Essay, Research Paper: Usage Of The Internet

USERS OF INTERNET
Nielsen Media Research, which began studying Internet usage in
1994, reported that in 1995 40% of Americans over the age of 12 had
access to computers. (Nielsen Media Research, July 1996) 10% of
Americans over 16, were online at that time. In their most recent
survey, taken in December 1996 and January 1997, Nielsen reported
that 23% of Americans over 16 are now Internet users, an amazing
rate of growth. At least 50.6 million Americans are now online,
according to Nielsen. (Associated Press, March 13, 1997) "At this
rate, within two years the citizens of cyberspace will outnumber
all but the largest nations." (Anderson, July 1, 1995, p. S4)
Additionally, according to Nielsen, the number of users who have
gone online looking for product information grew from 19% in 1995
to 39% today. Still, only 15% of Internet users have actually
purchased products online, indicating that the business value of
the Internet is in promoting products, not in sales. (Associated
Press, March 13, 1997)
According to survey results released by DeWitt Media in
February 1997, almost two-thirds of all marketers have advertised
on the Internet. 54% of those surveyed plan to increase their
online advertising budgets in 1997. (Online Marketing Growing
Strong, January 21, 1997) In addition, Advertising Age reported,
"of the 100 Leading National Advertisers, 46 have purchased Web
advertising" through July 1996, and nearly all have corporate Web
sites. Many plan to make online advertising a line-item in their
budgets for the first time this year. (Williamson, October 21,
1996)
However, the survey also revealed that only 11 of the top
advertisers in traditional media placed among Web advertising's top
50 spenders. 67% of all online ad spending came from "Web-based
companies, telecommunications companies or computer companies -
[who] have nothing to lose and everything to gain by promoting a
networked, computer-based medium." (Ibid) Still, other companies
- financial services, travel, healthcare and entertainment, for
instance - benefit from Internet ads. (Ibid)
As for big-ticket items such as automobiles, Internet ads give
consumers a chance to access product information. According to
Nielsen vice president Paul Lindstrom, "It's unrealistic to think
there's going to be a large market to buy a car over the Web...."
Lindstrom says that the value of the Internet is in promoting items
with hefty price tags. (Associated Press, March 13, 1997)
According to survey results released by DeWitt Media in
February 1997, almost two-thirds of all marketers have advertised
on the Internet. 54% of those surveyed plan to increase their
online advertising budgets in 1997. (Online Marketing Growing
Strong, January 21, 1997) In addition, Advertising Age reported,
"of the 100 Leading National Advertisers, 46 have purchased Web
advertising" through July 1996, and nearly all have corporate Web
sites. Many plan to make online advertising a line-item in their
budgets for the first time this year. (Williamson, October 21,
1996)
However, the survey also revealed that only 11 of the top
advertisers in traditional media placed among Web advertising's top
50 spenders. 67% of all online ad spending came from "Web-based
companies, telecommunications companies or computer companies -
[who] have nothing to lose and everything to gain by promoting a
networked, computer-based medium." (Ibid) Still, other companies
- financial services, travel, healthcare and entertainment, for
instance - benefit from Internet ads. (Ibid)
As for big-ticket items such as automobiles, Internet ads give
consumers a chance to access product information. According to
Nielsen vice president Paul Lindstrom, "It's unrealistic to think
there's going to be a large market to buy a car over the Web...."
Lindstrom says that the value of the Internet is in promoting items
with hefty price tags. (Associated Press, March 13, 1997)
Advertisers are concerned with more than the size of the
Internet audience, which numbers almost one in four adults in the
United States. Demographics and behavior patterns are also crucial
to advertising decisions. Men, according to Nielsen, are still the
largest users of online services, but "women, who only five years
ago made up a tiny 10% of the online world, now are nearing parity.
... 42% of online users are women." (Ibid) In response to this
trend a number of advertisers such as Kellogg, Bristol-Myers Squibb
and Express clothing, have recently opened Web sites targeted to
women. (Hodges, November 6, 1995, p. 30)
Households with children under 18 make up the largest Internet
subscribers at 62.8%, according to Nielsen. (Nielsen Media
Research, July 1996) The Internet is also "more attractive to
younger Americans: 33.1% of 18-to-24-year-olds and 32% of 25-to-
34-year-olds used it in 1995." (Fawcett, October 16, 1995) In
addition, just under half (48.7%) of adult Internet users have
college degrees and 40.3% are in professional or managerial
occupations. Further, more than half of all Internet households
report annual incomes exceeding $50,000. (Nielsen Media Research,
July 1996)
Nielsen also reports that 25% of all subscribers use their
online service at least every other day, and 50% use it at least
weekly. About 15% of Internet users have purchased goods online.
"Items most frequently purchased include entertainment items such
as books, CDs, tapes and videocassettes (32%), [computer] hardware/
software (21%), and airline tickets (14%)." Travel purchases in
general, including airline tickets, hotel reservations and car
rentals, account for 31% of all Internet spending, according to
Nielsen. (Ibid)
Works Cited
1. Adhost Client Services at http://adhost.com/service. html,
1997.
2. Anderson, Christopher, "The Accidental Superhighway," The