Download - Turkish Internet Sector
Turkish Internet Sector Overview
May 2008
Sina AfraeBay Germany, DirectorGittigidiyor (eBay Turkey), Member of Board
eBay 2008 Sina Afra 2
Turkey is catching up to the Top 10 Internet countries worldwide
208
137
88
60
49
43
38
34
31
29
25
24
22
19
16
15
14
11
11
10
10
26
United States
China
Japan
India
Germany
Brazil
United Kingdom
South Korea
France
Italy
Turkey
Russia
Canada
Mexico
Spain
Indonesia
Australia
Taiw an
Poland
Netherlands
Malaysia
Argentina
75%
71%
70%
69%
69%
65%
62%
60%
59%
50%
49%
46%
40%
29%
25%
22%
20%
18%
10%
7%
5%
37%
Australia
Canada
South Korea
United States
Japan
Netherlands
United Kingdom
Taiw an
Germany
Italy
France
Spain
Malaysia
Turkey
Poland
Argentina
Brazil
Mexico
Russia
China
Indonesia
India
Internet Users by
Country in 2007 (m)
Internet Penetration Rate by
Country in 2007 (%)
Sources: Population figures 2007: CIA World Factbook
Internet User Statistics: World Internet Stats; eBayOnly countries with more than 10 m Internet Users were covered
Turkey is worldwide No. 11 in Internet Users
Turkey’s penetration is promising for future growth
(European Medium 59%)
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Key metric of broadband penetration in Turkey is aligning with leading countries
Sources: Organization for Economic Cooperation and Development (OECD),
OECD Broadband Portal," November 6, 2007Turkish Telecom 12/ 2007*Turkish Telecom, 09/2007
Broadband is growing strongly
Broadband Subscriptions
by Country in 2007 (m)
• Broadband in Turkey started late, 2003 with 55,000 subscriptions, but with tremendous growth
• Avg. Connection speed is 1 Mbps
• Monthly fees dropping
• 2,000,000 IP DSLAM ports withconnection speed up to 70 Mbps are going to be deployed the next years (Start was Jan 2008) * - This is especiallyimportant for IPTV
66,2
27,2
17,5
14,4
14,4
14,3
9,3
8,1
7,5
5,5
4,8
4,7
3,0
2,6
2,5
2,3
1,9
1,6
1,5
1,5
1,4
7,5
US
Japan
Germany
South Korea
UK
France
Italy
Canada
Turkey
Spain
Netherlands
Mexico
Australia
Poland
Sw eden
Belgium
Sw itzerland
Denmark
Portugal
Austria
Finland
Norw ay
N 66,2
eBay 2008 Sina Afra 4
eCommerce in Turkey is growing continuously
Turkish eCommerce Total Volume in M USD
Notes:
Including New Goods, Used Goods, Motors, Travel, Entertainment, Real Estate, PersonalsSources:BKM ; Internet Card Centre Reports, eBay estimates
1.800
3.265
5.569
8.95581%
61%
71%
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
2006a 2007a 2008e 2009e
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Total Market in M USD YoY in %
eBay 2008 Sina Afra 5
Also other metrics indicate that Turkey is catching up on the Internet Sector…
Note: based on availability of publications, databases and number of online services (ie the entire transaction can be
completed online), features important for information availability, citizen access, portal access and service delivery; excludesWeb sites for sub-national units, obscure boards and commissions, local government, regional units and municipal offices
Source: Brown University, Taubman Center for Public Policy, "Global
E-Government, 2007," August 2007, eBay
54
51,1
49,4
44,3
44,1
43,8
43,5
43,5
42,9
74,9
0 20 40 60 80 100
South Korea
Singapore
Taiwan
US
UK
Canada
Portugal
Australia
Turkey
Germany
Top 10 Countries Worldwide Ranked by eGovernment 2007 (100-point scale)
eBay 2008 Sina Afra 6
… all kind of metrics, indeed
32,41%
13,00%
7,41%
6,78%
4,15%
3,51%
3,38%
3,30%
3,29%
1,97%
0% 5% 10% 15% 20% 25% 30% 35%
US
China
Russia
South Korea
Germany
France
Turkey
UK
Canada
Italy
Top 10 Countries Hosting Phishing Web SitesWorldwide, 2007 (% of total)
Source: Anti-Phising Working Group (APWG), "Phishing Activity Trends: Report for the Month of May, 2007," July 2007
Notes: a) based on Websense Security Labs data b) Phishing is an attempt to criminally and fraudulently acquire sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication
Top 10 Countries Worldwide, Ranked by active Facebook Users )
eBay 2008 Sina Afra 7
The internet population is young – 77% of the internet population is between 16 and 34 years old
45,03%
32,09%
14,12%
6,80%
1,55% 0,39%
16-24 25-34 35-44 45-54 55-64 65-74
Internet Users in Turkeyby ages
Source: Nokta Internet Technologies 2008, GfK Turkey Report 2006
� 66% of Internet users is male, 34% is female
� Average age is 26 both for male and
female users
� 53% is in A/B/C1 SES � 22% is graduated from university
� 68% is single
� 45% is employed, 37% is studying
� 39% speaks English
� 52% has PC in the house � 91% has cellphone
� 84% is watching TV daily (avg. time
spend is 3 hours)
� 63% is listening to the radio daily (avg.
