The Online Audience

8/14/2019 The Online Audience

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The Online

AudienceOctober 2007


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The online audience

Today's online audience

Online behaviour

Broadband

Media usage

eCommerce

The European market


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Todays onlineaudience


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4.66.2

7.28.7

10.7

12.714.2

17.5

19.1

21.122.0

23.6 24.024.6 25.1

27.228.1

29.3 29.830.9

32.0

Millions of people

Over 32m people now onlineused in last 12 months

Source: Gfk NOP World, To December 2006

Dec1997

Dec1998

Dec1999

June1997

June1998

June1999

June2000

Dec2000

June2001

Dec2001

June2002

Dec2002

June2003

Dec2003

June2004

Dec2004

June2005

Dec2005

Jun2006

Dec2006


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13%

19%

27%

35%

42%

67%65%

63%62%60%

10%14%

16%19%

23%

28%31%

38%41%

45%47%

50% 51%

53% 54%58%

71%69%67%66%

65%

15%

20% 22%24%

28%

33%

39%

45%

48%50%

52%54% 55%

57% 57%61%

41%

60%59%55%

44% 44%45%

47%49%

52% 54%

2% 4%7% 9%

48%52%

9%11%

ase: All adults (15+) in Great Britainource: NOP FRS Survey n=15,471, To December 2006

Intend to use in next 12 months

Used in last 12 months

Broadband at home

Home Internet use

Dial-up at home

Current/Future Usage

Dec1996

Dec1997

Dec1998

Dec1999

June1997

June1998

June1999

June2000

Dec2000

June2001

Dec2001

June2002

Dec2002

June2003

Dec2003

June2004

Dec2004

June2005

Dec2005

June2006

Dec2006


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UK online households

Source: Continental Research Autumn Internet Report 2007

Millions

%o

fUKHousehold

s

6.5 7.8 10.3 12.5 12.5 14.0 14.2

26%

31%

41%

50% 50%

56% 57%60%

2000 2001 2002 2003 2004 2005 2006 2007

15.4


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u u

Used in last month

30.7

10.6

29.1

2.30

5

10

15

20

25

30

35

Q2 96 Q4 96 Q2 97 Q4 97 Q2 98 Q4 98 Q2 99 Q4 99 Q2 00 Q4 00 Q2 01 Q4 01 Q2 02 Q4 02 Q2 03 Q4 03 Q2 04 Q4 04 Q2 05 Q4 05 Q2 06 Q4 06 Q2 07

Numberofusers(millions)

All Work Home Academic

Source: BMRB Internet Monitor, Wave 41, August 2007


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2%

17%

22% 23%

17%19%

1%

13%

17%19%

16%

34%

15 - 17 18 - 24 25 - 34 35 - 44 45 - 54 55+

Estimated 15+ Internet user population (32.0m)

Estimated total GB 15+ population (48.0m)

Internet Profile vs. GB profile

Source: Gfk NOP World, December 2006


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Internet Profile vs. GB profile

51%

19%21%

30%

20%

52% 48%

24%

35%

21%

30%

49%

Male Female AB C1 C2 DE

Estimated 15+ Internet user population (32.0m)

Estimated total GB 15+ population (48.0m)

Source: Gfk NOP World, Internet User Profile Study, December 2006


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Summary

15.4m households now online in the UK

In the last year, internet penetration has risen by morethan 7% to 32m people

Women 25-34 now spend more time online than menin the same age group (Ofcom CommunicationsReport Aug 2007)

One quarter of all Britons online are over 50 and 30%of total time spent on the internet is by the over 50s

(Ofcom Communications Report Aug 2007) The online audience is now far more representative of

the population as a whole.


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Online behaviour

A ti iti d i t t f i t i


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Activities used internet for in past sixmonthsNumber of users (millions)

8.2

8.7

10.0

10.4

10.7

10.8

10.9

13.1

13.6

16.5

18.1

24.3

28.2

Academic Work

Info on a TV programme

Listen to Radio

Business Purposes

Play games

Downloading Music

Use Instant Messaging

Job opportunities

To listen to music

Look at listings

Travel plans

Info on a particular activity

Using e-mail

Source: BMRB Internet Monitor, Wave 41, August 2007 Base: All Internet users aged 15+


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People visit numerous sitesNumber of websites visited in the last month

2524

28

20

1 to 9 sites 10 to 19 sites 20 to 50 sites 50+ sites

% of users in the last month


Average = 30 sites

Base: All Internet users aged 15+


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Types of site visited in last monthNumber of users (millions)

8.8

9.0

10.7

10.9

11.0

11.6

13.4

14.5

18.0

18.3

Other Online News Site

Education Sites

ocal Governement/ Council

Auction Sites

Price Comparison Sites

Music Sites

Local Info Services

Weather Sites

Map/Direction Sites

A Site Where You Can Buy a

Product or Service



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Summary

58% of internet users are now going onlineeveryday

As people become more experienced online,they are visiting an increasing variety ofwebsites for a broadening range of activities.

Whilst the internet is now a mass reach

medium, diverse surfing habits mean that it isequally effective at targeting niche audiences.


