2008.01 digital landscape poland 2008
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DIGITAL LANDSCAPE: POLAND
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Polishinternet market accelerates
I edItIon, january 2008
online advertising v e-commerce v Biggest internet players v Western investors v Market drivers and constraints
Digital lanDscape: polanD
DIGITAL LANDSCAPE: POLAND
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In brief.........................................................................................................................................................................................................................................03
1. Poland at a glance ..................................................................................................................................................................................... 04 1.1.Internet.penetration ....................................................................................................................................................................... 04.1.2.Internet.users...............................................................................................................................................................................................04.1.3.Online.advertising...............................................................................................................................................................................04
2. Market overview: biggest players................................................................................................................................ 05 2.1.Advertising.bureaus.and.advertising.networks..................................................................................05.2.2.Biggest.online.players....................................................................................................................................................................06.2.3.Interactive.advertising.agencies...................................................................................................................................10
3. E-commerce.............................................................................................................................................................................................................12 3.1.Online.auction.platforms..........................................................................................................................................................12.3.2.Online.shops..................................................................................................................................................................................................12.3.3.Polish.online.shopper.....................................................................................................................................................................14.3.4.Threats.and.concerns.......................................................................................................................................................................18
4. Market trends in brief............................................................................................................................................................................19 4.1.New.surge.of.foreign.investments.............................................................................................................................19.4.2.Going.public...................................................................................................................................................................................................21.4.3.Investment.frenzy.................................................................................................................................................................................21.4.4.Interesting.facts........................................................................................................................................................................................21
5. Getting started: setting up a company in Poland.............................................................................22 5.1.Types.of.business.activity.........................................................................................................................................................24.5.2.Tax.and.inspections............................................................................................................................................................................24.5.3.Competitive.landscape................................................................................................................................................................25
6. Views on Poland...............................................................................................................................................................................................26
7. About Internet Standard ................................................................................................................................................................28
Table of ConTenTs
DIGITAL LANDSCAPE: POLAND
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In briefThis.first.edition.of.Digital Landscape: Poland.report.is.the.most.comprehensive.study.prepared.by..a.leading.online.magazine.Internet.Standard..It.gives.a.unique.overview.of.the.Polish.internet.industry,.showing.major.market.players,.current.and.future.investment.plans,.and.online.adspend.forecast..Covering.advertising,.e-commerce.as.well.as.ways.of.starting.a.business.in.Poland,.this.report.is.an.indispensable.study.for.anyone.interested.in.finding.out.more.about.investment.opportunities.in.the.country..Digital Landscape: Poland.gathers.investors.and.industry.leaders’.comments.on.the.country’s.development,.providing.a.fresh.view.on.the.latest.issues..
DIGITAL LANDSCAPE: POLAND
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1. Poland aT a glanCe
Poland,.member.of.NATO.(since.1999).and.the.European.Union.(since.2004),.has.a.population.of.about.38.million.people..Gross.domestic.product.per.capita.in.Poland.was.estimated.to.be.16,500.USD.in.2007..According.to.the.European.Commision.the.level.of.economic.growth.in.the.country.was.forecast.to.reach.6.1%.in.2007.
Warsaw.and.Cracow.are.two.main.cities.where.internet.companies.have.their.headquarters..More.and.more.online.business.appears.in.Wroclaw.(south-west.of.the.country).and.Gdansk.(north.part.of.the.country).
Internet penetrationAccording.to.SMG/KRC.NetTrack.research,.internet.penetration.in.Poland.was.around.42%..That.means.there.were.12.8.million.internet.users.(over.15.years.old)..Another.research.provider.Gemius/PBI.estimated.that.there.was.in.fact.a.population.of.14.09.million.users.in.the.country.(May.2007).
Internet penetration rate in Poland in Q2 2007 was 42%
Eurostat’s.latest.available.data.on.broadband.penetration.in.Europe.comes.from.July.2006..At.that.point,.broadband.penetration.rate.in.Poland.was.only.3.9%.compared.with.16.5%.average.in.the.European.Union..That.number.most.probably.increased.in.2007..Thanks.to.bitstream.access.the.competition.on.the.ISP.market.is.increasing..According.to.Eurostat,.in.January.2007,.53%.of.Polish.companies.had.broadband.internet.accesss,.when.average.in.European.Union.is.77%.
According.to.UKE.(Urząd.Kontroli.Telekomunikacji.–.Telecommunication.Ministry).there.were.1.7.million.
broadband.connec-tions.(above.144.kb/s).in.October.2006.
Internet usersThere.is.about.the.same.number.of.male.(50.8%).and.female.(49.2%).users..Young.people.(15-24.years.old).form.the.largest.group.of.internet.users..Those.who.are.60.years.old.or.more.represent.only.2.1%.of.the.Polish.internet.population.
Polish.users.are.generally.well.edu-cated..26.6%.of.them.have.university.degree,.41%.-.have.completed.their.A.levels.
Over.two.thirds.of.Polish.users.surf.online.every.day.or.almost.every.day..They.go.online.mostly.at.home.(79.4%).
64,8% of Polish users go online every day
online advertisingInteractive.Advertising.Bureau.Polska.(IAB.Polska).estimates.that.in.2006.internet.advertising.market.was.worth.215.million.PLN.(60.million.EUR),.excluding.search.adverstising..Unfortunately,.Google.does.not.disclose.its.revenues,.which.makes.the.process.of.estimating.the.value.of.the.market.quite.difficult..Nevertheless,.IAB.Polska.prompted.that.paid.search.advertising.could.have.been.worth.60.million.PLN.(16.6.million.EUR).in.2006..That.makes.a.total.market.value.of.275.million.PLN.(76.million.EUR),.which.means.that.internet.advertising.has.
more.than.5%.of.all.media.adspend.in.the.country.
IAB.Polska.forecasts.that.in.2007.internet.adspend.reached.305.million.PLN.(84.5.million.EUR).and.search.engine.marketing.revenues.rose.up.to110.million.PLN.(30.5.million.EUR)..According.to.these.estima-tions.online.market.was.worth.415.million.PLN.(around.115.million.EUR).in.2007.
Polish internet advertising market in 2007 is estimated to be worth 115 million eUR
Online.market.grows.dynamically.at.a.pace.of.50%.per.year.and.it.is.the.fastest.growing.sector.among.all.media.
DIGITAL LANDSCAPE: POLAND
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2. MaRkeT oveRvIew: bIggesT PlayeRs
Google.is.the.most.popular.website.in.Poland.(it.is.visisted.by.77%.of.Polish.users.every.month)..The.second.most.popular.internet.destination.is.Onet.pl,.a.web.portal.owned.by.a.large.media.group.ITI.
Gazeta.pl,.owned.by.Agora,.is.the.most.popular.newspaper-based.website.with.a.monthly.coverage.of.around.42%.
When.it.comes.to.the.numer.of.page.views,.it.is.Allegro.pl.which.generates.the.highest.numbers..Allegro.(an.auction.platform).is.owned.by.Tradus.(former.QXL.ricardo).
Fotka.pl.-.a.social.networking.and.dating.website.–.has.gained.a.lots.of.popularity.recently.and.generates.more.than.2.billion.page.views.per.month.
In.terms.of.time.spent.on.the.website,.Google.pl.and.Onet.pl.lead.the.way.in.the.rankings.
Polish.most.popular.instant.messenger.is.Gadu-Gadu,.owned.by.Gadu-Gadu.S.A..(a.company.listed.on.the.Warsaw.Stock.Exchange)..Gadu-Gadu.is.used.by.round.6.million.people.monthly.
advertising bureaus and advertising networksThere.are.quite.a.few.advertising.networks.and.advertising.bureaus.operating.in.Poland...We.are.presenting.some.of.them.
Ad.net.Ad.net.was.one.of.the.first.Polish.internet.advertising.networks,.established.in.2000..It.is.a.part.of.Internet.Group.S.A..holding..From.the.very.beginning.Ad.net.was.focused.on.incorporating.new.technologies.and.empowering.their.technological.capabilities..After.being.very.successful.in.Poland,.they.decided.to.expand.their.business.in.Latvia,.Lithuania.and.Estonia..They.claim.to.have.9.74%.share.of.the.Polish.market..Ad.net.was.
awarded.Media&Marketing.Best.Internet.Sales.Department.Award.for.three.times.in.a.row..Currently.there.are.500.websites.in.their.portfolio..Ad.net.employs.28.people..
ARBOmedia Polska ARBOmedia.Polska.is.one.of.the.biggest.internet.advertising.networks.in.the.country..It.gathers.round.300.websites.(with.a.reach.of.11.7.million.of.unique.users.according.to.Megapanel.PBI/Gemius.2007)..Their.portfolio.consists.mainly.of.entertainment,.music.and.games.websites.targeting.young.internet.users..In.cooperation.with.one.of.the.global.online.advertising.networks.–.Oridian.-.ARBOmedia.Poland.facilitates.ads.for.English-language.business,.sports.and.youth.websites.
