Report on Internet Trends for UK & Europe

1. UK AND EUROPE
Executive Summary 2
Internet Usage in the UK 3
Internet Usage in Europe 4
Online Advertising in the UK 5
Online Advertising in Europe 7
eCommerce in the UK 8
eCommerce in Europe 9
Social Networking in the UK 10
Social Networking in Europe 11
Source of all statistics is eMarketer.

2. Executive Summary
Internet Marketing in the UK and Europe
Remains Resilient to Economic Downturn
With today’s global recession, the economic crunch is having
an impact on overall advertising spend among businesses of
all industry sectors. Though no form of marketing medium is
completely recession‐proof, current trends indicate that
Internet advertising is far more resilient during a challenging
economy than other forms of media.
Online advertising resilience is common within all regions
around the world, but this report focuses specifically on the
UK and European markets.
In the midst of today’s economic turmoil, marketers are
allocating more of their advertising budgets toward this
medium. According to eMarketer, the online population in
the UK and Europe is growing steadily, giving business
owners the opportunity to reach a larger audience through
the Internet, today’s fastest growing marketing channel.
This Internet Marketing Trends Report is a brief synopsis of
the current online activities, as well as the projected trends
for the next few years. Specifically, it covers Internet user
penetration, online advertising growth, eCommerce revenue
growth and social networking advertising spend.
Copyright © 2009 Research and Management Page 2
WSI Internet Marketing Trends Report

3. Internet Usage
UK Internet Users Growth
• eMarketer’s report puts the 2009
online population at 39.4 million,
up 1.3 million since 2008
• In 2010, this number will increase
to 40.6 million, which will account
for 66.2% of the total population
• By 2013, 43.7 million people will
be online in the UK, taking overall
penetration to 70.7%
Online Activities of UK
Internet Users
• 87% of UK Internet users surveyed
said that email was the most
popular online activity
• Almost 84% said they went online
to find information about goods
and services
• 63% of respondents (close to two‐
thirds) booked their travel and
accommodation on the Web
• 49% use the Internet to complete
banking transactions
Copyright © 2009 Research and Management Page 3
WSI Internet Marketing Trends Report

4. Internet Usage
Internet Users in Western
Europe
• In Western Europe, 88% of 18‐24
year old survey respondents use
the Internet on weekdays
• 80% of 18‐24 year olds use the
Internet on weekends
• Of respondents between 25‐34
years of age, 81% use the Internet
on weekdays
• 72% of 25‐34 year olds in Western
Europe use it on weekends
Online Activities of Internet
Users in Western Europe
• The most popular online activity
among Western Europeans is
searching (87%)
• The second most popular online
activity is email (81%)
• 49% of respondents said they use
the Web for social networking
• Instant messaging is the 4th most
popular online activity with 43% of
respondents
Copyright © 2009 Research and Management Page 4
WSI Internet Marketing Trends Report

5. Online Advertising
Online Ad Spend Increase in
the UK
• UK online advertising spend hit
£3.34 billion in 2008, a rise of
27.1% in one year
• eMarketer estimates that online ad
spend will increase to £3.58 billion
in 2009 and continue to rise every
year thereafter
• So far, the Internet appears almost
immune to budget cuts by
advertisers
• In spite of the economic downturn,
spending will reach £3.94 in 2010
Online Ad Spending
Worldwide by Format
• In a 2008 survey, 63% of companies
said they would spend more on
paid search
• 61% said they would spend more
on search engine optimisation
• These increases were the largest
planned for any major online
advertising or marketing category
• 59% of companies said their email
marketing budgets will rise
• 40% said they will allocate more
money toward online display ads
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WSI Internet Marketing Trends Report

6. Online Advertising
Leading UK Industries, Ranked
by Online Advertising Spend
• Recruitment is the top industry
based on online advertising spend in
the UK (33%)
• The second ranked industry is
automotive with 13% of total online
advertising spend
• Third and fourth are the property
and technology industries, at 11.1%
and 9.4% respectively
• Finance is ranked as the 5th leading
UK industry (6.2%)
UK Ad Spending Increase by
Marketing Segments
• Marketing firms were asked which
areas of their business were
priorities for increased spending
• Company websites (cited by 59%)
were at the top of the list
• PR was second on the list (42.5%)
• One in five businesses also planned
to increase spending on networking
and website optimization (19.7%)
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WSI Internet Marketing Trends Report

