Electronic Commerce School of Library and Information Science I. Internet demographics What is demographics? How is demographic information collected?

Electronic Commerce

School of Library and Information Science

I. Internet demographics • What is demographics? • How is demographic information collected? • Problems of net demographics II. Who is collecting net demographics? • What are the demographics of the net? • Who is here and what are we doing?

Electronic Commerce


“Understanding the evolution of internet demographics is an important ingredient in effectively using the internet for educational, research, and commercial applications. Hitting a moving target is challenging, and much remains to be learned”Virtual Laboratory, UC Berkeley (2002). http://elsa.berkeley.edu/vlab/sites2.html

Electronic Commerce


What is demographics?The quantitative study of characteristics of human populations

People, births, deaths, migrationThe data are used to develop snapshots of different populations at different points in time

Demographic trend analysis is especially important for businessTypically uses survey methodology to gather data

US Census is the most extensive demographic survey in the world http://www.census.gov

Electronic Commerce


How is demographic information collected?Face-to-face interviewTelephone interview

Survey This can be delivered in the presence of the researcher

It can be left in a public place It can be mailed It can be delivered electronically

Electronic Commerce


F-2-F Mail Telephone Electronic

Cost High Low Moderate LowResponse rate High Low Moderate Low/Mod.Control High Low Moderate LowDiverse sample Mod. High Moderate HighDetailed info. High Low Low Low

Comparing survey delivery methods

Electronic Commerce


An electronic survey can be delivered in several waysPersonal email or attachment and return

Email to a conference and return Downloaded from an FTP or a web site and return Form on a web page and submitWhat problems are involved in collecting net demographics? A low response rate A strong selection bias that makes representative

sampling difficult

Electronic Commerce


Site BasedCensus based

User/PC Based

Census basedDetailed tracking of entire siteAdvertiser audits for dynamically assigned ads Difficult to capture demographics and flow across sites

Sample based Not possible to capture complete usage across sitesDemographics information availableReach and frequency analysis Track usage across the Web

Electronic Commerce


Site level information tells us less and less about how content is being consumed

This is because more interactions are happening at the end users’ PCs

PC metering approach captures less and less of installed base of Internet capable devices

Especially with TVs, wireless laptops and palmtopsPC operating systems or browsers capture less and less of the complex interactions between media object and the user

This is due to the increasing use of plug-ins and other media objects

Electronic Commerce


I. Internet demographics • What is demographics? • How is demographic information collected? • Problems of net demographics II. Who is collecting net demographics? • What are the demographics of the net? • Who is here and what are we doing?

Electronic Commerce


So how many people are there on the net?

World Total 605.60 millionAfrica 6.31 millionAsia/Pacific 187.24 millionEurope 190.91 millionMiddle East 5.12 millionCanada & USA 182.67 millionLatin America 33.35 million

Nua. (2003). How many online? http://www.nua.com/surveys/how_many_online/index.html

Electronic Commerce


Who is collecting Internet demographics?CommerceNet is a neutral, non-profit consortium dedicated to advancing the growth of global electronic trade through business process interoperability and the creation of open Business Service NetworksLaunched in Silicon Valley in 1994, its membership includes 500 companies and organizations worldwide They include the leading banks, telecom

companies, VAN's, ISPs, online services, and software and services companies, as well as major end-user

http://www.commerce.net

Electronic Commerce


Their mission is to transform the net into the world's largest and most efficient marketplace dramatically changing how the world transacts businessThey gather and disseminate information on technology, business processes and regulatory policies

They focus on “precompetitive” global and industry-wide issues so that members can benefit from economies of scale and avoid competing on the wrong thingsIt is a virtual organization, relying on the expertise and resources of members as well as other industry groups

Electronic Commerce


Nielsen Media Research (Dun & Bradstreet Corporation) is active in 40 countries and headquartered in the US

Provides competitive advertising intelligence information in the U.S. and 30 other markets worldwideNielsen Interactive Services (1995) provides research to advertisers, media, IT, and online service companiesFocus on growth and use of the net and interactive television technologiesNielsen//NetRatings is joint venture between Nielsen Media Research, ACNielsen and NetRatings

http://www.nielsenmedia.com

Electronic Commerce


For the web:Nielsen//NetRatings offers eight services for market research needsAudience Measurement Services(sm)