ARBOmedia.Poland.was.founded.in.2002..The.acquisition.of.one.of.their.rivals.–.Qnet.-.was.a.turning.point.in.company’s.history.which.provided.them.with.a.bigger.online.reach.than.the.main.web.portals.had..In.2005.ARBOmedia.Poland.introduced.its.own.product:.double.billboards,.which.is.one.of.the.most.popular.online.ad.formats.in.Poland.now..
BizOn Media.BizOn.media.works.as.a.business-focused.advertising.network.in.Poland.specializing.in.targeting.entrepre-neurs.The.company.is.relatively.new.and.was.founded.in.2006..It.has.a.reach.of.2.6.million.users..They.gather.45.high-profile.websites..BizOn.media.has.been.developing.its.direct.sales.department,.but.still.its.core.clients.
DIGITAL LANDSCAPE: POLAND
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are.the.biggest.Polish.media.houses..Since.its.foundation,.over.a.year.ago,.the.company.has.launched.over.500.campaigns.
IDMnet IDMnet.was.established.in.1997.and.was.the.first.online.advertising.network.in.the.country..They.gather.over.140.websites.and.are.able.to.reach.over.5.5.million.users..
IDMnet.uses.DoubleClick.adservers..They.specialize.in.building.advertising.strategies.and.search.marketing.campaigns.
biggest online playersThere.are.thousands.of.internet.firms.operating.in.Poland..We.decided.to.present.only.those.which.are.perceived.as.one.of.the.biggest.on.the.market.and.which.investors.will.most.probably.hear.about.while..considering.their.expansion.in.Poland.
Google Polska Google.was.founded.in.the.USA.in.1998.and.developed.rapidly,.outpacing.top.internet.companies.and.becoming.the.world’s.most.popular.search.engine..The.key.to.Google’s.success.is.quality.and.relevance.of.information..Polish.users.appreciate.Google.search.engine.-.it.is.the.most.popular.website.in.the.country..That.was.one.of.the.reasons.why.the.company.decided.to.open.its.office.in.Warsaw.in.January.2006..In.2007.Google.established.a.R&D.centre.in.Krakow.and.an.innovation.centre.in.Wroclaw.(Poland).
Grupa Onet.pl S.A. Grupa.Onet.pl.runs.Poland’s.biggest.web.portal.-.Onet.pl..and.also.provides.various.media.and.communication.services..Grupa.Onet.pl.is.part.of.the.leading.Polish.media.group.–.Grupa.TVN.(TVN.S.A.,.TVN.is.listed.on.Warsaw.Stock.Exchange)...Onet.pl.is.a.pioneer.in.the.income.diversification.among.Polish.web.portals..It.generates.revenues.from.
advertising,.paid.content.services,.email.and.hosting,.auction.platform,.community.sites,.telecommunication.services..Onet.pl.is.estimated.to.have.37%.of.total.market.share.in.Poland..It.is.also.one.of.the.strongest.brands.in.the.country.
Wirtualna Polska (WP) Wirtualna.Polska.is.the.second.biggest.and.the.oldest.web.portal.in.Poland,.part.of.Telekomunikacja.Polska/.France.Telecom.Group..It.provides.a.multime-dia.and.telecommunication.platform.offering.news,.entertainment,.finance.services,.blogs,.chatrooms,.e-business.solutions.and.free.e-mail..
In.2006.WP.launched.internet.TV.(wptv.wp.pl).–.the.biggest.multimedia.project.in.Polish.internet..In.2007.WP.started.to.operate.as.MVNO.(Mobile.Virtual.Network.Operator)..WP’s.monthly.average.reach.is.62%.(H1’07).
Allegro.pl / QXL Poland Allegro.is.the.biggest.auction.platform.in.the.country.run.by.Polish.offices.of.British.holding.Tradus.(former.QXL.ricardo).which.was.acquired.by.Naspers,.a.South.African.media.company,.in.December.2007...For.the.year.ended.31.march.2007.Tradus.generated.36.43.million.GBP.revenues.(vast.majority.of.it.came.from.Eastern.Europe)..British.holding.owns.not.only.Allegro.but.also.PayBack.(which.runs.Payback.pl,.otomoto.pl,.otodom.pl).and.Ceneo.S.A..(which.runs.a.price.compari-son.site.Ceneo.pl).
Interia.pl SA Interia.pl.runs.one.of.Poland’s.biggest.web.portals..The.firm.was.established.in.1999.as.a.result.of.an.online.joint.initiative.of.IT.and.technology.producer.-.ComArch.S.A..-.and.a.radio.station.RMF.FM..In.December.2000.Interia’s.stock.was..allowed.to.public.
DIGITAL LANDSCAPE: POLAND
trading.and.since.February.2001.the.firm.is.listed.on.Warsaw.Stock..Exchange..In.December.2007.Bauer.Media.Invest.GMBH.bought.the.majority.of.Interia’s.shares,.taking.control.of.the.company.
Internet.advertising.sector.is.the.main.area.of.the.company’s.activity..The.rapid.growth.that.can.be.observed.in.that.sector.is.taking.place.mostly.at.the.expense.of.other.media.existing.on.the.market..
Interia.pl.is.the.third.biggest.internet.portal.in.Poland.in.terms.of.reach.
O2.pl sp. z o. o. O2.pl,.established.in.1999,.is.an.owner.of.o2.pl.web.portal,.which.offers.free.email.services.and.an.instant.messen-ger.(Tlen.pl)..The.company.claims.to.have.7.million.registered.email.accounts.and.1.5.million.instant.messenger.users..Tlen.pl.messenger.and.Tlenofon.(VoIP.product).have.won.the.Gold.Computer.2005.competition.organized.by.Computerworld..O2.pl.is.the.fourth.fastest.developing.technol-ogy.company.in.Central.Europe.according.to.the.2006.and.2007.Deloitte.ranking.
Agora S.A. (owner of Gazeta.pl).Agora,.one.of.the.biggest.media.companies.in.Eastern.Europe,.owns.a.web.portal.Gazeta.pl,..Gazeta.Wyborcza,.one.of.Poland’s.most.popular.dailies.and.Metro.-.a.free.newspaper..Agora.Group.also.runs.AMS,.the.outdoor.advertising,.two.local.radio.stations.Zlote.przeboje.and.Roxy.FM,.a.cross.regional.radio.station.TOK.FM.as.well.as.manages.13.magazines..
Agora.was.establshed.in.1989..Since.1999.it.has.been.listed.on.the.stock.exchange.in.Warsaw.and.in.London.
Gazeta.pl.is.visited.by.5.2.million.users..Agora’s.two.thematic.vortals,.GazetaP-raca.pl.(recruitment.website).and.GazetaDom.pl.(real.estate.website).are.one.of.the.most.popular.websites.in.their.categories..GazetaWyborcza.pl.is.one.of.the.largest.online.newspapers.in.Poland.
Gadu-Gadu S.A. Established.in.2000,.Gadu–Gadu.S.A..is.a.company.which.provides.telecommu-nication.and.communication.services.as.well.as.multimedia.and.social.networking.websites..Gadu–Gadu.instant.messenger.is.regarded.as.the.
most.popular.tool.in.the.country.(even.to.that.extend.that.user’s.ID.has.the.same.importance.as.a.telephone.number.or.email.address)..Gadu.Gadu.launched.social.networking.commu-nity.MojaGeneracja..pl,.Gadu.Radio,.VoIP.services.Gadu.naGłos,.microblog-ging.Blip.pl.and.education.portal.Nauka.pl..
Gadu.Gadu.S.A..employes.round.one.hundred.people..In.the.first.three.quarters.of.2007.Gadu-Gadu.S.A..generated.14.370.000.PLN.(3.98.million.EUR).net.income.and.5.153.000.PLN.(1.42.million.EUR).net.profit..
The.company.is.listed.on.Warsaw.Stock.Exchange.[GGU]..In.December.2007.South.African.media.company.Naspers.bought.the.majority.of.shares.of.Gadu.Gadu.SA..
Interaktywna sp. z o. o. (owner of Fotka.pl) Interaktywna.sp..z.o.o.,.established.in.February.2001,.runs.Fotka.pl.and.other.websites.including.auction.platform..Fotka.pl.employs.36.people.in.three.offices:.in.Warsaw,.Elblag.and.Gliwice..It.is.the.biggest.community.website.in.Poland.with.5.5.million.registered.users..The.company.broke-even.a.few.years.ago..The.forecast.of.their.income.for.2007.was.over.4.5.million.PLN..Accord-ing.to.Alexa.com,.Fotka.pl.is.5th.popular.website.in.Poland.and.86th.worldwide.
