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How is SEM developing in Hungary?

Archive for the ‘advertising’ Category

Online Ad Spend Hungary 2011

Posted by Annplugged on August 8, 2012

According to the IAB Adex data, the total net online ad spend in Hungary in 2011 is as follows:

  • in HUF (Hungarian Forint) 30.4 billion Ft (HUF and Ft are both short for the Hungarian currency called Hungarian Forint, yes, the forint is without the letter ‘l’, not florint just forint), i.e. 30.400,000,000 HUF
  • in Euros: 109.4 million Euros
  • in USD: 134.9 million Dollars
  • in GBP: 86.3 million pounds

This amount is 18,8% of the total Hungarian ad spend. From year to year, it is over ten percent increase (12% to be precise).  Search marketing was really successful, with a 31% increase, email grew by 5% while display was slightly moving ahead but so slightly that we can just say that it stayed the same.

Mobile ad spend (both display mobile ads and non-display mobile ads) has been estimated to be around HUF 740 million by IAB.

Source IAB Hungary Adex 2011 via Rabbitblog

One fifth of the Hungarian population lives in the capital, in Budapest city, where online users are in a big cluster, which may facilitate e-commerce and other online activities connected to offline places.

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Posted in advertising, Hungary | Tagged: , , , , , | Leave a Comment »

Internet shopping stats, trends in Hungary – Google research (via TNS)web

Posted by Annplugged on August 6, 2009

Google has published its findings regarding online shopping preferences, trends in Hungary – the research panel has interviewed 1000 Hungarian internet users about their web purchase attitudes, preferences between Dec 2 2008 and Feb 3 2009. The results of the e-commerce and internet search are showing no or not much surprises I think. There is perhaps one single country specific purchase, but the bulk of the data is just what you would expect of a maturing market in the EMEA region.

Google Hungary research on online shopping

Google Hungary research on online shopping

In numbers and conclusions – internet shopping in Hungary 2008-2009

ROPO (research online – purchase offline) is more prevalent in Hungary than in more mature western markets

Research online before purchase is especially high regarding electronics goods (like the new favorite LED TV) and travel related items and services (most typically searching for cheap flights and airline tickets as well as accommodation). 72% of users check out options on the web before making their purchase decisions.

As for travel, tourism, less than half of the respondents, 48% completes the act of purchase online, while 24% of the users make up their minds based on the data they found online to make their shopping offline.

However, regarding electronic goods, the purchase in webstores is only 22%! In other words, even though internet research plays a crucial role (72%) in buying all kinds of electronic goods, TV, mp3 player, DVD player, home theater, what have you, only a fraction of that impact can be measured through web conversions, the rest of the shopping conversions will take effect in the B&M (brick and mortar) stores.

Geo-specific online shopping in Hungary: the success of the obligatory car insurance

Similarly to electronic goods and travel services, compulsory car insurance research on the web is popular amongst more than 75% of the users, out of which two thirds of them actually complete the purchase process online.

What do Hungarians use before buying goods?

Search (no surprise here either) – 88% of users use a search engine to find the desired goods before shopping. And as Google.hu is THE most popular search engine in Hungary with approx. 98% of share in the Hungarian search market, you can treat this number is 87-88% of potential buyers searching for goods on google.

Brand pages – official brand pages like nokia.hu or philips.hu have scored second with 54% in the popularity game. I was somewhat surprised by this result, as my gut instinct told me the second most popular search channel before purchase would be price comparison. But it is brand pages, there you go.

Retail stores – 49% – this is understandable, especially talking about trusted stores. Oftentimes users would like to see how much an item is going to cost for them. This vital information is not on a manufacturer’s site.

