Pew Study

The new realities of online life ecomXpo presentation Lee Rainie – Director PIP 2.18.05

Home media capacity - 1975 Product TV stations

Route to home phone broadcast TV broadcast radio

Local news

mail

Advertising

newspaper delivery

Display

Local storage

TV radio stereo

Cassette/ 8-track Vinyl album

phone

Radio Stations non-electronic

Tom Wolzein, Sanford C. Bernstein & Co

Home media capacity – now Product TV stations Info “Daily me” content Cable Nets Web sites Local news Content from individuals Peer-to-peer Advertising Radio stations Satellite radio

Route to home cable phone/DSL wireless broadcast TV broadcast radio satellite mail express delivery iPod / storage subcarriers / WIFI newspaper delivery

Display TV radio PC stereo monitor headphones pager cell phone phone PDA/Palm game console non-electronic

Local storage VCR DVD Web-based storage server/ TiVo (PVR) PC CD/CD-ROM MP3 player / iPod pagers cable box game console Storage sticks/disks

Adopted from Tom Wolzein, Sanford C. Bernstein & Co

People’s media-use habits are changing The proportion of each group who say these channels are main sources of political news for them*

Non-internet users

Television

Newspapers

All internet users

85%

75%

Those with broadband at home

70%

Fox News Cable Channel

15%

21%

21%

CNN

18%

20%

22%

Local

24%

15%

12%

NBC

14%

13%

12%

ABC

14%

12%

9%

CBS

14%

8%

6%

MSNBC

4%

8%

8%

CNBC

2%

3%

2%

40%

38%

36%

NA

28%

38%

Radio

15%

17%

17%

Magazines

3%

3%

3%

Internet

Source: Pew Internet & American Life Project November 2004 Survey. N=2200. Margin of error is ±2%. *Numbers do not add to 100% because of multiple answers

Being online is the norm – but it is not universal Internet adoption 9/11 attacks

70%

61%

50% 40% 30% 20% 10%

Fe b04 D ec -0 4

Au g03

03 M ay -

Se p02 N ov -0 2

Fe b01 Ja n02

ec -0 0 D

Ju n00

M ar -

00

0% 19 95

American adults

60%

Ju n0 Se 0 p0 D 0 ec -0 M 0 ar -0 Ju 1 n0 Se 1 p0 D 1 ec -0 M 1 ar -0 Ju 2 n0 Se 2 p0 D 2 ec -0 M 2 ar -0 Ju 3 n0 Se 3 p0 D 3 ec -0 M 3 ar -0 Ju 4 n0 Se 4 p0 D 4 ec -0 4

Millions of Americans

Broadband adoption 60

55 million

50

40

30

20

10

0

Typical day – 70 million are online and here is what they are doing Email Search engine New s Weather Brow se f or f un Hobby Work-related research Product research IM Banking Research f or school/training Travel inf o Games Financial inf o Health inf o Create content Buy products New job Read blogs New housing Auction 0%

20%

40%

60%

80%

100%

New Reality 1: Interactivity matters profoundly z

You are in constant “conversation” with your customers

• They can be your greatest resource because they know more than you do! z

People like to create content and they expect to be able to interact online

• 44% have created content and posted it online • 57% of broadband users have done so

New Reality 2: People have new ways to talk about you z

The velocity of information matters – this is the era of “smart mobs” “Through the internet, people are discovering and inventing new ways to share relevant knowledge with blinding speed. As a direct result, markets are getting smarter – and getting smarter faster than most companies.” – Cluetrain Manifesto, Rick Levine, Christopher Locke, Doc Searls, and David Weinberger

z

The permanence of information matters – search engines and linked databases make much more material accessible much more quickly

New Reality 3: This is the era of the “daily me” z

z

z z z

More than half of internet users belong to listservs and other email groups organized around a topic, organization, or group More than a third of internet users customize information at Web sites 25% get e-newsletters 5% get RSS feeds Podcasts are catching on

New Reality 4: The boundary between you and the rest of the world is breaking down z

z

z z

Outsiders of all kinds can probe more deeply into your business and your affairs. They can disseminate what they learn more widely and more quickly than ever. Insiders are part of the conversation. Information no longer leaks, it gushes via instant messages, emails, phone calls, short messages What gushes forth can take on a life of its own, even if it’s not true. You can get a lot smarter a lot quicker if you exploit the feedback possibilities in this new era.