Demographics

There were 245,203,319 internet users in the US (representing 78.1% of the population) at mid-year 2012, according to Internet World Stats. (Internet World Stats, December 2012)

Internet usage is ubiquitous in the US, according to an eMarketer report ‘US Internet Users 2013: Solid, Saturated Market for Web, Search and Email'. At 76.9% of the population in 2013, eMarketer estimates that between 2013 and 2017 the number of internet users will average percentage gains just below 2%, equating to less than 20 million new users. (eMarketer, Mach 2013)

Virtually all (98%+) affluent Americans use the internet, according to Ipsos 2011 survey tracking, lifestyles, media habits and spending patterns of affluent Americans. The amount of time spent online rose about 20% to more than 30 hours weekly. Affluent Millenials, defined here as those aged 18 to 29, spend more than 40 hours a week online, essentially a full-time job. (Ipsos Media, October 2011)

The average time spent by US adults with all major media combined increased from about 10.6 hours in 2008 to 11 hours in 2010, according to eMarketer. TV and video (not including online video) captured the lion's share of all media time, about 40% each year. The internet's share of media time increased over the same period, from 21.5% to 23.5%, as did mobile's share, from 5% to 7.5%. The share of time spent with magazines and newspapers fluctuated between 10% and 7.5%, while radio and all other media (video games, movies in theatres and outdoor media) declined.

To account for multitasking, an hour spent watching TV and surfing the internet was counted as 1 hour for TV plus 1 hour for internet use. Also, use of each medium is discrete: Time spent listening to the radio does not include streaming stations from the internet, for example.

In 2010, consumers spent an average of 4 hours and 24 minutes each day watching TV and video, while being online for 2 hours and 35 minutes. Mobile devices received an average of 50 minutes' worth of attention every day; the same amount of time allotted to newspapers and magazines combined. eMarketer expects that time spent with mobile devices will continue to increase, most likely taking time away from print media.

In fact, time spent with mobile devices is rising faster than all other media. In 2010, consumers spent 28.2% more time with mobile devices, which cover all mobile activities on all mobile devices. That gain was even higher than the 21.9% growth in 2009. Time spent on the internet showed moderate but steady gains, at more than 6% each year since 2008. All other major media posted declines: TV and video lost 1.1% in 2010, while magazines and newspapers lost 9.1% each. However, as consumers continue to consume more media every day, those losses are not immediately significant.

Marketers need to pay attention to these trends as they project budgets and develop marketing strategies for the coming year-and years. Mobile devices will claim more and more media time per day, while TV, print and radio will slowly lose ground to digital media. Those trends have been most apparent with print media in recent years, but are now beginning to show up in TV and radio usage as well. (eMarketer, December 2010)

Change is happening within the US internet population on many levels. The average age of internet users is rising in tandem with that of the general population, for example, and racial and ethnic characteristics are more closely mirroring those in the offline population.

221 million people (about 71% of the total population) in the US will be online in 2010, according to eMarketer. Their numbers will continue to grow, reaching 250 million in 2014, more than 77% of the population.

eMarketer believes that in five years, the results of some demographic shifts now taking place will become more evident. Internet users will be older, and many will have lower levels of education and annual income. They will also be more diverse racially and ethnically and expect marketing messages to appeal to them.

US internet users, 2008-2014:
- 2008: 203.2 million (66.8% of the population)
- 2009: 211.7 million (68.9%)
- 2010: 221.0 million (71.2%)
- 2011: 229.2 million (73.2%)
- 2012: 236.9 million (74.9%)
- 2013: 244.1 million (76.5%)
- 2014: 250.7 million (77.8%)

Growth is still occurring among all races and ethnicities of internet users. eMarketer estimates the internet population will increase 13.4% between 2010 and 2014, compared with 3.9% for the general population. Despite their already high internet use, non-Hispanic whites and Asians will see further penetration by 2014, to 81.2% and 81%, respectively. Blacks and Hispanics, while still underrepresented online, will see steady growth in penetration rates, to 72.3% of the black population and 70% of Hispanics. (eMarketer, April 2010)

Trust levels with Web security vary widely among users, with an average US index of 61.5 out of 100, according to the first "Internet Trust Index Report" from Internet infrastructure provider VeriSign.

