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State of the Netessential eBusiness intelligence for Irish managers                                                       ...
1. Internet                                                         Sm                                                    ...
Top Trends 3. eCommerce                                                                                                   ...
Digital media mix 2010: Ireland vs UK5. Digital                               Display       31%                     25%   ...
Top Trends7. Businesses online                                                      Website                               ...
Deals explosion brings mixed blessings for businessesIt’s phenomenal                              It’s hard to miss       ...
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State of the Net issue 21 - eCommerce sociability survey, internet trends from AMAS


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A survey of social features on 100 eCommerce websites is the main feature of the Summer 2011 issue of State of the Net. It also covers trends in internet use, broadband and social media in Ireland as well as new research by Google on Irish businesses online.

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State of the Net issue 21 - eCommerce sociability survey, internet trends from AMAS

  1. 1. State of the Netessential eBusiness intelligence for Irish managers www.amas.ieA quarterly bulletin on online activity in Ireland ISSN: 1649 issue 21 Summer 2011Research: how sociable is Irish eCommerce? as locally, social media is The ten criteria included a For full details of the research, changing consumer internet number of sharing features, including details of the scoring and purchasing behaviour. through Facebook, Twitter and for each of the sites are Site users will click on a email. They tended to be the published on the AMAS website. Facebook follow or link, or most popular social features share a special offer or other among the eCommerce sites content on an eCommerce reviewed. Less popular, and site with friends through email used only by the top Social features on and sharing content through scoring eCommerce sites social media sites. 10 0 Left-hand axis – number of The inclusion of some social social features in use by the media features on eCommerce 1 9 eCommerce sites analysed sites has several advantages, Aileen O’Toole, not least the integration of Right-hand axis – Managing Director, social media marketing 8 1 number of sites which s re AMAS activity with on-site content had the number of tu and promotions. However, 7 2 social features Nu fea our research highlighted m l © AMAS graphic ciaMany companies selling that some online be 6 +1 = 4 ( so roonline in Ireland are not brands which have of fsembedding social features active Facebook No sites ite +9 = erinto their websites, despite and Twitter 5 11 mb sstrong evidence that accounts Nusuch features can boost do not 4 +17 = 20eCommerce revenues promoteand improve consumer their socialloyalty. AMAS reviewed media 3 +10 = 13100 transactional sites and presencescored each against ten on their 2 +14 = 17separate social criteria. eCom- merce 1 +6 = 11Amazon is Ireland’s most sites.sociable site with a scoreof nine, followed by HMV 0 +16 = 20which scored eight and thenCD Wow and Littlewoods Source: AMAS review of 100which jointly hold third place What did we10 score and 0 sites, were the publication of websites, May 2011. Each sitewith scores of seven. The why? The list of 100 sites customer images of products, was evaluated on ten Irish website was was drawn up by AMAS to 9 1 customer tags and displayingsports retailer Elverys, which reflect the main commercial what other site visitors have 10 criteriascored six as did Pixmania, sectors 8and sites which, in 1 bought or viewed. eseBay and our view, had built up Facebook like, follow or share ur 7 2 It must be recognised that some at awareness and use among Twitter tweet or follow Nu fe mA fifth had no social media Irish consumers. Sites where sites may have elected not to l Email to a friend cia befeatures at all on their sites, it 6 possible to transact +1 = is 4 implement across all ten criteria so ro Share and follow links of fsincluding some big guns business – be it buying and perhaps No sites focus their efforts ite +9 = on 11 ones that are likely to er 5 Product reviews by customerssuch as Ryanair, Tesco and an airline ticket, paying for the mb s Wish list or registry NuUPC. A further 42% had just 4 an insurance product or +17 = 20 most benefits. Some deliver thebetween one and three of other goods or services – or indeed all of the 11 retailers What others are viewing or boughtthe ten social features 3 that were included. Where +10 =got 13 who scores of five each Facebook storewere scored. possible among multinational may be happy with that and 2 players, AMAS assessed +14 = value in including perceive no17 Customer tagsInternationally, as well their localised Irish sites. some of the other features. Customer images of product 1 +6 = 11 0 +16 = 20Compiled by AMAS in association with the Irish Internet Association
