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%
Whites African Americans Hispanics
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%
Whites African Americans Hispanics
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%
Whites African Americans Hispanics
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%
Whites African Americans Hispanics
Do search in answer to a question
82%
85%
73%
50%
55%
60%
65%
70%
75%
80%
85%
90%
Whites African Americans Hispanics
Get sports scores online
48%
44%
49%
30%
35%
40%
45%
50%
55%
Whites African Americans Hispanics
Get religious/spiritual information
29%
47%
24%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Whites African Americans Hispanics
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%
Whites African American Hispanics
Participate in online auction
10%
18%
24%
0%
5%
10%
15%
20%
25%
30%
Whites African American Hispanics
Do Banking online
32%
30%
33%
25%
27%
29%
31%
33%
35%
37%
Whites African Americans Hispanics
Download music
16%
20%21%
0%
5%
10%
15%
20%
25%
Whites African American Hispanics
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%
Whites African Americans Hispanics
Cable TV penetration – by raceOctober 2002
62% 62%
56%
53%
54%
55%
56%
57%
58%
59%
60%
61%
62%
63%
Whites African Americans Hispanics
Satellite dish penetration – by raceOctober 2002
21%
25%
22%
19%
20%
21%
22%
23%
24%
25%
26%
Whites African Americans Hispanics
Premium TV Channels – by raceOctober 2002
36%
34%
30%
27%
28%
29%
30%
31%
32%
33%
34%
35%
36%
37%
Whites African Americans Hispanics
DVD players at home – by raceOctober 2002
63%
46%47%
0%
10%
20%
30%
40%
50%
60%
70%
Whites African Americans Hispanics
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
Whites African Americans Hispanics
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