOLS 3.1. BROWSERSChart 1 Top browsers in Croatia by share of page views generated by internet users who visit theCroatian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)3.1. Browsers by Croatian internet users worth mentioning are Chrome (6%) andFor many years, the leader on Croatian Opera (4%). They are gaining a largerbrowsers market was Microsoft share of the market, though theInternet Explorer. However, over the process is slow.past few years the MSIE’s share ofpage views generated by internet 3.2. Operating systemsusers who visit Croatian websites usinggemiusTraffic has been decreasing. Like on other CEE markets, the leaderAt the beginning of 2010 it reached among operating systems in Croatiaa level of 43% and was overtaken is Windows XP. After the first quarterby Firefox. Other browsers used of 2010, its share of the market as 3.2. OPERATING SYSTEMSChart 2 Top operating systems in Croatia by share of page views generated by internet users who visitCroatian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)Do you CEE? Croatia
    • 67analyzed by gemiusTraffic, constituted77%, and its position does not seem to 3.3. SEARCH ENGINESbe threatened in the nearest future.However, Windows 7 gained almost12% of the market in less than a year,leaving Windows Vista behind.3.3. Search enginesThe Croatian search engine marketis as dominated by Google as otherCEE markets. After the first quarterof 2010, it accounted for 99% of thevisits made by internet users who visit Chart 3 Top search engines in Croatia by share of visits made by internet users who visit CroatianCroatian websites using gemiusTraffic, websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)leaving hardly any room for its rivals,MSN and Yahoo. 3.4. SCREEN RESOLUTIONS3.4. Screen resolutionsThe share of 1024 x 768 monitorscreen resolutions in Croatia has beendecreasing for the last few years.However, it is still the most popularchoice among Croatians with a shareof 32%. Other popular ones in the firstquarter of 2010 were 1280 x 1024,1280 x 800 and 1680 x 1050.3.5. Mobile devices - models Chart 4 Screen resolutions in Croatia by share of page views generated by internet users who visit Croatian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)Among the mobile devices used toconnect to the network, leadershipon the Croatian market belongs to 3.5. MOBILE DEVICESthe iPhone, which according to thegemiusTraffic study, was responsiblefor 54% of the page views generatedby mobile devices on an averagewebsite in July. Despite such a highresult, its popularity is graduallyfalling: a 2-percentage-point decreasewas observed over the past twomonths. Like on other markets, thisloss is in favor of the iPad, Apple’slatest product, which during the sameperiod improved its market share by2 percentage points. The share gained Chart 5 Top 5 mobile devices in Croatia by the website-averaged percentage share of page viewsby other devices in the top 5 oscillates generated by internet users from Croatia who visit Croatian websites using gemiusTraffic (gemiusTraf-around 2-3%. fic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10 **to 2010-07-25 Do you CEE? Croatia
    • 68 4. BRANCH ORGANIZATIONSIAB Croatia (INAMA) by offering stimulation and guidance for the industry. It was formerly knownwww.inama.hr as INAMA or ‘the association for interactive marketing’. It received anDescription: IAB Croatia is a local non- IAB license in 2008.profit, non-governmental organizationdedicated to interactive marketing. Members: publishers and agenciesIt was founded with the objective of (e.g. net.hr, tportal.hr, OMG)helping the development of interactivemarketing communication in Croatia 5. ADVERTISING NETWORKS GENERAL CONTACT INFORMATION FULL NAME HOMEPAGE URL MAIN OFFICE CONTACT ADDRESS ADDRESS Boškovićeva 13A, Phone: +385-1-30-30-430 1 E-Target etarget.hr 10 000 Zagreb, Croatia Email: marketing@etarget.hr Phone: +385-1-55-95-380 Livanjska 11, 2 Xclaim xclaim.hr Fax: +385-1-38-40-700 10 000 Zagreb, Croatia Email: welcome@xclaim.hr Phone: +385-1-55-95-383 Livanjska 11, 3 AdNet ad-net.hr Fax: +385-1-38-40-700 10 000 Zagreb, Croatia Email: info@ad-net.hr 6. OPINIONS FROM THE MARKETJan JilekPresident of IAB CroatiaOnline advertising marketWhat are the opportunities and obstacles for the online advertising market on yourlocal market?The economic situation in the world and in Croatia has decreased advertisingexpenditures in general, although the only medium that grew was the internet.On the other hand, the crisis resulted in lower prices of other media, mostly TV,which is already the most represented medium in total advertising Adex (60%). Inconclusion, the greatest problem regarding online advertising in Croatia is the factDo you CEE? Croatia
    • 69that the global crisis is still ongoing here. In short, it is hard for the online marketto be competitive in these conditions.Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in the future?As with many other markets, social media marketing had the highest growth inCroatia and this is expected to continue. Many advertisers began using Facebookand Twitter creating applications, fan pages, etc.Global vs. local playersAre the local players present on your local market strong enough to compete withthe global giants? What advantages and strategies do they use in this battle?Google and Facebook are the most popular global players in Croatia and havemore than 90% of the search and social media markets, respectively. Croatiancompanies cannot compete with this. Local players stick to news and portalinformation as they have an advantage with regards to local current affairs. Thetop three players in Croatia are all horizontal portals.Market specificsWhat makes your local online market unique? Are there any specifics that make itdifferent from others in the CEE region?The Croatian market is unique due to the extremely low price of TV advertisingcompared to other countries. This inhibits the growth of other media, includingthe internet. Although the internet is the only medium that can compete with TVand is growing, this is not happening as fast and as much as it could.Saša ŠkorićDirector, OMGOnline advertising marketWhat are the opportunities and obstacles for the online advertising market on yourlocal market?The lack of research on online advertising investment is the main obstacle for thegreater growth of advertising on the Croatian market. This is the main reason whyonly 2% of the advertising budget is online, although the real figures are muchhigher. Despite the fact that Croatians are a little behind in the standardization ofadvertising formats and prices, Croatian users are fast in accepting new trends thatcome from so-called more ‘developed’ countries. Do you CEE? Croatia
    • 70Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in the future?Social networking sites have become the main subject of discussion with regard toadvertising and almost all online campaigns include some forms of advertising anduser engagement on social networking sites, primarily Facebook. Geo-targetingservices and mobile advertising is expected to become more developed andpopular in the months to come.Global vs. local playersAre the local players present on your local market strong enough to compete withthe global giants? What advantages and strategies do they use in this battle?The strength and character of competition between global and local playersdepends basically on the particular business field. Although local players havestrong positions in some segments like ‘classifieds’ or ‘publishing’ (horizontalportals), in the ‘search’ or ‘social networking’ fields local players have almostdisappeared with the huge growth of Google and Facebook. Knowledge of thelocal market and user habits as well as local sales forces are the main advantagesof local players, who still hold the greatest shares within particular segments.Market specificsWhat makes your local online market unique? Are there any specifics that make itdifferent from others in the CEE region?Croatian users have embraced some global services on a larger scale and moreintensely than in the majority of other countries. On the other hand, fear of onlinepayment is still relatively high and the main reason why some online projects havefailed in Croatia.Do you CEE? Croatia
    • Czech Republic 5.29m internet users1. MAINPLAYERS_731.1. Top10websitesbyreach_731.2. Top10websitesbyaveragetimespentperuser_741.3. Topportals_751.4. Social networks_761.5. Onlineclassifiedadsbyreach_771.6. Topfinancesitesbyreach_782. ONLINEAUDIENCE_783. TOOLS_803.1. Browsers_803.2. Operatingsystems_813.3. Screen resolutions_813.4. Mobiledevices_814. BRANCHORGANIZATIONS_825. ADVERTISINGNETWORKS_846. OPINIONSFROMTHEMARKET_84
    • 73 1. MAIN PLAYERS 1.1. TOP 10 WEBSITES BY REACH WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH USERS VIEWS USER USER 1 seznam.cz horizontal portal 4 779 928 2 924 611 713 612 18:47:51 84% 2 novinky.cz news portal 3 152 036 222 189 189 70 01:47:06 55% 3 centrum.cz horizontal portal 3 046 395 453 637 700 149 02:59:39 53% 4 idnes.cz news portal 3 021 952 306 990 826 102 01:56:20 53% 5 firmy.cz company catalogues 2 469 792 60 832 571 25 00:25:36 43% 6 super.cz news portal 2 430 318 140 331 585 58 00:50:33 42% 7 mapy.cz maps 2 298 139 51 914 825 23 00:25:01 40% 8 stream.cz video content portal 1 860 614 35 977 914 19 00:25:20 33% 9 sport.cz sports portal 1 758 540 59 189 200 34 00:40:40 31% 10 estranky.cz webhosting and web creation 1 713 221 41 406 635 24 00:19:51 30% Table 1 Top 10 websites in the Czech Republic by reach level (NetMonitor - SPIR/Mediaresearch/Gemius, March 2010)According to the NetMonitor - SPIR/ contacts, ranked fifth and its reachMediaresearch/Gemius study in March level amounted to 43%. The next2010 the top 10 ranking by reach was are: Super.cz, a news portal withdominated by a varied set of portals. over 2.4 million real users, and mapy. cz, the most popular map site in theThe unquestionable leader was Czech Republic.seznam.cz with a reach level of 84%,1 percentage point more than a year The last group includes websitesago. This site is also top when it comes with an approximate 30% share ofto the number of page views per user, the market. With 1.86 million users,with a result of 612. The following stream.cz ranked eighth and was thethree places were occupied by number one Czech portal with audiowebsites with reach levels of around and video content as well as TV shows.50% - novinky.cz (55%), centrum.cz Its users are not only able to watch(53%) and idnes.cz (53%). They are available videos, but also upload theirall popular Czech portals and news own. Moreover, there is a specialservices. section for kids. Another portal in the ranking was sport.cz (31%), an onlineThe next group of sites reached magazine with sports news fromapproximately 40% of the Czech Seznam.cz and a daily newspaperonline audience. Among them, the Právo. The ranking was propped upmost popular one, Firmy.cz, a business by estranky.cz, which is a site dealingcatalogue with a database of company with web hosting and web creation. Do you CEE? Czech Republic
    • 74It enables its users to create a websitein 5 minutes, easily and, what is more,for free. In March 2010 it had a reachlevel of 30%.What is interesting about the websitesfrom the top 10 ranking list is the factthat half of them: seznam.cz, novinky.cz,firmy.cz, sport.cz and mapy.cz belongto the same owner, Seznam.cz. 1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH REAL USERS USER PER USER 1 seznam.cz 4 779 928 612 18:47:51 84% 2 lide.cz 1 690 541 406 04:34:14 30% 3 onlajny.cz 109 019 148 04:30:56 2% 4 livesport.cz 126 363 80 03:31:53 2% 5 warforum.cz 94 749 125 03:18:57 2% 6 rande.cz 61 759 279 03:18:51 1% 7 geewa.cz 18 195 85 03:11:20 0.3% 8 centrum.cz 3 046 395 149 02:59:39 53% 9 seznamit.cz 52 868 212 02:53:39 1% 10 aukro.cz 1 566 095 327 02:46:34 27% Table 2 Top 10 websites in the Czech Republic by average time spent per user (NetMonitor - SPIR/ Mediaresearch/Gemius, March 2010)In March 2010 the ranking of the networking service lide.cz. It wastop 10 websites by average time followed by onlajny.cz, which providesspent per user included sites that are online results and commentary onentertaining or enable their users various sports events e.g. football, iceto stay in touch with their friends. hockey and handball. It had a reachNot surprisingly the leader again level of 2%, but its popularity iswas seznam.cz. Its lead over other growing regarding the Olympics andwebsites seems to be unthreatened. football championships. A similarIn March an average user spent there Czech portal is livesport.cz, whosealmost 18 hours and 48 minutes. users spent on average 3 hours and 32 minutes on the service. As withIn second place, but with much lower onlajny.cz, it publishes sports newsresult of 4 hours and 34 minutes spent and live match results. Moreover,by its users monthly, was the social there is a chat room where visitors canDo you CEE? Czech Republic
    • 75comment on current sports events or With 3 hours and 11 minutes geewa.czsimply share information with others. ranked seventh. It contains a collection of online games grouped intoThe 5th and 6th positions were categories. However, it is not veryoccupied by warforum.cz and rande.cz popular among Czechs and its reachrespectively, sites where users spend level in March 2010 amounted to onlyalmost 3 hours and 19 minutes 0.3%.a month. Warforum.cz is a forumdivided into various sections such as The last three places were occupied byMovie Hall or Music Hall and they sites where users spent little less thanare further subdivided into forums 3 hours online a month. These wereand themes. In order to read or post centrum.cz, a popular Czech horizontalcomments users have to register. portal, seznamit.cz, another dating siteIn March 2010 this forum had almost (like rande.cz) and the aukro.cz online94,750 users. Rande.cz, on the other auction, whose popularity among thehand, is a website dedicated to Czech online population is growing.internet users who are searching fora friend or a relationship. 1.3. TOP PORTALS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 seznam.cz 4 779 928 612 18:47:51 84% 2 novinky.cz 3 152 036 70 01:47:06 55% 3 centrum.cz 3 046 395 149 02:59:39 53% 4 idnes.cz 3 021 952 102 01:56:20 53% 5 super.cz 2 430 318 58 00:50:33 42% Table 3 Top 5 portals in the Czech Republic by reach level (NetMonitor - SPIR/Mediaresearch/Ge- mius, March 2010)Since portals and news services are portal allows its users to personalizevery popular among Czechs, the the main page according to theirservices from the top 5 ranking also interests in a user-friendly way.occupy the leading positions in thegeneral ranking by reach. The most In March 2010 the second playersignificant one is seznam.cz, a market within the Czech online market wasleader on the Czech online market not the news portal novinky.cz withonly in terms of reach (84%), but also a reach level of 55%. It is an onlinein average time per user (18 hours magazine created in cooperationand 48 minutes). The portal offers the with a daily newspaper Právo andusual services to its users such as free Seznam.cz. It was launched in 2003mail, current news, weather forecasts, and instantly jumped to the top of theexchange rates, etc. This horizontal popularity rankings. Thanks to its rich Do you CEE? Czech Republic
    • 76content, it has a firm position in the page views. It has been present onCzech Republic with over 3.15 million the Czech online market since 1998,real users, who in March spent an when it published its first news online.average of 1 hour and 47 minutes on 24 hours a day its editorial team isthis service. preparing reliable news from home and abroad, culture, sport, economyThe third place was occupied by the and finance. Moreover, its users canhorizontal portal centrum.cz. In March visit specialized sub-services dedicated2010 its reach level amounted to to particular interest groups such as53%. In comparison to last year its the automotive industry, lifestyle,reach grew by 2 percentage points, health or travel.but it is still far behind seznam.cz.However, this portal is extremely user- The ranking from March 2010 wasfriendly and its users can find typical propped up by super.cz, which hadservices for this kind of site here i.e. a reach level of 42%. It is a jointmail, news, a TV schedule, free SMS project of Seznam.cz and Stratosféragateway, horoscopes and much more. and it contains articles from magazines of the Stratosféra publishing house.Idnes.cz was ranked fourth with over3 million users and almost 307 million 1.4. SOCIAL NETWORKS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 lide.cz 1 690 541 406 04:34:14 30% 2 blog.cz 1 664 116 40 00:34:54 29% 3 spoluzaci.cz 1 139 332 63 00:30:44 20% 4 idnes.cz|Rajce.net 822 533 25 00:19:43 14% 5 libimseti.cz 634 750 173 02:23:01 11% Table 4 Top 5 local social networks in the Czech Republic by reach level (NetMonitor - SPIR/Media- research/Gemius, March 2010)The popularity of local social networks the younger generation – the averagemeasured by NetMonitor in the Czech age ranges from 12 to 19 years old.Republic is declining. Lide.cz and blog.cz It is divided into several categories,were, according to the NetMonitor including a popular instant messaging- SPIR/Mediaresearch/Gemius study, service, discussion forums, datingthe most popular ones. However, in service and blogs. Blog.cz, on thecomparison to last year, their reach other hand, is a web application forlevel decreased by 5 percentage points creating blogs. It was launched in 2005and in March 2010 accounted for 30% and soon became the largest blogand 29%, respectively. Lide.cz is a part service on the Czech online market.of Seznam.cz, dedicated mainly toDo you CEE? Czech Republic
    • 77The other player on the Czech social In March 2010 its reach levelnetworking market is spoluzaci.cz. amounted to 14%.Its popularity is decreasing and overthe last twelve months its reach Libmiseti.cz, a community portal,declined by 8 percentage points, down was ranked fifth and with a reach levelto 20%. The site enables its users to of 11% it is another significant playerstay in touch with their classmates. on the Czech online market. It offersWithin the service, there is a database to its users custom profiles, photoof primary and secondary school albums, a chat and e-mail service,classes available in the Czech Republic. competitions and much more. In March 2010 its average user spentThe fourth place in the ranking was 2 hours and 23 minutes onoccupied by rajce.net, part of MAFRA, the website.a.s. (which owns idnes.cz) dedicated tosharing photos. Its users can createa free account with unlimited spacefor photos that can be easily uploadedto the site with simple software. 1.5. ONLINE CLASSIFIED ADS BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 sbazar.cz 1 044 789 50 00:32:46 18% 2 hyperinzerce.cz 941 032 18 00:14:46 16% 3 bazos.cz 615 046 116 01:01:28 11% Table 5 Top 3 online classified ads in the Czech Republic by reach level (NetMonitor - SPIR/Media- research/Gemius, March 2010)The leader on the classified ads In comparison to March 2009 its reachmarket in the Czech Republic in March level increased by 3 percentage points2010 was sbazar.cz with a reach level and in March 2010 accounted forof 18%. It is the largest Czech portal of 16%. The last website in the ranking,this kind. One can buy and sell as well bazos.cz, has also been gainingas participate in auctions on the site. popularity and its reach level grewAs many as 200,000 classifieds are by 2 percentage points over the lastgrouped into 20 categories. Moreover, twelve months. Bazos.cz is trying to besbazar.cz allows an immediate as simple and user friendly as possiblecommunication between buyer and and this strategy seems to be workingseller. It is a part of Seznam.cz. very well: its users add around 11,000 new ads daily.Second place belonged tohyperinzerce.cz, a classified ads sitewith over 1.2 million offers. Do you CEE? Czech Republic
    • 78 1.6. TOP FINANCE SITES BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER novinky.cz-rubrika 1 1 330 776 7 00:10:21 23% Ekonomika idnes.cz 2 Ekonomika 724 322 18 00:24:21 13% a Finance iDNES centrum.cz Aktualne.cz 3 390 404 17 00:16:31 7% Ekonomika/ Finance Table 6 Top 3 finance sites in the Czech Republic by reach level (NetMonitor - SPIR/Mediaresearch/ Gemius, March 2010)When it comes to finance sites, there novinky.cz) with a reach level of 23%.is no significant independent player. It was followed by Ekonomika andThe popular sites are parts of the Finance of iDNES, whose reach levelleading Czech portals: novinky.cz, amounted to 13%. The top 3 rankingidnes.cz and centrum.cz. was propped up by finance.aktualne. cz, which is a part of centrum.cz and inThe first place in the ranking, based on March 2010 it had over 390,400 realthe NetMonitor - SPIR/Mediaresearch/ users. It publishes business news onGemius study from March 2010, the stock exchange, the RM system,belonged to Ekonomika (part of currency rates, commodities etc. 2. ONLINE AUDIENCE The gender structure of the online online population were people agedpopulation in the Czech Republic 25-34, with a share of 24%. Theyis quite balanced. According to the were also the group of users whoNetMonitor - SPIR/Mediaresearch/ spent most time online, i.e. 32 hoursGemius study from March 2010, men and 32 minutes a month. The secondconstituted 52% whereas women largest group, users aged 15-24, who48%. Also in terms of average time in 2009 accounted for 28%, in Marchspent online per user there was no 2010 constituted only 22%. At themajor difference between the male same time the share of people over 55and female audience. On average increased by 2 percentage points.men were surfing the web for only 12minutes longer than women. In March 2010 the highest percentage of the Czech online In terms of age, the most population had completed secondarynumerous group within the Czech education (the group also includedDo you CEE? Czech Republic
    • 80extension studies). This amounted to over 100,000 inhabitants, with 13%39%. Moreover, they were the most in Prague alone. Another 23% of theactive internet users and on average online population lived in cities withspent almost 34 hours online per 20,000 – 99,999 inhabitants. 16% ofuser. The second significant group the online population lived in villageswithin the Czech online audience were and small towns with up to 999people with secondary education but inhabitants.without completing a ‘leaving exam’.All in all, these two groups together In the Czech Republic, the mostconstituted 61%. significant group in March 2010 in terms of occupation (37%) amongUsers with higher education amounted internet users were employees.to 16% in March 2010, 5% had Second place belonged to pupils,abachelor degree and 11% graduated students and trainees, who accountedfrom university. According to the for 24% of the online population.NetMonitor - SPIR/Mediaresearch/ Another major group of the onlineGemius study, users aged 12-14 audience were businessmen and soleaccounted for 7% of the online traders with 17%.population in the Czech Republic, thusit comes as no surprise that there isalso a high percentage of internetusers with incomplete primaryeducation (11%). According to the NetMonitor- SPIR/Mediaresearch/Gemius studyfrom March 2010, 23% of Czechinternet users lived in cities with 3. TOOLS 3.1. BROWSERSChart 1 Top browsers in the Czech Republic by share of page views generated by internet users whovisit Czech websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)Do you CEE? Czech Republic
    • 813.1. Browsers 3.2. OPERATING SYSTEMSMicrosoft Internet Explorer has beenthe leader on the Czech browsermarket for many years. However, overthe past few years, MSIE’s share ofpage views generated by internet userswho visit the Czech websites usinggemiusTraffic has been decreasing(over the past twelve months it lost7 percentage points) and its advantageover other browsers declined. Thesecond player on the Czech marketwith a market share of 35% in March2010 was Firefox. Unlike MSIE, its Chart 2 Top operating systems in the Czech Republic by share of page views generated by internet users who visit Czech websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)popularity has been growing for a longtime now and soon a change in theleader position may be expected. 3.3. SCREEN RESOLUTIONSAccording to the gemiusTraffic study,after the first quarter of 2010, Operahad 6% of the market. The newcomer,Chrome, already managed to gain 4%of the Czech browser market.3.2. Operating systemsSimilarly to other CEE markets,the unquestionable leader amongoperating systems is Windows XP.After the first quarter of 2010 its share Chart 3 Screen resolutions in the Czech Republic by share of page views generated by internet usersof the market accounted for 71%. Yet, who visit the Czech websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)its popularity has been declining forsome time. Quite a significant shareof the market (18%) belonged to 3.4. MOBILE DEVICESWindows Vista. Windows 7, launchedin the Czech Republic in October 2009gained in 1Q 2010 8% of the market inless than a year.3.3. Screen resolutionsThe most popular choice amongCzechs when it comes to screenresolutions has for a long time been1024 x 768. However, its popularityhas been declining for years. Accordingto the gemiusTraffic study its share of Chart 4 Mobile devices in the Czech Republic by the website-averaged percentage share ofthe market went down 9 percentage page views generated by internet users from the Czech Republic who visit Czech websites using gemiusTraffic (gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months)points over the last twelve months. *from 2010-05-10 **to 2010-07-25 Do you CEE? Czech Republic
    • 82After the first quarter of 2010 other position was taken by Apple’s latestpopular screen resolutions were 1280 product, the iPad. Even though in Julyx 1024 (18%) and 1280 x 800 (17.5%). 2010 its share equaled a mere 4%, it grew by 2 percentage points during3.4. Mobile devices - models the past two months. The next three positions belong to Nokia and HTCThe unquestionable leader on the devices, all oscillating around 3%.Czech market of internet mobiledevices is the iPhone. According tothe gemiusTraffic study, in July 2010iPhone was responsible for 22% ofpage views generated by mobiledevices on an average website. Second 4. BRANCH ORGANIZATIONSSPIR APEKwww.en.spir.cz www.apek.czDescription: SPIR is a professional Description: The Association forassociation active in the field of Electronic Commerce (APEK) isinternet advertising since 2000. The an association of more than 200membership base of the association companies, entrepreneurs andcurrently accounts for 66 members. experts in electronic commerce.Alongside operating integrated, APEK’s main goal is the analysiswidely respected research into visitor and study of electronic commerce.numbers and sociodemographic Members include the largest internetprofiling of internet visitors via shops, leading software companiesNetMonitor, it also implements an and financial institutions.internet advertising monitoringproject, AdMonitoring, organizes The association was founded in 1998the IAC professional conference on as an independent organizationinternet marketing, and provides that supports the development ofexpert analysis of internet market electronic commerce in the Czechdevelopment in the Czech Republic. Republic.Members: Internet Media (e.g. Members: the biggest internetARBOinteractive, spol. s r.o.; Centrum retailers, e-marketplaces, IT serviceHoldings; CET 21, spol. s r.o.; Internet providers, consultants, logisticsInfo, s.r.o.; MAFRA; Ringier ČR, a.s.; companies, financial service providersSanoma Magazines Praha, s.r.o.; (e.g. kasa.cz; invia.cz; cedok.cz; datart.Seznam.cz, a.s.), Internet Advertisers cz; dhl.cz; InternetMall; Mironet;(e.g. Mediaedge:cia Czech Republic, Retail Info).s.r.o.; MindShare, s.r.o.; OMD Czech,a.s.; Starcom MediaVest Group, s.r.o.).Do you CEE? Czech Republic
    • 83Association of Internet and has 43 members. The AssociationSolutions Providers has a special section dedicated to the internet – SVIT, which has runwww.asociace.biz as an independent operation since 2002. Its mission is the creation andDescription: Asociace.biz brings enforcement of standards for thetogether IT and web agencies internet environment.specializing in the developmentof internet and intranet solutions. Members: members of SVIT section:Asociace.BIZ organizes seminars and Centrum Holdings, Epravo.cz,conferences, publishes professional Euronews, IDG Czech, MAFRA, Ringierpublications providing world news ČR, Sanoma Magazines Praha, Tradeand internet solutions. The aim of & Leisure, Publications, Vltava LabeAsociace.BIZ is to provide inspiration Press.for advertisers and companiesas well as ideas on how to useinteractive media in e-commerce andmarketing campaigns, to streamlinework through corporate intranetsand systems built on modern webtechnologies. The association wasestablished in 2002.Members: IT companies and internetagencies (e.g. AARON GROUP spol.s r.o.; AMI Praha a.s.; ET NETERAa.s.; FG Forrest, a.s.; Internet Projekta.s.; Lundegaard spol. s r.o.; MatherAdvertures, s.r.o.; MEDIA FACTORYČR a.s.; OgilvyInteractive, Onlio, a.s.;První multimediální, s.r.o.; SYMBIODigital, s.r.o.; WDF - Web DesignFactory, spol. s r.o.).UVDT Czech Publishers Associationwww.uvdt.czDescription: The Association is thesole representative association ofentrepreneurs and employers in thesector of periodicals and the provisionof content via the internet in theCzech Republic. The Association bringstogether most publishers of nationaland regional newspapers and a largemajority of publishers of relevantmagazines. It was founded in 1990 Do you CEE? Czech Republic
    • 84 5. ADVERTISING NETWORKS GENERAL CONTACT INFORMATION FULL NAME HOMEPAGE URL MAIN OFFICE CONTACT ADDRESS ADDRESS Phone: +420-224-409-270 Nad Petruskou 63/1, 1 Impression Media, s.r.o. impressionmedia.cz Fax: +420-222-512-016 120 00 Praha-Vinohrady Email: info@impressionmedia.cz Phone: +420-234-676-410 U Hellady 697/4, 2 AdActive s.r.o adactive.cz Fax: +420-234-676-338 140 00 Praha 4 Email: info@adactive.cz Phone: +420-235-358-508 Lužná 716/2, 3 VISIBILITY s.r.o. visibility.cz Fax: +420-235-364-124 160 00 Praha-Vokovice Email: obchod@visibility.cz Hálkova 1629 / 11, Phone: +420-720-755-839 4 Admarket, a.s. admarket.cz Praha 2, 120 00 Email: reklama@admarket.cz Phone: +420-270-005-076 Vinohradská 2396/184, 5 Best Online Media, s.r.o. online-media.cz Fax: +420-737-283-091 130 00 Praha-Vinohrady Email: zuzana@online-media.cz Phone: +420-277-775-670 Janáčkovo nábřeží 51/39, 6 ARBOinteractive, spol. s r.o. arbointeractive.cz Fax: +420-251-082-105 150 00 Praha 5 Email: internet@arbointeractive.cz outdoornet.cz Senovážné náměstí 1984/10, Phone: +420-608-745-533 7 Media House, s.r.o. familynet.cz 110 00 Praha-Nové Město Email: info@mediahouse.cz Vítězné náměstí 576/1, Phone: +420-724-317-131 8 AMEDIA media, s.r.o. amediamedia.cz 160 00 Praha 6 Email: ib@amediamedia.cz Phone: +420-553-615-555 Novoveská 1262/95, 9 Internet BillBoard a.s. nternet.billboard.cz Fax: +420-553-620-667 709 00 Ostrava - Mariánské Hory Email: info@billboard.cz 6. OPINIONS FROM THE MARKETTomáš LaukoDigital & Business Development Manager, ZenithOptimedia – CEETomáš VargaHead of ZED Digital, Zed Digital (part of ZenithOptimedia)Online advertising marketWhat are the opportunities and obstacles for the Czech online advertisingmarket?The Czech market will most certainly grow. It has great potential (the 3rd largestadvertising market in the CEE region) and is certainly one of the most developedCEE markets. The latest Advertising Expenditures forecast of ZenithOptimediaDo you CEE? Czech Republic
    • 85(July 2010) predicts increasing investment in the Czech internet from the current11% (2009) to 14% in 2010 (prices from price list), which will ensure for the CzechRepublic a place in the top three countries in the CEE region, excluding Estoniaand Latvia.The greatest obstacle for the Czech market is the lack of understanding as manypeople pervceive the internet as a cheap medium.The second greatest obstacle is that the total online Audio-Visual potentialcannot be fully measured (YouTube, Google and Facebook are missing here).Regarding investments in the internet market, search marketing (as a type ofperformance marketing) has the greatest potential in the short term with mainlytext, but also display, starting to develop its full potential. Thanks to the crisis,also the small companies choose more often the CPC model, but on the otherhand the large companies still choose the CPM model.Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in the future?To summarize in three points: The cost per action payment model (ROI), social/online listening and mobile marketing. We can already see the first steps,testing and a shift from TV to AV (Audio Visual) after analyzing the first report ofmultimedia content measurement in the Czech Republic. It will be interestingto look at the mobile marketing measurement in the second part of 2010.Facebook, YouTube and performance marketing in general will continue toexpand on the Czech online market. There is also great and still untappedpotential in social/online listening. In most cases the brands do not realize theirpotential and do not know how to embrace and take full advantage of it.The most interesting work force in the nearest future will be analysts,copywriters, and people with ‘soft’ social skills.Global vs. local playersAre the local players present on your local market strong enough to compete withthe global giants? What advantages and strategies do they use in this battle?The strength of global players is growing and the last important market bastionin the Czech Republic is Seznam with many users impatiently waiting for its API.Seznam is strong enough and will be able to compete with global companies, butits weakness lays in relatively slow implementation of innovations. On the otherhand, the cooperation of Seznam with Microsoft shows that the vision of how tofight competition is clear. Do you CEE? Czech Republic
    • 86Another bastion of the Czech internet are local social networking sites, whoseposition has become weak (for example, the popularity of the Czech portalLibimseti.cz has fallen) and these sites will have to fight hard with such socialnetworking sites as Facebook to regain ground.Market specificsWhat makes your local online market unique? Are there any specifics that make itdifferent from others in the CEE region?One of the greatest advantages is the popularity of everything that is ‘Czech’.Czech Google can even build its success on this. The great advantage of theCzech online market is the high developed measurement here. We can see thebreakthrough in multimedia content monitoring in the Czech Republic and themeasurement of mobile marketing, in which the Czech Republic has a prominentposition in the region.What the Czech Republic still lacks compared to other countries in the CEE regionis self-promotion. There are already a great number of talented people on themarket, as well as know-how, possibilities, tools for testing and implementinginnovations in communication on the internet. However, unfortunately this is stillnot reflected in reality and in the image of the Czech Republic in CEE markets.Tomáš BúřilDirector of Sales and Marketing, Centrum HoldingsOnline advertising marketWhat are the opportunities and obstacles for the Czech online advertising market?We can see that the online market in the Czech Republic in 2010 is growing, mainlydue to direct clients. They are investing in the internet a larger part of their adbudgets than the major clients by media agencies. We expect that the total onlineadvertising market could reach its pre-crisis level in 2012, the level of 2008. At thattime, we also expect a balanced level of ad spending to online and print media.Currently, the biggest obstacle to fast growing investment is the great cautionof the largest advertisers and their predilection for traditional media, although,according to the surveys, the time spent on the internet is growing compared withdeclining print media and television.Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop the most in future?The main trends concern the following areas: media consolidation (into largerunits), a greater emphasis on news quality and local content and the high useDo you CEE? Czech Republic
    • 87of email, social media and instant messaging. In the future, search and PPCadvertising will certainly be top of the list, but that does not mean that displayadvertising (banners) will lose their meaning, rather the opposite will happen.These two things, in combination with specialized verticals, will be the main sourceof income on the internet in the future, where it will be not just ‘advertising’ butthe entire business chain from addressing client to direct selling.Global vs. local playersAre the local players present on your local market strong enough to compete withthe global giants? What advantages and strategies do they use in this battle?The local players are certainly strong enough because of their local content andmore personal ‘Czech’ approach to clients and customers. However, those whoconcentrate purely on the technological battle with the global players will notsucceed. It is just a matter of time when users realize this and start demandinga better service. The successful combination of both the local approach andcontent with global technologies and know-how is a strong possibility.Market specificsWhat makes your local online market unique? Are there any specifics that makeit differ from others in the CEE region?The Czech market is the most developed market in Central and Eastern Europe,due to the fact that all members of the local joint industry committee SPIR(the Czech Association for Internet Advertising) have agreed on the same point ofview, how to develop the whole market in a transparent way and how to profileonline advertising. Another specific feature is Seznam and its strong position,which has a great influence on the market, on business conditions and ‘userstandards’. What normally works in other countries may not necessarily work inthe Czech Republic. Do you CEE? Czech Republic
    • Estonia 0.81m internet users1. MAINPLAYERS_891.1. Top10websitesbyreach_891.2. Top10websitesbyaveragetimespentperuser_901.3. Topportals_911.4. Social networks_921.5. Onlineclassifiedadsbyreach_932. ONLINEAUDIENCE_943. TOOLS_963.1. Browsers_963.2. Operatingsystems_963.3. Search engines_973.4. Screen resolutions_973.5. Mobiledevices_974. BRANCHORGANIZATIONS_985. ADVERTISINGNETWORKS_996. OPINIONSFROMTHEMARKET_99
    • 89 1. MAIN PLAYERS 1.1. TOP 10 WEBSITES BY REACH WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH USERS VIEWS USER USER 1 delfi.ee horizontal portal 511 230 92 743 974 181 04:15:31 63% 2 postimees.ee horizontal portal 372 864 39 573 318 106 03:15:39 46% 3 sloleht.ee horizontal portal 295 111 27 276 398 92 02:04:37 37% 4 elu24.ee horizontal portal 263 236 11 296 684 43 00:52:29 33% 5 rate.ee social network 222 082 157 172 820 708 06:48:28 28% 6 mail.ru horizontal portal 179 646 55 733 268 310 07:44:34 22% 7 ilm.ee weather portal 169 503 3 608 057 21 00:15:22 21% 8 everyday.com horizontal portal 155 634 6 012 955 39 01:14:13 19% 9 buduaar.ee portal 128 562 24 961 666 194 02:20:52 16% 10 fotoalbum.ee photo sharing website 125 826 23 176 640 184 00:46:41 16% Table 1 Top 10 websites in Estonia by reach level (gemiusAudience, March 2010)In March 2010 the top 10 ranking in the construction of these sites. Whileof Estonian websites included in the delfi.ee develops each of their newgemiusAudience study was dominated by subsection (women, motoring, etc.)portals. The most popular one is delfi.ee under one domain, postimees.ee buildswith a reach level of 63%. It is the largest its services on separate domains. One ofinternet portal in the Baltic States, which its elements is elu24.ee, ranked fourthpopularity within the Estonian online with a reach level of 33%. They are bothpopulation is steadfast. In comparison very popular among the Estonian onlineto March 2009, it increased its reach by audience, as is the printed version of the1 percentage point, which considering “Postimees” newspaper.the ever growing number of internetusers in Estonia means that it is The other Eesti Media Group portalconstantly gaining new audience. is sloleht.ee. According to the gemiusAudience study from MarchThe next three places are occupied 2010 it had almost 300,000 real users.by portals belonging to Eesti Media, Similarly to postimees.ee it used to bethe largest media group in Estonia. only an online version of the newspaper,In March 2010, the most popular one: but now is probably more popularpostimees.ee had a reach level of 46%. than the original. In this day and age,It used to be the online version of increasingly more people choose to takea newspaper but with time developed advantage of new technologies insteadinto a successful independent portal. of traditional media. Online newspapersSuch huge discrepancy between the first are not only handy, but also save moneytwo players may be due to differences and time. Do you CEE? Estonia
    • 90The 6th place in the ranking belonged useful links. Moreover, the site offersto mail.ru, a Russian horizontal portal. its users many contests with attractiveAlthough the site is only available in prizes. In March 2010 the site recordedRussian, it had almost 180,000 real users almost 25 million page views.in Estonia. This is due to the fact that theRussian speaking part of the population In the top 10 ranking from March 2010is very active in Estonia. Mail.ru offers there were only two non-portal sites.its users not only a mail service, but also One of them was the social networkingcurrent news, weather information and service rate.ee. It is the largest and onlyvarious entertaining content. In March important local social networking site2010 an average user spent almost with a reach level of 28%. However,7 hours and 45 minutes visiting the because of strong competition fromwebsite making it a leader in terms of global sites, it has been losing itsuser activity among Estonian websites. audience and in comparison to March 2009 decreased by 7 percentage points.With a 21% reach ilm.ee took 7th placein the ranking. It is a popular weather The ranking was propped up byportal in Estonia. Thanks to its pleasant fotoalbum.ee, a photo sharing websitedesign and user-friendliness, more than with a reach level of 16%. Registered3.6 million page views were generated users can create profiles and publishon this site in March 2010. The site their photos to show to their friends.is available in Estonian, Russian and In spite of competition from global sites,English. fotoalbum.ee is not losing popularity and its number of real users remainsEveryday.com, a horizontal portal, came constant.8th , followed by buduaar.ee, a popularwomen’s portal with lots of gossip,lifestyle and diet advice, a forum and 1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH REAL USERS USER PER USER 1 mail.ru 179 646 310 07:44:34 22% 2 rate.ee 222 082 708 06:48:28 28% 3 delfi.ee 511 230 181 04:15:31 63% 4 postimees.ee 372 864 106 03:15:39 46% 5 perekool.ee 66 441 137 02:51:17 8% mangukoobas. 6 65 723 166 02:26:30 8% lahendus.ee 7 buduaar.ee 128 562 194 02:20:52 16% 8 lastekas.ee 44 917 118 02:12:50 6% 9 sloleht.ee 295 111 92 02:04:37 37% 10 gamefriik.ee 20 971 99 01:56:20 3% Table 2 Top 10 websites in Estonia by average time spent per user (gemiusAudience, March 2010)Do you CEE? Estonia
    • 91In terms of average time spent online material to study different schoolper user the leader on the Estonian subjects. In order to gain access to thisonline market in March 2010 was material users have to ‘pay’ a certainmail.ru with almost 7 hours and 45 amount of points/stars.minutes. Also, users of the socialnetworking service rate.ee were very 7th place was occupied by buduaar.ee,active online (6 hours and 48 minutes). mentioned above, and followed byThe subsequent two places were an online-games site, lastekas.ee.occupied by the horizontal portals As opposed to Mangukoobas,delfi.ee and postimees.ee. its target group is much younger (it is the only website in Estonia dedicatedPerekool.ee came in 5th place in to such a young audience). In Marchthe ranking. It is the most popular 2010 its reach level amounted to 6%Estonian family portal, where and an average user spent almostusers can find articles dedicated to 2 hours 13 minutes online here. Therepregnant women and parents of are many interactive games that kidssmall children. In the forum section, can play not only in order to have funusers can exchange views or ask other but also to learn.parents for advice on raising children.Moreover, there is a marketplace Another horizontal portal in thisfor used children’s clothes, toys etc. ranking, sloleht.ee, in March 2010According to the gemiusAudience had over 295,000 real usersstudy in March the site’s visitors spent who on average spent 2 hoursmore than 2 hours and 50 minutes and 5 minutes on this site. The 10thonline. ranking position was occupied by gamefriik.ee, a computer games portalMangukoobas.lahendus.ee was with almost 21,000 real users whoranked sixth with a result of 2 hours spent almost 2 hours online a month.and 26 minutes. It is the number one It is dedicated to an older audienceentertainment platform in Estonia with than Mangukoobas and Lastekas.mainly flash games for children and Apart from games there is alsoyoung people. Games are available a forum and a video section.for free and no registration is needed.Apart from games, there is also asection where children can find helpful 1.3. TOP PORTALS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 delfi.ee 511 230 181 04:15:31 63% 2 postimees.ee 372 864 106 03:15:39 46% 3 sloleht.ee 295 111 92 02:04:37 37% 4 elu24.ee 263 236 43 00:52:29 33% 5 mail.ru 179 646 310 07:44:34 22% Table 3 Top 5 portals in Estonia by reach level (gemiusAudience, March 2010) Do you CEE? Estonia
