2008.01 Digital Landscape Poland 2008

Digital lanDscape: polanD
DIGITAL LANDSCAPE: POLAND

Polish
internet market accelerates
I edItIon, january 2008
online advertising v e-commerce v Biggest internet players
v Western investors v Market drivers and constraints


Table of ConTenTs

In brief........................................................................................................................................................................................................................................03

1. Poland at a glance .................................................................................................................................................................................... 04
1.1.Internet.penetration . ..................................................................................................................................................................... 04.
1.2.Internet.users..............................................................................................................................................................................................04.
1.3.Online.advertising..............................................................................................................................................................................04

2. Market overview: biggest players. .............................................................................................................................. 05
2.1.Advertising.bureaus.and.advertising.networks..................................................................................05.
2.2.Biggest.online.players....................................................................................................................................................................06.
2.3.Interactive.advertising.agencies...................................................................................................................................10

3. E-commerce.............................................................................................................................................................................................................12
3.1.Online.auction.platforms..........................................................................................................................................................12.
3.2.Online.shops..................................................................................................................................................................................................12.
3.3.Polish.online.shopper.....................................................................................................................................................................14.
3.4.Threats.and.concerns......................................................................................................................................................................18

4. Market trends in brief...........................................................................................................................................................................19
4.1.New.surge.of.foreign.investments............................................................................................................................19.
4.2.Going.public..................................................................................................................................................................................................21.
4.3.Investment.frenzy.................................................................................................................................................................................21.
4.4.Interesting.facts........................................................................................................................................................................................21

5. Getting started: setting up a company in Poland.............................................................................22
5.1.Types.of.business.activity.........................................................................................................................................................24.
5.2.Tax.and.inspections............................................................................................................................................................................24.
5.3.Competitive.landscape................................................................................................................................................................25

6. Views on Poland...............................................................................................................................................................................................26

7. About Internet Standard ...............................................................................................................................................................28


In brief
This.first.edition.of.Digital Landscape: Poland.report.is.the.most.comprehensive.study.prepared.by..
a.leading.online.magazine.Internet.Standard..It.gives.a.unique.overview.of.the.Polish.internet.
industry,.showing.major.market.players,.current.and.future.investment.plans,.and.online.adspend.
forecast..Covering.advertising,.e-commerce.as.well.as.ways.of.starting.a.business.in.Poland,.this.
report.is.an.indispensable.study.for.anyone.interested.in.finding.out.more.about.investment.
opportunities.in.the.country..Digital Landscape: Poland.gathers.investors.and.industry.leaders’.
comments.on.the.country’s.development,.providing.a.fresh.view.on.the.latest.issues..


1. Poland aT a glanCe

Poland,.member.of.NATO.(since.1999). broadband.connec-
and.the.European.Union.(since.2004),. tions.(above.144.kb/s).
has.a.population.of.about.38.million. in.October.2006.
people..Gross.domestic.product.per.
capita.in.Poland.was.estimated.to.be. Internet users
16,500.USD.in.2007..According.to.the. There.is.about.the.same.
European.Commision.the.level.of. number.of.male.
economic.growth.in.the.country.was. (50.8%).and.female.
forecast.to.reach.6.1%.in.2007. (49.2%).users..Young.
people.(15-24.years.
Warsaw.and.Cracow.are.two.main.cities. old).form.the.largest.
where.internet.companies.have.their. group.of.internet.users..
headquarters..More.and.more.online. Those.who.are.60.years.
business.appears.in.Wroclaw.(south- old.or.more.represent.
west.of.the.country).and.Gdansk.(north. only.2.1%.of.the.Polish.
part.of.the.country). internet.population.

Internet penetration Polish.users.are.
According.to.SMG/KRC.NetTrack. generally.well.edu-
research,.internet.penetration.in. cated..26.6%.of.them.
Poland.was.around.42%..That.means. have.university.degree,.
there.were.12.8.million.internet.users. 41%.-.have.completed.
(over.15.years.old)..Another.research. their.A.levels.
provider.Gemius/PBI.estimated.that.
there.was.in.fact.a.population.of.14.09. Over.two.thirds.of.Polish.
million.users.in.the.country.(May. users.surf.online.every.
2007). day.or.almost.every.day..
They.go.online.mostly.at.
Internet penetration rate home.(79.4%).
in Poland in Q2 2007 was
42% 64,8% ofday users go
Polish
more.than.5%.of.all.media.adspend.in.
the.country.
online every
Eurostat’s.latest.available.data.on. IAB.Polska.forecasts.that.in.2007.internet.
broadband.penetration.in.Europe.comes. adspend.reached.305.million.PLN.(84.5.
from.July.2006..At.that.point,.broadband. online advertising million.EUR).and.search.engine.marketing.
penetration.rate.in.Poland.was.only.3.9%. Interactive.Advertising.Bureau.Polska.(IAB. revenues.rose.up.to110.million.PLN.(30.5.
compared.with.16.5%.average.in.the. Polska).estimates.that.in.2006.internet. million.EUR)..According.to.these.estima-
European.Union..That.number.most. advertising.market.was.worth.215.million. tions.online.market.was.worth.415.million.
probably.increased.in.2007..Thanks.to. PLN.(60.million.EUR),.excluding.search. PLN.(around.115.million.EUR).in.2007.
bitstream.access.the.competition.on.the. adverstising..Unfortunately,.Google.does.
ISP.market.is.increasing..According.to. not.disclose.its.revenues,.which.makes. Polish internet advertising
Eurostat,.in.January.2007,.53%.of.Polish. the.process.of.estimating.the.value.of.the. market in 2007
companies.had.broadband.internet. market.quite.difficult..Nevertheless,.IAB. is estimated to be worth
accesss,.when.average.in.European.
Union.is.77%.
Polska.prompted.that.paid.search.
advertising.could.have.been.worth.60. 115 million eUR
million.PLN.(16.6.million.EUR).in.2006..
According.to.UKE.(Urząd.Kontroli. That.makes.a.total.market.value.of.275. Online.market.grows.dynamically.at.a.
Telekomunikacji.–.Telecommunication. million.PLN.(76.million.EUR),.which. pace.of.50%.per.year.and.it.is.the.fastest.
Ministry).there.were.1.7.million. means.that.internet.advertising.has. growing.sector.among.all.media.


2. MaRkeT oveRvIew: bIggesT PlayeRs

Google.is.the.most.popular.website.in. awarded.MediaMarketing.Best.Internet. ARBOmedia.Poland.was.founded.in.2002..
Poland.(it.is.visisted.by.77%.of.Polish.users. Sales.Department.Award.for.three.times. The.acquisition.of.one.of.their.rivals.–.
every.month)..The.second.most.popular. in.a.row..Currently.there.are.500.websites. Qnet.-.was.a.turning.point.in.company’s.
internet.destination.is.Onet.pl,.a.web. in.their.portfolio.. history.which.provided.them.with.a.
portal.owned.by.a.large.media.group.ITI. Ad.net.employs.28.people.. bigger.online.reach.than.the.main.web.
portals.had..In.2005.ARBOmedia.Poland.
Gazeta.pl,.owned.by.Agora,.is.the.most. ARBOmedia Polska introduced.its.own.product:.double.
popular.newspaper-based.website.with. ARBOmedia.Polska.is.one.of.the.biggest. billboards,.which.is.one.of.the.most.
a.monthly.coverage.of.around.42%. internet.advertising.networks.in.the. popular.online.ad.formats.in.Poland.now..
country..It.gathers.round.300.websites.
When.it.comes.to.the.numer.of.page. (with.a.reach.of.11.7.million.of.unique. BizOn Media.
views,.it.is.Allegro.pl.which.generates. users.according.to.Megapanel.PBI/ BizOn.media.works.as.a.business-
the.highest.numbers..Allegro.(an. Gemius.2007)..Their.portfolio.consists. focused.advertising.network.in.Poland.
auction.platform).is.owned.by.Tradus. mainly.of.entertainment,.music.and. specializing.in.targeting.entrepre-
(former.QXL.ricardo). games.websites.targeting.young. neurs.The.company.is.relatively.new.
internet.users..In.cooperation.with.one. and.was.founded.in.2006..It.has.a.
Fotka.pl.-.a.social.networking.and. of.the.global.online.advertising.networks. reach.of.2.6.million.users..They.gather.
dating.website.–.has.gained.a.lots.of. –.Oridian.-.ARBOmedia.Poland.facilitates. 45.high-profile.websites..BizOn.media.
popularity.recently.and.generates.more. ads.for.English-language.business,.sports. has.been.developing.its.direct.sales.
than.2.billion.page.views.per.month. and.youth.websites. department,.but.still.its.core.clients.

In.terms.of.time.spent.on.the.website,.
Google.pl.and.Onet.pl.lead.the.way.in.
the.rankings.

Polish.most.popular.instant.messenger.
is.Gadu-Gadu,.owned.by.Gadu-Gadu.
S.A..(a.company.listed.on.the.Warsaw.
Stock.Exchange)..Gadu-Gadu.is.used.by.
round.6.million.people.monthly.

advertising bureaus and
advertising networks
There.are.quite.a.few.advertising.
networks.and.advertising.bureaus.
operating.in.Poland...We.are.presenting.
some.of.them.

