Polish Internet Market 2010 and Outlook 2011
2010 is nearly over and it’s time to look back and summarize the main facts, trends of the prevailing year and give an outlook for the next year. What happened in the polish internet business and what are the main trends for 2011?
According to NASK already 2 million polish top level domains has been registered in total, which gives Poland the 5th position in Europe. Also the e-commerce sector and the online advertising market is becoming more and more important.
Sklepy24.pl is estimating around 10.000 online shops in Poland, the online ad spendings for Q3 raised with 24% in a YoY comparison (368 vs 296 mln PLN last year according to the IAB AdEx survey).
The biggest polish conference IAB Forum 2010 counted more than 1000 participants and there will be more polish online marketing conferences in 2011 than the years before.
Let’s start with some 2010 facts:
8,6 mln facebook.com users from Poland (according to Megapanel)
30k EUR for the gmail.pl domain on Allegro.pl
22,5 mln internet users in Poland (according to IWS)
130 mln EUR is the value of nasza-klasa.pl (according to techcrunch)
18% growth in online ad spendings according to IAB Poland
195 mln EUR online ad spending in the first 2 quarters of 2010 according to the IAB AdEx survey
It’s THE facebook year in Poland, nearly 4 millions new users (8,6 mln in total) within 10 month is making the local competitor nasza-klasa (still biggest polish network with 63 mln PLN income and 18,5 mln PLN profit in 2009) nervous big times. I was giving already insights about the facebook “invasion”, i.e. final market entry in Poland and the local competition some weeks ago. Globally FB has 500 million members in 207 countries, currently valued at 25 bilion dollars in comparison to €130 million value of the local nasza-klasa.
Also the vast majority of the decision makers will more likely put budgets into facebook than nasza-klasa, which underlines the strength of facebook as a marketing tool. New social media agencies launched and the existing ones adjusted their portfolio to the new trend coming into the market. There was a saying on the market, that if you’re not on Facebook, you’re not existing. Sounds a little bit misleading for me, as there is no alternative for Zuckerberg’s network yet.
The Groupon Phenomenon
Also one of the big trends in 2010 was to bring consumers from online to offline using “couponing”. The Samwer brother striked again by creating the biggest european Groupon clone Citideal (acquired by Groupon in May 2010, just 5 month after its launch). The Berlin based company penetrated the german market in the first step and started additional markets almost simultaneously.
It was not a big surprise, that the polish market fastly adopted citideal/groupon (in october 2010 2,3 mln users according to Megapanel). Also local clones have been launched in Poland, e.g. fastdeal.pl and recently gruper.pl. The latter is well funded by a polish internet pioneer – Marek Borzestowski – the founder of one of the biggest polish portals wp.pl.
Online Ad Spendings
According to the IAB AdEx survey the ad spendings (Q3 2010) are distributed mainly between display (44%) and SEM (30%). The overall ad spending growth rate of 18% is placing Poland on a top position within Europe and is showing the vitality and drive of the polish online marketing industry. The total ad spending for the first 3 quarters is 1,145 billion PLN so that the 1,5 billion PLN (376 mln EUR) level for 2010 should be surpassed by the end of the year.
Trends and Outlook 2011
The Facebook hype will be still very dominant as there will be additional add-ons coming into the market, e.g. FB places will be launched 2011 in Poland. Foursquare is already used by polish internet users but didn’t estabilsh itself as the platform of choice. Additionally social gaming like zynga’s farmville will have a positive impact on social networking. To be honest, I still cannot understand, why people should care about a virtual farm.
Yield Management and Real Time Bidding
Ad Operations are processes and systems that support the sale and delivery of online advertising. More specifically these are the workflow processes and software systems that are used to sell, input, serve, target and report on the performance of online ads. In my opinion yield management systems and real time bidding platforms will launche their services in Poland within the couple of months, which will have a positive impact on precise targeting and low ROI’s.
Crowdsourcing is an alternative solution to outsourcing. With the help of crowdsourcing problems are broadcast to an unknown group of solvers in the form of an open call for solutions. Users, i.e. the crowd – typically form into online communities, and the crowd submits solutions. This will be a new way for alternative problem solving using collective intelligence and the crowd. This is how for instance Reed Hastings made an open call to the developers all over the world to create a better entertainment recommendation algorithm for netflix and awarded the best one with $1 million.
There will be also more tablets (iPad II launching in Q1 2011), more e-books and more apps in 2011. There are still so many positive and negative opinions about the tablet devices, so that many hardware fans – including myself – are still waiting with a potential purchase.
Video technology is already everywhere throughout the internet but this is just the beginning for video advertising on the polish market. In the next year polish TV program streamings like ITI’s plejada will be penetrated more and more with video advertisement. VoD and services like Reed Hasting’s (Fortune’s 2010 Business Person of the Year) netflix might change the video consuming behavior. Last but not least video communication mixed with social networks might still have a big impact on brand marketing.