This issue of State of the Net includes
- eCommerce Trends for 2011;
- Social Media: Users & Uses of LinkedIn in Ireland;
- Projected newspaper readership vs. Internet use;
- Online TV as indicator of changing media habits;
- Digital Advertising figures for Jan – Jun 2009 and Jan – Jun 2010;
- Mobile Internet uptake in Europe;
- Report on 10 years of IE Domain
- Analysis by Joan Mulvihill, IIA CEO, and Aileen O’Toole & Fiachra Ó Marcaigh, Directors, Amas.
The State of the Net is produced by Amas in association with the Irish Internet Association. Print copies are available on request from email@example.com and are distributed when available at IIA Events throughout the year.
A guest post from IIA Social Media Working Group Member Eoin Kennedy of Slattery Communications. You can check out Eoin’s blog here. (I particularly like his most recent post at time of writing about the implications of using multiple usernames across social networks.)
IIA Member Company SimplyZesty recently ran another successful measurement camp. The session itself was attended by less than normal but ran to a familiar structure with two presenters followed by a group activity based on three case study scenarios.
Overall although online is much more measurable than traditional media the demands to quantify it financially have not been met to date. The first wave of measurement has been around physical numbers i.e. numbers of followers, number of posts. These give a topline indication of engagement but translating this into actual worth is tricky. How much is a follower/friend actually worth? Sure it’s great to get some “thumbs up” and “love” but what are these actual measures worth? For property owners such as bebo this poses real challenges. Engagement models are generally built around the pushing and advertising of the page profile but savvy brand holders want more. The burden of responsibility is getting pushed back to the property owners as marketers want more metrics to gauge success while platform owners need agreement on values attached to elements so that they can build charging models. Currently the CPM (cost per thousand impressions) advertising model is the main charging structure used. If the platform owner is charged with the financial delivery then they need to have full control over the creative, which again would pose problems.
Philip McCarthy now ex Bebo gave a good overview of some campaigns that they have run and admitted that measurement is still at an early stage. Bebo does engagement very well but an experience with Coca Cola Burn posed interesting questions about what he should have charged. Current values are around 3 euro cost per thousand which would indicate a value of €60k for the Coke campaign that achieved 20m impressions. The campaign achieved 17,000 visits to the site, 126 comments, 7 photos, 70 quizzes, 679 skins used.
Engagement is something that social media does really well and according to Philip there must be a value to it.
Philip debated using traditional rates that are charged for advertorials, something that is pretty much set and understood with traditional media. Basing digital charging models on established off line models has merit in that brand owners understand them but is probably not the best starting point.
The establishment of a base line measurement was discussed that could be used across other media but no one has yet taken this step to any great degree.
Where this gets particularly difficult is in getting values on things like thumbs up, love and other signs of engagement used on different social networks. It’s great to get them but what do they really mean and what value could be put on them?
One of the areas discussed that could help on measurement in the real world was the use of redeemable bar codes. The idea being that rather than a virtual present that people could send a ‘printable’ bar code or even one that could be displayed on a phone. This could be taken to an outlet and redeemed. This could help track social media activity to actual sales. For example a coffee shop could build an app that allows users to send a coffee to friends. The friend could print out or show the barcode that would be scanned through at an actual coffee shop. By doing this the coffee shop could measure the actual sales generated by the voucher and social media activity. Some good work in being done in this area by IIA Member Company Zappa but problems still exist for terminals to read bar codes on screen.
The overall feeling from the event was that some leadership needs to be established in measuring the value of online campaigns and that the current metrics, while good, are not financially based enough for brand owners. The UK Measurement Camp has also suffered from similar problems.
My own observation is that once criteria that are reasonably sound are established Klout, TweetLevel for Twitter, or Technorati for blogs could start to become industry standards. At some point someone needs to take a brave step. The online community will undoubtable respond and some progress could be made.
State of the Net Issue 15 is now available to download from the Resources Section of IIA.ie. This publication, produced in association with IIA Member Company Amas, and indeed all those from 2009 provide invaluable business intelligence for decision makers in Irish business today. The Winter 2009 issue covers:
- An overview of the results of the Amas/ Marketing Institute of Ireland 2009 Irish Online Marketing Sentiment Survey,
- Top 10 iPhone Apps for Ireland (I have 2 of them and I’m embarrassed to admit that one of them is Sonic the Hedgehog!)
- Broadband growth figures for all platforms and mobile specifically from ComReg
- An overview of research from the EU commission on cross border product abvailability
- Year end details on top news searches from Google
- Usage of price comparison sites by product/ service from Amárach Research for the National Consumer Agency
- A cost/ benefit analysis of Social Media usage by Irish SMEs.
If your company has produced research that you feel might be suitable for publication in the next or other upcoming issues of State of the Net, please feel free to get in touch with me, Roseanne, to discuss.
The latest edition of the ever popular State of the Net is available in the Resources section of the IIA Website. Those of you attending Bizcamp tomorrow – I will have some with me if you would like to peruse a hard copy.
This month’s edition includes information and statistics about:
- Mobile Internet,
- Broadband uptake,
- Ireland’s Personas,
- Internet Use by age,
- Trust Online in Internet Transactions,
- and IIA Member Stats.
If you would like to download any of the graphs for reuse please visit the AMAS blog where they are available for download.
- ideas to leverage the power of the internet to combat the downturn
- stats about Internet use, mobile internet, online shopping, online banking, digital advertising & broadband penetration
This quarter’s State of the Net (PDF, 805K, opens in a new window) includes information about:
- the launch of The Ideas Campaign;
- the uptake of Broadband in Ireland compared to our EU neighbours;
- the number of Irish tweeters on Twitter.com;
- statistics about Internet use in Ireland;
- business use of the internet and eBusiness application;
- information from the Data Protection Commissioner about spam in Ireland;
- and child safety online
State of the Net is a quarterly publication produced by Amas for IIA Members and Irish businesses to help them keep abreast of key Internet trends and statistics. You can access all previous editions here.
The 2009 ECTA* Regulatory Scorecard, which benchmarks the telecoms regulatory framework in 18 European countries, shows Ireland performing well when it comes to its legislative environment and policy but is generally weaker on the resulting regulatory and market outcomes .
Ireland, together with the UK and Norway, scored highest for the efficiency of its regulatory authority. However, the price Ireland’s dominant player eircom charges for a competitor to access the ‘local loop’ is the highest in Europe at €431 per annum compared to €206 in the Netherlands.
Overall Ireland scored 6th position on the scorecard out of 18 EU member states, jumping from 12th position last year with the UK top of the table. The improvement is attributed to improved regulatory processes and relatively progressive policy proposals concerning next generation networks.
Commenting on the findings Ronan Lupton, Chairman of ALTO, which represents the alternative telecommunications sector in Ireland said: "While ComReg should be commended for scoring so highly it is clear that major obstacles still exist for effective competition in Ireland. Access charges to the incumbent’s network is still the highest in the EU and stifles profitable investment. We would call on the Minister to issue tighter policy directions to ComReg and ensure competitive services are available to Irish consumers."
Additional findings of the report as they relate to Ireland include:
- ComReg achieved strong performance for being able to conduct market analyses decisions in an efficient and transparent manner and have also been able to act effectively as dispute settlement bodies.
- For economic market conditions, Ireland scored the worst alongside Turkey and the Czech Republic. For voice, business services and mobile services Ireland was very weak on competition with competitive weaknesses identified in the broadband environment in particular.
- Time to port a telephone number ranges from 1 day in Ireland and Germany to more than 45 days in Poland.
General findings include:
- Countries with lowest prices tend to have higher penetration rates.
- Overall where LLU and cable providers have a higher penetration rate access speeds are higher. Where the incumbent has a higher level of penetration (and typically a higher share of the market), broadband access speeds do not increase significantly.
- Overall LLU helps to expand the broadband market and where LLU has a significant level of penetration the incumbent does not lose sales. In other words LLU is good for consumers (more people subscribe), good for competitors and is not negative for incumbents.
In launching the report ECTA urged the European Parliament and Council to use the opportunity of the Review of the Telecoms Framework to send a clear signal supporting the need for consistent and effective regulation to address dominance in the telecoms sector and to fully empower national regulators.
Innocenzo Genna, Chairman of ECTA said: "Now more than ever, politicians need to help consumers and businesses through the economic crisis by stimulating investment and innovation by all players, lowering costs and boosting business productivity. The results of the Regulatory Scorecard have repeatedly shown that relaxing rules on dominant telecoms firms is not the way to deliver any of these objectives."
ALTO, the association for Alternative Operators in the Communications Market, was established in 1998 to represent the interests of new operators entering Ireland’s telecoms market.
ALTO represents its members with regulatory authorities and policy makers such as the government, the EU, ComReg and the Competition Authority to ensure a competitive and fair business environment in which members can operate successfully. Members also benefit from effective intelligence gathering on current and future legislative and regulatory developments.
Members include: BT Ireland, Budget Telecom, Cable & Wireless, Chorus, Colt Telecom, Complete Networks, Digitweb, ESB Telecoms, Magnet Networks, NTL, Smart Telecom, TalkTalk, Verizon and 3 Play Plus.
For more information visit www.alto.ie
About the 2008 ECTA Regulatory Scorecard
The Scorecard is a comparative quantitative analysis of 18 EU Member States, and Norway and Turkey, resulting in an overall score for the effectiveness of the regulatory environment in each country.
A questionnaire was compiled following consultation with NRAs and ECTA members, and taking account of the requirements and recommendations contained in the EU Communications Framework, the World Trade Organisation (WTO) reference paper on telecommunications and European Commission and European Regulators Group (ERG) Guidelines. It covers (a) the institutional framework; (b) general market access conditions; and (c) the specific competitive and regulatory conditions relating to the markets for fixed and mobile telephony, high speed business connections and broadband.
The European Competitive Telecommunications Association (ECTA) looks after the regulatory and commercial interests of new entrant telecoms operators, ISPs and suppliers of products and services to the communications industry.
ECTA works for a fair regulatory environment which allows all electronic communications providers to compete on level terms in order to multiply investment and innovation throughout an effective European internal market. The association represents the telecommunications industry to key government and regulatory bodies and maintains a forum for networking and business development.
ECTA member companies include operators, service providers and suppliers as well as National Associations of such who all contribute towards regulatory policy development and participate in our comprehensive range of networking events, conferences, seminars, briefings and executive meetings.
The end of 2008 is looming and we are doing a bit of navel gazing here in IIA HQ. Navels are all very well for gazing at but they’re a bit low on useful information. All of you however have lots of information about our events in your pretty little noggins and we want it!
We’ve prepared a survey about our events where we ask you about what you liked about last year’s events, what you didn’t like, what kind of events you would like to see next year and we also ask your opinion on some specific aspects of our programme. So fill out the survey please – it’ll only take five minutes!
- a survey of Irish sites;
- online shopping trends;
- broadband statistics;
- information about online advertising format trends;
- statistics about eGovermenet Europe-wide;
- information about cross-channel purchasing;
- online advertising statistics
- Irish use of Social Networks
- Top Irish searches on Google
Download your copy now. Download PDF, 883k