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COUNSELORS:

Alain Heureux, Filip Pieczyński,


Jarosław Sobolewski

AUTHORS:

Małgorzata Dudko, Michalina Pelc,


Bartosz Wardziński

CONTRIBUTORS:

Tamás Ács, Vesselin Angelov, Mikhail


Doroshevich, Catalin Emilian, Tomáš
Gregor, Vladimir Houba, Vlad Ionescu,
Ľuboš Ivanič, Vibor Kalogjera, Marta
Klepka, Alexander Levshin, Dmytro
Lysiuk, Gökhan Mertay, Gregor
Nišavič, Toms Panders, Jolita Reidman,
Natalia Szymańska, Judit Völgyesi,
Paap Peterson, Ieva Knāķe

SUPPORT:

Marcin Dukat, Dawid Fillmann, Łukasz


Urbański, Katarzyna Zagórska

The authors of „Do you CEE? The Internet Market of Central and Eastern Europe
in 2010” wish to thank Romanian Audit Bureau of Circulations (BRAT) for providing
access to data concerning the Romanian internet and for preparing the chapter
on the online market in Romania.

WITH SPECIAL THANKS TO:

Ričardas Baltaduonis, Tomáš Búřil, Joanna Gajewska, Dmitry Gizhdevan, Elvijus


Gudžiūnas, Hristo Ivanov, Jan Jilek, Plamen Kalinikov, Edgars Kalniņš, Alexander
Kim, Piotr Kowalczyk, István Kürti, Martin Kyncl, Tomáš Lauko, Gergana Marinova,
Péter Novák, Cezar Paraschiv, Sergey Petrenko, Laurentiu Pop, Igor Rõtov, Viktors
Rožkalns, Andrey Sebrant, Dmytro Sholomko, Petar Simeonov, Egidijus Sirvydis,
Saša Škorić, Radoš Skrt, Aleksander Stelmakh, Orkun Tekin, Silviu Toma, Gabor
Tóth, Tomáš Varga, Adina Vasilescu, Dilyan Velichkov, Meelis Vill, Alex Visa, Artur
Waliszewski, Jurij Ziccer Anatoljewicz
ALAIN HEUREUX
IAB Europe President and CEO

After the enormous success of the first Do you CEE? report produced in
collaboration with Gemius, I’m delighted to get back to the industry with
a second report explaining the dynamics of the CEE region in 2010. Other
regional reports will be provided by IAB Europe in response to the positive
feedback from the members.

CEE remains a special region for us, as we can feel the energy, innovation,
creativity and strong growth of these markets. Jarosław Sobolewski (Manager
of IAB Poland, Board member IAB Europe and Regional Manager on the CEE
Region) and Martin Radelfinger (International Business Director Goldbach
Media-Adconion) are working closely with the European team, the Board as
well as partners like Gemius in supporting the growth, training local IABs and
Partner associations and providing information to the industry. This report
serves as a source of valuable information not only for marketers, media houses
and advertisers who are looking for new areas for expansion, but also for
the younger markets to measure their own progress and identify areas where
they can continue to develop and grow.

FILIP PIECZYŃSKI
Gemius Management Board Vice President

Gemius has the great pleasure to present you Do you CEE? The Internet Market
of Central and Eastern Europe in 2010. This is already our second compendium
of knowledge on the CEE online reality. The last year’s report proved to be
immensely popular and revealed the scale of demand for credible and unbiased
compilation of data concerning the entire region. The report has also become
one of the most eminent and prestigious projects carried out by Gemius.

Like in 2009, this year’s report presents a landscape of the region and
an overview of each CEE market, discussing its main players, online audience
and most popular tools. Those familiar with the 2009 version of the report
will appreciate the inclusion of interesting data from two more markets into
the analysis: Belarus and Turkey. It is in these countries that Gemius successfully
started its operations in the years 2009 and 2010.

I would like to thank our partner in this and last year’s project, IAB Europe,
as well as all those whose effort made the creation of the report possible.
I cordially invite you to join us in analysing the online reality of Anno Domini 2010
– a year marked by the growing importance of video content, invariable
popularity of social networking websites and a battle of web browsers.

Do you CEE?
TABLE OF CONTENTS

10 CEE Online Landscape

24 Belarus

40 Bulgaria

58 Croatia

72 Czech Republic

88 Estonia

102 Hungary

120 Latvia

138 Lithuania

156 Poland

172 Romania

192 Russia

206 Slovakia

218 Slovenia

230 Turkey

246 Ukraine

260 Methodological Note

264 SATI Methodology


10

ONLINE LANDSCAPE

The online market in Central and characteristics, let us look at the data
Eastern Europe is developing; describing the landscape of this fertile
therefore the dynamics of its growth online land.
is still one of the key factors indicating
its great potential. Despite the fact The comprehensive description of
that differences in the development of the online area in Central and Eastern
the internet in various CEE countries Europe should focus on three basic
are visible, an increase in the number and interrelated elements: size of
of new users in the whole region is market, its level of development and
not losing momentum. In this respect, its business potential. In this chapter
the Central and Eastern European all three approaches will be presented
online market is growing from and discussed.
strength to strength and appears to
be a forward-moving and extremely
promising business sector. To better
understand its nature and general

MARKET SIZE

Central and Eastern Europe is a market Ukraine is one of the exceptions.


of over 300 million people, therefore At the beginning of 2010 there were
the online area has tremendous over 45 million people in the country
opportunities for growth. According and less than 8.4 million internet
to the gemiusAudience study, at the users. At the same time the online
beginning of 2010 in all CEE countries population in Romania was 7.6 million,
(plus Turkey) there were over in the Czech Republic it was slightly
117 million internet users. However, over 5.2 million and in Hungary almost
this region is extremely diverse and 4.2 million. In contrast, the CEE region
the differences in sizes of these also covers such small online markets
markets are great. The largest market as Latvia (1.2 million internet users),
is Russia, where in January 2010 Slovenia (1.1 million internet users)
exactly 40.1 million individuals were and Estonia (0.8 million internet
using the internet on a regular basis. users). However, the absolute number
The second largest and attention- of internet users is only the first step
drawing online market is Turkey in an exhaustive description of the
(almost 22 million internet users), market.
however, it is often not counted
among the relevant CEE markets. Such It is extremely important to note
uncertainty does not concern Poland, that what makes the online markets
where almost 15 million people interesting is also the dynamics of
regularly use the internet. their growth.
All other markets are proportionately
smaller and the size of each online
population in most cases reflects the
actual size of each particular country.

Do you CEE? Online Landscape


11
Milions of users Internet population

Chart 1 Internet population in the CEE region (January 2010);


source of data: Ukraine: gemiusAudience; Hungary: gemius/Ipsos Fusion Data; Latvia: gemiusAudience; Belarus: gemiusAudience; Turkey:
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; Russia: Gemius estimation based on FOM statistics/gemiusAudience Data; Estonia: gemiusAudience (data
collected using TURU-UURINGUTE AS research); Lithuania: gemiusAudience; Croatia: gemiusAudience [age groups – CEE: 15+; Russia: 18+;
Romania: 14-64; Lithuania: 15-74]
12
Since the beginning of 2009 the As for the largest markets, the
general online population in the dynamics of their development seem
whole region of Central and Eastern to be inversely proportional to their
Europe (together with Turkey) grew size. From January 2009 to January
by over 9 million new internet 2010 the number of internet users in
users. That is more than the entire Poland increased by 8% and in Russia
population of Slovakia. Even more by barely 6%.
important is the fact that when
growth dynamics are taken into The slowest online population growth
consideration, it becomes obvious in 2009 was observed in Lithuania
that the largest internet markets are and Croatia. In both countries the
not those which develop fastest. In number of regular internet users
2009, as in the previous year, Ukraine increased by 3% (from 1.45 to 1.49
was the country which experienced, million) and 2% (from 1.63 to 1.66
relatively speaking, the greatest million), respectively.
increase in the number of internet
users (15%). During the same period
the online population of Hungary
increased by 13% and in Latvia by
12%. It is worth noting that the
Latvian market is one of the smallest
in the whole CEE region.

Internet users 2009-2010


Milions of users

Growth 2009 - 2010

Chart 2 Internet population in the CEE region – growth (January 2009 – January 2010);
source of data: Ukraine: gemiusAudience; Hungary: gemius/Ipsos Fusion Data; Latvia: gemiusAudience; Turkey: 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;
Russia: Gemius estimation based on FOM statistics / gemiusAudience Data; Estonia: gemiusAudience (data collected using TURU-
UURINGUTE AS research); Lithuania: gemiusAudience; Croatia: gemiusAudience [age groups – CEE: 15+; Russia: 18+; Romania: 14-64;
Lithuania: 15-74]

Do you CEE? Online Landscape


13

MARKET DEVELOPMENT
The size and speed of growth attest to equally promising parts of the world,
the potential of the CEE online market. the situation is improving fast.
However, in answer to the question
of the state of its development, This is the case in Ukraine, which
another indicator may be useful, i.e. for several years has been the most
internet penetration. If one takes dynamically developing online market
into account the differences in the and in the following comparison holds
size of CEE countries, it becomes the last position with its internet
possible to determine the real level penetration level at a mere 21%.
and diversification of the development According to the gemiusAudience
of the internet infrastructure in the study, a quite low internet penetration
region. level is also found in Belarus
(35%) and Russia (36%), which,
The general observation does not as a large and extremely diverse
refer directly to the data. When market, still faces many obstacles
comparing the CEE online market as to the development of its internet
a whole with its western counterpart, infrastructure. Similarly, Turkey, one
it becomes evident that this region still of the newest markets participating in
does not display a penetration level the gemiusAudience study, recorded
similar to that found in more ‘mature’ an internet penetration level of 40%
economies. However, as in other at  he beginning of 2010.
14
Internet penetration
Internet penetration [%]

Chart 3 Internet penetration in the CEE region (January 2009 – January 2010)
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/gemiusAudience Data; Estonia: gemiusAudience (data collected using
TURU-UURINGUTE AS research); Lithuania: gemiusAudience; Croatia: gemiusAudience; Belarus: gemiusAudience (February 2009,
January 2010); Romania: Mercury Research; [age groups – CEE: 15+; Russia: 18+; Romania: 14-64; Lithuania: 15-74]

Interestingly, the highest level of Should this result be regarded as


internet penetration in Central satisfactory? Yes, especially seeing
and Eastern Europe is the domain that no country in this part of the
of small and very small countries, world is sluggish when it comes to
which have already managed to cope internet penetration growth. Since
with a host of challenges associated last year this indicator has increased
with infrastructural and business in all CEE markets. The greatest
development. In this respect, Estonia growth took place in Belarus.
appears to be the undisputed leader Between January 2009 and January
of the whole region. In January 2010 2010 internet penetration in this
internet penetration in this country country increased by astounding
reached a level of 71%. At the 9 percentage points. Significant
forefront of the list are the other growth of internet penetration in
Baltic countries: Latvia (65%) and 2009 has also been observed in
Lithuania (57%), as well as Slovenia Poland (7 percentage points) and
(62%) and the Czech Republic Latvia (6 percentage points). In turn,
(58%). In turn, the average internet for the Czech Republic, Croatia,
penetration for the whole region Hungary and Romania 2009 was
at the beginning of 2010 equaled 49%. a year of moderate development,

Do you CEE? Online Landscape


16
as internet penetration grew on CEE markets is much lower than
these markets by 5 percentage in Western European countries.
points. Incidentally, the average The leading position in Europe
increase of internet penetration in this respect belongs to the
for the entire region was also exactly Nordic markets (Iceland, Sweden,
5 percentage points. Norway, Denmark, and Finland),
small countries like the Netherlands
While considering the problem of or Luxembourg, as well as ‘mature’
internet development in Central economies such as the United
and Eastern Europe, the issue of Kingdom.
broadband internet penetration
cannot go unnoticed. It is worth In the CEE region there is one
remembering that the share of small, yet very interesting and
modern, high-speed internet stigmatic market. Croatia, which is in
connections on the market is not question, appears to have a virtually
only a precise illustration of its brand new internet infrastructure.
status, but also a key foundation The ‘online boom’ on that market
for its future development. began suddenly and caused a
massive flood of completely new
Apart from Estonia, where technologies. Croatia did not have
broadband internet penetration time to develop the infrastructure
per household amounted to 62% of the internet gradually; it began
in 2009, the share of high speed with the introduction of the newest
internet connections on other possible solutions available.

Broadband penetration - 2009


Broadband penetration [%]

Chart 4 Broadband internet penetration per households in the CEE region and Western Europe;
sources of data: Eurostat, broadband.ua, Gemius calculations based on ITU, Ipsos, Turkey census, Russian census, National Statistical
Committee of the Republic of Belarus and ANCOM (National Authority for Administration and Ruling in Communications of Romania)

Do you CEE? Online Landscape


17
This is rather an extreme example;
however, it shows clearly one of
the most important characteristics
of the whole region. Despite the fact
that the penetration of broadband
internet remains lower than in
Western Europe, it is crucial to
remember that the whole online
industry in CEE began to develop
later than in western economies.
Due to this fact, the natural process
of improving and exchanging old
internet technologies, practically
speaking, does not apply to most
countries in this part of Europe.
This is one of the features which
make this region a place with
extraordinary potential. The CEE
online market is something akin
to a half-written book. In the near
future it will be filled only with
the newest content.
18

MARKET POTENTIAL
When a new medium creates a space often making significant shifts within
for lucrative business activities, general budgets for all types of media.
it immediately becomes a huge Although the global economic crisis
industry. This stage of development has led to a slowdown in the dynamics
has already taken place for the of online adspending on some CEE
internet in Central and Eastern Europe. markets, the general trend has been
For years the ultimate indicator of its maintained. It is important to note at
development has been - and still is this point that the interpretation of
- money. And whenever money met data for online adspends must precede
the internet, online advertising always awareness that the methodology used
triumphed. to measure it differs from country to
country and depends on the research
Currently, there is no need to convince company. However, the overall picture
anybody in the CEE region that online of online adspends in this region
advertising is the future and the basis appears to be quite clear.
for commercial operations within
digital media. Year on year, advertisers In 2009 on all CEE markets included
spend more money on the internet, in this summary over 1.3 billion Euro

Online adspends

Chart 5 Online adspends in the CEE region (2008-2009);


source of data: TNS Gallup; BG Piero & Argent; SPIR (Admonitor); TNS Emor; IAB Europe; PricewaterhouseCoopers; TNSMI; lra.lv; Ukra-
inian Advertisement Coalition; AKAR; marketing.by; Gemius; (Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia,
Slovenia, Turkey: gross values; Belarus, Estonia, Latvia, Lithuania, Russia, Ukraine: net values)

Do you CEE? Online Landscape


19
was spent for various kinds of online Due to the global economic collapse,
advertising. This equates to a 11% 2009 was also a year of significant
increase of online adspends compared declines in online advertising spends.
to the previous year. The largest The greatest falls were observed
amount of online ad-money is found in Lithuania (-33%), Latvia (-32%)
on the largest markets, like Russia, and Estonia (-22%). Thankfully,
where in 2009 advertisers spent the prognosis for 2010 is very
almost 494 million Euros. During promising. For example, a 15%
the same period in Poland the volume increase in Romania and a 16%
of online advertising expenditures increase in Lithuania are expected
equaled slightly more than 296 million within the next year.
Euro, while in the Czech Republic
almost 250 million Euro was spent. As it is the case with describing online
This market recorded the second market size, one should remember
largest increase in online advertising that in estimating business potential,
expenditures, 32% to be exact. absolute values represent only a half
The most rapid increase of online of the truth. When the total volume
adspends in the period between 2008 of online adspends is compared with
and 2009 was observed in Ukraine. the number of internet users living in
In 2009 almost 15 million Euro each country, the juxtaposition of CEE
was spent on this market, which is markets leaders changes profoundly.
an increase of 45%.
20
Online adspends per internet user

Chart 6 Online adspends per internet user in the CEE region (2009);
source of data: TNS Gallup; BG Piero & Argent; SPIR (Admonitor); TNS Emor; IAB Europe; PricewaterhouseCoopers; lra.lv; Ukrainian
Advertisement Coalition; AKAR; marketing.by; Gemius; (Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia, Slovenia,
Turkey: gross values; Belarus, Estonia, Latvia, Lithuania, Russia, Ukraine: net values)

Although the largest amount of spent barely one Euro per average
money on online advertising is spent Belarusian internet user last year.
in Russia, the industry fights for the Great hopes are pinned on the recent
average internet user most fiercely campaign aiming to activate the
in the Czech Republic, where 48 Euro Belarusian internet industry. One thing
was spent on this purpose in 2009. is certain: this market is definitely
In the same period, advertisers in worth fighting for.
Poland and Hungary spent 20 Euro
to attract and acquire one customer
on the internet. Russia comes fifth
among all CEE markets with a result
of 12 Euro per average internet user.
A similar amount of money for online
advertising is spent in Slovakia (11
Euro).

Finally, the weakest market in


the CEE region is Belarus. In 2009
only 4.3 million Euro was spent on
online advertising in this country.
The rapid increase in the number
of internet users has caused the
amount of money available to shrink
in a relatively constant manner.
It is noteworthy that advertisers

Do you CEE? Online Landscape


22

A STEP FORWARD
It is easy to demonstrate that
the online market in Central and
Eastern Europe is a very interesting
and promising area of business.
It is also one of the fastest-growing
markets. The internet industry in this
part of the world is already relatively
strong and year on year is becoming
larger, more developed and more
affluent.

Moreover, the most important


feature of the CEE online market is
that it is extremely diverse, colorful
and unique. This market not only has
much more room for new media and is
a fertile ground for new investments,
but is also a perfect field to conduct
complex and valuable research
studies.

To summarize, the objectives can


differ, but one simple need is common:
it is worth knowing as much as
possible about the CEE online market
because in the near future it will
most certainly play one of the most
significant roles in the global network
which we know as the internet. Thus,
it is hard to understate the value of the
present report. It includes a detailed
description of the online industry in all
CEE countries. In this document one
can find the detailed characteristics of
the major internet players, the online
audiences, the most significant online
industry organizations operating in
the region and much, much more.
We hope that this year’s Do You CEE?
report will be absorbing, practical and
useful.

Do you CEE? Online Landscape


Belarus
3.09m
internet users

1. MAINPLAYERS_25
1.1. Top10websitesbyreach_25
1.2. Top10websitesbyaveragetimespentperuser_26
1.3. Topportals_28
1.4. Social networks_29
1.5. Onlineclassifiedadsbyreach_30
1.6. Topfinancesitesbyreach_30
2. ONLINEAUDIENCE_32
3. TOOLS_34
3.1. Browsers_34
3.2. Operatingsystems_34
3.3. Search engines_35
3.4. Screen resolutions_35
3.5. Mobiledevices_35
4. ADVERTISINGNETWORKS_36
5. OPINIONSFROMTHEMARKET_37
25

1. MAIN PLAYERS

1.1. TOP 10 WEBSITES BY REACH

WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH
USERS VIEWS USER USER

1 mail.ru horizontal portal 1 155 292 203 421 963 176 04:23:36 37%

2 onliner.by new technologies portal 351 367 30 300 784 86 01:41:32 11%

3 kp.by news portal 242 600 2 310 352 10 00:20:27 8%

4 irr.by classified ads 226 648 15 174 480 67 00:51:12 7%

5 readme.ru news aggregator 201 415 1 626 006 8 00:20:31 7%

6 naviny.by news portal 160 206 1 052 255 7 00:09:23 5%

7 rbc.ru news portal 146 605 2 384 651 16 00:48:33 5%

8 loveplanet.ru dating service 111 857 17 789 718 159 02:21:29 4%

9 utro.ru news portal 110 218 512 713 5 00:06:51 4%

10 relax.by entertainment directory 103 822 1 620 685 16 00:16:20 3%

Table 1 Top 10 websites in Belarus by reach level (gemiusAudience, March 2010)

Two of the most significant features According to the gemiusAudience


illustrating the Belarusian online study results, in March 2010 the
market can be easily revealed by greatest number of Belarusian internet
analyzing the above ranking of top users visited mail.ru, one of the
online market players. The first is that, leading Russian horizontal portals,
according to the gemiusAudience which takes second place on its own
study, 50% of the top 10 most domestic market. However, the other
popular places on the web visited places on the ranking are occupied by
by local internet users are Russian local players. The second website in
websites. The second characteristic is Belarus is onliner.by, which is a vertical
that only two websites covered portal and extended discussion forum
in the above ranking are something focused on new technologies and
other than portal or news services. lifestyle. In March 2010 it gained
The strong market position of a reach level among Belarusian
horizontal platforms is a common internet users of 11%. In turn, the
phenomenon observed in many CEE third place was taken by kp.by, the
countries; however the great popularity most popular classical news service.
of news services may be especially
symptomatic for the Belarusian The website irr.by heads the group of
online area, where free and objective most popular online sites in Belarus
information seems to be of great value outside the top three in March 2010.
and is sought after by many internet This internet database of classified
users. ads took fourth place among the most

Do you CEE? Belarus


26
popular websites, attracting over 9th place in the ranking of websites by
220,000 real users and gaining reach are respectively: a Russian news
a reach of 7%. Despite the fact that aggregator, readme.ru (7% reach), and
this website is dedicated to a local two Russian news portals: rbc.ru
audience and has a .by domain, (5% reach) and utro.ru (4% reach).
it cannot be considered as a purely However, when it comes to fun and
local project. Irr.by is owned by entertainment, Belarusians seem
BELPRONTO, which is the Belarusian to trust their own local solutions.
branch of the famous Russian media Although 4% use the Russian dating
holding, Pronto-Moscow. service loveplanet.ru, the ranking
of top 10 websites on the market is
One of the most interesting top propped up by the local website
websites in Belarus is naviny.by, relax.by. This website is an extended
a news portal run by BelaPAN, online directory of places to go
a private local information agency out in Minsk (related to cultural
providing political, economic, and entertainment activities). Its
commercial and financial news. This database includes information on
site, established by Ales Lipai, was in cafes, restaurants, clubs, cinemas,
2006 the first Belarusian website to bowling centers, hotels, casinos and
win the Runet prize, a distinction given much more. This website seems to
by the Russian Federal Agency for maintain a visible interest of the
Press and Mass Communications. online audience. According to the
gemiusAudience study, in March 2010
Finally, what kind of internet activities it gained a reach of 3%. At the same
are popular among Belarusian internet time, its users spent an average of
users? They most certainly read news more than 16 minutes on the site.
on Russian websites. The 5th, 7th and

1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER

NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH


REAL USERS USER PER USER

1 mail.ru 1 155 292 176 04:23:36 37%

2 torrents.by 58 905 143 02:30:01 2%

3 loveplanet.ru 111 857 159 02:21:29 4%

4 semeistvo.by 57 455 85 01:52:45 2%

5 borda.ru 26 090 72 01:46:54 1%

6 onliner.by 351 367 86 01:41:32 11%

7 sng.by 4 739 50 01:33:33 0,2%

8 charter97.org 100 646 48 01:18:27 3%

9 belaruspartisan.org 60 696 40 01:14:47 2%

10 football.by 19 645 41 00:56:45 1%

Table 2 Top 10 websites in Belarus by average time spent per user (gemiusAudience, March 2010)

Do you CEE? Belarus


27
Among the websites participating in certainly lead to a situation where
the gemiusAudience study in Belarus, native products and solutions will take
three of the top ten most popular ones over from foreign players.
are Russian. According to the results
of the above-mentioned research for How about Belarusian websites
March 2010, the average internet user which presently engage local internet
in Belarus spent almost 4.4 hours and users most often? They seem to be
generated over 170 page views using developing at a rapid rate and look
a Russian horizontal portal, mail.ru. and operate more professionally,
The last six months in Belarus were an although most of them use very
extremely successful period for this simple business models. The most
brand, which experienced over 10% ‘engaging’ Belarusian website, which
growth without bearing any significant holds second place in the above
costs. The high quality of this product, ranking, is a torrent tracker. Torrent.by
the similarity of both languages was created almost one year ago
(Russian and Belarusian) and a lack and it is a file exchange database
of local alternatives have made its dedicated to Belarusian internet users
development possible and, to some only. As its administrators explain,
extent, natural. the outbound traffic of this website
is closed not because of legal issues
Mail.ru is not the only Russian website or internal regulations, but because
which Belarusian internet users seem of the cost ($3 per 1GB transmitted
to love. ’Love’ is the apt word here outside Belarus). Indeed, the
because the website in 3rd place is telecommunications market in Belarus
a Russian dating platform, loveplanet.ru. is still dominated by Beltelecom, which
Despite the fact that this website is a government-controlled monopoly.
enjoys only a 4% reach among This example is an excellent illustration
Belarusian internet users, those who of the problems local online
used it in March 2010 remained active developers and publishers in Belarus
for over two hours while looking for must continue to struggle with.
‘love’ or casual acquaintances.
Among all the websites monitored in
In this top ten, there is also one very the gemiusAudience study in Belarus,
interesting player from Russia, such sites as: semeistvo.by (an online
borda.ru. This website is not forum for parents, especially mothers,
particularly popular in Belarus – only run by a private individual), sng.by
1% of the general audience (slightly (a small but strong online community
more than 26,000 real users) visited of gamers) and football.by (a vertical
it in March 2010. However, those portal devoted to football with only
individuals spent an average of almost 1% reach) can be defined as the most
2 hours chatting and exchanging engaging ones. However, the ranking
information with others during this of the top 10 websites by average
period. Considering the fact that the time spent per user also includes
Belarusian market is still undeveloped three other significant and interesting
but is growing extremely fast, the players.
position of this player cannot be
deemed strong or enduring. The Let us begin with Onliner, a Belarusian
revival of local forces, the inflow portal devoted to lifestyle and
of capital and the development of new technologies. It is owned by
infrastructure and local initiatives will a private unitary enterprise „Onliner”.

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28
This website was established in 2001 characteristics (at least in terms of
and was initially an online forum, the local market). They operate as an
then, after the implementation of opposition, partisan in some manner,
ICT-News, a directory and many to other sources of information on
other subservices, became more of the Belarusian internet. It is no secret
a regular horizontal platform. From that independent media in Belarus is
its beginnings, onliner.by has not lost still a thorny issue, therefore (despite
its lifestyle character, but has grown the high quality of information and
and gained significant popularity. engagement of users) advertisers
According to the gemiusAudience are afraid to use these websites as
study, it is currently the second largest placements for their online campaigns.
website in Belarus with a reach among It is a pity, considering that the results
internet users of 11%. of the gemiusAudience study indicate
that in March 2010 the average
The 8th and 9th places in the above internet user spent more than an
ranking belong to particularly hour on each of these two websites.
interesting players, charter97.org This would be a particularly long
and belaruspartisan.org. These two exposure time for any potential piece
news websites have very specific of advertising.

1.3. TOP PORTALS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 mail.ru 1 155 792 176 04:23:36 37%

2 onliner.by 351 367 86 01:41:32 11%

3 naviny.by 160 206 7 00:09:23 5%

4 myminsk.com 77 447 3 00:03:00 3%

Table 3 Top 4 portals and news services in Belarus by reach level (gemiusAudience, March 2010)

Among all the portals participating in Russia’s greatest player, Yandex.ru.


the gemiusAudience study in Belarus, What is most interesting is that the
the unquestionable leader is mail.ru, high interest in Yandex’s search
which in March 2010 gained a reach services in Belarus has caused the
of 37%. However, the largest Moscow-based service to prepare
horizontal platform on the market full entry into this market. Yandex
is tut.by, which, according to some announced last year its intention to
estimates, is said to attract around open an office in Minsk and run
2 million users (understood as unique a dedicated search engine in the .by
visitors) each month. Tut.by is a typical domain. According to the results of
information portal. gemiusTraffic, Yandex enjoys more
than half of all visits which are begun
Russia plays a significant role on the (with gemiusTraffic-participating
Belarusian online market, in particular websites) using any search engine.

Do you CEE? Belarus


29
However, this excellent result is covers mainly local news, classified
decreasing year on year in favor of advertising as well as cultural and
Google. Therefore, Yandex must hurry. entertainment information. In March
2010 it attracted almost 80,000 real
Apart from onliner.by and naviny.by, users with a reach of 3%.
the sector of internet portals in
Belarus also includes sites such as
open.by (the oldest Belarusian portal
run by the Open Group, the owner of
the largest Belarusian e-commerce
platform, shop.by) and interfax.by
(a news portal of the well-known
information agency). Another Russian
portal, rambler.ru, also has a relatively
strong market position. The ranking
of top portals measured in the
gemiusAudience study is propped
up by myminsk.com, a small website
for Minsk citizens. This city portal

1.4. SOCIAL NETWORKS


The social networking sector in horizontal portal (my.mail.ru), attracts
Belarus does not differ from other more Belarusian internet users than
parts of online market in this country the most popular social networking
in terms of the major players. Like the platform in the world, Facebook,
whole online area, foreign services which is the top global player on this
also visibly dominate here. The leaders developing online market. Despite the
are, of course, Russian. Based on the worldwide popularity of services such
reliable estimates, the most popular as Facebook, YouTube and Twitter, at
social networking website in Belarus present they do not have any chance
is vkontakte.ru and second place to compete with the Russian brands.
is held by another Russian service, However, they successfully compete
odnoklassniki.ru. In turn, the third with Belarusian community websites,
major player on the Belarusian social such as i.tut.by (the online community
networking market is livejournal.com, run by tut.by portal) and vceti.by.
the blogging platform owned by At this point in time, only one
LiveJournal, Inc., but licensed and Russian online community service,
operating in Russia by SUP, a media habrahabr.ru is less popular than
company founded in Moscow in 2006 these two sites.
by Andrew Paulson and Alexander
Mamut. Its ownership is split between
Mamut, the Kommersant Publishing
House and the management.
Apart from these three social
networking websites, another service
from Russia is also found on the
Belarusian market. The community-
based subservice of the mail.ru

Do you CEE? Belarus


30

1.5. ONLINE CLASSIFIED ADS BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 irr.by 226 648 67 00:51:12 7%

2 slanet.by 71 350 9 00:06:43 2%

3 migom.by 65 902 13 00:11:29 2%

Table 4 Top 3 online classified ads in Belarus by reach level (gemiusAudience, March 2010)

Classified advertising seems to be onliner.by, which on its site runs


a perfect activity for local players a section devoted to this kind of
in Belarus. Among the three most advertising, catalog.onliner.by. The
popular websites of this kind there are Belarusian online market is also
no Russian or global sites. According filled with well performing thematic
to the gemiusAudience study results classified advertising services. The
for March 2010, the leading classified best example of this is kosht.com,
advertising service is irr.by, which is which aggregates computer hardware
also generally one of the most popular announcements. According to
websites in Belarus (it takes fourth gemiusAudience, it attracted almost
place in the ranking of top 10 websites 68,000 real users in March 2010
by reach). Second and third place, gaining slightly more than 2% reach.
taken by slanet.by and migrom.by,
gained over 71,000 and almost 66,000
users, respectively during the same
period, which gave them identical
reach levels of 2%.

It is worth noting that a significant part


of the internet classified advertising
market belongs to the second most
popular horizontal portal in Belarus,

1.6. TOP FINANCE SITES BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 afn.by 60 634 21 00:35:14 2%

2 ej.by 30 651 9 00:13:05 1%

3 belmarket.by 12 926 6 00:07:06 0,4%

Table 5 Top 3 finance sites in Belarus by reach level (gemiusAudience, March 2010)

Do you CEE? Belarus


31
The area of finance seems to be belmarket.by attracted just under
an unfilled niche on the Belarusian 13,000 real users, which gave it less
internet. Apart from the journalistic than 0.5% market reach.
activity of rbc.ru, which holds
a strong position on the market, Another interesting website in
the popularity of websites devoted Belarus is rbcard.com; it is devoted
to these topics is still very low. to banking and dedicated primarily
The greatest one measured in the to individuals owning various kinds
gemiusAudience study, afn.by, gained of payment and credit cards. RBCARD
a reach of barely 2% in March 2010, was established in 2002, but during
however, at the same time its users the last eight years did not manage
were active for an average of over to gain any significant popularity.
35 minutes. AFN (АФН) has been According to the results of the
operating on the information market gemiusAudience study, in March 2010
since 1995 providing financial news it attracted slightly more than 7,000
regarding the Belarusian, Russian and real users and kept them active for an
Ukrainian economy. average of 4 minutes. However, there
are also much more successful and
The second most popular financial better performing financial services
website participating in the on the Belarusian online market,
gemiusAudience study in Belarus namely infobank.by and select.by,
is ej.by, which in March 2010 both operating since 2007.
gained only a reach of 1%. Ej.by
(Ежедневник) basically operates as
an internet-based economic magazine
(available in PDF) and extended
economic news service. Its creators
claim that it is the first e-press project
in Belarus and is a response to the
huge gap in the market.

Among the finance websites


participating in the gemiusAudience
study in Belarus there is yet
another player worth mentioning:
belmarket.by, an online version of the
economic newspaper „Belarusians
and the Market” (“Белорусы и
рынок”), formerly “Belarusian
Market” (“Белорусский рынок”),
established in 1990. This weekly
magazine is considered the first
independent newspaper in Belarus,
which started to deal with complex
economic analyses, problems in the
country, new businesses. It promotes
democratic institutions within society.
According to the gemiusAudience
study results, in March 2010

Do you CEE? Belarus


32

2. ONLINE AUDIENCE

As on most other CEE markets, the academic environment, from


the gender structure of the online students with incomplete higher
population of Belarus is also education to individuals with science
very balanced. According to the degrees (together making up 46%
gemiusAudience study for March 2010 of the total). The least represented
almost 51% of internet users are men group of internet users in Belarus
and just over 49% of the whole online are individuals with an MBA degree,
population are women. Internet use making up only 0.34% of the whole
in Belarus remains equally distributed online population.
among both genders and no significant
fluctuations within this area are being The largest group of Belarusian
observed. internet users (exactly 38.3%) live in
the Minsky region. The high density
Internet users in Belarus of users in this region is due to the
are very young. According to the fact that in Belarus the majority of
gemiusAudience study for March people who are active on the internet
2010, almost 40% are aged between live in the capital city (as with other
15 and 24 years. Moreover, almost young and underdeveloped markets).
68% of the whole online population According to the gemiusAudience
consists of individuals younger than study for March 2010, almost 33%
34 years old. On the other hand, of the whole online population of
users aged 55 years or over represent this country consists of individuals
only 1.6% of the all internet users. who live in Minsk. Individuals from
This visible disproportion is caused other regions of Belarus represent
mainly by the immaturity of the a proportionally smaller share within
Belarusian online market, which is not the internet user population, that is
yet experiencing the phenomenon of from 16% in the case of Gomelsky
aging (along with its users). It is highly region to a mere 9% in the case of
probable that in the near future the Mogilevsky region.
share of individuals older than 45 and
55 years will rise year on year. Three biggest groups of
Belarusian online population are
The educational structure of students, specialist/chief specialists
Belarusian internet users does and engineers/technical workers. They
not differ a great deal from those constitute nearly 50% of internet users
characteristic of other CEE markets. in this country. The other half consists
Within the whole online population of other occupations with almost
of this country there are three major equal shares.
groups of users: individuals with a
high education (32%), vocational
education (26%) and those who have
graduated from a secondary school
(22%). However, when broader
categories are taken into account, it
becomes very clear that the dominant
group of internet users in Belarus
consists of people connected with

Do you CEE? Belarus


34

3. TOOLS

3.1. BROWSERS

Chart 1 Top browsers in Belarus by share of page views generated by internet users who visit the
Belarussian websites using gemiusTraffic (gemiusTraffic study 1Q 2009 – 1Q 2010)

3.1. Browsers the market at the end of first quarter


of 2009, when it beat off its rival -
The web browser most intensively Mozilla Firefox. The third force on the
used in Belarus is Opera. According market is Microsoft Internet Explorer.
to gemiusTraffic, in the first quarter In the first quarter of 2010 its users
of 2010 almost 49% of all page views were responsible for 19.4% of all page
generated by Belarusian users on views recorded in the gemiusTraffic
websites monitored in the study have study.
been made using this browser. In this
regard the Belarusian online market 3.2. Operating systems
is similar to Ukraine, where Opera is
also the dominant software used for Internet users in Belarus are not an
web browsing. In Belarus, Opera won exception when it comes to the usage

3.2. OPERATING SYSTEMS

Chart 2 Top operating systems in Belarus by share of page views generated by internet users who
visit the Belarussian websites using gemiusTraffic (gemiusTraffic study 1Q 2009 – 1Q 2010)

Do you CEE? Belarus


35
of operating systems. Windows XP
head the list and the whole market 3.3. SEARCH ENGINES
is dominated by Microsoft products
(non-MS Windows operating systems
hold less than a 3% share). According
to the gemiusTraffic study, in the first
quarter of 2010, Windows XP was
responsible for almost 83% of all page
views monitored in the study, while
the second most intensively used
operating system, Windows 7, was
responsible for slightly more than 10%
of all page views. Interestingly, the
latter is experiencing dynamic growth Chart 3 Top search engines in Belarus by share of visits made by internet users who visit the Belarus-
on the Belarusian market. At the sian websites using gemiusTraffic (gemiusTraffic study 1Q 2009 – 1Q 2010)

beginning of 2009 it was completely


absent in Belarus, in the second
3.4. SCREEN RESOLUTIONS
quarter of 2009 it gained 0.67% of all
page views and by the first quarter of
2010 its market share had increased
more than 15 times.

3.3. Search engines

The search engine most frequently


used in Belarus is Russian-based
Yandex. According to gemiusTraffic, in
first quarter of 2010 more than 56%
of all visits on websites monitored
Chart 4 Screen resolutions in Belarus by share of page views generated by internet users who visit
by Gemius in this study have their the Belarussian websites using gemiusTraffic (gemiusTraffic study 1Q 2009 – 1Q 2010)
origins in Yandex search results.
The second search engine most
frequently used by Belarusians is
3.5. MOBILE DEVICES
Google, which accounts for more
than 41% of all visits on websites
monitored by gemiusTraffic. Other
engines, including Microsoft MSN,
have a negligible market share and
are single-handedly unable to break
the 1% barrier.

3.4. Screen resolutions

The most popular screen resolution


in Belarus is 1280x1024, the visitors
of which generated nearly 28% of all
page views on websites monitored Chart 5 Top 5 mobile devices in Belarus by the website-averaged percentage share of page views
in the gemiusTraffic study in the generated by internet users form Belarus who visit the Belarusian websites using gemiusTraffic
(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10
first quarter of 2010. What is most **to 2010-07-25

Do you CEE? Belarus


36
important is the fact that at the the average Belarusian website using
beginning of 2010 there was no gemiusTraffic. The other devices in
screen resolution which could be the top 5 ranking were SonyEricsson
identified as strongly dominant on the products and each gained around a
Belarusian market (the shares of the 3% share.
most popular ones are distributed in a
very balanced manner).

3.5. Mobile devices - models

Unlike the majority of CEE countries


where the iPhone dominates the
mobile devices market, according
to the gemiusTraffic study, the most
popular mobile tool used to access
the web in Belarus is Nokia 6300. In
July 2010 it was responsible for 8%
of page views generated by mobile
devices on the average website.
Apple’s iPod had a 5% share which
gave it second place in the ranking.
However, the popularity of both
market leaders is gradually decreasing
and over two months both products
lost approximately 1 percentage
point. The third most popular mobile
device was Nokia 5800. Its users
generated 4% of the mobile traffic on

4. ADVERTISING NETWORKS

GENERAL CONTACT INFORMATION


FULL NAME HOMEPAGE URL REACH MAIN OFFICE CONTACT
ADDRESS ADDRESS

Phone: +375-17-222-3204
416-14,
1 Mediacode mediacode.by 24% Fax: +375-17-222-3204
Pervomaiskaya Street, Minsk
Email: manager@mediacode.by

Phone: +375-17-217-02-42
109 - 24/2
2 Red red.by N/A Fax: +375-17-217-02-42
Pervomaiskaya Street
Email: admin@red.by

Phone: +375-17-296-62-62
214-5.
3 Webody webody.by N/A Fax: +375-17-296-62-62
Oktaybrskaya Street, Minsk
Email: welcome@activemedia.by

Do you CEE? Belarus


37

5. OPINIONS FROM THE MARKET

Aleksander Stelmakh
Director, Onliner.by

Online advertising market

What are the opportunities and obstacles for the Belarusian online
advertising market?

The online market is still extremely small; worth only about $3 million in
2009. Moreover, rapid growth is not expected in 2010. This is partly due to
the tardiness of the whole advertising market (including TV, radio „Outdoor”
advertising amongst others) compared to, for example, the Ukrainian
market, even if the discrepancy in population sizes is taken into account.
Advertising is a sign of activity in the economy. In Belarus most companies
depend on the government in some form or another, which (with a few
exceptions) promotes products and services using „kuplyay Belarusian”
methods (national products don’t need advertisement). However, the
advertising market is still at a low level and no changes in the short term are
expected.

In addition, we should not have any illusions about the purchasing power
of the population even in the capital, Minsk. The average household here
operates with a budget of approximately $673 (2 million BYR) per month.
The main problem of the local market is a fixation on media advertising.
Banners, which are sold daily, are at the level of the past decade and
publishers forget that there are more efficient ways to direct monetization
than banners.
The market faces many difficulties and not all of them are related directly to
the online sphere.

Global vs. local players

Are the local players present on your local market strong enough to compete
with the global giants? What advantages and strategies do they use in this
battle?

The local players do not have much chance to compete unless they provide
the services that are truly demanded. One well-known site in Belarus
formerly positioned as a search portal with a mail service and various
subsites, also became popular as a content aggregator, gathering news
from other services. The portal then tried to create their own content, but

Do you CEE? Belarus


38
its quality was low, even when compared to Belarusian counterparts. The
service has lost users in favour of Russian sites like vkontakte.ru and mail.ru.
This could lead to greater losses in user numbers unless the portal changes
its development strategy.

Yury Zisser
Founder and co-owner, Tut.by

Online advertising market

What are the opportunities and obstacles for the Belarusian online
advertising market?

Share of internet advertising in total advertising is growing each year. In the


crisis period this share rose from 4.5% in 2008 to a surprising 7% in 2009
(the entire media market fell by 21.4% while the internet grew by 16%).
Another serious obstacle to dynamic growth is the modest size of the private
sector, the lack of small- and medium-sized businesses.

Dominating trends

What are the recent trends on your local online market? What areas are
expected to develop most in the future?

In 2009 a new trend appeared on the market: the transfer of ads sales
to specialized structures, sales houses which form a professional market
using clear rules. Position of sales houses will strengthen in the future.
Market will grow, technology will improve. Role of mobile, contextual and
video advertising and advertising with possibility of targeting using socio-
demographic profiles will grow.

Global vs. local players

Are the local players present on your local market strong enough to compete
with the global giants? What advantages and strategies do they use in this
battle?

Successful local players use brand strategy to create powerful local brands.
The lion’s share of advertising sales is held by Belarusian players. All the
efforts of foreign players, mostly Russian, have not as yet been
successful. Global brand expansion in Belarus has not happened and will not
come soon due to the small capacity of the Belarusian market.

Do you CEE? Belarus


39
Market specifics

What makes your local online market unique? Are there any specifics that
make it different from others in the CEE region?

Due to the above mentioned weakness of small- and medium-sized business,


search advertising is not well developed in Belarus. Its share in Belarusian
internet advertising does not exceed 20% and over the last years there has
been slow increase. There is a concentration of advertising budgets around
the main players: the Belarusian portal tut.by which accounts for one third
of all the budgets of banner advertising or about half the budgets of all
media advertising on the Belarusian internet.

Do you CEE? Belarus


Bulgaria
3.28m
internet users

1. MAINPLAYERS_41
1.1. Top10websitesbyreach_41
1.2. Top10websitesbyaveragetimespentperuser_42
1.3. Topportals_44
1.4. Social networks_45
1.5. Onlineclassifiedadsbyreach_46
1.6. Topfinancesitesbyreach_47
2. ONLINEAUDIENCE_48
3. TOOLS_50
3.1. Browsers_50
3.2. Operatingsystems_51
3.3. Search engines_51
3.4. Screen resolutions_51
3.5. Mobiledevices_51
4. BRANCHORGANIZATIONS_52
5. ADVERTISINGNETWORKS_53
6. OPINIONSFROMTHEMARKET_54
41

1. MAIN PLAYERS

1.1. TOP 10 WEBSITES BY REACH

WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH
USERS VIEWS USER USER

1 abv.bg mail service 1 954 947 335 065 970 171 02:34:07 60%

2 dir.bg horizontal portal 1 340 402 89 431 095 67 01:18:54 41%

3 gbg.bg horizontal portal 945 424 15 177 123 16 00:25:48 29%

4 start.bg horizontal portal 893 066 7 247 182 8 00:09:41 27%

5 btv.bg horizontal portal 777 131 20 184 745 26 00:21:54 24%

6 svejo.net social bookmarking 761 397 5 547 144 7 00:09:45 23%

7 vesti.bg news portal 745 950 14 796 523 20 00:29:02 23%

8 bg-mamma.com lifestyle portal 674 676 26 259 938 39 01:00:44 21%

9 mobile.bg auto classified ads 669 052 149 438 163 223 01:57:50 20%

10 sportal.bg sports portal 659 510 47 819 851 73 01:49:03 20%

Table 1 Top 10 websites in Bulgaria by reach level (gemiusAudience, March 2010)

The most popular website in Bulgaria package of searching options including


measured by gemiusAudience is a huge bank of images as well as video
abv.bg, a free web mail service. It not content. Gbg.bg gathers over 47,000
only reaches 60% of the audience, selected sites and their number is
but also outnumbers other players constantly increasing. The next player,
in terms of user engagement, with start.bg, had a reach level of 27%.
a result of over 2.5 hours spent by
average user monthly. The service is Among the market leaders there are
owned by NetInfo, the digital media also two news services: btv.bg and
company, which in turn belongs to vesti.bg that gained reach levels of
Sanoma Media International. Apart 24% and 23% respectively in March
from the mail service it also provides 2010. The first is the site of the most
its users with a search option, news, popular private TV station in Bulgaria,
weather forecasts and entertainment. and at the beginning of 2010 it was
bought by CME, the international
With a 41% reach, dir.bg, the largest media company. The second, vesti.bg
and trusted Bulgarian portal, takes is third among the four players present
second place. The top 3 is propped up in the ranking owned by NetInfo. The
by the web directory gbg.bg, which last site is svejo.net, which ranked
reaches 29% of the Bulgarian online 6th in March 2010. It is a social
audience. The site, created in 1997, bookmarking portal reaching 23% of
belongs to the same owner as abv.bg. the audience.
The website offers its users a complete

Do you CEE? Bulgaria


42
The second significant group within sports events as well as the Sportal
the Bulgarian online market includes TV service with a large amount of
specific portals such as bg-mamma. HD videos. In March 2009 its reach
com and sportal.bg. The first is mainly level amounted to 11% but in March
dedicated to women and contains 2010 this grew to 20%. Its rising
a great deal of useful information popularity makes it a preferable site
related to children, health, beauty for advertisers.
and lifestyle. The strongest part of the
site is its forum, where women can Another popular site on the
exchange views and ask other users Bulgarian online market in March
for their opinion. In March 2010, the 2010 was mobile.bg, a classified ads
website had almost 660,000 real users service specializing in automotive
and the number is growing. advertisements. It had almost 670,000
real users, who constituted a reach
The second website, sportal.bg, is level of 20%. In terms of average
a portal containing sports news, time spent per user, mobile.bg, came
especially popular among the male second among the top 10 websites by
online audience. The site offers reach level with almost 2 hours
detailed information about different a month spent per user.

1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER

NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH


REAL USERS USER PER USER

1 ladypopular.bg 132 271 602 07:13:40 4%

2 aha.bg 374 559 1,005 07:03:59 11%

3 impulse.bg 598 852 483 07:03:56 18%

4 prodavalnik.com 47 095 239 04:40:30 1%

5 forum.levski.com 5 289 259 04:10:04 0.2%

6 focus-news.net 224 209 81 03:29:48 7%

7 conquiztador.bg 68 653 472 03:17:56 2%

8 abv.bg 1 954 947 171 02:34:07 60%

9 mobile.bg 669 052 223 01:57:50 20%

10 novsport.com 111 604 47 01:52:04 3%

Table 2 Top 10 websites in Bulgaria by average time spent per user (gemiusAudience, March 2010)

Three major groups can be average user spent more than 7 hours
distinguished in the ranking of top in March 2010.
10 websites by average time spent
per user. The first one includes Like in other CEE online markets,
ladypopular.bg, aha.bg and impulse. people in Bulgaria tend to spend most
bg. These are sites on which the of their online time making friends

Do you CEE? Bulgaria


43
and having fun. Ladypopular.bg is The last player in this group is
an online game for girls who dream of conquiztador.bg, with a result of
becoming popular. Users create 3 hours 18 minutes spent on average
a ‘lady’, follow her career, take care on this website by users. It is an online
of her pet and organize virtual garden game, where users have to answer
parties. The game has a pleasant questions to conquer new territories
design and is available after free on a virtual map.
registration. Moreover, the site is
available in 25 languages. The other The last group of sites includes ones
two sites with an average time per with an average time spent online per
user of over 7 hours, aha.bg and user of around 2 hours. One of them is
impulse.bg, are social networking sites mobile.bg, the previously-mentioned
with reach levels of 11% and 18%. automotive classified ads website,
which is very popular in Bulgaria.
The second group consists of sites
with average online time per user of Abv.bg, the market leader in terms
3-5 hours a month. Prodavalnik.com is of reach, does not dominate as far
an online auction mainly for women, as the average time spent per user is
with a great deal of information about concerned and ranks 8th with a result
babies, gardening, home and family. of just over 2.5 hours. This is mainly
Moreover, there are direct links to due to the fact that abv.bg is primarily
other websites with the same theme: a mail service.
clothes, baby toys, etc. In March 2010
this site had on average 239 page The last website is a sport site:
views generated by each of the more novsport.com. It presents news
than 47,000 real users. concerning sports events, teams and
players. Moreover, it keeps statistics of
The next website in this group is forum match results, covers live games and
levski.com. Although in March 2010 its contains many helpful links for sports
reach level amounted to only 0.2%, fans.
it ranked fifth in the ranking presented
above, with 4 hours and 10 minutes
spent by the average user. It is a
forum for FC Levski supporters, where
they can exchange views, meet other
fans and be up-to-date with news
concerning their favorite football
team.

A news service can also be found


in this group: focus-news.net. It is
a part of the first Bulgarian private
information agency FOCUS. One of the
greatest advantages of focus-news.net
is the fact that it offers news, analysis
and comments not only in Bulgarian
but also in English 24 hours a day. In
March 2010 its reach level amounted
to 7%.