Users who have been on the Web for longest are most comfortable. Respondents who had been online for at least five years felt more than twice the level of trust as those who had been connected for only six months or less.

US internet users' level of trust in the internet, by experience online, December 2009 (index based on a scale of 0-100 with 100 signifying absolute trust):
- <6 months: 33
- 6 months-1 year: 45
- 1-2 years: 52
- 3-4 years: 59
- 5-7 years: 71
- 8-10 years: 76
- 10+ years: 82

Frequency of usage also played a part in how safe users felt on the Web. Users who log on at least three times a week, who are on average 42 years old, scored a trust level of 80. Infrequent users, who surf less than once weekly and have an average age of 56, indexed at just 24.

Overall, consumers expressed the most concern about conducting financial transactions online, including banking and bill pay. E-mail was a greater concern than online shopping, perhaps because of the wealth of personal data contained in e-mail accounts. And 28% of adults reported being "extremely concerned" about conducting online shopping or selling.

A 2009 study on privacy from Nokia Siemens Networks found that Web users were most concerned about identity theft, with 24% considering that the worst misuse of their online information possible. The misuse of financial information, along with the security of credit card and social security numbers, Internet community passwords and credit history were also critical worries. (eMarketer, March 2010)

Evidence is growing to show that the "digital divide" (the gap between technical haves and have-nots) is narrowing within the black community in the US. Marketers that have put off digital campaigns targeting this demographic group are slipping further behind those that realized the potential this audience presents.

eMarketer estimated that nearly 64% of the black population is online in 2010-an estimate made in early 2010, based on the data then available. That percentage represents 24.2 million blacks.

Since then, the Pew Internet & American Life Project's "Teens and Mobile Phones" report found in April that black teens were more than twice as likely as whites to go online on their mobile phones, at 44% vs. 21%. In May, Edison Research's "Twitter Usage in America: 2010" survey found that African-Americans make up nearly a quarter of the US Twitter population, twice their share of the total US population. In Pew's "Home Broadband 2010" report, released in August, penetration rates were virtually stagnant at about 66% of US adults, compared with 63% in April 2009. However, blacks were a major exception, as their home broadband penetration rate rose 22%-closing to just 11 percentage points within the white population.

comScore data for July shows this audience is young: 56% were between 18 and 44 years of age, and an additional 20.7% were under 18. By contrast, comScore data from January 2010 for all US internet users showed that a similar 21% were between 2 and 17, but only 49.3% were between 18 and 44. (eMarketer, September 2010)

US Internet users and penetration, 2008-2013:
- 2008: 192.8 million (63.4% of population)
- 2009: 199.2 million (64.8%)
- 2010: 205.3 million (66.2%)
- 2011: 210.9 million (67.3%)
- 2012: 216.0 million (68.3%)
- 2013: 221.1 million (69.2%)

Nearly 65% of Americans use the Internet today, and by 2013 that figure will rise to nearly 70% of the population. (eMarketer, February 2009)

Age

The internet might have led to decreased loyalty and more shopping around for the best flight, hotel or package holiday but there could be worse to come. An InternetProvider infographic suggests today's 24/7 teens are growing up with an even shorter attention span than their parents.

Highlights include:
- 23% of all teens (aged 13 to 17) own a tablet, 27% when it comes to girls
- 80% own a computer
- 78% own a cellphone and 37% a smartphone.

When it comes to the future of the hyperconnected generation, the balance is slightly tipped in favour of it being positive although concerns around instant gratification, being too dependent on devices and becoming shallow consumers of information are raised.

On the upside however, they might be efficient multi-taskers and able to absorb more information. (tnooz, April 2013)

Marketers regard the 65-and-older population as a sleeping giant when it comes to digital usage. And for now, at least, the giant still mostly dozes. Just about half of US seniors use the internet, and those who do spend less time at it than younger adults, according to an eMarketer report ‘Seniors Online: Venturing Further Into Digital-But Not Too Far.'