Shopping comparison / Price comparison – 48%. I wonder how western users use price comparison sites compared to manufacturer sites when it comes to researching and purchasing goods online, as my instinct tells me that shopping comparison is far more popular, but in Hungary brand sites outscored price comparison sites by 6%. Not a big difference, based on a 1000 respondents, but it is telling. As I have been working for the number 1 most visited Hungarian comparison shopping site (Árukereső), I think one of the reasons for this result is that users sometimes get confused about comparison shopping sites, they simply assume they are in another retail stores and wish to complete their purchase right on the site. Besides, another percentage of internet users in Hungary do not expect to get the updated fresh and detailed product information on price comparison or web retail shops, so they go the the manufacturer page (prices missing there, so it is in the early research phase I guess). Brands are brands after all, with a weightier brand value than most retails stores or comparison shopping sites or online auction sites have so far achieved.

Auction sites – 44%: Vatera and Teszvesz are the online auction sites in Hungary. We do not even need to say the two top, they are, period. In 2008 both were bought up (majority investment not total) by Allegro group (of Naspers), and in July 2009 Árukereső, the previously mentioned comparison shopping site has also become an Allegro group asset. That’s why one of the Hungarian twitter users was referring  to the  news that the local ebay in Hungary is in formation…

THE TAKEAWAY

As for advertising, it is pretty obvious that e-commerce companies, travel service providers, car insurance sites cannot live without working with Google (SEO for Google, AdWords PPC, SEO PR aimed at Google), but they are also dependent on shopping comparison sites (arukereso, argep, olcsobbat, depo, kirakat, shopmania – such a small country with 2-3 million users and so many comparison shopping sites, amazing right?). Other CPC tactics may include etarget (prevalent in a good range of content sites) and direct negotiations with major content sites (portals, catalogs, etc.)

PS: the illustration shows 4 columns representing the results for 4 products (digital camera, computer hardware, household equipment, and the 4th column is clothes and accessories). The vertical line (y axis) enlists the typical sources of information (TV, outdoor media, fliers, radio, direct mail, friends and family, papers, internet, earlier experience, browsing in the store, store assistant in shops, store assistant via remote communication)

Posted in advertising, E-commerce, Emerging markets, Google, Google Adwords, Hungary, search, Search Engines, SEM, SEO, Shopping, statistics, users | 3 Comments »

How is Google generating revenue on YouTube?

Posted by Annplugged on January 26, 2007

Marissa Mayer’s answer is ‘we don’t know, we are still experimenting.’ (Digital, Life, Design conference, Munich: DLD07)

On Jan 25 2006 the first step towards actually integrating YouTube into Google’s products was taken: if you make a search query on Google Video, you’ll see loads of YouTube shots.

Liz Gannes on NewTeeVee is asking why is it worth running two video sites? (“why take a sidetrip to a search engine when you’ll end up on YouTube anyway?”)

In my opinion, that’s why:

As for running two sites (one for YouTube and one for Google video search): I think it is totally reasonable and profitable.

  • Reason 1: they have different profiles, roles, images as defined by Google (as Salar Kamangar put it, one for content the other for search – the options in AdWords)
  • Reason 2: with two brands you have more scope for experimenting
  • Reason 3: the combination of the above two

From the user’s point of view:

On YouTube you accidentally ‘stumble upon’ and interact

On Google video search you purposefully search and spend no time on socializing

From the media point of view:

YouTube functions as a content site of Google’s content network with a distinct community and with more scope for applying, testing various ad formats. And these tests, mind you, will be less affecting Google brand, as YouTube is separate. So video shots interrupted by an ad on YouTube will not clash with Google’s aim to ‘enhance user experience,’ because it is not Google. Being intrusive on YouTube while ‘finding out how to reduce being intrusive to the minimum’ works on the YouTube brand better and safer.

How they are carrying out video ads is absolutely an exciting question. When Marissa Mayer was asked about it at Digital Life Design conference (DLD07) in Munich, she said they are experimenting and gathering data, feedback, etc. on what works best. See: http://videos.dld-conference.com/ (day: Jan 23, The Billion Dollar Bubble). “There are lots of different business models… Maybe it means the user needs pay directly for the service, maybe it means advertisers will pay more…advertisers are good at valuing those eyeballs.” i.e. Advertisers will say how much it is worth them (even bidding?)

