‘Do you CEE?’ report prepared by Gemius is the key publication for all industry experts in the region. Between 2010 and 2011 edition, International Marketing Director, Marta Klepka presents updated landscape of the internet in CEE. Which are the key countries for the industry in 2011? What kind of characteristic changes & reshuffles have been observed during the past year? What kind of knowledge base does a potential investor need not only to enter but also to conquer a new market? Use the set of internet best practices & business intelligence solutions to grow your business online

1. Do You CEE?
The internet and
online advertising
market in Central
and Eastern
Europe.
MARTA KLEPKA
Sofia, 26.10.2011

2. About us
• a global company and the no. 1 choice in EMEA, provides consultancy and
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• ‘one stop shop’ for everyone who needs to measure the website, plan and
deliver effective online campaigns or use the internet as a communication
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DO YOU CEE
The internet and online advertising market in Central and Eastern Europe

3. Gemius as the currency in online measurement
JIC Standard: Poland, Czech
Republic, Slovakia, Hungary,
Slovenia, Turkey, Israel,
Denmark, Ukraine, Belarus.
De facto currency: Lithuania,
Latvia, Estonia, Bulgaria, Bosnia,
Croatia
Start-up: Russia, Serbia, MENA
(UAE, KSI, Egypt, Lebanon,
Jordan, Syria, Kuwait, Morocco,
Tunisia)
DO YOU CEE
The internet and online advertising market in Central and Eastern Europe

4. Do You CEE?
The internet and
online advertising
market in Central
and Eastern
Europe.
DO YOU CEE
The internet and online advertising market in Central and Eastern Europe

5. Size Potential Highlights
Adspends
Video
Formats
Mobile
Social
DO YOU CEE
The internet and online advertising market in Central and Eastern Europe

6. // Market size
INTERNET POPULATION (mm internet users / 2011)
The largest pure CEE
markets:
60
Millions
Russia
50
(53.7 million internet
users)
40 Poland
(18.9 million internet
30 users)
June 2010
June 2011
20
Turkey
10 comes second
in this ranking
0
(24.5 million internet
users)
internet population in the CEE region (June 2011); 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:
gemusAudience; Turkey: IpsosKMG (data for July 2011); Russia: Gemius estimation based on FOM statistics/gemiusFusion Data; Estonia: gemiusAudience (data collected using TURU-UURINGUTE AS
research); Lithuania: gemiusAudience; Croatia: Gemius/Valicon; Belarus: gemiusAudience; Romania: Euromonitor; Bosnia: gemiusAudience; Serbia: www.internetworldstats.com (June 2010) [age groups –
Lithuania, Poland: 7+; Czech Rep.: 10+; Croatia, Turkey: 12+; Estonia, Latvia,Hungary: 15+; Ukraine: 16+ Russia: 18+; Slovenia: 10-75; Slovakia: 14-79;Bosnia: 15-65; Bulgaria: 15-69; Belarus: 15-74]

7. // Market size
INTERNET POPULATION (2010-2011 growth)
50% whole CEE
+16 million new
40%
internet users
30%
Ukraine= fastest
20% growing market:
44% increase
10% in the number
of internet users
0%
internet population in the CEE region – growth (June 2010 – June 2011); source of data: 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: Ipsos KMG; Russia: Gemius estimation based on FOM statistics/gemiusFusion Data;Estonia: gemiusAudience (data collected using TURU-UURINGUTE AS research); Lithuania:
gemiusAudience; Croatia: Gemius/Valicon; Belarus: gemiusAudience; Romania: Euromonitor; Bosnia: gemiusAudience; [age groups – Lithuania, Poland: 7+; Czech Rep.: 10+; Croatia, Turkey: 12+; Estonia,
Latvia, Hungary: 15+; Ukraine: 16+ Russia: 18+; Slovenia: 10-75; Slovakia: 14-79;Bosnia: 15-65; Bulgaria: 15-69; Belarus: 15-74]