Ad.net.
Ad.net.was.one.of.the.first.Polish.internet.
advertising.networks,.established.in.
2000..It.is.a.part.of.Internet.Group.S.A..
holding..From.the.very.beginning.Ad.net.
was.focused.on.incorporating.new.
technologies.and.empowering.their.
technological.capabilities..After.being.
very.successful.in.Poland,.they.decided.to.
expand.their.business.in.Latvia,.Lithuania.
and.Estonia..They.claim.to.have.9.74%.
share.of.the.Polish.market..Ad.net.was.


are.the.biggest.Polish.media.houses.. advertising,.paid.content.services,. Allegro.pl / QXL Poland
Since.its.foundation,.over.a.year.ago,. email.and.hosting,.auction.platform,. Allegro.is.the.biggest.auction.platform.
the.company.has.launched.over.500. community.sites,.telecommunication. in.the.country.run.by.Polish.offices.of.
campaigns. services..Onet.pl.is.estimated.to.have. British.holding.Tradus.(former.QXL.
37%.of.total.market.share.in.Poland..It. ricardo).which.was.acquired.by.
IDMnet is.also.one.of.the.strongest.brands.in. Naspers,.a.South.African.media.
IDMnet.was.established.in.1997.and. the.country. company,.in.December.2007...For.the.
was.the.first.online.advertising.network. year.ended.31.march.2007.Tradus.
in.the.country..They.gather.over.140. Wirtualna Polska (WP) generated.36.43.million.GBP.revenues.
websites.and.are.able.to.reach.over.5.5. Wirtualna.Polska.is.the.second.biggest. (vast.majority.of.it.came.from.Eastern.
million.users.. and.the.oldest.web.portal.in.Poland,. Europe)..British.holding.owns.not.only.
part.of.Telekomunikacja.Polska/.France. Allegro.but.also.PayBack.(which.runs.
IDMnet.uses.DoubleClick.adservers.. Telecom.Group..It.provides.a.multime- Payback.pl,.otomoto.pl,.otodom.pl).and.
They.specialize.in.building.advertising. dia.and.telecommunication.platform. Ceneo.S.A..(which.runs.a.price.compari-
strategies.and.search.marketing. offering.news,.entertainment,.finance. son.site.Ceneo.pl).
campaigns. services,.blogs,.chatrooms,.e-business.
solutions.and.free.e-mail.. Interia.pl SA
biggest online players Interia.pl.runs.one.of.Poland’s.biggest.
There.are.thousands.of.internet.firms. In.2006.WP.launched.internet.TV.(wptv. web.portals..The.firm.was.established.
operating.in.Poland..We.decided.to. wp.pl).–.the.biggest.multimedia.project. in.1999.as.a.result.of.an.online.joint.
present.only.those.which.are.perceived. in.Polish.internet..In.2007.WP.started.to. initiative.of.IT.and.technology.
as.one.of.the.biggest.on.the.market. operate.as.MVNO.(Mobile.Virtual. producer.-.ComArch.S.A..-.and.a.radio.
and.which.investors.will.most.probably. Network.Operator)..WP’s.monthly. station.RMF.FM..In.December.2000.
hear.about.while..considering.their. average.reach.is.62%.(H1’07). Interia’s.stock.was..allowed.to.public.
expansion.in.Poland.

Google Polska
Google.was.founded.in.the.USA.in.1998.
and.developed.rapidly,.outpacing.top.
internet.companies.and.becoming.the.
world’s.most.popular.search.engine..
The.key.to.Google’s.success.is.quality.
and.relevance.of.information..Polish.
users.appreciate.Google.search.engine.
-.it.is.the.most.popular.website.in.the.
country..That.was.one.of.the.reasons.
why.the.company.decided.to.open.its.
office.in.Warsaw.in.January.2006..In.
2007.Google.established.a.RD.centre.
in.Krakow.and.an.innovation.centre.in.
Wroclaw.(Poland).

Grupa Onet.pl S.A.
Grupa.Onet.pl.runs.Poland’s.biggest.
web.portal.-.Onet.pl..and.also.provides.
various.media.and.communication.
services..Grupa.Onet.pl.is.part.of.the.
leading.Polish.media.group.–.Grupa.
TVN.(TVN.S.A.,.TVN.is.listed.on.Warsaw.
Stock.Exchange)...
Onet.pl.is.a.pioneer.in.the.income.
diversification.among.Polish.web.
portals..It.generates.revenues.from.


trading.and.since.February.2001.the. Agora S.A. (owner of Gazeta.pl). most.popular.tool.in.the.country.(even.
firm.is.listed.on.Warsaw.Stock.. Agora,.one.of.the.biggest.media. to.that.extend.that.user’s.ID.has.the.
Exchange..In.December.2007.Bauer. companies.in.Eastern.Europe,.owns.a. same.importance.as.a.telephone.
Media.Invest.GMBH.bought.the. web.portal.Gazeta.pl,..Gazeta. number.or.email.address)..Gadu.Gadu.
majority.of.Interia’s.shares,.taking. Wyborcza,.one.of.Poland’s.most. launched.social.networking.commu-
control.of.the.company. popular.dailies.and.Metro.-.a.free. nity.MojaGeneracja..pl,.Gadu.Radio,.
newspaper..Agora.Group.also.runs. VoIP.services.Gadu.naGłos,.microblog-
Internet.advertising.sector.is.the.main. AMS,.the.outdoor.advertising,.two.local. ging.Blip.pl.and.education.portal.
area.of.the.company’s.activity..The. radio.stations.Zlote.przeboje.and.Roxy. Nauka.pl..
rapid.growth.that.can.be.observed.in. FM,.a.cross.regional.radio.station.TOK.
that.sector.is.taking.place.mostly.at.the. FM.as.well.as.manages.13.magazines.. Gadu.Gadu.S.A..employes.round.one.
expense.of.other.media.existing.on.the. hundred.people..In.the.first.three.
market.. Agora.was.establshed.in.1989..Since. quarters.of.2007.Gadu-Gadu.S.A..
1999.it.has.been.listed.on.the.stock. generated.14.370.000.PLN.(3.98.million.
Interia.pl.is.the.third.biggest.internet. exchange.in.Warsaw.and.in.London. EUR).net.income.and.5.153.000.PLN.
portal.in.Poland.in.terms.of.reach. (1.42.million.EUR).net.profit..
Gazeta.pl.is.visited.by.5.2.million.users..
O2.pl sp. z o. o. Agora’s.two.thematic.vortals,.GazetaP- The.company.is.listed.on.Warsaw.Stock.
O2.pl,.established.in.1999,.is.an.owner. raca.pl.(recruitment.website).and. Exchange.[GGU]..In.December.2007.
of.o2.pl.web.portal,.which.offers.free. GazetaDom.pl.(real.estate.website).are. South.African.media.company.Naspers.
email.services.and.an.instant.messen- one.of.the.most.popular.websites.in. bought.the.majority.of.shares.of.Gadu.
ger.(Tlen.pl)..The.company.claims.to. their.categories..GazetaWyborcza.pl.is. Gadu.SA..
have.7.million.registered.email. one.of.the.largest.online.newspapers.in.
accounts.and.1.5.million.instant. Poland. Interaktywna sp. z o. o.
messenger.users..Tlen.pl.messenger. (owner of Fotka.pl)
and.Tlenofon.(VoIP.product).have.won. Gadu-Gadu S.A. Interaktywna.sp..z.o.o.,.established.in.
the.Gold.Computer.2005.competition. Established.in.2000,.Gadu–Gadu.S.A..is. February.2001,.runs.Fotka.pl.and.other.
organized.by.Computerworld..O2.pl.is. a.company.which.provides.telecommu- websites.including.auction.platform..
the.fourth.fastest.developing.technol- nication.and.communication.services. Fotka.pl.employs.36.people.in.three.
ogy.company.in.Central.Europe. as.well.as.multimedia.and.social. offices:.in.Warsaw,.Elblag.and.Gliwice..It.
according.to.the.2006.and.2007. networking.websites..Gadu–Gadu. is.the.biggest.community.website.in.
Deloitte.ranking. instant.messenger.is.regarded.as.the. Poland.with.5.5.million.registered.users..
The.company.broke-even.a.few.years.
ago..The.forecast.of.their.income.for.
2007.was.over.4.5.million.PLN..Accord-
ing.to.Alexa.com,.Fotka.pl.is.5th.
popular.website.in.Poland.and.86th.
worldwide.

IDG Poland S.A. (owner of IDG.pl,
Computerworld.pl, Pcworld.pl,
InternetStandard.pl, NetWorld.pl) IDG.
Poland.S.A..is.a.Polish.subsidiary.of.
American.publishing.office.International.
Data.Group..It.runs.IDG.pl.-.the.biggest.IT/
new.technologies.webportal.in.the.
country..IDG.pl.also.owns:.PcWorld.pl.–.
webportal.dedicated.to.PC.users..
InternetStandard.pl.–.leading.internet.
industry.magazine,.Gamestar.pl.-.
computer.games.website,.Computer-
world.pl.–.portal.dedicated.to.IT.special-
ist,.and.dozens.of.others..Internet.


