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Internet Marketing
Central > Internet Fast Stats
Internet @ a Glance
Posted: November 6, 2006
This article provides an overview of the Internet
as it stands today - a quick review of definitions, Internet
functions, usage statistics, the explosion in local search and a
look at the growth in online sales. What exactly is the Internet?
Let's start with a definition.
The
Internet "is a ‘network of networks' that consists of millions of
smaller domestic, academic, business, and government networks, which
together carry various information and services, such as electronic
mail, online chat, file transfer, and the interlinked Web pages and
other documents of the World Wide Web.
Contrary to some common usage, the Internet and
the World Wide Web are not synonymous: the Internet is a collection
of interconnected computer networks, linked by copper wires,
fiber-optic cables, wireless connections, etc.; the Web is a
collection of interconnected documents, linked by hyperlinks and
URLs. The World Wide Web is accessible via the Internet, as are many
other services including e-mail, file sharing, [etc.]" (Internet,
2006, par. 1-2).
While the Internet began as an academic and
technical endeavor, public interest in it started to grow in 1994.
By 1996 the Internet was a household term and today it is part of
our every day lives. According to Internet World Stats, over 1.08
billion people are using the Internet as of September 18th, 2006
(see Table 1). That is a 200% increase since 2000.
Net Functions (Email, Search Engines, &
Searches)
With all these people on the Internet, what
exactly are they doing? Most of the time the net is used for leisure
(playing games, watching videos, gambling, chatting with friends,
sharing pictures, etc.) and communication (email, IMs (instant
messaging), PC-to-PC calls, etc.). In fact, email ranks second
behind the telephone as the largest means of communication. The
Radicati Group estimated that 171 billion emails are being sent per
day. That means "almost 2 million emails are sent every second" (Tschabitscher,
2006, par. 2). To the dismay of many, only 29% are genuine emails.
The other "71 percent are spam" (Radicati Group, 2006, par. 1).
In addition to leisure and personal communication
uses, the Internet has also become a great source for information
(research, how-tos, newspapers, online journals, job listings,
blogs, and pretty much everything you every wanted know about
anything), shopping, and business-to-business communications.
How do these one billion+ users find what they
seek? They use search engines (SEs). According to comScore, Google
is the most widely used SE, followed by Yahoo, MSN, AOL, and Ask.
Google, with 47.3% usage rate, receives 91 million searches a day
(see Graph 1 and Table 2). And, when you tally all searches
performed on the Internet per day it comes to a whopping 213
million. That represents a lot of people looking for a lot of
information. With all this traffic, the Internet is now an essential
component of any business or organization's marketing plan and
communications strategies. Whatever you have to say, share or sell,
the Internet is the place to do it.
Local Searches
One important trend in user searching behavior
relates to local searches, that is, users looking for information,
products, and services provided by businesses in their local
geographical area. A study done by comScore shows "63 percent of
U.S. Internet users (or approximately 109 million people) performed
a local search online in July [of 2006], a 43 percent increase
versus July of 2005" (comScore Networks, 2006, par. 2). Google and
Yahoo! were the SEs of choice for most of these local searches,
followed by Microsoft and Time Warner Network (see Table 3).
"Based on a recent comScore Search Satisfaction
study, 41 percent of those conducting a local search were searching
for something in their home area, as opposed to searching for
information on businesses in locales that they intended to visit.
Additionally, among those searching in their home area, 59 percent
indicated they were searching for a restaurant or something
entertainment-related, such as a theater, theme park or an
attraction for sightseeing. Another 52 percent said they were
searching specifically for a business phone number or address. Two
out of five local searchers (41 percent) were looking for
information on a local service in their home area - services such as
car rental offices, dry cleaners, veterinarians, florists and
lawyers.
The same comScore study also found that
performing a local search drives consumers to take action. During
the second quarter of 2006, 47 percent of local searchers visited a
local merchant as a result of their search behavior, while 41
percent made contact offline. More than one-third (37 percent) made
contact online as a result of conducting a local area search" (comScore
Networks, 2006, par. 3-4).
Jack Flanagan, executive vice president of
comScore Media Metrix, said, "‘Local search is experiencing strong
growth as more consumers adapt to the ‘always on' nature of their
broadband connection, which enables them to quickly find information
on local businesses. With approximately 849 million local searches
conducted by Americans in July, local advertisers have a sizable
market that can be reached through leading search sites'" (comScore
Networks, 2006, par. 5).
There is no longer any business, however small or
local, that could not benefit from a presence on the Internet. In
fact, the time is near when the lack of such a presence will be
interpreted by customers as a sign that the business is not current.
Local businesses without web sites may begin to lose business (if it
isn't already happening) to their local competitors who are
embracing and using this media to their advantage.
E-Commerce
"Some of the biggest companies today have grown
by taking advantage of the efficient nature of low-cost advertising
and commerce through the Internet. … It is the fastest way to spread
information to a vast amount of people simultaneously.
[Subsequently,] the Internet has … revolutionized shopping—for
example; a person can order a CD online and receive it in the mail
within a couple of days, or download it directly in some cases. The
Internet has also greatly facilitated personalized marketing which
allows a company to market a product to a specific person or a
specific group of people more so than any other advertising medium"
(Internet, 2006, par. 59).
"Examples of personalized marketing include
online communities such as MySpace, Friendster, and others which
thousands of Internet users join to advertise themselves and make
friends online. Many of these users are young teens and adolescents
ranging from 13 to 25 years old. In turn, when they advertise
themselves, they advertise interests and hobbies, which online
marketing companies can use as information as to what those users
will purchase online, and advertise their own companies' products to
those users" (Internet, 2006, par. 60).
The U.S. Census Bureau of the Department of
Commerce estimated $26.3 billion in retail e-commerce sales were
made during the 2nd quarter of 2006 (see Graph 2). This value was
"adjusted for seasonal variation and holiday trading-day
differences, but not for price changes. … Total [unadjusted] retail
sales … were estimated at $984.9 billion. … The second quarter 2006
e-commerce estimate increased 23.0% (± 5.4%) from the second quarter
of 2005 while total retail sales increased 6.6 % (± 0.5%) in the
same period" (Scheleur, King, & Shimberg, 2006, par.1). If you have
a product to sell, the Internet is the marketplace to get your
message and products out.
Conclusion
The staggering growth in Internet usage, email
communications, and e-commerce sales underscore the fundamental
change taking place in business. The marketplace has globalized,
consumers demand more information at their fingertips, and business
without a web site to provide that information will be left behind.
Businesses and organizations hoping to grow and take advantage of
today's information and service-based economy need a web site; it is
that simple. An effective presence on the Internet is one of the
easiest and most economical means of influencing potential
customers.
To read some great Internet Usage Statistics,
check out our Fast Stats companion
article.
For more information on taking the first step
onto the Internet with your business or for updating your existing
site, contact denning e-solutions.
Sources:
see supporting data
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