Reports and user defined query capability with in-depth measurements of net user behavior at home and at workMonthly and weekly reports with audience size and composition down to the page level, time spent, advertising demographics, comprehensive trending

http://www.nielsen-netratings.com/

Electronic Commerce


AdRelevance Service(sm)Comprehensive and timely intelligence on where, when, how and how much web marketers and their competition are advertising onlineCaptures virtually all advertising on the commercial web

@plan Services(sm)Target best prospects with comparative web site profiling informationFor advertisers, agencies, publishers and others who buy and sell Web advertising

Custom Measurement Service(sm)Custom-assembled net audience panel recruited to the requirements of the client to provide data analysis and reports for critical business decisions

Electronic Commerce


eCommerce Strategies(sm)Provides information on customer loyalty and retention, sales conversion ratios, size and demographics of audiences

Global Internet Trends(sm)Provides an authoritative information on worldwide net access and usage trends

Internet Investment Strategies(sm)Meeting the needs of those involved in online financial markets by identifying breaking trends, emerging sectors and who is on the way up or down

Electronic Commerce


Internet Media Strategies(sm)Delivers information about popularity of streaming media, comparisons of media sites, for online media businesses

PRIZM Internet Targeting(sm)Provides comprehensive measures of user activity by lifestyle profile categories or clusters (income, employment, education, household composition, mobility, ethnicity, urbanization and housing)

WebRF(sm)A reach and frequency planning tool for evaluating impact of planned ad campaigns prior to launch using demographic information and a planning system based on real people and real activity

Electronic Commerce


September 2002 Global Internet Index Average Usage*

September August %Change# of sessions per month 19 19 0.00# of unique domains visited 49 48 0.77Page views/month 778 785 -0.97Page views/session 40 41 -2.90Time spent/month 10:17:45 10:17:44 0.00Time spent/session 0:31:44 0:32:22 -1.95Duration of a page viewed 0:00:48 0:00:47 0.98Active net universe 220,444,008 218,038,452 1.10Current net universe estimate 385,564,028 385,998,080 -0.11*Home Internet Accesshttp://www.nielsen-netratings.com/hot_off_the_net.jsp

Electronic Commerce


Table 1: Nielsen//NetRatings Top Gifts & Flowers Sites, Week Ending February 8 (U.S., Work)

Brand or Channel Unique Audience(000) Unique Audience(000) % Growth Week of 2/8/04 Week of 2/9/03All Gifts & Flowers 2,686 687 291%Hallmark Shopping 798 687 16%RedEnvelope 498 266* 87%FTD.com 390* 170* 129%

Source: Nielsen//NetRatrings, February 2004* Site did not meet Nielsen//NetRatings’ minimum sample size requirements. Projected and average measures for these sites may exhibit large changes as a result.

Kim, G. and Wong, T. (2004). Valentine’s Day brings lovers and love seekers to the web, according to Nielsen//Netratings. http://www.nielsen-netratings.com/news.jsp

Electronic Commerce


Kim, G. and Wong, T. (2004). One in three Americans use a search engine, according to Nielsen//Netratings. http://www.nielsen-netratings.com/news.jsp

Table 1. Nielsen//NetRatings Top 5 Search Destinations, January 2004 (U.S., Home and Work)

Search Destinations Unique Audience (000) Active Reach (%)1. Google 59,327 39.372. Yahoo! Search* 45,774 30.383. MSN Search* 44,651 29.634. AOL Search 23,394 15.535. Ask Jeeves 12,792 8.49

Source: Nielsen//NetRatings NetView, January 2004 * Note: Domain AutoSearch error pages have been removed from the rankings for MSN Search and Yahoo! Search. The sites above that do not exclude Domain AutoSearch error pages consequently reflect higher audience traffic.

Electronic Commerce


114.5 million (39% of Americans and 76% of active online users) used a search engine during January 2004

Each spent nearly 40 minutes using search engines during the month

Table 3. Nielsen//NetRatings Most Important Features of Search EnginesFeature % of Respondents Ranking Feature as

“Most Important”1. Can Find Relevant Information 51.8%2. Can Get Credible Results 34.2%3. Get Results Quickly 33.0%4. Has an Easy to Use Interface 18.6%5. Is Well Known 17.5%5. Has Cool Design 17.5%

Source: Nielsen//NetRatings WebIntercept Survey, November 2003

Electronic Commerce


An example of an early net demographics study by Neilsen and CommercenetThe representative sample included three types of users in the US and Canada: net users, on-line service users and non-users

The baseline questionnaire was made up of more than 40 multiple-part questionsThe survey involved a gross sample of ~280,000 calls and yielded more than 4,200 completed interviews

This is a response rate of 1.5%

Electronic Commerce


Cell 1: Direct access to the net and have used it in the last three monthsMay or may not have an on-line service account

Cell 3: No recent net access in last 3 months and no on-line service.