  2. 2. 1. Internet Sm artp hone Tablet More time is being spent by Irish consumers online, to such an use 2% Ho extent that it is causing huge 7% me shifts in media behaviour. New C PC kP research shows that typically / Time spent online, Wor as much time is being spent Lapto by internet access 16% every day online as watching TV, the result of greater internet p device use driven largely by the growth in social media. However, as 75% market researcher REDC argues, one medium is not necessarily Average time spent on media per day replacing another – online Paid for search media consumption often complements other media. TV 2hrs 49m More of the time people are spending on the internet is via Online 2hrs 44m a smartphone. The current level © AMAS graphic of 7% is predicted by REDC to ( grow to 10-12% within a year. So Radio 2hrs what are people doing online? Source: REDC Most popular daily activities are De-coding digital reading and watching the news Print 0hrs 37m trends in Ireland (55% of the sample), followed by 2011, Online browsing postings (32%), posting survey of 500 messages (24%) and watching © AMAS graphic ( adults aged 18+ movies, video or TV online (19%). 2. BroadbandDemand for broadband and onlineservices continues to remain strong,despite the slump in Irish consumerspending. Over the course of 2010,more than 140,000 new broadbandsubscriptions were logged by ComReg, Broadband growthbringing the grand total to 1.59 million. 1,700,000 1,591,803The latest statistics, for the final quarter of 1,600,000 1,518,3492010, show that cable eclipsed mobile toshow the strongest growth levels across 1,500,000 1,548,625all broadband platforms – cable grew 1,509,934by 34% over the course of the year to 1,400,000 1,443,350 1,305,035203,000, compared with mobile’s 1,300,000 1,272,166increase of 27% to 572,000. 1,200,255 1,361,254 1,200,000 1,125,000Ireland continues to lag behind theEU in terms of broadband penetration 1,100,000 1,055,000 © AMAS graphic ( 992,000rates. The latest Eurostat figures put 1,000,000the EU27 average at 25.6% but Irelandcomes in at 22.9% while UK is 30.6%. Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10The Government’s rural broadbandscheme is designed to help close thisgap and deliver universal broadband Source: ComReg Irish Communications Market: Key Data Report - Q4 2010.access by the end of 2012. Graph shows broadband subscriptions across all platforms.
  3. 3. Top Trends 3. eCommerce Bought or ordered goods services online by category % © AMAS graphic ( Any goods Travel & holiday Clothes & Books, magazines Household Tickets Music Electronic or services accommodation sports goods & e-learning goods for events & Film equipment EU 27 40 21 19 15 14 14 13 10 UK 67 37 35 28 29 24 32 17Ireland 36 28 13 12 6 22 10 10 Source: Eurostat, 2010, respondents asked if they have bought or ordered goods or services for their own use over the past 12 monthsMaybe it’s the recession. Or Irish consumers, from 21% to Separately, Visa Europe has put primary consumer motivationmaybe it’s our relatively low 28% over the 2 year period. a value on Irish eCommerce for buying online, with half of theonline adoption levels in Ireland The same is true for tickets, activity of €2.96 billion in 2010, an 1,000 survey respondents statingcompared with the UK and which has increased from 12% increase of 39% on the previous that they believe eCommerceother EU markets. Either way, to 22%. In both categories, year, based on research from can achieve savings ofthe number of Irish consumers Ireland is ahead of the EU iReach. Value for money was the between 11% and 30%.who bought or ordered goods average but still lagging23% 80%or services online is stuck at behind the UK. 79 78 © AMAS graphic ( EU 2736%, the same level as two 70% 74 70 UKyears ago. By comparison, Incidences of online 60%online ordering or buying purchasing in Ireland lagged 58 Ireland 55among UK consumers grew behind other markets 50% 50 52 49from 57% to 67% over the same across all age groups, with 40% 45period while the EU27 average the differences between 38 40went from 32% to 40%. Ireland and the UK most 30% 33 32 27 pronounced in 45+ age 20%Some interesting trends brackets. For instance, 58% of 18 10% 14emerge when categories UK consumers aged between 8are analysed. For travel and 55 and 64 had bought online, 0%hotel accommodation, there compared with only 18% for 16-24 25-34 35-44 45-54 55-64 65-74has been significant growth Irish consumers in the same Bought or ordered goods or services online in the past 12 months by agein online purchasing among age group. Source: As above 4. Social media Number of Ireland account Ireland holders 471,000 1.94m The numbers of Facebook of active users, due to multiple and LinkedIn users in Ireland or dormant accounts. keep getting bigger. Facebook USA Other USA Other has 1.94 million Irish accounts, A third of Irish account holders 47.1m 36.3m 155m 288m almost five times what it had say they are aged 35 or older. in January 2009. However, the The number of Irish LinkedIn India UK © AMAS graphic India UK number of Facebook accounts accounts is also growing and is 9.7m 6.4m ( 25.7m 29.8m is not the same as the number within a whisker of half a million. Wo ion Wo ion rl d w i d e 1 0 0 m ill rl d w i d e 5 0 0 m ill Source: Facebook and LinkedIn, May 2011 the opportunity to win online
  4. 4. Digital media mix 2010: Ireland vs UK5. Digital Display 31% 25% Classified 23% Displayadvertising © AMAS graphic ( 18% Classified Ireland UK 1% OtherFrom paid search and online classifieds to €110m £4.097bnads on games and website sponsorships,digital advertising continues to win favourwith advertisers keen to extract maximumvalue for their hard-earned budgets. The 57%availability of better research is also giving 44% Paid for searchadvertisers and their media planners the Paid for Source: 2010 search Source: IABammunition and the confidence to switch IAB/UK Ireland UK/ PwC Onlinefrom traditional to digital channels. PwC Adspend AdSpend Study 2010 Study, survey of 26 online properties, Adds to 99% dueThe IAB Ireland/PwC research uses an advertising networks and sales houses to roundinginternationally accepted methodology toassess the scale of the Irish digital advertisingmarket. It puts a value of €110 million on the Irishdigital advertising market in 2010, a 13.5% increase Equivalent research in the UK digital