TOP DIGITAL MEDIA AGENCIES IN POLAND
Fastbridge http://www.initiative.pl
Beyond.Interactive http://www.gobeyond.pl/
Starcom.Next http://www.next.starcom.com.pl/
ZED.Digital http://www.optimedia.com.pl/
MRM.Worldwide http://www.mrm.pl/
OMD.Digital http://www.omd.pl/
ACR http://www.acr.pl/
Source: Internet Standard

Standard,.part.of.IDG.Poland.S.A.is.also.a. Gemius S.A. independent.recruitment.sites.with.
popular.conference.organizer..Business. Gemius.S.A..is.the.largest.online.research. websites.from.60.different.countries.
conferences.attract.hundreds.of. agency.in.Central.and.Eastern.Europe..
businessmen.in.the.country. The.company.has.been.providing.online. Grupa.Pracuj.employs.190.people.
market.analysis.since.1999..In.2004,. working.in.the.central.office.in.Warsaw.
IDG.Poland.S.A..also.publishes.B2B.IT. Gemius.started.operating.in.Czech. and.in.regional.offices.located.in.
magazines.(CMO,.CXO,.CIO,.NetWorld,. Republic.after.wining.a.tender.for. Bydgoszcz,.Gliwice,.Krakow,.Lodz,.
Computerworld).and.B2C.magazines. internet.audience.measurement. Poznan,.Sopot.and.Wroclaw..In.2007.
(PC.World.Komputer,.Computerworld,. services..Later.Gemius.continued.its. Grupa.Pracuj.was.recognized.as.the.
Kino.Domowe.Magazyn.DVD).. expantion.in.Central.and.Eastern.Europe. twelfth.fastest.growing.IT.company.in.
launching.its.branches.in.Slovakia,. Central.and.Eastern.Europe,.and.one.
IDG.pl.Group.is.visited.by.3.million. Hungary,.Ukraine,.Lithuania,.Latvia,. of.the.500.fastest.growing.IT.compa-
users.monthly.what.makes.it.one.of.the. Estonia,.Romania,.Slovenia,.Croatia,.and. nies.in.Europe.
20.most.popular.destinations.among. Bulgaria..In.2006,.Gemius.entered.
Polish.internet.users. Russian,.Dannish.and.Austrian.markets. Money.pl
Money.pl,.established.in.1997,.is.one.of.
Travelplanet.pl Grupa Pracuj the.most.popular.Polish.financial.web.
Travelplanet.pl.is.a.countrywide. Grupa.Pracuj.runs.recruitment.and. portals.with.nearly.2.million.users.every.
internet.travel.agency.listed.on. education.websites.in.Poland.and. month..It.provides.news.and.commen-
Warsaw.Stock.Exchange..It.is.a. other.countries.in.CEE..(Polish.recruit- tary.on.finance,.law,.labour.market,.real.
member.of.the.Polish.Chamber.of. ment.site.Pracuj.pl.and.Ukrainian. estate,.business.and.politics..In.2006.
Tourism..The.Travelplanet.pl.Group. Rabota.ua,.Edu.pracuj.pl.targeting. Money.pl.generated.a.net.profit.of.
runs.also.Aero.pl..(airplane.tickets. specialists.and.Edulandia.pl.targeting. nearly.1.3.million.PLN.(360.thousand.
provider),.Hotele24.pl.(hotel.booking. students)..Grupa.Pracuj.has.also. EUR);.with.revenue.of.11.million.PLN.(3.
provider).and.TravelPass.Polska.(a. organized.Virtual.Job.Fair.and.Virtual. million.EUR),.which.means.that.during.
firm.distributing.Travelplanet.pl. Education.Fair.it.is.a.founding.member. five.years.(2001-2005).portal’s.revenue.
vouchers).. of.The.Network,.the.largest.alliance.of. increased.by.1428%..Money.pl.was.on.
the.7th.position.in.the.ranking.of.the.
most.dynamically.developing.compa-
nies.in.the.Central.Europe.(“Technology.
Fast.50”.by.Deloitte)..

In.2006,.a.German.publishing.house.
Handelsblatt.(Verlagsgruppe.Han-
delsblatt),.member.of.Georg.von.
Holtzbrinck.media.group.became.
Money.pl’s.strategic.investor.

Currently,.the.company.employs.over.60.
people..It’s.based.in.Wroclaw,.but.part.of.
the.team.works.in.Warsaw.as.well...


Bankier.pl S.A. tion.on.personal.funds,.investing,. calculators.and.comparisons.of.
Bankier.pl.S.A..is.one.of.the.leading. capital.markets.and.financial. financial.products.offered.by.nearly.
media.companies.focused.on.finanse. products..Bankier.pl.gives.its.users. 50.financial.companies.
sector..It.runs.Bankier.pl,.a.web. an.access.to.a.current.stock.ex-
portal.providing.financial.informa- change.quotes,.experts.analysis,. The.Bankier.pl.Group.owns.six.web.
portals:.Bankier.pl,.Twoja-Firma.pl,.
PIT.pl,.VAT.pl,.PRNews.pl.and.
TOP POLISh INTERACTIVE AGENCIES
Mojeauto.pl.(with1.73.million.
NAME WEB ADDRESS unique.users)..
180.Heartbeats http://www.180heartbeats.pl/
Since.June.2006.Bankier.pl.S.A..has.
Adv.pl http://www.adv.pl/ been.listed..on.the.Warsaw.Stock..
Ars.Thanea. http://www.arsthanea.com/ Exchange.
Artegence. http://www.artegence.com
Grono.net
BeeStudio. http://www.beestudio.pl/ Grono.net.is.an.invitation-only.
Byss. http://www.byss.pl community.service.which.gathers.
groups.of.friends.and.families.(over.1.3.
Click5. http://www.click5.pl
million.registered.users)..Users.can.
Conecto. http://www.conecto.pl/ load.pictures.or.video.onto.their.
Cookie. http://www.cookie.pl/ profiles.and.the.website.has.currently.
over.15.million.pictures..Grono.net.is.
Digital.One. http://www.digitalone.pl/ available.in.Polish,.English,.Spanish,.
Emarketing.Experts. http://www.emarketingexperts.pl/ French,.German.and.Italian.language.
Engine. http://www.engine.pl/
versions.

FFCreation. http://www.ffcreation.com/ In.September.2007,.Intel.Capital.
Genero. http://www.genero.pl/ announced.its.plans.to.invest.in..
Grono.net..The.firm.employs.over..
Hint.Intermedia. http://www.hintintermedia.com/
60.people..
Honki. http://www.honki.pl/
HYPERmedia. http://www.hypermedia.pl/ MCI Management
MCI.Management.is.an.investment.
Insignia. http://www.insignia.pl/
group.managing.venture.capital.and.
Internet.Designers. http://www.id.pl/ private.equity.funds,.including:.
Isens. http://www.isens.pl/ TechVentures’99,.TechVentures’03,.
MCI.BioVentures,.MCI.EuroVentures.
Janmedia. http://www.janmedia.pl/
and.MCI.SuperVentures..It.has.been.
K2.Internet. http://www.k2.pl/ listed.on.the.Warsaw.Stock.Exchange.
Madonet. http://www.netizens.pl/ (with.present.market.cap.around.1.
billion.PLN).since.February.2001..MCI.
Max.Weber. http://www.maxweber.com/ Management.SA.specializes.in.
Media.Ambassador. http://www.mediaambassador.pl/ investments.within.the.region.of.
Central.and.Eastern.Europe..It.mainly.
MindChili. http://www.mindchili.pl/
invests.in.innovative.companies.
MRM.Worldwide. http://www.mrm.pl/ operating.in.the.area.of.internet,.
Netarena. http://www.netarena.pl/ mobile.telephony,.e-commerce,.
wireless.technologies,.software,.IT,..
Opcom. http://www.opcom.pl/
biotechnology/life.science.and.
OS3.Multimedia. http://www.os3.pl/ media.
Pro-Creation. http://www.pro-creation.pl/
Merlin.pl S.A..
Zjednoczenie.com. http://www.zjednoczenie.com.pl/
Merlin.pl.is.one.of.the.oldest.and.
Source: Interaktywnie.com, own biggest.online.shops.in.Poland.