Cell 2: Access to an on-line service and no direct net access

Sample frame:

Goal: 1,000 in each cell

http://www.nielsenmedia.com:80/ interactive/commercenet

Electronic Commerce


PersonSelection

InternetUser track

Non-InternetUser track

Chat track

FTP track

Telnet track

Push track

email track

Web track

email track

Terminologyawarenesstrack

General Technologytrack

Demographics

What they did

Usenet track

http://www.nielsenmedia.com:80/interactive/commercenet/qcamp.htm

Electronic Commerce


Household income > $80,000

Have at least a college degree

Own a home computer

Have had a computer for five or more years

Are male

Consider them-selves computer professionals

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

U.S. population as a whole Newcomers Long time users

The study illustrates significant differences between long-time internet users, newcomers, and the US population as a whole(by percent)

Electronic Commerce


The Pew Internet & American Life ProjectMission: create and fund original, academic-quality research on the impact of the net on children, families, communities, work places, schools, health care and civic/ political life

Goal: to be an authoritative source for timely information on the net’s growth and societal impactThe basic product will be phone and online surveysData-gathering efforts will involve reporting from government agencies, academics, and expertsObservations of what people do when they are onlineOther efforts that try to examine individual and group behavior

http://www.pewinternet.org/

Electronic Commerce


Rural Areas and the Internet (2004)Internet penetration has grown in rural communities,

but the gap between them and suburban and urban communities has remained constant over time

2000: 41% of rural, 51% of urban and 55% of suburban residents online2003: 52% of rural, 67% of urban and 66% of suburban residents online Rural net penetration is roughly 10% behind the national average in each of the last four years Rural income explains some of this variation 47% of rural families < $30K/yr. (39% urban, 29% suburban)

Electronic Commerce


Rural use of the netAge explains some of the variation 22% of rural population is >65 (14% urban, 16%

suburban)Lack of competition in ISP is also a factor 29% of rural users have one ISP (7% urban, 9% suburban)Broadband is more available outside of rural areas Rural home broadband users grew from 3%-19% of online population Urban home broadband users grew from 8%-36% Suburban home broadband users grew from 7%-32%

Electronic Commerce


http://www.pewinternet.org/reports/chart.asp?img=112_exprace.jpg

Rural Areas and the Internet: Race/ethnicity

Electronic Commerce


Rural Areas and the Internet: Activities

http://www.pewinternet.org/reports/chart.asp?img=112_activitiesusr.jpg

Electronic Commerce


A 2002 survey “The Growth in Online House Hunting” found that 40 million wired Americans have used the net to search for houses or apartments

2,259 Internet users were surveyed between March 1 and May 19, 200236% of the nation’s 111 million net users had done housing searches online27% of 89 million online adults had done such searches (March 2000)Internet house hunters are diverse and are distributed relatively equally along racial, gender, and income lines

http://www.pewinternet.org/reports/reports.asp?Report=84&Section=ReportLevel1&Field=Level1ID&ID=366

Electronic Commerce


Internet house hunters:Are between the ages of 18 and 29 47% between ages 18 and 29 with net access have looked for houses or apartments online 37% are ages 30-49 and 25% are 50-64 Have higher education levels in all income groups Those with college and graduate degrees are more experienced users 62% have been online for over 3 yearsAre unattached but well connected

Electronic Commerce


They areSingle 58% looking for housing information online are unmarriedWired 46% of broadband users have house-hunted online Compared with 35% of those with slower

connections 58% of net house hunters are daily net usersSuburban professionals and executives 55% live in suburban areas 36% work in professional or managerial occupations

Electronic Commerce


“Email at work” (2002) found that few workers feel overwhelmed and most are pleased with the way email helps them do their jobs

62% of employed Americans have net access and 98% - (57 million) use email on the jobThe large majority say their experience with email is manageableThey spend a modest amount of a typical workday reading and writing emailSome emails replace telephone calls, faxes or mail50% say that email volume has grown in the last year; for the other 50%, it has remained the same

http://www.pewinternet.org/reports/reports.asp?Report=79&Section=ReportLevel1&Field=Level1ID&ID=346

