New IDC Study Predicts 23 Percent of all Households Online by 1998; Reveals Increasing Popularity of Business-to-Business Commerce Solutions
PR Newswire - March 30, 1998 08:22
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Survey Examines Behavior and Growth of the Internet and Web Market in Business
and Households
FRAMINGHAM, Mass., March 30 /PRNewswire/ -- Online and Internet usage in
the home is reaching critical mass, according to a new report published by
International Data Corporation (IDC). This study, which presents the results
of IDC's semi-annual 1997 World Wide Web Survey of Home and Business Users,
also reveals business-to-business commerce solutions are currently soaring in
popularity as companies seek new methods to reduce overhead costs and automate
business purchasing with their corporate partnerships.
Online and Internet usage in the home has increased dramatically over the
last 18 months, according to the IDC study. The survey reveals at yearend
1996 only about 13 percent of all U.S. households were online. This
percentage contrasts sharply with the more than 20 percent online now. In
addition to the increase in the number of users, both the frequency of use and
the amount of time spent online have also grown significantly. Nearly 60
percent of all online households access their online service at least once a
day, increasing from only 35 percent for the prior year.
"We predict continued PC penetration, fueled partially by the sub-$1000
systems, the increased use of WebTV-style devices, and the likely introduction
of digital set-top boxes in a small percentage of U.S. homes, will lead to 23
percent of all U.S. households going online by yearend 1998," said Jill
Frankle, program manager for IDC's Consumer Internet program.
From a business perspective, IDC found the advantage of frequent and
immediate access to computers, training programs, direct connections to the
Internet, and company Internet/intranet Web sites, have helped create a more
adept and computer/Web-literate business user. "We expect these benefits to
gradually extend out to households as business users increasingly take their
Internet acumen home," said Juliana Nelson, senior analyst in IDC's Internet
program and co-author of the study. "Over time, we predict an educational
overlap into the home, with home users gaining in technology sophistication
until they are on par with business users."
Additional key findings of the IDC survey include:
Nearly 80 percent of all respondents have one subscription for accessing
the Web. Content on the Web is more and more of a draw for home users. The
growth of "front door" sites or portals, such as Yahoo!, Excite, AOL, and
Microsoft's planned Start site, provide or will provide home users with the
necessary navigation, communication, and personalization services they would
otherwise be looking for in an online service.
Web purchasing, or online commerce, is growing rapidly. Many retailers
outdid their expectations for the 1997 holiday season. Nearly three-fourths
of all Internet commerce is a direct purchase over the Web. This illustrates
home users who are purchasing over the Web are fairly comfortable with
completing the entire transaction via the Web.
-- Ninety-two percent of respondents accessed the Web at work. Business
managers are recognizing the Web as a valuable business tool for their
employees, and concerns regarding a drop in employee work performance due to
"extracurricular surfing" are fading. The rate at which companies are
restricting Web access to employees is declining.
-- Business users who purchase online while at work tend to conduct higher
dollar-value transactions than their counterparts at home. Items purchased
most frequently are big-ticket items such as travel-related goods/services,
computers, and software. For these business purchasers, the Web is becoming
yet another extension of the existing purchasing channel by which today's
sophisticated purchases can be transacted, easily, safely, and efficiently.
IDC's report, 1997 World Wide Web Survey of Home and Business Users
(IDC#B15439), provides a snapshot of Web usage at a precise moment in time
which contributes to IDC's detailed history of Web activity. The study can
also be used to predict future Web behavior and the growth of the Web market.
It is available for purchase by contacting Cheryl Toffel at 508-935-4389 or at
ctoffel@idcresearch.com. For additional information about Internet@IDC,
contact Beth Freedman at 508-935-4764 or at bfreedman@idcresearch.com.
About IDC
Headquartered in Framingham, Mass., International Data Corporation
provides IT market research and consulting to more than 3,900 high-technology
customers around the world. With a global network of 375 analysts in more
than 40 countries, IDC is the industry's most comprehensive resource on
worldwide IT markets, products, vendors, and geographies.
IDC/LINK, an IDC subsidiary, researches and analyzes the home computing
market, leading-edge technologies in telecommunications and new media, and the
convergence of computing and consumer electronics.
IDC's World Wide Web site ( idc.com ) contains additional
company information and recent news releases, and offers full-text searching
of recent research.
IDC is a division of International Data Group, the world's leading IT
media, research and exposition company.
All product and company names may be trademarks or registered trademarks
of their respective holders.
SOURCE International Data Corporation
/CONTACT: Elizabeth Freedman, 508-935-4764, bfreedman@idcresearch.com or
Juliana Nelson, 650-962-6482, jnelson@idcresearch.com or Jill Frankle,
212-696-8088, jfrankle@idcresearch.com/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 113987/
/Web site: idc.com and idcresearch.com |
