Getting value from the Internet is the theme of the Spring edition of State of the Net. It also covers trends in catch-up TV, digital advertising and eCommerce

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 16 Spring 2010
Broadband Score Card
Measure Ireland’s score Rank
How we What the
Take up 1 21.4%
score for young 7
71%
Broadband subscribers per
100 inhabitants
Fibre connections 2 0.6%
do online
As % age of total broadband
broadband
Speed 3
4.9%
Keepi
% age of connections
10Mbps and above
Cost 4 89%
Music
touc
Annual cost of 34Mb leased
line as % age of OECD 19 average
page 2 page 4
5
Current broadband subscriptions 1.36m
Buy wisely to get value from Internet 7
eCommerce as % of total turnover 71%
market knowledge. So how can
60% you be a smart buyer? Keepin
26% Music in touc
12% 15% 1. Do your homework: Under-
40% specification cripples online
projects
Ireland 2. Get expert help: It is often
20% EU 27 UK more cost-effective to
© AMAS graphic (www.amas.ie) commission a strategy and
0% planning project before going
Source: Eurostat Information and Communication Technologies in out to market to build a new site
Enterprises, published January 2010 or application
3. Seek competitive quotes: Get
Aileen O’Toole, perceptions at different points in a developer to make routine at least three quotes but ensure
Managing Director, the sales cycle. website updates which should that project requirements are fully
AMAS be done in-house. Why? scoped and you can make valid
Not every company will need a Because site functionality was comparisons between proposals
Never has there been so complex website that integrates not properly specified 4. Don’t assume that cheap is
much interest among Irish with a back-end system. And • An organisation had a best: Avoid the temptation of
businesses in the Internet, as not every business will need largescale website developed automatically selecting the
a new sales channel, as a to develop web applications at a discounted rate, but lowest cost vendor. Factor
way to cut costs or improve or launch campaigns on didn’t consider maintenance experience, quality, project
customer service or simply as Facebook or Twitter. requirements so it is now management and customer
a highly effective marketing saddled with high on-going service into the process
and communications What every business needs, costs. Why? Because it is 5. Use free stuff: Don’t assume
platform. Companies though, is clarity around what effectively locked into a that you need to pay a
cannot afford to ignore type of online presence – single supplier with proprietary licence fee for the software
the Internet. How much website(s), other channels, software which has a de facto that powers your website or
value it offers will vary from campaigns – supports their monopoly drives your campaign. Free
business to business and commercial or other goals. • Another company delivered tools, like Google Analytics
from sector to sector but also Many internet projects fail an ambitious web project at and WordPress, have made life
by how well internet projects to deliver value because less than a third of the cost that difficult for other analytics and
are scoped, developed, there isn’t that type of clarity. had been quoted by some web content management providers
delivered and promoted. Companies often commission developers. How? By using a whose paid products are not as
projects without this strategic low-cost piece of software and feature-rich
New research, illustrated in context and without pinning paying for its deployment, not 6. Protect yourself: Avoid lock-in
the graph, shows that Irish down the project requirements for custom development to a single supplier, tie payments
companies have a higher in the kind of detail required by into deliverables and ensure
proportion of online sales a web developer or an online Buying web, IT or online warranty periods are built into
than those of any other EU marketer or both. marketing services and software the contract
country. Not every product is something of a black art
or service can be sold online, Three stories illustrate the point: and requires a corresponding Visit the AMAS website
of course, yet a strong online • One NGO has been paying combination of IT, marketing (www.amas.ie) for a buyers’
presence influences buyers’ over €1,000 each month to and Internet skills as well as guide for Internet projects.
Compiled by AMAS in association with the Irish Internet Association

2. Broadband Score Card 1. Broadband
Improving, but could do better. result is mixed. There have been
Measure Ireland’s score Rank Ireland’s broadband scorecard is improvements in the speed and
showing an improvement but it has the cost of broadband offerings,
21.4%
some distance to go to match the with coverage and take-up rates
Take up 1 top performers internationally. High- converging to the OECD average.
quality, affordable broadband is The latest ComReg data shows
Broadband subscribers per
100 inhabitants essential to stimulating economic 1.36 million subscriptions.