    • 92The most popular portals in Estonia it popular among the Russian-speakingalso occupy leading positions in the Estonian online audience. Postimees.eegeneral rankings by reach and by is dedicated mainly to well-educatedaverage time spent per user. users who visit the site in order to beThe leader in the Baltic States, delfi.ee, up-to-date. In turn, elu24.ee hasprovides its users with the latest news a more entertaining profile. It publishesand what is more it contains a blog, eye-catching news, gossip and infochat, webmail service and other about mass events taking place aroundinformation related to entertainment the world. It has a gallery and a videoand lifestyle. Moreover, it has section. In March 2010, elu24.ee hada games section, a forum and a video a reach level of 33%, which gave it thesection, where users can either watch 4th position in the top 5 portals byavailable video content or upload reach ranking.their own. Thanks to these features,delfi.ee has a devoted audience of With a 37% reach sloleht.ee rankedover 500,000 users, who according third. In terms of its content the portalto the gemiusAudience study, is somewhere between postimees.eegenerated more than 92.7 million and elu24.ee. 50% of it is owned bypage views in March. Eesti Meedia and 50% by the Ekspress Group. It presents business news andThe second player on the Estonian current affairs as well as light-heartedportals market is postimees.ee. photos and videos. Moreover, it has“Postimees” is the most popular daily a blog section and a TV guide.in Estonia. It is considered to have highquality content and a rather serious The ranking from March 2010 wasprofile. Its users can find current closed by mail.ru with a reach levelbusiness, science and sports news, of 22%. In terms of number of pageinformation about cultural events views, mail.ru is the unquestionableand much more on the site. Moreover, leader with 310 page views per userit offers a subscription option. The site a month.is also available in Russian, making 1.4. SOCIAL NETWORKS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 rate.ee 222 082 708 06:48:28 28% 2 keskus.ee 32 788 19 00:13:05 4% Table 4 Top 2 social networks in Estonia by reach level (gemiusAudience, March 2010)Local social networking services are last year by 7 percentage points andlosing popularity in Estonia. They are the 4% reach of keskus.ee makes itnot able to fight with global brands hardly a non-marginal player on thesuch as Facebook. The reach level of Estonian online market.rate.ee decreased in comparison toDo you CEE? Estonia
    • 93Rate.ee is dedicated mainly to young gadgets and information from variouspeople, who want to stay in touch with sources. Users can trace their friends’their friends or meet new ones. Users activities, upload photos or create andcan upload their photos and videos, participate in different interest groups.which can be commented on by theirfriends. Moreover, they can join clubswith people who have the sameinterests or create a new one. Thereare also games and tests accessible forregistered users only.The second local social network inEstonia, keskus.ee, enables its usersto create advanced profiles witha personalized webpage containing 1.5. ONLINE CLASSIFIED ADS BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 kv.ee 107 239 52 00:54:21 13% 2 cvonline.ee 99 551 60 00:37:43 12% Table 5 Top 2 online classified ads in Estonia by reach level (gemiusAudience, March 2010)There are two classified ad sites in service is for free, whereas publishinggemiusAudience study from March advertisements by employers is only2010: kv.ee and cvonline.ee. The first possible after paying a fee. The jobone, with a 13% reach, contains over offers are classified into categories to30,000 real estate ads published by enable its users to find the job theyprivate users as well as by companies. are interested in quickly and easily.Moreover, there is a news sectionwith market overviews, analysis andadvice. From February 2008 users canfollow the kv.ee Index characterizingthe Estonian real estate market.The website is available not only inEstonian but also in Russian, Finnishand English.In March 2010 cvonline.ee had a reachlevel of 12%, 1 percentage point morethan in March 2009. This classified adssite is dedicated to people searchingfor jobs and employers looking foremployees. For job-seekers, the Do you CEE? Estonia
    • 94 2. ONLINE AUDIENCE In Estonia, the gender structure Specialists and office employeesof the online population is not as constituted the most numerous groupbalanced as in other CEE markets. in terms of occupation (23%) amongIn March 2010, women constituted Estonian internet users in March 2010.54% of the online population, while Second place belonged to students,men comprised 46%. Additionally, an who accounted for 20% of the onlineaverage man spent 16 minutes more population. Workers also constitutedonline than an average woman. a significant part of the Estonian online population. The age structure of the Estonianonline population is quite balanced.The highest percentage of users (24%)is in the group of people aged 15-24. Yet the percentage differencesbetween particular age groups are notvery significant. In March 2010 thegroup of users aged 25-34 accountedfor 23% of the online audience andthe group aged 35-44 years old 22%.Even the group of internet users over55 constituted 15%, which is a largeproportion in comparison to other CEEonline populations. The majority of Estonian internetusers are high school graduates.According to the gemiusAudiencestudy from March 2010, theyaccounted for 38% of the onlinepopulation in Estonia. The nextsignificant group are users witha university degree (25%). 15% of theinternet users in Estonia have onlyelementary or unfinished high schooleducation. However, this is the groupthat leads in terms of the average timespent online with almost 13.5 hoursa month. The majority of Estonian internetusers (30%) live in Tallinn, the capitalof Estonia. In March 2010, thecounties with the largest share of theinternet population were Tartumaa(14%), Harjumaa (11%), Pärnumaa(8%) and Ida-Virumaa (7%).Do you CEE? Estonia
    • 96 3. TOOLS 3.1. BROWSERSChart 1 Top browsers in Estonia by share of page views generated by internet users who visit Esto-nian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)3.1. Browsers 7.5 percentage points. The third most popular browser is ChromeFor many years the leader on the followed by Opera. According to theEstonian browser market has been gemiusTraffic study, during 2009,Microsoft Internet Explorer. However, Chrome gained 4 percentage pointsthe growing popularity of Firefox and this trend remains stable. Anotherseems to threaten its position. browser used by Estonian internetOver the last year MSIE’s share of users is Safari. Although, it may notpage views generated by internet be the most popular browser, itsusers who visit Estonian websites popularity is still slowly growing. Afterusing gemiusTraffic decreased by the first quarter of 2010 its market12 percentage points, whereas share amounted to 1.5%.the Firefox’s share increased by 3.2. OPERATING SYSTEMSChart 2 Top operating systems in Estonia by share of page views generated by internet users who visitEstonian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)Do you CEE? Estonia
    • 973.2. Operating systems 3.3. SEARCH ENGINESSimilarly to other CEE markets, themost popular operating system inEstonia is Windows XP. In spite ofthe fact that its popularity has beendecreasing for the last few years, afterthe first quarter of 2010 its marketshare (as analyzed by gemiusTraffic)constituted 67%. The greatest threatand Windows XP’s replacement isdeemed by some to be WindowsVista. However, it did not meetusers’ expectations and after initial Chart 3 Top search engines in Estonia by share of visits made by internet users who visit Estoniangrowth has started to lose its share websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)to Windows 7. In less than a year thisnewcomer has managed to graba market share of 9%. 3.4. SCREEN RESOLUTIONSMac OS X and Linux are slowly gainingpopularity, however their respectivemarket shares are not significant(2% and 1%).3.3. Search enginesThere have been no significantchanges over the last 12 months onthe search engine market in Estonia.Since the second quarter of 2008, Chart 4 Screen resolutions in Estonia by share of page views generated by internet users who visitwhen Google overtook NETI, it has Estonian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)been the unquestionable leaderwith a market share of 72% after thefirst quarter of 2010. However, NETIis no longer losing its market share 3.5. MOBILE DEVICESand during the last three months2009 it gained 2 percentage pointsand reached a 22% share of themarket. Other search engines, i.e.MSN, Yandex, Delfi, Yahoo, are notparticularly popular among Estoniansand therefore they do not pose anythreat to the two main players.3.4. Screen resolutionsThe market share of monitors witha resolution of 1024 x 768 has been Chart 5 Top 5 mobile devices in Estonia by the website-averaged percentage share of page viewsdecreasing for the last few years. generated by internet users form Estonia who visit Estonian websites using gemiusTraffic (gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10However, it is still the most popular **to 2010-07-25 Do you CEE? Estonia
    • 98choice among Estonians. Other and comparing the results frompopular screen resolutions among May 2010 to July 2010, its share hasinternet users who visit Estonian sites decreased by more than 8 percentageusing the gemiusTraffic in the first points. The other Apple product thatquarter of 2010 were 1280 x 800 and has lost its market share is the iPod,1280 x 1024. Also screen resolutions gaining nearly 9% in July 2010. Duringof 1440 x 900 and 1680 x 1050 have the same period, the iPad consistentlybeen gaining popularity in recent gained the interest of users and itsyears. 1366 x 768 is a new screen share grew by more than 4 precentageresolution, which in one year has points within the past two months.managed to take 3% of the market. The last positions are taken by Nokia devices, responsible for around 10%3.5. Mobile devices - models of page views generated by mobile devices on an average website.The most popular mobile deviceused to connect to the internet onthe Estonian market is the iPhone.However, it is visibly losing its share 4. BRANCH ORGANIZATIONSEstonian E-commerce Union Group Ltd., Baumax Estonia OÜ, Adelor Ltd., Kids First LLC, Autoladu.eewww.e-kaubanduseliit.ee Portal Ltd., Text Elle OÜ, Maronek Ltd.Description: E-commerce Union’smission is to help develop the e- Estonian advertising agencies unioncommerce market in Estonia as wellas to work on unifying standards www.eral.eeand making the process of shoppingonline easier and safer for customers. Description: The Estonian advertisingE-commerce Union was established agencies union was founded in 1998in spring 2009 and currently has 44 and was formed to protect members’members. It costs to join as a member. interests, as well as to award the best agencies annually with theMembers: In June 2010 there were 44 “Kuldmuna” awards. ERAL’s vision is ofmembers. CDMarket AS, Despal SJ Ltd, a better environment through betterInterbauen Ltd, Neolor Ltd, Kindershop ideas.Ltd, Baltic IT Solutions Ltd, OnshopAS, OX Estonia OÜ, Time Squared Members: The Estonian advertisingLtd, Internet Revolution Ltd, Personal agencies union has very influentialTrade Ltd., Nordwise Ltd., Catwalkers members (approximately 99% ofLtd., Petsec Trading Ltd., Rattle Ltd., the largest players on the market).E Boutique Ltd., Helfors Trade Ltd., In June 2010 it had 41 members.Riveante Ltd., Sopso.com Ltd., IS These agencies include: AGE McCann,Commercial Ltd., Nesting Project Ltd., AD Angels, Artwerk, Blumberg,Nature Mobilis Ltd., Finest Fashion Brilliant, DDB Eesti, Direct Group OÜ,Do you CEE? Estonia
    • 99Ecwador, Euro RSCG Idea, Inorek & Ogilvy, The Division AS, Tank, VatsonGrey, TBWAGuvatrak, Kala Ruudus, Wunderman.Kontuur Leo Burnett, Plektrum Studio,Refleks, SAN Korpus JWT, Smile Design& Advertising, Zavod BBDO, Taevas 5. ADVERTISING NETWORKS GENERAL CONTACT INFORMATION FULL NAME HOMEPAGE URL ADDRESS MAIN OFFICE CONTACT ADDRESS Roo 42-7, Phone: +372-51-27-125 1 Smartad smartad.ee Tallinn, Estonia Email: priit.kivinurm@smartad.ee Phone: +372-66-17-970 Pärnu mnt 147, 2 Adnet adnet.ee Fax: +372-66-17-979 Tallinn, Estonia Email: adnet@adnet.ee Endla 69, Phone: +372-61-05-896 3 Klikivabrik klikivabrik.ee Tallinn, Estonia Email: info@klikivabrik.ee 6. OPINIONS FROM THE MARKETMeelis VillSales Director, Delfi EstoniaOnline advertising marketWhat are the opportunities and obstacles for the Estonian online advertisingmarket?The advertising market is liberal and flexible towards the needs of clients. Themajority of main publishers are flexible regarding specific solutions. One obstaclecould be the high price of specialized solutions which limits the creativeness ofadvertisements.Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in the future?Banners are getting larger. In addition to the day-based price model it is possible tobuy impressions from all major publishers. Do you CEE? Estonia
    • 100Global vs. local playersAre the local players present on your local market strong enough to compete withthe global giants? What advantages and strategies do they use in this battle?Most of the adspends of large international companies are at the moment beingspent on television. It would be important to find possibilities and arguments toshow television commercials on the internet.Igor RõtovCEO, Äripäev AS:Online advertising marketWhat are the opportunities and obstacles for the Estonian online advertisingmarket on your local market?We are expecting little growth in internet advertising, which will bring an increasein its general share. The trend at the moment is to direct advertisements to exacttarget groups. Those who have very general target groups will lose their marketshare whereas those players who can gain smaller market segments or maintainpositions of niche leaders will win. The testing of innovative solutions andtechnical possibilities will continue.Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in the future?News publishers will primarily try to offer paid content. Mobile applications, iPadand e-readers are set to become more popular. On the other hand, consumers willstay conservative and money will not be spent easily.Global vs. local playersAre the local players present on your local market strong enough to compete withthe global giants? What advantages and strategies do they use in this battle?Local players have a good position to win this battle. Estonia is too small marketfor Google, Microsoft or other major global players to especially invest here. Localplayers on the other hand have the substantive and technical expertise, resourcesand motivation to strengthen their positions.Do you CEE? Estonia
    • Hungary4,30minternet users 1. MAINPLAYERS_103 1.1. Top10websitesbyreach_103 1.2. Top10websitesbyaveragetimespentperuser_104 1.3. Topportals_106 1.4. Social networks_107 1.5. Onlineclassifiedadsbyreach_108 1.6. Topfinancesitesbyreach_108 2. ONLINEAUDIENCE_109 3. TOOLS_111 3.1. Browsers_111 3.2. Operatingsystems_112 3.3. Searchengines_112 3.4. Screenresolutions_113 3.5. Mobiledevices_113 4. BRANCHORGANIZATIONS_114 5. ADVERTISINGNETWORKS_115 6. OPINIONSFROMTHEMARKET_117
    • 103 1. MAIN PLAYERS 1.1. TOP 10 WEBSITES BY REACH WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH USERS VIEWS USER USER 1 google.hu search engine 3 927 644 - - 08:10:01 91% 2 youtube.com video sharing 2 777 829 - - 03:10:32 65% 3 iwiw.hu social network 2 771 643 1 764 264 408 637 05:24:32 64% horizontal portal / web 4 startlap.hu 2 287 189 - - 03:00:52 53% directory 5 freemail.hu mail provider 1 948 731 136 630 017 70 01:54:35 45% 6 facebook.com social network 1 910 368 - - 04:40:15 44% 7 blog.hu blog site 1 902 768 36 799 044 19 00:34:31 44% Microsoft’s interactiv 8 live.com 1 668 642 - - 00:35:18 39% services platform 9 origo.hu horizontal portal 1 630 868 55 484 691 34 02:00:06 38% 10 microsoft.com company site 1 563 662 - - 00:10:11 36% Table 1 Top 10 websites in Hungary by reach level (gemius/Ipsos Audience, March 2010)The ranking of the most popular service Facebook. Its reach level inwebsites in terms of the number March 2009 amounted to only 10%of real users in Hungary provides and this year it was 44%.an interesting picture of internetusers. Global websites, such as With a reach level of 53% startlap.google.hu (91%), youtube.com hu ranked fourth. It is the most(65%), facebook.com (44%), live. popular local web directory, whichcom (39%) and microsoft.com (36%) includes links to social networkingare very popular among Hungarians. websites, articles and all kinds ofMoreover, unlike on many other useful information. Fifth place inCEE online markets, local horizontal the ranking belongs to the mailportals and news services are not provider, freemail.hu. Its reachwebsites with the highest reach level amounted to 45% in Marchlevel in Hungary. 2010, according to gemius/Ipsos Audience. It is not only an e-mailA local site with the largest number service, but also has a gallery whereof real users is a social networking users can upload photos.service, iWiW.hu, with a reach levelof 64% in March 2010, which gave In 7th place, in terms of reach level,it third place in the top 10 ranking was blog.hu with 44%. Blog.hu, partof websites. The second popular of the portfolio of Central Europeanservice of this kind is the global Media and Publishing, is the leading Do you CEE? Hungary
    • 104Hungarian blogging platform with In terms of publisher-level reach ofmore than 70,000 active blogs. media portfolios, Sanoma Budapest (startlap.hu, citromail.hu, nlcafe.huThe 9th ranking position was held etc.) and Central European Mediaby origo.hu, the most popular and Publishing (blog.hu, index.hu,Hungarian portal with news and velvet.hu etc.) are the next biggestservices (the only one in the top local online media players after10 ranking). However, its popularity Origo.is declining and in comparisonto March 2009 its reach leveldecreased by 5 percentage points.When describing the situation onthe Hungarian internet market,it is crucial to take into accountthe ownership structure of thetop websites. From this pointof view it can be easily noticedthat, apart from global players,the undisputable leader interms of reach is Origo Média ésKommunikációs Zrt., whichis a member of the Magyar TelekomGroup. This company owns 3 sitesin TOP10: iWiW.hu, freemail.hu andorigo.hu. 1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH REAL USERS USER PER USER 1 tagged.com 52 464 - 12:07:07 1% 2 battleknight.hu 92 344 - 09:07:11 2% 3 google.hu 3 927 644 - 08:10:01 91% 4 hirlista.hu 31 791 - 07:49:00 1% 5 love.hu 137 860 848 07:36:10 3% 6 myvip.com 1 336 069 756 06:04:55 31% 7 freelove.hu 48 216 - 05:56:54 1% 8 kapu.hu 479 249 - 05:53:53 11% 9 iwiw.hu 2 771 643 637 05:24:32 64% 10 donna.hu 64 932 739 05:17:48 2% Table 2 Top 10 websites in Hungary by average time spent per user (gemius/Ipsos Audience, March 2010)Do you CEE? Hungary
    • 105In terms of average time spent online, character with lots of media content.the indisputable leaders are social In March 2010 their users visitednetworking websites. According to the site for almost 6 hours or moredata from gemius/Ipsos Audience, (love.hu – 7 hours 36 minutes).in March 2010 Hungarian internetusers spent more than 12 hours Other social networking websites invisiting tagged.com. It is a different the ranking were iwiw.hu, the mostkind of social networking website, popular one in Hungary with almostwhich enables its registered users 5 hours and 25 minutes spent per user,to meet new people through social and donna.hu, for young women withgames, friend suggestions, browsing a result of almost 5 hours andprofiles and group interests. Its reach 18 minutes. The latter provides articleslevel amounted to only 1%, which is on women topics, forums with expertworrying considering the fact that in advice and a chat room. Moreover,March 2009 it was 3 percentage points visitors can browse the classified ads.higher. One can join through an invitation from a member or by permission ofSecond place, with over 9 hours, the community if he is a man. What isbelonged to battleknight.hu, a free interesting is the fact that Facebookonline game created by a German was not included in this ranking.company Gameforge AG. Users can Although it is a very popular socialchoose whether they want to play as networking service on the Hungariana paladin in a shining armor or a dark online market, its users spent less timerobber knight. There are 33 versions online here than the users of localof this game available for people from social networking websites.different countries. In March 2010, one more HungarianAn average google.hu visitor spent site with users spending almost 6 hoursover 8 hours on this serch engine site was kapu.hu. In this web directoryin March 2010, and only little less, users can find links to social sites, newsi.e. 7 hours 50 minutes, was spent by services, and websites with diversifiedvisitors of hirlista.hu. It is a site which topics. According to the gemius/collects news from several other Ipsos Audience study, its reach levelHungarian news sites and provides amounted to 11% in March 2010.link to them. Thanks to the site,users no longer need to visit manydifferent news portals, but click on themost interesting links and are thenredirected to the original site wherethe news was first published.The next three places are occupied bysocial networking websites: love.hu,myvip.com and freelove.hu. They giveusers the opportunity not only to stayin touch with old friends, but also meetnew people. Love.hu and freelove.huserve mainly as dating sites, whereasmyvip.com has a more entertaining Do you CEE? Hungary
    • 106 1.3. TOP PORTALS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 startlap.hu 2 287 189 - 03:00:52 53% 2 origo.hu 1 630 868 34 02:00:06 38% 3 index.hu 1 332 998 77 04:59:41 31% 4 port.hu 1 322 314 60 0:34:19 31% 5 nlcafe.hu 1 069 158 - 00:25:51 25% Table 3 Top 5 portals in Hungary by reach level (gemius/Ipsos Audience, March 2010)The leader among portals on the engaged audience in terms of timeHungarian online market is startlap.hu, spent on the site (04:59:41 perwhich in fact is a combination user). Apart from news on politics,of a web directory and a service economics, technology, culture andaggregator, but is recognized as the sports Index also offers direct accessmost popular portal in Hungary with to its community services (Inda) froma reach level of 53% in March 2010. its front page, e.g. a blogging platformIt enables users to access e-mails, (blog.hu), video (indavideo.hu) andsearch engines, social networks, radio photo sharing (indafoto.hu) sites.programs as well as dictionaries. The forth position, with 31% reachThe second player in the category is in the ranking, is taken by port.hu.origo.hu. It is the most popular news Established in 1996, the service aimsportal in Hungary as far as the number to provide culture-oriented contentof users is concerned. In addition to programme and leisure information.the facilities typical for such portals, Port.hu presents data from officialit contains a section with holiday and primary sources such as TVoffers and, furthermore, it has its channels, cinemas, theatres, and itsown online store and software own content: reviews of films, photosdownload section. Moreover, there from concerts, etc. The companyis a search engine that allows one to belongs to PORT-network, a websitebrowse through the yellow pages and with subsidiaries in Romania, Slovakia,a telephone book. The reach level Serbia and Croatia. Their mainof this service amounted to 38% in function is providing internet andMarch 2010 according to gemius/ other electronic content concerningIpsos Audience. cultural offer information.With a 31% reach, index.hu was the Another significant player in Hungarythird most popular portal in Hungary. is nlcafe.hu, which ranked fifth in theIt is owned by Central European top 5 portals ranking. It is an onlineMedia and Publishing. Among the magazine for women, which providesHungarian portals, it has the most many features typical for such portals,Do you CEE? Hungary
    • 107such as a blog platform, online games,multimedia galleries, online shoppingand a dating service. According to thegemius/Ipsos Audience study, morethan 1,000,000 users visited the site inMarch 2010. 1.4. SOCIAL NETWORKS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 iwiw.hu 2 771 643 637 05:24:32 64% 2 facebook.com 1 910 368 - 04:40:15 44% 3 myvip.com 1 336 069 756 06:04:55 31% 4 hotdog.hu 1 026 115 - 01:30:22 24% 5 network.hu 677 737 - 00:19:38 16% Table 4 Top 5 social networks in Hungary by reach level (gemius/Ipsos Audience March 2010)With regard to social network Another important player is myvip.com,communities, the leader is the local with a reach level of 31%. In Marchwebsite iWiW.hu, which dominated 2010, the site was visited by overwebsites participating in the gemius/ 1,300,000 real users. In comparisonIpsos Audience study. In March 2010, to March 2009, its reach decreasedit attracted an audience of over 2.7 by 2 percentage points. Like iWiW.million real users, which is 100,000 hu, myvip.hu is an exclusive networkmore than a year ago. However, where users can only sign in whenthe reach level fell by 8 percentage they are invited by a member.points. Apart from the typical Myvip.hu is run by a companynetworking features, it also provides specializing mainly in onlineits users with classified ads. A huge entertainment, Generál Média Kft.advantage of iWiW.hu is easy access Great attention is paid to the site’sfrom mobile devices. media content, therefore, users are able to share their photos and videos.Although there are many social Moreover, the service publishes videonetworking sites in Hungary, for material itself, also in HD format. Ina long time there was no significant terms of monthly average time spentcompetition to iWiW.hu. However, online per user, myvip.hu ranked firstthe past year has shown major with more than 6 hours.growth in the reach level ofFacebook. In March 2009, its market In 4th place we find hotdog.hu,share slightly exceeded 10%, but a Hungarian social networkinga year later it reached a level of 44%. website for young people. Users are Do you CEE? Hungary
    • 108able to communicate with each other, They can share photos, videos, linksplay games, read news or search for a and articles. However, its marketjob. Moreover, the site offers a dating share decreased by 8 percentageservice, forums and blogs. points in comparison to March 2009.The ranking is propped up bynetwork.hu, another Hungarian socialnetworking website, whose users canjoin various communities and browsethrough advertisements. 1.5. ONLINE CLASSIFIED ADS BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 expressz.hu 1 065 524 105 01:09:21 25% 2 apronet.hu 339 798 10 00:09:27 8% 3 onlineapro.hu 177 173 21 00:14:04 4% Table 5 Top 3 online classified ads in Hungary by reach level (gemius/Ipsos Audience, March 2010)The main player on the classified ads onlineapro.hu with a reach level of 4%.market in Hungary is expressz.hu, According to information on the site itwith a reach level of 25%. A year ago stores more than 300,000 ads. The siteits reach level was 1 percentage point offers its users free registration andhigher. Advertisements are grouped online ads.into 31 categories e.g. games, clothes,job offers, cars, real estate. Accordingto the gemius/Ipsos Audience study,the second most popular site withclassified ads, with a reach of 8%, wasapronet.hu. Third place belonged to 1.6. TOP FINANCE SITES BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME REACH USERS USER PER USER 1 index.hu-Gazdaság 487 130 8 00:15:33 11% 2 vg.hu 318 474 8 00:08:54 7% 3 portfolio.hu 315 414 34 01:45:16 7% Table 6 Top 3 finance sites in Hungary by reach level (gemius/Ipsos Audience, March 2010)Do you CEE? Hungary
    • 109The most popular service dedicated Second place is taken by vg.hu, theto the economy in terms of reach online version of the newspaperlevel is the subsection of the famous Világgazdaság, covering economichorizontal portal index.hu, owned and financial news. In March 2010 theby Central European Media and service had more than 310,000 realPublishing(CEMP). With almost users which gave it a reach level of500,000 internet users it reaches 11% 7%. However, compared to last yearof the online audience in Hungary. a drop of 1 percentage point has been observed.Portfolio.hu, also owned by CEMP,reaches 7% of the audience who areinterested in finance. They spendan average of more than 1 hour45 minutes on the site. Portfolio.hu isan economic portal with informationregarding, amongst others, finance,stocks and exchange rates. Althoughthird as far as the number of real usersis concerned, , the website leaves bothits competitors behind in the numberof page views per user. 2. ONLINE AUDIENCE The online population in Hungary attractive medium for more matureis very balanced in terms of gender persons.structure. In March 2010 the majorityof Hungarian internet users were Hungarian internet users aremen, but they constituted only 50.2% relatively well-educated. Althoughof the online population, so their only 7% had graduated frompredominance is not impressive. Men, a university, this is still a goodhowever, spent an average of 6.5 result, especially after taking intohours more online than women (58 consideration the age structure,hours compared to 51.5). which is dominated by young internet users. People with at least secondary Like in other CEE markets, school education constituted 65%Hungarian internet users are very of the Hungarian online population.young. According to the gemius/ Only 1% of the internet audienceIpsos Audience study, in March 2010 had incomplete elementary schoolindividuals aged 15-24 were the education in March 2010.majority and constituted 28%. 25%constituted users aged 25-34. People The majority of internet users inover 55 years accounted for 13% of Hungary live in big cities and largerthe audience and the percentage towns. According to the study carriedis growing, which means that the out by Gemius and Ipsos, Budapestinternet is becoming an even more (the capital city) alone is home to as Do you CEE? Hungary
    • 111much as 21% of Hungarian internet together constituted 31%. People whousers as of March 2010. A further 16% are not professionally active did notlive in cities with more than 100,000 constitute an important proportion ofcitizens. A significant proportion of the online market; however, they arethe online audience come from small undoubtedly the most active internettowns and villages and accounted for users. In terms of average time spent22% of the online population. online per user they were far ahead of any other group. In March 2010, studentsconstituted the largest group ofinternet users (25%) in Hungary.Another significant proportionof internet users are specialists(graduates) and qualified workers who 3. TOOLS 3.1. BROWSERSChart 1 Top browsers in Hungary by share of page views generated by internet users who visit Hunga-rian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)3.1. Browsers during the first three months of the 2010 has gained 2 percentage points.Mozilla Firefox has been the most This trend seems to be continuing.popular browser in Hungary since thebeginning of 2009, when it overtook 3.2. Operating systemsMicrosoft Internet Explorer. In thefirst quarter of 2010 its market share The most popular operating system inconstituted 54%, whereas the MIE Hungary was Windows XP, with a 76%constituted 37%. The third most share in the first quarter of 2010.popular browser is Chrome, which However, its popularity has beenhas been gaining an advantage over decreasing with the introduction ofOpera since the end of 2009 and Windows 7, which since then has Do you CEE? Hungary
    • 112 3.2. OPERATING SYSTEMSChart 2 Top operating systems in Hungary by share of page views generated by internet users whovisit Hungarian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)been gaining an ever larger share the first quarter of 2010. Bing, whichof the market and is catching up ranked second, contributed to onlywith Windows Vista. After the first 1.5%.quarter of 2010, the market shareof Windows 7 amounted to 9.5%, 3.4. Screen resolutionswhich ranked second among the topoperating systems in Hungary. Mac OS Although the market share of 1024 xX and Linux have been slowly gaining 768 monitor screen resolutions haspopularity, but neither of them cover decreased, it is still the most popularmore than 1% of the market. choice among Hungarians. Other popular screen resolutions in the first3.3. Search engines quarter of 2010 were 1280 x 800 and 1280 x 1024. The screen resolutionLike in other CEE countries, the of 1440 x 900 as well as 1366 x 768indisputable leader of the search have become more popular in recentengine market in Hungary was Google years.winning a market share of 97% in 3.3. SEARCH ENGINESChart 3 Top search engines in Hungary by share of visits made by internet users who visit Hungarianwebsites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)Do you CEE? Hungary
    • 113 3.4. SCREEN RESOLUTIONSChart 4 Screen resolutions in Hungary by share of page views generated by internet users who visitHungarian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)3.5. Mobile devices - models device was Nokia 5800. Its users generated 5% of the mobile traffic onAccording to the gemiusTraffic study, the average Hungarian website usingthe most popular mobile device gemiusTraffic. Other devices in theused to access the web in Hungary is top 5 ranking were iPod and NokiaiPhone, which in July was responsible E51.for 36% of page views generatedby mobile devices on the averagewebsite. Another Apple product,iPad, had a 6% share, however, itspopularity is growing and from Mayto July 2010 it gained 2 percentagepoints. The third most popular mobile 3.5. MOBILE DEVICESChart 5 Top 5 mobile devices in Hungary by the website-averaged percentage share of page viewsgenerated by internet users from Hungary, who visit Hungarian websites using gemiusTraffic(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10**to 2010-07-25 Do you CEE? Hungary
    • 114 4. BRANCH ORGANIZATIONSIAB Hungary a self-regulating body, was founded in 2001 by Hungarian internetwww.iab.hu content providers, including Index and [origo], in order for the contentDescription: IAB Hungary was providers to be able to participate inestablished in November 2008 the development of the Hungarianas a division of the Hungarian internet business market withAdvertising Association. There are 48 verified and professionally supportedfounder members. The organization commitments using the tools of self-is concentrated on: increasing the regulation.awareness, usage and recognitionof digital marketing and advertising MTE’s aim is to ensure that thesolutions; assisting in the development internet is regulated with as littleof the digital marketing and digital intervention as possible with emphasismedia industries; lobbying at national on self-regulation. To this aim, MTEand international forums for-profit, has created a professional code ofnon-profit and governmental internet content provision and a codeorganizations; creating a common view of ethics describing the generally(platform) in the industry by means of accepted system of ethical normsconstant and credible communication for Hungarian content provision.with market players, various In order to decide about disputedorganizations, press and municipalities matters, the association establishedconnected to the industry. a professional decision court, whose decisions are accepted by members ofMembers: agencies and sales houses MTE as binding.(e.g., Adaptive Media, Carnation,EURO RSCG, Evomedia, Kirowski, Members: publishers (e.g. T-OnlineOnlinemarketing.hu, Fastbridge, Magyarország Rt., Index.hu Zrt.,MEC Interaction), publishers (e.g. Népszabadság Online, www.napi.huAxel Springer, Central European Online Kft., Kurt Lewin Alapítvány,Media and Publishing, Expressz, Menedzsment Fórum Kft., ColorplusGoogle, Magyar Telekom, MTM-SBS Kft.) service providers (e.g. Neumann– TV2, Origo, Sanoma Budapest), János Digitális Könyvtár és Multimédiaresearch agencies (e.g. AGB Nielsen Központ Kht.)Médiakutató, Gemius Hungary, GFKHungária Piackutató Intézet, Medián,NRC, Szonda Ipsos Piackutató), Association of Communicationsadvertisers (CIB Bank, MOL, Vodafone) Agencies in Hungary (MAKSZ)and technology service providers (e.g.Adverticum). www.maksz.com Description: The Association ofAssociation of Hungarian Content Communications Agencies in HungaryProviders (MTE) (MAKSZ) was set up by 13 leading advertising agencies in Hungary in Maywww.mte.hu 1995. The main objective was to set up an organization especially focusedDescription: The Association of on the interests of agencies.Hungarian Content Providers (MTE), The MAKSZ is member ofDo you CEE? Hungary
    • 115the European Association of Telex Kft., Lauritzen Marketing Kft.,Communications Agencies (EACA), Café Group, eMission, Initiative Mediawhich is the highest level of agency Hungary, Mediaedge:cia Hungary Kft.representation in the world. It can Media Planning Group Hungary Kft.).be assisted by a number of foreignexperiences in the domesticprocessing industry, the developmentof marketing communication.Members: There are already51 members and the number isincreasing. Agencies include: EuroRSCG Budapest Zrt., Ogilvy&MatherReklámügynökség Budapest Zrt.,Young & Rubicam Budapest, CreateamPromotion, HPS BTL Solutions, Human 5. ADVERTISING NETWORKS GENERAL CONTACT INFORMATION FULL NAME HOMEPAGE URL REACH MAIN OFFICE CONTACT ADDRESS ADDRESS Adaptive Media Sales 1037 Budapest, Szépvölgyi Phone:+36-1-577-4050 1 House adaptivemedia.hu 93% út 33. Phone:+36-1-577-4051 Sales Contact Kft. Phone:+36-1-371-3500 1117 Budapest, Gábor Dé- 2 Origo Zrt. corp.origo.hu 91% Fax:+ 36-1-371-3805 nes u. 2. „D” Email: adhouse@origo.hu 1037 Budapest, Montevideo Phone:+36-1-437-1100 3 Sanoma Budapest Zrt. sanomabp.hu 76% u. 9. Fax:+36-1-437-3737 Flórián Udvar Email: sanomabp@sanomabp.hu Phone:+36-1-555-7000 CEMP Sales House, 4 cemp.hu 71% 1033 Budapest, Flórián tér 1. Fax: +36-1-231-0862 Index.hu Zrt. Email: sales@cemp.hu 1097 Budapest, Phone:+36-1-323-0360 5 Evomedia evomedia.hu 68% Vaskapu utca 10-14. D Fax:+36-1-323-0361 épület Email: sales@evomedia.hu 1094 Budapest, Tűzoltó u. Phone:+36-1-299-0318 6 GMedia - Habostorta habostorta.hu 58% 59. Fax:+36-1-299-0319 Actual Media Sales Phone: +36-1-998-0164 7 House actualmedia.hu 56% 1201 Budapest Pacsirta u.77. Email: info@actualmedia.hu Actual 77 Media Kft 1053 Budapest Ferenciek 8 Generál Média Kft. ringier.hu 53% Email: sales@generalmedia.hu tere 7-8. III. lh. I/8. Kolozs Krisztina 1122 Budapest 9 Axel Springer Online axelspringer.hu 38% Phone: +36-1-488-5564 Városmajor utca 11 Email: krisztina.kolozs@axelspringer.hu Lazók Rómeó www.lighthouse- 1024 Budapest Margit krt. 10 Lighthouse Média Kft. 34% Phone: +36-30-456-3907 media.hu 15-17. Email: romeo.lazok@lighthousemedia.hu Do you CEE? Hungary
    • 117 6. OPINIONS FROM THE MARKETIstván KürtiDirector of Sales, Sanoma BudapestOnline advertising marketWhat are the opportunities and obstacles for the Hungarian online advertisingmarket?The growth rate of internet penetration has slowed down recently, thus it is notthe primary engine of the industry’s growth anymore. Nowadays the greatestopportunities are in displaying new and creative types of advertisements andenhancing the effectiveness of ads. To implement such changes the followingactions should be taken:• clients should provide creatives congruent with website themes• measurement standards should be developed effectively• the potential of media convergence, e.g. ‘augmented reality’ should be used more intensively• effective targeting of video advertisements, sponsored videos and others should be appliedDominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in the future?Development might be expected after the falloff of the economic crisis mainly bythose market segments that have suffered from an economic downturn the most(for example transport or real estate). Generally speaking, advertisers put moreemphasis than ever on measurability and return on investment, thereupon theshare of the internet in total advertising expenditure is growing.Global vs. local playersAre the local players present on your local market strong enough to compete withthe global giants? What advantages and strategies do they use in this battle?Generally speaking, though globalization unequivocally supports large,international companies, local content is still important for users. Due to thisfact, Hungarian users can be found through domestic media. Sales teams takingthis approach can provide the same level of services as the larger companiesrepresented by sales houses.Péter NovákChairman, IAB HungaryOnline advertising marketWhat are the opportunities and obstacles for the Hungarian online advertisingmarket? Do you CEE? Hungary
    • 118As a result of changes in consumer media usage online/digital communicationitself is seen to be increasing, and it is not possible to avoid the processes that theeconomy and advertising market is going through.Considering the fact that communication spending has decreased significantly inthe last two years, it has also had a negative influence on online market growthand also decelerated it. The dynamics over the last few years are in parallelwith the economic recovery and the visible growth of consumption. Also, therestructuring of the online market will not stop, so trends are influenced bymeasurability and efficiency most.Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in the future?Advertisers are increasingly more interested in solutions that are capable ofgenerating sales directly and this affects the growth of targeting needs and alsotransforms pricing and financial accounting.The expansion of both online shopping and e-commerce brings new advertisers tothe market. Besides different direct communication environments, the constantdevelopment of online CRM solutions, the improvement of database constructionand the growing appreciation of the data obtained are the most important trends.Furthermore, the significant strengthening of mobile media is expected.Global vs. local playersAre the local players present on your local market strong enough to compete withthe global giants? What advantages and strategies do they use in this battle?When considering the role of global market players it is worth noting thatnowadays those who provide services for domestic users without conducting anysignificant local operations form a great threat to Hungarian players in fields likesearching, video hosting and social media.On the other hand, while the search market is dominated by the leading globalservice provider, the position of the local social media market leader has not beenreally threatened. The video market has gone through remarkable changes, the‘match’ has not finished. Overall, global competition will cause more difficulties forlocal market players during the next few years.Market specificsWhat makes your local online market unique? Are there any specifics that make itdifferent from others in the CEE region?While comparing the Hungarian online market with other CEE countries manysimilarities as well as differences can be found. Online markets in this part of theworld are rather small, internet penetration oscillates at a medium level and localcompetition is strong.Do you CEE? Hungary
