Smartphone adoption in Ireland is the main theme of the Winter 2011 issue of State of the Net. Also covered is broadband uptake, eGovernment, digital advertising, eCommerce and social media trends.

1. State of the Net
essential eBusiness intelligence for Irish managers www.amas.ie
A quarterly bulletin on online activity in Ireland ISSN: 1649 issue 23 Winter 2011
Mobilise your brand for the smartphone revolution
Smartphone ownership
are not optimised for mobile
and this can make otherwise
simple tasks, like making Smartphone owners
contact by phone or email or
finding a store, difficult. 741,000 Source: Behaviour
& Attitudes for
The non-availability of Return2Sender,
a mobile site can send
customers or prospects into
iPhone national survey
among 1,000
the arms of online competitors.
In the UK, online retailers
326,000 adults. June 2011
are estimated to be at a risk It should be
of losing 30% of potential
business by not having a Android noted that some
people have
Aileen O’Toole, more than one
Managing Director,
website that works on mobile
(source: IAB Rich Media Brand 219,000 device
AMAS Effectiveness Study July 2011).
With at least three-quarters
Likewise, email marketing
campaigns can fall flat if they
Other © AMAS graphic
(www.amas.ie)
of a million smartphone
owners in Ireland, it’s time
do not display well on mobile,
the preferred platform for
233,000
for mobile to become many smartphone owners to
a core component of access their email.
businesses’ marketing noticing the phenomenal shift That is set to change, as the
strategies. Such strategies Adoption to mobile. RTÉ has seen traffic scale of smartphone ownership
can be built on sound Led by the iPhone, and keen to its web services from mobile grows to levels where they
business case principles, competition between mobile devices increase from 15% to will overtake desktops within
but must recognise the operators, 2011 saw significant 40% within the last year. a few short years and as
challenges of reaching and strides in smartphone adoption marketers recognise the
engaging with audiences levels. Smartphone ownership Mobile marketing in Ireland effectiveness of campaigns
through a wide range of was estimated at 741,000 in appears to be several steps delivered via “always on”
gadgets and devices. June 2011, with the iPhone behind shifting consumer devices. Integrated with other
accounting for 326,000 of those behaviour and trends in other forms of advertising, there is
The first point of contact devices (source: Behaviour & markets. Brands are Male
62% certainly strong evidence that mobile
potential customers Attitudes for Return2Sender). By dabbling in different mobile delivers results – leads, sales,
can have with a brand It is reckoned that close on gender
formats, from QR codes and engagement and interaction.
38% Female
or a company is often five million apps have been SMS campaigns to mobile And all activity – response rates
through the browsers on downloaded in Ireland. display campaigns, but to and conversions – can be
their smartphones. The date do not appear to have easily tracked and analysed to
user experience can be Those who monitor the committed significant budget inform future campaigns.
somewhat grim – websites patterns of web traffic are to mobile.
Location-based
Nowhere is the power and
Smartphone
© AMAS graphic (www.amas.ie)
27% -24 the potential of mobile
ownership advertising more evident than
36% 25-34 with location-based services,
By 62% Male By where geo-targeting allows
29% 35-49 consumers opt in to receive
gender age
38% Female offers or services in their locality.
7% 50-64 Accessing local content
drives action, such as
Source: As above 1% 65+ Continued on page 4
27% -24
36% 25-34
By
Compiled by AMAS 29% 35-49
age in association with the Irish Internet Association
7% 50-64

2. 1. Broadband
Irish broadband penetration continues for the second quarter of 2011 stood dial-up modems were decommissioned
to grow, albeit at a slower rate, at almost 1.63 million, a healthy in the previous 12 months, with a year-on-
according to the latest quarterly annual increase of 8.3%. year fall in narrowband subscriptions of
research from ComReg. The total 55.8%. Cable broadband (such as from
number of broadband subscriptions More than half of the country’s UPC) enjoyed the highest growth level
of 32% to a total of 229,000 subscriptions,
1,700,000 1,628,362 followed by mobile at 14.8% to 584,000.
Broadband growth 1,591,803
1,600,000 1,518,349
1,624,503 While DSL broadband connections
00 4%
1,500,000 1,548,625 account for almost half of the market
1,509,934
1,400,000 1,443,350
(44.8%), it has experienced a moderate
1,305,035 yearly decline of -0.2%.
1,300,000 34% 1,272,166
80 45% 1,200,255 1,361,254
1,200,000 1,125,000
© AMAS graphic (www.amas.ie)
1,100,000
1,055,000
60 1,000,000
992,000
Source: ComReg Quarterly Key Data
Report, September 2011
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11
40 49%
2. Children online
46%Hours spent I don’t use the internet*
online per day Under 1 hour
20 1 to 3 hours Online activities
9% 3 to 5 hours
*N/A for primary
6% group 5+ hours
1% 4%
0
Primary Secondary / youth rounded
Percentages are
Social Chat to friends Check email Look up information Look up music, Hobbies/interests Games
100 4% networking sites for school projects videos etc shopping sites
Primary
group 40% 21% 19% 15% 14% 14% 13%
Secondary / 67% 37% 35% 28% 29% 24% 32%
34% youth group
80 45% © AMAS graphic (www.amas.ie)
Source: ISPCC, Children and the internet: “This will come back to bite us in the butt.” Published Oct 2011
Around half of Irish children and teenagers For the teenagers, the majority (56%) go
60 spend an average of one to three hours online from the family kitchen or sitting
online each day and many do so from their room, but 44% said that they accessed the
bedrooms, without parental supervision. internet from their bedrooms. Among the
These are some of the topline findings from primary group, 23% used the internet in
40 49% a survey that canvassed the views of more their bedrooms while slightly more than half
than 18,000 children and teenagers. the sample said that they used it from their
46% I don’t use the internet* kitchen or sitting room.
The large sample size was split into two
Under 1 hour
groups – primary students, who were The survey threw up some serious privacy
20 1 mainly aged 11, and secondary students
to 3 hours concerns. Nearly a quarter (24%) of the
and members of youth groups. Different older group indicated that they did not
9% 3 to 5 hours
usage patterns were recorded between use privacy settings, while over a third
6% 5+ hours groups, with a strong social media
the two (36%) of the younger group (primary) said
1% 4%
0 and communications bias among the they didn’t know how to keep their social
Primary Secondary / youth older group. network accounts private.

3. Top Trends
3. eGovernment 100%
eGovernment availability Full online availability in 2010
Full online availability in 2009
eGovernment is back on the agenda, with internet services 80%
© AMAS graphic (www.amas.ie)
from online voting registers to a new central portal for govern-
ment services being planned as part of public sector reforms. 60%
Where does Ireland stand in terms of eGovernment
40%
adoption? Quite well is the conclusion from a European
benchmarking study. Ireland was one of just six
European countries to achieve full online availability 20%
of key government services in 2010, according to the
latest European Commission data. Along with Austria, 0%
Italy, Malta, Portugal and Sweden, Ireland scored 100%
Estonia
Sweden
Slovenia
Ireland
Latvia
Italy
Portugal
*UK
Spain
Finland
Denmark
Germany
Norway
France
Lithuania
Hungary
Austria
Netherlands
Belguim
Malta
on 20 basic services.
Some 12 of the services, such as vehicle registration and *UK score dropped in 2010
health-related services, are aimed at citizens, while a further 35 37
eight, such as corporate tax and environmental permits, are 30
targeted at businesses. The services were measured against 32
29
25 71% EU Average 2009
27 Source: Digitizing Public
two indicators: full online availability and level of sophistication.
