Internet
Strategic report IAB Poland
POLAND • EUROPE • WORLD
2008
SPECIAL SUPPLEMENT TO
AUGUST-SEPTEMBER 2009
Internet 2008
Table of contents:
Chapter 1: Polish Internet market Internet access
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Online consumers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Internet communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Polish hosting and domain registration market . . . . . . . . . . . . . . . .41 Usability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 Website ratings in Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
Chapter 2: Online advertising Online advertising expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Display advertising
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Video in Internet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56 Behavioural targeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 How to measure engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 SEM – Search Engine Marketing . . . . . . . . . . . . . . . . . . . . . . . . . .64 E-mail marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69 Mobile marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72 Advertising in games . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 Word of mouth marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78 Appendix: Internet advertising and law – selected issues . . . . . . . . .80
Chapter 3: Electronic trading ClassiďŹ eds and yellow pages . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82 Auctions and e-commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85
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Strategic report IAB Poland
Internet 2008
Dear readers,
Year 2008 has been the best in the history for the online advertisement market in Poland. 50 percent of Poles are using Internet today. Companies are not able to imagine daily operating without using this medium, and online campaigns have gained significant share in the ads budgets. Experts’ prognoses in our organization have been confirmed and the expenses on the interactive advertising have exceeded PLN 1 billion. Even more surprising was maintaining very strong growth dynamics of the Internet ad market that was 57 percent year to year; despite of the noticeable symptoms of economic slow down at the end of the year. The main advertising segment in the Internet is still graphic advertising. Important positions occupy as well: ads in the search engines as well as advertisements and yellow pages. Also e-mail marketing is still maintaining its important position. It is worth noticing that 2008 was a year of coming out to the broader arena of new segments. Community services have entered for good the canon of preferences of Polish Internet users and have introduced new forms of ads basing on the interaction between them. Majority of the Polish interactive media have introduced offers for target and behavioral campaigns trying to follow the trends in the most developed markets. We shouldn’t forget about the growth of popularity of qualifying marketing as well as introduction of whispering marketing. Incomes earned by interactive agencies have reached over PLN 100 million and the level of completion of national campaigns has been recognized by juries of international contests. At the end we would like to wish our branch as successful years in the future.
Editorial meeting This report is a sixth yearly summary of activities in many different dimensions 6
Strategic report IAB Poland
of Internet market functioning in our country, starting from the information on consumers and following to the legal issues relating to conducting Internet advertising. This report has been prepared by more than 30 authors who have been supporting everyday activities of IAB Poland with their expert knowledge in the working groups, giving the lectures during the conferences as well as educating young staffs during the university classes. This year we have limited number of chapters which was only editorial operation, because finally we have extended the range of issues presented. Having in mind the previous year’s interest, this year for the second time we are planning to issue the report in English as well.
IAB Poland 2008 development time After difficult first year of operating in new formula, 2008 has been the time of strong development and implementation of plans initially outlined in 2007. Number of organization members has doubled, increasing from 33 to 67. We can definitely say that we accomplished much more than we were assuming. The most important activity for the market was certainly research projects conducted by us, including IAB AdEx completed together with PwC. We have successfully completed yearly research for 2007 and summed up the expenses for the first half of 2008. Our data was included in the European results of AdEx research. It becomes even more important if we perceive it as an opportunity to promote our country on the European arena, when 10-20 percent of campaigns are conducted in several countries simultaneously. We want Poland to join the group of countries where such campaigns are run regularly.