    • 119Taking into consideration the development of the online advertising market,Hungary belongs to the CEE leaders, but in a certain sense it is still ratherconservative.Gabor TóthHead of Digital of Omnicom Media Group (OMG)Online advertising marketWhat are the opportunities and obstacles for the Hungarian online advertisingmarket?The biggest obstacle is the prolonged financial crisis and economic downturn.However, this is also an opportunity, as investors are turning to effective and costefficient channels to use their limited marketing budgets.Dominating trendsWhat are the recent trends on your local online market? What branches areexpected to develop most in the future?The two main areas receiving a lot of attention are search and social media.Search is finally getting the recognition it deserved as advertisers are learning howto use this channel best. Social media is at the stage of experimentation: althoughmany companies feel the urge to use it, many mistakes are being made. The thirdarea which will experience intense growth is video advertising.Global vs. local playersAre your local market players strong enough to compete with the global giants?What advantages and strategies do they have in this battle?Local language in non-user generated content is the key, so global players are not asignificant threat in this area. However, in other fields it is clear that local playersare struggling to keep up with the pace of development dictated by the globalplayers: Google search, Facebook, YouTube are either already the undisputablewinners in their own segment or they are going to be one in the near future.Market specificsWhat makes your local online market unique? Are there any specifics that make itdifferent it from others in the CEE region?The importance of social network sites and the way Hungarians use them.We love to share photos, videos with our friends – and we do it with morecommitment than other countries in the region. It almost seems like we preferredto meet up online. Do you CEE? Hungary
    • Latvia 1.20m internet users1. MAINPLAYERS_1211.1. Top10websitesbyreach_1211.2. Top10websitesbyaveragetimespentperuser_1221.3. Topportals_1231.4. Social networks_1241.5. Onlineclassifiedadsbyreach_1251.6. Topfinancesitesbyreach_1262. ONLINEAUDIENCE_1263. TOOLS_1283.1. Browsers_1283.2. Operatingsystems_1293.3. Search engines_1293.4. Screen resolutions_1293.5. Mobiledevices_1304. BRANCHORGANIZATIONS_1305. ADVERTISINGNETWORKS_1326. OPINIONSFROMTHEMARKET_133
    • 121 1. MAIN PLAYERS 1.1. TOP 10 WEBSITES BY REACH WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH USERS VIEWS USER USER 1 inbox.lv horizontal portal 792 531 245 041 702 309 06:17:28 66% 2 draugiem.lv social network 739 786 1 249 803 404 1689 24:20:44 62% 3 delfi.lv horizontal portal 665 600 98 698 672 148 03:33:09 55% 4 ss.lv classified ads 598 001 241 360 669 404 03:21:33 50% 5 tvnet.lv horizontal portal 450 903 37 609 480 83 02:29:12 38% 6 apollo.lv horizontal portal 416 432 36 821 077 88 01:54:59 35% 7 one.lv social network 337 475 277 799 261 823 10:03:18 28% 8 1188.lv information service 296 934 3 852 033 13 00:10:42 25% 9 zip.lv classified ads 289 721 18 423 529 64 00:43:20 24% 10 zl.lv information service 277 005 3 063 874 11 00:11:37 23% Table 1 Top 10 websites in Latvia by reach level (gemiusAudience, March 2010)The most popular websites in terms despite strong competition fromof reach can be classified into four global social networks, the positioncategories. Similarly to other CEE of the local ones remains very strong.markets, the leadership belongs to The unquestionable leader, withhorizontal portals. In March 2010, a reach level of 62%, is draugiem.lv.number one in the ranking was inbox.lv, Its growing popularity can bea mail service that evolved into a confirmed by the fact that its reachhorizontal portal with a reach level level increased by 3 percentage pointsof 66%. However, in comparison to during the last twelve months.March 2009, its reach decreased by 3 The other popular social networkpercentage points and this is not an in Latvia in March 2010 was one.lv.exception; the same situation applies It had a reach level of 28% (still,in case of other horizontal portals. The regarding one.lv this indicator hasreach level of delfi.lv, which ranked dropped) and over 300,000 real users.third, dropped by 2 percentage points Unlike draugiem.lv, which is visited(from 57% to 55%) and tvnet.lv and mainly by Latvians, one.lv is moreapollo.lv had reach levels 3 percentage popular with Russian users.points lower than the previous year(38% and 35%, respectively). What is also characteristic about the Latvian online market is the highThe second significant group within popularity of online classified adsthe Latvian internet market are social services. With a reach level of 50%,networking services. Interestingly, ss.lv occupied the fourth position in Do you CEE? Latvia
    • 122the ranking of top websites. Zip.lv, websites, 1188.lv also contains usefulwhose introduction to the market in information on different means ofJune 2008 was a great success, comes transport, an entertainment section9th. However, its popularity seems and job offers.to have reached its peak and duringthe last year, its reach level decreased In August 2009 another informationby 1%. service, zl.lv, was included in the gemiusAudience study with a reachThe fourth significant website category level of 15%, which soon started toin Latvia is the group of information grow. In March 2010 its reach levelservices, which enable users to search amounted to a surprisingly high 23%.for company services, shops or places The site is organized in a very simpleon a map. The most popular Latvian way, all available information isinformation service is 1188.lv with divided into nine categories togethera reach level of 25% in March 2010 with an additional “most wanted” one.which gave it the 8th position among Apart from Latvian, its users can alsothe most popular websites by choose the Russian or English versionreach. Apart from the normal kinds of the website.of services offered by this sort of 1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH REAL USERS USER PER USER 1 draugiem.lv 739 786 1,689 24:20:44 62% 2 one.lv 337 475 823 10:03:18 28% 3 inbox.lv 792 531 309 06:17:28 66% 4 boomtime.lv 150 902 285 04:05:33 13% 5 delfi.lv 665 600 148 03:33:09 55% 6 ss.lv 598 001 404 03:21:33 50% 7 tvnet.lv 450 903 83 02:29:12 38% 8 sportacentrs.com 142 797 99 02:26:17 12% 9 mail.ru 246 811 93 02:17:16 21% 10 spoki.lv 211 600 120 01:59:51 18% Table 2 Top 10 websites in Latvia by average time spent per user (gemiusAudience, March 2010)The first two places in the top 10 acquaintances online. An average userwebsites by average time spent per of the most popular social networkinguser are occupied by social networking service in Latvia, draugiem.lv, spentsites. Similarly to people from other more than 24 hours visiting theCEE countries, Latvians enjoy spending website in March 2010. Users of one.lvlong hours socializing with their are not so much active online, butDo you CEE? Latvia
    • 123still spent more than 10 hours on the internet audience, but also theirthe site. Another social networking visitors spend much time online. Inservice in the ranking, boomtime.lv, March 2010 an average user of ss.lvoccupied fourth place. However, in spent 3 hours and 22 minutes on theterms of average time spent per user website, placing it on the 6th positionit was far behind the two leaders, with in the ranking.approximately 4 hours spent visitingthe site in March 2010. The ninth place in the ranking was occupied by mail.ru, which is a RussianA relatively strong position in the horizontal portal. The site is veryranking is held by horizontal portals. popular in all the Baltic states due toInbox.lv, which has the greatest reach the fact that the Russian minoritieslevel in Latvia, ranked third, with 6 account for a significant part of thehours and 17 minutes spent online Baltic population. In Latvia, mail.by an average user a month. The ru had almost 250,000 real users inusers of the second portal, delfi.lv, March 2010, who on average spentspent more than 3.5 hours reading over 2 hours there.the news published on the site inMarch 2010. Only one hour less online The ranking, based on the resultswas spent by visitors of tvnet.lv and obtained with the gemiusAudiencesportacentrs.com. The latter is a sports study conducted in March 2010, wasportal offering its users current news propped up by spoki.lv, a Latvianconcerning sports events and the entertainment platform withprivate lives of sportspeople. Apart humorous articles, photos andfrom articles there are also a video videos for young people seekingsection, a gallery and a forum. entertainment. It had a reach level of 18% and an average user spent almostIt has already been mentioned that 2 hours on the site in March.classified ads services are very popularon the Latvian online market. Ascan be seen in the top 10 ranking byaverage time spent per user, theyare not only visited by a large part of 1.3. TOP PORTALS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 inbox.lv 792 531 309 06:17:28 66% 2 delfi.lv 665 600 148 03:33:09 55% 3 tvnet.lv 450 903 83 02:29:12 38% 4 apollo.lv 416 432 88 01:54:59 35% 5 diena.lv 218 093 22 00:34:49 18% Table 3 Top 5 portals in Latvia by reach level (gemiusAudience March 2010) Do you CEE? Latvia
    • 124The top 5 portals on the Latvian providers, but it also has an online TVonline market also occupy the leading service and co-operates with majorpositions in the general rankings. offline stations in order to manageIn March 2010, the leader was inbox.lv, the best video content. Similarly towhich is not a typical horizontal delfi.lv, the portal underwent a faceliftportal and differs from similar sites in last year and created a mobile version,neighboring countries. Usually, they m.tvnet.lv. Tvnet.lv had, according toare news-oriented services, whereas the gemiusAudience study from Marchinbox.lv offers a free e-mail service and 2010, a reach level of 38%.is an entertainment-style website witha variety of games and jokes accessible Another important player amongafter registration. Also, it publishes Latvian portals is apollo.lv with morenews from apollo.lv and has its own than 415,000 real users. The portalsocial networking portal - amigos.lv. is a typical news publishing site with diversified subdomains. Its strong sideThe second player in this category is its video content with a possibilityis delfi.lv, which provides its users to watch TV programs in real time.with the latest news and in addition Apollo.lv collaborates with some ofhas a blog, chat and webmail service the smallest sites within their mediaand info related to entertainment group.and lifestyle. Moreover, it has anentertainment channel with games In the fifth place is diena.lv,and a forum and a video section, a horizontal portal with a reach level ofwhere users can either watch available 18%. Since it is an online version of thevideo content or upload their own. It respected daily newspaper, it focuseswas one of the first portals to have its mainly on high quality text content.own mobile versions: m.delfi.lv, i.delfi.lv. Moreover, it offers paid content fromRecently it has had a facelift, but this its daily newspaper where users candid not stop its decreasing reach level, find more analytical articles. Apartwhich in March 2009 accounted for from that, it develops user-generated57%, and a year later - 55%. content. In comparison to March 2009 the number of its real users grewThe third place belonged to tvnet.lv. by 30,000 and its popularity is stillIt is one of the best local news growing. 1.4. SOCIAL NETWORKS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 draugiem.lv 739 786 1689 24:20:44 62% 2 one.lv 337 475 823 10:03:18 28% 3 irc.lv 152 613 40 00:41:19 13% 4 boomtime.lv 150 902 285 04:05:33 13% 5 orb.lv 137 362 19 00:20:20 11% Table 4 Top 5 social networks in Latvia by reach level (gemiusAudience, March 2010)Do you CEE? Latvia
    • 125The most popular social networking Amongst the services with the highestservice in Latvia is draugiem.lv, the reach level, there also are irc.lv andsecond most popular Latvian website boomtime.lv with a reach level ofin terms of reach. From March 2009 13%. The first, like one.lv, is popularto March 2010 it gained over 70,000 among Russian speaking internetnew real users, thereby increasing its users. It is dedicated to internet usersreach level by 3 percentage points. aged 15-24, who can search for theirMoreover, as mentioned before, friends, use chat rooms or visit thedraugiem.lv is also leading in the blog section. Boomtime.lv has overranking of websites by average time 150,000 real users and although in thespent online. Its success can be put ranking it claimed 4th place, in termsdown to a complex and well-managed of average time spent online it was farplatform, mixing the concepts and ahead of irc.lv.functionalities of global brands such asFacebook and Twitter. What is more, The last site in the ranking is orb.lv,it is still developing and trying to reach a non-typical social networking sitenew audience for example by a recent with a reach level of 11%. Its users areintroduction of an option to create not so much into meeting their friendscompany profiles. online but they would rather listen to music or visit the blog section andAnother important player is one.lv, orb.lv gives them this possibility. Mostwhich is especially popular among of its users are 18-25 years old.Russian-speaking users. According tothe gemiusAudience study in March2010 its reach level accounted for28%. In contrast to draugiem.lv, one.lvis losing traffic. In comparison toMarch 2009, its reach level declined by5 percentage points. 1.5. ONLINE CLASSIFIED ADS BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 ss.lv 598 001 404 03:21:33 50% 2 zip.lv 289 721 64 00:43:20 24% 3 reklama.lv 197 237 58 00:31:41 16% Table 4 Top 3 online classified ads in Latvia by reach level (gemiusAudience, March 2010)The indisputable leader when it comes in Latvian and Russian. The secondto the classified ads online market place among the classified ads sites inin Latvia is ss.lv with a reach level March 2010 belonged to zip.lv, a relativelyof 50%. The ads are classified into new player with a reach level of 24%.12 categories and are available It started from the draugiem.lv Do you CEE? Latvia
    • 126platform and in a short time becamea successful player on the Latvianinternet market. In the third placeis reklama.lv with a 16% reach andalmost 200,000 real users. 1.6. TOP FINANCE SITES BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USERS USER 1 financenet.lv 155 740 10 00:11:52 13% 2 db.lv 95 122 24 00:32:41 8% Table 6 Top 2 finance sites in Latvia by reach level (gemiusAudience, March 2010)According to the data from the as did the number of users, by moregemiusAudience study, the most than 20,000.popular financial sites in Latvia arefinancenet.lv and db.lv. The first one The second significant player on theworks as a part of tvnet.lv, a popular finance sites market in Latvia in MarchLatvian horizontal portal that ranked 2010 was db.lv with a reach levelfifth in the top 10 websites by reach of 8%. It is the digital version of theranking. However, financenet.lv business newspaper “Dienas Bizness”,has its own logo and a separate but its content is original. Users aredomain and its results are measured not only able to read online news,independently. In March 2010 it but also subscribe and get the printedhad a reach level of 13% and over version of the newspaper and gain150,000 real users. Financenet.lv access to archives with older articles inpublishes articles concerning business PDF format. In terms of average timeand finance. It has a special section spent online per visitor, db.lv beatsdevoted to foreign financial markets. financenet.lv. Its users on averageIn comparison to March 2009 its reach spent more than half an hour visitinglevel decreased by 3 percentage points this site in March 2010. 2. ONLINE AUDIENCE According to the gemiusAudience hours and 20 minutes) than men, whostudy in March 2010, women surfed the web for almost 30 hoursconstituted 52% of the online and 54 minutes.population, while men comprised48%. Furthermore, women on average Similarly to other CEE onlinespent more time online (around 32 markets, Latvia is also dominatedDo you CEE? Latvia
    • 128by young people. According to the Majority of internet users ingemiusAudience study, in March 2010 Latvia live in large cities (72%). Inpeople aged 15-34 accounted for 53% March 2010, 39% of the Latvian onlineof the online population. The highest population lived in the capital citypercentage of users (28%) are people (Riga) and a further 10% in the Rigaaged 15-24. region. 8% of Latvian internet users live in small towns and 10% in villages.In comparison to March 2009 the People in Daugavpils spent the leastproportion of people over 55 years amount of time online - on averageold grew by 2 percentage points. It has only 23 hours and 17 minutes per userbeen observed that not only more a month.older people have become interestedin the internet, but also it can be The most numerous group inobserved that the Latvian internet is terms of occupation (22%) amongmaturing together with its users. Latvian internet users in March 2010 was ‘specialists and office employees’. Most Latvian internet users have The second force within the interneta higher education (29%) or have users were students, who werefinished vocational schools (29%). also among the leaders in terms ofThe next significant group includes activity per user, with 32 hours andhigh school graduates and constitutes 42 minutes. Another active group was19% of the Latvian online population. farmers. In March 2010 they accounted for only 1% of the researched internetA mere 13% of internet users in Latvia audience, however, during this monthhave only elementary or incomplete each of these users spent over 36high school education. However, hours surfing the web. Marginally lessthis group leads in terms of average time was spent online by unemployedtime spent online with almost 40 hours people, who in March accounted fora month. 9% of the internet audience in Latvia. 3. TOOLS 3.1. BROWSERSChart 1 Top browsers in Latvia by share of page views generated by internet users who visit Latvianwebsites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)Do you CEE? Latvia
    • 1293.1. Browsers 3.2. OPERATING SYSTEMSThe most popular browser in Latviais Firefox with a market share of 53%.At the beginning of 2009 it overtookMicrosoft Internet Explorer, whosepopularity has been declining and inthe first quarter of 2010 had a marketshare of 34%. The third most popularbrowser is Chrome followed by Opera.According to the gemiusTraffic study,during the three first months of 2010Chrome gained 2 percentage pointsand the trend is sustained. Chart 2 Top operating systems in Latvia by share of page views generated by internet users who visit Latvian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)3.2. Operating systemsThe leader of the operating systemsmarket in Latvia is Windows XP with 3.3. SEARCH ENGINESa 76% share in the first quarter of2010. However, its popularity hasbeen decreasing since the introductionof Windows Vista. Windows 7 waslaunched in Latvia in the secondquarter of 2009 and since then it hasbeen gaining an ever larger share ofthe market and is catching up withWindows Vista. After the first quarterof 2010 its market share accountedfor 9%. Mac OS X and Linux are slowlygaining popularity, but still each of Chart 3 Top search engines in Latvia by share of visits made by internet users who visit Latvian websi-them covers less than 1% of the tes using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)market.3.3. Search enginesSimilarly to other CEE online search 3.4. SCREEN RESOLUTIONSengines markets, the Latvian one isdominated by Google with a marketshare of 97% in the first quarter of2010. The second place belonged toYandex and the third to MSN, bothof them had a market share of onlyabout 1%.3.4. Screen resolutionsAlthough the market share of 1024x 768 monitor screen resolutions Chart 4 Screen resolutions in Latvia by share of page views generated by internet users who visithas decreased in the last few years, Latvian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010) Do you CEE? Latvia
    • 130 3.5. MOBILE DEVICESChart 5 Top 5 mobile devices in Latvia by the website-averaged percentage share of page viewsgenerated by internet users from Latvia, who visit Latvian websites using gemiusTraffic(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10**to 2010-07-25it is still the most popular choice to access the web in Latvia is theamong Latvians. Other popular screen iPhone, which in July was responsibleresolutions among those who visit for 27% of page views generated byLatvian sites using the gemiusTraffic mobile devices on an average website.in the first quarter of 2010 were Yet, its domination is gradually1280 x 1024 and 1280 x 800. Also diminishing and its share fell bythe screen resolution of 1440 x 900 4 percentage points in two months.has been gaining popularity over As with other markets the loss isthe recent years. in favor of the iPad, Apple’s latest product, which in the same period3.5. Mobile devices - models extended its share by 3 percentage points. The other devices in the topAccording to the gemiusTraffic study, 5 oscillate around 3%.the most popular mobile device used 4. BRANCH ORGANIZATIONSLRA (Latvian Advertising association) advertising agencies. From the very start the main aim of the associationwww.lra.lv was to organize the advertisement market by improving the quality ofDescription: The Latvian Advertising advertisements, building up its positiveassociation (LAA) is a public image in society and contendingorganization, established in 1994 against new legal regulations regardingwith the objective to unite 3 parties the limits of advertising distribution inworking in the advertising industry: the mass media.advertisers, mass media andDo you CEE? Latvia
    • 131Members: advertising agencies, the intention of becoming the mainmass media, mass media agencies, internet association in Latvia.advertisers, production companies,catalog publishers, research institutes; Members: internet providers,banks. software developers, web design developers, programming companies, internet research companies andLADC (Latvian Artdirector Club) others (e.g. Izzi SIA, Microsoft Latvia, Latnet Serviss, Latvenergo , Euro Data,www.ladc.lv Lattelecom).Description: The LADC (LatvianArtdirector Club) is a non-profit The Latvian Information Technologyorganization that represents and Telecommunications Associationspecialists from Latvia’s design andadvertising sector as well as other www.likta.lvcreative professions. It was foundedby the main market players. LADC Description: LIKTA is a non-holds regular workshops and lectures governmental association bringinginviting lecturers from the world’s together ITTE product andleading agencies and independent service providers and educationalartists in order to exchange institutions, as well as over 150experiences and improve the creative individual professional memberscompetence of the Latvian advertising of the ITTE industry sector inmarket. Latvia. LIKTA is actively involved in discussing legislation and monitoringMembers: Creative, advertising and public procurement procedures forweb agencies, their workers and ITTE products and services. It wasindependent artists. founded in 1998 by the major market players. At the 2002 annual meeting the members of LIKTALatvian Internet Association adopted a declaration on the need to develop the ITTE sector listingwww.lia.lv a number of concrete steps to be taken into account. The declarationDescription: The Latvian Internet has been forwarded to topAssociation brings together government officials, political partiescompanies connected with the and other competent authorities.internet and online services; By 2007 almost all steps had beenit informs members about important accomplished.changes in legislation, new publiconline projects, global case studies, Members: Computer hardwareand the suchlike. Its main aims are and software developers, internetthe development of the Latvian providers, telecommunicationsinternet market and educating market infrastructure and service providersmembers about various internet and developers, web developers,issues. It was founded in 2000 by electronics (e.g. Exigen Services15 internet market players with Latvia, LATTELECOM SIA, Institute of Do you CEE? Latvia
    • 132Mathematics and Computer Science in 2000 LDTA became a founderof UL, RIX Technologies, Tieto Enator of ITTE ALLIANCE which unites& Alise). professional associations that represent Latvian-based enterprises and scientific and educationalAssociation of Computer Technologies institutions whose work is connectedof Latvia (LDTA) with electronics and electrical engineering as well as informationwww.itnet.lv technology and telecommunications.Description: Founded in 1997, Members: IT product sellers,the Association of Computer computer hardware developers andTechnologies of Latvia (LDTA) is sellers, IT infrastructure developersa non-profit organization and (e.g. Capital Ltd, MicroLink Systems,the oldest association on the Latvian Lursoft IT).IT market. The founders and membersare the largest IT companies andbest known juridical individuals thatdeal with IT solution developmentand implementation together withIT wholesale product enterprises.At present members of LDTA areinvolved in processes that supportthe creation of informationsociety infrastructure and areactively using and promoting NewEconomy principles. In order toprovide a friendly environmentfor the development of IT andtelecommunications development, 5. ADVERTISING NETWORKS GENERAL CONTACT INFORMATION FULL NAME HOMEPAGE URL REACH MAIN OFFICE CONTACT ADDRESS ADDRESS Phone: + 371 67 29 25 23 Caka str. 83/85 – 30, 1 Adnet adnet.lv 55% Fax: + 371 67 18 64 06 Riga, Latvia Email: info@adnet.lv Vienibas gatve 75A, Phone: + 371 28 36 40 65 2 SmartAD smartad.lv - Riga, Latvia Email: eduards.kampe@smartad.lv Phone: + 371 67 83 06 61 Stabu str. 54, 3 Inspired Affiliate inpired.lv - Fax: + 371 67 83 06 60 Riga, Latvia Email: inspired@inspired.lv Lattelecom Dzirnavu str. 105, Fax: + 371 80 00 80 41 4 affiliate.lattelecom.lv - Affiliate Riga, Latvia Email: affiliate@lattelecom.lvDo you CEE? Latvia
    • 133 6. OPINIONS FROM THE MARKETViktors RožkalnsOMG Digital Manager, Omnicom Media GroupOnline advertising marketWhat are the opportunities and obstacles for the online advertising market onyour local market?It is easy to target potential customers because we have exact informationabout all popular portals. However, we still need to find the best ways to usethis space. Traditional Giga banners are not working well so we need to findnew places, new kinds of banners. Portals also are developing new forms ofbanners. A major obstacle is a lack of buying options. In most cases there is onlyone currency: price for days, but increasingly more clients are willing to buyimpressions or clicks.Dominating trendsWhat are the recent trends on your local online market? What areas areexpected to develop most in the future?It is obvious that a lot of companies are willing to use creative interactive websolutions for their campaigns but not all of them are ready to pay for them.Many companies are still choosing to use standard banners but internet usersmore often like interaction with a brand than just clicking on banners. Thereare also ready platforms for interaction: the social portal draugiem.lv as well asothers. Many companies use also Google Adwords but still this is only a smallpart of the whole web budget. We predict that companies will continue tomainly buy traditional banners but interactive web solutions will also grow. Withmany risks come success stories which provoke other companies to take similarrisks and spend more on these solutions and receive in return more than usingtraditional formats.Global vs. local playersAre the local players present on your local market strong enough to competewith the global giants? What advantages and strategies do they use in thisbattle?Local players are much stronger than global ones because global players cannotcompete with the content that local players are providing. One exceptionof course is Google with its Adwords and display ads. Facebook is becomingstronger in Latvia but the number of Facebook users is still under 120,000 and it Do you CEE? Latvia
    • 134has stopped growing after a rapid increase of users at the beginning of 2010.Also, we do not have a great deal of information about Latvian web users whovisit global portals.Market specificsWhat makes your local online market unique? Are there any specifics that make itdifferent from others in the CEE region?Latvia is one of few countries where the strongest social networking site is notFacebook but draugiem.lv. This makes this particular local market different amongother markets. What has become most important to brands of late is interactionwith its consumers, customers. Draugiem.lv contains many nonstandard featuresavailable which would not be possible in Facebook.In this small market there are fewer than 10 portals, the major players. Thus,the largest part of web media budgets is spent on those portals.Edgars KalniņšBiFri Brand Communication Manager, SIA BITE LatvijaOnline advertising marketWhat are the opportunities and obstacles for the online advertising market onyour local market?The techniques used are extremely blunt so there are a lot of opportunitiesfor innovative solutions but on the other hand most marketers have a limitedunderstanding about online advertising.Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in the future?Companies think more about a return on online investment so tracking andmeasuring ad efficiency should grow accordingly.Global vs. local playersAre the local players present on your local market strong enough to compete withthe global giants? What advantages and strategies do they use in this battle?Local players are still strong but the foundation of their position is the locallanguage. This foundation could quite easily be eroded if the global giants decideto go for it.Do you CEE? Latvia
    • 135Market specificsWhat makes your local online market unique? Are there any specifics that make itdifferent from others in the CEE region?The market is small and also split into two languages.Dmitry GizhdevanMarketing Director, SIA Inbokss (inbox.lv)Online advertising marketWhat are the opportunities and obstacles for the online advertising market on yourlocal market?With one of the highest indices in Eastern Europe (approx. 60%), the onlineadvertising market in Latvia takes only a small part of the total advertising market(11% in 2009). The greatest opportunity and objective for online media in theupcoming years would be to enlarge the role of online advertising in the totalmedia mix on account of traditional and less effective media. The prediction forthe upcoming years is that online advertising will reach up to second place inmedia channels and the greatest part of advertising turnover will be shared by TVand online advertising.Despite a decline in the advertising market in total, at present a tangible increaseis visible in online advertising. Major players have strengthened their positionsin the online advertising market despite the fact that many market players haveimplemented a chaotic, nontransparent and non-predictable sales model, which inturn has had a negative impact not only on the current situation, but also on longterm market development.An essential factor which is impeding the development of the advertising marketis unequal stats data on measuring different advertisement channels. Due to thefact that only two media channels in Latvia, TV and internet, are measured usingmodern digital measure methods, advertisers have a feeling of non-transparencyof the whole advertisement market, which in its turn leads to more careful andslower investment in advertising.Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in the future?Almost all of the global trends have been observed in Latvia, albeit with a smalldelay. They have had little impact on the market since Latvian internet users arerelatively conservative. Only some residents follow the trends. It reflects the Do you CEE? Latvia
    • 136Pareto Principle in that 80% of users do not follow trends whereas 20% of usersdo. 5% of the total number of users are seen to use the possibilities of these newtrends.For example, at present games on social networking sites are developing at anextremely fast rate and the advertisement market has reacted to this by placingadvertisements on such sites. The mentioned advertisement model has not beenable to prove its efficiency yet, however such a trend exists.Using the internet for two-sided communication with the consumer has alsobeen observed. But unfortunately due to the lack of specialists and qualitativelocal stages it is developing slowly. Regardless of this, there are severalsuccessful cases of consumer and brand correlation.Latvian online advertising market players often try to force some trends ontothe market, which might be profitable for them. For example, in late 2009a line of media introduced a CPC payment model for display advertisements,but this trend passed very quickly. One more essential trend, which appearedon the internet from the press was news media overproduction. Several yearsago there was a case on the press market where a large number of news mediawere observed. The same trend is visible now in the internet, but it is also slowlypassing.Various trends are likely to develop rapidly, including third party measuringsystems, which digital departments of media agencies lack at the moment.Global vs. local playersAre the local players present on your local market strong enough to competewith the global giants? What advantages and strategies do they use in thisbattle?Despite the fact that internet penetration in Latvia is great, the Latvian marketis small and not interesting for global players. This situation will continue forseveral more years. It is necessary to point out that this has created a chance forlocal portals to become strong in almost all areas except in searching services.Local portals were able to guarantee users the necessary internet tools, bytaking into account the specifics of local users. Unlike global players, who whenentering a new market have tried to change it to their needs, local playersunderstand their own users much better and are able to provide products bytaking into account user specifics, which in turn is highly evaluated by localusers. This tendency can be seen by analyzing the latest brands (Latvia’s MostLoved Brands http://inx.lv/E0 ). The two most popular local internet media arein 3rd and 4th places in the general brand top list, in turn as local brands theseinternet media came 1st and 2nd. These results show that Latvian users highlyrate local products and this will help when competing with global players.Do you CEE? Latvia
    • 137It is also worth pointing out that most local portals are slightly differenttechnologically from the global players, since local portals switch basicinvestments to product development, which is necessary for local users. Thenumber of services offered by the local players is smaller than that of the globalplayers, however they are suited to local needs due to the fact that local playersunderstand local users much better.Market specificsWhat makes your local online market unique? Are there any specifics that makeit different from others in the CEE region?The Latvian online market is unique with regards to the level of penetration.Thanks to Latvia’s rural regions this continues to grow. Regardless of penetrationproportional results, compared with other countries, the number of users intotal is extremely low because the number of residents is small. Most users areconservative and choose local resources instead of global ones on condition thatsuch an analogous service exists on the local market. In the TOP five Most Lovedbrands there are 3 internet portals of which 1 is global and 2 are local.Unique differences exist also in the online advertising market in total.Unlike many other markets, on the Latvian online advertising market displayadvertisements have a stable position, advertisements in searching servicesmake up a small proportion. In all probability, this is connected with the fact thatusers rely less on advertisements in searching services, and on the other handthere is little pro-active drive in searching services in order to provide this typeof advertisement to their partners. Due to the fact that the market is relativelysmall, investment requires a great deal of effort.Another important factor is bilingualism in Latvia, which distinguishes thecountry from other CEE markets. Most local portals have to deal only with onepart of the audience, the others have to consider language, ethnic and otherpsychographic indexes to maintain two services simultaneously. Do you CEE? Latvia
    • Lithuania 1.48m internet users1. MAINPLAYERS_1391.1. Top10websitesbyreach_1391.2. Top10websitesbyaveragetimespentperuser_1401.3. Topportals_1411.4. Social networks_1421.5. Onlineclassifiedadsbyreach_1431.6. Topfinancesitesbyreach_1442. ONLINEAUDIENCE_1443. TOOLS_1463.1. Browsers_1463.2. Operatingsystems_1473.3. Search engines_1473.4. Screen resolutions_1473.5. Mobiledevices_1484. BRANCHORGANIZATIONS_1485. ADVERTISINGNETWORKS_1506. OPINIONSFROMTHEMARKET_151
    • 139 1. MAIN PLAYERS 1.1. TOP 10 WEBSITES BY REACH WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH USERS VIEWS USER USER 1 delfi.lt portal, news service 1 003 791 102 444 194 102 02:53:59 59% 2 one.lt social network 766 423 677 488 843 884 08:27:00 45% 3 lrytas.lt portal, news service 757 397 57 255 390 76 01:49:00 44% 4 balsas.lt portal, news service 665 740 8 051 562 12 00:16:24 39% 5 draugas.lt social network 609 752 299 279 202 491 04:24:15 36% 6 alfa.lt portal, news service 592 062 16 667 809 28 00:36:52 35% 7 skelbiu.lt classified ads 589 169 58 681 601 100 01:01:42 34% 8 plius.lt classified ads 561 033 68 780 425 123 01:40:21 33% 9 15min.lt portal, news service 548 557 17 871 519 33 01:07:47 32% 10 zebra.lt portal, news service 496 880 14 820 800 30 00:32:27 29% Table 1 Top 10 websites in Lithuania by reach level (gemiusAudience, March 2010)Portals and news services maintain online audience. In March 2009the leadership in the top 10 reach it had a reach level of 34%, whereasranking. The most popular service in March 2010 this amounted to 36%.among websites participating in In terms of average time spent perthe research in Lithuania is delfi.lt, visitor the leader is one.lt with 8 hoursa well-known horizontal portal, with 27 minutes, but the tendency ismore than 1 million real users and decreasing; in March 2009 the averagea reach level of almost 59%. In the visitor spent over 11 hours and 46previous year, the portal launched minutes on the site.the subdomains auto.delfi.lt,dedicated to auto news and classified With a reach of over 30% the 7thads, and myep.delfi.lt providing news and 8th positions belong to classifiedon the European Parliament. Other ads portals skelbiu.lt and plius.lt. Inpopular news services are lrytas.lt, January 2009 plius.lt came in 4th placebalsas.lt and alfa.lt. in the ranking, but in March 2009 its reach began to fall dramatically and inThe runner-up in the top 10 websites May 2009 it was overtaken by skelbiu.lt.list is one.lt, a social networking site Although it made some attempts towith a reach of 45%. However, in regain its former position, for examplecomparison to 2009 its number of by updating its design in Novemberreal users decreased by around 177 2009 and adding new functionalitiesthousand. In turn, draugas.lt, also a as per users’ wishes, it did not managesocial networking service, extended its to achieve its former reach level. Do you CEE? Lithuania
    • 140The top 10 websites list is propped higher. If the trend continues, it willup by two horizontal portals 15min.lt probably overtake the classified adsand zebra.lt. The first noted a sudden sites (plius.lt) in the ranking.growth; in February it had a reachlevel of 26% and in March this wasalready over 6 percentage points 1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH REAL USERS USER PER USER 1 one.lt 766 423 884 08:27:00 45% 2 draugas.lt 609 752 491 04:24:15 36% 3 pazintysxxx.lt (erotic) 43 650 304 03:43:47 3% 4 starchat.lt 7 577 231 03:09:26 0.44% 5 mail.ru 212 063 122 03:05:55 12% 6 inbox.lt 73 285 120 02:55:46 4% 7 delfi.lt 1 003 791 102 02:53:59 59% 8 ieskok.lt 118 934 151 02:31:11 7% 9 supermama.lt 375 877 95 02:12:45 22% 10 autogidas.lt 411 933 148 01:54:06 24% Table 2 Top 10 websites in Lithuania by average time spent per user (gemiusAudience, March 2010)The top four places in the top 10 average of more than 3 hours on thewebsites by average time spent per website monthly. The site even runsuser are occupied by social networking on its own ranking of its most devotedwebsites. Their domination is no users, and some of them spent moresurprise. People tend to spend than 15 hours online a day. In 8thlong hours socializing with their place, with 2 hours 31 minutes,acquaintances online. One.lt is the we find another social networkingmost popular social networking website, ieskok.lt.website in Lithuania with a reach levelof 45%. On average its users spent 5th place belongs to mail.ru,8 hours 27 minutes a month using the a Russian horizontal portal, which hasservice, while the users of draugas.lt, a reach level of 12%. Its popularitywhich ranks second, spent 4 hours and is influenced by the considerable24 minutes. Pazintysxxx.lt, a service Russian minority in Lithuania. Inbox.with an erotic profile came in 3rd lt, a mailing service, ranks sixth andplace. Fourth place is occupied by has over 70,000 real users who spentstarchat.lt. Although its reach level an average of almost 3 hours using theis less than 0.5%, its users spent an service a month.Do you CEE? Lithuania
    • 141The most popular news service in The last place is taken by supermama.lt,Lithuania, delfi.lt, takes 7th place in a portal dedicated to parents, withthe ranking. In March 2010 its users an average time per user of 2 hoursspent an average of 2 hours and 54 13 minutes a month. The ranking isminutes online. This means that every propped up by a classified ads portalday users spent around 10 minutes autogidas.lt.reading the news here. 1.3. TOP PORTALS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 delfi.lt 1 003 791 102 02:53:59 59% 2 lrytas.lt 757 397 76 01:49:00 44% 3 balsas.lt 665 740 12 00:16:24 39% 4 alfa.lt 592 062 28 00:36:52 35% 5 15min.lt 548 557 33 01:07:47 32% Table 3 Top 5 portals in Lithuania by reach level (gemiusAudience March 2010)The top 5 portals on the Lithuanian Lithuanian newspaper “Lietuvos rytas”online market also occupy the leading and it concentrates mostly on news.positions in the general rankings (all of However, it also contains subdomainsthem belong to the top 10 websites). with a forum, photo section, blogThe indisputable leader is delfi.lt service, a traditional TV channel,which leads not only in terms of the a magazine about lifestyle andnumber of real users, but also in terms weather forecasts. In March 2010of the average time spent online by its reach level amounted to 44%.each user. The portal provides the In August 2009 “Snoras Medialatest news and in addition contains Investicijos” acquired 34% of “UABa blog, chat and webmail service Lietuvos rytas” authorized capitalas well as information related to and in this way the AB BANK SNORASentertainment and lifestyle. Moreover, group became its largest shareholder.it has a channel for young people withgames and a forum. As mentioned in Another important player amongthe previous section, delfi.lt launched portals is balsas.lt. It gained almosttwo new subdomains dedicated to the 11 percentage points in reach levelEuropean Parliament and cars. “Delfi” compared to March 2009 andportals are available in five languages: progressed to 3rd place in the topLithuanian, Russian, Latvian, Estonian 5 list. The portal is a typical newsand Ukrainian. publishing site with diversified subdomains similar to those availableThe second player in the category is on the portals described above. Therelrytas.lt, which is the site of the daily are also special sections for women Do you CEE? Lithuania
