Hungarian Online Advertising Market Overview

13 April 2009by Rabbit

Questions & Answers

1. How much is the internet penetration rate in your country? How many internet usersdoes this mean daily/weekly/monthly?

Internet penetration rate is 46% in Hungary (source: NRC/TNS), which means 2,8 millionusers a day, 4,2 million users a week and 4,6 million users a month (source: Webaudit).

2. What is the share of online ad spend within the overall advertising spending? What isthe share of display, search, listing and email ads within online ad spend?

In 2008 Hungarian online ad spend was 21.816 billion HUF, which accounts for 10.00% of thewhole advertising cake, according to IAB Hungary Adex 2008. Within online ad spend theshare of display ads is 63%, listing is 16%, email is 4% and paid search is 17%. Fastest growingsegment was search engine advertising, which was increased by 242.36% in 2008.

3. Which are the main media owners/sales houses/ad networks and the most visitedwebsites in your country? Is the online market dominated by the biggest players or smallerand medium players are able to succeed?

The 3 biggest players of the Hungarian online market are Origo, CEMP (Index) and Sanoma.Their share of the overall online ad spend is approx. 45%, within the display segment isapprox. 65%. Beside them some mid-size players could succeed, e.g. Adaptive Media andEvo Media, that managed to realize the same share in ad revenues as in reaching theHungarian users.The Top 30 most visited Hungarian sites:

Site

UU (000)

RCH%

1 iWiW 2,664 68.642 origo 2,468 63.593 Freemail 1,973 50.834 Index.hu 1,791 46.155 Startlap cover page 1,133 29.26 PORT.hu 1,126 29.017

Nők Lapja c@fe

1,069 27.548 Vatera Aukció 1,025 26.49 Videa.hu 987 25.4310 myVIP 942 24.26

rabbitblog.hu

11 HotDog.hu 888 22.8812

Figyelő Net

813 20.9413 Freeblog.hu 801 20.6314 Expressz.hu 754 19.4415 teszvesz.hu aukció 726 18.6916 Velvet oldalak 675 17.3917 Blikk.hu 643 16.5718 Használtautó.hu 617 15.8919 SZTAKI Szótár 603 15.5520 IndaVideó 591 15.2421 SG.hu Informatika Tudomány 581 14.9822 Prohardver Online 558 14.3923 TotalCar.hu 519 13.3824 Story online 518 13.3425 HáziPatika.com 516 13.2926 femina.hu 507 13.0727 Profession.hu 503 12.9528

RTLKlub.hu

498 12.8229 Ok.hu 480 12.3630 Menetrendek.hu 479 12.35Source: webAUDIENCE, 15+ internet population, January 2009 (monthly UU & reach)

4. Which are the biggest agencies on your online market; international networks or localagencies are more significant?

eMission (WPP / GroupM), Fastbridge (IPG / Magna), OMD Digital (OMG) and kirowski (Aegis/ Isobar) are the biggest international agencies that have their online firms or divisions inHungary. Among independent agencies Arcus and Carnation are the most important. Marketshare and client list of the digital agencies are not public.

5. Which are the main sources of publicly available data concerning your local onlinemarket?

Audited site measurement data on most visited sites is available onwebaudit.hu

, opa.gemius.huoraudience.gemius.hu.Information on ad spend is published as a news release by TNS MI, MRSZ and IAB Hungary (prior is rate card price, ulterior two are net pricedata) once in a year. Detailed data on Hungarian online advertising market is only availableat my blog,rabbitblog.huwith the permission of TNS MI.

rabbitblog.hu

6. What kind of online audience measurement solutions are generally accepted? (Whichanalyzing and/or planning softwares are attached to them?)

Announcement of an online audience measurement tender is in progress. There are twocompetitors right now: gemius/Ipsos Audience (Gemius + Szonda Ipsos) and webAUDIENCE

(Medián + GfK), and Nielsen is supposed to join the contest. gIA data is available via

gemiusExplorer, while wA data could be analyzed within MEMRI. (Planning module of MEMRI is not yet finished.)

7. Which ad servers are widely spread and mostly accepted?

Most media owners use Adverticum, an ad server solution developed domestically (e.g.Origo, Sanoma, Adaptive Media, Evo Media), however, Gemius also started its expansion onthe Hungarian market (e.g. CEMP). Smart is a new player on the market, which has dealswith Axel Springer and Inform Media. On the agency side, Gemius, Adverticum andDoubleClick are the most widely used ad servers.

8. Do local marketers frequently use more innovative solutions, such as social media, videoand mobile advertising (beyond sms or mms), or behavioral targeting?

None of these solutions have yet been matured on the Hungarian market, their usage isincidental and not prevalent. There aren’t any possibilities for behavioral targeting, unlessagency ad server is capable doing it. On iWiW, the most visited Hungarian site, Facebook-likeapplications will be launched in April, which is opening new online marketing possibilities.

9. Are affiliate networks thriving in your country? How much is the market share of affiliate solutions within the overall online ad spend?

There aren’t any affiliate networks in Hungary, but smaller, independent affiliate programsexist. Their market share is unremarkable.

10. What is the usual rate of discounts provided by the media owners?

Discounts are various and based on annual contracts. Rate of volume discount is usually 20-40%, but could be a decent 50% as well (15% agency commission is common).

11. What are the usual deadlines, e.g. for creating a tactical media plan?

We can create a media plan in 2 hours, but at least 2 or 3 days is needed for proper planning.

12. Are the typical roles – planning, buying, monitoring – separated in agencies in yourcountry? Does one person manage the overall campaign or there are more people, e.g.media planner, media buyer, assistant?

It depends on the actual agency. At bigger agencies roles are getting separated, usually thereare media planners, media buyers and campaign managers. At smaller agencies a mediaplanner is in charge of planning, buying, managing the ad server and creating deliveryreports.