Turkish Internet Sector Research Posted about this report here: (in Turkish) http://www.webrazzi.com/2008/05/16/turkiye-internet-sektoru-raporu/

1. Turkish Internet Sector Overview
May 2008
Sina Afra
eBay Germany, Director
Gittigidiyor (eBay Turkey), Member of Board

2. Turkey is catching up to the Top 10 Internet countries worldwide
Internet Users by Internet Penetration Rate by
Country in 2007 (m) Country in 2007 (%)
United States 208 Australia 75%
China 137 Canada 71%
Japan 88 South Korea 70%
India 60 United States 69%
Germany 49 Japan 69%
Brazil 43 Netherlands 65%
United Kingdom 38 United Kingdom 62%
South Korea 34 Taiw an 60%
France 31 Germany 59%
Italy 29 Italy 50%
Turkey 26 France 49%
Russia
Canada
25
24
Turkey is worldwide No. 11 Spain
Malaysia 40%
46%
Mexico 22 in Internet Users Turkey 37%
Spain 19 Poland 29%
Indonesia 16 Argentina 25%
Australia 15 Brazil 22%
Taiw an 14 Mexico 20%
Poland 11
11
Russia
10%
18% Turkey’s penetration is
Netherlands China
Malaysia 10 Indonesia 7% promising for future growth
Argentina 10 India 5%
(European Medium 59%)
Sources:
Population figures 2007: CIA World Factbook
Internet User Statistics: World Internet Stats; eBay
Only countries with more than 10 m Internet Users were covered
eBay 2008 Sina Afra 2

3. Key metric of broadband penetration in Turkey is aligning with
leading countries
Broadband Subscriptions • Broadband in Turkey started late, 2003
by Country in 2007 (m) with 55,000 subscriptions, but with
tremendous growth
US N 66,2 66,2
Japan 27,2
Germany 17,5 • Avg. Connection speed is 1 Mbps
South Korea 14,4
UK 14,4
France 14,3 • Monthly fees dropping
Italy 9,3
Canada 8,1
Turkey 7,5
Spain 7,5 Broadband • 2,000,000 IP DSLAM ports with
Netherlands 5,5 is growing strongly connection speed up to 70 Mbps are
Mexico 4,8
Australia 4,7
going to be deployed the next years (Start
Poland 3,0 was Jan 2008) * - This is especially
Sw eden 2,6
important for IPTV
Belgium 2,5
Sw itzerland 2,3
Denmark 1,9
Portugal 1,6
Austria 1,5
Finland 1,5
Norw ay 1,4
Sources:
Organization for Economic Cooperation and Development (OECD),
OECD Broadband Portal,quot; November 6, 2007
Turkish Telecom 12/ 2007
eBay *Turkish Telecom, 09/2007 2008 Sina Afra 3

4. eCommerce in Turkey is growing continuously
Turkish eCommerce
Total Volume in M USD
10.000 90%
81%
8.955
9.000 80%
8.000 71%
70%
7.000
61% 60%
6.000 5.569
50%
5.000
40%
4.000
3.265
30%
3.000
1.800 20%
2.000
1.000 10%
0 0%
2006a 2007a 2008e 2009e
Total Market in M USD YoY in %
Notes:
Including New Goods, Used Goods, Motors, Travel, Entertainment, Real Estate, Personals
Sources:
BKM ; Internet Card Centre Reports, eBay estimates
eBay 2008 Sina Afra 4

5. Also other metrics indicate that Turkey is catching up on the
Internet Sector…
Top 10 Countries Worldwide
Ranked by eGovernment 2007 (100-point scale)
0 20 40 60 80 100
South Korea
74,9
Singapore 54
Taiwan 51,1
US 49,4
UK 44,3
Canada 44,1
Portugal 43,8
Australia 43,5
Turkey 43,5
Germany 42,9
Note: based on availability of publications, databases and number of online services (ie the entire transaction can be
completed online), features important for information availability, citizen access, portal access and service delivery; excludes
Web sites for sub-national units, obscure boards and commissions, local government, regional units and municipal offices
Source: Brown University, Taubman Center for Public Policy, quot;Global
E-Government, 2007,quot; August 2007, eBay
eBay 2008 Sina Afra 5

6. … all kind of metrics, indeed
Top 10 Countries Hosting Phishing Web Sites Top 10 Countries Worldwide,
Worldwide, 2007 (% of total) Ranked by active Facebook Users )
0% 5% 10% 15% 20% 25% 30% 35%
US 32,41%
China 13,00%
Russia 7,41%
South Korea 6,78%
Germany 4,15%
France 3,51%
Turkey 3,38%
UK 3,30%
Canada 3,29%
Italy 1,97%
Notes: a) based on Websense Security Labs data b) Phishing is an attempt to criminally and fraudulently acquire sensitive information, such as
usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication
Source: Anti-Phising Working Group (APWG), quot;Phishing Activity Trends: Report for the Month of May, 2007,quot; July 2007
eBay 2008 Sina Afra 6

7. The internet population is young – 77% of the internet population
is between 16 and 34 years old
Internet Users in Turkey Who are they?
by ages
45,03% 66% of Internet users is male, 34% is
female
Average age is 26 both for male and
32,09% female users
53% is in A/B/C1 SES
22% is graduated from university
68% is single
14,12% 45% is employed, 37% is studying
39% speaks English
6,80% 52% has PC in the house
91% has cellphone
1,55% 0,39% 84% is watching TV daily (avg. time
spend is 3 hours)
63% is listening to the radio daily (avg.
16-24 25-34 35-44 45-54 55-64 65-74 time spend is 2 hours)
Average Internet connection is 2.5 hours
/ day
Average Internet connections per month
is 22
Source: Nokta Internet Technologies 2008, GfK Turkey Report 2006
eBay 2008 Sina Afra 7

