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NUA INTERNET SURVEYS NUA INTERNET SURVEYS NUA INTERNET SURVEYS
Weekly free email on what's new in surveys on the Internet
By Nua Email: surveys@nua.ie Web: http://www.nua.ie/surveys/
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May 25th 1999 Published By: Nua Limited Volume 4 No. 20
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CONTENTS:
EDITORIAL:         The Net's Babylon - 
                   Sorcha Ni hEilidhe looks at how telecom legacy
                   systems continue to hinder the growth of Ecommere
                   in Europe.
ADS/MARKETING      :Web Marketers Target Teenage Girls
BROWSERS           :Microsoft Takes Firm Lead in Browser Wars
BUSINESS USE       :Companies Prepared to Pay for Online Brands
                   :European Sites Top Corporate Rankings
COMPUTER INDUSTRY  :Study Looks At PC Usage in Rural Canada
                   :Dell Sells USD18 Million Per Day Online
DEMOGRAPHICS       :Usage Will Not Match Access Rates in Europe
                   :Substantial Demand for Internet in India
E-COMMERCE         :Online Travel Worth USD16.6 Billion by 2003 
                   :Net Music Sales to Hit USD4 Billion by 2004
                   :7 Percent of US Users Hit by Credit Card Fraud
                   :Argentina Faces Major Net Hurdles
GOV/LEG            :Canada Rules Net Beyond Broadcasting Act
USAGE PATTERNS     :Seasonal Adjustment in Web Traffic
                   :Over 80 Percent of Graduates Will Turn to Web
                                   
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EDITORIAL - The Net's Babylon - Sorcha Ni hEilidhe
<http://www.nua.ie/surveys/analysis/weekly_editorial.html>
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Once again the European telecom legacy systems are being fingered for
the delay in the uptake of Internet surfing in Europe. The amount of
Europeans with Internet accounts has grown steadily over the last six
months yet actual use of the Internet by Europeans is still 
comparitively well below that of US based users.
This has huge implications for any businesses thinking of replicating
exising US-based marketing models in Europe. Portals, for example,
work by retaining users in simulated community environments. If the
potential members of that community are watching the clock as they
wait for pages festooned by rich media ads and fancy graphics to
download, the likelihood of creating a relaxed interactive space for
people to shop shrinks with every extra megabyte that does download.
There is really only one reason for this. Cost. It is up to three
times more expensive to surf the Net in Europe as it is in the
States. It's up to three times more expensive to surf the Internet in
Ireland as it is in some scandanavian countries. It's also a much
more painfully slow process but that's another story.
These people are Europe's most wealthy, most educated and highest
earners. They are ABC1 folk who *want* to start playing with the
Internet. They *want* to bank online, to shop online to consult
financial services and probe online communities but outside of the
major metropolitan areas, the cost is not reflected in the quality of
service delivered.
The prohibitive charges in Europe foster a prohibitive culture. The 
prohibitive culture in turn renders the concept of the online community
- that ethereal place where loyalty flourishes and dollars pass seamlessly
through wires, seem unrealistic if not surreal.
For the full article please see:
<http://www.nua.ie/surveys/analysis/weekly_editorial.html>
For editorial archives please see:
<http://www.nua.ie/surveys/analysis/weekly_editorial/archives/index.html>
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ADVERTISE ON NUA INTERNET SURVEYS
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or contact us at: <mailto:surveys-advertise@nua.ie>
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Nua Internet Surveys is a fully searchable database of information
gathered over the last two years. The resource has been cited as the
number one source for tracking emerging trends online and for
providing statistical analysis of the Web.
If you are looking for a particular study or report, visit our search
page and find the relevant data.
<http://www.nua.ie/surveys/advanced.html>
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NUA INTERNET SURVEYS TRENDMUNCHER
<http://www.nua.ie/surveys/trendmuncher/index.html>
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Nua Internet Surveys TrendMuncher is a moderated discussion list
which aims to tease out the real implications of the latest survey 
reports and research on the Web. The list is moderated by Sorcha Ni 
hEilidhe, Editor of Nua Internet Surveys.
If you would like to join this discussion list, send an email to
<mailto:trendmuncher-request@nua.ie> with the word "subscribe" in the
BODY of the message.
<http://www.nua.ie/surveys/trendmuncher/index.html>
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Review "The Caring Economy"
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An opportunity to review Nua's forthcoming book "The Caring Economy"
Nua founder and CEO Gerry McGovern will launch his book "The Caring
Economy " at the beginning of June. 
