Number of Internet shoppers surges in United States and Canada

[August 24th 1998]

The number of Internet users over the age of 16 in the U.S. and Canada has reached 79 million, while the number of people buying products and services via the Web has hit 20 million according to a new Nielsen Media Research and CommerceNet study on Internet commerce. The study also shows that the number of Web shoppers -- people checking out or comparing products and services on the Web -- is now 48 million.

The study, based on data gathered in June 1998, shows an increase of 36 percent in the number of users 16 years or older in the U.S. and Canada compared to the 58 million users measured in a previous study in September, 1997. During the same nine-month period, the increase in the number of people having shopped on the Web was 37 percent, roughly in line with the overall Internet population growth. The number of people making purchases via the Web doubled.

"The Internet continues its impressive growth as a communications, research, entertainment and commercial medium," said Jerome Samson, director of technology and business strategy at Nielsen Media Research. "Using results from a January 1997 study as a baseline, the number of Internet users increased at a robust compounded rate of 2.5 percent a month through June 1998. In that same 18 month period, the number of on-line buyers increased even more dramatically. From January 1997 to September 1997, the number of on-line buyers grew at a rate of 3.5 percent a month. From September trough June 1998, the growth in on-line buyers accelerated to 8 percent a month."

"Whereas technical innovations have undeniably broken through, they are generally transparent to the user," continued Loel McPhee, director of research at CommerceNet. "I feel that the dramatic increase in on-line purchasing is primarily due to people realising how quick and easy it is to shop on the Web. What we're seeing is the impact of branding, word-of-mouth and consumer trust."

Study Highlights

The following are highlights of the Nielsen Media Research and CommerceNet study on the U.S. and Canada Internet population 16 years and older:

• For the first time, more than 50 percent of the population between the ages of 16 and 34 are Internet users -- i.e. 40 million persons.

• Seventeen percent of people of age 50 or greater -- 13 million persons -- are Internet users. The number of users in this age group is growing at about the same pace as the overall Internet population 16 and over. However, the proportion of Internet users among people of age 50 or greater is still only half that of the overall population.

• Approximately 43 percent of Internet users -- 34 million persons -- are women.

• Most on-line shoppers (64 percent) and purchasers (71 percent) are men.

Links
CommerceNet		http://www.commerce.net
Nielsen Media		http://www.nielsenmedia.com