State of the_net_issue_22_[1.76_mb]


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Ireland's internet adoption levels are the main theme of the Autumn 2011 issue of State of the Net. Also covered is localisation, the availability of personal data on social network sites and a glimpse at the EU's new laws on cookies.

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State of the_net_issue_22_[1.76_mb]

  1. 1. State of the Netessential eBusiness intelligence for Irish managers www.amas.ieA quarterly bulletin on online activity in Ireland ISSN: 1649 issue 22 Autumn 2011Where are you on planet Google? In numbers €48m Value of Irish search advertising market1 54% Proportion of small business owners who would pay for a search listing2 €9.18 © AM AS Aileen O’Toole, gra ph Example of costly keywords, in this Managing Director, case “solicitors personal injury” ic (w ww AMAS .am as.i e)It’s on the marketing wish improved and marketed. As preferences for the goods Sources: 1 IAB Ireland/PwClist for many businesses Google continuously develops and services on offer. Used Adspend study 2010– get to the top of the its search platform and its well, such data can be used 2 Ipsos MRBI study of SMEs,Google rankings and stay algorithms, internet consumers to develop or improve the November 2010there. But how you can are becoming savvier about product or service offering.create a good presence refining searches and finding organic (free) listings comparedon planet Google is not better matches for their queries. So how do you get into with the relatively quick andalways understood. Neither Google’s good books? easy path to page one byis the real value that the Google searches deliver leads, The answer is multi-faceted advertising on Google andgiant gorilla of online for online and offline businesses. but comes down ultimately competitors Bing and has to a business. And while there is clear value to routine tasks: for B2C businesses this search- • Understanding your Google will continue toThe value begins and ends based world can deliver big- audience and their needs innovate, upgrade and addwith customers. A decade time too for B2B businesses. • Publishing content on a new search features andago, or less, they would technology platform that is may continue to attract morehave turned to the small Google searches are used search-friendly and fast legal actions as its dominationads in a newspaper or a by B2B buyers to seek details • Updating your site regularly grows. Internet users willlocal directory to buy a of new suppliers, pre-qualify with relevant content become increasingly morenew car, look for a local bidders for contracts, conduct • Building authority through sophisticated in how theyplumber or start the hunt for background checks and to links and references from use search.a new job. Instead, today learn more about the people authoritative sitesthey pour in their millions behind the businesses they • Integrating social media and For businesses, there is a hugeonto Google and trust it to may deal with. other channels effectively learning curve but one whichinterrogate a sea of web • Meticulously evaluating site Google is happy to helpcontent to deliver relevant Poor Google rankings traffic, search behaviour and with. Its free online coursesresults – locally, nationally translate into missed business acting on the trends are clearly commerciallyand globally. opportunities – sales, motivated – the more who engagement and market Too often a new website learn how to run a GoogleTheir search behaviour intelligence. Accessing and which sets out ambitiously to AdWords campaign, theshapes their purchasing interpreting the vast array achieve top Google rankings more they will invest in searchbehaviour, how they of data available through fails because this is seen as a advertising – but they are theengage with brands and free Google tools provides project, not a process. Also, best available. Better indeed,how products and services valuable insights into less attention is often paid to we believe, than many paid-are being developed, customers, their habits and the grind of achieving good for courses in Ireland.Compiled by AMAS in association with the Irish Internet Association
  2. 2. 1. Broadband Households with broadband access 2005-2010Ireland has made significant strides in narrowing 70the gap in broadband adoption with the 61 56EU27. Fifty seven per cent of households hadbroadband in 2010, just three percentage 60points off the European average. Back in 2005, 48.6 57.5broadband adoption levels were just 7.4%, which 50 41.6 53.7put Ireland in the bottom five among EU countries.Now more than half of Irish households have 40broadband access. 30.4 42.9 30 23Separately, the latest ComReg quarterly dataresearch found that broadband subscriptions at 30.7 Irelandthe end of March 2011 had increased by 2.1% to 201.62 million from the previous quarter and 10.4% EU27on the previous year. Mobile now accounts for 10 13.136% of broadband subscriptions. © AMAS graphic ( 7.4 0Source: OECD, Communications Outlook 2011 2005 2006 2007 2008 2009 2010Profile of Ireland online 2. Internet Use 72% of households 57% of population look What are internet penetration defined as accessing the levels in Ireland? How are Irish internet at least once a access the for information people using the internet? The week, is 64%, slightly ahead internet at home about goods online answers to the most common of the EU27 average. We questions posed about score best in laptop use – internet use in Ireland are with 32% saying they use disclosed in a new European a laptop to access the 64% 21% Commission analysis. The main internet, compared with findings, shown in the graphic, 19% in the EU27. indicate a level of digital maturity among Irish people Other notable statistics of population of population and either the elimination or include the proportion of are regular read newspapers or narrowing of the gaps with Irish people who download internet users magazines online other EU27 countries. games or other media (20%), who create content for At 72%, the number of Irish sharing online (14%), who © AMAS graphic ( 34% 36% households with internet seek information about access at home is marginally health (27%), who interact ahead of the EU average. with government services The proportion of people who online (27%) and who have of population of population are considered regular users, never used the internet (27%). use online order goods banking or services online Source: European Commission, Digital Agenda for Europe, June 2011