The Caring Economy is based on a number of fundamental beliefs. These
beliefs are that the forthcoming digital age demands new thinking and
a new philosophy, requires a new set of business principles,
governing everything from research and development to customer
interaction, and is a time when technology will become transparent
and people will become paramount.
The Caring Economy is about how people are impacted by and impact on
new technologies and issues. It seeks to establish some philosophical
foundations and basic principles for living in the digital age. It is
a book about how we all need new attitudes, new rules and new
business principles for success in a digital age economy and society.
The Caring Economy is about attempting to give people a route-map for
a journey to a new age.
If you would like to join the group of reviewers please let us know
by sending an email to mailto:mary@nua.ie explaining your experience and
background in book reviews. 
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                        DIGESTS START HERE
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ADS/MARKETING <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=2>
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USA Today: Web Marketers Target Teenage Girls
In the US, an increasing number of online marketing campaigns are 
targeting the country's 10 million teenage girls and their annual 
spending power of USD60 billion. Further, it is thought that teenage 
girls influence how an additional USD100 billion is spent, through their 
parents, siblings and friends. 
The increasing demand for market research on teenage girls has seen the 
emergence of specialised marketers, solely targeting the young female 
consumer. These sites attract thousands of teenagers through their 
ultra-hip Web sites, which allow them to compile detailed information on 
teenagers' opinions on a wide variety of issues. The end product is a 
comprehensive market research report which retail for between USD1,000 
and USD100,000. 
The anonymity of the Internet is thought to give teenagers greater 
confidence when expressing their opinions online, with the result that 
the responses to surveys and online questionnaires are more open and as 
a result more accurate. 
However, there are a number of controversial issues surrounding  teenage 
marketing online. These include concern about marketers' ability to 
solicit information from teenagers under the age of 16 and fears that 
these sites play on the many insecurities of teenage consumers. 
<http://www.usatoday.com/life/cyber/tech/ctf178.htm>
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BROWSERS <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=5>
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Zona Research: Microsoft Takes Firm Lead in Browser Wars
Microsoft has taken a clear lead over Netscape in the browser wars with 
59 percent of corporate users using a version of Internet Explorer, 
according to Zona Research. Most tellingly, the study found that while 
49 percent of corporate users use the latest version of Internet 
Explorer, just 21 percent use the latest version of Netscape 
Communicator. 
Overall, 69 percent of companies have a browser policy with Microsoft IE 
the chosen browser of 62 percent of US companies. The study found that 
Microsoft IE4X is the preferred browser of 57 percent of US companies 
with Netscape Communicator 4X the choice of just 17 percent. 
In terms of email packages, MS Outlook and MS Outlook Express are the 
preferred software package in over 80 percent of companies. 
The findings are based on a survey of 300 US corporate IT executives in 
April 1999. 
<http://www.zonaresearch.com/browserstudy/1999/may99/index.htm>
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BUSINESS USE <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=6>
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FT.com: European Sites Top Corporate Rankings
Six European companies are ranked in the global top ten ranking of 
corporate Web sites, according to a survey by the London School of 
Economics. 
Germany's Lufthansa airlines topped the list, followed by the UK food 
chain Tesco and British Telecommunications, BT in second and third 
places. Also included in the top ten ranking was IBM, British Airways, 
WalMart Stores, Deutsche Bank, Deutsche Telekom, Comcast and Walt 
Disney. 
The ranking distribution of the top thirty sites saw the US take the 
lead, with 17 corporate sites on the list, followed by 11 in Europe and 
just 2 in Asia. 
The rankings are based on a survey of 120 Fortune 500 companies. The 
study was sponsored by Novell. 
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New Media Resources: Companies Prepared to Pay for Online Brands
In the first quarter of 1999, companies spent USD12.9 billion on 
Internet acquisitions, up from USD250 million in 1998, according to New 
Media Resources. This represents a 52-fold increase over the 
twelve-month period. 
The study found that 45 Internet companies were purchased in the first 
quarter of the year, compared to just 17 companies in the first quarter 
of 1998. 
The increase in the mergers and acquisitions market highlights the value 
companies place on a strong brand name, according to Tim Miller, 
President of New Media Resources.  
The number of companies opting to buy rather than build their own brand 
name indicates a greater awareness and understanding of what time and 
effort is required to build a successful online brand. 