7. Online Advertising
Advertising Spending Growth
in Western Europe
• In 2008, Internet advertising spend
increased by 17.2%
• Though the change won’t be as
high, online advertising is still
expected to increase by 12% in
2009
• Meanwhile, traditional marketing
spend is expected to decrease in
2009
• The biggest decrease is newspaper
advertising (‐3.8% in 2008 and
‐4.1% in 2009)
Online Advertising Spend
• In 2012, online advertising spend in
Western Europe is expected to
consume 14.8% of total ad spend
• This number is expected to increase
to 15.1% in 2013
Display Advertising Spend
• Western Europe is expected to
increase their online display
advertising spend by 4% in 2009
• In 2013, online display ad spend will
rise again by 10%
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WSI Internet Marketing Trends Report

8. eCommerce
UK eCommerce Revenue
Growth
• UK eCommerce revenues will
remain strong in 2009
• eMarketer predicts that UK B2C
online sales would be worth £68.4
billion in 2009, a 14% increase from
2008
• In 2010, eCommerce revenues will
increase another 14.8% to reach
£78.5 billion
• By 2011, this number will increase
by 10% to £86.4 billion
• B2C online sales will peak at £94.2
billion in 2012 (9% increase)
Reasons UK Online Buyers
Purchase Online
• The majority of UK online buyers
(84%) said they prefer shopping
online because it offers immediate
access to products and services
• 81% of respondents said they favour
online shopping because it saves
time and hassle
• Meanwhile, the greater savings
received online drew the attention
of 67% of respondents
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WSI Internet Marketing Trends Report

9. eCommerce
European eCommerce
Revenues Increase
• Retail eCommerce revenues
worldwide are expected to increase
between 2009 and 2011
• Europe falls closely behind the US in
terms of revenue in billions
• In 2009, European retail
eCommerce will reach $140.7
billion, a slight decrease from 2008
• However, this number will rise again
in 2010 to $170.9 billion
• By 2011, eCommerce revenues in
Europe will peak at $198.2 billion
Online Buyers in Europe
• 93% of Internet users in Western
European are also online buyers
• This is slightly higher than North
American Internet users (92%)
• Of the Internet users in Eastern
Europe (also includes Middle East
and Africa), 67% have made an
online purchase
• Overall, 86% of worldwide Internet
users are also online buyers
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WSI Internet Marketing Trends Report

10. Social Networking
UK Social Networking
Advertising
• According to eMarketer, an
estimated 11 million UK Internet
users participated in social
networking in 2007
• eMarketer also predicted that
online social networking ad spend
would reach £115 million in 2008
• Social network ad spend is
expected to increase again in 2009
to reach £175 million
• eMarketer projects that in 2012,
spending will increase to £285
million
UK and Western Europe Social
Network Advertising
• Social networking usage has grown
the fastest in the UK among
Western European countries
• The UK also dominates the region in
social network ad spending
• Spending will account for 67% of the
estimated £260 million in spending
in Western Europe in 2009
• As spending grows in France and
Germany, the UK’s share of the
social networking ad pie is expected
to drop to 55% in 2012
Copyright © 2009 Research and Management Page 10
WSI Internet Marketing Trends Report

11. Social Networking
Social Networking Site Users
in Europe
• Based on sheer numbers, the
largest social networking user
markets in Europe are UK,
Germany and France
• In the UK, there are 29.3 million
unique social networking site users
• Germany contains 24.9 million
social networking users
• France is close behind with 21.7
million people on social networking
sites
• In total, there are 211 million social
networking users in Europe
Social Network Advertising in
Western Europe
• Marketers in Western Europe
spent £168 million advertising on
social networks in 2008
• Before the end of this year, £260
million will be spent advertising on
social networks
• eMarketer forecasts that by 2010,
social network ad spend will reach
£357 million
• This number is expected to rise
again to £460 million in 2011 and
£519 million in 2012
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WSI Internet Marketing Trends Report

