The results of AMAS.ie and the MII\'s annual survey on Irish digital sentiment is the main topic of State of the Net issue 25. Other trends covered include eCommerce growth, digital advertising, cloud computing, smartphone penetration, and more.

1. State of the Net
essential eBusiness intelligence for Irish managers www.amas.ie
A quarterly bulletin on online activity in Ireland ISSN: 1649 issue 25 Summer 2012
More Irish marketers switch budgets online
2011 2012 None at all
Less than a quarter
14% A quarter to half
20% 10%
16% More than half
13%
© AMAS graphic (www.amas.ie)
22% 48%
56%
Figures may not add to
100% due to rounding
Aileen O’Toole,
Managing Director,
AMAS Proportion of Irish marketing budgets being spent online
© AMAS graphic (www.amas.ie)
Irish marketing professionals However, the rise of social media 2012 Irish Digital Sentiment Survey
are diverting more of their hasn’t dented the popularity
advertising and promotional of email, a format used by two
budgets online, because out of every three marketers. Methodology: online questionnaire
of better opportunities for Sample size: 348
customer engagement and The choices such marketers
greater return on investment make have a direct effect
than they experience with
traditional channels. One
on the commerciality of Irish
media, offline and online,
86% of sample have budget planning responsibilities
in five marketers currently
spend 50% or more of their
which rely on advertising for
much of their revenues. Last 82% have budget spend responsibilities
budgets online while 60% year, the Irish advertising
have invested in mobile market is estimated to have traditional channels. used online marketing, 95%
channels, mobile sites, apps been worth slightly more than of the sample said value for
and/or QR codes. €1 billion, some €897 million of Desktops, mobiles and money was a key driver, either
which was accounted for by increasingly tablets are “very important” or “important”.
These are among the main traditional channels. Online transforming users’ media
findings of the fourth annual or digital advertising, as it is habits and their engagement High rankings were also given
Digital Marketing Sentiment variously called, was the only with commercial messages for customer engagement
Survey conducted by AMAS category to show growth, of and offers. That trend is likely to (97%), optimising reach (93%)
in partnership with the the order of 20%, compared accelerate. The dizzy numbers and for online being more
Marketing Institute of Ireland with a 4% average decline from Facebook’s debut stock measurable than other forms of
(MII). The survey aims to across other media types, market valuation are as much marketing (89%). Less relevant
establish how the internet is according to research from about the anticipated future were reaching an international
affecting the Irish marketing PwC/IAB Ireland and Nielsen. growth in digital advertising market (56%) and selling
profession, the channels globally, as they are about the directly online (50%). A majority
they use and the marketing Previous MII/AMAS surveys have phenomonenal reach of the of the sample – 59% – reported
budgets they control. recorded a gradual shift among social network. a higher return on investment
Irish marketers from traditional to from online marketing than
Social media has gained online channels. But the latest The recessionary environment from traditional marketing.
in popularity, with 70% of survey shows emphatically that presents challenges to Irish
Irish marketers maintaining digital is core to the marketing marketers, not least how to Online’s gain has been at the
a business Facebook strategies of the Irish marketing ensure that depleted marketing expense of other media. Press
presence and 44% with their profession, and in many cases budgets can deliver tangible appears to be the biggest loser,
own YouTube channels. is delivering greater value than results. Asked about why they continued on page 4
Compiled by AMAS in association with the Irish Internet Association

2. 1. Digital advertising Display 38% 20% Classified
Digital
Digital advertising is now the third largest category of advertising in Ireland media
behind press and TV, new data from Nielsen and IAB Ireland reveals, and is mix 2011
Ireland
reporting robust double digit growth. The recession is taking a considerable
toll on the advertising marketplace, as budgets are cut and media owners
€132m
are forced to reduce their rates to earn their place on the advertising schedule.
Nielsen data shows that the overall advertising market, excluding digital, fell in
value in 2011, by 4% to €897 million. The most significant category drops were in
© AMAS graphic
(www.amas.ie) 42%
outdoor and radio, each down by 9%, followed by cinema (8%) and press (6%). Paid for
search
Irish adverting market However, new research from
450 PwC for IAB Ireland shows digital
400 426 bucking the trend – showing growth of 20% in
400 2011 and placing a value of €132 million on
350
2010 Irish digital advertising. The beneficiaries of this
300 upswing are multinationals, like Google and
€ In millions
2011 Microsoft, a range of overseas sites that are
250 280 286
© AMAS graphic (www.amas.ie) visited by Irish audiences as well as a slew of
200 established and relatively new Irish players on
the media landscape.