It is baffling though why haven’t they improved the searches (awful results pages, no need to describe them). Also, why haven’t they tried to experiment with dividing YouTube into two main columns as they do on Google search results pages: one column for organic video search and one for sponsored videos with bid management – based on similar principles to search algorithm.

But maybe this division is coming on Google video search – which, as a separate site, is of course worth being kept, if it works as an aggregator, and it will work as an aggregator indexing all sources they can/ are allowed to – with no social networking features, focusing on search, and potentially, with a differentiated method of generating ad revenue. One thing is sure, however, based on Google’s policy, I think it is out of question that Google could afford to be a biased video search engine – users’ trust is their biggest asset (besides lava lamps). So there is no way that they could push YouTube videos ahead of videos hosted on other sites.

 

Posted in AdSense, advertising, Adwords, clips, Google, Google Video, Monetizing, search, Video, YouTube | 3 Comments »

Google AdWords Qualified Individuals and a Company in Hungary

Posted by Annplugged on December 11, 2006

So once you have turned your attention to the Hungarian market, and become interested in how to target potential customers interested in your products or services in Hungary, you may also wish to know who are holding official qualifications from Google Inc.

If so, here goes a continually updated list on the SEM professionals who are probably confidently managing Google ad campaigns.

Google AdWords Qualified Individuals:

  1. Laszlo Fazakas (holy squirrel, he’s my boss)
  2. Mihaly Bobaly (great scubadiver, too)
  3. Andras Szell (no extra info)
  4. Anna Sebestyen (gee, that’s me!)
  5. Eszter Vandor (team mate at Arcanian)

Google AdWords Qualified Company:

  1. Arcanian Consulting (great, that’s the company I work for!)
  2. no more yet.

The company is surely the first to be given this qualification in Hungary. Regionally (Eastern/ Central Europe), the first one seems to be Dobry web in the Czech Republic. As I couldn’t find any other companies entitled to the Google AdWords Qualified Company logo (checking Austria, Croatia, Slovakia, the Czech R., Poland, Romania, Bulgaria, Serbia etc.), I guess we take the silver medal. It is a guess, but a strong one. Do you happen to know about companies in the region with such qualifications? Please send me the links in this case (in comment, if it is more convenient).

Surely, the number of qualified Google professionals will steadily increase, and I hope to get info on who else to include in the list from Central Europe.

Note: last update on Jan 04 2006.

Posted in Accountability, advertising, Central Eastern Europe, contest, Emerging markets, Google Adwords, Hungary, Qualified professional, search, SEM | 2 Comments »

How many people use Google in Hungary? What about rivals?

Posted by Annplugged on December 3, 2006

According to Dennis Woodside, Google is used by 36% of the Hungarian web users (which is about 0,7-1 m users out of the 2-3 m Hungarian netizens, out of the 10 m people), in contrast to Poland where more than 80% of netizens use Google. The uneven distribution of Google’s popularity in Central and Eastern Europe should not come as a surprise at all: if local initiatives, national search engines are satisfying enough (and function as a multifaceted, one-off portal for the users in the given country, mostly ex-soviet block nations), they are more favored than Google (see the Czech), so Google Inc. needs to wait and use tactics adapted to local circumstances.
Right after google.hu, the second most popular ‘search engine’ (basically a catalog) in Hungary is Startlap (Starting page, literally) with 27% of the search volume pie, says Dennis.

Now the question arises: what does Dennis, or rather Google stats mean by the Startlap 27%?

If you open the catalog on startlap.hu, you can clearly see that Startlap uses two search engines, one called Tango (Hungarian development of Startlap in cooperation with Etarget) and the other one called Google.

picture-3.png

So it would be good to know how much of the 27% belongs to Google again. All the more as Startlap, as the main competitor of Google in the Hungarian search business, is gaining revenue by selling Google ads on its pages (search for AdSense) with the wide blue stripe and orange starlet of Startlap catalog.

picture-5.png

I am in really two minds about this issue: is it better for Startlap, which thus can generate more income for the site while providing better search results under its own logo by taking advantage of the Google algorithm, or is it better for Google by drilling into the Startlap empire and winning over ‘amateur users’ for Google? (by ‘amateur users’ I mean Hungarian internet users who are less tech savvy, and who tend to have Startlap as their default front page, plus their main search source)

I do not think that two market players consciously act like this, or have sized up the pros and cons of such a fused appearance as seen above. If so, Dennis would have mentioned this, or the director of Startlap at the Internet Hungary conference (Oct 2006), or any of my professional acquaintances in the SEM industry (as Hungary is so small that gossip travels faster than some downloaded files).

