- Neil Rochlani of the StrategisGroup
More Than Half of All U.S. Adults Now Online
"Internet usage continues to increase, fueled by skyrocketing
home use and more women online; online shoppers doubled spending in past year"
More than half of all U.S. adults are now online, daily home use of the Internet
has skyrocketed, and women now make up 50 percent of the online population, according
to the Internet User Trends report released today by the Washington DC-based Strategis
Group. In addition, online shoppers more than doubled their spending in the past
year, according to the report.
__Communications industry analysts at The Strategis
Group publish in-depth industry research reports on the Internet, cable TV, satellite,
telecom, broadband and wireless industries. The Strategis Group's market studies,
valuations, and strategic planning provide crucial information to communications
industry leaders in the U.S. and internationally.
- The Mainstreaming of the Internet
"The Internet is going mainstream in two ways. First, it is often the primary
choice for communication, entertainment and commerce," said John Zahurancik,
vice president of broadband studies for The Strategis Group. "Daily home use
of the Internet has skyrocketed in the last year, increasing 50 percent. Fifty-seven
million adults -- 28 percent of the population -- now use the Internet from home
every day," he said. "For many Americans, the Internet is now an essential
part of their daily lives," he added.
__ "Adult Internet users are also watching less
TV, as compared to non- Internet users," he said. The average Internet user
spends 2.2 hours a day watching television, compared to the 4.3 hours the average
adult spends watching TV. On average, home Internet users spend 7.2 hours a week
online, he added.
__ "Second, Internet users are increasingly a reflection
of mainstream America, with more than half of all US adults now online, more women
online, and the median household income of Internet users steadily falling. The Internet
is less and less the domain of an information elite," he said.
__ In total, 106 million adults -- or 53 percent of
the adult population -- use the Internet, either at home or at work or both. Woman
now make up almost 50 percent of the online population, accounting for some 52 million
users, Zahurancik said.
The top three online activities are research, shopping and "surfing." The
percentage of adults who said they have done online shopping more have doubled their
spending in the last year, now spending about $3.6 billion monthly, compared to $1.72
billion at the end of 1998.
__ Almost half the nation's adults say they have shopped
online while at work. Shoppers, at home and at work, are still more likely to buy
offline those goods and services which they browse online. But, the number of users
spending more than $50 a month online has grown to 20 million, compared with just
8.5 million a year ago.
__ According to the Strategis Group study, there are
more than 96 million non-users of the Internet (53.6 million women and 42.8 million
men). Of the group dubbed "likely users," 53 percent say they plan to begin
using the Internet either at home or at work within the next six months.
- Internet Commerce on the Rise
Nearly 70 percent of all Internet users browse for goods and services, compared to
54 percent a year ago. This represents 73 million online shoppers, compared to just
45 million in December 1998. "Browsing" is defined as searching and comparing
among products and service options whether or not an item is actually purchased.
- 67 percent of Internet users browse at home, up from 50 percent in 1998.
- The aggregate monthly e-commerce spending rose to $3.59 billion at the end of
1999, compared to $1.72 billion at the end of 1998.
- Younger users -- 18-24 years old -- are less likely to click and purchase.
- Books, CDs, clothing, computer software and travel services are the top five
categories of online purchases. Books were the most frequently purchased item, with
nearly 45 percent of online buyers purchasing books, compared with 24 percent in
- 68 percent of Internet users say they have never bought an item as a result of
advertising on the Internet, and roughly the same number -- 64 percent -- say they
have never bought an item offline because of advertising on the Internet.
- Women and the Internet
- A greater percentage of women -- 65.2 percent -- than men -- 61.7 percent --
in the 45-54 year old category are Internet users, The Strategis Group says. Men
lead, percentage-wise, in all other age categories.
- In the world of e-commerce, women cite online shopping as a primary activity
(40.5%) more often than men (30.2%), but men still spend more online overall than
- 74 percent of women say they have sent or downloaded large files.
- 53 percent have played a video clip on their computer and 27 percent have listened
to the radio over the Internet.
- Nearly 9 percent have completed a phone call on the Internet.
This report was sent in by The Strategis
Group, an edr (e data resources) company -- with offices in Washington, D.C.,
London and Singapore.
The Strategis Group, publishes in-depth industry research reports,
provides customized consulting services and supplies continuous information solutions
to the cable TV, satellite, Internet, competitive telephony, broadband and wireless
communications industries. The Strategis Group's market studies, valuations, and
strategic planning provide crucial information to communications industry leaders
throughout the world. Internet User Trends: End-Year 1999 is available for on CD-ROM
in PDF or HTML format or in print format.