    • 142which include recipes, parental advice, In 5th place is 15min.lt, a horizontalgreetings and lyrics. portal of quickly growing popularity in Lithuania. It is a result of the well-Alfa.lt ranks fourth in the top 5 portals planned marketing strategy withranking. However, its number of real regard to the use of social networkingusers decreased in comparison to sites such as Facebook. In terms ofMarch 2009 by 9.5% and its reach average time spent per user, 15min.level dropped by 4 percentage points. lt is located in third place; the sameIn addition to the facilities typical for applies when it comes to number ofsuch portals, it contains a travel search page views and page views per userengine and reservation section and, according to gemiusAudience datafurthermore, it has its own computers from March 2010.and domestic electric appliancese-shop. Moreover, its main news isavailable not only in Lithuanian, butalso in English. 1.4. SOCIAL NETWORKS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USERS USER 1 one.lt 766 423 884 08:27:00 45% 2 draugas.lt 609 752 491 04:24:15 36% 3 klase.lt 293 415 29 00:21:04 17% 4 pazintys.lt 120 924 86 01:08:28 7% 5 ieskok.lt 118 934 151 02:31:11 7% Table 4 Top 5 social networking websites in Lithuania by reach level (gemiusAudience, March 2010)In terms of social networking people to express themselves and staycommunities, two domestic websites in touch with both their real-life anddominate among services participating virtual friends. In order to gain accessin the gemiusAudience research. to communication tools, exchangeThe leader is one. lt with a reach photos and files and participate inlevel of 45%. However, as mentioned contests and games, users have tobefore, its market share is declining. register on the website. Moreover,Meanwhile, the number of real the platform offers some non-typicalusers of the second largest social networking solutions, for example annetworking website, draugas.lt, soared SMS service.in comparison to March 2009. The transparent layout of draugas.ltOne.lt is dedicated to internet users allows the user to identify the fiveolder than 14 years old. It offers a main sub-sites immediately. Tovariety of social features enabling describe the two of them, one isDo you CEE? Lithuania
    • 143dedicated to maintaining contact ieskok. lt. Similarly to the previouslywith acquaintances. It allows the described social networks, these alsouser to search for classmates, group allow their users to search for friends,mates and the suchlike. The second chat and play games. In addition,subdomain is devoted to games. What ieskok.lt has a section in which usersis more, there is a forum, an e-mail can listen to an online radio station.and classified ads service. This may explain the fact that in terms of average time spent online, ieskok.ltAnother important player is klase.lt, overtakes klase.lt and pazintys.lt.though its reach level is significantlysmaller and accounts for only 17%. Pazintys.lt provides its users withIt has a complex structure consisting information about entertainment andof five main subsections: classmates, events and has a hot line for instantgroup mates, clubs, sites and massages. The site is available in fouracquaintances. In comparison to the languages: Russian, Lithuanian, Englishdata from March 2009, the number and Italian. Moreover, the companyof real users and the number of page owns the independent serviceviews of this website declined as did pazintysxxx.lt, which has an eroticthe average time spent per user. profile.Amongst services with the highestreach level we also find pazintys.lt and 1.5. ONLINE CLASSIFIED ADS BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 skelbiu.lt 589 169 100 01:01:42 34% 2 plius.lt 561 033 123 01:40:21 33% 3 skelbimai.lt 376 677 21 00:13:37 22% Table 5 Top 3 online classified ads in Lithuania by reach level (gemiusAudience, March 2010)The two main players on the classified offers. Skelbiu.lt makes money throughads market are skelbiu.lt, with a reach selling advertising space, but also itslevel of 34%, and plius.lt with 33%. A users have to pay for the publicationyear ago, in March 2009, the leader of ads.was plius.lt reaching over 41% ofthe market. However, since then its Third place goes to skelbimai.lt, withpopularity has declined and in March a reach level of 22%, which in turn2010 it is in second place between the allows its users to place ads on the siteclassifieds. In May 2009 skelbiu.lt took free of charge.the lead. It is a site of classified adsthat are grouped, amongst others, intotransport, real estate, services and job Do you CEE? Lithuania
    • 144 1.6. TOP BUSINESS AND FINANCE SITES BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 vz.lt 227 057 15 00:19:41 13% 2 tax.lt 164 995 13 00:17:22 10% 3 verslobanga.lt 91 268 3 00:03:41 5% Table 6 Top 3 business and finance sites in Lithuania by reach level (gemiusAudience, March 2010)The most popular finance site in legal acts, forms and other usefulLithuania is vz.lt. It publishes business pieces of information for accountants.news and articles as it is an e-version There is also a possibility to order theof a business newspaper. It has weekly delivery of news articles or toseparate subdomains dedicated to use a system for invoice issuance andsearching for articles and photos as management on the internet.well as an e-shop, where users canorder the newspaper or buy articles, The third significant player on therecommendations, dictionaries, books, business sites market in Lithuania isetc. Vz.lt has a reach level of 13% and verslobanga.lt, which presents newsthe average time per user is less than about companies and information20 minutes a month. about events related to accountancy, business or finance. It allows its usersTax.lt, which ranked second with to publish their own informationa 10% reach, is dedicated to about events or create any documentsaccountancy. In addition to a forum, it related to various fields of business,gives its users the possibility to search available to a broader audience. Itsfor or place job ads on the site related reach level amounted to 5% in Marchto accounting. Moreover, it presents 2010. 2. ONLINE AUDIENCE Majority of Lithuanian internet Lithuanian internet users areusers are women. They constitute generally young. In March 201051% of the online population, which people aged 7-34 accounted for 62%is not a surprise taking into account of the online population. The highestthe demographic structure of the percentage of users (28%) falls in theLithuanian population with women group of people aged 15-24. Peoplepredominating. Furthermore, women over 55 years old constitute 7% ofon average spent more time online (13 internet audience.hours 39 minutes) than men (13 hours01 minute).Do you CEE? Lithuania
    • 146 Lithuanian internet users are In March 2010 the mostwell-educated. Only 17% of them numerous group (33%) on thehave only primary or lower education. Lithuanian internet included students.The greatest percentage of the online The second force were specialistspopulation has secondary education, and office employees, however theyi.e. 28%. There is also a significant did not spend a great deal of timenumber of people with higher online. In terms of activity per user,education that use the web (26%). the unquestionable leaders wereThe structure conforms to the general housewives, who spent an averageeducation structure of Lithuanian of more than 19 hours online asociety. month. Another active group is small businessmen. In March 2010 they only Majority of internet users in accounted for 4% of the researchedLithuania live in large cities. 26% of internet audience, however, duringthe whole internet population live in the same period each of them spentVilnius and in March 2010 the 7 largest 16 hours surfing the web.cities together constituted 65% ofthe online population. Only 10% ofinternet users live in villages, but thisis 1 percentage point more than a yearago. 3. TOOLS 3.1. BROWSERSChart 1 Top browsers in Lithuania by share of page views generated by internet users who visit Lithu-anian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)3.1. Browsers it was overtaken by Firefox with a market share of 42%. The third mostThe most popular browser in Lithuania popular browser is Opera followed byused to be Microsoft Internet Explorer. Chrome, whose popularity has beenHowever, at the beginning of 2010 growing since the second quarter ofDo you CEE? Lithuania
    • 1472009. According to the gemiusTrafficstudy, during the first three months 3.2. OPERATING SYSTEMSof 2010 Chrome gained 2 percentagepoints and the trend seems to becontinuing.3.2. Operating systemsThe indisputable leader of theoperating systems market in Lithuaniawas Windows XP with a 76% share inthe first quarter of 2010. However,its popularity has been decreasingsince the introduction of Windows Chart 2 Top operating systems in Lithuania by share of page views generated by internet users who visit Lithuanian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)Vista. In the second quarter of 2009MS Windows released its newestoperating system, Windows 7. Sincethen it has been gaining an ever largershare of the market and is catchingup with Windows Vista. After the first 3.3. SEARCH ENGINESquarter of 2010 its market share was10%. The other Windows operatingsystems have lost users during thepast two years.Mac OS X is slowly gaining popularity,but still it only covers less than 1% ofthe market.3.3. Search engines Chart 3 Top search engines in Lithuania by share of visits made by internet users who visit LithuanianWithout question, the most popular websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)search engine in Lithuania was Googlewith a market share of 98% in thefirst quarter of 2010. MSN, whichranked second, contributed to only1% of visits made by internet users 3.4. SCREEN RESOLUTIONSwho visit Lithuanian websites usinggemiusTraffic.3.4. Screen resolutionsAlthough the market share of 1024 x768 monitor screen resolutions hasdecreased, it is still the most popularchoice among Lithuanians. Otherpopular screen resolutions in Lithuaniain the first quarter of 2010 were 1280x 800 and 1280 x 1024. Also, thescreen resolution of 1440 x 900 has Chart 4 Screen resolutions in Lithuania by share of page views generated by internet users who visitbecome more popular in recent years. Lithuanian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010) Do you CEE? Lithuania
    • 148 3.5. MOBILE DEVICESChart 5 Top 5 mobile devices in Lithuania by the website-averaged percentage share of page viewsgenerated by internet users from Lithuania who visit Lithuanian websites using gemiusTraffic(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10**to 2010-07-253.5. Mobile devices - models within May and July 2010. In contrast, the share of Apple’s latest productAccording to the gemiusTraffic study, the iPad has increased by almost 2the most popular mobile device percentage points within these twoused to access web in Lithuania months. The three last positionsis the iPhone, which in July was among the top 5 mobile devices onresponsible for 14% of page views the Lithuanian market are taken bygenerated by mobile devices on the Nokia devices, including the Nokiaaverage website. However, like on 5130 XpressMusic which is the mostother markets its share is gradually popular.decreasing and a loss of almost 2.5percentage points could be observed 4. BRANCH ORGANIZATIONSAssociation of Lithuanian have established the “LithuanianCommunication Agencies (KOMAA) Advertising Bureau”. KOMAA’s mission is to unite advertising agencies,www.komaa.lt develop the advertising market, raise the prestige of the industry andDescription: KOMAA brings together make decisions which are of practicalthe largest and strongest creative significance to the advertising market.media agencies and full service KOMAA was established in 2002 andcompanies operating in Lithuania. now has 21 members.Members of the association acceptthe Lithuanian Advertising Ethics Members: creative agencies (AdellCode, follow its provisions and Taivas Ogilvy, ADVISION, DDB Vilnius,Do you CEE? Lithuania
    • 149Grey Worldwide: Vilnius, Kredo R, Leo Members: The eight largest newsBurnett Vilnius, Lowe Age, Milk, Not portals in Lithuania are Alfa.lt, Delfi.lt,Perfect Y&R, SAN Vilnius/JWT, TBWA Bernardinai.lt, 15min.lt, Balsas.lt, Lrt.lt,Vilnius), full services agencies (Tarela, Lrytas.lt, portal group ofVRS grupė) and media agencies “Diena Media” (vilniausdiena.lt,(Adcom, Carat, Creative Media kaunodiena.lt, klaipeda.diena.lt).Services, Media House, Mediapool,Mindshare, Omnicom Media Group,Starcom). Lithuanian Marketing Association (LiMA)Lithuanian Advertising Bureau www.marketingas.orgwww.reklamosbiuras.lt Description: The Lithuanian Marketing Association unites marketingDescription: The Lithuanian specialists and people interested inAdvertising Bureau’s mission is to this field. It provides the possibilitydevelop respectable, fair and honest for marketing specialists to exchangeadvertising practices in Lithuania, knowledge and practical experiencebasing on the Lithuanian Advertising and in this way to augment theirEthics Code. The goal is to develop value on the market and also to raisethe advertising sector in Lithuania, the general worth of the Lithuanianto create and improve legally-binding market. It aims to unite Lithuanianethical self-regulation control in marketing specialists, create spaceadvertising, honest competition, and possibilities for their professionalwhich ensures the protection of improvement, to raise theirusers and helps improve the general professional abilities and knowledge,concern of society directed against popularize and represent thethe negative influence of advertising. marketing profession in society, andThe Lithuanian Advertising Bureau was contribute to the welfare of societyestablished in 2005. using professional knowledge. The association was established in 2004.Members: the arbitrage committeeincludes representatives of various Members: The association bringsfields: advertisers, advertising together natural and legal entities.agencies, TV, press, consumer rights At present, more than 200 marketingprotection, competition, equal specialists in various areas belong toopportunities, child rights protection. the association.Association of Internet Media Association “LĮA” (“Langas į ateitį”), also called Alliance “Langas į ateitį”Description: The aim of the (Window into the Future)Association of Internet Media is toensure the ethical and professional www.langasiateiti.ltwork of internet media. It alsowants to guarantee readers ethical Description: This alliance establishedexpression of opinion in news portals. a unique project aimed at businessesThe Association of Internet Media supporting the development of thewas established in April 2009 by information society in Lithuania.Lithuanian’s largest eight news portals. The mission of the “Langas į ateitį” Do you CEE? Lithuania
    • 150alliance is to promote the use of partners: Microsoft Lietuva, Lideika,internet and e-Services in Lithuania Petrauskas, Valiūnas ir partneriai/and thereby stimulate the growth of LAWIN, PR Service/Edelman Affiliate,living standards as well as Lithuania’s the Institute of Public Policy andcompetitiveness within Europe and Management.other countries of the world. “Langasį ateitį” implements projects in threemain fields:• Establishment of public internet access points (PIAPs)• Training of the population to use information technologies• Encouragement to develop and use e-servicesIt was established in May 2002.Members: The founders and membersof the alliance are as follows: thecommunications companies “Omnitel”and “TEO” (2002-2005), “Swedbank”and “SEB” banks, the IT companies“Alna” (2002-2009) and “Atea”. As wellas the founders of the alliance andthe Ministry of the Interior of theRepublic of Lithuania, “Langas į ateitį”integrates the following companies as 5. ADVERTISING NETWORKS GENERAL CONTACT INFORMATION FULL NAME HOMEPAGE URL MAIN OFFICE CONTACT ADDRESS ADDRESS UAB ”Adnet” Phone: +370-5-273-00-65 Verkių str. 5 1 AdClick adclick.lt Fax: +370-5-273-00-65 LT-08218 Vilnius Email: info@adclick.lt Lithuania UAB ”Adnet” Phone: +370-5-275-37-74 Verkių str. 5 2 Adnet adnet.lt Fax: +370-5-275-66-50 LT-08218 Vilnius Email: info@adnet.lt Lithuania UAB ”Textads” Phone: +370-5-273-00-65 Verkių str. 5 3 Textads textads.lt Fax: +370-5-273-00-65 LT-08218 Vilnius Email: info@textads.lt Lithuania UAB ”TradeDoubler” Phone: +370-5-236-01-76 Verkių str. 34 4 TradeDoubler tradedoubler.lt Fax: +370-5-278-47-64 LT-08221 Vilnius Email: info.lt@tradedoubler.com LithuaniaDo you CEE? Lithuania
    • 151 6. OPINIONS FROM THE MARKETEgidijus SirvydisDirector, UAB “Adnet”Online advertising marketWhat are the opportunities and obstacles for the online advertising market onyour local market?Every year online advertising is used more frequently as a media tool.However, according to budgets (in %), this media tool did not reach the levelof Western Europe, or even the level of our close neighbors such as Polandand Estonia. Therefore, the use of online advertising will certainly grow duringthe upcoming years.The main disadvantage of the whole Lithuanian advertising market, as wellas the online advertising market is that the market is extremely small. Theprice of creating more interesting solutions is similar to the one in other largermarkets, but a much smaller audience can be reached with the usage of thesesolutions.Another important issue on the Lithuanian market is its low conversion rate,i. e. a small ratio of the people having seen an advertisement or having visiteda site to find out something about goods, comparing to those people, whohave actually bought any product or service. However, the increasing numberof companies working in the e-commerce field and the rising popularity ofonline payments should cause an increase in the conversion rate. This wouldallow the participants of the online advertising market to achieve a betterresponse and obtain maximum benefits from advertising.Dominating trendsWhat are the recent trends on your local online market? What areas areexpected to develop most in the future?Lots of small, specialized and even niche e-shops selling various goodsfrom ecological products to equipment for agriculture have appeared onthe market. However, many of them do not have support from investors,therefore such projects often do not have money for advertising, they cannotadvertise themselves to a wider audience and after half a year of activity theysimply disappear quietly. However, there are many successful examples wherecompanies slowly become more popular and then find opportunities to investin advertising and expand their business successfully. Therefore, looking to thefuture, the number of such small clients will grow and they will have a greaterimpact on the online advertising market in Lithuania. Do you CEE? Lithuania
    • 152Global vs. local playersAre the local players present on your local market strong enough to compete withthe global giants? What advantages and strategies do they use in this battle?The Lithuanian market and all three Baltic markets are too small for the globalplayers, therefore only some of them expressly develop their activity in thesecountries. In most cases it comes naturally due to the worldwide popularityof these players. One of the most important examples could be the duel ofone.lt and facebook.com. Facebook manages to attract an increasing numberof visitors without any specific strategies for the local market, while theLithuania’s most popular social network one.lt is unable to stop the decreasein the number of users. However, even whilst being one of the most popularwebpages facebook.com does not actively participate in the advertisingmarket in Lithuania and has no significant effect on it. This often happenswith other international websites. Despite being popular, they are not activelyinvolved in the Lithuanian online advertising market. This explains why,despite difficulties in fighting for the loyalty of users, there is no need for localplayers to struggle with global giants for advertising budgets as of yet.Market specificsWhat makes your local online market unique? Are there any specifics thatmake it different from others in the CEE region?The technical solutions and possibilities of the Lithuanian advertising marketare very similar to other European markets. Both clients and websites usetechnology that is popular in Europe, implement specific solutions developedall over the world, and create them in Lithuania (e.g. broadcasting videoadvertisements online, etc.).One of the unique features of the Lithuanian online advertising market is thatthe discount rate has a strong influence on the market. However, it is possiblethat the increasing number of advertisers on the internet and the shortage ofhigh-quality online advertising space will reduce the influence of discounts.It should also be mentioned that affiliate marketing has not become popularin Lithuania yet. One reason for this might be the above-mentioned lowconversion rate. However, it is hard to say whether affiliate marketing willtake a more significant chunk of online advertising marketing in such a smallmarket like Lithuania, even if the situation gets better.Ričardas BaltaduonisManaging Director, UAB “Lrytas”Online advertising marketWhat are the opportunities and obstacles for the online advertising market onyour local market?Do you CEE? Lithuania
    • 153Last year was difficult for everyone. The internet as a media tool is notfully developed yet and this especially reflected in the massive decrease ofadvertising budgets in 2009.When customers reduced their advertising budgets, the position and reactionof online advertising market players were clear: more advertisements weredisplayed, but less money was made. So why should customers spend moremoney if they receive the same and can plan smaller budgets?Dominating trendsWhat are the recent trends on your local online market? What areas areexpected to develop most in the future?At this point it is important to distinguish two aspects: trend of websitepopularity distribution and the trend of technological innovations. Withregard to the first, a very clear downward trend of one of the most popularsocial networking sites is obvious. This trend shows, once again (the first beingMySpace), that social networking sites do not have a strong niche amongusers, therefore their future does not seem to be rosy and bright.In terms of technological innovations, mobile compatibility will be at theforefrontGlobal vs. local playersAre the local players present on your local market strong enough to competewith the global giants? What advantages and strategies do they use in thisbattle?Local portals/networks/websites will NEVER be able to compete with theglobal giants. You cannot compare a fly to an elephant. It is unfortunate, butthe local players have no chance in competition with the global players. Onlyso called ‘niche’ activities remain. Any thoughts of becoming another Google,Apple or Facebook is simply impossible here in our local and small countries.This is determined both by the size of this market and other factors, such asthe financing of projects and domestic consumption.Elvijus GudžiūnasDirector, UAB “Epasas.lt“Online advertising marketWhat are the opportunities and obstacles for the online advertising market onyour local market?With regards to technical possibilities websites have their own programmerteams that can seemingly resolve any solution. Due to the small market(population rather than internet usage percent) the costs of production Do you CEE? Lithuania
    • 154and implementation often use up large part of the advertising budget andan alternative plan (based on more standard positions) can generate betterresults in advertising campaign.Dominating trendsWhat are the recent trends on your local online market? What areas areexpected to develop most in the future?The concentration is noticeable on the online market; there are almost nosmall participants left on the market and the ones that remain have a minorinfluence.Both now and in the future, solving quantitative issues (concentration,procurement of competitors, purchase of cheap advertising), leads to agreater concentration of qualitative factors (the improvement of contentquality, attempts to transfer self advertising projects to press and TV). Whenthe market settles down, it is possible to entrench niche e-projects. However,there might be more competition which will allow the quality of niche projectsto rise. Similar processes exist in online advertising; concentration is underway. Customers have a wider choice among the larger market players; thismakes things more convenient and it is then possible to get a better pricesand better offers. The demand for rich media formats is noticeable on themarket.Global vs. local playersAre the local players present on your local market strong enough to competewith the global giants? What advantages and strategies do they use in thisbattle?Quality has not fallen, but local online business is not moving to foreignbusiness because:1. There are no large turnovers that might allow players to obtain a large return on their investments2. Larger local investment companies in the meantime:a) make a greater profit investing in other business areasb) do not have a lot of knowledge about the internet, therefore there is no great willingness to invest.Do you CEE? Lithuania
    • Poland15.55minternet users 1. MAINPLAYERS_157 1.1. Top10websitesbyreach_157 1.2. Top10websitesbyaveragetimespentperuser_158 1.3. Topportals_159 1.4. Social networks_161 1.5. Onlineclassifiedadsbyreach_162 1.6. Topfinancesitesbyreach_163 2. ONLINEAUDIENCE_164 3. TOOLS_166 3.1. Browsers_166 3.2. Operatingsystems_166 3.3. Search engines_167 3.4. Screen resolutions_167 3.5. Mobiledevices_167 4. BRANCHORGANIZATIONS_168 5. OPINIONSFROMTHEMARKET_169
    • 157 1. MAIN PLAYERS 1.1. TOP 10 WEBSITES BY REACH WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH USERS VIEWS USER USER 1 google.pl search engine 15 705 994 - - - 89% 2 onet.pl horizontal portal 12 364 940 3 416 046 567 276 05:51:42 70% 3 nasza-klasa.pl social network 11 810 889 - - - 67% 4 google.com search engine 11 451 490 - - - 65% 5 allegro.pl online auctions 10 831 038 5 198 862 613 480 04:51:33 61% 6 wp.pl horizontal portal 10 562 824 2 075 853 411 197 05:57:19 60% 7 youtube.com video sharing 10 442 867 - - - 59% 8 wikipedia.org online encyclopaedia 8 940 820 - - - 50% 9 interia.pl horizontal portal 8 341 410 916 745 046 110 03:02:10 47% 10 gazeta.pl horizontal portal 8 266 006 359 047 189 43 01:03:58 47% Table 1 Top 10 websites in Poland by reach level (Megapanel PBI/Gemius, March 2010 ); the ranking includes both, audited and non-audited websites: for non-audited websites, page views and time are not shownThe year 2009 was a time of many by their reach in March 2010 includessignificant changes within the ranking only selected domains, not the wholeof top 10 online players in Poland. groups of sites operating under theThe three leading positions, similarly wings of horizontal portals or onlineto last year, are taken by the same publishers. In conjunction with thisstrongest brands: Google, Onet.pl and change, the greatest loss has beennk (Nasza-Klasa). These three websites suffered by O2, a local portal. Withinhave not only maintained their market the ranking by reach for March 2010,shares, but also strengthened their the o2.pl domain did not find itsreach, respectively: google.pl from place among the top 10 websites. O283% to 89% (in case of google.com it gained a little more than 4.7 millionwas from 58% to 65%), onet.pl from real users, which gave it less than 27%62% to 70% and nasza-klasa.pl, the reach among internet users in Poland.star of last season, from 59% to 67%. The second loss has been noted by one of the leading horizontal portals,On the other hand, some players did Gazeta.pl, whose reach dropped bynot manage to stay on the course. It is 3 percentage points within last year.extremely important to note, however, Fortunately, the loss is only a result ofthat the most visible shifts within a general shake-up of market leaders.the presented ranking of websites Gazeta.pl achieved a reach of 47% andfor Poland are caused by the update attracted almost 8.3 millions of realof the Megapanel PBI/Gemius study users. Yet, it is clear to see that thismethodology. The ranking of websites result was not enough to retain its Do you CEE? Poland
    • 158former position. A similar loss has also ranking of the top 10 websites on thebeen experienced by another local market. What is most important is thatportal, interia.pl, which attracted this online auction platform overtook8.3 million real users in March 2010. Wirtualna Polska (wp.pl), one of the leading horizontal portals in Poland.The spring of 2010 and theimprovement of the online audience When it comes to important increasesresearch methodology also brought within the ranking of top players,upward trends for almost every site. at the beginning of 2010 only fewOne of the most significant ones is the other visible movements took place.rise of allegro.pl, the biggest online YouTube, gaining over 10 million realauction platform in Poland. Allegro.pl users and 59% reach, took 7th placeis also a player active on 10 other in the ranking. A noncommercialEuropean markets. This group of website, Wikipedia, attracted almostcountries (at the beginning of 2009 9 million Poles and gained 50% reachconsisting of Belarus, Bulgaria, the in March.Czech Republic, Kazakhstan, Russia,Romania, Slovakia, Ukraine andHungary) increased recently, whenAllegro launched its well-known onlineservice in Serbia. Yet, the successof Allegro in Poland remains mostsignificant. In March 2010, allegro.plwas visited by almost 11 million realusers in this country, which gave it61% reach and 5th place within the 1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH REAL USERS USER PER USER 1 miastomuzyki.pl 647 432 17 13:15:21 4% 2 kurnik.pl 1 040 024 156 11:50:09 6% 3 wp.pl 10 562 824 197 05:57:19 60% 4 onet.pl 12 364 940 276 05:51:42 70% 5 prisonwars.pl 249 712 1096 05:51:23 1% 6 stooq.pl 91 000 178 05:40:07 1% 7 fotka.pl 1 950 443 523 05:05:25 11% 8 allegro.pl 10 831 038 480 04:51:33 61% 9 radiozet.pl 416 989 12 04:42:01 2% 10 open.fm 339 995 8 04:18:55 2% Table 2 Top 10 websites in Poland by average time spent per user (Megapanel PBI/Gemius, March 2010); the ranking includes audited websites onlyDo you CEE? Poland
    • 159The general picture of Polish online GmbH. The 9th and 10th positionsmarket leaders becomes different in the ranking were also occupied byif the variable of time is taken into radio-related websites, respectively:account. It appears that in this radiozet.pl (homepage of one of thecategory the strongest horizontal most popular offline radio stations)portal is wp.pl, which in March 2010 and open.fm (an online radio platformkept its users active for the longest run by GG Network, owner of the mosttime (almost 6 hours). In the ranking popular instant messaging system inof top 10 websites by average time Poland). Users of both websites spentspent per user in Poland, there are more than 4 hours in the analyzedtwo visible leaders: miastomuzyki.pl, month surfing each of them.a website gathering online RMF FMradio stations as well as kurnik.pl, the On the other hand, the ranking alsocasual games platform. In March 2010 covers two representatives of theaverage visitor of the latter website online gaming industry. In March 2010,spent almost 12 hours playing board not including kurnik.pl, Poles spentand card games with other internet almost 6 hours playing Prison Wars,users. All other websites included an MMO game which is similar theme-in the ranking (even such a player as wise to the Prison Break TV series.wp.pl) were visited by Poles for nolonger than 6 hours. Excluding portals, games and online radio stations, the websites whichThe radio and gaming websites won engaged Polish users the most inmost of user time. The number one March were also the stock marketin March 2010 in this regard was vertical portal, stooq.pl, the socialmiastomuzyki.pl, the website of networking service based on theall the online radio stations run by ‘hot or not’ formula, fotka.pl andRMF FM which operates within the the biggest online auction platform,Interia Group. Both RMF FM (one of allegro.pl.the most popular traditional radiostations in Poland) and interia.pl (oneof the major horizontal portals) havethe same owner, Bauer Media Invest 1.3. TOP PORTALS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 onet.pl 12 364 940 276 05:51:42 70% 2 wp.pl 10 562 824 197 05:57:19 60% 3 interia.pl 8 341 410 110 03:02:10 47% 4 gazeta.pl 8 266 006 43 01:03:58 47% 5 o2.pl 4 755 575 63 01:33:13 27% Table 3 Top 5 portals in Poland by reach level (Megapanel PBI/Gemius, March 2010); all websites presented in the table are audited Do you CEE? Poland
    • 160The leader among horizontal portals (email) was launched. In 2000, thein Poland is onet.pl, which is also the basic version of the portal, coveringsecond player on the whole domestic six sections, was introduced and afteronline market. It operates within the gaining significant popularity, it hasTVN Capital Group (one of the biggest never been outside the top 5 marketmultimedia players in Poland), which leaders in its category.is incidentally its sole owner. Onet.plis also part of the ITI Media Group However, it would be quite inaccurateand an active player, which (as well to think that the ranking of topas the portal) runs other interesting horizontal portals has not changedbusiness projects, for example zumi.pl at all since last year. An interesting(a map-based localization online shift took place in the group of portalsservice) or Dream Lab (a technological closing the peloton. This is also relatedcompany). to the update in the way of presenting results of the Megapanel PBI/Gemius,The second force on the Polish online thanks to which horizontal portalsmarket is Wirtualna Polska (wp.pl), began to be presented not only asthe horizontal portal operating within whole groups of websites, but as thethe Telekomunikacja Polska Group precise domains of particular players.(the main landline telephone operator This change caused the significantand former monopolist). This business decline of O2 in favour of gazeta.pl,group also covers such companies as which took fourth position withinPolska Telefonia Komórkowa Centertel the ranking of top portals in Poland.(the mobile phone network, which O2 uses a specific business modelsince 2005 has been operating under building its audience partly based onthe Orange brand) or PayTel (an its network of proprietary or partnerelectronic payment system provider). websites, for example wrzuta.plMoreover, Wirtualna Polska runs (the audio-video hosting service).a successful online TV website (wp.tv), In March 2010 however, the O2which in March 2010 gained over 2.5 portal attracted less than 5 millionsmillion real users and a reach of over real users, which gave it a reach of14%. Within the ranking by time per only 27% and 5th position withinuser it takes the position of the most the ranking of horizontal portals.engaging horizontal portal presenton the market (in the same period oftime its average user surfed longer by5 minutes than the average user ofonet.pl).The general balance of power amongthe top 3 horizontal portals in Polanddid not change a great deal since thebeginning of 2009. Third position,as before, is occupied by interia.pl,a horizontal portal run by thejoint-stock company, INTERIA.PL S.A.owned entirely by the Bauer MediaGroup. Although launched in 2000,the company’s origins date back to theyear 1999 when its first online serviceDo you CEE? Poland
    • 161 1.4. SOCIAL NETWORKS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 nasza-klasa.pl 11 810 889 - - 67% 2 facebook.com 5 052 697 - - 29% 3 chomikuj.pl 4 116 695 34 00:46:25 23% 4 mojageneracja.pl 2 586 719 12 00:35:45 15% 5 fotka.pl 1 950 443 523 05:05:25 11% Table 4 Top 5 social networking websites in Poland by reach level (Megapanel PBI/Gemius, March 2010); the ranking includes both, audited and non-audited websites: for non-audited websites, page views and time are not shownThe Polish online social networking at this point, such a possibility seemsservices market remains dominated by unlikely.one, very strong player: nasza-klasa.pl.The “Do You CEE” report for 2009 Third position in the ranking of socialdescribes the incredibly fast growth networking platforms in Poland isof this website, which has conquered taken by chomikuj.pl. This service,the local market not only effectively, operating within the Interia Group,but also, apparently, permanently. In is another newcomer in the ranking,March 2010, Nasza-Klasa, an online but not because it has just appearedservice based on the ’classmates’ on the market. Chomikuj.pl enteredformula, was visited by almost 12 the group of top social networkingmillion real users. This result gave it sites in Poland due to two facts. Thea reach of 67% and the position of first is that it has almost doubled itsunquestionable market leader, far reach among Polish internet usersahead of its competitors. since March 2009 (from almost 13% to 23%). The second fact is that thisHowever, 2009 was the year of the website evolved from a typical file-emergence of another very serious sharing service (which it is often stillplayer, Facebook. The growth of the identified with) towards a particularlargest and best known global social kind of social networking service.networking brand in Poland was not so The position of Chomikuj within thespectacular, however during the last ranking of top social networking15 months, it has managed to enter websites in Poland appears extremelythe group of top players and take strong. The player snapping at itsa strong second position. In March heels, mojageneracja.pl (run by the GG2010, Facebook was visited by more Network – owner of the most popularthan 5 million Poles and it gained instant messaging system in Poland),a reach level of 29%. The rapid growth attracted about 1.5 million real usersof this platform in Poland may lead less than chomikuj.pl in March 2010to a situation where in the future the giving it a reach of 15%.California-based player may well beable to threaten Nasza-Klasa. However, Do you CEE? Poland
    • 162Another interesting player among the number of page views – over 1 billion.top 5 social portals is fotka.pl. Fotka.pl is one of the oldest socialThis website, based on the ‘hot or not’ networking websites in Poland and itformula, was visited by nearly 2 million markets its services generally to youngPoles in March 2010 (11% of reach), people, who publish their photos andbut it is one of the most engaging allow them to be evaluated by otherprojects on the Polish web. In the users.same period, its average visitor spentmore than 5 hours generating a huge 1.5. ONLINE CLASSIFIED ADS BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 otomoto.pl 4 254 227 101 01:11:32 24% 2 gratka.pl 2 214 490 43 00:31:47 12% 3 gazetapraca.pl 1 976 458 24 00:19:08 11% Table 5 Top 3 online classified ads in Poland by reach level (Megapanel PBI/Gemius, March 2010); all websites presented in the table are auditedThe most popular online classified Gratka.pl is also quite a mature brand,ads service in Poland is otomoto.pl. present on the market since 2000.It is a website run by otoMoto In March 2010 it gained a reach ofSp. z o.o. from Poznań and it belongs 12%, which means that in this periodto the Allegro Group. OtoMoto is an it was visited by more than 2.2 million‘automotive’ service dedicated to Polish internet users.users who want to buy and sell a caror motorcycle. In March 2010 In third place is gazetapraca.pl,it attracted 4.3 million real users an online service which operates usingand gained a reach level of 24%. the ‘job board’ model. Gazetapraca.pl is a part of Gazeta.pl Group, whichSecond place in this ranking is gratka.pl, belongs to Agora SA, one of the mosta service run by the Polskapresse significant Polish publishers. ThePublishing Group. The main set of website contains information on jobcategories of classified ads covered market and offers advice helpful foron the website include: automotive, jobseekers. Gazetapraca.pl attractedreal estate, jobs and tourism, however more than 1.9 million real users ingratka.pl offers a great deal more March 2010 gaining a reach of 11%.than just this. It cooperates withautomotive companies, as well asreal estate and HR agencies. Themain portal deals with professionaladvertisements, however it providesa subservice (ale.gratka.pl), which isa database of solely classified ads.Do you CEE? Poland
    • 163 1.6. TOP FINANCE SITES BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER wp.pl (finance, currencies, stocks, 1 pensions, financial 2 051 660 16 00:23:08 12% passage, funds, financial calculator) money.pl 2 1 981 810 13 00:18:39 11% (finance) gazeta.pl 3 1 616 079 26 00:28:00 9% (money, stocks) Table 6 Top 3 finance sites in Poland by reach level (Megapanel PBI/Gemius, March 2010); all websites presented in the table are auditedThe top financial websites in Poland In 2009 this stock was taken byare dominated by services provided another company owned by VGH,by the largest horizontal portals. The Holtzbrinck Networks. The remainingfirst position is held by wp.pl, whose 30% is owned by Arkadiusz Osiak,service focuses on economic issues co-founder and president of money.pl.related to finance. In March 2010 This seems like a good investment andthis service was visited by more than forward-moving company, especially2 million real users. Such a large when Megapanel PBI/Gemius data isaudience gave the WP’s financial taken into account. According to thesection a reach of almost 12% and study, in March this year money.plthe prime position in the ranking. The attracted almost 2 million Polishthird position in the ranking is taken internet users who constituted 11%by a similar section of Gazeta.pl, which of the whole online population andattracted over 1.6 million real users generated more than 25 million pageand gained a reach of 9%. As far as views.financial subsections of portals areconcerned, another significant player Beyond the top 3 ranking, thereis the finance section of Onet.pl. are also such significant players as eGospodarka.pl, bankier.pl orHowever, the domination of gazetaprawna.pl.horizontal portals is not total. Thesecond position is held by money.pl.This vertical financial portal wasestablished in 2000 in Wrocław andoperates as an online magazinedevoted to financial and economicissues. Since June 2009, the company’smain shareholder has been theGerman publishing house Handelsblatt(70%), which belongs to theVerlagsgruppe Georg von Holtzbrinck. Do you CEE? Poland
    • 164 2. ONLINE AUDIENCE The Polish internet is the Unlike in many CEE markets,second largest online market in the majority of Polish internet users doCEE region; there are 17.7 million not live in the capital city or otherinternet users in this country. The large metropolises. Exactly 31% ofgender structure of this considerable the online population consists ofpopulation remains extremely individuals who live in rural areas.balanced. In March 2010 there were A comparable force within the online50.3% males and 49.7% females using area are individuals from smallthe internet in Poland. However, it is towns and medium-sized cities (fromworth remembering that this slight 20,000 to 200,000 inhabitants), whodifference in absolute numbers means represent 30% of all internet users inthat Polish online area is populated by Poland. People from cities bigger thanalmost 90,000 more men. 200,000 inhabitants represent 25% of the online population. The majority of Polish internetusers are young or very young people. The majority of Polish internetMore than half of the whole online users are pupils and students. Theypopulation in this country (exactly account for 31% of the whole online52%) consists of individuals between population. The rest has a very flat15 and 34 years old. On the other structure: almost all occupationalhand, slow but constant growth is groups are represented equally (fromcharacteristic of the oldest group of 7% in the case of highly skilled workersinternet users. The proportion of Poles and freelancers, to 1% in the case ofactive within the online area and older unskilled workers). The last mentionedthan 55 years has increased from 7% group, as well as military and policein March 2009 to 8% in March 2010. officers, are represented least frequently on the internet. The education structure of thePolish internet users might look quitediversified, however a general patternis easily found. The population ofPoles using the internet regularlyis divided equally into three majorgroups: individuals who possess aneducation level from incompleteprimary to basic vocational (31%),individuals with incomplete orcomplete secondary education(34%) and those who graduatedfrom schools above post-secondary,including universities (34%). Whenprecise criteria of education are takeninto consideration, it appears thatthe largest groups of Polish internetusers are secondary school graduates(24%) and individuals with a highereducation (18%).Do you CEE? Poland
    • 166 3. TOOLS 3.1. BROWSERSChart 1 Top browsers in Poland by share of page views generated by internet users who visit Polishwebsites that are using gemiusTraffic (gemiusTraffic1Q 2007 – 1Q 2010)3.1. Browsers 2009, when those the two browsers swapped positions.The web browser most intensivelyused in Poland is Mozilla Firefox. In the The third most intensively usedfirst quarter of 2010 the share of page browser in Poland is Opera, whichviews generated by internet users in the first quarter of 2010 waswho visited websites monitored in the responsible for 11% of all pagegemiusTraffic study using this browser views generated by internet userswas 52.27%, while the corresponding on websites monitored in theshare for Microsoft Internet Explorer gemiusTraffic study. The newest playerwas 31.18%. The most significant on the market, Google Chrome, duringperiod for this part of the online the same period managed to gain onlymarket was the second quarter of 4.84% of all page views. 3.2. OPERATING SYSTEMSChart 2 Top operating systems in Poland by share of page views generated by internet users who visitPolish websites that are using gemiusTraffic (gemiusTraffic1Q 2007 – 1Q 2010)Do you CEE? Poland