12. “I am very pleased with
the results of my WSI TABLE OF CONTENTS
solution. I was not
expecting to receive so Pond Liners Online 13
many sales in the first
two months of the site Black Tangerine Fashion 15
going live!”
‐ Mike Leask, Pond Liners Skyline Whitespace 16
The Green Bike Company 18
“We would like to thank
the WSI team for all their 2m2u Printing 20
advice, development and
ongoing maintenance of InfoVista 21
our site. We are delighted
with its features and
functionality”.
‐ Grégoire Michel, VP World‐
wide Marketing, InfoVista

13. Landscaping
POND LINERS ONLINE
ECOMMERCE CASE STUDY
Summary:
Summary: www.PondLinersOnline.co.uk
Pond Liners was looking for someone to design and launch an
eCommerce website and provide marketing solutions, which
would create Web traffic and convert visitors into making an ABOUT THE CLIENT
online purchase.
Pond Liners
Once the website was completed, WSI initiated an optimised
PPC campaign and a search engine optimisation strategy. WSI Pond Liners has been in the
also set up Google Analytics and conversion goals. landscaping industry for a number of
years and has a wealth of knowledge
Goals and Objectives:
Goals and Objectives: and experience on ponds and pond
construction materials. His vision was
The objective was to design a site with a unique pond liner to have his own company supplying
calculator, which would take the length, breadth and depth pond liners direct to the public. He was
pond measurements given by the customer and calculate the very impressed with WSI’s experience
exact pond liner dimensions required and the cost of each in building eCommerce websites.
type of pond liner for that dimension. The customer would
then select a pond liner/s and go through a secure checkout
process.
A further objective is to ensure that the site is informative ABOUT THE CONSULTANT
and a useful resource to anyone wanting to plan and
construct a pond. WSI wanted to use the Internet as the sole Brian Holroyd, Bedfordshire, UK
means of marketing the product.
Brian has been a WSI Consultant for
The Solution:
The Solution: about 2 years. He works in
collaboration with his son, Dale
WSI chose a customised solution due to the database (MSc) and his wife, Lynette (BSc).
requirements of the pond liner size calculator. Working with Dale’s key focus is sales, while
the developers on the functionality of the pond liner size
Lynette takes care of SEO and PPC.
calculator was a challenge but the final result is a unique,
user‐friendly pond liner size calculator.
Both Dale and Lynette are also
responsible for project management.
In the development process, the difficulty was rounding up
the metre squared dimensions. The pond liners are supplied
via the manufacturers in fixed measurements with the “on‐
the‐role” PVC pond liner dimensions differing from that of
the rubber pond liners. So the calculator had to work in both
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14. Landscaping
POND LINERS ONLINE
ECOMMERCE CASE STUDY
www.PondLinersOnline.co.uk
imperial and metric measurements, rounding up to the
closest 0.5m in one dimension and closest 1m in another for
PVC, and to the closest 0.5m in both dimensions for the
rubber liners. The pond liner dimensions have to be
absolutely accurate to avoid wastage or the liner not fitting
HOME PAGE
into the hole exactly. Precision was key in this project.
Results:
Results:
Since June 2008, the website is receiving 3,000 visitors per
month with a sales conversion rate of 3‐4%. WSI’s reports
show an average site visit time of 4.2 minutes and 4 pages
views per customer, as well as a visitor bounce rate of 22%
(improved from 27% in June).
Since June, the client has received more than £25,000 worth
of orders averaging at £500 per day. They were thrilled
when WSI completed and launched the website, particularly
because they received their first orders the day the site
went live on the Web, and have continued to do so since.
Client Testimonial:
Client Testimonial: INTERNAL PAGE
“I am very pleased with the results of my WSI solution. I was
not expecting to receive so many sales in the first two
months of the site going live!” ‐ Mike Leask, Pond Liners
Conclusion:
Conclusion:
Once a site is live, it is important to get feedback from
customers to address changes to the site, which can then
improve conversion rates and increase sales.
For example, based on feedback WSI collected, customers
were not sure if the site was secure for purchasing, so WSI
placed Protx security signs in several places. WSI will now
monitor the conversion rates for improvements.
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15. Fashion Retail
BLACK TANGERINE FASHION
ECOMMERCE CASE STUDY
www.BlackTangerine.co.uk
Summary:
Summary:
Black Tangerine was looking to increase online sales by