marketplace. Valued aton the previous year when the overall advertising shows the extent of the opportunity slightly more than £4 billion, the UKmarket is reckoned to have contracted by at least for digital publishers, giants like market commanded a 25% share of7%. Digital is now estimated to equate to about a Google and MSN and a host of the advertising market, up from 23%15% share of the total Irish advertising market. other players in growing the Irish the previous year.Most used smartphone apps 6. Mobile © AMAS graphic ( App Reach User profile Social networking 56% • Strong female bias Smartphone penetration in Ireland is currently at 37%, with strong adoption among males • Higher among 15-24s (45%) compared with females (29%), Maps/travel 41% • Stronger male bias according to new research from Amárach. Smartphones are most popular among 25 • Higher among 35-44s to 34-year-olds, where the penetration level News 37% • Stronger male bias is 53%. On average, a smartphone owner downloads 4.8 apps per month and, as the • Higher among 25-34s table shows, social networking apps are the most used. Music 34% • Stronger male bias • Higher among 15-34s Amárach is predicting that the acceleration in smartphone use will stimulate demand for Gaming 28% • Slight male bias mobile commerce in Ireland - and forecasts • Higher among 15-34s that €800 million worth of transactions will be conducted through mobile devices in 2012. Already mobile commerce has taken offSource: Amárach Research, The Smart Future, online survey of 844 internationally, and often for some unlikelyIrish mobile phone users in May 2011, including 311 smartphone users product categories.
  5. 5. Top Trends7. Businesses online Website Channel adoption levels % 60More solid evidence that online adoption levels Online business directory 42are low among Irish SMEs. On this occasion,though, the research has a positive sting in its None of these 26tail, in the shape of an impressive initiative Page in social network 19designed to transform how small businessesand sole traders use the internet. Blog 6 © AMAS graphic ( Do not have internet 3Google commissioned Ipsos MORIto establish the online status ofa statistically representative 0 10 20 30 40 50 60sample of Irish SMEs, defined as Source: Google SME Insights Ireland, Conducted by Ipsos MORI via telephone incompanies with fewer than 50 November 2010, 821 companies surveyed which were representative ofemployees. The results are stark commercial Irish SMEs based on employee size and sector– 40% don’t have a website, 58%don’t have an entry in an onlinedirectory and 81% don’t have a Cost is another issue: 17% believe Irish SMEs. It is a partnership betweenpage on a social network site. websites are too expensive, while Google, Blacknight Solutions, An Post 33% have concerns about the time and the City and County EnterpriseWhy no website? 57% of those who don’t have involved in maintaining websites. Boards, and aims to take some of thewebsites said they have never considered having mystique out of the internet for manyone but a further 23% indicated that they were in The research was commissioned small businesses. The ambition is tothe process of establishing one. A fifth of the same ahead of the launch of Getting Irish get 25,000 more Irish SMEs and solegroup are unconvinced of the benefits in terms of Business Online, an initiative which traders online in year one.communicating with customers or increasing sales. offers free websites and hosting to Visit Tax credits to tackle digital skills shortages programme to incentivise Proposals for a so-called a dialogue between the the digitally skilled to take “nerd visa” don’t go far developers and consumers up positions in Ireland. We enough. It is not a question of technology. have counselled the opinion of managing those who can of leading international and come to work in Ireland but We are continuing to keep indigenous businesses and rather a question of stemming apace with the demand leading economist Constantin the flow of emigration of for the Diploma in Digital Gurdgiev, and all have “smart skills” and incentivising Marketing, reviewing the Joan Mulvihill unanimously endorsed the positive repatriation of those curriculum constantly to reflect CEO, Irish Internet Association proposal and are committed who have left. the pace of change. We to supporting it. have moved the NetVisionary The skills shortage is the ‘Open data’ policy Awards to September greatest impediment to For our digital economy to At the IIA we also recognise and have reviewed the business growth in Ireland’s continue to flourish we need the importance of an “open categories to reflect the digital sector right now, and to build a reservoir of talent. data” policy to support newcomers to our sector. we need to reach a critical People follow jobs but the our start-up community, by mass in these skills right across job creators set up camp giving them access to this On 14-15 October we will be the sector, from developers where they have a deep invaluable raw material. co-hosting “Internet Expo” in and designers to digital well of talent from which to Open data will also boost the RDS, Ireland’s first trade marketers and SEO specialists. draw. With so many other eGovernment initiatives exhibition and conference countries competing for and services to citizens. dedicated to internet business The Irish Internet Association the mantle of the smartest For this year’s “Open For across a wide range of sectors, has made a submission to economy, we need to be Business” conference at from animation and gaming government requesting smart about how we attract the Aviva Stadium we took to eLearning. Visit a digital skills tax credit people to work here. the term literally, facilitating for more details.