    • 1673.2. Operating systems 3.3. SEARCH ENGINESAs with other CEE markets, theunquestionable leader within theranking of operation systems inPoland is Microsoft Windows. In thefirst quarter of 2010 the share ofpage views generated by visitorssurfing websites monitored in thegemiusTraffic study who were usingWindows XP was 72.71%. During thelast two years, the market share ofthis version of the Microsoft operatingsystem has been slightly decreasing Chart 3 Top search engines in Poland by share of visits generated by internet users who visit Polish websites that are using gemiusTraffic (gemiusTraffic1Q 2007 – 1Q 2010)in favour of Windows Vista. In thefirst quarter of 2010 its users wereresponsible for almost 19% of allpage views generated on websites 3.4. SCREEN RESOLUTIONSmonitored in the gemiusTraffic study.3.3. Search enginesThe online market in Poland isdominated by the Google searchengine, which during the last threeyears has not lost its leading position.In the first quarter of 2010 exactly97.05% of all visits made by Polishinternet users on Polish websites Chart 4 Screen resolutions in Poland by share of page views generated by internet users who visitmonitored in the gemiusTraffic study Polish websites that are using gemiusTraffic (gemiusTraffic1Q 2007 – 1Q 2010)have their origins in Google searchresults. During the same period, noother search engine explored byinternet users in Poland (including 3.5. MOBILE DEVICESMicrosoft’s MSN and the localsolution, NetSprint) was able to breakthe barrier of a 1.3% share of all visits.3.4. Screen resolutionsThe most popular screen resolutionin Poland still remains 1024 x 768.Nevertheless, it has lost its share sincethe first quarter of 2007. At the sametime, 1280 x 800 resolution (used innotebooks) is becoming increasinglymore popular (from 4.89% in the first Chart 5 Top 5 mobile devices in Poland by the website-averaged percentage share of page views generated by internet users from Poland, who visit the Polish websites that are using gemiusTrafficquarter of 2007 to 20.78% in the first (gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10quarter of 2010). **to 2010-07-25 Do you CEE? Poland
    • 1683.5. Mobile devices - models devices, only one, the iPad, grew in popularity and increased its shareThe Polish market of internet- by 3 percentage points. During thededicated mobile devices is dominated same period iPhone’s share as wellby the iPhone, which has a 17% share as the popular Nokia devices’ shareof page views generated by internet decreased by around 2 percentageusers from Poland, who visit the Polish points.websites participating in gemiusTraffic.However, what is interesting is thatamong the top 5 most popular 4. BRANCH ORGANIZATIONSIAB Poland of the Polish internet as a vital tool for companies that use online advertising.www.iabpolska.pl PBI’s mission is to develop the Polish internet as a medium that wouldDescription: IAB Poland is an be reliable for Polish advertisers,organization dedicated to interactive advertising agencies, investors andmarketing in Poland. Its main goal other players who work with theis further education of the internet internet.market regarding different methodsfor using the internet. Members Members: leading Polish internetinclude internet portals and publishers, internet portals ownersadvertising and interactive agencies. (Gazeta.pl, Interia.pl, Onet.pl,The Internet Advertising Bureau Wirtualna Polska), PBI partnersPoland was established in 2000 and (Gemius SA, IAB Polska, Internethas since been an important player on Standard, News Point, Grupa Cron,the Polish internet market. MB SMG/KRC, Transmisje Online sp. z.o.o.).Members: internet portals, advertisingagencies, interactive agencies,research agencies (e.g. International SMB – Polish Direct MarketingData Group Poland S.A., Onet.pl AssociationGroup, nasza-klasa.pl, Agora S.A.). www.smb.plPolish Internet Research Description: SMB is an organization that aims to create favorablewww.pbi.org.pl conditions for the development of direct marketing in Poland inDescription: PBI is an organization accordance with regulations and workestablished by the main Polish ethics. The Polish Direct Marketinginternet publishers and largest portal Association brings together aroundowners. Its aim is to create standards 100 companies and is a memberfor internet research in Poland. PBI of the Federation of Europeanpromotes solid and reliable research Direct and Interactive MarketingDo you CEE? Poland
    • 169and International Federation of Members: Companies dealing withDirect and Interactive Marketing. direct marketing, advertising andThe company plays a key role in the marketing communications agencies,identification, planning and resolution database brokers, telemarketingof problems concerning the field of companies, catalogue and mail-orderdirect marketing in Poland. Its goal is firms, fulfillment companies, serviceto implement and maintain standards and manufacturing enterprises andon the market and to actively protect companies from the internet and newcompanies and consumers. media sectors; together approximately 100 member enterprises. 5. OPINIONS FROM THE MARKETPiotr KowalczykDeputy Director of Advertising Products, Onet.plOnline advertising marketWhat are the opportunities and obstacles for the online advertising market on yourlocal market?As far as the Polish online market is concerned, the same issues can be describedboth as obstacles and opportunities. For instance, online penetration and mediaconsumption in Poland is still relatively low, which obviously is an obstacle. On theother hand, this means that there is a lot of space for growth, which is a greatopportunity. There is also space for improvement in general advertising processes,which is often underestimated. However, it is one of the factors taken into accountby marketers when deciding whether to spend more money online or not.Another obstacle is that also seen in other countries around the world: the lackof confidence in the internet and everything that is online as a good brandingvehicle. This of course is a great opportunity for the online industry. All that needsto be done is to provide enough evidence for online branding effectiveness.Another important issue is the necessity to learn new ways of managing brandcommunication by marketers and breaking the routine in media planning based onmany years of offline experience.Global vs. local playersAre the local players present on your local market strong enough to compete withthe global giants? What advantages and strategies do they use in this battle?The predominance of local players in Poland with respect to their globalcompetition is closely related to local support of business, which is still a greatneed. Horizontal portals are a good example of this phenomenon. Global portalbrands practically do not exist on the Polish market, although a few of them haveattempted to enter the market and failed. However, from the perspective of Do you CEE? Poland
    • 170the end user, some services, such as search engines and social networkingsites, after easy-to-conduct translation and localization into the local language,immediately constitute valuable products. This explains why particular sectors tendto be dominated by global players. The only exception are the local players whohave had enough time to dominate the market before the global players appearedand who have had enough resources to develop services so that they can offercompetition to what the global players offer. This is the case with the Polishe-commerce market.Artur WaliszewskiCountry Business Director, Google PolandOnline advertising marketWhat are the opportunities and obstacles for the online advertising market on yourlocal market?The small and medium-sized Polish businesses have greatly profited from theinternet: it provides access to cheap yet effective online advertising. On the otherhand, large players can also benefit from web-based video by strengthening its role.The perspectives for further development of both these fields are great.A barrier hindering market growth is the insufficient quality of available researchservices and the practical non-existence of cross-media research. The lobbyinterested in maintaining the status quo is very effective in feeding negativestereotypes about online advertising.Global vs. local playersAre your local market players strong enough to compete with the global giants?What advantages and strategies do they adopt in this battle?Yes and no. An internet service is defined by three factors: technology, content andcommunity. The major competitive advantage of Polish online businesses over theglobal players is the local content they feature, and in this respect they have theedge on competitors. On the other hand, where technology starts to play a keyrole, global players have the upper hand. Furthermore, communities contributean element of unpredictability to the market.Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in future?An increasing number of Polish companies, especially those operating on thee-commerce market, are the ones focussed on export. These companies willdiscover the chances offered by the free market (EU) and the internet, i.e. thepossibility to reach foreign clients quickly.Do you CEE? Poland
    • 171What the future has in store for us is a rapid evolution of mobile devices and cloudcomputing as well as the emergence of innovative apps and online services.A combination of these two trends may give rise to interesting phenomenaon the market.Market specificsWhat makes your local online market unique? Are there any specifics that make itdifferent from others in the CEE region?The Polish market is a relatively well-measured one, although it is still strugglingto face up to expectations. It is large enough for local players to grow on a scalethat will allow them to develop and maintain viability, it is quick to implement newtrends and users are adventurous and open to novelties.Joanna GajewskaCommunications Director, nk.plGlobal vs. local playersAre the local players present on your local market strong enough to compete withthe global giants? What advantages and strategies do they use in this battle?Local players are strong enough – this would be the simplest and probablythe most correct answer. Brands such as Allegro, GG or NK (former Nasza Klasa)have shown that they are able to compete with global giants effectively (i.e. eBay,MSN, FB). Some of these above-mentioned battles are already finished, some arenot, but basic strategies in case of Polish and foreign companies are pretty muchthe same. These things that make the difference are: better understanding of thelocal market, of its demanding customers and of client mood swings. These mightbe our local advantages.Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in the future?Since last two years, social networking projects have been the fastest-growingpart of the online industry. Not only the number of new SNS projects present onour market is constantly growing, but also the number of people engaged in usingthem. According to the development paths that these entities have chosen it isreasonable suspicion that they will strengthen their positions.The second strong trend is connected with marketing research run via the internet,especially if it comes to qualitative ones. The potential on this market is stilluntapped, but there are some prerequisites that let us assume that this situationwill not last long. Do you CEE? Poland
    • Romania 7.58m internet users1. MAINPLAYERS_1731.1. Top10websitesbynumberofuniqueclients_1731.2. Top10websitesbyaudiencewithsocio-demographics_1741.3. Top10websitesbyaveragetimespentperuniqueclient_1761.4. Topportalsbynumberofuniqueclients_1771.5. Topsocialnetworkingsitesbynumberofuniqueclients_1781.6. Topfinancesitesbyreach_1791.7. Topfinancewebsitesbynumberofuniqueclients_1792. ONLINEAUDIENCE_1803. TOOLS_1823.1. Browsers_1823.2. Operatingsystems_1823.3. Search engines_1833.4. Screen resolutions_1833.5. Pageimpressionsperuniqueclientandaverageviewtimeperuniqueclient_1844. BRANCHORGANIZATIONS_1845. ADVERTISINGNETWORKS_1866. OPINIONSFROMTHEMARKET_187
    • 173 1. MAIN PLAYERS 1.1. TOP 10 WEBSITES BY NUMBER OF UNIQUE CLIENTS WEBSITE’S CATEGORY NUMBER OF NUMBER OF PAGE IMPRESSIONS AVERAGE TIME PER UNIQUE CLIENTS PAGE IMPRESSIONS PER UNIQUE CLIENT UNIQUE CLIENT 1 hi5.com social network 4 617 621 2 336 670 870 506.0 12,657 2 trilulilu.ro video sharing 3 009 029 72 343 109 24.0 2,219 3 forum.softpedia.com forum 2 758 289 18 887 137 6.8 899 4 eva.ro women lifestyle 2 511 451 44 767 947 17.8 1,700 5 gsp.ro sports 1 759 471 42 498 615 24.1 3,570 6 realitatea.net general news 1 755 136 24 769 924 14.1 2,098 7 cancan.ro tabloid 1 692 567 42 484 069 25.1 2,500 8 acasa.ro portal/ search engine 1 673 830 12 184 065 7.2 493 9 bizoo.ro portal / search engine 1 672 231 21 157 708 12.6 664 10 libertatea.ro tabloid 1 664 521 48 054 953 28.8 3,191 Table 1 Top 10 websites in Romania by number of unique clients (SATI, by BRAT, Traffic measurement, March 2010)In order to provide a valuable and page impressions per month andcomplex analysis of the Romanian more than 4,5 million unique clientsonline landscape, this chapter of the per month. The service is a socialreport includes two rankings of the networking site which is Americantop market players. The first is the in origin and is dedicated mainly toranking of top 10 websites by traffic young people.figures (by the number of uniqueclients, a cookie-based figure). It Second place belongs to trilulilu.ro,is based on SATI, by BRAT, traffic a video sharing website. This websitemeasurement results. The second saw an explosive increase in itsranking is based on the results of audience over the last 2 years andSATI audience measurement, and in March 2010 it had over 3 millionit represents the weekly number of unique clients.persons visiting websites and theirsocio-demographic profiles. Softpedia.com was established nine years ago and through itsAccording to the SATI Traffic Forum, continues its history of goodmeasurement, the Romanian performance, remaining in the topsection of hi5.com (only Romanian 3 of Romanian websites.IPs are measured) is the leader ofthe general ranking for Romanian Eva.ro is a site for women. It iswebsites, with more than 2 billion a lifestyle service, which Do you CEE? Romania
    • 174unexpectedly appeared within popular websites in Romania, all withthe top 10 Romanian websites. top quality content and increasingThis was mainly due to the launch of competition.lumeacafelei.eva.ro, an interactivegame, which turned out to be Tabloids are represented by 2 websites:a significant success in March and cancan.ro and libertatea.ro, whichApril 2010, transforming eva.ro into have over 1,650,000 unique clients.the leader in the women lifestyle’ Noteworthy is the performance ofcategory. the portals/search engines: acasa.ro and bizoo.ro. Most recently acasa.roA continuous presence in the Top 10 went through a re-branding processis maintained by gsp.ro in 5th place. and is now a lifestyle website.It is the most visited sports website.In March 2010, gsp.ro had over1,750,000 unique clients.The leader in the ‘general news’category is realitatea.net, on 6thplace among the top 10 Romanianwebsites. It should be mentionedthat the ‘sports’ and ‘general news’categories are some of the most 1.2. TOP 10 WEBSITES BY AUDIENCE WITH SOCIO-DEMOGRAPHICSBeside the traffic results (usually to a reach of 36.9% from the SATItechnical metrics as page universe: 5.2 million persons.impressions, visits, unique clients- cookie based indicators), the results The performances of trilulilu.ro,of the audience for websites and forum.softpedia.com, cancan.ro andthe socio-demographic profiles of libertatea.ro, in terms of traffic arethe visitors are available. The traffic confirmed by their audience results.results are delivered in real-time, Ejobs.ro, with 10 years in the jobwhile the audience and socio- sector, took 3rd place, convincingdemographic results are provided 483,000 persons on average perat six-month periods, representing week to visit its pages. The leadersthe audience values calculated for of the sports and general newsthe average week in a 6-month categories (gsp.ro and realitatea.net)period. The last delivery corresponds respectively took 7th and 8th placesto the period September 1st 2009 in the top 10, followed closely by- February 28th 2010. their direct competitors, sport.ro and stirileprotv.ro.As presented in the above table,the Romanian section of hi5.com The socio-demographic profiles ofmaintains first place, with almost the visitors reveal a balance between2 million persons visiting the website women and men for most of thein an average week. This corresponds websites in the top 10, except theDo you CEE? Romania
    • TOP 10 WEBSITES BY AUDIENCE WITH SOCIO-DEMOGRAPHICS GENDER (% FROM TOTAL VISITORS OF THE WEBSITE) STE’S CATEGORY AVERAGE NUMBER VISITOR’S PAGE REACH WOMEN MEN OF VISITORS PER IMPRESSIONS PER % OF VISITORS WEEK WEEK (FROM THE UNIVERSE) 1 hi5.com social network 1 919 000 435 025 000 36.9% 49.1% 50.9% 2 trilulilu.ro video sharing 602 000 10 884 000 11.6% 49.0% 51.0% 3 ejobs.ro job-board service 483 000 7 481 000 9.3% 53.6% 46.4% 4 forum.softpedia.com forum 472 000 3 238 000 9.1% 45.7% 54.3% 5 cancan.ro tabloid 436 000 6 552 000 8.4% 47.4% 52.6% 6 libertatea.ro tabloid 403 000 7 489 000 7.7% 48.7% 51.3% 7 gsp.ro sports 391 000 5 722 000 7.5% 32.6% 67.4% 8 realitatea.net general news 389 000 4 602 000 7.5% 46.6% 53.4% 9 sport.ro sports 358 000 5 294 000 6.9% 34.2% 65.8%10 stirileprotv.ro general news 350 000 2 898 000 6.7% 45.8% 54.2% AGE (% FROM TOTAL VISITORS OF THE WEBSITE) SOCIAL STATUS ESOMAR (% FROM TOTAL VISITORS OF THE WEBSITE) 14-24 25-34 35-44 45-54 55-64 AB (HIGH) C (MIDDLE) DE (LOW) YEARS YEARS YEARS YEARS YEARS 1 hi5.com 42.6% 26.5% 18.6% 8.9% 3.5% 34.2% 45.3% 20.5% 2 trilulilu.ro 40.6% 25.8% 20.3% 9.2% 4.0% 33.1% 45.2% 21.7% 3 ejobs.ro 32.5% 30.2% 21.7% 11.4% 4.2% 38.0% 44.5% 17.5% 4 forum.softpedia.com 39.7% 27.4% 19.5% 9.4% 4.1% 37.2% 44.8% 18.0% 5 cancan.ro 32.6% 29.2% 20.9% 11.5% 5.8% 40.6% 43.9% 15.5% 6 libertatea.ro 31.1% 28.5% 21.0% 12.7% 6.7% 41.0% 43.7% 15.3% 7 gsp.ro 33.9% 30.2% 19.9% 10.3% 5.7% 39.4% 45.4% 15.2% 8 realitatea.net 27.8% 27.6% 22.4% 13.9% 8.3% 46.2% 41.5% 12.3% 9 sport.ro 40.6% 27.4% 19.5% 8.3% 4.2% 34.9% 47.1% 18.0%10 stirileprotv.ro 41.7% 26.7% 19.0% 8.6% 4.0% 35.0% 46.2% 18.9%Table 2 Top 10 websites in Romania by audience (SATI, by BRAT, Audience measurement, September 2009 - February 2010, universe: 14-64 yo, urban,internet users)
    • 176sports websites, gsp.ro and sport.ro, aged segment who have a high socialwhere men represent two-thirds of all status.visitors. The general news websites realitatea.Hi5.com has the youngest audience net and stirileprotv.ro have similarin the ranking, with almost 69% of its profiles, but realitatea.net morevisitors between 14 and 34 years old. often has visitors from the middle- aged segment and the high socialThe visitors of trilulilu.ro, ejobs.ro and status category. Stirileprotv.ro is moreforum.softpedia.com have a similar popular among younger people.profile. They are young people in the14-24 year-old segment. Ejobs.ro alsohas a good affinity with the segmentof 25-34 year olds.The tabloids, cancan.ro andlibertatea.ro have an audience witha higher affinity with the middle- 1.3. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER UNIQUE CLIENTIt is of no surprise that the best agf.ro, a forum of stock-exchangevalues in terms of viewtime per players. Despite the fact that the totalclient are reported for websites audience is not particularly high,recognized as forums, social networks each unique client spends more thanand sports websites. In March 2010 4 hours each month on agf.ro.the best performance was noted for WEBSITE’S CATEGORY UNIQUE CLIENTS PAGE PAGE VIEW TIME PER IMPRESSIONS IMPRESSIONS UNIQUE CLIENT PER UNIQUE (SECONDS) CLIENT 1 agf.ro economy / finance 9 856 1 139 929 115.7 14,669 2 hi5.com social network 4 617 621 2 336 670 870 506.1 12,659 3 neogen.ro social network 1 019 772 217 752 324 213.5 9,001 4 conquiztador.ro online game 586 213 22 992 936 39.2 4,734 5 prosport.ro sports 1 068 899 30 944 930 28.9 4,150 6 sport.ro sports 1 366 747 33 874 095 24.8 3,683 7 gsp.ro sports 1 759 471 42 498 615 24.2 3,572 8 libertatea.ro tabloid 1 664 521 48 054 953 28.9 3,189 9 pgl.ro online game 53 671 3 000 760 55.9 2,918 10 mobile.ro auto / moto 497 815 46 948 849 94.3 2,696 Table 3 Top 10 websites in Romania by average time spent per unique client (SATI, by BRAT, Traffic measurement, March 2010)Do you CEE? Romania
    • 177The Romanian section (only content. The average value of aboutRomanian IPs) of hi5.com takes 1 hour per user for each of the sportssecond place and in March 2010 its websites presented above speaks forusers spent more than 3.5 hours on itself.this service. Next place is taken byneogen.ro, whose unique clients Other popular websites belong todevote an average of around the ‘games’ category. First place2.4 hours per month for visiting among them takes conquiztador.ro,this service. the online game where users conquer virtual lands by answering questions.The results gained by the sportswebsites on the metric viewtime per 10th place is taken by mobile.ro,user reveal strong competition among the international automotivethe players in this category. Gsp.ro, classified service.prosport.ro and sport.ro are of thehighest interest for the Romanianonline audience with regard to sports 1.4. TOP PORTALS BY NUMBER OF UNIQUE CLIENTS UNIQUE CLIENTS PAGE PAGE VIEW TIME PER IMPRESSIONS IMPRESSIONS UNIQUE CLIENT PER UNIQUE (SECONDS) CLIENT 1 acasa.ro 1 673 830 12 184 065 7.2 494 2 bizoo.ro 1 672 231 21 157 708 12.6 665 3 rol.ro 1 627 150 14 560 849 8.9 521 4 apropo.ro 1 123 537 6 999 492 6.2 550 5 roportal.ro 1 053 431 3 430 826 3.2 312 Table 4 Top 5 portals in Romania by number of unique clients (SATI, by BRAT, Traffic measurement, March 2010)Horizontal portals, which provide targeted to a business audience,a large variety of information, providing services to companies.have also attracted the interest of The struggle between these twoRomanian visitors last year. Acasa.ro players is clearly visible and in Marchconfirmed its leading position from 2010 bizoo.ro lost 1,600 unique2009, gaining more than clients compared to acasa.ro, but1.5 million unique clients each it beat its rival as far as all othermonth. Recently, acasa.ro was indicators are concerned.rebranded and is now re-positioningitself as a lifestyle website. Its main Rol.ro, in third place, is one of thecompetitor is bizoo.ro, a portal oldest portals in Romania. However, Do you CEE? Romania
    • 178the portal does not remain far behind The other two players apropo.ro andthe leaders and in March 2010 its roportal.ro, managed to exceedunique clients amounted to 1,627,150 1 million unique clients per month.users. 1.5. TOP SOCIAL NETWORKING SITES BY NUMBER OF UNIQUE CLIENTS UNIQUE CLIENTS PAGE PAGE VIEW TIME PER IMPRESSIONS IMPRESSIONS UNIQUE CLIENT PER UNIQUE (SECONDS) CLIENT 1 hi5.com 4 617 621 2 336 670 870 506.0 12,659 2 tpu.ro 1 061 704 5 410 137 5.1 438 3 neogen.ro 1 019 772 217 752 324 213.5 9,001 4 netlog.com 887 181 37 146 597 41.8 2,274 5 mysport.ro 127 964 2 424 403 18.9 1,207 Table 5 Top 5 social networking sites in Romania by number of unique clients (SATI, by BRAT, Traffic measurement, March 2010)Romanian users are passionate into third place. One of the oldestabout social media, keen on social media brands in Romania,communication, and they like to neogen.ro, is not only a datingmake friends and have fun. This platform, but also has the integratedexplains the tremendous success of services which include classifieds,social networking sites in Romania. destinations, events, and games.These websites are well representedby both international (hi5.com andnetlog.com) and local brands (tpu.ro,neogen.ro, mysport.ro).Measuring only visitors withRomanian IPs, the Romanian sectionof hi5.com manages to attract morethan 4 million unique clients eachmonth. Moreover its users generatearound 2 billion page impressions,over 500 page impressions perunique client and spent on average3.5 hours per UC.Tpu.ro is a question and answerwebsite. Being a relatively newcommunity, tpu.ro has grownextremely quickly and sent neogen.roDo you CEE? Romania
    • 179 1.6. TOP ONLINE CLASSIFIED ADS BY NUMBER OF UNIQUE CLIENTS UNIQUE CLIENTS PAGE PAGE VIEW TIME PER IMPRESSIONS IMPRESSIONS UNIQUE CLIENT PER UNIQUE (SECONDS) CLIENT 1 ejobs.ro 1 619 217 39 412 460 24.3 1,105 2 bestjobs.ro 1 076 429 37 458 490 34.8 1513 3 auto.ro 643 570 18 302 180 28.4 2052 4 automarket.ro 619 652 10 008 106 16.1 1050 5 publi24.ro 285 854 9 305 025 32.5 1 304 Table 6 Top 5 online classified ads in Romania by number of unique clients (SATI by BRAT Traffic measurement March 2010)Among the websites publishing small- Publi24.ro represents websitesads, those from the ‘jobs’ category publishing small-ads of all types (auto,are visited most. Both ejobs.ro and jobs, real estate, etc.), however it onlybestjobs.ro have over 1 million unique has about 286,000 unique clients eachclients each month. month.The classifieds from the ‘auto’category also generate significanttraffic. In March 2010, the leadersin this category were auto.ro andautomarket.ro, with more than600,000 unique clients. 1.7. TOP FINANCE WEBSITES BY NUMBER OF UNIQUE CLIENTS UNIQUE CLIENTS PAGE PAGE VIEW TIME PER IMPRESSIONS IMPRESSIONS UNIQUE CLIENT PER UNIQUE (SECONDS) CLIENT 1 wall-street.ro 948 715 4 884 262 5.1 386 2 zf.ro 874 223 7 430 477 8.4 1,143 3 money.ro 675 282 3 743 291 5.5 743 4 avocatnet.ro 632 521 4 614 248 7.2 888 5 capital.ro 579 314 2 899 750 4.9 750 Table 7 Top 5 finance websites in Romania by number of unique clients (SATI by BRAT Traffic measurement March 2010) Do you CEE? Romania
    • 180Providing financial news, articles Zf.ro is the online platform of Ziarulabout banks, business opportunities Financiar, one of the most successfulas well as information about business newspapers in Romania.Romanian funds, ‘Business andFinance’ is one of the categories After a year of its launch, thewhere competition is strong, with business portal Money.ro camemore than 20 websites competing. third. With a loss of 43,000Wall-street.ro was the leader in compared to money.ro, avocanet.ro,March 2010, with almost 950,000 an online legal community, ranksunique clients. It belongs to Internet fourth. 5th place is taken by capital.ro.Corp, an independent Romanianpublisher. 2. ONLINE AUDIENCE The gender structure of the accounted for 8%. School children ofRomanian internet users is relatively grades 1 to 11 accounted for 15% ofbalanced, reflecting the general the online population.structure of the population. Menare only slightly better represented As in other CEE countries, thethan women according to SATI, by majority of internet users in RomaniaBRAT. Men accounted for 50.7% of lives in the capital city (Bucharest)the online population, and women or in other large cities (over 200,00049.3%. inhabitants); this amounts to approximately 45% of all internet According to SATI (Audience users. 28% of the Romanian onlinemeasurement, September 2009 population live in cities with 50,000- February 2010, universe 14-64 – 200,000 people. The remainingyo, urban), the Romanian online 27% live in places with less thanmarket is dominated by young and 50,000 inhabitants.very young people; 70% of them areunder 40 years old. The number of The managers or freelancersinternet users decreases with age with high level of education togetherwith almost 2% of users over 60 with students and pupils as well asyears old. the entrepreneurs and independent professionals with university degree Graduates of high schools and comprise 45.2% of Romanianuniversities are extremely well internet users.represented among Romanianinternet users. According to SATI(Audience measurement, September2009 - February 2010, universe 14-64 yo, urban) they constituted 77%of the total number of the internetusers. Vocational school graduatesDo you CEE? Romania
    • 182 3. TOOLS 3.1. BROWSERSChart 1 Top browsers in Romania by share of visits made from each in total number of visits(SATI, by BRAT, Traffic measurement, 2007 Q4 – 2010 H1)3.1. Browsers has been declining; in the first half of 2010 Firefox’s share on the marketFor a long time the Romanian browser amounted to 42%. Other browsersmarket was dominated by Microsoft used by Romanian internet users areInternet Explorer. However, MSIE’s Chrome and Opera. However, theirshare has been decreasing over the market shares are not significant andpast few years. In the first half of 2010 amounted to only 7% in the first halfit constituted only 43%. Moreover, of 2010.Firefox has been catching up withMSIE and the distance between them 3.2. OPERATING SYSTEMSChart 2 Top operating systems in Romania by share of visits made from each in total number of visits(SATI, by BRAT, Traffic measurement, 2007 Q4 – 2010 H1)Do you CEE? Romania
    • 1833.2. Operating systems 3.3. SEARCH ENGINESAs with other CEE markets, theunquestionable leader amongoperating systems in Romania isWindows XP. In the first half of 2010its market share accounted for 78%of the online audience and thesituation does not allow to predictany changes in the nearest future. Thesecond player on the market is thenewcomer: Windows 7, which gainedmore than 9% over the last twelvemonths before the study.3.3. Search engines Chart 3 Top search engines in Romania by share of visits initiated by each in total number of visits (SATI, by BRAT, Traffic measurement, 2007 Q4 – 2010 H1)As in other CEE search enginemarkets, the leader in Romania isGoogle. In the first half of 2010 it each month. This visible changewas responsible for 96% of all visits occurred in the last trimester of 2009,made on websites monitored by BRAT due to the Romanian branch ofand the situation has been relatively hi5.com, which at that time joinedconstant over several years. The other the SATI study.noteworthy search engine is Yahooconstituting 1.5% of the Romanian Note: The above figures related tosearch market. viewtime and page impressions/client are calculated only for Romanian3.4. Screen resolutions websites, measured by SATI. The traffic on the large global websitesThe distribution of screen resolutions (such as Google) is not included in thehas remained almost constant over calculation.the years; 1024 x 768 comes in firstplace with a 31% share, followed by1280 x 1024 (18%). Also, the 1280 x800 screen resolution is quite popular. 3.4. SCREEN RESOLUTIONS3.5. Page impressions and averagetime per userIn recent years, the Romanianinternet has grown not only in termsof number of visitors, but also interms of number of page impressionsgenerated by users and average timespent by them on websites. Currently,an average user (unique client) inRomania generates about 523 pageimpressions per month and at thesame time he or she spends morethan 6.5 hours surfing the internet Chart 4 Top screen resolutions in Romania by share of visits with recognized resolutions used by visitors in total number of visits (SATI, by BRAT, Traffic measurement, 2007 Q4 – 2010 H1) Do you CEE? Romania
    • 184 3.5. PAGE IMPRESSIONS PER UNIQUE CLIENT AND AVERAGE VIEWTIME PER UNIQUE CLIENTChart 5 Page impressions and average time spent per user (unique client) in Romania (SATI, by BRAT,Traffic measurement, September 2007 - June 2010) of visits (SATI, by BRAT, Traffic measurement,2007 Q4 – 2010 H1) 4. BRANCH ORGANIZATIONSBRAT Members: Publishing houses, online publishing houses, advertisingwww.brat.ro networks, advertising agencies, advertising clients.Description: The goal of the BRATassociation is to independently andobjectively verify the performance Asociatia IAB Romaniaindicators of various media productsbased on conventional criteria, www.iab-romania.rostandardized at the national leveland established by members of the Description: IAB Romania bringsassociation. The information obtained together the most important membersis intended for the advertising of the media and advertising industryindustry. BRAT was established on in Romania. The goals of IAB are to20 February 1998 by 33 founding promote the interactive advertisingmembers. As a result of the total industry, impose internationaltransparency of BRAT, the number of standards, develop and promotemembers has increased to 238. From programs to educate advertisers and2007 BRAT has implemented the SATI publishers, IAB produces and supportsstudy (internet audience and traffic studies on the efficiency and power ofresearch) online advertising, as well as publishesDo you CEE? Romania
    • 185market data and analysis. Last but Advertising Council is preparing tonot least, the organization formulates offer copy advice. RAC was establishedand promotes a code of ethics for the in 1999. It was the initiative of a uniononline advertising industry in Romania. in support of the advertising industryThe IAB association in Romania was in Romania which belonged to severalestablished in 2006. companies and to the International Advertising Association (IAA). TheMembers: Online publishing houses, activity of the Romanian Advertisingadvertising networks, advertising Council is based on the Code ofagencies, advertising clients. Advertising Practice, developed by its members. The Code is a set of ethical rules to be respected by allInternational Advertising Association those involved in advertising and any form of commercial communication.www.iaa.ro The document’s purpose is to support the development of honestDescription: The International and decent business in RomaniaAdvertising Association is a unique by offering a guide to the form andstrategic partnership which defends content of correct, honest and decentthe common interests of all disciplines information of the consumer andin the whole spectrum of the the industry.marketing communications industryfrom advertisers to media companies, Members: RAC has 50 members:agencies, direct marketing companies companies, advertising agencies,and individual practitioners. The main media and associations. In turn,objectives of IAA are to promote the Council is a member of otherthe role and benefits of advertising, European (EASA - Europeanto protect and promote freedom of Advertising Standards Alliance) andcommercial speech and consumer global (IAA - International Advertisingchoice, to encourage self-regulation Alliance) organizations.and practice of advertising and to offera forum for discussion of new topicsrelated to marketing communications.IAA Romania was founded in 1993.Members: Advertisers, mediacompanies, agencies, direct marketingfirms.Romanian Council for Advertisingwww.rac.roDescription: Romanian AdvertisingCouncil (RAC) is a professional,non-governmental, non-profit andindependent organization. The activityof the Council is self-regulation inadvertising. At present, the Romanian Do you CEE? Romania
    • 186 5. ADVERTISING NETWORKS GENERAL CONTACT INFORMATION FULL NAME HOMEPAGE URL ADDRESS MAIN OFFICE CONTACT ADDRESS Str.Turturelelor, nr 11A, et.5, Fax: +40 (0) 31-815-67-52 1 Ad Evolution adevolution.ro corp C, sector 3, Bucuresti Email: office@adevolution.ro Phone: +40 (0)31-825-64-61 Str. Tudor Arghezi nr. 3B, sector 2 Apropo Media apropomedia.ro Fax: +40 (0) 31-825-61-55 2, Bucuresti Email: orlando.nicoara@mpinteractiv.ro Phone: +40 (0) 372-111-777 Blv. Iuliu Maniu, nr. 7, cladirea B, 3 ARBOinteractive arbointeractive.ro Fax: +40 (0) 372-111-711 etaj 3, Sector 6, Bucuresti Email: calin.rotarus@arbointeractive.ro Str.Turturelelor, nr 11A, cladirea Phone: +40 (0) 37-401-39-00 4 Beyond Media beyond.ro Phoenicia Business Center, etaj Email: suport@beyond.ro 5, sector 3, Bucuresti Phone: +40 (0) 21-232-03-26 Str. Nucsoara nr.13, bloc 32, sc. 5 Digital 4 People digital4.ro Fax: +40 (0) 21-232-03 -6 A, ap. 2, Sector 6, Bucuresti Email: office@digital4.ro Phone: +40 (0) 21-209-53-33/ ext. 132 Blv. Pierre de Coubertin 3-5, Of- 6 Digital Ads digital-ads.ro Fax: +40 (0) 21-209-56-62 fice Building, Sector 2, Bucuresti Email: oana.lupoaie@digital-ads.ro P-ta Presei Libere nr 1 , Casa Phone: +40 (0) 21-549-37-90 7 F5/X Media f5xmedia.ro Presei Libere Corp A3, et2, Sec- Fax: +40 (0) 21-310-31-29 tor 1, Bucuresti Email: office@f5xmedia.ro Str Av. Sanatescu 40, Sector 1, Phone: +40 (0) 21-314-43-82 8 HttPool httpool.ro Bucuresti Email: info@httpool.ro Str. Pache Protopescu nr 109, Phone: +40 (0) 31-825-02-65 9 IBU Pro TV ibu.ro Bucuresti Email: constantin.cocioaba@protv.ro Calea Torontalului DN6 Km 5- Phone: +40 (0) 259-410-115 10 Inform Media Informmedia.ro 7,Cod postal – 300633, Fax: +40 (0) 259-436-639 Timisoara Email: monica.trusca@informmedia.ro Phone: +40 (0) 21-406-65-07 Blv. Ficusului nr. 44A, et. 3, corp 11 Intact Interactive intactinteractive.ro Fax: +40 (0) 21-406-65-84 A, cam. 16, sector 1, Bucuresti Email: contact@intactinteractive.ro Phone: +40 (0) 31-228-66-09 Str. Putul lui Zamfir nr. 28, Sector 12 Internet Corp Internetcorp.ro Fax: +40 (0) 31-228-61-23 1, Bucuresti Email: mihai@internetcorp.ro Phone 1: +40 (0) 21-665-75-99 Str. Panait Istrati nr. 55, Sector 1, Phone 2: +40 (0) 21-665-75-55 13 Splendid Interactive splendidmediagroup.ro Bucuresti Fax: +40 (0) 21-665-75-12 Email: office@splendidmediagroup.ro Phone: +40 (0) 21-410-10-38 Str. Dr. Staicovici, nr. 14, 14 ThinkDigital thinkdigital.gr/ro/ Fax: +40 (0) 21-411-11-33 Bucuresti Email: brain@thinkdigital.ro Blv. Unirii nr. 19, bl. 4B, parter, Phone: +40 (0) 21-209-56-79 15 TradeAds tradeads.eu sector 5, Bucuresti, postal code: Fax: +40 (0) 21-209-56-79 040103 Email: office@tradeads.euDo you CEE? Romania
    • 187 6. OPINIONS FROM THE MARKETAdina VasilescuNew Media Publisher, Sanoma HearstOnline advertising marketWhat are the opportunities and obstacles for the online advertising market onyour local market?There are still lots of opportunities for online services and transaction basedmodels in many segments of Romanian cyberspace. If we look at top 20 websitesin Romania there are a lot of brand extensions from print media, which aremainly content websites making money from advertising. The Romanian web isstill in the 1.0 phase, with some exceptions. The main problem is that despitea good internet penetration rate, online advertising spendings remain modest.Advertisers need first to understand the nature of online projects, then they willlearn to trust the web and began to spend real money online.Dominating trendsWhat are the recent trends on your local online market? What areas areexpected to develop most in the future?On the one hand, social media, communities and all forms of user-generatedcontent are growing in popularity. On the other hand, the future of e-commerceis promising and this will be key for both user and advertiser behavior within thenext 3-5 years.Global vs. local playersAre the local players present on your local market strong enough to competewith the global giants? What advantages and strategies do they use in thisbattle?There is little local strength compared to the large successes of internationalcompanies. A long path awaits Romania in order to reach a comparable level ofdevelopment of other countries of the region (e.g. the Czech Republic, Hungary,and Poland). As long as most of the successful local websites copy internationalconcepts, Romania will not be able to compete at the global level. What isneeded is more investment in innovation and the creation of models adapted tothe specifics of the Romanian market in areas where international concepts haveproved ineffective (e.g. online real estate). Do you CEE? Romania
    • 188Market specificsWhat makes your local online market unique? Are there any specifics that makeit different from others in the CEE region?The Romanian online market cannot yet be termed fully ‘mature’ whencompared with other CEE countries and it stills lacks the necessary know-how and vision. More entrepreneurs as well as experienced managers areneeded for this market to continue to develop. Fast and effective growth inthe online business most certainly lies in the future which means there are stillopportunities for investors in this market.Alex VisaManaging Partner, HyperactiveOnline advertising marketWhat are the opportunities and obstacles for the online advertising market onyour local market?The global economic downturn has slowed down the Romanian advertisingmarket as a whole, and this has also affected the internet advertising market.Compared to other European markets, which registered a 10% increasecompared to the previous year, Romania had a 5% to 10% decrease in 2009compared to 2008. Even with this decrease, the internet has declined less thanother types of media, and may be considered the ‘winner’ among media types.The share of spend dedicated to digital media has grown rapidly over previousyears, and is still expected to grow in the upcoming years. For 2010 we estimatea 5% budget share dedicated to online media. Even so, this is well below the18% average of other European countries.Dominating trendsWhat are the recent trends on your local online market? What areas areexpected to develop most in the future?The era of treating online products as ‘add-ons’ to any campaign has alreadypeaked, and the growing trend is to have campaigns revolving around an ‘onlineanchored 360 concept’. More major brands have started to take online seriouslyand to develop campaigns and communications strategies around a wellrounded, online anchored concept. Social media usage is also growing rapidlyand will continue to grow.Do you CEE? Romania
    • 189Global vs. local playersAre the local players present on your local market strong enough to competewith the global giants? What advantages and strategies do they use in thisbattle?The situation is mixed in this matter. Medium- and small-sized local brands are,in certain cases, more advanced than global giants. Nevertheless, global brandsare slower to start but faster to implement an integrated online anchoredcampaign, and usually have larger budgets for such endeavors.Laurentiu PopDeputy Managing Director, HttpoolOnline advertising marketWhat are the opportunities and obstacles for the online advertising market onyour local market?The Romanian online advertising market is blooming with opportunities atthe moment. There are new online advertising products available on themarket and advertisers are ready to use them and try new things. One of thebiggest advantages of the Romanian market is, of course, its high broadbandpenetration and the increasing interest that Romanians of all ages have inusing the internet. The willingness and the necessity to communicate andshare information is characteristic for both users and advertisers, therefore it isa positive environment for online advertising.However, there is still some work to be done until the internet reaches the levelof awareness and credibility that it has gained in western countries, and that canonly be achieved through constantly educating of all the stakeholders involvedabout the benefits online advertising can bring.Dominating trendsWhat are the recent trends on your local online market? What areas areexpected to develop most in the future?The trends on the local market are influenced by the global climate andeconomic environment. The first trend is connected to the professionalizationof the market by requesting full reports, by optimizing campaigns as they runand using all data available in order to become increasingly more efficient.The second trend is highlighted by large global advertisers that are developingbranding campaigns in their fight to gain a market share in the times of therecession. Do you CEE? Romania