generating more traffic to their low quality eCommerce site. HOME PAGE
They approached WSI for a PPC campaign, which WSI
provided. The traffic increased, but this resulted in no
measurable increase in sales.
Fortunately, WSI advised the client from the beginning that
their existing website would not convert the traffic at an
acceptable rate. Therefore, WSI proposed a brand new
website, which the client accepted.
Objectives:
Objectives:
To design a new, conversion‐focused website that would
convert visitors into customers and to increase traffic
through a PPC campaign and organic search marketing.
The Solution:
The Solution:
INTERNAL PAGE
WSI delivered a WSI Business Edge solution with an
eCommerce module. This was the chosen platform due to its
comprehensive functionality.
Results:
Results:
The client is delighted with the solution and is looking to
invest heavily in ongoing Internet marketing to ensure the
long‐term success of the project. Since the site was launched
very recently, ROI data is still being collected.
Conclusion:
Conclusion:
Interestingly, all conversations were carried out phone, email
and postal. WSI and the client didn’t meet face‐to‐face until
after the site was launched.
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16. Exhibition Stands
SKYLINE WHITESPACE
CASE STUDY
Goals and Challenges:
Goals and Challenges: www.SkylineWhitespace.com
When WSI initially met Skyline Whitespace, the client wanted
some advice on how to market their business online and get
ahead of their competitors who were at the top of the search ABOUT THE CLIENT
engine results at the time.
Skyline Whitespace
WSI identified that the best way to do that was to create a
new website that was more search engine friendly and to Skyline Whitespace designs and
make sure that it was optimised correctly for the search creates memorable exhibition stands
terms the client wanted to compete for. for a wide range of industry sectors
from government, IT, leisure, retail
Objectives:
Objectives: and banking through to charities and
small privately owned organisations.
Skyline Whitespace wanted a “showcase site” that would not Their team members are some of the
only look good and display the many variations of display industry’s most talented exhibition
products that they create, but also one that would reach the stand designers.
top of the search results and enable them to increase the
online visibility of the business.
They also wanted to be able to update the site themselves
which they had not previously been able to do.
ABOUT THE CONSULTANT
The Solution:
The Solution: David Duncan, Surrey, UK
WSI chose to provide a WSI Business Edge solution due to its David has been a WSI Consultant
modular platform, which enabled WSI to add the appropriate since January 2004. He is assisted
modules to achieve the functionality required, and also to in his business by his son Martin
achieve a very high‐end looking solution. who has been working with him
full‐time for the last couple of
For this client in their industry, image is extremely important years. Martin’s background in
and they were therefore very particular about the design and graphic design and sales is ideally
implementation of their solution. The client was overall very placed to help David build the
satisfied with WSI’s creativity. business.
In order to help with the marketing of the site, WSI
incorporated some content pages and these pages are
already bringing traffic to the site.
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17. Exhibition Stands
SKYLINE WHITESPACE
CASE STUDY
www.SkylineWhitespace.com
Results:
Results:
The new www.skylinewhitespace.com website reflects the
sleek and professional image of Skyline Whitespace and
HOME PAGE
conveys their exceptional exhibition services and portfolio of
past projects in an organised and attractive manner.
The client’s reaction has been very positive with internal staff
and other Skyline subsidiaries showing enthusiasm and
interest in the new UK site.
They are already seeing improved traffic, conversion rates
and search engine results and are receiving increased
management information from WSI’s Web analytics service.
Conclusion:
Conclusion:
The WSI Business Edge has been a great solution for this
client. It has been flexible enough to meet the client’s needs
and the modular design makes it easy to add functionality
whilst keeping the site design consistent. INTERNAL PAGE
By incorporating some optimised content pages into the
solution from the outset, the client is quickly seeing
improved search results over the their previous website.
WSI is thankful for the expert assistance of our production
team throughout the design and build process, and the client
is impressed with the overall creativity and innovation of
their new Web solution.
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Page 17