Although a majority of seniors have mobile phones, comparatively few have smartphones. And while there may be talk of old folks interacting with grandchildren on Facebook, social networking penetration among seniors is low.

KEY eMarketer STATISTICS ON US SENIORS (Feb-Mar 2013):

Internet users as % of population:
- Total: 76.9%
- Seniors: 52.0%

Social network users as % of internet users:
- Total: 67.2%
- Seniors: 36.0%

Smartphone users as % of mobile phone users:
- Total: 56.8%
- Seniors: 23.7%

Digital video viewers as % of internet users:
- Total: 75.0%
- Seniors: 36.0%

For media usage, TV is still the medium that matters most for seniors, far more so than for younger generations. In Q4 2012, seniors averaged 220 hours and 55 minutes per month watching traditional TV, according to Nielsen. That was nearly twice as high as the figure for 18- to 24-year-olds and well above the 156 hours and 24 minutes average for the total population ages 2 and older.

Despite their generally tepid engagement with digital media, ecommerce is one online activity that makes practical sense for this age group, given that they have greater difficulty getting around. They're also accustomed to buying through catalogs, and many find buying online a natural extension of that practice.
eMarketer's estimate of online buyer penetration among internet users puts the figure at 63.7% for the 65-and-older population by the end of 2013. That's lower than the average for internet users ages 14 and above (73.0%) overall, but not dramatically so.

Still, seniors who do use ecommerce are not free spenders, to judge from a survey last May by Forrester. Internet users ages 68 to 88 spent an average of $297 on online purchases in the prior three months, vs. $449 for adult internet users in general. (Note that this survey was conducted online, which may mean its findings reflect the predilections of respondents who are particularly comfortable doing things digitally.)

When seniors do make online purchases, books, music and tickets are high on their shopping lists. In a survey last May by The Integer Group and M/A/R/C Research, 78% of seniors who had bought something online said they had made a purchase in that category, nearly double the number (40%) who had bought health & beauty products that way. (eMarketer, March 2013)

Born between 1946 and 1964, the Baby Boomers are 80 million strong. In five years, 50% of the US population will be 50+. These consumers spend close to 50% of all CPG (Consumer Packaged Goods) dollars yet less than 5% of advertising is geared towards them. A new report by Nielsen in collaboration with BoomAgers, examines this opportunity and guides the way forward with actionable insights into this valuable cohort, dubbed the "Most Valuable Generation."

In the next five years, Boomers are set to control 70% of the disposable income in the US and they stand to inherit $15 trillion in the next 20 years. As they age out of the work force, 67% of Boomers plan to spend more time on their hobbies and interests, moving from a life dedicated to making money to one that is directed to spending money.

US Boomers' Internet usage:
- 33% of all online users
- 33% of all social media and Twitter
- 33% are heavy internet users.

There is no doubt that younger generations are the first to adopt new technologies, but once they go mainstream, it is the Boomers' adoption that is driving the real growth of technology. The Boomers have always embraced science and technology and are using today's internet-linked products to enrich their lives by staying connected, socializing, shopping and entertaining themselves. While they are slower to adopt the new technologies, once they are mainstream, Boomers buy in. Savvy marketers can engage once they identify the types of technologies and social media most likely to be used by Boomers. (nielsenwire, August 2012)

Overall, 60% of seniors (those aged over 65 years old) are online, that's more than 20 million Americans, according to Forrester.

The report shows that 49% of digital seniors in the US are using Facebook. It also shows that:
- 91% of online seniors use email
- 59% have purchased products online in past three months
- 46% send/receive photos by email
- 44% play solo games online
- 24% sign up for coupons/freebies.