    • 190Global vs. local playersAre the local players present on your local market strong enough to competewith the global giants? What advantages and strategies do they use in thisbattle?Local players developed extremely well during the first years of theimplementation of the Romanian internet infrastructure so it is difficult forglobal players access the main sectors such as Sports, Auto or Jobs. This is whyglobal players enter the Romanian market through the purchase of Romanianplayers (for example, in the Jobs and Auto sectors). Of course, there areexceptions in areas like E-mail or Search where the global players are too strong.Market specificsWhat makes your local online market unique? Are there any specifics that makeit different from others in the CEE region?The people and geopolitical position of Romania is in itself unique. Firstly,Romanian users are modern and keen on testing new products. Secondly,Romania is the only Latin-based linguistic area in the region and this has hada great impact of the way the internet market has developed so far and willcontinue to influence the way it will develop in the future.Cezar ParaschivAccount Manager, Starcom RomaniaSilviu TomaOnline Media Planner, Starcom RomaniaOnline advertising marketWhat are the opportunities and obstacles for the online advertising market onyour local market?It is inevitable that we take as a benchmark what happens in other so-called more ‘mature’ online industries. The internet is the same for all ofus (not including countries in the Middle East or China where parts of it arebanned) thus we all function on a level playing field and have almost thesame opportunities in terms of developing complex projects leveraging theparticularities of the medium. However, the ‘maturer’ countries are one stepahead of Romania. This is because their marketing culture is some way aheadof the Romanian one. One opportunity is the accessibility of online marketingknowledge that is narrowing the gap between Romania and the West. Romaniawill eventually move on from “intuitive online marketing” to “knowledge basedonline marketing” but the lack of online professionals both in agencies and inthe marketing departments of clients is now the greatest obstacle. We mustnot forget that we are functioning in a genuinely ‘idea’ field and of course greatideas only succeed if they are shared by people with common visions.Do you CEE? Romania
    • 191Dominating trendsWhat are the recent trends on your local online market? What areas areexpected to develop most in the future?In the past 3 years, specialists have claimed that mobile marketing is the ‘nextbig thing’. However, experience has shown us that the mobile channel was andcontinues to be poorly leveraged. This will change because of the smartphonemarket boom. Smartphones are moving the internet to the streets. Once mobilewebsites appear, mobile display advertising will explode.Another local trend is the growing use of social media. Increasingly more clientsare moving from outbound marketing to inbound marketing.Global vs. local playersAre the local players present on your local market strong enough to competewith the global giants? What advantages and strategies do they use in thisbattle?Global giants have money, local players have flexibility. Global giants come witha set of rules, and most of the time follow certain patterns when it comes toonline advertising. Local players can counterattack with intelligent projects thatcan be cheap but extremely effective. After all, the internet is a medium whichoffers a whole variety of possibilities.Market specificsWhat makes your local online market unique? Are there any specifics that makeit different from others in the CEE region?The market still has many free niches for e-commerce or niches without a clearleader in terms of volume of sales and brand perception (books, clothes,vouchers etc). The volume of online transactions has doubled every year from2004 to 2009.The best-selling products are from IT&C, fashion, entertainment,tourism (plane tickets and package holidays). Hi5 is still the largest socialnetworking site in the country but Facebook is quickly growing (currently1,500,000 users) and will probably overtake Hi5 (2,500,000 users) this year.Twitter only has 30,000 users.The Romanian market has more digital agencies than online success businesses.There are several large investors like NCH and Naspers but they are only activein online media and services like job sites or second hand car sites. There havebeen no major investors in e-commerce and research so far. Do you CEE? Romania
    • Russia 40.96m internet users1. MAINPLAYERS_1931.1. Top10websitesbyreach_1931.2. Top10websitesbyaveragetimespentperuser_1941.3. Topportals_1951.4. Social networks_1961.5. Onlineclassifiedadsbyreach_1971.6. Topfinancesitesbyreach_1982. ONLINEAUDIENCE_1983. TOOLS_2003.1. Browsers_2003.2. Operatingsystems_2013.3. Search engines_2013.4. Screen resolutions_2013.5. Mobiledevices_2024. BRANCHORGANIZATIONS_2025. ADVERTISINGNETWORKS_2036. OPINIONSFROMTHEMARKET_204
    • 193 1. MAIN PLAYERS 1.1. TOP 10 WEBSITES BY REACH WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH USERS VIEWS USER USER 1 Yandex horizontal portal 33 990 064 6 157 314 817 181 05:36:42 83% 2 Mail horizontal portal 31 835 999 9 711 805 546 305 06:35:34 78% 3 vkontakte.ru social network 23 099 316 41 925 538 754 1815 17:11:46 56% 4 Google search engine 18 739 727 1 194 681 324 64 01:29:29 46% 5 odnoklassniki.ru social network 17 925 656 3 383 276 223 189 03:45:18 44% 6 wikipedia.org online encyclopedia 14 240 047 156 275 754 11 00:17:44 35% 7 Rambler horizontal portal 13 520 218 1 020 410 546 75 01:34:30 33% 8 mozilla.com Corporate website 11 881 588 61 423 784 5 00:12:45 29% 9 marketgid.com e-shop catalogue 10 401 793 63 321 810 6 00:22:35 25% 10 microsoft.com corporate website 10 039 073 70 266 850 7 00:07:17 25% Table 1 Top 10 websites in Russia by reach level (gemiusAudience, March 2010)The division into three groups, and amounted to 83% in Marchas observed in 2009, is gradually 2010. Due to this domination ofdiminishing. A year ago, the first domestic leaders, there is not muchgroup had a reach of around 70% room left for Google, which reachesand included the websites Yandex 46% of the audience. Moreover, theand Mail; the second group’s reach global giant lost almost 2 percentageoscillated around the 40% mark and points last year. The sole field whereincluded Odnoklassniki, Google, Google manages to outreach its localRambler and Vkontakte and the third competitors is with online videos,group, which included Wikipedia, i.e. youtube.com, the Google-ownedMozilla, Marketgid and Microsoft with service. It outperforms the analogousa reach around 25% of the Russian platforms of Yandex and Mail in termsaudience. In 2010, apart from Yandex of reach.and Mail, which consistently lead themarket, the majority of other players Mail.ru, the major rival of both Yandexshifted their positions. However, and Google, is a horizontal portalduring the last year there was no new acquired by Digital Sky Technologies.entry in the top 10 ranking. The company is said to control significant share of the page viewsYandex.ru, a local search engine generated on the whole Runet mostlyand horizontal portal, dominates via Mail, Odnoklassniki and Vkontakte.the market. Since last year, its reach Moreover, it owns 5% of thegrew by almost 5 percentage points worldwide giant Facebook and also Do you CEE? Russia
    • 194has some shares in the social network increased by 6 percentage points sincegames developer Zynga. Despite the last year. It is now in 6th place in thepower of DST behind Mail.ru, ranking.the service is still unable to regainthe leading position in the ranking The next position in the ranking wasand catch up with Yandex. Although taken by Rambler, a horizontal portalits reach increased by almost which at the beginning of 2009 was4 percentage points compared to among the top 5 players on thelast year, the growth of Yandex was market, but since May 2009 has been1 percentage point higher. gradually losing ground, ending up with a reach of 33% in March 2010.The service that recorded the highestincrease (more than 10 percentage As it was last year, 9th place waspoints) over the past year was the taken by marketgid.com, an e-shopsocial networking site Vkontakte. catalogue, price comparison serviceWith a result of 56%, it now takes third and advertising centre. Although theplace in the reach ranking. At the same service gathered more than 2,000,000time, its main rival, Odnoklassniki.ru, users last year, its reach remainedis stagnating and its reach has stable at 25%.decreased by 1 percentage point fromMarch 2009. Competition between 8th place was taken by mozilla.com.these two social networking websites Another global service, microsoft.com,is quite evident, despite the fact that came in 10th.DST has a controlling interest in both.The second most dynamic growth wasrecorded by Wikipedia, whose reach 1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH REAL USERS USER PER USER 1 vkontakte.ru 23 099 316 1815 17:11:46 56% 2 Mail 31 835 999 305 06:35:34 78% 3 Yandex 33 990 064 181 05:36:42 83% 4 odnoklassniki.ru 17 925 656 189 03:45:18 44% 5 fotostrana.ru 4 163 547 137 02:48:30 10% 6 loveplanet.ru 2 701 523 159 02:07:50 7% 7 dating.ru 858 401 160 01:41:19 2% 8 Rambler 13 520 218 75 01:34:30 33% 9 rbc.ru 8 214 709 25 01:31:50 20% 10 Google 18 739 727 64 01:29:29 46% Table 2 Top 10 websites in Russia by average time spent per user (gemiusAudience, March 2010)Do you CEE? Russia
    • 195When taking into consideration ranking Social networking websites areby average time per user, the leading over-represented in the top rankingposition is taken by Vkontakte.ru by average time per user, wherewith a clear result exceeding 17 hours half of the services belong to thismonthly, giving each user more than category. Apart from Vkontakte andhalf an hour daily. Such a high score Odnoklassniki we also find Fotostrana,is partly due to the applications another social networking website,available on this service as well and the dating services loveplanet.ruas the large amount of streaming and dating.ru.audio and video content availablefor network users. Streaming content Rambler.ru, a horizontal portal (8th)is considered one of the major traffic and RBC.ru, a business portal (9th) aredrivers for Vkontakte.ru. the next two sites in the ranking. Last place is taken by Google with a resultThe second player in the ranking, Mail.ru, of 1 hour and 29 minutes, which ishas an incredible 11 hours less than almost 1 hour less than the previousthe leader. However, Mail outranks its year.main rival Yandex by almost one hour.4th place is taken by Odnoklassniki.ru,but compared to last year its result islower by two hours. 1.3. TOP PORTALS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 Yandex 33 990 064 181 05:36:42 83% 2 Mail 31 835 999 305 06:35:34 78% 3 Rambler 13 520 218 75 01:34:30 33% 4 rbc.ru 8 214 709 25 01:31:50 20% 5 qip.ru 3 270 639 17 00:39:30 8% Table 3 Top 5 portals in Russia by reach level (gemiusAudience March 2010)The leaders among horizontal portals outside the domestic internet. Theare services that dominate the whole company also runs a horizontal portalRussian online market: Yandex and providing a wide range of additionalMail. The first was founded in 1997 services including maps, trafficand evolved into the largest Russian information, images, a news and blogsearch engine providing its users with search as well as a spam-free email.a targeted web search and informationretrieval services as well as an option Yandex’s main rival is Mail.ru, theof limiting searches only to websites former market leader, which after Do you CEE? Russia
    • 196losing its position in September by Digital Sky Technologies it is likely2008 cannot catch up with Yandex. that the third most popular messengerOn average Mail has around on the Russian market will be mergeda 5-percentage-point worse result with this platform.than Yandex each month. Mail wascreated in 1998 as an e-mail web The third force among horizontalservice with an intention to be sold to portals is Rambler, reaching 33%western companies. However, after of the Russian audience. However,temporary open access for Russian nowadays it is not very successful andusers, it grew in popularity. After a few is gradually losing its market sharemergers and acquisitions, it is now (a loss of 11 percentage pointsowned by Digital Sky Technologies. compared to last year) and the interestIt provides a wide spectrum of online of users.services such as the social networkingwebsite moimir@mail.ru; a portal for In contrast, 4th place is taken byparents expecting a child kids@mail.ru; the RBC.ru business portal, whichmobile services mobile@mail.ru; reach grew by 8 percentage pointsa women’s glossy online magazine compared to last year. It belongs toledi@mail.ru; a payment system the RBC media group which also ownsdengi@mail.ru with new capabilities a dating network, messenger andallowing users to access their online payment system as well as theelectronic money as well as many website in 5th place, qip.ru, which wasother services. Mail also runs the created as a default starting page forinstant messaging service Mail.Ru users who had installed QIP as instantAgent, however after purchase of ICQ messenger. 1.4. SOCIAL NETWORKS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 vkontakte.ru 23 099 316 1815 17:11:46 56% 2 mail.ru - MoiMir 18 925 661 142 03:40:50 46% 3 odnoklassniki.ru 17 925 656 189 03:45:18 44% 4 moikrug.ru 1 968 640 5 00:03:59 5% 5 facebook.com 1 939 727 39 00:24:24 5% Table 4 Top 5 social networks in Russia by reach level (gemiusAudience, March 2010)The Russian social networking market mainly caused by the implementationsaw great changes last year. The of paid services which discouragedformer leader Odnoklassniki, the users. Even the offline ad campaignslocal version of classmates.com, lost run by this portal did not helpits place in favor of vkontakte.ru, the and during last year its reach fell byRussian Facebook clone. This loss was 1 percentage point, while VkontakteDo you CEE? Russia
    • 197grew by 10 percentage points. Its cross-linking and adverting with othersuccess may be partly attributed to applications. MoiMir became the firstthe fact that it is free and provides the project in RuNet to offer applicationmajority of the functions also available developers such functionalities.on Facebook such as applications,groups as well as a great amount of What is characteristic aboutaudio and video streaming content the Russian market is the pooravailable for network users. Streaming performance of Facebook, whichcontent is considered one of the neither gained a high reach level (5%),major traffic drivers for vkontakte.ru nor grew dynamically (3 percentage(even including the Vkontake torrent points year on year), while in sometracker). The second force among other countries in the CEE region inthe social networking websites is 2009 it made it to the top 10 reachMoiMir, owned by Mail.ru. It also rankings.grew over the past year and its reachincreased by 10 percentage points.Such a dynamic increase was partlythe result of several strategic changesin the rules for application developers.Now they can use links to externalresources, so they have additionalopportunities to make money through 1.5. ONLINE CLASSIFIED ADS BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 avito.ru 6 020 044 20 00:18:24 15% 2 mail.ru - avto 4 749 039 12 00:17:10 12% 3 mail.ru - job 4 317 592 7 00:08:24 11% Table 5 Top 3 online classified ads in Russia by reach level (gemiusAudience March 2010)The most popular classifieds service where auto.mail.ru is a great dealin Russia is avito.ru, owned by more engaging. The average timeContact East holding whose largest spent on this website per user, pershareholder is the investment banking month exceeds the job service byconcern Kinnevik. It was launched in almost 9 hours.2007 and is a leading multi categoryclassified ads service. The other twoservices belong to mail.ru and are thesubdomains of this horizontal portal.While the reach of both services isalmost equal, a huge discrepancy canbe observed in terms of user activity, Do you CEE? Russia
    • 198 1.6. TOP FINANCE SITES BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 banki.ru 692 380 14 00:16:21 2% 2 quote.ru 373 093 19 01:06:36 1% Table 6 Top 2 finance sites in Russia by reach level (gemiusAudience, March 2010)The most popular finance service amounts to only 2%. Second place ismeasured in the gemiusAudience taken by the quote.ru vertical portalstudy is banki.ru. It was launched run by RBC, which has 1% of thein 2005 and aimed to establish Russian online audience. However, itsa permanent dialogue between users are highly engaged in the sitebanks and their customers. It began and devote an average of over 1 houras a regular forum but is now per user on this website monthly.a ‘hotline’, where major Russian bankscommunicate with their customers.However, the service does notattract a wide audience and its reach 2. ONLINE AUDIENCE Males dominate the Russian As far as the education structureonline market and account for is concerned, users with a higher52%, which is characteristic of level of education (38%) as well asless developed markets. However, vocational training (32%) dominatecompared to last year, the gap is the market. However, it should begradually diminishing and the share of highlighted that only users overfemales in the online population grew 18 years old were taken into accountby 1 percentage point. in the study. Moreover, as shown on the next chart, a large amount Runet is still dominated by young (21%) of Russian internet users live inpeople aged 18-34, who account Moscow, where the amount of wellfor 61% of the online population. educated people is proportionallyHowever, the Russian online higher than in the wider population.population is getting older. Comparedto last year the amount of young Majority of Russian internet usersinternet users 18-34 decreased by (34%) live in cities with less inhabitantsone percentage point in favor of the than 500,000. However, the Russianoldest group aged 55+, whose share online market is still capital-orientedincreased by 2 percentage points. and the second most important groupDo you CEE? Russia
    • 200constitutes Moscow’s inhabitants 9%. However, except the first two(21%). The second most important occupation categories, the occupationcity is St. Petersburg, where 7% of the structure of Russian internetRussian internet audience lives. population is rather flat. Students and Specialist/Chief Specialist are the two mostrepresented groups among Russianinternet users. Together they accountfor 30% of the online population.The Middle level manager/Projectmanager category comes third with 3. TOOLS 3.1. BROWSERSChart 1 Top browsers in Russia by share of page views generated by internet users who visit Russianwebsites using gemiusTraffic (gemiusTraffic study 1Q 2008 – 1Q 2010)3.1. Browsers market share growing by almost 3 percentage points within the last year.In 2009 the crisis of Microsoft’sbrowser was gradually deepening and 3.2. Operating systemssince last year its reach has decreasedby 13 percentage points. Although it Windows XP is the most popularstill leads the market, the difference operating system in Russia. However,between its main rivals is diminishing. its popularity is gradually decreasing.During the same period, Opera as well In the first quarter of 2010 74%as Firefox have been growing and in of page views generated in thethe first quarter of 2010 gained 29% gemiusTraffic study were made byand 25% of the market respectively. users of this system, compared toWhat is more, Google’s Chrome is 88% two years ago. Windows XP isgradually gaining popularity with its being replaced by Microsoft’s latestDo you CEE? Russia
    • 201operating system, Windows 7, whichin contrast to its older sister, Windows 3.2. OPERATING SYSTEMSVista, gained more users and 9 monthsafter its market debut now has 9% ofthe market.3.3. Search enginesThe Russian search engines marketis unique compared to other CEEmarkets, where Google dominates.The real power on this market belongsto the domestic player, Yandex. In Chart 2 Top operating systems in Russia by share of page views generated by internet users who visitthe first quarter of 2010 its share Russian websites using gemiusTraffic (gemiusTraffic study 1Q 2008 – 1Q 2010)accounted for 67% of the market, andthis figure is still increasing. During thesame time, apart from a small growthperiod in 2008, Google has been losingits market position since the beginning 3.3. SEARCH ENGINESof 2009, with a final result of 24%.3.4. Screen resolutionsThe most popular screen resolutionson the Russian online market usedto be 1024 x 768, however in thefirst quarter of 2009 it was overtakenby 1280 x 1024, which now leadsthe market with a share of 27%. Allother screen resolutions are of lesssignificance. Chart 3 Top search engines in Russia by share of visits made by internet users who visit Russian webs- ites using gemiusTraffic (gemiusTraffic study 1Q 2008 – 1Q 2010)3.5. Mobile devices - modelsThe Russian mobile devices market isunique compared to the CEE region 3.4. SCREEN RESOLUTIONSwhich is dominated by the iPhone.According to the gemiusTraffic study,the most popular mobile device usedto access the web in Russia is Nokia6300, which in July was responsiblefor 8% of page views generatedby mobile devices on the averagewebsite. However, a wide variety ofmobile devices can be found on thismarket and the five most populartools constitute only 24%. TheiPhone’s share accounted for 6% of the Chart 4 Screen resolutions in Russia by share of page views generated by internet users who visit Russian websites using gemiusTraffic (gemiusTraffic study 1Q 2008 – 1Q 2010)market and fell by 1 percentage point Do you CEE? Russia
    • 202 3.5. MOBILE DEVICESChart 5 Top 5 mobile devices in Russia by the website-averaged percentage share of page viewsgenerated by internet users from Russia, who visit Russian websites using gemiusTraffic(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10**to 2010-07-25compared to May 2010. However, thepopularity of the iPad is dynamicallygrowing and the share gained by thisdevice increased by 1 percentagepoint over the past two months. 4. BRANCH ORGANIZATIONSROCIT ISDEFwww.rocit.ru www.isdef.ruDescription: ROCIT is a public Description: ISDEF is an associationorganization whose primary mission of e-shops. The primary aims of theis to facilitate the inclusion of Russia association are to support softwarein the global internet community. It development and promotion; towas created to make the interaction facilitate the growth and developmentbetween suppliers and consumers of the e-commerce industry in theof information more effective and to area of software and to strengthen theestablish an independent advisory position of Russian developers in theservice. ROCIT was established in international software market. ISDEF1996. was established in 2002.Members: Private members and public Members: e-shops (e.g. Softkey,associations. Alawar, Umisoft, Elcomsoft, Bitrix).Do you CEE? Russia
    • 2035. ADVERTISING NETWORKS GENERAL CONTACT INFORMATION FULL NAME HOMEPAGE URL ADDRESS MAIN OFFICE CONTACT ADDRESS Phone: +7-495-956-90-07 2 Gamsonovsky sidestr., bldg.8,1 Begun.ru begun.ru Fax: +7-495-956-90-07 Moscow, Russia Email: pr@begun.ru Phone: +7-495-739-70-00 16, Leo Tolstoy St., Moscow,2 Yandex.ru yandex.ru Fax: +7-495-739-23-32 119021, Russia Email: pr@yandex-team.ru 1 Arkhangelsky sidestr., Phone: +7-495-514-21-423 RORER rorer.ru office 605, Moscow, Russia Fax: +7-495-514-21-42 7 Balchug st., Moscow, Phone: +7-495-644-14-004 Google google.ru Russia Fax: +7-495-644-14-01 3604 B.Novodmitrovskaya, Phone: +7-495-543-61-035 TBN tbn.ru Moscow, Russia Email: adv@agava.com 27 B, Kamennoostrovskiy str, Phone: +7-812-498-02-496 RLE rle.ru bldg 3H, St. Petersburg, Russia Email: sales@rle.ru 24, entrance 2, office 8, Phone: +7-495-981-44-007 Soloway soloway.ru Radio str., Moscow, Russia Email: sales@soloway.ru 2 Gamsonovsky sidestr., Phone: +7-495-988-09-948 TradeDoubler tradedoubler.ru bldg.1, Moscow, Russia Fax: +7-495-988-09-94 16, Krasnoproletarskaya st,9 iConText icontext.ru Phone: +7-499-929-85-95 Moscow, Russia 24, office 703, Radio str., Phone: +7-495-980-71-1010 Blondinka.Ru blondinka.ru Moscow, Russia Fax: +7-495-980-71-10 arbomedia.ru, 6, proezd Serebryakova,11 ARBOmedia Phone: +7-495-979-27-26 v2media.ru Moscow, Russia 16, B.Monetnaya,12 Kavanga kavanga.ru office center #1, office 17, Phone: +7-495-66-37-12 St. Petersburg, Russia Do you CEE? Russia
    • 204 6. OPINIONS FROM THE MARKETAndrey SebrantProduct Marketing Director, YandexDominating trendsWhat are the recent trends on your local online market? What areas are expected todevelop most in the future?Video and SMM is on the rise, but are still small in volume. We can expect theirgrowth rates will be well above average for online advertising. More sophisticatedtargeting will be used in traditional display and search advertising.Global vs. local playersAre the local players present on your local market strong enough to compete withthe global giants? What advantages and strategies do they use in this battle?Local players are extremely strong, their advantage is the large audience and largecustomer base. Their products and technologies meet all expectations of the clients,therefore clients remain loyal even if they use global services.Market specificsWhat makes your local online market unique? Are there any specifics that make itdifferent from others in the CEE region?In all the market segments of internet services (search, mail, social networks), thelocal players are more popular than the global ones. Long term trends do not showany great successes of the global players when competing with the local ones. TheRussian market is therefore much more self-sufficient than other markets, despitethe fact that it is open to international competition.Alexander KimHead of Interaction for Group M RussiaOnline advertising marketWhat are the opportunities and obstacles for the Russian online advertising market?Russian advertising spending in measured media is expected to grow by nearly16%, to 7.4 billion USD in 2010 compared to 2009, when spending was down 42.3%according to full year data. At the same time, internet spending (both in displayand contextual advertising) is showing consistent growth of nearly 32.5% in 2010.Do you CEE? Russia
    • 205We forecast contextual spending will advance 40% (USD 497 million) and display29.1% (USD 315 million) in 2010. Investment through the internet has benefitedfrom its more measurable and potentially cost efficient status. In a long run, onlineadvertising in Russia is also seen to be taking large sums of money from othermeasurable media, especially TV and Print. According to the GroupM forecast,online spending share is expected to grow up to 22% in 2020 – compared to 11%in 2010.Global vs. local playersAre your local market players strong enough to compete with the global giants?What advantages and strategies do they have in this battle?Local Russian sites are holding their top positions and seem strongly resistant tothe global challenge that is coming from Facebook, Google, Yahoo, MSN, etc. Thereis a significant market question if global sites can realistically aspire to leadershipin Russia in such areas as search and social. Some local players are inclined tobelieve this scenario could eventually happen but not in the short term, and thatit would require a long and “exhausting war”, where the final winner will finallybe determined by the online consumer. To earn a position on the market, theseglobal players will have to innovate and adapt, thus helping to shape and drivea developing interaction media scene. So as we look ahead, we see no slowdown inthe pace of innovation of mobile, of ad networks, on-line video, devices, platforms,applications or the myriad of other applications of data. Do you CEE? Russia
    • Slovakia 2.28m internet users1. MAINPLAYERS_2071.1. Top10websitesbyreach_2071.2. Top10websitesbyaveragetimespentperuser_2081.3. Topportals_2091.4. Social networks_2101.5. Onlineclassifiedadsbyreach_2111.6. Topfinancesitesbyreach_2112. ONLINEAUDIENCE_2123. TOOLS_2143.1. Browsers_2143.2. Operatingsystems_2143.3. Search engines_2153.4. Screen resolutions_2153.5. Mobiledevices_2154. BRANCHORGANIZATIONS_2165. ADVERTISINGNETWORKS_2166. OPINIONSFROMTHEMARKET_217
    • 207 1. MAIN PLAYERS 1.1. TOP 10 WEBSITES BY REACH WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH USERS VIEWS USER USER 1 azet.sk horizontal portal 1 541 206 1 462 631 868 949 12:40:31 67% 2 zoznam.sk horizontal portal 1 384 194 161 269 044 117 02:04:26 60% 3 sme.sk horizontal portal 1 221 599 69 127 588 57 01:29:52 53% 4 atlas.sk horizontal portal 1 209 063 45 006 974 37 00:33:40 52% 5 topky.sk news service 821 863 48 711 826 59 01:14:37 36% 6 aktuality.sk news service 755 017 29 510 473 39 00:48:13 33% 7 centrum.sk horizontal portal 746 336 95 415 370 128 02:21:04 32% 8 pravda.sk news service 635 330 27 147 096 43 00:54:21 28% 9 cas.sk news service 544 884 33 905 579 62 01:04:20 24% 10 markiza.sk news service 530 208 15 431 631 29 00:37:21 23% Table 1 Top 10 websites in Slovakia by reach level (AIMmonitor - AIM - Mediaresearch & Gemius, March 2010)The Slovak internet market remained and keeps a constant (5-6 percentagestable last year and there was no new points) distance over Zoznam.entry in the top ten ranking by reach.Like last year, this market is dominated Sme.sk, the largest news portal inby horizontal portals and news Slovakia has recently developed by theservices. No other category is present largest margin. Compared to Marchamong the ten most popular websites. 2009, its reach grew by 4 percentage points and since January 2010 itThe two unquestionable leaders on remains in third position in the reachthe Slovak market are found in the ranking. Sme.sk is an online versionhorizontal portal category. Like last of the influential daily newspaper inyear, first place was taken by Azet. Slovakia run by the Pettit Press a.sHowever, its share decreased by publishing house which belongs to the1 percentage point compared to March Rheinische Post Media Group.2009. Second place is taken by Zoznam,which belongs to Slovak Telekom a.s. One of SME’s strongest rivals is theThe portal used to lead the market offline Pravda, which also has anbut after being overtaken by its main online version that significantly grewrival, Azet, it has never regained in size within the last year. Althoughfirst place. Moreover, its reach has not as dynamic as in the case ofdecreased by 2 percentage points year sme.sk, Pravda’s reach has increasedon year. Azet.sk, after defeating its by 2 percentage points compared torival, systematically leads the market last year. Do you CEE? Slovakia
    • 208Before January 2010, third position Cas.sk is an online version of thewas taken by atlas.sk, a horizontal most popular daily tabloid newspaperportal owned by Centrum Holdings, in Slovakia run by Ringier AG, anwhich also runs centrum.sk, another international media company. Despiteportal which took seventh position efforts taken to beat its main rival,in the ranking. In March 2010 these topky.sk, it constantly stands aroundservices achieved reach of 53% and 9th place with a reach exceeding32%, respectively. These results were 20%. However, the service mayrelatively stable during the last year. be placed among the players that attained the most significant growth:Fifth place in the ranking is taken by its reach grew by 2 percentage pointsthe topky.sk, a regular news service compared to March 2009.owned by Zoznam s.r.o. Althoughthe number of its users increased Last place, with a result of 23%, isby more than 73,000 compared to taken by markiza.sk, a news serviceMarch 2009, the service’s reach belonging to the largest televisionremained at the same level of 36%. station in Slovakia owned by Central European Media Enterprises (CME).The next place is taken by aktuality.sk,the news service belonging toAzet.sk. Its reach increased by1 percentage point year on year andmoved up from 7th to 6th place inthe ranking. 1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER WEBSITE’S NUMBER OF PAGE VIEWS AVERAGE TIME REACH CATEGORY REAL USERS PER USER PER USER horizontal 1 azet.sk 1 541 206 949 12:40:31 67% portal horizontal 2 centrum.sk 746 336 128 02:21:04 32% portal horizontal 3 zoznam.sk 1 384 194 117 02:04:26 60% portal 4 autobazar.eu classifieds 424 598 153 02:00:14 18% horizontal 5 sme.sk 1 221 599 57 01:29:52 53% portal 6 topky.sk news service 821 863 59 01:14:37 36% 7 f1.sk sport service 43 365 51 01:10:41 2% 8 ephoto.sk photo sharing 37 996 68 01:04:21 2% 9 cas.sk news service 544 884 62 01:04:20 24% 10 profutbal.sk sport service 53 186 50 01:00:30 2% Table 2 Top 10 websites in Slovakia by average time spent per user (AIMmonitor - AIM - Mediaresearch & Gemius, March 2010)Do you CEE? Slovakia
    • 209Azet.sk leads the market when ranking per user of 1 hour 11 minutes.by average time per user is concerned, It belongs to Point Network, whichgaining a result exceeding 12 hours. also owns other sport websites suchHowever, it is mainly attributed to as profutbal.sk and hokej.sk.Pokec, the social networking websitewhich is a part of the azet.sk node. Apart from horizontal portals andCompared to March 2009, Azet lost news services that are found amongaround 5.5 hours, however, its lead the leaders, in the ranking by averageover other players is not under threat. time per user there are also other websites categories. For example,Apart from azet.sk, the other websites ephoto.sk, dedicated to photographydo not achieve any spectacular results with its own blogs and galleries, takeswith only centrum.sk and zoznam.sk, 8th position with a result of over onepopular horizontal portals, and hour.autobazar.eu, an online databaseof used cars, register a time ofapproximately 2 hours.F1.sk the best news service dedicatedto Formula 1 grand prix races comesin 7th, with an average time spent 1.3. TOP PORTALS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 azet.sk 1 541 206 949 12:40:31 67% 2 zoznam.sk 1 384 194 117 02:04:26 60% 3 sme.sk 1 221 599 57 01:29:52 53% 4 atlas.sk 1 209 063 37 00:33:40 52% 5 centrum.sk 746 336 128 02:21:04 32% Table 3 Top 5 portals in Slovakia by reach level (AIMmonitor - AIM - Mediaresearch & Gemius, March 2010)Portals and news services account (video hosting), minihry.sk (casualfor the majority of the top ten Slovak games) as well as others.websites. All players of this categoryoccupy the leading places in the Second place is taken by zoznam.sk,general rankings. The most important which is awaiting possible changes inone is azet.sk, the largest horizontal order to reclaim first place. The serviceportal with a strong social networking made some effort to launch a newscomponent (pokec.sk) and other service for women, feminity.zoznam.sk,subservices such as zoznamka.sk however, this has not helped it to(dating community), videoalbumy.sk reclaim first place. Do you CEE? Slovakia
    • 210Among the horizontal portals, two Sme.sk which used to be the mostplayers, i.e. altas.sk and centrum.sk, visited online news service, afterbelong to the same owner, Centrum a number of acquisitions that tookHoldings. The first is more popular place last year can now be definedwith a reach of 52%, whereas as horizontal portal. The servicecentrum.sk reaches 32% of the developed very dynamically last yearaudience. However, the latter and managed to gain more thandominates in terms of average time 180,000 users from March 2009 toper visitor monthly with a figure March 2010.exceeding two hours. It cooperateswith ICQ on the Slovakian market.Both services have their counterpartson the Czech market. 1.4. SOCIAL NETWORKS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 pokec.sk 1 103 701 1126 14:03:25 48% sme.sk| 2 Citatelsky obsah| 429 204 11 00:19:52 19% blog.sme.sk 3 birdz.sk 234 449 19 00:15:33 10% 4 zoznamka.sk 95 385 36 00:21:12 4% etrend.sk| 5 55 327 5 00:07:39 2% blogy.etrend.sk Table 4 Top 5 social networking websites in Slovakia by reach level (AIMmonitor - AIM - Mediaresearch & Gemius, March 2010)First place among social networking Another player is birdz.sk (owned bywebsites monitored in the study was Perex a.s. with its main title Pravda.sk),taken by the Azet-owned service, a community portal dedicated topokec.sk, which reaches 48% of the a young audience. It systematicallySlovak online audience. Though it gains a reach of 10%.has changed its layout to resembleFacebook, the service is stagnating. Another Azet-owned website,The lack of further development is zoznamka.sk, can be found amongpartly caused by the strong entrance the social networking services. It isof Facebook on the Slovakian market, an online dating website with a reachwhich took place in 2009. level accounting for 4% of the online audience. Last place is taken by theThe second force in this category is blog section of etrend.sk, a horizontala blog site belonging to sme.sk. It has portal gaining a reach level of 16%.a stable position and a result of 19%.Do you CEE? Slovakia
    • 211 1.5. ONLINE CLASSIFIED ADS BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 profesia.sk 478 526 86 01:00:29 21% 2 autobazar.eu 424 598 153 02:00:14 18% 3 najnakup.sk 358 950 13 00:11:36 16% Table 5 Top 3 online classified ads in Slovakia by reach level (AIMmonitor - AIM - Mediaresearch & Gemius, March 2010)Profesia.sk dominates among the versions. Najnakup.sk, a service whichclassifieds services with a reach of allows users to compare online shops21%. It is the largest job portal. The offers, takes last place among thesecond is autobazar.eu, an auto most popular classified ads websitesclassifieds service, which significantly with a reach of 16%.outperforms others in terms ofaverage time spent per user witha result of 2 hours. However, whenreach is taken into account, bothservices are undergoing stagnation,although according to local experts,the general trend is that job classifiedads are moving from print to online 1.6. TOP FINANCE SITES BY REACH NUMBER OF PAGE VIEWS PER AVERAGE TIME PER REACH REAL USERS USER USER 1 ekonomika.sme.sk 275 646 13 00:25:44 12% oPeniazoch. 2 145 604 11 00:17:18 6% zoznam.sk 3 peniaze.pravda.sk 98 341 5 00:06:59 4% Table 6 Top 3 finance sites in Slovakia by reach level (AIMmonitor - AIM - Mediaresearch & Gemius, March 2010)The most popular websites belonging services. The unquestionable leaderto the finance category are sections of on this market is ekonomika.sme.skthe popular horizontal portals or news with a reach of 12%. Second place Do you CEE? Slovakia
    • 212with 6 percentages points less thanthe leader, is oPeniazoch.zoznam.sk,the finance section of zoznam.sk.Compared to last year, the numberof its users decreased by almost80,000. The top three is propped upby peniaze.pravda.sk reaching 4% ofSlovak online audience. 2. ONLINE AUDIENCE The gender structure of the The largest share of SlovakianSlovakian internet population is internet users live in cities betweenbalanced, with a slight dominance of 20,000 – 99,999 inhabitants andmales (51%), which is one percentage these groups comprise 29% of thepoint less than a year ago. Men can online population. The second groupalso be found more often among lives in towns with 1,000 – 4,999internet users over the age of inhabitants.25, apart from age group 45-54,where the gender share is equal Almost every second (49%)and accounts for 6% of the online Slovakian internet user is notpopulation. employed, which is the result of the significant number of young people Young people constitute a in the Slovakian online population.majority in the Slovakian online Internet users working in the officespopulation. Internet users under are the second most representedthe age of 35 account for 61% of group (12%), followed by qualifiedthe population, however, Slovakian manual workers (11%) and highlyonline society is growing older. The qualified specialists (8%). The othershare attained by the 14-34 age occupation categories gain sharesgroup is now by 3 percentage points oscillating between 1% - 5%.lower than in March 2009. This loss isin favor of the oldest group (over 55)which comprised 8% in March 2010,compared to 6% a year ago. The majority of Slovakianinternet users have secondaryeducation and this group comprises63% of the online population.However, 23% of them do not havea school leaving exam. The highesteducated group, who havea university degree, increased by1 percentage point compared to lastyear.Do you CEE? Slovakia
    • 214 3. TOOLS 3.1. BROWSERSChart 1 Top browsers in Slovakia by share of page views generated by internet users who visit Slova-kian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)3.1. Browsers 3.2. Operating systemsSince the fourth quarter of 2008, Windows XP constantly dominatesFirefox dominates the Slovakian the operating systems used bybrowser market. However, gaining Slovakian users, however its share isfirst place was not followed by decreasing. It lost almost 11 percentdynamic growth and both Firefox points in the first quarter of 2010and MISE have been gradually losing compared to the first quarter of 2009.their share in favor of Google’s During the same period Windowsnew product, Chrome, which since Vista stagnated, gaining a stablethe beginning of 2009 grew by result of 18% of page views generated7 percentage points. During the same by internet users who visit Slovakianperiod, Opera’s market share remains websites using gemiusTraffic. Likestable, oscillating around 15%. in other markets, the share of 3.2. OPERATING SYSTEMSChart 2 Top operating systems in Slovakia by share of page views generated by internet users whovisit Slovakian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)Do you CEE? Slovakia
    • 215Microsoft’s latest product, Windows7, is increasing by the largest amount 3.3. SEARCH ENGINESi.e. by 8 percentage points year onyear.3.3. Search enginesGoogle is undoubtedly the leader onthe Slovakian search engine marketand its share is still increasing. In thefirst quarter of 2010, 99% of visitswhich began with gemiusTraffic-participating websites via searchengines, started with Google. Chart 3 Top search engines in Slovakia by share of page views generated by internet users who visit Slovakian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)3.4. Screen resolutionsThe most popular screen resolution 3.4. SCREEN RESOLUTIONS1024 x 768, which used to haveover 60% of the market share at thebeginning of 2007, is now decreasing.In the first quarter of 2010 only 28%of page views generated by internetusers who visit Slovakian websitesusing gemiusTraffic were made byusers with monitors of this screenresolution.3.5. Mobile devices - models Chart 4 Screen resolutions in Slovakia by share of page views generated by internet users who visitAccording to the gemiusTraffic study, Slovakian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)the most popular mobile deviceused to access the web in Slovakiais the iPhone, which in July was 3.5. MOBILE DEVICESresponsible for 27% of page viewsgenerated by mobile devices on theaverage website. However, comparedto May 2010 its share decreasedin July by 1.5 percentage points.Unlike other CEE markets, the iPadis not that popular in Slovakia andthe top 5 ranking is dominated byNokia devices, whose shares oscillatearound the 4-5% mark. Chart 5 Top 5 mobile devices in Slovakia by the website-averaged percentage share of page views generated by internet users form Slovakia who visit Slovakian websites using gemiusTraffic (gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10 **to 2010-07-25 Do you CEE? Slovakia
    • 216 4. BRANCH ORGANIZATIONSAIM – Association of Internet Media SLOVAKIA, LLC, NARKS-INFOSERVIS, Inc., Zoznam, LLC., PEREX, Inc., Petitwww.aimsr.sk Press, LLC, POINT NETWORK, LLC, Profesia, LLC, RINGIER SLOVAKIA,Description: The Association of Inc., Sanoma Magazines Slovakia,Internet Media is a partnership LLC, SITA Slovenská tlačová agentúra,of Slovakian companies operating Inc., SPOLOČNOSŤ 7 PLUS, LLC,in the Slovakian internet Travel.SK, LLC, TREND Holding, LLC.and advertising sector. Theestablishment of AIM came fromthe need to create a platform forinteraction of those operating inSlovakian internet advertising. TheAssociation aims to standardizethe ethical and legal rules forinternet advertising, support thedevelopment of the internet as anadvertising medium and encourageinternet professionalization.Members: Azet.sk, Inc., CentrumHoldings - ATLAS.SK, Inc., CentrumHoldings, Inc., CPress Media, LLC,Creative Solutions, LLC, ECOPRESS,Inc., Education, LLC, ETARGET SE- affiliate member, EXPRES MEDIA,LLC, Finance media, Inc., KONCEPT,LLC, MAC TV, LLC, MARKÍZA - 5. ADVERTISING NETWORKS GENERAL CONTACT INFORMATION FULL NAME HOMEPAGE URL MAIN OFFICE CONTACT ADDRESS ADDRESS Peter Štencl Kutuzovova 11, 1 Sitelement sitelement.sk Phone: +421-903-259-260 831 03 Bratislava Email: peter.stencl@silelement.sk Phone: +421-2-321-990-45 Vlárska 48/a, 2 web2media web2media.sk Fax: +421-2-207-189-15 831 01 Bratislava Email: info@web2media.skDo you CEE? Slovakia
    • 217 6. OPINIONS FROM THE MARKETBc. Martin KynclSales Manager & New Business, SiteElementOnline advertising marketWhat are the opportunities and obstacles for the online advertising market onyour local market?There are plenty of opportunities on the Slovakian local market. The mostcommon type of advertisement is the banner ad. We have also noticed intextand invideo ads coming onto this market. Another opportunity is predictivebehavioral targeting of all types of ad formats. An obstacle is outsourcedtechnology, which is relatively expensive.Global vs. local playersAre the local players present on your local market strong enough to competewith the global giants? What advantages and strategies do they use in thisbattle?Local players are strong. Solely Slovakian local players are the largest mediarepresentatives in Slovakia competing with foreign companies.The opportunity is that foreign companies have is their experience from othermarkets, verified technologies and larger budgets to invest in Slovakia. On theother hand, they cannot orientate themselves on the market as well as localcompanies. Do you CEE? Slovakia
