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To: Ditchdigger who wrote (2444)	11/30/1998 1:29:00 PM
From: waldo	Respond to of 37507

(Applies to: AOL) AOL MEGADEAL EXPANDS REACH, STILL FACES USER ACCEPTANCE CHALLENGE NEW YORK, Nov. 30 /PRNewswire/ -- The acquisition of Netscape by AOL means that one out of three U.S. adults who go online monthly or more often will soon start their online sessions by opening a page owned by America Online, according to research released by Cyber Dialogue, the New York based Internet research and consulting firm. By year-end 1998, some 20 million surfers will fit this description. As powerful as this fact is, the new company still faces a user acceptance challenge because Netscape's users differ dramatically from AOL's users, according to Cyber Dialogue. "Based on audience reach, this deal makes AOL the hand's down winner of the race to capture online eyeballs," said Thomas E. Miller, Cyber Dialogue vice president. "However, our surveys show that Netscape's typical customer is far more business-like and oriented toward efficient use of the Internet. They're not likely to tolerate a barrage of unsolicited online merchandising offers." Overall, AOL properties under the new deal will reach some 70% of the U.S. online market, including the third that begin their online sessions either by signing on to AOL or to Netscape's Netcenter. This market dominance will allow the company to leverage advertising sales and merchandising by offering online vendors package deals across various AOL properties. AOL should also be able to expand the Netscape browser market installed base by 4 million users or more, depending on whether AOL decides to continue distributing Microsoft Internet Explorer. The biggest challenge facing AOL's new megalith has to do with developing content and features that appeal to the diverse audiences represented by the merged companies. Cyber Dialogue's data reveal that Netscape users are more reliant on the Internet to make personal choices, including choosing an Internet access provider. For example, users who rely on Netscape as their primary Internet browser are forty percent more likely than AOL users to have switched access providers in the past year, according to Cyber Dialogue's research. Overall, Netscape users are much more likely to view the Internet as a workplace productivity tool, as seen in the accompanying table. In addition, Netscape users who do not currently use AOL are twice as likely to be destination shoppers who go directly to vender or retailer Web sites to look for product information rather than shop online from their service provider or other online venues. These differences confirm that AOL must move carefully in building strategies to integrate service content and features to avoid alienating its newly acquired Netscape user base. Use AOL, Netscape is Netscape is Not Primary Browser Primary Browser, and Do Not Use AOL Agree: "The Internet empowers me to make better choices." 48% 72% Agree: "The Internet makes me more productive at my job" 37% 61% Shop by Going Directly to Vendor/Retailer Web Sites 16% 32% The above data are from the American Internet User Survey. AIUS is the only national study that provides in-depth data on personal Internet Users, business Internet users, academic Internet users and non-Internet users. The company will field the annual year-end version of its American Internet User Survey in December. Organizations interested in learning about sponsoring the survey should contact Mr. Dana Simmons at 800-965-4636, or visit the company's web site at: www.cyberdialogue.com. Cyber Dialogue was founded in 1993 to help marketing professionals identify, segment and target online consumers. The company develops advanced market research and database marketing techniques combined with tracking, targeting and measurement software to send the most relevant message to the right customers at the right time. Many Fortune 500 companies and leading online brands rely on Cyber Dialogue to maximize return on their Internet investment. SOURCE Cyber Dialogue