Electronic Commerce


Other findings:60% of work emailers receive 10 or fewer messages on an average day 23% receive more than 20 and 6% more than 5078% send 10 or fewer messages on an average day 11% send more than 2073% spend an hour or less per day on email 23% spend < 15 minutes per day handling email48% say email volume has increased over the past year 46% say work email volume has stayed the same over the past year

Electronic Commerce


Also53% say almost all of incoming email is work-related58% say almost all email they send is work-related 75% say a little of the email received or sent at work is personal 71% say only a little email they receive is spam72% say email helps them communicate with more people 62% say email makes them more available to co- workers 33% say email has made them too accessible85% prefer conversations when dealing with workplace problems and other sensitive issues

Electronic Commerce


They surveyed 2,117 Americans, 1,017 of whom are net users, from May 19 to June 21, 2000 about trust and privacy online

We have great concerns about breaches of privacyWe also do a “striking number of intimate and trusting things” onlineThe overwhelming majority never had a seriously harmful thing happen to them online

We overwhelmingly want the presumption of privacy when online

A great many net users do not know how their online activities are observed and do not use available tools to protect themselves

http://www.pewinternet.org/reports/index.asp

Electronic Commerce


UCLA Center for Communication PolicyThe 1st UCLA World Internet Report (2004)A recently completed 14 country survey of net useSlides are taken from the World Internet Project .ppt presentation at:http://www.ccp.ucla.edu/pages/NewsTopics.asp?Id=45

Finding: television viewing down among net users in all survey countries

High levels of trust in online informationThere is a gender-based “digital divide” in many countriesHigh levels of online use among the poorest citizens in all of the survey countries

Electronic Commerce


UCLA World Internet Project: % of Internet Users

Stage 2 – Usenet (10-14-03)

59.2%

45.9%

17.5%

31.2%

50.4%

60.9%

32.9%

40.8%36.4%

66.1%

24.2%

71.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Electronic Commerce


UCLA World Internet Project: % of Males and Females

Who Use the Internet

Stage 4 – Usenet x Gender (10-14-03)

63.6%

50.4%

20.3%

41.7%

54.7%

67.8%

37.8%

47.2% 46.4%

67.7%

25.1%

73.1%

69.0%

27.2%

34.0%

28.8%

53.8%

46.2%

21.5%

15.1%

41.7%

55.0%

23.5%

64.4%

0%

20%

40%

60%

80%

Britain Germany Hungary Italy Japan Korea Macao Singapore Spain Sweden Taiwan USA

Percent of Respondents

Male Female

Electronic Commerce


UCLA World Internet Project: Information on the Internet: Is it Reliable and Accurate? (Users Age 18 and above)

Stage 5 – RELIA x Usenet (10-14-03)

7.2%

18.5%

5.0%

25.3%

4.8%

18.3% 17.6%

36.0%

7.1%

54.0%

13.4%

53.1%

47.3%

54.9%

13.3%

59.7%

26.4%

58.0%

69.7%

32.3%

0%

20%

40%

60%

80%

Britain China(Urban)

Germany Hungary Japan Korea Singapore Spain Sweden USA

Perc

ent o

f Adu

lt U

sers

None of it or Some of it Most of it or All of it

Electronic Commerce


UCLA World Internet Project: Internet Purchasers (Users)

Stage 2 – PurInt (10-14-03)

6.2%

20.5%

48.3%

3.4%

14.7%

30.5% 30.9%

11.4%8.1%

6.3%

41.3%

12.9%

38.2%

34.3%

0%

10%

20%

30%

40%

50%

60%

70%

Britain

Chile

(San

tiago

)

China

(Urba

n)

German

y

Hunga

ryIta

lyJa

pan

Korea

Macao

Singap

oreSpa

in

Sweden

Taiwan

USA

Perc

ent o

f Use

rs

Electronic Commerce


The Dieringer Research Group is now the owner of several early net studies

Originally conducted by CyberDialogAmerican Internet User Survey (now Interactive Consumer)The Internet Consumer: A Continuous Advisory ServiceHistorical Internet Data: Demographic highlights of Internet usersHistorical Internet Data: Internet User Survey andHighlights

http://www.thedrg.com/

Electronic Commerce


The American Interactive Consumer Survey is a large benchmarking survey

It uses multiple methods to measure and profile net users Online surveyFocus groupsTelephone sampling of both business and personal users of the web, email and other applications

The goal is to generate an overall picture of net user trends

Comparisons with use of other media are included

Electronic Commerce


The survey includes: U.S. business, personal, academic and mobile net

activity from all types of access locations. Expanded coverage of non-users and “disconnectors”

who have tried and rejected online services Expanded coverage of email users Business data on use of intranets

New coverage of local information needs and usage

Electronic Commerce


Random sample telephone survey techniques were used to establish a random sample of 1000 net users

A 30-minute telephone interview was used with the questionnaire This was designed to parallel the online survey

Focus groups were designed to explore three levels of user experience:

Perceptions of current experiences User problems, unmet needs, and values Interest in emerging internet applications

Electronic Commerce


http://www.thedrg.com/d/mcr/aics/bulletins/12112002_retail.htm

A new kind of eshopper

Electronic Commerce


Hypershoppers spend at least $500 online and $500 or more offline after first seeking information online

13.5 million (19% of net users ) who use the net in some way for shopping60% are men with an average 5+ years onlineThey tend to be better educated, making them more skilled at finding and manipulating informationThey are 40, married (70%), with kids (45%) and a household income of $66,100 (above the U.S. median of $37,600)

http://www.thedrg.com/d/mcr/aics/bulletins/12112002_retail.htm

Electronic Commerce


They are significantly more likely than other shoppers to:Rely on print to find web sites for products and servicesUse high speed broadband online accessWatch TV while also going onlineGo to manufacturer sites or retailer sites for informationClick on ads and make online or offline purchases as a resultUse the Internet for music, movies and sports contentGo online for customer service more often than using the telephone

Electronic Commerce


Selected sources used by hyper-shoppers to find web sites with products & servicesChannel % of Shoppers Word of Mouth 74%Links from Another Site 68%Articles In Print Media 66%Print Ads 54%TV Ads 52%Online Advertising 40%Direct Mail 39%Radio Ads 31%Billboards 32%Children's Mention 24%http://www.thedrg.com/d/mcr/aics/bulletins/12112002_retail.htm

Electronic Commerce


http://www.thedrg.com/d/mcr/aics/bulletins/11022002_branding.htm

The net influences our purchasing decisions and brand awareness

Electronic Commerce


The Graphics, Visualization, & Usability (GVU) Center's World Wide Web User Surveys

The GVU lab is a research center affiliated with Georgia TechParticipation in the surveys is encouraged by the W3C

and other major net organizationsThe first survey was in conducted during January 1994The 10th Survey was run from October 10, 1998 through December 15, 1998

All results are made free to the public and there is access to the collected archivehttp://www.cc.gatech.edu/gvu/user_surveys/

Electronic Commerce


Basic Sections:General demographics Technology demographics Data privacy Web and internet usage

Special Sections:Web authors Politics Webmasters Cultural issues

Ecommerce:Net Shopping Information gathering & purchasingOpinions about ecommerce

Contents of the survey

Electronic Commerce


How old are we?

16.1% 26-3013.6% 31-3511.4% 36-4012.2% 41-45

http://www.cc.gatech.edu/gvu/user_surveys/survey-1998-10/graphs/ general/q54.htm

Electronic Commerce


US Europe Other US Europe Other

23%

76%

35%

18%

64%

81%

What are we?

Electronic Commerce


2.7%

4.8%

7.3%

11.5% 11.2%

21%

11.8%12.4%

How much do we earn?

Electronic Commerce


How often do you do it?

9/day 5/day 1-4/day Few/wk 1/wk 1/mo

36.9%

19.9%

35.8%

6.6%

.5% .3%

Electronic Commerce


And for how long?

.9%

9.2%11.0%

13.2%

34%

21.2%

10.6%

5-6 7-9 10-20 20-40 40+0-1 2-4

Electronic Commerce


What do you look for?

30.7%

26.6%

8.9%

29.9%

8.2%

Electronic Commerce


3.7%8.3%

50.2%

21.1%16.6%

Like a lot Some Dislike a lotLike a little Dislike a little

You like ads?

Electronic Commerce


You spend $$?

17.5%

7.9%

32.7%

37.5%

3.6%

<$50 50-100 1-500 >%500 D/N

Electronic Commerce


10.7%

42.2%

29.6%

13.3%

3.6%.6%

Never <1/mo 1/mo >1l/mo 1/wk >1/wk Daily

How often?

Electronic Commerce


What do you dislike?

5.6%

20.9%

13.2%

10.8%

19.3%

23.2%

7.3%

Nothing Bad design Slow Other Confusing Obnoxious Couldn’t find

Documents

Electronic Commerce School of Library and Information Science I. Internet demographics What is demographics? How is demographic information collected?