0


(operating.since.April.1999)..It.mainly. group.acquired.the.majority.of. capital.firm.invested.a.few.million.PLN.
sells.books,.films,.music,.games,. NetSprint’s.shares. in.Nasza-klasa.
computer.programs.and.toys..It.is.
visited.by.round.100,000.users.every. SARE This.list.of.the.companies.mentioned.
day..In.2004.Merlin.pl.was.acclaimed. SARE.specializes.in.offering.e-mail. above.certainly.does.not.exhaust.the.
the.fastest.growing.company.in. marketing.services.(e-mail.cam- database.of.important.internet.firms.
Central.Europe.by.Deloitte..Touche.. paigns,.newsletters,.bulletins)..It. in.Poland..There.are.key.enterprises.in.
In.2005.Merlin.pl.launched.its.first. works.with.over.200.clients.(e.g.. the.region.like.Panorama.Firm.-.the.
offline.shop.. Media.Markt,.Siemens,.Kofola. biggest.yellow.pages.website.in.the.
Holding,.Danone,.Lexus,.G+J,.Bauer).. country,.epuls.–.one.of.the.most.popu-
NetSprint.pl Sp. z o. o. It.claims.to.be.the.largest.email. lar..social.networking.websites,.Empik.
NetSprint.pl.runs.a.search.engine..The. marketing.company.in.the.country. com.–.online.shop.or.NetPress.Digital.-.
company.was.established.in.2000.and. electronic.publications.distributor..
was.the.first.firm.which.introduced.the. Nasza-Klasa Sp. z o. o. Future.editions.of.this.report.will.
top-notch.search.engine.technology. Nasza-Klasa.pl.is.a.social.networking. include.more.top.business.initiatives.
to.Polish.market..NetSprints’s.key. website.(Polish.equivalent.of.Class- in.the.country.
customers.and.partners.include.both. mates)..It.was.launched.in.November.
Poland’s.major.horizontal.portals.as. 2006.and.within.a.few.months.gained. Interactive advertising
well.as.international.corporations..In. an.enormous.popularity..At.the.end.of. agencies
2004.the.company.was.ranked. 2007.it.had.more.than.6.million. There.are.more.than.1000.interactive.
seventh.in.Deloitte’s.Fast.50.ranking.of. registered.users,.and.became.one.of. agencies.in.Poland..We.present.just.a.
the.fastest-growing.high-tech. the.biggest.social.networking. few.top.ones,.according.to.Interakty-
companies.in.Central.Europe..In.2006. websites.in.the.country..In.September. wnie.com.ranking.(pleace.see.the.table.
Orkla.Media,.a.Norwegian.media. 2007.European.Founders,.a.venture. ”Top.Polish.Interactive.Agencies”)..


3. e-CoMMeRCe

According.to.the.estimates.released. for.three.quarters.of.2007.Allegro’s. Polish.eBay.managed.to.find.its.own.
by.Interactive.Advertising.Bureau. total.transaction.value.was.already. niche.–.thanks.to.the.integration.with.
Polska,.from.2001.to.2006.Polish.e- 10%.higher.than.total.results.for.2006.. foreign.platforms,.and.users.can.buy.
commerce.market.grew.by.over. Although.Allegro.pl.is.still.perceived.as. and.sell.goods.not.only.in.Poland.but.
4500%..The.highest.growth.rate.was. an.auction.platform,.almost.80%.of.all. also.in.28.other.countries.
seen.in.2000-2004.when.Polish.online. transactions.are.made.without.
retail.trade.sales.increased.by.200%. bidding;.the.reason.being.that.a. online shops
per.year..The.value.of.the.market.in. number.of.small.shops.(traditional.and. The.catalogue.run.by.Sklepy24.pl.
2006.was.estimated.to.be.5.billion. online.ones).treat.Allegro.pl.as.one.of. currently.contains.information.about.
PLN.(1.39.billion.EUR)..Online.auction. their.selling.channels..This.trend.will. 3,300.Polish.online.stores.divided.into.
platforms.generated.3.billion.PLN,. be.even.more.prominent.in.the.future. 12.groups..Home..Garden.makes.the.
online.shops.had.a.turnover.of.2. largest.category;.there.are.another.
billion.PLN.(500.million.EUR)..Accord- The.second.popular.auction.platform. four.significantly.big.groups:.Health..
ing.to.the.latest.estimations.pub- is.eBay,.which.appeared.on.the.Polish. Beauty,.Gifts..Flowers,.Electronics..
lished.by.Rzeczpospolita,.Polish. market.in.2005..In.2006.sales.reached. Photo.and.Computers..There.are.not.
online.shops.and.auction.platforms. 100.million.USD,.but.in.comparison. many.Polish.shops.selling.food,.only.a.
generated.8.billion.PLN.(2.22.billion. with.Allegro.pl.it.is.a.rather.poor.result.. few.from.77.listed.in.the.catalogue.
EUR).in.2007.

Polish.market.is.significantly.bigger.
than.Irish,.Portuguese.or.Greek..In.2006.
internet.sales.in.Austria.and.Denmark.
were.comparable.to.Poland’s..Swiss.
results.were.a.bit.lower.than.Polish.
revenues..eMarketer.expects.that.over.
the.next.five.years.European.e-
commerce.market.will.grow.at.an.
annual.growth.rate.of.25%..Central.and.
Eastern.European.countries,.especially.
Poland,.Czech.Republic.and.Russia.are.
expected.to.be.a.driving.force.of.that.
growth.at.the.beginning.of.the.next.
decade.

In.2006.Polish.online.sales.for.the.first.
time.exceeded.1%.of.total.domestic.
retail.trade.value..According.to.the.
Polish.Market.Review.(PMR).forecast,.
in.2009.this.proportion.may.go.up.by.
over.2%.

online auction platforms
Since.2005.about.60%.of.Polish.e-
commerce.sales.have.been.made.by.
transactions.performed.on.auction.
platforms...The.indisputable.online.
auction.leader.in.Poland.is.Allegro.pl.

In.2006.the.total.value.of.completed.
auctions.reached.2.5.billions.PLN.and..


The value of the Polish
e-commerce market in 2006
was estimated to be
8 billion PLN (2.22 billion EUR).


offer.fresh.food.(e.g..Frisco.pl)..Apart.
from.e-shops,.there.are.over.ten.
online.travel.agencies.(e.g..Travel-
planet.pl).and.financial.product.
brokers.(e.g..Bankier.pl).on.the.
market.

Not.many.Polish.online.stores.reveal.
their.financial.results,.but.it.is.very.
likely.that.those.who.decide.to.do.are.
the.leaders..In.2006.Merlin.pl.gener-
ated.the.biggest.revenues.in.Polish.
B2C.e-commerce..Merlin.pl.is.one.of.
the.oldest.online.shops,.which.sells.
mainly.books,.music,.toys.and.
electronics..Agito.pl.and.Hoopla.pl.
offer.electronics.and.home.appliances,.
Komputronik.pl.distributes.computers.
and.computer.parts.whereas.Oponeo.
pl.is.the.largest.Polish.online.store.
with.tyres.and.car.accessories.

Few.years.ago.virtual.shopping.arcades.
in.popular.web.portals.played.an.
important.role.in.Polish.e-commerce..
Now,.it.is.comparision.sites.that.have.
become.the.sources.of.information.about.
stores.offers.and.prices.for.the.growing.
number.of.Polish.internet.users...The.
most.popular.Polish.site.of.that.type.is.
Ceneo.pl,.which.had.almost.1.7.million.
unique.users.in.August.2007.(according.
to.Megapanel.PBI/Gemius)..Ceneo.pl.
currently.allows.to.compare..about..1.7.
million.offers.from.700.shops..The.second.
place.belongs.to.Nokaut.pl,..which.in.
spite.of.significantly.bigger.catalogue.(4.
million.offers.from.788.shops).is.a.bit.less.
popular.

Polish online shopper
According.to.data.published.by.Eurostat,.
in.2006.one.in.eight.Poles.and.one.in.
four.Polish.internet.users.did.their.online.
shopping.at.least.once..This.proportion.
places.Poland.on.17th..position.in.the.
European.ranking,.next.to.Slovenia,.
Czech.Republic.and.Slovakia.

A.slightly.higher.proportion.of.men.
then.women.do.shopping.online..The.
highest.discrepancy.occurs.in.the.age.
group.of.25-34.and.in.the.income.
groups.declaring.monthly.net.income.


In 2006 one in
eight Poles and
one in four Polish
internet users did
their online
shopping at
least once.


higher.than.2.000.PLN.(550.EUR).

SMG/KRC.report.shows.that.in.2006.
Polish.online.shoppers.bought.mainly.
books.and.clothes,.then.mobile.phones,.
computers.and.electronics..Compared.to.
2005,.in.2006.significantly.more.shoppers.
were.interested.in.car.accessories,.toys.
and.children’s.accessories.as.well.as.
airline,.train.and.bus.tickets.

Last.year.statistical.Pole.spent.47.
dollars.on.online.shopping,.more.
than.the.Greeks.or.the.Portuguese.
but.still.considerably.less.than.
average.citizens.in.Western.Europe..
Statistical.resident.of.Denmark.
(where.in.2006.e-commerce.sales.
was.comparable.with.Polish.e-
commerce.revenues).spent.seven.
times.more.in.online.stores.than.a.
Pole.