8. Online advertising will become the third largest advertising area in 2010
– especially when penetration of online ad technologies increase
Turkish Advertising Market Online Growth Outlook in M USD
by medium (in %) 2005 - 2010
Online
2.3 B USD 3.6 B USD share < 1% 2% 2% 3% 6% 7%
1% 1%
100% 300
4% 3%
6% 5%
4% 4% 249
2% 7% 250
80%
32% 200
31% 178
60%
150
40%
100 89
51% 49%
20% 50
50 33
23
0% 0
2007 2010 2005 2006 2007 2008 2009 2010
TV Newspapers Online Magazines Outdoor Radio Other
Note: Net Advertising Revenues
Sources: Türkiye Reklam Arastirma Merkezi (TRAM); eBay estimates
eBay 2008 Sina Afra 8

9. The Internet Landscape in Turkey
Rank Site Type Ownership
1 google.com.tr Search Google
2 facebook.com Social Network Facebook
3 live.com Portal Microsoft
4 google.com Search Google
Top 25 Online
5 youtube.com Video Google Companies
6 Milliyet.com.tr News Dogan Media according
7 hurriyet.com.tr News Dogan Media Alexa.com:
8 mynet.com Portal Mynet
9 yahoo.com Search Yahoo • News and
10 rapidshare.com File Sharing Rapidshare Information as well
11 blogger.com Blog Google as Search are the
12 msn.com Search Microsoft
types of internet
13 ekolay.net Portal Dogan Media
activities with the
14 sourtimes.org Information Independent
strongest traffic
15 gittigidiyor.com eCommerce eBay & Independent
16 Sahibinden.com eCommerce Independent
17 wikipedia.org Information Wikipedia • Google and Dogan
18 internethaber.com News Independent control each 4 out
19 haberturk.com News Ciner Yayin of the top 25 sites
20 imageshack.us File Sharing Imageschack
21 sabah.com.tr News Merkez
22 haber7.com News Kanal 7
23 netlog.com Social Network Netlog
24 blogcu.com Blog Nokta Internet
25 hepsiburada.com eCommerce Dogan Media
eBay 2008 Sina Afra 9

10. Outlook: Turkey’s Online Sector in 2010
Turkish Internet Sector in 2010:
• 32-36 M Internet Users with a 10 B USD eCommerce Market and 250 M USD Online Advertising Market
• Turkey will be one of the top 10 countries in Internet Users and catch up in eCommerce and Advertising
The strategic importance of gateways will increase
• There are certain activities that drive a user’s decision to go to one site over another
• We call these activities gateways: email, search, shopping, news, weather, maps, etc. The importance of gateways is increasing
• The game could be over for email and search but beyond these activities, no site dominates a gateway….and the gateways on
Major Developments:
mobile devices are different and completely up for grabs
eCommerce will continue to develop strongly
• The Turkish internet users will arrive in the next 2-3 in the eCommerce and the buyer side will continue to evolve.
• The seller side will introduce new ways of shopping (e.g. Exclusive Shopping Sites; Private Sales; Activity based Shopping etc.) and
improved technologies (e.g. catalogue based Shopping Comparison)
• Mass customization as well as niche players will enter the long tail – this will lead to a strong entrepreneurship in the eCommerce
segment
Consolidation is inevitable will continue – 2006 was likely just the beginning:
• We expect that some companies will successfully pursue a global multi-business strategy, but it will likely be done via partnerships,
acquisitions, and/or investments as opposed to a pure organic build strategy
• Turkish Stand-alone companies and brands can survive as independents, but will likely still be pursued most aggressively by larger
companies to penetrate consumers and advertisers
• The value of a business that cannot compete on engagement and monetization will become greater for an acquirer that has a
strategic hole in its business mix than the value of the business on a stand-alone basis
We expect the accelerated introduction of advanced advertising technologies and international partnerships in the
advertising segment
Foreign VC and Business Angel money will discover Turkey and create the financial framework of a strong
entrepreneurship driven market
eBay 2008 Sina Afra 10

11. These strategic themes will continue to define success in Turkey
1. Maximize engagement – owning differentiated and complementary gateways is
required to drive reach, frequency and duration
Expand the user base – consumers, publishers, advertisers, buyers and sellers
Increase usage areas – applications (email, search, VoIP, IM, blogging, software), services
(payments, stores, advertising), information (maps, weather, news), entertainment (sports,
user-generated content, WebTV), and commerce
Develop a multi-platform strategy – PC, mobile device, and the television
2. Optimize monetization – engagement is necessary but not sufficient
Advertising – branded, pay for performance search (click, call, acquisition, lead generation),
direct marketing
e-Commerce – retail, marketplace, stores, shopping comparison
Subscriptions – VoIP, email, fantasy sports, dating, careers, games
Payments – transactions, communications, B2B, PC, mobile, etc.
3. Be part of the internalization – to capture two increasingly critical benefits
Leverage learning across markets in order to capture growth
Provide Incremental benefits to users (consumers, advertisers, sellers, etc.) due to a global
footprint
eBay 2008 Sina Afra 11

12. Contact Details
Sina Afra
eBay Germany,
German Leadership Team
safra@ebay.de
+49 – 163 – 3229 402
eBay 2008 Sina Afra 12