<http://www.newmediaresources.com>
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COMPUTER INDUSTRY <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=12>
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Dell Computers: Dell Sells USD18 Million Per Day Online
Internet sales at Dell Computers exceeded USD18 million per day in the 
first quarter of 1999, according to the company's quarterly earnings 
report. Overall, Internet sales accounted for 30 percent of the 
company's total revenue in the first quarter of the year. 
Dell also reported that the use of the Internet to develop and support 
other sectors of the business had increased by close to 30 percent, 
specifically in the areas of business procurement, customer support and 
relationship management. The report estimates that dell.com received 
over 25 million visits in the last quarter. 
 Total revenue for the quarter was over USD5.5 billion. Worldwide, Dell 
now holds the number two position in the computer company rankings. 
Revenue in the Americas market was up 45 percent, year-over-year, while 
in Europe the increase was 29 percent. In the Asia-Pacific region, 
revenue was up 48 percent.  
<http://www.dell.com/corporate/media/newsreleases/99/9905/18.htm>
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Statistics Canada: Study Looks At PC Usage in Rural Canada
A new study from Statistics Canada examines the PC usage patterns of 
rural households across Canada. 
The study found that in 1997, in 29 percent of cases, one inhabitant of 
a rural household had used a computer at least once from any location. 
It also estimates that in  10 percent of cases, one member of a rural 
households used a computer for personal use in a given month in 1997. In 
comparison, just 3 percent of rural based self-employed businesses use a 
computer over the same time. 
Between 1989 and 1994 the number of rural households with a PC in Canada 
increased from 14 to 22 percent, according to Statistics Canada. In the 
same period, the number of people in rural areas with Internet access at 
work increased from 12 to 17 percent. The most significant increase was 
in households with an annual of income of about USD25,000 or over.  40 
percent of those surveyed were effected by the introduction of computers 
in the workplace. 
<http://www.statcan.ca/Daily/English/990517/d990517.pdf>
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DEMOGRAPHICS <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=18>
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Internetnews.com: Substantial Demand for Internet in India
In India, there is an immediate demand for 500,000 additional Internet 
connections, which would serve four times as many users, according to 
survey by the National Association of Software and Service Companies, 
NASSCOM. 
Subscriber demand is expected to surge to 1.5 million by the close of 
2000, representing 6 million individual users, according to the report. 
This will, nonetheless, represent just 1.5 percent of the total 
population. 
In the business arena, 80 percent of the top 100 corporate respondents 
described the Internet and ecommerce as integral to their business 
strategy. However, 88 percent of the corporate sites are US based. 
The study estimates that in the last financial year, covering 1998 and 
1999, ecommerce was worth USD2.8 million in India. This is expected to 
increase in value to USD7 million in the current financial year. 
 Currently, NASSCOM estimates that there are 250,000 Internet 
subscribers in India, accessed by an estimated 800,000 individual users. 
There are an estimated 3 million PCs across the country, with 1.9 
million of these Internet enabled. 
NASSCOM have identified the establishment of a local Internet exchange 
as essential to the development of the Internet nationally, eliminating 
the need for traffic to flow via the US. 
<http://www.internetnews.com/intl-news/article/0,1087,6_123061,00.html>
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Jupiter Communications: Usage Will Not Match Access Rates in Europe
47 million European households are expected to have Internet access by 
2003, up from 14 million at the end of 1998, according to Jupiter 
Communications. This represents an estimated 31 percent of the total 
population. However, usage patterns are not expected to match the rate 
of access. 
Free Internet access providers were identified as the main contributor 
to the surge in access, however, high telephone access charges will 
continue to retard the amount of time spent online for the foreseeable 
future. 
It is a misconception that the European market is just one or two years 
behind the US, according to Phil Dwyer, MD of Jupiter's European 
Operations, pointing to the prevalence of metered telephone usage as the 
core hindrance to Europe's Internet development. 
The provision of free, unmetered, discount and subsidised Internet 
access will be essential to building a solid online population in 
Europe, according to the report, and the measures will have to be 
tailored to meet the needs of individual countries.
<http://www.jup.com/jupiter/press/releases/1999/0518a.html>
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E-COMMERCE <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=14>
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Jupiter Communications: Online Travel Worth USD16.6 Billion by 2003 
The online consumer travel industry will be worth USD16.6 billion by 
2003, with air travel accounting for 60 percent of the industry's 
revenue, according to Jupiter Communications. However, this will be far 
less than the online travel industry's full potential, due largely to 
the fact that travel companies, from airlines to hotels, have allowed 
their Web sites to stagnate. 
Jupiter estimates that air travel currently generates over 80 percent of 
online travel revenue. While spending in this area will increase 
significantly in dollar terms over the next four years, in percentage 
terms air travel spending drop by 20 points as the number of consumers 
making online car hire and hotel reservations online increases. 
The study estimates that 66 percent of US Internet users currently 
research travel arrangements online. Overall, the number of people 
booking online will increase dramatically over the next four years, with 
an estimated 10 percent of the total US travel market will be booking 
online by 2003.
<http://www.jup.com/jupiter/press/releases/1999/0512a.html>
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National Consumer League: 7 Percent of US Users Hit by Credit Card Fraud
Over 6 Million Internet consumers in the US have been the victims of 
credit-card fraud, according to a study by the National Consumers 
League, NCL. The study calculated that this represents approximately 7 
percent of online consumers in the US. 
Nonetheless, fear of fraud is not expected to affect American consumers' 
adaptation to the digital age. The NCL found that 76 percent of 
Americans are positive about new technology, believing that overall it 
will make life easier. 
63 percent of consumers are confident that by 2020 the use of computers 
and telephones in the home will be wireless, while 66 percent believe 
that all banking will be done online by that time. 
Privacy and security, recurrently, remains the central concerns of 
consumers, with 73 percent uncomfortable disclosing credit card and 
other financial details online, while 70 percent dislike disclosing 
personal information to online businesses. Nonetheless, 62 feel secure 
about conducting bank transactions and paying bills online. 
Consumers are divided about the overall impact of the Internet on the US 
economy.44 percent believing that it will hurt local trade and the local 
economy, while 45 percent believe the Net will strengthen the economy 
and save consumers money. 
NCL found that US consumers expect to increase the amount of shopping 
they do at home. 57 percent of US adults believe that they will shop 
online more than they currently do, with 33 percent confidant about 
shopping over the phone. An estimated 42 percent of Internet users go 
online to research information on specific products and services, 
compared to 24 percent that go online with intent to purchase. 
The findings are based on a telephone survey of 1,006 US adults aged 18 
or over, conducted between April 22 and May 3, 1999. The study has a 95 
percent confidence rate, with a margin of error of three percent. The 
survey was conducted by Louis Harris & Associates for the NCL, and was 
funded by Ameritech, Wyeth-Ayerst Pharmaceuticals and the Shapiro 
Educational Foundation.
<http://www.nclnet.org/NCLSURV5.HTM>
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Technology@Ireland.com: Net Music Sales to Hit USD4 Billion by 2004
Internet music sales will generate USD3.9 billion by 2004, up from an 
estimated USD346 million this year, according to a report from Music 
Business International, MBI. 
Overall, the global music market is expected to reach USD47.5 billion in 
2004, up from USD41 billion this year. Internet sales will account for 8 
percent of the total music market by 2004, up from less than 1 percent 
this year.  
Last year, Internet music sales generated USD143 million. The vast 
majority of purchases were CDs and cassettes, bought from online mail 
order retailers. As was to be expected, the US generated most of the 
online music sales dollars, accounting for USD126 million, with Europe 
generating just over USD13 million. 
While the US will continue to dominate the overall market, the study 
expects Europe to gain some ground over the next five years. MBI 
predicts that the US will account for USD2.8 billion in sales in 2004, 
while Europe will account for USD834 million. 
In the medium term the Asia market is expected to remain stagnant. It is 
unclear how the Latin American market will develop, however, the once 
thriving Brazilian market is also facing stagnation, according to MBI. 
The MBI World Report 1999 was based on information provided by Market 
Tracking International. 
<http://www.ireland.com/scripts/technology/showall.cfm?ID=212>
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Wired: Argentina Faces Major Net Hurdles
Argentina, one of the wealthiest and largest Spanish speaking countries, 
has done little develop an Internet culture or to encourage Internet 
entrepreneurs. 
The high-cost of Net access, the rejection of credit cards and online 
banking, the telecommunications monopoly and suspicion of the free 
market are just some of the problems that must be overcome in the 
immediate future if Argentina is to become an Internet leader in the 
region. 
One of the major inhibitors of Argentinean Internet enterprises is the 
government support of the monopoly-type structure operated by Telintar. 
The monopoly means that  the cost of high-speed Net access in the 
country is prohibitive, at between fifty to one hundred times the cost 
of such access in the US. For example, at the end of 1998, a 128Kbps 
connection cost USD4,477 per month. To address this, deregulation 
measures are expected to be introduced by the end of the year. 
In general, Latin American countries have been reluctant to adopt the 
free market approach. Political history in the region has also taken its 
toll, as happened in Uruguay, with its telecommunications industry 
crippled by decades of military rule. Corruption is also a major problem 
facing would-be entrepreneurs. 
Consumer trust of banks is minimal. Political history in the region, 
again, has contributed to this with many consumers not even holding 
savings accounts. The adoption of ecommerce looks further off, given 
that the vast majority of Argentinean consumers do not use credit cards. 
Neither are local banks prepared to offer an online credit-card 
verification service. 
The Argentinean government will have to act fast to rectify this 
situation if it is not to loose out to the larger and more developed 
markets of Brazil and Mexico. 
<http://www.wired.com/news/news/culture/story/19670.html>
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GOV/LEG <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=19>
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San Jose Mercury News: Canada Rules Net Beyond Broadcasting Act
In Canada, the Radio and Telecommunications Commission has deemed that 
it is not authorised to regulate the Internet as it is beyond the remit 
of the national Broadcasting Act. 
Ironically, this means that online broadcasts by traditional 
broadcasting companies will be beyond the scope of the Commission. 
Regulation of the industry will now depend on self-regulation within the 
Industry, filtering software, and the national Criminal Code.  
The decision, while expected, was broadly welcomed by the Canadian 
Internet Industry. The CRTC ruling is in keeping with Canada's overall 
Internet strategy, which has moved away from regulation in a number of 
areas so as not to impede the development of Canada's digital economy. 
The announcement was made following a ten-month review, to which eighty 
organisations contributed, and which received over 1,000 submissions. 
<http://spyglass1.sjmercury.com/breaking/docs/081486.htm>
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USAGE PATTERNS <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=34>
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SBC: Over 80 Percent of Graduates Will Turn to Web
This summer 82 percent of college graduates will search for careers and 
employment information online, according to a survey by SBC Internet 
Services. 
Further, 66 percent of those graduates seeking employment will email 
their curriculum vitae to employers.An estimated 55 percent of upcoming 
graduates will post their curriculum vitae on an online job service 
site. 
The study found that 75 percent of college students graduating in the 
spring and summer semesters of 1999 will research a specific career or 
job online, with 79 percent researching information on would-be 
employers online. In addition the study found that 74 percent of 
graduates will use the Net to search for the job in a defiined 
geographical location.  
<http://www.sbc.com>
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ZDNet: Seasonal Adjustment in Web Traffic
There was an overall decline in Web traffic in April 1999, with major 
portal sites recording the most significant decrease, according to a 
Media Metrix report. The decline was slight, down just .4 percent to 
64.97 million from 65.25 million the previous month. 
Portal sites saw the greatest decline in traffic, while focused vertical 
market sites recorded a significant increase in traffic. Four of the top 
five properties recorded a decline in traffic, AOL, Yahoo, Lycos and the 
Go Network, with just Microsoft recording an increase. Vertical sites 
that saw an increase in traffic included iVillage.com, women.com, 
travelocity.com, and preview travel.com. 
In a trend that mirrors TV viewing patters, it is thought that the 
overall drop reflected a seasonal adjustment, with users spending less 
time online with the arrival of good weather and the changeover to 
daylight saving time. The increasing sophistication of Internet users is 
also likely to have contributed to the change in traffic distribution, 
with more and more consumers less dependent on the catch-all model 
portal. 
<http://www.zdnet.com/zdnn/stories/news/0,4586,2262851,00.html>
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NUA LIMITED
Nua is a leading Internet Strategy and Services Company - a digital
agent of change. Nua works with large International organisations
that are committed to the Internet helping them build and manage a
significant and successful Internet presence.
Nua has received an array of awards since its genesis in 1996. Among
those are the coveted "Best Overall World Wide Web Business
Achievement", the top prize for website development in Europe.
<http://www.nua.ie/about/review.html>
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to reproduce this newsletter in any format pending full recognition
of Nua Ltd. Nua do not accept responsibility for the accuracy of
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