Internet 2008
We are satisfied with the popularity of conferences and meetings organized by our bureau. We have organized over 20 of them. IAB 2008 Forum has been visited by 650 guests, both Polish as well as foreigners, and 400 people took part in the award gala of the Mixx Awards contest for the best Internet campaigns. We have been developing IAB Update cycles and each of them has gathered more than 350 participants, and IAB Show case – addressed at marketers exclusively, a series of meetings presenting the best national case studies. We have visited Cracow, Wroclaw and Tricity presenting the series of IAB Meeting. Within the framework of marketing workgroup in the search engines and in cooperation with IDG we have successfully prepared two day conference – SEM 2008. During those events the presence of clients that rarely visit branch events was particularly valuable. We have tried to support companies and organizations which try to organize individually or in collaboration local events aiming at introducing interactive marketing, including among others: Media-trendy, Impactors, IDG conferences, E-rewolucja biznesu, Tubes, Netcamps, and IT Party. An interesting opportunity to establish ties and contacts on the international level was the trip taken by the group of 70 representatives of our interactive market to the Interact congress organized by IAB Europe in Berlin. We pay significant attention to the process of selfregulation through the documents of recommendation, best practices and work standards prepared in the Workgroups. The following groups have been conducting their works in 2008: interactive agencies, best practices in display advertising, e-mail marketing, SEM, networks, video and local searching. Unfortunately not all the works are continued at the moment and not all of them have reached the assumed goals. Because of that at the end of the year coordinator of workgroups has been employed – Jacek Wownysz who is responsible for active animation of those activities.
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Strategic report IAB Polska
In 2008 we have encountered for the first time the necessity to personally represent the interests of interactive branch when contacting the government agencies in relation to the well known case of pop up advertising conducted by Office of Competition and Consumer Protection. We have undertaken the role of mediator between the bodies acting on our market and at the same time we have cooperated with other organizations on the national level. We have been working together with SAR and “Advertising Council” Associations Union, where we have introduced two our representatives as judges – Dominik Kaznowski and Olgierd Cygan – who seat in the adjudication panel of the Advertising Ethics Committee. On the international arena we have been acting in cooperation and within the framework of IAB Europe. The success of our Polish IAB became an example for Central and Eastern European countries. IAB Poland has supported development of local IAB branches in Hungary and Croatia. Apart from participating in European AdEx, Andrzej Garapich PhD, president of PBI, representing IAB participated in the world initiative of MIA Project aiming at creating methodology for comparing the ways of measuring the number of users in individual countries. Thanks to the large number of users participating in the research, Poland has become one of the main most active markets in the research. The success of 2008 activities was significantly driven by cooperation with: Grzybowski & Grzybek Law Firm, PRActions company as well as Kompan.pl and Opcom companies which support development of our communication tools in the network. It is impossible to name all the persons who contributed to the development of our organization this year. Nevertheless we would like to thank all of them.
Internet 2008: Polish Internet market
CHAPTER 1
POLISH INTERNET MARKET Internet access World Internet internet users live in Asia (over 657 million), and in percentage terms the leader is the North America, where almost three quarters of residents use the network.
According to the InternetWorldStats.com almost 24 percent of the world population has been using Internet in 2008, which makes it almost 1.6 billion people. The largest number of
World Internet users Region
Population
Internet users in 2000
Internet Penetration users (population in 2008 percent)
Africa 975,330,899 Asia 3,780,819,792 Europe 803,903,540 Middle East and Central Asia 196,767,614 North America 337,572,949 Latin America 581,249,892 Australia and Oceania 34,384,384 The world 6,710,029,070
4,514,400 114,304,000 105,096,093 3,284,800 108,096,800 18,068,919 7,620,480 360,985,492
54,171,500 657,170,816 393,373,398 45,861,346 251,290,489 173,619,140 20,783,419 1,596,270,108
Growth 2000-2008 (in %)
5.6 17.4 48.9 23.3 74.4 29.9 60.4 23.8
Percent of Internet users in the world 3.4 41.2 24.6 2.9 15.7 10.9 1.3 100.0
1 100.0 474.9 274.3 1 296.2 132.5 860.9 172.7 342.2
Source: InternetWorldStats.com, 2008
Internet penetration according to regions
Users according to regions Asia
657.2
Europe
54.2
Middle East and Central Asia
45.9
Australia and Oceania
20.8
Million
100
48.9
Latin America and Caribbean
173.6
Africa
60.4
Europe
251.3
Latin America and Caribbean
74.4
Australia and Oceania
393.4
North America
North America
29.9
Middle East and Central Asia
23.3
Asia Africa 200
300
400
Source: InternetWorldStats – www.internetworldstats.com/stats.htm, 2008
500
600
700
800
17.4 5.6
World average %
23.8 10
20
30
40
Source: InternetWorldStats – www.internetworldstats.com/stats.htm, 2008
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Strategic report IAB Poland
50
60
70
80
Internet 2008: Polish Internet market
Online consumers
Education and professional status Internet users in Poland are representing higher than average social and material status, and most of the time they are well educated. Percentage of persons holding university degree is much higher than in the population and is 18.7 percent. Another 18.8 percent of users have postsecondary, college or incomplete university education. Moreover significant group of Internet users is a group of people with secondary and incomplete secondary education (33.9 percent). Comparing to 2007 there have been no changes to the internet users education.