IDG Poland S.A. (owner of IDG.pl, Computerworld.pl, Pcworld.pl, InternetStandard.pl, NetWorld.pl) IDG.Poland.S.A..is.a.Polish.subsidiary.of.American.publishing.office.International.Data.Group..It.runs.IDG.pl.-.the.biggest.IT/new.technologies.webportal.in.the.country..IDG.pl.also.owns:.PcWorld.pl.–.webportal.dedicated.to.PC.users..InternetStandard.pl.–.leading.internet.industry.magazine,.Gamestar.pl.-.computer.games.website,.Computer-world.pl.–.portal.dedicated.to.IT.special-ist,.and.dozens.of.others..Internet.
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DIGITAL LANDSCAPE: POLAND
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DIGITAL LANDSCAPE: POLAND
Standard,.part.of.IDG.Poland.S.A.is.also.a.popular.conference.organizer..Business.conferences.attract.hundreds.of.businessmen.in.the.country.
IDG.Poland.S.A..also.publishes.B2B.IT.magazines.(CMO,.CXO,.CIO,.NetWorld,.Computerworld).and.B2C.magazines.(PC.World.Komputer,.Computerworld,.Kino.Domowe.Magazyn.DVD)..
IDG.pl.Group.is.visited.by.3.million.users.monthly.what.makes.it.one.of.the.20.most.popular.destinations.among.Polish.internet.users.
Travelplanet.pl Travelplanet.pl.is.a.countrywide.internet.travel.agency.listed.on.Warsaw.Stock.Exchange..It.is.a.member.of.the.Polish.Chamber.of.Tourism..The.Travelplanet.pl.Group.runs.also.Aero.pl..(airplane.tickets.provider),.Hotele24.pl.(hotel.booking.provider).and.TravelPass.Polska.(a.firm.distributing.Travelplanet.pl.vouchers)..
Gemius S.A. Gemius.S.A..is.the.largest.online.research.agency.in.Central.and.Eastern.Europe..The.company.has.been.providing.online.market.analysis.since.1999..In.2004,.Gemius.started.operating.in.Czech.Republic.after.wining.a.tender.for.internet.audience.measurement.services..Later.Gemius.continued.its.expantion.in.Central.and.Eastern.Europe.launching.its.branches.in.Slovakia,.Hungary,.Ukraine,.Lithuania,.Latvia,.Estonia,.Romania,.Slovenia,.Croatia,.and.Bulgaria..In.2006,.Gemius.entered.Russian,.Dannish.and.Austrian.markets.
Grupa Pracuj Grupa.Pracuj.runs.recruitment.and.education.websites.in.Poland.and.other.countries.in.CEE..(Polish.recruit-ment.site.Pracuj.pl.and.Ukrainian.Rabota.ua,.Edu.pracuj.pl.targeting.specialists.and.Edulandia.pl.targeting.students)..Grupa.Pracuj.has.also.organized.Virtual.Job.Fair.and.Virtual.Education.Fair.it.is.a.founding.member.of.The.Network,.the.largest.alliance.of.
independent.recruitment.sites.with.websites.from.60.different.countries.
Grupa.Pracuj.employs.190.people.working.in.the.central.office.in.Warsaw.and.in.regional.offices.located.in.Bydgoszcz,.Gliwice,.Krakow,.Lodz,.Poznan,.Sopot.and.Wroclaw..In.2007.Grupa.Pracuj.was.recognized.as.the.twelfth.fastest.growing.IT.company.in.Central.and.Eastern.Europe,.and.one.of.the.500.fastest.growing.IT.compa-nies.in.Europe.
Money.pl Money.pl,.established.in.1997,.is.one.of.the.most.popular.Polish.financial.web.portals.with.nearly.2.million.users.every.month..It.provides.news.and.commen-tary.on.finance,.law,.labour.market,.real.estate,.business.and.politics..In.2006.Money.pl.generated.a.net.profit.of.nearly.1.3.million.PLN.(360.thousand.EUR);.with.revenue.of.11.million.PLN.(3.million.EUR),.which.means.that.during.five.years.(2001-2005).portal’s.revenue.increased.by.1428%..Money.pl.was.on.the.7th.position.in.the.ranking.of.the.most.dynamically.developing.compa-nies.in.the.Central.Europe.(“Technology.Fast.50”.by.Deloitte)..
In.2006,.a.German.publishing.house.Handelsblatt.(Verlagsgruppe.Han-delsblatt),.member.of.Georg.von.Holtzbrinck.media.group.became.Money.pl’s.strategic.investor.
Currently,.the.company.employs.over.60.people..It’s.based.in.Wroclaw,.but.part.of.the.team.works.in.Warsaw.as.well...
TOP DIGITAL MEDIA AGENCIES IN POLAND
Fastbridge http://www.initiative.pl
Beyond.Interactive http://www.gobeyond.pl/
Starcom.Next http://www.next.starcom.com.pl/
ZED.Digital http://www.optimedia.com.pl/
MRM.Worldwide http://www.mrm.pl/
OMD.Digital http://www.omd.pl/
ACR http://www.acr.pl/Source: Internet Standard
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DIGITAL LANDSCAPE: POLAND
Bankier.pl S.A. Bankier.pl.S.A..is.one.of.the.leading.media.companies.focused.on.finanse.sector..It.runs.Bankier.pl,.a.web.portal.providing.financial.informa-
tion.on.personal.funds,.investing,.capital.markets.and.financial.products..Bankier.pl.gives.its.users.an.access.to.a.current.stock.ex-change.quotes,.experts.analysis,.
calculators.and.comparisons.of.financial.products.offered.by.nearly.50.financial.companies.
The.Bankier.pl.Group.owns.six.web.portals:.Bankier.pl,.Twoja-Firma.pl,.PIT.pl,.VAT.pl,.PRNews.pl.and.Mojeauto.pl.(with1.73.million.unique.users)..
Since.June.2006.Bankier.pl.S.A..has.been.listed..on.the.Warsaw.Stock..Exchange.
Grono.net Grono.net.is.an.invitation-only.community.service.which.gathers.groups.of.friends.and.families.(over.1.3.million.registered.users)..Users.can.load.pictures.or.video.onto.their.profiles.and.the.website.has.currently.over.15.million.pictures..Grono.net.is.available.in.Polish,.English,.Spanish,.French,.German.and.Italian.language.versions.
In.September.2007,.Intel.Capital.announced.its.plans.to.invest.in..Grono.net..The.firm.employs.over..60.people..
MCI Management MCI.Management.is.an.investment.group.managing.venture.capital.and.private.equity.funds,.including:.TechVentures’99,.TechVentures’03,.MCI.BioVentures,.MCI.EuroVentures.and.MCI.SuperVentures..It.has.been.listed.on.the.Warsaw.Stock.Exchange.(with.present.market.cap.around.1.billion.PLN).since.February.2001..MCI.Management.SA.specializes.in.investments.within.the.region.of.Central.and.Eastern.Europe..It.mainly.invests.in.innovative.companies.operating.in.the.area.of.internet,.mobile.telephony,.e-commerce,.wireless.technologies,.software,.IT,..biotechnology/life.science.and.media.
Merlin.pl S.A..Merlin.pl.is.one.of.the.oldest.and.biggest.online.shops.in.Poland.
TOP POLISh INTERACTIVE AGENCIES
NAME WEB ADDRESS
180.Heartbeats http://www.180heartbeats.pl/
Adv.pl http://www.adv.pl/
Ars.Thanea. http://www.arsthanea.com/
Artegence. http://www.artegence.com
BeeStudio. http://www.beestudio.pl/
Byss. http://www.byss.pl
Click5. http://www.click5.pl
Conecto. http://www.conecto.pl/
Cookie. http://www.cookie.pl/
Digital.One. http://www.digitalone.pl/
Emarketing.Experts. http://www.emarketingexperts.pl/
Engine. http://www.engine.pl/
FFCreation. http://www.ffcreation.com/
Genero. http://www.genero.pl/
Hint.Intermedia. http://www.hintintermedia.com/
Honki. http://www.honki.pl/
HYPERmedia. http://www.hypermedia.pl/
Insignia. http://www.insignia.pl/
Internet.Designers. http://www.id.pl/
Isens. http://www.isens.pl/
Janmedia. http://www.janmedia.pl/
K2.Internet. http://www.k2.pl/
Madonet. http://www.netizens.pl/
Max.Weber. http://www.maxweber.com/
Media.Ambassador. http://www.mediaambassador.pl/
MindChili. http://www.mindchili.pl/
MRM.Worldwide. http://www.mrm.pl/
Netarena. http://www.netarena.pl/
Opcom. http://www.opcom.pl/
OS3.Multimedia. http://www.os3.pl/
Pro-Creation. http://www.pro-creation.pl/
Zjednoczenie.com. http://www.zjednoczenie.com.pl/
Source: Interaktywnie.com, own
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DIGITAL LANDSCAPE: POLAND
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(operating.since.April.1999)..It.mainly.sells.books,.films,.music,.games,.computer.programs.and.toys..It.is.visited.by.round.100,000.users.every.day..In.2004.Merlin.pl.was.acclaimed.the.fastest.growing.company.in.Central.Europe.by.Deloitte.&.Touche..In.2005.Merlin.pl.launched.its.first.offline.shop..