But these are all assumptions. I’ll forward this blogpost to Dennis, and we will see how he reacts. Of course, I will kindly ask Startlap’s representatives on this slightly confusing issue, too.

Let me know if you experience similar semi-fused solutions in other (emerging) countries, please.

Posted in AdSense, advertising, Central Eastern Europe, Dennis Woodside, Emerging markets, Google, Google Adwords, Hungary, Lap.hu, rivalry, search, Search Engines, SEM, Startlap, Tango | 4 Comments »

The best joke for search engine marketing

Posted by Annplugged on October 15, 2006

I have found a joke that is probably the best match for presenting how search engine marketing works, how it makes your site stand out, and how we try to be the most attractive in the auction system (albeit invisible).

If you have a better one, please do not hesitate to add it to the comments or send it to me (see about author page):

Marketing Two-Upmanship

A retailer was dismayed when a competitor selling the same type of product opened next-door to him, displaying a large sign proclaiming “Best Deals”.

Not long after he was horrified to find yet another competitor move in next-door, on the other side if his store. It’s large sign was even more disturbing- “Lowest Prices”.

After his initial panic, and concern that he would be driven out of business, he looked for a way to turn the situation to his marketing advantage. Finally, an idea came to him. Next day, he proudly unveiled a new and huge sign over his front door. It read,

“Main Entrance”!

Posted in advertising, contest, joke, Jokes and Humor, rivalry, search, Search Engines, search strategies, SEM, SEO | Leave a Comment »

Google AdWords Training on YouTube?

Posted by Annplugged on October 10, 2006

So now if training, let’s see what YouTube offers on AdWords tips and tricks. I am truly disappointed that free trainings are only available in the US, you lucky ones over the sea…) 🙂

As Inside AdWords says “The first round of AdWords Seminars will be offered in select cities: Los Angeles, San Mateo, Chicago, New York City, Miami, and Boston.” But they also call the attention to the continuation of the series for which updates are available by filling out a form
So back to YouTube, is there any long distance course? Well, the first trial for ‘AdWords training’ keywords was unsuccessful:

Video results for ‘adwords training’ No Videos found for ‘adwords training’
OK, let’s check ‘seminar’ The result is the same: Video results for ‘adwords seminar’ No Videos found for ‘adwords seminar’ All right (sigh). What about SEM training? Pops up 6 hits, but sadly enough, probably the closest one is ‘Boeing extreme landing training’ (maybe to do with landing pages)

How about search engines? That’s it! Promising list, good stuff just by the look of it: mostly SEO stuff (not overviewed clips, even if a guy called SageRock re/appears on almost every page uploaded by himself), then more popular stuff like the bizarre commercial for the Japanese search engine and another for Google Brain Talk search engine (the futuristic Google), one for a somewhat weak comedy entitled Ernest the search engine but at least it is short, and event snippets like the short recording on 2006 SES conference and the Google Dance.

I expect Google will not miss out on publishing the free AdWords course to let others get close to the know-how. will they? Oh, and a bit of foolproof tagging should help a lot. For me, definitely.

Posted in advertising, Adwords, clips, Course, Google, Google Adwords, search, Search Engines, search strategies, SEM, SEO, statistics, Training, Video, YouTube | 1 Comment »

How threatening is click fraud in the Hungarian search landscape?

Posted by Annplugged on September 27, 2006

Very briefly, and luckily, not much, at least, compared to the much wider The sensational click fraud symphony in C by Wolfgang Amadeus Press

reaching English speaking search landscape.

Why not? I asked László Fazakas manager from Arcanian Consulting SEM agency.