0.6%
activity, specifically to creating jobs,
Fibre connections 2 earning export revenues, attracting But, Forfás warns, Ireland is at
foreign direct investment and least three to five years behind
As % age of total broadband
supporting regional development. competitor countries in term
4.9%
of rolling out the infrastructure
Speed 3 A new report from Forfás to deliver high speed, next
% age of connections aggregates all the international generation broadband. In Ireland
10Mbps and above benchmarking data for only 0.6% of connections are fibre,
Cost 4
Annual cost of 34Mb leased
89% broadband and shows how
Ireland stacks up against its
international competitors. The
compared with 21% for Sweden, a
whopping 51% for Japan and an
OECD-28 average of 11.3%.
line as % age of OECD 19 average © AMAS graphic (www.amas.ie)
© AMAS graphic (www.amas.ie) Scorecard sources:
1 Take up – OECD, June 2009 (based on 30 OECD countries)
2 Fibre connections – OECD, June 2009 (based on 28 OECD countries)
5 3 Speed – Forfás Ireland’s Broadband Performance and Policy Actions January 2010 (based on 24 EU countries)
Current broadband subscriptions 1.36m 4 Cost – Forfás Ireland’s Broadband Performance and Policy Actions January 2010 (based on 19 OECD countries)
5 ComReg Quarterly Key Data Report, December 2009
2. eGovernment Online availability of services
At last, a boost in an international
benchmarking study, with Ireland making it Full online availability in 2009
to the top ten within the EU for eGovernment 100%
Full online availability in 2007
delivery. Ireland is categorised as “fast
© AMAS graphic (www.amas.ie)
growing” and has closed the gap with our
80%
European neighbours on key eGovernment 71% EU Average 2009
indicators, according to a European
Commission benchmarking study.
60%
59% EU Average 2007
We earned a score of 83%, compared with
an EU average of 71%, for what the study calls 40%
“full online availability”. By comparison, the
previous study showed Ireland lagging the then
EU average of 59%. “Full online availability” is a 20%
measure that scores the maturity of 20 online
services across all EU member states. Ireland is
ranked as a top performer for eProcurement, 0%
with over 95% of all published Official Journal
Estonia
Sweden
Slovenia
Ireland
Latvia
Portugal
UK
Finland
Germany
France
Norway
Spain
Denmark
Italy
Lithuania
Hungary
Austria
Netherlands
Belguim
Malta
of the European Union (OJEU) contracts
advertised through the eTenders website.
Source: European Commission, 8th eGovernment Benchmark Measurement, published November 2009

3. Top Trends
3. Smart phones
Sleek new smartphones, with the
latest business apps and a host
of other online services, are an
essential tool in the executive
toolkit. They are the most popular
mobile data device offered to
employees – with 70% of large
corporates providing them to
employees compared with 30% of
SMEs.
Remote working has also been
facilitated by other mobile data
devices, such as 3G datacards,
netbooks and wireless LAN cards.
Larger Irish corporates are much
more likely to offer such devices to
their employees than SMEs.
New ComReg data shows that 87%
of corporates – those employing
© AMAS graphic (www.amas.ie) 100+ – were providing some type
of mobile data device to some of
Source: ComReg SME & Corporate ICT Research conducted by Millward Brown IMS, March their employees, compared with
– April 2009. Based on a sample of 400 SMEs and 65 Corporates. There was no research just 45% of SMEs, defined as those
conducted in 2007. employing 100 or less.
4. Digital advertising
Digital advertising will be that online classifieds took (IAB Ireland). This is widely Digital advertising mix
the third largest medium in a “huge hit” last year, with predicted to accelerate
Ireland in 2010 and grow revenues halved, but search the growth of digital
by 9% compared with an
overall advertising market
performed well and is now
the largest category within
advertising in
Ireland at the €7.2m
decrease of 7%, according online. expense of
to management consultancy
Billetts. €7.2m the most recent
In the UK,
traditional
media.
