Posts Tagged ‘ polish internet

Polish Online Advertising Market 2011 – Internet Standard AdStandard 2011 review

Internet Standard, part of the International Data Group (IDG) is the main player on the polish internet market as soon as it comes to the organization of conferences for the internet industry.

On march, 3-4 it was time for the yearly AdStandard conference. This year the conference took place in the Businessman Institute, an amazing location in the southern part of Warsaw. It’s the most important conference for the polish internet industry in the 1st quarter of the year. This year, the conference was counting more than 230 attendees in comparison to 190 last year. These figures are showing a positive trend and the importance of the internet industry in the marketing portfolio.

Marc Zuckerberg at AdStandard2011 in Warsaw

This posting is a review of the AdStandard 2011 conference for those, who couldn’t attend this year. Let’s start with the probably most important number of the 1st conference day, presented by Piotr Kowalczyk, President IAB Poland:

1578 mln PLN – Online ad spendings for 2010 (17% YoY growth rate) in Poland

To give you a more detailed overview about the ad spendings throughout the last years, please see the following numbers:

2007 – 743 mln PLN
2008 – 1216 mln PLN
2009 – 1373 mln PL

Total ad spending growth throughout all media channels in Poland is 320 mln PLN in comparison to the online ad spending growth with 194 mln PLN.

According to this numbers, the online industry is the main driver (60% of the overall growth) in the polish advertising market in comparison to the total ad spending growth rate across the media channels.

Real-time Bidding (RTB) and Retargeting/Remarketing was most definitelly the most innovative topic during the conference. Never before it was possible to buy impressions on user basis and in real-time. Thomas Mendrina, country manager Admeld, represented the SSP side (supply side platform) and myslef, managing director CEE sociomantic labs, the DSP side (1st european demand supply platform) of the new real-time bidding ecosystem. Fresh numbers from forrester research & admeld (Febr. 2011) have been presented:
$353 mln: value RTB market 2010 in the USA
$823 mln: value RTB market 2011 in the USA
50% of the audience buys will be done through RTB in 2015

With a year over year growth rate of over 100% and a state of the art technology, where the advertisers can reach 100% of their target group, real-time bidding is revolutionizing the display advertising!

Another interisting compilation about the online ad spendings per ad format, i.e. which channel is having the most attention of the budget owners:
45% – display
30% – SEM
17% – classified
6% – email
2% – others

Video advertisement was also one of the topics during Kowalczyk’s presentation:
155% – video advertising YoY growth rate
2% of the whole online ad spendings through video advertising

Which industries spend the most budgets in the polish internet in 2010? Here is the resolution:
15% Telecommunication
12% Finance
11% Automotive
9% Media, DVD
7% e-Commerce

Also one interisting comparison between the online and offline ad spendings:
Offline budgets: 75% branding, 25% direct response
Online budgets: 30% branding, 70% direct response

According to a survey across online marketers and advertisers:
87% would like to get in touch with their target group more easily
90% would like to meassure the impact of advertising on sales

And here even more numbers:
45% of the internet users are searching for the product online after they saw it in a TV spot
20%: ad spendings growth rate in polish content networks for 2010 (according to Artur Banach, netsprint)
150: number of polish IAB members
700 mln PLN: turnover google Poland according to Puls Biznesu
52,4%: internet penetration in Poland

The distribution of display ads according to their ad size is also quite interisting. According to Gemius, the main ad size is the so called “double billboard” (750×200). In Poland the “billboard” (700×100) ad size is a standard ad size according to IAB Poland and is replacing the “leaderboard”, which we know from the western part of europe. Every martketer from the western part of europe should take this into consideration when creating creatives for the polish market.

Distribution according to the most important ad sizes:
30% – 750×200
10% – 300×250
9% – 750×100

In the following you will find the conference speaker list in alphabetical order:
Paulina Adamska, Gemius
Michał Banaszewski, FireFly Creation
Artur Banach, NetSprint
Przemysław Bartkowiak, Agora SA
Sacha Berlik, Mexad
Jan Buze, Wirtualna Polska
Wojciech Ciemniewski, Interaktywny Instytut Badań Rynkowych
Olgierd Cygan, Digital One
Lucjan Exner, Mobilvi
Natalia Hatalska, Hatalska.com
Artur Janik, ClickAd
Jacek Karolak, Starcom MediaVest
Piotr Kowalczyk, IAB Polska
Michal Kreczmar, Agora
Thomas Mendrina, Admeld
Marcin Michalski, NetSales.pl
Joanna Pawlak, Wirtualna Polska
Przemysław Pawlak, Adv.pl
Marlena Przybyszewska, Digital One
Michał Rafa, FireFly Creation
Piotr Ruszak, Starcom MediaVest
Michał Rutkowski, Tribal DDB
Jarosław Rzepecki, Hypermedia Isobar
Tomasz Samul, Mobilvi
Michał Siejak, NuOrder Group
Marcin Skowroński, Grupa Onet.pl
Dariusz Sokołowski, Internet Standard
Agnieszka Świtkowska, Internet Standard
Maciej Wyszyński, sociomantic labs

Internet Poland 2010 – Facts, Trends and an Outlook into 2011

Polish Internet Market 2010 and Outlook 2011

warsaw - copyright mac-foto.com

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

Social Networks

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

Networks

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

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.

Tablets

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

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.

Maciej Wyszynski