CommerceNet News: CommerceNet and Nielsen Media Research Issue Results of Spring 1999 Internet Demog

Sally Khudairi (sk@zotgroup.com)
Thu, 17 Jun 1999 12:31:07 -0400


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COMMERCENET AND NIELSEN MEDIA RESEARCH ISSUE RESULTS OF SPRING 1999 INTERNET
DEMOGRAPHIC SURVEY

Electronic Commerce Grows 40% in Nine Months with 55 Million Internet Users
Shopping Online

For immediate release --

Contact -- Peri Drucker, CommerceNet
+1.408.446.1260 ext. 215 <peri@commerce.net>

Sally Khudairi, ZOT Group
+1.617.818.0177 <sk@zotgroup.com>

SAN FRANCISCO -- June 17, 1999 -- CommerceNet and Nielsen Media Research
today announced the results of the April 1999 Internet Demographic Survey,
the sixth in a series conducted by CommerceNet and Nielsen Media Research.
The Survey reveals that the number of Internet users in North America has
now reached 92 million -- 55 million of whom shop online. "Today, nearly
half of North America use the Internet. We use it to communicate, to learn,
to shop and to buy. It is as integral a part of our lives as the
telephone,” said Mark Resch, Executive Vice President of CommerceNet. “This
is propelling traditional companies to transform themselves using the
Internet and is creating a tidal wave of e-commerce.” Women also contribute
significantly to the growth in electronic commerce: over a nine-month
period, the number of online purchases made by female users increased by
80%.

EXPANDED INTERNET USAGE AND COMMERCE

The Web's explosive commercial growth is causing users in record numbers to
employ it in all aspects of their day-to-day lives, from research and
education, to entertainment and shopping. According to the Survey, the
number of Internet users in the U.S. and Canada increased 16% in just nine
months, totalling more than 92 million users.

How these users access the Internet is also changing: 72 million users
access the Internet from home, 46 million from work, 28 million from school
and 32 million from other locations, including a friend's home or workplace,
a library or cybercafe.

INFORMED SHOPPERS PURCHASE MORE ONLINE

The Survey stressed the importance of the Web for shopping, as experienced
users are discovering new ways to use it as an online shopping and buying
tool. A total of 55 million people, or 60% of the Internet population, have
used the Web to shop. The Survey defines "shopping" as researching and
comparing the price and features of products and services online, regardless
whether or not an actual online purchase was made.

"The Web is changing the rules, both on the consumer as well as the business
side," explained Loel McPhee, Director of Strategic Partnerships at
CommerceNet. "In competing for consumers in business and at home, we are
seeing many companies adapt their strategies to respond to a more informed
consumer. This proves especially challenging, as the majority of these
companies are just beginning to understand the nature of electronic
commerce."

Books, computers, clothing and CDs/videos top the list of items shopped for
online, but they are all distant seconds to automobiles and automotive
parts, with 18.2 million online shoppers as of April 1999. Among users who
purchase online, 9 million made purchases once a month, and 1 million made
purchases at least once a week.

WOMEN GAINING MOMENTUM

For the first time in two years, more online purchases are being made by
women, reflecting a 9% growth since last summer. The number of women buyers
increased more than 100 percent in four of the top five purchasing
categories: those who purchased books increased 105%, CDs/videos 145%,
clothing 118% and computer hardware 160%. The fifth purchasing category,
travel, had an increase of 63%.

"Nearly half of the Internet users are women. With online purchasing
becoming easier, the majority of online shoppers are verly likely to become
online purchasers. Women have played a major role in that trend, and we
expect to see them continue to lead the way," added Resch.

Women and men generally purchase the same types of products online, with
books and CDs/videos occupying the top spots. However, gender differences
are more visible in online shopping trends. Clothing and books are the top
shopping destinations for women, whereas automobiles/automotive parts and
computers top the shopping destinations for men.

ABOUT THE INTERNET DEMOGRAPHIC SURVEY SERIES

CommerceNet and Nielsen Media Research have conducted demographic and usage
studies of the Internet since 1995. These surveys are widely used by
research organizations, government agencies and leading companies in a
variety of industries. The Internet Demographics Survey series is based on
telephone interviews with randomly selected respondents age 16 and over, and
statistically represents the overall populations in the United States and
Canada. More than 7,200 participants were interviewed for the April 1999
survey.

