Structure of talk

1. Bits that Click:Successfully connecting in an information-rich societyMutual Fund Education Alliance 2007 eCommerce SummitJohn B. HorriganAssociate Director for Research

2. Structure of talk • Review trends in technology adoption • Examine the impacts of people’s use of information and communications technology. • Discuss implications for information providers.

3. Basic facts about communication technology adoption • 73% of American adults are internet users • 93% of teens (ages 12 through 17) are online users (Nov. 2006) • 70% of Americans who go online from home connect via high-speed (mostly cable modem or DSL) • That translates into 47% of all Americans with high-speed at home • 34% of online users have used a wireless network to go online • 74% of adults have cell phones • 63% of teens (ages 12-17) have cell phones

4. Growth in internet use (adults in U.S.)

5. Broadband penetration in the U.S., 2000-2007

6. Four propositions on the internet’s impacts • It is increasingly important for people’s information needs • Many-to-many is elemental in online experience • The internet is an outlet for self-expression • The internet is empowering for many users.

7. I. The Internet and news/information seeking

8. Getting news on the internet on the typical day (millions of users, typical day)

9. Importance of internet for political news • 31% of all Americans got news online or exchanged emails about candidates in the 2006 mid-term election cycle. • 15% of Americans said internet was primary news source for the 2006 election • That’s double the figure compared to 2002.

10. Reliance on the net for research/information-seeking • Internet 2nd most popular source for science news & information • Among young (under age 30) with high-speed at home, internet is most popular science source,. • When asked where they’d turn to first to find out more about a scientific topic, internet is most often cited • 39% of online users have read blogs/online journals • 20% got campaign news from blogs in 2006. • 36% of online users have used Wikipedia: • Half of young high-speed users have done this.

11. Other key information activities • Watching video online : • Two-thirds of home broadband users have watched some sort of online video. • Banking online: • 17% of online users did this in 2000 • 30% in 2002 • 43% by end of 2005

12. On information & news seeking… • For young people especially, media consumption habits are being formed in an online world: • They turn to the internet, and don’t get into the “dead tree” newspaper reading habit • For older users, they retain many “old media” habits, but online resources become important complements to how they get news & information.

13. II. Many-to-many is elemental to the online experience

14. Online communities & social networking • 23 million Americans active participants in online communities – from a Pew Internet 2001 study • That’s 20% of online users • Convenience of internet draws people to join groups – and use information tools to stay in touch with them. • 55% of teens have profiles on social networking sites (end of 2006). • 20% of adults have SNS profiles (end of 2006).

15. Important decisions have “many-to-many” dimensions

16. What do people mean by the internet playing an important or crucial role? • Among those who say online resources played a role in an important decision: • 34% say they got advice or support from other people • 30% said it got them to information to help them compare options • 28% said it helped them find professional or expert services • Just 5% said they got bad information during search process

17. III. The internet & self expression

18. Self-expression & user-generated content • 37% of online users have contributed to the online commons by doing at least one of these six activities:

19. How people think information & communications technology helps in creative lives • 51% of all ICT users say information appliances help them “a lot” in learning new things • Among “young & wired” (30 or younger with broadband), 65% say this. • 28% of all ICT users say information appliances help them “a lot” in sharing their ideas and creations with others. • Among “young & wired” (30 or younger with broadband), 41% say this.

20. IV. The internet is empowering

21. Civic sphere • Some evidence that those who choose to get information & news about politics online are more likely to say they vote. • People who get news about politics online are better informed about both sides of political and policy issues than those who don’t • Those who go to government Web sites take advantage of efficiency benefits & are more likely to contact government

22. Health & community • People who get health & medical information online get support from others, ask better questions of health care providers • 80% of online users have searched for some kind of health or medical information on the internet • 28% of all ICT users say information appliances help them “a lot” in working with others in their community: • Among “young & wired” (30 or younger with broadband), 42% say this.

23. P2P People-to-people = P2P People-to-amateurs = P2A Swirl of information People-to-experts = P2E P2A P2E

24. The rules are changing: what to do? • Community-building: • creating an online place where users can interact • Aggregate information: • make your website the focal point for the best information, even if that means sending users elsewhere • Be flexible: • not all users are the same, and you have to let lead users support less sophisticated ones.

25. What is an information provider to do? • Give users the tools to build trust among themselves by… • Promoting collaborative learning • Experimenting • Established organizations, with an existing base of customers or users, are at an advantage in this environment. • Shift of mindset is key: • From attracting customers & keeping them • To attracting their attention and helping them carry out the information transaction they need to.