Basically, he said three arguments:

First, due to the limited number of Hungarian speakers in the world and in Hungary (the latter is 10 million speakers, and approx. 2-3 million users), we have a natural defense against click fraud: the Hungarian market is of relatively limited size. So the Hungarian guy called Roland Kiss in Business Week’s cover story stating that he can make up to 70.000 USD per month through ‘paid reading’ (practically click fraud) did not get rich from targeting Hungarian marketers. On the one hand, he would have needed to suck away all the total monthly national revenue from the whole Hugnarian market for that, according to Laszlo’s estimation. On the other hand, the article states that he was heavily exploiting the content network run by Yahoo, and as you can see in József’s research, Yahoo is non-existent for Hungarian users, in sharp contrast to Google’s strengthening presence: Google (62.71%), Lap.hu (a link catalog: 25.16%), Vizsla24 (7.41%), Tango.hu (1.43%)

 

Further, the Hungarian internet culture is still in its infancy, and as a consequence, there are very few really popular sites in Hungary (e.g. Origo, Index, Startlap), and a growing number of smaller sites (like the fledgling blog community of Blogter). These bigger sites and portals have personal contacts with online marketing agencies and marketers, so we could say that the 300-500 sites woth being considered are easily manually picked and not automatically included in the content network. Besides, Etarget (the sole major rival of Google Inc. in Hugnary) has managed to make successful contracts with large scale site owners for click based ads. So what counts as a big fish in Hungary is more controllable this way and provides a sort of additional natural protection against vivid fraudulent clicks.

Third, it is the domain process: unlike in the US where it takes some minutes to get a domain name, we have a long and painful process to acquire a domain in Hungary, consequently, web sites are not mushrooming from one moment to the other.

Regardless of these contextually given protective measures, search agencies as well as other online and interactive agencies are concerned about the news sensationalizing click farms, paid reading sites and whatnot. So they feel the need to assure clients that the search industry is a trustworthy field, therefore, the unknown and exaggerated phenomenon of click fraud will be treated, and due analytical attention (and compensations) will be paid.

I have run through some of the comments on Business Week site, and I have the impression that Google will need to further enhance their communication with the public regarding algorithms, the proportion of click frauds (already promised to be shown in Google Analytics, as far as I understood), the way Google controls the speedily growing content network etc.

The other thing I have found totally clear is that everybody takes it naturally that internet based marketing should be 100% accountable and accurate, while there are no huge scandals and regular press releases on old media accountability. Why not?

Escaping back to PR, print ad and direct mail campaigns (as one marketing agent, Henry from Silicon Valley was writing on Sept 22) appearing as an expectation on the clients’ side seems to be absolutely baffling for me. Admittedly, it is not a source of income for TV ad viewers to watch highly untargeted ads, and it is impossible to get paid for reading print ads, but there is a lot of money openly thrown out of the window, undetected. No noisy press releases either.

Last, I assume click fraud should be acknowledged as a criminal activity with legal consequences in the near future: it is clear from the interviews of the Business Week that those who misuse the system either are (pretend to be) unaware of click fraud having a ‘fraudulent nature’ (surprise surprise), or they are simply enjoying earning money illegally and getting away with it. True, there are no news on lawsuits involving average citizens for their clicky wrongdoings.

Posted in Accountability, AdSense, advertising, Click fraud, Content Networks, domain, Emerging markets, Etarget, Google, Hungary, Index.hu, Lap.hu, news sites, Old media, Origo, rivalry, search, Search Engines, SEM, Startlap, statistics, Tango, Vizsla24 | 2 Comments »

Hungarian news sites in the Google News & the AdSense content network

Posted by Annplugged on August 9, 2006

If you are interested in what Hungarian sites are crawled for news items in the Google News service, Philipp Lenssen’s page (Google Blogoscoped) gives a good overview.

