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 Toronto On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!

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

UPCOMING TRAINING

Featured White Papers

Gartner Magic Quadrant for Digital Commerce

Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.

Paid Search in the Mobile Era

Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.

Jobs