To: tonyt who wrote (76 ) 2/23/1999 8:53:00 AM From: Craig A Respond to of 130
New IDC Study Reveals Yahoo! Gaining Ground with Home Users Yahoo! Receives High Scores for Customer Loyalty and User Duration; Netscape and Excite Follow Closely February 23, 1999 08:29 AM FRAMINGHAM, Mass., Feb. 23 /PRNewswire/ -- Although a startling 22 million home users of online services are not faithful to any particular portal, Yahoo! is gaining ground on the competition with the most loyal user base, according to key findings in The Power of Portals: Who's Using Them and How, the second joint research report from IDC and RelevantKnowledge. Netscape ranked a close second. Despite the growing number of portals and their increasing popularity as destinations for news, information, and entertainment, there are few differences between sites. "Most portals have evolved similarly and as a result, remain relatively undifferentiated," said Jill Frankle, program manager for IDC's Internet and eCommerce Strategies Group. "Lack of distinction is a key reason behind user promiscuity. However, there are some significant differences in loyalty between the sites." User Loyalty and Duration Are Key Yahoo! has greatest reach for home Web users with 47% of the total home Web population. AOL and Netscape rank second and third, respectively, but the accuracy of their reach numbers is distorted by a default home page advantage. "A portal may reach several million discrete visitors, but what is truly important in terms of measuring effectiveness is how many of those people are loyal visitors or members and how long they stay per visit," Frankle said. "As a result, user loyalty and duration are fast replacing reach as the most accurate method of measuring portal effectiveness." According to IDC's new report, Yahoo! has the most loyal user base. Thirty-six percent of its visitors are loyal visitors. Netscape is a close second, with 34% of its visitors being loyal visitors. Duration is also an important measurement tool as it ties directly into the effectiveness of a portal's business model. "Heavier users are more likely to generate higher ad or transaction revenue," Frankle said. Yahoo! also leads the pack in terms of duration of both discrete visitors and loyal visitors. Its discrete visitors stay for an average of 67 minutes; its loyal visitors stay for 161 minutes. Excite ranks second in both categories. Its discrete visitors stay 45 minutes; its loyal visitors stay 160 minutes. The Power of Portals: Who's Using Them and How (IDC #B18352) is part of an IDC/RelevantKnowledge Web Trends Report series. In it, IDC presents metrics for determining the relative success of six popular portals. The report introduces IDC's Membership Model, which examines the key leverage points where a vendor can improve its value proposition to users and therefore lock in members and drive revenues. In addition, the report examines several of the multimillion-dollar deals that have taken place between the portals and some of the leading merchants on the Web. IDC introduces its cost per referral analysis and in doing so, highlights some of the more successful deals made, to date. To order your copy of this report, contact Sue Beauregard at 1-800-343-4952, extension 4774 or at sbeauregard@idc.com.