‘Do you CEE?’ report prepared by Gemius is the key publication for all industry experts in the region. Between 2010 and 2011 edition, International Marketing Director, Marta Klepka presents updated landscape of the internet in CEE. Which are the key countries for the industry in 2011? What kind of characteristic changes & reshuffles have been observed during the past year? What kind of knowledge base does a potential investor need not only to enter but also to conquer a new market? Use the set of internet best practices & business intelligence solutions to grow your business online
1. Do You CEE?
The internet and
online advertising
market in Central
and Eastern
Europe.
MARTA KLEPKA
Sofia, 26.10.2011
2. DO YOU CEE
The internet and online advertising market in Central and Eastern Europe
• a global company and the no. 1 choice in EMEA, provides consultancy and
expertise on consumer behaviour in the digital world
• ‘one stop shop’ for everyone who needs to measure the website, plan and
deliver effective online campaigns or use the internet as a communication
channel
About us
3. DO YOU CEE
The internet and online advertising market in Central and Eastern Europe
JIC Standard: Poland, Czech
Republic, Slovakia, Hungary,
Slovenia, Turkey, Israel,
Denmark, Ukraine, Belarus.
De facto currency: Lithuania,
Latvia, Estonia, Bulgaria, Bosnia,
Croatia
Start-up: Russia, Serbia, MENA
(UAE, KSI, Egypt, Lebanon,
Jordan, Syria, Kuwait, Morocco,
Tunisia)
Gemius as the currency in online measurement
4. DO YOU CEE
The internet and online advertising market in Central and Eastern Europe
Do You CEE?
The internet and
online advertising
market in Central
and Eastern
Europe.
5. DO YOU CEE
The internet and online advertising market in Central and Eastern Europe
Size Potential Highlights
Adspends
Formats
Social
Mobile
Video
Size
6. Market size//
internet population in the CEE region (June 2011); 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:
gemusAudience; Turkey: IpsosKMG (data for July 2011); Russia: Gemius estimation based on FOM statistics/gemiusFusion Data; Estonia: gemiusAudience (data collected using TURU-UURINGUTE AS
research); Lithuania: gemiusAudience; Croatia: Gemius/Valicon; Belarus: gemiusAudience; Romania: Euromonitor; Bosnia: gemiusAudience; Serbia: www.internetworldstats.com (June 2010) [age groups –
Lithuania, Poland: 7+; Czech Rep.: 10+; Croatia, Turkey: 12+; Estonia, Latvia,Hungary: 15+; Ukraine: 16+ Russia: 18+; Slovenia: 10-75; Slovakia: 14-79;Bosnia: 15-65; Bulgaria: 15-69; Belarus: 15-74]
INTERNET POPULATION (mm internet users / 2011)
The largest pure CEE
markets:
Russia
(53.7 million internet
users)
Poland
(18.9 million internet
users)
Turkey
comes second
in this ranking
(24.5 million internet
users)
0
10
20
30
40
50
60
Millions
June 2010
June 2011
7. Market size//
INTERNET POPULATION(2010-2011 growth)
whole CEE
+16 million new
internet users
Ukraine= fastest
growing market:
44% increase
in the number
of internet users
internet population in the CEE region – growth (June 2010 – June 2011); source of data: 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/gemiusFusion Data;Estonia: gemiusAudience (data collected using TURU-UURINGUTE AS research); Lithuania:
gemiusAudience; Croatia: Gemius/Valicon; Belarus: gemiusAudience; Romania: Euromonitor; Bosnia: gemiusAudience; [age groups – Lithuania, Poland: 7+; Czech Rep.: 10+; Croatia, Turkey: 12+; Estonia,
Latvia, Hungary: 15+; Ukraine: 16+ Russia: 18+; Slovenia: 10-75; Slovakia: 14-79;Bosnia: 15-65; Bulgaria: 15-69; Belarus: 15-74]
0%
10%
20%
30%
40%
50%
9. Market size//
BROADBAND PENETRATION
Data source: Eurostat
0
5
10
15
20
25
30
35
40
45
Brodbandconnectionsper100inhabitants
Broadband penetration 2010
Only a few CEE markets reach
the EU average when it comes to
broadband penetration.
Some CEE markets are still much
worse in these terms than even
the worst Western markets.
