trends in internet adoption and use: comparing minority groups john b. horrigan, ph.d. presentation...

Trends in Internet Trends in Internet Adoption and Use: Adoption and Use:

Comparing Minority GroupsComparing Minority GroupsJohn B. Horrigan, Ph.D.Presentation for

OTX ResearchOTX Research

May 11, 2004

Presentation Overview

General trends in Internet AdoptionFocus on “hard to reach audiences”,

i.e., Hispanics, African-AmericansOpportunities in Hispanic, African

American segments

Big picture – as of February 2004

128 million American adults – or 64% – are Internet users

19 million teens (age 12 to 17) are Internet users, or 77%.

About 70 million American adults online on the average day.

48 million American adults have high-speed connections at home.

Percent Adult Americans Online

0%

10%

20%

30%

40%

50%

60%

70%

1996 1998 Mar-00 Jul-00 Dec-00 Feb-01 Aug-01 Nov-01 Jan-02 Jul-02 Dec-02 Aug-03 Feb-04

Trends in Internet use – by race

0%

10%

20%

30%

40%

50%

60%

70%

Mar-00

July-Aug-00

Sept-Dec-00

Feb-01

Aug-Sept-

01

Oct-Nov-01

Jan-02

Jun-Jul-02

Dec-02

Aug-03

Whites

Hispanics

Blacks

Internet penetration by race – End of 2003 (% Americans age 18 and over)

61%

52%

59%

46%

48%

50%

52%

54%

56%

58%

60%

62%

Whites African Americans Hispanics

Internet penetration by race & age – End of 2003 (% Americans age 30 and under)

81%

67% 68%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%


Internet penetration by race & education – End of 2003 (% Americans over age 18 and college graduates)

84%82%

86%

60%

65%

70%

75%

80%

85%

90%

95%

100%


Internet penetration – age groups

53%

23%

77% 78%

76%

67%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

ages 18-24 ages 25-34 ages 35-44 ages 45-54 ages 55-64 age 65+

Latest broadband numbersFebruary 2004

24% of adult Americans have broadband at home

That’s 39% of adult Internet users That’s a 60% increase in past year DSL is big winner

– More than half of growth in past year due to DSL subscriptions

Broadband at home, 2000-2004

0

10

20

30

40

50

60

Month/Year

Nu

mb

er o

f A

me

ric

an

s (

in m

illio

ns

)

Broadband at home -- subgroups

52%

47%40%

24%

0%

10%

20%

30%

40%

50%

60%

% o

f all in

gro

up

College Grads-age 35 &younger

Householdincome $75K or

more

College Grads(all)

All Americans

Demographic group

Broadband at home – by race

25%

13%

23%

0%

5%

10%

15%

20%

25%

30%


Profile of Online & Offline PopulationFebruary 2004

Online demographics– Whites: 75%– African American: 8%– Hispanics: 11%– Other: 6%

Average Age (Internet users):

– Whites: 41.9– African American: 36.6– Hispanics: 33.8

Offline demographics– Whites: 69%– African American: 15%– Hispanics: 11%– Other: 5%

Average Age (Non-Internet users):

– Whites: 58.3– African American: 50.9– Hispanics: 41.1

Rhythms of use – by race

Whites African-American

Hispanics

Online yesterday 59% 35% 41%

Go online from home

84% 81% 76%

Log on several times per day

29% 14% 18%

Number of years online

6.1 5.7 5.5

# of online activities – ever

7.5

(out of 18)

7.3

(out of 18)

7.0

(out of 18)

# of online activities – daily

3.4

(out of 18)

2.6

(out of 18)

3.4

(out of 18)

What people do online – % of Internet users who have ever done following activities

Email – 91% Search engine – 88% Map/directions – 84% Info query – 80% Research product before

purchase – 78% News – 70% Surf for fun – 67% Travel info – 66% Health medical – 66%

Buy product – 65% Travel reservations – 57% Job-related research – 51% Political news – 46% Download (games, videos,

pictures) – 42% Bank online – 34% Religious/spiritual info –

29% Download music – 18%

What people do online – % of Internet users who, on typical day, do following activities

Email – 48% Search engine – 31% Get news – 27% Surf for fun – 23% Hobby – 21% Info search – 21% Research product before

purchase – 15% Get financial info – 12% Audio/video clip – 11%

Play a game – 9% Bank online – 9% Government Web site – 9% Look up phone # – 7% Online auction – 3% Read a blog – 3% Buy a product – 3% Search for info about a

person you might meet – 3% Download video file – 2%

Playing games online

34%

48%

47%

0%

10%

20%

30%

40%

50%

60%


Do search in answer to a question

82%

85%

73%

50%

55%

60%

65%

70%

75%

80%

85%

90%


Get sports scores online

48%

44%

49%

30%

35%

40%

45%

50%

55%


Get religious/spiritual information

29%

47%

24%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%


Buy a product online

66%

59%

63%

54%

56%

58%

60%

62%

64%

66%

68%

Whites African American Hispanics

Research a product online

81%78%

63%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%


Participate in online auction

10%

18%

24%

0%

5%

10%

15%

20%

25%

30%


Do Banking online

32%

30%

33%

25%

27%

29%

31%

33%

35%

37%


Download music

16%

20%21%

0%

5%

10%

15%

20%

25%


One hand … other hand

Minority groups tend to lag whites in Internet use by various measures …penetration, intensity of use, number of years online.

Tech elite – measured not just by Net use – tend to be whites.

But minorities show willingness to spend on information goods and services.

Cell phone use – by raceOctober 2002

66%

63%

55%

48%

50%

52%

54%

56%

58%

60%

62%

64%

66%

68%


Cable TV penetration – by raceOctober 2002

62% 62%

56%

53%

54%

55%

56%

57%

58%

59%

60%

61%

62%

63%


Satellite dish penetration – by raceOctober 2002

21%

25%

22%

19%

20%

21%

22%

23%

24%

25%

26%


Premium TV Channels – by raceOctober 2002

36%

34%

30%

27%

28%

29%

30%

31%

32%

33%

34%

35%

36%

37%


DVD players at home – by raceOctober 2002

63%

46%47%

0%

10%

20%

30%

40%

50%

60%

70%


Average monthly spending, selected information goods (phone, cell phone, cable TV, premium channels, ISP, online content) – October 2002

$121

$131 $131

$110

$115

$120

$125

$130

$135


Summing up

African-Americans and, to lesser extent, Hispanics lag whites in Internet use – by several measures

– Overall penetration– Broadband use– Frequency of use

African-Americans use the Internet to get information and for entertainment.

– Lag on online transactions/ecommerce Minority groups show willingness to spend money on

information goods & service, but these dollars go to old media

Reach me …

John B. Horrigan– [email protected] – 202-296-0019

Pew Internet & American Life Project1100 Connecticut Ave, NW, Suite 710Washington, DC 20036

trends in internet adoption and use: comparing minority groups john b. horrigan, ph.d. presentation...

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