Seniors aren't as active on the Web and are less likely to own a smartphone or tablet as younger generations. But they do have a number of advantages compared with younger consumers, including 1) their size - there are about 21 million online Seniors in the US; 2) their income - they have far more money to spend than 18- to 24-year-olds; and 3) their brand attitudes - they are more brand-loyal, with 63% of online Seniors agreeing that when they find a brand they like, they stick to it, compared with 53% of all US online adults. (Forrester, June 2012)

Millennials (also commonly referred to as Generation Y and echo boomers) are the first generation to come of age in the new millennium. Unsurprisingly, the internet's role is paramount among the age group's media habits and usage. From shopping to socializing to watching TV, they do it all online.

Millennials comprise nearly a quarter of the total US population, and are evenly split between males and females. Less than six in ten are white, and aside from children under 18, millennials are the most ethnically and racially diverse generation in the country's history.

Virtually all members of this age group are online, and nearly as many are social network users. Millennials are ahead of the curve by almost any digital metric: online video viewing, mobile internet usage, mobile commerce, and location-based services.

Key eMarketer numbers - US consumers aged 18-34:
- Internet users: 91% of population in 2011 / 94% by 2015
- Social network users: 86% of internet users in 2011 / 89% by 2013
- Online video viewers: 84% of internet users in 2011 / 90% by 2015
- Mobile internet users: 62% of mobile phone users by 2011 / 76% by 2015  
(eMarketer at http://www.emarketer.com/Article.aspx?R=1008382, May 2011)

Seniors ages 65 and older made up 13% of the US population in 2010. By 2030, the US Census Bureau predicts nearly one in five Americans will be seniors. eMarketer estimates that as of 2011, less than half of this population will be online. But internet penetration will increase steadily as more tech-savvy boomers become seniors. By 2015, eMarketer forecasts, there will be over 26 million senior internet users in the US.

TV, newspapers and radio continue to dominate seniors' regular media habits, according to Mike Froggatt, eMarketer research analyst and author of the new report "Demographic Profile-Seniors." However, internet penetration is expected to rise among seniors and the overall online senior population will increase dramatically, making this an important growth demographic for marketers.

US senior vs total internet user penetration, 2010-2015 (% of population in each group):
- 2010: 45% (Senior) / 72% (Total)
- 2011: 47% / 74%
- 2012: 49% / 76%
- 2013: 52% / 77%
- 2014: 54% / 78%
- 2015: 56% / 79%

Mobile phone penetration is significantly higher, though seniors still prefer landlines: 77% said they were a necessity, vs. 29% who said the same of wireless phones, according to Pew Research Center. Nearly seven in 10 Americans ages 65 and older will have a mobile phone in 2011, vs. 75.5% overall, eMarketer estimates.

Seniors who own cellphones are far less likely than younger age groups to send text messages. They also have lower adoption rates when it comes to the mobile internet and smartphones, but falling prices and carrier subsidies should make both more appealing in the future.

Also growing in appeal are social networking sites. Seniors, like those in other age groups, mainly use social networks for connecting with friends and family. Between 2008 and 2010, social networking increased nearly sixfold among seniors, from 4.7% to 28%. eMarketer forecasts social network penetration will rise from 31% of senior internet users this year to 36% by 2013.

Froggatt indicated that for now, online seniors' main activities are email and searches for useful and age-appropriate topics. Marketers targeting seniors online will have the most success with email marketing and targeted search and display ads around popular topics such as politics, health information, financial services and travel. (eMarketer, February 2011)

62.7% of US undergraduates surveyed had an internet-capable handheld device in spring 2010, according to Smith and Judith Borreson Caruso for the EDUCAUSE Center for Applied Research. This compares to 83.8% who had a laptop and the 45.9% with a desktop PC.

Ownership of internet-enabled handheld devices increased by more than 11% points between 2009 and spring 2010, with the number of students planning to purchase such a device in the next year holding steady. The study was fielded before the release of the iPad, which many students expressed a specific interest in purchasing.

As the devices have become more common among undergraduates, they have also begun to play a bigger role in students' lives. In 2009, fewer than half of respondents who owned an internet-enabled handheld device said they used it at least weekly, with fewer than a third reporting daily use. By 2010, 42.6% reported using the devices every day and two-thirds did so at least once a week. (eMarketer, November 2010)

32.3 million moms will go online at least once a month in 2010, according to eMarketer that defines a mom as any adult female with children under 18 in the household.

