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Usage Patterns

Total Online Population (000's) in 2010: 239,232
Percentage of Population Online in 2010: 77.3%

Demographics

There were 239,232,863 internet users in the US (representing 77.3% of the population) in June 2010, according to Internet World Stats. This was up by 151.6% compared to 2000. (Internet World Stats, June 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)


Only 42% of African American and Hispanic consumers use the internet at least regularly, according to an Internet Innovation Alliance study of African-American and Hispanic consumers. Another 30% were considered occasional users, while 16% did not use the internet at all. African-American respondents were nearly twice as likely as Hispanics to never go online.

eMarketer estimates that overall, 64.8% of people of any age use the internet at least once per month in the US. Of those respondents who do not have internet access, 43% cited either not knowing how to use the internet or not seeing the need for the internet as the reason why they are not online. But interestingly, 44% of these same respondents said they would be more likely to subscribe to internet services if they were provided with free lessons on how to use the technology and 30% would be more likely to adopt if they had more information about how they could benefit from going online. It's clear that digital literacy programs are a crucial part of the formula for closing the digital divide.

Users also expressed interest in faster, cheaper access.

Middle-class and affluent respondents, as well as those more highly educated, were most likely to be regular internet users. Less well-off and older consumers tended to be "outliers," who used the internet less or not at all.

The top internet activity considered important to respondents was keeping in touch with friends and family, followed closely by education-related activities. Several utilitarian benefits were cited as important, such as job search, online banking and checking the weather. Users were less interested in social networking and even e-commerce, however. (eMarketer, December 2009)


Internet usage will continue to rise in 2010 in the US, as consumers find more ways to access the internet. The continuing proliferation of laptops, smartphones and internet-enabled TVs, MP3 players and gaming consoles will be the main force behind this trend. Teens and young adults are already active internet users with many devices. The change will be seen among adults ages 55 and older, many of whom have always had an interest in consumer electronics and now are discovering social networks and other media.

However, the number of internet users will begin to stabilize, as penetration reaches 66% of the US population, or 205.3 million people. Year-over-year growth will slow from 3.3% in 2009 to 2.36% in 2013, reaching 70% penetration in four years. (eMarketer, December 2009)


There is no question that the internet is now a mainstream medium. eMarketer estimates the US Internet population will grow to nearly 200 million users in 2009. By 2013, some 221 million people will be online.

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)


100% of US internet users surveyed in Q2 2009 went online to pass the time, according to Ruder Finn. Other popular reasons were education, connecting with others, researching and sharing.

Reasons why US internet users go online, Q2 2009 (% of respondents):
- Pass time: 100%
- Educate self: 96%
- Connect with others: 92%
- Research: 89%
- Share: 86%
- Be entertained: 82%
- Keep informed: 79%
- Discuss: 76%
- Be part of a community: 72%
- Work (business): 69%
- Escape: 66%
- Opine: 62%
- Influence others: 56%
- Activate support: 52%
- Entertain others: 48%
- Emote: 44%
- Be creative: 42%
- Make a purchase: 33%
- Manage finances: 30%
- Comparison shop: 28%
- Join a cause: 26%

The least common intentions when logging on were to make purchases, manage finances, comparison shop and join causes.

Intent is the new demographic, according to Ruder Finn co-CEO. Overall, Ruder Finn divided online activities into six categories, listed from most common to least:
1. Learn
2. Have fun
3. Socialize
4. Express oneself
5. Advocate
6. Do business
7. Shop

Men were more likely than women to go online for business, entertainment and to keep informed on news and current events.

Women, in turn, were more likely to use the internet to advocate for a cause or issue, express themselves and socialize.

More than two-thirds (69%) of young adults ages 18 to 29 posted comments on social networking sites, 55% played games and 50% went online "specifically to rage against a person or organization."

Seniors were nearly twice as likely as young people to manage their finances, and 65% of seniors went online to be part of a community. (eMarketer, July 2009)


Americans are spending more time online, on both a daily and weekly basis.  At-home access far outstripped at-work access time in 2008, according to Harris Interactive. Expect both trends to continue in 2009, as a hefty percentage of unemployed people use the internet to find jobs or additional training or education, and adults who are worried about the economic and international news check in more frequently.

However, US adults are not world leaders in spending leisure time online. That distinction goes to internet users in China, who spent 44% of their leisure time on the internet in 2008, according to TNS Global. The company found that Americans ranked fifth worldwide, at 30% of leisure time spent online-virtually tied with Italy (31%), Spain and Australia (29% each).

The US may move up in the rankings in coming years. Since 2001, the average amount of time US adults spent online per week doubled, from 7 hours to 14 hours. Harris Interactive's annual telephone poll revealed that average internet hours grew slowly between 2001 and 2006, but took off in 2007 and increased even more rapidly in 2008.