NetSprint.pl Sp. z o. o. NetSprint.pl.runs.a.search.engine..The.company.was.established.in.2000.and.was.the.first.firm.which.introduced.the.top-notch.search.engine.technology.to.Polish.market..NetSprints’s.key.customers.and.partners.include.both.Poland’s.major.horizontal.portals.as.well.as.international.corporations..In.2004.the.company.was.ranked.seventh.in.Deloitte’s.Fast.50.ranking.of.the.fastest-growing.high-tech.companies.in.Central.Europe..In.2006.Orkla.Media,.a.Norwegian.media.
group.acquired.the.majority.of.NetSprint’s.shares.
SARE SARE.specializes.in.offering.e-mail.marketing.services.(e-mail.cam-paigns,.newsletters,.bulletins)..It.works.with.over.200.clients.(e.g..Media.Markt,.Siemens,.Kofola.Holding,.Danone,.Lexus,.G+J,.Bauer)..It.claims.to.be.the.largest.email.marketing.company.in.the.country.
Nasza-Klasa Sp. z o. o. Nasza-Klasa.pl.is.a.social.networking.website.(Polish.equivalent.of.Class-mates)..It.was.launched.in.November.2006.and.within.a.few.months.gained.an.enormous.popularity..At.the.end.of.2007.it.had.more.than.6.million.registered.users,.and.became.one.of.the.biggest.social.networking.websites.in.the.country..In.September.2007.European.Founders,.a.venture.
capital.firm.invested.a.few.million.PLN.in.Nasza-klasa.
This.list.of.the.companies.mentioned.above.certainly.does.not.exhaust.the.database.of.important.internet.firms.in.Poland..There.are.key.enterprises.in.the.region.like.Panorama.Firm.-.the.biggest.yellow.pages.website.in.the.country,.epuls.–.one.of.the.most.popu-lar..social.networking.websites,.Empik.com.–.online.shop.or.NetPress.Digital.-.electronic.publications.distributor..Future.editions.of.this.report.will.include.more.top.business.initiatives.in.the.country.
Interactive advertising agencies There.are.more.than.1000.interactive.agencies.in.Poland..We.present.just.a.few.top.ones,.according.to.Interakty-wnie.com.ranking.(pleace.see.the.table.”Top.Polish.Interactive.Agencies”)..
DIGITAL LANDSCAPE: POLAND
3. e-CoMMeRCe
According.to.the.estimates.released.by.Interactive.Advertising.Bureau.Polska,.from.2001.to.2006.Polish.e-commerce.market.grew.by.over.4500%..The.highest.growth.rate.was.seen.in.2000-2004.when.Polish.online.retail.trade.sales.increased.by.200%.per.year..The.value.of.the.market.in.2006.was.estimated.to.be.5.billion.PLN.(1.39.billion.EUR)..Online.auction.platforms.generated.3.billion.PLN,.online.shops.had.a.turnover.of.2.billion.PLN.(500.million.EUR)..Accord-ing.to.the.latest.estimations.pub-lished.by.Rzeczpospolita,.Polish.online.shops.and.auction.platforms.generated.8.billion.PLN.(2.22.billion.EUR).in.2007.
Polish.market.is.significantly.bigger.than.Irish,.Portuguese.or.Greek..In.2006.internet.sales.in.Austria.and.Denmark.were.comparable.to.Poland’s..Swiss.results.were.a.bit.lower.than.Polish.revenues..eMarketer.expects.that.over.the.next.five.years.European.e-commerce.market.will.grow.at.an.annual.growth.rate.of.25%..Central.and.Eastern.European.countries,.especially.Poland,.Czech.Republic.and.Russia.are.expected.to.be.a.driving.force.of.that.growth.at.the.beginning.of.the.next.decade.
In.2006.Polish.online.sales.for.the.first.time.exceeded.1%.of.total.domestic.retail.trade.value..According.to.the.Polish.Market.Review.(PMR).forecast,.in.2009.this.proportion.may.go.up.by.over.2%.
online auction platformsSince.2005.about.60%.of.Polish.e-commerce.sales.have.been.made.by.transactions.performed.on.auction.platforms...The.indisputable.online.auction.leader.in.Poland.is.Allegro.pl.
In.2006.the.total.value.of.completed.auctions.reached.2.5.billions.PLN.and..
for.three.quarters.of.2007.Allegro’s.total.transaction.value.was.already.10%.higher.than.total.results.for.2006..Although.Allegro.pl.is.still.perceived.as.an.auction.platform,.almost.80%.of.all.transactions.are.made.without.bidding;.the.reason.being.that.a.number.of.small.shops.(traditional.and.online.ones).treat.Allegro.pl.as.one.of.their.selling.channels..This.trend.will.be.even.more.prominent.in.the.future.
The.second.popular.auction.platform.is.eBay,.which.appeared.on.the.Polish.market.in.2005..In.2006.sales.reached.100.million.USD,.but.in.comparison.with.Allegro.pl.it.is.a.rather.poor.result..
Polish.eBay.managed.to.find.its.own.niche.–.thanks.to.the.integration.with.foreign.platforms,.and.users.can.buy.and.sell.goods.not.only.in.Poland.but.also.in.28.other.countries.
online shopsThe.catalogue.run.by.Sklepy24.pl.currently.contains.information.about.3,300.Polish.online.stores.divided.into.12.groups..Home.&.Garden.makes.the.largest.category;.there.are.another.four.significantly.big.groups:.Health.&.Beauty,.Gifts.&.Flowers,.Electronics.&.Photo.and.Computers..There.are.not.many.Polish.shops.selling.food,.only.a.few.from.77.listed.in.the.catalogue.
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DIGITAL LANDSCAPE: POLAND
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The value of the Polish e-commerce market in 2006 was estimated to be 8 billion PLN (2.22 billion EUR).
DIGITAL LANDSCAPE: POLAND
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offer.fresh.food.(e.g..Frisco.pl)..Apart.from.e-shops,.there.are.over.ten.online.travel.agencies.(e.g..Travel-planet.pl).and.financial.product.brokers.(e.g..Bankier.pl).on.the.market.
Not.many.Polish.online.stores.reveal.their.financial.results,.but.it.is.very.likely.that.those.who.decide.to.do.are.the.leaders..In.2006.Merlin.pl.gener-ated.the.biggest.revenues.in.Polish.B2C.e-commerce..Merlin.pl.is.one.of.the.oldest.online.shops,.which.sells.mainly.books,.music,.toys.and.electronics..Agito.pl.and.Hoopla.pl.offer.electronics.and.home.appliances,.Komputronik.pl.distributes.computers.and.computer.parts.whereas.Oponeo.pl.is.the.largest.Polish.online.store.with.tyres.and.car.accessories.
Few.years.ago.virtual.shopping.arcades.in.popular.web.portals.played.an.important.role.in.Polish.e-commerce..Now,.it.is.comparision.sites.that.have.become.the.sources.of.information.about.stores.offers.and.prices.for.the.growing.number.of.Polish.internet.users...The.most.popular.Polish.site.of.that.type.is.Ceneo.pl,.which.had.almost.1.7.million.unique.users.in.August.2007.(according.to.Megapanel.PBI/Gemius)..Ceneo.pl.currently.allows.to.compare..about..1.7.million.offers.from.700.shops..The.second.place.belongs.to.Nokaut.pl,..which.in.spite.of.significantly.bigger.catalogue.(4.million.offers.from.788.shops).is.a.bit.less.popular.
Polish online shopperAccording.to.data.published.by.Eurostat,.in.2006.one.in.eight.Poles.and.one.in.four.Polish.internet.users.did.their.online.shopping.at.least.once..This.proportion.places.Poland.on.17th..position.in.the.European.ranking,.next.to.Slovenia,.Czech.Republic.and.Slovakia.
A.slightly.higher.proportion.of.men.then.women.do.shopping.online..The.highest.discrepancy.occurs.in.the.age.group.of.25-34.and.in.the.income.groups.declaring.monthly.net.income.
DIGITAL LANDSCAPE: POLAND
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In 2006 one in eight Poles and one in four Polish internet users did their online shopping at least once.
DIGITAL LANDSCAPE: POLAND
higher.than.2.000.PLN.(550.EUR).