20 Services in Europe; 9th
Benchmark Measurement;
Eurostat figures show that while Ireland enjoys significant 15 59% EU Average 2007
Eurostat, Information Society
eGovernment availability, just 37% of Irish people are 10 Statistics, 2010
interacting with public authorities using the internet – a 5
figure that has remained broadly static over the previous
0
three years and still below the EU27 average of 41%. Obtain Download Send Interact with
How Irish people interact
information forms forms Authorities with the authorities online
Irish digital advertising market
€53.9m €64.9m 4. Digital advertising
While weak consumer demand than an also-ran. The result is that
© AMAS graphic (www.amas.ie)
100%
26% 21% has depressed the advertising budget is flowing into a variety of
market, one medium is experiencing digital formats. SMEs, too, are diverting
80% significant double-digit growth and scarce marketing resources into online
grabbing market share. New IAB campaigns, predominantly search.
29% 34% Ireland/PwC data shows that digital
60%
advertising was worth €65 million in Among the three categories of
the first half of 2011, a 20.5% increase digital advertising, display advertising
40% 45% 45% on the previous year. showed the greatest growth.
Valued at almost €21 million, display
20% This makes it the third largest experienced year-on-year growth of
medium behind TV and print, with an 41%, buoyed up by demand for social
advertising market share of 13%. By media, video and mobile formats.
0% contrast, advertising on non-digital
Jan - June 2010 Jan - June 2011 media declined in value by 1.5% to Search – predominately Google – is
€443 million over the same period, the largest category at €27.2 million
Search Display Classifieds according to Nielsen data. and showing annual growth levels of
17%. Online classified was worth €12.7
Source: IAB Ireland/ PwC Online Adspend study, Digital is now a core part of big brand million, a modest decline on the first
January-June 2011 advertisers’ media strategies, rather half of 2010.
the opportunity to win online

4. 29%
45%
1%
5%
7%
5. eCommerce
13% Internet information sources for research and comparison
Social media (Facebook etc.) 9% 9% 35% 47%
More than half of Irish consumers plan
to use both online and offline retail Forums and blogs 8% 9% 33% 51%
channels in combination for research
and comparison when shopping this Comparison sites 7% 16% 50% 27%
Christmas. When it comes to buying, half
will do it in-store, 11% online and 39% will Search engines 23% 8% 58% 11%
do both. The buying figures are broadly
Website with offers 14% 10% 55% 21%
in line with the European average.
Websites of brands / suppliers 16% 13% 59% 12%
These are among the findings of the
Deloitte Christmas Spending Survey, which Online shops (with offline stores) 14% 14% 63% 9%
examined the shopping habits of 18,000
consumers in Europe and South Africa. Online shops (without offline stores) 16% 12% 56% 15%
When it comes to research and Online leaflet via email 11% 13% 43% 33%
comparison, the online stores of brands
Online leaflet on store website 12% 14% 47% 26%
and shops are the most popular information
sources, along with search engines. Email Email newsletters 11% 11% 32% 46%
advertising and newsletters are more
popular sources with those aged 35 to 64 Source: Average 13% 12% 48% 27%
than with younger consumers, who tend Deloitte Christmas Percentages are rounded © AMAS graphic (www.amas.ie)
more towards blogs and social networks. Spending
Survey 2011 Searching Comparing Searching & comparing Not used
The main reasons Irish consumers give
for choosing to shop online are: The weaknesses of shopping online countries, consumers said lower prices
• Shopping when I want (54%) were reported to be after-sales service, were a priority for them in relation to
• Saving time (54%) exchanging or returning products easily all retailers. In the other countries lower
• Getting other consumers’ opinions (50%) and payment safety. In 10 of the 18 prices were second or third priority.
