Online Spending Forecast: $14.8B in Q1

  |  January 17, 2003   |  Comments

Yahoo-Nielsen Internet Confidence Index takes a slight dip, but the overall outlook remains positive; broadband users are significantly more upbeat about the Net.

The latest Internet Confidence Index report finds that consumers are slightly less sanguine than a year ago, thanks to the dismal economy, but still projects that U.S. consumers will spend $14.8 billion online in the first quarter of 2003.

The index, put together by portal company Yahoo and market research firm ACNielsen, is a quarterly study designed to measure confidence levels in Internet products and services.

Now in its second year of analysis, the just-released fourth quarter 2002 results indicate a confidence level of 111 versus 115 for the same period last year. But the analysts who wrote the report said that the decline is most likely attributable to macro economic conditions.

That would more or less jibe with another recent report that found that despite horror stories about identity theft, account hijacking and assorted other rip-offs online, American consumers are more trusting than ever when conducting Internet transactions.

"The good news for the Internet community and e-tailers is that confidence levels remain relatively stable compared to other leading consumer related trends and indicators," said Manjima Khandelwal, vice president at ACNielsen International Research.

And the really good news from this report is that projections call for first-quarter 2003 online spending of $14.8 billion, compared to an estimated $14.6 billion in the year-ago period.

Interestingly, how one accesses the Internet seems to have a large impact on one's view of the experience.

Broadband consumers are significantly more confident than dial-up modem consumers, according to this report. Although Internet confidence declined marginally among broadband consumers in the fourth quarter of 2002, confidence within this segment continues to remain significantly higher, by 21 points, than consumers accessing the Internet at slow dial-up speeds. Clearly the World Wide Wait makes shoppers impatient and frustrated.

Even so, 56 percent of consumers polled said they intend to shop online in the first quarter this year.

"The fact that people are consuming more online and are becoming more sophisticated in their use of the Internet is demonstrating how intrinsic the Web is becoming to daily life, and how important it is for online businesses to deliver a quality experience," said P.K. Van Deloo, brand manager at Yahoo Shopping.

The index score for the initial Yahoo/ACNielsen Internet Confidence Index in June 2001 was set at 100 for use as a baseline. The sample size for the telephone survey is about 1,000 adults, who may or may not be currently utilizing the Internet.

ClickZ Live Chicago Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!

ABOUT THE AUTHOR

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

IBM: Social Analytics - The Science Behind Social Media Marketing

IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.

Jobs

    • Tier 1 Support Specialist
      Tier 1 Support Specialist (Agora Inc.) - BaltimoreThis position requires a highly motivated and multifaceted individual to contribute to and be...
    • Recent Grads: Customer Service Representative
      Recent Grads: Customer Service Representative (Agora Financial) - BaltimoreAgora Financial, one of the nation's largest independent publishers...
    • Managing Editor
      Managing Editor (Common Sense Publishing) - BaltimoreWE’RE HIRING: WE NEED AN AMAZING EDITOR TO POLISH WORLD-CLASS CONTENT   The Palm...