SMG/KRC.report.shows.that.in.2006.Polish.online.shoppers.bought.mainly.books.and.clothes,.then.mobile.phones,.computers.and.electronics..Compared.to.2005,.in.2006.significantly.more.shoppers.were.interested.in.car.accessories,.toys.and.children’s.accessories.as.well.as.airline,.train.and.bus.tickets.
Last.year.statistical.Pole.spent.47.dollars.on.online.shopping,.more.than.the.Greeks.or.the.Portuguese.but.still.considerably.less.than.average.citizens.in.Western.Europe..Statistical.resident.of.Denmark.(where.in.2006.e-commerce.sales.was.comparable.with.Polish.e-commerce.revenues).spent.seven.times.more.in.online.stores.than.a.Pole.
Polish.internet.users.pay.for.ordered.products.mainly.in.cash.on.delivery..Last.year.23%.of.orders.were.paid.by.cards.and.7%.-.by.other.forms.of.payment.(e.g..bank.transfers)..Poles.rarely.use.cards.because.they.are.concerned.about.security.or.do.not.have.a.card.allowing.them.to.pay.over.the.internet..In.2006.only.5.6.million.from.24.million.existing.cards.could.be.used.for.online.transactions.
Threats and concerns.At.the.beginning.of.2007,.one.third.of.respondents.(According.to.Gemius.Survey).claimed.that.the.biggest.problem.with.online.shopping.was.long.delivery.time..One.sixth.had.troubles.with.finding.products.and.one.eighth.complained.about.poor.customer.service..What.is.important,.it.that.nearly.a.half.of.respondents.experienced.no.problems.while.shopping.online.
Polish e-commerce in brieffrom �00� till �00� Polish e-commerce market grew by over ��00% The value of the market is estimated to be � billion Pln in �00� (�.�� billion eUr) online auction platforms generated � billion Pln in �00� (��0 million eUr)
DIGITAL LANDSCAPE: POLAND
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4. MaRkeT TRends In bRIef
Polish.internet.market.can.be.consi-.dered.a.mature.one.with.local.compa-nies.having.very.strong.market.positions..Although.foreign.big.players.start.their.operations.in.Poland.it.has.proved.difficult.for.them.to.outplace.local.firms.in.a.short.period.of.time..A.good.example.is.eBay,.which.entered.Polish.market.in.2005.and.is.still.behind.local.auction.platform.-.Allegro.pl..Allegro.is.the.4th.most.popular.destination.in.Poland.whereas.eBay.pl.remains.below.Top.20.
There.is.a.similar.situation.with.instant.messengers:.local.Gadu.Gadu.leads.the.way.attracting.more.than.5.million.users.per.month.whereas.Skype.still.remains.second.best.with.3.million.users.
The.only.example.of.sudden.and.undisputable.victory.is.Google.which.became.the.most.popular.website.in.Poland..What.is.interesting.is.to.observe.how.quickly.YouTube.com.is.climbing.up.through.the.popularity.rankings.(in.August.2007.it.was.the.10th.most.popular.online.destination.in.the.country)..It.is.worth.mentioning.that.Polish.language.version.of.YouTube.was.one.of.the.first.European.editions.
Google.provides.most.of.its.services.in.Poland,.including.Google.Docs.and.GMail..One.of.the.few.exceptions.is.Google.News,.still.not.available.in.local.language.version..Global.gigiant.has.even.decided.to.open.a.Research.&.Development.Centre.which.is.based.in.Krakow.as.well.as.client.service.branch.in.Wroclaw.
new surge of foreign investmentsWhat.created.a.lot.of.stir.on.Polish.market.recently.were.two.announce-ments:.both.MySpace.and.AOL.decided.to.open.their.offices.in.Poland..At.the.moment.MySpace.is.in.the.process.of.hiring.staff.for.marketing.and.content.management.departments..Interest-ingly,.MySpace.is.perceived.as.one.of.a.few.international.companies.which.stands.real.chances.of.conquering.Polish.market.
Other.international.social.networking.players.(Hi5.and.Bebo).are.trying.to.enter.Polish.market,.but.they.will.have.to.face.very.strong.competition..There.are.already.local.firms:.Fotka.pl.(with.more.than.3.million.users.a.month),.Moja.
DIGITAL LANDSCAPE: POLAND
POLISh INTERNET MARKET ACCELERATESMajor changes in 2007
January • Gazeta.pl.(Agora.S.A.).acquires.Wrocek.pl.-.a.social.networking.site.about.Wroclaw.city.
February • Bankier.pl.S.A.,.owner.of.the.financial.web.portal,.acquires.MojeAuto.pl,.car.classifieds.website..• Grupa.Onet.pl.S.A..acquires.blogging.site.Blog.pl.
March • Onet.pl.starts.to.sell.advertisements.on.its.portal.on.time.basis,.like.in.TV.• Gadu-Gadu.S.A.,.owner.of.Polish.most.popular.instant.messanger.goes.public......(IPO.at.Polish.Stock.Exchange.-.Gielda.Papierow.Wartosciowych).• Gemius.S.A.,.online.reasearch.firm.starts.its.operations.in.Romania.and.Bulgaria.• Gadu-Gadu.S.A.,.starts.operating.in.Ukraine.• German.Holtzbrinck.ventures.investment.fund.invests.in.Pixelate.Ventures,.owner.of.ePuls.pl.social.networking.site.
April • Onet.pl.launches.Zumi.pl.-.mapping.and.yellow.pages.site.• MCI.venture.capital.investment.fund.invests.1.5.mln.PLN.in.Netpress.Digital,.e-press.distributor.• TVN.Group.(one.of.the.biggest.private.TV.stations.in.Poland).launches.TVN24.pl,.news.site.run.by.more......than.40.editors.• Pino.pl.(social.networking.portal).acquires.Blogi.pl.(blogging.website).• Launch.of.Business.Angels.Seedfund..It.announces.to.spend.15-30.million.PLN.(4-8.million.EUR)......for.investing.in.start-ups.
May • Gadu-Gadu.S.A..acquires.Nauka.pl,.education.website.• Merlin.pl,.one.of.the.biggest.internet.shops,.acquires.Presco.Media.owner.of.e-cyfrowe.pl,.online.shop.with.digital.cameras.• Agora.announces.that.it.will.open.a.new.multimedia.newsroom.which.will.combine.exisiting.radio......and..internet.newsrooms.
June • Hoopla.pl.announces.that.it.will.debut.on.stock.exchange.(IPO).• Onet.pl.launches.Onet.TV,.video.website.• Google.launches.Polish.version.of.YouTube.• Gadu-Gadu.S.A..acquires.Blip.pl,.micro-blogging.website.• Onet.pl.S.A..announces.its.partnership.with.Opera.Software.
July • Research:.66%.of.Polish.internet.users.have.tried.shopping.online,.it’s.the.biggest.percentage.in.Eastern.Europe.• Wykop.pl,.Polish.start-up.based.on.DIGG.com.idea,.receives.600,000.PLN.fund.(around.165,000.EUR).• Launch.of.Polish.language.version.of.Bebo.com.• Pracuj.pl,.biggest.recruitment.website.in.Poland,..launches.Profeo.pl,.social.networking.site.for.employees,......a.competitor.to.Goldenline.pl.• Gadu-Gadu.S.A..acquires.Fora.pl,.a.discussion.website.
August • AOL.announces.that.it.will.open.Polish.version.of.its.portal.at.the.end.of.2007.• Wirtualna.Polska,.second.biggest.internet.portal.becomes.a.Mobile.Virtual.Network.Operator.(MVNO).• Gadu-Gadu.celebrates.its.7th.birthday.• Agito.pl,.an.e-shop,.announces.its.plans.of.initial.stock.offering.(IPO).
September • Tomasz.Lis,.one.of.the.most.influential.Polish.TV.journalists,.quits.his.job.at.TV.station.and.starts.his.TV-show.online.• Nasza-Klasa.pl.-.a.small.social.networking.service.with.a.very.dynamic.growth.rate,.receives.a.funding......of.a.few.million.PLN.• Agora.(owner.of.Gazeta.pl)..acquiers.BlogFrog.pl.-.a.blogs.search.engine.• Oponeo.pl.S.A.,.online.shop.with.tyres,.announces.that.it.will.debut.on.stock.exchange..• o2.pl.Sp..z.o.o.,.one.of.Polish.main.web.portals.announces.that.it.will.launch.8.new.sites.by.the.end.of.2007.
October • MySpace.Poland.announces.that.it.will.start.operations.in.next.few.months..It.starts.recruiting.for.Polish.offices.• G+J.company,.publisher.of.Polish.edition.of.„National.Geographic”.and.lifestyle.magazines.buys.Odyssei.pl,.....travel.website.• Wirtualna.Polska.introduces.behavioral.targeting.advertising.• o2.pl.Sp..z.o.o..launches.Pinger.pl,.micro-blogging.service,.which.is.a.direct.competitor.to.Blip.pl,.owned.by......Gadu-Gadu.S.A.• First.edition.of.Polish.MIXX.Awards.takes.place.(best.interactive.campaigns.are.awarded).