Polish.internet.users.pay.for.ordered.
products.mainly.in.cash.on.delivery..
Last.year.23%.of.orders.were.paid.by.
cards.and.7%.-.by.other.forms.of.
payment.(e.g..bank.transfers)..Poles.
rarely.use.cards.because.they.are.
concerned.about.security.or.do.not.
have.a.card.allowing.them.to.pay.over.
the.internet..In.2006.only.5.6.million.
from.24.million.existing.cards.could.be.
used.for.online.transactions.

Threats and concerns.
At.the.beginning.of.2007,.one.third.of.
respondents.(According.to.Gemius.
Survey).claimed.that.the.biggest.
problem.with.online.shopping.was.
long.delivery.time..One.sixth.had.
troubles.with.finding.products.and.one.
eighth.complained.about.poor.
customer.service..What.is.important,.it.
that.nearly.a.half.of.respondents.
experienced.no.problems.while.
shopping.online.

Polish e-commerce in brief
from 00 till 00 Polish e-commerce market grew by over 00%
The value of the market is estimated to be billion Pln in 00 (. billion eUr)
online auction platforms generated billion Pln in 00 (0 million eUr)


4. MaRkeT TRends In bRIef

Polish.internet.market.can.be.consi-. The.only.example.of.sudden.and. new surge of foreign
dered.a.mature.one.with.local.compa- undisputable.victory.is.Google.which. investments
nies.having.very.strong.market. became.the.most.popular.website.in. What.created.a.lot.of.stir.on.Polish.
positions..Although.foreign.big.players. Poland..What.is.interesting.is.to.observe. market.recently.were.two.announce-
start.their.operations.in.Poland.it.has. how.quickly.YouTube.com.is.climbing. ments:.both.MySpace.and.AOL.decided.
proved.difficult.for.them.to.outplace. up.through.the.popularity.rankings.(in. to.open.their.offices.in.Poland..At.the.
local.firms.in.a.short.period.of.time..A. August.2007.it.was.the.10th.most. moment.MySpace.is.in.the.process.of.
good.example.is.eBay,.which.entered. popular.online.destination.in.the. hiring.staff.for.marketing.and.content.
Polish.market.in.2005.and.is.still.behind. country)..It.is.worth.mentioning.that. management.departments..Interest-
local.auction.platform.-.Allegro.pl.. Polish.language.version.of.YouTube. ingly,.MySpace.is.perceived.as.one.of.a.
Allegro.is.the.4th.most.popular. was.one.of.the.first.European.editions. few.international.companies.which.
destination.in.Poland.whereas.eBay.pl. stands.real.chances.of.conquering.
remains.below.Top.20. Google.provides.most.of.its.services.in. Polish.market.
Poland,.including.Google.Docs.and.GMail..
There.is.a.similar.situation.with.instant. One.of.the.few.exceptions.is.Google. Other.international.social.networking.
messengers:.local.Gadu.Gadu.leads.the. News,.still.not.available.in.local.language. players.(Hi5.and.Bebo).are.trying.to.enter.
way.attracting.more.than.5.million. version..Global.gigiant.has.even.decided. Polish.market,.but.they.will.have.to.face.
users.per.month.whereas.Skype.still. to.open.a.Research..Development. very.strong.competition..There.are.
remains.second.best.with.3.million. Centre.which.is.based.in.Krakow.as.well.as. already.local.firms:.Fotka.pl.(with.more.
users. client.service.branch.in.Wroclaw. than.3.million.users.a.month),.Moja.


POLISh INTERNET MARKET ACCELERATES
Major changes in 2007
January • Gazeta.pl.(Agora.S.A.).acquires.Wrocek.pl.-.a.social.networking.site.about.Wroclaw.city.
February • Bankier.pl.S.A.,.owner.of.the.financial.web.portal,.acquires.MojeAuto.pl,.car.classifieds.website..
• Grupa.Onet.pl.S.A..acquires.blogging.site.Blog.pl.
March • Onet.pl.starts.to.sell.advertisements.on.its.portal.on.time.basis,.like.in.TV.
• Gadu-Gadu.S.A.,.owner.of.Polish.most.popular.instant.messanger.goes.public..
....(IPO.at.Polish.Stock.Exchange.-.Gielda.Papierow.Wartosciowych).
• Gemius.S.A.,.online.reasearch.firm.starts.its.operations.in.Romania.and.Bulgaria.
• Gadu-Gadu.S.A.,.starts.operating.in.Ukraine.
• German.Holtzbrinck.ventures.investment.fund.invests.in.Pixelate.Ventures,.owner.of.ePuls.pl.social.networking.site.
April • Onet.pl.launches.Zumi.pl.-.mapping.and.yellow.pages.site.
• MCI.venture.capital.investment.fund.invests.1.5.mln.PLN.in.Netpress.Digital,.e-press.distributor.
• TVN.Group.(one.of.the.biggest.private.TV.stations.in.Poland).launches.TVN24.pl,.news.site.run.by.more..
....than.40.editors.
• Pino.pl.(social.networking.portal).acquires.Blogi.pl.(blogging.website).
• Launch.of.Business.Angels.Seedfund..It.announces.to.spend.15-30.million.PLN.(4-8.million.EUR)..
....for.investing.in.start-ups.
May • Gadu-Gadu.S.A..acquires.Nauka.pl,.education.website.
• Merlin.pl,.one.of.the.biggest.internet.shops,.acquires.Presco.Media.owner.of.e-cyfrowe.pl,.online.shop.with.digital.cameras.
• Agora.announces.that.it.will.open.a.new.multimedia.newsroom.which.will.combine.exisiting.radio..
....and..internet.newsrooms.
June • Hoopla.pl.announces.that.it.will.debut.on.stock.exchange.(IPO).
• Onet.pl.launches.Onet.TV,.video.website.
• Google.launches.Polish.version.of.YouTube.
• Gadu-Gadu.S.A..acquires.Blip.pl,.micro-blogging.website.
• Onet.pl.S.A..announces.its.partnership.with.Opera.Software.
July • Research:.66%.of.Polish.internet.users.have.tried.shopping.online,.it’s.the.biggest.percentage.in.Eastern.Europe.
• Wykop.pl,.Polish.start-up.based.on.DIGG.com.idea,.receives.600,000.PLN.fund.(around.165,000.EUR).
• Launch.of.Polish.language.version.of.Bebo.com.
• Pracuj.pl,.biggest.recruitment.website.in.Poland,..launches.Profeo.pl,.social.networking.site.for.employees,..
....a.competitor.to.Goldenline.pl.
• Gadu-Gadu.S.A..acquires.Fora.pl,.a.discussion.website.
August • AOL.announces.that.it.will.open.Polish.version.of.its.portal.at.the.end.of.2007.
• Wirtualna.Polska,.second.biggest.internet.portal.becomes.a.Mobile.Virtual.Network.Operator.(MVNO).
• Gadu-Gadu.celebrates.its.7th.birthday.
• Agito.pl,.an.e-shop,.announces.its.plans.of.initial.stock.offering.(IPO).
September • Tomasz.Lis,.one.of.the.most.influential.Polish.TV.journalists,.quits.his.job.at.TV.station.and.starts.his.TV-show.online.
• Nasza-Klasa.pl.-.a.small.social.networking.service.with.a.very.dynamic.growth.rate,.receives.a.funding..
....of.a.few.million.PLN.
• Agora.(owner.of.Gazeta.pl)..acquiers.BlogFrog.pl.-.a.blogs.search.engine.
• Oponeo.pl.S.A.,.online.shop.with.tyres,.announces.that.it.will.debut.on.stock.exchange..
• o2.pl.Sp..z.o.o.,.one.of.Polish.main.web.portals.announces.that.it.will.launch.8.new.sites.by.the.end.of.2007.
October • MySpace.Poland.announces.that.it.will.start.operations.in.next.few.months..It.starts.recruiting.for.Polish.offices.
• G+J.company,.publisher.of.Polish.edition.of.„National.Geographic”.and.lifestyle.magazines.buys.Odyssei.pl,.
....travel.website.
• Wirtualna.Polska.introduces.behavioral.targeting.advertising.
• o2.pl.Sp..z.o.o..launches.Pinger.pl,.micro-blogging.service,.which.is.a.direct.competitor.to.Blip.pl,.owned.by..
....Gadu-Gadu.S.A.
• First.edition.of.Polish.MIXX.Awards.takes.place.(best.interactive.campaigns.are.awarded).
December • Bauer.Media.acquires.Interia.pl,.a.web.portal..Cost.of.acquistion.is.over.200.million.PLN.(55.million.EUR)
• Agora.becomes.an.exclusive.partner.of.Bebo’s.social.networking.website.in.Poland.
• AOL.starts.Polish.version.of.its.web.portal.-.AOL.pl
• Naspers,.South.African.media.company.acquires.Tradus.PLC,.owner.of.Allegro.pl.for.1.9.billion.USD..
....(about.1.3.billion.EUR).
• Naspers.buys.66.7%.shares.of.Gadu.Gadu,.Polish.most.popular.instant.messenger.


