I. Internet demographics • What is demographics? • How is demographic information collected?

1. 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?

2. “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

3. What is demographics? The quantitative study of characteristics of human populations People, births, deaths, migration The data are used to develop snapshots of different populations at different points in time Demographic trend analysis is especially important for business Typically uses survey methodology to gather data US Census is the most extensive demographic survey in the world http://www.census.gov

4. How is demographic information collected? Face-to-face interview Telephone 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

5. Comparing survey delivery methods F-2-F Mail Telephone Electronic Cost High Low Moderate Low Response rate High Low Moderate Low/Mod. Control High Low Moderate Low Diverse sample Mod. High Moderate High Detailed info. High Low Low Low

6. An electronic survey can be delivered in several ways Personal 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 submit What problems are involved in collecting net demographics? A low response rate A strong selection bias that makes representative sampling difficult

7. Site Based Census based User/PC Based Census based Detailed tracking of entire site Advertiser audits for dynamically assigned ads Difficult to capture demographics and flow across sites Sample based Not possible to capture complete usage across sites Demographics information available Reach and frequency analysis Track usage across the Web

8. 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 palmtops PC 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

9. 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?

10. So how many people are there on the net? World Total 605.60 million Africa 6.31 million Asia/Pacific 187.24 million Europe 190.91 million Middle East 5.12 million Canada & USA 182.67 million Latin America 33.35 million Nua. (2003). How many online? http://www.nua.com/surveys/how_many_online/index.html

11. 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 Networks Launched 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

12. Their mission is to transform the net into the world's largest and most efficient marketplace dramatically changing how the world transacts business They 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 things It is a virtual organization, relying on the expertise and resources of members as well as other industry groups

13. 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 worldwide Nielsen Interactive Services (1995) provides research to advertisers, media, IT, and online service companies Focus on growth and use of the net and interactive television technologies Nielsen//NetRatings is joint venture between Nielsen Media Research, ACNielsen and NetRatings http://www.nielsenmedia.com

14. For the web: Nielsen//NetRatings offers eight services for market research needs Audience Measurement Services(sm) Reports and user defined query capability with in-depth measurements of net user behavior at home and at work Monthly and weekly reports with audience size and composition down to the page level, time spent, advertising demographics, comprehensive trending http://www.nielsen-netratings.com/

15. AdRelevance Service(sm) Comprehensive and timely intelligence on where, when, how and how much web marketers and their competition are advertising online Captures virtually all advertising on the commercial web @plan Services(sm) Target best prospects with comparative web site profiling information For 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

16. 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

17. 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

18. September 2002 Global Internet Index Average Usage* September August %Change # of sessions per month 19 19 0.00 # of unique domains visited 49 48 0.77 Page views/month 778 785 -0.97 Page views/session 40 41 -2.90 Time spent/month 10:17:45 10:17:44 0.00 Time spent/session 0:31:44 0:32:22 -1.95 Duration of a page viewed 0:00:48 0:00:47 0.98 Active net universe 220,444,008 218,038,452 1.10 Current net universe estimate 385,564,028 385,998,080 -0.11 *Home Internet Access http://www.nielsen-netratings.com/hot_off_the_net.jsp

19. 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 2/9/03 All 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

20. 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 39.37 2. Yahoo! Search* 45,774 30.38 3. MSN Search* 44,651 29.63 4. AOL Search 23,394 15.53 5. 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. 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

21. 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 Engines Feature % 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

22. An example of an early net demographics study by Neilsen and Commercenet The 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 questions The 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%

23. Sample frame: Cell 1: Direct access to the net and have used it in the last three months May or may not have an on-line service account Cell 2: Access to an on-line service and no direct net access Cell 3: No recent net access in last 3 months and no on-line service. Goal: 1,000 in each cell http://www.nielsenmedia.com:80/ interactive/commercenet

24. What they did Person Selection Internet User track Web track email track Non-Internet User track Usenet track Terminology awareness track Chat track FTP track Telnet track Push track email track General Technology track Demographics http://www.nielsenmedia.com:80/interactive/commercenet/qcamp.htm

25. The study illustrates significant differences between long-time internet users, newcomers, and the US population as a whole (by percent) U.S. population as a whole Newcomers Long time users 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%

26. The Pew Internet & American Life Project Mission: 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 impact The basic product will be phone and online surveys Data-gathering efforts will involve reporting from government agencies, academics, and experts Observations of what people do when they are online Other efforts that try to examine individual and group behavior http://www.pewinternet.org/

27. 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 online 2003: 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)

28. Rural use of the net Age 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%

29. Rural Areas and the Internet: Race/ethnicity http://www.pewinternet.org/reports/chart.asp?img=112_exprace.jpg

30. Rural Areas and the Internet: Activities http://www.pewinternet.org/reports/chart.asp?img=112_activitiesusr.jpg

31. 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, 2002 36% of the nation’s 111 million net users had done housing searches online 27% 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

32. 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 years Are unattached but well connected

33. They are Single 58% looking for housing information online are unmarried Wired 46% of broadband users have house-hunted online Compared with 35% of those with slower connections 58% of net house hunters are daily net users Suburban professionals and executives 55% live in suburban areas 36% work in professional or managerial occupations

34. “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 job The large majority say their experience with email is manageable They spend a modest amount of a typical workday reading and writing email Some emails replace telephone calls, faxes or mail 50% 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

35. Other findings: 60% of work emailers receive 10 or fewer messages on an average day 23% receive more than 20 and 6% more than 50 78% send 10 or fewer messages on an average day 11% send more than 20 73% spend an hour or less per day on email 23% spend < 15 minutes per day handling email 48% say email volume has increased over the past year 46% say work email volume has stayed the same over the past year

36. Also 53% say almost all of incoming email is work-related 58% 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 spam 72% 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 accessible 85% prefer conversations when dealing with workplace problems and other sensitive issues

37. 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 privacy We also do a “striking number of intimate and trusting things” online The 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

38. UCLA Center for Communication Policy The 1st UCLA World Internet Report (2004) A recently completed 14 country survey of net use Slides 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 information There is a gender-based “digital divide” in many countries High levels of online use among the poorest citizens in all of the survey countries

39. UCLA World Internet Project: % of Internet Users Stage 2 – Usenet (10-14-03)

40. UCLA World Internet Project: % of Males and Females Who Use the Internet Stage 4 – Usenet x Gender (10-14-03)

41. None of it or Some of it Most of it or All of it 80% 69.7% 59.7% 58.0% 60% 54.9% 54.0% 53.1% 47.3% Percent of Adult Users 40% 36.0% 32.3% 26.4% 25.3% 18.5% 18.3% 17.6% 20% 13.4% 13.3% 7.2% 7.1% 5.0% 4.8% 0% Britain China (Urban) Germany Hungary Japan Korea Singapore Spain Sweden USA 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)

42. 70% 60% 48.3% 50% 41.3% 38.2% 40% 34.3% Percent of Users 30.9% 30.5% 30% 20.5% 20% 14.7% 12.9% 11.4% 8.1% 10% 6.2% 6.3% 3.4% 0% Chile (Santiago) China (Urban) Italy USA Spain Japan Korea Britain Taiwan Macao Sweden Hungary Germany Singapore UCLA World Internet Project: Internet Purchasers (Users) Stage 2 – PurInt (10-14-03)

43. The Dieringer Research Group is now the owner of several early net studies Originally conducted by CyberDialog American Internet User Survey (now Interactive Consumer) The Internet Consumer: A Continuous Advisory Service Historical Internet Data: Demographic highlights of Internet users Historical Internet Data: Internet User Survey and Highlights http://www.thedrg.com/

44. The American Interactive Consumer Survey is a large benchmarking survey It uses multiple methods to measure and profile net users Online survey Focus groups Telephone 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

45. 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

46. 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

47. A new kind of eshopper http://www.thedrg.com/d/mcr/aics/bulletins/12112002_retail.htm

48. 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 shopping 60% are men with an average 5+ years online They tend to be better educated, making them more skilled at finding and manipulating information They 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

49. They are significantly more likely than other shoppers to: Rely on print to find web sites for products and services Use high speed broadband online access Watch TV while also going online Go to manufacturer sites or retailer sites for information Click on ads and make online or offline purchases as a result Use the Internet for music, movies and sports content Go online for customer service more often than using the telephone

50. Selected sources used by hyper-shoppers to find web sites with products & services Channel % 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