Continued from page 1
calling a business (61%), physically visiting channels, marketers need to be flexible from their phones if they don’t hit the mark.
a business (59%), making a purchase in and adopt the channels that best suit
the store or business (36%) or through an their objectives and their brands. Other brands have rejected app
online store (22%). (Source: The Mobile development or made it a lower priority
Movement Study, Google/Ipsos OTX Planning than developing a mobile website in
MediaCT, April 2011). Ignore the planning at your peril. Some HTML5. Their reasons for doing so include
brands have had bruising experience avoiding App Store restrictions, retaining
Technological innovation is happening at with apps, sometimes developing them as much revenue as possible and
a rapid pace. Near Field Communication purely because their competitors had assessments that mobile websites will
(NFC) is one example, which will allow one or it was considered the trendy thing better match their users’ needs and their
consumers to pay for items or exchange to do. They hadn’t worked through the business goals.
data by swiping their phones against a benefits for the consumer and how and
pay point or another device. where an app adds value to the brand. It is impossible to say which strategy will
win out in an area where technology,
The building blocks for embracing mobile They underestimated the bear pit of services and user behaviour are all
are about understanding customer competition that is Apple’s App Store evolving rapidly. One thing, however,
behaviour and habits, and having clear and the need to invest in marketing apps is certain - the revolution summarised
objectives about where mobile fits and encourage use. Beware the fickle in the unlovely abbreviation SoLoMo
within the overall marketing strategy. consumer, who is spoilt for choice and (the social, location-based and mobile
With increasing fragmentation of online routinely ignores apps and will delete them internet) is only beginning.
www.amas.ie

5. Top Trends
6. Social media than three years ago. Three
quarters of Irish Facebook
account holders who
members are less inclined to
reveal their age compared
with Facebook’s.
New milestones have over the past six months. specify an age declare
been reached for the that they are under 35. The number of actual users
numbers of Facebook and While the rate of new of both social media
LinkedIn account holders accounts being established LinkedIn has shown a sites may be far less than
in Ireland. Facebook has is slowing down, Facebook growth spurt over the past the number of account
passed the two million has critical mass in Ireland, six months, gaining 120,000 holders, as some users have
mark, gaining approximately building up its presence from accounts to bring the Irish duplicate accounts and
120,000 new accounts a lowly 400,000 accounts less total to 591,000. LinkedIn many accounts are dormant.
Ireland Number of
account
Ireland Age of Irish
Facebook users
4% 13%
holders 8% (where age is specified)
591,000 2.06m
© AMAS graphic (www.amas.ie)
13-17
18-24
18%
USA Other USA Other
24% 25-34
35-44
56.7m 42m 156m 573m
45-54
India UK India UK 55-64
12.7m 8m 38m 30.5m
33%
Wo io n Wo io n Source: Facebook;
rl d w ide 1 2 0 m ill rl d w ide 8 0 0 m ill LinkedIn
mCommerce set to be major theme in 2012
consumers make mobile a year of rapid change open data movement in
payments on their phones in 2012. With pervasive Ireland, in 2012 the focus
like a credit card, using smartphone devices, is likely to shift towards
near-field communication realtime social influence the commercialisation
(NFC) technology. is leapfrogging SEO with of big data. “Enterprising
Google tracking +1 social OpenData: The Game Is On”
ABI Research has estimated likes and crowdsourcing was a brainstorming seminar/
that shopping on the mobile influence trends. conference that explored
web will reach $119 billion the interesting possibilities for
Joan Mulvihill by 2015, and you can be Within this combination open data in the interactive
CEO, Irish Internet Association sure that a growing number of realtime and social gaming and social space.
of these consumers will be via mobile devices, a
Smartphones are about to replacing their wallets with potential commerce game- While many people
get a good deal smarter their phones for making changer is the new breed associate open data with
and more indispensible payments – online and offline. of “contextually aware” eGovernment and citizen
than ever. At a recent technologies that anticipate services, the potential for
Irish Internet Association Just when consumers and user needs and deliver social gaming underpinned
networking event, members business owners were products and services by a demand for
were briefed by the mobile getting used to the internet proactively. contextually aware services
micropayments service as part of everyday business, makes for a wide-open
Boxpay on this rapidly the convergence of mobile, While 2011 marked a platform for new business
growing area – where cloud and social will mean turning point for the opportunities.