150
100 111 132 Search continues to remain the largest slice of
101 110
89 81 the digital advertising pie but new formats, such
50
23 22 9 as social media, are winning favour. PwC/IAB
8
0 Ireland places a value of €5.8 million on Irish social
media advertising in 2011.
Source: 2011 IAB Ireland/PwC Adspend Study,
Newspapers TV Radio Outdoor Magazines Cinema Online survey of online properties, advertising networks
ex cluding and sales houses.
UTV & C4
2. eCommerce continue to be modest compared
with those of our nearest neighbour
The number of Irish consumers buying category, with 34% of Irish consumers where 71% of the population made
online continues to grow, with more turning to the internet to book holidays online purchases last year. In the UK, the
purchases being recorded across all or business travel. Clothing and sporting online marketplace has been valued
major eCommerce categories. Ireland goods showed significant growth, with 17% at £68 billion by industry association
is on a par with the EU27 average, with of the Irish population making an online IMRG, making it the second largest
43% of Irish consumers saying that they purchase compared with 13% the previous eCommerce market in the world. The
had made an online purchase within year. Irish consumers continue to prefer to largest gaps between Irish and UK
the previous 12 months. This represents physically do the weekly shopping, with eCommerce are in groceries and food
an increase from 36% in 2010. just 4% of the population saying they had – one in five UK consumers now buy
bought food and groceries online. them online – and in household goods,
Travel and holiday accommodation where 33% of UK consumers buy online,
remain the most popular eCommerce Irish eCommerce adoption levels compared with just 8% in Ireland.

3. Top Trends
3. Mobile Smartphones in numbers
Smartphones and tablets are transforming
consumers’ media and buying behaviour,
with implications for every business from
large corporates to the corner shop. A
© AMAS graphic
(www.amas.ie)
series of both local and international
studies has tracked the explosive growth
of smartphones and tablets and the
implications for businesses which are
targeting the “always on” consumer.
Sample: adoption level,
RedC puts Irish household smartphone Irish online consumers.
Other statistics:
ownership at 49% of the population in smartphone users only.
2011, but predicts it will accelerate to 71%
by the end of the current year. Google-
Putting individual smartphone adoption a message that is as relevant to larger
commissioned research produces a galaxy
at 43%, the Google research charts the companies as it is to SMEs. For the latter,
of new Irish statistics on smartphones and
growing reliance on smartphones for the Google research shows how vital
drills behind the data to provide fascinating
email, social media access, reading news smartphones are when consumers are
insights into how these devices are
and either researching a purchasing searching for local services – 89% seek out
changing consumers and businesses.
decision or actually making it on a local businesses and 90% take action, such
phone. A third of Irish smartphone owners as making contact or transacting business.
Smartphone multitasking have bought something through their
phone, while four out of five have used Tablets are also transforming consumers’
59% Watching TV
their phones to research a purchasing relationship with business. RedC puts
89 %
54% Listening to music
decision. Smartphone owners like tablet ownership in Ireland at 16% at the
35% Using internet
to multi-task, with three out of five end of 2011, but anticipates it will be
28% Watching movies
watching TV while using their phones. as high as 41% by the end of this year.
Use smartphone 21% Reading papers/magazines
Meanwhile, Adobe is predicting that
while... 14% Playing video games
For businesses, the main takeaway is that tablets’ global share of website traffic will
12% Reading book
mobile needs to be core to their strategy, exceed smartphone traffic by early 2013.
Sources: Our Mobile Planet; Ireland, understanding the mobile consumer, May 2012, commissioned by Google, research by Ipsos MediaCT among
700 Irish online adults in Q1 2012. Connecting the World: World Independent Network of Market Research, Irish research by RedC, late 2011
© AMAS graphic (www.amas.ie)
Bought or ordered goods online by category %
Any goods Travel & holiday Clothes & Books, magazines Household Music Electronic Food /
or services accommodation sports goods & e-learning goods & Film equipment Groceries
EU 27 43 22 22 16 16 13 11 6
UK 71 38 41 32 33 33 19 19
Ireland 43 33 17 15 8 14 13 4
Source: Eurostat 2011, respondents asked if they have bought or ordered goods or services for their own use over the past 12 months.
the opportunity to win online

4. continued from cover Preferred online formats
a trend that was also evident in previous MII/
AMAS surveys. 45% of the sample said they had Mobile 29%
moved spend from press to online, 39% said that
they had moved it from direct mail, 39% from PR Audio (e.g. podcasts) 18%
and 37% from magazines.