IAB statistics for the first half €13.5m
As forecasters go, Billetts of 2009 show online as the
€35m
€13.5m
has a better class of crystal
ball than others, as it audits
largest single category,
with a 23.5% market Search
budgets for major advertisers. €35m
share. Similar research
Display
The consultancy puts a value is to be commissioned
of €86 million on Irish digital in Ireland this year from
©A
advertising in 2009 giving it a PricewaterhouseCoopers by Classifieds
€30.6m
MA
market share of 10.6%, on a the relaunched Interactive
Sg
€30.6m
rap
par with radio. Billetts reports Advertising Bureau Ireland Sponsorship
hi
c(
ww
w.a
ma
Source: Billetts Ireland 2010 Media Forecasts analysis, published December 2009 s.ie)
the opportunity to win online

4. 82% At least one
Main use of Internet 5. Young people online 18% None
82%
Current number of social
networking sites
70% 44% 18%
71%
© AMAS graph
82% At lea
82% At least one
Music Keeping in 18% None
ic (w
touch Research 18% None
ww
.am
as
.ie
)
18% None
82% At least one
© AMAS graphic (www.amas.ie)
45% Bebo
29% Facebook
13% Other
5%
7%
1%
It’s what most parents of teenagers Music was the top internet choice,
want to know – what are they up followed by socialising and research. 29% Facebook
Myspace
Gaia Online
Twitter
to on the Internet? One teenager All but 18% of the sample had “at
– award-winning blogger Tommy 70% 44%
least one” account on a social 45% Bebo
71%
Collison – got some answers when networking site.50%
Interestingly, Bebo 29%
he polled his fellow teens for a
Keeping is shown to have the widest reach, 1% Gaia Online
Music
project for this year’s BT Young
in touch Research
followed by Facebook (other social 44 43 45%
Scientist & Technology Exhibition. 40%
networking data shows Bebo on the 5% Myspace
Collison, now 15, has been a wane, losing out to Facebook). How 39 38 1%
29% Face
blogger for a couple of years many of these social networking 7% Twitter 35
29% Facebook
and decided to test the attitudes accounts lie dormant is known only to 31
30% 31 27
29 5%
45% Beb
of secondary school students to the social networking sites themselves. 13% Other
25
29 45% Bebo 7%
blogging. 25 25 1% Gaia
As for the blogging, the teens gave
20% 22 21 1% 23
Gaia Online 13
In the process, he got insights into a lukewarm response. Around a third
19 5% Mys
19
their online behaviour. Some 1,781 of the sample read blogs and only 5% Myspace
14 14
students from ten secondary schools 7% of the sample contribute to blogs.
10% 12 11 7% Twi
completed the survey, two-thirds of Why? Tommy speculates that it’s to Source: Twitter
7% BT Young Scientist project by Tommy
whom were 15 or younger and half do with lack of familiarity, 9 time it
the 8 Collison which examined6secondary school
6
13% Oth
5
of whom use the Internet from home can take and, also, concerns about
0% 3 3 students’ use of the Web. Based on a sample
13% Other
each day. parental approval. of 1,781 secondary school students
2005 2006 2007 2008 2009
6. Online shopping
16 - 24 35 - 44 55 - 64
25 - 34 45 - 54 65 - 74
50% Young adults are more 24-year-olds (29%).
likely to shop online than
% ordering online by age older or younger Irish This longitudinal study of
44 43
40% consumers, according to online shopping trends
39 new Eurostat figures. 43% also reveals that Ireland
38
35 of those between the ages is bang on the European
30% 31 31 27
29 of 25 and 34 said that they average for online
25 had bought something shopping, with 37% of
29 online in the previous three the population buying
25 25
20% 22 21 23 months, nearly double the online. The survey found
© AMAS graphic (www.amas.ie) proportion in the same that UK shoppers are more
19 19 age bracket back in 2005. frequent shoppers, with
14 14 The second-highest group a comparative figure of
10% 12 11
are the 35 to 44-year-olds, 66%, the second highest to
9 8 at 35%, followed by 16 to Norway (70%) in the EU-27.
6 6 5
0% 3 3
Source: Eurostat Internet usage in 2009 - Households and
2005 2006 2007 2008 2009 Individuals, published December 2009
16 - 24 35 - 44 55 - 64
25 - 34 45 - 54 65 - 74
www.amas.ie

5. Top Trends
7. Online TV
Watching Coronation Street since the RTÉ launch include
Growth in catch-up TV
or the main evening news on The Late Late Show, news,
your laptop or PC is getting Desperate Housewives,
to be big business in Ireland. Operation Transformation,
Catch-up TV has still to Flash Forward and The
celebrate its first birthday on Frontline. RTÉ was one of
Irish TV, but the numbers are the first broadcasters in the
already very impressive. world to launch extensive
international access to
RTÉ Player had almost a version of its catch-up
400,000 unique users in service.
January, more than a three-
fold increase on its first full Now that online TV is
© AMAS graphic (www.amas.ie)
month of operation last May. earning decent audiences,
The number of streams is also advertisers will start to use the
on the rise – hitting a record medium more. Consultancy
1.6 million in January alone. Billetts expects video
advertising to rise and for
Source: RTÉ, February 2010 So what are we watching consumers to interact more
online? The top 10 streams with such advertising.