8. // Market size
INTERNET PENETRATION (2010-2011 change)
Smallest markets
90% the highest penetration
80% level
70%
60%
50% Eastern markets
40% 2010 the lowest penetration
30% 2011 level
20%
10%
0% Belarus
the greatest
improvement:
+16 percentage
points
Internet penetration in the CEE region (2010 – 2011); 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: Ipsos KMG; Russia: Gemius estimation based on FOM statistics/gemiusFusion Data; Estonia: gemiusAudience (data collected using TURU-UURINGUTE AS
research); Lithuania: gemiusAudience; Croatia: Gemius/Valicon; Belarus: gemiusAudience; Romania: Euromonitor; Bosnia: gemiusAudience; Serbia: www.internetworldstats.com (June 2010) [age groups –
Lithuania, Poland: 7+; Czech Rep.: 10+; Croatia, Turkey: 12+; Estonia, Latvia, Hungary: 15+; Ukraine: 16+ Russia: 18+; Slovenia: 10-75; Slovakia: 14-79;Bosnia: 15-65; Bulgaria: 15-69; Belarus: 15-74]

9. // Market size
BROADBAND PENETRATION
Broadband penetration 2010
Brodband connections per 100 inhabitants
45
40
35
30
25
20
15
10
5
0
2009 2010
Only a few CEE markets reach Some CEE markets are still much
the EU average when it comes to worse in these terms than even
broadband penetration. the worst Western markets.
Data source: Eurostat

10. Size Potential Highlights
$
Adspends
Video
Formats
Mobile
Social
DO YOU CEE
The internet and online advertising market in Central and Eastern Europe

11. // Market potential
ONLINE ADSPENDS (mm € / 2009-2010 change)
€ 800
Russians, Poles
Millions
€ 700
and Czechs spend
€ 600 the biggest amount
€ 500 of money on
€ 400
internet advertising
2009
€ 300
2010
€ 200
Slovakia opens
€ 100 the group of small
€0 markets
Data source: online adpends in the CEE region (2009-2010);
source of data: IAB Europe, TNS LT, SPIR, ZenithOptimedia, Gemius. All countries except for Ukraine, Belarus and Serbia: gross values

12. // Market potential
ONLINE ADSPENDS PER INTERNET USER
(€ / 2010)
60 Within the ranking of
online adspends per
50
user, the Czech
40 Republic is the
30 undisputed leader
20 the least money
10 per average user last
year was spent in
0
Serbia (2,04€)
Data source: online adpends per internet user in the CEE region (2010);
source of data: IAB Europe, TNS LT, SPIR, ZenithOptimedia, Gemius. All countries except Ukraine, Belarus and Serbia: gross values

13. // Market potential
ONLINE AS SHARE OF TOTAL
35%
The share of online in
30% the total adspend in
CEE countries is
25%
much lower than
20% in most countries of
Western Europe.
15%
10% Still, it is comparable
5%
or higher than in the
Mediterranean
0%
markets, with Portugal
serving the best
example.
Data source: ZenithOptimedia Group, AEF July 2011

14. Size Potential Highlights
$
Adspends
Video
Formats
Mobile
Social
DO YOU CEE
The internet and online advertising market in Central and Eastern Europe

15. // Market potential
Share of campaigns using specific ad formats
Regular Banners 53,0%
Slovakia
Preroll 9,1%
Expand 7,4%
Regular Banners 95,5%
Toplayer 6,9%
Hungary
Expand 5,7%
Brandmark 2,0%
Preroll 1,4%
Regular Banners 88,1%
Czech Rep.
Expand 0,9%
Brandmark 0,6%
Regular Banners 36,8%
Preroll 13,0%
Poland
Toplayer 9,9%
Expand 6,2%
Pop-up/Pop-under 1,3%
Brandmark 0,7%
Analysed Ads: Regular banners + rich media (Toplayer, Preroll, Expand, etc.)
Source: gemiusDirectEffect 2011 H1

16. // Market potential
Average CTR of specific ad formats
Regular Banners 0,28%
Slovakia
Preroll 3,27%
Expand 1,52%
Regular Banners 0,19%
Toplayer 4,20%
Hungary
Expand 0,26%
Brandmark 2,31%
Preroll 3,01%
Regular Banners 0,20%
Czech Rep.
Expand 0,10%
Brandmark 1,16%
Regular Banners 0,19%
Preroll 1,54%
Poland
Toplayer 1,64%
Expand 0,50%
Pop-up/Pop-under 0,72%
Brandmark 0,82%
Analysed Ads: Regular banners + rich media (Toplayer, Preroll, Expand, etc.)
Source: gemiusDirectEffect 2011 H1

