zee Knowledge ONLINE LANDSCAPE gO (AGmn Turkey is the second largest market after Russia in terms of online population among the countries measured by Gemius. In December 2013 the total internet population older than 12 years amounted to almost 28m web users. The internet penetration rate equaled 46%. Pecncatucuenciaracs Turkish online market has a great potential: with such large population and still low penetration of the internet, we can expect huge incremental growth in the next years (in the number of internet users). What is more, the users’ engagement in online activities in this country is very high - almost 41 hours spent online monthly per visitor and about 1800 generated page views. This heavy engagement with the internet attracts advertisers and helps to increase digital ad spending in the country, despite the fact that Turkey is still considered to be an emerging internet economy. In 2013, digital media investments were not as remarkable as they were in 2012, however we expect them it to be thriving in 2014. Improvements are expected to be seen in the number of investments on search engine ads, rich media ads and mobile ads. Idil Kesten, Country Manager, Gemius Turkey & Chart 1. Internet penetration in Turkey ©eeese8 e ® ® e ® e e ® tuo vizore —_ix2m1a__xi.zm12_—_ iors viz01a 20192019 Source: IAB Turkey Internet Audience Measurement Study (age:124), M.2012-XIl.2013 BUR CMC Cee Re Retell NAM aie ees On the positive note, the demand for digital marketing has increased. Companies are willing to invest more in digital marketing. However, most companies are still insufficiently educated on where to start investing or how to control their brand within online platforms. But the developing digital agency ecosystem in the market balances the scale towards the positive side. In my case, | am providing training and consultancy services to help the companies set their digital strategies, so directly addressing a major need in the market working both with brand and the agency sides. This also helps me observe the changing market dynamics more closely. Mustafa icil, former Google MEA Regional Director Gemius oaTURKEY Pere eeu cue he ieas ce) Search advertising is still the top preferred advertising method. Within SEM, the share of mobile will increase in parallel with the global trends, but currently it is relatively smaller. One reason for this is the fact that many websites do not provide a good mobile experience yet. Another trend is also an increase in social media platform ads and promoted posts. Mustafa ic, former Google MEA Regional Director Pe ei eed The year 2014 is prospected to be the year of RTB (Real Time Bidding) in Turkey. RTB is already very popular on Western markets - according to eMarketer RTB Digital Display ad spend will grow froma EUR 1.38bn market in the United States in 2012, to a EUR 6.17bn market by 2017. The hype around it starts also in our country. RTB will directly affect the purchasing environment of display and mobile ads. With the help of RTB, it will be the year of more effective sales, not lower price sales. Idil Kesten, Country Manager, Gemius Turkey USERS ENGAGEMENT IN THE ONLINE ACTIVITIES Compared to Russia, Turkish internet users spend less time online - 40 hours 54 minutes per user monthly in Turkey and 43 hours 36 minutes monthly per user in Russia. On the other hand, Turkish users generate more page views monthly - 1791 page views per user in Turkey comparing to 1592 in Russia. In both countries there is a visible trend of decreasing online activity; however, in Turkey it is much more visible. In December 2013 an average Turkish internet user spent 7 hours 9 minutes less online than in December 2012 and visited 446 less websites. SET R Crna ing stars Turkey has been a TV country for years. Majority of advertising budget goes to TV. Press also plays a significant role. On the other hand, we see that there is an increasing trend in digital advertising, especially in video. Mobile devices and tablets are the rising stars as well. As the Gemius data shows, mobile traffic in Turkey has grown from 1% in December 2011 to 9% in December 2013. This is online, as users are switching to mobile devices, which were not included in the study. With Gemius multiplatform approach, mobile advertising can make a boom in 2014 since this will be the first data to show audience numbers and behaviors. Vesna Zakari, International Sales & Marketing Director, GemiusTURKEY Chart 2. Users engagement ‘Average time spent per user (h:m) | __ Average number of page views per user Source: IAB Turkey Internet Audience Measurement Study (age:12+), XIl.2012, XII.2013, desktop users Good quality content, social platforms and information exchange - drivers of users’ engagement There are a number of drivers that enhance users’ engagement online. The first one is content. On the Turkish market we can observe an increase in local content due to further online investments of brands and also a growing appetite for specialized content creation from blogs to professional portals/channels. The second driver is the evolvement of a new generation - a generation that likes to connect, create and share. Increased use of social platforms fuels this further. The third reason is information exchange. The social links on the internet are becoming a more trusted source of information from specific content to general news. Mustafa Icil, former Google MEA Regional Director WHO ARE TURKISH INTERNET USERS? In the Turkish online world, in contrast to Russia, it is men (55%) who dominate the web, with women being in minority (45%). Men are also more active online - an average Turkish male spends online 4 hours 48 minutes longer and generates 418 more page views monthly than an average Turkish woman.TURKEY remactuccan ds Mes PP esate Turkey has the youngest internet population not only compared to Russia but to all CEE countries. Young people (below 35 years old) constitute 71% of the Turkish online population. Users between 25 and 34 years old are most active - an average representative from this group spends 49 hours 58 minutes online and generates 1189 page views monthly. Both the smallest and the least involved group are the oldest users (55+). This means that especially companies that are targeting their offer to young users have to develop digital strategy, as the internet is the place where this target group is highly present. The internet is a great channel to inform, engage and convince them to buy. ‘Vesna Zakarié, International Sales & Marketing Director, Gemius Chart3. Socio-demographic profiles of internet users in Turkey gender age eines eae ¢ Sos > Cos ep... Interested in sports and looking for a car Secondary Schoo! 14% Univers Higher @ education place of living © a Gemius GoTURKEY THE MOST POPULAR ONLINE CONTENT ON TURKISH MARKET |Google and Facebook leading on Turkish market, Yandex strengthenit The most popular websites among the Turkish internet users are of western origin - Google and Facebook. Google.com, a global search engine, is the undisputed leader, with reach amounting to 91% of the Turkish internet population. Facebook.com is on the second place, with 78% reach. Worth noticing is the fact that Turkish online users fancy watching video online - 69% of Turkish internet users visit youtube.com. Yandex, a horizontal portal of Russian origin, is strengthening its position in Turkey gaining 1.9m users in 2013. Idi Kesten, Country Manager, Gemius Turkey Rite emu eee Melee In Turkey, a country with a very big population of young internet users, social media is at the core of anything digital. Facebook and YouTube are always leading the top ranks in gemiusAudience studies. An average Turkish online user spends 12 hours 48 minutes monthly on Facebook. However, in 2013 Twitter entered the stage as an important competitor. According to the 2013 data, there were 11.5m Turkish Twitter users among 36.5m internet population in Turkey. This means Turkey bears the biggest number of Twitter users who are the most active ones compared to other Twitter users of other nations at times of civil unrest. According to the research performed by New York University, Twitter use in Turkey at such times is described as unequalled and remarkable. For instance, on the first day of Gezi Park demonstrations, between 16:00 and 00:00 there were more than 2m Turkish tweets. Idil Kesten, Country Manager, Gemius Turkey Price In Turkey, e-commerce growth is very dynamic. In the last couple of years, we noticed a significant investment in this field, both from Turkey and abroad. The American giant, amazon.com, entered the Turkish market in December 2011 buying a considerable share of an e-flower ordering site, Cicek Sepeti. In 2013 it gained 1.1m new users. But still the demand does not meet the expectations of the market. The industry believes that there is still a very big potential and expects the penetration and spending level to increase in the future. Mateusz Gordon, International E-commerce Segment Manager, GemiusTURKEY CONCLUSIONS Dynamic e-commerce Huge potential of Turkish growth online market Google and Facebook leading on ‘Turkish market, Yandex strengthening its position Heavy engagement of Turkish users with the internet attracts advertisers to this channel of communication with consumers \ ‘The demand in the market for digital Turkey has the youngest marketing has increased, but market internet population comparing still needs to be educated how to to all CEE countries benefit from online Social media - the core of Search advertisi digital in Turkey preferred advertising method Good quality content, social platforms and information exchange are the drivers of users engagement 2014 - the year of RTB ‘Twitter showed itself as an important competitor to Facebook ig is still the top Mobile devices and tablets are the rising starsMETHODOLOGICAL NOTE The general market overview provided in the report is based upon data acquired by an international internet study measurement (gemiusAudience) conducted by Gemius in more than 30 countries. It aims to research into the number and demographic profile of internet users and the manner in which they utilize the web. The study is performed according to Gemius proprietary hybrid methodology and in accordance with the ICC/ESOMAR international code of conduct. Another source of data is gemiusRanking service, which is a collection of 22 websites presenting data based on Gemius internet sites traffic measurement conducted in Belarus, Bosnia & Herzegovina, Bulgaria, Croatia, the Czech Republic, Denmark, Estonia, Hungary, Latvia, Lithuania, Macedonia, Moldova, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey, Ukraine, as well as the MENA region. The study includes rankings of browsers, search engines, operating systems, mobile devices and online population preferences in terms of technical parameters of the tools they use to browse the Web (screen resolution, colour depth, or Flash version). AUTHORS Natalia Ptomitiska, Patryk Waledziak GEMIUS EXPERTS. Idil Kesten, Country Manager, Gemius Turkey Mateusz Gordon, International E-commerce Segment Manager, Gemius Pawet Mazurek, Regional Manager, Gemius Toms Panders, International Publishers Segment Manager, Gemius Vesna Zakarié, International Sales & Marketing Director, Gemius MARKET EXPERTS. Mustafa icil, former Google MEA Regional DirectorINTERESTED IN MORE KNOWLEDGE ABOUT ONLINE WORLD? CONTACT US! Gemius HQ ul. Postepu 18B 02-676 Warsaw Poland sales-hq@gemius.com phone: +48 22 378 30 59 Gemius Turkey Biiyiikdere Cad. Maya Akar Center 100-102 C Blok No:4 34394, Esentepe-Sisli, Istanbul Turkey contact@gemius.com.tr phone: +90 212 318 91 42/43