Video 44%
Social media use has matured among Irish Online display advertising 47%
marketers, with a majority maintaining a business
presence across the prime channels. Asked why Blogs / social networking 63%
they used social media, building relationships
Online classifieds 15%
with customers was the most popular reply
(86%), followed by building brand awareness Email campaigns 67%
(82%) and listening and monitoring (62%).
Games 6%
Irish marketers see both the benefits and the
Online PR 38%
downsides of social media use. The primary
benefits are: Search engine marketing 39%
• Understanding customers better (75%)
• Building contacts (75%) Search engine optimisation 59%
• Delivering cost savings (54%) Website sponsorship 17%
But social media can be hard work, with 70%
© AMAS graphic
of the sample saying that it has added to their Viral marketing 17% (www.amas.ie)
workload. Reputational risks for their companies
were a concern with 56% of the sample, while Other 4%
61% had difficulties keeping up to date with
social media developments. 0 10 50
20 30 40 50 60 70
The full 2012 Irish Digital Online offers more ROI than traditional marketing 40 Use of mobile channels
42%
© AMAS graphic (www.amas.ie)
Marketing survey is available
on AMAS’s SlideShare channel 37%
© AMAS graphic
30
– SlideShare.net/AMASinternet. (www.amas.ie)
30%
Graphs from this and previous
24 25%
issues of State of the Net are
also available through our % 20
SlideShare channel and can be 59 Yes
reused once AMAS is credited. 18 No
10
Don’t know 0
Mobile Mobile QR None
websites apps codes
Use of social media sites by Irish businesses © AMAS graphic Figures may
(www.amas.ie) not add to
100% due to
rounding
30 44
39 39
61 61 %
70 55 Yes
No
www.amas.ie

5. Top Trends
4. Cloud Cloud computing
Irish businesses and organisations are tuning into the cloud computing
buzz, but adoption levels remain relatively low. The cloud, a range
37% adoption in Ireland
of hosted services that can be accessed via the internet, has been Have deployed
deployed by 37% of Irish businesses and public sector organisations, cloud solutions
according to research commissioned by Microsoft.
Adoption levels are highest among larger businesses, defined as
those employing more than 250. At 53%, that contrasts sharply
with the 21% deployment levels recorded among SMEs,
© AMAS graphic
(www.amas.ie)
56%
With cloud solutions
77%
those employing less than 50. Among public sector
bodies, cloud computing is used by 39% of the sample. experienced cost
savings
For many of those early adoptees, the much-trumpeted
benefits of the cloud are a reality – 56% say they have
seen cost savings and 47% recorded productivity gains.
Believe cloud will help Source: Microsoft/Amárach Cloud
For all that, the research indicates that Irish businesses economic recovery Index Research, based on online
and public sector organisation are only at 3.2 on a survey among 151 businesses and
10-point scale of cloud adoption. public organisations April 2012
Appy days for Irish Business
of an app can also vary to capture marketing and enhances the customer
wildly and widely – anything sales opportunities. Mobile experience and brings
from €2k to €100k – so you advertising is the fastest anything “extra”? Does its
need to know what you’re growing element within shelf-life deliver the required
getting into before making online advertising, even if return on investment?
that kind of investment. its current share of digital
spend is still only a tiny If it’s not going to be a
Gartner believes that the proportion in Ireland overall. “much-loved, can’t-live-
winning apps of 2012 will Furthermore, while many without” app, would you
Joan Mulvihill have unique features that of our favourite apps are get a better return from
CEO, Irish Internet Association cater specifically for a free, apps themselves will a mobile campaign with
mobile environment, rather generate solid revenue – alternative solutions such as
Mobile apps can be a major than simply mobile adapted Gartner predicts $15.9 billion click to video, to Facebook,
business opportunity, but versions of their online in end-user spending in 2012. to landing page or to
what of their staying power originals. Mobile internet download a voucher?
and return on investment? use is set to overtake The Yappy mobile
There are over a million desktops by 2014, and this advertising agency The IIA will continue to
apps out there, but once mobile environment will estimates that less than10% recognise the importance
downloaded many are increasingly define the user of brands have an app. Yet of mobile trends in our
– in a fit of app overload – experience of your brand. the fact remains that you annual awards next
promptly deleted. Before don’t necessarily need one September, so watch out
adding your app to their Advertising spend will to run a successful mobile for announcements of
growing number, ask increase in tandem as campaign. Marketing categories and key dates.
yourself: “What customer brands increasingly shift directors face interesting The IIA will be running a
need will it satisfy?” marketing budgets to challenges in 2012. Do you free mobile event in
mobile and experiment invest in your own app while early September – see
Quotes for the development with cutting-edge apps being clear about how it www.IIA.ie for more details.

