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Online marketing ads up

6th June 2005
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The growing popularity of the internet means online advertising in Poland is big business.

The fastest developing medium in the world is positively booming in Poland. Since 2001 the number of Poles on the net has trippled. Lower installation costs and easier broadband access gave rise to one million new web surfers in Poland between December 2003 and December 2004. Now, nearly one-quarter of Poland's population has access to the world wide web.

With its ballooning popularity, the internet is proving a perfect medium to reach millions of customers. In 2004 the Polish online advertising market was worth zł.87 million, and rose by 43 percent between the first quarter last year and the same period this year. The Internet Advertising Bureau (IAB) Polska predicts that the rate of growth could reach 60 percent by the end of Q2. "This is also reflected in our increased activities, especially when it comes to the needs of big companies," says Krzysztof Andrzejczak, the marketing director at Hypermedia, an interactive marketing company.

Considering the experience of other countries, IAB forecasts that the rate of internet advertising growth will weaken only when it reaches about a five-percent share of advertising expenditures, which will not happen before 2010. "Definitely the growth will not slow down by 2008 as the market in Poland is not sated yet," said Andrzejczak.

More and more Polish companies are adding internet advertising to their marketing mix and are expanding their online-ad budgets. For example, Onet.pl registered 50-percent growth in advertisers between the end of 2003 and 2004. Specialists say the main advantage of online advertising is a high level of effectiveness, especially when compared to traditional media, such as television. "The advantage of online advertising is that it is a pull, not a push, medium. You have it when you want it," says Andrzejczak.

The big spenders in the online advertising market in Poland are companies from the financial sector, such as mBank, Inteligo, Lukas Bank or PKO BP, as well as firms from the telecoms market, including Era, Idea, Polkomtel and Nokia. The rapid development of e-commerce and financial services via the net make web ads the natural choice for financial institutions. However, banks have slightly stepped down their activity in online advertising, from 27 to 23 percent of marketing budgets, while expenditures on web ads in the telecoms market grew from 17 to 19 percent. The transport and automotive sectors are now jumping on the bandwagon. Their online-ad expenditure has grown from 14 percent of total ad spend at the end of last year, to 18 percent now.

From Warsaw Business Journal

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