    • Slovenia1.09minternet users 1. MAINPLAYERS_219 1.1. Top10websitesbyreach_219 1.2. Top10websitesbyaveragetimespentperuser_220 1.3. Topportals_221 1.4. Social networks_222 1.5. Onlineclassifiedadsbyreach_222 2. ONLINEAUDIENCE_223 3. TOOLS_225 3.1. Browsers_225 3.2. Operatingsystems_226 3.3. Search engines_226 3.4. Screen resolutions_227 3.5. Mobiledevices_227 4. BRANCHORGANIZATIONS_228 5. ADVERTISINGNETWORKS_228 6. OPINIONSFROMTHEMARKET_228
    • 219 1. MAIN PLAYERS 1.1. TOP 10 WEBSITES BY REACH WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH USERS VIEWS USER USER 1 24ur.com horizontal portal 658 705 110 611 008 168 06:27:22 55% 2 najdi.si search engine / horizontal portal 520 112 55 735 868 107 02:48:59 44% 3 siol.net horizontal portal 490 572 48 987 905 100 03:01:28 41% 4 rtvslo.si horizontal portal 445 388 39 388 972 88 02:58:22 37% 5 bolha.com classified ads / auctions 421 330 39 017 842 93 00:56:09 35% 6 itis.si telephone register 333 974 3 449 534 10 00:08:36 28% 7 zurnal24.si horizontal portal 320 472 33 109 562 103 01:45:46 27% 8 avto.net classified ads 318 230 97 440 460 306 02:58:12 27% 9 zadovoljna.si women portal 274 986 3 647 456 13 00:14:06 23% 10 sl.netlog.com social network 258 208 38 028 693 147 02:22:54 22% Table 1 Top 10 websites in Slovenia by reach level (Gemius/Valicon, gemiusAudience MOSS, March 2010)The Slovenian online market is largely Slovenian internet users. In Marchdominated by horizontal portals 2010, the first had a reach of 35%and their popularity is still growing. and the second gained 27%. Itis.si,According to Gemius/Valicon, the a telephone and companies directory,gemiusAudience MOSS study from came in 6th place in the top 10March 2010, the leader in the ranking ranking by reach level with 333, 974by reach level was 24ur.com. Over real users.the past twelve months its reach hasincreased by 8 percentage points Position 9 belonged to zadovoljna.si,(from 47%). The following three a portal dedicated to women.places were occupied by najdi.si, Evidence of its growing popularity issiol.net and rtvslo.si. All these the fact that according to the Gemius/horizontal portals are also significant Valicon, gemiusAudience MOSS studyplayers on the Slovenian online conducted in March 2010, comparedmarket; their reach levels amounted with 2009 its reach level has increasedto 44%, 41% and 37%, respectively. by 11 percentage points, i.e. fromAnother horizontal portal in the study, 12% to 23%. It publishes informationzurnal24.si, ranked seventh in March on fashion, beauty, fitness, etc.2010 and had 320,472 real users Moreover, it contains a special section(27%) who generated more than for men as well as a forum.33.1 million page views. The ranking was propped up byBolha.com and avto.net are two sl.netlog.com, a global socialclassified ads portals popular among networking service with a reach level Do you CEE? Slovenia
    • 220of 22%. Its members can create their in 20 languages and has millions ofown websites with blogs, photos, members across Europe, in Sloveniavideos, events, etc. and share them there are 258,208 members.with friends. It is currently available 1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH REAL USERS USER PER USER 1 24ur.com 658 705 168 06:27:22 55% 2 siol.net 490 572 100 03:01:28 41% 3 rtvslo.si 445 388 88 02:58:22 37% 4 avto.net 318 230 306 02:58:12 27% 5 najdi.si 520 112 107 02:48:59 44% 6 igre123.com 157 008 103 02:24:17 13% 7 sl.netlog.com 258 208 147 02:22:54 22% 8 ona-on.com 23 680 153 02:07:40 2% 9 nogomania.com 36 218 81 02:02:55 3% 10 finance.si 257 472 51 01:45:51 22% Table 2 Top 10 websites in Slovenia by average time spent per user (Gemius/Valicon, gemiusAudience MOSS, March 2010)The unquestionable leader on the spent 2 hours 58 minutes visiting theseSlovenian online market in terms websites. Only 10 minutes less wasof average time spent on the site spent online by the visitors of najdi.si,in March 2010 was 24ur.com. The another popular Slovenian horizontalaverage user of this popular horizontal portal and search engine.portal visited the website for 6 hoursand 27 minutes over a month. It was Around 2 hours 24 minutes was spentfollowed by three websites: siol.net, visiting igre123.com, a games portal.rtvslo.si and avto.net, with results of It is part of Popcom Ltd, a companyaround 3 hours. The first one, siol.net, that also owns the largest online videois one of the leading Slovenian internet community in Slovenia mojvideo.comportals, part of Planet 9, a Limited and photo service mojalbum.com.liability company within the Telekom Igre123.com offers its users freeSlovenia Group. In March 2010, its games and a forum. According to theaverage user spent there more than Gemius/Valicon, gemiusAudience3 hours. In the same period, users of MOSS study from March 2010, it hadrtvslo.si which is a multimedia portal a reach of 13%.of one of the national TV stations,RTV Slovenia, and also avto.net - an In the ranking there were 2 socialautomotive classified ads service, networking services: sl.netlog.comDo you CEE? Slovenia
    • 221(7th) and ona-on.com (8th). finance.si with a result of 1 hourUsers of the former service spent 46 minutes. It publishes all kinds ofalmost 2 hours 23 minutes online, financial and business news and iswhereas users of the latter 2 hours quite popular within the Slovenianand 8 minutes. Also visitors of online population: in March 2010nogomania.com, a portal dedicated its reach level amounted to 22%.to football fans, surfed this website Finance.si is a part of Swedish Bonnierfor over 2 hours in search of current Business Press.information on football events.The top 10 ranking by average timespent per user was propped up by 1.3. TOP PORTALS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 24ur.com 658 705 168 06:27:22 55% 2 najdi.si 520 112 107 02:48:59 44% 3 siol.net 490 572 100 03:01:28 41% 4 rtvslo.si 445 388 88 02:58:22 37% 5 zurnal24.si 320 472 103 01:45:46 27% Table 3 Top 5 portals in Slovenia by reach level (Gemius/Valicon, gemiusAudience MOSS, March 2010)Horizontal portals have a strong market in Slovenia was najdi.si,position on the Slovenian online the largest local search enginemarket. The unquestionable leader with a reach of 44%. It used to bein March 2010 was 24ur.com with the leader on the Slovenian onlinea reach level of 55%. It is dedicated market and even its current secondto all kinds of users and has the place in the ranking is under threatlargest commercial TV background. by siol.net (41%), another popularAs mentioned above, its popularity horizontal portal. It publishes currenthas been growing, so it comes as no local and world news, business andsurprise that the website is constantly sports information and much more.developing its multimedia content as Moreover, it offers the SiOL Serviceswell as opening new, special websites which include internet, TV andfor different kinds of content (health, telephony.women, gossip, amongst others). Rtvslo.si ranked fourth in the rankingAccording to the Gemius/Valicon, with a reach level of 37%. It is a typicalgemiusAudience MOSS study from horizontal portal with news dividedMarch 2010, the second most into sections: news, sports, culture,significant player on the portals entertainment and travel. Since it is Do you CEE? Slovenia
    • 222a RTV portal, it concentrates largely diverse subjects. In March 2010 it hadon developing its multimedia content. a reach level of 27%.The last place in the top 5 ranking wasoccupied by zurnal24.si, an onlineversion of the free daily newspaperdelivering current news on a range of 1.4. SOCIAL NETWORKS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 sl.netlog.com 258 208 147 02:22:54 22% 2 genspot.com 233 886 23 00:13:42 20% 3 ona-on.net 59 369 21 00:17:21 5% Table 4 Top 3 local social networking websites in Slovenia by reach level (Gemius/Valicon, gemiusAudience MOSS, March 2010)Social networks are relatively popular The ranking was propped up byamongst the Slovenian online audience. ona-on.net, a dating service dedicatedAmong the services included in the to adult internet users, reaching 5%Gemius/Valicon, gemiusAudience of the Slovenian online audience.MOSS study from March 2010, theleader was sl.netlog.com with a reachlevel of 22%. The service was followedby genspot.com with a reach levelonly 2 percentage points lower with233,886 real users. It is mainly a blogsite where users can additionallyupload their videos and photos or chatwith friends. 1.5. ONLINE CLASSIFIED ADS BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 bolha.com 421 330 93 00:56:09 35% 2 avto.net 318 230 306 02:58:12 27% 3 mojedelo.com 100 717 34 00:25:33 8% Table 5 Top 3 online classified ads in Slovenia by reach level (Gemius/Valicon, gemiusAudience MOSS, March 2010)Do you CEE? Slovenia
    • 223The Slovenian online population Valicon, gemiusAudience MOSS studyis especially fond of classified ads from March 2010, it had 318,230 realservices. The most popular, bolha.com, users.had a reach level of 35% in March2010 and took 5th place in the general Mojedelo.com is a leading Slovenianranking by reach. Its announcements employment portal dedicated toare classified into four main people searching for a job andcategories: auto-moto, real estate, employers who need new employees.computer science and home. For the It not only contains job offers, but alsomajority of Slovenian internet users, has a Career Centre section with tipsbolha.com is the first choice to buy or and advices on how to successfullysell both new and used products as look for a job. In March 2010 it hadwell as to offer or search for services. a reach level of 8%.The second player is avto.net,a service specializing in automotiveclassifieds. According to the Gemius/ 2. ONLINE AUDIENCE The gender structure of the 15-24 constituted 28% of the onlineSlovenian online population is population. What is interesting aboutdominated by men. In March 2010, Slovenian internet users is the factaccording to the Gemius/Valicon, that there are a lot of people overgemiusAudience MOSS study, 56% of 55 years old (11%).Slovenian internet users were men;women constituted 44%. Moreover, In terms of the education level,the average man spent 14 hours the most numerous group in March16 minutes online, while a typical 2010 within the Slovenian onlinewoman spent less than 11 hours population was those who hadonline. completed four years of high school. They accounted for 27% of the online In terms of age, the most population. With 25% of the onlinesignificant group within the Slovenian audience, users that were still inonline population were people aged school ranked second. Third place25-34 who constituted 24% in March belonged to users with three years of2010. They were also the most active high school completed(22%). Usersindividuals with 14 hours 8 minutes with a higher education constitutedspent online per user. 20%.The second largest group, users Internet users with elementary35-44 years old, accounted for 22% education or lower accounted for onlyof the online population. Also, young 6% of the online population. However,people make up a significant group they spent the most time online withof internet users in Slovenia; when an average of 14 hours and 18 minutestaken together, users aged 10-14 and a month. Do you CEE? Slovenia
    • 225 The majority of the Slovenian employed in public sector (12%),internet population lives in cities. In children in elementary schoolsMarch 2010 18% lived in Ljubljana, accounted for 9% as well as the7% in Maribor and 15% in other cities students. The latter were also thewith 10,000 – 100,000 inhabitants. leaders in terms of average time spentQuite a large part of the online online with over 15 hours 10 minutes.audience lived in places with less than500 inhabitants, (16%), which meansthat the internet is not only commonin densely populated areas but also inthe countryside. The occupation structure ofthe Slovenian online populationin March 2010 was dominated byusers employed in companies (40%).Another significant group were those 3. TOOLS 3.1. BROWSERSChart 1 Top browsers in Slovenia by share of page views generated by internet users who visit Slove-nian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)3.1. Browsers quarter of 2010 it attained 50% of the market. MSIE ranked second withThere seems to have been a fierce a 42% share. Another popular browserbattle between Mozilla Firefox and that has been gaining popularity overMicrosoft Internet Explorer on the the last year is Chrome (5%). LessSlovenian online market with regard significant were, according to theto leadership of the browsers market. gemiusTraffic study from March 2010,Since the third quarter of 2009 the such browsers as Opera (2%) andwinner was Firefox, and after the first Safari (1%). Do you CEE? Slovenia
    • 226 3.2. OPERATING SYSTEMSChart 2 Top operating systems in Slovenia by share of page views generated by internet users whovisit Slovenian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)3.2. Operating systems 3.3. Search enginesLike in other CEE markets, the leader Like in other CEE markets, the mostamong operating systems in Slovenia is popular search engine in SloveniaWindows XP. After the first quarter of is Google. After the first quarter of2010 its share of the market, as studied 2010 its share accounted for 87% ofby gemiusTraffic, constituted 70%. the market and its popularity is stillHowever, over the last two years its growing. The second player on theshare has decreased by 20 percentage Slovenian market is najdi.si, a localpoints. The second player on the search engine, which popularity hasmarket, Windows Vista, has already been declining over the past few yearsstarted to lose popularity and will most and after the first quarter of 2010 hadprobably no longer be able to keep its a market share of only 12% (after theposition in the ranking. The newcomer first quarter of 2007 it was 33%).on the operating systems market,Windows 7, managed to gain over 13%of the market in less than a year. 3.3. SEARCH ENGINESChart 3 Top search engines in Slovenia by share of visits made by internet users who visit Slovenianwebsites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)Do you CEE? Slovenia
    • 2273.4. Screen resolutions 3.4. SCREEN RESOLUTIONSThere is no major leader on thescreen resolutions market in Slovenia.In terms of share of page viewsgenerated by internet users who visitSlovenian websites using gemiusTrafficthe most popular ones, within theSlovenian online audience, were1024 x 768 (25%), 1280 x 1024 (22%)and 1280 x 800 (14%).3.5. Mobile devices - modelsA wide variety of mobile devices canbe found on the Slovenian market. Chart 4 Screen resolutions in Slovenia by share of page views generated by internet users who visit Slovenian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)Five most popular tools have a shareof 35%. However, as with the majorityof the CEE markets, in Slovenia theleadership of this market belongs toiPhone. According to the gemiusTraffic 3.5. MOBILE DEVICESstudy, in July iPhone was responsiblefor 13% of page views generated bymobile devices on the average websiteand its position remains stable. At thesame time, Apple’s latest product,the iPad, is consistently gainingpopularity, and has increased its shareby 5 percentage points since May2010. Slight growth might also beobserved for the iPod, whose sharegrew by 0.5 percentage points duringthis period. Three other positions aretaken by Nokia’s devices amongstwhich the Nokia 5800 is the mostpopular gaining a share of 5%. Chart 5 Top 5 mobile devices in Slovenia by the website-averaged percentage share of page views generated by internet users from Slovenia who visit Slovenian websites using gemiusTraffic (gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10 **to 2010-07-25 Do you CEE? Slovenia
    • 228 4. BRANCH ORGANIZATIONSSOZ - Slovenian Advertising Chamber Members: publishers and agencies (e.g. 24ur.com, najdi.si, siol.net, rtvslo.www.soz.si si, httpool, media pool, bolha.com, avto.net, genspot.com, zurnal24.si)Description: The Slovenian AdvertisingChamber is a non-governmentalorganization which protects theinterests of advertisers, advertisingagencies and publishers. It isa member of IAB Europe. 5. ADVERTISING NETWORKS GENERAL CONTACT INFORMATION FULL NAME HOMEPAGE URL MAIN OFFICE CONTACT ADDRESS ADDRESS Cesta v Gorice 8, Phone: +386-1-479-04-81 1 Httpool httpool.si 1000 Ljubljana, Slovenia Email: info@httpool.si Phone: +386-1-511-07-50 Ulica Ivice Pirjevčeve 16, 2 Iprom iprom.si Fax: +386-1-511-07-83 1211 - Lj-Šmartno, Slovenia Email: info@iprom.si Phone: +386-1-565-60-06 Vojkova 63, 3 Adlink Meida adlinkmedia.si Fax: +386-1-565-60-08 1000 Ljubljana, Slovenia Email: info.si@adlinkmedia.net Phone: +386-1-620-32-50 Bravničarjeva ulica 13, 4 Interactive.agency interactive-agency.si Fax: +386-1-300-77-28 1000 Ljubljana, Slovenia Email: hello.slo@interactive.ag 6. OPINIONS FROM THE MARKETRadoš SkrtInternet Project Director, Studio ModernaOnline advertising marketWhat are the opportunities and obstacles for the online advertising market on yourlocal market?Several years ago having a presence on the internet was a must for all companiesand now if the company cannot be found among the first hits given in a searchengine, we could say that it virtually doesn’t exist. The fact is that internet usersDo you CEE? Slovenia
    • 229search for products, services and businesses via search engines, and that about80% of all clicks occur on the first page of search results. Of course, companiescan also draw much attention using other forms of online communication, butwe must be aware that banner blindness is more and more prevalent. Peopleare becoming less responsive to ads and the presence of users on the web isextremely scattered.Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in the future?Those companies which want to be successful will have to find or carve out a placeon the market. This means that they will have to choose the appropriate (target)media to be highlighted, and that they should be able to attract the attention ofinternet users with creative solutions and innovative approaches. It is more thanevident that the phenomenon of social media companies will not be able to avoidtwo-way communication with customers (this is a necessity in this day and age)and that they should also encourage interaction with customers.The inclusion of both parties (advertisers and users), taking into account theirdesires and needs as well as collecting databases and their efficient usage, willmost certainly be crucial factors and the main key to success in the near future. Do you CEE? Slovenia
    • Turkey 21.60m internet users1. MAINPLAYERS_2311.1. Top10websitesbyreach_2311.2. Top10websitesbyaveragetimespentperuser_2331.3. Topportals_2341.4. Social networks_2351.5. Onlineclassifiedadsbyreach_2361.6. Topfinancesitesbyreach_2362. ONLINEAUDIENCE_2373. TOOLS_2393.1. Browsers_2393.2. Operatingsystems_2403.3. Search engines_2403.4. Screen resolutions_2413.5. Mobiledevices_2414. BRANCHORGANIZATIONS_2425. ADVERTISINGNETWORKS_2436. OPINIONSFROMTHEMARKET_243
    • 231 1. MAIN PLAYERS 1.1. TOP 10 WEBSITES BY REACH WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH USERS VIEWS USER USER 1 blogcu.com blogging platform 10 110 262 113 287 594 11 00:13:52 43% 2 mynet.com horizontal portal 8 325 109 1 455 728 525 175 02:01:10 36% 3 izlesene.com video hosting 8 305 237 269 004 160 32 00:45:47 36% 4 ekolay.net horizontal portal 7 173 983 315 354 463 44 01:04:30 31% 5 hurriyet.com.tr news service 6 844 277 864 751 686 126 01:57:09 29% 6 milliyet.com.tr news service 6 207 491 714 288 388 115 02:21:51 27% literary service / 7 antoloji.com 3 725 207 27 801 789 7 00:06:50 16% online bookstore 8 kraloyun.com casual games platform 3 652 623 177 785 406 49 01:05:08 16% 9 haberler.com news service 3 509 221 55 715 690 16 00:16:02 15% 10 sabah.com.tr news service 3 125 297 170 728 985 55 00:47:05 13% Table 1 Top 10 websites in Turkey by reach level (Gemius SA / Ipsos KMG: IAB Turkey’s Internet Audience Measurement, March 2010)Given the large size of the Turkish Over half of the websites includedonline market, the major internet in the ranking of the top 10 majorplayers in this country have relatively players on the market by reach arelarge audiences. Among the websites portals and news services. The mostparticipating the IAB Turkey’s popular horizontal portal, mynet.com,Internet Audience Measurement came second in March 2010 withconducted by Gemius and Ipsos, a reach of 36% and an audience ofthe most popular one is blogcu.com, over 8 million real users. Mynet.coma blogging platform created by Nokta, operates based on a horizontala company established in 2002, platform model, as does ekolay.netwhich operates both in Turkey and (4th place in the ranking with a reachthe United States. Nokta specializes of 31%). Significant positions on thein search services and search- market are also held by four popularbased advertising solutions. Web and well developed news services:2.0 projects are its latest area of hurriyet.com.tr (5th place withbusiness. According to IAB Turkey’s 29% reach in March 2010),Internet Audience Measurement milliyet.com.tr (6th place with 27%conducted by Gemius and Ipsos, in reach), haberler.com (9th place withMarch 2010 blogcu.com attracted 15% reach) and sabah.com.tr (10thover 10 million real users, thereby place with 13% reach during thegaining a market reach of 43%. same period). Do you CEE? Turkey
    • 232The core business models used by comes very high in the ranking ofthe above-mentioned players is the Turkey’s top players. It is a videosale of online advertising, however hosting service named izlesene.comit is undertaken in several different which not only works like YouTube,ways. One can identify three basic but also resembles this Google-approaches. The first is the self- owned service. Izlesene is anotherconducted sale of advertising, which website released by Nokta. Its successis applied by Mynet and Sabah. The owes much to the fact that it fillssecond and most common practice a tremendous market gap. In 2007,are sales conducted by a subsidiary following much media attentionnetwork or media house (belonging associated with movies available onto the same holding as the publisher). YouTube, the world famous videoEkolay.net, milliyet.com.tr and website was banned in Turkey.hurriyet.com.tr are good examples Izlesene, its local equivalent, isof players working this way: all of therefore doing very well. Accordingtheir sales activities are operated by to IAB Turkey’s Internet Audienceone advertising network, MedyaNet, Measurement conducted by Gemiuswhich is (as they also are) a company and Ipsos, in March 2010 it gained anowned by the Dogan Media Group. audience of over 8 million real usersHaberler is the only website among and has a reach level of 36%.the above-mentioned representingthe third approach. Its advertising The second peculiar and rare websiteactivities are operated by ReklamZ, an (especially when it comes to closeindependent company and one of the leadership of local players) active onlargest internet advertising networks the Turkish market is antoloji.com.in Turkey. ReklamZ was established in It operates using a hybrid model2002 and currently provides various of a literary online service, headadvertising solutions for many large offline news aggregator and internetand significant local players. Apart bookstore. It is basically a websitefrom Haberler, among the websites devoted to the written word. As itsoperated by ReklamZ and participating creators themselves say, antoloji.in IAB Turkey’s Internet Audience com is an art portal focused on theMeasurement in March 2010 one can cultural life of the country. Antolojialso find such players as komikler.com publishes both poetry and prose(an aggregator of humorous content), written by professionals and amateurs.hastane.com.tr (a significant health/ It also provides a variety of Webmedical website), ajansspor.com (one 2.0 solutions, like groups, clubs andof the leading sports news providers), message boards. The popularityposta.com.tr (the website of Turkey’s of this project is an interestingbest-selling newspaper) and hi5.com phenomenon. While on most markets(a well-known social networking information and entertainmentservice). ReklamZ also represents such make up the backbone of onlinewebsites as eksisozluk.com (the oldest mass-media websites, this particularonline community in Turkey) and cultural service in Turkey is able tofizy.com (a leading online music gain 7th place in the general rankingprovider). of websites by reach. According to IAB Turkey’s Internet AudienceInterestingly, the internet in Turkey Measurement conducted by Gemiusalso contains very locally-specific and Ipsos, in March 2010 Antolojionline projects, which make it a very had almost 4 million real usersinteresting market. One of the best interested in this niche topic, withexamples of this is a website which a reach of 16%.Do you CEE? Turkey
    • 233 1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH REAL USERS USER PER USER 1 webgazete.net 2 381 51 06:34:40 0.01% 2 80630.com 30 773 586 06:21:49 0.1% 3 gazeteoku.com 802 660 47 03:58:11 3% 4 pexu.com 17 077 166 03:07:02 0.1% 5 siberalem.com 653 468 111 02:29:29 3% 6 milliyet.com.tr 6 207 491 115 02:21:51 27% 7 gamyun.net 440 905 134 02:11:04 2% 8 mackolik.com 2 232 298 65 02:02:48 10% 9 mynet.com 8 325 109 175 02:01:10 36% 10 hurriyet.com.tr 6 844 277 126 01:57:09 29% Table 2 Top 10 websites in Turkey by average time spent per user (Gemius SA / Ipsos KMG: IAB Turkey’s Internet Audience Measurement, March 2010)If we look at the Turkish online 6.5 hours on the website. During themarket from the perspective of time same period a similar result (almostspent per average internet user on 6 hours 22 minutes average time pereach website, the ranking of the user) was obtained by 80630.com,most significant websites takes on which is an exclusive social networkinga completely different perspective platform (not accessible for non-and the dominant roles are not played registered users) similar to Facebook.(unlike in many markets) by the largestplayers. Even such an engaging service Majority of the most engagingas izlesene.com (the local YouTube websites in Turkey keep their usersequivalent) with almost 46 minutes active for 2-4 hours. Among them,average time spent per user does not one can find such websites as a newsfind its place among the most time- aggregator (gazeteoku.com), gamingconsuming websites in Turkey. In turn, platforms (pexu.com and gamyun.net),first place in the presented ranking a social networking service (siberalem.is held by one of the less popular com) or a sport news servicewebsites, webgazete.net, an online (mackolik.com). The most ‘addictive’newspaper service run by Aktif Haber websites in Turkey include threeYayın Grubu. According to IAB Turkey’s portals, both horizontal and news-Internet Audience Measurement based. The 6th ranking position of topconducted by Gemius and Ipsos, it 10 websites by average time spentgained barely 0.01% of reach among per user is held by milliyet.com.tr. Theall internet users in March 2010, but whole list was propped up by the mostat the same time its average visitor popular horizontal portal and most(there were 2,400) spent more than popular news service, mentioned in Do you CEE? Turkey
    • 234the previous section. The average user average user of hurriyet.com.tr spentof mynet.com, the portal which took 9th almost two hours reading current newsplace in the ranking, spent over 2 hours during the same period.on the website in March 2010 and the 1.3. TOP PORTALS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 mynet.com 8 325 109 175 02:01:10 36% 2 ekolay.net 7 173 983 44 01:04:30 31% Table 3 The two most popular portals in Turkey by reach level (Gemius SA / Ipsos KMG: IAB Turkey’s Internet Audience Measurement, March 2010)The Turkish online market is filled with this website also figures highly inmany well developed news services international rankings for the wholeand internet equivalents of traditional region.newspapers which, from a practicalpoint of view, often play the role The second most popular portalof horizontal services. Despite this participating in IAB Turkey’s Internetfact, among the top 10 most popular Audience Measurement conductedwebsites participating in IAB Turkey’s by Gemius and Ipsos is ekolay.net.Internet Audience Measurement Its monthly audience oscillates aroundconducted by Gemius and Ipsos, there 7.2 million real users. Ekolay.net is runare only two pure horizontal portals: by Doğan Elektronik İçerik Tasarımmynet.com and ekolay.net. Hizmetleri ve Yayıncılık A.Ş., a part of Doğan Şirketler Grubu Holding A.Ş.According to the results of the above- (Doğan Holding Group of Companiesmentioned study for March 2010, the Inc) founded in 1980 in Istanbul. Doğanleading horizontal portal in Turkey was Holding is a large organization thatat the same time the second most invests not only in media, but alsopopular website on the market with in energy, finance and tourism.36% reach among all internet users. The company owns many significantMynet.com is run by the company of Turkish newspapers which, incidentally,the same name. It was established in have their own online versions,1999 by Emre Kurttepeli. Presently, for instance hurriyet.com.tr andit is a private company employing milliyet.com.tr. Ekolay is one of theapproximately 250 specialists, mainly company’s most popular websites,engineers. The mynet.com portal is which in March 2010 had a reachnot only a very successful project as of 31%.regards the Turkish market, but alsobecause considering the size of thelocal internet in this country, whichensures that it has a constant monthlyaudience of over 8 million real users,Do you CEE? Turkey
    • 235 1.4. SOCIAL NETWORKS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 blogcu.com 10 110 262 11 00:13:52 43% 2 tr.netlog.com 1 981 046 84 00:57:17 8% 3 siberalem.com 653 468 111 02:29:29 3% 4 hi5.com 587 895 106 00:36:34 3% 5 hocam.com 167 250 159 01:56:32 1% Table 4 Top 5 social networks in Turkey by reach level (Gemius SA / Ipsos KMG: IAB Turkey’s Inter- net Audience Measurement, March 2010)The unquestionable leader among all and multipurpose social networkingwebsites participating in IAB Turkey’s platform run by Hocam Interaktif.Internet Audience Measurement Despite the quality of the website,conducted by Gemius and Ipsos is its popularity is still low, as clearlyblogcu.com, a blogging platform evidenced by the results of the study,which in March 2010 had over 10 according to which Hocam attractedmillion real users, gaining 43% reach less than 170,000 real users in Marchand dominating all its competitors. 2010 giving it a mere 1% reach.Blogcu is the most successful websiterun by Nokta, one of the most active According to IAB Turkey’s Internetcompanies on the Turkish online Audience Measurement conductedmarket. Among the top 5 social by Gemius and Ipsos, internet usersnetworking websites in this country, in this country also visit internationalwe can also find two native players. social networking websites. In the top 5 ranking above we can find suchThe first is siberalem.com, a dating brands as Netlog and Hi5. The Turkishservice run by EBI (Elektronik Bilgi section of Netlog attracted almostİletişim Hizmetleri Reklamcılık ve Tic. 2 million real users in March 2010,A.Ş.), a company established in 1998, which ensured a safe 2nd place in thewhose portfolio covers such websites ranking. Its market reach amountedas: idefix.com (an online media/book to 8%. In turn, Hi5 gained less thanstore), itiraf.com (a discussion board) 600,000 real users in March 2010,or evlilikmerkezi.com (a wedding which gave it a reach of 3%.service). Siberalem gained over650,000 real users in March 2010,which gave it a reach level of 3%.Another native player which foundits place among the top 5 mostpopular social networking websitesin Turkey monitored by Ipsos andGemius is hocam.com, an extended Do you CEE? Turkey
    • 236 1.5. ONLINE CLASSIFIED ADS BY REACH NUMBER OF PAGE VIEWS PER AVERAGE TIME PER REACH REAL USERS USER USER 1 arabam.com 1 836 519 60 00:25:21 8% 2 hurriyetemlak.com 1 213 832 66 00:53:46 5% 3 hurriyetoto.com 990 352 16 00:13:01 4% Table 5 Top 3 online classified ads in Turkey by reach level (Gemius SA / Ipsos KMG: IAB Turkey’s Internet Audience Measurement, March 2010)Online classified advertising seems interested in buying a car (almostto be relatively popular in Turkey. 54 minutes per user). Hurriyetemlak.According to IAB Turkey’s Internet com gained 5% reach, just oneAudience Measurement conducted by percentage point more than the otherGemius and Ipsos, the most frequently automotive online service included invisited website of this kind in March the ranking, hurriyetoto.com.2010 was arabam.com which attracted The latter attracted just over 990,000over 1.8 million real users with real users in March 2010 and tookamarket reach of 8%. Arabam.com 3rd place with a reach of 4%.is an extensive online database of carsales announcements. In March itsvisitors remained active for an averageof 25 minutes.In the same period 1.2 million realusers visited hurriyetemlak.com,a classified advertising websitecontaining real estate announcements.Users searched for homes on averagetwice as long as those who were 1.6. TOP FINANCE SITES BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER finans.mynet. 1 1 090 039 24 00:30:46 5% com bigpara.ekolay. 2 505 713 58 03:11:38 2% net 3 doviz.com 464 460 9 00:57:25 2% Table 6 Top 3 finance sites in Turkey by reach level (Gemius SA / Ipsos KMG: IAB Turkey’s Internet Audience Measurement, March 2010)Do you CEE? Turkey
    • 237The area of finance on the Turkish The 3rd ranking position amonginternet is dominated by the finance websites in Turkey is heldhorizontal portals Mynet and Ekolay. by doviz.com, a relatively small andThe dedicated sections of these two simple website run by Nokta. Dovizplayers hold first and second place, means “foreign exchange” and therespectively in the ranking of finance website actually focuses exclusivelywebsites participating in IAB Turkey’s on publishing current exchange ratesInternet Audience Measurement as well as the prices of gold and fuel.conducted by Gemius and Ipsos. In March 2010 it gained an audienceThe financial section of Mynet of over 460,000 real users, which gave(finans.mynet.com) was visited by it a market reach of 2%.more than one million real users inMarch 2010, which gave it a reach of5% among all internet users. Duringthe same period the equivalentfinance section of Ekolay (bigpara.ekolay.net) was visited by over500,000 real users, which gave it areach of 2%. Internet users visiting thissection of Ekolay remained active formore than 3 hours. 2. ONLINE AUDIENCE Unlike in the majority of CEE Furthermore, 75% of the whole onlinemarkets, the gender structure of the population consisted of individualsonline population in Turkey is not under 34 years old. Users agedbalanced. According to the Ipsos 55 years old and more represent onlyKMG study for March 2010, 57% of 4% of the total online population. Suchinternet users in this country are distribution is characteristic for lessmen and only 43% of the whole developed online markets, which areonline population are women. Such not experiencing the phenomenona visible disproportion seems to be of getting older along with theircaused by two factors. The first is the users. However, compared to other‘immaturity’ of the online market, countries, the high increase of thewhere men are usually the first to proportion of individuals over 45 andcapture new technologies. The second 55 years old may be expected.factor is related to certain culturalspecifics which may have a significant Within the whole onlineimpact on the gender structure of population of this country, therethe Turkish online population. are three major groups of users: individuals with primary education or Internet users in Turkey are very less (30%), secondary school educationyoung. According to the Ipsos KMG (25%) and those who graduated fromstudy in March 2010 48% of users high school (31%). At the same timewere between 12 and 24 years old. individuals with university education Do you CEE? Turkey
    • 239or scientific degrees comprise only which is congruent with the14% of the whole online population. distribution observed for the wholeNevertheless, this figure is impressive population. However, comparedcompared to the general Turkish to the total population, the sharepopulation, where the proportion of of individuals living in urban areasindividuals with a university education among internet users is higher by 11is 7 percentage points lower. percentage points. The largest group of Turkishinternet users lives in urban areas, 3. TOOLS 3.1. BROWSERSChart 1 Top browsers in Turkey by share of page views generated by Internet users who visit Turkishwebsites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)3.1. Browsers Turkey is Google Chrome (4.9% of all page views in the first quarter of 2010).In terms of web browsers popularity, Other solutionsthe Turkish online market is both do not enjoy significant interestunique and interesting compared among Turkish internet users.to most CEE countries. It iscompletely dominated by Microsoft 3.2. Operating systemsInternet Explorer which holds theconsistently largest share. According The group of Turkish internet usersto gemiusTraffic, in the first quarter which generated the largest amountof 2010 this browser was used by of page views (74%) in the first quartervisitors responsible for almost 79% of 2010 used Windows XP. Accordingof all page views generated on websites to the gemiusTraffic study, the secondmonitored in the study. During the most frequently indentified operatingsame period Mozilla Firefox generated system on the Turkish market isonly 15% of all page views. The third Windows Vista. During the same periodmost intensively used web browser in its users were responsible for 17% of Do you CEE? Turkey
    • 240 3.2. OPERATING SYSTEMSChart 2 Top operating systems in Turkey by share of page views generated by Internet users who visitTurkish websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)all page views generated on websites – it is Google. In the first quartermonitored by Gemius. Microsoft’s of 2010, the world’s best knownnewest product, Windows 7, comes search engine was a starting pointlast. In the first quarter of 2010 it was for almost 99% of all visits whichinstalled on computers of internet took place on websites monitoredusers who were responsible for almost in the gemiusTraffic study in Turkey.8% of all page views recorded in the The second player on the market,gemiusTraffic study. To compare, the Microsoft MSN (an engine used byshare of page views generated by Mac MSN itself as well as live.com andOS X users equaled to only 0.5%. Bing), managed to gain a share of only 1.2% for the totality of visits during3.3. Search engines the same period. The Yahoo search engine and all other search engineThere is no doubt as to which search solutions have an insignificant shareengine dominates the Turkish market on the Turkish market. 3.3. SEARCH ENGINESChart 3 Top search engines in Turkey by share of visits generated by Internet users who visit Turkishwebsites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)Do you CEE? Turkey
    • 2413.4. Screen resolutions 3.4. SCREEN RESOLUTIONSThe most popular screen resolutionin Turkey is 1280 x 1024. In the firstquarter of 2010, it was recognizedon computers of users responsiblefor almost 43% of all page viewsmade on websites monitored in thegemiusTraffic study. Other top screenresolutions on the market are lesspopular. In the first quarter of 2010their shares oscillated between 18%(for 1280 x 800) and 4.6% (for 1152x 864). Chart 4 Screen resolutions in Turkey by share of page views generated by Internet users who visit3.5. Mobile devices - models Turkish websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)According to the gemiusTraffic study,the most popular mobile device usedto access the web in Turkey is theiPhone, which was responsible for 35% 3.5. MOBILE DEVICESof page views generated by mobiledevices on the average website inJuly. The second most popular mobiledevice was the Nokia 5800.Its users generated 12% of the mobiletraffic on the average Turkish websiteusing gemiusTraffic. The other Appleproduct, the iPad, had a 5% share.However, its popularity is growingand over two months has gained2 percentage points. Chart 5 Top 5 mobile devices in Turkey by the website-averaged percentage share of page views generated by internet users form Turkey who visit Turkish websites using gemiusTraffic (gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10 **to 2010-07-25 Do you CEE? Turkey
    • 242 4. BRANCH ORGANIZATIONSIAB Turkey Turkish IPTV Associationwww.iab-turkiye.org www.iptv-der.orgDescription: IAB Turkey was Description: The Turkish IPTVestablished in 2007 and acts as Association represents the nexta reference center for interactive generation of the TV broadcastingadvertising and the digital marketing platform in Turkey. As a non-profitindustry in Turkey. Its mission is organization, the association aims toto contribute to the development develop technologies and standardsand growth of the interactive that might help streamline andindustry; by setting standards, accelerate deployments of IPTV,organizing networking initiatives which will help maximize the benefitsand activities, coordinating internet of IPTV for consumers, networkaudience measurement research and operators, content providers, serviceorganizing educational programs. providers, consumer electronics manufacturers and home andMembers: At present, IAB Turkey network infrastructure providers.has 109 members including mediaagencies, publishers, interactive Online Media Association (OMA)agencies and advertisers. www.internetmedyasi.orgMobile Marketing Association Description: The Online Media Association (OMA) aims to establishmmaglobal.com digital media as a respected and reliable marketing channel. OMADescription: The Mobile Marketing makes the effort to be the leadingAssociation established its local and standard setting organization inbranch in Turkey in 2009. The Turkey especially for online publishingobjective of MMA Turkiye is to and journalism.foster the burgeoning mobilemarketing industry in Turkey through Members: The Association haslocal participation from industry 365 members, all online contentstakeholders, driving the early providers.integration of global standards andindustry guidelines across the mobilechannel in the country and providinga powerful platform for knowledgesharing.Members: At present MMA Turkiyehas 29 members.Do you CEE? Turkey
    • 243 5. ADVERTISING NETWORKS GENERAL CONTACT INFORMATION FULL NAME HOMEPAGE URL ADDRESS MAIN OFFICE CONTACT ADDRESS MedyaNet İletişim Eski Büyükdere Cad. Ayazağa Phone: +90-212-304-21-00 (01) 1 Reklam Pazarlama ve medyanet.com.tr Ticaret Merkezi C Blok No:11 Giriş Fax: +90-212-328-05-84 Turizm A.Ş. Kat 34398 Maslak/İstanbul Email: bilgi@medyanet.com.tr Logaritma Internet ve Büyükdere Cad Tevfik Erdönmez Phone: +90-212-273-10-27 2 Bilgi Teknolojileri Tic. logaritma.com.tr Sokak Gül Apt 2/23 Esentepe/ Fax: +90-212-273-27-29 Ltd. Şti. İstanbul Email: logaritma@logaritma.com.tr Barbaros Bulvarı Morbasan Sokak Phone: +90-212-266-96-96 Medyaguru Reklam Hiz. 3 medyaguru.com Koza İş Merkezi B Blok No:12 Kat:3 Fax: +90-212-213-80-82 Ve Tic. A.Ş. Balmumcu - Beşiktaş / İstanbul Email: info@medyaguru.com Phone: +90-212-324-00-60 Rgte İletişim Reklam Paz. Esentepe Mah.Talatpaşa Cad. 4 netbookmedia.com Fax: +90-212-324-20-62 ve Tic. A.Ş. No.5 Kat 3 Şişli / İstanbul Email: info@ netbookmedia.com Leylak Sok. No: 26 Nursanlar Reklamz İnternet Reklam Phone: +90-212-213-70-05 5 reklamz.com İş Merkezi A Blok K:7 No:26 Hiz. ve Bilişim Tekn. A.Ş. Email: bilgi@reklamz.com Mecidiyeköy-Şişli-İstanbul Barbaros Bulvarı No:153 34349, 6 Turkuvaz turkuvazyayin.com.tr Phone: +90-212-354-30-00 Beşiktaş-İstanbul İsmail Paşa Sk. No:27 Koşuyolu Phone: +90-216-339-09-98 7 Yeni Medya yenimedya.com.tr İstanbul Fax: +90-216-339-09-58 Nokta Medya İnternet Phone: +90-312-236-16-69 Gökırmak Sokak No:2 Beysukent 8 Hizmetleri San. ve Tic. nokta.com Fax: +90-312-236-16-79 ANKARA 06800 A.Ş. Email: medya@nokta.com Kuştepe Mah. Leylak Sok. Phone: +90-212-444-54-65 Linkz Internet Reklam 9 linkz.net Nursanlar İş Mrk. K:1 N:6 Şişli, Fax: +90-212-213-70-07 Hiz. Ve Bilişim Tekn. A.Ş. İstanbul Email: bilgi@linkz.net Magnet Bilgi Eski Üsküdar Cad. Çayıryolu Sok. 10 Teknolojileri ve magnetdijital.com Partaş Center No: 1/16 İçerenköy- Phone: +90-216-577-33-11 Sistemleri A.Ş. İstanbul Meclis-i Mebusan Cad. No:23 Maksimum İletişim Phone: +90-212-243-45-28 11 maksimum.net Dursun Han Kat:1 Hizmetleri A.Ş. Fax: +90-212-243-45-29 34433 Tophane-İstanbul 6. OPINIONS FROM THE MARKETOrkun TekinChairman, reklamz.com, semtr.com, linkz.net, fizy.comOnline advertising marketWhat are the opportunities and obstacles for online advertising on your localmarket?We can observe many opportunities for the online advertising market in Turkey.This is mainly because of the rapid growth of internet advertising spending since Do you CEE? Turkey