17. gemiusAdMonitor
// Market potential
Share of ad impressions by sector – Czech Rep.
3 top industries are
1,5% 1,2% 0,1%
7,3% almost the same in all
1,4% 0,6% 1,9% the measured
2,3% 29,2% countries:
3,1%
4,9% -Finance
-Telecommunications
Finance, Insurance, Brokerage
Telecommunications 5,4% - Automotive
Automotive
Clothing & Accessories 5,6%
Travel, Tourism, Hotels & Restaurants -Only in Poland car
Food
Trade
5,8% 18,8% industry was overtook
Personal Care and Hygiene
10,8% by
Household Products
Pharmaceuticals
Entertainment/Trade
Beverages and Alcohol and Personal Care/
Household Equipment, Furniture And Decorations
Computers and Audio Video Hygiene
Real Estate
Leisure Time
Other
Source: gemiusDirectEffect 2011 H1

18. Size Potential Highlights
Adspends
Video
Formats
Mobile
Social
DO YOU CEE
The internet and online advertising market in Central and Eastern Europe

19. // Market highlights
VIDEO ADSPENDS
At present, the
biggest part of the
current network
traffic is video
And still growing!
In Central and Eastern
Europe, Internet video
traffic will account for
47% of all consumer
Internet traffic in
2015, up from 27% in
2010.
Data source: Cisco VNI 2010

20. // Market highlights
VIDEO ADSPENDS
Video spend increase 2009-2010
0% 100% 200% 300% 400% 500%
Scandinavian
countries have
Norway
Sweden
seen the biggest
Poland development when
Spain it comes to online video
UK ads.
Video spend as % of online display Nevertheless, Poland
Romania and Slovakia -
Spain typical CEE countries -
Norway
are not falling far
Poland
Netherlands behind in terms of
Slovakia online video market
UK size.
Sweden
0% 2% 4% 6% 8% 10%
Data source: IAB Europe, AdEx 2010

21. Size Potential Highlights
Highlight
s
Adspends
Video
Formats
Mobile
Social
DO YOU CEE
The internet and online advertising market in Central and Eastern Europe

22. // Market highlights
Mobile internet: how big is it?
Global mobile data traffic by type (petabytes per month)
Globally, mobile data
traffic will increase
26 times between
2010 and 2015.
Mobile video traffic
will exceed 50
percent for the first
time in 2011.
Mobile network
connection speeds
doubled in 2010.
Source: Cisco, „Visual Networking Index – Global Mobile Data Traffic Forecast Update,
2010-2015” (February 2011).

23. // Market highlights
Mobile internet: how big is it?
CEE – share of page views generated by visitors using mobile devices and PC computers
Bulgaria 0,7% Hungary 1,5% Ukraine 1,96
%
Page views - mobile devices
Czech Republic Slovakia 4,16
2,10 % Denmark 7,21
% %
Source of data: Gemius, gemiusTraffic (August 2011).

24. // Market highlights
Mobile internet advertising spending worldwide: which
formats? 2007-2012 (in millions)
Total mobile
15 000 Mobile adspends (mm$)
search
advertising
Mobile 2007 2,695
10 000
display
advertisings 2008 4,586
Mobile
message 2009 7,375
5 000
advertising 2010 11,179
2011 15,250
0
2009 2010 2011 2012 2012 19,149
Source: eMarketer (March 2008).

25. // Market highlights
Preferences of mobile internet users: devices
CEE – top 5 mobile devices (models) by website-averaged percentage share of page views
generated on websites monitored by Gemius
2.2% 1.9%
2.6%
13.9%
(Galaxy S II)
Samsung GT-i9100
HTC Desire
Samsung GT-i9000
(Galaxy S)
Apple iPhone
21.1%
Apple iPad
Source: Gemius, gemiusTraffic: Czech Republic, Bulgaria, Slovakia, Slovenia, Hungary, Poland, Russia, Ukraine
(26.09.2011– 02.10.2011).