time spend is 2 hours)� Average Internet connection is 2.5 hours
/ day
� Average Internet connections per month
is 22
Who are they?
eBay 2008 Sina Afra 8
Online advertising will become the third largest advertising area in 2010 – especially when penetration of online ad technologies increase
51% 49%
32%31%
6% 5%
7%2%
4%4%
3%4%1%1%
0%
20%
40%
60%
80%
100%
2007 2010
TV Newspapers Online Magazines Outdoor Radio Other
2333
50
89
178
249
0
50
100
150
200
250
300
2005 2006 2007 2008 2009 2010
Turkish Advertising Marketby medium (in %)
Online Growth Outlook in M USD
2005 - 2010
Online
share 2% 3% 6% 7%< 1% 2%
Note: Net Advertising Revenues
Sources: Türkiye Reklam Arastirma Merkezi (TRAM); eBay estimates
2.3 B USD 3.6 B USD
eBay 2008 Sina Afra 9
The Internet Landscape in Turkey
Rank Site Type Ownership
1 google.com.tr Search Google
2 facebook.com Social Network Facebook
3 live.com Portal Microsoft
4 google.com Search Google
5 youtube.com Video Google
6 Milliyet.com.tr News Dogan Media
7 hurriyet.com.tr News Dogan Media
8 mynet.com Portal Mynet
9 yahoo.com Search Yahoo
10 rapidshare.com File Sharing Rapidshare
11 blogger.com Blog Google
12 msn.com Search Microsoft
13 ekolay.net Portal Dogan Media
14 sourtimes.org Information Independent
15 gittigidiyor.com eCommerce eBay & Independent
16 Sahibinden.com eCommerce Independent
17 wikipedia.org Information Wikipedia
18 internethaber.com News Independent
19 haberturk.com News Ciner Yayin
20 imageshack.us File Sharing Imageschack
21 sabah.com.tr News Merkez
22 haber7.com News Kanal 7
23 netlog.com Social Network Netlog
24 blogcu.com Blog Nokta Internet
25 hepsiburada.com eCommerce Dogan Media
Top 25 Online Companies according Alexa.com:
• News and Information as well as Search are the types of internet activities with the strongest traffic
• Google and Dogan control each 4 out of the top 25 sites
eBay 2008 Sina Afra 10
Outlook: Turkey’s Online Sector in 2010
Turkish Internet Sector in 2010: • 32-36 M Internet Users with a 10 B USD eCommerce Market and 250 M USD Online Advertising Market
• Turkey will be one of the top 10 countries in Internet Users and catch up in eCommerce and Advertising
The strategic importance of gateways will increase• There are certain activities that drive a user’s decision to go to one site over another
• We call these activities gateways: email, search, shopping, news, weather, maps, etc. The importance of gateways is increasing
• The game could be over for email and search but beyond these activities, no site dominates a gateway….and the gateways on mobile devices are different and completely up for grabs
eCommerce will continue to develop strongly• The Turkish internet users will arrive in the next 2-3 in the eCommerce and the buyer side will continue to evolve.
• The seller side will introduce new ways of shopping (e.g. Exclusive Shopping Sites; Private Sales; Activity based Shopping etc.) and improved technologies (e.g. catalogue based Shopping Comparison)
• Mass customization as well as niche players will enter the long tail – this will lead to a strong entrepreneurship in the eCommerce segment
Consolidation is inevitable will continue – 2006 was likely just the beginning: • We expect that some companies will successfully pursue a global multi-business strategy, but it will likely be done via partnerships,
acquisitions, and/or investments as opposed to a pure organic build strategy
• Turkish Stand-alone companies and brands can survive as independents, but will likely still be pursued most aggressively by larger companies to penetrate consumers and advertisers
• The value of a business that cannot compete on engagement and monetization will become greater for an acquirer that has a strategic hole in its business mix than the value of the business on a stand-alone basis
We expect the accelerated introduction of advanced advertising technologies and international partnerships in the advertising segment
Foreign VC and Business Angel money will discover Turkey and create the financial framework of a strong entrepreneurship driven market
Majo
r D
evelo
pm
en
ts:
eBay 2008 Sina Afra 11
These strategic themes will continue to define success in Turkey
1. Maximize engagement – owning differentiated and complementary gateways is required to drive reach, frequency and duration� Expand the user base – consumers, publishers, advertisers, buyers and sellers
� Increase usage areas – applications (email, search, VoIP, IM, blogging, software), services (payments, stores, advertising), information (maps, weather, news), entertainment (sports, user-generated content, WebTV), and commerce
� Develop a multi-platform strategy – PC, mobile device, and the television
2. Optimize monetization – engagement is necessary but not sufficient� Advertising – branded, pay for performance search (click, call, acquisition, lead generation),
direct marketing
� e-Commerce – retail, marketplace, stores, shopping comparison
� Subscriptions – VoIP, email, fantasy sports, dating, careers, games
� Payments – transactions, communications, B2B, PC, mobile, etc.
3. Be part of the internalization – to capture two increasingly critical benefits� Leverage learning across markets in order to capture growth
� Provide Incremental benefits to users (consumers, advertisers, sellers, etc.) due to a global footprint
eBay 2008 Sina Afra 12
Sina AfraeBay Germany, German Leadership Team
+49 – 163 – 3229 402
Contact Details