Education of Polish Internet users of 18+ University
Primary and incomplete primary
Middle school
2.4% 2.8% 23%
23.2%
15%
33.6%
Education of Polish Internet users University
Primary and incomplete primary
18.7%
Middle
5%
11.4%
12.2% 18.8% 33.9%
Postsecondary Postsecondary, college and incomplete secondary
Secondary and incomplete secondary
Vocational Vocati
Source: Megapanel PBI/Gemius, XII 2008
If we take a look at the group of adult Internet users exclusively, the structure of education is illustrating even more the differences in 20
Strategic report IAB Poland
Postsecondary, college and incomplete higher
Secondary and incomplete secondary
Vocational
Source: Megapanel PBI/Gemius, XII 2008
relation to the whole population. Among people that are using Internet and are over 18 years old, 23 percent declares holding university degree. Primary education has been indicated only by 2 percent of internet users. Still the largest group of Polish Internet users includes pupils and students – 32.6 percent. Their range has dropped down by 2 percent points compared to 2007. More than 1/3 of users (33.6 percent) belong to the group of people running own business (18.3 percent), specialists or persons with freelance occupation (8 percent) as well as office workers and administration workers (7.3 percent). Unemployed (3.2 percent) and qualified laborers (3.9 percent) are the smallest group of Polish Internet users. Retired and pensioners (4.3 percent) group is slightly exceeding the group that includes senior management (4 percent).
Online consumers
Professional status of Polish Internet users Junior manager
Qualified laborer
Other
Pupil or student
Unemployed
18.3%
3.2%
32.6%
3.9%
4% 4.3% 5.7% 6.1%
people at school. 30.2 percent of Internet users have refused to answer the question regarding their earnings. Among the people that answered that question, the highest percentage (18.7 percent) declares income around 1,001-2,000 PLN. Among the remaining persons earning incomes, 7.8 percent declares their income to oscillate between 2,001-3,000 PLN, 7.4 percent earns up to 1,000 PLN and 4.4 percent, according to their declaration, earn over 3,000 PLN.
Internet users’ incomes among persons declaring income
8% 6.7% 7.3%
Over PLN 3,000
Sales or services department employee
Office, administration worker
Specialist, freelance
Retired or pensioner
Owner, facility manager, director
Own business
Up to PLN 1,000
11.4%
19.3%
20.4%
Source: Megapanel PBI/Gemius, XII 2008
48.9%
Nearly 1/3 (31.5 percent) of Polish Internet users declares no earnings. It coincides with the structure of professional status of Internet users, where 32.6 percent of Internet users are
Polish Internet users incomes From PLN 2,001 to 3,000 Answer refused
No income
From PLN 1,001 to 2,000
Up to 1000 PLN Source: Megapanel PBI/Gemius, XII 2008
30.2% 4.4% 7.8%
Over PLN 3,000
Among Polish Internet users earning incomes, the highest percentage earns between 1,001-2,000 PLN (48.9 percent). 20,4 percent of people are earning between 2,001-3,000 PLN. The group of people earning up to 1,000 PLN includes 19.3 percent of Polish users. 11.4 percent of people earn over 3,000 PLN monthly.
31.6%
7.4% 18.7%
From PLN 2,001 to 3,000
From PLN 1,00 to 2,000
Source: Megapanel PBI/Gemius, XII 2008
August-September 2009 Special supplement to “Media & Marketing Polska”
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