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