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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 mid-1998.
  • 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 women.
  • 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.

.Neil Rochlani

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.

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