18. Cycling & Transportation
THE GREEN BIKE COMPANY
CASE STUDY
www.TheGreenBikeCompany.co.uk
UK Cycling Industry:
UK Cycling Industry:
The UK cycling industry is worth circa £900m per annum.
Cycling in the UK is experiencing significant growth, with
people trying to become “greener” and fitter. ABOUT THE CLIENT
There is a gap in the market comparable to the car market, The Green Bike Company
where used bikes could be correctly serviced, warranted and
retailed to a customer who is keen to buy a top end bike, but The Green Bike Company is a
perhaps on a novice’s budget. family business, created by cycling
enthusiasts, who believe that
Client’s Business Goals:
Client’s Business Goals: cycling can be a sociable,
environmentally responsible
This is where the client’s vision of a business that buys, hobby, which allows anyone to
reconditions and sells used bikes comes from. The initial find their own level and get fit.
target market is the people seeking to return to cycling but
confused by all the new talk of technology within the sector.
The Green Bike Company’s business plan was created in the
winter of 2007/08 in conjunction with WSI, who was selected
to provide the online platform that would be the visible face
of the business.
ABOUT THE CONSULTANT
Summary: Simon Thompson, Malvern, UK
Summary:
The website seeks to help returnees to cycling with helpful
Simon has been a WSI Consultant
advice as well as just selling them a bike. Since the start‐up of since September 2004 and
the concept in spring 2008, The Green Bike Company has operates his business in the UK
been approached by many of the new bike retailers in the UK with a national license. He is also
who are looking for a way to move their part‐exchanged the WSI Consultant Group leader
bikes, ex‐demo and older models into the marketplace. for the South West UK (south of
Birmingham to Cornwall,
The Solution:
The Solution: Oxfordshire to Pembrokeshire).
WSI provided the client with a WSI Business Edge solution
with an eCommerce module. WSI also offered the client a
link building strategy and we are now also managing a
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19. Cycling & Transportation
THE GREEN BIKE COMPANY
CASE STUDY
www.TheGreenBikeCompany.co.uk
Google AdWords campaign – again starting slowly then
building up to the spring 2009 buying period.
Results:
Results: HOME PAGE
The site was launched in October 2008 with “real world”
publicity coming from leaflets and emails being distributed to
cycling clubs and local venues known to be frequented by
cyclists.
The Green Bike Company wanted to develop its offline
business processes as it builds the business and not be
inundated with huge numbers of enquiries early on. The first
business peak will be from February to June next year.
This was a start‐up business so everything is an increase in
ROI. WSI measured the results through sales figures collected
by the WSI Business Edge eCommerce module and Google
Analytics, plus feedback from the client. The client is very
pleased with his solution to date and is a good source of
referral business for WSI.
INTERNAL PAGE
Client Testimonial:
Client Testimonial:
“We found WSI to be incredibly intuitive as we took the
business from concept to reality. Simon researched the
opportunity and helped us to create a brand image which can
now begin to grow.
The site is now fully interactive and has the scope to add
categories with a build which has its eye on future growth
opportunities.
Advice is always on hand tailored to all levels of technical
expertise. We have recommended WSI to plenty of our friends
and associates.” ‐ Ian Moseley, Director, The Green Bike
Company
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20. Printing Company
2M2U INTERNET MARKETING
CASE STUDY
Challenges:
Challenges: www.2m2u.co.uk
This project was completed collaboratively by Tracy Spence
and Warren Thorp. The client’s website developer let him
down, and a mad panic to get a Web page developed and ABOUT THE CLIENT
launched within 48 hours led him to call WSI.
2m2u is a Web trading arm of
The Solution:
The Solution: 2mprint Ltd. specialising in sales of
printed calendars and photo books.
WSI started working immediately and exceeded the client’s 2m2u already had a system in place
expectations by turning the project around overnight. that they used for taking orders.
2m2u decided to use WSI to design more Web pages. Warren They worked with a Web developer
started the client’s email marketing campaign, and Tracy to change their home page
began the SEO work. The Web pages have all been built with according to their email marketing
keywords and meta tags in place and links have been created and mail shots. The aim of 2m2u
too. WSI also combined this with a pay‐per‐click campaign, was to increase brand awareness
achieving an average of 14.86% click‐through rate! and to sell, sell, sell.
Results:
In a short span of time, the website has become more visible
by the search engines. In fact, 90.44% of their visitors find
SCREENSHOT
them through the search engines currently. This has led to a
large increase in sales for 2m2u. They are very happy with
WSI’s services. Tracy and Warren are currently quoting for
social media marketing, in particular using videos online.
Client Testimonial:
Client Testimonial:
quot;WSI have been invaluable to my business during the last few
weeks. They have insured we had our new website up and
running on time to match our marketing campaign we were
in the process of running. WSI have put their skills and efforts
into making the difficult situation a more manageable one,
something I am most grateful for. I will be trying to secure
WSI more business whenever I can. I will be recommending
their services most highly.quot; ‐ Mark Hipperson, 2M Print Ltd.
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Page 20