Do you CEE? Bulgaria


44

1.3. TOP PORTALS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 dir.bg 1 340 402 67 01:18:54 41%

2 gbg.bg 945 424 16 00:25:48 29%

3 start.bg 893 066 8 00:09:41 27%

4 btv.bg 777 131 26 00:21:54 24%

5 vesti.bg 745 950 20 00:29:02 23%

Table 3 Top 5 portals and news services in Bulgaria by reach level (gemiusAudience, March 2010)

The importance of horizontal portals 14 websites including blog.bg,


and news services in Bulgaria can be dnes.bg and snimka.bg. In 2004 it
demonstrated by the fact that the five was listed on the Bulgarian Stock
most popular ones were also included Exchange and is said to have a market
in the top 10 websites by reach. share of almost 10%. Start.bg has
links classified into 22 categories and
In March 2010, the leading position approximately 1,900 topics, which
belonged to dir.bg, which is just like enables its users to search for any
the year before. It is seen as information they may need. In March
a trustworthy portal containing 2010 its reach level amounted to 27%
a variety of information and catering (in March 2009 it was 32%).
for the needs of visitors in terms
of entertainment, discussion Btv.bg is a website run by the
forums, classifieds; it also includes most popular private TV station
communication tools. in Bulgaria. On the 1st June 2000
bTV broadcasted for the first time
According to the gemiusAudience thus breaking the monopoly of the
study, gbg.bg ranked second with national public TV station. Over
a reach level of 29%. This portal was the years it has established its
created in 1997 and since that time position as the most watched TV
has been offering a wide range of channel in Bulgaria. According to the
options enabling its users to search gemiusAudience study, its reach level
for online content. Moreover, it has amounted to 24% in March 2010
a huge bank of images and videos giving it the third place in the top 5
and its directory contains over 47,000 portals ranking. bTV has been present
selected sites. on the market for almost two years.
In February 2010 an agreement for
The 3rd player in this category is its sale was reached. It was bought by
start.bg, a horizontal portal and the Central European Media Enterprises
largest online catalog, owned by (CME), one of the leading radio and
Investor.BG AD, a leading internet television groups in Central and
media company in Bulgaria with Eastern Europe.

Do you CEE? Bulgaria


45
The last place in the ranking is
taken by vesti.bg, formerly known
as Netinfo.bg, which in March 2010
had a reach level of 23%. The site
provides its users with current news
from Bulgaria and the world. Thanks
to a modern and user-friendly design,
visitors can quickly find everything
they are searching for. Moreover, the
site offers a section with the most
popular news for busy users.

1.4. SOCIAL NETWORKS

NUMBER OF PAGE VIEWS AVERAGE TIME REACH


REAL USERS PER USER PER USER

1 impulse.bg 598 852 483 07:03:56 18%

2 dir.bg-CLUBS.dir.bg 493 509 15 00:10:59 15%

3 dir.bg-GLOG.dir.bg 420 138 15 00:10:32 13%

4 teenproblem.net 404 388 17 00:15:45 12%

5 aha.bg 374 559 1,005 07:03:59 11%

Table 4 Top 5 social networking sites in Bulgaria by reach level (gemiusAudience, March 2010)

There is no dominant leader on the Clubs.dir.bg and glog.dir.bg both


local social networking market in belong to dir.bg. The first includes
Bulgaria. Although in March 2010 clubs, in which people with the same
impulse.bg had the greatest reach interests are grouped together. In
level (18%), it was only 3 percentage March 2010, clubs.dir.bg had almost
points higher than clubs.dir.bg, 500,000 real users who spent an
which ranked second. However, as average of 11 minutes online a month.
mentioned before, impulse.bg is Glog.dir.bg enables its users to create
undoubtedly the leader when it comes their own profile and use it to stay in
to number of page views per user. touch with friends or make new ones.
In terms of average time per user Its reach level of 13% gave this social
it took second position, right after networking site 3rd place in the top 5
aha.bg. Impulse.bg is a typical social ranking.
networking site offering its users
the possibility to make new friends The last two most popular Bulgarian
or retain old ones. It also includes social networks, measured in the
a section devoted to classified ads, gemiusAudience study in March
clubs with users grouped together by 2010 were teenproblem.net (12%)
interest with access to almost 60,000 and aha.bg (11%). They both belong
topics as well as a games section. to Investor Group (start.bg, blog.bg,

Do you CEE? Bulgaria


46
etc.). Teenproblem.net is popular with gives its users a chance to meet new
young people. On the website they people, exchange messages, create list
can find answers to their questions of friends and watch music videos.
and problems, including some
embarrassing ones, as well as general
info about anything that can be of any
interest to a teenager. The site is very
user-friendly and is designed to attract
young online audience.

The second site, aha.bg, has a more


diversified user structure with users
aged 19-35 predominating. This
popular social networking website

1.5. ONLINE CLASSIFIED ADS BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 mobile.bg 669 052 223 01:57:50 20%

2 imot.bg 219 376 104 01:12:24 7%

3 karieri.bg 202 899 6 00:06:35 6%

Table 5 Top 3 online classified ads in Bulgaria by reach level (gemiusAudience, March 2010)

Each of the top 3 online classified ads The third place belonged to karieri.bg.
in Bulgaria specializes in a different It had over 200,000 real users
field. Number one in March 2010 interested in job offers. Beside regular
with a reach level of 20% was job advertisements, there are also
mobile.bg. It is the most popular offers of training sessions, educational
Bulgarian site where people can buy courses and the like.
or sell a car. The site also contains
many other automotive
advertisements of different kinds,
from VIP to regular. The price is related
to the ad’s type.

The second player on the Bulgarian


classified ads market is imot.bg, whose
reach level amounted to 7%. Users and
dealers publish ads related to buying
and selling real estate. Like other sites
of this kind, there are various kinds
of advertisements and their prices
depend on what options are used.

Do you CEE? Bulgaria


47

1.6. TOP FINANCE SITES BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 econ.bg 304 865 16 00:03:54 9%

2 odit.info 256 078 20 00:24:55 8%

3 investor.bg 214 850 24 00:39:36 7%

Table 6 Top 3 finance sites in Bulgaria by reach level (gemiusAudience, March 2010)

According to the gemiusAudience and on average 20 page views per


study from March 2010, there visitor. It is a popular website owned
was no definite leader among finance by Economedia, which publishes the
sites in Bulgaria. Although the reach most current information especially
level of econ.bg gave it first place, for accountants. There is a section
the difference between it and the with notices on courses and seminars
reach levels of odit.info (2nd) and as well as a forum.
investor.bg (3rd) was just 1 percentage
point. In terms of average time spent Another important finance site in
online per user, the leader is investor.bg Bulgaria was investor.bg with a reach
with almost 40 minutes a month per level of 7% in March 2010. It is a
user. site with business information from
Bulgaria and the world. Apart from
Econ.bg is a business portal with typical financial sections such as
over 300,000 real users. The site was Exchange or Forex, it also has a section
created through the cooperation of dedicated to lifestyle.
the Center for Economic Development
(CED) and the United States Agency
for International Development (USAID)
and was launched in April 2001. Apart
from presenting business news from
Bulgaria and the world, its users
can also find interviews, analyses,
classified ads and a law section here.
An additional feature is the English
version of the site. Even though it
contains information which is often
2 months old, it is a useful source of
information for English-speaking users,
especially considering the fact that
econ.bg gives its users free access to
an archive of all information uploaded
on the site since its creation in 2001.

The second significant player, odit.info,


had over 250,000 users in March 2010

Do you CEE? Bulgaria


48

2. ONLINE AUDIENCE

The gender structure of the 2010, 27% of the Bulgarian online


Bulgarian internet population is quite population lived in Sofia, the capital
balanced and does not differ much of Bulgaria. Cumulatively, users living
from those observed on other CEE in cities with over 100,000 citizens
markets. In March 2010, women accounted for 60% of the online
constituted 51.5% of the online population. Another significant group
population, while men comprised of users (19%) lived in cities, in which
48.5%. However, what distinguishes there are 20,000 – 99,999 people.
the Bulgarian online population from
other CEE countries is the fact that With regards to occupation
men on average spent one hour more the most numerous group among
than women surfing the web. Bulgarian internet users in March 2010
were specialists and office workers.
Undoubtedly, the Bulgarian online The second force on the internet was
market is dominated by young people. the group made up of unemployed
According to the gemiusAudience internet users. The unskilled
study, in March 2010 people aged workers accounted only for 1% of
15-24 accounted for 29% of the online the researched internet audience,
population. Moreover, they spent however this occupation group was
the greatest amount of time surfing the most active and in March 2010 the
the studied websites, i.e. 19 hours. average user from this group spent
Increasingly more elder people have over 19 hours surfing the web.
become interested in the internet
during the last twelve months. In
March 2009 the share of people over
55 years old was 5%, and in March
2010 it was 9%.

The Bulgarian online population is


quite well-educated. In March 2010 a
mere 1% of internet users had primary
or no education. The majority had
graduated from secondary school and
27% had a degree. With regards to
average time spent online per user, in
March 2010 the groups of users with
basic or lower education consistently
spent approximately 21.5 and 18.5
hours online, whereas users with
higher education spent only 10 hours
and 44 minutes online.

As it is the case in the majority


of CEE countries, the greatest
number of internet users in Bulgaria
live in big cities. According to the
gemiusAudience study from March

Do you CEE? Bulgaria


50

3. TOOLS

3.1. BROWSERS

Chart 1 Top browsers in Bulgaria by share of page views generated by internet users who visit Bulga-
rian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)

3.1. Browsers the top browsers in Bulgaria. The


popularity of Opera and Chrome is
There are two main players on the not of any significant value. However,
Bulgarian browser market. Number it is important to note that Chrome is
one is Firefox with a market share of gaining popularity extremely quickly.
46%. At the end of 2009 it overtook Also, while Opera’s market share grew
Microsoft Internet Explorer, whose during the past year by 0.5 percentage
popularity has been declining for some point, Chrome’s market share rose by
time already. After the first quarter 4 percentage points.
of 2010 its market share was 42%
giving MSIE the second place among

3.2. OPERATING SYSTEMS

Chart 2 Top operating systems in Bulgaria by share of page views generated by internet users who
visit Bulgarian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)

Do you CEE? Bulgaria


51
3.2. Operating systems
3.3. SEARCH ENGINES
Like in the other markets in Central
and Eastern Europe, the most popular
operating system in Bulgaria was
Windows XP with an 82% share in the
first quarter of 2010. However, this was
9 percentage points less than a year
ago. This is mainly due to Windows 7,
Microsoft’s newest operating system
launched in the second quarter of
2009. Since then it has been constantly
gaining popularity, and in the first
quarter of 2010 its market share
accounted for 9% overtaking Windows
Chart 3 Top search engines in Bulgaria by share of visits made by internet users who visit Bulgarian
Vista with its 8% share. The market websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)
share of Linux is relatively stable at the
level of 0.3%.
3.4. SCREEN RESOLUTIONS
3.3. Search engines

Google is the leader of the Bulgarian


online search engine market. In the
first quarter of 2010 its share of the
market accounted for almost 99%.
Second place belonged to MSN, and
third to Yahoo. However, their market
shares declined during 2009 and
according to the gemiusTraffic study
they did not even exceed 1% in the first
quarter of 2010.
Chart 4 Screen resolutions in Bulgaria by share of page views generated by internet users who visit
Bulgarian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)
3.4. Screen resolutions

The market share of 1024 x 768 3.5. MOBILE DEVICES


monitor screen resolutions has
been decreasing over the last years.
However, in the first quarter of 2010
it was still the most popular choice
among Bulgarians. Other popular
screen resolutions among internet
users who visit Bulgarian sites using
gemiusTraffic were 1280 x 1024 and
1280 x 800. Also, the screen resolution
of 1440 x 900 has been gaining
popularity in recent years and after the
first quarter of 2010 its market share
was 6%. There is also a newcomer,
1366 x 768, whose popularity has
Chart 5 Mobile devices in Bulgaria by the website-averaged percentage share of page views genera-
been growing and during one year this ted by internet users from Bulgaria, who visit Bulgarian websites using gemiusTraffic (gemiusTraffic,
resolution gained a market share of 4%. 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10 **to 2010-07-25

Do you CEE? Bulgaria


52
3.5. Mobile devices - models popular. During the same period,
Apple’s latest product, the iPad, has
A wide variety of mobile devices can been consistently gaining popularity,
be found on the Bulgarian market. increasing its share by 3 percentage
The five most popular tools constitute points from May 2010.
less than 50%. However, like in
majority of CEE markets, Bulgaria’s
top mobile device is the iPhone,
which in July 2010 had a share of
over 17%. However, compared to the
previous month, it decreased slightly.
The next three positions were taken
by Nokia devices among which the
Nokia 5530 XpressMusic is the most

4. BRANCH ORGANIZATIONS

Interactive Association Bulgaria association is to protect the interests


of its members with regard to the
www.iabulgaria.bg development of e-commerce and
also to enhance public confidence
Description: The mission of IAB in it. Moreover, BEAT aims to create
is to show the advantages and professional ethical standards to
possibilities of interactive marketing: be followed by its members. BEAT
targeting, on-line measurement, also concentrates on cooperation
high effectiveness, a great variety of with public authorities in creating
formats and different approaches laws and regulations relating to
and to the internet as one of the internet trade and in monitoring their
main channels of communication, implementation.
next to TV, radio, press and outdoor
advertising. Members: BGPRINTER Ltd., JAR
Computers Ltd., Interminds Ltd., SILA
Members: The greatest rivals and BG, Store Ltd., SuperHosting.BG, Bw
leading internet players include: Time Ltd.
Darik News, Dir.bg, Economedia,
Investor.bg, NetInfo.bg, mail.bg and
an associate member, ABC Design and Bulgarian Web Association
Communication.
www.bwa.bg

Bulgarian e-commerce association Description: The Bulgarian Web


Association (BWA) is an internet
www.baet.bg industry association, representing
the interests of web companies and
Description: The main objective professionals in Bulgaria. At present,
of the Bulgarian e-commerce the Bulgarian Web Association

Do you CEE? Bulgaria


53
(BWA) is the only association with web services: User Media Ltd.,
activities directed to the benefit DIDZHITREYS Ltd., ESRI Bulgaria Ltd.,
and protection of legal entities and ET-MarMaN Mario Mankov, Ripped
natural bodies, working on the design, Ltd., Imaynd Ltd.
arrangement, organization, realization
and hosting of internet sites, web
design and internet advertisement.
All activities of the Bulgarian Web
Association (BWA) are in the service
of the interests of the Bulgarian web
market operating in the free economy
environment.

Members: associated web studios:


Studio 3B, Etaligent.Net, You Eye
Design Ltd, Blekbord Studio Ltd.,
By BG Ltd., DOTmedia DZZD, Dream
Studio Ltd., DriymMediya Ltd., Exsisto
Ltd., Leks.BG AD, MediaBasket OOD,
Need BG Ltd., Stenik Group Ltd.,
Studio IDA, associated web media:
Inteldey Solutions Ltd., Programme
Media Group Ltd., associated

5. ADVERTISING NETWORKS

GENERAL CONTACT INFORMATION


FULL NAME HOMEPAGE URL MAIN OFFICE CONTACT
ADDRESS ADDRESS

61 Vitosha Blvd, Phone: +359-2-988-09-75


1 Httpool httpool.bg
1000 Sofia, Bulgaria Email: info@httpool.bg

Nikola Vaptzarov Blvd 29,


Phone: +359-2-962-29-94
2 Easy Trader stat.easytrader.bg et. 2, floor B, ap.13,
Email: ivanchev@easytrader.bg
1407 Sofia, Bulgaria

Solunska 59, et. 4, Phone: +359-2-954-29-70


3 User Media - Student.forums usermedia.net
1000 Sofia, Bulgaria Email: reklama@usermedia.net

Solunska 59, et. 4, Phone: +359-2-954-29-70


4 User Media - Autoforums usermedia.net
1000 Sofia, Bulgaria Email: reklama@usermedia.net
Solunska 59, et. 4, Phone: +359-2-954-29-70
5 User Media - Sportforums usermedia.net
1000 Sofia, Bulgaria Email: reklama@usermedia.net
7, Danail Dechev st.
6 Direct direct.dir.bg Phone: +359-2-969-45-33
1407 Sofia, Bulgaria
70, Tsaribrodska Blvd,
Phone: +359-2-489-50-63
7 E- target etarget.bg office 3,
Email: business@etarget.bg
Sofia 1309, Bulgaria

Do you CEE? Bulgaria


54

6. OPINIONS FROM THE MARKET

Hristo Ivanov
Market Research and Analyses specialist, Netinfo

Online advertising market

What are the opportunities and obstacles for the Bulgarian online advertising
market?

The economic environment has led to a serious decline in advertising expenditure


in all types of media. Only the internet succeeded in keeping the same level as in
2008. The largest advertisers: automotive and finance, brought their investments
in advertising for the past year to a relative standstill.

We believe that this situation will remain unchanged for the next year or two.
Online video and social media advertising together with rich media will lead
the development of the online market in Bulgaria. Advertisers will learn to use
different channels for different goals: e-mail and social media marketing for
customer loyalty, keyword search ads for direct responses and display ads for
building brand awareness.

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in the future?

The financial crisis slowed down the development of the internet market in
Bulgaria during the last year and the market players were forced to focus on their
main and most profitable products. This led to ever increasing competition in
certain internet categories such as news and information (including sports), dating,
entertainment, and the suchlike. Internet penetration in Bulgaria continued to
increase but at a slower growth rate compared to previous years. Furthermore,
the largest publishers have invested time and money in the mobile versions of
their websites following the latest trends on global markets.

Petar Simeonov
Head of Internet Department, Piero97

Online advertising market

What are the opportunities and obstacles for the Bulgarian online advertising
market?

The world economic crisis did not overlook Bulgaria in 2009. The growth of
internet advertising budgets was 60% during the previous three years, but in 2009
this shrunk to a mere 4%. On the backdrop of a total ad market decline of about

Do you CEE? Bulgaria


55
14%, this is a good result, although expectations were for at least 20% growth.
In 2008 the gross internet advertising budgets in Bulgaria were 32.3 million Leva
(16.5 million Euro), and in 2009 they were 33.4 million Leva (17 million Euro). This
data do not contain the budgets spent on Google advertising and other media
situated outside of the country, due to the fact that this data are unobtainable.

There were other positive results on the internet market in general, for instance
significant growth in the number of internet users: at the end of 2009 there were
already 3.413 million in Bulgaria (45% penetration). The internet share in the total
media mix is also on the rise: in 2008 it was 2.7%, in 2009 3.4%, and a rise of 5% is
predicted for 2011.

The steepest decline in the advertising budgets of 2009 was noticed in the
telecommunications sector. Surprisingly, it was overtaken by the financial
and banking sector, which was also hit by the crisis, but tried to regain client
confidence via various marketing and advertising incentives. A similar situation
was observed in the construction and automotive businesses.

News sites and portals drew the largest part of advertising budgets, in third place
were social networking sites, followed by sport sites. Facebook attracted great
interest with 1.2 million subscribers at the end of 2009.

A significant growth in online advertising (approximately 20%) is expected for


2010, as well as substantial growth in video advertising on the internet.

The numbers used in the above text have been collected


by Piero97 Media Agency.

Plamen Kalinikov
Marketing Director, Argent media agency

Online advertising market

What are the opportunities and obstacles for the Bulgarian online advertising
market?

We had anticipated that the global financial crisis would lead to significant
budget allocation on traditional media channels: TV, radio, print as well as
OOH would face a major drop at the expense of digital advertising. Alas, net
online investments for 2009 in Bulgaria retained the same levels as those from
the ‘extremely successful’ year of 2008. The growths of 50 to 100% from the
aforementioned 2008 would later become something to dream about over the
following years. The main players on the market decided not to take risks and
kept their investments allocated to the media channel that responded in the most
appropriate way to the economic realities and the fiscal deficit. They stayed with
TV. The national TV channels lowered their prices and boosted bonuses, and thus
kept the lion’s share in the media mix. Digital advertising comprises about 10% of
the Argent media agency portfolio but the average for the market percentage does

Do you CEE? Bulgaria


56
not exceed 5%. The long-awaited arrival of the largest global advertisers like P&G,
Henkel, and Kraft Foods meant that the digital market has (again) been put on hold
for an uncertain period of time. Most committed advertisers in the digital domain
are from the financial, automotive, as well as telecommunications sectors but they
also have the most experience in internet advertising. Most companies diverted
about 10-20% of their online budgets to cheap CPC solutions and in consequence
they delivered millions of impressions.

Market specifics

What makes your local online market unique? Are there any specifics that make it
different from others in the CEE region?

internet usage
The combination of ADSL by Vivacom and cable internet furthered broadband
penetration even in the smallest towns and villages. However, advertisers still
have to understand that 95% of the most difficult-to-get audience in the 15-24 age
bracket is on the web.

publishers
Bulgaria is no exception regarding the development of social networking and the
most popular site, Facebook, has more than 1.5 million users. Unfortunately,
the stability of the banking system and the great number of debit and credit
cards have not smoothed out the progress of e-commerce and e-shops. Bulgarian
publishers could well offer advertisers anything their creative agencies could
think of.

Gergana Marinova and Dilyan Velichkov


Marketing Director, Zed Digital Cybermark

Online advertising market

What are the opportunities and obstacles for the Bulgarian online advertising
market?

Despite the general upward trend during the last 10 years and the expectations
for even faster growth during the recession, in 2009 and early 2010 the Bulgarian
online advertising market experienced its first year of an almost complete halt.
Instead of trying to optimize their budgets through the use of internet as a more
effective medium, as foreseen by specialists in the field in 2008, advertisers
preferred to ‘play it safe’, investing most of their budgets in the ‘good old media’,
such as press, radio and television. This led to the small growth of the online
advertising market of 4%, as estimated by a leading Bulgarian media house.

In 2009 the online media in Bulgaria continued their development of new forms
of online advertising as well as the process of creating better opportunities for
advertisers. This trend is expected to continue, following general technological
developments.

Do you CEE? Bulgaria


57
Moreover, many cost-effective buying solutions in the online media were
introduced last year. This was a simple response to the unclear expectations and
fears of advertisers, but it led to certain deviations in general pricing and buying
models. Finally, it caused some chaos on the market. Buying banner positions
using both CPM and CPC is common practice for advertisers and for a short period
the cost-per-click model flourished. However, most media soon recognized that
selling ad space using CPC as a mistake and corrected this by either increasing
their prices per click, or returning to CPM.

The interest of advertisers in professional online measurement opportunities


continued to grow. Precise advertising tracking tools started to be treated not as
an extra option but as both a common and essential part of online campaigns.

Despite the obstacles caused by the world recession, the Bulgarian online
advertising market as a whole continued its development and maintained an
upward trend, albeit at a slower pace.

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in the future?

A continued and natural trend in 2009 was the extremely fast growth of Facebook.
Its Bulgarian audience continued to increase by over 100% on year to year. This
had a strong negative impact on the local social media, which had so far also been
developing quickly. Although internet users keep spending more time on social
networking sites, a relatively small percentage of advertising budgets is invested
therein. In 2009 and at the beginning of 2010, Bulgarian advertisers together
with agencies were still unable to find the most suitable way to take advantage of
the increasing usage of social media. They rely mostly on traditional advertising
formats, while rarely trying to utilize social media in a more unconventional and
creative way.

Another trend continued in 2009 was the growth of online search investments,
driven to a large extent by small advertisers entering this market for the first time.

Do you CEE? Bulgaria


Croatia
1.67m
internet users

1. MAINPLAYERS_59
1.1. Top10websitesbyreach_59
1.2. Top10websitesbyaveragetimespentperuser_60
1.3. Topportals_61
1.4. Social networks_62
1.5. Onlineclassifiedadsbyreach_62
1.6. Topfinancesitesbyreach_63
2. ONLINEAUDIENCE_64
3. TOOLS_66
3.1. Browsers_66
3.2. Operatingsystems_66
3.3. Search engines_67
3.4. Screen resolutions_67
3.5. Mobiledevices_67
4. BRANCHORGANIZATIONS_68
5. ADVERTISINGNETWORKS_68
6. OPINIONSFROMTHEMARKET_68
59

1. MAIN PLAYERS

1.1. TOP 10 WEBSITES BY REACH

WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH
USERS VIEW USER USER

1 net.hr horizontal portal 829 372 158 273 571 191 04:32:15 49%

2 index.hr horizontal portal 755 780 76 327 847 101 03:09:12 45%

3 tportal.hr horizontal portal 735 631 69 055 950 94 02:07:32 43%

4 forum.hr forum site 655 139 27 588 585 42 01:01:32 39%

5 24sata.hr news portal 631 918 89 223 037 141 02:02:18 37%

6 jutarnji.hr news portal 600 535 48 851 538 81 01:53:06 35%

7 njuskalo.hr classified ads 548 991 72 245 870 132 01:15:26 32%

8 blog.hr blog site 536 094 4 896 194 9 00:12:55 32%

9 bloger.hr blog site 473 324 8 601 594 18 00:24:22 28%

10 vecernji.hr news portal 456 003 19 800 231 43 00:53:11 27%

Table 1 Top 10 websites in Croatia by reach level (Gemius/Valicon gemiusAudience March 2010)

Majority on the Croatian online a news portal of one of the leading


market is made up of horizontal newspapers Večernji List, owned by
portals and they lead in the ranking Styria Media Group AG, comes in at
taking the first three positions. tenth in the ranking.
Net.hr dominates the market reaching
almost every second Croatian internet Apart from portals and news services
user. With a reach 4 percentage points among the market leaders there is also
lower than the leader, second position a forum site (forum.hr), classified ads
is taken by index.hr, a portal which service (njuskalo.hr) and two blogging
has reinforced its position within the platforms (blog.hr and bloger.hr).
last year. The top 3 is propped up by Forum.hr is the most popular, multi-
tportal.hr, which reaches 43% of the thematic forum site which like index.hr
audience. At the beginning of 2008, does not belong to any large media
this service headed the market. After group. It reaches 39% of Croatian
a significant decrease in 2009, it will online internet users who on average
probably gain second place by the end spent 1 hour on this service monthly.
of 2010. Njuskalo.hr, which ranks seventh,
owned by Styria, is the most popular
The second important group of players classified ads service.
includes news services. The first,
24sata.hr, in fifth place, has a reach First among the blogging platforms,
level of 37%. In sixth place is jutarnji.hr blog.hr, was bought by NOVA (the
with a reach of 35%. Vecernji.hr, Croatian commercial television

Do you CEE? Croatia


60
Network) 2 years ago. At the beginning case of the second player, blogger.hr,
of 2009, it reached almost 37% of the which lost 3 percentage points in
Croatian online audience; however, March 2010 compared to March 2009.
after one year its reach has declined
by almost 5 percentage points.
A similar situation can be observed in

1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER

NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH


REAL USERS USER PER USER

1 net.hr 829 372 191 04:32:15 49%

2 index.hr 755 780 101 03:09:12 45%

3 1klik.net 2 419 49 02:24:36 0,17%

4 business.hr 73 578 36 02:15:04 4%

5 tportal.hr 735 631 94 02:07:32 43%

6 igre123.net 175 810 98 02:03:35 10%

7 24sata.hr 631 918 141 02:02:18 37%

8 fotozine.org 12 527 219 01:57:36 1%

9 jutarnji.hr 600 535 81 01:53:06 35%


nogometni-maga-
10 44 585 60 01:30:38 3%
zin.com

Table 2 Top 10 websites in Croatia by average time spent per user


(Gemius/Valicon, gemiusAudience, March 2010)

The players that engage Croatian is very limited, lower than 1%. The
internet users most are the popular next position, with a result of 2 hours
portals that take the lead in terms of 15 minutes, is taken by a popular
reach. Net.hr dominates in the ranking business portal, business.hr.
with a result of 4.5 hours. At the same
time, its main rival, Index, has over What is interesting is that there are
one hour less than Net.hr. Tportal.hr hardly any entertainment websites
does not significantly lag behind its present in the ranking. The only
two major rivals in terms of number of gaming service, igre123.net, comes in
users, but has two hours less than the 6th place with a result of 2 hours.
leader when average time spent per
user is taken into account. Croatian users also devote much of
their time online to news services and
Third position is taken by 1klik.net, two of them, 24sata.hr and jutarnji.hr,
a website catalog and search domain are the listed in the ranking with
based on the Google engine. Though a result oscillating around the 2 hours
the average time spent per user equals mark.
almost 2.5 hours, the service’s reach

Do you CEE? Croatia


61
Among the leaders in terms of average
time spent per user, there is also
a service dedicated to photography,
fotozine.org, where its users spent on
the site almost 2 hours monthly on
average.

The ranking is propped up by


nogometni-magazin.com dedicated to
football. Though its audience is limited
to users interested in football they
spent on average of 1.5 hours on the
website monthly.

1.3. TOP PORTALS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 net.hr 829 372 191 04:32:15 49%

2 index.hr 755 780 101 03:09:12 45%

3 tportal.hr 735 631 94 02:07:32 43%

4 24sata.hr 631 918 141 02:02:18 37%


5
jutarnji.hr 600 535 81 01:53:06 35%

Table 3 Top 5 portals in Croatia by reach level (Gemius/Valicon, gemiusAudience, March 2010)

All of the portals and news services belong to any large media house and
are listed among the most popular Index promocija d.o.o. is the sole
players on the market. The first, net.hr, owner of the portal.
was formerly known as iskon.hr, the
portal of the ISP provider. It has been Index’s main rival is tportal.hr,
leading the market since the beginning a service which at the beginning
of 2008. This website, owned by of 2008 used to lead the market.
Centrum Holdings (75%) and Proficio It belongs to the largest ISP provider
(25%), is operated by Adriatic Media. T-com. Tportal provides its users
Apart from news, the portal offers with news as well as entertainment.
a wide variety of services such as free Although the discrepancy in terms
mail, and chat. of reach between Index and Tportal is
not that significant and accounts
The second is index.hr, a portal for a mere 2 percentage points,
with a tabloid character. Apart from the latter loses out in terms of average
news, it offers also a forum, nightlife time per user with a result over one
information, video content, a blog hour worse than Index.
platform and more. Index does not

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62
The last two services included in the The ranking is propped up by jutarnji.hr,
ranking are more news services than the news portal of a popular
horizontal portals. The first, sata24.hr, newspaper “Jutarnji List”. It belongs
is a news portal run by a leading to Europapress Holding (EPH),
daily tabloid. It belongs to Styria a media company operating in Croatia
Media Group AG and has a unique, and Southeastern Europe. It owns
interactive design, which distinguishes 5 daily newspapers and more than
it from other services. 24sata.hr 30 magazines.
reaches 37% of the Croatian audience
who on average spent 2 hours monthly
using this service.

1.4. SOCIAL NETWORKS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

tulumarka.com 57 152 9 00:05:53 3%

Table 4 Local social networking site measured by Gemius/Valicon, the gemiusAudience study by
reach level (Gemius/Valicon, gemiusAudience, March 2010)

Unlike other CEE online markets, their market share. For example, the
Croatia has no strong local player that share of the second important local
would attract a wide group of internet player, Tulumarka, fell by 1 percentage
users. The most popular community point last year, losing almost 15,200
site is Iskrica. Even though it has been users from March 2009 to March
present on the market for more than 2010.
10 years, its reach is estimated at only
a few percent. Currently, Facebook is
the strongest social networking site
on the Croatian online market and
its position is still growing. Due to its
domination, local players are losing

1.5. ONLINE CLASSIFIED ADS BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 njuskalo.hr 548 991 132 01:15:26 32%

2 oglasnik.hr 232 790 48 00:33:03 14%

3 auti.hr 184 722 107 01:08:32 11%

Table 5 Top 3 online classified ads in Croatia by reach level (gemiusAudience, March 2010)

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63
The unquestionable leader among a print version, Plavi Oglasnik, and
online classifieds is njuskalo.hr, is the oldest site in this category.
a service presenting itself as It is owned by Trader Media East and
a „marketplace”. It contains a wide publishes more than 300,000 new ads
spectrum of categories beginning with every month. However, the service is
automotive to tourism. The service not performing as well as njuskalo.hr
is extremely popular among Croatian and gained a reach of 14%. Last place
internet users and comes in at 7th is taken by the auti.hr, auto classified
place in the general reach ranking service with a reach level of 11%
with a reach level of 32%. The second which also belongs to TME.
player is oglasnik.hr which also has

1.6. TOP FINANCE SITES BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 poslovni.hr 149 786 28 00:42:12 9%

2 limun.hr 81 728 24 00:55:38 5%

3 business.hr 73 578 36 02:15:04 4%

Table 6 Top 3 finance sites in Croatia by reach level (Gemius/Valicon, gemiusAudience,


March 2010)

Among Croatian finance websites, the leading financial services is business.hr,


unquestionable leader is poslovni.hr, which seems to be most engaging
the vertical portal of the first Croatian for its users who spent an average
daily business newspaper Poslovni of more than 2 hours monthly on
Dnevnik. The portal has a large online this website. Moreover, the portal is
community of users centered around supported by a printed newspaper.
financial and business topics, along
with current affairs and analysis.
Poslovni.hr provides an overview
of trading on regional stock exchanges.
Moreover, it offers many business
and professional titles available
through an online bookstore.
The second site, limun.hr, belongs
to Raiffeisen Consulting d.o.o.,
a company specializing in business
consulting and brand management.
This site is devoted to economic news
and advanced financial services.
According to Gemius/Valicon, the
gemiusAudience study, it reached 5%
of the Croatian online audience in
March 2010. Last in the ranking among

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64

2. ONLINE AUDIENCE

The Croatian gender structure – 24,999 inhabitants (19%). 11% of


of the online population is quite the online population lived in villages
balanced, like on most other CEE and small towns with less than 1,000
markets. In March 2010 men inhabitants.
accounted for 52% of the online
audience. Moreover, the average man According to the Gemius/Valicon
spent over 2 hours more online than gemiusAudience study from March
the average woman. 2010, the largest group among
Croatian internet users in terms
In terms of age, the most of occupation consisted of people
significant group within the Croatian employed in companies. They
online population are young people accounted for 26% of the online
aged 15-24. According to the Gemius/ population. Second place belonged
Valicon gemiusAudience study to students, who accounted for 22%
from March 2010, they constituted of the online population. Another
35% of the population. The second significant group is users employed in
largest group, users 35-44 years old, the public sector (18%).
accounted for 23% of the population.
People aged 25-34 accounted for
1 percentage points less of the online
population.

Croatian internet users are quite


well-educated. Majority of Croatian
internet users graduated from
secondary school. According to the
Gemius/Valicon gemiusAudience study
from March 2010, they accounted
for 48% of the online population in
Croatia. The next significant group
consisted of users who were still in
school or faculty (29%). Only 3% of the
Croatian online population had at best
primary education.

In March 2010, 27% of Croatian


internet users lived in cities with over
100,000 inhabitants. What is more,
these users were also the most active
ones, spending over 14 hours online.
The second most important group of
internet users lived, according to the
Gemius/Valicon gemiusAudience study
from March 2010, in towns with 5,000

Do you CEE? Croatia


66

3. TOOLS

3.1. BROWSERS

Chart 1 Top browsers in Croatia by share of page views generated by internet users who visit the
Croatian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)

3.1. Browsers by Croatian internet users worth


mentioning are Chrome (6%) and
For many years, the leader on Croatian Opera (4%). They are gaining a larger
browsers market was Microsoft share of the market, though the
Internet Explorer. However, over the process is slow.
past few years the MSIE’s share of
page views generated by internet 3.2. Operating systems
users who visit Croatian websites using
gemiusTraffic has been decreasing. Like on other CEE markets, the leader
At the beginning of 2010 it reached among operating systems in Croatia
a level of 43% and was overtaken is Windows XP. After the first quarter
by Firefox. Other browsers used of 2010, its share of the market as

3.2. OPERATING SYSTEMS

Chart 2 Top operating systems in Croatia by share of page views generated by internet users who visit
Croatian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)

Do you CEE? Croatia


67
analyzed by gemiusTraffic, constituted
77%, and its position does not seem to 3.3. SEARCH ENGINES
be threatened in the nearest future.
However, Windows 7 gained almost
12% of the market in less than a year,
leaving Windows Vista behind.

3.3. Search engines

The Croatian search engine market


is as dominated by Google as other
CEE markets. After the first quarter
of 2010, it accounted for 99% of the
visits made by internet users who visit
Chart 3 Top search engines in Croatia by share of visits made by internet users who visit Croatian
Croatian websites using gemiusTraffic, websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)
leaving hardly any room for its rivals,
MSN and Yahoo.
3.4. SCREEN RESOLUTIONS
3.4. Screen resolutions

The share of 1024 x 768 monitor


screen resolutions in Croatia has been
decreasing for the last few years.
However, it is still the most popular
choice among Croatians with a share
of 32%. Other popular ones in the first
quarter of 2010 were 1280 x 1024,
1280 x 800 and 1680 x 1050.

3.5. Mobile devices - models


Chart 4 Screen resolutions in Croatia by share of page views generated by internet users who visit
Croatian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)
Among the mobile devices used to
connect to the network, leadership
on the Croatian market belongs to
3.5. MOBILE DEVICES
the iPhone, which according to the
gemiusTraffic study, was responsible
for 54% of the page views generated
by mobile devices on an average
website in July. Despite such a high
result, its popularity is gradually
falling: a 2-percentage-point decrease
was observed over the past two
months. Like on other markets, this
loss is in favor of the iPad, Apple’s
latest product, which during the same
period improved its market share by
2 percentage points. The share gained
Chart 5 Top 5 mobile devices in Croatia by the website-averaged percentage share of page views
by other devices in the top 5 oscillates generated by internet users from Croatia who visit Croatian websites using gemiusTraffic (gemiusTraf-
around 2-3%. fic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10 **to 2010-07-25

Do you CEE? Croatia


68

4. BRANCH ORGANIZATIONS

IAB Croatia (INAMA) by offering stimulation and guidance


for the industry. It was formerly known
www.inama.hr as INAMA or ‘the association for
interactive marketing’. It received an
Description: IAB Croatia is a local non- IAB license in 2008.
profit, non-governmental organization
dedicated to interactive marketing. Members: publishers and agencies
It was founded with the objective of (e.g. net.hr, tportal.hr, OMG)
helping the development of interactive
marketing communication in Croatia

5. ADVERTISING NETWORKS

GENERAL CONTACT INFORMATION


FULL NAME HOMEPAGE URL MAIN OFFICE CONTACT
ADDRESS ADDRESS
Boškovićeva 13A, Phone: +385-1-30-30-430
1 E-Target etarget.hr
10 000 Zagreb, Croatia Email: marketing@etarget.hr
Phone: +385-1-55-95-380
Livanjska 11,
2 Xclaim xclaim.hr Fax: +385-1-38-40-700
10 000 Zagreb, Croatia
Email: welcome@xclaim.hr
Phone: +385-1-55-95-383
Livanjska 11,
3 AdNet ad-net.hr Fax: +385-1-38-40-700
10 000 Zagreb, Croatia
Email: info@ad-net.hr

6. OPINIONS FROM THE MARKET

Jan Jilek
President of IAB Croatia

Online advertising market

What are the opportunities and obstacles for the online advertising market on your
local market?

The economic situation in the world and in Croatia has decreased advertising
expenditures in general, although the only medium that grew was the internet.
On the other hand, the crisis resulted in lower prices of other media, mostly TV,
which is already the most represented medium in total advertising Adex (60%). In
conclusion, the greatest problem regarding online advertising in Croatia is the fact

Do you CEE? Croatia


69
that the global crisis is still ongoing here. In short, it is hard for the online market
to be competitive in these conditions.

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in the future?

As with many other markets, social media marketing had the highest growth in
Croatia and this is expected to continue. Many advertisers began using Facebook
and Twitter creating applications, fan pages, etc.

Global vs. local players

Are the local players present on your local market strong enough to compete with
the global giants? What advantages and strategies do they use in this battle?

Google and Facebook are the most popular global players in Croatia and have
more than 90% of the search and social media markets, respectively. Croatian
companies cannot compete with this. Local players stick to news and portal
information as they have an advantage with regards to local current affairs. The
top three players in Croatia are all horizontal portals.

Market specifics

What makes your local online market unique? Are there any specifics that make it
different from others in the CEE region?

The Croatian market is unique due to the extremely low price of TV advertising
compared to other countries. This inhibits the growth of other media, including
the internet. Although the internet is the only medium that can compete with TV
and is growing, this is not happening as fast and as much as it could.

Saša Škorić
Director, OMG

Online advertising market

What are the opportunities and obstacles for the online advertising market on your
local market?

The lack of research on online advertising investment is the main obstacle for the
greater growth of advertising on the Croatian market. This is the main reason why
only 2% of the advertising budget is online, although the real figures are much
higher. Despite the fact that Croatians are a little behind in the standardization of
advertising formats and prices, Croatian users are fast in accepting new trends that
come from so-called more ‘developed’ countries.

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70
Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in the future?

Social networking sites have become the main subject of discussion with regard to
advertising and almost all online campaigns include some forms of advertising and
user engagement on social networking sites, primarily Facebook. Geo-targeting
services and mobile advertising is expected to become more developed and
popular in the months to come.

Global vs. local players

Are the local players present on your local market strong enough to compete with
the global giants? What advantages and strategies do they use in this battle?

The strength and character of competition between global and local players
depends basically on the particular business field. Although local players have
strong positions in some segments like ‘classifieds’ or ‘publishing’ (horizontal
portals), in the ‘search’ or ‘social networking’ fields local players have almost
disappeared with the huge growth of Google and Facebook. Knowledge of the
local market and user habits as well as local sales forces are the main advantages
of local players, who still hold the greatest shares within particular segments.

Market specifics

What makes your local online market unique? Are there any specifics that make it
different from others in the CEE region?

Croatian users have embraced some global services on a larger scale and more
intensely than in the majority of other countries. On the other hand, fear of online
payment is still relatively high and the main reason why some online projects have
failed in Croatia.

Do you CEE? Croatia


Czech Republic
5.29m
internet users

1. MAINPLAYERS_73
1.1. Top10websitesbyreach_73
1.2. Top10websitesbyaveragetimespentperuser_74
1.3. Topportals_75
1.4. Social networks_76
1.5. Onlineclassifiedadsbyreach_77
1.6. Topfinancesitesbyreach_78
2. ONLINEAUDIENCE_78
3. TOOLS_80
3.1. Browsers_80
3.2. Operatingsystems_81
3.3. Screen resolutions_81
3.4. Mobiledevices_81
4. BRANCHORGANIZATIONS_82
5. ADVERTISINGNETWORKS_84
6. OPINIONSFROMTHEMARKET_84
73

1. MAIN PLAYERS

1.1. TOP 10 WEBSITES BY REACH

WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH
USERS VIEWS USER USER

1 seznam.cz horizontal portal 4 779 928 2 924 611 713 612 18:47:51 84%

2 novinky.cz news portal 3 152 036 222 189 189 70 01:47:06 55%

3 centrum.cz horizontal portal 3 046 395 453 637 700 149 02:59:39 53%

4 idnes.cz news portal 3 021 952 306 990 826 102 01:56:20 53%

5 firmy.cz company catalogues 2 469 792 60 832 571 25 00:25:36 43%

6 super.cz news portal 2 430 318 140 331 585 58 00:50:33 42%

7 mapy.cz maps 2 298 139 51 914 825 23 00:25:01 40%

8 stream.cz video content portal 1 860 614 35 977 914 19 00:25:20 33%

9 sport.cz sports portal 1 758 540 59 189 200 34 00:40:40 31%

10 estranky.cz webhosting and web creation 1 713 221 41 406 635 24 00:19:51 30%

Table 1 Top 10 websites in the Czech Republic by reach level (NetMonitor - SPIR/Mediaresearch/Gemius, March 2010)

According to the NetMonitor - SPIR/ contacts, ranked fifth and its reach
Mediaresearch/Gemius study in March level amounted to 43%. The next
2010 the top 10 ranking by reach was are: Super.cz, a news portal with
dominated by a varied set of portals. over 2.4 million real users, and mapy.
cz, the most popular map site in the
The unquestionable leader was Czech Republic.
seznam.cz with a reach level of 84%,
1 percentage point more than a year The last group includes websites
ago. This site is also top when it comes with an approximate 30% share of
to the number of page views per user, the market. With 1.86 million users,
with a result of 612. The following stream.cz ranked eighth and was the
three places were occupied by number one Czech portal with audio
websites with reach levels of around and video content as well as TV shows.
50% - novinky.cz (55%), centrum.cz Its users are not only able to watch
(53%) and idnes.cz (53%). They are available videos, but also upload their
all popular Czech portals and news own. Moreover, there is a special
services. section for kids. Another portal in the
ranking was sport.cz (31%), an online
The next group of sites reached magazine with sports news from
approximately 40% of the Czech Seznam.cz and a daily newspaper
online audience. Among them, the Právo. The ranking was propped up
most popular one, Firmy.cz, a business by estranky.cz, which is a site dealing
catalogue with a database of company with web hosting and web creation.

Do you CEE? Czech Republic


74
It enables its users to create a website
in 5 minutes, easily and, what is more,
for free. In March 2010 it had a reach
level of 30%.

What is interesting about the websites


from the top 10 ranking list is the fact
that half of them: seznam.cz, novinky.cz,
firmy.cz, sport.cz and mapy.cz belong
to the same owner, Seznam.cz.

1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER

NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH


REAL USERS USER PER USER

1 seznam.cz 4 779 928 612 18:47:51 84%

2 lide.cz 1 690 541 406 04:34:14 30%

3 onlajny.cz 109 019 148 04:30:56 2%

4 livesport.cz 126 363 80 03:31:53 2%

5 warforum.cz 94 749 125 03:18:57 2%

6 rande.cz 61 759 279 03:18:51 1%

7 geewa.cz 18 195 85 03:11:20 0.3%

8 centrum.cz 3 046 395 149 02:59:39 53%

9 seznamit.cz 52 868 212 02:53:39 1%

10 aukro.cz 1 566 095 327 02:46:34 27%

Table 2 Top 10 websites in the Czech Republic by average time spent per user (NetMonitor - SPIR/
Mediaresearch/Gemius, March 2010)

In March 2010 the ranking of the networking service lide.cz. It was


top 10 websites by average time followed by onlajny.cz, which provides
spent per user included sites that are online results and commentary on
entertaining or enable their users various sports events e.g. football, ice
to stay in touch with their friends. hockey and handball. It had a reach
Not surprisingly the leader again level of 2%, but its popularity is
was seznam.cz. Its lead over other growing regarding the Olympics and
websites seems to be unthreatened. football championships. A similar
In March an average user spent there Czech portal is livesport.cz, whose
almost 18 hours and 48 minutes. users spent on average 3 hours and
32 minutes on the service. As with
In second place, but with much lower onlajny.cz, it publishes sports news
result of 4 hours and 34 minutes spent and live match results. Moreover,
by its users monthly, was the social there is a chat room where visitors can

Do you CEE? Czech Republic


75
comment on current sports events or With 3 hours and 11 minutes geewa.cz
simply share information with others. ranked seventh. It contains a collection
of online games grouped into
The 5th and 6th positions were categories. However, it is not very
occupied by warforum.cz and rande.cz popular among Czechs and its reach
respectively, sites where users spend level in March 2010 amounted to only
almost 3 hours and 19 minutes 0.3%.
a month. Warforum.cz is a forum
divided into various sections such as The last three places were occupied by
Movie Hall or Music Hall and they sites where users spent little less than
are further subdivided into forums 3 hours online a month. These were
and themes. In order to read or post centrum.cz, a popular Czech horizontal
comments users have to register. portal, seznamit.cz, another dating site
In March 2010 this forum had almost (like rande.cz) and the aukro.cz online
94,750 users. Rande.cz, on the other auction, whose popularity among the
hand, is a website dedicated to Czech online population is growing.
internet users who are searching for
a friend or a relationship.

1.3. TOP PORTALS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 seznam.cz 4 779 928 612 18:47:51 84%

2 novinky.cz 3 152 036 70 01:47:06 55%

3 centrum.cz 3 046 395 149 02:59:39 53%

4 idnes.cz 3 021 952 102 01:56:20 53%

5 super.cz 2 430 318 58 00:50:33 42%

Table 3 Top 5 portals in the Czech Republic by reach level (NetMonitor - SPIR/Mediaresearch/Ge-
mius, March 2010)

Since portals and news services are portal allows its users to personalize
very popular among Czechs, the the main page according to their
services from the top 5 ranking also interests in a user-friendly way.
occupy the leading positions in the
general ranking by reach. The most In March 2010 the second player
significant one is seznam.cz, a market within the Czech online market was
leader on the Czech online market not the news portal novinky.cz with
only in terms of reach (84%), but also a reach level of 55%. It is an online
in average time per user (18 hours magazine created in cooperation
and 48 minutes). The portal offers the with a daily newspaper Právo and
usual services to its users such as free Seznam.cz. It was launched in 2003
mail, current news, weather forecasts, and instantly jumped to the top of the
exchange rates, etc. This horizontal popularity rankings. Thanks to its rich

Do you CEE? Czech Republic


76
content, it has a firm position in the page views. It has been present on
Czech Republic with over 3.15 million the Czech online market since 1998,
real users, who in March spent an when it published its first news online.
average of 1 hour and 47 minutes on 24 hours a day its editorial team is
this service. preparing reliable news from home
and abroad, culture, sport, economy
The third place was occupied by the and finance. Moreover, its users can
horizontal portal centrum.cz. In March visit specialized sub-services dedicated
2010 its reach level amounted to to particular interest groups such as
53%. In comparison to last year its the automotive industry, lifestyle,
reach grew by 2 percentage points, health or travel.
but it is still far behind seznam.cz.
However, this portal is extremely user- The ranking from March 2010 was
friendly and its users can find typical propped up by super.cz, which had
services for this kind of site here i.e. a reach level of 42%. It is a joint
mail, news, a TV schedule, free SMS project of Seznam.cz and Stratosféra
gateway, horoscopes and much more. and it contains articles from magazines
of the Stratosféra publishing house.
Idnes.cz was ranked fourth with over
3 million users and almost 307 million

1.4. SOCIAL NETWORKS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 lide.cz 1 690 541 406 04:34:14 30%

2 blog.cz 1 664 116 40 00:34:54 29%

3 spoluzaci.cz 1 139 332 63 00:30:44 20%

4 idnes.cz|Rajce.net 822 533 25 00:19:43 14%

5 libimseti.cz 634 750 173 02:23:01 11%

Table 4 Top 5 local social networks in the Czech Republic by reach level (NetMonitor - SPIR/Media-
research/Gemius, March 2010)

The popularity of local social networks the younger generation – the average
measured by NetMonitor in the Czech age ranges from 12 to 19 years old.
Republic is declining. Lide.cz and blog.cz It is divided into several categories,
were, according to the NetMonitor including a popular instant messaging
- SPIR/Mediaresearch/Gemius study, service, discussion forums, dating
the most popular ones. However, in service and blogs. Blog.cz, on the
comparison to last year, their reach other hand, is a web application for
level decreased by 5 percentage points creating blogs. It was launched in 2005
and in March 2010 accounted for 30% and soon became the largest blog
and 29%, respectively. Lide.cz is a part service on the Czech online market.
of Seznam.cz, dedicated mainly to

Do you CEE? Czech Republic


77
The other player on the Czech social In March 2010 its reach level
networking market is spoluzaci.cz. amounted to 14%.
Its popularity is decreasing and over
the last twelve months its reach Libmiseti.cz, a community portal,
declined by 8 percentage points, down was ranked fifth and with a reach level
to 20%. The site enables its users to of 11% it is another significant player
stay in touch with their classmates. on the Czech online market. It offers
Within the service, there is a database to its users custom profiles, photo
of primary and secondary school albums, a chat and e-mail service,
classes available in the Czech Republic. competitions and much more.
In March 2010 its average user spent
The fourth place in the ranking was 2 hours and 23 minutes on
occupied by rajce.net, part of MAFRA, the website.
a.s. (which owns idnes.cz) dedicated to
sharing photos. Its users can create
a free account with unlimited space
for photos that can be easily uploaded
to the site with simple software.