    • 2442002. According to the Advertisers Association, in the first quarter of 2010 internetadvertising spending grew by 63% compared with total advertising budgets.We predict that this acceleration will continue for at least the next five years.What is more, as the majority of the Turkish population is between the ages of1-24, we assume that internet usage will continue to grow. The reason for this isthat the young generation is becoming more accustomed to using the internet foreveryday activities. The same can be observed in all digital sectors.The greatest opportunity in the Turkish online internet advertising sector is itstendency to bring together all advertising means under one digital platform. Alloffline advertising products are becoming more digitalized every day. Publicationsare becoming internet advertorials, TV content is becoming digital videobroadcasts, audio products, and radio broadcasts are being digitalized. On the flipside, there is a gap in education and the experience of human resources who areemployed both in media planning agencies and in the advertising departmentsof major brands. This causes problems in understanding the effectiveness,advantages and new trends by both agencies and brands.Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in the future?We can observe three main periods in the trends on the Turkish market. Priorto 2007, an era of standard banner display based on impressions was evident.Following this, in 2008, there was an era of rich and interactive media productsas well as performance advertising. From 2009 agencies have tended to focus onspecial projects capturing users beyond base advertising means.When we look at the first quarter of 2010 such special projects have continued togrow. Brands are interested in unique, interactive ideas connecting them to theirtarget audience. Also, advertisers’ concerns have switched from basic bannerdisplay to seeing beyond performance. Display to diversion and from diversionto conversion has gained major importance. The urge of advertisers to take ROImeasures into account has forced Ad networks to include performance targets intotheir calculations. CPX ad models become more and more economically feasiblethus creating a necessity in the evolving Turkish internet usage practices.In general, there are 3 main trends that drive the internet advertising sector.The first of them is video advertising. Brands see video advertising to be aneffective way to reach their target audience as a result of usage in TV advertisinghabits. Every day, increasingly more people watch video content on the internet.Video content is more valuable on digital platforms since it is more preciselymeasurable, it is easier to segment the audience and also report outcomesin terms of ROI. Digital video content (which is different from TV advertising)is interactive and continues to capture the target audience even after videocontent is presented. Through clickable video content, users are diverted to theadvertiser’s website to continue interacting with the brand.Do you CEE? Turkey
    • 245Another trend which drives the internet advertising sector is social mediaadvertising. Many global and local brands interact with users in Turkey throughsocial media accounts. Facebook users originating from Turkish IPs havereached a level of 4 million a day. As a result, more than 5 agencies have offeredprofessional services on social media like account management and seeding.Brands have started to employ social media specialists. From another perspective,social media platforms have started to offer a complete interactive packageincluding image, video and audio content. Digital sharing, idea creation and socialmovement have all become hot topics. Information sharing and branding hasfollowed naturally.Another trend is mobile advertising. With the launch of smart phones and moreadvanced mobile devices capable of high speed internet connection, internetusers have started to use the mobile internet in their everyday life. Today there are11.4 million 3G users in Turkey. Therefore, display budgets in the ‘mobile’ categoryhave reached to $150,000 per month. What is more, several mobile agencies aretrying to expand this market. Reklamz launched a new set of products under a newcompany called “MobileZ“ to respond to this demand.Regarding the future, it should be said that trendy products in the video, socialmedia and mobile categories will continue to grow, as they will become the newhot spots in information sharing. Most importantly, digital advertising is becomingincreasingly more independent of offline advertising with its own methodology,vision and technology.In general, products that are structured on the basis of audience targeting willcontinue to grow. Identifying, capturing, tracking and interacting with the targetaudience and the technological capabilities thereof will be a necessity rather thana demand in the upcoming years.Global vs. local playersAre the local players present on your local market strong enough to compete withthe global giants? What advantages and strategies do they use in this battle?The strongest global players are Facebook and MSN. Dailymotion is another mediagiant that has entered the Turkish market. All these publishers supply specificcontent, which competes and, in most cases, dominates the fields they enter. Theiredge usually lies in the technology they use and the new methodologies that areextremely well constructed and tailored to the audience. Their products are welldesigned as a result of well-evolved user segmentation abroad.Internet search is completely dominated by Google and there is no competitionin SEM. In mobile advertising, local sales houses dominate the market. There areseveral reasons for this. First of all, inventory is restricted, so that publishers donot use blind basis mobile display networks. Secondly, agencies are in the learningphase. This means that salespeople in the dominant sales houses are convincingmedia planners to move to mobile display therefore budgets are dividing insidethese sales houses. Do you CEE? Turkey
    • Ukraine 8.92m internet users1. MAINPLAYERS_2471.1. Top10websitesbyreach_2471.2. Top10websitesbyaveragetimespentperuser_2481.3. Topportals_2491.4. Social networks_2501.5. Onlineclassifiedadsbyreach_2511.6. Topfinancesitesbyreach_2522. ONLINEAUDIENCE_2523. TOOLS_2543.1. Browsers_2543.2. Operatingsystems_2553.3. Search engines_2553.4. Screen resolutions_2553.5. Mobiledevices_2564. BRANCHORGANIZATIONS_2575. OPINIONSFROMTHEMARKET_258
    • 247 1. MAIN PLAYERS 1.1. TOP 10 WEBSITES BY REACH WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH USERS VIEWS USER USER 1 mail.ru horizontal portal 5 170 428 804 602 875 156 03:56:17 58% 2 yandex.ua (*) horizontal portal 4 350 184 365 007 925 84 03:52:58 49% 3 marketgid.com e-shop catalogue 3 217 384 39 277 914 12 00:50:12 36% 4 meta.ua horizontal portal 2 586 042 69 090 816 27 00:37:01 29% 5 i.ua horizontal portal 2 341 812 119 043 456 51 01:02:53 26% 6 tochka.net horizontal portal 1 818 973 17 419 775 10 00:09:14 20% 7 bigmir.net horizontal portal 1 673 814 67 863 776 41 01:07:28 19% 8 gismeteo.ua weather portal 1 658 453 37 326 182 23 00:20:01 19% 9 redtram.com.ua news service 1 472 170 12 430 345 8 00:37:58 17% 10 online.ua horizontal portal 1 433 729 32 761 772 23 00:31:38 16% Table 1 Top 10 websites in Ukraine by reach level (gemiusAudience, March 2010)In March 2010 the ranking of the most is no Ukrainian language version, but (*) In March 2010 on the Ukrainian market the node yandex.ua consisted of the portals’ mainpopular websites by reach in Ukraine as with the horizontal portals, the page and search page only.was dominated by horizontal portals. Russian version is popular amongThey occupied 7 out of the top 10 internet users in Ukraine. Yet itsplaces and together generated almost popularity, in comparison to March1.5 billion page views. Mail.ru 2009, fell by 2 percentage points.(58%) and yandex.ua (49%) are theleaders on the Ukrainian online The 7th ranking position was occupiedmarket. What is interesting is that by bigmir.net, a horizontal portalthey both originate from Russia. Other owned by the number one mediapopular horizontal portals among holding in Ukraine, KP Media. Itthe Ukrainian online population are offers services typical for this kind ofmeta.ua with a reach of 29%, i.ua with site, i.e. news, a mail service, blogs,26% and tochka.net with 20%. They photo and video sections as well asare described in detail in the table 1.3 a dating service. In March 2010 itTop portals. gained a reach level of 19% (it has lost 4 percentage points of its reachOne of the non-portal sites in level over the last twelve months)the gemiusAudience ranking was and has only a slightly advantagemarketgid.com. In March 2010 its over gismeteo.ua, which is a popularreach amounted to 36%. It is an weather portal that belongs toe-shop catalogue operating in Russia, the Russian company Map MakerGermany, Poland and Romania. There (www.mapmakers.ru). It ranked eighth Do you CEE? Ukraine
    • 248and had over 1.6 million real users, news in English, French, German,who on average spent 20 minutes on Spanish, Italian, Polish, Chinese,the service in March 2010. Russian and Ukrainian.The last two positions in the ranking In March 2010 online.ua had overbelonged to a news aggregator, 1.4 million real users. The portalredtram.com.ua (17%) and another includes such services as mail, a searchhorizontal portal, online.ua (16%). The engine, a catalogue of websites,first enables its users to find the latest an online TV schedule amongst others.news they are interested in thanks to It is slowly gaining popularity anda variety of searching criteria available. compared to March 2009 its level ofMoreover, redtram.com aggregates reach increased by 1 percentage point. 1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH REAL USERS USER PER USER 1 football.ua 305 634 175 04:17:26 3% 2 mail.ru 5 170 428 156 03:56:17 58% 3 yandex.ua 4 350 184 84 03:52:58 49% 4 connect.ua 247 857 216 02:26:53 3% 5 ria.ua 996 942 115 01:59:00 11% 6 quest.ua 11 647 61 01:49:47 0.1% 7 minfin.com.ua 26 688 55 01:47:23 0.3% 8 basket.com.ua 17 058 66 01:42:28 0.2% 9 photographers.com.ua 22 900 109 01:22:52 0.3% 10 bigmir.net 1 673 814 41 01:07:28 19% Table 2 Top 10 websites in Ukraine by average time spent per user (gemiusAudience, March 2010)The sites included in the top 10 In March 2010 second and thirdranking by average time spent positions were occupied by Russianper user, on the basis of the horizontal portals mail.ru (3 hours andgemiusAudience study from March 56 minutes) and yandex.ua (3 hours2010, are diversified in terms of site 53 minutes). They are both successfulcategories. The leader with 4 hours in Ukraine.17 minutes was football.ua, a sportsportal dedicated to football fans. Its Connect.ua is a local social networkowner is Ukrainian Media Holding, whose popularity is on the decline. Inwhose portfolio of internet projects March 2010 its reach level amountedalso includes the news portals kp.ua to 3%, yet, in terms of average timeand focus.ua as well as dengi.ua, spent per user it ranked fourth witha business and finance service. a result of 2 hours 27 minutes.Do you CEE? Ukraine
    • 2495th place belonged to the classified 47 minutes online there. The averageads website ria.ua, with an average user of basket.com.ua, which occupieduser spending almost 2 hours on the next position in the ranking,this service in March 2010. Only 10 spent only 5 minutes less online.minutes less was spent by the average Basket.com.ua is a service dedicateduser of quest.ua, i.e. 1 hour 50 to basketball with a forum whereminutes. This site is dedicated to the fans can exchange their views andcommunity of Quest players, which is comments on current sports events.an offline game where players needto use their wit and creativity to find With a result of 1 hour and 23 minutesa hidden code hidden somewhere in photographers.com.ua came 9th in thetheir city. Quest.ua had over 11,600 ranking. It is a network of professionalreal users in March 2010. photographers. They can upload their photos to a gallery and let othersThere was also a place for a financial comment on them. In March 2010 itportal in the ranking, namely had 22,900 real users, however, itsminfin.com.ua. It publishes news popularity has been growing (in Marchconcerning finances, banks, currencies 2009 it was 11,371). The ranking wasand the stock exchange. According to propped up by the above-mentionedthe gemiusAudience study from March bigmir.net, whose average user spent2010, it had 26,688 real users and 1 hour 7 minutes there.the average viewer spent 1 hour and 1.3. TOP PORTALS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 mail.ru 5 170 428 156 03:56:17 58% 2 yandex.ua 4 350 184 84 03:52:58 49% 3 meta.ua 2 586 042 27 00:37:01 29% 4 i.ua 2 341 812 51 01:02:53 26% 5 tochka.net 1 818 973 10 00:09:14 20% Table 3 Top 5 portals in Ukraine by reach level (gemiusAudience, March 2010)Horizontal portals are very popular Ukrainian office was opened in 2008, itamong Ukrainians. According to the did not become very active until 2009,gemiusAudience study from March when the head of the Ukrainian office2010, the leader, with a reach level changed. Mail.ru has from that pointof 58%, was mail.ru. It is a Russian- been taking an ever larger proportionbased horizontal portal, once a free of the market.email service that evolved into oneof the biggest players on the post- Second place was occupied bySoviet online markets. Although the yandex.ua, another Russian-based Do you CEE? Ukraine
    • 250portal popular in the post-Soviet services amongst others. Moreover,countries. Yandex.ru started its career there is a communication section withas a search engine in September 1997 a postal system, a forum, blogs andand has since been constantly gaining the suchlike.new audience. Today it is the onlyreal competitor to Google in Ukraine With a 26% reach i.ua ranked fourthand Russia. Though the ranking from in the top 5 portals in the UkraineMarch 2010 presents statistics for ranking. The developer of thishome page and search page only, its internet portal is the internet agencyreach level amounted to 49%, i.e. more Mi[6], which offers a wide range ofthan 4.35 million users. Moreover, advertising services on the internet.it is no longer simply a search engine. The horizontal portal includes a mailOn the home page users can find service, a website catalogue, weathernews, weather and traffic information, forecasts, a translator, photos, blogs,exchange rates and much more. dating services and much more.Meta.ua (29%) is a Ukrainian The ranking was propped up byhorizontal portal and search engine. tochka.net, which in March 2010It became influential on the Ukrainian had a reach level of 20%. It seemsonline market despite the fact to be a very promising player on thethat its head office was in Kharkiv, Ukrainian online market. It is ownednot in Kyiv (which is quite unusual by digital ventures, an online mediaamong Ukrainian online publishers). holding, which launched severalIt offers its users basic services websites in 2008, then bought somesuch as a searching system on the more in 2008-2009 and by the end ofUkrainian segment of the internet and 2009 restructured them and createda catalogue of sites, search engine one portal, tochka.net.for e-shops and pricelists, a systemfor news monitoring, information 1.4. SOCIAL NETWORKS NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER connect.ua 247 857 216 02:26:53 3% Table 4 Local social network measured in the gemiusAudience study (gemiusAudience, March 2010)The only local social network in mean that Ukrainians are not fondUkraine worth mentioning is of social networking services. Twoconnect.ua. According to the Russian social networking websitesgemiusAudience study, in March are quite popular: vkontakte.ru2010 its reach level amounted to and odnoklassniki.ru. Due to the3%, 2 percentage points less than a shared history of both countries asyear before. However, this does not well as tight business and culturalDo you CEE? Ukraine
    • 251or even family connections, Russian stemmed from its internationality andand Ukrainian markets are closely technological advances, in particularinterconnected. its integration with Twitter, YouTube, etc.What is more, Facebook’s popularityis growing in Ukraine. According toFacebook Statistics, it had 425,680users (July 2010) in Ukraine. Its success 1.5. ONLINE CLASSIFIED ADS BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 ua.all-biz.info 1 124 647 10 00:09:15 13% 2 prom.ua 1 083 169 11 00:10:36 12% 3 ria.ua 996 942 115 01:59:00 11% Table 5 Top 3 online classified ads in Ukraine by reach level (gemiusAudience, March 2010)The leader in the top 3 online with practically the same scope ofclassified ads in Ukraine by reach services.ranking was, in March 2010,ua.all-biz.info with a reach level of The ranking was propped up by13%. It is a business directory for ria.ua with an 11% reach. It containscompanies, which provides free free offers classified into three mainprofile registration and paid profiles categories: automotive, real estatewith more advanced options. and job announcements.Moreover, it allows its users to The service belongs to Aukroupload their price lists, announce (Allegro Group), which duringtenders and helps to find contractors 2008-2009 bought most ofor business partners. This Ukrainian the largest online auctions,site has mirrors in several other e-commerce websites, freecountries, including Russia, Poland, classified websites and industrialMoldova, Kazakhstan, Spain and catalogues.Turkey.The other significant playeron the Ukrainian classified adsmarket is prom.ua. According tothe gemiusAudience study fromMarch 2010, it had over 1 millionreal users and a reach level of only1 percentage point lower than theleader’s. Like ua.all-biz.info, prom.uais a business directory for companies Do you CEE? Ukraine
    • 252 1.6. TOP FINANCE SITES BY REACH NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH USERS USER USER 1 liga.net 1 154 514 9 00:14:32 13% 2 finance.ua 526 025 19 00:32:18 6% 3 ligazakon.ua 249 941 5 00:06:22 3% Table 6 Top 3 finance sites in Ukraine by reach level (gemiusAudience, March 2010)According to the gemiusAudience of operational information forstudy from March 2010, there was one financial market operators. Finance.leading finance site in Ukraine, liga.net. ua is a respected business newsIts reach level amounted to 13% that service with an online audience ofis over 1.1 million real users. The site over 526,000 users. Since it is onebelongs to LigaBusinessInform, one of of the oldest sites in this category,the largest Ukrainian news agencies. its position is well established andIt is a respected source of information therefore has one of the mostfor Ukrainians. It offers its users with expensive online ad venues in Ukraine.news and up-to-date financial marketinformation. Moreover, they can visit In March 2010, another populara forum and exchange their views finance site among the Ukrainianor ask for advice from other visitors. population was ligazakon.ua.Liga’s main source of income is Like liga.net, it is owned byadvertisements. LigaBusinessInform. Its reach level amounted to 3% and the averageIn second place of the top 3 ranking is user spent 6 minutes on the service.finance.ua, owned by the Infinservice The site has an online databaseAgency (www.ifs.kiev.ua), which of documents, laws and analysesspecializes in collecting and diffusion available on demand, after a payment. 2. ONLINE AUDIENCE The Ukrainian gender structure of In terms of age the mostthe online population is dominated by significant group within the Ukrainianmen. Although women constitute the online population was young peoplemajority of the Ukrainian population, aged 15-24, who in March 2010in March 2010 men accounted for constituted 37%. The second largest56% of the online audience. However, group, users aged 25-34, accountedthe average woman spent around 20 for 28% of the online population. Theminutes more online than the average share of successively older groups fallsman. with age and users over 55 constitutesDo you CEE? Ukraine
    • 254only 3% of the market. However, what 62% of Ukrainian internet usersis interesting is that the oldest internet live in cities with over 500,000users in Ukraine spent the most time inhabitants. This was 3 percentageper user online, i.e. almost 10 hours points less than in March 2009.on averange. Only 7% of the online population (2 percentage points more than a year Ukrainian internet users are well- before) lived in villages. When iteducated. The majority of Ukrainian comes to average time spent online,internet users have higher education. internet users from cities with 101,000According to the gemiusAudience – 500,000 inhabitants came top.study from March 2010 they accountedfor 47% of the online population in In March 2010 the mostUkraine. The next significant group numerous group in terms ofwere users with incomplete higher occupation (26%) among Ukrainianeducation (28%). Together they internet users were highly qualifiedaccounted for 75% of the online specialists. Second place belonged toaudience. Bearing in mind that students, who accounted for 23% ofUkrainian internet users are young, the online population.the fact that 17% of them graduatedfrom secondary school bodes well forthe future educational structure of theUkrainian online population. 3. TOOLS 3.1. BROWSERSChart 1 Top browsers in Ukraine by share of page views generated by internet users who visit Ukrai-nian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)3.1. Browsers recently MSIE’s share of page views generated by internet users who visitFor many years the leader on the Ukrainian websites using gemiusTrafficUkrainian browsers market was is decreasing. At the end of 2009 itMicrosoft Internet Explorer. However, was overtaken by Opera. Moreover,Do you CEE? Ukraine
    • 255MSIE’s 2nd position is threatenedby the growing popularity of Firefox. 3.2. OPERATING SYSTEMSDuring the past twelve months itsshare of the market has increased by4 percentage points, while during thesame period MSIE’s has decreased by13.Another browser used by Ukrainianinternet users is Chrome, whosemarket share after the first quarter of2010 amounted to 4%.3.2. Operating systems Chart 2 Top operating systems in Ukraine by share of page views generated by internet users who visit Ukrainian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)As on the other CEE markets, theleader among operating systems inUkraine is Windows XP. After thefirst quarter of 2010 its share of themarket, studied by gemiusTraffic, 3.3. SEARCH ENGINESconstituted 83% and its positionseems to be unthreatened. However,the newcomer, Windows 7, gainedalmost 9% of the market in less thana year. Windows Vista did not meetthe Ukrainian online audience’sexpectations and after a short periodof growth its market share is nowdeclining. After the first quarter of2010 it amounted to 6%. Chart 3 Top search engines in Ukraine by share of visits made by internet users who visit Ukrainian3.3. Search engines websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)What is interesting about theUkrainian search engine market isthat it is not as dominated by Googleas are the markets in other CEE 3.4. SCREEN RESOLUTIONScountries (except Russia). After thefirst quarter of 2010 it accounted for62% of the visits made by internetusers who visit Ukrainian websitesusing gemiusTraffic. The second forcewas Yandex with a market share of34%. Other search engines, i.e. Meta,Rambler and MSN, were not popularamong Ukrainians (2%, 2% and 1%,respectively) and therefore do notpose any threat to the two mainplayers. Chart 4 Screen resolutions in Ukraine by share of page views generated by internet users who visit Ukrainian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010) Do you CEE? Ukraine
    • 256 3.5. MOBILE DEVICESChart 5 Top 5 mobile devices in Ukraine by the website-averaged percentage share of page viewsgenerated by internet users from Ukraine, who visit Ukrainian websites using gemiusTraffic(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10**to 2010-07-253.4. Screen resolutions second position and according to the gemiusTraffic study was responsibleLike other CEE online markets, for 6% of page views generated bythe market share of 1024 x 768 mobile devices on an average websitemonitor screen resolutions has been in July 2010.decreasing over the past few years.However, unlike the other markets,it is no longer the most popularchoice among Ukrainians. After thefirst quarter of 2010 the leader wasa screen resolution of 1280 x 1024.Other popular ones in the first quarterof 2010 were 1280 x 800 and1440 x 900.3.5. Mobile devices - modelsThe most popular mobile device usedto connect the web on the Ukrainianmarket is the iPhone, which hasa market share of more than 7%.However, it is gradually losing itsposition in favor of the iPad, which isconstantly becoming more popular,increasing its share by 2 percentagepoints within the past two months.The growth within these last twomonths could be observed also forNokia 5130 XpressMusic, which takesDo you CEE? Ukraine
    • 257 4. BRANCH ORGANIZATIONSUkrainian Association Of Internet social, economic, technological andAdvertising (UAIR) political environment in Ukraine, which supports development of thehttp://uair.org.ua/ Ukrainian internet.Description: The mission of the The Association carries out rule-Ukrainian Association Of Internet making functions and supports theAdvertising is to create conditions development of modern IT productsfor effective development of the and technologies; it assists in theadvertising market in Ukraine in order organization of a dialog betweento meet the needs of advertisers, representatives of business andconsumers and users of internet state structures with the aim of theresources on a global level, as well development of the national electronicas to increase the share of advertiser market as one of priority industries ofbudgets. To achieve this, UAIR has economy of Ukraine.begun a full study of the Ukrainianinternet. UAIR was established in Members: Unicom Systems Ltd;2007. In the autumn of 2010 the Monexy Ltd; OSMP Ltd; Paymentassociation will be expanding and Systems Ltd; Private entrepreneurchanging its structure and it is planned physical person Kurshynov V.V. Project:that it will fulfill a wider range of myEshop; UnIT Ltd; Interkassa Ltd;regulatory tasks on the market. Dizex Company Limited; Private Enterprise NeoVen; Private EnterpriseMembers: Portals, international 2pay; Private Enterprises Grushetskimarketing and advertisement D.A Projekt: HostService; Privatenetworks representatives (e.g. entrepreneur-physical person KirilovLigaBusinessInform, Bigmir-Internet, S.O. Platform for Internet shops:META, GoupM, Initiative, Publicis). Shopium.ua.Association of Participants ofElectronic Business of Ukrainehttp://uelbu.org/Description: The public organization„Association of Participants ofElectronic Business of Ukraine”(UELBU) was founded in May 2008in Kyiv. The association operatesas a non-state noncommercialorganization, and is a voluntarilyassociation of businesses andother legal entities conductingtheir business in the sector ofinformation technologies. Theaim of UELBU is to form a healthy Do you CEE? Ukraine
    • 258 5. OPINIONS FROM THE MARKETDmytro SholomkoDirector of Google UkraineOnline advertising marketWhat are the opportunities and obstacles for the online advertising market on yourlocal market?Ukraine is one of the fastest growing online markets in Europe; there are still manyopportunities for everyone involved in online business. Services, even basic ones,are not yet professionally developed, so there is much room for growth. However,there are many obstacles: first of all, there is the lack of e-commerce mechanismson the market (like payment solutions) and also an absence of support from thegovernment on the legislative level.Dominating trendsWhat are the recent trends on your local online market? What areas are expectedto develop most in the future?E-commerce projects and SMBs are segments that are growing fastest in theonline advertising market in Ukraine. There are no signs that the pace of growthwill fall in the nearest future.Global vs. local playersAre the local players present on your local market strong enough to compete withthe global giants? What advantages and strategies do they use in this battle?There are no strong local players on the market, growth is mostly driven byinternational companies and foreign investment.Market specificsWhat makes your local online market unique? Are there any specifics that make itdifferent from others in the CEE region?Ukraine is a bilingual market, with both Ukrainian and Russian languages freelyused in online activities (with Ukrainian usage growing slightly faster). The marketis also influenced by different trends:• in content, Ukrainian users spend much time on Russian websites, while• in business practices, they follow the Polish model, with Polish companies being one of the top market players developing e-commerce in Ukraine.Do you CEE? Ukraine
    • 259It is important to consider these factors while planning business developmentin Ukraine, as many market players find them confusing and cannot operateeffectively.Sergey PetrenkoGeneral Director of Yandex.UkraineOnline advertising marketWhat are the opportunities and obstacles for the online advertising market on yourlocal market?The online market in Ukraine is still not fully developed and small. According tothe assumptions of the Ukrainian Advertising Coalition (UAC), the share of onlineadvertising will account for 3.4% of total adspends in Ukraine. However, at thesame time, online ads are growing faster than other media in Ukraine: a 58%increase in 2009 vs. 2010. In 2010, the UAC expects 230 million hryvnas to bespent on online advertising, where 130 million will be spent on display ads and100 million on context and classifieds advertising. In general, the online market inUkraine is developing, and increasingly more key advertisers use the internet as animportant and efficient media channel.Market specificsWhat makes your local online market unique? Are there any specifics that make itdifferent from others in the CEE region?At present, internet penetration on the Ukrainian internet market is one of thelowest in Europe. However, this makes the market unique, because the number ofinternet users in the upcoming years will grow and new users will not necessarilybehave the same way as current ones. Even now, according to the latest research,new internet users behave differently than old UAnet users: they prefer otherresources, use other services; therefore those market players, who manage toguess the desires of these novices will score a considerable advantage inthe future. Do you CEE? Ukraine
    • 260 METHODOLOGICAL NOTE DATA SOURCESThe general market descriptions provided in the report are based upon dataacquired by the gemiusAudience study. For each country, reach rankings of thetop ten websites included in this study are presented. Additional statistics fromgemiusAudience study further enrich the information in the rankings. Romaniaconstitutes the only exception, where the ranking according to SATI, by BRATTraffic measurement was presented. SOURCE DATE NUMBER OF WEBSITES AGE GROUP INCLUDED Belarus gemiusAudience March 2010 124 15+ Bulgaria gemiusAudience March 2010 306 15+ Croatia Gemius/Valicon, gemiusAudience March 2010 285 12+ Czech Republic NetMonitor – SPIR/Mediaresearch/Gemius March 2010 483 10+ Estonia gemiusAudience March 2010 37 15+ Hungary gemius/Ipsos Audience March 2010 2161 15+ Latvia gemiusAudience March 2010 189 15+ Lithuania gemiusAudience March 2010 125 7-74 Poland Megapanel PBI/Gemius March 2010 13954 7+ Romania SATI, by BRAT Traffic measurement March 2010 over 300 14-64 Russia gemiusAudience March 2010 266 18+ Slovakia AIMmonitor – AIM – Mediaresearch & Gemius March 2010 95 14+ Slovenia Gemius/Valicon, gemiusAudience MOSS March 2010 117 10+ Turkey gemiusAudience March 2010 154 12+ Ukraine gemiusAudience March 2010 296 14+Another type of data presented in the report originates from gemiusTraffic. Thisconcerns information on browsers, operating systems, search engines, screenresolutions and mobile devices. Data for web browsers and operating systemsof low popularity is aggregated in groups consisting of all versions of a particularbrowser or operating system.The description of each market was supported with the experience and knowledgeof Gemius local representatives present in each of the countries included in thereport.Do you CEE? METHODOLOGICAL NOTE
    • 261The “Opinions from the market” section, which contains forecasts concerning thefuture of the internet in the researched countries, consists of direct citations ofthe opinions expressed by local market experts.Data on the overall number of internet users presented at the beginning of eachcountry chapter is for March 2010. Further reference can be found below Charts1,2 and 3 in Online Landscape chapter. ABOUT gemiusAudienceGemius sets the standard for online audience and internet applicationmeasurement (gemiusAudience) in almost half of all European countries.The gemiusAudience study integrates offline research, site-centric measurement,on-site questionnaire surveying and user-centric measurement to provide mediasellers, planners and buyers with online media planning data. The data is providedonce per month, reporting on a weekly or monthly basis.The cookie files are recorded for a user upon a first page view generated ina measured month. The files present data for cookies that have been ascribedto a particular country until the end of the month. Panellists who are enrolledin a software panel (where such is available, i.e. Hungary, Poland and Russia),are recruited from a particular country only, based on their geolocation details.More information on this study can be found on www.gemius.com andwww.audience.gemius.pl. ABOUT gemiusTrafficThe gemiusTraffic study provides information on internet users’ web site behaviourand technical characteristics of their computers. The data is gathered with the useof counting scripts, which are embedded in the code of sites included in the study.For more information go to www.gemius.com and www.rankingcee.com websites.Rankings concerning web browsers, operating systems and screen resolutions arebased on the number of page views generated on the monitored sites. For eachbrowser, operating system and screen resolution we calculate the total number ofpage views on all sites, so that we can obtain the percentage share of page viewsfrom this browser, operating system and screen resolution relative to all page viewsidentified in the study.Search engine ranking is calculated using the percentage of visits made from searchengines on a given country’s sites included in gemiusTraffic. An average from thepercentage of visits made on the measured websites is calculated for each searchengine. The outcome is the position a search engine takes in the ranking.A ranking of mobile devices that are used by persons connecting from Polandwith Polish web sites. The ranking is created on the basis of the website-averagedpercentage share of page views on sites participating in gemiusTraffic. Do you CEE? METHODOLOGICAL NOTE
    • 262 GLOSSARYReal users – the number of individuals in a given month who visited a selected [1] The conditions of choosing players presented in section devoted to portals may vary slightlyweb site at least once. This number represents the reach of a researched website depending on the official categorizationand shows the actual number of people – not computers or cookies, which are implemented in gemiusAudience study in given country as well as on the market standards.often understand as visitors – that visited the web site. The socio-demographicprofile of these people can be determined too. [2]The conditions of choosing players presented in the section devoted to social-networking services may vary slightly depending onPage View – loading of a WWW document of a given internet web site. When the official categorization implemented inan internet user views a web page, this generates a page view. The page view is gemiusAudience study in given country as well as on the market standards.recorded through a special tracking script that has been placed in the code ofthe relevant web page.Reach – the indicator is expressed as a percentage and constitutes the ratio ofthe number of visitors (real users) who generated at least one page view onthe selected web site within the given time period, to the total number of internetusers within that time period.Average Time Spent per Real User – the total time spent by the average real userfrom the given target group on the selected web site or web sites.Average Number of Page Views per Real User – the number of page views onthe selected web site generated by the average Visitor from the given target groupwithin a given time period.Horizontal portal [1] – an internet portal site (not a group of owners) offeringa broad range of publisher generated content and services. Essentially, a horizontalportal contains information and links to websites featuring diverse subjects,contrary to a vertical portal, which is focused on a particular topic. Moreover,a horizontal portal should provide access to an email service, as well as communityfeatures such as: a forum, chat or social networking tools. The term “portal”as used in the report, refers to the horizontal portal.Social networking service [2] – is an online platform focused on building networksconnecting people, e.g. persons who share interests or are involved in similaractivities. A social network service essentially consists of a representation of eachuser (profile), his/her social links, and a variety of additional services. Most socialnetwork services provide means for users to interact with each other, such asmessengers or chats.Do you CEE? METHODOLOGICAL NOTE
    • 263 ABOUT GEMIUSGemius - an international research agency, the leader and forerunner in thefield of research of the internet and on the internet in Europe. The Companyoffers professional research solutions, analytical and advisory services, fromsite-centric and user-centric studies to technologically-advanced tools forstudying internet user behaviour on chosen websites (gemiusTraffic), internetuser socio-demographic profiles (gemiusProfile), the quality of WWW pageusage (gemiusUsability) and the effectiveness of internet advertising campaigns(gemiusEffect). Gemius also conducts research related to subjects submitted bycustomers (gemiusAdHoc). Apart from the above mentioned research services,Gemius offers a study on the behaviour of users who view online multimediacontent (gemiusStream) and a research tool for immediate measurement andpresentation of all clicks made by internet users on a website (gemiusHeatMap).Gemius sets the standard for online audience and internet applicationmeasurement (gemiusAudience) in almost half of all European countries.Gemius, established in Poland in 1999, is active on over 20 markets in Europeand the Middle East.For more information, please see www.gemius.com ABOUT IABIAB Europe exists to support and promote the growth of the European digitaland interactive marketing industry.Representing 21 country members across Europe and over 5000 companies,the Interactive Advertising Bureau (IAB) Europe is the trade association ofthe European digital and interactive marketing industry. Supported by everymajor advertiser, media group, agency, portal, technology and service provider,the power of IAB Europe comes from its extensive membership.IAB Europe exists to promote the growth of Europe’s interactive advertisingmarkets, to protect the interest of the industry, to regulate practices on themarket and to educate the stakeholders in the digital landscape. To achieve thesegoals, IAB Europe coordinates activities across the region including public affairs,benchmarking, research, setting standards and best practices.The member countries are Austria, Belgium, Croatia, Denmark, Finland, France,Germany, Greece, Hungary, Italy, Netherlands, Norway, Poland, Portugal, Romania,Russia, Slovenia, Spain, Sweden, Switzerland, Turkey and the UK. Our corporatemembers include Adobe, Alcatel-Lucent, BBC.com, comScore Europe,Ernst & Young, Fox Interactive Media, Gemius, Goldbach Media Group, Google,Hi-Media-AdLink, InSites Consulting, Koan, Microsoft Europe, Netlog, NewsCorporation, Nugg.ad, Nielsen Online, Orange Advertising Network, PublicitasEurope, Sonnenschein, Truvo, Turner/CNN and United Internet Media and zanox.For more information, please see www.iabeurope.eu Do you CEE? METHODOLOGICAL NOTE
    • 264 SATI MethodologySATI Universe is composed of 5.203.000 persons represented by Romanianpopulation aged between 14 and 64 who live in urban areas and used the internet.The methodology used for SATI was chosen by BRAT and belongs to the Germancompany Spring GmbH. It comprises several stages: traffic measurement,collecting data necessary to define the audience and the profiles of the visitors,a complex mathematical algorithm defining the persons visiting a website ina given period of time. The key phases of the methodology are described below. DATA COLLECTINGThe data used to calculate the audience and the socio-demographic profiles ofthe visitors are resulted by mixed methods of data collection, in an attempt totake the best advantage of each method. The results of the traffic measurementand of the online survey are combined in order to size the number of visitors ofa website:• a technical measurement of each website’s traffic, providing essential data for determining unique clients. A database will store each monthly set of Unique Clients for all the websites measured in SATI,• a survey is carried out on each website, by posting an invitation to take part in the online survey and displaying an online questionnaire in order to get information about the websites’ visitors, the persons who have already used the computers/browsers assessed before,• the data revealing the dimension of the universe and the structure used to weigh the data collected through the online survey are measured by SNA FOCUS - a face-to-face survey, carried out on a representative sample for urban population aged 14-64 years in Romania. TRAFFIC MEASUREMENTThe technical measurement of the traffic serves as a basis for audience sizing.The Unique Clients measured by the traffic measurement system is the basicinformation for further identification of single visitors. The Unique Clients arethe browsers/computers used by a visitor to see a particular website. The dataabout the Unique Clients are obtained using cookies, as well as other combinationof variables. To reduce the risk of double measurement of a Unique Client due toinaccurate identification (for instance due to cookie deletion,), the Unique Clientsobtained from the measurement are then filtered through a specific statisticalprocedure, resulting a number of unique qualified clients.Do you CEE? SATI Methodology
    • 265 ONLINE SURVEYThe sample for the online research is randomly drawn out from the group of theunique qualified clients on a monthly basis. If a user selected in the sample returnsto any of the websites in the study, an invitation to take part to the online survey issent to him/her.A complex system of sample administration allows for displaying invitations tocomplete the online questionnaire to the same single client on many differentwebsites, at different hours, so that an optimal response rate can be obtained.The esponses collected from that unique client will be then attributed to theentire list of websites he/she visited during the research period.A complex process of data-mining and transformation will compensatethe distortion occurred due to ‘heavy’ users and will also solve the multi-clientand ulti-user issues. MAIN INDICATORS AND THEIR DEFINITIONSNumber of Visitors per week – the average number of visitors (persons,not browsers) visiting a website per week in the measured period.Number of Unique Clients – the number of Unique Clients visiting a website atleast once in the reporting time period, calculated on the basis of cookies or othervariables in case of a cookie-disabled browser (IP, user-agent, etc). A Unique Clientbasically translates into a browser.Number of Page Impressions – the number of pages of a website, displayed ina browser at the request of a visitor.Number of Visits – the number of series of one or more page impressions sent tothe visitor’s browser, as a result of a visitor’s request. A visit ends when the periodbetween 2 page impressions is longer than 30 minutes. Do you CEE? SATI Methodology