21. Technology
INFOVISTA CASE STUDY
Project Summary:
Project Summary: www.InfoVista.com
At the beginning of 2008, WSI participated in an eMarketing
trade show in Paris, where Gilles first met this client. Shortly
after, the client found a post on the DotNetNuke (DNN) ABOUT THE CLIENT
website that Gilles wrote and contacted him directly.
InfoVista
The client’s webmaster left the company before finishing the
new website, which was built on the DotNetNuke (DNN) InfoVista is the world leader in
platform. This site was mainly used to: proactive service assurance software.
InfoVista empowers telecom
• Keep investors informed operators, services providers and
• Help to recruit new employees enterprises to maximize business
• Present InfoVista’s products & services return and productivity by assuring
• Promote events, articles and training the optimal delivery of mission‐
critical networked services,
applications and infrastructures.
Objectives:
Objectives:
WSI’s first objective was to finalize the website, optimise it
and start SEO and Web analytics. An extranet website has
also been set up to manage “Update Requests” coming from
subsidiaries all around the world.
ABOUT THE CONSULTANT
The second phase will be to train the new webmaster Gilles Dandel, Epone, France
(recruitment in progress) and to help InfoVista reach a new
level by using more multimedia conversion tools and social Gilles is a French WSI Consultant
media optimisation. who has been running the
business for 2 ½ years now. Gilles
The Solution:
The Solution: is acting as a WSI Area
Representative for the French
The solution was already chosen and operational. It is a DNN speaking Consultant community
website with a lot of modules. covering France, Belgium,
Luxembourg and Martinique.
The extranet is a Microsoft SharePoint Portal, which is easy
to set up, configure and use by the 12 InfoVista’s employees
involved in the content update process.
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22. Technology
INFOVISTA CASE STUDY
Results:
Results: www.InfoVista.com
As a result of WSI’s assistance, the client not only saved his
initial investment of rebuilding his website, but also
improved it. The next steps will be to increase the value of HOME PAGE
this website by generating more leads, selling more training,
reducing support costs, etc.
WSI is also providing search engine optimisation for the site,
combined with other marketing campaigns (PPC and email
marketing). To monitor website performance, WSI is using
the WebTrends Web Analytics solution.
Client Testimonial:
Client Testimonial:
“We met with Gilles Dandel of WSI to discuss our mission‐
critical and time sensitive website development needs. In the
last three months, we have experienced timely and efficient
delivery of our specific business needs such as Internet
marketing, search engine optimisation, online promotions,
and an enhanced overall online presence.
INTERNAL PAGE
The Web analytics reporting really helps us to understand our
online visitors and work towards offering them a superior
navigation experience that is targeted and focused on their
needs. We would like to thank the WSI team for all their
advice, development and ongoing maintenance of our site.
We are delighted with its features, functionality and overall
presentation”. ‐ Grégoire Michel, Vice‐President Worldwide
Marketing, InfoVista
Conclusion:
Conclusion:
The client is doing 90% of his business outside of France. He
quickly understood the power of the WSI concept and chose
WSI because of the global coverage we were able to offer his
business.
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