Usage of the internet
Usage of the internetUSERS 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...
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