Monday, November
6, 2000
"Everyday Internet" - More People, More Usage
More people online, more access points and more usage intensity will define
the next era of the Internet in Europe, according to the latest findings
from Jupiter Research, part of Jupiter MMXI. To succeed in the 'Everyday
Internet' era, companies must move beyond the computer and tech-centric
web and integrate the Internet into their everyday business.
The boundaries that have separated Internet start-ups
and traditional businesses will disappear as the web
evolves to a mass-market 'Everyday Internet', where consumers
access the Internet from not only their PC's but also
Digital TV (DTV), mobile phones and other devices. However,
despite increased multi-platform online access, Jupiter
Research predicts that by 2003 the PC will still be the
dominant channel, accounting for 87% of commercial and
advertising revenues, with DTV at 11% and mobile at only
2%.
The research unveiled today at Jupiter's Consumer Online
Forum- Europe, shows that European businesses have yet
to understand how to use the new mediums. "Just as the
traditional companies were slow to get on the web, today's
web portals, e-commerce and content companies have made
the mistake of simply distributing their website to Interactive
TV and wireless without understanding what consumers
want from these new mediums", said Noah Yasskin, Director
of European Research at Jupiter.
The findings from the first European Jx Market Intelligence
reports, combining MMXI industry standard measurement
with Jupiter Research market expertise, analyse online
users and market trends in the UK, Germany and France
on a monthly basis since March. The results demonstrate
the market trend towards an 'Everyday Internet': both
volume and intensity of usage have increased with consumers
spending more time on sites that fulfil to their daily
needs. Usage habits are evolving, with each local market
showing its own behaviour patterns:
-
With relatively high online penetration
but low usage intensity, the UK is a market where usage
intensity's importance as a driver of overall growth
increased dramatically. This was especially true in
the entertainment category, where reach grew 50% but
the amount of time the average user actually spent
increased 311%, propelled by the popularity of sites
related to offline television programmes.
- As they gain online tenure, German users have been leaving
the familiarity of their proprietary ISPs to explore a
greater variety of online activities. Users in Germany
spent 27% more minutes online each month, shifting time
from all-encompassing portals to utility-focused sites
in specialised categories.
- In France, despite new user growth of 34%, the minutes
spent online by each user per month increased by 7%. Lowered
access costs and more relevant local content spurred notable
usage intensity growth in content-oriented categories such
as Hobbies, Entertainment and Community.
Jupiter Research predicts that the Internet will become
dominated by those traditional companies that can successfully
make the transition to the 'Everyday Internet' by selling
their products and distributing their content on whichever
platform their customers are. Whilst many dotcom businesses
have failed because they relied solely on revenues generated
from the Internet, in the future they will either acquire
off-line businesses, or will be acquired themselves by traditional
bricks and mortar companies. The very few pure Internet companies
left will be niche businesses.
"It's no longer about being either a website, or a bricks
and mortar retailer, but about being available when, where
and how consumers want to access your brand or service," said
Yasskin. "Businesses must understand and adapt to consumer's
different needs on the different channels," he concludes.
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