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Broadband


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Broadband access at home

90%

0%10%

20%

30%

40%

50%60%

70%

80%

90%

100%

Q2

01

Q3

01

Q4

01

Q1

02

Q2

02

Q3

02

Q4

02

Q1

03

Q2

03

Q3

03

Q4

03

Q1

04

Q2

04

Q3

04

Q4

04

Q1

05

Q2

05

Q3

05

Q4

05

Q1

06

Q2

06

Q3

06

Q4

06

Q1

07

Q2

07

Q3

07

Percentageofhomeusers

Base: All who have used the Internet at home on a computer in the last monthSource: BMRB Internet Monitor, Wave 41, August 2007


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UK broadband households

10.3

12.6 12.6

14 14.215.4

2.4

4.2

8.0

10.2

13.2

0.75

2002 2003 2004 2005 2006 2007

Total Households with Internet Households with Broadband

Source: Continental Research Autumn Internet Report 2007

UKHouseholds(millions)


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Comparison of narrowband andbroadband users

8 9 81

6 610

159

69

9288 88

9993 93

8983

8994

89

Male Female 15-19 20-24 25-34 35-44 45-54 55+ AB C1 C2DE

%

Narrowband Broadband


NB those not a total of 100% are Dont Know responses Base: All home internet users with broadband, All home internet users without broadband


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Half of home broadband users services are nowabove 2 MB

35%

16%

37%

37% 47%

28%

0% 20% 40% 60% 80% 100%

Aug. 06

Aug. 07

< 2MB

2 MB

>2 MB

Base: All home broadband users who knew their speed ofconnection (Aug 06 - 359; Aug 07 - 396)

Source: BMRB Internet Monitor Aug 2006; Aug 2007

38% have used wireless broadband at home in the last month

Q. What is the connection speed of your home broadband?


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Summary

The take-up of broadband is continuing apace,90% of home users are now using a broadbandconnection compared with 84% a year ago.

Wireless remains on the increase with 38% usinga wireless broadband connection in the home inthe last month

Almost half of home broadband users servicesare now above 2 MB


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Media usage &attitudes


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76

25

27

35

47

21

23

45 TV

Internet

Radio

Newspapers

Magazines

7

22

48

5

18

Weekdays

Saturdays Sundays


Online second only to TV% of media time for all internet users


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Attitudes to online advertising

I like to receive emails from companies

Banner ads help me find interesting things onthe web

I have researched a brand seen advertisedonline

Online sponsorship is an effective way ofadvertising a product or service

I prefer to see online ads that relate to the

content of the sites viewed I pay more attention to adverts on sites I trust

Source: BMRB Internet Monitor August 2007. Strongly/slightly agree shown.

16%

21%

41%

46%

53%

53%

Base: All Internet users aged 15+

I t t TV i i i


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Internet TV viewing isgrowing

7%

5%

8%

11%

15%

10%

Internet Users 2006 Internet Users 2007

Watched TV programme

broadcast via the internet(streaming)

Downloaded a programme viathe internet and watched itlater

Net internet TV(streamed/downloaded)1.9m

1.3m

3.0m 2.9m 2.4m

4.3m

Numbers watching internet TV in last 12 months

Source: Continental Internet Report, Autumn 2007


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Social Networking

The average UK visitor to social networking sites spent5.8 hours per month on those sites and made 23.3 visitsin August significantly heavier than in France andGermany.

Heavy users of social networking sites devoted 22 hourseach to their favourite sites, averaging 71 visits perperson.

Light users spent significantly less time engaged. They

made 4.6 visits per person and consumed 47 pages ofsocial networking content over the course of the month.

Source: ComScore Segment Metrix, August 2007


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Summary

Internet users are spending more time online than they do listening tothe radio andreading newspapers and magazines. Online is a greatway to reach audiences in the middle of the day.

The internet is having a significant influence on peoples consumption

of traditional media Online advertising is more effective if seen in the right context.

Audiences say they prefer advertising that relates to a sites content,and pay more attention to ads on sites they trust.

Overall 26% of internet users have listened live or to a previously

broadcast radio show via the internet The number of people watching shows that they have previously

downloaded from the internet has doubled in the last year


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eCommerce


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Number of eshoppers & ebankers

22.0

16.9

0

5

10

15

20

25

Apr

99

Aug

99

Dec

99

Apr

00

Aug

00

Nov

00

Feb

01

May

01

Aug

01

Nov

01

Feb

02

May

02

Aug

02

Nov

02

Feb

03

May

03

Aug

03

Nov

03

Feb

04

May

04

Aug

04

Nov

04

Feb

05

May

05

Aug

05

Dec

05

Feb

06

May

06

Aug

06

Nov

06

Feb-

07

May-

07

Aug-

07

Numberofusers(millions

eShoppers eBankers



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30.2bnspent online during 2006

Up 57.3% on 2005

Source: IMRG, January 2007


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eCommerce growing at rapid ratequarterly ecommerce spend