Please see attached Fact Sheet for additional information on the
CommerceNet/Nielsen Media Research Internet Demographic Survey. Complete
results of the survey are available online at
http://www.commerce.net/research via GIDEON, the Web-based application that
enables users to analyze demographic characteristics of the Internet
population through multi-dimensional queries.

ABOUT COMMERCENET

CommerceNet is the largest grouping of electronic commerce influencers in
the world, working to make e-commerce easy, trusted and ubiquitous. Launched
in April 1994 in Silicon Valley, its membership has grown to more than 500
e-commerce developers and end-users worldwide from hardware and software
companies, financial institutions, telcos, government agencies, systems
integrators, service providers, net market makers and others.

For more information about CommerceNet, see http://www.commerce.net

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COMMERCENET AND NIELSEN MEDIA RESEARCH ISSUE RESULTS OF SPRING 1999 =
INTERNET DEMOGRAPHIC SURVEY

Fact Sheet

Contact -- Peri Drucker, CommerceNet
+1.408.446.1260 ext. 215 <peri@commerce.net>

Sally Khudairi, ZOT Group
+1.617.818.0177 <sk@zotgroup.com> =20

OVERVIEW

In recognition of the increasing importance of electronic commerce, =
CommerceNet and Nielsen Media Research began demographic and usage =
studies of the Internet. These surveys are widely used by research =
organizations, government agencies and leading companies in a variety of =
industries. The Internet Demographics Survey series, launched in 1995, =
is based on telephone interviews with randomly selected respondents age =
16 and over, and represents the overall populations in the United States =
and Canada. More than 7,200 participants were interviewed for the April =
1999 survey.

KEY FINDINGS

The results of April 1999 Survey are statistically representative and =
population projectable to the more than 225 million persons over the age =
of 16 in North America.

ONLINE ACCESS

The number of Internet users in North America has now reached 92 =
million, as characterized below.

Gender Composition

Female 46%=09
Male 54%=09

Use Location

Home 72 million
Work 46 million=09
School 28 million
Alternate 32 million

ONLINE SHOPPING =09

55 million people shop online. The Survey defines "shopping" as =
researching and comparing the price and features of products and =
services online, regardless whether or not an actual online purchase was =
made.

Gender Composition

Female 41%
Male 59%
=09
Overall Top Shopping Categories

Cars/Car Parts 18.2 million
Books 12.6 million
Computers 12.4 million
Clothing 11.6 million
CD's & Videos 11.4 million

Top Shopping Categories for Male Users

Cars/Car parts 12.6 million
Computers 9.4 million
CD's/Videos 7.0 million
Books 6.4 million
Home Electronics 6.3 million

Top Shopping Categories for Female Users

Clothing 6.9 million
Books 6.2 million
Cars/Car parts 5.6 million
CD's/Videos 4.4 million
Travel 4.0 million

ONLINE PURCHASING

28 million users make purchases online; 9 million of whom purchase =
online at least once a month. 1 million users purchase online at least =
once a week. 13% of those who purchased online did so for the first time =
last month. Business users represent 29% of the online population, with =
27 million people making online purchases from work.

Gender Composition

Female 38%
Male 62%

Overall Top Purchasing Categories

Books 9.2 million [65% increase over 9 months]
CD's/Videos 7.2 million [112% increase over 9 months]
Computers 5.4 million [23% increase over 9 months]
Clothing 4.5 million [67% increase over 9 months]
Software 4.0 million [0% increase over 9 months]

Top Purchasing Categories for Male Users

Books 5.1 million [42% increase over 9 months]
CD's/Videos 4.5 million [96% increase over 9 months]
Computers 4.1 million [5% increase over 9 months]
Software 3.1 million [0% increase over 9 months]
Clothing 2.1 million [31% increase over 9 months]
Travel 2.1 million [0% increase over 9 months]

Top Purchasing Categories for Female Users

Books 4.1 million [105% increase over 9 months]
CD's/Videos 2.7 million [145% increase over 9 months]
Clothing 2.4 million [118% increase over 9 months]
Travel 1.3 million [63% increase over 9 months]
Computers 1.3 million [160% increase over 9 months]

THE INTERNET DEMOGRAPHIC SURVEY SERIES

Complete results of the April 1999 and previous surveys are available =
online at http://www.commerce.net/research via GIDEON, the Web-based =
application that enables users to analyze demographic characteristics of =
the Internet population through multi-dimensional queries.
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