1.5. ONLINE CLASSIFIED ADS BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 sbazar.cz 1 044 789 50 00:32:46 18%

2 hyperinzerce.cz 941 032 18 00:14:46 16%

3 bazos.cz 615 046 116 01:01:28 11%

Table 5 Top 3 online classified ads in the Czech Republic by reach level (NetMonitor - SPIR/Media-
research/Gemius, March 2010)

The leader on the classified ads In comparison to March 2009 its reach
market in the Czech Republic in March level increased by 3 percentage points
2010 was sbazar.cz with a reach level and in March 2010 accounted for
of 18%. It is the largest Czech portal of 16%. The last website in the ranking,
this kind. One can buy and sell as well bazos.cz, has also been gaining
as participate in auctions on the site. popularity and its reach level grew
As many as 200,000 classifieds are by 2 percentage points over the last
grouped into 20 categories. Moreover, twelve months. Bazos.cz is trying to be
sbazar.cz allows an immediate as simple and user friendly as possible
communication between buyer and and this strategy seems to be working
seller. It is a part of Seznam.cz. very well: its users add around 11,000
new ads daily.
Second place belonged to
hyperinzerce.cz, a classified ads site
with over 1.2 million offers.

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78

1.6. TOP FINANCE SITES BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

novinky.cz-rubrika
1 1 330 776 7 00:10:21 23%
Ekonomika
idnes.cz
2 Ekonomika 724 322 18 00:24:21 13%
a Finance iDNES
centrum.cz
Aktualne.cz
3 390 404 17 00:16:31 7%
Ekonomika/
Finance

Table 6 Top 3 finance sites in the Czech Republic by reach level (NetMonitor - SPIR/Mediaresearch/
Gemius, March 2010)

When it comes to finance sites, there novinky.cz) with a reach level of 23%.
is no significant independent player. It was followed by Ekonomika and
The popular sites are parts of the Finance of iDNES, whose reach level
leading Czech portals: novinky.cz, amounted to 13%. The top 3 ranking
idnes.cz and centrum.cz. was propped up by finance.aktualne.
cz, which is a part of centrum.cz and in
The first place in the ranking, based on March 2010 it had over 390,400 real
the NetMonitor - SPIR/Mediaresearch/ users. It publishes business news on
Gemius study from March 2010, the stock exchange, the RM system,
belonged to Ekonomika (part of currency rates, commodities etc.

2. ONLINE AUDIENCE

The gender structure of the online online population were people aged
population in the Czech Republic 25-34, with a share of 24%. They
is quite balanced. According to the were also the group of users who
NetMonitor - SPIR/Mediaresearch/ spent most time online, i.e. 32 hours
Gemius study from March 2010, men and 32 minutes a month. The second
constituted 52% whereas women largest group, users aged 15-24, who
48%. Also in terms of average time in 2009 accounted for 28%, in March
spent online per user there was no 2010 constituted only 22%. At the
major difference between the male same time the share of people over 55
and female audience. On average increased by 2 percentage points.
men were surfing the web for only 12
minutes longer than women. In March 2010 the highest
percentage of the Czech online
In terms of age, the most population had completed secondary
numerous group within the Czech education (the group also included

Do you CEE? Czech Republic


80
extension studies). This amounted to over 100,000 inhabitants, with 13%
39%. Moreover, they were the most in Prague alone. Another 23% of the
active internet users and on average online population lived in cities with
spent almost 34 hours online per 20,000 – 99,999 inhabitants. 16% of
user. The second significant group the online population lived in villages
within the Czech online audience were and small towns with up to 999
people with secondary education but inhabitants.
without completing a ‘leaving exam’.
All in all, these two groups together In the Czech Republic, the most
constituted 61%. significant group in March 2010 in
terms of occupation (37%) among
Users with higher education amounted internet users were employees.
to 16% in March 2010, 5% had Second place belonged to pupils,
abachelor degree and 11% graduated students and trainees, who accounted
from university. According to the for 24% of the online population.
NetMonitor - SPIR/Mediaresearch/ Another major group of the online
Gemius study, users aged 12-14 audience were businessmen and sole
accounted for 7% of the online traders with 17%.
population in the Czech Republic, thus
it comes as no surprise that there is
also a high percentage of internet
users with incomplete primary
education (11%).

According to the NetMonitor


- SPIR/Mediaresearch/Gemius study
from March 2010, 23% of Czech
internet users lived in cities with

3. TOOLS

3.1. BROWSERS

Chart 1 Top browsers in the Czech Republic by share of page views generated by internet users who
visit Czech websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

Do you CEE? Czech Republic


81
3.1. Browsers
3.2. OPERATING SYSTEMS
Microsoft Internet Explorer has been
the leader on the Czech browser
market for many years. However, over
the past few years, MSIE’s share of
page views generated by internet users
who visit the Czech websites using
gemiusTraffic has been decreasing
(over the past twelve months it lost
7 percentage points) and its advantage
over other browsers declined. The
second player on the Czech market
with a market share of 35% in March
2010 was Firefox. Unlike MSIE, its Chart 2 Top operating systems in the Czech Republic by share of page views generated by internet
users who visit Czech websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)
popularity has been growing for a long
time now and soon a change in the
leader position may be expected. 3.3. SCREEN RESOLUTIONS
According to the gemiusTraffic study,
after the first quarter of 2010, Opera
had 6% of the market. The newcomer,
Chrome, already managed to gain 4%
of the Czech browser market.

3.2. Operating systems

Similarly to other CEE markets,


the unquestionable leader among
operating systems is Windows XP.
After the first quarter of 2010 its share
Chart 3 Screen resolutions in the Czech Republic by share of page views generated by internet users
of the market accounted for 71%. Yet, who visit the Czech websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)
its popularity has been declining for
some time. Quite a significant share
of the market (18%) belonged to
3.4. MOBILE DEVICES
Windows Vista. Windows 7, launched
in the Czech Republic in October 2009
gained in 1Q 2010 8% of the market in
less than a year.

3.3. Screen resolutions

The most popular choice among


Czechs when it comes to screen
resolutions has for a long time been
1024 x 768. However, its popularity
has been declining for years. According
to the gemiusTraffic study its share of
Chart 4 Mobile devices in the Czech Republic by the website-averaged percentage share of
the market went down 9 percentage page views generated by internet users from the Czech Republic who visit Czech websites using
gemiusTraffic (gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months)
points over the last twelve months. *from 2010-05-10 **to 2010-07-25

Do you CEE? Czech Republic


82
After the first quarter of 2010 other position was taken by Apple’s latest
popular screen resolutions were 1280 product, the iPad. Even though in July
x 1024 (18%) and 1280 x 800 (17.5%). 2010 its share equaled a mere 4%, it
grew by 2 percentage points during
3.4. Mobile devices - models the past two months. The next three
positions belong to Nokia and HTC
The unquestionable leader on the devices, all oscillating around 3%.
Czech market of internet mobile
devices is the iPhone. According to
the gemiusTraffic study, in July 2010
iPhone was responsible for 22% of
page views generated by mobile
devices on an average website. Second

4. BRANCH ORGANIZATIONS

SPIR APEK

www.en.spir.cz www.apek.cz

Description: SPIR is a professional Description: The Association for


association active in the field of Electronic Commerce (APEK) is
internet advertising since 2000. The an association of more than 200
membership base of the association companies, entrepreneurs and
currently accounts for 66 members. experts in electronic commerce.
Alongside operating integrated, APEK’s main goal is the analysis
widely respected research into visitor and study of electronic commerce.
numbers and sociodemographic Members include the largest internet
profiling of internet visitors via shops, leading software companies
NetMonitor, it also implements an and financial institutions.
internet advertising monitoring
project, AdMonitoring, organizes The association was founded in 1998
the IAC professional conference on as an independent organization
internet marketing, and provides that supports the development of
expert analysis of internet market electronic commerce in the Czech
development in the Czech Republic. Republic.

Members: Internet Media (e.g. Members: the biggest internet


ARBOinteractive, spol. s r.o.; Centrum retailers, e-marketplaces, IT service
Holdings; CET 21, spol. s r.o.; Internet providers, consultants, logistics
Info, s.r.o.; MAFRA; Ringier ČR, a.s.; companies, financial service providers
Sanoma Magazines Praha, s.r.o.; (e.g. kasa.cz; invia.cz; cedok.cz; datart.
Seznam.cz, a.s.), Internet Advertisers cz; dhl.cz; InternetMall; Mironet;
(e.g. Mediaedge:cia Czech Republic, Retail Info).
s.r.o.; MindShare, s.r.o.; OMD Czech,
a.s.; Starcom MediaVest Group, s.r.o.).

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83
Association of Internet and has 43 members. The Association
Solutions Providers has a special section dedicated to
the internet – SVIT, which has run
www.asociace.biz as an independent operation since
2002. Its mission is the creation and
Description: Asociace.biz brings enforcement of standards for the
together IT and web agencies internet environment.
specializing in the development
of internet and intranet solutions. Members: members of SVIT section:
Asociace.BIZ organizes seminars and Centrum Holdings, Epravo.cz,
conferences, publishes professional Euronews, IDG Czech, MAFRA, Ringier
publications providing world news ČR, Sanoma Magazines Praha, Trade
and internet solutions. The aim of & Leisure, Publications, Vltava Labe
Asociace.BIZ is to provide inspiration Press.
for advertisers and companies
as well as ideas on how to use
interactive media in e-commerce and
marketing campaigns, to streamline
work through corporate intranets
and systems built on modern web
technologies. The association was
established in 2002.

Members: IT companies and internet


agencies (e.g. AARON GROUP spol.
s r.o.; AMI Praha a.s.; ET NETERA
a.s.; FG Forrest, a.s.; Internet Projekt
a.s.; Lundegaard spol. s r.o.; Mather
Advertures, s.r.o.; MEDIA FACTORY
ČR a.s.; OgilvyInteractive, Onlio, a.s.;
První multimediální, s.r.o.; SYMBIO
Digital, s.r.o.; WDF - Web Design
Factory, spol. s r.o.).

UVDT Czech Publishers Association

www.uvdt.cz

Description: The Association is the


sole representative association of
entrepreneurs and employers in the
sector of periodicals and the provision
of content via the internet in the
Czech Republic. The Association brings
together most publishers of national
and regional newspapers and a large
majority of publishers of relevant
magazines. It was founded in 1990

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84

5. ADVERTISING NETWORKS

GENERAL CONTACT INFORMATION


FULL NAME HOMEPAGE URL MAIN OFFICE CONTACT
ADDRESS ADDRESS
Phone: +420-224-409-270
Nad Petruskou 63/1,
1 Impression Media, s.r.o. impressionmedia.cz Fax: +420-222-512-016
120 00 Praha-Vinohrady
Email: info@impressionmedia.cz
Phone: +420-234-676-410
U Hellady 697/4,
2 AdActive s.r.o adactive.cz Fax: +420-234-676-338
140 00 Praha 4
Email: info@adactive.cz
Phone: +420-235-358-508
Lužná 716/2,
3 VISIBILITY s.r.o. visibility.cz Fax: +420-235-364-124
160 00 Praha-Vokovice
Email: obchod@visibility.cz

Hálkova 1629 / 11, Phone: +420-720-755-839


4 Admarket, a.s. admarket.cz
Praha 2, 120 00 Email: reklama@admarket.cz

Phone: +420-270-005-076
Vinohradská 2396/184,
5 Best Online Media, s.r.o. online-media.cz Fax: +420-737-283-091
130 00 Praha-Vinohrady
Email: zuzana@online-media.cz
Phone: +420-277-775-670
Janáčkovo nábřeží 51/39,
6 ARBOinteractive, spol. s r.o. arbointeractive.cz Fax: +420-251-082-105
150 00 Praha 5
Email: internet@arbointeractive.cz

outdoornet.cz Senovážné náměstí 1984/10, Phone: +420-608-745-533


7 Media House, s.r.o.
familynet.cz 110 00 Praha-Nové Město Email: info@mediahouse.cz

Vítězné náměstí 576/1, Phone: +420-724-317-131


8 AMEDIA media, s.r.o. amediamedia.cz
160 00 Praha 6 Email: ib@amediamedia.cz

Phone: +420-553-615-555
Novoveská 1262/95,
9 Internet BillBoard a.s. nternet.billboard.cz Fax: +420-553-620-667
709 00 Ostrava - Mariánské Hory
Email: info@billboard.cz

6. OPINIONS FROM THE MARKET

Tomáš Lauko
Digital & Business Development Manager, ZenithOptimedia – CEE

Tomáš Varga
Head of ZED Digital, Zed Digital (part of ZenithOptimedia)

Online advertising market

What are the opportunities and obstacles for the Czech online advertising
market?

The Czech market will most certainly grow. It has great potential (the 3rd largest
advertising market in the CEE region) and is certainly one of the most developed
CEE markets. The latest Advertising Expenditures forecast of ZenithOptimedia

Do you CEE? Czech Republic


85
(July 2010) predicts increasing investment in the Czech internet from the current
11% (2009) to 14% in 2010 (prices from price list), which will ensure for the Czech
Republic a place in the top three countries in the CEE region, excluding Estonia
and Latvia.

The greatest obstacle for the Czech market is the lack of understanding as many
people pervceive the internet as a cheap medium.

The second greatest obstacle is that the total online Audio-Visual potential
cannot be fully measured (YouTube, Google and Facebook are missing here).

Regarding investments in the internet market, search marketing (as a type of


performance marketing) has the greatest potential in the short term with mainly
text, but also display, starting to develop its full potential. Thanks to the crisis,
also the small companies choose more often the CPC model, but on the other
hand the large companies still choose the CPM model.

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in the future?

To summarize in three points: The cost per action payment model (ROI), social/
online listening and mobile marketing. We can already see the first steps,
testing and a shift from TV to AV (Audio Visual) after analyzing the first report of
multimedia content measurement in the Czech Republic. It will be interesting
to look at the mobile marketing measurement in the second part of 2010.

Facebook, YouTube and performance marketing in general will continue to


expand on the Czech online market. There is also great and still untapped
potential in social/online listening. In most cases the brands do not realize their
potential and do not know how to embrace and take full advantage of it.

The most interesting work force in the nearest future will be analysts,
copywriters, and people with ‘soft’ social skills.

Global vs. local players

Are the local players present on your local market strong enough to compete with
the global giants? What advantages and strategies do they use in this battle?

The strength of global players is growing and the last important market bastion
in the Czech Republic is Seznam with many users impatiently waiting for its API.
Seznam is strong enough and will be able to compete with global companies, but
its weakness lays in relatively slow implementation of innovations. On the other
hand, the cooperation of Seznam with Microsoft shows that the vision of how to
fight competition is clear.

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86
Another bastion of the Czech internet are local social networking sites, whose
position has become weak (for example, the popularity of the Czech portal
Libimseti.cz has fallen) and these sites will have to fight hard with such social
networking sites as Facebook to regain ground.

Market specifics

What makes your local online market unique? Are there any specifics that make it
different from others in the CEE region?

One of the greatest advantages is the popularity of everything that is ‘Czech’.


Czech Google can even build its success on this. The great advantage of the
Czech online market is the high developed measurement here. We can see the
breakthrough in multimedia content monitoring in the Czech Republic and the
measurement of mobile marketing, in which the Czech Republic has a prominent
position in the region.

What the Czech Republic still lacks compared to other countries in the CEE region
is self-promotion. There are already a great number of talented people on the
market, as well as know-how, possibilities, tools for testing and implementing
innovations in communication on the internet. However, unfortunately this is still
not reflected in reality and in the image of the Czech Republic in CEE markets.

Tomáš Búřil
Director of Sales and Marketing, Centrum Holdings

Online advertising market

What are the opportunities and obstacles for the Czech online advertising market?

We can see that the online market in the Czech Republic in 2010 is growing, mainly
due to direct clients. They are investing in the internet a larger part of their ad
budgets than the major clients by media agencies. We expect that the total online
advertising market could reach its pre-crisis level in 2012, the level of 2008. At that
time, we also expect a balanced level of ad spending to online and print media.
Currently, the biggest obstacle to fast growing investment is the great caution
of the largest advertisers and their predilection for traditional media, although,
according to the surveys, the time spent on the internet is growing compared with
declining print media and television.

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop the most in future?

The main trends concern the following areas: media consolidation (into larger
units), a greater emphasis on news quality and local content and the high use

Do you CEE? Czech Republic


87
of email, social media and instant messaging. In the future, search and PPC
advertising will certainly be top of the list, but that does not mean that display
advertising (banners) will lose their meaning, rather the opposite will happen.
These two things, in combination with specialized verticals, will be the main source
of income on the internet in the future, where it will be not just ‘advertising’ but
the entire business chain from addressing client to direct selling.

Global vs. local players

Are the local players present on your local market strong enough to compete with
the global giants? What advantages and strategies do they use in this battle?

The local players are certainly strong enough because of their local content and
more personal ‘Czech’ approach to clients and customers. However, those who
concentrate purely on the technological battle with the global players will not
succeed. It is just a matter of time when users realize this and start demanding
a better service. The successful combination of both the local approach and
content with global technologies and know-how is a strong possibility.

Market specifics

What makes your local online market unique? Are there any specifics that make
it differ from others in the CEE region?

The Czech market is the most developed market in Central and Eastern Europe,
due to the fact that all members of the local joint industry committee SPIR
(the Czech Association for Internet Advertising) have agreed on the same point of
view, how to develop the whole market in a transparent way and how to profile
online advertising. Another specific feature is Seznam and its strong position,
which has a great influence on the market, on business conditions and ‘user
standards’. What normally works in other countries may not necessarily work in
the Czech Republic.

Do you CEE? Czech Republic


Estonia
0.81m
internet users

1. MAINPLAYERS_89
1.1. Top10websitesbyreach_89
1.2. Top10websitesbyaveragetimespentperuser_90
1.3. Topportals_91
1.4. Social networks_92
1.5. Onlineclassifiedadsbyreach_93
2. ONLINEAUDIENCE_94
3. TOOLS_96
3.1. Browsers_96
3.2. Operatingsystems_96
3.3. Search engines_97
3.4. Screen resolutions_97
3.5. Mobiledevices_97
4. BRANCHORGANIZATIONS_98
5. ADVERTISINGNETWORKS_99
6. OPINIONSFROMTHEMARKET_99
89

1. MAIN PLAYERS

1.1. TOP 10 WEBSITES BY REACH

WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH
USERS VIEWS USER USER

1 delfi.ee horizontal portal 511 230 92 743 974 181 04:15:31 63%

2 postimees.ee horizontal portal 372 864 39 573 318 106 03:15:39 46%

3 sloleht.ee horizontal portal 295 111 27 276 398 92 02:04:37 37%

4 elu24.ee horizontal portal 263 236 11 296 684 43 00:52:29 33%

5 rate.ee social network 222 082 157 172 820 708 06:48:28 28%

6 mail.ru horizontal portal 179 646 55 733 268 310 07:44:34 22%

7 ilm.ee weather portal 169 503 3 608 057 21 00:15:22 21%

8 everyday.com horizontal portal 155 634 6 012 955 39 01:14:13 19%

9 buduaar.ee portal 128 562 24 961 666 194 02:20:52 16%

10 fotoalbum.ee photo sharing website 125 826 23 176 640 184 00:46:41 16%

Table 1 Top 10 websites in Estonia by reach level (gemiusAudience, March 2010)

In March 2010 the top 10 ranking in the construction of these sites. While
of Estonian websites included in the delfi.ee develops each of their new
gemiusAudience study was dominated by subsection (women, motoring, etc.)
portals. The most popular one is delfi.ee under one domain, postimees.ee builds
with a reach level of 63%. It is the largest its services on separate domains. One of
internet portal in the Baltic States, which its elements is elu24.ee, ranked fourth
popularity within the Estonian online with a reach level of 33%. They are both
population is steadfast. In comparison very popular among the Estonian online
to March 2009, it increased its reach by audience, as is the printed version of the
1 percentage point, which considering “Postimees” newspaper.
the ever growing number of internet
users in Estonia means that it is The other Eesti Media Group portal
constantly gaining new audience. is sloleht.ee. According to the
gemiusAudience study from March
The next three places are occupied 2010 it had almost 300,000 real users.
by portals belonging to Eesti Media, Similarly to postimees.ee it used to be
the largest media group in Estonia. only an online version of the newspaper,
In March 2010, the most popular one: but now is probably more popular
postimees.ee had a reach level of 46%. than the original. In this day and age,
It used to be the online version of increasingly more people choose to take
a newspaper but with time developed advantage of new technologies instead
into a successful independent portal. of traditional media. Online newspapers
Such huge discrepancy between the first are not only handy, but also save money
two players may be due to differences and time.

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90
The 6th place in the ranking belonged useful links. Moreover, the site offers
to mail.ru, a Russian horizontal portal. its users many contests with attractive
Although the site is only available in prizes. In March 2010 the site recorded
Russian, it had almost 180,000 real users almost 25 million page views.
in Estonia. This is due to the fact that the
Russian speaking part of the population In the top 10 ranking from March 2010
is very active in Estonia. Mail.ru offers there were only two non-portal sites.
its users not only a mail service, but also One of them was the social networking
current news, weather information and service rate.ee. It is the largest and only
various entertaining content. In March important local social networking site
2010 an average user spent almost with a reach level of 28%. However,
7 hours and 45 minutes visiting the because of strong competition from
website making it a leader in terms of global sites, it has been losing its
user activity among Estonian websites. audience and in comparison to March
2009 decreased by 7 percentage points.
With a 21% reach ilm.ee took 7th place
in the ranking. It is a popular weather The ranking was propped up by
portal in Estonia. Thanks to its pleasant fotoalbum.ee, a photo sharing website
design and user-friendliness, more than with a reach level of 16%. Registered
3.6 million page views were generated users can create profiles and publish
on this site in March 2010. The site their photos to show to their friends.
is available in Estonian, Russian and In spite of competition from global sites,
English. fotoalbum.ee is not losing popularity
and its number of real users remains
Everyday.com, a horizontal portal, came constant.
8th , followed by buduaar.ee, a popular
women’s portal with lots of gossip,
lifestyle and diet advice, a forum and

1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER

NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH


REAL USERS USER PER USER

1 mail.ru 179 646 310 07:44:34 22%

2 rate.ee 222 082 708 06:48:28 28%

3 delfi.ee 511 230 181 04:15:31 63%

4 postimees.ee 372 864 106 03:15:39 46%

5 perekool.ee 66 441 137 02:51:17 8%


mangukoobas.
6 65 723 166 02:26:30 8%
lahendus.ee
7 buduaar.ee 128 562 194 02:20:52 16%

8 lastekas.ee 44 917 118 02:12:50 6%

9 sloleht.ee 295 111 92 02:04:37 37%

10 gamefriik.ee 20 971 99 01:56:20 3%

Table 2 Top 10 websites in Estonia by average time spent per user (gemiusAudience, March 2010)

Do you CEE? Estonia


91
In terms of average time spent online material to study different school
per user the leader on the Estonian subjects. In order to gain access to this
online market in March 2010 was material users have to ‘pay’ a certain
mail.ru with almost 7 hours and 45 amount of points/stars.
minutes. Also, users of the social
networking service rate.ee were very 7th place was occupied by buduaar.ee,
active online (6 hours and 48 minutes). mentioned above, and followed by
The subsequent two places were an online-games site, lastekas.ee.
occupied by the horizontal portals As opposed to Mangukoobas,
delfi.ee and postimees.ee. its target group is much younger (it is
the only website in Estonia dedicated
Perekool.ee came in 5th place in to such a young audience). In March
the ranking. It is the most popular 2010 its reach level amounted to 6%
Estonian family portal, where and an average user spent almost
users can find articles dedicated to 2 hours 13 minutes online here. There
pregnant women and parents of are many interactive games that kids
small children. In the forum section, can play not only in order to have fun
users can exchange views or ask other but also to learn.
parents for advice on raising children.
Moreover, there is a marketplace Another horizontal portal in this
for used children’s clothes, toys etc. ranking, sloleht.ee, in March 2010
According to the gemiusAudience had over 295,000 real users
study in March the site’s visitors spent who on average spent 2 hours
more than 2 hours and 50 minutes and 5 minutes on this site. The 10th
online. ranking position was occupied by
gamefriik.ee, a computer games portal
Mangukoobas.lahendus.ee was with almost 21,000 real users who
ranked sixth with a result of 2 hours spent almost 2 hours online a month.
and 26 minutes. It is the number one It is dedicated to an older audience
entertainment platform in Estonia with than Mangukoobas and Lastekas.
mainly flash games for children and Apart from games there is also
young people. Games are available a forum and a video section.
for free and no registration is needed.
Apart from games, there is also a
section where children can find helpful

1.3. TOP PORTALS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 delfi.ee 511 230 181 04:15:31 63%

2 postimees.ee 372 864 106 03:15:39 46%

3 sloleht.ee 295 111 92 02:04:37 37%

4 elu24.ee 263 236 43 00:52:29 33%

5 mail.ru 179 646 310 07:44:34 22%

Table 3 Top 5 portals in Estonia by reach level (gemiusAudience, March 2010)

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92
The most popular portals in Estonia it popular among the Russian-speaking
also occupy leading positions in the Estonian online audience. Postimees.ee
general rankings by reach and by is dedicated mainly to well-educated
average time spent per user. users who visit the site in order to be
The leader in the Baltic States, delfi.ee, up-to-date. In turn, elu24.ee has
provides its users with the latest news a more entertaining profile. It publishes
and what is more it contains a blog, eye-catching news, gossip and info
chat, webmail service and other about mass events taking place around
information related to entertainment the world. It has a gallery and a video
and lifestyle. Moreover, it has section. In March 2010, elu24.ee had
a games section, a forum and a video a reach level of 33%, which gave it the
section, where users can either watch 4th position in the top 5 portals by
available video content or upload reach ranking.
their own. Thanks to these features,
delfi.ee has a devoted audience of With a 37% reach sloleht.ee ranked
over 500,000 users, who according third. In terms of its content the portal
to the gemiusAudience study, is somewhere between postimees.ee
generated more than 92.7 million and elu24.ee. 50% of it is owned by
page views in March. Eesti Meedia and 50% by the Ekspress
Group. It presents business news and
The second player on the Estonian current affairs as well as light-hearted
portals market is postimees.ee. photos and videos. Moreover, it has
“Postimees” is the most popular daily a blog section and a TV guide.
in Estonia. It is considered to have high
quality content and a rather serious The ranking from March 2010 was
profile. Its users can find current closed by mail.ru with a reach level
business, science and sports news, of 22%. In terms of number of page
information about cultural events views, mail.ru is the unquestionable
and much more on the site. Moreover, leader with 310 page views per user
it offers a subscription option. The site a month.
is also available in Russian, making

1.4. SOCIAL NETWORKS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 rate.ee 222 082 708 06:48:28 28%

2 keskus.ee 32 788 19 00:13:05 4%

Table 4 Top 2 social networks in Estonia by reach level (gemiusAudience, March 2010)

Local social networking services are last year by 7 percentage points and
losing popularity in Estonia. They are the 4% reach of keskus.ee makes it
not able to fight with global brands hardly a non-marginal player on the
such as Facebook. The reach level of Estonian online market.
rate.ee decreased in comparison to

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93
Rate.ee is dedicated mainly to young gadgets and information from various
people, who want to stay in touch with sources. Users can trace their friends’
their friends or meet new ones. Users activities, upload photos or create and
can upload their photos and videos, participate in different interest groups.
which can be commented on by their
friends. Moreover, they can join clubs
with people who have the same
interests or create a new one. There
are also games and tests accessible for
registered users only.

The second local social network in


Estonia, keskus.ee, enables its users
to create advanced profiles with
a personalized webpage containing

1.5. ONLINE CLASSIFIED ADS BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 kv.ee 107 239 52 00:54:21 13%

2 cvonline.ee 99 551 60 00:37:43 12%

Table 5 Top 2 online classified ads in Estonia by reach level (gemiusAudience, March 2010)

There are two classified ad sites in service is for free, whereas publishing
gemiusAudience study from March advertisements by employers is only
2010: kv.ee and cvonline.ee. The first possible after paying a fee. The job
one, with a 13% reach, contains over offers are classified into categories to
30,000 real estate ads published by enable its users to find the job they
private users as well as by companies. are interested in quickly and easily.
Moreover, there is a news section
with market overviews, analysis and
advice. From February 2008 users can
follow the kv.ee Index characterizing
the Estonian real estate market.
The website is available not only in
Estonian but also in Russian, Finnish
and English.

In March 2010 cvonline.ee had a reach


level of 12%, 1 percentage point more
than in March 2009. This classified ads
site is dedicated to people searching
for jobs and employers looking for
employees. For job-seekers, the

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94

2. ONLINE AUDIENCE

In Estonia, the gender structure Specialists and office employees


of the online population is not as constituted the most numerous group
balanced as in other CEE markets. in terms of occupation (23%) among
In March 2010, women constituted Estonian internet users in March 2010.
54% of the online population, while Second place belonged to students,
men comprised 46%. Additionally, an who accounted for 20% of the online
average man spent 16 minutes more population. Workers also constituted
online than an average woman. a significant part of the Estonian
online population.
The age structure of the Estonian
online population is quite balanced.
The highest percentage of users (24%)
is in the group of people aged 15-
24. Yet the percentage differences
between particular age groups are not
very significant. In March 2010 the
group of users aged 25-34 accounted
for 23% of the online audience and
the group aged 35-44 years old 22%.
Even the group of internet users over
55 constituted 15%, which is a large
proportion in comparison to other CEE
online populations.

The majority of Estonian internet


users are high school graduates.
According to the gemiusAudience
study from March 2010, they
accounted for 38% of the online
population in Estonia. The next
significant group are users with
a university degree (25%). 15% of the
internet users in Estonia have only
elementary or unfinished high school
education. However, this is the group
that leads in terms of the average time
spent online with almost 13.5 hours
a month.

The majority of Estonian internet


users (30%) live in Tallinn, the capital
of Estonia. In March 2010, the
counties with the largest share of the
internet population were Tartumaa
(14%), Harjumaa (11%), Pärnumaa
(8%) and Ida-Virumaa (7%).

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3. TOOLS

3.1. BROWSERS

Chart 1 Top browsers in Estonia by share of page views generated by internet users who visit Esto-
nian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

3.1. Browsers 7.5 percentage points. The third


most popular browser is Chrome
For many years the leader on the followed by Opera. According to the
Estonian browser market has been gemiusTraffic study, during 2009,
Microsoft Internet Explorer. However, Chrome gained 4 percentage points
the growing popularity of Firefox and this trend remains stable. Another
seems to threaten its position. browser used by Estonian internet
Over the last year MSIE’s share of users is Safari. Although, it may not
page views generated by internet be the most popular browser, its
users who visit Estonian websites popularity is still slowly growing. After
using gemiusTraffic decreased by the first quarter of 2010 its market
12 percentage points, whereas share amounted to 1.5%.
the Firefox’s share increased by

3.2. OPERATING SYSTEMS

Chart 2 Top operating systems in Estonia by share of page views generated by internet users who visit
Estonian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

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97
3.2. Operating systems
3.3. SEARCH ENGINES
Similarly to other CEE markets, the
most popular operating system in
Estonia is Windows XP. In spite of
the fact that its popularity has been
decreasing for the last few years, after
the first quarter of 2010 its market
share (as analyzed by gemiusTraffic)
constituted 67%. The greatest threat
and Windows XP’s replacement is
deemed by some to be Windows
Vista. However, it did not meet
users’ expectations and after initial
Chart 3 Top search engines in Estonia by share of visits made by internet users who visit Estonian
growth has started to lose its share websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)
to Windows 7. In less than a year this
newcomer has managed to grab
a market share of 9%.
3.4. SCREEN RESOLUTIONS
Mac OS X and Linux are slowly gaining
popularity, however their respective
market shares are not significant
(2% and 1%).

3.3. Search engines

There have been no significant


changes over the last 12 months on
the search engine market in Estonia.
Since the second quarter of 2008,
Chart 4 Screen resolutions in Estonia by share of page views generated by internet users who visit
when Google overtook NETI, it has Estonian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)
been the unquestionable leader
with a market share of 72% after the
first quarter of 2010. However, NETI
is no longer losing its market share
3.5. MOBILE DEVICES
and during the last three months
2009 it gained 2 percentage points
and reached a 22% share of the
market. Other search engines, i.e.
MSN, Yandex, Delfi, Yahoo, are not
particularly popular among Estonians
and therefore they do not pose any
threat to the two main players.

3.4. Screen resolutions

The market share of monitors with


a resolution of 1024 x 768 has been Chart 5 Top 5 mobile devices in Estonia by the website-averaged percentage share of page views
decreasing for the last few years. generated by internet users form Estonia who visit Estonian websites using gemiusTraffic
(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10
However, it is still the most popular **to 2010-07-25

Do you CEE? Estonia


98
choice among Estonians. Other and comparing the results from
popular screen resolutions among May 2010 to July 2010, its share has
internet users who visit Estonian sites decreased by more than 8 percentage
using the gemiusTraffic in the first points. The other Apple product that
quarter of 2010 were 1280 x 800 and has lost its market share is the iPod,
1280 x 1024. Also screen resolutions gaining nearly 9% in July 2010. During
of 1440 x 900 and 1680 x 1050 have the same period, the iPad consistently
been gaining popularity in recent gained the interest of users and its
years. 1366 x 768 is a new screen share grew by more than 4 precentage
resolution, which in one year has points within the past two months.
managed to take 3% of the market. The last positions are taken by Nokia
devices, responsible for around 10%
3.5. Mobile devices - models of page views generated by mobile
devices on an average website.
The most popular mobile device
used to connect to the internet on
the Estonian market is the iPhone.
However, it is visibly losing its share

4. BRANCH ORGANIZATIONS

Estonian E-commerce Union Group Ltd., Baumax Estonia OÜ,


Adelor Ltd., Kids First LLC, Autoladu.ee
www.e-kaubanduseliit.ee Portal Ltd., Text Elle OÜ, Maronek Ltd.

Description: E-commerce Union’s


mission is to help develop the e- Estonian advertising agencies union
commerce market in Estonia as well
as to work on unifying standards www.eral.ee
and making the process of shopping
online easier and safer for customers. Description: The Estonian advertising
E-commerce Union was established agencies union was founded in 1998
in spring 2009 and currently has 44 and was formed to protect members’
members. It costs to join as a member. interests, as well as to award the
best agencies annually with the
Members: In June 2010 there were 44 “Kuldmuna” awards. ERAL’s vision is of
members. CDMarket AS, Despal SJ Ltd, a better environment through better
Interbauen Ltd, Neolor Ltd, Kindershop ideas.
Ltd, Baltic IT Solutions Ltd, Onshop
AS, OX Estonia OÜ, Time Squared Members: The Estonian advertising
Ltd, Internet Revolution Ltd, Personal agencies union has very influential
Trade Ltd., Nordwise Ltd., Catwalkers members (approximately 99% of
Ltd., Petsec Trading Ltd., Rattle Ltd., the largest players on the market).
E Boutique Ltd., Helfors Trade Ltd., In June 2010 it had 41 members.
Riveante Ltd., Sopso.com Ltd., IS These agencies include: AGE McCann,
Commercial Ltd., Nesting Project Ltd., AD Angels, Artwerk, Blumberg,
Nature Mobilis Ltd., Finest Fashion Brilliant, DDB Eesti, Direct Group OÜ,

Do you CEE? Estonia


99
Ecwador, Euro RSCG Idea, Inorek & Ogilvy, The Division AS, Tank, Vatson
Grey, TBWA\Guvatrak, Kala Ruudus, Wunderman.
Kontuur Leo Burnett, Plektrum Studio,
Refleks, SAN Korpus JWT, Smile Design
& Advertising, Zavod BBDO, Taevas

5. ADVERTISING NETWORKS

GENERAL CONTACT INFORMATION


FULL NAME HOMEPAGE URL ADDRESS MAIN OFFICE CONTACT
ADDRESS

Roo 42-7, Phone: +372-51-27-125


1 Smartad smartad.ee
Tallinn, Estonia Email: priit.kivinurm@smartad.ee
Phone: +372-66-17-970
Pärnu mnt 147,
2 Adnet adnet.ee Fax: +372-66-17-979
Tallinn, Estonia
Email: adnet@adnet.ee
Endla 69, Phone: +372-61-05-896
3 Klikivabrik klikivabrik.ee
Tallinn, Estonia Email: info@klikivabrik.ee

6. OPINIONS FROM THE MARKET

Meelis Vill
Sales Director, Delfi Estonia

Online advertising market

What are the opportunities and obstacles for the Estonian online advertising
market?

The advertising market is liberal and flexible towards the needs of clients. The
majority of main publishers are flexible regarding specific solutions. One obstacle
could be the high price of specialized solutions which limits the creativeness of
advertisements.

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in the future?

Banners are getting larger. In addition to the day-based price model it is possible to
buy impressions from all major publishers.

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100
Global vs. local players

Are the local players present on your local market strong enough to compete with
the global giants? What advantages and strategies do they use in this battle?

Most of the adspends of large international companies are at the moment being
spent on television. It would be important to find possibilities and arguments to
show television commercials on the internet.

Igor Rõtov
CEO, Äripäev AS:

Online advertising market

What are the opportunities and obstacles for the Estonian online advertising
market on your local market?

We are expecting little growth in internet advertising, which will bring an increase
in its general share. The trend at the moment is to direct advertisements to exact
target groups. Those who have very general target groups will lose their market
share whereas those players who can gain smaller market segments or maintain
positions of niche leaders will win. The testing of innovative solutions and
technical possibilities will continue.

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in the future?

News publishers will primarily try to offer paid content. Mobile applications, iPad
and e-readers are set to become more popular. On the other hand, consumers will
stay conservative and money will not be spent easily.

Global vs. local players

Are the local players present on your local market strong enough to compete with
the global giants? What advantages and strategies do they use in this battle?

Local players have a good position to win this battle. Estonia is too small market
for Google, Microsoft or other major global players to especially invest here. Local
players on the other hand have the substantive and technical expertise, resources
and motivation to strengthen their positions.

Do you CEE? Estonia


Hungary
4,30m
internet users

1. MAINPLAYERS_103
1.1. Top10websitesbyreach_103
1.2. Top10websitesbyaveragetimespentperuser_104
1.3. Topportals_106
1.4. Social networks_107
1.5. Onlineclassifiedadsbyreach_108
1.6. Topfinancesitesbyreach_108
2. ONLINEAUDIENCE_109
3. TOOLS_111
3.1. Browsers_111
3.2. Operatingsystems_112
3.3. Searchengines_112
3.4. Screenresolutions_113
3.5. Mobiledevices_113
4. BRANCHORGANIZATIONS_114
5. ADVERTISINGNETWORKS_115
6. OPINIONSFROMTHEMARKET_117
103

1. MAIN PLAYERS

1.1. TOP 10 WEBSITES BY REACH

WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH
USERS VIEWS USER USER

1 google.hu search engine 3 927 644 - - 08:10:01 91%

2 youtube.com video sharing 2 777 829 - - 03:10:32 65%

3 iwiw.hu social network 2 771 643 1 764 264 408 637 05:24:32 64%
horizontal portal / web
4 startlap.hu 2 287 189 - - 03:00:52 53%
directory
5 freemail.hu mail provider 1 948 731 136 630 017 70 01:54:35 45%

6 facebook.com social network 1 910 368 - - 04:40:15 44%

7 blog.hu blog site 1 902 768 36 799 044 19 00:34:31 44%


Microsoft’s interactiv
8 live.com 1 668 642 - - 00:35:18 39%
services platform
9 origo.hu horizontal portal 1 630 868 55 484 691 34 02:00:06 38%

10 microsoft.com company site 1 563 662 - - 00:10:11 36%

Table 1 Top 10 websites in Hungary by reach level (gemius/Ipsos Audience, March 2010)

The ranking of the most popular service Facebook. Its reach level in
websites in terms of the number March 2009 amounted to only 10%
of real users in Hungary provides and this year it was 44%.
an interesting picture of internet
users. Global websites, such as With a reach level of 53% startlap.
google.hu (91%), youtube.com hu ranked fourth. It is the most
(65%), facebook.com (44%), live. popular local web directory, which
com (39%) and microsoft.com (36%) includes links to social networking
are very popular among Hungarians. websites, articles and all kinds of
Moreover, unlike on many other useful information. Fifth place in
CEE online markets, local horizontal the ranking belongs to the mail
portals and news services are not provider, freemail.hu. Its reach
websites with the highest reach level amounted to 45% in March
level in Hungary. 2010, according to gemius/Ipsos
Audience. It is not only an e-mail
A local site with the largest number service, but also has a gallery where
of real users is a social networking users can upload photos.
service, iWiW.hu, with a reach level
of 64% in March 2010, which gave In 7th place, in terms of reach level,
it third place in the top 10 ranking was blog.hu with 44%. Blog.hu, part
of websites. The second popular of the portfolio of Central European
service of this kind is the global Media and Publishing, is the leading

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104
Hungarian blogging platform with In terms of publisher-level reach of
more than 70,000 active blogs. media portfolios, Sanoma Budapest
(startlap.hu, citromail.hu, nlcafe.hu
The 9th ranking position was held etc.) and Central European Media
by origo.hu, the most popular and Publishing (blog.hu, index.hu,
Hungarian portal with news and velvet.hu etc.) are the next biggest
services (the only one in the top local online media players after
10 ranking). However, its popularity Origo.
is declining and in comparison
to March 2009 its reach level
decreased by 5 percentage points.

When describing the situation on


the Hungarian internet market,
it is crucial to take into account
the ownership structure of the
top websites. From this point
of view it can be easily noticed
that, apart from global players,
the undisputable leader in
terms of reach is Origo Média és
Kommunikációs Zrt., which
is a member of the Magyar Telekom
Group. This company owns 3 sites
in TOP10: iWiW.hu, freemail.hu and
origo.hu.

1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER

NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH


REAL USERS USER PER USER

1 tagged.com 52 464 - 12:07:07 1%

2 battleknight.hu 92 344 - 09:07:11 2%

3 google.hu 3 927 644 - 08:10:01 91%

4 hirlista.hu 31 791 - 07:49:00 1%

5 love.hu 137 860 848 07:36:10 3%

6 myvip.com 1 336 069 756 06:04:55 31%

7 freelove.hu 48 216 - 05:56:54 1%

8 kapu.hu 479 249 - 05:53:53 11%

9 iwiw.hu 2 771 643 637 05:24:32 64%

10 donna.hu 64 932 739 05:17:48 2%

Table 2 Top 10 websites in Hungary by average time spent per user (gemius/Ipsos Audience,
March 2010)

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105
In terms of average time spent online, character with lots of media content.
the indisputable leaders are social In March 2010 their users visited
networking websites. According to the site for almost 6 hours or more
data from gemius/Ipsos Audience, (love.hu – 7 hours 36 minutes).
in March 2010 Hungarian internet
users spent more than 12 hours Other social networking websites in
visiting tagged.com. It is a different the ranking were iwiw.hu, the most
kind of social networking website, popular one in Hungary with almost
which enables its registered users 5 hours and 25 minutes spent per user,
to meet new people through social and donna.hu, for young women with
games, friend suggestions, browsing a result of almost 5 hours and
profiles and group interests. Its reach 18 minutes. The latter provides articles
level amounted to only 1%, which is on women topics, forums with expert
worrying considering the fact that in advice and a chat room. Moreover,
March 2009 it was 3 percentage points visitors can browse the classified ads.
higher. One can join through an invitation
from a member or by permission of
Second place, with over 9 hours, the community if he is a man. What is
belonged to battleknight.hu, a free interesting is the fact that Facebook
online game created by a German was not included in this ranking.
company Gameforge AG. Users can Although it is a very popular social
choose whether they want to play as networking service on the Hungarian
a paladin in a shining armor or a dark online market, its users spent less time
robber knight. There are 33 versions online here than the users of local
of this game available for people from social networking websites.
different countries.
In March 2010, one more Hungarian
An average google.hu visitor spent site with users spending almost 6 hours
over 8 hours on this serch engine site was kapu.hu. In this web directory
in March 2010, and only little less, users can find links to social sites, news
i.e. 7 hours 50 minutes, was spent by services, and websites with diversified
visitors of hirlista.hu. It is a site which topics. According to the gemius/
collects news from several other Ipsos Audience study, its reach level
Hungarian news sites and provides amounted to 11% in March 2010.
link to them. Thanks to the site,
users no longer need to visit many
different news portals, but click on the
most interesting links and are then
redirected to the original site where
the news was first published.

The next three places are occupied by


social networking websites: love.hu,
myvip.com and freelove.hu. They give
users the opportunity not only to stay
in touch with old friends, but also meet
new people. Love.hu and freelove.hu
serve mainly as dating sites, whereas
myvip.com has a more entertaining

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1.3. TOP PORTALS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 startlap.hu 2 287 189 - 03:00:52 53%

2 origo.hu 1 630 868 34 02:00:06 38%

3 index.hu 1 332 998 77 04:59:41 31%

4 port.hu 1 322 314 60 0:34:19 31%

5 nlcafe.hu 1 069 158 - 00:25:51 25%

Table 3 Top 5 portals in Hungary by reach level (gemius/Ipsos Audience, March 2010)

The leader among portals on the engaged audience in terms of time


Hungarian online market is startlap.hu, spent on the site (04:59:41 per
which in fact is a combination user). Apart from news on politics,
of a web directory and a service economics, technology, culture and
aggregator, but is recognized as the sports Index also offers direct access
most popular portal in Hungary with to its community services (Inda) from
a reach level of 53% in March 2010. its front page, e.g. a blogging platform
It enables users to access e-mails, (blog.hu), video (indavideo.hu) and
search engines, social networks, radio photo sharing (indafoto.hu) sites.
programs as well as dictionaries.
The forth position, with 31% reach
The second player in the category is in the ranking, is taken by port.hu.
origo.hu. It is the most popular news Established in 1996, the service aims
portal in Hungary as far as the number to provide culture-oriented content
of users is concerned. In addition to programme and leisure information.
the facilities typical for such portals, Port.hu presents data from official
it contains a section with holiday and primary sources such as TV
offers and, furthermore, it has its channels, cinemas, theatres, and its
own online store and software own content: reviews of films, photos
download section. Moreover, there from concerts, etc. The company
is a search engine that allows one to belongs to PORT-network, a website
browse through the yellow pages and with subsidiaries in Romania, Slovakia,
a telephone book. The reach level Serbia and Croatia. Their main
of this service amounted to 38% in function is providing internet and
March 2010 according to gemius/ other electronic content concerning
Ipsos Audience. cultural offer information.

With a 31% reach, index.hu was the Another significant player in Hungary
third most popular portal in Hungary. is nlcafe.hu, which ranked fifth in the
It is owned by Central European top 5 portals ranking. It is an online
Media and Publishing. Among the magazine for women, which provides
Hungarian portals, it has the most many features typical for such portals,

Do you CEE? Hungary


107
such as a blog platform, online games,
multimedia galleries, online shopping
and a dating service. According to the
gemius/Ipsos Audience study, more
than 1,000,000 users visited the site in
March 2010.

1.4. SOCIAL NETWORKS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 iwiw.hu 2 771 643 637 05:24:32 64%

2 facebook.com 1 910 368 - 04:40:15 44%

3 myvip.com 1 336 069 756 06:04:55 31%

4 hotdog.hu 1 026 115 - 01:30:22 24%

5 network.hu 677 737 - 00:19:38 16%

Table 4 Top 5 social networks in Hungary by reach level (gemius/Ipsos Audience March 2010)

With regard to social network Another important player is myvip.com,


communities, the leader is the local with a reach level of 31%. In March
website iWiW.hu, which dominated 2010, the site was visited by over
websites participating in the gemius/ 1,300,000 real users. In comparison
Ipsos Audience study. In March 2010, to March 2009, its reach decreased
it attracted an audience of over 2.7 by 2 percentage points. Like iWiW.
million real users, which is 100,000 hu, myvip.hu is an exclusive network
more than a year ago. However, where users can only sign in when
the reach level fell by 8 percentage they are invited by a member.
points. Apart from the typical Myvip.hu is run by a company
networking features, it also provides specializing mainly in online
its users with classified ads. A huge entertainment, Generál Média Kft.
advantage of iWiW.hu is easy access Great attention is paid to the site’s
from mobile devices. media content, therefore, users are
able to share their photos and videos.
Although there are many social Moreover, the service publishes video
networking sites in Hungary, for material itself, also in HD format. In
a long time there was no significant terms of monthly average time spent
competition to iWiW.hu. However, online per user, myvip.hu ranked first
the past year has shown major with more than 6 hours.
growth in the reach level of
Facebook. In March 2009, its market In 4th place we find hotdog.hu,
share slightly exceeded 10%, but a Hungarian social networking
a year later it reached a level of 44%. website for young people. Users are

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108
able to communicate with each other, They can share photos, videos, links
play games, read news or search for a and articles. However, its market
job. Moreover, the site offers a dating share decreased by 8 percentage
service, forums and blogs. points in comparison to March 2009.

The ranking is propped up by


network.hu, another Hungarian social
networking website, whose users can
join various communities and browse
through advertisements.

1.5. ONLINE CLASSIFIED ADS BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 expressz.hu 1 065 524 105 01:09:21 25%

2 apronet.hu 339 798 10 00:09:27 8%

3 onlineapro.hu 177 173 21 00:14:04 4%

Table 5 Top 3 online classified ads in Hungary by reach level (gemius/Ipsos Audience, March 2010)

The main player on the classified ads onlineapro.hu with a reach level of 4%.
market in Hungary is expressz.hu, According to information on the site it
with a reach level of 25%. A year ago stores more than 300,000 ads. The site
its reach level was 1 percentage point offers its users free registration and
higher. Advertisements are grouped online ads.
into 31 categories e.g. games, clothes,
job offers, cars, real estate. According
to the gemius/Ipsos Audience study,
the second most popular site with
classified ads, with a reach of 8%, was
apronet.hu. Third place belonged to

1.6. TOP FINANCE SITES BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME REACH


USERS USER PER USER

1 index.hu-Gazdaság 487 130 8 00:15:33 11%

2 vg.hu 318 474 8 00:08:54 7%

3 portfolio.hu 315 414 34 01:45:16 7%

Table 6 Top 3 finance sites in Hungary by reach level (gemius/Ipsos Audience, March 2010)

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The most popular service dedicated Second place is taken by vg.hu, the
to the economy in terms of reach online version of the newspaper
level is the subsection of the famous Világgazdaság, covering economic
horizontal portal index.hu, owned and financial news. In March 2010 the
by Central European Media and service had more than 310,000 real
Publishing(CEMP). With almost users which gave it a reach level of
500,000 internet users it reaches 11% 7%. However, compared to last year
of the online audience in Hungary. a drop of 1 percentage point has been
observed.
Portfolio.hu, also owned by CEMP,
reaches 7% of the audience who are
interested in finance. They spend
an average of more than 1 hour
45 minutes on the site. Portfolio.hu is
an economic portal with information
regarding, amongst others, finance,
stocks and exchange rates. Although
third as far as the number of real users
is concerned, , the website leaves both
its competitors behind in the number
of page views per user.