December • Bauer.Media.acquires.Interia.pl,.a.web.portal..Cost.of.acquistion.is.over.200.million.PLN.(55.million.EUR)• Agora.becomes.an.exclusive.partner.of.Bebo’s.social.networking.website.in.Poland.• AOL.starts.Polish.version.of.its.web.portal.-.AOL.pl• Naspers,.South.African.media.company.acquires.Tradus.PLC,.owner.of.Allegro.pl.for.1.9.billion.USD......(about.1.3.billion.EUR).• Naspers.buys.66.7%.shares.of.Gadu.Gadu,.Polish.most.popular.instant.messenger.
DIGITAL LANDSCAPE: POLAND
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Generacja.(with.more.than.2.million.users.a.month),.Nasza-Klasa.pl.(with.more.than.6.million.registered.users),.Grono.net.(with.more.than.1.million.users.a.month),.ePuls.pl.(with.round.600.thousand.users.a.month),.which.are.doing.very.well.and.which.may.prove.very.difficult.to.compete.with.
going publicMany.Polish.firms.made.public.offerings.in.2007..There.are.already.a.few.compa-nies.which.have.been.listed.on.the.stock.exchange.in.Warsaw.for.many.years.(Interia,.Agora)..Last.couple.of.years.has.shown.that.more.and.more.firms.find.stock.exchange.a.very.tempting.way.for.finding.new.resources.for.business.development..Hence,.Bankier.pl.S.A.,.Gadu-Gadu.S.A.,.Travelplanet.S.A..and.many.more.firms.went.public.
Investment frenzyIt.goes.without.saying.that.year.2007.should.be.called.”a.year.of.investments”..
The.amount.of.venture-capital.invest-ments.and.acquisitions.has.not.been.seen.in.Polish.market.before..There.are.many.traditional.firms.buying.small.and.medium.size.internet.companies.to.gain.market.advantage.or.online.entrepre-neurs.widening.their.portfolios.and.increasing.revenues.from.the.internet..There.is.also.more.seed.fund.initiatives.which.are.looking.for.promising.new.starters.(see.more.in.a.table.listing.major.events.in.Poland.in.2007).
Interesting facts: •..Main.web.portals.have.launched.
special.versions.of.their.websites.to.cater.for.Polish.immigrants.who.are.living.in.the.UK.and.in.Ireland
•..Polish.branch.of.MSN.has.only.one.employee
•..Most.of.main.Polish.web.portals.launched.their.own.society.gossip.websites.(eg.o2.pl.started.Pudelek.pl,.Gazeta.pl.runs.Plotek.pl.,.Interia.pl.owns.Pomponik.pl)
•..Fotka.pl,.a.local.social.networking.website,.has.more.than.2.billion.page.views
•..eBay.Poland.tried.two.times.to.outpace.local.competitor.-.Allegro.pl,.but.with.no.success.so.far
•..All.of.the.main.web.portals.have.TV/video.sites.
Year 2007 should be called ”the year of investments”. That amount of venture-capital investments and acquisitions has not been seen on Polish market before.
DIGITAL LANDSCAPE: POLAND
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5. geTTIng sTaRTed: seTTIng UP a CoMPany In Poland
It.will.be.an.exaggaration.to.say.that.Poland.has.become.a.titbit.for.investors.from.all.industry.sectors.but.when.it.comes.to.the.internet.it.goes.without.saying.that.the.online.market.attracts.more.and.more.foreign.capital..”The.perception.of.Poland.in.the.Western.world.has.changed,”.Chris.Modzelewski,.CEO.at.Emerging.Analysis.Corporation.said..Modzelewski.is.an.owner.of.Eastern.Europe’s.largest.online.media.research.agency.-.Gemius.-.and.was.one.of.the.early.investors.in.Polish.online.market..„Poland.is.no.longer.viewed.as.the.‘wild.post-communist.east’.where.only.big.risk-takers.go..Today,.Poland.is.an.extremely.attractive.location.for.investment.with.the.largest.domestic.market.in.the.CEE.region.(excluding.Russia),.tamed.inflation,.a.highly.educated.workforce.and.an.economy.growing.at.6.5%.annually,”.he.added.
There.are.quite.a.few.foreign.compa-nies.operating.in.Poland.already..In.1999.British.online.consumer.trading.platform.Tradus.(former.QXL.ricardo.plc).opened.a.Polish.branch.-.QXL.Poland.-.which.runs.the.leading.online.auction.platfom.Allegro.pl..In.the.last.quarter.of.2006.all.the.Tradus.invest-ments.in.CEE.brought.9.million.GBP.revenues.(the.vast.majority.of.them.came.from.Poland)..Tradus.employs.around.350.people.in.Poland.whereas.there.are.only.10.members.of.staff.in.the.UK.and.they.are.mainly.focused.on.controling.and.consolidating.financial.data,.PR.and.fullfilling.stock.listing.obligations.
At.the.end.of.the.90s..various.entrepre-neurs.(mainly.local.companies).invested.in.internet.firms.because.of.a.tempting.perspective.of.lucrative.profits.during.the.dot.com.boom..Another.big.surge.of.investments.in.Poland.appeared.in.2005.when.global.firms.started.opening.their.branches.in.CEE..Google.and.eBay.were.one.of.the.major.firms.which.settled.in.
Poland.then..”Many.Polish.users.who.had.already.used.American.or.German.online.auction.websites.sent.inquiries.to.eBay.head.quarters.asking.when.Polish.platform.was.due.to.be.open,”.Alina.Prawdzik,.country.manger.at.eBay.Poland.recalled..Poland.is.the.only.country.in.Central.and.Eastern.Europe.that.eBay.is.present.in.but.conquering.this.market.proved.to.be.a.hard.nut.to.crack..Although.eBay.claims.to.have.done.a.thorough.market.research.before.launching.a.Polish.platform,.it.is.clear.that.initially.they.underestimated.the.sophistication.and.competetive-ness.of.the.local.environment..2008.is.going.to.bring.more.interesting.
moves.on.the.Polish.market..Internet.gigants.like.Myspace.and.AOL.are.opening.their.offices.in.the.country.as.well.as.smaller.SEM.and.advertising.agen-cies.from.the.CEE.region..What.drives.big.and.small.businesses.there.is.the.market.potential..and.a.relatively.quick.return.of.investment.
Investing.in.Poland.has.become.much.easier.and.much.frequent.recently..The.Polish.Information.and.Foreign.Investment.Agency.(PAIiIZ).estimates.that.all.foreign.direct.investment.in.the.country.in.2006.was.at.an.all.time.high.of.14.7.billion.USD.(this.amount.covers.all.industry.sectors)..A.few.important.factors.attract.foreign.
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capital.to.Poland:.market.size,.rela-tively.low.employment.costs,.econom-ic.growth.and.the.availability.of.human.resources..
Types of business activityThe.process.of.opening.a.branch.in.Poland.has.been.modernised.since.Poland.entered.the.EU..In.August.2004.The.Economic.Freedom.Act.was.introduced.which.made.the.process.of.setting.up.a.business.easier.(thanks.to.cutting.down.the.number.of.documents.required)..However,.it.is.still.far.from.ideal.
Nigel.Adams,.managing.director.at.Nigel.Adams.&.Company.Ltd.who.has.been.working.with.Poland.since.1972.as.a.governmental.advisor.knows.perfectly.well.that.starting.a.business.in.Poland.means.going.through.a.lot.of.paper-work..What.one.has.to.be.prepared.for.is.a.large.number.of.documents.required.which.need.to.be.signed.and.stamped..”Most.British.directors.and.managers.feel.that.the.amount.of.red.tape.in.Poland.hampers.their.companies’.efficiency.and.leads.to.extra.costs,”.Nigel.Adams.said..Arjan.Bakker,.a.Dutch.businessman.who.runs.Polish.offices.of.Allegro.shares.this.view..In.his.opinion,.
the.procedures.should.be.shorter,.easier.and.friendlier.like.in.many.other.EU.countries.
”Registering.a.joint-stock.company.(‘spolka.akcyjna’).in.Poland.was.not.a.problem.per.se..However,.it.is.impor-tant.to.remember.that.the.process.is.much.more.difficult.than.in.the.United.States..In.America.I.can.register.a.company.in.less.than.24.hours.over.the.internet..In.Poland,.the.process.takes.at.least.one.month..But.if.one.is.under-standing.of.this.fact,.and.has.a.good.attorney.to.handle.the.formalities,.it.is.no.more.or.less.difficult.than.register-ing.a.company.in.any.other.country”,.Chris.Modzelewski.explained.There.are.initiatives.to.shorten.the.process.of.registering.a.firm.in.the.country..The.Polish.Information.and.Foreign.Investment.Agency.reveals.that.a.system.which.will.handle.submitting.online.applications.should.be.available.by.the.end.of.2008..It.should.definitely.speed.up.the.registration.process.
