Usage Of The Internet Essay Research Paper

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Usage Of The Internet Essay, Research Paper USERS OF INTERNET Nielsen Media Research, which began studying Internet usage in 1994, reported that in 1995 40% of Americans over the age of 12 had access to computers. (Nielsen Media Research, July 1996) 10% of Americans over 16, were online at that time. In their most recent survey, taken in December 1996 and January 1997, Nielsen reported that 23% of Americans over 16 are now Internet users, an amazing rate of growth. At least 50.6 million Americans are now online, according to Nielsen. (Associated Press, March 13, 1997) “At this rate, within two years the citizens of cyberspace will outnumber all but the largest nations.” (Anderson, July 1, 1995, p. S4) Additionally, according to Nielsen, the number of users who have gone

online looking for product information grew from 19% in 1995 to 39% today. Still, only 15% of Internet users have actually purchased products online, indicating that the business value of the Internet is in promoting products, not in sales. (Associated Press, March 13, 1997) According to survey results released by DeWitt Media in February 1997, almost two-thirds of all marketers have advertised on the Internet. 54% of those surveyed plan to increase their online advertising budgets in 1997. (Online Marketing Growing Strong, January 21, 1997) In addition, Advertising Age reported, “of the 100 Leading National Advertisers, 46 have purchased Web advertising” through July 1996, and nearly all have corporate Web sites. Many plan to make online advertising a line-item in their

budgets for the first time this year. (Williamson, October 21, 1996) However, the survey also revealed that only 11 of the top advertisers in traditional media placed among Web advertising’s top 50 spenders. 67% of all online ad spending came from “Web-based companies, telecommunications companies or computer companies - [who] have nothing to lose and everything to gain by promoting a networked, computer-based medium.” (Ibid) Still, other companies - financial services, travel, healthcare and entertainment, for instance – benefit from Internet ads. (Ibid) As for big-ticket items such as automobiles, Internet ads give consumers a chance to access product information. According to Nielsen vice president Paul Lindstrom, “It’s unrealistic to think there’s going to be a

large market to buy a car over the Web….” Lindstrom says that the value of the Internet is in promoting items with hefty price tags. (Associated Press, March 13, 1997) According to survey results released by DeWitt Media in February 1997, almost two-thirds of all marketers have advertised on the Internet. 54% of those surveyed plan to increase their online advertising budgets in 1997. (Online Marketing Growing Strong, January 21, 1997) In addition, Advertising Age reported, “of the 100 Leading National Advertisers, 46 have purchased Web advertising” through July 1996, and nearly all have corporate Web sites. Many plan to make online advertising a line-item in their budgets for the first time this year. (Williamson, October 21, 1996) However, the survey also revealed that

only 11 of the top advertisers in traditional media placed among Web advertising’s top 50 spenders. 67% of all online ad spending came from “Web-based companies, telecommunications companies or computer companies - [who] have nothing to lose and everything to gain by promoting a networked, computer-based medium.” (Ibid) Still, other companies - financial services, travel, healthcare and entertainment, for instance – benefit from Internet ads. (Ibid) As for big-ticket items such as automobiles, Internet ads give consumers a chance to access product information. According to Nielsen vice president Paul Lindstrom, “It’s unrealistic to think there’s going to be a large market to buy a car over the Web….” Lindstrom says that the value of the Internet is in promoting