2009 2010
10. DO YOU CEE
The internet and online advertising market in Central and Eastern Europe
Size Potential
Adspends
Formats
$
Social
Mobile
Video
Potential
Adspends
$
Highlights
11. Market potential//
ONLINE ADSPENDS (mm € / 2009-2010 change)
Russians, Poles
and Czechs spend
the biggest amount
of money on
internet advertising
Slovakia opens
the group of small
markets
Data source: online adpends in the CEE region (2009-2010);
source of data: IAB Europe, TNS LT, SPIR, ZenithOptimedia, Gemius. All countries except for Ukraine, Belarus and Serbia: gross values
€ 0
€ 100
€ 200
€ 300
€ 400
€ 500
€ 600
€ 700
€ 800
Millions
2009
2010
12. Market potential//
0
10
20
30
40
50
60
ONLINE ADSPENDS PER INTERNET USER
(€ / 2010)
Within the ranking of
online adspends per
user, the Czech
Republic is the
undisputed leader
the least money
per average user last
year was spent in
Serbia (2,04€)
Data source: online adpends per internet user in the CEE region (2010);
source of data: IAB Europe, TNS LT, SPIR, ZenithOptimedia, Gemius. All countries except Ukraine, Belarus and Serbia: gross values
13. Market potential//
ONLINE AS SHARE OF TOTAL
Data source: ZenithOptimedia Group, AEF July 2011
The share of online in
the total adspend in
CEE countries is
much lower than
in most countries of
Western Europe.
Still, it is comparable
or higher than in the
Mediterranean
markets, with Portugal
serving the best
example.
0%
5%
10%
15%
20%
25%
30%
35%
14. DO YOU CEE
The internet and online advertising market in Central and Eastern Europe
Size Potential
Adspends
Formats
$
Social
Mobile
Video
Potential
Formats
Highlights
17. Market potential//
Share of ad impressions by sector – Czech Rep.
gemiusAdMonitor
Source: gemiusDirectEffect 2011 H1
3 top industries are
almost the same in all
the measured
countries:
-Finance
-Telecommunications
- Automotive
-Only in Poland car
industry was overtook
by
Entertainment/Trade
and Personal Care/
Hygiene
29,2%
18,8%
10,8%
5,8%
5,6%
5,4%
4,9%
3,1%
2,3%
1,9%
1,5%
1,4%
1,2%
0,6%
0,1%
7,3%
Finance, Insurance, Brokerage
Telecommunications
Automotive
Clothing & Accessories
Travel, Tourism, Hotels & Restaurants
Food
Trade
Personal Care and Hygiene
Household Products
Pharmaceuticals
Beverages and Alcohol
Household Equipment, Furniture And Decorations
Computers and Audio Video
Real Estate
Leisure Time
Other
18. DO YOU CEE
The internet and online advertising market in Central and Eastern Europe
Size Potential Highlights
Adspends
Formats
Social
Mobile
Video
Highlights
Video
19. Market highlights//
At present, the
biggest part of the
current network
traffic is video
And still growing!
In Central and Eastern
Europe, Internet video
traffic will account for
47% of all consumer
Internet traffic in
2015, up from 27% in
2010.
Data source: Cisco VNI 2010
VIDEO ADSPENDS
20. Market highlights//
Scandinavian
countries have
seen the biggest
development when
it comes to online video
ads.
Nevertheless, Poland
and Slovakia -
typical CEE countries -
are not falling far
behind in terms of
online video market
size.
Data source: IAB Europe, AdEx 2010
VIDEO ADSPENDS
0% 100% 200% 300% 400% 500%
Norway
Sweden
Poland
Spain
UK
Video spend increase 2009-2010
0% 2% 4% 6% 8% 10%
Sweden
UK
Slovakia
Netherlands
Poland
Norway
Spain
Romania
Video spend as % of online display
21. DO YOU CEE
The internet and online advertising market in Central and Eastern Europe
Size Potential Highlight
s
Adspends
Formats
Social
Mobile
Video
Highlights
Mobile
22. Market highlights//
Globally, mobile data
traffic will increase
26 times between
2010 and 2015.
Mobile video traffic
will exceed 50
percent for the first
time in 2011.
Mobile network
connection speeds
doubled in 2010.
Source: Cisco, „Visual Networking Index – Global Mobile Data Traffic Forecast Update,
2010-2015” (February 2011).
Global mobile data traffic by type (petabytes per month)
Mobile internet: how big is it?
23. Market highlights//
CEE – share of page views generated by visitors using mobile devices and PC computers
Mobile internet: how big is it?
1,5%Hungary
Page views - mobile devices
2,10
%
Czech Republic 4,16
%
Slovakia
7,21
%
Denmark
1,96
%
Ukraine0,7%Bulgaria
Source of data: Gemius, gemiusTraffic (August 2011).
24. Market highlights//
0
5 000
10 000
15 000
2009 2010 2011 2012
Mobile
search
advertising
Mobile
display
advertisings
Mobile
message
advertising
Source: eMarketer (March 2008).
Total mobile
adspends (mm$)
2007 2,695
2008 4,586
2009 7,375
2010 11,179
2011 15,250
2012 19,149
Mobile internet advertising spending worldwide: which
formats? 2007-2012 (in millions)
25. Market highlights//
Source: Gemius, gemiusTraffic: Czech Republic, Bulgaria, Slovakia, Slovenia, Hungary, Poland, Russia, Ukraine
(26.09.2011– 02.10.2011).
CEE – top 5 mobile devices (models) by website-averaged percentage share of page views
generated on websites monitored by Gemius
21.1%
Apple iPad
13.9%
Apple iPhone
2.6% 2.2% 1.9%
SamsungGT-i9000
(GalaxyS)
SamsungGT-i9100
(GalaxySII)
Preferences of mobile internet users: devices
HTCDesire
26. Market highlights//
Source: Gemius, gemiusTraffic: Slovenia, Czech Republic, Slovakia, Poland, Russia, Ukraine, Bulgaria, Hungary
(January 2011-September 2011).
)
CEE – growth of average share of page views generated by iPad among all mobile page views
iPad – the big boost…
12.64%
13.37% 13.84% 14.90%
16.45%
17.60%
18.50%
19.69%
20.62%
0%
5%
10%
15%
20%
25%
01.2011 02.2011 03.2011 04.2011 05.2011 06.2011 07.2011 08.2011 09.2011
previous month ∆ (current month, previous month)
27. Market highlights//
The website-averaged percentage share of page views
generated from iPad and iPhone on the selected markets
0%
5%
10%
15%
20%
25%
30%
35%
40%
Apple iPad, Q3 2011
Apple iPhone, Q3 2011
Source: Gemius, gemiusTraffic, Hungary, Denmark, Czech Republic, Bulgaria, Poland, Russia, Slovenia,
Slovakia, Ukraine, Q3 2011.
28. DO YOU CEE
The internet and online advertising market in Central and Eastern Europe
Size Potential Highlights
Adspends
Formats
Social
Mobile
Video
Highlights
Social
29. Market highlights//
FACEBOOK USERS IN EUROPE (mm users / 2011)
Surprisingly, Turkey is
Facebook’s biggest
European market
Former East-block
markets still have
a growth potential
for Facebook but local
players remain strong.
Data source: www.socialbakers.com
0
5
10
15
20
25
30
35
April 2011
October 2011
30. Market highlights//
0
5
10
15
20
25
FACEBOOK USERS GROWTH IN THE LAST 6 MONTHS (%)
The Facebook’s
pace of growth is
by far stronger
in the east
than in the west.
In Russia
domestic social
networks prevail.
Data source: www.socialbakers.com
31. Market highlights//
SOCIAL NETWORKS - Poland
The Polish giant,
nk.pl, managed to
maintain a stable
position for a year.
On the other hand,
Facebookis rapidly
gaining popularity – in a
year it gained almost
50% users.
We will surely know the
winner in 2012.
Data source: Megapanel PBI/Gemius
0
2
4
6
8
10
12
14
MillionsRU
Poland - clash of the social titans
nk.pl Group
facebook.com
32. Market highlights//
Source of data: NetMonitor – SPIR/Mediaresearch/Gemius
In the Czech Republic,
the popularity of the
domestic social
networks is on a
decrease.
According to
Socialbakers,
Facebook gained more
than 200,000 Czech
users in 5 months and is
now reaching 3.5 mio.
users.
SOCIAL NETWORKS – Czech Republic
0,0
0,2
0,4
0,6
0,8
1,0
1,2
1,4
1,6
1,8
2,0
MillionsRU
Social networks in Czech Republic
blog.cz
lide.cz
spoluzaci.cz
idnes.cz-Rajce.net
libimseti.cz
33. Market highlights//
Data source: Gemius Hungary Kft. & Ipsos, gemius/Ipsos Audience
In Hungary,
Facebook
attracted more users
than Iwiw already in
September 2010
and has since then
gradually continued
to gain audience,
while Iwiwlost 20%
users in one year.
SOCIAL NETWORKS - Hungary
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
MillionsRU
Hungarian social giants' war
facebook.com
iwiw.hu
34. Market highlights//
GOOGLE+
• Cost to build Google+ - 585 million USD
• 500 employees engaged in the project
• 50 million users in 88 days
• Mark Zuckerberg is the most popular person on Google +
(almost 600,000 contacts)
Data source: Identyme.com
35. THANK YOU
Contact:Join us @:
Facebook.com/GemiusGroup
Twitter.com/Gemius
Slideshare.net/Gemius_com
YouTube.com/WwwGemiusCom
Marta Klepka
International Marketing Director
marta.klepka@gemius.com