Following the order of sites in his list, let’s have a closer look at the sources, and check if they are making profit from AdSense or not:

168 óra (hours): Hungarian weekly, the English option is placed in a really challenging place, hidden as the last item on the left side of the menu entitled Aktuális. Banners, flash–no AdSense

BosNewsLife: “Central Europe’s First Christian News Agency”

Budapest Business Journal: quite self-explanatory on content. The site has a “Featured links” part (hotels, entertainment etc.), besides pop-ups and banners, but it is not quite clear how advertisers can get in this section–no AdSense ads.

Budapest Sun: their positioning is true ‘Hungary’s leading English language newspaper.’ And the site utilizes the AdSense solution to generate further income. Not without flaws though: “Stop the viloence: Calls from public and foreign ministry.” Maybe it is more dangerous than violence?

The Budapest Times: excerpt from the editorial policy “Our coverage is unbiased, independent and 100% to British/German standards of journalism, offering in-depth stories on politics, business, economy, social issues, culture and the arts.” Many button size banners (among them banners in Hungarian for some genuine taste), no AdSense.

Caboodle: belongs to the All Media Hungary Group (similarly to PestiSide ) and is part of the AdSense content network (both sites, in fact)

Gizmodo: ‘a technology weblog dedicated to everything related to gadgets, gizmos, and cutting-edge consumer electronics.’ It is available in several other languages besides English (Italian, Spanish, French–no Hungarian option though). The site is part of the Gawker Media network–and I have no idea why it is enlisted under the ‘Hungary’ category on Philips’ list. Anybody help me? Anyway, besides graphic ads “You can buy a text link immediately by visiting Adbrite.”

Global Auto Systems Europe: industry news (cars, of course) “Based in Budapest, Hungary Global Auto Systems Europe is serving world-wide audience with Central European automotive industry research and analysis capabilities.” No AdSense.

HVG: Hungarian economic weekly, the English option is placed in a really challenging place: can you see ‘English summary’ in the middle of the left side of the menu? Banners, flash, banners, flash, banners, flash etc.–no AdSense.

Játékok (Games): online game magazine. The language is quite inconsistently mixed–more for the Hungarian gamez audience than for foreigners. AdSense ads run at the bottom–least efficient placement.

MédiaInfo (MediaInfo): hmm, for the English version you need to check out the last icon on top of the site (with all the customized orange icons it is again puzzling to spot it immediately)–that’s The Flag. Tha target readers are those that are working in the media industry. No AdSense.

MTI (the abbreviation of the Hungarian Telegraph Office) ‘Hungarian News Agency Corp.’ for more than 125 years. News only for subscribers, who cannot see AdSense. I liked this headline “New rhinos quarantined but pleased with local melons” It would be appetiser to read about fresh melon services or how about the zoo?
Portfolio: I only got the error messages from Google News (404) but the name of the site works: Online financial journal with tiny letters, lots of content and few banners. No AdSense, unfortunately. UPDATED version of 22 Aug: “The most frequently crawled online financial journal with tiny letters, lots of content and few banners. No AdSense, unfortunately(!): as a reader I miss it, what if I thought of buying a related article?”

Believe it or not, the list ends here–hopefully expands in the future as many other news sources are not crawled yet.

Posted in AdSense, advertising, Blogoscoped, Content Networks, Google, Hungary, news sites | 4 Comments »

‘google’ and ‘magyar’ and the search results

Posted by Annplugged on August 3, 2006

The noble fourth place for the keywords ‘google’ and ‘magyar’ is taken by the search-engine-index.co.uk, which aims to show you a promising list of Hungarian search engines. Take it with a pinch of salt, though.

Some of them are simply unused (and probably unknown) by now, like the pioneering HUDIR (Hungarian directory), or the one called Goliat. And there is one that takes you to an adult page, the one called ‘Hungary Guide’ (it is redirected to many naked ladies, rather than to a catalog or a search engine).

For a better list see this previous post.

Anyway, what is interesting to us if there is a competitor (agency) for Google regarding key word advertising in Hungary and not merely competitors for search traffic. Next time, I will have a look at the PPC adverstising options for those who wish to target Hungarian customers–Google and its rival(s).

Posted in advertising, Goliat, Google, HUDIR, Hungary, rivalry, search, Search Engines | 1 Comment »