  3. 3. Top Trends3. Privacy What we share on social mediaonline © AMAS graphic ( mobile nationalityNever mind privacy concerns, or thatpersonal data posted on a socialnetworking site can be accessed by aprospective employer. Irish people like 26% 61%to volunteer personal information online,much more so than in other Europeancountries, Eurobarometer research says. name photos 85% 54%Ireland ranks highest in the EU fordivulging information about what wedo, where we go and what we like.Irish people with social media accountsare also noticeably more contactableonline than the average European.Almost half post their addresses on their address hobbies 49% 52%profile page while more than a quarterpost their mobile phone numbers. Thesefigures put us ahead of the EU average,where 39% publish addresses and 23%publish telephone details on their socialnetwork pages. Remarkably, almost onein ten Irish social networkers publish theirpassport numbers. Source: Special Eurobarometer 359, June 2011 Accept an English website Disagree Agree 4. Localisation Italy 61 35 Ireland exported over Eurobarometer looked © AMAS graphic ( €15 billion worth of at the online language goods to the six EU coun- preferences of nearly Spain 50 51 tries listed in the graph in 14,000 respondents the first half of this year. from across Europe and France title Graph 49 50 found that just under It seems that a large half felt they were miss- number of people from ing out on interesting Germany 40 59 those same countries information if the web- are not keen on the site was not available Belgium 33 63 idea of carrying out in their own language. online transactions in English, according to a On average, 90% said Netherlands 32 67 2011 Eurobarometer that, when available, they report on user language always use a website in © AMAS graphic preference. their own language. EU27 ( 44 53 Source: Flash Eurobarometer, User LanguagePercentages above add to totals other than 100 due to rounding and “don’t know” responses Preferences Online, May 2011. (Data January 2011) the opportunity to win online
  4. 4. 5. Cookie chaos Websites with cookies 28You can hardly move on the web withoutbumping into cookies – those nuggets of websitesinformation that a site can put on yourcomputer and retrieve later to recognise with cookiesyou or your machine. Cookies are used © AMAS graphic ( everything from site metrics to servingup adverts or remembering a shoppingbasket as you hop from page to page.In July, Ireland introduced new online 2 websites with no cookiesprivacy regulations: in particular, sites Source: AMAS survey,must now obtain consent from visitors August 2011before issuing persistent cookies (theones that linger, unlike session cookiesthat disappear once you leave a site). In August 2011 AMAS surveyed a 20 cookies, of which nine were persistent. sample of 30 leading Irish websites. Another had a cookie with an expiryHow many Irish organisations are Just two didn’t use any cookies. The rest date a quarter century from now – 22affected? How should they change their used a total of 220 cookies – over seven August 2026. Yes, cookies are set to besites to comply with the new rules? The per site. Of these, 123 were persistent around for a long, long time to come.situation is confusing, with conflicting cookies – about four per site – and all 28interpretations, but one thing is clear: sites had at least one persistent cookie. We also tested six localised sites ofyour website probably already uses major international players andthis type of cookie. One Irish site in the survey had a total of found similar results.6. Email Sixty per cent of the sample said that they track CTRs, and 54% track open rates. Social media in emails As the graph shows, open Average open rates % rates vary considerably but an impressive fifth 49% 51% Yes Don’t know 32.8 of the sample state they No 21-30% 20.2 are achieving open rates of between 21% to 30% on 11-20% 13.9 their emails. Open rates for © AMAS graphic © AMAS graphic ( B2B campaigns appear to have ( 31-40% 12.0 the edge on those for B2C campaigns. 51+% 8.8 Social media is increasingly being integrated into email 41-50% 6.3 campaigns, with just over half of the sample saying that it © AMAS graphic ( is a feature of their mailshots. Usually, that takes the form of 0-10% 6.0 embedding links to Facebook, Twitter or LinkedIn accounts but some marketers go further and allow their subscribers to0 5 10 15 20 25 30 35 “like” or “share” the email content.Click-through rates (CTRs) and open rates are the most important Email marketing is not without its challenges, the greatestmetrics used by Irish marketers to track the effectiveness of email of which were identified as “inbox overload” and “spam”,marketing campaigns. Research conducted by Newsweaver followed by “deliverability” and “unwillingness of people toamong 400 members of the Marketing Institute of Ireland opt in to new email lists”.confirmed that email continues to be popular, with 84% saying Source: Newsweaver and Marketing Institute of Ireland,it was an important part of their marketing strategy. Email Marketing Insight 2011