2. ONLINE AUDIENCE

The online population in Hungary attractive medium for more mature


is very balanced in terms of gender persons.
structure. In March 2010 the majority
of Hungarian internet users were Hungarian internet users are
men, but they constituted only 50.2% relatively well-educated. Although
of the online population, so their only 7% had graduated from
predominance is not impressive. Men, a university, this is still a good
however, spent an average of 6.5 result, especially after taking into
hours more online than women (58 consideration the age structure,
hours compared to 51.5). which is dominated by young internet
users. People with at least secondary
Like in other CEE markets, school education constituted 65%
Hungarian internet users are very of the Hungarian online population.
young. According to the gemius/ Only 1% of the internet audience
Ipsos Audience study, in March 2010 had incomplete elementary school
individuals aged 15-24 were the education in March 2010.
majority and constituted 28%. 25%
constituted users aged 25-34. People The majority of internet users in
over 55 years accounted for 13% of Hungary live in big cities and larger
the audience and the percentage towns. According to the study carried
is growing, which means that the out by Gemius and Ipsos, Budapest
internet is becoming an even more (the capital city) alone is home to as

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111
much as 21% of Hungarian internet together constituted 31%. People who
users as of March 2010. A further 16% are not professionally active did not
live in cities with more than 100,000 constitute an important proportion of
citizens. A significant proportion of the online market; however, they are
the online audience come from small undoubtedly the most active internet
towns and villages and accounted for users. In terms of average time spent
22% of the online population. online per user they were far ahead of
any other group.
In March 2010, students
constituted the largest group of
internet users (25%) in Hungary.
Another significant proportion
of internet users are specialists
(graduates) and qualified workers who

3. TOOLS

3.1. BROWSERS

Chart 1 Top browsers in Hungary by share of page views generated by internet users who visit Hunga-
rian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

3.1. Browsers during the first three months of the


2010 has gained 2 percentage points.
Mozilla Firefox has been the most This trend seems to be continuing.
popular browser in Hungary since the
beginning of 2009, when it overtook 3.2. Operating systems
Microsoft Internet Explorer. In the
first quarter of 2010 its market share The most popular operating system in
constituted 54%, whereas the MIE Hungary was Windows XP, with a 76%
constituted 37%. The third most share in the first quarter of 2010.
popular browser is Chrome, which However, its popularity has been
has been gaining an advantage over decreasing with the introduction of
Opera since the end of 2009 and Windows 7, which since then has

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3.2. OPERATING SYSTEMS

Chart 2 Top operating systems in Hungary by share of page views generated by internet users who
visit Hungarian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

been gaining an ever larger share the first quarter of 2010. Bing, which
of the market and is catching up ranked second, contributed to only
with Windows Vista. After the first 1.5%.
quarter of 2010, the market share
of Windows 7 amounted to 9.5%, 3.4. Screen resolutions
which ranked second among the top
operating systems in Hungary. Mac OS Although the market share of 1024 x
X and Linux have been slowly gaining 768 monitor screen resolutions has
popularity, but neither of them cover decreased, it is still the most popular
more than 1% of the market. choice among Hungarians. Other
popular screen resolutions in the first
3.3. Search engines quarter of 2010 were 1280 x 800 and
1280 x 1024. The screen resolution
Like in other CEE countries, the of 1440 x 900 as well as 1366 x 768
indisputable leader of the search have become more popular in recent
engine market in Hungary was Google years.
winning a market share of 97% in

3.3. SEARCH ENGINES

Chart 3 Top search engines in Hungary by share of visits made by internet users who visit Hungarian
websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

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3.4. SCREEN RESOLUTIONS

Chart 4 Screen resolutions in Hungary by share of page views generated by internet users who visit
Hungarian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

3.5. Mobile devices - models device was Nokia 5800. Its users
generated 5% of the mobile traffic on
According to the gemiusTraffic study, the average Hungarian website using
the most popular mobile device gemiusTraffic. Other devices in the
used to access the web in Hungary is top 5 ranking were iPod and Nokia
iPhone, which in July was responsible E51.
for 36% of page views generated
by mobile devices on the average
website. Another Apple product,
iPad, had a 6% share, however, its
popularity is growing and from May
to July 2010 it gained 2 percentage
points. The third most popular mobile

3.5. MOBILE DEVICES

Chart 5 Top 5 mobile devices in Hungary by the website-averaged percentage share of page views
generated by internet users from Hungary, who visit Hungarian websites using gemiusTraffic
(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10
**to 2010-07-25

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4. BRANCH ORGANIZATIONS

IAB Hungary a self-regulating body, was founded


in 2001 by Hungarian internet
www.iab.hu content providers, including Index
and [origo], in order for the content
Description: IAB Hungary was providers to be able to participate in
established in November 2008 the development of the Hungarian
as a division of the Hungarian internet business market with
Advertising Association. There are 48 verified and professionally supported
founder members. The organization commitments using the tools of self-
is concentrated on: increasing the regulation.
awareness, usage and recognition
of digital marketing and advertising MTE’s aim is to ensure that the
solutions; assisting in the development internet is regulated with as little
of the digital marketing and digital intervention as possible with emphasis
media industries; lobbying at national on self-regulation. To this aim, MTE
and international forums for-profit, has created a professional code of
non-profit and governmental internet content provision and a code
organizations; creating a common view of ethics describing the generally
(platform) in the industry by means of accepted system of ethical norms
constant and credible communication for Hungarian content provision.
with market players, various In order to decide about disputed
organizations, press and municipalities matters, the association established
connected to the industry. a professional decision court, whose
decisions are accepted by members of
Members: agencies and sales houses MTE as binding.
(e.g., Adaptive Media, Carnation,
EURO RSCG, Evomedia, Kirowski, Members: publishers (e.g. T-Online
Onlinemarketing.hu, Fastbridge, Magyarország Rt., Index.hu Zrt.,
MEC Interaction), publishers (e.g. Népszabadság Online, www.napi.hu
Axel Springer, Central European Online Kft., Kurt Lewin Alapítvány,
Media and Publishing, Expressz, Menedzsment Fórum Kft., Colorplus
Google, Magyar Telekom, MTM-SBS Kft.) service providers (e.g. Neumann
– TV2, Origo, Sanoma Budapest), János Digitális Könyvtár és Multimédia
research agencies (e.g. AGB Nielsen Központ Kht.)
Médiakutató, Gemius Hungary, GFK
Hungária Piackutató Intézet, Medián,
NRC, Szonda Ipsos Piackutató), Association of Communications
advertisers (CIB Bank, MOL, Vodafone) Agencies in Hungary (MAKSZ)
and technology service providers (e.g.
Adverticum). www.maksz.com

Description: The Association of


Association of Hungarian Content Communications Agencies in Hungary
Providers (MTE) (MAKSZ) was set up by 13 leading
advertising agencies in Hungary in May
www.mte.hu 1995. The main objective was to set
up an organization especially focused
Description: The Association of on the interests of agencies.
Hungarian Content Providers (MTE), The MAKSZ is member of

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115
the European Association of Telex Kft., Lauritzen Marketing Kft.,
Communications Agencies (EACA), Café Group, eMission, Initiative Media
which is the highest level of agency Hungary, Mediaedge:cia Hungary Kft.
representation in the world. It can Media Planning Group Hungary Kft.).
be assisted by a number of foreign
experiences in the domestic
processing industry, the development
of marketing communication.

Members: There are already


51 members and the number is
increasing. Agencies include: Euro
RSCG Budapest Zrt., Ogilvy&Mather
Reklámügynökség Budapest Zrt.,
Young & Rubicam Budapest, Createam
Promotion, HPS BTL Solutions, Human

5. ADVERTISING NETWORKS

GENERAL CONTACT INFORMATION


FULL NAME HOMEPAGE URL REACH MAIN OFFICE CONTACT
ADDRESS ADDRESS

Adaptive Media Sales


1037 Budapest, Szépvölgyi Phone:+36-1-577-4050
1 House adaptivemedia.hu 93%
út 33. Phone:+36-1-577-4051
Sales Contact Kft.
Phone:+36-1-371-3500
1117 Budapest, Gábor Dé-
2 Origo Zrt. corp.origo.hu 91% Fax:+ 36-1-371-3805
nes u. 2. „D”
Email: adhouse@origo.hu
1037 Budapest, Montevideo Phone:+36-1-437-1100
3 Sanoma Budapest Zrt. sanomabp.hu 76% u. 9. Fax:+36-1-437-3737
Flórián Udvar Email: sanomabp@sanomabp.hu
Phone:+36-1-555-7000
CEMP Sales House,
4 cemp.hu 71% 1033 Budapest, Flórián tér 1. Fax: +36-1-231-0862
Index.hu Zrt.
Email: sales@cemp.hu
1097 Budapest, Phone:+36-1-323-0360
5 Evomedia evomedia.hu 68% Vaskapu utca 10-14. D Fax:+36-1-323-0361
épület Email: sales@evomedia.hu
1094 Budapest, Tűzoltó u. Phone:+36-1-299-0318
6 GMedia - Habostorta habostorta.hu 58%
59. Fax:+36-1-299-0319
Actual Media Sales
Phone: +36-1-998-0164
7 House actualmedia.hu 56% 1201 Budapest Pacsirta u.77.
Email: info@actualmedia.hu
Actual 77 Media Kft
1053 Budapest Ferenciek
8 Generál Média Kft. ringier.hu 53% Email: sales@generalmedia.hu
tere 7-8. III. lh. I/8.
Kolozs Krisztina
1122 Budapest
9 Axel Springer Online axelspringer.hu 38% Phone: +36-1-488-5564
Városmajor utca 11
Email: krisztina.kolozs@axelspringer.hu
Lazók Rómeó
www.lighthouse- 1024 Budapest Margit krt.
10 Lighthouse Média Kft. 34% Phone: +36-30-456-3907
media.hu 15-17.
Email: romeo.lazok@lighthousemedia.hu

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117

6. OPINIONS FROM THE MARKET

István Kürti
Director of Sales, Sanoma Budapest

Online advertising market

What are the opportunities and obstacles for the Hungarian online advertising
market?

The growth rate of internet penetration has slowed down recently, thus it is not
the primary engine of the industry’s growth anymore. Nowadays the greatest
opportunities are in displaying new and creative types of advertisements and
enhancing the effectiveness of ads. To implement such changes the following
actions should be taken:
• clients should provide creatives congruent with website themes
• measurement standards should be developed effectively
• the potential of media convergence, e.g. ‘augmented reality’ should be used
more intensively
• effective targeting of video advertisements, sponsored videos and others
should be applied

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in the future?

Development might be expected after the falloff of the economic crisis mainly by
those market segments that have suffered from an economic downturn the most
(for example transport or real estate). Generally speaking, advertisers put more
emphasis than ever on measurability and return on investment, thereupon the
share of the internet in total advertising expenditure is growing.

Global vs. local players

Are the local players present on your local market strong enough to compete with
the global giants? What advantages and strategies do they use in this battle?

Generally speaking, though globalization unequivocally supports large,


international companies, local content is still important for users. Due to this
fact, Hungarian users can be found through domestic media. Sales teams taking
this approach can provide the same level of services as the larger companies
represented by sales houses.

Péter Novák
Chairman, IAB Hungary

Online advertising market

What are the opportunities and obstacles for the Hungarian online advertising
market?

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118
As a result of changes in consumer media usage online/digital communication
itself is seen to be increasing, and it is not possible to avoid the processes that the
economy and advertising market is going through.

Considering the fact that communication spending has decreased significantly in


the last two years, it has also had a negative influence on online market growth
and also decelerated it. The dynamics over the last few years are in parallel
with the economic recovery and the visible growth of consumption. Also, the
restructuring of the online market will not stop, so trends are influenced by
measurability and efficiency most.

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in the future?

Advertisers are increasingly more interested in solutions that are capable of


generating sales directly and this affects the growth of targeting needs and also
transforms pricing and financial accounting.

The expansion of both online shopping and e-commerce brings new advertisers to
the market. Besides different direct communication environments, the constant
development of online CRM solutions, the improvement of database construction
and the growing appreciation of the data obtained are the most important trends.
Furthermore, the significant strengthening of mobile media is expected.

Global vs. local players

Are the local players present on your local market strong enough to compete with
the global giants? What advantages and strategies do they use in this battle?

When considering the role of global market players it is worth noting that
nowadays those who provide services for domestic users without conducting any
significant local operations form a great threat to Hungarian players in fields like
searching, video hosting and social media.

On the other hand, while the search market is dominated by the leading global
service provider, the position of the local social media market leader has not been
really threatened. The video market has gone through remarkable changes, the
‘match’ has not finished. Overall, global competition will cause more difficulties for
local market players during the next few years.

Market specifics

What makes your local online market unique? Are there any specifics that make it
different from others in the CEE region?

While comparing the Hungarian online market with other CEE countries many
similarities as well as differences can be found. Online markets in this part of the
world are rather small, internet penetration oscillates at a medium level and local
competition is strong.

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119
Taking into consideration the development of the online advertising market,
Hungary belongs to the CEE leaders, but in a certain sense it is still rather
conservative.

Gabor Tóth
Head of Digital of Omnicom Media Group (OMG)

Online advertising market

What are the opportunities and obstacles for the Hungarian online advertising
market?

The biggest obstacle is the prolonged financial crisis and economic downturn.
However, this is also an opportunity, as investors are turning to effective and cost
efficient channels to use their limited marketing budgets.

Dominating trends

What are the recent trends on your local online market? What branches are
expected to develop most in the future?

The two main areas receiving a lot of attention are search and social media.
Search is finally getting the recognition it deserved as advertisers are learning how
to use this channel best. Social media is at the stage of experimentation: although
many companies feel the urge to use it, many mistakes are being made. The third
area which will experience intense growth is video advertising.

Global vs. local players

Are your local market players strong enough to compete with the global giants?
What advantages and strategies do they have in this battle?

Local language in non-user generated content is the key, so global players are not a
significant threat in this area. However, in other fields it is clear that local players
are struggling to keep up with the pace of development dictated by the global
players: Google search, Facebook, YouTube are either already the undisputable
winners in their own segment or they are going to be one in the near future.

Market specifics

What makes your local online market unique? Are there any specifics that make it
different it from others in the CEE region?

The importance of social network sites and the way Hungarians use them.
We love to share photos, videos with our friends – and we do it with more
commitment than other countries in the region. It almost seems like we preferred
to meet up online.

Do you CEE? Hungary


Latvia
1.20m
internet users

1. MAINPLAYERS_121
1.1. Top10websitesbyreach_121
1.2. Top10websitesbyaveragetimespentperuser_122
1.3. Topportals_123
1.4. Social networks_124
1.5. Onlineclassifiedadsbyreach_125
1.6. Topfinancesitesbyreach_126
2. ONLINEAUDIENCE_126
3. TOOLS_128
3.1. Browsers_128
3.2. Operatingsystems_129
3.3. Search engines_129
3.4. Screen resolutions_129
3.5. Mobiledevices_130
4. BRANCHORGANIZATIONS_130
5. ADVERTISINGNETWORKS_132
6. OPINIONSFROMTHEMARKET_133
121

1. MAIN PLAYERS

1.1. TOP 10 WEBSITES BY REACH

WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH
USERS VIEWS USER USER

1 inbox.lv horizontal portal 792 531 245 041 702 309 06:17:28 66%

2 draugiem.lv social network 739 786 1 249 803 404 1689 24:20:44 62%

3 delfi.lv horizontal portal 665 600 98 698 672 148 03:33:09 55%

4 ss.lv classified ads 598 001 241 360 669 404 03:21:33 50%

5 tvnet.lv horizontal portal 450 903 37 609 480 83 02:29:12 38%

6 apollo.lv horizontal portal 416 432 36 821 077 88 01:54:59 35%

7 one.lv social network 337 475 277 799 261 823 10:03:18 28%

8 1188.lv information service 296 934 3 852 033 13 00:10:42 25%

9 zip.lv classified ads 289 721 18 423 529 64 00:43:20 24%

10 zl.lv information service 277 005 3 063 874 11 00:11:37 23%

Table 1 Top 10 websites in Latvia by reach level (gemiusAudience, March 2010)

The most popular websites in terms despite strong competition from


of reach can be classified into four global social networks, the position
categories. Similarly to other CEE of the local ones remains very strong.
markets, the leadership belongs to The unquestionable leader, with
horizontal portals. In March 2010, a reach level of 62%, is draugiem.lv.
number one in the ranking was inbox.lv, Its growing popularity can be
a mail service that evolved into a confirmed by the fact that its reach
horizontal portal with a reach level level increased by 3 percentage points
of 66%. However, in comparison to during the last twelve months.
March 2009, its reach decreased by 3 The other popular social network
percentage points and this is not an in Latvia in March 2010 was one.lv.
exception; the same situation applies It had a reach level of 28% (still,
in case of other horizontal portals. The regarding one.lv this indicator has
reach level of delfi.lv, which ranked dropped) and over 300,000 real users.
third, dropped by 2 percentage points Unlike draugiem.lv, which is visited
(from 57% to 55%) and tvnet.lv and mainly by Latvians, one.lv is more
apollo.lv had reach levels 3 percentage popular with Russian users.
points lower than the previous year
(38% and 35%, respectively). What is also characteristic about the
Latvian online market is the high
The second significant group within popularity of online classified ads
the Latvian internet market are social services. With a reach level of 50%,
networking services. Interestingly, ss.lv occupied the fourth position in

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122
the ranking of top websites. Zip.lv, websites, 1188.lv also contains useful
whose introduction to the market in information on different means of
June 2008 was a great success, comes transport, an entertainment section
9th. However, its popularity seems and job offers.
to have reached its peak and during
the last year, its reach level decreased In August 2009 another information
by 1%. service, zl.lv, was included in the
gemiusAudience study with a reach
The fourth significant website category level of 15%, which soon started to
in Latvia is the group of information grow. In March 2010 its reach level
services, which enable users to search amounted to a surprisingly high 23%.
for company services, shops or places The site is organized in a very simple
on a map. The most popular Latvian way, all available information is
information service is 1188.lv with divided into nine categories together
a reach level of 25% in March 2010 with an additional “most wanted” one.
which gave it the 8th position among Apart from Latvian, its users can also
the most popular websites by choose the Russian or English version
reach. Apart from the normal kinds of the website.
of services offered by this sort of

1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER

NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH


REAL USERS USER PER USER

1 draugiem.lv 739 786 1,689 24:20:44 62%

2 one.lv 337 475 823 10:03:18 28%

3 inbox.lv 792 531 309 06:17:28 66%

4 boomtime.lv 150 902 285 04:05:33 13%

5 delfi.lv 665 600 148 03:33:09 55%

6 ss.lv 598 001 404 03:21:33 50%

7 tvnet.lv 450 903 83 02:29:12 38%

8 sportacentrs.com 142 797 99 02:26:17 12%

9 mail.ru 246 811 93 02:17:16 21%

10 spoki.lv 211 600 120 01:59:51 18%

Table 2 Top 10 websites in Latvia by average time spent per user (gemiusAudience, March 2010)

The first two places in the top 10 acquaintances online. An average user
websites by average time spent per of the most popular social networking
user are occupied by social networking service in Latvia, draugiem.lv, spent
sites. Similarly to people from other more than 24 hours visiting the
CEE countries, Latvians enjoy spending website in March 2010. Users of one.lv
long hours socializing with their are not so much active online, but

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123
still spent more than 10 hours on the internet audience, but also their
the site. Another social networking visitors spend much time online. In
service in the ranking, boomtime.lv, March 2010 an average user of ss.lv
occupied fourth place. However, in spent 3 hours and 22 minutes on the
terms of average time spent per user website, placing it on the 6th position
it was far behind the two leaders, with in the ranking.
approximately 4 hours spent visiting
the site in March 2010. The ninth place in the ranking was
occupied by mail.ru, which is a Russian
A relatively strong position in the horizontal portal. The site is very
ranking is held by horizontal portals. popular in all the Baltic states due to
Inbox.lv, which has the greatest reach the fact that the Russian minorities
level in Latvia, ranked third, with 6 account for a significant part of the
hours and 17 minutes spent online Baltic population. In Latvia, mail.
by an average user a month. The ru had almost 250,000 real users in
users of the second portal, delfi.lv, March 2010, who on average spent
spent more than 3.5 hours reading over 2 hours there.
the news published on the site in
March 2010. Only one hour less online The ranking, based on the results
was spent by visitors of tvnet.lv and obtained with the gemiusAudience
sportacentrs.com. The latter is a sports study conducted in March 2010, was
portal offering its users current news propped up by spoki.lv, a Latvian
concerning sports events and the entertainment platform with
private lives of sportspeople. Apart humorous articles, photos and
from articles there are also a video videos for young people seeking
section, a gallery and a forum. entertainment. It had a reach level of
18% and an average user spent almost
It has already been mentioned that 2 hours on the site in March.
classified ads services are very popular
on the Latvian online market. As
can be seen in the top 10 ranking by
average time spent per user, they
are not only visited by a large part of

1.3. TOP PORTALS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 inbox.lv 792 531 309 06:17:28 66%

2 delfi.lv 665 600 148 03:33:09 55%

3 tvnet.lv 450 903 83 02:29:12 38%

4 apollo.lv 416 432 88 01:54:59 35%

5 diena.lv 218 093 22 00:34:49 18%

Table 3 Top 5 portals in Latvia by reach level (gemiusAudience March 2010)

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124
The top 5 portals on the Latvian providers, but it also has an online TV
online market also occupy the leading service and co-operates with major
positions in the general rankings. offline stations in order to manage
In March 2010, the leader was inbox.lv, the best video content. Similarly to
which is not a typical horizontal delfi.lv, the portal underwent a facelift
portal and differs from similar sites in last year and created a mobile version,
neighboring countries. Usually, they m.tvnet.lv. Tvnet.lv had, according to
are news-oriented services, whereas the gemiusAudience study from March
inbox.lv offers a free e-mail service and 2010, a reach level of 38%.
is an entertainment-style website with
a variety of games and jokes accessible Another important player among
after registration. Also, it publishes Latvian portals is apollo.lv with more
news from apollo.lv and has its own than 415,000 real users. The portal
social networking portal - amigos.lv. is a typical news publishing site with
diversified subdomains. Its strong side
The second player in this category is its video content with a possibility
is delfi.lv, which provides its users to watch TV programs in real time.
with the latest news and in addition Apollo.lv collaborates with some of
has a blog, chat and webmail service the smallest sites within their media
and info related to entertainment group.
and lifestyle. Moreover, it has an
entertainment channel with games In the fifth place is diena.lv,
and a forum and a video section, a horizontal portal with a reach level of
where users can either watch available 18%. Since it is an online version of the
video content or upload their own. It respected daily newspaper, it focuses
was one of the first portals to have its mainly on high quality text content.
own mobile versions: m.delfi.lv, i.delfi.lv. Moreover, it offers paid content from
Recently it has had a facelift, but this its daily newspaper where users can
did not stop its decreasing reach level, find more analytical articles. Apart
which in March 2009 accounted for from that, it develops user-generated
57%, and a year later - 55%. content. In comparison to March 2009
the number of its real users grew
The third place belonged to tvnet.lv. by 30,000 and its popularity is still
It is one of the best local news growing.

1.4. SOCIAL NETWORKS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 draugiem.lv 739 786 1689 24:20:44 62%

2 one.lv 337 475 823 10:03:18 28%

3 irc.lv 152 613 40 00:41:19 13%

4 boomtime.lv 150 902 285 04:05:33 13%

5 orb.lv 137 362 19 00:20:20 11%

Table 4 Top 5 social networks in Latvia by reach level (gemiusAudience, March 2010)

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125
The most popular social networking Amongst the services with the highest
service in Latvia is draugiem.lv, the reach level, there also are irc.lv and
second most popular Latvian website boomtime.lv with a reach level of
in terms of reach. From March 2009 13%. The first, like one.lv, is popular
to March 2010 it gained over 70,000 among Russian speaking internet
new real users, thereby increasing its users. It is dedicated to internet users
reach level by 3 percentage points. aged 15-24, who can search for their
Moreover, as mentioned before, friends, use chat rooms or visit the
draugiem.lv is also leading in the blog section. Boomtime.lv has over
ranking of websites by average time 150,000 real users and although in the
spent online. Its success can be put ranking it claimed 4th place, in terms
down to a complex and well-managed of average time spent online it was far
platform, mixing the concepts and ahead of irc.lv.
functionalities of global brands such as
Facebook and Twitter. What is more, The last site in the ranking is orb.lv,
it is still developing and trying to reach a non-typical social networking site
new audience for example by a recent with a reach level of 11%. Its users are
introduction of an option to create not so much into meeting their friends
company profiles. online but they would rather listen
to music or visit the blog section and
Another important player is one.lv, orb.lv gives them this possibility. Most
which is especially popular among of its users are 18-25 years old.
Russian-speaking users. According to
the gemiusAudience study in March
2010 its reach level accounted for
28%. In contrast to draugiem.lv, one.lv
is losing traffic. In comparison to
March 2009, its reach level declined by
5 percentage points.

1.5. ONLINE CLASSIFIED ADS BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 ss.lv 598 001 404 03:21:33 50%

2 zip.lv 289 721 64 00:43:20 24%

3 reklama.lv 197 237 58 00:31:41 16%

Table 4 Top 3 online classified ads in Latvia by reach level (gemiusAudience, March 2010)

The indisputable leader when it comes in Latvian and Russian. The second
to the classified ads online market place among the classified ads sites in
in Latvia is ss.lv with a reach level March 2010 belonged to zip.lv, a relatively
of 50%. The ads are classified into new player with a reach level of 24%.
12 categories and are available It started from the draugiem.lv

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platform and in a short time became
a successful player on the Latvian
internet market. In the third place
is reklama.lv with a 16% reach and
almost 200,000 real users.

1.6. TOP FINANCE SITES BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USERS USER

1 financenet.lv 155 740 10 00:11:52 13%

2 db.lv 95 122 24 00:32:41 8%

Table 6 Top 2 finance sites in Latvia by reach level (gemiusAudience, March 2010)

According to the data from the as did the number of users, by more
gemiusAudience study, the most than 20,000.
popular financial sites in Latvia are
financenet.lv and db.lv. The first one The second significant player on the
works as a part of tvnet.lv, a popular finance sites market in Latvia in March
Latvian horizontal portal that ranked 2010 was db.lv with a reach level
fifth in the top 10 websites by reach of 8%. It is the digital version of the
ranking. However, financenet.lv business newspaper “Dienas Bizness”,
has its own logo and a separate but its content is original. Users are
domain and its results are measured not only able to read online news,
independently. In March 2010 it but also subscribe and get the printed
had a reach level of 13% and over version of the newspaper and gain
150,000 real users. Financenet.lv access to archives with older articles in
publishes articles concerning business PDF format. In terms of average time
and finance. It has a special section spent online per visitor, db.lv beats
devoted to foreign financial markets. financenet.lv. Its users on average
In comparison to March 2009 its reach spent more than half an hour visiting
level decreased by 3 percentage points this site in March 2010.

2. ONLINE AUDIENCE

According to the gemiusAudience hours and 20 minutes) than men, who


study in March 2010, women surfed the web for almost 30 hours
constituted 52% of the online and 54 minutes.
population, while men comprised
48%. Furthermore, women on average Similarly to other CEE online
spent more time online (around 32 markets, Latvia is also dominated

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by young people. According to the Majority of internet users in
gemiusAudience study, in March 2010 Latvia live in large cities (72%). In
people aged 15-34 accounted for 53% March 2010, 39% of the Latvian online
of the online population. The highest population lived in the capital city
percentage of users (28%) are people (Riga) and a further 10% in the Riga
aged 15-24. region. 8% of Latvian internet users
live in small towns and 10% in villages.
In comparison to March 2009 the People in Daugavpils spent the least
proportion of people over 55 years amount of time online - on average
old grew by 2 percentage points. It has only 23 hours and 17 minutes per user
been observed that not only more a month.
older people have become interested
in the internet, but also it can be The most numerous group in
observed that the Latvian internet is terms of occupation (22%) among
maturing together with its users. Latvian internet users in March 2010
was ‘specialists and office employees’.
Most Latvian internet users have The second force within the internet
a higher education (29%) or have users were students, who were
finished vocational schools (29%). also among the leaders in terms of
The next significant group includes activity per user, with 32 hours and
high school graduates and constitutes 42 minutes. Another active group was
19% of the Latvian online population. farmers. In March 2010 they accounted
for only 1% of the researched internet
A mere 13% of internet users in Latvia audience, however, during this month
have only elementary or incomplete each of these users spent over 36
high school education. However, hours surfing the web. Marginally less
this group leads in terms of average time was spent online by unemployed
time spent online with almost 40 hours people, who in March accounted for
a month. 9% of the internet audience in Latvia.

3. TOOLS

3.1. BROWSERS

Chart 1 Top browsers in Latvia by share of page views generated by internet users who visit Latvian
websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

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3.1. Browsers
3.2. OPERATING SYSTEMS
The most popular browser in Latvia
is Firefox with a market share of 53%.
At the beginning of 2009 it overtook
Microsoft Internet Explorer, whose
popularity has been declining and in
the first quarter of 2010 had a market
share of 34%. The third most popular
browser is Chrome followed by Opera.
According to the gemiusTraffic study,
during the three first months of 2010
Chrome gained 2 percentage points
and the trend is sustained. Chart 2 Top operating systems in Latvia by share of page views generated by internet users who visit
Latvian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

3.2. Operating systems

The leader of the operating systems


market in Latvia is Windows XP with
3.3. SEARCH ENGINES
a 76% share in the first quarter of
2010. However, its popularity has
been decreasing since the introduction
of Windows Vista. Windows 7 was
launched in Latvia in the second
quarter of 2009 and since then it has
been gaining an ever larger share of
the market and is catching up with
Windows Vista. After the first quarter
of 2010 its market share accounted
for 9%. Mac OS X and Linux are slowly
gaining popularity, but still each of
Chart 3 Top search engines in Latvia by share of visits made by internet users who visit Latvian websi-
them covers less than 1% of the tes using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)
market.

3.3. Search engines

Similarly to other CEE online search


3.4. SCREEN RESOLUTIONS
engines markets, the Latvian one is
dominated by Google with a market
share of 97% in the first quarter of
2010. The second place belonged to
Yandex and the third to MSN, both
of them had a market share of only
about 1%.

3.4. Screen resolutions

Although the market share of 1024


x 768 monitor screen resolutions Chart 4 Screen resolutions in Latvia by share of page views generated by internet users who visit
has decreased in the last few years, Latvian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

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3.5. MOBILE DEVICES

Chart 5 Top 5 mobile devices in Latvia by the website-averaged percentage share of page views
generated by internet users from Latvia, who visit Latvian websites using gemiusTraffic
(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10
**to 2010-07-25

it is still the most popular choice to access the web in Latvia is the
among Latvians. Other popular screen iPhone, which in July was responsible
resolutions among those who visit for 27% of page views generated by
Latvian sites using the gemiusTraffic mobile devices on an average website.
in the first quarter of 2010 were Yet, its domination is gradually
1280 x 1024 and 1280 x 800. Also diminishing and its share fell by
the screen resolution of 1440 x 900 4 percentage points in two months.
has been gaining popularity over As with other markets the loss is
the recent years. in favor of the iPad, Apple’s latest
product, which in the same period
3.5. Mobile devices - models extended its share by 3 percentage
points. The other devices in the top
According to the gemiusTraffic study, 5 oscillate around 3%.
the most popular mobile device used

4. BRANCH ORGANIZATIONS

LRA (Latvian Advertising association) advertising agencies. From the very


start the main aim of the association
www.lra.lv was to organize the advertisement
market by improving the quality of
Description: The Latvian Advertising advertisements, building up its positive
association (LAA) is a public image in society and contending
organization, established in 1994 against new legal regulations regarding
with the objective to unite 3 parties the limits of advertising distribution in
working in the advertising industry: the mass media.
advertisers, mass media and

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Members: advertising agencies, the intention of becoming the main
mass media, mass media agencies, internet association in Latvia.
advertisers, production companies,
catalog publishers, research institutes; Members: internet providers,
banks. software developers, web design
developers, programming companies,
internet research companies and
LADC (Latvian Artdirector Club) others (e.g. Izzi SIA, Microsoft Latvia,
Latnet Serviss, Latvenergo , Euro Data,
www.ladc.lv Lattelecom).

Description: The LADC (Latvian


Artdirector Club) is a non-profit The Latvian Information Technology
organization that represents and Telecommunications Association
specialists from Latvia’s design and
advertising sector as well as other www.likta.lv
creative professions. It was founded
by the main market players. LADC Description: LIKTA is a non-
holds regular workshops and lectures governmental association bringing
inviting lecturers from the world’s together ITTE product and
leading agencies and independent service providers and educational
artists in order to exchange institutions, as well as over 150
experiences and improve the creative individual professional members
competence of the Latvian advertising of the ITTE industry sector in
market. Latvia. LIKTA is actively involved in
discussing legislation and monitoring
Members: Creative, advertising and public procurement procedures for
web agencies, their workers and ITTE products and services. It was
independent artists. founded in 1998 by the major
market players. At the 2002 annual
meeting the members of LIKTA
Latvian Internet Association adopted a declaration on the need
to develop the ITTE sector listing
www.lia.lv a number of concrete steps to be
taken into account. The declaration
Description: The Latvian Internet has been forwarded to top
Association brings together government officials, political parties
companies connected with the and other competent authorities.
internet and online services; By 2007 almost all steps had been
it informs members about important accomplished.
changes in legislation, new public
online projects, global case studies, Members: Computer hardware
and the suchlike. Its main aims are and software developers, internet
the development of the Latvian providers, telecommunications
internet market and educating market infrastructure and service providers
members about various internet and developers, web developers,
issues. It was founded in 2000 by electronics (e.g. Exigen Services
15 internet market players with Latvia, LATTELECOM SIA, Institute of

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Mathematics and Computer Science in 2000 LDTA became a founder
of UL, RIX Technologies, Tieto Enator of ITTE ALLIANCE which unites
& Alise). professional associations that
represent Latvian-based enterprises
and scientific and educational
Association of Computer Technologies institutions whose work is connected
of Latvia (LDTA) with electronics and electrical
engineering as well as information
www.itnet.lv technology and telecommunications.

Description: Founded in 1997, Members: IT product sellers,


the Association of Computer computer hardware developers and
Technologies of Latvia (LDTA) is sellers, IT infrastructure developers
a non-profit organization and (e.g. Capital Ltd, MicroLink Systems,
the oldest association on the Latvian Lursoft IT).
IT market. The founders and members
are the largest IT companies and
best known juridical individuals that
deal with IT solution development
and implementation together with
IT wholesale product enterprises.
At present members of LDTA are
involved in processes that support
the creation of information
society infrastructure and are
actively using and promoting New
Economy principles. In order to
provide a friendly environment
for the development of IT and
telecommunications development,

5. ADVERTISING NETWORKS

GENERAL CONTACT INFORMATION


FULL NAME HOMEPAGE URL REACH MAIN OFFICE CONTACT
ADDRESS ADDRESS
Phone: + 371 67 29 25 23
Caka str. 83/85 – 30,
1 Adnet adnet.lv 55% Fax: + 371 67 18 64 06
Riga, Latvia
Email: info@adnet.lv
Vienibas gatve 75A, Phone: + 371 28 36 40 65
2 SmartAD smartad.lv -
Riga, Latvia Email: eduards.kampe@smartad.lv
Phone: + 371 67 83 06 61
Stabu str. 54,
3 Inspired Affiliate inpired.lv - Fax: + 371 67 83 06 60
Riga, Latvia
Email: inspired@inspired.lv
Lattelecom Dzirnavu str. 105, Fax: + 371 80 00 80 41
4 affiliate.lattelecom.lv -
Affiliate Riga, Latvia Email: affiliate@lattelecom.lv

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6. OPINIONS FROM THE MARKET

Viktors Rožkalns
OMG Digital Manager, Omnicom Media Group

Online advertising market

What are the opportunities and obstacles for the online advertising market on
your local market?

It is easy to target potential customers because we have exact information


about all popular portals. However, we still need to find the best ways to use
this space. Traditional Giga banners are not working well so we need to find
new places, new kinds of banners. Portals also are developing new forms of
banners. A major obstacle is a lack of buying options. In most cases there is only
one currency: price for days, but increasingly more clients are willing to buy
impressions or clicks.

Dominating trends

What are the recent trends on your local online market? What areas are
expected to develop most in the future?

It is obvious that a lot of companies are willing to use creative interactive web
solutions for their campaigns but not all of them are ready to pay for them.
Many companies are still choosing to use standard banners but internet users
more often like interaction with a brand than just clicking on banners. There
are also ready platforms for interaction: the social portal draugiem.lv as well as
others. Many companies use also Google Adwords but still this is only a small
part of the whole web budget. We predict that companies will continue to
mainly buy traditional banners but interactive web solutions will also grow. With
many risks come success stories which provoke other companies to take similar
risks and spend more on these solutions and receive in return more than using
traditional formats.

Global vs. local players

Are the local players present on your local market strong enough to compete
with the global giants? What advantages and strategies do they use in this
battle?

Local players are much stronger than global ones because global players cannot
compete with the content that local players are providing. One exception
of course is Google with its Adwords and display ads. Facebook is becoming
stronger in Latvia but the number of Facebook users is still under 120,000 and it

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134
has stopped growing after a rapid increase of users at the beginning of 2010.
Also, we do not have a great deal of information about Latvian web users who
visit global portals.

Market specifics

What makes your local online market unique? Are there any specifics that make it
different from others in the CEE region?

Latvia is one of few countries where the strongest social networking site is not
Facebook but draugiem.lv. This makes this particular local market different among
other markets. What has become most important to brands of late is interaction
with its consumers, customers. Draugiem.lv contains many nonstandard features
available which would not be possible in Facebook.

In this small market there are fewer than 10 portals, the major players. Thus,
the largest part of web media budgets is spent on those portals.

Edgars Kalniņš
BiFri Brand Communication Manager, SIA BITE Latvija

Online advertising market

What are the opportunities and obstacles for the online advertising market on
your local market?

The techniques used are extremely blunt so there are a lot of opportunities
for innovative solutions but on the other hand most marketers have a limited
understanding about online advertising.

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in the future?

Companies think more about a return on online investment so tracking and


measuring ad efficiency should grow accordingly.

Global vs. local players

Are the local players present on your local market strong enough to compete with
the global giants? What advantages and strategies do they use in this battle?

Local players are still strong but the foundation of their position is the local
language. This foundation could quite easily be eroded if the global giants decide
to go for it.

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Market specifics

What makes your local online market unique? Are there any specifics that make it
different from others in the CEE region?

The market is small and also split into two languages.

Dmitry Gizhdevan
Marketing Director, SIA Inbokss (inbox.lv)

Online advertising market

What are the opportunities and obstacles for the online advertising market on your
local market?

With one of the highest indices in Eastern Europe (approx. 60%), the online
advertising market in Latvia takes only a small part of the total advertising market
(11% in 2009). The greatest opportunity and objective for online media in the
upcoming years would be to enlarge the role of online advertising in the total
media mix on account of traditional and less effective media. The prediction for
the upcoming years is that online advertising will reach up to second place in
media channels and the greatest part of advertising turnover will be shared by TV
and online advertising.

Despite a decline in the advertising market in total, at present a tangible increase


is visible in online advertising. Major players have strengthened their positions
in the online advertising market despite the fact that many market players have
implemented a chaotic, nontransparent and non-predictable sales model, which in
turn has had a negative impact not only on the current situation, but also on long
term market development.

An essential factor which is impeding the development of the advertising market


is unequal stats data on measuring different advertisement channels. Due to the
fact that only two media channels in Latvia, TV and internet, are measured using
modern digital measure methods, advertisers have a feeling of non-transparency
of the whole advertisement market, which in its turn leads to more careful and
slower investment in advertising.

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in the future?

Almost all of the global trends have been observed in Latvia, albeit with a small
delay. They have had little impact on the market since Latvian internet users are
relatively conservative. Only some residents follow the trends. It reflects the

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136
Pareto Principle in that 80% of users do not follow trends whereas 20% of users
do. 5% of the total number of users are seen to use the possibilities of these new
trends.

For example, at present games on social networking sites are developing at an


extremely fast rate and the advertisement market has reacted to this by placing
advertisements on such sites. The mentioned advertisement model has not been
able to prove its efficiency yet, however such a trend exists.

Using the internet for two-sided communication with the consumer has also
been observed. But unfortunately due to the lack of specialists and qualitative
local stages it is developing slowly. Regardless of this, there are several
successful cases of consumer and brand correlation.

Latvian online advertising market players often try to force some trends onto
the market, which might be profitable for them. For example, in late 2009
a line of media introduced a CPC payment model for display advertisements,
but this trend passed very quickly. One more essential trend, which appeared
on the internet from the press was news media overproduction. Several years
ago there was a case on the press market where a large number of news media
were observed. The same trend is visible now in the internet, but it is also slowly
passing.

Various trends are likely to develop rapidly, including third party measuring
systems, which digital departments of media agencies lack at the moment.

Global vs. local players

Are the local players present on your local market strong enough to compete
with the global giants? What advantages and strategies do they use in this
battle?

Despite the fact that internet penetration in Latvia is great, the Latvian market
is small and not interesting for global players. This situation will continue for
several more years. It is necessary to point out that this has created a chance for
local portals to become strong in almost all areas except in searching services.

Local portals were able to guarantee users the necessary internet tools, by
taking into account the specifics of local users. Unlike global players, who when
entering a new market have tried to change it to their needs, local players
understand their own users much better and are able to provide products by
taking into account user specifics, which in turn is highly evaluated by local
users. This tendency can be seen by analyzing the latest brands (Latvia’s Most
Loved Brands http://inx.lv/E0 ). The two most popular local internet media are
in 3rd and 4th places in the general brand top list, in turn as local brands these
internet media came 1st and 2nd. These results show that Latvian users highly
rate local products and this will help when competing with global players.

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It is also worth pointing out that most local portals are slightly different
technologically from the global players, since local portals switch basic
investments to product development, which is necessary for local users. The
number of services offered by the local players is smaller than that of the global
players, however they are suited to local needs due to the fact that local players
understand local users much better.

Market specifics

What makes your local online market unique? Are there any specifics that make
it different from others in the CEE region?

The Latvian online market is unique with regards to the level of penetration.
Thanks to Latvia’s rural regions this continues to grow. Regardless of penetration
proportional results, compared with other countries, the number of users in
total is extremely low because the number of residents is small. Most users are
conservative and choose local resources instead of global ones on condition that
such an analogous service exists on the local market. In the TOP five Most Loved
brands there are 3 internet portals of which 1 is global and 2 are local.

Unique differences exist also in the online advertising market in total.


Unlike many other markets, on the Latvian online advertising market display
advertisements have a stable position, advertisements in searching services
make up a small proportion. In all probability, this is connected with the fact that
users rely less on advertisements in searching services, and on the other hand
there is little pro-active drive in searching services in order to provide this type
of advertisement to their partners. Due to the fact that the market is relatively
small, investment requires a great deal of effort.

Another important factor is bilingualism in Latvia, which distinguishes the


country from other CEE markets. Most local portals have to deal only with one
part of the audience, the others have to consider language, ethnic and other
psychographic indexes to maintain two services simultaneously.

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Lithuania
1.48m
internet users

1. MAINPLAYERS_139
1.1. Top10websitesbyreach_139
1.2. Top10websitesbyaveragetimespentperuser_140
1.3. Topportals_141
1.4. Social networks_142
1.5. Onlineclassifiedadsbyreach_143
1.6. Topfinancesitesbyreach_144
2. ONLINEAUDIENCE_144
3. TOOLS_146
3.1. Browsers_146
3.2. Operatingsystems_147
3.3. Search engines_147
3.4. Screen resolutions_147
3.5. Mobiledevices_148
4. BRANCHORGANIZATIONS_148
5. ADVERTISINGNETWORKS_150
6. OPINIONSFROMTHEMARKET_151
139

1. MAIN PLAYERS

1.1. TOP 10 WEBSITES BY REACH

WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH
USERS VIEWS USER USER

1 delfi.lt portal, news service 1 003 791 102 444 194 102 02:53:59 59%

2 one.lt social network 766 423 677 488 843 884 08:27:00 45%

3 lrytas.lt portal, news service 757 397 57 255 390 76 01:49:00 44%

4 balsas.lt portal, news service 665 740 8 051 562 12 00:16:24 39%

5 draugas.lt social network 609 752 299 279 202 491 04:24:15 36%

6 alfa.lt portal, news service 592 062 16 667 809 28 00:36:52 35%

7 skelbiu.lt classified ads 589 169 58 681 601 100 01:01:42 34%

8 plius.lt classified ads 561 033 68 780 425 123 01:40:21 33%

9 15min.lt portal, news service 548 557 17 871 519 33 01:07:47 32%

10 zebra.lt portal, news service 496 880 14 820 800 30 00:32:27 29%

Table 1 Top 10 websites in Lithuania by reach level (gemiusAudience, March 2010)

Portals and news services maintain online audience. In March 2009


the leadership in the top 10 reach it had a reach level of 34%, whereas
ranking. The most popular service in March 2010 this amounted to 36%.
among websites participating in In terms of average time spent per
the research in Lithuania is delfi.lt, visitor the leader is one.lt with 8 hours
a well-known horizontal portal, with 27 minutes, but the tendency is
more than 1 million real users and decreasing; in March 2009 the average
a reach level of almost 59%. In the visitor spent over 11 hours and 46
previous year, the portal launched minutes on the site.
the subdomains auto.delfi.lt,
dedicated to auto news and classified With a reach of over 30% the 7th
ads, and myep.delfi.lt providing news and 8th positions belong to classified
on the European Parliament. Other ads portals skelbiu.lt and plius.lt. In
popular news services are lrytas.lt, January 2009 plius.lt came in 4th place
balsas.lt and alfa.lt. in the ranking, but in March 2009 its
reach began to fall dramatically and in
The runner-up in the top 10 websites May 2009 it was overtaken by skelbiu.lt.
list is one.lt, a social networking site Although it made some attempts to
with a reach of 45%. However, in regain its former position, for example
comparison to 2009 its number of by updating its design in November
real users decreased by around 177 2009 and adding new functionalities
thousand. In turn, draugas.lt, also a as per users’ wishes, it did not manage
social networking service, extended its to achieve its former reach level.

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The top 10 websites list is propped higher. If the trend continues, it will
up by two horizontal portals 15min.lt probably overtake the classified ads
and zebra.lt. The first noted a sudden sites (plius.lt) in the ranking.
growth; in February it had a reach
level of 26% and in March this was
already over 6 percentage points

1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER

NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH


REAL USERS USER PER USER

1 one.lt 766 423 884 08:27:00 45%

2 draugas.lt 609 752 491 04:24:15 36%

3 pazintysxxx.lt (erotic) 43 650 304 03:43:47 3%

4 starchat.lt 7 577 231 03:09:26 0.44%

5 mail.ru 212 063 122 03:05:55 12%

6 inbox.lt 73 285 120 02:55:46 4%

7 delfi.lt 1 003 791 102 02:53:59 59%

8 ieskok.lt 118 934 151 02:31:11 7%

9 supermama.lt 375 877 95 02:12:45 22%

10 autogidas.lt 411 933 148 01:54:06 24%

Table 2 Top 10 websites in Lithuania by average time spent per user (gemiusAudience,
March 2010)

The top four places in the top 10 average of more than 3 hours on the
websites by average time spent per website monthly. The site even runs
user are occupied by social networking on its own ranking of its most devoted
websites. Their domination is no users, and some of them spent more
surprise. People tend to spend than 15 hours online a day. In 8th
long hours socializing with their place, with 2 hours 31 minutes,
acquaintances online. One.lt is the we find another social networking
most popular social networking website, ieskok.lt.
website in Lithuania with a reach level
of 45%. On average its users spent 5th place belongs to mail.ru,
8 hours 27 minutes a month using the a Russian horizontal portal, which has
service, while the users of draugas.lt, a reach level of 12%. Its popularity
which ranks second, spent 4 hours and is influenced by the considerable
24 minutes. Pazintysxxx.lt, a service Russian minority in Lithuania. Inbox.
with an erotic profile came in 3rd lt, a mailing service, ranks sixth and
place. Fourth place is occupied by has over 70,000 real users who spent
starchat.lt. Although its reach level an average of almost 3 hours using the
is less than 0.5%, its users spent an service a month.

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The most popular news service in The last place is taken by supermama.lt,
Lithuania, delfi.lt, takes 7th place in a portal dedicated to parents, with
the ranking. In March 2010 its users an average time per user of 2 hours
spent an average of 2 hours and 54 13 minutes a month. The ranking is
minutes online. This means that every propped up by a classified ads portal
day users spent around 10 minutes autogidas.lt.
reading the news here.

1.3. TOP PORTALS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 delfi.lt 1 003 791 102 02:53:59 59%

2 lrytas.lt 757 397 76 01:49:00 44%

3 balsas.lt 665 740 12 00:16:24 39%

4 alfa.lt 592 062 28 00:36:52 35%

5 15min.lt 548 557 33 01:07:47 32%

Table 3 Top 5 portals in Lithuania by reach level (gemiusAudience March 2010)

The top 5 portals on the Lithuanian Lithuanian newspaper “Lietuvos rytas”


online market also occupy the leading and it concentrates mostly on news.
positions in the general rankings (all of However, it also contains subdomains
them belong to the top 10 websites). with a forum, photo section, blog
The indisputable leader is delfi.lt service, a traditional TV channel,
which leads not only in terms of the a magazine about lifestyle and
number of real users, but also in terms weather forecasts. In March 2010
of the average time spent online by its reach level amounted to 44%.
each user. The portal provides the In August 2009 “Snoras Media
latest news and in addition contains Investicijos” acquired 34% of “UAB
a blog, chat and webmail service Lietuvos rytas” authorized capital
as well as information related to and in this way the AB BANK SNORAS
entertainment and lifestyle. Moreover, group became its largest shareholder.
it has a channel for young people with
games and a forum. As mentioned in Another important player among
the previous section, delfi.lt launched portals is balsas.lt. It gained almost
two new subdomains dedicated to the 11 percentage points in reach level
European Parliament and cars. “Delfi” compared to March 2009 and
portals are available in five languages: progressed to 3rd place in the top
Lithuanian, Russian, Latvian, Estonian 5 list. The portal is a typical news
and Ukrainian. publishing site with diversified
subdomains similar to those available
The second player in the category is on the portals described above. There
lrytas.lt, which is the site of the daily are also special sections for women

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which include recipes, parental advice, In 5th place is 15min.lt, a horizontal
greetings and lyrics. portal of quickly growing popularity
in Lithuania. It is a result of the well-
Alfa.lt ranks fourth in the top 5 portals planned marketing strategy with
ranking. However, its number of real regard to the use of social networking
users decreased in comparison to sites such as Facebook. In terms of
March 2009 by 9.5% and its reach average time spent per user, 15min.
level dropped by 4 percentage points. lt is located in third place; the same
In addition to the facilities typical for applies when it comes to number of
such portals, it contains a travel search page views and page views per user
engine and reservation section and, according to gemiusAudience data
furthermore, it has its own computers from March 2010.
and domestic electric appliances
e-shop. Moreover, its main news is
available not only in Lithuanian, but
also in English.

1.4. SOCIAL NETWORKS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USERS USER

1 one.lt 766 423 884 08:27:00 45%

2 draugas.lt 609 752 491 04:24:15 36%

3 klase.lt 293 415 29 00:21:04 17%

4 pazintys.lt 120 924 86 01:08:28 7%

5 ieskok.lt 118 934 151 02:31:11 7%

Table 4 Top 5 social networking websites in Lithuania by reach level (gemiusAudience,


March 2010)

In terms of social networking people to express themselves and stay


communities, two domestic websites in touch with both their real-life and
dominate among services participating virtual friends. In order to gain access
in the gemiusAudience research. to communication tools, exchange
The leader is one. lt with a reach photos and files and participate in
level of 45%. However, as mentioned contests and games, users have to
before, its market share is declining. register on the website. Moreover,
Meanwhile, the number of real the platform offers some non-typical
users of the second largest social networking solutions, for example an
networking website, draugas.lt, soared SMS service.
in comparison to March 2009.
The transparent layout of draugas.lt
One.lt is dedicated to internet users allows the user to identify the five
older than 14 years old. It offers a main sub-sites immediately. To
variety of social features enabling describe the two of them, one is

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dedicated to maintaining contact ieskok. lt. Similarly to the previously
with acquaintances. It allows the described social networks, these also
user to search for classmates, group allow their users to search for friends,
mates and the suchlike. The second chat and play games. In addition,
subdomain is devoted to games. What ieskok.lt has a section in which users
is more, there is a forum, an e-mail can listen to an online radio station.
and classified ads service. This may explain the fact that in terms
of average time spent online, ieskok.lt
Another important player is klase.lt, overtakes klase.lt and pazintys.lt.
though its reach level is significantly
smaller and accounts for only 17%. Pazintys.lt provides its users with
It has a complex structure consisting information about entertainment and
of five main subsections: classmates, events and has a hot line for instant
group mates, clubs, sites and massages. The site is available in four
acquaintances. In comparison to the languages: Russian, Lithuanian, English
data from March 2009, the number and Italian. Moreover, the company
of real users and the number of page owns the independent service
views of this website declined as did pazintysxxx.lt, which has an erotic
the average time spent per user. profile.

Amongst services with the highest


reach level we also find pazintys.lt and

1.5. ONLINE CLASSIFIED ADS BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 skelbiu.lt 589 169 100 01:01:42 34%

2 plius.lt 561 033 123 01:40:21 33%

3 skelbimai.lt 376 677 21 00:13:37 22%

Table 5 Top 3 online classified ads in Lithuania by reach level (gemiusAudience, March 2010)

The two main players on the classified offers. Skelbiu.lt makes money through
ads market are skelbiu.lt, with a reach selling advertising space, but also its
level of 34%, and plius.lt with 33%. A users have to pay for the publication
year ago, in March 2009, the leader of ads.
was plius.lt reaching over 41% of
the market. However, since then its Third place goes to skelbimai.lt, with
popularity has declined and in March a reach level of 22%, which in turn
2010 it is in second place between the allows its users to place ads on the site
classifieds. In May 2009 skelbiu.lt took free of charge.
the lead. It is a site of classified ads
that are grouped, amongst others, into
transport, real estate, services and job

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1.6. TOP BUSINESS AND FINANCE SITES BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 vz.lt 227 057 15 00:19:41 13%

2 tax.lt 164 995 13 00:17:22 10%

3 verslobanga.lt 91 268 3 00:03:41 5%

Table 6 Top 3 business and finance sites in Lithuania by reach level (gemiusAudience, March 2010)

The most popular finance site in legal acts, forms and other useful
Lithuania is vz.lt. It publishes business pieces of information for accountants.
news and articles as it is an e-version There is also a possibility to order the
of a business newspaper. It has weekly delivery of news articles or to
separate subdomains dedicated to use a system for invoice issuance and
searching for articles and photos as management on the internet.
well as an e-shop, where users can
order the newspaper or buy articles, The third significant player on the
recommendations, dictionaries, books, business sites market in Lithuania is
etc. Vz.lt has a reach level of 13% and verslobanga.lt, which presents news
the average time per user is less than about companies and information
20 minutes a month. about events related to accountancy,
business or finance. It allows its users
Tax.lt, which ranked second with to publish their own information
a 10% reach, is dedicated to about events or create any documents
accountancy. In addition to a forum, it related to various fields of business,
gives its users the possibility to search available to a broader audience. Its
for or place job ads on the site related reach level amounted to 5% in March
to accounting. Moreover, it presents 2010.

2. ONLINE AUDIENCE

Majority of Lithuanian internet Lithuanian internet users are


users are women. They constitute generally young. In March 2010
51% of the online population, which people aged 7-34 accounted for 62%
is not a surprise taking into account of the online population. The highest
the demographic structure of the percentage of users (28%) falls in the
Lithuanian population with women group of people aged 15-24. People
predominating. Furthermore, women over 55 years old constitute 7% of
on average spent more time online (13 internet audience.
hours 39 minutes) than men (13 hours
01 minute).

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146
Lithuanian internet users are In March 2010 the most
well-educated. Only 17% of them numerous group (33%) on the
have only primary or lower education. Lithuanian internet included students.
The greatest percentage of the online The second force were specialists
population has secondary education, and office employees, however they
i.e. 28%. There is also a significant did not spend a great deal of time
number of people with higher online. In terms of activity per user,
education that use the web (26%). the unquestionable leaders were
The structure conforms to the general housewives, who spent an average
education structure of Lithuanian of more than 19 hours online a
society. month. Another active group is small
businessmen. In March 2010 they only
Majority of internet users in accounted for 4% of the researched
Lithuania live in large cities. 26% of internet audience, however, during
the whole internet population live in the same period each of them spent
Vilnius and in March 2010 the 7 largest 16 hours surfing the web.
cities together constituted 65% of
the online population. Only 10% of
internet users live in villages, but this
is 1 percentage point more than a year
ago.

3. TOOLS

3.1. BROWSERS

Chart 1 Top browsers in Lithuania by share of page views generated by internet users who visit Lithu-
anian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

3.1. Browsers it was overtaken by Firefox with a


market share of 42%. The third most
The most popular browser in Lithuania popular browser is Opera followed by
used to be Microsoft Internet Explorer. Chrome, whose popularity has been
However, at the beginning of 2010 growing since the second quarter of

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147
2009. According to the gemiusTraffic
study, during the first three months 3.2. OPERATING SYSTEMS
of 2010 Chrome gained 2 percentage
points and the trend seems to be
continuing.

3.2. Operating systems

The indisputable leader of the


operating systems market in Lithuania
was Windows XP with a 76% share in
the first quarter of 2010. However,
its popularity has been decreasing
since the introduction of Windows Chart 2 Top operating systems in Lithuania by share of page views generated by internet users who
visit Lithuanian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)
Vista. In the second quarter of 2009
MS Windows released its newest
operating system, Windows 7. Since
then it has been gaining an ever larger
share of the market and is catching
up with Windows Vista. After the first
3.3. SEARCH ENGINES
quarter of 2010 its market share was
10%. The other Windows operating
systems have lost users during the
past two years.

Mac OS X is slowly gaining popularity,


but still it only covers less than 1% of
the market.

3.3. Search engines

Chart 3 Top search engines in Lithuania by share of visits made by internet users who visit Lithuanian
Without question, the most popular websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)
search engine in Lithuania was Google
with a market share of 98% in the
first quarter of 2010. MSN, which
ranked second, contributed to only
1% of visits made by internet users 3.4. SCREEN RESOLUTIONS
who visit Lithuanian websites using
gemiusTraffic.

3.4. Screen resolutions

Although the market share of 1024 x


768 monitor screen resolutions has
decreased, it is still the most popular
choice among Lithuanians. Other
popular screen resolutions in Lithuania
in the first quarter of 2010 were 1280
x 800 and 1280 x 1024. Also, the
screen resolution of 1440 x 900 has Chart 4 Screen resolutions in Lithuania by share of page views generated by internet users who visit
become more popular in recent years. Lithuanian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

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3.5. MOBILE DEVICES

Chart 5 Top 5 mobile devices in Lithuania by the website-averaged percentage share of page views
generated by internet users from Lithuania who visit Lithuanian websites using gemiusTraffic
(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10
**to 2010-07-25

3.5. Mobile devices - models within May and July 2010. In contrast,
the share of Apple’s latest product
According to the gemiusTraffic study, the iPad has increased by almost 2
the most popular mobile device percentage points within these two
used to access web in Lithuania months. The three last positions
is the iPhone, which in July was among the top 5 mobile devices on
responsible for 14% of page views the Lithuanian market are taken by
generated by mobile devices on the Nokia devices, including the Nokia
average website. However, like on 5130 XpressMusic which is the most
other markets its share is gradually popular.
decreasing and a loss of almost 2.5
percentage points could be observed

4. BRANCH ORGANIZATIONS

Association of Lithuanian have established the “Lithuanian


Communication Agencies (KOMAA) Advertising Bureau”. KOMAA’s mission
is to unite advertising agencies,
www.komaa.lt develop the advertising market,
raise the prestige of the industry and
Description: KOMAA brings together make decisions which are of practical
the largest and strongest creative significance to the advertising market.
media agencies and full service KOMAA was established in 2002 and
companies operating in Lithuania. now has 21 members.
Members of the association accept
the Lithuanian Advertising Ethics Members: creative agencies (Adell
Code, follow its provisions and Taivas Ogilvy, ADVISION, DDB Vilnius,

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149
Grey Worldwide: Vilnius, Kredo R, Leo Members: The eight largest news
Burnett Vilnius, Lowe Age, Milk, Not portals in Lithuania are Alfa.lt, Delfi.lt,
Perfect Y&R, SAN Vilnius/JWT, TBWA\ Bernardinai.lt, 15min.lt, Balsas.lt, Lrt.lt,
Vilnius), full services agencies (Tarela, Lrytas.lt, portal group of
VRS grupė) and media agencies “Diena Media” (vilniausdiena.lt,
(Adcom, Carat, Creative Media kaunodiena.lt, klaipeda.diena.lt).
Services, Media House, Mediapool,
Mindshare, Omnicom Media Group,
Starcom). Lithuanian Marketing Association
(LiMA)

Lithuanian Advertising Bureau www.marketingas.org

www.reklamosbiuras.lt Description: The Lithuanian Marketing


Association unites marketing
Description: The Lithuanian specialists and people interested in
Advertising Bureau’s mission is to this field. It provides the possibility
develop respectable, fair and honest for marketing specialists to exchange
advertising practices in Lithuania, knowledge and practical experience
basing on the Lithuanian Advertising and in this way to augment their
Ethics Code. The goal is to develop value on the market and also to raise
the advertising sector in Lithuania, the general worth of the Lithuanian
to create and improve legally-binding market. It aims to unite Lithuanian
ethical self-regulation control in marketing specialists, create space
advertising, honest competition, and possibilities for their professional
which ensures the protection of improvement, to raise their
users and helps improve the general professional abilities and knowledge,
concern of society directed against popularize and represent the
the negative influence of advertising. marketing profession in society, and
The Lithuanian Advertising Bureau was contribute to the welfare of society
established in 2005. using professional knowledge. The
association was established in 2004.
Members: the arbitrage committee
includes representatives of various Members: The association brings
fields: advertisers, advertising together natural and legal entities.
agencies, TV, press, consumer rights At present, more than 200 marketing
protection, competition, equal specialists in various areas belong to
opportunities, child rights protection. the association.

Association of Internet Media Association “LĮA” (“Langas į ateitį”),


also called Alliance “Langas į ateitį”
Description: The aim of the (Window into the Future)
Association of Internet Media is to
ensure the ethical and professional www.langasiateiti.lt
work of internet media. It also
wants to guarantee readers ethical Description: This alliance established
expression of opinion in news portals. a unique project aimed at businesses
The Association of Internet Media supporting the development of the
was established in April 2009 by information society in Lithuania.
Lithuanian’s largest eight news portals. The mission of the “Langas į ateitį”

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150
alliance is to promote the use of partners: Microsoft Lietuva, Lideika,
internet and e-Services in Lithuania Petrauskas, Valiūnas ir partneriai/
and thereby stimulate the growth of LAWIN, PR Service/Edelman Affiliate,
living standards as well as Lithuania’s the Institute of Public Policy and
competitiveness within Europe and Management.
other countries of the world. “Langas
į ateitį” implements projects in three
main fields:
• Establishment of public internet
access points (PIAPs)
• Training of the population to use
information technologies
• Encouragement to develop and
use e-services
It was established in May 2002.

Members: The founders and members


of the alliance are as follows: the
communications companies “Omnitel”
and “TEO” (2002-2005), “Swedbank”
and “SEB” banks, the IT companies
“Alna” (2002-2009) and “Atea”. As well
as the founders of the alliance and
the Ministry of the Interior of the
Republic of Lithuania, “Langas į ateitį”
integrates the following companies as

5. ADVERTISING NETWORKS

GENERAL CONTACT INFORMATION


FULL NAME HOMEPAGE URL MAIN OFFICE CONTACT
ADDRESS ADDRESS

UAB ”Adnet”
Phone: +370-5-273-00-65
Verkių str. 5
1 AdClick adclick.lt Fax: +370-5-273-00-65
LT-08218 Vilnius
Email: info@adclick.lt
Lithuania
UAB ”Adnet”
Phone: +370-5-275-37-74
Verkių str. 5
2 Adnet adnet.lt Fax: +370-5-275-66-50
LT-08218 Vilnius
Email: info@adnet.lt
Lithuania
UAB ”Textads”
Phone: +370-5-273-00-65
Verkių str. 5
3 Textads textads.lt Fax: +370-5-273-00-65
LT-08218 Vilnius
Email: info@textads.lt
Lithuania
UAB ”TradeDoubler”
Phone: +370-5-236-01-76
Verkių str. 34
4 TradeDoubler tradedoubler.lt Fax: +370-5-278-47-64
LT-08221 Vilnius
Email: info.lt@tradedoubler.com
Lithuania

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6. OPINIONS FROM THE MARKET

Egidijus Sirvydis
Director, UAB “Adnet”

Online advertising market

What are the opportunities and obstacles for the online advertising market on
your local market?

Every year online advertising is used more frequently as a media tool.


However, according to budgets (in %), this media tool did not reach the level
of Western Europe, or even the level of our close neighbors such as Poland
and Estonia. Therefore, the use of online advertising will certainly grow during
the upcoming years.

The main disadvantage of the whole Lithuanian advertising market, as well


as the online advertising market is that the market is extremely small. The
price of creating more interesting solutions is similar to the one in other larger
markets, but a much smaller audience can be reached with the usage of these
solutions.

Another important issue on the Lithuanian market is its low conversion rate,
i. e. a small ratio of the people having seen an advertisement or having visited
a site to find out something about goods, comparing to those people, who
have actually bought any product or service. However, the increasing number
of companies working in the e-commerce field and the rising popularity of
online payments should cause an increase in the conversion rate. This would
allow the participants of the online advertising market to achieve a better
response and obtain maximum benefits from advertising.

Dominating trends

What are the recent trends on your local online market? What areas are
expected to develop most in the future?

Lots of small, specialized and even niche e-shops selling various goods
from ecological products to equipment for agriculture have appeared on
the market. However, many of them do not have support from investors,
therefore such projects often do not have money for advertising, they cannot
advertise themselves to a wider audience and after half a year of activity they
simply disappear quietly. However, there are many successful examples where
companies slowly become more popular and then find opportunities to invest
in advertising and expand their business successfully. Therefore, looking to the
future, the number of such small clients will grow and they will have a greater
impact on the online advertising market in Lithuania.

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152
Global vs. local players

Are the local players present on your local market strong enough to compete with
the global giants? What advantages and strategies do they use in this battle?

The Lithuanian market and all three Baltic markets are too small for the global
players, therefore only some of them expressly develop their activity in these
countries. In most cases it comes naturally due to the worldwide popularity
of these players. One of the most important examples could be the duel of
one.lt and facebook.com. Facebook manages to attract an increasing number
of visitors without any specific strategies for the local market, while the
Lithuania’s most popular social network one.lt is unable to stop the decrease
in the number of users. However, even whilst being one of the most popular
webpages facebook.com does not actively participate in the advertising
market in Lithuania and has no significant effect on it. This often happens
with other international websites. Despite being popular, they are not actively
involved in the Lithuanian online advertising market. This explains why,
despite difficulties in fighting for the loyalty of users, there is no need for local
players to struggle with global giants for advertising budgets as of yet.

Market specifics

What makes your local online market unique? Are there any specifics that
make it different from others in the CEE region?

The technical solutions and possibilities of the Lithuanian advertising market


are very similar to other European markets. Both clients and websites use
technology that is popular in Europe, implement specific solutions developed
all over the world, and create them in Lithuania (e.g. broadcasting video
advertisements online, etc.).

One of the unique features of the Lithuanian online advertising market is that
the discount rate has a strong influence on the market. However, it is possible
that the increasing number of advertisers on the internet and the shortage of
high-quality online advertising space will reduce the influence of discounts.

It should also be mentioned that affiliate marketing has not become popular
in Lithuania yet. One reason for this might be the above-mentioned low
conversion rate. However, it is hard to say whether affiliate marketing will
take a more significant chunk of online advertising marketing in such a small
market like Lithuania, even if the situation gets better.

Ričardas Baltaduonis
Managing Director, UAB “Lrytas”

Online advertising market

What are the opportunities and obstacles for the online advertising market on
your local market?

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153
Last year was difficult for everyone. The internet as a media tool is not
fully developed yet and this especially reflected in the massive decrease of
advertising budgets in 2009.

When customers reduced their advertising budgets, the position and reaction
of online advertising market players were clear: more advertisements were
displayed, but less money was made. So why should customers spend more
money if they receive the same and can plan smaller budgets?

Dominating trends

What are the recent trends on your local online market? What areas are
expected to develop most in the future?

At this point it is important to distinguish two aspects: trend of website


popularity distribution and the trend of technological innovations. With
regard to the first, a very clear downward trend of one of the most popular
social networking sites is obvious. This trend shows, once again (the first being
MySpace), that social networking sites do not have a strong niche among
users, therefore their future does not seem to be rosy and bright.

In terms of technological innovations, mobile compatibility will be at the


forefront

Global vs. local players

Are the local players present on your local market strong enough to compete
with the global giants? What advantages and strategies do they use in this
battle?

Local portals/networks/websites will NEVER be able to compete with the


global giants. You cannot compare a fly to an elephant. It is unfortunate, but
the local players have no chance in competition with the global players. Only
so called ‘niche’ activities remain. Any thoughts of becoming another Google,
Apple or Facebook is simply impossible here in our local and small countries.
This is determined both by the size of this market and other factors, such as
the financing of projects and domestic consumption.

Elvijus Gudžiūnas
Director, UAB “Epasas.lt“

Online advertising market

What are the opportunities and obstacles for the online advertising market on
your local market?

With regards to technical possibilities websites have their own programmer


teams that can seemingly resolve any solution. Due to the small market
(population rather than internet usage percent) the costs of production

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154
and implementation often use up large part of the advertising budget and
an alternative plan (based on more standard positions) can generate better
results in advertising campaign.

Dominating trends

What are the recent trends on your local online market? What areas are
expected to develop most in the future?

The concentration is noticeable on the online market; there are almost no


small participants left on the market and the ones that remain have a minor
influence.

Both now and in the future, solving quantitative issues (concentration,


procurement of competitors, purchase of cheap advertising), leads to a
greater concentration of qualitative factors (the improvement of content
quality, attempts to transfer self advertising projects to press and TV). When
the market settles down, it is possible to entrench niche e-projects. However,
there might be more competition which will allow the quality of niche projects
to rise. Similar processes exist in online advertising; concentration is under
way. Customers have a wider choice among the larger market players; this
makes things more convenient and it is then possible to get a better prices
and better offers. The demand for rich media formats is noticeable on the
market.

Global vs. local players

Are the local players present on your local market strong enough to compete
with the global giants? What advantages and strategies do they use in this
battle?

Quality has not fallen, but local online business is not moving to foreign
business because:
1. There are no large turnovers that might allow players to obtain a large
return on their investments
2. Larger local investment companies in the meantime:
a) make a greater profit investing in other business areas
b) do not have a lot of knowledge about the internet, therefore there is no
great willingness to invest.

Do you CEE? Lithuania


Poland
15.55m
internet users

1. MAINPLAYERS_157
1.1. Top10websitesbyreach_157
1.2. Top10websitesbyaveragetimespentperuser_158
1.3. Topportals_159
1.4. Social networks_161
1.5. Onlineclassifiedadsbyreach_162
1.6. Topfinancesitesbyreach_163
2. ONLINEAUDIENCE_164
3. TOOLS_166
3.1. Browsers_166
3.2. Operatingsystems_166
3.3. Search engines_167
3.4. Screen resolutions_167
3.5. Mobiledevices_167
4. BRANCHORGANIZATIONS_168
5. OPINIONSFROMTHEMARKET_169
157

1. MAIN PLAYERS

1.1. TOP 10 WEBSITES BY REACH

WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH
USERS VIEWS USER USER

1 google.pl search engine 15 705 994 - - - 89%

2 onet.pl horizontal portal 12 364 940 3 416 046 567 276 05:51:42 70%

3 nasza-klasa.pl social network 11 810 889 - - - 67%

4 google.com search engine 11 451 490 - - - 65%

5 allegro.pl online auctions 10 831 038 5 198 862 613 480 04:51:33 61%

6 wp.pl horizontal portal 10 562 824 2 075 853 411 197 05:57:19 60%

7 youtube.com video sharing 10 442 867 - - - 59%

8 wikipedia.org online encyclopaedia 8 940 820 - - - 50%

9 interia.pl horizontal portal 8 341 410 916 745 046 110 03:02:10 47%

10 gazeta.pl horizontal portal 8 266 006 359 047 189 43 01:03:58 47%

Table 1 Top 10 websites in Poland by reach level (Megapanel PBI/Gemius, March 2010 ); the ranking includes both, audited and non-audited websites:
for non-audited websites, page views and time are not shown

The year 2009 was a time of many by their reach in March 2010 includes
significant changes within the ranking only selected domains, not the whole
of top 10 online players in Poland. groups of sites operating under the
The three leading positions, similarly wings of horizontal portals or online
to last year, are taken by the same publishers. In conjunction with this
strongest brands: Google, Onet.pl and change, the greatest loss has been
nk (Nasza-Klasa). These three websites suffered by O2, a local portal. Within
have not only maintained their market the ranking by reach for March 2010,
shares, but also strengthened their the o2.pl domain did not find its
reach, respectively: google.pl from place among the top 10 websites. O2
83% to 89% (in case of google.com it gained a little more than 4.7 million
was from 58% to 65%), onet.pl from real users, which gave it less than 27%
62% to 70% and nasza-klasa.pl, the reach among internet users in Poland.
star of last season, from 59% to 67%. The second loss has been noted by
one of the leading horizontal portals,
On the other hand, some players did Gazeta.pl, whose reach dropped by
not manage to stay on the course. It is 3 percentage points within last year.
extremely important to note, however, Fortunately, the loss is only a result of
that the most visible shifts within a general shake-up of market leaders.
the presented ranking of websites Gazeta.pl achieved a reach of 47% and
for Poland are caused by the update attracted almost 8.3 millions of real
of the Megapanel PBI/Gemius study users. Yet, it is clear to see that this
methodology. The ranking of websites result was not enough to retain its

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former position. A similar loss has also ranking of the top 10 websites on the
been experienced by another local market. What is most important is that
portal, interia.pl, which attracted this online auction platform overtook
8.3 million real users in March 2010. Wirtualna Polska (wp.pl), one of the
leading horizontal portals in Poland.
The spring of 2010 and the
improvement of the online audience When it comes to important increases
research methodology also brought within the ranking of top players,
upward trends for almost every site. at the beginning of 2010 only few
One of the most significant ones is the other visible movements took place.
rise of allegro.pl, the biggest online YouTube, gaining over 10 million real
auction platform in Poland. Allegro.pl users and 59% reach, took 7th place
is also a player active on 10 other in the ranking. A noncommercial
European markets. This group of website, Wikipedia, attracted almost
countries (at the beginning of 2009 9 million Poles and gained 50% reach
consisting of Belarus, Bulgaria, the in March.
Czech Republic, Kazakhstan, Russia,
Romania, Slovakia, Ukraine and
Hungary) increased recently, when
Allegro launched its well-known online
service in Serbia. Yet, the success
of Allegro in Poland remains most
significant. In March 2010, allegro.pl
was visited by almost 11 million real
users in this country, which gave it
61% reach and 5th place within the

1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER

NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH


REAL USERS USER PER USER

1 miastomuzyki.pl 647 432 17 13:15:21 4%

2 kurnik.pl 1 040 024 156 11:50:09 6%

3 wp.pl 10 562 824 197 05:57:19 60%

4 onet.pl 12 364 940 276 05:51:42 70%

5 prisonwars.pl 249 712 1096 05:51:23 1%

6 stooq.pl 91 000 178 05:40:07 1%

7 fotka.pl 1 950 443 523 05:05:25 11%

8 allegro.pl 10 831 038 480 04:51:33 61%

9 radiozet.pl 416 989 12 04:42:01 2%

10 open.fm 339 995 8 04:18:55 2%

Table 2 Top 10 websites in Poland by average time spent per user (Megapanel PBI/Gemius, March
2010); the ranking includes audited websites only

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The general picture of Polish online GmbH. The 9th and 10th positions
market leaders becomes different in the ranking were also occupied by
if the variable of time is taken into radio-related websites, respectively:
account. It appears that in this radiozet.pl (homepage of one of the
category the strongest horizontal most popular offline radio stations)
portal is wp.pl, which in March 2010 and open.fm (an online radio platform
kept its users active for the longest run by GG Network, owner of the most
time (almost 6 hours). In the ranking popular instant messaging system in
of top 10 websites by average time Poland). Users of both websites spent
spent per user in Poland, there are more than 4 hours in the analyzed
two visible leaders: miastomuzyki.pl, month surfing each of them.
a website gathering online RMF FM
radio stations as well as kurnik.pl, the On the other hand, the ranking also
casual games platform. In March 2010 covers two representatives of the
average visitor of the latter website online gaming industry. In March 2010,
spent almost 12 hours playing board not including kurnik.pl, Poles spent
and card games with other internet almost 6 hours playing Prison Wars,
users. All other websites included an MMO game which is similar theme-
in the ranking (even such a player as wise to the Prison Break TV series.
wp.pl) were visited by Poles for no
longer than 6 hours. Excluding portals, games and online
radio stations, the websites which
The radio and gaming websites won engaged Polish users the most in
most of user time. The number one March were also the stock market
in March 2010 in this regard was vertical portal, stooq.pl, the social
miastomuzyki.pl, the website of networking service based on the
all the online radio stations run by ‘hot or not’ formula, fotka.pl and
RMF FM which operates within the the biggest online auction platform,
Interia Group. Both RMF FM (one of allegro.pl.
the most popular traditional radio
stations in Poland) and interia.pl (one
of the major horizontal portals) have
the same owner, Bauer Media Invest

1.3. TOP PORTALS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 onet.pl 12 364 940 276 05:51:42 70%

2 wp.pl 10 562 824 197 05:57:19 60%

3 interia.pl 8 341 410 110 03:02:10 47%

4 gazeta.pl 8 266 006 43 01:03:58 47%

5 o2.pl 4 755 575 63 01:33:13 27%

Table 3 Top 5 portals in Poland by reach level (Megapanel PBI/Gemius, March 2010); all websites
presented in the table are audited

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The leader among horizontal portals (email) was launched. In 2000, the
in Poland is onet.pl, which is also the basic version of the portal, covering
second player on the whole domestic six sections, was introduced and after
online market. It operates within the gaining significant popularity, it has
TVN Capital Group (one of the biggest never been outside the top 5 market
multimedia players in Poland), which leaders in its category.
is incidentally its sole owner. Onet.pl
is also part of the ITI Media Group However, it would be quite inaccurate
and an active player, which (as well to think that the ranking of top
as the portal) runs other interesting horizontal portals has not changed
business projects, for example zumi.pl at all since last year. An interesting
(a map-based localization online shift took place in the group of portals
service) or Dream Lab (a technological closing the peloton. This is also related
company). to the update in the way of presenting
results of the Megapanel PBI/Gemius,
The second force on the Polish online thanks to which horizontal portals
market is Wirtualna Polska (wp.pl), began to be presented not only as
the horizontal portal operating within whole groups of websites, but as the
the Telekomunikacja Polska Group precise domains of particular players.
(the main landline telephone operator This change caused the significant
and former monopolist). This business decline of O2 in favour of gazeta.pl,
group also covers such companies as which took fourth position within
Polska Telefonia Komórkowa Centertel the ranking of top portals in Poland.
(the mobile phone network, which O2 uses a specific business model
since 2005 has been operating under building its audience partly based on
the Orange brand) or PayTel (an its network of proprietary or partner
electronic payment system provider). websites, for example wrzuta.pl
Moreover, Wirtualna Polska runs (the audio-video hosting service).
a successful online TV website (wp.tv), In March 2010 however, the O2
which in March 2010 gained over 2.5 portal attracted less than 5 millions
million real users and a reach of over real users, which gave it a reach of
14%. Within the ranking by time per only 27% and 5th position within
user it takes the position of the most the ranking of horizontal portals.
engaging horizontal portal present
on the market (in the same period of
time its average user surfed longer by
5 minutes than the average user of
onet.pl).

The general balance of power among


the top 3 horizontal portals in Poland
did not change a great deal since the
beginning of 2009. Third position,
as before, is occupied by interia.pl,
a horizontal portal run by the
joint-stock company, INTERIA.PL S.A.
owned entirely by the Bauer Media
Group. Although launched in 2000,
the company’s origins date back to the
year 1999 when its first online service

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1.4. SOCIAL NETWORKS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 nasza-klasa.pl 11 810 889 - - 67%

2 facebook.com 5 052 697 - - 29%

3 chomikuj.pl 4 116 695 34 00:46:25 23%

4 mojageneracja.pl 2 586 719 12 00:35:45 15%

5 fotka.pl 1 950 443 523 05:05:25 11%

Table 4 Top 5 social networking websites in Poland by reach level (Megapanel PBI/Gemius, March
2010); the ranking includes both, audited and non-audited websites: for non-audited websites,
page views and time are not shown

The Polish online social networking at this point, such a possibility seems
services market remains dominated by unlikely.
one, very strong player: nasza-klasa.pl.
The “Do You CEE” report for 2009 Third position in the ranking of social
describes the incredibly fast growth networking platforms in Poland is
of this website, which has conquered taken by chomikuj.pl. This service,
the local market not only effectively, operating within the Interia Group,
but also, apparently, permanently. In is another newcomer in the ranking,
March 2010, Nasza-Klasa, an online but not because it has just appeared
service based on the ’classmates’ on the market. Chomikuj.pl entered
formula, was visited by almost 12 the group of top social networking
million real users. This result gave it sites in Poland due to two facts. The
a reach of 67% and the position of first is that it has almost doubled its
unquestionable market leader, far reach among Polish internet users
ahead of its competitors. since March 2009 (from almost 13%
to 23%). The second fact is that this
However, 2009 was the year of the website evolved from a typical file-
emergence of another very serious sharing service (which it is often still
player, Facebook. The growth of the identified with) towards a particular
largest and best known global social kind of social networking service.
networking brand in Poland was not so The position of Chomikuj within the
spectacular, however during the last ranking of top social networking
15 months, it has managed to enter websites in Poland appears extremely
the group of top players and take strong. The player snapping at its
a strong second position. In March heels, mojageneracja.pl (run by the GG
2010, Facebook was visited by more Network – owner of the most popular
than 5 million Poles and it gained instant messaging system in Poland),
a reach level of 29%. The rapid growth attracted about 1.5 million real users
of this platform in Poland may lead less than chomikuj.pl in March 2010
to a situation where in the future the giving it a reach of 15%.
California-based player may well be
able to threaten Nasza-Klasa. However,

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Another interesting player among the number of page views – over 1 billion.
top 5 social portals is fotka.pl. Fotka.pl is one of the oldest social
This website, based on the ‘hot or not’ networking websites in Poland and it
formula, was visited by nearly 2 million markets its services generally to young
Poles in March 2010 (11% of reach), people, who publish their photos and
but it is one of the most engaging allow them to be evaluated by other
projects on the Polish web. In the users.
same period, its average visitor spent
more than 5 hours generating a huge

1.5. ONLINE CLASSIFIED ADS BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 otomoto.pl 4 254 227 101 01:11:32 24%

2 gratka.pl 2 214 490 43 00:31:47 12%

3 gazetapraca.pl 1 976 458 24 00:19:08 11%

Table 5 Top 3 online classified ads in Poland by reach level (Megapanel PBI/Gemius, March 2010);
all websites presented in the table are audited

The most popular online classified Gratka.pl is also quite a mature brand,
ads service in Poland is otomoto.pl. present on the market since 2000.
It is a website run by otoMoto In March 2010 it gained a reach of
Sp. z o.o. from Poznań and it belongs 12%, which means that in this period
to the Allegro Group. OtoMoto is an it was visited by more than 2.2 million
‘automotive’ service dedicated to Polish internet users.
users who want to buy and sell a car
or motorcycle. In March 2010 In third place is gazetapraca.pl,
it attracted 4.3 million real users an online service which operates using
and gained a reach level of 24%. the ‘job board’ model. Gazetapraca.pl
is a part of Gazeta.pl Group, which
Second place in this ranking is gratka.pl, belongs to Agora SA, one of the most
a service run by the Polskapresse significant Polish publishers. The
Publishing Group. The main set of website contains information on job
categories of classified ads covered market and offers advice helpful for
on the website include: automotive, jobseekers. Gazetapraca.pl attracted
real estate, jobs and tourism, however more than 1.9 million real users in
gratka.pl offers a great deal more March 2010 gaining a reach of 11%.
than just this. It cooperates with
automotive companies, as well as
real estate and HR agencies. The
main portal deals with professional
advertisements, however it provides
a subservice (ale.gratka.pl), which is
a database of solely classified ads.

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1.6. TOP FINANCE SITES BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

wp.pl (finance,
currencies, stocks,
1 pensions, financial 2 051 660 16 00:23:08 12%
passage, funds,
financial calculator)
money.pl
2 1 981 810 13 00:18:39 11%
(finance)
gazeta.pl
3 1 616 079 26 00:28:00 9%
(money, stocks)

Table 6 Top 3 finance sites in Poland by reach level (Megapanel PBI/Gemius, March 2010);
all websites presented in the table are audited

The top financial websites in Poland In 2009 this stock was taken by
are dominated by services provided another company owned by VGH,
by the largest horizontal portals. The Holtzbrinck Networks. The remaining
first position is held by wp.pl, whose 30% is owned by Arkadiusz Osiak,
service focuses on economic issues co-founder and president of money.pl.
related to finance. In March 2010 This seems like a good investment and
this service was visited by more than forward-moving company, especially
2 million real users. Such a large when Megapanel PBI/Gemius data is
audience gave the WP’s financial taken into account. According to the
section a reach of almost 12% and study, in March this year money.pl
the prime position in the ranking. The attracted almost 2 million Polish
third position in the ranking is taken internet users who constituted 11%
by a similar section of Gazeta.pl, which of the whole online population and
attracted over 1.6 million real users generated more than 25 million page
and gained a reach of 9%. As far as views.
financial subsections of portals are
concerned, another significant player Beyond the top 3 ranking, there
is the finance section of Onet.pl. are also such significant players
as eGospodarka.pl, bankier.pl or
However, the domination of gazetaprawna.pl.
horizontal portals is not total. The
second position is held by money.pl.
This vertical financial portal was
established in 2000 in Wrocław and
operates as an online magazine
devoted to financial and economic
issues. Since June 2009, the company’s
main shareholder has been the
German publishing house Handelsblatt
(70%), which belongs to the
Verlagsgruppe Georg von Holtzbrinck.

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2. ONLINE AUDIENCE

The Polish internet is the Unlike in many CEE markets,


second largest online market in the majority of Polish internet users do
CEE region; there are 17.7 million not live in the capital city or other
internet users in this country. The large metropolises. Exactly 31% of
gender structure of this considerable the online population consists of
population remains extremely individuals who live in rural areas.
balanced. In March 2010 there were A comparable force within the online
50.3% males and 49.7% females using area are individuals from small
the internet in Poland. However, it is towns and medium-sized cities (from
worth remembering that this slight 20,000 to 200,000 inhabitants), who
difference in absolute numbers means represent 30% of all internet users in
that Polish online area is populated by Poland. People from cities bigger than
almost 90,000 more men. 200,000 inhabitants represent 25% of
the online population.
The majority of Polish internet
users are young or very young people. The majority of Polish internet
More than half of the whole online users are pupils and students. They
population in this country (exactly account for 31% of the whole online
52%) consists of individuals between population. The rest has a very flat
15 and 34 years old. On the other structure: almost all occupational
hand, slow but constant growth is groups are represented equally (from
characteristic of the oldest group of 7% in the case of highly skilled workers
internet users. The proportion of Poles and freelancers, to 1% in the case of
active within the online area and older unskilled workers). The last mentioned
than 55 years has increased from 7% group, as well as military and police
in March 2009 to 8% in March 2010. officers, are represented least
frequently on the internet.
The education structure of the
Polish internet users might look quite
diversified, however a general pattern
is easily found. The population of
Poles using the internet regularly
is divided equally into three major
groups: individuals who possess an
education level from incomplete
primary to basic vocational (31%),
individuals with incomplete or
complete secondary education
(34%) and those who graduated
from schools above post-secondary,
including universities (34%). When
precise criteria of education are taken
into consideration, it appears that
the largest groups of Polish internet
users are secondary school graduates
(24%) and individuals with a higher
education (18%).

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166

3. TOOLS

3.1. BROWSERS

Chart 1 Top browsers in Poland by share of page views generated by internet users who visit Polish
websites that are using gemiusTraffic (gemiusTraffic1Q 2007 – 1Q 2010)

3.1. Browsers 2009, when those the two browsers


swapped positions.
The web browser most intensively
used in Poland is Mozilla Firefox. In the The third most intensively used
first quarter of 2010 the share of page browser in Poland is Opera, which
views generated by internet users in the first quarter of 2010 was
who visited websites monitored in the responsible for 11% of all page
gemiusTraffic study using this browser views generated by internet users
was 52.27%, while the corresponding on websites monitored in the
share for Microsoft Internet Explorer gemiusTraffic study. The newest player
was 31.18%. The most significant on the market, Google Chrome, during
period for this part of the online the same period managed to gain only
market was the second quarter of 4.84% of all page views.

3.2. OPERATING SYSTEMS

Chart 2 Top operating systems in Poland by share of page views generated by internet users who visit
Polish websites that are using gemiusTraffic (gemiusTraffic1Q 2007 – 1Q 2010)

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167
3.2. Operating systems
3.3. SEARCH ENGINES
As with other CEE markets, the
unquestionable leader within the
ranking of operation systems in
Poland is Microsoft Windows. In the
first quarter of 2010 the share of
page views generated by visitors
surfing websites monitored in the
gemiusTraffic study who were using
Windows XP was 72.71%. During the
last two years, the market share of
this version of the Microsoft operating
system has been slightly decreasing Chart 3 Top search engines in Poland by share of visits generated by internet users who visit Polish
websites that are using gemiusTraffic (gemiusTraffic1Q 2007 – 1Q 2010)
in favour of Windows Vista. In the
first quarter of 2010 its users were
responsible for almost 19% of all
page views generated on websites 3.4. SCREEN RESOLUTIONS
monitored in the gemiusTraffic study.

3.3. Search engines

The online market in Poland is


dominated by the Google search
engine, which during the last three
years has not lost its leading position.
In the first quarter of 2010 exactly
97.05% of all visits made by Polish
internet users on Polish websites
Chart 4 Screen resolutions in Poland by share of page views generated by internet users who visit
monitored in the gemiusTraffic study Polish websites that are using gemiusTraffic (gemiusTraffic1Q 2007 – 1Q 2010)
have their origins in Google search
results. During the same period, no
other search engine explored by
internet users in Poland (including
3.5. MOBILE DEVICES
Microsoft’s MSN and the local
solution, NetSprint) was able to break
the barrier of a 1.3% share of all visits.

3.4. Screen resolutions

The most popular screen resolution


in Poland still remains 1024 x 768.
Nevertheless, it has lost its share since
the first quarter of 2007. At the same
time, 1280 x 800 resolution (used in
notebooks) is becoming increasingly
more popular (from 4.89% in the first Chart 5 Top 5 mobile devices in Poland by the website-averaged percentage share of page views
generated by internet users from Poland, who visit the Polish websites that are using gemiusTraffic
quarter of 2007 to 20.78% in the first
(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10
quarter of 2010). **to 2010-07-25

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168
3.5. Mobile devices - models devices, only one, the iPad, grew in
popularity and increased its share
The Polish market of internet- by 3 percentage points. During the
dedicated mobile devices is dominated same period iPhone’s share as well
by the iPhone, which has a 17% share as the popular Nokia devices’ share
of page views generated by internet decreased by around 2 percentage
users from Poland, who visit the Polish points.
websites participating in gemiusTraffic.
However, what is interesting is that
among the top 5 most popular

4. BRANCH ORGANIZATIONS

IAB Poland of the Polish internet as a vital tool for


companies that use online advertising.
www.iabpolska.pl PBI’s mission is to develop the Polish
internet as a medium that would
Description: IAB Poland is an be reliable for Polish advertisers,
organization dedicated to interactive advertising agencies, investors and
marketing in Poland. Its main goal other players who work with the
is further education of the internet internet.
market regarding different methods
for using the internet. Members Members: leading Polish internet
include internet portals and publishers, internet portals owners
advertising and interactive agencies. (Gazeta.pl, Interia.pl, Onet.pl,
The Internet Advertising Bureau Wirtualna Polska), PBI partners
Poland was established in 2000 and (Gemius SA, IAB Polska, Internet
has since been an important player on Standard, News Point, Grupa Cron,
the Polish internet market. MB SMG/KRC, Transmisje Online sp.
z.o.o.).
Members: internet portals, advertising
agencies, interactive agencies,
research agencies (e.g. International SMB – Polish Direct Marketing
Data Group Poland S.A., Onet.pl Association
Group, nasza-klasa.pl, Agora S.A.).
www.smb.pl

Polish Internet Research Description: SMB is an organization


that aims to create favorable
www.pbi.org.pl conditions for the development
of direct marketing in Poland in
Description: PBI is an organization accordance with regulations and work
established by the main Polish ethics. The Polish Direct Marketing
internet publishers and largest portal Association brings together around
owners. Its aim is to create standards 100 companies and is a member
for internet research in Poland. PBI of the Federation of European
promotes solid and reliable research Direct and Interactive Marketing

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169
and International Federation of Members: Companies dealing with
Direct and Interactive Marketing. direct marketing, advertising and
The company plays a key role in the marketing communications agencies,
identification, planning and resolution database brokers, telemarketing
of problems concerning the field of companies, catalogue and mail-order
direct marketing in Poland. Its goal is firms, fulfillment companies, service
to implement and maintain standards and manufacturing enterprises and
on the market and to actively protect companies from the internet and new
companies and consumers. media sectors; together approximately
100 member enterprises.

5. OPINIONS FROM THE MARKET

Piotr Kowalczyk
Deputy Director of Advertising Products, Onet.pl

Online advertising market

What are the opportunities and obstacles for the online advertising market on your
local market?

As far as the Polish online market is concerned, the same issues can be described
both as obstacles and opportunities. For instance, online penetration and media
consumption in Poland is still relatively low, which obviously is an obstacle. On the
other hand, this means that there is a lot of space for growth, which is a great
opportunity. There is also space for improvement in general advertising processes,
which is often underestimated. However, it is one of the factors taken into account
by marketers when deciding whether to spend more money online or not.
Another obstacle is that also seen in other countries around the world: the lack
of confidence in the internet and everything that is online as a good branding
vehicle. This of course is a great opportunity for the online industry. All that needs
to be done is to provide enough evidence for online branding effectiveness.
Another important issue is the necessity to learn new ways of managing brand
communication by marketers and breaking the routine in media planning based on
many years of offline experience.

Global vs. local players

Are the local players present on your local market strong enough to compete with
the global giants? What advantages and strategies do they use in this battle?

The predominance of local players in Poland with respect to their global


competition is closely related to local support of business, which is still a great
need. Horizontal portals are a good example of this phenomenon. Global portal
brands practically do not exist on the Polish market, although a few of them have
attempted to enter the market and failed. However, from the perspective of

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170
the end user, some services, such as search engines and social networking
sites, after easy-to-conduct translation and localization into the local language,
immediately constitute valuable products. This explains why particular sectors tend
to be dominated by global players. The only exception are the local players who
have had enough time to dominate the market before the global players appeared
and who have had enough resources to develop services so that they can offer
competition to what the global players offer. This is the case with the Polish
e-commerce market.

Artur Waliszewski
Country Business Director, Google Poland

Online advertising market

What are the opportunities and obstacles for the online advertising market on your
local market?

The small and medium-sized Polish businesses have greatly profited from the
internet: it provides access to cheap yet effective online advertising. On the other
hand, large players can also benefit from web-based video by strengthening its role.
The perspectives for further development of both these fields are great.

A barrier hindering market growth is the insufficient quality of available research


services and the practical non-existence of cross-media research. The lobby
interested in maintaining the status quo is very effective in feeding negative
stereotypes about online advertising.

Global vs. local players

Are your local market players strong enough to compete with the global giants?
What advantages and strategies do they adopt in this battle?

Yes and no. An internet service is defined by three factors: technology, content and
community. The major competitive advantage of Polish online businesses over the
global players is the local content they feature, and in this respect they have the
edge on competitors. On the other hand, where technology starts to play a key
role, global players have the upper hand. Furthermore, communities contribute
an element of unpredictability to the market.

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in future?

An increasing number of Polish companies, especially those operating on the


e-commerce market, are the ones focussed on export. These companies will
discover the chances offered by the free market (EU) and the internet, i.e. the
possibility to reach foreign clients quickly.

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171
What the future has in store for us is a rapid evolution of mobile devices and cloud
computing as well as the emergence of innovative apps and online services.
A combination of these two trends may give rise to interesting phenomena
on the market.

Market specifics

What makes your local online market unique? Are there any specifics that make it
different from others in the CEE region?

The Polish market is a relatively well-measured one, although it is still struggling


to face up to expectations. It is large enough for local players to grow on a scale
that will allow them to develop and maintain viability, it is quick to implement new
trends and users are adventurous and open to novelties.

Joanna Gajewska
Communications Director, nk.pl

Global vs. local players

Are the local players present on your local market strong enough to compete with
the global giants? What advantages and strategies do they use in this battle?

Local players are strong enough – this would be the simplest and probably
the most correct answer. Brands such as Allegro, GG or NK (former Nasza Klasa)
have shown that they are able to compete with global giants effectively (i.e. eBay,
MSN, FB). Some of these above-mentioned battles are already finished, some are
not, but basic strategies in case of Polish and foreign companies are pretty much
the same. These things that make the difference are: better understanding of the
local market, of its demanding customers and of client mood swings. These might
be our local advantages.

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in the future?

Since last two years, social networking projects have been the fastest-growing
part of the online industry. Not only the number of new SNS projects present on
our market is constantly growing, but also the number of people engaged in using
them. According to the development paths that these entities have chosen it is
reasonable suspicion that they will strengthen their positions.

The second strong trend is connected with marketing research run via the internet,
especially if it comes to qualitative ones. The potential on this market is still
untapped, but there are some prerequisites that let us assume that this situation
will not last long.

Do you CEE? Poland


Romania
7.58m
internet users

1. MAINPLAYERS_173
1.1. Top10websitesbynumberofuniqueclients_173
1.2. Top10websitesbyaudiencewithsocio-demographics_174
1.3. Top10websitesbyaveragetimespentperuniqueclient_176
1.4. Topportalsbynumberofuniqueclients_177
1.5. Topsocialnetworkingsitesbynumberofuniqueclients_178
1.6. Topfinancesitesbyreach_179
1.7. Topfinancewebsitesbynumberofuniqueclients_179
2. ONLINEAUDIENCE_180
3. TOOLS_182
3.1. Browsers_182
3.2. Operatingsystems_182
3.3. Search engines_183
3.4. Screen resolutions_183
3.5. Pageimpressionsperuniqueclientandaverageviewtimeperuniqueclient_184
4. BRANCHORGANIZATIONS_184
5. ADVERTISINGNETWORKS_186
6. OPINIONSFROMTHEMARKET_187
173

1. MAIN PLAYERS

1.1. TOP 10 WEBSITES BY NUMBER OF UNIQUE CLIENTS

WEBSITE’S CATEGORY NUMBER OF NUMBER OF PAGE IMPRESSIONS AVERAGE TIME PER


UNIQUE CLIENTS PAGE IMPRESSIONS PER UNIQUE CLIENT UNIQUE CLIENT

1 hi5.com social network 4 617 621 2 336 670 870 506.0 12,657

2 trilulilu.ro video sharing 3 009 029 72 343 109 24.0 2,219

3 forum.softpedia.com forum 2 758 289 18 887 137 6.8 899

4 eva.ro women lifestyle 2 511 451 44 767 947 17.8 1,700

5 gsp.ro sports 1 759 471 42 498 615 24.1 3,570

6 realitatea.net general news 1 755 136 24 769 924 14.1 2,098

7 cancan.ro tabloid 1 692 567 42 484 069 25.1 2,500

8 acasa.ro portal/ search engine 1 673 830 12 184 065 7.2 493

9 bizoo.ro portal / search engine 1 672 231 21 157 708 12.6 664

10 libertatea.ro tabloid 1 664 521 48 054 953 28.8 3,191

Table 1 Top 10 websites in Romania by number of unique clients (SATI, by BRAT, Traffic measurement, March 2010)

In order to provide a valuable and page impressions per month and


complex analysis of the Romanian more than 4,5 million unique clients
online landscape, this chapter of the per month. The service is a social
report includes two rankings of the networking site which is American
top market players. The first is the in origin and is dedicated mainly to
ranking of top 10 websites by traffic young people.
figures (by the number of unique
clients, a cookie-based figure). It Second place belongs to trilulilu.ro,
is based on SATI, by BRAT, traffic a video sharing website. This website
measurement results. The second saw an explosive increase in its
ranking is based on the results of audience over the last 2 years and
SATI audience measurement, and in March 2010 it had over 3 million
it represents the weekly number of unique clients.
persons visiting websites and their
socio-demographic profiles. Softpedia.com was established
nine years ago and through its
According to the SATI Traffic Forum, continues its history of good
measurement, the Romanian performance, remaining in the top
section of hi5.com (only Romanian 3 of Romanian websites.
IPs are measured) is the leader of
the general ranking for Romanian Eva.ro is a site for women. It is
websites, with more than 2 billion a lifestyle service, which

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174
unexpectedly appeared within popular websites in Romania, all with
the top 10 Romanian websites. top quality content and increasing
This was mainly due to the launch of competition.
lumeacafelei.eva.ro, an interactive
game, which turned out to be Tabloids are represented by 2 websites:
a significant success in March and cancan.ro and libertatea.ro, which
April 2010, transforming eva.ro into have over 1,650,000 unique clients.
the leader in the women lifestyle’ Noteworthy is the performance of
category. the portals/search engines: acasa.ro
and bizoo.ro. Most recently acasa.ro
A continuous presence in the Top 10 went through a re-branding process
is maintained by gsp.ro in 5th place. and is now a lifestyle website.
It is the most visited sports website.
In March 2010, gsp.ro had over
1,750,000 unique clients.

The leader in the ‘general news’


category is realitatea.net, on 6th
place among the top 10 Romanian
websites. It should be mentioned
that the ‘sports’ and ‘general news’
categories are some of the most

1.2. TOP 10 WEBSITES BY AUDIENCE WITH SOCIO-DEMOGRAPHICS


Beside the traffic results (usually to a reach of 36.9% from the SATI
technical metrics as page universe: 5.2 million persons.
impressions, visits, unique clients
- cookie based indicators), the results The performances of trilulilu.ro,
of the audience for websites and forum.softpedia.com, cancan.ro and
the socio-demographic profiles of libertatea.ro, in terms of traffic are
the visitors are available. The traffic confirmed by their audience results.
results are delivered in real-time, Ejobs.ro, with 10 years in the job
while the audience and socio- sector, took 3rd place, convincing
demographic results are provided 483,000 persons on average per
at six-month periods, representing week to visit its pages. The leaders
the audience values calculated for of the sports and general news
the average week in a 6-month categories (gsp.ro and realitatea.net)
period. The last delivery corresponds respectively took 7th and 8th places
to the period September 1st 2009 in the top 10, followed closely by
- February 28th 2010. their direct competitors, sport.ro and
stirileprotv.ro.
As presented in the above table,
the Romanian section of hi5.com The socio-demographic profiles of
maintains first place, with almost the visitors reveal a balance between
2 million persons visiting the website women and men for most of the
in an average week. This corresponds websites in the top 10, except the

Do you CEE? Romania


TOP 10 WEBSITES BY AUDIENCE WITH SOCIO-DEMOGRAPHICS
GENDER
(% FROM TOTAL VISITORS
OF THE WEBSITE)
STE’S CATEGORY AVERAGE NUMBER VISITOR’S PAGE REACH WOMEN MEN
OF VISITORS PER IMPRESSIONS PER % OF VISITORS
WEEK WEEK (FROM THE
UNIVERSE)

1 hi5.com social network 1 919 000 435 025 000 36.9% 49.1% 50.9%

2 trilulilu.ro video sharing 602 000 10 884 000 11.6% 49.0% 51.0%

3 ejobs.ro job-board service 483 000 7 481 000 9.3% 53.6% 46.4%

4 forum.softpedia.com forum 472 000 3 238 000 9.1% 45.7% 54.3%

5 cancan.ro tabloid 436 000 6 552 000 8.4% 47.4% 52.6%

6 libertatea.ro tabloid 403 000 7 489 000 7.7% 48.7% 51.3%

7 gsp.ro sports 391 000 5 722 000 7.5% 32.6% 67.4%

8 realitatea.net general news 389 000 4 602 000 7.5% 46.6% 53.4%

9 sport.ro sports 358 000 5 294 000 6.9% 34.2% 65.8%

10 stirileprotv.ro general news 350 000 2 898 000 6.7% 45.8% 54.2%

AGE (% FROM TOTAL VISITORS OF THE WEBSITE) SOCIAL STATUS ESOMAR


(% FROM TOTAL VISITORS OF THE WEBSITE)

14-24 25-34 35-44 45-54 55-64 AB (HIGH) C (MIDDLE) DE (LOW)


YEARS YEARS YEARS YEARS YEARS

1 hi5.com 42.6% 26.5% 18.6% 8.9% 3.5% 34.2% 45.3% 20.5%

2 trilulilu.ro 40.6% 25.8% 20.3% 9.2% 4.0% 33.1% 45.2% 21.7%

3 ejobs.ro 32.5% 30.2% 21.7% 11.4% 4.2% 38.0% 44.5% 17.5%

4 forum.softpedia.com 39.7% 27.4% 19.5% 9.4% 4.1% 37.2% 44.8% 18.0%

5 cancan.ro 32.6% 29.2% 20.9% 11.5% 5.8% 40.6% 43.9% 15.5%

6 libertatea.ro 31.1% 28.5% 21.0% 12.7% 6.7% 41.0% 43.7% 15.3%

7 gsp.ro 33.9% 30.2% 19.9% 10.3% 5.7% 39.4% 45.4% 15.2%

8 realitatea.net 27.8% 27.6% 22.4% 13.9% 8.3% 46.2% 41.5% 12.3%

9 sport.ro 40.6% 27.4% 19.5% 8.3% 4.2% 34.9% 47.1% 18.0%

10 stirileprotv.ro 41.7% 26.7% 19.0% 8.6% 4.0% 35.0% 46.2% 18.9%

Table 2 Top 10 websites in Romania by audience (SATI, by BRAT, Audience measurement, September 2009 - February 2010, universe: 14-64 yo, urban,
internet users)
176
sports websites, gsp.ro and sport.ro, aged segment who have a high social
where men represent two-thirds of all status.
visitors.
The general news websites realitatea.
Hi5.com has the youngest audience net and stirileprotv.ro have similar
in the ranking, with almost 69% of its profiles, but realitatea.net more
visitors between 14 and 34 years old. often has visitors from the middle-
aged segment and the high social
The visitors of trilulilu.ro, ejobs.ro and status category. Stirileprotv.ro is more
forum.softpedia.com have a similar popular among younger people.
profile. They are young people in the
14-24 year-old segment. Ejobs.ro also
has a good affinity with the segment
of 25-34 year olds.

The tabloids, cancan.ro and


libertatea.ro have an audience with
a higher affinity with the middle-

1.3. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER UNIQUE CLIENT


It is of no surprise that the best agf.ro, a forum of stock-exchange
values in terms of viewtime per players. Despite the fact that the total
client are reported for websites audience is not particularly high,
recognized as forums, social networks each unique client spends more than
and sports websites. In March 2010 4 hours each month on agf.ro.
the best performance was noted for

WEBSITE’S CATEGORY UNIQUE CLIENTS PAGE PAGE VIEW TIME PER


IMPRESSIONS IMPRESSIONS UNIQUE CLIENT
PER UNIQUE (SECONDS)
CLIENT

1 agf.ro economy / finance 9 856 1 139 929 115.7 14,669

2 hi5.com social network 4 617 621 2 336 670 870 506.1 12,659

3 neogen.ro social network 1 019 772 217 752 324 213.5 9,001

4 conquiztador.ro online game 586 213 22 992 936 39.2 4,734

5 prosport.ro sports 1 068 899 30 944 930 28.9 4,150

6 sport.ro sports 1 366 747 33 874 095 24.8 3,683

7 gsp.ro sports 1 759 471 42 498 615 24.2 3,572

8 libertatea.ro tabloid 1 664 521 48 054 953 28.9 3,189

9 pgl.ro online game 53 671 3 000 760 55.9 2,918

10 mobile.ro auto / moto 497 815 46 948 849 94.3 2,696

Table 3 Top 10 websites in Romania by average time spent per unique client (SATI, by BRAT, Traffic measurement, March 2010)

Do you CEE? Romania


177
The Romanian section (only content. The average value of about
Romanian IPs) of hi5.com takes 1 hour per user for each of the sports
second place and in March 2010 its websites presented above speaks for
users spent more than 3.5 hours on itself.
this service. Next place is taken by
neogen.ro, whose unique clients Other popular websites belong to
devote an average of around the ‘games’ category. First place
2.4 hours per month for visiting among them takes conquiztador.ro,
this service. the online game where users conquer
virtual lands by answering questions.
The results gained by the sports
websites on the metric viewtime per 10th place is taken by mobile.ro,
user reveal strong competition among the international automotive
the players in this category. Gsp.ro, classified service.
prosport.ro and sport.ro are of the
highest interest for the Romanian
online audience with regard to sports

1.4. TOP PORTALS BY NUMBER OF UNIQUE CLIENTS

UNIQUE CLIENTS PAGE PAGE VIEW TIME PER


IMPRESSIONS IMPRESSIONS UNIQUE CLIENT
PER UNIQUE (SECONDS)
CLIENT

1 acasa.ro 1 673 830 12 184 065 7.2 494

2 bizoo.ro 1 672 231 21 157 708 12.6 665

3 rol.ro 1 627 150 14 560 849 8.9 521

4 apropo.ro 1 123 537 6 999 492 6.2 550

5 roportal.ro 1 053 431 3 430 826 3.2 312

Table 4 Top 5 portals in Romania by number of unique clients (SATI, by BRAT, Traffic measurement,
March 2010)

Horizontal portals, which provide targeted to a business audience,


a large variety of information, providing services to companies.
have also attracted the interest of The struggle between these two
Romanian visitors last year. Acasa.ro players is clearly visible and in March
confirmed its leading position from 2010 bizoo.ro lost 1,600 unique
2009, gaining more than clients compared to acasa.ro, but
1.5 million unique clients each it beat its rival as far as all other
month. Recently, acasa.ro was indicators are concerned.
rebranded and is now re-positioning
itself as a lifestyle website. Its main Rol.ro, in third place, is one of the
competitor is bizoo.ro, a portal oldest portals in Romania. However,

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178
the portal does not remain far behind The other two players apropo.ro and
the leaders and in March 2010 its roportal.ro, managed to exceed
unique clients amounted to 1,627,150 1 million unique clients per month.
users.

1.5. TOP SOCIAL NETWORKING SITES BY NUMBER OF UNIQUE CLIENTS

UNIQUE CLIENTS PAGE PAGE VIEW TIME PER


IMPRESSIONS IMPRESSIONS UNIQUE CLIENT
PER UNIQUE (SECONDS)
CLIENT

1 hi5.com 4 617 621 2 336 670 870 506.0 12,659

2 tpu.ro 1 061 704 5 410 137 5.1 438

3 neogen.ro 1 019 772 217 752 324 213.5 9,001

4 netlog.com 887 181 37 146 597 41.8 2,274

5 mysport.ro 127 964 2 424 403 18.9 1,207

Table 5 Top 5 social networking sites in Romania by number of unique clients (SATI, by BRAT, Traffic
measurement, March 2010)

Romanian users are passionate into third place. One of the oldest
about social media, keen on social media brands in Romania,
communication, and they like to neogen.ro, is not only a dating
make friends and have fun. This platform, but also has the integrated
explains the tremendous success of services which include classifieds,
social networking sites in Romania. destinations, events, and games.
These websites are well represented
by both international (hi5.com and
netlog.com) and local brands (tpu.ro,
neogen.ro, mysport.ro).

Measuring only visitors with


Romanian IPs, the Romanian section
of hi5.com manages to attract more
than 4 million unique clients each
month. Moreover its users generate
around 2 billion page impressions,
over 500 page impressions per
unique client and spent on average
3.5 hours per UC.

Tpu.ro is a question and answer


website. Being a relatively new
community, tpu.ro has grown
extremely quickly and sent neogen.ro

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179

1.6. TOP ONLINE CLASSIFIED ADS BY NUMBER OF UNIQUE CLIENTS

UNIQUE CLIENTS PAGE PAGE VIEW TIME PER


IMPRESSIONS IMPRESSIONS UNIQUE CLIENT
PER UNIQUE (SECONDS)
CLIENT

1 ejobs.ro 1 619 217 39 412 460 24.3 1,105

2 bestjobs.ro 1 076 429 37 458 490 34.8 1513

3 auto.ro 643 570 18 302 180 28.4 2052

4 automarket.ro 619 652 10 008 106 16.1 1050

5 publi24.ro 285 854 9 305 025 32.5 1 304

Table 6 Top 5 online classified ads in Romania by number of unique clients (SATI by BRAT Traffic
measurement March 2010)

Among the websites publishing small- Publi24.ro represents websites


ads, those from the ‘jobs’ category publishing small-ads of all types (auto,
are visited most. Both ejobs.ro and jobs, real estate, etc.), however it only
bestjobs.ro have over 1 million unique has about 286,000 unique clients each
clients each month. month.

The classifieds from the ‘auto’


category also generate significant
traffic. In March 2010, the leaders
in this category were auto.ro and
automarket.ro, with more than
600,000 unique clients.

1.7. TOP FINANCE WEBSITES BY NUMBER OF UNIQUE CLIENTS

UNIQUE CLIENTS PAGE PAGE VIEW TIME PER


IMPRESSIONS IMPRESSIONS UNIQUE CLIENT
PER UNIQUE (SECONDS)
CLIENT

1 wall-street.ro 948 715 4 884 262 5.1 386

2 zf.ro 874 223 7 430 477 8.4 1,143

3 money.ro 675 282 3 743 291 5.5 743

4 avocatnet.ro 632 521 4 614 248 7.2 888

5 capital.ro 579 314 2 899 750 4.9 750

Table 7 Top 5 finance websites in Romania by number of unique clients (SATI by BRAT Traffic
measurement March 2010)

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180
Providing financial news, articles Zf.ro is the online platform of Ziarul
about banks, business opportunities Financiar, one of the most successful
as well as information about business newspapers in Romania.
Romanian funds, ‘Business and
Finance’ is one of the categories After a year of its launch, the
where competition is strong, with business portal Money.ro came
more than 20 websites competing. third. With a loss of 43,000
Wall-street.ro was the leader in compared to money.ro, avocanet.ro,
March 2010, with almost 950,000 an online legal community, ranks
unique clients. It belongs to Internet fourth. 5th place is taken by capital.ro.
Corp, an independent Romanian
publisher.

2. ONLINE AUDIENCE

The gender structure of the accounted for 8%. School children of


Romanian internet users is relatively grades 1 to 11 accounted for 15% of
balanced, reflecting the general the online population.
structure of the population. Men
are only slightly better represented As in other CEE countries, the
than women according to SATI, by majority of internet users in Romania
BRAT. Men accounted for 50.7% of lives in the capital city (Bucharest)
the online population, and women or in other large cities (over 200,000
49.3%. inhabitants); this amounts to
approximately 45% of all internet
According to SATI (Audience users. 28% of the Romanian online
measurement, September 2009 population live in cities with 50,000
- February 2010, universe 14-64 – 200,000 people. The remaining
yo, urban), the Romanian online 27% live in places with less than
market is dominated by young and 50,000 inhabitants.
very young people; 70% of them are
under 40 years old. The number of The managers or freelancers
internet users decreases with age with high level of education together
with almost 2% of users over 60 with students and pupils as well as
years old. the entrepreneurs and independent
professionals with university degree
Graduates of high schools and comprise 45.2% of Romanian
universities are extremely well internet users.
represented among Romanian
internet users. According to SATI
(Audience measurement, September
2009 - February 2010, universe 14-
64 yo, urban) they constituted 77%
of the total number of the internet
users. Vocational school graduates

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182

3. TOOLS

3.1. BROWSERS

Chart 1 Top browsers in Romania by share of visits made from each in total number of visits
(SATI, by BRAT, Traffic measurement, 2007 Q4 – 2010 H1)

3.1. Browsers has been declining; in the first half of


2010 Firefox’s share on the market
For a long time the Romanian browser amounted to 42%. Other browsers
market was dominated by Microsoft used by Romanian internet users are
Internet Explorer. However, MSIE’s Chrome and Opera. However, their
share has been decreasing over the market shares are not significant and
past few years. In the first half of 2010 amounted to only 7% in the first half
it constituted only 43%. Moreover, of 2010.
Firefox has been catching up with
MSIE and the distance between them

3.2. OPERATING SYSTEMS

Chart 2 Top operating systems in Romania by share of visits made from each in total number of visits
(SATI, by BRAT, Traffic measurement, 2007 Q4 – 2010 H1)

Do you CEE? Romania


183
3.2. Operating systems
3.3. SEARCH ENGINES
As with other CEE markets, the
unquestionable leader among
operating systems in Romania is
Windows XP. In the first half of 2010
its market share accounted for 78%
of the online audience and the
situation does not allow to predict
any changes in the nearest future. The
second player on the market is the
newcomer: Windows 7, which gained
more than 9% over the last twelve
months before the study.

3.3. Search engines


Chart 3 Top search engines in Romania by share of visits initiated by each in total number of visits
(SATI, by BRAT, Traffic measurement, 2007 Q4 – 2010 H1)
As in other CEE search engine
markets, the leader in Romania is
Google. In the first half of 2010 it each month. This visible change
was responsible for 96% of all visits occurred in the last trimester of 2009,
made on websites monitored by BRAT due to the Romanian branch of
and the situation has been relatively hi5.com, which at that time joined
constant over several years. The other the SATI study.
noteworthy search engine is Yahoo
constituting 1.5% of the Romanian Note: The above figures related to
search market. viewtime and page impressions/client
are calculated only for Romanian
3.4. Screen resolutions websites, measured by SATI. The
traffic on the large global websites
The distribution of screen resolutions (such as Google) is not included in the
has remained almost constant over calculation.
the years; 1024 x 768 comes in first
place with a 31% share, followed by
1280 x 1024 (18%). Also, the 1280 x
800 screen resolution is quite popular.
3.4. SCREEN RESOLUTIONS

3.5. Page impressions and average


time per user

In recent years, the Romanian


internet has grown not only in terms
of number of visitors, but also in
terms of number of page impressions
generated by users and average time
spent by them on websites. Currently,
an average user (unique client) in
Romania generates about 523 page
impressions per month and at the
same time he or she spends more
than 6.5 hours surfing the internet Chart 4 Top screen resolutions in Romania by share of visits with recognized resolutions used by
visitors in total number of visits (SATI, by BRAT, Traffic measurement, 2007 Q4 – 2010 H1)

Do you CEE? Romania


184

3.5. PAGE IMPRESSIONS PER UNIQUE CLIENT AND AVERAGE


VIEWTIME PER UNIQUE CLIENT

Chart 5 Page impressions and average time spent per user (unique client) in Romania (SATI, by BRAT,
Traffic measurement, September 2007 - June 2010) of visits (SATI, by BRAT, Traffic measurement,
2007 Q4 – 2010 H1)

4. BRANCH ORGANIZATIONS

BRAT Members: Publishing houses, online


publishing houses, advertising
www.brat.ro networks, advertising agencies,
advertising clients.
Description: The goal of the BRAT
association is to independently and
objectively verify the performance Asociatia IAB Romania
indicators of various media products
based on conventional criteria, www.iab-romania.ro
standardized at the national level
and established by members of the Description: IAB Romania brings
association. The information obtained together the most important members
is intended for the advertising of the media and advertising industry
industry. BRAT was established on in Romania. The goals of IAB are to
20 February 1998 by 33 founding promote the interactive advertising
members. As a result of the total industry, impose international
transparency of BRAT, the number of standards, develop and promote
members has increased to 238. From programs to educate advertisers and
2007 BRAT has implemented the SATI publishers, IAB produces and supports
study (internet audience and traffic studies on the efficiency and power of
research) online advertising, as well as publishes

Do you CEE? Romania


185
market data and analysis. Last but Advertising Council is preparing to
not least, the organization formulates offer copy advice. RAC was established
and promotes a code of ethics for the in 1999. It was the initiative of a union
online advertising industry in Romania. in support of the advertising industry
The IAB association in Romania was in Romania which belonged to several
established in 2006. companies and to the International
Advertising Association (IAA). The
Members: Online publishing houses, activity of the Romanian Advertising
advertising networks, advertising Council is based on the Code of
agencies, advertising clients. Advertising Practice, developed by
its members. The Code is a set of
ethical rules to be respected by all
International Advertising Association those involved in advertising and any
form of commercial communication.
www.iaa.ro The document’s purpose is to
support the development of honest
Description: The International and decent business in Romania
Advertising Association is a unique by offering a guide to the form and
strategic partnership which defends content of correct, honest and decent
the common interests of all disciplines information of the consumer and
in the whole spectrum of the the industry.
marketing communications industry
from advertisers to media companies, Members: RAC has 50 members:
agencies, direct marketing companies companies, advertising agencies,
and individual practitioners. The main media and associations. In turn,
objectives of IAA are to promote the Council is a member of other
the role and benefits of advertising, European (EASA - European
to protect and promote freedom of Advertising Standards Alliance) and
commercial speech and consumer global (IAA - International Advertising
choice, to encourage self-regulation Alliance) organizations.
and practice of advertising and to offer
a forum for discussion of new topics
related to marketing communications.
IAA Romania was founded in 1993.

Members: Advertisers, media


companies, agencies, direct marketing
firms.

Romanian Council for Advertising

www.rac.ro

Description: Romanian Advertising


Council (RAC) is a professional,
non-governmental, non-profit and
independent organization. The activity
of the Council is self-regulation in
advertising. At present, the Romanian

Do you CEE? Romania


186

5. ADVERTISING NETWORKS

GENERAL CONTACT INFORMATION


FULL NAME HOMEPAGE URL ADDRESS MAIN OFFICE CONTACT
ADDRESS

Str.Turturelelor, nr 11A, et.5, Fax: +40 (0) 31-815-67-52


1 Ad Evolution adevolution.ro
corp C, sector 3, Bucuresti Email: office@adevolution.ro

Phone: +40 (0)31-825-64-61


Str. Tudor Arghezi nr. 3B, sector
2 Apropo Media apropomedia.ro Fax: +40 (0) 31-825-61-55
2, Bucuresti
Email: orlando.nicoara@mpinteractiv.ro

Phone: +40 (0) 372-111-777


Blv. Iuliu Maniu, nr. 7, cladirea B,
3 ARBOinteractive arbointeractive.ro Fax: +40 (0) 372-111-711
etaj 3, Sector 6, Bucuresti
Email: calin.rotarus@arbointeractive.ro

Str.Turturelelor, nr 11A, cladirea


Phone: +40 (0) 37-401-39-00
4 Beyond Media beyond.ro Phoenicia Business Center, etaj
Email: suport@beyond.ro
5, sector 3, Bucuresti

Phone: +40 (0) 21-232-03-26


Str. Nucsoara nr.13, bloc 32, sc.
5 Digital 4 People digital4.ro Fax: +40 (0) 21-232-03 -6
A, ap. 2, Sector 6, Bucuresti
Email: office@digital4.ro

Phone: +40 (0) 21-209-53-33/ ext. 132


Blv. Pierre de Coubertin 3-5, Of-
6 Digital Ads digital-ads.ro Fax: +40 (0) 21-209-56-62
fice Building, Sector 2, Bucuresti
Email: oana.lupoaie@digital-ads.ro

P-ta Presei Libere nr 1 , Casa Phone: +40 (0) 21-549-37-90


7 F5/X Media f5xmedia.ro Presei Libere Corp A3, et2, Sec- Fax: +40 (0) 21-310-31-29
tor 1, Bucuresti Email: office@f5xmedia.ro

Str Av. Sanatescu 40, Sector 1, Phone: +40 (0) 21-314-43-82


8 HttPool httpool.ro
Bucuresti Email: info@httpool.ro

Str. Pache Protopescu nr 109, Phone: +40 (0) 31-825-02-65


9 IBU Pro TV ibu.ro
Bucuresti Email: constantin.cocioaba@protv.ro

Calea Torontalului DN6 Km 5- Phone: +40 (0) 259-410-115


10 Inform Media Informmedia.ro 7,Cod postal – 300633, Fax: +40 (0) 259-436-639
Timisoara Email: monica.trusca@informmedia.ro

Phone: +40 (0) 21-406-65-07


Blv. Ficusului nr. 44A, et. 3, corp
11 Intact Interactive intactinteractive.ro Fax: +40 (0) 21-406-65-84
A, cam. 16, sector 1, Bucuresti
Email: contact@intactinteractive.ro

Phone: +40 (0) 31-228-66-09


Str. Putul lui Zamfir nr. 28, Sector
12 Internet Corp Internetcorp.ro Fax: +40 (0) 31-228-61-23
1, Bucuresti
Email: mihai@internetcorp.ro
Phone 1: +40 (0) 21-665-75-99
Str. Panait Istrati nr. 55, Sector 1, Phone 2: +40 (0) 21-665-75-55
13 Splendid Interactive splendidmediagroup.ro
Bucuresti Fax: +40 (0) 21-665-75-12
Email: office@splendidmediagroup.ro
Phone: +40 (0) 21-410-10-38
Str. Dr. Staicovici, nr. 14,
14 ThinkDigital thinkdigital.gr/ro/ Fax: +40 (0) 21-411-11-33
Bucuresti
Email: brain@thinkdigital.ro

Blv. Unirii nr. 19, bl. 4B, parter, Phone: +40 (0) 21-209-56-79
15 TradeAds tradeads.eu sector 5, Bucuresti, postal code: Fax: +40 (0) 21-209-56-79
040103 Email: office@tradeads.eu

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6. OPINIONS FROM THE MARKET

Adina Vasilescu
New Media Publisher, Sanoma Hearst

Online advertising market

What are the opportunities and obstacles for the online advertising market on
your local market?

There are still lots of opportunities for online services and transaction based
models in many segments of Romanian cyberspace. If we look at top 20 websites
in Romania there are a lot of brand extensions from print media, which are
mainly content websites making money from advertising. The Romanian web is
still in the 1.0 phase, with some exceptions. The main problem is that despite
a good internet penetration rate, online advertising spendings remain modest.
Advertisers need first to understand the nature of online projects, then they will
learn to trust the web and began to spend real money online.

Dominating trends

What are the recent trends on your local online market? What areas are
expected to develop most in the future?

On the one hand, social media, communities and all forms of user-generated
content are growing in popularity. On the other hand, the future of e-commerce
is promising and this will be key for both user and advertiser behavior within the
next 3-5 years.

Global vs. local players

Are the local players present on your local market strong enough to compete
with the global giants? What advantages and strategies do they use in this
battle?

There is little local strength compared to the large successes of international


companies. A long path awaits Romania in order to reach a comparable level of
development of other countries of the region (e.g. the Czech Republic, Hungary,
and Poland). As long as most of the successful local websites copy international
concepts, Romania will not be able to compete at the global level. What is
needed is more investment in innovation and the creation of models adapted to
the specifics of the Romanian market in areas where international concepts have
proved ineffective (e.g. online real estate).

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Market specifics

What makes your local online market unique? Are there any specifics that make
it different from others in the CEE region?

The Romanian online market cannot yet be termed fully ‘mature’ when
compared with other CEE countries and it stills lacks the necessary know-
how and vision. More entrepreneurs as well as experienced managers are
needed for this market to continue to develop. Fast and effective growth in
the online business most certainly lies in the future which means there are still
opportunities for investors in this market.

Alex Visa
Managing Partner, Hyperactive

Online advertising market

What are the opportunities and obstacles for the online advertising market on
your local market?

The global economic downturn has slowed down the Romanian advertising
market as a whole, and this has also affected the internet advertising market.
Compared to other European markets, which registered a 10% increase
compared to the previous year, Romania had a 5% to 10% decrease in 2009
compared to 2008. Even with this decrease, the internet has declined less than
other types of media, and may be considered the ‘winner’ among media types.

The share of spend dedicated to digital media has grown rapidly over previous
years, and is still expected to grow in the upcoming years. For 2010 we estimate
a 5% budget share dedicated to online media. Even so, this is well below the
18% average of other European countries.

Dominating trends

What are the recent trends on your local online market? What areas are
expected to develop most in the future?

The era of treating online products as ‘add-ons’ to any campaign has already
peaked, and the growing trend is to have campaigns revolving around an ‘online
anchored 360 concept’. More major brands have started to take online seriously
and to develop campaigns and communications strategies around a well
rounded, online anchored concept. Social media usage is also growing rapidly
and will continue to grow.

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189
Global vs. local players

Are the local players present on your local market strong enough to compete
with the global giants? What advantages and strategies do they use in this
battle?

The situation is mixed in this matter. Medium- and small-sized local brands are,
in certain cases, more advanced than global giants. Nevertheless, global brands
are slower to start but faster to implement an integrated online anchored
campaign, and usually have larger budgets for such endeavors.

Laurentiu Pop
Deputy Managing Director, Httpool

Online advertising market

What are the opportunities and obstacles for the online advertising market on
your local market?

The Romanian online advertising market is blooming with opportunities at


the moment. There are new online advertising products available on the
market and advertisers are ready to use them and try new things. One of the
biggest advantages of the Romanian market is, of course, its high broadband
penetration and the increasing interest that Romanians of all ages have in
using the internet. The willingness and the necessity to communicate and
share information is characteristic for both users and advertisers, therefore it is
a positive environment for online advertising.

However, there is still some work to be done until the internet reaches the level
of awareness and credibility that it has gained in western countries, and that can
only be achieved through constantly educating of all the stakeholders involved
about the benefits online advertising can bring.

Dominating trends

What are the recent trends on your local online market? What areas are
expected to develop most in the future?

The trends on the local market are influenced by the global climate and
economic environment. The first trend is connected to the professionalization
of the market by requesting full reports, by optimizing campaigns as they run
and using all data available in order to become increasingly more efficient.
The second trend is highlighted by large global advertisers that are developing
branding campaigns in their fight to gain a market share in the times of the
recession.

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190
Global vs. local players

Are the local players present on your local market strong enough to compete
with the global giants? What advantages and strategies do they use in this
battle?

Local players developed extremely well during the first years of the
implementation of the Romanian internet infrastructure so it is difficult for
global players access the main sectors such as Sports, Auto or Jobs. This is why
global players enter the Romanian market through the purchase of Romanian
players (for example, in the Jobs and Auto sectors). Of course, there are
exceptions in areas like E-mail or Search where the global players are too strong.

Market specifics

What makes your local online market unique? Are there any specifics that make
it different from others in the CEE region?

The people and geopolitical position of Romania is in itself unique. Firstly,


Romanian users are modern and keen on testing new products. Secondly,
Romania is the only Latin-based linguistic area in the region and this has had
a great impact of the way the internet market has developed so far and will
continue to influence the way it will develop in the future.

Cezar Paraschiv
Account Manager, Starcom Romania
Silviu Toma
Online Media Planner, Starcom Romania

Online advertising market

What are the opportunities and obstacles for the online advertising market on
your local market?

It is inevitable that we take as a benchmark what happens in other so-


called more ‘mature’ online industries. The internet is the same for all of
us (not including countries in the Middle East or China where parts of it are
banned) thus we all function on a level playing field and have almost the
same opportunities in terms of developing complex projects leveraging the
particularities of the medium. However, the ‘maturer’ countries are one step
ahead of Romania. This is because their marketing culture is some way ahead
of the Romanian one. One opportunity is the accessibility of online marketing
knowledge that is narrowing the gap between Romania and the West. Romania
will eventually move on from “intuitive online marketing” to “knowledge based
online marketing” but the lack of online professionals both in agencies and in
the marketing departments of clients is now the greatest obstacle. We must
not forget that we are functioning in a genuinely ‘idea’ field and of course great
ideas only succeed if they are shared by people with common visions.

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191
Dominating trends

What are the recent trends on your local online market? What areas are
expected to develop most in the future?

In the past 3 years, specialists have claimed that mobile marketing is the ‘next
big thing’. However, experience has shown us that the mobile channel was and
continues to be poorly leveraged. This will change because of the smartphone
market boom. Smartphones are moving the internet to the streets. Once mobile
websites appear, mobile display advertising will explode.

Another local trend is the growing use of social media. Increasingly more clients
are moving from outbound marketing to inbound marketing.

Global vs. local players

Are the local players present on your local market strong enough to compete
with the global giants? What advantages and strategies do they use in this
battle?

Global giants have money, local players have flexibility. Global giants come with
a set of rules, and most of the time follow certain patterns when it comes to
online advertising. Local players can counterattack with intelligent projects that
can be cheap but extremely effective. After all, the internet is a medium which
offers a whole variety of possibilities.

Market specifics

What makes your local online market unique? Are there any specifics that make
it different from others in the CEE region?

The market still has many free niches for e-commerce or niches without a clear
leader in terms of volume of sales and brand perception (books, clothes,
vouchers etc). The volume of online transactions has doubled every year from
2004 to 2009.The best-selling products are from IT&C, fashion, entertainment,
tourism (plane tickets and package holidays). Hi5 is still the largest social
networking site in the country but Facebook is quickly growing (currently
1,500,000 users) and will probably overtake Hi5 (2,500,000 users) this year.
Twitter only has 30,000 users.

The Romanian market has more digital agencies than online success businesses.
There are several large investors like NCH and Naspers but they are only active
in online media and services like job sites or second hand car sites. There have
been no major investors in e-commerce and research so far.

Do you CEE? Romania


Russia
40.96m
internet users

1. MAINPLAYERS_193
1.1. Top10websitesbyreach_193
1.2. Top10websitesbyaveragetimespentperuser_194
1.3. Topportals_195
1.4. Social networks_196
1.5. Onlineclassifiedadsbyreach_197
1.6. Topfinancesitesbyreach_198
2. ONLINEAUDIENCE_198
3. TOOLS_200
3.1. Browsers_200
3.2. Operatingsystems_201
3.3. Search engines_201
3.4. Screen resolutions_201
3.5. Mobiledevices_202
4. BRANCHORGANIZATIONS_202
5. ADVERTISINGNETWORKS_203
6. OPINIONSFROMTHEMARKET_204
193

1. MAIN PLAYERS

1.1. TOP 10 WEBSITES BY REACH

WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH
USERS VIEWS USER USER

1 Yandex horizontal portal 33 990 064 6 157 314 817 181 05:36:42 83%

2 Mail horizontal portal 31 835 999 9 711 805 546 305 06:35:34 78%

3 vkontakte.ru social network 23 099 316 41 925 538 754 1815 17:11:46 56%

4 Google search engine 18 739 727 1 194 681 324 64 01:29:29 46%

5 odnoklassniki.ru social network 17 925 656 3 383 276 223 189 03:45:18 44%

6 wikipedia.org online encyclopedia 14 240 047 156 275 754 11 00:17:44 35%

7 Rambler horizontal portal 13 520 218 1 020 410 546 75 01:34:30 33%

8 mozilla.com Corporate website 11 881 588 61 423 784 5 00:12:45 29%

9 marketgid.com e-shop catalogue 10 401 793 63 321 810 6 00:22:35 25%

10 microsoft.com corporate website 10 039 073 70 266 850 7 00:07:17 25%

Table 1 Top 10 websites in Russia by reach level (gemiusAudience, March 2010)

The division into three groups, and amounted to 83% in March


as observed in 2009, is gradually 2010. Due to this domination of
diminishing. A year ago, the first domestic leaders, there is not much
group had a reach of around 70% room left for Google, which reaches
and included the websites Yandex 46% of the audience. Moreover, the
and Mail; the second group’s reach global giant lost almost 2 percentage
oscillated around the 40% mark and points last year. The sole field where
included Odnoklassniki, Google, Google manages to outreach its local
Rambler and Vkontakte and the third competitors is with online videos,
group, which included Wikipedia, i.e. youtube.com, the Google-owned
Mozilla, Marketgid and Microsoft with service. It outperforms the analogous
a reach around 25% of the Russian platforms of Yandex and Mail in terms
audience. In 2010, apart from Yandex of reach.
and Mail, which consistently lead the
market, the majority of other players Mail.ru, the major rival of both Yandex
shifted their positions. However, and Google, is a horizontal portal
during the last year there was no new acquired by Digital Sky Technologies.
entry in the top 10 ranking. The company is said to control
significant share of the page views
Yandex.ru, a local search engine generated on the whole Runet mostly
and horizontal portal, dominates via Mail, Odnoklassniki and Vkontakte.
the market. Since last year, its reach Moreover, it owns 5% of the
grew by almost 5 percentage points worldwide giant Facebook and also

Do you CEE? Russia


194
has some shares in the social network increased by 6 percentage points since
games developer Zynga. Despite the last year. It is now in 6th place in the
power of DST behind Mail.ru, ranking.
the service is still unable to regain
the leading position in the ranking The next position in the ranking was
and catch up with Yandex. Although taken by Rambler, a horizontal portal
its reach increased by almost which at the beginning of 2009 was
4 percentage points compared to among the top 5 players on the
last year, the growth of Yandex was market, but since May 2009 has been
1 percentage point higher. gradually losing ground, ending up
with a reach of 33% in March 2010.
The service that recorded the highest
increase (more than 10 percentage As it was last year, 9th place was
points) over the past year was the taken by marketgid.com, an e-shop
social networking site Vkontakte. catalogue, price comparison service
With a result of 56%, it now takes third and advertising centre. Although the
place in the reach ranking. At the same service gathered more than 2,000,000
time, its main rival, Odnoklassniki.ru, users last year, its reach remained
is stagnating and its reach has stable at 25%.
decreased by 1 percentage point from
March 2009. Competition between 8th place was taken by mozilla.com.
these two social networking websites Another global service, microsoft.com,
is quite evident, despite the fact that came in 10th.
DST has a controlling interest in both.

The second most dynamic growth was


recorded by Wikipedia, whose reach

1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER

NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH


REAL USERS USER PER USER

1 vkontakte.ru 23 099 316 1815 17:11:46 56%

2 Mail 31 835 999 305 06:35:34 78%

3 Yandex 33 990 064 181 05:36:42 83%

4 odnoklassniki.ru 17 925 656 189 03:45:18 44%

5 fotostrana.ru 4 163 547 137 02:48:30 10%

6 loveplanet.ru 2 701 523 159 02:07:50 7%

7 dating.ru 858 401 160 01:41:19 2%

8 Rambler 13 520 218 75 01:34:30 33%

9 rbc.ru 8 214 709 25 01:31:50 20%

10 Google 18 739 727 64 01:29:29 46%

Table 2 Top 10 websites in Russia by average time spent per user (gemiusAudience, March 2010)

Do you CEE? Russia


195
When taking into consideration ranking Social networking websites are
by average time per user, the leading over-represented in the top ranking
position is taken by Vkontakte.ru by average time per user, where
with a clear result exceeding 17 hours half of the services belong to this
monthly, giving each user more than category. Apart from Vkontakte and
half an hour daily. Such a high score Odnoklassniki we also find Fotostrana,
is partly due to the applications another social networking website,
available on this service as well and the dating services loveplanet.ru
as the large amount of streaming and dating.ru.
audio and video content available
for network users. Streaming content Rambler.ru, a horizontal portal (8th)
is considered one of the major traffic and RBC.ru, a business portal (9th) are
drivers for Vkontakte.ru. the next two sites in the ranking. Last
place is taken by Google with a result
The second player in the ranking, Mail.ru, of 1 hour and 29 minutes, which is
has an incredible 11 hours less than almost 1 hour less than the previous
the leader. However, Mail outranks its year.
main rival Yandex by almost one hour.
4th place is taken by Odnoklassniki.ru,
but compared to last year its result is
lower by two hours.

1.3. TOP PORTALS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 Yandex 33 990 064 181 05:36:42 83%

2 Mail 31 835 999 305 06:35:34 78%

3 Rambler 13 520 218 75 01:34:30 33%

4 rbc.ru 8 214 709 25 01:31:50 20%

5 qip.ru 3 270 639 17 00:39:30 8%

Table 3 Top 5 portals in Russia by reach level (gemiusAudience March 2010)

The leaders among horizontal portals outside the domestic internet. The
are services that dominate the whole company also runs a horizontal portal
Russian online market: Yandex and providing a wide range of additional
Mail. The first was founded in 1997 services including maps, traffic
and evolved into the largest Russian information, images, a news and blog
search engine providing its users with search as well as a spam-free email.
a targeted web search and information
retrieval services as well as an option Yandex’s main rival is Mail.ru, the
of limiting searches only to websites former market leader, which after

Do you CEE? Russia


196
losing its position in September by Digital Sky Technologies it is likely
2008 cannot catch up with Yandex. that the third most popular messenger
On average Mail has around on the Russian market will be merged
a 5-percentage-point worse result with this platform.
than Yandex each month. Mail was
created in 1998 as an e-mail web The third force among horizontal
service with an intention to be sold to portals is Rambler, reaching 33%
western companies. However, after of the Russian audience. However,
temporary open access for Russian nowadays it is not very successful and
users, it grew in popularity. After a few is gradually losing its market share
mergers and acquisitions, it is now (a loss of 11 percentage points
owned by Digital Sky Technologies. compared to last year) and the interest
It provides a wide spectrum of online of users.
services such as the social networking
website moimir@mail.ru; a portal for In contrast, 4th place is taken by
parents expecting a child kids@mail.ru; the RBC.ru business portal, which
mobile services mobile@mail.ru; reach grew by 8 percentage points
a women’s glossy online magazine compared to last year. It belongs to
ledi@mail.ru; a payment system the RBC media group which also owns
dengi@mail.ru with new capabilities a dating network, messenger and
allowing users to access their online payment system as well as the
electronic money as well as many website in 5th place, qip.ru, which was
other services. Mail also runs the created as a default starting page for
instant messaging service Mail.Ru users who had installed QIP as instant
Agent, however after purchase of ICQ messenger.

1.4. SOCIAL NETWORKS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 vkontakte.ru 23 099 316 1815 17:11:46 56%

2 mail.ru - MoiMir 18 925 661 142 03:40:50 46%

3 odnoklassniki.ru 17 925 656 189 03:45:18 44%

4 moikrug.ru 1 968 640 5 00:03:59 5%

5 facebook.com 1 939 727 39 00:24:24 5%

Table 4 Top 5 social networks in Russia by reach level (gemiusAudience, March 2010)

The Russian social networking market mainly caused by the implementation


saw great changes last year. The of paid services which discouraged
former leader Odnoklassniki, the users. Even the offline ad campaigns
local version of classmates.com, lost run by this portal did not help
its place in favor of vkontakte.ru, the and during last year its reach fell by
Russian Facebook clone. This loss was 1 percentage point, while Vkontakte

Do you CEE? Russia


197
grew by 10 percentage points. Its cross-linking and adverting with other
success may be partly attributed to applications. MoiMir became the first
the fact that it is free and provides the project in RuNet to offer application
majority of the functions also available developers such functionalities.
on Facebook such as applications,
groups as well as a great amount of What is characteristic about
audio and video streaming content the Russian market is the poor
available for network users. Streaming performance of Facebook, which
content is considered one of the neither gained a high reach level (5%),
major traffic drivers for vkontakte.ru nor grew dynamically (3 percentage
(even including the Vkontake torrent points year on year), while in some
tracker). The second force among other countries in the CEE region in
the social networking websites is 2009 it made it to the top 10 reach
MoiMir, owned by Mail.ru. It also rankings.
grew over the past year and its reach
increased by 10 percentage points.
Such a dynamic increase was partly
the result of several strategic changes
in the rules for application developers.
Now they can use links to external
resources, so they have additional
opportunities to make money through

1.5. ONLINE CLASSIFIED ADS BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 avito.ru 6 020 044 20 00:18:24 15%

2 mail.ru - avto 4 749 039 12 00:17:10 12%

3 mail.ru - job 4 317 592 7 00:08:24 11%

Table 5 Top 3 online classified ads in Russia by reach level (gemiusAudience March 2010)

The most popular classifieds service where auto.mail.ru is a great deal


in Russia is avito.ru, owned by more engaging. The average time
Contact East holding whose largest spent on this website per user, per
shareholder is the investment banking month exceeds the job service by
concern Kinnevik. It was launched in almost 9 hours.
2007 and is a leading multi category
classified ads service. The other two
services belong to mail.ru and are the
subdomains of this horizontal portal.
While the reach of both services is
almost equal, a huge discrepancy can
be observed in terms of user activity,

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198

1.6. TOP FINANCE SITES BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 banki.ru 692 380 14 00:16:21 2%

2 quote.ru 373 093 19 01:06:36 1%

Table 6 Top 2 finance sites in Russia by reach level (gemiusAudience, March 2010)

The most popular finance service amounts to only 2%. Second place is
measured in the gemiusAudience taken by the quote.ru vertical portal
study is banki.ru. It was launched run by RBC, which has 1% of the
in 2005 and aimed to establish Russian online audience. However, its
a permanent dialogue between users are highly engaged in the site
banks and their customers. It began and devote an average of over 1 hour
as a regular forum but is now per user on this website monthly.
a ‘hotline’, where major Russian banks
communicate with their customers.
However, the service does not
attract a wide audience and its reach

2. ONLINE AUDIENCE

Males dominate the Russian As far as the education structure


online market and account for is concerned, users with a higher
52%, which is characteristic of level of education (38%) as well as
less developed markets. However, vocational training (32%) dominate
compared to last year, the gap is the market. However, it should be
gradually diminishing and the share of highlighted that only users over
females in the online population grew 18 years old were taken into account
by 1 percentage point. in the study. Moreover, as shown
on the next chart, a large amount
Runet is still dominated by young (21%) of Russian internet users live in
people aged 18-34, who account Moscow, where the amount of well
for 61% of the online population. educated people is proportionally
However, the Russian online higher than in the wider population.
population is getting older. Compared
to last year the amount of young Majority of Russian internet users
internet users 18-34 decreased by (34%) live in cities with less inhabitants
one percentage point in favor of the than 500,000. However, the Russian
oldest group aged 55+, whose share online market is still capital-oriented
increased by 2 percentage points. and the second most important group

Do you CEE? Russia


200
constitutes Moscow’s inhabitants 9%. However, except the first two
(21%). The second most important occupation categories, the occupation
city is St. Petersburg, where 7% of the structure of Russian internet
Russian internet audience lives. population is rather flat.

Students and Specialist/


Chief Specialist are the two most
represented groups among Russian
internet users. Together they account
for 30% of the online population.
The Middle level manager/Project
manager category comes third with

3. TOOLS

3.1. BROWSERS

Chart 1 Top browsers in Russia by share of page views generated by internet users who visit Russian
websites using gemiusTraffic (gemiusTraffic study 1Q 2008 – 1Q 2010)

3.1. Browsers market share growing by almost


3 percentage points within the last year.
In 2009 the crisis of Microsoft’s
browser was gradually deepening and 3.2. Operating systems
since last year its reach has decreased
by 13 percentage points. Although it Windows XP is the most popular
still leads the market, the difference operating system in Russia. However,
between its main rivals is diminishing. its popularity is gradually decreasing.
During the same period, Opera as well In the first quarter of 2010 74%
as Firefox have been growing and in of page views generated in the
the first quarter of 2010 gained 29% gemiusTraffic study were made by
and 25% of the market respectively. users of this system, compared to
What is more, Google’s Chrome is 88% two years ago. Windows XP is
gradually gaining popularity with its being replaced by Microsoft’s latest

Do you CEE? Russia


201
operating system, Windows 7, which
in contrast to its older sister, Windows 3.2. OPERATING SYSTEMS
Vista, gained more users and 9 months
after its market debut now has 9% of
the market.

3.3. Search engines

The Russian search engines market


is unique compared to other CEE
markets, where Google dominates.
The real power on this market belongs
to the domestic player, Yandex. In
Chart 2 Top operating systems in Russia by share of page views generated by internet users who visit
the first quarter of 2010 its share Russian websites using gemiusTraffic (gemiusTraffic study 1Q 2008 – 1Q 2010)
accounted for 67% of the market, and
this figure is still increasing. During the
same time, apart from a small growth
period in 2008, Google has been losing
its market position since the beginning 3.3. SEARCH ENGINES
of 2009, with a final result of 24%.

3.4. Screen resolutions

The most popular screen resolutions


on the Russian online market used
to be 1024 x 768, however in the
first quarter of 2009 it was overtaken
by 1280 x 1024, which now leads
the market with a share of 27%. All
other screen resolutions are of less
significance. Chart 3 Top search engines in Russia by share of visits made by internet users who visit Russian webs-
ites using gemiusTraffic (gemiusTraffic study 1Q 2008 – 1Q 2010)

3.5. Mobile devices - models

The Russian mobile devices market is


unique compared to the CEE region 3.4. SCREEN RESOLUTIONS
which is dominated by the iPhone.
According to the gemiusTraffic study,
the most popular mobile device used
to access the web in Russia is Nokia
6300, which in July was responsible
for 8% of page views generated
by mobile devices on the average
website. However, a wide variety of
mobile devices can be found on this
market and the five most popular
tools constitute only 24%. The
iPhone’s share accounted for 6% of the Chart 4 Screen resolutions in Russia by share of page views generated by internet users who visit
Russian websites using gemiusTraffic (gemiusTraffic study 1Q 2008 – 1Q 2010)
market and fell by 1 percentage point

Do you CEE? Russia


202

3.5. MOBILE DEVICES

Chart 5 Top 5 mobile devices in Russia by the website-averaged percentage share of page views
generated by internet users from Russia, who visit Russian websites using gemiusTraffic
(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10
**to 2010-07-25

compared to May 2010. However, the


popularity of the iPad is dynamically
growing and the share gained by this
device increased by 1 percentage
point over the past two months.

4. BRANCH ORGANIZATIONS

ROCIT ISDEF

www.rocit.ru www.isdef.ru

Description: ROCIT is a public Description: ISDEF is an association


organization whose primary mission of e-shops. The primary aims of the
is to facilitate the inclusion of Russia association are to support software
in the global internet community. It development and promotion; to
was created to make the interaction facilitate the growth and development
between suppliers and consumers of the e-commerce industry in the
of information more effective and to area of software and to strengthen the
establish an independent advisory position of Russian developers in the
service. ROCIT was established in international software market. ISDEF
1996. was established in 2002.

Members: Private members and public Members: e-shops (e.g. Softkey,


associations. Alawar, Umisoft, Elcomsoft, Bitrix).

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5. ADVERTISING NETWORKS

GENERAL CONTACT INFORMATION


FULL NAME HOMEPAGE URL ADDRESS MAIN OFFICE CONTACT
ADDRESS

Phone: +7-495-956-90-07
2 Gamsonovsky sidestr., bldg.8,
1 Begun.ru begun.ru Fax: +7-495-956-90-07
Moscow, Russia
Email: pr@begun.ru

Phone: +7-495-739-70-00
16, Leo Tolstoy St., Moscow,
2 Yandex.ru yandex.ru Fax: +7-495-739-23-32
119021, Russia
Email: pr@yandex-team.ru

1 Arkhangelsky sidestr., Phone: +7-495-514-21-42


3 RORER rorer.ru
office 605, Moscow, Russia Fax: +7-495-514-21-42

7 Balchug st., Moscow, Phone: +7-495-644-14-00


4 Google google.ru
Russia Fax: +7-495-644-14-01

36\04 B.Novodmitrovskaya, Phone: +7-495-543-61-03


5 TBN tbn.ru
Moscow, Russia Email: adv@agava.com

27 B, Kamennoostrovskiy str, Phone: +7-812-498-02-49


6 RLE rle.ru
bldg 3H, St. Petersburg, Russia Email: sales@rle.ru

24, entrance 2, office 8, Phone: +7-495-981-44-00


7 Soloway soloway.ru
Radio str., Moscow, Russia Email: sales@soloway.ru

2 Gamsonovsky sidestr., Phone: +7-495-988-09-94


8 TradeDoubler tradedoubler.ru
bldg.1, Moscow, Russia Fax: +7-495-988-09-94

16, Krasnoproletarskaya st,


9 iConText icontext.ru Phone: +7-499-929-85-95
Moscow, Russia

24, office 703, Radio str., Phone: +7-495-980-71-10


10 Blondinka.Ru blondinka.ru
Moscow, Russia Fax: +7-495-980-71-10

arbomedia.ru, 6, proezd Serebryakova,


11 ARBOmedia Phone: +7-495-979-27-26
v2media.ru Moscow, Russia

16, B.Monetnaya,
12 Kavanga kavanga.ru office center #1, office 17, Phone: +7-495-66-37-12
St. Petersburg, Russia

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6. OPINIONS FROM THE MARKET

Andrey Sebrant
Product Marketing Director, Yandex

Dominating trends

What are the recent trends on your local online market? What areas are expected to
develop most in the future?

Video and SMM is on the rise, but are still small in volume. We can expect their
growth rates will be well above average for online advertising. More sophisticated
targeting will be used in traditional display and search advertising.

Global vs. local players

Are the local players present on your local market strong enough to compete with
the global giants? What advantages and strategies do they use in this battle?

Local players are extremely strong, their advantage is the large audience and large
customer base. Their products and technologies meet all expectations of the clients,
therefore clients remain loyal even if they use global services.

Market specifics

What makes your local online market unique? Are there any specifics that make it
different from others in the CEE region?

In all the market segments of internet services (search, mail, social networks), the
local players are more popular than the global ones. Long term trends do not show
any great successes of the global players when competing with the local ones. The
Russian market is therefore much more self-sufficient than other markets, despite
the fact that it is open to international competition.

Alexander Kim
Head of Interaction for Group M Russia

Online advertising market

What are the opportunities and obstacles for the Russian online advertising market?

Russian advertising spending in measured media is expected to grow by nearly


16%, to 7.4 billion USD in 2010 compared to 2009, when spending was down 42.3%
according to full year data. At the same time, internet spending (both in display
and contextual advertising) is showing consistent growth of nearly 32.5% in 2010.

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205
We forecast contextual spending will advance 40% (USD 497 million) and display
29.1% (USD 315 million) in 2010. Investment through the internet has benefited
from its more measurable and potentially cost efficient status. In a long run, online
advertising in Russia is also seen to be taking large sums of money from other
measurable media, especially TV and Print. According to the GroupM forecast,
online spending share is expected to grow up to 22% in 2020 – compared to 11%
in 2010.

Global vs. local players

Are your local market players strong enough to compete with the global giants?
What advantages and strategies do they have in this battle?

Local Russian sites are holding their top positions and seem strongly resistant to
the global challenge that is coming from Facebook, Google, Yahoo, MSN, etc. There
is a significant market question if global sites can realistically aspire to leadership
in Russia in such areas as search and social. Some local players are inclined to
believe this scenario could eventually happen but not in the short term, and that
it would require a long and “exhausting war”, where the final winner will finally
be determined by the online consumer. To earn a position on the market, these
global players will have to innovate and adapt, thus helping to shape and drive
a developing interaction media scene. So as we look ahead, we see no slowdown in
the pace of innovation of mobile, of ad networks, on-line video, devices, platforms,
applications or the myriad of other applications of data.

Do you CEE? Russia


Slovakia
2.28m
internet users

1. MAINPLAYERS_207
1.1. Top10websitesbyreach_207
1.2. Top10websitesbyaveragetimespentperuser_208
1.3. Topportals_209
1.4. Social networks_210
1.5. Onlineclassifiedadsbyreach_211
1.6. Topfinancesitesbyreach_211
2. ONLINEAUDIENCE_212
3. TOOLS_214
3.1. Browsers_214
3.2. Operatingsystems_214
3.3. Search engines_215
3.4. Screen resolutions_215
3.5. Mobiledevices_215
4. BRANCHORGANIZATIONS_216
5. ADVERTISINGNETWORKS_216
6. OPINIONSFROMTHEMARKET_217
207

1. MAIN PLAYERS

1.1. TOP 10 WEBSITES BY REACH

WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH
USERS VIEWS USER USER

1 azet.sk horizontal portal 1 541 206 1 462 631 868 949 12:40:31 67%

2 zoznam.sk horizontal portal 1 384 194 161 269 044 117 02:04:26 60%

3 sme.sk horizontal portal 1 221 599 69 127 588 57 01:29:52 53%

4 atlas.sk horizontal portal 1 209 063 45 006 974 37 00:33:40 52%

5 topky.sk news service 821 863 48 711 826 59 01:14:37 36%

6 aktuality.sk news service 755 017 29 510 473 39 00:48:13 33%

7 centrum.sk horizontal portal 746 336 95 415 370 128 02:21:04 32%

8 pravda.sk news service 635 330 27 147 096 43 00:54:21 28%

9 cas.sk news service 544 884 33 905 579 62 01:04:20 24%

10 markiza.sk news service 530 208 15 431 631 29 00:37:21 23%

Table 1 Top 10 websites in Slovakia by reach level (AIMmonitor - AIM - Mediaresearch & Gemius, March 2010)

The Slovak internet market remained and keeps a constant (5-6 percentage
stable last year and there was no new points) distance over Zoznam.
entry in the top ten ranking by reach.
Like last year, this market is dominated Sme.sk, the largest news portal in
by horizontal portals and news Slovakia has recently developed by the
services. No other category is present largest margin. Compared to March
among the ten most popular websites. 2009, its reach grew by 4 percentage
points and since January 2010 it
The two unquestionable leaders on remains in third position in the reach
the Slovak market are found in the ranking. Sme.sk is an online version
horizontal portal category. Like last of the influential daily newspaper in
year, first place was taken by Azet. Slovakia run by the Pettit Press a.s
However, its share decreased by publishing house which belongs to the
1 percentage point compared to March Rheinische Post Media Group.
2009. Second place is taken by Zoznam,
which belongs to Slovak Telekom a.s. One of SME’s strongest rivals is the
The portal used to lead the market offline Pravda, which also has an
but after being overtaken by its main online version that significantly grew
rival, Azet, it has never regained in size within the last year. Although
first place. Moreover, its reach has not as dynamic as in the case of
decreased by 2 percentage points year sme.sk, Pravda’s reach has increased
on year. Azet.sk, after defeating its by 2 percentage points compared to
rival, systematically leads the market last year.

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208
Before January 2010, third position Cas.sk is an online version of the
was taken by atlas.sk, a horizontal most popular daily tabloid newspaper
portal owned by Centrum Holdings, in Slovakia run by Ringier AG, an
which also runs centrum.sk, another international media company. Despite
portal which took seventh position efforts taken to beat its main rival,
in the ranking. In March 2010 these topky.sk, it constantly stands around
services achieved reach of 53% and 9th place with a reach exceeding
32%, respectively. These results were 20%. However, the service may
relatively stable during the last year. be placed among the players that
attained the most significant growth:
Fifth place in the ranking is taken by its reach grew by 2 percentage points
the topky.sk, a regular news service compared to March 2009.
owned by Zoznam s.r.o. Although
the number of its users increased Last place, with a result of 23%, is
by more than 73,000 compared to taken by markiza.sk, a news service
March 2009, the service’s reach belonging to the largest television
remained at the same level of 36%. station in Slovakia owned by Central
European Media Enterprises (CME).
The next place is taken by aktuality.sk,
the news service belonging to
Azet.sk. Its reach increased by
1 percentage point year on year and
moved up from 7th to 6th place in
the ranking.

1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER

WEBSITE’S NUMBER OF PAGE VIEWS AVERAGE TIME REACH


CATEGORY REAL USERS PER USER PER USER

horizontal
1 azet.sk 1 541 206 949 12:40:31 67%
portal
horizontal
2 centrum.sk 746 336 128 02:21:04 32%
portal
horizontal
3 zoznam.sk 1 384 194 117 02:04:26 60%
portal

4 autobazar.eu classifieds 424 598 153 02:00:14 18%

horizontal
5 sme.sk 1 221 599 57 01:29:52 53%
portal

6 topky.sk news service 821 863 59 01:14:37 36%

7 f1.sk sport service 43 365 51 01:10:41 2%

8 ephoto.sk photo sharing 37 996 68 01:04:21 2%

9 cas.sk news service 544 884 62 01:04:20 24%

10 profutbal.sk sport service 53 186 50 01:00:30 2%

Table 2 Top 10 websites in Slovakia by average time spent per user (AIMmonitor - AIM -
Mediaresearch & Gemius, March 2010)

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209
Azet.sk leads the market when ranking per user of 1 hour 11 minutes.
by average time per user is concerned, It belongs to Point Network, which
gaining a result exceeding 12 hours. also owns other sport websites such
However, it is mainly attributed to as profutbal.sk and hokej.sk.
Pokec, the social networking website
which is a part of the azet.sk node. Apart from horizontal portals and
Compared to March 2009, Azet lost news services that are found among
around 5.5 hours, however, its lead the leaders, in the ranking by average
over other players is not under threat. time per user there are also other
websites categories. For example,
Apart from azet.sk, the other websites ephoto.sk, dedicated to photography
do not achieve any spectacular results with its own blogs and galleries, takes
with only centrum.sk and zoznam.sk, 8th position with a result of over one
popular horizontal portals, and hour.
autobazar.eu, an online database
of used cars, register a time of
approximately 2 hours.

F1.sk the best news service dedicated


to Formula 1 grand prix races comes
in 7th, with an average time spent

1.3. TOP PORTALS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 azet.sk 1 541 206 949 12:40:31 67%

2 zoznam.sk 1 384 194 117 02:04:26 60%

3 sme.sk 1 221 599 57 01:29:52 53%

4 atlas.sk 1 209 063 37 00:33:40 52%

5 centrum.sk 746 336 128 02:21:04 32%

Table 3 Top 5 portals in Slovakia by reach level (AIMmonitor - AIM - Mediaresearch & Gemius,
March 2010)

Portals and news services account (video hosting), minihry.sk (casual


for the majority of the top ten Slovak games) as well as others.
websites. All players of this category
occupy the leading places in the Second place is taken by zoznam.sk,
general rankings. The most important which is awaiting possible changes in
one is azet.sk, the largest horizontal order to reclaim first place. The service
portal with a strong social networking made some effort to launch a news
component (pokec.sk) and other service for women, feminity.zoznam.sk,
subservices such as zoznamka.sk however, this has not helped it to
(dating community), videoalbumy.sk reclaim first place.

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210
Among the horizontal portals, two Sme.sk which used to be the most
players, i.e. altas.sk and centrum.sk, visited online news service, after
belong to the same owner, Centrum a number of acquisitions that took
Holdings. The first is more popular place last year can now be defined
with a reach of 52%, whereas as horizontal portal. The service
centrum.sk reaches 32% of the developed very dynamically last year
audience. However, the latter and managed to gain more than
dominates in terms of average time 180,000 users from March 2009 to
per visitor monthly with a figure March 2010.
exceeding two hours. It cooperates
with ICQ on the Slovakian market.
Both services have their counterparts
on the Czech market.

1.4. SOCIAL NETWORKS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 pokec.sk 1 103 701 1126 14:03:25 48%

sme.sk|
2 Citatelsky obsah| 429 204 11 00:19:52 19%
blog.sme.sk

3 birdz.sk 234 449 19 00:15:33 10%

4 zoznamka.sk 95 385 36 00:21:12 4%

etrend.sk|
5 55 327 5 00:07:39 2%
blogy.etrend.sk

Table 4 Top 5 social networking websites in Slovakia by reach level (AIMmonitor - AIM -
Mediaresearch & Gemius, March 2010)

First place among social networking Another player is birdz.sk (owned by


websites monitored in the study was Perex a.s. with its main title Pravda.sk),
taken by the Azet-owned service, a community portal dedicated to
pokec.sk, which reaches 48% of the a young audience. It systematically
Slovak online audience. Though it gains a reach of 10%.
has changed its layout to resemble
Facebook, the service is stagnating. Another Azet-owned website,
The lack of further development is zoznamka.sk, can be found among
partly caused by the strong entrance the social networking services. It is
of Facebook on the Slovakian market, an online dating website with a reach
which took place in 2009. level accounting for 4% of the online
audience. Last place is taken by the
The second force in this category is blog section of etrend.sk, a horizontal
a blog site belonging to sme.sk. It has portal gaining a reach level of 16%.
a stable position and a result of 19%.

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211

1.5. ONLINE CLASSIFIED ADS BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 profesia.sk 478 526 86 01:00:29 21%

2 autobazar.eu 424 598 153 02:00:14 18%

3 najnakup.sk 358 950 13 00:11:36 16%

Table 5 Top 3 online classified ads in Slovakia by reach level (AIMmonitor - AIM -
Mediaresearch & Gemius, March 2010)

Profesia.sk dominates among the versions. Najnakup.sk, a service which


classifieds services with a reach of allows users to compare online shops
21%. It is the largest job portal. The offers, takes last place among the
second is autobazar.eu, an auto most popular classified ads websites
classifieds service, which significantly with a reach of 16%.
outperforms others in terms of
average time spent per user with
a result of 2 hours. However, when
reach is taken into account, both
services are undergoing stagnation,
although according to local experts,
the general trend is that job classified
ads are moving from print to online

1.6. TOP FINANCE SITES BY REACH

NUMBER OF PAGE VIEWS PER AVERAGE TIME PER REACH


REAL USERS USER USER

1 ekonomika.sme.sk 275 646 13 00:25:44 12%

oPeniazoch.
2 145 604 11 00:17:18 6%
zoznam.sk

3 peniaze.pravda.sk 98 341 5 00:06:59 4%

Table 6 Top 3 finance sites in Slovakia by reach level (AIMmonitor - AIM -


Mediaresearch & Gemius, March 2010)

The most popular websites belonging services. The unquestionable leader


to the finance category are sections of on this market is ekonomika.sme.sk
the popular horizontal portals or news with a reach of 12%. Second place

Do you CEE? Slovakia


212
with 6 percentages points less than
the leader, is oPeniazoch.zoznam.sk,
the finance section of zoznam.sk.
Compared to last year, the number
of its users decreased by almost
80,000. The top three is propped up
by peniaze.pravda.sk reaching 4% of
Slovak online audience.

2. ONLINE AUDIENCE

The gender structure of the The largest share of Slovakian


Slovakian internet population is internet users live in cities between
balanced, with a slight dominance of 20,000 – 99,999 inhabitants and
males (51%), which is one percentage these groups comprise 29% of the
point less than a year ago. Men can online population. The second group
also be found more often among lives in towns with 1,000 – 4,999
internet users over the age of inhabitants.
25, apart from age group 45-54,
where the gender share is equal Almost every second (49%)
and accounts for 6% of the online Slovakian internet user is not
population. employed, which is the result of the
significant number of young people
Young people constitute a in the Slovakian online population.
majority in the Slovakian online Internet users working in the offices
population. Internet users under are the second most represented
the age of 35 account for 61% of group (12%), followed by qualified
the population, however, Slovakian manual workers (11%) and highly
online society is growing older. The qualified specialists (8%). The other
share attained by the 14-34 age occupation categories gain shares
group is now by 3 percentage points oscillating between 1% - 5%.
lower than in March 2009. This loss is
in favor of the oldest group (over 55)
which comprised 8% in March 2010,
compared to 6% a year ago.

The majority of Slovakian


internet users have secondary
education and this group comprises
63% of the online population.
However, 23% of them do not have
a school leaving exam. The highest
educated group, who have
a university degree, increased by
1 percentage point compared to last
year.

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214

3. TOOLS

3.1. BROWSERS

Chart 1 Top browsers in Slovakia by share of page views generated by internet users who visit Slova-
kian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

3.1. Browsers 3.2. Operating systems

Since the fourth quarter of 2008, Windows XP constantly dominates


Firefox dominates the Slovakian the operating systems used by
browser market. However, gaining Slovakian users, however its share is
first place was not followed by decreasing. It lost almost 11 percent
dynamic growth and both Firefox points in the first quarter of 2010
and MISE have been gradually losing compared to the first quarter of 2009.
their share in favor of Google’s During the same period Windows
new product, Chrome, which since Vista stagnated, gaining a stable
the beginning of 2009 grew by result of 18% of page views generated
7 percentage points. During the same by internet users who visit Slovakian
period, Opera’s market share remains websites using gemiusTraffic. Like
stable, oscillating around 15%. in other markets, the share of

3.2. OPERATING SYSTEMS

Chart 2 Top operating systems in Slovakia by share of page views generated by internet users who
visit Slovakian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

Do you CEE? Slovakia


215
Microsoft’s latest product, Windows
7, is increasing by the largest amount 3.3. SEARCH ENGINES
i.e. by 8 percentage points year on
year.

3.3. Search engines

Google is undoubtedly the leader on


the Slovakian search engine market
and its share is still increasing. In the
first quarter of 2010, 99% of visits
which began with gemiusTraffic-
participating websites via search
engines, started with Google. Chart 3 Top search engines in Slovakia by share of page views generated by internet users who visit
Slovakian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

3.4. Screen resolutions

The most popular screen resolution 3.4. SCREEN RESOLUTIONS


1024 x 768, which used to have
over 60% of the market share at the
beginning of 2007, is now decreasing.
In the first quarter of 2010 only 28%
of page views generated by internet
users who visit Slovakian websites
using gemiusTraffic were made by
users with monitors of this screen
resolution.

3.5. Mobile devices - models


Chart 4 Screen resolutions in Slovakia by share of page views generated by internet users who visit
According to the gemiusTraffic study, Slovakian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

the most popular mobile device


used to access the web in Slovakia
is the iPhone, which in July was
3.5. MOBILE DEVICES
responsible for 27% of page views
generated by mobile devices on the
average website. However, compared
to May 2010 its share decreased
in July by 1.5 percentage points.
Unlike other CEE markets, the iPad
is not that popular in Slovakia and
the top 5 ranking is dominated by
Nokia devices, whose shares oscillate
around the 4-5% mark.

Chart 5 Top 5 mobile devices in Slovakia by the website-averaged percentage share of page
views generated by internet users form Slovakia who visit Slovakian websites using gemiusTraffic
(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10
**to 2010-07-25

Do you CEE? Slovakia


216

4. BRANCH ORGANIZATIONS

AIM – Association of Internet Media SLOVAKIA, LLC, NARKS-INFOSERVIS,


Inc., Zoznam, LLC., PEREX, Inc., Petit
www.aimsr.sk Press, LLC, POINT NETWORK, LLC,
Profesia, LLC, RINGIER SLOVAKIA,
Description: The Association of Inc., Sanoma Magazines Slovakia,
Internet Media is a partnership LLC, SITA Slovenská tlačová agentúra,
of Slovakian companies operating Inc., SPOLOČNOSŤ 7 PLUS, LLC,
in the Slovakian internet Travel.SK, LLC, TREND Holding, LLC.
and advertising sector. The
establishment of AIM came from
the need to create a platform for
interaction of those operating in
Slovakian internet advertising. The
Association aims to standardize
the ethical and legal rules for
internet advertising, support the
development of the internet as an
advertising medium and encourage
internet professionalization.

Members: Azet.sk, Inc., Centrum


Holdings - ATLAS.SK, Inc., Centrum
Holdings, Inc., CPress Media, LLC,
Creative Solutions, LLC, ECOPRESS,
Inc., Education, LLC, ETARGET SE
- affiliate member, EXPRES MEDIA,
LLC, Finance media, Inc., KONCEPT,
LLC, MAC TV, LLC, MARKÍZA -

5. ADVERTISING NETWORKS

GENERAL CONTACT INFORMATION


FULL NAME HOMEPAGE URL MAIN OFFICE CONTACT
ADDRESS ADDRESS

Peter Štencl
Kutuzovova 11,
1 Sitelement sitelement.sk Phone: +421-903-259-260
831 03 Bratislava
Email: peter.stencl@silelement.sk

Phone: +421-2-321-990-45
Vlárska 48/a,
2 web2media web2media.sk Fax: +421-2-207-189-15
831 01 Bratislava
Email: info@web2media.sk

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6. OPINIONS FROM THE MARKET

Bc. Martin Kyncl


Sales Manager & New Business, SiteElement

Online advertising market

What are the opportunities and obstacles for the online advertising market on
your local market?

There are plenty of opportunities on the Slovakian local market. The most
common type of advertisement is the banner ad. We have also noticed intext
and invideo ads coming onto this market. Another opportunity is predictive
behavioral targeting of all types of ad formats. An obstacle is outsourced
technology, which is relatively expensive.

Global vs. local players

Are the local players present on your local market strong enough to compete
with the global giants? What advantages and strategies do they use in this
battle?

Local players are strong. Solely Slovakian local players are the largest media
representatives in Slovakia competing with foreign companies.

The opportunity is that foreign companies have is their experience from other
markets, verified technologies and larger budgets to invest in Slovakia. On the
other hand, they cannot orientate themselves on the market as well as local
companies.

Do you CEE? Slovakia


Slovenia
1.09m
internet users

1. MAINPLAYERS_219
1.1. Top10websitesbyreach_219
1.2. Top10websitesbyaveragetimespentperuser_220
1.3. Topportals_221
1.4. Social networks_222
1.5. Onlineclassifiedadsbyreach_222
2. ONLINEAUDIENCE_223
3. TOOLS_225
3.1. Browsers_225
3.2. Operatingsystems_226
3.3. Search engines_226
3.4. Screen resolutions_227
3.5. Mobiledevices_227
4. BRANCHORGANIZATIONS_228
5. ADVERTISINGNETWORKS_228
6. OPINIONSFROMTHEMARKET_228
219

1. MAIN PLAYERS

1.1. TOP 10 WEBSITES BY REACH

WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH
USERS VIEWS USER USER

1 24ur.com horizontal portal 658 705 110 611 008 168 06:27:22 55%

2 najdi.si search engine / horizontal portal 520 112 55 735 868 107 02:48:59 44%

3 siol.net horizontal portal 490 572 48 987 905 100 03:01:28 41%

4 rtvslo.si horizontal portal 445 388 39 388 972 88 02:58:22 37%

5 bolha.com classified ads / auctions 421 330 39 017 842 93 00:56:09 35%

6 itis.si telephone register 333 974 3 449 534 10 00:08:36 28%

7 zurnal24.si horizontal portal 320 472 33 109 562 103 01:45:46 27%

8 avto.net classified ads 318 230 97 440 460 306 02:58:12 27%

9 zadovoljna.si women portal 274 986 3 647 456 13 00:14:06 23%

10 sl.netlog.com social network 258 208 38 028 693 147 02:22:54 22%

Table 1 Top 10 websites in Slovenia by reach level (Gemius/Valicon, gemiusAudience MOSS, March 2010)

The Slovenian online market is largely Slovenian internet users. In March


dominated by horizontal portals 2010, the first had a reach of 35%
and their popularity is still growing. and the second gained 27%. Itis.si,
According to Gemius/Valicon, the a telephone and companies directory,
gemiusAudience MOSS study from came in 6th place in the top 10
March 2010, the leader in the ranking ranking by reach level with 333, 974
by reach level was 24ur.com. Over real users.
the past twelve months its reach has
increased by 8 percentage points Position 9 belonged to zadovoljna.si,
(from 47%). The following three a portal dedicated to women.
places were occupied by najdi.si, Evidence of its growing popularity is
siol.net and rtvslo.si. All these the fact that according to the Gemius/
horizontal portals are also significant Valicon, gemiusAudience MOSS study
players on the Slovenian online conducted in March 2010, compared
market; their reach levels amounted with 2009 its reach level has increased
to 44%, 41% and 37%, respectively. by 11 percentage points, i.e. from
Another horizontal portal in the study, 12% to 23%. It publishes information
zurnal24.si, ranked seventh in March on fashion, beauty, fitness, etc.
2010 and had 320,472 real users Moreover, it contains a special section
(27%) who generated more than for men as well as a forum.
33.1 million page views.
The ranking was propped up by
Bolha.com and avto.net are two sl.netlog.com, a global social
classified ads portals popular among networking service with a reach level

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of 22%. Its members can create their in 20 languages and has millions of
own websites with blogs, photos, members across Europe, in Slovenia
videos, events, etc. and share them there are 258,208 members.
with friends. It is currently available

1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER

NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH


REAL USERS USER PER USER

1 24ur.com 658 705 168 06:27:22 55%

2 siol.net 490 572 100 03:01:28 41%

3 rtvslo.si 445 388 88 02:58:22 37%

4 avto.net 318 230 306 02:58:12 27%

5 najdi.si 520 112 107 02:48:59 44%

6 igre123.com 157 008 103 02:24:17 13%

7 sl.netlog.com 258 208 147 02:22:54 22%

8 ona-on.com 23 680 153 02:07:40 2%

9 nogomania.com 36 218 81 02:02:55 3%

10 finance.si 257 472 51 01:45:51 22%

Table 2 Top 10 websites in Slovenia by average time spent per user (Gemius/Valicon,
gemiusAudience MOSS, March 2010)

The unquestionable leader on the spent 2 hours 58 minutes visiting these


Slovenian online market in terms websites. Only 10 minutes less was
of average time spent on the site spent online by the visitors of najdi.si,
in March 2010 was 24ur.com. The another popular Slovenian horizontal
average user of this popular horizontal portal and search engine.
portal visited the website for 6 hours
and 27 minutes over a month. It was Around 2 hours 24 minutes was spent
followed by three websites: siol.net, visiting igre123.com, a games portal.
rtvslo.si and avto.net, with results of It is part of Popcom Ltd, a company
around 3 hours. The first one, siol.net, that also owns the largest online video
is one of the leading Slovenian internet community in Slovenia mojvideo.com
portals, part of Planet 9, a Limited and photo service mojalbum.com.
liability company within the Telekom Igre123.com offers its users free
Slovenia Group. In March 2010, its games and a forum. According to the
average user spent there more than Gemius/Valicon, gemiusAudience
3 hours. In the same period, users of MOSS study from March 2010, it had
rtvslo.si which is a multimedia portal a reach of 13%.
of one of the national TV stations,
RTV Slovenia, and also avto.net - an In the ranking there were 2 social
automotive classified ads service, networking services: sl.netlog.com

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221
(7th) and ona-on.com (8th). finance.si with a result of 1 hour
Users of the former service spent 46 minutes. It publishes all kinds of
almost 2 hours 23 minutes online, financial and business news and is
whereas users of the latter 2 hours quite popular within the Slovenian
and 8 minutes. Also visitors of online population: in March 2010
nogomania.com, a portal dedicated its reach level amounted to 22%.
to football fans, surfed this website Finance.si is a part of Swedish Bonnier
for over 2 hours in search of current Business Press.
information on football events.

The top 10 ranking by average time


spent per user was propped up by

1.3. TOP PORTALS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 24ur.com 658 705 168 06:27:22 55%

2 najdi.si 520 112 107 02:48:59 44%

3 siol.net 490 572 100 03:01:28 41%

4 rtvslo.si 445 388 88 02:58:22 37%

5 zurnal24.si 320 472 103 01:45:46 27%

Table 3 Top 5 portals in Slovenia by reach level (Gemius/Valicon, gemiusAudience MOSS,


March 2010)

Horizontal portals have a strong market in Slovenia was najdi.si,


position on the Slovenian online the largest local search engine
market. The unquestionable leader with a reach of 44%. It used to be
in March 2010 was 24ur.com with the leader on the Slovenian online
a reach level of 55%. It is dedicated market and even its current second
to all kinds of users and has the place in the ranking is under threat
largest commercial TV background. by siol.net (41%), another popular
As mentioned above, its popularity horizontal portal. It publishes current
has been growing, so it comes as no local and world news, business and
surprise that the website is constantly sports information and much more.
developing its multimedia content as Moreover, it offers the SiOL Services
well as opening new, special websites which include internet, TV and
for different kinds of content (health, telephony.
women, gossip, amongst others).
Rtvslo.si ranked fourth in the ranking
According to the Gemius/Valicon, with a reach level of 37%. It is a typical
gemiusAudience MOSS study from horizontal portal with news divided
March 2010, the second most into sections: news, sports, culture,
significant player on the portals entertainment and travel. Since it is

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a RTV portal, it concentrates largely diverse subjects. In March 2010 it had
on developing its multimedia content. a reach level of 27%.
The last place in the top 5 ranking was
occupied by zurnal24.si, an online
version of the free daily newspaper
delivering current news on a range of

1.4. SOCIAL NETWORKS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 sl.netlog.com 258 208 147 02:22:54 22%

2 genspot.com 233 886 23 00:13:42 20%

3 ona-on.net 59 369 21 00:17:21 5%

Table 4 Top 3 local social networking websites in Slovenia by reach level (Gemius/Valicon,
gemiusAudience MOSS, March 2010)

Social networks are relatively popular The ranking was propped up by


amongst the Slovenian online audience. ona-on.net, a dating service dedicated
Among the services included in the to adult internet users, reaching 5%
Gemius/Valicon, gemiusAudience of the Slovenian online audience.
MOSS study from March 2010, the
leader was sl.netlog.com with a reach
level of 22%. The service was followed
by genspot.com with a reach level
only 2 percentage points lower with
233,886 real users. It is mainly a blog
site where users can additionally
upload their videos and photos or chat
with friends.

1.5. ONLINE CLASSIFIED ADS BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 bolha.com 421 330 93 00:56:09 35%

2 avto.net 318 230 306 02:58:12 27%

3 mojedelo.com 100 717 34 00:25:33 8%

Table 5 Top 3 online classified ads in Slovenia by reach level (Gemius/Valicon,


gemiusAudience MOSS, March 2010)

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223
The Slovenian online population Valicon, gemiusAudience MOSS study
is especially fond of classified ads from March 2010, it had 318,230 real
services. The most popular, bolha.com, users.
had a reach level of 35% in March
2010 and took 5th place in the general Mojedelo.com is a leading Slovenian
ranking by reach. Its announcements employment portal dedicated to
are classified into four main people searching for a job and
categories: auto-moto, real estate, employers who need new employees.
computer science and home. For the It not only contains job offers, but also
majority of Slovenian internet users, has a Career Centre section with tips
bolha.com is the first choice to buy or and advices on how to successfully
sell both new and used products as look for a job. In March 2010 it had
well as to offer or search for services. a reach level of 8%.

The second player is avto.net,


a service specializing in automotive
classifieds. According to the Gemius/

2. ONLINE AUDIENCE

The gender structure of the 15-24 constituted 28% of the online


Slovenian online population is population. What is interesting about
dominated by men. In March 2010, Slovenian internet users is the fact
according to the Gemius/Valicon, that there are a lot of people over
gemiusAudience MOSS study, 56% of 55 years old (11%).
Slovenian internet users were men;
women constituted 44%. Moreover, In terms of the education level,
the average man spent 14 hours the most numerous group in March
16 minutes online, while a typical 2010 within the Slovenian online
woman spent less than 11 hours population was those who had
online. completed four years of high school.
They accounted for 27% of the online
In terms of age, the most population. With 25% of the online
significant group within the Slovenian audience, users that were still in
online population were people aged school ranked second. Third place
25-34 who constituted 24% in March belonged to users with three years of
2010. They were also the most active high school completed(22%). Users
individuals with 14 hours 8 minutes with a higher education constituted
spent online per user. 20%.

The second largest group, users Internet users with elementary


35-44 years old, accounted for 22% education or lower accounted for only
of the online population. Also, young 6% of the online population. However,
people make up a significant group they spent the most time online with
of internet users in Slovenia; when an average of 14 hours and 18 minutes
taken together, users aged 10-14 and a month.

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225
The majority of the Slovenian employed in public sector (12%),
internet population lives in cities. In children in elementary schools
March 2010 18% lived in Ljubljana, accounted for 9% as well as the
7% in Maribor and 15% in other cities students. The latter were also the
with 10,000 – 100,000 inhabitants. leaders in terms of average time spent
Quite a large part of the online online with over 15 hours 10 minutes.
audience lived in places with less than
500 inhabitants, (16%), which means
that the internet is not only common
in densely populated areas but also in
the countryside.

The occupation structure of


the Slovenian online population
in March 2010 was dominated by
users employed in companies (40%).
Another significant group were those

3. TOOLS

3.1. BROWSERS

Chart 1 Top browsers in Slovenia by share of page views generated by internet users who visit Slove-
nian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)

3.1. Browsers quarter of 2010 it attained 50% of


the market. MSIE ranked second with
There seems to have been a fierce a 42% share. Another popular browser
battle between Mozilla Firefox and that has been gaining popularity over
Microsoft Internet Explorer on the the last year is Chrome (5%). Less
Slovenian online market with regard significant were, according to the
to leadership of the browsers market. gemiusTraffic study from March 2010,
Since the third quarter of 2009 the such browsers as Opera (2%) and
winner was Firefox, and after the first Safari (1%).

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226

3.2. OPERATING SYSTEMS

Chart 2 Top operating systems in Slovenia by share of page views generated by internet users who
visit Slovenian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)

3.2. Operating systems 3.3. Search engines

Like in other CEE markets, the leader Like in other CEE markets, the most
among operating systems in Slovenia is popular search engine in Slovenia
Windows XP. After the first quarter of is Google. After the first quarter of
2010 its share of the market, as studied 2010 its share accounted for 87% of
by gemiusTraffic, constituted 70%. the market and its popularity is still
However, over the last two years its growing. The second player on the
share has decreased by 20 percentage Slovenian market is najdi.si, a local
points. The second player on the search engine, which popularity has
market, Windows Vista, has already been declining over the past few years
started to lose popularity and will most and after the first quarter of 2010 had
probably no longer be able to keep its a market share of only 12% (after the
position in the ranking. The newcomer first quarter of 2007 it was 33%).
on the operating systems market,
Windows 7, managed to gain over 13%
of the market in less than a year.

3.3. SEARCH ENGINES

Chart 3 Top search engines in Slovenia by share of visits made by internet users who visit Slovenian
websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)

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227
3.4. Screen resolutions
3.4. SCREEN RESOLUTIONS
There is no major leader on the
screen resolutions market in Slovenia.
In terms of share of page views
generated by internet users who visit
Slovenian websites using gemiusTraffic
the most popular ones, within the
Slovenian online audience, were
1024 x 768 (25%), 1280 x 1024 (22%)
and 1280 x 800 (14%).

3.5. Mobile devices - models

A wide variety of mobile devices can


be found on the Slovenian market. Chart 4 Screen resolutions in Slovenia by share of page views generated by internet users who visit
Slovenian websites using gemiusTraffic (gemiusTraffic study 3Q 2007 – 1Q 2010)
Five most popular tools have a share
of 35%. However, as with the majority
of the CEE markets, in Slovenia the
leadership of this market belongs to
iPhone. According to the gemiusTraffic 3.5. MOBILE DEVICES
study, in July iPhone was responsible
for 13% of page views generated by
mobile devices on the average website
and its position remains stable. At the
same time, Apple’s latest product,
the iPad, is consistently gaining
popularity, and has increased its share
by 5 percentage points since May
2010. Slight growth might also be
observed for the iPod, whose share
grew by 0.5 percentage points during
this period. Three other positions are
taken by Nokia’s devices amongst
which the Nokia 5800 is the most
popular gaining a share of 5%. Chart 5 Top 5 mobile devices in Slovenia by the website-averaged percentage share of page
views generated by internet users from Slovenia who visit Slovenian websites using gemiusTraffic
(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10
**to 2010-07-25

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228

4. BRANCH ORGANIZATIONS

SOZ - Slovenian Advertising Chamber Members: publishers and agencies


(e.g. 24ur.com, najdi.si, siol.net, rtvslo.
www.soz.si si, httpool, media pool, bolha.com,
avto.net, genspot.com, zurnal24.si)
Description: The Slovenian Advertising
Chamber is a non-governmental
organization which protects the
interests of advertisers, advertising
agencies and publishers. It is
a member of IAB Europe.

5. ADVERTISING NETWORKS

GENERAL CONTACT INFORMATION


FULL NAME HOMEPAGE URL MAIN OFFICE CONTACT
ADDRESS ADDRESS
Cesta v Gorice 8, Phone: +386-1-479-04-81
1 Httpool httpool.si
1000 Ljubljana, Slovenia Email: info@httpool.si
Phone: +386-1-511-07-50
Ulica Ivice Pirjevčeve 16,
2 Iprom iprom.si Fax: +386-1-511-07-83
1211 - Lj-Šmartno, Slovenia
Email: info@iprom.si
Phone: +386-1-565-60-06
Vojkova 63,
3 Adlink Meida adlinkmedia.si Fax: +386-1-565-60-08
1000 Ljubljana, Slovenia
Email: info.si@adlinkmedia.net
Phone: +386-1-620-32-50
Bravničarjeva ulica 13,
4 Interactive.agency interactive-agency.si Fax: +386-1-300-77-28
1000 Ljubljana, Slovenia
Email: hello.slo@interactive.ag

6. OPINIONS FROM THE MARKET

Radoš Skrt
Internet Project Director, Studio Moderna

Online advertising market

What are the opportunities and obstacles for the online advertising market on your
local market?

Several years ago having a presence on the internet was a must for all companies
and now if the company cannot be found among the first hits given in a search
engine, we could say that it virtually doesn’t exist. The fact is that internet users

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229
search for products, services and businesses via search engines, and that about
80% of all clicks occur on the first page of search results. Of course, companies
can also draw much attention using other forms of online communication, but
we must be aware that banner blindness is more and more prevalent. People
are becoming less responsive to ads and the presence of users on the web is
extremely scattered.

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in the future?

Those companies which want to be successful will have to find or carve out a place
on the market. This means that they will have to choose the appropriate (target)
media to be highlighted, and that they should be able to attract the attention of
internet users with creative solutions and innovative approaches. It is more than
evident that the phenomenon of social media companies will not be able to avoid
two-way communication with customers (this is a necessity in this day and age)
and that they should also encourage interaction with customers.

The inclusion of both parties (advertisers and users), taking into account their
desires and needs as well as collecting databases and their efficient usage, will
most certainly be crucial factors and the main key to success in the near future.

Do you CEE? Slovenia


Turkey
21.60m
internet users

1. MAINPLAYERS_231
1.1. Top10websitesbyreach_231
1.2. Top10websitesbyaveragetimespentperuser_233
1.3. Topportals_234
1.4. Social networks_235
1.5. Onlineclassifiedadsbyreach_236
1.6. Topfinancesitesbyreach_236
2. ONLINEAUDIENCE_237
3. TOOLS_239
3.1. Browsers_239
3.2. Operatingsystems_240
3.3. Search engines_240
3.4. Screen resolutions_241
3.5. Mobiledevices_241
4. BRANCHORGANIZATIONS_242
5. ADVERTISINGNETWORKS_243
6. OPINIONSFROMTHEMARKET_243
231

1. MAIN PLAYERS

1.1. TOP 10 WEBSITES BY REACH

WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH
USERS VIEWS USER USER

1 blogcu.com blogging platform 10 110 262 113 287 594 11 00:13:52 43%

2 mynet.com horizontal portal 8 325 109 1 455 728 525 175 02:01:10 36%

3 izlesene.com video hosting 8 305 237 269 004 160 32 00:45:47 36%

4 ekolay.net horizontal portal 7 173 983 315 354 463 44 01:04:30 31%

5 hurriyet.com.tr news service 6 844 277 864 751 686 126 01:57:09 29%

6 milliyet.com.tr news service 6 207 491 714 288 388 115 02:21:51 27%
literary service /
7 antoloji.com 3 725 207 27 801 789 7 00:06:50 16%
online bookstore
8 kraloyun.com casual games platform 3 652 623 177 785 406 49 01:05:08 16%

9 haberler.com news service 3 509 221 55 715 690 16 00:16:02 15%

10 sabah.com.tr news service 3 125 297 170 728 985 55 00:47:05 13%

Table 1 Top 10 websites in Turkey by reach level (Gemius SA / Ipsos KMG: IAB Turkey’s Internet Audience Measurement, March 2010)

Given the large size of the Turkish Over half of the websites included
online market, the major internet in the ranking of the top 10 major
players in this country have relatively players on the market by reach are
large audiences. Among the websites portals and news services. The most
participating the IAB Turkey’s popular horizontal portal, mynet.com,
Internet Audience Measurement came second in March 2010 with
conducted by Gemius and Ipsos, a reach of 36% and an audience of
the most popular one is blogcu.com, over 8 million real users. Mynet.com
a blogging platform created by Nokta, operates based on a horizontal
a company established in 2002, platform model, as does ekolay.net
which operates both in Turkey and (4th place in the ranking with a reach
the United States. Nokta specializes of 31%). Significant positions on the
in search services and search- market are also held by four popular
based advertising solutions. Web and well developed news services:
2.0 projects are its latest area of hurriyet.com.tr (5th place with
business. According to IAB Turkey’s 29% reach in March 2010),
Internet Audience Measurement milliyet.com.tr (6th place with 27%
conducted by Gemius and Ipsos, in reach), haberler.com (9th place with
March 2010 blogcu.com attracted 15% reach) and sabah.com.tr (10th
over 10 million real users, thereby place with 13% reach during the
gaining a market reach of 43%. same period).

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The core business models used by comes very high in the ranking of
the above-mentioned players is the Turkey’s top players. It is a video
sale of online advertising, however hosting service named izlesene.com
it is undertaken in several different which not only works like YouTube,
ways. One can identify three basic but also resembles this Google-
approaches. The first is the self- owned service. Izlesene is another
conducted sale of advertising, which website released by Nokta. Its success
is applied by Mynet and Sabah. The owes much to the fact that it fills
second and most common practice a tremendous market gap. In 2007,
are sales conducted by a subsidiary following much media attention
network or media house (belonging associated with movies available on
to the same holding as the publisher). YouTube, the world famous video
Ekolay.net, milliyet.com.tr and website was banned in Turkey.
hurriyet.com.tr are good examples Izlesene, its local equivalent, is
of players working this way: all of therefore doing very well. According
their sales activities are operated by to IAB Turkey’s Internet Audience
one advertising network, MedyaNet, Measurement conducted by Gemius
which is (as they also are) a company and Ipsos, in March 2010 it gained an
owned by the Dogan Media Group. audience of over 8 million real users
Haberler is the only website among and has a reach level of 36%.
the above-mentioned representing
the third approach. Its advertising The second peculiar and rare website
activities are operated by ReklamZ, an (especially when it comes to close
independent company and one of the leadership of local players) active on
largest internet advertising networks the Turkish market is antoloji.com.
in Turkey. ReklamZ was established in It operates using a hybrid model
2002 and currently provides various of a literary online service, head
advertising solutions for many large offline news aggregator and internet
and significant local players. Apart bookstore. It is basically a website
from Haberler, among the websites devoted to the written word. As its
operated by ReklamZ and participating creators themselves say, antoloji.
in IAB Turkey’s Internet Audience com is an art portal focused on the
Measurement in March 2010 one can cultural life of the country. Antoloji
also find such players as komikler.com publishes both poetry and prose
(an aggregator of humorous content), written by professionals and amateurs.
hastane.com.tr (a significant health/ It also provides a variety of Web
medical website), ajansspor.com (one 2.0 solutions, like groups, clubs and
of the leading sports news providers), message boards. The popularity
posta.com.tr (the website of Turkey’s of this project is an interesting
best-selling newspaper) and hi5.com phenomenon. While on most markets
(a well-known social networking information and entertainment
service). ReklamZ also represents such make up the backbone of online
websites as eksisozluk.com (the oldest mass-media websites, this particular
online community in Turkey) and cultural service in Turkey is able to
fizy.com (a leading online music gain 7th place in the general ranking
provider). of websites by reach. According
to IAB Turkey’s Internet Audience
Interestingly, the internet in Turkey Measurement conducted by Gemius
also contains very locally-specific and Ipsos, in March 2010 Antoloji
online projects, which make it a very had almost 4 million real users
interesting market. One of the best interested in this niche topic, with
examples of this is a website which a reach of 16%.

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1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER

NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH


REAL USERS USER PER USER

1 webgazete.net 2 381 51 06:34:40 0.01%

2 80630.com 30 773 586 06:21:49 0.1%

3 gazeteoku.com 802 660 47 03:58:11 3%

4 pexu.com 17 077 166 03:07:02 0.1%

5 siberalem.com 653 468 111 02:29:29 3%

6 milliyet.com.tr 6 207 491 115 02:21:51 27%

7 gamyun.net 440 905 134 02:11:04 2%

8 mackolik.com 2 232 298 65 02:02:48 10%

9 mynet.com 8 325 109 175 02:01:10 36%

10 hurriyet.com.tr 6 844 277 126 01:57:09 29%

Table 2 Top 10 websites in Turkey by average time spent per user (Gemius SA / Ipsos KMG:
IAB Turkey’s Internet Audience Measurement, March 2010)

If we look at the Turkish online 6.5 hours on the website. During the
market from the perspective of time same period a similar result (almost
spent per average internet user on 6 hours 22 minutes average time per
each website, the ranking of the user) was obtained by 80630.com,
most significant websites takes on which is an exclusive social networking
a completely different perspective platform (not accessible for non-
and the dominant roles are not played registered users) similar to Facebook.
(unlike in many markets) by the largest
players. Even such an engaging service Majority of the most engaging
as izlesene.com (the local YouTube websites in Turkey keep their users
equivalent) with almost 46 minutes active for 2-4 hours. Among them,
average time spent per user does not one can find such websites as a news
find its place among the most time- aggregator (gazeteoku.com), gaming
consuming websites in Turkey. In turn, platforms (pexu.com and gamyun.net),
first place in the presented ranking a social networking service (siberalem.
is held by one of the less popular com) or a sport news service
websites, webgazete.net, an online (mackolik.com). The most ‘addictive’
newspaper service run by Aktif Haber websites in Turkey include three
Yayın Grubu. According to IAB Turkey’s portals, both horizontal and news-
Internet Audience Measurement based. The 6th ranking position of top
conducted by Gemius and Ipsos, it 10 websites by average time spent
gained barely 0.01% of reach among per user is held by milliyet.com.tr. The
all internet users in March 2010, but whole list was propped up by the most
at the same time its average visitor popular horizontal portal and most
(there were 2,400) spent more than popular news service, mentioned in

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234
the previous section. The average user average user of hurriyet.com.tr spent
of mynet.com, the portal which took 9th almost two hours reading current news
place in the ranking, spent over 2 hours during the same period.
on the website in March 2010 and the

1.3. TOP PORTALS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 mynet.com 8 325 109 175 02:01:10 36%

2 ekolay.net 7 173 983 44 01:04:30 31%

Table 3 The two most popular portals in Turkey by reach level (Gemius SA / Ipsos KMG:
IAB Turkey’s Internet Audience Measurement, March 2010)

The Turkish online market is filled with this website also figures highly in
many well developed news services international rankings for the whole
and internet equivalents of traditional region.
newspapers which, from a practical
point of view, often play the role The second most popular portal
of horizontal services. Despite this participating in IAB Turkey’s Internet
fact, among the top 10 most popular Audience Measurement conducted
websites participating in IAB Turkey’s by Gemius and Ipsos is ekolay.net.
Internet Audience Measurement Its monthly audience oscillates around
conducted by Gemius and Ipsos, there 7.2 million real users. Ekolay.net is run
are only two pure horizontal portals: by Doğan Elektronik İçerik Tasarım
mynet.com and ekolay.net. Hizmetleri ve Yayıncılık A.Ş., a part of
Doğan Şirketler Grubu Holding A.Ş.
According to the results of the above- (Doğan Holding Group of Companies
mentioned study for March 2010, the Inc) founded in 1980 in Istanbul. Doğan
leading horizontal portal in Turkey was Holding is a large organization that
at the same time the second most invests not only in media, but also
popular website on the market with in energy, finance and tourism.
36% reach among all internet users. The company owns many significant
Mynet.com is run by the company of Turkish newspapers which, incidentally,
the same name. It was established in have their own online versions,
1999 by Emre Kurttepeli. Presently, for instance hurriyet.com.tr and
it is a private company employing milliyet.com.tr. Ekolay is one of the
approximately 250 specialists, mainly company’s most popular websites,
engineers. The mynet.com portal is which in March 2010 had a reach
not only a very successful project as of 31%.
regards the Turkish market, but also
because considering the size of the
local internet in this country, which
ensures that it has a constant monthly
audience of over 8 million real users,

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235

1.4. SOCIAL NETWORKS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 blogcu.com 10 110 262 11 00:13:52 43%

2 tr.netlog.com 1 981 046 84 00:57:17 8%

3 siberalem.com 653 468 111 02:29:29 3%

4 hi5.com 587 895 106 00:36:34 3%

5 hocam.com 167 250 159 01:56:32 1%

Table 4 Top 5 social networks in Turkey by reach level (Gemius SA / Ipsos KMG: IAB Turkey’s Inter-
net Audience Measurement, March 2010)

The unquestionable leader among all and multipurpose social networking


websites participating in IAB Turkey’s platform run by Hocam Interaktif.
Internet Audience Measurement Despite the quality of the website,
conducted by Gemius and Ipsos is its popularity is still low, as clearly
blogcu.com, a blogging platform evidenced by the results of the study,
which in March 2010 had over 10 according to which Hocam attracted
million real users, gaining 43% reach less than 170,000 real users in March
and dominating all its competitors. 2010 giving it a mere 1% reach.
Blogcu is the most successful website
run by Nokta, one of the most active According to IAB Turkey’s Internet
companies on the Turkish online Audience Measurement conducted
market. Among the top 5 social by Gemius and Ipsos, internet users
networking websites in this country, in this country also visit international
we can also find two native players. social networking websites. In the
top 5 ranking above we can find such
The first is siberalem.com, a dating brands as Netlog and Hi5. The Turkish
service run by EBI (Elektronik Bilgi section of Netlog attracted almost
İletişim Hizmetleri Reklamcılık ve Tic. 2 million real users in March 2010,
A.Ş.), a company established in 1998, which ensured a safe 2nd place in the
whose portfolio covers such websites ranking. Its market reach amounted
as: idefix.com (an online media/book to 8%. In turn, Hi5 gained less than
store), itiraf.com (a discussion board) 600,000 real users in March 2010,
or evlilikmerkezi.com (a wedding which gave it a reach of 3%.
service). Siberalem gained over
650,000 real users in March 2010,
which gave it a reach level of 3%.