14.0

0

2

4

6

8

10

12

14

16

Nov

00

Feb

01

May

01

Aug

01

Nov

01

Feb

02

May

02

Aug

02

Nov

02

Feb

03

May

03

Aug

03

Nov

03

Feb

04

May

04

Aug

04

Nov

04

Feb

05

May

05

Aug

05

Nov

05

Feb

06

May

06

Aug

06

Nov

06

Feb-

07

May-

07

Aug-

07

billion

s


Products bought online


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Products bought online% of internet users who have bought products online in last 6months

3%

4%

4%

4%

5%

6%

7%

7%

7%

13%

13%

18%

19%

24%

Sports Equipment

Furniture

Tickets for events

Computer software or programme

Groceries

Holidays

Computer hardware

Airline Tickets

Toys and Games

Electrical household products

Any Holiday or Travel

Clothes/jewellery

Books

Any DVDs, Music, Videos

Source: TGI.net, wave 13, October 2005-September 2006 Base: All Internet users aged 15+

B i d t ft hi


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Buying products after researchingonline

2

1

1

8

18

70

Other

Through TV

Post

Telephone

Visited shop

Bought online%

Source: BMRBs Internet Monitor, Wave 41, August 2007

73%of internet users who have

sourced information online

bought the last product

they researched

Base: All Internet users aged 15+ who have bought a product that they

sourced information about on the internet

Type of advert that has prompted an


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Type of advert that has prompted anonline purchase in past month

101

104

110

111

112

114

114

115116

117

118

121

124

127

Mobile Phones

Teletext

Radio

Posters

TV

Daily papers

Fliers or postcards

Sunday papersMagazines

Adverts on Products Purchased

Transport

Direct mail

Online ads

Promotional emails

Source: TGI.Net Wave 13, Oct 2005 Sept 2006

Indexed again all internet users

Those who intend to shop

online are more likely to

say that promotional emails,

online ads, direct mail

ads and transport advertising

has prompted them to

make an online purchase,

compared to other forms

of advertising

Base: Those intending to shop online in the next 6 months


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A strong eChristmas in 2006

Shoppers spent 7.7bn online in the lead up to Christmas 2006, up fromalmost 5bn the previous year (54% rise).

Online Sales exceeded 3 billion a month for the first time in November2006 as Britains 25 million online shoppers reaffirmed their affinity withonline Christmas shopping.

E-retail sales worth 3.6 billion were recorded for December, half a billionmore than IMRGs forecast of 3.1 billion.

Online sales were strong across all sectors from toys to televisions,food to fashion.

Consumers just couldnt get enough of internet shopping at Christmas it seems to match their mood and aspirations. Sales demand

outstripped supply capacity by a significant margin. Otherwise saleswould have been higher still.

- Jo Tucker, Managing Director IMRG


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Summary

E-commerce spend experienced a slight drop in Q2 2007 but pickedup in Q3 and is expected to continue rising across the festive period.

3 in 4 internet users shop online. Online shoppers buy on average5.7 times a month, and buy an average of 5.8 items. On averageshoppers spend 200 a month online (NOP IUPS June 2006).

Websites where people can buy products and services are still themost popular destinations for people online.

41.7% of adults have used the internet in the last 12 months topurchase products/services (NRS/JICIMS Pop Survey Jul 06-Jun 07)

Online information plays a crucial role in peoples purchase decision

making process. The internet is an invaluable resource to consumers when

researching purchases and isoften more trusted than other sources.The majority then move on to make the purchase online.


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The European market

170m Europeans access the


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170m Europeans access theInternet at home

5.3

21.8

29.6

30.4

35.9

47.4

Switzerland

Spain

Italy

France

UK

Germany

Source: Nielsen//NetRatings global internet trends, Q2 2007

-1%

+14%

+6%

+6%

+18%

+23%

+4%

million

s

YoY

mos a o uropean n erne


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mos a o uropean n erneusers come from Germany and theUK

Germany

28%

UK

21%

France

18%

Italy

17%

Switzerland3%Spain

13%

Source: Nielsen//NetRatings global internet trends, Q2 2007


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Broadband is booming

8%

12%

15%

25%

28%

28%

92%

88%

85%

75%

72%

72%

France

UK

Spain

Germany

Switzerland

Italy

Proportion of the active home universe

up to128k

>128k

Source: Nielsen//NetRatings NetSpeed report, September 2006

88% of those online in the UK in Sept 06 were using a high speed connection

Europeans Spend Over 11 Hours


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Europeans Spend Over 11 Hours

Online Per Week

12.6

12.1 12.1 12

11.4 11.3 11.311 10.9

10.4 10.3

Denmar

k

Spain

Italy

Franc

e

Swede

n

UK

European

Average

Belgiu

m

Netherland

s

Norwa

y

German

y

AverageNumbero

fHoursPerWeek

[Base: All European internet users]

2005: 10.2,+ 11% Year-on-Year

Source: EIAA Mediascope Europe 2006


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Summary

Germany and UK continue to lead the market interms of total audience connected, with 83mbetween them

High growth rates continue among mostcountries for at home user population

People connected are also spending increasingamounts of time online

Areas like cybercafe, wireless and other sharedaccess points increase this further, but remainhard to measure


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The Online

AudienceOctober 2007

Documents

The Online Audience