Investors.who.plan.to.start.a.business.in.Poland.are.provided.with.a.wide.choice.of.forms.of.business.activity:.civil.partnership.(spółka.cywilna),.registered.
partnership.(spółka.jawna),.limited.partnership.(spółka.komandytowa),.limited.joint-stock.partnership.(spółka.komandytowo-akcyjna),.professional.partnership.(spółka.partnerska),.limited.liability.company.(spółka.z.ograniczoną.odpowiedzialnością),.joint-stock.company.(spółka.akcyjna),.branch.office.(oddział),.representative.office.(przed-stawicielstwo).or.just.simply.an.entry.in.the.business.activity.register.(wpis.do.ewidencji.działalności.gospodarczej).
Jarosław.Chałas,.managing.partner.at.Chałas.and.Wspólnicy.chambers.prepared.a.useful.investor’s.guide.for.The.Polish.Information.and.Foreign.Investment.Agency.(the.document.which.gives.a.clear.overview.of.the.legal.procedures.and.provides.some.recommendations.is.available.here:.http://www.paiz.gov.pl/index/?id=4f8bc5ac1dc2b49434efe9e72f183de8)..According.to.Chałas.and.Wspóln-icy,.the.best.choice.for.large.firms.which.plan.to.operate.in.Poland.is.to.set.up.a.limited.liability.company.or.joint-stock.company.(there.is.an.entry.fee.of.1000.PLN.(277.EUR).and.a.requirement.of.50,000.PLN.(13850.EUR).initial.capital.contribution.if.one.is.interested.in.opening.a.limited.liability.company.or.a.500,000.PLN.(138500.EUR).contribution.for.a.joint-stock.company)..Those.who.would.prefer.to.limit.operation.costs.should.definitely.consider.starting.a.branch.or.a.representative.office.
Tax rates and inspectionsAll.entrepreneurs.need.to.apply.for.their.NIP.(taxpayer.identification.number).and.REGON.(statistical.number)..Another.important.step.is.to.register.with.the.Social.Insurance.Office.(ZUS)..Each.firm.is.obliged.to.pay.value.added.tax.(VAT).as.well.as.corporate.income.tax.(CIT)..CIT.has.gone.through.a.lot.of.changes.throughout.the.years,.dropping.its.value.from.27%.to19%..All.taxpayers.have.to.submit.a.monthly.tax.return.form.to.the.tax.office..Apart.from.the.monthly.reports.each.firm.has.to.send.a.final.tax.settlement.by.the.end.of.March.each.year.
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Smaller.entrepreneurs.can.take.adventage.of.„tax.credit”.which.means.that.they.are.entitled.to.income.tax.deferral.during.their.first.tax.year..What.is.also.tempting.is.a.relief.from.submitting.tax.returns.during.the.same.period.of.time..
From.time.to.time.entrepreneurs.may.expect.inspectors.to.come.to.their.firms..By.law.authorti-ties.cannot.carry.out.more.than.one.inspection.at.the.same.time.in.the.same.business..Such.visits.are.limited.–.inspectors.cannot.stay.longer.than.four.weeks.if.they.examine.smaller.or.medium.size.firms;.inspections.in.larger.companies.are.limited.to.eight.weeks.
Competitive landscapePolish.online.market.has.developed.organically.without.the.presence.of.Yahoo!,.AOL.or.MSN.in.its.early.years..Although.global.online.gigants.like.Google.or.eBay.have.started.operating.in.the.country.not.long.time.ago.it.was.not.as.easy.for.them.as.one.may.think.to.gain.high.market.positions..„The.most.dangerous.misstep.that.investors.may.take.is.underestimating.Polish.local.competitors,.or.(even.more.dangerously).underesti-mating.the.sophistication.of.the.Polish.consumer,”.Chris.Modzelewski.warned..Many.western.firms.forget.that.Polish.users.have.access.to.the.same.products.or.services.as.westerners..
Many.investors.confirm.that.competitive.landscape.makes.entering.Poland.just.as.difficult.as.entering.any.other.foreign.market.in.Western.Europe..„Like.any.country.in.Western.Europe.or.Asia,.entering.Poland.demands.creative.strategies.to.realize.the.country’s.potential,”.Modzelewski.added.
Alina.Prawdzik.who.runs.Polish.offices.of.eBay.knows.from.experience.that.users.expect.even.more.from.foreign.firms.than.from.local.ones..„Satisfying.Polish.consumers.is.possible,.but.it’s.not.an.easy.task,”.Prawdzik.stressed..That.is.why.it’s.best.to.dig.as.much.information.as.possible.about.local.competitors.before.facing.them.directly.
investment projects in central & eastern europe were particularly labour intensive. While central and eastern europe attracted only ��% of investment projects, they ben-efited from ��% of the new jobs created by foreign investors. This represented an average of ��� jobs per project, compared with �� jobs per project in Western europe. Poland was the largest creator of fDi jobs, with almost ��% of the total.eUroPeAn ATTrAcTiVeness sUrVeY, �00� bY ernsT & YoUnG
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Nigel AdamsManaging Director at Nigel Adams & Company Ltd, Visiting Lecturer at University of Buckingham, Great Britan
I.have.been.working.with.Poland.since.1972.and.lived.in.the.country.from.1993.until.2002.as.a.British.Govern-ment.“Know.How.Fund”.Management.Adviser,.so.I.have.seen.many,.many.changes..I.find.the.country.fascinat-ing.to.work.in.and.despite.many.years.of.experience,.I.always.tell.my.clients.that.they.should.“Expect.the.unexpected!”.I.also.warn.my.client.companies.to.expect.more.bureaucracy.and.more.regulations.than.in.a.British.company..However,.I.also.tell.them.that,.on.the.whole,.in.Poland.they.will.find.very.hospitable.people.who.are.great.to.work.with.
Most.British.directors.and.managers.feel.that.the.amount.of.“red.tape”.in.Poland.hampers.their.compa-nies’.efficiency.and.leads.to.extra.costs..In.addition,.the.need.to.report.and.pay.corporate.taxes,.and.VAT.monthly.is.an.extra.cost.they.think.should.be.removed..The.high.social.security.costs.and.the.very.strong.employment.regulations.were.accepted.when.Polish.labour.rates.were.very.low,.but.I.think.that.as.Polish.wages.are.increasing.significantly,.these.costs.and.regulations.will.not.encourage.future.investment.in.Poland.by.British.companies.
On.final.point,.the.British.will.never.get.used.to.the.need.for.all.documents.to.be.signed.and.“stamped”..This.is.just.not.necessary.in.Britain,.for.example.in.Britain.a.company.will.accept.a.commercial.order.over.the.phone.from.a.regular.customer,.by.accepting.an.“Order.number”..No.contracts,.signatures.or.stamps.are.needed!.
.
Massimo Burgio Co-chairman of the Global Committee at SEMPO, Founding Member of Sempo Europe, Sempo Latino and a frequent speaker at SES, Italy/USA
Poland.has.a.very.vibrant,.passionate.and.professional.community.of.online.marketers..I.have.always.observed.Polish.market,.especially.search.engine.marketing.sector.with.curiosity..The.early.presence.of.local.search.engines.used.by.millions.of.users,.as.well.as.local.web.
portals,.current,.well.developed.e-commerce.and.social.media.environment.are.all.signs.of.a.healthy.online.market..
There.are.a.lot.of.advantages.for.investors.in.the.CEE.region.and.I.cannot.see.any.major.constraints.of.its.development..The.language.fragmentation.of.the.CEE.countries.can.be.an.issue.and.can.make.it.difficult..to.decide.to.target.the.region.at.large.with.local.approach.....
Alain heureux, President of IAB Europe and IAB Belgium
I.think.that.Polish.Interactive.Advertising.Bureau.will.be.playing.a.role.of.a.“bridge”.
between.Eastern.and.Western.Europe..Broadband.and.technologies.are.not.always.there.yet.in.Poland.but.the.creativity.certainly.is..The.European.IAB.Network.is.gaining.more.value.thanks.to.Poland.
.
Jan JilekCSO at Xclaim.hr, Vice President at Interactive Marketing Association, Croatia
In.my.opinion.Poland.has.the.biggest.potential.in.CEE...I.believe.that.in.3.years’.time.Poland.will.jump.from.the.regional.avarage.to.the.first.place.in.terms.of.the.online.market.growth..The.only.thing.which.may.affect.its.development.is.a.slowing.growth.rate.of.an.internet.penetration..I.think.that.it.may.be.necessary.now.to.introduce.internet.to.the.rural.parts.of.the.country.to.maintain.current.pace.of.growth.