Another native player which found


its place among the top 5 most
popular social networking websites
in Turkey monitored by Ipsos and
Gemius is hocam.com, an extended

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1.5. ONLINE CLASSIFIED ADS BY REACH

NUMBER OF PAGE VIEWS PER AVERAGE TIME PER REACH


REAL USERS USER USER

1 arabam.com 1 836 519 60 00:25:21 8%

2 hurriyetemlak.com 1 213 832 66 00:53:46 5%

3 hurriyetoto.com 990 352 16 00:13:01 4%

Table 5 Top 3 online classified ads in Turkey by reach level (Gemius SA / Ipsos KMG: IAB Turkey’s
Internet Audience Measurement, March 2010)

Online classified advertising seems interested in buying a car (almost


to be relatively popular in Turkey. 54 minutes per user). Hurriyetemlak.
According to IAB Turkey’s Internet com gained 5% reach, just one
Audience Measurement conducted by percentage point more than the other
Gemius and Ipsos, the most frequently automotive online service included in
visited website of this kind in March the ranking, hurriyetoto.com.
2010 was arabam.com which attracted The latter attracted just over 990,000
over 1.8 million real users with real users in March 2010 and took
amarket reach of 8%. Arabam.com 3rd place with a reach of 4%.
is an extensive online database of car
sales announcements. In March its
visitors remained active for an average
of 25 minutes.

In the same period 1.2 million real


users visited hurriyetemlak.com,
a classified advertising website
containing real estate announcements.
Users searched for homes on average
twice as long as those who were

1.6. TOP FINANCE SITES BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

finans.mynet.
1 1 090 039 24 00:30:46 5%
com
bigpara.ekolay.
2 505 713 58 03:11:38 2%
net
3 doviz.com 464 460 9 00:57:25 2%

Table 6 Top 3 finance sites in Turkey by reach level (Gemius SA / Ipsos KMG: IAB Turkey’s Internet
Audience Measurement, March 2010)

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237
The area of finance on the Turkish The 3rd ranking position among
internet is dominated by the finance websites in Turkey is held
horizontal portals Mynet and Ekolay. by doviz.com, a relatively small and
The dedicated sections of these two simple website run by Nokta. Doviz
players hold first and second place, means “foreign exchange” and the
respectively in the ranking of finance website actually focuses exclusively
websites participating in IAB Turkey’s on publishing current exchange rates
Internet Audience Measurement as well as the prices of gold and fuel.
conducted by Gemius and Ipsos. In March 2010 it gained an audience
The financial section of Mynet of over 460,000 real users, which gave
(finans.mynet.com) was visited by it a market reach of 2%.
more than one million real users in
March 2010, which gave it a reach of
5% among all internet users. During
the same period the equivalent
finance section of Ekolay (bigpara.
ekolay.net) was visited by over
500,000 real users, which gave it a
reach of 2%. Internet users visiting this
section of Ekolay remained active for
more than 3 hours.

2. ONLINE AUDIENCE

Unlike in the majority of CEE Furthermore, 75% of the whole online


markets, the gender structure of the population consisted of individuals
online population in Turkey is not under 34 years old. Users aged
balanced. According to the Ipsos 55 years old and more represent only
KMG study for March 2010, 57% of 4% of the total online population. Such
internet users in this country are distribution is characteristic for less
men and only 43% of the whole developed online markets, which are
online population are women. Such not experiencing the phenomenon
a visible disproportion seems to be of getting older along with their
caused by two factors. The first is the users. However, compared to other
‘immaturity’ of the online market, countries, the high increase of the
where men are usually the first to proportion of individuals over 45 and
capture new technologies. The second 55 years old may be expected.
factor is related to certain cultural
specifics which may have a significant Within the whole online
impact on the gender structure of population of this country, there
the Turkish online population. are three major groups of users:
individuals with primary education or
Internet users in Turkey are very less (30%), secondary school education
young. According to the Ipsos KMG (25%) and those who graduated from
study in March 2010 48% of users high school (31%). At the same time
were between 12 and 24 years old. individuals with university education

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239
or scientific degrees comprise only which is congruent with the
14% of the whole online population. distribution observed for the whole
Nevertheless, this figure is impressive population. However, compared
compared to the general Turkish to the total population, the share
population, where the proportion of of individuals living in urban areas
individuals with a university education among internet users is higher by 11
is 7 percentage points lower. percentage points.

The largest group of Turkish


internet users lives in urban areas,

3. TOOLS

3.1. BROWSERS

Chart 1 Top browsers in Turkey by share of page views generated by Internet users who visit Turkish
websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

3.1. Browsers Turkey is Google Chrome (4.9% of all


page views in the first quarter of 2010).
In terms of web browsers popularity, Other solutions
the Turkish online market is both do not enjoy significant interest
unique and interesting compared among Turkish internet users.
to most CEE countries. It is
completely dominated by Microsoft 3.2. Operating systems
Internet Explorer which holds the
consistently largest share. According The group of Turkish internet users
to gemiusTraffic, in the first quarter which generated the largest amount
of 2010 this browser was used by of page views (74%) in the first quarter
visitors responsible for almost 79% of 2010 used Windows XP. According
of all page views generated on websites to the gemiusTraffic study, the second
monitored in the study. During the most frequently indentified operating
same period Mozilla Firefox generated system on the Turkish market is
only 15% of all page views. The third Windows Vista. During the same period
most intensively used web browser in its users were responsible for 17% of

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240

3.2. OPERATING SYSTEMS

Chart 2 Top operating systems in Turkey by share of page views generated by Internet users who visit
Turkish websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

all page views generated on websites – it is Google. In the first quarter


monitored by Gemius. Microsoft’s of 2010, the world’s best known
newest product, Windows 7, comes search engine was a starting point
last. In the first quarter of 2010 it was for almost 99% of all visits which
installed on computers of internet took place on websites monitored
users who were responsible for almost in the gemiusTraffic study in Turkey.
8% of all page views recorded in the The second player on the market,
gemiusTraffic study. To compare, the Microsoft MSN (an engine used by
share of page views generated by Mac MSN itself as well as live.com and
OS X users equaled to only 0.5%. Bing), managed to gain a share of only
1.2% for the totality of visits during
3.3. Search engines the same period. The Yahoo search
engine and all other search engine
There is no doubt as to which search solutions have an insignificant share
engine dominates the Turkish market on the Turkish market.

3.3. SEARCH ENGINES

Chart 3 Top search engines in Turkey by share of visits generated by Internet users who visit Turkish
websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

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241
3.4. Screen resolutions
3.4. SCREEN RESOLUTIONS
The most popular screen resolution
in Turkey is 1280 x 1024. In the first
quarter of 2010, it was recognized
on computers of users responsible
for almost 43% of all page views
made on websites monitored in the
gemiusTraffic study. Other top screen
resolutions on the market are less
popular. In the first quarter of 2010
their shares oscillated between 18%
(for 1280 x 800) and 4.6% (for 1152
x 864).
Chart 4 Screen resolutions in Turkey by share of page views generated by Internet users who visit
3.5. Mobile devices - models Turkish websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

According to the gemiusTraffic study,


the most popular mobile device used
to access the web in Turkey is the
iPhone, which was responsible for 35%
3.5. MOBILE DEVICES
of page views generated by mobile
devices on the average website in
July. The second most popular mobile
device was the Nokia 5800.
Its users generated 12% of the mobile
traffic on the average Turkish website
using gemiusTraffic. The other Apple
product, the iPad, had a 5% share.
However, its popularity is growing
and over two months has gained
2 percentage points.

Chart 5 Top 5 mobile devices in Turkey by the website-averaged percentage share of page
views generated by internet users form Turkey who visit Turkish websites using gemiusTraffic
(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10
**to 2010-07-25

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242

4. BRANCH ORGANIZATIONS

IAB Turkey Turkish IPTV Association

www.iab-turkiye.org www.iptv-der.org

Description: IAB Turkey was Description: The Turkish IPTV


established in 2007 and acts as Association represents the next
a reference center for interactive generation of the TV broadcasting
advertising and the digital marketing platform in Turkey. As a non-profit
industry in Turkey. Its mission is organization, the association aims to
to contribute to the development develop technologies and standards
and growth of the interactive that might help streamline and
industry; by setting standards, accelerate deployments of IPTV,
organizing networking initiatives which will help maximize the benefits
and activities, coordinating internet of IPTV for consumers, network
audience measurement research and operators, content providers, service
organizing educational programs. providers, consumer electronics
manufacturers and home and
Members: At present, IAB Turkey network infrastructure providers.
has 109 members including media
agencies, publishers, interactive Online Media Association (OMA)
agencies and advertisers.
www.internetmedyasi.org

Mobile Marketing Association Description: The Online Media


Association (OMA) aims to establish
mmaglobal.com digital media as a respected and
reliable marketing channel. OMA
Description: The Mobile Marketing makes the effort to be the leading
Association established its local and standard setting organization in
branch in Turkey in 2009. The Turkey especially for online publishing
objective of MMA Turkiye is to and journalism.
foster the burgeoning mobile
marketing industry in Turkey through Members: The Association has
local participation from industry 365 members, all online content
stakeholders, driving the early providers.
integration of global standards and
industry guidelines across the mobile
channel in the country and providing
a powerful platform for knowledge
sharing.

Members: At present MMA Turkiye


has 29 members.

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243

5. ADVERTISING NETWORKS

GENERAL CONTACT INFORMATION


FULL NAME HOMEPAGE URL ADDRESS MAIN OFFICE CONTACT
ADDRESS

MedyaNet İletişim Eski Büyükdere Cad. Ayazağa Phone: +90-212-304-21-00 (01)


1 Reklam Pazarlama ve medyanet.com.tr Ticaret Merkezi C Blok No:11 Giriş Fax: +90-212-328-05-84
Turizm A.Ş. Kat 34398 Maslak/İstanbul Email: bilgi@medyanet.com.tr
Logaritma Internet ve Büyükdere Cad Tevfik Erdönmez Phone: +90-212-273-10-27
2 Bilgi Teknolojileri Tic. logaritma.com.tr Sokak Gül Apt 2/23 Esentepe/ Fax: +90-212-273-27-29
Ltd. Şti. İstanbul Email: logaritma@logaritma.com.tr
Barbaros Bulvarı Morbasan Sokak Phone: +90-212-266-96-96
Medyaguru Reklam Hiz.
3 medyaguru.com Koza İş Merkezi B Blok No:12 Kat:3 Fax: +90-212-213-80-82
Ve Tic. A.Ş.
Balmumcu - Beşiktaş / İstanbul Email: info@medyaguru.com
Phone: +90-212-324-00-60
Rgte İletişim Reklam Paz. Esentepe Mah.Talatpaşa Cad.
4 netbookmedia.com Fax: +90-212-324-20-62
ve Tic. A.Ş. No.5 Kat 3 Şişli / İstanbul
Email: info@ netbookmedia.com
Leylak Sok. No: 26 Nursanlar
Reklamz İnternet Reklam Phone: +90-212-213-70-05
5 reklamz.com İş Merkezi A Blok K:7 No:26
Hiz. ve Bilişim Tekn. A.Ş. Email: bilgi@reklamz.com
Mecidiyeköy-Şişli-İstanbul
Barbaros Bulvarı No:153 34349,
6 Turkuvaz turkuvazyayin.com.tr Phone: +90-212-354-30-00
Beşiktaş-İstanbul
İsmail Paşa Sk. No:27 Koşuyolu Phone: +90-216-339-09-98
7 Yeni Medya yenimedya.com.tr
İstanbul Fax: +90-216-339-09-58
Nokta Medya İnternet Phone: +90-312-236-16-69
Gökırmak Sokak No:2 Beysukent
8 Hizmetleri San. ve Tic. nokta.com Fax: +90-312-236-16-79
ANKARA 06800
A.Ş. Email: medya@nokta.com
Kuştepe Mah. Leylak Sok. Phone: +90-212-444-54-65
Linkz Internet Reklam
9 linkz.net Nursanlar İş Mrk. K:1 N:6 Şişli, Fax: +90-212-213-70-07
Hiz. Ve Bilişim Tekn. A.Ş.
İstanbul Email: bilgi@linkz.net
Magnet Bilgi Eski Üsküdar Cad. Çayıryolu Sok.
10 Teknolojileri ve magnetdijital.com Partaş Center No: 1/16 İçerenköy- Phone: +90-216-577-33-11
Sistemleri A.Ş. İstanbul
Meclis-i Mebusan Cad. No:23
Maksimum İletişim Phone: +90-212-243-45-28
11 maksimum.net Dursun Han Kat:1
Hizmetleri A.Ş. Fax: +90-212-243-45-29
34433 Tophane-İstanbul

6. OPINIONS FROM THE MARKET

Orkun Tekin
Chairman, reklamz.com, semtr.com, linkz.net, fizy.com

Online advertising market

What are the opportunities and obstacles for online advertising on your local
market?

We can observe many opportunities for the online advertising market in Turkey.
This is mainly because of the rapid growth of internet advertising spending since

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244
2002. According to the Advertisers Association, in the first quarter of 2010 internet
advertising spending grew by 63% compared with total advertising budgets.
We predict that this acceleration will continue for at least the next five years.
What is more, as the majority of the Turkish population is between the ages of
1-24, we assume that internet usage will continue to grow. The reason for this is
that the young generation is becoming more accustomed to using the internet for
everyday activities. The same can be observed in all digital sectors.

The greatest opportunity in the Turkish online internet advertising sector is its
tendency to bring together all advertising means under one digital platform. All
offline advertising products are becoming more digitalized every day. Publications
are becoming internet advertorials, TV content is becoming digital video
broadcasts, audio products, and radio broadcasts are being digitalized. On the flip
side, there is a gap in education and the experience of human resources who are
employed both in media planning agencies and in the advertising departments
of major brands. This causes problems in understanding the effectiveness,
advantages and new trends by both agencies and brands.

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in the future?

We can observe three main periods in the trends on the Turkish market. Prior
to 2007, an era of standard banner display based on impressions was evident.
Following this, in 2008, there was an era of rich and interactive media products
as well as performance advertising. From 2009 agencies have tended to focus on
special projects capturing users beyond base advertising means.

When we look at the first quarter of 2010 such special projects have continued to
grow. Brands are interested in unique, interactive ideas connecting them to their
target audience. Also, advertisers’ concerns have switched from basic banner
display to seeing beyond performance. Display to diversion and from diversion
to conversion has gained major importance. The urge of advertisers to take ROI
measures into account has forced Ad networks to include performance targets into
their calculations. CPX ad models become more and more economically feasible
thus creating a necessity in the evolving Turkish internet usage practices.

In general, there are 3 main trends that drive the internet advertising sector.
The first of them is video advertising. Brands see video advertising to be an
effective way to reach their target audience as a result of usage in TV advertising
habits. Every day, increasingly more people watch video content on the internet.
Video content is more valuable on digital platforms since it is more precisely
measurable, it is easier to segment the audience and also report outcomes
in terms of ROI. Digital video content (which is different from TV advertising)
is interactive and continues to capture the target audience even after video
content is presented. Through clickable video content, users are diverted to the
advertiser’s website to continue interacting with the brand.

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Another trend which drives the internet advertising sector is social media
advertising. Many global and local brands interact with users in Turkey through
social media accounts. Facebook users originating from Turkish IPs have
reached a level of 4 million a day. As a result, more than 5 agencies have offered
professional services on social media like account management and seeding.
Brands have started to employ social media specialists. From another perspective,
social media platforms have started to offer a complete interactive package
including image, video and audio content. Digital sharing, idea creation and social
movement have all become hot topics. Information sharing and branding has
followed naturally.

Another trend is mobile advertising. With the launch of smart phones and more
advanced mobile devices capable of high speed internet connection, internet
users have started to use the mobile internet in their everyday life. Today there are
11.4 million 3G users in Turkey. Therefore, display budgets in the ‘mobile’ category
have reached to $150,000 per month. What is more, several mobile agencies are
trying to expand this market. Reklamz launched a new set of products under a new
company called “MobileZ“ to respond to this demand.

Regarding the future, it should be said that trendy products in the video, social
media and mobile categories will continue to grow, as they will become the new
hot spots in information sharing. Most importantly, digital advertising is becoming
increasingly more independent of offline advertising with its own methodology,
vision and technology.

In general, products that are structured on the basis of audience targeting will
continue to grow. Identifying, capturing, tracking and interacting with the target
audience and the technological capabilities thereof will be a necessity rather than
a demand in the upcoming years.

Global vs. local players

Are the local players present on your local market strong enough to compete with
the global giants? What advantages and strategies do they use in this battle?

The strongest global players are Facebook and MSN. Dailymotion is another media
giant that has entered the Turkish market. All these publishers supply specific
content, which competes and, in most cases, dominates the fields they enter. Their
edge usually lies in the technology they use and the new methodologies that are
extremely well constructed and tailored to the audience. Their products are well
designed as a result of well-evolved user segmentation abroad.

Internet search is completely dominated by Google and there is no competition


in SEM. In mobile advertising, local sales houses dominate the market. There are
several reasons for this. First of all, inventory is restricted, so that publishers do
not use blind basis mobile display networks. Secondly, agencies are in the learning
phase. This means that salespeople in the dominant sales houses are convincing
media planners to move to mobile display therefore budgets are dividing inside
these sales houses.

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Ukraine
8.92m
internet users

1. MAINPLAYERS_247
1.1. Top10websitesbyreach_247
1.2. Top10websitesbyaveragetimespentperuser_248
1.3. Topportals_249
1.4. Social networks_250
1.5. Onlineclassifiedadsbyreach_251
1.6. Topfinancesitesbyreach_252
2. ONLINEAUDIENCE_252
3. TOOLS_254
3.1. Browsers_254
3.2. Operatingsystems_255
3.3. Search engines_255
3.4. Screen resolutions_255
3.5. Mobiledevices_256
4. BRANCHORGANIZATIONS_257
5. OPINIONSFROMTHEMARKET_258
247

1. MAIN PLAYERS

1.1. TOP 10 WEBSITES BY REACH

WEBSITE’S CATEGORY NUMBER OF REAL NUMBER OF PAGE PAGE VIEWS PER AVERAGE TIME PER REACH
USERS VIEWS USER USER

1 mail.ru horizontal portal 5 170 428 804 602 875 156 03:56:17 58%

2 yandex.ua (*) horizontal portal 4 350 184 365 007 925 84 03:52:58 49%

3 marketgid.com e-shop catalogue 3 217 384 39 277 914 12 00:50:12 36%

4 meta.ua horizontal portal 2 586 042 69 090 816 27 00:37:01 29%

5 i.ua horizontal portal 2 341 812 119 043 456 51 01:02:53 26%

6 tochka.net horizontal portal 1 818 973 17 419 775 10 00:09:14 20%

7 bigmir.net horizontal portal 1 673 814 67 863 776 41 01:07:28 19%

8 gismeteo.ua weather portal 1 658 453 37 326 182 23 00:20:01 19%

9 redtram.com.ua news service 1 472 170 12 430 345 8 00:37:58 17%

10 online.ua horizontal portal 1 433 729 32 761 772 23 00:31:38 16%

Table 1 Top 10 websites in Ukraine by reach level (gemiusAudience, March 2010)

In March 2010 the ranking of the most is no Ukrainian language version, but (*) In
March 2010 on the Ukrainian market the
node yandex.ua consisted of the portals’ main
popular websites by reach in Ukraine as with the horizontal portals, the page and search page only.
was dominated by horizontal portals. Russian version is popular among
They occupied 7 out of the top 10 internet users in Ukraine. Yet its
places and together generated almost popularity, in comparison to March
1.5 billion page views. Mail.ru 2009, fell by 2 percentage points.
(58%) and yandex.ua (49%) are the
leaders on the Ukrainian online The 7th ranking position was occupied
market. What is interesting is that by bigmir.net, a horizontal portal
they both originate from Russia. Other owned by the number one media
popular horizontal portals among holding in Ukraine, KP Media. It
the Ukrainian online population are offers services typical for this kind of
meta.ua with a reach of 29%, i.ua with site, i.e. news, a mail service, blogs,
26% and tochka.net with 20%. They photo and video sections as well as
are described in detail in the table 1.3 a dating service. In March 2010 it
Top portals. gained a reach level of 19% (it has
lost 4 percentage points of its reach
One of the non-portal sites in level over the last twelve months)
the gemiusAudience ranking was and has only a slightly advantage
marketgid.com. In March 2010 its over gismeteo.ua, which is a popular
reach amounted to 36%. It is an weather portal that belongs to
e-shop catalogue operating in Russia, the Russian company Map Maker
Germany, Poland and Romania. There (www.mapmakers.ru). It ranked eighth

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248
and had over 1.6 million real users, news in English, French, German,
who on average spent 20 minutes on Spanish, Italian, Polish, Chinese,
the service in March 2010. Russian and Ukrainian.

The last two positions in the ranking In March 2010 online.ua had over
belonged to a news aggregator, 1.4 million real users. The portal
redtram.com.ua (17%) and another includes such services as mail, a search
horizontal portal, online.ua (16%). The engine, a catalogue of websites,
first enables its users to find the latest an online TV schedule amongst others.
news they are interested in thanks to It is slowly gaining popularity and
a variety of searching criteria available. compared to March 2009 its level of
Moreover, redtram.com aggregates reach increased by 1 percentage point.

1.2. TOP 10 WEBSITES BY AVERAGE TIME SPENT PER USER

NUMBER OF PAGE VIEWS PER AVERAGE TIME REACH


REAL USERS USER PER USER

1 football.ua 305 634 175 04:17:26 3%

2 mail.ru 5 170 428 156 03:56:17 58%

3 yandex.ua 4 350 184 84 03:52:58 49%

4 connect.ua 247 857 216 02:26:53 3%

5 ria.ua 996 942 115 01:59:00 11%

6 quest.ua 11 647 61 01:49:47 0.1%

7 minfin.com.ua 26 688 55 01:47:23 0.3%

8 basket.com.ua 17 058 66 01:42:28 0.2%

9 photographers.com.ua 22 900 109 01:22:52 0.3%

10 bigmir.net 1 673 814 41 01:07:28 19%

Table 2 Top 10 websites in Ukraine by average time spent per user (gemiusAudience, March 2010)

The sites included in the top 10 In March 2010 second and third
ranking by average time spent positions were occupied by Russian
per user, on the basis of the horizontal portals mail.ru (3 hours and
gemiusAudience study from March 56 minutes) and yandex.ua (3 hours
2010, are diversified in terms of site 53 minutes). They are both successful
categories. The leader with 4 hours in Ukraine.
17 minutes was football.ua, a sports
portal dedicated to football fans. Its Connect.ua is a local social network
owner is Ukrainian Media Holding, whose popularity is on the decline. In 
whose portfolio of internet projects March 2010 its reach level amounted
also includes the news portals kp.ua to 3%, yet, in terms of average time
and focus.ua as well as dengi.ua, spent per user it ranked fourth with
a business and finance service. a result of 2 hours 27 minutes.

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249
5th place belonged to the classified 47 minutes online there. The average
ads website ria.ua, with an average user of basket.com.ua, which occupied
user spending almost 2 hours on the next position in the ranking,
this service in March 2010. Only 10 spent only 5 minutes less online.
minutes less was spent by the average Basket.com.ua is a service dedicated
user of quest.ua, i.e. 1 hour 50 to basketball with a forum where
minutes. This site is dedicated to the fans can exchange their views and
community of Quest players, which is comments on current sports events.
an offline game where players need
to use their wit and creativity to find With a result of 1 hour and 23 minutes
a hidden code hidden somewhere in photographers.com.ua came 9th in the
their city. Quest.ua had over 11,600 ranking. It is a network of professional
real users in March 2010. photographers. They can upload their
photos to a gallery and let others
There was also a place for a financial comment on them. In March 2010 it
portal in the ranking, namely had 22,900 real users, however, its
minfin.com.ua. It publishes news popularity has been growing (in March
concerning finances, banks, currencies 2009 it was 11,371). The ranking was
and the stock exchange. According to propped up by the above-mentioned
the gemiusAudience study from March bigmir.net, whose average user spent
2010, it had 26,688 real users and 1 hour 7 minutes there.
the average viewer spent 1 hour and

1.3. TOP PORTALS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 mail.ru 5 170 428 156 03:56:17 58%

2 yandex.ua 4 350 184 84 03:52:58 49%

3 meta.ua 2 586 042 27 00:37:01 29%

4 i.ua 2 341 812 51 01:02:53 26%

5 tochka.net 1 818 973 10 00:09:14 20%

Table 3 Top 5 portals in Ukraine by reach level (gemiusAudience, March 2010)

Horizontal portals are very popular Ukrainian office was opened in 2008, it
among Ukrainians. According to the did not become very active until 2009,
gemiusAudience study from March when the head of the Ukrainian office
2010, the leader, with a reach level changed. Mail.ru has from that point
of 58%, was mail.ru. It is a Russian- been taking an ever larger proportion
based horizontal portal, once a free of the market.
email service that evolved into one
of the biggest players on the post- Second place was occupied by
Soviet online markets. Although the yandex.ua, another Russian-based

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250
portal popular in the post-Soviet services amongst others. Moreover,
countries. Yandex.ru started its career there is a communication section with
as a search engine in September 1997 a postal system, a forum, blogs and
and has since been constantly gaining the suchlike.
new audience. Today it is the only
real competitor to Google in Ukraine With a 26% reach i.ua ranked fourth
and Russia. Though the ranking from in the top 5 portals in the Ukraine
March 2010 presents statistics for ranking. The developer of this
home page and search page only, its internet portal is the internet agency
reach level amounted to 49%, i.e. more Mi[6], which offers a wide range of
than 4.35 million users. Moreover, advertising services on the internet.
it is no longer simply a search engine. The horizontal portal includes a mail
On the home page users can find service, a website catalogue, weather
news, weather and traffic information, forecasts, a translator, photos, blogs,
exchange rates and much more. dating services and much more.

Meta.ua (29%) is a Ukrainian The ranking was propped up by


horizontal portal and search engine. tochka.net, which in March 2010
It became influential on the Ukrainian had a reach level of 20%. It seems
online market despite the fact to be a very promising player on the
that its head office was in Kharkiv, Ukrainian online market. It is owned
not in Kyiv (which is quite unusual by digital ventures, an online media
among Ukrainian online publishers). holding, which launched several
It offers its users basic services websites in 2008, then bought some
such as a searching system on the more in 2008-2009 and by the end of
Ukrainian segment of the internet and 2009 restructured them and created
a catalogue of sites, search engine one portal, tochka.net.
for e-shops and pricelists, a system
for news monitoring, information

1.4. SOCIAL NETWORKS

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

connect.ua 247 857 216 02:26:53 3%

Table 4 Local social network measured in the gemiusAudience study


(gemiusAudience, March 2010)

The only local social network in mean that Ukrainians are not fond
Ukraine worth mentioning is of social networking services. Two
connect.ua. According to the Russian social networking websites
gemiusAudience study, in March are quite popular: vkontakte.ru
2010 its reach level amounted to and odnoklassniki.ru. Due to the
3%, 2 percentage points less than a shared history of both countries as
year before. However, this does not well as tight business and cultural

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251
or even family connections, Russian stemmed from its internationality and
and Ukrainian markets are closely technological advances, in particular
interconnected. its integration with Twitter, YouTube,
etc.
What is more, Facebook’s popularity
is growing in Ukraine. According to
Facebook Statistics, it had 425,680
users (July 2010) in Ukraine. Its success

1.5. ONLINE CLASSIFIED ADS BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 ua.all-biz.info 1 124 647 10 00:09:15 13%

2 prom.ua 1 083 169 11 00:10:36 12%

3 ria.ua 996 942 115 01:59:00 11%

Table 5 Top 3 online classified ads in Ukraine by reach level (gemiusAudience, March 2010)

The leader in the top 3 online with practically the same scope of
classified ads in Ukraine by reach services.
ranking was, in March 2010,
ua.all-biz.info with a reach level of The ranking was propped up by
13%. It is a business directory for ria.ua with an 11% reach. It contains
companies, which provides free free offers classified into three main
profile registration and paid profiles categories: automotive, real estate
with more advanced options. and job announcements.
Moreover, it allows its users to The service belongs to Aukro
upload their price lists, announce (Allegro Group), which during
tenders and helps to find contractors 2008-2009 bought most of
or business partners. This Ukrainian the largest online auctions,
site has mirrors in several other e-commerce websites, free
countries, including Russia, Poland, classified websites and industrial
Moldova, Kazakhstan, Spain and catalogues.
Turkey.

The other significant player


on the Ukrainian classified ads
market is prom.ua. According to
the gemiusAudience study from
March 2010, it had over 1 million
real users and a reach level of only
1 percentage point lower than the
leader’s. Like ua.all-biz.info, prom.ua
is a business directory for companies

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252

1.6. TOP FINANCE SITES BY REACH

NUMBER OF REAL PAGE VIEWS PER AVERAGE TIME PER REACH


USERS USER USER

1 liga.net 1 154 514 9 00:14:32 13%

2 finance.ua 526 025 19 00:32:18 6%

3 ligazakon.ua 249 941 5 00:06:22 3%

Table 6 Top 3 finance sites in Ukraine by reach level (gemiusAudience, March 2010)

According to the gemiusAudience of operational information for


study from March 2010, there was one financial market operators. Finance.
leading finance site in Ukraine, liga.net. ua is a respected business news
Its reach level amounted to 13% that service with an online audience of
is over 1.1 million real users. The site over 526,000 users. Since it is one
belongs to LigaBusinessInform, one of of the oldest sites in this category,
the largest Ukrainian news agencies. its position is well established and
It is a respected source of information therefore has one of the most
for Ukrainians. It offers its users with expensive online ad venues in Ukraine.
news and up-to-date financial market
information. Moreover, they can visit In March 2010, another popular
a forum and exchange their views finance site among the Ukrainian
or ask for advice from other visitors. population was ligazakon.ua.
Liga’s main source of income is Like liga.net, it is owned by
advertisements. LigaBusinessInform. Its reach level
amounted to 3% and the average
In second place of the top 3 ranking is user spent 6 minutes on the service.
finance.ua, owned by the Infinservice The site has an online database
Agency (www.ifs.kiev.ua), which of documents, laws and analyses
specializes in collecting and diffusion available on demand, after a payment.

2. ONLINE AUDIENCE

The Ukrainian gender structure of In terms of age the most


the online population is dominated by significant group within the Ukrainian
men. Although women constitute the online population was young people
majority of the Ukrainian population, aged 15-24, who in March 2010
in March 2010 men accounted for constituted 37%. The second largest
56% of the online audience. However, group, users aged 25-34, accounted
the average woman spent around 20 for 28% of the online population. The
minutes more online than the average share of successively older groups falls
man. with age and users over 55 constitutes

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254
only 3% of the market. However, what 62% of Ukrainian internet users
is interesting is that the oldest internet live in cities with over 500,000
users in Ukraine spent the most time inhabitants. This was 3 percentage
per user online, i.e. almost 10 hours points less than in March 2009.
on averange. Only 7% of the online population
(2 percentage points more than a year
Ukrainian internet users are well- before) lived in villages. When it
educated. The majority of Ukrainian comes to average time spent online,
internet users have higher education. internet users from cities with 101,000
According to the gemiusAudience – 500,000 inhabitants came top.
study from March 2010 they accounted
for 47% of the online population in In March 2010 the most
Ukraine. The next significant group numerous group in terms of
were users with incomplete higher occupation (26%) among Ukrainian
education (28%). Together they internet users were highly qualified
accounted for 75% of the online specialists. Second place belonged to
audience. Bearing in mind that students, who accounted for 23% of
Ukrainian internet users are young, the online population.
the fact that 17% of them graduated
from secondary school bodes well for
the future educational structure of the
Ukrainian online population.

3. TOOLS

3.1. BROWSERS

Chart 1 Top browsers in Ukraine by share of page views generated by internet users who visit Ukrai-
nian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

3.1. Browsers recently MSIE’s share of page views


generated by internet users who visit
For many years the leader on the Ukrainian websites using gemiusTraffic
Ukrainian browsers market was is decreasing. At the end of 2009 it
Microsoft Internet Explorer. However, was overtaken by Opera. Moreover,

Do you CEE? Ukraine


255
MSIE’s 2nd position is threatened
by the growing popularity of Firefox. 3.2. OPERATING SYSTEMS
During the past twelve months its
share of the market has increased by
4 percentage points, while during the
same period MSIE’s has decreased by
13.

Another browser used by Ukrainian


internet users is Chrome, whose
market share after the first quarter of
2010 amounted to 4%.

3.2. Operating systems Chart 2 Top operating systems in Ukraine by share of page views generated by internet users who
visit Ukrainian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

As on the other CEE markets, the


leader among operating systems in
Ukraine is Windows XP. After the
first quarter of 2010 its share of the
market, studied by gemiusTraffic,
3.3. SEARCH ENGINES
constituted 83% and its position
seems to be unthreatened. However,
the newcomer, Windows 7, gained
almost 9% of the market in less than
a year. Windows Vista did not meet
the Ukrainian online audience’s
expectations and after a short period
of growth its market share is now
declining. After the first quarter of
2010 it amounted to 6%.

Chart 3 Top search engines in Ukraine by share of visits made by internet users who visit Ukrainian
3.3. Search engines
websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

What is interesting about the


Ukrainian search engine market is
that it is not as dominated by Google
as are the markets in other CEE
3.4. SCREEN RESOLUTIONS
countries (except Russia). After the
first quarter of 2010 it accounted for
62% of the visits made by internet
users who visit Ukrainian websites
using gemiusTraffic. The second force
was Yandex with a market share of
34%. Other search engines, i.e. Meta,
Rambler and MSN, were not popular
among Ukrainians (2%, 2% and 1%,
respectively) and therefore do not
pose any threat to the two main
players.
Chart 4 Screen resolutions in Ukraine by share of page views generated by internet users who visit
Ukrainian websites using gemiusTraffic (gemiusTraffic study 1Q 2007 – 1Q 2010)

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256

3.5. MOBILE DEVICES

Chart 5 Top 5 mobile devices in Ukraine by the website-averaged percentage share of page views
generated by internet users from Ukraine, who visit Ukrainian websites using gemiusTraffic
(gemiusTraffic, 10.05.2010 - 25.07.2010, weighted average for months) *from 2010-05-10
**to 2010-07-25

3.4. Screen resolutions second position and according to the


gemiusTraffic study was responsible
Like other CEE online markets, for 6% of page views generated by
the market share of 1024 x 768 mobile devices on an average website
monitor screen resolutions has been in July 2010.
decreasing over the past few years.
However, unlike the other markets,
it is no longer the most popular
choice among Ukrainians. After the
first quarter of 2010 the leader was
a screen resolution of 1280 x 1024.
Other popular ones in the first quarter
of 2010 were 1280 x 800 and
1440 x 900.

3.5. Mobile devices - models

The most popular mobile device used


to connect the web on the Ukrainian
market is the iPhone, which has
a market share of more than 7%.
However, it is gradually losing its
position in favor of the iPad, which is
constantly becoming more popular,
increasing its share by 2 percentage
points within the past two months.
The growth within these last two
months could be observed also for
Nokia 5130 XpressMusic, which takes

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257

4. BRANCH ORGANIZATIONS

Ukrainian Association Of Internet social, economic, technological and


Advertising (UAIR) political environment in Ukraine,
which supports development of the
http://uair.org.ua/ Ukrainian internet.

Description: The mission of the The Association carries out rule-


Ukrainian Association Of Internet making functions and supports the
Advertising is to create conditions development of modern IT products
for effective development of the and technologies; it assists in the
advertising market in Ukraine in order organization of a dialog between
to meet the needs of advertisers, representatives of business and
consumers and users of internet state structures with the aim of the
resources on a global level, as well development of the national electronic
as to increase the share of advertiser market as one of priority industries of
budgets. To achieve this, UAIR has economy of Ukraine.
begun a full study of the Ukrainian
internet. UAIR was established in Members: Unicom Systems Ltd;
2007. In the autumn of 2010 the Monexy Ltd; OSMP Ltd; Payment
association will be expanding and Systems Ltd; Private entrepreneur
changing its structure and it is planned physical person Kurshynov V.V. Project:
that it will fulfill a wider range of myEshop; UnIT Ltd; Interkassa Ltd;
regulatory tasks on the market. Dizex Company Limited; Private
Enterprise NeoVen; Private Enterprise
Members: Portals, international 2pay; Private Enterprises Grushetski
marketing and advertisement D.A Projekt: HostService; Private
networks representatives (e.g. entrepreneur-physical person Kirilov
LigaBusinessInform, Bigmir-Internet, S.O. Platform for Internet shops:
META, GoupM, Initiative, Publicis). Shopium.ua.

Association of Participants of
Electronic Business of Ukraine

http://uelbu.org/

Description: The public organization


„Association of Participants of
Electronic Business of Ukraine”
(UELBU) was founded in May 2008
in Kyiv. The association operates
as a non-state noncommercial
organization, and is a voluntarily
association of businesses and
other legal entities conducting
their business in the sector of
information technologies. The
aim of UELBU is to form a healthy

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258

5. OPINIONS FROM THE MARKET

Dmytro Sholomko
Director of Google Ukraine

Online advertising market

What are the opportunities and obstacles for the online advertising market on your
local market?

Ukraine is one of the fastest growing online markets in Europe; there are still many
opportunities for everyone involved in online business. Services, even basic ones,
are not yet professionally developed, so there is much room for growth. However,
there are many obstacles: first of all, there is the lack of e-commerce mechanisms
on the market (like payment solutions) and also an absence of support from the
government on the legislative level.

Dominating trends

What are the recent trends on your local online market? What areas are expected
to develop most in the future?

E-commerce projects and SMBs are segments that are growing fastest in the
online advertising market in Ukraine. There are no signs that the pace of growth
will fall in the nearest future.

Global vs. local players

Are the local players present on your local market strong enough to compete with
the global giants? What advantages and strategies do they use in this battle?

There are no strong local players on the market, growth is mostly driven by
international companies and foreign investment.

Market specifics

What makes your local online market unique? Are there any specifics that make it
different from others in the CEE region?

Ukraine is a bilingual market, with both Ukrainian and Russian languages freely
used in online activities (with Ukrainian usage growing slightly faster). The market
is also influenced by different trends:
• in content, Ukrainian users spend much time on Russian websites, while
• in business practices, they follow the Polish model, with Polish companies
being one of the top market players developing e-commerce in Ukraine.

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259
It is important to consider these factors while planning business development
in Ukraine, as many market players find them confusing and cannot operate
effectively.

Sergey Petrenko
General Director of Yandex.Ukraine

Online advertising market

What are the opportunities and obstacles for the online advertising market on your
local market?

The online market in Ukraine is still not fully developed and small. According to
the assumptions of the Ukrainian Advertising Coalition (UAC), the share of online
advertising will account for 3.4% of total adspends in Ukraine. However, at the
same time, online ads are growing faster than other media in Ukraine: a 58%
increase in 2009 vs. 2010. In 2010, the UAC expects 230 million hryvnas to be
spent on online advertising, where 130 million will be spent on display ads and
100 million on context and classifieds advertising. In general, the online market in
Ukraine is developing, and increasingly more key advertisers use the internet as an
important and efficient media channel.

Market specifics

What makes your local online market unique? Are there any specifics that make it
different from others in the CEE region?

At present, internet penetration on the Ukrainian internet market is one of the


lowest in Europe. However, this makes the market unique, because the number of
internet users in the upcoming years will grow and new users will not necessarily
behave the same way as current ones. Even now, according to the latest research,
new internet users behave differently than old UAnet users: they prefer other
resources, use other services; therefore those market players, who manage to
guess the desires of these novices will score a considerable advantage in
the future.

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260

METHODOLOGICAL NOTE

DATA SOURCES

The general market descriptions provided in the report are based upon data
acquired by the gemiusAudience study. For each country, reach rankings of the
top ten websites included in this study are presented. Additional statistics from
gemiusAudience study further enrich the information in the rankings. Romania
constitutes the only exception, where the ranking according to SATI, by BRAT
Traffic measurement was presented.

SOURCE DATE NUMBER OF WEBSITES AGE GROUP


INCLUDED

Belarus gemiusAudience March 2010 124 15+

Bulgaria gemiusAudience March 2010 306 15+

Croatia Gemius/Valicon, gemiusAudience March 2010 285 12+

Czech Republic NetMonitor – SPIR/Mediaresearch/Gemius March 2010 483 10+

Estonia gemiusAudience March 2010 37 15+

Hungary gemius/Ipsos Audience March 2010 2161 15+

Latvia gemiusAudience March 2010 189 15+

Lithuania gemiusAudience March 2010 125 7-74

Poland Megapanel PBI/Gemius March 2010 13954 7+

Romania SATI, by BRAT Traffic measurement March 2010 over 300 14-64

Russia gemiusAudience March 2010 266 18+

Slovakia AIMmonitor – AIM – Mediaresearch & Gemius March 2010 95 14+

Slovenia Gemius/Valicon, gemiusAudience MOSS March 2010 117 10+

Turkey gemiusAudience March 2010 154 12+

Ukraine gemiusAudience March 2010 296 14+

Another type of data presented in the report originates from gemiusTraffic. This
concerns information on browsers, operating systems, search engines, screen
resolutions and mobile devices. Data for web browsers and operating systems
of low popularity is aggregated in groups consisting of all versions of a particular
browser or operating system.

The description of each market was supported with the experience and knowledge
of Gemius local representatives present in each of the countries included in the
report.

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261
The “Opinions from the market” section, which contains forecasts concerning the
future of the internet in the researched countries, consists of direct citations of
the opinions expressed by local market experts.

Data on the overall number of internet users presented at the beginning of each
country chapter is for March 2010. Further reference can be found below Charts
1,2 and 3 in Online Landscape chapter.

ABOUT gemiusAudience

Gemius sets the standard for online audience and internet application
measurement (gemiusAudience) in almost half of all European countries.
The gemiusAudience study integrates offline research, site-centric measurement,
on-site questionnaire surveying and user-centric measurement to provide media
sellers, planners and buyers with online media planning data. The data is provided
once per month, reporting on a weekly or monthly basis.

The cookie files are recorded for a user upon a first page view generated in
a measured month. The files present data for cookies that have been ascribed
to a particular country until the end of the month. Panellists who are enrolled
in a software panel (where such is available, i.e. Hungary, Poland and Russia),
are recruited from a particular country only, based on their geolocation details.
More information on this study can be found on www.gemius.com and
www.audience.gemius.pl.

ABOUT gemiusTraffic

The gemiusTraffic study provides information on internet users’ web site behaviour
and technical characteristics of their computers. The data is gathered with the use
of counting scripts, which are embedded in the code of sites included in the study.
For more information go to www.gemius.com and www.rankingcee.com websites.

Rankings concerning web browsers, operating systems and screen resolutions are
based on the number of page views generated on the monitored sites. For each
browser, operating system and screen resolution we calculate the total number of
page views on all sites, so that we can obtain the percentage share of page views
from this browser, operating system and screen resolution relative to all page views
identified in the study.

Search engine ranking is calculated using the percentage of visits made from search
engines on a given country’s sites included in gemiusTraffic. An average from the
percentage of visits made on the measured websites is calculated for each search
engine. The outcome is the position a search engine takes in the ranking.

A ranking of mobile devices that are used by persons connecting from Poland
with Polish web sites. The ranking is created on the basis of the website-averaged
percentage share of page views on sites participating in gemiusTraffic.

Do you CEE? METHODOLOGICAL NOTE


262

GLOSSARY

Real users – the number of individuals in a given month who visited a selected [1]
The conditions of choosing players presented
in section devoted to portals may vary slightly
web site at least once. This number represents the reach of a researched website depending on the official categorization
and shows the actual number of people – not computers or cookies, which are implemented in gemiusAudience study in given
country as well as on the market standards.
often understand as visitors – that visited the web site. The socio-demographic
profile of these people can be determined too. [2]The conditions of choosing players presented
in the section devoted to social-networking
services may vary slightly depending on
Page View – loading of a WWW document of a given internet web site. When the official categorization implemented in
an internet user views a web page, this generates a page view. The page view is gemiusAudience study in given country as well
as on the market standards.
recorded through a special tracking script that has been placed in the code of
the relevant web page.

Reach – the indicator is expressed as a percentage and constitutes the ratio of


the number of visitors (real users) who generated at least one page view on
the selected web site within the given time period, to the total number of internet
users within that time period.

Average Time Spent per Real User – the total time spent by the average real user
from the given target group on the selected web site or web sites.

Average Number of Page Views per Real User – the number of page views on
the selected web site generated by the average Visitor from the given target group
within a given time period.

Horizontal portal [1] – an internet portal site (not a group of owners) offering
a broad range of publisher generated content and services. Essentially, a horizontal
portal contains information and links to websites featuring diverse subjects,
contrary to a vertical portal, which is focused on a particular topic. Moreover,
a horizontal portal should provide access to an email service, as well as community
features such as: a forum, chat or social networking tools. The term “portal”
as used in the report, refers to the horizontal portal.

Social networking service [2] – is an online platform focused on building networks


connecting people, e.g. persons who share interests or are involved in similar
activities. A social network service essentially consists of a representation of each
user (profile), his/her social links, and a variety of additional services. Most social
network services provide means for users to interact with each other, such as
messengers or chats.

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263

ABOUT GEMIUS

Gemius - an international research agency, the leader and forerunner in the


field of research of the internet and on the internet in Europe. The Company
offers professional research solutions, analytical and advisory services, from
site-centric and user-centric studies to technologically-advanced tools for
studying internet user behaviour on chosen websites (gemiusTraffic), internet
user socio-demographic profiles (gemiusProfile), the quality of WWW page
usage (gemiusUsability) and the effectiveness of internet advertising campaigns
(gemiusEffect). Gemius also conducts research related to subjects submitted by
customers (gemiusAdHoc). Apart from the above mentioned research services,
Gemius offers a study on the behaviour of users who view online multimedia
content (gemiusStream) and a research tool for immediate measurement and
presentation of all clicks made by internet users on a website (gemiusHeatMap).
Gemius sets the standard for online audience and internet application
measurement (gemiusAudience) in almost half of all European countries.

Gemius, established in Poland in 1999, is active on over 20 markets in Europe


and the Middle East.

For more information, please see www.gemius.com

ABOUT IAB

IAB Europe exists to support and promote the growth of the European digital
and interactive marketing industry.

Representing 21 country members across Europe and over 5000 companies,


the Interactive Advertising Bureau (IAB) Europe is the trade association of
the European digital and interactive marketing industry. Supported by every
major advertiser, media group, agency, portal, technology and service provider,
the power of IAB Europe comes from its extensive membership.

IAB Europe exists to promote the growth of Europe’s interactive advertising


markets, to protect the interest of the industry, to regulate practices on the
market and to educate the stakeholders in the digital landscape. To achieve these
goals, IAB Europe coordinates activities across the region including public affairs,
benchmarking, research, setting standards and best practices.

The member countries are Austria, Belgium, Croatia, Denmark, Finland, France,
Germany, Greece, Hungary, Italy, Netherlands, Norway, Poland, Portugal, Romania,
Russia, Slovenia, Spain, Sweden, Switzerland, Turkey and the UK. Our corporate
members include Adobe, Alcatel-Lucent, BBC.com, comScore Europe,
Ernst & Young, Fox Interactive Media, Gemius, Goldbach Media Group, Google,
Hi-Media-AdLink, InSites Consulting, Koan, Microsoft Europe, Netlog, News
Corporation, Nugg.ad, Nielsen Online, Orange Advertising Network, Publicitas
Europe, Sonnenschein, Truvo, Turner/CNN and United Internet Media and zanox.

For more information, please see www.iabeurope.eu

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264

SATI Methodology

SATI Universe is composed of 5.203.000 persons represented by Romanian


population aged between 14 and 64 who live in urban areas and used the internet.

The methodology used for SATI was chosen by BRAT and belongs to the German
company Spring GmbH. It comprises several stages: traffic measurement,
collecting data necessary to define the audience and the profiles of the visitors,
a complex mathematical algorithm defining the persons visiting a website in
a given period of time. The key phases of the methodology are described below.

DATA COLLECTING

The data used to calculate the audience and the socio-demographic profiles of
the visitors are resulted by mixed methods of data collection, in an attempt to
take the best advantage of each method. The results of the traffic measurement
and of the online survey are combined in order to size the number of visitors of
a website:
• a technical measurement of each website’s traffic, providing essential data for
determining unique clients. A database will store each monthly set of Unique
Clients for all the websites measured in SATI,
• a survey is carried out on each website, by posting an invitation to take part
in the online survey and displaying an online questionnaire in order to get
information about the websites’ visitors, the persons who have already used
the computers/browsers assessed before,
• the data revealing the dimension of the universe and the structure used
to weigh the data collected through the online survey are measured by
SNA FOCUS - a face-to-face survey, carried out on a representative sample
for urban population aged 14-64 years in Romania.

TRAFFIC MEASUREMENT

The technical measurement of the traffic serves as a basis for audience sizing.
The Unique Clients measured by the traffic measurement system is the basic
information for further identification of single visitors. The Unique Clients are
the browsers/computers used by a visitor to see a particular website. The data
about the Unique Clients are obtained using cookies, as well as other combination
of variables. To reduce the risk of double measurement of a Unique Client due to
inaccurate identification (for instance due to cookie deletion,), the Unique Clients
obtained from the measurement are then filtered through a specific statistical
procedure, resulting a number of unique qualified clients.

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265

ONLINE SURVEY

The sample for the online research is randomly drawn out from the group of the
unique qualified clients on a monthly basis. If a user selected in the sample returns
to any of the websites in the study, an invitation to take part to the online survey is
sent to him/her.

A complex system of sample administration allows for displaying invitations to


complete the online questionnaire to the same single client on many different
websites, at different hours, so that an optimal response rate can be obtained.
The  esponses collected from that unique client will be then attributed to the
entire list of websites he/she visited during the research period.

A complex process of data-mining and transformation will compensate


the distortion occurred due to ‘heavy’ users and will also solve the multi-client
and ulti-user issues.

MAIN INDICATORS AND THEIR DEFINITIONS

Number of Visitors per week – the average number of visitors (persons,


not browsers) visiting a website per week in the measured period.

Number of Unique Clients – the number of Unique Clients visiting a website at


least once in the reporting time period, calculated on the basis of cookies or other
variables in case of a cookie-disabled browser (IP, user-agent, etc). A Unique Client
basically translates into a browser.

Number of Page Impressions – the number of pages of a website, displayed in


a browser at the request of a visitor.

Number of Visits – the number of series of one or more page impressions sent to
the visitor’s browser, as a result of a visitor’s request. A visit ends when the period
between 2 page impressions is longer than 30 minutes.

Do you CEE? SATI Methodology


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