6. Social networks – who would want another one?
Who would outside Facebook And there are many more.
start another to news or discussion Wikipedia lists over 200 current
social network sites, very often one social networks, from 43 Things
in the face of of the simplest ways to Zooppa.
Facebook’s to log in to these
dominance? other sites is to use In a survey just before its flotation,
their username and half of Americans said Facebook
Its flotation in password from... was a passing fad and even
mid-May set Facebook. more said they did not trust it
new stock to protect their private data.
market records So who would be General Motors passed a vote
but caused optimistic or naive Pinterest: visual of no-confidence in Facebook
jitters and enough to try to advertising by pulling its $10
doubts about a compete with such Globally, Google+ has gained million ad-spend on the network.
possible social Fiachra Ó Marcaigh a dominant player? more traction than its previous
media bubble. Director, AMAS Well Microsoft for social services and is credited So is Facebook vulnerable?
one. Its latest take on with 90 million members. No, but neither is it invulnerable
But for all that, a social service so.cl With Google’s popularity and – nothing can guarantee
Facebook is in a commanding was unveiled within days of the strength behind it, it has every long-term dominance in
position. With over 900 million Facebook float. opportunity. LinkedIn has technology or online. Ask
accounts worldwide, and carved out a strong identity Novell, WordPerfect, AOL,
over two million in Ireland, that Will so.cl itself sink or swim? and loyalty as a professionally MySpace or Bebo...
position looks unassailable. Time will tell, but it’s very far oriented network.
from alone in competing with If you’re a marketer, should
For many young people, Facebook. In some markets, Pinterest – the online pinboard you bother about emerging or
Facebook is the internet. It is especially non-western ones, to “organise and share the lesser-known social networks?
where they socialise, meet, play local social networks are very things you love” – has a visual Yes, if only to protect your
games and spend the majority strong. China’s most popular interface that has won it a lot brand on such networks and,
of the increasing amount of micro-blogging site Sina Weibo of attention (although it has potentially, to develop an early
their media time that is spent has a reported 300 million also been called “a solution presence on relevant networks
online. Even when they venture members. in search of a problem”). used by your target audiences.
eCommerce core to Dubarry’s growth plans AMAS: what we do We cut through the clutter
and the complexity to allow
Leading Irish brand Dubarry The work programme varied AMAS is an internet consultancy our clients to capitalise on
has upgraded its eCommerce from evaluating its existing with a simple goal – help our the unlimited opportunities
facilities and launched digital websites to specifying new clients to exploit the internet. offered by the internet.
marketing campaigns, following eCommerce functionality and Large corporates, government
an internet strategy project providing content, search bodies and, increasingly, high- Services:
completed by AMAS. Dubarry, engine optimisation (SEO), potential businesses retain us to • Strategy
whose iconic boots are favoured online marketing, training and develop and help implement • Research
by Queen Elizabeth and Bruce other services. internet strategies. • User experience
Springsteen among others, is
pursuing an international growth The first sites in a series of multi- Contact Us: • Content
strategy targeting discerning lingual, multi-country websites Aileen O’Toole, • Training
buyers of quality marine and have been launched by Dubarry, Managing Director on • Marketing
country clothing and footwear. supported by traditional and +353 1 6610499 or info@amas.ie • Project management
digital marketing campaigns.
The AMAS project was designed Like us on Facebook: Facebook.com/AMASInternet
to improve the brand’s online
visibility, boost eCommerce Follow us:
sales and support traditional For digital research and insights,
sales and marketing activity. follow AMAS on Twitter @AMASinternet
© AMAS Ltd.
Published by AMAS Ltd., 38 Lr. Leeson Street, Dublin 2, Ireland. Tel: +353 1 6610499
Email: info@amas.ie Web: www.amas.ie