Hungarian Online Advertising Market Overview

13 April 2009 by Rabbit

Questions & Answers
1. How much is the internet penetration rate in your country? How many internet users does this mean daily/weekly/monthly? Internet penetration rate is 46% in Hungary (source: NRC/TNS), which means 2,8 million users 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 is the 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 the whole advertising cake, according to IAB Hungary Adex 2008. Within online ad spend the share of display ads is 63%, listing is 16%, email is 4% and paid search is 17%. Fastest growing segment 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 visited websites in your country? Is the online market dominated by the biggest players or smaller and 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 is approx. 65%. Beside them some mid-size players could succeed, e.g. Adaptive Media and Evo Media, that managed to realize the same share in ad revenues as in reaching the Hungarian users. The Top 30 most visited Hungarian sites: Site 1 iWiW 2 origo 3 Freemail 4 5 Startlap cover page 6 7 Nők Lapja c@fe 8 Vatera Aukció 9 10 myVIP UU (000) 2,664 2,468 1,973 1,791 1,133 1,126 1,069 1,025 987 942

RCH% 68.64 63.59 50.83 46.15 29.2 29.01 27.54 26.4 25.43 24.26

11 12 Figyelő Net 13 14 15 aukció 16 Velvet oldalak 17 18 Használtautó.hu 19 SZTAKI Szótár 20 IndaVideó 21 Informatika Tudomány 22 Prohardver Online 23 24 Story online 25 Há 26 27 28 29 30

888 813 801 754 726 675 643 617 603 591 581 558 519 518 516 507 503 498 480 479

22.88 20.94 20.63 19.44 18.69 17.39 16.57 15.89 15.55 15.24 14.98 14.39 13.38 13.34 13.29 13.07 12.95 12.82 12.36 12.35

Source: webAUDIENCE, 15+ internet population, January 2009 (monthly UU & reach) 4. Which are the biggest agencies on your online market; international networks or local agencies 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 in Hungary. Among independent agencies Arcus and Carnation are the most important. Market share and client list of the digital agencies are not public. 5. Which are the main sources of publicly available data concerning your local online market? Audited site measurement data on most visited sites is available on, or 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 price data) once in a year. Detailed data on Hungarian online advertising market is only available at my blog, with the permission of TNS MI.

6. What kind of online audience measurement solutions are generally accepted? (Which analyzing and/or planning softwares are attached to them?) Announcement of an online audience measurement tender is in progress. There are two competitors 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 on the Hungarian market (e.g. CEMP). Smart is a new player on the market, which has deals with Axel Springer and Inform Media. On the agency side, Gemius, Adverticum and DoubleClick are the most widely used ad servers. 8. Do local marketers frequently use more innovative solutions, such as social media, video and mobile advertising (beyond sms or mms), or behavioral targeting? None of these solutions have yet been matured on the Hungarian market, their usage is incidental and not prevalent. There aren’t any possibilities for behavioral targeting, unless agency ad server is capable doing it. On iWiW, the most visited Hungarian site, Facebook-like applications 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 programs exist. 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 2040%, 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 your country? 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 there are media planners, media buyers and campaign managers. At smaller agencies a media planner is in charge of planning, buying, managing the ad server and creating delivery reports.

13. Is it usual to go to media parties, getting presents and making friends among colleagues? Are conditions friendly disposed? Main media owners usually organize events, such as parties, gokarting, Sherlock Holmes investigating, tank driving… Sometimes a media buyer who realizes the most ad spend on a portfolio receives a present, e.g. a journey. But it’s quite rare. Giving presents for holidays is in fashion, but these gifts aren’t expensive things. It could be weird for a new entrant that people greet each other with a kiss on the face without knowing each other at all! And it seems that everybody is in great relationship with one another.

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