  5. 5. 3.5 3 2.5 Top Trends 2 1.5 1 0.5 0 May 11 June 11 July 11 Value of online deals in millions7. Online deals Value of online deals in millionsMaybe it’s because Irish people are unusuallyhirsute. Or maybe we just can’t resist some 5pampering. Either way, Irish people seem to be © AMAS graphic ( a lot of money at laser hair removallately – about €273,000 in July alone, according 4to online deals hub It’s a strange statistic 3for a country that is wading neck-deep througha recession, but it’s not the only one. 2Deals for fish pedicures, spa treatments,hairdressing and dermatological therapies 1have become increasingly popular over recentmonths. The online deals phenomenon is little 0over a year old but it has grabbed the attentionof Irish consumers. May 11 June 11 July 11 Source: Sift.ieSome 120,000 people purchased online deals inJuly 2011 from the likes of Living Social, Groupon tracks code andValue of online deals in millions verifies its information with deals websites(CityDeal) and GrabOne, according to datafrom These deals were worth an estimated Groupon remains the biggest of the deals companies with a€3.9 million worth of sales in July – more than 53% market share, while LivingSocial takes second place at 22%,double what they generated in May 2011. according to this data. 3.9 2.1 Down to earth on the Cloud 1.5 cloud deployment strategy on the understanding and The IIA is committed to and tactics for deployment. good faith that this is a addressing these issues, Government priority, we can and the Cloud Computing The IIA Cloud Computing focus on the positive. In the Working Group has designed Working Group carries ISME study, 46% of members its Decision Support Matrix out an annual survey to had reduced operating to support Irish businesses measure cloud computing in costs by introducing a more in devising a contextually Ireland. This has consistently aggressive strategy for appropriate cloud Joan Mulvihill identified three high-level online business. SMEs are deployment strategy. CEO, Irish Internet Association challenges for SME cloud clearly benefiting from their And since Minister Bruton’s deployment: access to investment and this message announcement at the Cloud computing was the quality broadband, level is resonating. IIA annual conference recurring tech conference of understanding and of a €5m investment in a theme of 2010, but have we security concerns. The But what of the other cloud computing centre, matured from hype to reality recent survey by the small two challenges - lack of the Government has also since then? Outside media business association ISME understanding/expertise and convened its own high-level and conference coverage, of its members cited the security concerns? The IIA cloud computing forum, the focus for many same issues and recorded and ISME surveys recorded comprising government businesses - particularly similar results. broadly similar results. For department representatives within the SME and public example, “lack of in-house and state agencies. The IIA sectors - has shifted from a We are at somewhat of an expertise” was cited by 40% of has made a submission to the technology indulgence to impasse without the basic ISME respondents and “lack forum to ensure perspectives more practical questions, broadband infrastructures of understanding” was cited and insights from vendors, including an appropriate in place. But if we proceed by 35% of IIA respondents. SMEs and MNCs.
  6. 6. Localisation is about more than translationIrish exporters all about translation.need to rethink A company websitehow they use acts as a silentthe internet but powerful salesto tackle new and/or marketingmarkets, in representative inthe light of an export market.the research It is where thepublished prospective buyerabout will go to checkconsumer out credentialsbuying and get a sensebehaviour of the company,(see page 3 its products andLocalisation). Fiachra Ó Marcaigh services. search engines? going to trade shows, or cold-The takeaway Director, AMAS • Is the technology platform calling prospective customersis that people in Progress capable of supporting the – can find that the absencemany European markets won’t A couple of minutes, if even chosen languages? of a professional, localisedbuy from a company whose that, on the website will resolve • Is the content buyer- web presence damageswebsite is not in their own the questions that buyers have focused and up to date? the sales drive.language. about the prospective supplier • Is the messaging and and whether they want to imagery appropriate to But those who recognise theNor, it would appear from other progress to the next stage of the audience and the importance of localisation,research, are they likely to the buying cycle. chosen market? and invest in planning andengage with a business which • Is there an infrastructure tuning their web presenceoffers an English-only website Relevant, professionally in place, in that market to match market needs, canor, worse, a site with partial translated content is very or at head office, to reap real returns.or poor translation. On top of important. But so too are handle queries?this, exporters won’t make real some other localisation issues: AMAS conducts localisationstrides in overseas markets if • Can the site be found Exporters who engage in active planning as part of an internetthey consider localisation to be through that market’s prospecting in target markets – strategy service for exporters. AMAS: what we do We cut through the clutter AMAS wins NIE internet contract AMAS is an internet consultancy and the complexity to allow our clients to capitalise on with a simple goal – help our the unlimited opportunities AMAS has won a clients to exploit the internet. contract to devise an offered by the internet. Large corporates, government internet strategy bodies and, increasingly, high- for Northern Ireland Services: potential businesses retain us to Electricity (NIE), which develop and help implement • Strategy owns and maintains internet strategies. • Research the electricity network • User experience and which was recently • Content acquired by the ESB. Contact Us: • Scoping and specifying Aileen O’Toole, • Training website and applications Managing Director on • Marketing The contract involves: • Assisting NIE to procure +353 1 6610499 or • Project management • Conducting audience website design and site research for a new web technologies presence • Supporting the Follow us: • Gathering internal and implementation of the For digital research and insights, stakeholder requirements web strategy follow AMAS on Twitter @AMASinternet © AMAS Ltd. Published by AMAS Ltd., 38 Lr. Leeson Street, Dublin 2, Ireland. Tel: +353 1 6610499 Email: Web: