Bits that Click:Successfully connecting in an information-rich society

Mutual Fund Education Alliance 2007 eCommerce Summit

John B. HorriganAssociate Director for Research

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Structure of talk

• Review trends in technology adoption• Examine the impacts of people’s use of

information and communications technology.• Discuss implications for information providers.

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Basic facts about communication technology adoption

• 73% of American adults are internet users• 93% of teens (ages 12 through 17) are online users (Nov.

2006)• 70% of Americans who go online from home connect via

high-speed (mostly cable modem or DSL)– That translates into 47% of all Americans with high-

speed at home• 34% of online users have used a wireless network to go

online• 74% of adults have cell phones• 63% of teens (ages 12-17) have cell phones

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Growth in internet use (adults in U.S.)

14

23

4653

58 60 6368 73

010

2030

4050

60

7080

1996 1998 2000 2001 2002 2003 2004 2005 2006

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Broadband penetration in the U.S., 2000-2007

Home Broadband & Dial-Up Penetration (% of adult Americans)

0%

5%

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15%

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25%

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35%

40%

45%

50%

Jun-

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Feb-

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Jun-

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Broadband Dial Up

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Four propositions on the internet’s impacts

I. It is increasingly important for people’s information needs

II. Many-to-many is elemental in online experience

III. The internet is an outlet for self-expressionIV. The internet is empowering for many users.

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I. The Internet and news/information seeking

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Getting news on the internet on the typical day (millions of users, typical day)

1925 27

34 3541

44

52

0

10

20

30

40

50

60

Mar-00 Feb-01 Mar-02 Feb-03 Feb-04 Jan-05 Dec-05 Feb-07

mill

ions

of a

dults

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Importance of internet for political news

• 31% of all Americans got news online or exchanged emails about candidates in the 2006 mid-term election cycle.

• 15% of Americans said internet was primary news source for the 2006 election– That’s double the figure compared to 2002.

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Reliance on the net for research/information-seeking

• Internet 2nd most popular source for science news & information– Among young (under age 30) with high-speed at

home, internet is most popular science source,.• When asked where they’d turn to first to find out

more about a scientific topic, internet is most often cited

• 39% of online users have read blogs/online journals– 20% got campaign news from blogs in 2006.

• 36% of online users have used Wikipedia:– Half of young high-speed users have done this.

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Other key information activities

• Watching video online :– Two-thirds of home broadband users have

watched some sort of online video.• Banking online:

– 17% of online users did this in 2000– 30% in 2002– 43% by end of 2005

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On information & news seeking…

• For young people especially, media consumption habits are being formed in an online world:– They turn to the internet, and don’t get into the

“dead tree” newspaper reading habit• For older users, they retain many “old media”

habits, but online resources become important complements to how they get news & information.

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II. Many-to-many is elemental to the online experience

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Online communities & social networking

• 23 million Americans active participants in online communities – from a Pew Internet 2001 study– That’s 20% of online users

• Convenience of internet draws people to join groups – and use information tools to stay in touch with them.

• 55% of teens have profiles on social networking sites (end of 2006).

• 20% of adults have SNS profiles (end of 2006).

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Important decisions have “many-to-many” dimensions

% of internet users who deal with specific issue

% who dealt with issue who said internet was crucial in decision

% who dealt with issue who said internet was important in decision

Help another with major medical condition/illness

49% 9% 17%

Made major investment or financial decision

41% 12% 17%

Gotten additional career training

39% 21% 18%

Changed jobs 25% 13% 12%

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What do people mean by the internet playing an important or crucial role?

• Among those who say online resources played a role in an important decision:– 34% say they got advice or support from other

people– 30% said it got them to information to help them

compare options– 28% said it helped them find professional or

expert services• Just 5% said they got bad information during

search process

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III. The internet & self expression

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Self-expression & user-generated content• 37% of online users have contributed to the online

commons by doing at least one of these six activities:Share a creation (e.g., photo, art)

19%

Post comments to a website

18

Maintain their own web page

12

Part of group blogs/web page

11

Remix digital content and re-post

9

Maintain their own blog 8

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How people think information & communications technology helps in creative lives

• 51% of all ICT users say information appliances help them “a lot” in learning new things– Among “young & wired” (30 or younger with

broadband), 65% say this.• 28% of all ICT users say information appliances

help them “a lot” in sharing their ideas and creations with others.– Among “young & wired” (30 or younger with

broadband), 41% say this.

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IV. The internet is empowering

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Civic sphere• Some evidence that those who choose to get

information & news about politics online are more likely to say they vote.

• People who get news about politics online are better informed about both sides of political and policy issues than those who don’t

• Those who go to government Web sites take advantage of efficiency benefits & are more likely to contact government

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Health & community

• People who get health & medical information online get support from others, ask better questions of health care providers– 80% of online users have searched for some kind

of health or medical information on the internet• 28% of all ICT users say information appliances

help them “a lot” in working with others in their community:– Among “young & wired” (30 or younger with

broadband), 42% say this.

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Swirl of information

P2P

P2AP2E

People-to-amateurs = P2APeople-to-people = P2P

People-to-experts = P2E

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The rules are changing: what to do?

• Community-building: – creating an online place where users can interact

• Aggregate information:– make your website the focal point for the best

information, even if that means sending users elsewhere

• Be flexible:– not all users are the same, and you have to let

lead users support less sophisticated ones.

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What is an information provider to do?

• Give users the tools to build trust among themselves by…– Promoting collaborative learning– Experimenting

• Established organizations, with an existing base of customers or users, are at an advantage in this environment.

• Shift of mindset is key:– From attracting customers & keeping them– To attracting their attention and helping them

carry out the information transaction they need to.