Wednesday, December 15, 2010

Americans Now Spend More Time Online Than Watching TV

A new survey by Forrester Research reveals a major shift in media usage. For the first time, Americans in 2010 are now using the internet more than they watch TV. This is perhaps not too surprising since around 80% of households have internet access now, and even 25% of mobile users are going online. And of course, younger Americans have been using the internet more than other media for some time.

Still, the survey reveals a significant landmark for internet usage. We've reported in the past how online advertising rivals or surpasses all other media, so it was just a matter of time before internet usage surpassed other media usage.

Time spent viewing TV isn't going down. TV viewing has been mostly flat over the last few years. Reading newspapers and magazines and listening to radio have gone down--and that time has shifted to internet usage.

Of course, we like to point out that much of what people are doing online amounts to watching TV--but online. Further, many people use the web for listening to internet radio, or reading newspapers or magazines. It's important to recognize that watching video, music listening and reading isn't going away--it's all simply moving online.

Finally, businesses should note that the number one use of the internet is e-commerce. Since shopping is the most popular activity online, business advertisers can greatly benefit from targeting online users with internet advertising. We find most small to medium organizations are significantly underspending on internet advertising (in some cases, doing none whatsoever). Those that do increase online spending see big benefits.

Sources:
http://news.cnet.com/8301-1023_3-20025607-93.html
http://www.forrester.com/rb/Research/understanding_changing_needs_of_us_online_consumer,/q/id/57861/t/2

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