Generacja.(with.more.than.2.million.users. The.amount.of.venture-capital.invest-
a.month),.Nasza-Klasa.pl.(with.more.than. ments.and.acquisitions.has.not.been. Year 2007 should
6.million.registered.users),.Grono.net. seen.in.Polish.market.before..There.are.
(with.more.than.1.million.users.a.month),. many.traditional.firms.buying.small.and.
be called ”the year
ePuls.pl.(with.round.600.thousand.users. medium.size.internet.companies.to.gain. of investments” .
a.month),.which.are.doing.very.well.and. market.advantage.or.online.entrepre-
which.may.prove.very.difficult.to. neurs.widening.their.portfolios.and.
That amount of
compete.with. increasing.revenues.from.the.internet.. venture-capital
There.is.also.more.seed.fund.initiatives.
going public which.are.looking.for.promising.new.
investments and
Many.Polish.firms.made.public.offerings. starters.(see.more.in.a.table.listing.major. acquisitions has
in.2007..There.are.already.a.few.compa-
nies.which.have.been.listed.on.the.stock.
events.in.Poland.in.2007).
not been seen
exchange.in.Warsaw.for.many.years. Interesting facts: on Polish market
(Interia,.Agora)..Last.couple.of.years.has.
shown.that.more.and.more.firms.find.
•.. ain.web.portals.have.launched.
M
special.versions.of.their.websites.to.
before.
stock.exchange.a.very.tempting.way.for. cater.for.Polish.immigrants.who.are.
finding.new.resources.for.business. living.in.the.UK.and.in.Ireland •.. otka.pl,.a.local.social.networking.
F
development..Hence,.Bankier.pl.S.A.,. •.. olish.branch.of.MSN.has.only.one.
P website,.has.more.than.2.billion.page.
Gadu-Gadu.S.A.,.Travelplanet.S.A..and. employee views
many.more.firms.went.public. •.. ost.of.main.Polish.web.portals.
M •.. Bay.Poland.tried.two.times.to.
e
launched.their.own.society.gossip. outpace.local.competitor.-.Allegro.pl,.
Investment frenzy websites.(eg.o2.pl.started.Pudelek.pl,. but.with.no.success.so.far
It.goes.without.saying.that.year.2007. Gazeta.pl.runs.Plotek.pl.,.Interia.pl. •.. ll.of.the.main.web.portals.have.TV/
A
should.be.called.”a.year.of.investments”.. owns.Pomponik.pl) video.sites.


5. geTTIng sTaRTed: seTTIng UP a CoMPany In Poland

It.will.be.an.exaggaration.to.say.that. Poland.then.. moves.on.the.Polish.market..Internet.
Poland.has.become.a.titbit.for.investors. ”Many.Polish.users.who.had.already. gigants.like.Myspace.and.AOL.are.
from.all.industry.sectors.but.when.it. used.American.or.German.online. opening.their.offices.in.the.country.as.
comes.to.the.internet.it.goes.without. auction.websites.sent.inquiries.to.eBay. well.as.smaller.SEM.and.advertising.agen-
saying.that.the.online.market.attracts. head.quarters.asking.when.Polish. cies.from.the.CEE.region..What.drives.big.
more.and.more.foreign.capital..”The. platform.was.due.to.be.open,”.Alina. and.small.businesses.there.is.the.market.
perception.of.Poland.in.the.Western. Prawdzik,.country.manger.at.eBay. potential..and.a.relatively.quick.return.of.
world.has.changed,”.Chris.Modzelewski,. Poland.recalled..Poland.is.the.only. investment.
CEO.at.Emerging.Analysis.Corporation. country.in.Central.and.Eastern.Europe.
said..Modzelewski.is.an.owner.of.Eastern. that.eBay.is.present.in.but.conquering. Investing.in.Poland.has.become.much.
Europe’s.largest.online.media.research. this.market.proved.to.be.a.hard.nut.to. easier.and.much.frequent.recently..The.
agency.-.Gemius.-.and.was.one.of.the. crack..Although.eBay.claims.to.have. Polish.Information.and.Foreign.
early.investors.in.Polish.online.market.. done.a.thorough.market.research. Investment.Agency.(PAIiIZ).estimates.
„Poland.is.no.longer.viewed.as.the.‘wild. before.launching.a.Polish.platform,.it.is. that.all.foreign.direct.investment.in.
post-communist.east’.where.only.big. clear.that.initially.they.underestimated. the.country.in.2006.was.at.an.all.time.
risk-takers.go..Today,.Poland.is.an. the.sophistication.and.competetive- high.of.14.7.billion.USD.(this.amount.
extremely.attractive.location.for. ness.of.the.local.environment.. covers.all.industry.sectors)..A.few.
investment.with.the.largest.domestic. 2008.is.going.to.bring.more.interesting. important.factors.attract.foreign.
market.in.the.CEE.region.(excluding.
Russia),.tamed.inflation,.a.highly.
educated.workforce.and.an.economy.
growing.at.6.5%.annually,”.he.added.

There.are.quite.a.few.foreign.compa-
nies.operating.in.Poland.already..In.
1999.British.online.consumer.trading.
platform.Tradus.(former.QXL.ricardo.
plc).opened.a.Polish.branch.-.QXL.
Poland.-.which.runs.the.leading.online.
auction.platfom.Allegro.pl..In.the.last.
quarter.of.2006.all.the.Tradus.invest-
ments.in.CEE.brought.9.million.GBP.
revenues.(the.vast.majority.of.them.
came.from.Poland)..Tradus.employs.
around.350.people.in.Poland.whereas.
there.are.only.10.members.of.staff.in.
the.UK.and.they.are.mainly.focused.on.
controling.and.consolidating.financial.
data,.PR.and.fullfilling.stock.listing.
obligations.

At.the.end.of.the.90s..various.entrepre-
neurs.(mainly.local.companies).invested.
in.internet.firms.because.of.a.tempting.
perspective.of.lucrative.profits.during.the.
dot.com.boom..Another.big.surge.of.
investments.in.Poland.appeared.in.2005.
when.global.firms.started.opening.their.
branches.in.CEE..Google.and.eBay.were.
one.of.the.major.firms.which.settled.in.


capital.to.Poland:.market.size,.rela- the.procedures.should.be.shorter,.easier. partnership.(spółka.jawna),.limited.
tively.low.employment.costs,.econom- and.friendlier.like.in.many.other.EU. partnership.(spółka.komandytowa),.
ic.growth.and.the.availability.of. countries. limited.joint-stock.partnership.(spółka.
human.resources.. komandytowo-akcyjna),.professional.
”Registering.a.joint-stock.company. partnership.(spółka.partnerska),.limited.
Types of business activity (‘spolka.akcyjna’).in.Poland.was.not.a. liability.company.(spółka.z.ograniczoną.
The.process.of.opening.a.branch.in. problem.per.se..However,.it.is.impor- odpowiedzialnością),.joint-stock.
Poland.has.been.modernised.since. tant.to.remember.that.the.process.is. company.(spółka.akcyjna),.branch.office.
Poland.entered.the.EU..In.August.2004. much.more.difficult.than.in.the.United. (oddział),.representative.office.(przed-
The.Economic.Freedom.Act.was. States..In.America.I.can.register.a. stawicielstwo).or.just.simply.an.entry.in.
introduced.which.made.the.process.of. company.in.less.than.24.hours.over.the. the.business.activity.register.(wpis.do.
setting.up.a.business.easier.(thanks.to. internet..In.Poland,.the.process.takes.at. ewidencji.działalności.gospodarczej).
cutting.down.the.number.of.documents. least.one.month..But.if.one.is.under-
required)..However,.it.is.still.far.from. standing.of.this.fact,.and.has.a.good. Jarosław.Chałas,.managing.partner.at.
ideal. attorney.to.handle.the.formalities,.it.is. Chałas.and.Wspólnicy.chambers.
no.more.or.less.difficult.than.register- prepared.a.useful.investor’s.guide.for.
Nigel.Adams,.managing.director.at.Nigel. ing.a.company.in.any.other.country”,. The.Polish.Information.and.Foreign.
Adams..Company.Ltd.who.has.been. Chris.Modzelewski.explained. Investment.Agency.(the.document.
working.with.Poland.since.1972.as.a. There.are.initiatives.to.shorten.the. which.gives.a.clear.overview.of.the.legal.
governmental.advisor.knows.perfectly. process.of.registering.a.firm.in.the. procedures.and.provides.some.
well.that.starting.a.business.in.Poland. country..The.Polish.Information.and. recommendations.is.available.here:.
means.going.through.a.lot.of.paper- Foreign.Investment.Agency.reveals. http://www.paiz.gov.pl/index/
work..What.one.has.to.be.prepared.for.is. that.a.system.which.will.handle. ?id=4f8bc5ac1dc2b49434efe9e72f183
a.large.number.of.documents.required. submitting.online.applications.should. de8)..According.to.Chałas.and.Wspóln-
which.need.to.be.signed.and.stamped.. be.available.by.the.end.of.2008..It. icy,.the.best.choice.for.large.firms.which.
”Most.British.directors.and.managers. should.definitely.speed.up.the. plan.to.operate.in.Poland.is.to.set.up.a.
feel.that.the.amount.of.red.tape.in. registration.process. limited.liability.company.or.joint-stock.
Poland.hampers.their.companies’. company.(there.is.an.entry.fee.of.1000.
efficiency.and.leads.to.extra.costs,”.Nigel. Investors.who.plan.to.start.a.business.in. PLN.(277.EUR).and.a.requirement.of.
Adams.said..Arjan.Bakker,.a.Dutch. Poland.are.provided.with.a.wide.choice. 50,000.PLN.(13850.EUR).initial.capital.
businessman.who.runs.Polish.offices.of. of.forms.of.business.activity:.civil. contribution.if.one.is.interested.in.
Allegro.shares.this.view..In.his.opinion,. partnership.(spółka.cywilna),.registered. opening.a.limited.liability.company.or.a.
500,000.PLN.(138500.EUR).contribution.
for.a.joint-stock.company)..Those.who.
would.prefer.to.limit.operation.costs.
should.definitely.consider.starting.a.
branch.or.a.representative.office.