26. // Market highlights
iPad – the big boost…
CEE – growth of average share of page views generated by iPad among all mobile page views
)
25%
20.62%
19.69%
20% 18.50%
17.60%
16.45%
13.84% 14.90%
13.37%
15% 12.64%
10%
5%
0%
01.2011 02.2011 03.2011 04.2011 05.2011 06.2011 07.2011 08.2011 09.2011
previous month ∆ (current month, previous month)
Source: Gemius, gemiusTraffic: Slovenia, Czech Republic, Slovakia, Poland, Russia, Ukraine, Bulgaria, Hungary
(January 2011-September 2011).

27. // Market highlights
The website-averaged percentage share of page views
generated from iPad and iPhone on the selected markets
40%
35%
30%
25%
20%
Apple iPad, Q3 2011
15%
Apple iPhone, Q3 2011
10%
5%
0%
Source: Gemius, gemiusTraffic, Hungary, Denmark, Czech Republic, Bulgaria, Poland, Russia, Slovenia,
Slovakia, Ukraine, Q3 2011.

28. Size Potential Highlights
Adspends
Video
Formats
Mobile
Social
DO YOU CEE
The internet and online advertising market in Central and Eastern Europe

29. // Market highlights
FACEBOOK USERS IN EUROPE (mm users / 2011)
35
Surprisingly, Turkey is
30
Facebook’s biggest
European market
25
20 Former East-block
15 April 2011
markets still have
10
October 2011 a growth potential
for Facebook but local
5
players remain strong.
0
Data source: www.socialbakers.com

30. // Market highlights
FACEBOOK USERS GROWTH IN THE LAST 6 MONTHS (%)
25 The Facebook’s
pace of growth is
20
by far stronger
15 in the east
than in the west.
10
In Russia
5 domestic social
networks prevail.
0
Data source: www.socialbakers.com

31. // Market highlights
SOCIAL NETWORKS - Poland
Poland - clash of the social titans The Polish giant,
14 nk.pl, managed to
maintain a stable
Millions RU
12
position for a year.
10
On the other hand,
8
Facebook is rapidly
gaining popularity – in a
nk.pl Group year it gained almost
6
facebook.com 50% users.
4
We will surely know the
2
winner in 2012.
0
Data source: Megapanel PBI/Gemius

32. // Market highlights
SOCIAL NETWORKS – Czech Republic
Social networks in Czech Republic
2,0 In the Czech Republic,
Millions RU
1,8 the popularity of the
domestic social
1,6
networks is on a
1,4 decrease.
1,2
blog.cz
1,0 lide.cz
According to
spoluzaci.cz Socialbakers,
0,8
idnes.cz-Rajce.net Facebook gained more
0,6 libimseti.cz than 200,000 Czech
0,4 users in 5 months and is
0,2 now reaching 3.5 mio.
users.
0,0
Source of data: NetMonitor – SPIR/Mediaresearch/Gemius

33. // Market highlights
SOCIAL NETWORKS - Hungary
Hungarian social giants' war
In Hungary,
4,0
Facebook
Millions RU
3,5 attracted more users
than Iwiw already in
3,0
September 2010
2,5 and has since then
gradually continued
2,0
facebook.com to gain audience,
1,5 iwiw.hu
while Iwiw lost 20%
1,0
users in one year.
0,5
0,0
Data source: Gemius Hungary Kft. & Ipsos, gemius/Ipsos Audience

34. // Market highlights
GOOGLE+
• Cost to build Google+ - 585 million USD
• 500 employees engaged in the project
• 50 million users in 88 days
• Mark Zuckerberg is the most popular person on Google +
(almost 600,000 contacts)
Data source: Identyme.com

35. THANK YOU
Join us @:
Contact:
Facebook.com/GemiusGroup Marta Klepka
Twitter.com/Gemius
Slideshare.net/Gemius_com International Marketing Director
YouTube.com/WwwGemiusCom marta.klepka@gemius.com