IIA Congress looks at 2020 vision
This analyse their online strate- The Online Marketing Group
year’s IIA gies and give confidential Working Group is studying • The Legal Working Group
Congress advice on the best course the Irish business use • The User Experience
will have for their businesses. of blogs within the Working Group
a dual international marketplace, • The International Strategy
focus: Breakout sessions during the and is interested to hear Working Group
what’s conference will also cover a from member organisations
good wide range of themes that about their experiences in The IIA Working Groups
in 2010 reflect the tough environ- using blogs to expand their cover a wide range of
Joan Mulvihill and ment we are going through. global reach. issues, from usability to the
CEO, Irish what’s In the evening there will be legal implications of doing
Internet possible the presentation of the an- The Web Development business online. They focus
Association for 2020. nual Net Visionary Awards. Working Group is producing on areas that add value for
It will procurement guidelines IIA members and advance
critically assess the next The past 12 months have for businesses on web the internet industry and
wave of opportunities also been a busy time for development services, online business in Ireland,
for the industry, as well the IIA Working Groups, and based on a recent survey of and bring together experts
as more immediate a full programme of activity purveyors and purchasers. across a wide range of
benefits for businesses in is planned for 2010. areas, alongside members
terms of improving their Other groups include: who bring a valuable
processes, productivity and For example, the Social • The Infrastructure Working business perspective.
profitability. Media Working Group is
currently examining the Irish Internet Association Congress and Net Visionary Awards
The Congress will see the business use of online video
return of the popular “Web and audio, while the Cloud Date: 20 May 2010
strategy clinics”. Delegates Computing Working Group Venue: Crowne Plaza Northwood, Santry, Dublin
will be able to book a one- is preparing a white paper Theme: “2020 Vision”
on-one 30-minute slot with on attitudes to cloud com- Book now: www.iia.ie/congress
industry experts, who will puting among SMEs.

6. AMAS completes two strategy projects
AMAS has completed and services and reduce its trends team in defining requirements
significant online strategy dependence on peat and • Develop a strategy and and procuring design and
projects for Bord na Móna and fossil fuels. It sees the Internet as roadmap for its online development services
the Houses of the Oireachtas. a critical platform in achieving channels, including social • Create a new easy-to-use
For Bórd na Mona (www.bnm. these objectives. Following a media and Web 2.0 information architecture
ie), the objective was to map competitive tendering process, • Help specify and create new
how the Internet could support it retained AMAS to: The Houses of the Oireachtas site content
commercial, marketing and • Evaluate its current use of (www.oireachtas.ie) recently The Oireachtas website is
communications objectives the Internet launched the first phase of its one of the largest in Ireland,
at a time of considerable • Audit ten websites in Ireland, redeveloped website. AMAS with over 800,000 pages. The
change. The company aims the UK and the US was retained to: scope of this redevelopment
to reposition itself as a key • Identify requirements with • Conduct a strategic review phase excluded databases for
player in renewable energy, stakeholders • Research audience usage debates and bills and other
environmental products • Research relevant online • Support the communications legacy content.
‘This document is best viewed with...’
Remember that Google is winding down facto one, or was.
the support for Microsoft Internet
browser Explorer 6. From 1 March, key Apple’s move essentially
AMAS: what we do
wars of functions in Google Docs and demands that publishers AMAS is a consultancy
the 1990s? Google Sites will no longer recode sites that use Flash specialising in online
No? As work with IE6. The need to suit its technology. This will channels. The company
Microsoft to cater for non-standard matter less as the latest web
is retained by businesses
Fiachra and features of IE6 has long been standards are adopted, such
and government bodies
Ó Marcaigh, Netscape
fought to
a pain for web publishers. as HTML5, which allows video
to be included in web pages to plan, manage, evaluate
Director, AMAS dominate Flash bashing without requiring Flash. and market their online
the PC And there’s Apple. Its much- channels.
web browser market they hyped iPad does not support Standards-based
added new, non-standard Adobe Flash. (Neither do the Now more than ever, publishers Services include:
features to their browsers. 44 million iPhones out there, cannot assume that their
Websites often had notices but people expect pocket audiences are sitting in front • Strategy • Marketing
saying that they were “best devices to behave a bit of a computer monitor, with • Research • Project
• Audits management
viewed with” one browser differently.) a keyboard and mouse to
version or another. hand. To succeed, online • Content • Outsourcing
Flash is extremely widespread communications will have to:
It was frustrating for users and on the Web, to play video • Be user-focused Find out what AMAS
maddening for web publishers and create animation and • Cater for mobile users can do for you.
who had to create several interactivity. It lies behind • Use web standards to the Contact Aileen O’Toole,
browser-specific versions of a the rise of YouTube and the greatest degree possible Managing Director,
site. Web standards promise to success of the RTÉ Player. Flash • Avoid browser wars on + 353 1 6610499
end those problems. is proprietary to Adobe. It is
not an official web standard, Here’s to HTML5 and a or info@amas.ie.
One piece of good news is but it is close to being a de standards-based Internet!
© 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