  6. 6. Deals explosion brings mixed blessings for businessesIt’s phenomenal It’s hard to miss implications for the businesses Deals sites trumpet how- the explosive this phenomenon. that provide their deals. they deliver new customers,growth in Online ads for these The upside for businesses is leading to repeat business. Butdiscount sites promise high-profile exposure and many traders fear that dealscoupon, deal large discounts - an opportunity to attract are cannibalising existingand group typically 50% to 60% new customers and stem business, as customers hold-buying sites. - on meals, health falling sales. off spending in expectation ofDeals sites have and beautytaken Ireland by treatments,storm over the gadgets, ticketspast year. and all sorts of consumerThere are at least25 operating Fiachra Ó Marcaigh Clout Downside a deal coming up soon, andhere, with Director, AMAS A survey by media On the downside, the business some complain that repeatnew market agency Carat will be selling the promoted business does not materialise.entrants regularly appearing. found high levels (up to half deal at a level that is oftenFacebook Deals has beta- of those surveyed) were unprofitable when the Businesses also worry thatlaunched already in Ireland, aware of, had signed up or discount and commission to deals devalue their offerings,and Google is piloting Offers purchased from each of the the deals site are deducted. It if consumers decide that thein the US, so expect online three largest sites, City Deal, is vital for the business to scope deal price is the real to continue to boom. Living Social and Boards the offer carefully or it may be Deals. The purchase rates overwhelmed with demand for So businesses need to weighThe larger sites are transacting reported were very high - the cut-price deal. their options and be smart.serious amounts of business 17%, 6% and 5% respectively. As their own consumers arein Ireland as recession- Businesses may have to wait advised, they need to shophit consumers search for With these levels, the deals for the cash as some deals around, choose carefully,bargains and this is affecting sites have massive market- sites do not pay up until drive a hard bargain and seethe dynamics of some place clout, which can the consumer redeems where deals fit best with theirbusiness sectors. have positive and negative the coupon. business models. eCommerce excellence eligible for consideration AMAS: what we do We cut through the clutter is to be recognised later this for the overall eCommerce and the complexity to allow year in a new award scheme Website of the Year award. The AMAS is an internet consultancy our clients to capitalise on and quality mark launched winner will receive a marketing with a simple goal – help our the unlimited opportunities by Retail Excellence Ireland package worth €20,000 from clients to exploit the internet. offered by the internet. (REI) with sponsorship from Independent Newspapers. Large corporates, government Google. REI is extending bodies and, increasingly, high- Services: its long-established retail AMAS has been selected potential businesses retain us to • Strategy awards to include by REI to conduct develop and help implement reviews of the sites as internet strategies. • Research eCommerce, and businesses part of a three-stage • User experience meeting the evaluation process. Contact Us: • Content required standard AMAS has designed Aileen O’Toole, • Training will be eligible to this process to Managing Director on • Marketing use a new quality complement the +353 1 6610499 or • Project management mark on their sites. one used for REI’s traditional retail award scheme, as There will be three category well as checkpoints in Follow us: winners, for best customer eCommerce best practice. For digital research and insights, experience, innovation and Visit AMAS’s blog for more follow AMAS on Twitter@AMASinternet exporting, who will then be details © AMAS Ltd. Published by AMAS Ltd., 38 Lr. Leeson Street, Dublin 2, Ireland. Tel: +353 1 6610499 Email: Web: