Strategic report IAB Poland Internet 2007 Poland, Europe, The World

1. STRATEGIC REPORT IAB Poland
INTERNET 2007
POLAND • EUROPE • THE WORLD
ACCESS TO THE INTERNET ONLINE CONSUMERS INTERNET CONSUMPTION WWW SITES USAGE
ADVERTISING ONLINE E-COMMERCE MARKET INTERNET AS A SOURCE OF INFORMATION
ON PRODUCTS AND COMPANIES PUBLIC RELATIONS IN THE INTERNET ERA INTERNET MARKET RESEARCH
SPECIAL EXTRA
SEPTEMBER 2008

3. STRATEGIC REPORT IAB Poland
POLAND • EUROPE • THE WORLD
Edited by:
Dominik Kaznowski, Piotr Kowalczyk, Magdalena Rówińska, Jarosław Sobolewski
The cover features internet maps
(router saturation and connections between
routers) by Chris Harrison
(www.chrisharrison.net) created basing on data Authors:
collected within the framework of DIMES
project (www.netdimes.org) conducted Krzysztof Adamus, Artur Banach, Olgierd Cygan, Krzysztof Dębowski, Piotr Fiećko,
by Tel Aviv University.
Andrzej Garapich, Małgorzata Kaczmarczyk, Olga Kamińska, Dominik Kaznowski,
Piotr Kowalczyk, Małgorzata Lakowska, Maciej Ledzion, Anna Miotk, Iwona Połóg,
Michał Rapacki, Magdalena Rówińska, Rafał Szychowski, Jarosław Sobolewski,
Maciej Swoboda, Szymon Szmigiel, Dominik Wartecki
www.iabpolska.pl
From the Editor
W
e have the pleasure to present the first comprehensive and exhaustive
description of Polish Internet. IAB’s report „Internet 2007: Poland,
Europe, the World” is a continuation of four previous reports by that
company, enriched with one of key market research elements – a study on
advertising expenditure IAB AdEx made in partnership with
PricewaterhouseCoopers Polska.
In spite of numerous attempts aimed at estimating marketing budgets in the
Internet, it took us quite a long time to publish this study – the first one developed
in compliance with international standards.
The other significant element related to this year’s report is the fact that the
first people to read it will be subscribers of "Media & Marketing Polska".
This report is the first effect of our partnership with IAB Polska. We are positive
that results of our partnership will be noticeable in our magazines „Media
& Marketing Polska” and „I-biz”; in the result, our readers will be the best
informed players on the e-advertising market.
Juliusz Donajski
The Editor
© VFP Communications Sp. z o.o.
ul. Wał Miedzeszyński 630
03-994 Warszawa
tel.: 022 514 65 00
faks: 022 740 50 55
www.media.com.pl
Special extra Media & Marketing Polska, September 2008 3

4. Internet 2007: Strategic report by IAB Poland
Table of Contents
Chapter 1 . . . . . . . . . . . . . . . . . . . .12
Access to the Internet
Chapter 2 . . . . . . . . . . . . . . . . . . . .24
Online consumers
Chapter 3 . . . . . . . . . . . . . . . . . . . .34
Internet consumption
Chapter 4 . . . . . . . . . . . . . . . . . . . .38
WWW sites usage
Chapter 5 . . . . . . . . . . . . . . . . . . . .46
Advertising online
Chapter 6 . . . . . . . . . . . . . . . . . . . .62
E-commerce market
Chapter 7 . . . . . . . . . . . . . . . . . . . .68
Internet as a source of information
on products and companies
Chapter 8 . . . . . . . . . . . . . . . . . . . .72
Public relations in the Internet era
Chapter 9 . . . . . . . . . . . . . . . . . . . .76
Internet market research
4 Special extra Media & Marketing Polska, September 2008

6. Strategic Report by IAB Polska: Internet 2007
Dear Readers,
e have the pleasure to deliver to you the fifth of search engine marketing proved to be quite strong as well.
W Strategic Report by IAB Polska Internet 2007
– Poland, Europe, the World. We are glad that
it has been recognised as a credible and supportive source of
E-advertisements became a true alternative of newspaper ads
and gained the share of expenditure market typical for the best
developed countries of Western Europe.
information on the interactive market in Poland and worldwide E-mail marketing confirmed its efficiency and increased its
by representatives of the Internet market and marketing share in the market. The popularity of video contents was also
professionals. We are particularly pleased by the fact that this on the increase.
anniversary falls on the year which is one of the most
successful ones in Polish Internet sector. We are also proud of Editors of the Report
the fact that we can for the first time publish results of
advertising expenditure in the Internet. As the number of the members of the association grew this
2007 was a special year with respect to advertising year, the Managing Board of IAB decided to invite all interested
expenditure in the Internet sector, which is well illustrated by parties to work on this report. The report was developed by
results of the IAB AdEx 2007 study performed in partnership 20 experts from leading companies representing almost all
with PricewaterhouseCoopers and published herewith. In that branches of interactive marketing. This open character of the
year, the Internet medium was also appreciated by players key document marked with the logo of IAB Polska is a symbol
active at other media market segments. Many companies of changes which occurred in the organisation.
implemented their own Internet strategies. A noticeable trend
of seeking new employees and the shortage of experienced Internet Advertising
specialists were just two symptoms of the boom. Many Expenditure Study:
advertising agencies opened their interactive departments. TV IAB AdEx
and radio stations, alongside with newspaper publishers
implemented a number of Internet projects. Many large players The initiative to study Internet advertising expenditure, the
active on the Internet market changed their strategies and IAB AdEx study, will certainly become an important step in
began to launch topical sites not tied to a single brand. The the development of Polish interactive market. IAB’s partner,
marketing market in search engines strengthened and grew author of the methodology and the study author in Poland is
considerably. The share and development of e-mail marketing PricewaterhouseCoopers Polska Sp. z o.o. (PwC Polska). The
also looked promising. New markets of affiliate marketing and results of the 2007 study, published herein are the result of
advergaming began to develop; earlier they used to be too partnership between IAB Polska and PwC Polska. Study
narrow to function properly. The lifestyle and e-entertainment results presented below were based on data collected by PwC
markets simply exploded. One should also take into account Polska from 25 key players on the Polish market. Data
the spectacular appearance and development of community collection, segregation and analysis was performed by PwC
sites in media environment, involving a multitude of users and Polska, but they were not in any manner audited by PwC.
definitely causing a general increase in their number. A contract executed by IAB and PwC Polska envisages
Internet became an important part of media plans; the performing the IAB AdEx study every half of the year and a
number of units and positions in charge of internet marketing publication of annual results in an annual report on the
grew spectacularly among customers, especially when expenditure on advertising in Europe, made jointly by PwC
compared with previous years. Graphic advertising retained its and IAB Europe. An identical study has been conducted in
strong position on the market of advertising forms. The trend Great Britain for 9 years and became a market standard there.
6 Special extra Media & Marketing Polska, September 2008

7. Polish Yellow Pages on-line?
Yes! But only on www.pkt.pl!
pkt.pl search engine platform provides you with high quality Yellow Pages
information about business market in Poland. You can find there contacts
to companies, products and institutions as well as you can localize them on maps.
We offer you contacts to 1 million firms & institutions, over 2 600 maps
and the shopping platform with nearly 700 000 products and offers.
0 801 88 66 66
everything and in order www.pkt.pl

8. Strategic Report by IAB Polska: Internet 2007
Changes
at IAB Polska
2007 was a year of revolutionary changes in the operating style of the
Association of Internet Employers IAB Polska. It adopted a budget and employed
a Director General. In May, the Association opened its new offices, and soon
employed a staff of three persons. Internet-related companies appreciated
these changes and IAB membership increased from 13 companies at the stage
of transforming the Association into a sector union to 32 companies at the end
of 2007, including one new ordinary member which is TVP SA.
ACTIVITIES IN 2007
One of the first activities undertaken by IAB Polska in 2007 were recruitment of
employees and organisation of the work of the office which coordinates the implementation
of projects initiated by IAB Polska members. The increased number and activeness of the
members led to establishing working groups. The highest level of activity was achieved by
the group for search engine marketing, group for e-mail marketing and for video on the
Internet. IAB plans large events to be staged in 2008 in the result of the work performed
by these groups. Partnership with the Association of Advertising Agencies (Stowarzyszenie
Agencji Reklamowych) resulted in creating a document on the good practice on the
Internet advertisement market. The document defines the competences and responsibilities
of individual entities during advertising campaign, starting from client brief, including co-
operation with agencies and media houses and ending with broadcasting the campaign on
WWW sites. The office established active contacts with organisers of sector conferences
and ensured the participation of IAB Polska lecturers at Polish conferences (which included
special panels devoted to the Internet). We also organised training courses in partnership
with Digital Strategy Consulting of the United Kingdom. IAB Polska also actively
participated in the work of the Union of Associations – Advertising Council (Związek
Stowarzyszeń Rada Reklamy).
One of the key goals of the Union was to organise Forum IAB 2007 as the largest
event on the interactive market in Poland, with the motto of “Creation and Efficiency”.
Forum IAB 2007 was held in November at the Radisson Hotel in Warsaw. It had the
highest attendance of all conferences on interactive topics staged in Poland that year
(400 participants) and its special guests were President IAB Europe Alain Heureux and
Deputy President of Viacom Digital Solutions Andy Chen. Speeches by renowned Polish
lecturers evoke considerable interest of the guests. The gala event held after the
conference at M25 club was combined with the finals of advertising campaign
competition MIXX – a brand imported to Poland from IAB USA. The Grand Prix 2007 fell
to Opcom agency of Cracow.
8 Special extra Media & Marketing Polska, September 2008

9. Members of IAB Polska, May 2008
Company Address Phone, fax E-mail WWW
4people.pl Sp.j. ul. Staromiejska 12/2, tel.: 032 790 21 21 kontakt@4people.pl www.4people.pl
40-013 Katowice faks: 032 790 21 11
Ad.Net SA ul. Młynarska 42, tel.: 022 447 32 00 ludmila.krol@adnet.pl www.adnet.pl
01-171 Warszawa faks: 022 447 32 01
AdAction ul. Senatorska 13/15, tel.: 022 829 65 38 kontakt@adaction.pl www.adaction.pl
00-075 Warszawa faks: 022 829 65 55
Agora SA ul. Czerska 8/10, tel.: 022 555 44 44 sprzedaz@agora.pl www.gazeta.pl
00-732 Warszawa faks: 022 555 48 70
ARBOinteractive Polska ul. Altowa 2, tel.: 022 592 45 00 info@arbointeractive.pl www.arbointeractive.pl
02-386 Warszawa faks: 022 489 42 14
Ataxo Sp. z o.o. ul. Dąbrówki 10, tel.: 032 743 74 44 info@ataxo.com www.ataxo.pl
40-081 Katowice faks: 032 743 74 94
Bankier.pl SA ul. Koszykowa 54, tel.: 022 630 82 44 reklama@firma.bankier.pl www.bankier.pl
00-675 Warszawa faks: 022 630 85 83
Bluerank ul. Gdańska 80, tel.: 042 632 33 21 bluerank@bluerank.pl www.bluerank.pl
90-613 Łódź faks: 042 632 15 51
Cormedia Sp.j. ul. Bonifraterska 15/92, tel.: 022 398 38 04 reklama@cormedia.pl www.cormedia.pl
00-203 Warszawa faks: 022 635 15 40
Cube Group Sp. z o.o. ul. Migdałowa 4, tel.: 022 201 32 90 biuro@cubegroup.pl www.cubegroup.pl
02-796 Warszawa faks: 22 201 32 91
. Digital One ul. Dowborczyków 25, tel. 042 677 14 77 info@digitalone.pl www.digitalone.pl
90-019 Łódź faks: 42 677 14 78
Direct Traffic Sp. z o.o. ul. Wołodyjowskiego 83, tel.: 022 201 22 33 sprzedaz@directtraffic.pl www.directtraffic.pl
02-724 Warszawa faks: 022 201 22 39
e-Business Solutions al. 3 Maja 2 lokal 66, tel.: 022 402 09 94 info@e-bs.pl www.e-bs.pl
Sp. z o.o. 00-391 Warszawa
Eniro Polska Sp. z o.o. ul. Domaniewska 41, tel.: 022 314 20 00 eniro@eniro.pl www.pf.pl
02-672 Warszawa faks: 022 314 20 01
Fast Bridge ul. Altowa 6, tel.: 022 572 33 99 office@fastbridge.pl www.fastbridge.pl
02-386 Warszawa faks: 022 572 33 01
FFCreation Sp.j. ul. Chorągwi Pancernej 43, tel.: 022 858 79 81 office@ffcreation.pl www.ffcreation.com
02-951 Warszawa faks: 022 858 79 79
Grupa Onet.pl SA ul. Wiertnicza 166, tel.: 022 453 31 00 reklama@onet.pl www.onet.pl
02-952 Warszawa faks: 022 453 31 31
Grupa Pracuj Sp. z o.o. Prosta Office Centre, tel.: 022 373 73 00 oferta@pracuj.pl www.pracuj.pl
ul. Prosta 51, faks: 022 373 73 01
00-838 Warszawa
Interactive Marketing ul. Młynarska 42, tel.: 022 44 73 220 biuro@impartner.pl www.impartner.pl
Partner Polska Sp. z o.o. 01-171 Warszawa faks: 022 44 73 201
Interaktywna Sp. z o.o. ul. Okrzei 23, tel.: 0 793 536 365 reklama@firma.fotka.pl www.fotka.pl
03-715 Warszawa faks: 022 211 95 35
Interia.pl SA Al. Jerozolimskie 81, tel.: 022 595 16 00 reklama@firma.interia.pl www.interia.pl
XV p. Orco Tower, faks: 012 646 27 10
02-001 Warszawa
International Data Group ul. Jordanowska 12, tel.: 022 321 78 00 reklama_online@idg.com.pl www.idg.pl
Poland SA 04-204 Warszawa faks: 022 321 78 88
Internetowy Dom Mediowy ul. Jubilerska 10, tel.: 022 211 33 88 agencje@idmnet.pl www.idmnet.pl
Net Sp. z o.o. 00-939 Warszawa
K2 Internet SA al. Solidarności 74a, tel.: 022 448 70 00 biuro@k2.pl www.k2.pl
00-145 Warszawa faks: 022 448 71 01
Kompan.pl Sp. z o.o. ul. Puławska 469, tel.: 022 486 96 00 kompan@kompan.pl www.kompan.pl
02-844 Warszawa
Media Contacts Sp. z o.o. ul. Postępu 13, tel.: 022 843 66 60 office.poland@mediacontacts.com www.mediacontacts.com
02-676 Warszawa faks: 022 843 66 61
Media Direction OMD ul. Ateńska 67, tel.: 022 511 11 20 office@mediadirection.com.pl www.mediadirection.com.pl
03-970 Warszawa faks: 022 511 11 42
Media Regionalne Sp. z o.o. Prosta Office Center, tel.: 022 463 07 00 reklama@mediaregionalne.pl www.mediaregionalne.pl
ul. Prosta 51, faks: 022 463 00 77
00-838 Warszawa
Mediaedge:cia ul. Dobra 56/66, tel.: 022 55 27 791 tomasz.rzepniewski@mecglobal.com www.mecglobal.com
00-312 Warszawa faks: 022 55 27 770
MindShare Polska Sp. z o.o. ul. Dobra 56/66, tel.: 022 55 27 200 warsaw.reception@mindshareworld.com www.mindshare.pl
00-312 Warszawa faks: 022 55 27 201
Money.pl Sp. z o.o. ul. Kościuszki 29, tel.: 071 337 42 66 reklama@money.pl www.money.pl
50-011 Wrocław faks: 071 337 42 70
Mosqi.to ul. Wigury 13 lok. 10, tel.: 042 636 75 51 ideas@mosqi.to www.mosqi.to
90-302 Łódź
NetSprint Sp. z o.o. ul. Bieżanowska 7, tel.: 022 844 49 90 informacje@netsprint.pl www.netsprint.pl
02-655 Warszawa faks: 022 852 20 60
Nowoczesna Firma Sp. z o.o. ul. Flory 9/1, tel.: 022 314 14 00 info@nf.pl www.nf.pl
00-586 Warszawa faks: 022 314 14 10
O2.pl ul. Jutrzenki 177, tel.: 022 398 88 88 info@firma.o2.pl www.o2.pl
02-231 Warszawa faks: 022 398 80 99
Opcom Grupa Eskadra ul. Jeleniogórska 17, tel./faks.: 012 26 80 100 info@opcom.pl www.opcom.plul
Sp. z o.o. 30-422 Kraków
Performance Media ul. Idzikowskiego 19, tel.: 022 899 03 45 info@perfomance-media.pl www.performance-media.pl
02-704 Warszawa faks: 022 899 15 74
Plasma Media ul. Czeremchowa 28, tel.: 0 501 541 105 agencjareklamowa@plasmedia.pl www.plasmamedia.pl
03-159 Warszawa
Point of View ul. Filona 16, tel.: 022 843 50 31 info@pointofview.pl www.pov.pl
02-658 Warszawa faks: 022 843 9 97
Polskie Badania Internetu Al. Jerozolimskie 65/79, tel. 022 630 72 68 biuro@pbi.org.pl www.pbi.org.pl
Sp. z o.o. 00-697 Warszawa faks: 022 630 72 67
Polskie Książki Telefoniczne al. Solidarności 128, tel.: 022 632 17 02 w. 400 infodok@pkt.pl pkt.pl
Sp. z o.o. 01-195 Warszawa faks: 022 310 62 60
Sare ul. Niedźwiedzia 2c, tel.: 022 852 28 59 biuro@sare.pl www.sare.pl
02-737 Warszawa
Synerway SA al. Niepodległości 69, tel. 022 322 73 18 info@synerway.pl www.synerway.com.pl
02-626 Warszawa
Telewizja Polska SA ul. J.P Woronicza 17,
. tel.: 022 640 22 24 cezary.chmielewski@brtvp.pl www.itvp.pl
00-999 Warszawa faks: 022 640 22 02
Trader.com (Polska) Sp. z o.o. ul. Towarowa 22, tel.: 022 455 33 00 info@trader.pl www.trader.pl
00-839 Warszawa faks: 022 455 33 01
Value Media ul. Fasolowa 31a, tel.: 022 203 60 00 biuro@valuemedia.pl www.valuemedia.pl
02-482 Warszawa faks: 022 863 13 60
Web Search Factory Polska ul. Rajskich Ptaków 55a, tel.: 022 894 41 57 info@websearchfactory.pl www.websearchfactory.pl
Sp. z o.o. 02-816 Warszawa faks: 022 894 41 57
Wirtualna Polska SA ul. Sienna 75, tel.: 022 57 63 900 br@wp-sa.pl www.wp.pl
00-833 Warszawa faks: 022 57 63 999
Zanox.de AG ul. Suwak 3, tel. 022 23 21 370 info.pl@zanox.com www.zanox.com/pl
02-676 Warszawa faks: + 49 30 50 96 91 99
Zed Digital ul. Gdańska 27/31, tel.: 022 345 21 40 zed_poland@zeddigital.pl www.zeddigital.pl
01-633 Warszawa faks: 022 345 21 41

10. Strategic Report by IAB Polska: Internet 2007
Partnership with IAB
Europe
IAB Polska, operating within the framework of IAB Europe, organised the MIXX
Awards interactive campaigns competition as the second European country (after
Belgium). We also designated a Polish representative in the worldwide MIA Project
initiative which aims at arriving at common currency for the audience measurement
studies. 13 representatives of internet companies from Poland participated in the IAB
Europe – Interact 2007 congress in Brussels.
How about 2008?
We will do our best to introduce and popularise events promoting interactive
marketing, including IAB Update and IAB Showcase cycles. We shall arrange two
single-theme conferences devoted to SEM and video on the web. Another challenge
will be a two-day Forum IAB 2008 to be staged in November. We also plan a
comprehensive schedule of business-related activities and we hope to attract more
participants than last year. At the beginning of June, over 60 representatives of Polish
internet sector shall participate in the Interact Congress in Berlin. We also plan to
arrange a similar mission to visit OMD trade fair in Düsseldorf this autumn. We also
work on a number of major actions whose details will be disclosed in due time. We
also count on a dynamic membership increase and on more initiatives from the
members.
10 Special extra Media & Marketing Polska, September 2008

11. Strategy first
ARBOinteractive Poland is a part of ARBOinteractive AG – a company specializing in online and new media
marketing solutions. ARBOinteractive AG offers advertising networks in its portfolio, which establishes its uniqueness
in the terms of reach on online market in Mid and Eastern Europe.
The company owns 6 branches – in Poland, Czech Republic, Romania, Turkey and Russia. ARBOinteractive AG
represents a part of ARBOmedia AG, the European group dealing with media sales, consulting and advertising
campaigns implementation. Polish branch of ARBOinteractive includes ARBOnetwork - an advertising network of
nearly 500 affiliated websites, Bizon media – a theme network specializing in business, LOGICSEARCH – a SEM/SEO
broker, contextual advertising system - SmartContext, and AdKing – an interactive agency.

12. Strategic Report by IAB Polska: Internet 2007
CHAPTER 1
Access to the
Internet
Access to the Internet residents having access to the Internet. However,
worldwide although Asia has a low indicator of 13.7%, the
presence of Asian users is the best noticeable, as the
According to data provided by InternetWorldStats.com, indicator translates into a group of more than 500
20% of world’s population were using the Internet. This million persons, or almost 40% of all Internet users.
rate is equivalent to more than 1.3 billion person, which Undoubtedly, this group will strengthen its position,
marks an increase by approx. 200 million, as compared mostly due to the presence of Indian and Chinese users.
with the previous year. The world’s leader in the Europe ranks second with respect to the number of
percentage of Internet users is the U.S.A. with 71.1% Internet users (348 million). However, they constitute
only 43.4% of the residents of the whole continent. This
proportion is the highest in Scandinavian countries:
Access to the Internet worldwide Norway has 88% residents using the Internet (best
result worldwide), Iceland has 85.4%, Sweden 77.3%,
Country Number % of population Increase Denmark 68.8%. In addition to that, the Netherlands
of Internet users (penetration) 2000/2007
have 87.8% of residents using the Internet and Portugal
(million) (%)
North America 238.0 71.1 120 ranks quite high with its 73.1% of Internet users.
Oceania/Australia 19.2 57.1 152 Generally, more than half residents of European Union
Europe 348.1 43.4 231 are Internet users (55.7%.) Germans have the highest
Latin America 126.2 22.2 599 Internet presence out of all European nations (53.2
Middle East 33.5 17.4 920
million users) followed by Brits (40.4 million),
Asia 510.5 13.7 347
Africa 44.4 4.7 883
The World 1319.9 20.0 266
The Netherlands 14.5 87.8 273 Internet Users by Regions
Sweden 7.0 77.3 73
Portugal 7.8 73.1 211 North America Asia The rest
Luxembourg 0.3 70.6 239 Europe Japan of the world
Denmark 3.8 68.8 93
Great Britain 40.4 66.4 162
Germany 53.2 64.6 122 23
Finland 3.3 62.7 71 6
Slovenia 1.3 62.2 317 2010 36
Estonia 0.8 57.8 107
18
Italy 33.1 57.0 151
Austria 4.7 56.7 121 16
Spain 22.8 56.5 324
France 34.9 54.7 310 20
Belgium 5.5 52.8 175
9
Ireland 2.1 50.1 163
Czech Republic 5.1 49.9 410 2005 29
Latvia 1.1 47.4 614 21
Slovakia 2.5 45.9 285 22
Cyprus 0.4 45.2 197
Poland 14.1 36.6 403
Greece 3.8 35.5 280 11
Hungary 3.5 35.2 390 8
Lithuania 1.2 34.2 443 2000 17
Malta 0.1 31.7 218 25
Romania 7.0 31.4 775 39
Bulgaria 2.2 30.0 412
European Union 273.2 55.7 190 % 5 10 15 20 25 30 35 40
Source: Internet World Stats, December 2007 Source: The World Bank, CIA Factbook (2005), Jupiter Research (2006), PWC (2005), Computer Industry Almanac (2006)
12 Special extra Media & Marketing Polska, September 2008

13. Strategic Report by IAB Polska: Internet 2007
20 countries with the highest number Access to the Internet
of Internet users in Poland
Country Number of Internet % of residents
users (million) (penetration)
Internet penetration in Poland is still lower than in
USA 210.0 69.6 Western Europe, but the number of Polish Internet users
China 132.0 10.0 is growing steadily and fast. A NetTrack study by
Japan 86.3 67.1 Millward Brown SMG/KRC conducted at the end of
Germany 50.6 61.3 2007 showed that Poland had 12.9 million Internet
India 40.0 3.5
Great Britain 37.6 62.3
users over 15 years of age. Basing on that figure,
South Korea 33.9 66.1 Megapanel study estimates that the number of Internet
France 30.8 50.3 users over 7 is 14.1 million. Compared with 2006 this
Italy 30.8 51.7 figure grew by more than 10% (according to NetTrack
Brazil 25.9 13.9 data). Internet users constitute 39.5% of persons aged
Russia 23.7 16.5
Canada 21.9 67.5
7 and more. Similar data have been provided by the
Mexico 20.2 19.0 Main Office of Statistics GUS, which says that in 2006,
Spain 19.2 42.7 41% households and 92% companies had access to the
Indonesia 18.0 8.0 Internet. 38% households actually used the Internet,
Turkey 16.0 21.1 which translates into 39% Poles in the age group of 16-
Australia 14.7 70.2
Vietnam 14.5 17.1
-74 who are regular Internet users (at least once a
Taiwan 13.8 60.0 week). Compared with previous year, this figure
Argentina 13.0 34.0 increased by 5%.
Internet usage in Poland is still centred in large cities;
Source: Internet World Stats, December 2007
its penetration in cities over 500 thousand residents is
almost twice as high as in the countryside. However, the
Frenchmen (34.9 million) and Italians (33.1). Poland growth of penetration in previous year was slightly faster
ranks 9th in Europe with its 14.1 million Internet users.
The Internet is much less common in Eastern Europe.
The rate of internet users in Russia, Ukraine or Turkey
does not exceed 25%, but due to the size of the
The number of Internet users in Poland
population, the number of users is quite high anyway; Internet users over 7 years of age (Megapanel)
for instance, Russians constitute 8.4% of all European Internet users over 15 years of age (NetTrack)
Internet users.
The examples below illustrate changes occurring in 15
14.1
the Worldwide Web. In 1995, 66% of all Internet users
3
13.1 9
12.9
in the world were from the USA; now U.S. users
constitute only 18%; Vietnam and India are now among 12 7
11.7
the top 20 countries with the highest number of Internet
users. India is an excellent example of the potential of
9.6
96
Asian countries, as it has now more Internet users than 9
9 8
8.4
Germany (the country with the highest number of
Internet users in Europe), although Internet penetration 4
7.4
in India is as low as 5.3%. One should remember that 6.5
the quantity does not always translate into quality – the 6 5.8
highest number of features in Wikipedia is written in 4.6
English, German, French and Polish, followed by
Japanese (although Japan has as many as 87.5 million 3
2.2
of Internet users) while Chinese ranks 12, which is
comparatively low.
mln
2000 2001 2002 2003 2004 2005 2006 2007
Source: Millward Brown SMG/KRC NetTrack, December 2000-2007, Megapanel PBI/Gemius, December 2004-2007
Special extra Media & Marketing Polska, September 2008 13

14. Strategic Report by IAB Polska: Internet 2007
Propotion of Poles using the Internet in the countryside than in the cities. Penetration in cities
in 2007 grew by more than 4.5% while the increase in
Internet users over 7 years of age (Megapanel) the countryside reached 5%. Most probably, the
Internet users over 15 years of age (NetTrack)
disproportion will be reduced in the coming year, in the
result of growing popularity of the Internet. The number
50
of new users from rural areas in 2007 was a number of
42.9 times higher than the number of users from the cities.
The majority of Polish users of the Internet is young.
40 38.7 39
39.5
36
36.9
The Megapanel PBI/Gemius study conducted in
December 2007 showed that almost all members of age
group 15-19 were internet users (2.64 million or almost
30 8
28
94.6% of all Poles in this age bracket). However, the
26 8
6
26.8 penetration in the group over 60 is still only 5.3%,
25.3
24.5
5
21.7
although it grew by half as compared with 2006.
19.3 The trend is quite clear – Internet is used by almost
20
all persons from the age bracket 15-19, by more than
15.2
half of persons from the age bracket 20-29 and by
almost half of persons from the age bracket 30-39,
10 every fourth person from the 40-59 bracket and only
7.4
every twentieth person from the over 60 bracket. One
should not expect any radical changes here – it seems
% quite probable that more than 6 million of Poles over
2000 2001 2002 2003 2004
004
4 2005
005
5 2006
006
6 2007
20
007
60 will not use the Internet; the increasing Internet
Source: Millward Brown SMG/KRC NetTrack, December 2000-2007, Megapanel PBI/Gemius, December 2004-2007, GUS
Percentage of internet users out of the total
number of residents
Internet penetration by city/town
size in Poland Village Town Average in Poland
60 50
46.8
53.5
50.5 51.6
50
42.1
43.6 39.4
42.4 40
40.5
40 34.4
29.7
30 27.3 30 31 27.3
23.6
20 25 22.2
20
10
13.9
15.7
% %
Village Up to 20-50k 50-100k 100-200k 200-500k Over
20 50k 50 100k 100 200k 200 500k 2004 2005 2006 2007
20k residents residents residents residents 500k
residents residents Source: Megapanel PBI/Gemius, December 2004-2007, GUS
Surce: Megapanel PBI/Gemius, December 2007, GUS
14 Special extra Media & Marketing Polska, September 2008

16. Strategic Report by IAB Polska: Internet 2007
Internet penetration Forecast – percentage of persons
by age groups in Poland with Internet access in Poland
100 94.6 60
80 50
50
47
60 56.7 43
48.7 39
44.7 40
40 34
25.1 30
30
20
5.3
% %
7 14
7-14 15 19
15-19 20-29
20 29 30-39
30 39 40-59
40 59 60+ 2005 2006 2007 2008 2009 2010
Source: Megapanel PBI/Gemius, December 2007, GUS Source: ITU
penetration in the latter group will be slow and caused
mostly by aging of Poles from groups which are well
acquainted with that medium.
According to the forecast of the International
Propotion of Internet users as compared Telecommunications Union published in 2003, the
with total number of residents, percentage of Poles with access to the Internet will grow
by age groups up to 50% as late as in 2010. So far, the forecast has
been proven valid and, taking into account a slight
7-14 15-19 20-29 30-39 increase of the number of Internet users in 2007 as
40-59 60+ Average in Poland compared with previous years, it may actually turn true.
The most frequent reasons for the lack of Internet
100 access in households named by respondents in a study
93.7
94.6
by the Main Office of Statistics (GUS) included,
primarily, no need to use the WWW, followed by
80 economic reasons such as to high cost of hardware and
72.8
Internet access. However, it is optimistic that the study
71.4
noted a decrease in responders naming such reasons by
60
51.7
56.7 4-5% as compared with 2006 and 2005. The fourth
46.7 48.7 key reason was insufficient knowledge. The percentage
41.7 44.7 of responders giving such reason increased by 5% in
40 39.6 42.3 39.4
35.4 37.3
three recent years, due to increased number of Internet
34,4
27.1 users and growing group of users with basic and
24.2 25.1
23.6 25 27.2 secondary education.
20
14.8 17.3 Limited technical capability of internet service
3.6
providers was more frequently named as an obstacle in
2 5.3
1.5 obtaining broadband Internet access (21% households
%
2004 2005 2006 2007 without fast connection) than as an obstacle to general
Source: Megapanel PBI/Gemius, December 2004-2007, GUS access to the Web (9% of households). On the other
16 Special extra Media & Marketing Polska, September 2008

18. Strategic Report by IAB Polska: Internet 2007
Reasons for the lack of Internet access Share of Internet access services revenue
at home (% of total numbers of households in total revenue of operators 3rd quarter
without access to the Internet in 2005-2007) of 2007
2005 2006 2007 Cable TV Others Telecoms
Poland
41
No need 43
39 9%
32 18%
Too high
hardware costs 36
36
6%
Too high Internet
31 64%
access costs
35
33
No revelant
20 3%
skills 19
15
No technical 9
infrastructure Netia Dialog
for Internet 8
access 8 No mobile telephone operators included
Source: Office of Electronic Communications UKE, based on data provided by operators
Access 8
to the Internet
from other 8
sources 7
share of Telefonia Dialog SA and Netia SA amounted
3 respectively to 3 and 6%.
Dislike
of the Internet 3
The reach of Internet within population is not the
3
single measure of new solution development. Other
2 important ones include the development of broadband
Safety
reasons 2 access and the number of arrangements concluded by
1
Internet with public administration entities and
% 10 20 30 40 50
companies. In this respect, Poland ranks much lower
The study allowed for more than one answers, so the totals do not sum up to 100% than other EU countries and European states without
Source: GUS
EU membership. According to Eurostat, only 25% of
basic public services under research were available via
Internet in Poland in 2007, while the average for 27 EU
hand, the number of persons meeting technical members was 59. The only two states ranking lower
obstacles at the stage of gaining access to the WWW than Poland were Bulgaria (15%) and, surprisingly
was three times higher: for 641 thousand or 9% out of enough, Switzerland with 21%. In most European
about 7,4 million households it was impossible to countries, the discussed indicator exceeds 50% and in
obtain access to the Web, whiles 223 thousand of Austria it amounts exactly to 100%.
households (21% of slightly more than one million) The low access to public services results in a very
wanted faster connection but encountered problems on low percentage of citizens contacting public offices by
the Internet provider side. the Internet: the figure for 2007 was 15% in Poland,
The leading Internet provider in the 3rd quarter of while an EU average was on the level of 30%. In this
2007 was Telekomunikacja Polska SA (Telecoms ranking, Poland was ahead of Greece, Bulgaria and
Poland). Its share in the revenue from Internet access Romania only. The proportion concerning companies is
services amounted to 64% and it was followed by cable better, with 64% companies using Internet for contacts
TV operators, with a 18% share in the global figure, with offices in 2007. The figure is close to the EU
closely followed by other providers (9% share). The average amounting to 65%. Poland will probably remain
18 Special extra Media & Marketing Polska, September 2008

19. Strategic Report by IAB Polska: Internet 2007
at the lowest positions in European ranking which Percentage of persons usin' the Internet
concern e-government, as the development of e-society for contacting public administration offices
does not seem to be the priority of authorities; even if
some legal regulations are passed in this respect, their Denmark 58
implementation is usually postponed. This tendency is Norway 55
illustrated by the law of 2001 on introducing electronic Iceland 54
signature – in 2006 the deadline for introducing e- The Netherlands 49
-signature in state administration was postponed until Sweden 47
mid 2008 which means that the implementation of this Luxembourg 44
Finland 43
law has taken 7 years for the Polish state. Last autumn
Germany 39
the Ministry of Finance announced that as of April 1st,
France 37
2008, residents will have an option to submit their PIT
Great Britain 33
returns as of April 1st, 2008. However, the option is
EU (15 members) 31
open only for owners of qualified e-signature which
Euro countries 30
costs some hundred PLN and requires costly extensions
Slovenia 28
in the following years. In addition to that, citizens have Estonia 27
to notify the Revenue Office on their intention to send EU (27 countries) 27
their tax returns by the Internet and to wait until the Ireland 26
head of the Office issues a statement on accepting an Spain 25
electronic tax settlement; waiting time for such decision Austria 24
is a few weeks. In such circumstances, one can hardly Hungary 22
expect large numbers of citizens to use Internet for Belgium 21
sending their tax returns. For comparison, 65% citizens Slovakia 20
of Norway (an e-government leader in Europe according Cyprus 18
to Eurostat) submitted their tax returns online in 2006. Lithuania 18
Luckily, there are considerable chances for Poland to Latvia 17
undergo breakthrough in e-government in 2008. As of Portugal 17
July that year, all companies with employment over 5 Italy 15
persons will be obliged to sign their returns on social Czech Republic 14
Poland 12
insurance contribution (ZUS) with qualified e-signature, Source: Eurostat 2007
Greece 10
which will rapidly increase the number of e-signatures.
Bulgaria 4
Companies providing such signatures expect that the
Romania 4
requirement may result in a decrease of prices even to
PLN 30 for one signature. It is expected that this year % 10 20 30 40 50 60
Polish mobile phone users will be able to use a mobile
signature, cheaper than current e-signatures, easier to
handle and easier to obtain by individuals. Perhaps 100 residents is 6,8 (Eurostat, 1st half of 2007). The
Poland will place better in future Eurostat rankings on e- lowest rate of broadband Internet availability has been
-government. noted only in Greece, Romania and Bulgaria. The EU
average is almost three times higher than the Polish
Broadband Internet proportion and amounts to 18.2 lines per 100
residents. Which is more, the factor grows faster in
Although the majority of Poles use broadband other countries – the EU average increased from 14.8 in
Internet (90% respondents of NetTrack using Internet at 2006 to 18.2 in 2007 (although the average in 2007
home had a fixed connection with the Internet), Poland was lowered by new members, Romania and Bulgaria),
has the lowest broadband penetration compared with while the increase in Poland at the same time was from
other developed countries. Although at the end of 2007 3.9 to 6.8.
Poland had approximately 3,5 million broadband lines, Poland’s position is slightly better in the ranking of
which in absolute figures gives it the 9th place in households with the access to broadband Internet.
Europe, however the proportion of broadband lines per According to Eurostat, 30% Polish households has such
Special extra Media & Marketing Polska, September 2008 19

20. Strategic Report by IAB Polska: Internet 2007
The number of broadband connections The rate of households with access
per 100 residents to broadband Internet
Denmark 37.2 Iceland 76
The Netherlands 33.1 The Netherlands 74
Finland 28.8 Denmark 70
Sweden 28.3 Sweden 67
Luxembourg 24.6 Norway 67
Belgium 23.9 Finland 60
Great Britain 23.8 Luxembourg 58
France 22.3 Great Britain 57
Germany 21.1 Belgium 56
EU (15 members) Germany 50
20.8
Estonia 48
Estonia 20
EU (15 members) 46
Austria 18.4
Austria 46
EU (27 countries) 18.2
Slovenia 44
Spain 16.8
France 43
Italy 15.9
EU (27 countries) 42
Ireland 15.5
Spain 39
Slovenia 15.3
Lithuania 34
Portugal 14.8
Hungary 33
Malta 13.9
Latvia 32
Lithuania 12.7 Ireland 31
Czech Republic 12.2 Portugal 30
Hungary 11.6 Poland 30
Latvia 11.6 Czech Republic 28
Cyprus 11.1 Slovakia 27
Slovakia 6.9 Italy 25
Source: Eurostat 2007
Poland 6.8 Source: Eurostat 2007 Cyprus 20
Greece 6.8 Bulgaria 15
Romania 6.6 Romania 8
Bulgaria 5.7 Greece 7
% 5 10 15 20 25 30 35 40 % 10 20 30 40 50 60 70 80
access, which places Poland ahead of Italy, Czech in Japan, France, Sweden or Finland is below 0.5 USD.
Republic and Slovakia. However, as compared with Regrettably, Poland is far behind other countries with
ranking of 2006, Poland has been taken over by respect not only to the access to broadband Internet, but
Hungary, Lithuania and Ireland. The distance between also to its price.
Poland and other EU countries is increasing, as the
proportion of households with access to fast Internet
increased in Poland by 8% throughout the year, while
the average EU increase in the same period was 10%.
Conclusions from Eurostat data are confirmed by
a OECD report, which says that the average speed of
broadband connections in Poland was 4.2 Mb/s, while
the average speed of all OECD states was 13.7 Mb/s.
The cost of 1 Mb/s in Poland is at least 6.5 USD, while
20 Special extra Media & Marketing Polska, September 2008