6. Intranets have big productivity potential
Intranets survey of over 1,400
deliver – and intranets which Top tips for an intranet that works
are increasingly found: 1. Remember that a successful intranet is a process, not a project
doing so with • 61% had one or
2. Set out a mission statement, objectives and targets
in-house social more web 2.0 tools,
media features. with blogs and 3. Understand staff and business needs fully
Those were discussions the most 4. Involve staff in design work and test drafts with them
among the popular 5. Keep it simple and focus on navigation and structure
messages from • The most common
the first Intranet platform was a 6. Make it fast, easy and helpful to staff in their daily tasks
Global Forum. portal such as 7. Create an effective, interesting home page
SharePoint (34%), 8. Good change management will drive use and satisfaction
Another key followed by content
take-away management systems 9. Get visible senior management support
was the critical Fiachra Ó Marcaigh (27%) and custom- 10. Governance, governance, governance
role of intranet Director, AMAS built systems (20%)
governance. • Over half (55%)
Repeatedly, had social media Among the benefits cited were: 49 million times this year.
the G-word cropped up in tools for most staff. • Time to market halved to 12
case studies, presentations on months IBM relies on its intranet to
best practice and discussion Among the many other • Email volume reduced by 38% communicate with its 400,000
sessions. Who does what, findings, he emphasised the • A 12% productivity gain per staff, and it also has one of
who posts content and (most limited satisfaction levels employee. the world’s most sophisticated
critically) how it is archived and reported, with just 30% of and extensive websites.
removed are vital questions for intranets seen as good or PepsiCo does business in 200 Attendees were fascinated
successful intranets. very good and the remainder countries, marketing hundreds to hear Peter J. Ceplenski of
satisfactory or poor. Noting the of food and beverage brands, IBM describe the “Galactic
low levels of spending reported, and 145,000 employees use Internet Presence Redesign”
he said that despite its potential its intranet. Its redeveloped that will see it converge its
for saving cost and boosting intranet, launched in December intranet and internet sites.
productivity the intranet was 2010, relies heavily on video Poor relation or not, many
often the very poor relation of content and social features. Its companies expect big returns
the corporate website. home page has been viewed from intranet investments.
“It may be that you get what
you pay for” (in terms of AMAS: what we do We cut through the clutter
and the complexity to allow
Toby Ward, CEO Prescient Digital satisfaction), he said. AMAS is an internet consultancy our clients to capitalise on
with a simple goal – help our the unlimited opportunities
(Photo: Prescient, Case studies clients to exploit the internet.
www.PrescientDigital.com) offered by the internet.
The forum heard detailed Large corporates, government
The forum brought together case study presentations on bodies and, increasingly, high- Services:
developers, intranet large-scale intranet projects potential businesses retain us to • Strategy
managers and agencies that had delivered very develop and help implement • Research
from around the world for a substantial gains. internet strategies. • User experience
two-day event in New York in • Content
November. Prescient Digital, Cisco Systems invested heavily Contact Us:
Aileen O’Toole, • Training
the Canadian consultancy in its intranet to support its
that organised the forum, strategic corporate goals of Managing Director on • Marketing
declared itself pleased with accelerating time to market +353 1 6610499 or info@amas.ie • Project management
the event and said that it may and faster revenue generation.
become an annual one. Social profiles, blogs, wikis and Follow us:
dynamic communities were For digital research and insights,
Prescient CEO Toby Ward part of the intranet roll-out to follow AMAS on Twitter@AMASinternet
presented results from a its 50,000 staff world-wide.
© AMAS Ltd.
Published by AMAS Ltd., 38 Lr. Leeson Street, Dublin 2, Ireland. Tel: +353 1 6610499
Email: info@amas.ie Web: www.amas.ie