US mom internet users, 2008-2014:
- 2008: 31.8 million
- 2009: 32.1 million
- 2010: 32.3 million
- 2011: 32.4 million
- 2012: 32.6 million
- 2013: 32.7 million
- 2014: 33.0 million

In 2011, eMarketer estimates there will be 20.2 million children under 11 going online at least once per month from any location, or 39.9% penetration of this age group. By 2014, that number will rise to 24.9 million kids, or 47.8% of this young population.

Mobile internet access, according to Placecast, is more important to parents with children under age 6 (70%) than those of children in other age brackets. And families with young children are using their phones to find stores (64%), local information and activities via an app (61%), even to buy something online (36%).

A study from the Joan Ganz Cooney Center looked at the "pass-back" effect of parents who hand their mobile device to a child. According to the November 2010 report, the child usually played a game on the device but could also see pictures, videos and music. Each session lasted about 5 to 20 minutes.

Marketers formally barred from targeting children under 13 might consider creating mobile apps that offer educational benefits for this age group, and target the moms on the go with the marketing messages. (eMarketer, December 2010)

With 71% of Americans using the internet at least monthly in 2010, US internet users now closely resemble the general population.  Over the next five years, that trend will continue.  Overall, the number of monthly internet users in the US will rise to 250.7 million in 2014, up from 221 million in 2010, according to estimates by eMarketer.

US internet users by age in 2014:
- TOTAL: 250.7 million (77.8%), up from 221.0 million in 2010 (71.2%)
- 3-11:   24.9 million (64.1%) / 18.6 million (49.8%)
- 12-17: 24.5 million (96.6%) / 23.8 million (94.6%)
- 18-24: 29.0 million (93.0%), 27.9 million (91.0%)
- 25-34: 39.6 million (90.0%), 36.5 million (87.4%)
- 35-44: 36.7 million (89.0%), 34.5 million (83.5%)
- 45-54: 37.9 million (87.0%), 35.1 million (78.6%)
- 55.64: 31.7 million (79.8%), 26.0 million (71.7%)
- 65+: 26.4 million (54.0%), 18.6 million (43.2%)

More than half of new users will be aged 45 and up, as many of the remaining laggards come on board. Among younger groups, the internet is nearly ubiquitous, and most who are able to access it already do so, leaving limited potential for penetration growth. Notably, though, eMarketer expects significant increases in usage among children ages 3 to 11, as technology becomes a part of consumers' lives at increasingly younger ages.

Currently, 12- to 24-year-olds represent a major bloc of users at 51.7 million, or 23.4% of the total. By 2014, though, their share will wane to 21.3%, even as their numbers increase to 53.5 million. Meanwhile, those aged 45 and older will grow from 35% to 38.3% of total users to more closely align with their relative share in the overall population.

While older groups will occupy a larger share of monthly users, that measure is quickly becoming antiquated. Younger groups have already entered a new phase of always-on internet use, where the Web never leaves their side and is accessible 24/7 through their phone or other devices. Those 34 and under will continue to be the heaviest, most engaged and most voracious consumers of content online. (eMarketer, February 2010)

Boomers are aging, but they still dominate the US population both online and offline. They make up 32.5% of the US adult population, but 36% of the online adult population and account for about one-third of Web traffic on a typical day, according to the Pew Internet & American Life Project. Those numbers are still growing, albeit slowly.

US boomers (aged 50-64) who use the internet, November 2008 & September 2009 (% of respondents):
- Ever used the internet: 71% (Nov 08) / 77% (Sep 09)
- Used internet yesterday: 66% / 69%

This willingness to try new technology means boomers are ready for digital convergence in the home. Nearly six in 10 (59%) boomer internet users in Deloitte's "State of the Media Democracy Fourth Edition" survey "strongly" or "somewhat" agreed that they would like to connect their TV to the internet, compared to just 40% of boomer internet users surveyed in 2006. (eMarketer, January 2010)