Tax rates and inspections
All.entrepreneurs.need.to.apply.for.their.
NIP.(taxpayer.identification.number).
and.REGON.(statistical.number)..Another.
important.step.is.to.register.with.the.
Social.Insurance.Office.(ZUS)..
Each.firm.is.obliged.to.pay.value.added.
tax.(VAT).as.well.as.corporate.income.
tax.(CIT)..CIT.has.gone.through.a.lot.of.
changes.throughout.the.years,.
dropping.its.value.from.27%.to19%..All.
taxpayers.have.to.submit.a.monthly.tax.
return.form.to.the.tax.office..Apart.from.
the.monthly.reports.each.firm.has.to.
send.a.final.tax.settlement.by.the.end.
of.March.each.year.


Smaller.entrepreneurs.can.take.adventage.of.„tax.
credit”.which.means.that.they.are.entitled.to.income.
tax.deferral.during.their.first.tax.year..What.is.also.
tempting.is.a.relief.from.submitting.tax.returns.
during.the.same.period.of.time..

From.time.to.time.entrepreneurs.may.expect.
inspectors.to.come.to.their.firms..By.law.authorti-
ties.cannot.carry.out.more.than.one.inspection.at.
the.same.time.in.the.same.business..Such.visits.are.
limited.–.inspectors.cannot.stay.longer.than.four.
weeks.if.they.examine.smaller.or.medium.size.firms;.
inspections.in.larger.companies.are.limited.to.eight.
weeks.

Competitive landscape
Polish.online.market.has.developed.organically.
without.the.presence.of.Yahoo!,.AOL.or.MSN.in.its.
early.years..Although.global.online.gigants.like.
Google.or.eBay.have.started.operating.in.the.
country.not.long.time.ago.it.was.not.as.easy.for.
them.as.one.may.think.to.gain.high.market.
positions..„The.most.dangerous.misstep.that.
investors.may.take.is.underestimating.Polish.local.
competitors,.or.(even.more.dangerously).underesti-
mating.the.sophistication.of.the.Polish.consumer,”.
Chris.Modzelewski.warned..Many.western.firms.
forget.that.Polish.users.have.access.to.the.same.
products.or.services.as.westerners..

Many.investors.confirm.that.competitive.landscape.
makes.entering.Poland.just.as.difficult.as.entering.
any.other.foreign.market.in.Western.Europe..„Like.
any.country.in.Western.Europe.or.Asia,.entering.
Poland.demands.creative.strategies.to.realize.the.
country’s.potential,”.Modzelewski.added.

Alina.Prawdzik.who.runs.Polish.offices.of.eBay.
knows.from.experience.that.users.expect.even.
more.from.foreign.firms.than.from.local.ones..
„Satisfying.Polish.consumers.is.possible,.but.it’s.not.
an.easy.task,”.Prawdzik.stressed..That.is.why.it’s.best.
to.dig.as.much.information.as.possible.about.local.
competitors.before.facing.them.directly.

investment projects in central eastern europe were particularly labour intensive.
While central and eastern europe attracted only % of investment projects, they ben-
efited from % of the new jobs created by foreign investors.
This represented an average of jobs per project, compared with jobs per project in
Western europe. Poland was the largest creator of fDi jobs, with almost % of the total.
eUroPeAn ATTrAcTiVeness sUrVeY, 00 bY ernsT YoUnG


6. vIews on Poland

Nigel Adams portals,.current,.well.developed.e-commerce.and.social.
Managing Director at Nigel Adams Company media.environment.are.all.signs.of.a.healthy.online.
Ltd, Visiting Lecturer at University of Buckingham, market..
Great Britan
There.are.a.lot.of.advantages.for.investors.in.the.CEE.
I.have.been.working.with.Poland.since.1972.and.lived. region.and.I.cannot.see.any.major.constraints.of.its.
in.the.country.from.1993.until.2002.as.a.British.Govern- development..The.language.fragmentation.of.the.CEE.
ment.“Know.How.Fund”.Management.Adviser,.so.I.have. countries.can.be.an.issue.and.can.make.it.difficult..
seen.many,.many.changes..I.find.the.country.fascinat- to.decide.to.target.the.region.at.large.with.local.
ing.to.work.in.and.despite.many.years.of.experience,.I. approach....
always.tell.my.clients.that.they.should.“Expect.the. .
unexpected!”.I.also.warn.my.client.companies.to.expect.
more.bureaucracy.and.more.regulations.than.in.a.
British.company..However,.I.also.tell.them.that,.on.the. Alain heureux,
whole,.in.Poland.they.will.find.very.hospitable.people. President of IAB Europe and IAB Belgium
who.are.great.to.work.with.
I.think.that.Polish.Interactive.Advertising.
Most.British.directors.and.managers.feel.that.the. Bureau.will.be.playing.a.role.of.a.“bridge”.
amount.of.“red.tape”.in.Poland.hampers.their.compa- between.Eastern.and.Western.Europe..Broadband.and.
nies’.efficiency.and.leads.to.extra.costs..In.addition,.the. technologies.are.not.always.there.yet.in.Poland.but.the.
need.to.report.and.pay.corporate.taxes,.and.VAT. creativity.certainly.is..The.European.IAB.Network.is.
monthly.is.an.extra.cost.they.think.should.be.removed.. gaining.more.value.thanks.to.Poland.
The.high.social.security.costs.and.the.very.strong.
employment.regulations.were.accepted.when.Polish. .
labour.rates.were.very.low,.but.I.think.that.as.Polish.
wages.are.increasing.significantly,.these.costs.and.
regulations.will.not.encourage.future.investment.in. Jan Jilek
Poland.by.British.companies. CSO at Xclaim.hr, Vice President at Interactive
Marketing Association, Croatia
On.final.point,.the.British.will.never.get.used.to.the.
need.for.all.documents.to.be.signed.and.“stamped”.. In.my.opinion.Poland.has.the.biggest.
This.is.just.not.necessary.in.Britain,.for.example.in. potential.in.CEE...
Britain.a.company.will.accept.a.commercial.order.over. I.believe.that.in.3.years’.time.Poland.will.jump.from.the.
the.phone.from.a.regular.customer,.by.accepting.an. regional.avarage.to.the.first.place.in.terms.of.the.online.
“Order.number”..No.contracts,.signatures.or.stamps.are. market.growth..The.only.thing.which.may.affect.its.
needed!. development.is.a.slowing.growth.rate.of.an.internet.
penetration..I.think.that.it.may.be.necessary.now.to.
. introduce.internet.to.the.rural.parts.of.the.country.to.
maintain.current.pace.of.growth.

Massimo Burgio .
Co-chairman of the Global Committee at SEMPO,
Founding Member of Sempo Europe, Sempo
Latino and a frequent speaker at SES, Italy/USA
Martin Kovac
Country Manger at ETARGET a.s., Slovakia
Poland.has.a.very.vibrant,.passionate.and.professional.
community.of.online.marketers..I.have.always.observed. With.the.population.of.almost.40.million.
Polish.market,.especially.search.engine.marketing. people.Poland.is.the.strongest.and.the.most.
sector.with.curiosity..The.early.presence.of.local.search. attractive.market.in.CEE..It.will.remain.the.biggest.player.in.
engines.used.by.millions.of.users,.as.well.as.local.web. the.region.having.overseas.money.shaping.its.development..


