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Research_Roundup_Time
| Research Roundup Time
So what's up with the Internet? Is it a fad that is slowly
diminishing? Or is it still a stunning revolution that will
change human history entirely? The dot com crash certainly put
some tarnish on the ole boy. But it seems the smudges are only
on the perception of the Internet. It seem that online consumer
and business growth continues unabated, even in the midst of a
treacherous high-tech meltdown.
My new favorite analogy comes from the auto industry. At one
point early last century experts predicted there would be more
than 500 automakers. When consolidation began to hit in the
nineteen teens and 1920s, with automakers failing and getting
gobbled up right and left, many feared the auto revolution would
come to an abrupt end. So much for expert opinions.
So let's look at some recent research to see what is actually
occuring on the Internet.
E-consumers become "power shoppers"
Online "power shoppers" spent an average of $1,200 online during
the 12 months prior to a spring survey by iCustomer Observer.
This compares to all other e-shoppers who spent an average of
$480 online during the same year. These power shoppers
constitute the top 33 percent of Internet consumers. The average
age of this high-dollar consumer is 38, with an average annual
income of $67,000. Regular e-shoppers are an average age of 55
with yearly salaries of $34,000.
Net usage dropped slightly when school let out
Internet traffic dropped by 1 percent worldwide between May and
June 2001 according to a usage report from comScore and
Diameter, DoubleClick's research group. The study reported there
were 128.4 million unique Internet visitors in the U.S. and
296.5 million worldwide in June 2001. The study attributed the
slight decline in U.S. traffic to summer vacation. The report
did note that travel sectors experienced a lift of 2.2 percent
between May and June, with 84.5 million visitors worldwide
checking travel websites.
High-speed connectivity grows
For those who believe the Internet won't come fully into its own
until consumers experience the power of high-speed connections,
the good news continues. An August 2001 report from Parks
Associates finds that as of mid-2001, there are 8.6 million U.S.
households using high-speed Internet connections. That's up from
4.8 million U.S. households last year. The company predicted the
number will reach 11.3 million by year-end.
Print readership continues to decline
The Internet was supposed to draw revenues away from print
magazines, but during its early days, the Net did exactly the
opposite. The dot com boom created a binge of ad buying. Those
days are sadly, and suddenly, over for most magazines. And now
the readership decline is on, complicating a dearth of ad sales.
Lyra Research found that 24 percent of Internet users in the
U.S. have canceled subscriptions to general news magazines since
they began using the Internet. A hearty 19 percent of Internet
users claim they have significantly decreased their magazine
reading, while only 2 percent say they have significantly
increased their magazine reading since using the Net.
Consumers are using the Internet more
Has the dot com downturn affected the amount of time Internet
users spend online? In a study conducted in February and March
of 2001, the Pew Internet and American Life Project found that
more than one half of Internet users in the U.S. are using the
Internet the same amount of time as they were six months ago.
The study found that 29 percent of users actually increased
their usage, while only 17 percent decreased time spent online.
Newcomers and Net veterans alike indicated that more than 60
percent of their Internet time was just for fun.
So those are the facts. As we try to gain some understanding of
how the Internet is developing, it helps to get a well-defined
view. The ongoing development of Internet commerce has been
beleaguered by hyped-up bubbles and tales of complete
decimation. In reality, e-business continues to grow.
About the author:
Rob Spiegel is the author of Net Strategy (Dearborn) and the
upcoming Shoestring Entrepreneur's Guide to Internet Start-ups
(St. Martin's Press). You can reach Rob at spiegelrob@aol.com
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