.
Martin KovacCountry Manger at ETARGET a.s., Slovakia
With.the.population.of.almost.40.million.people.Poland.is.the.strongest.and.the.most.
attractive.market.in.CEE..It.will.remain.the.biggest.player.in.the.region.having.overseas.money.shaping.its.development..
6. vIews on Poland
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Chris Modzelewski CEO at Emerging Analysis Corporation, owner of Eastern Europe’s largest online media research agency Gemius, one of the earily investors in Polish online market, USA
My.first.investments.in.Poland.were.in.1999.when.I.established.Gemius.(Central.&.Eastern.Europe’s.leading.internet.research.agency)..In.1999.Poland.was.a.much.stabler.location.for.invest-ment.than.in.1991.(when.I.first.visited.the.country),.but.I.still.saw.it.as.far.riskier.than.other.countries.I.could.invest.in..Today,.just.a.short.8.years.later,.Poland.is.an.entirely.different.country..The.rule.of.law.is.stronger.and.corruption.is.less.endemic.
The.Polish.internet.market.has.a.tremendous.potential..With.close.to.40.million.people,.dropping.internet.access.prices,.rapidly.growing.penetration.and.advertising.budgets.shifting.online,.Poland.is.one.of.the.most.attractive.internet.markets.in.Europe.today..Its.„potential”.-.which.from.a.western.perspective.can.be.seen.as.the.ability.to.generate.both.domestic.profits.and.provide.lower.costs.-.is.attractive.to.investors,.but.they.should.enter.the.market.with.open.eyes.and.be.very.sensitive.to.the.local.reality.
From.the.perspective.of.western.internet.players,.Poland.is.different..Poland’s.internet.industry.evolved.(at.least.in.its.early.years).in.its.own.local.reality..This.shaped.the.competitive.landscape.very.differently.than.what.many.western.players.would.expect.based.on.experiences.in.the.United.States.or.Western.Europe..Western.investors.considering.how.to.tap.into.Poland’s.internet.potential.should.bear.this.fact.firmly.in.mind.and.approach.the.market.respectful.of.Poland’s.suc-cesses.in.the.past.10.years.
Right.now.the.main.market.constraint.to.consider.is.the.competition.in.the.labour.sector..Poland’s.educated.workforce.and.especially.its.excellent.software.developers.are.highly.prized.by.high-technology.companies.from.around.the.world..This.combined.with.strong.domestic.macroeconomic.growth.is.driving.up.wages.and.competi-tion.for.the.most.talented.workers..While.this.benefits.Poland,.it.is.a.factor.that.investors.looking.at.Poland.have.to.consider.carefully..Why.should.someone.build.a.development.center.in.Poland.if.they’ll.have.to.recruit.staff.(or.open.another.center).in.Ukraine.to.find.talented.employees?
The.other.constraint.to.consider.when.investing.in.Poland.is.the.competitive.landscape..A.sophisticated.market.that.evolved.organically.without.significant.infusions.of.western.capital,.strategy.or.brands.has.a.very.different.competitive.landscape.than.some.westerners.might.expect..This.is.not.so.much.as.a.„constraint”.as.it.is.a.warning.to.investors:.if.you’re.going.to.invest.in.Poland,.do.your.homework.first.....Eric Urdahl, Head of International Business, AD Europe, Germany
Polish.online.market.is.the.most.important.one.in.CEE.in.terms.of.pan-European.online.campaigns.for.our.international.network.AD.Europe..We.have.been.experiencing.the.strongest.growth.rates.since.2005.
.Interest.in.Poland.has.grown.since.the.country.entered.the.EU..Poland.has.good.penetration.rates.and.broadband.cover-age..This.fuels.its.online.advertising.market.and.also.attracts.more.European.advertisers.
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7. aboUT InTeRneT sTandaRd
about the authors:
Michał GrzechowiakMichał.started.working.at.IDG.Poland.in.2007..Previously,.as.a.journalist.of.„Magazyn.Internet”,.a.Polish.magazine.for.internet.users,.he.used.to.cover.many.
aspects.of.the.web..In.Internet.Standard.he.focuses.on.writing.case.studies.on.Polish.online.firms.to.”E-biznes.od.kuchni”.(”E-business.uncovered”).section.as.well.as.providing.business.news..Apart.from.working.for.IDG.Poland,.Michał.studies.economics.at.University.of.Warsaw...E-mail: Michal_Grzechowiak@idg.com.pl
anna MellerAnna.joined.IDG.Poland.team.in.2000..At.the.beginning.of.her.career.she.worked.for.PC.World.Komputer,.covering.stories.on.artificial.intelligence,.new.online.trends.and.future.of.the.web..Later.(after.the.dot.com.bubble.burst).she.moved.to.Internet.Standard,.where.she.focused.on.the.business.aspects.of.the.internet..She.helped.to.revive.the.online.business.community.gathered.round.the.title..Anna.is.responsible.for.writing.reports.and.news..She.is.also.involved.in.organizing.Internet.Standard.businesss.conferences..Anna.studied.Polish.and.English.literature.and.linguistics.at.Gdansk.University.in.Poland..She.likes.jazz.music,.hiking.and.reading.books....Email: Anna_Meller@idg.com.pl
Piotr ZalewskiPiotr.has.been.working.as.an.online.editor.at.IDG.Poland.since.March.2006..He.mainly.covers.new.trends.and.business.aspects.of.the.internet..Piotr.is.responsible.for.
editorial.content.of.Internet.Standard..He.writes.news.and.articles,.and.also.helps.with.organizing.confer-ences..He.is.in.charge.of.the.development.of.the.new.design.of.magazine’s.website..Piotr.studied.social.psychology..He.is.interested.in.new.technologies,.media.and.skiing...Email: Piotr_Zalewski@idg.com.pl
Production team:
COVER.Grażyna.Stefek.
.DESIGN.
Anna.Karabon
DTP.Beata.Miętus
ChARTS.Adam.Sienkiel
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ADVERTISING Anna.Stando.Email:.Anna_Stando@idg.com.pl.Tel..+48.22.321.78.00
INTERNET STANDARD CONFERENCES Agnieszka.Świtkowska.Email:.Agnieszka_Switkowska@idg.com.pl
Internet standardInternetStandard.pl.is.a.leading.Polish.online.magazine.published.by.International.Data.Group.Poland.S.A...It.is.visited.by.more.than.200,000.users.monthly.(real.users,.Megapanel.Gemius/PBI),.among.them.there.are.top.internet.industry.leaders,.managers,.directors,.advanced.web.users..Internet.Standard.is.focused.on.business.and.social.aspects.of.the.internet..Online.magazine.runs.its.Online.Expert.Forum.and.business.conferences,.which.are.very.popular.in.the.country.
International data group International.Data.Group.(IDG).is.the.world’s.leading.technol-ogy.media,.events,.and.research.company..IDG’s.online.network.includes.more.than.450.web.sites.spanning.business.technology,.consumer.technology,.digital.entertainment,.and.video.games.worldwide..IDG.publishes.more.than.300.magazines.and.newspapers.in.85.countries.including.CIO,.
CSO,.Computerworld,.GamePro,.InfoWorld,.Macworld,.Network.World,..Internet.Standard.and.PC.World..IDG’s.lead-generation.service,.IDG.Connect,.matches.technology.companies.with.an.audience.of.engaged,.high-quality.IT.professionals,.influencers,.and.decision.makers..
Each.month,.over.80.million.unique.visitors.visit.the.more.than.450.websites.of.IDG’s.online.network..To.ensure.that.IDG.online.audiences.have.access.to.rapidly.updated.information,.IDG’s.online.network.is.supported.by.more.than.2,000.journalists.and.the.only.24-hour.global.technology.news.organization,.the.IDG.News.Service,.which.reports.the.latest.technology.news.from.its.bureaus.around.the.world..IDG.has.built.the.broadest.network.of.technology.content.online.and.reaches.more.technology.buyers.than.any.other.media.company..
IDG.produces.more.than.750.globally.branded.confer-ences.and.events.in.55.countries..Industry.leading.international.events.include.Macworld.Conference.&.Expo.and.LinuxWorld.Conference.&.Expo..IDG’s.LinuxWorld.events.are.now.found.in.nearly.20.countries.on.five.continents..Leading.conferences.include.CIO.100,.DEMO.and.IDC.Directions..IDG.produces.19.conferences.and.events.in.China.alone,.and.was.first.to.offer.expos.in.emerging.markets.throughout.Asia,.Eastern.Europe.and.Latin.America.
DIGITAL LANDSCAPE: POLAND
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