Chris Modzelewski Right.now.the.main.market.constraint.to.consider.is.the.
CEO at Emerging Analysis Corporation, owner of competition.in.the.labour.sector..Poland’s.educated.
Eastern Europe’s largest online media research workforce.and.especially.its.excellent.software.developers.
agency Gemius, one of the earily investors in are.highly.prized.by.high-technology.companies.from.
Polish online market, USA around.the.world..This.combined.with.strong.domestic.
macroeconomic.growth.is.driving.up.wages.and.competi-
My.first.investments.in.Poland.were.in.1999.when.I.established. tion.for.the.most.talented.workers..While.this.benefits.
Gemius.(Central..Eastern.Europe’s.leading.internet.research. Poland,.it.is.a.factor.that.investors.looking.at.Poland.have.
agency)..In.1999.Poland.was.a.much.stabler.location.for.invest- to.consider.carefully..Why.should.someone.build.a.
ment.than.in.1991.(when.I.first.visited.the.country),.but.I.still.saw.it. development.center.in.Poland.if.they’ll.have.to.recruit.
as.far.riskier.than.other.countries.I.could.invest.in..Today,.just.a. staff.(or.open.another.center).in.Ukraine.to.find.talented.
short.8.years.later,.Poland.is.an.entirely.different.country..The.rule. employees?
of.law.is.stronger.and.corruption.is.less.endemic.
The.other.constraint.to.consider.when.investing.in.Poland.
The.Polish.internet.market.has.a.tremendous.potential.. is.the.competitive.landscape..A.sophisticated.market.that.
With.close.to.40.million.people,.dropping.internet.access. evolved.organically.without.significant.infusions.of.
prices,.rapidly.growing.penetration.and.advertising. western.capital,.strategy.or.brands.has.a.very.different.
budgets.shifting.online,.Poland.is.one.of.the.most. competitive.landscape.than.some.westerners.might.
attractive.internet.markets.in.Europe.today..Its.„potential”. expect..This.is.not.so.much.as.a.„constraint”.as.it.is.a.
-.which.from.a.western.perspective.can.be.seen.as.the. warning.to.investors:.if.you’re.going.to.invest.in.Poland,.
ability.to.generate.both.domestic.profits.and.provide. do.your.homework.first...
lower.costs.-.is.attractive.to.investors,.but.they.should. .
enter.the.market.with.open.eyes.and.be.very.sensitive.to. .
the.local.reality. Eric Urdahl,
Head of International Business, AD Europe, Germany
From.the.perspective.of.western.internet.players,.
Poland.is.different..Poland’s.internet.industry.evolved. Polish.online.market.is.the.most.important.one.in.CEE.in.terms.
(at.least.in.its.early.years).in.its.own.local.reality..This. of.pan-European.online.campaigns.for.our.international.
shaped.the.competitive.landscape.very.differently.than. network.AD.Europe..We.have.been.experiencing.the.strongest.
what.many.western.players.would.expect.based.on. growth.rates.since.2005.
experiences.in.the.United.States.or.Western.Europe..
Western.investors.considering.how.to.tap.into.Poland’s. .Interest.in.Poland.has.grown.since.the.country.entered.the.
internet.potential.should.bear.this.fact.firmly.in.mind. EU..Poland.has.good.penetration.rates.and.broadband.cover-
and.approach.the.market.respectful.of.Poland’s.suc- age..This.fuels.its.online.advertising.market.and.also.attracts.
cesses.in.the.past.10.years. more.European.advertisers.


7. aboUT InTeRneT sTandaRd

about the authors:

Michał Grzechowiak
Michał.started.working.at.IDG.Poland.in.
2007..Previously,.as.a.journalist.of.
„Magazyn.Internet”,.a.Polish.magazine.for.
internet.users,.he.used.to.cover.many.
aspects.of.the.web..In.Internet.Standard.he.focuses.on.
writing.case.studies.on.Polish.online.firms.to.”E-biznes.
od.kuchni”.(”E-business.uncovered”).section.as.well.as.
providing.business.news..Apart.from.working.for.IDG.
Poland,.Michał.studies.economics.at.University.of.
Warsaw..
.
E-mail: Michal_Grzechowiak@idg.com.pl

anna Meller
Anna.joined.IDG.Poland.team.in.2000..At.the.beginning.
of.her.career.she.worked.for.PC.World.Komputer,.
covering.stories.on.artificial.intelligence,.new.online.
trends.and.future.of.the.web..Later.(after.the.dot.com.
bubble.burst).she.moved.to.Internet.Standard,.where.
she.focused.on.the.business.aspects.of.the.internet..She.
helped.to.revive.the.online.business.community.
gathered.round.the.title..Anna.is.responsible.for.writing.
reports.and.news..She.is.also.involved.in.organizing.
Internet.Standard.businesss.conferences..Anna.studied.
Polish.and.English.literature.and.linguistics.at.Gdansk.
University.in.Poland..She.likes.jazz.music,.hiking.and.
reading.books...
.
Email: Anna_Meller@idg.com.pl

Production team:
Piotr Zalewski
Piotr.has.been.working.as.an.online.editor.
at.IDG.Poland.since.March.2006..He.mainly. COVER.
covers.new.trends.and.business.aspects.of. Grażyna.Stefek.
the.internet..Piotr.is.responsible.for. .
editorial.content.of.Internet.Standard..He.writes.news. DESIGN.
and.articles,.and.also.helps.with.organizing.confer- Anna.Karabon
ences..He.is.in.charge.of.the.development.of.the.new.
design.of.magazine’s.website..Piotr.studied.social. DTP.
psychology..He.is.interested.in.new.technologies,. Beata.Miętus
media.and.skiing..
. ChARTS.
Email: Piotr_Zalewski@idg.com.pl Adam.Sienkiel


ADVERTISING CSO,.Computerworld,.GamePro,.InfoWorld,.Macworld,.
Anna.Stando. Network.World,..Internet.Standard.and.PC.World..IDG’s.lead-
Email:.Anna_Stando@idg.com.pl. generation.service,.IDG.Connect,.matches.technology.
Tel..+48.22.321.78.00 companies.with.an.audience.of.engaged,.high-quality.IT.
professionals,.influencers,.and.decision.makers..
INTERNET STANDARD CONFERENCES
Agnieszka.Świtkowska. Each.month,.over.80.million.unique.visitors.visit.the.more.than.
Email:.Agnieszka_Switkowska@idg.com.pl 450.websites.of.IDG’s.online.network..To.ensure.that.IDG.
online.audiences.have.access.to.rapidly.updated.information,.
Internet standard IDG’s.online.network.is.supported.by.more.than.2,000.
InternetStandard.pl.is.a.leading.Polish.online.magazine. journalists.and.the.only.24-hour.global.technology.news.
published.by.International.Data.Group.Poland.S.A... organization,.the.IDG.News.Service,.which.reports.the.latest.
It.is.visited.by.more.than.200,000.users.monthly.(real.users,. technology.news.from.its.bureaus.around.the.world..IDG.has.
Megapanel.Gemius/PBI),.among.them.there.are.top.internet. built.the.broadest.network.of.technology.content.online.and.
industry.leaders,.managers,.directors,.advanced.web.users.. reaches.more.technology.buyers.than.any.other.media.
Internet.Standard.is.focused.on.business.and.social.aspects.of. company..
the.internet..Online.magazine.runs.its.Online.Expert.Forum.
and.business.conferences,.which.are.very.popular.in.the. IDG.produces.more.than.750.globally.branded.confer-
country. ences.and.events.in.55.countries..Industry.leading.
international.events.include.Macworld.Conference..Expo.
International data group and.LinuxWorld.Conference..Expo..IDG’s.LinuxWorld.
International.Data.Group.(IDG).is.the.world’s.leading.technol- events.are.now.found.in.nearly.20.countries.on.five.
ogy.media,.events,.and.research.company..IDG’s.online. continents..Leading.conferences.include.CIO.100,.DEMO.
network.includes.more.than.450.web.sites.spanning.business. and.IDC.Directions..IDG.produces.19.conferences.and.
technology,.consumer.technology,.digital.entertainment,.and. events.in.China.alone,.and.was.first.to.offer.expos.in.
video.games.worldwide..IDG.publishes.more.than.300. emerging.markets.throughout.Asia,.Eastern.Europe.and.
magazines.and.newspapers.in.85.countries.including.CIO,. Latin.America.

www.internetstandard.pl

Conferences DIGITAL LANDSCAPE: POLAND

INTERNET STANDARD
There is one standard – Internet Standard
In 2007 Internet Standard organized a few strategic, business-to-business conferences
which were met with great acclaim from internet and related industries.

• must attend internet industry annual event
• latest online research and business analysis
• new market trends
• online adspend
• new investments, mergers and acquisitions,
stock exchange listings

• best online marketing practice
CLIENTS 2.0 • new trends: Web 2.0, social
networking, behavioural targeting
FMCG • best FMCG case studies

• internet in media mix
• online ad spend
• advertising strategy
• best case studies

• new developments in e-commerce market
• consumer behaviour
• business models for e-commerce
• customer acquisition and retention
• online payment systems

ConferenCe SChedule for 2008 V best internet industry
conferences in the country
• future media • Clients 2.0
• searCh engine marketing • adstandard 2008 V exclusive analysis
standard 2008 • e-CommerCestandard V leading keynote speakers
• internet 2k8 2008 V brilliant networking opportunity

If you would like to get involved in Internet Standard Conferences project
0
or simply find out more about the coming events please contact
Agnieszka_Switkowska@idg.com.pl, www.internetstandard.pl

2008.01 Digital Landscape Poland 2008

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2008.01 Digital Landscape Poland 2008