At-home usage saw a more dramatic surge during that time, according to the USC Annenberg School Center for the Digital Future. Their yearly survey found that US internet users spent an average of 15.3 hours per week online in 2007, compared with about 9 hours the year before. (eMarketer,  January 2009)


Nearly half of the African-American population (over 19 million people) uses the internet at least once a month, and in four years, 56% will be online, according to eMarketer. The African-American online population is growing, in more ways than one. The "digital divide," a phrase describing the gulf between Internet "haves" and "have nots," is still evident, but shrinking.

US internet users, by race/ethnicity, 2008 and 2013 (as a % of population of each group):
- Asian: 78.9% in 2013 up from 70.8% in 2008
- White: 70.1%, up from 66.0%
- Hispanic: 56.5%, up from 49.1%
- African-American: 56.4%, up from 46.4%
- Other: 54.0%, up from 49.1%

Trends in African-American internet usage generally mirror those of the US internet population as a whole. Younger black internet users are most comfortable with all forms of digital communication: visiting social networks, downloading and streaming music and videos, blogging and playing games, according to eMarketer. Black boomers are online in high numbers, but mostly for e-mail and news. Black seniors ages 61 and older are least likely to go online and are more likely to read magazines and newspapers, as well as watch news on television.

African-Americans' spending power is strong, estimated at $913 billion in 2008 by the Selig Center for Economic Growth. And with the recent election and inauguration of President Barack Obama, spirits are high in the black population. Yet, according to The Media Audit, African-Americans were the least likely Internet user racial or ethnic group to make a purchase online.

US online buyers, by race/ethnicity, 2007 (as a % of population in each group):
- Total: 55.8%
- Asian: 70.0%
- Other: 52.0%
- Hispanic: 41.8%
- African-American: 40.6%

The study also found that African-Americans made fewer online purchases than other minority groups. 20% had made five or more online purchases in 2007, and fewer than 11% bought 12 or more things online. (eMarketer, March 2009)


The percentage of African-Americans who use the internet increased to 64% as of December 2008, up from 56% in December 2007, according to the Pew internet & American Life Project. In comparison, internet users represented 74% of the total US population in December 2008, dipping slightly from 75% in December 2007.

The proportion of African-Americans who use the internet increased by 22 percentage points from December 2000 to December 2008, compared with 21 percentage points for the total US population.

African-Americans accounted for 11% of all US internet users as of November 2008, according to Harris Interactive. That compares with the 12% of US internet users who were Hispanic and 74% who were non-Hispanic whites.

The absolute numbers behind those percentages are set to change. The US Census Bureau projects that non-Hispanic whites will account for 46% of the population in 2050, while Hispanics will constitute 30% and African-Americans will make up 15%.

Based on these projections, and on the Census Bureau's estimate of 439 million total Americans in 2050, there will be 65.7 million African-Americans, 132.8 million Hispanics, 40.6 million Asian-Americans and 203.3 million non-Hispanic whites.

If the 2050 internet penetration rate is estimated at 75% (probably quite low), this means there will be more than 49 million African-Americans online that year, nearly double the estimated 26 million in 2008. (eMarketer, January 2009)


 

Over 50 million unique affluent US internet users (those with annual household incomes of at least $100,000) visited websites in March 2009, making up over a quarter of the entire internet population for the month, according to comScore.

There were slightly more wealthy men (53% of affluent web users) online than women (47%).  Most affluent internet users lived in the Pacific (West Coast), South Atlantic (the East Coast from Delaware to Florida), East North Central (the eastern Midwest) and mid-Atlantic (New York, Pennsylvania and New Jersey) regions.

Not surprisingly, 45-to-54-year-olds made up the largest group of affluent internet users, in terms of age, with 10.8 million. Next-highest in number were 35-to-44-year-olds, followed by teens and older users. (eMarketer, May 2009)


 

Age

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)


A majority of internet users over the age of 65 used e-mail, shopped online, researched health information and news, and banked on the Web, according to data from the Cable & Telecommunications Association for Marketing (CTAM). In fact, seniors were more likely than any other age group to conduct e-commerce activities.

Online activities of US senior (65+) internet users, June 2009 (% of respondents):
- Use email: 94%
- Shop online: 77%
- Look up health and medical information: 71%
- Read news: 70%
- Manage finances and banking: 59%
- Play free online games: 47%

Boomer internet users were likewise very active online, with 71% shopping on the Web, 39% visiting networking and community sites, and 30% regularly watching online video.

Online activities of US boomer internet users, June 2009 (% of respondents):
- Use e-mail: 93%
- Read news: 73%
- Shopping online: 71%
- Gather information: 67%
- Pay bills: 66%
- Go to networking websites, forums, message boards and chat rooms: 39%
- Watch videos online: 30%

Still, even wide adoption of e-commerce by senior Internet users does not necessarily translate into many seniors shopping online. The Pew Internet & American Life Project reported that in December 2008 only 11% of US internet users were ages 64 and older. And according to the Pew Research Center, just 28% of US seniors reported going online every day in February and March 2009.

Boomers are a much bigger force on the Web. eMarketer estimates that in 2009 Internet users ages 45 to 63 make up 28.8% of the total, or 57.4 million users. (eMarketer, November 2009)


US seniors are doing just fine without making the internet a daily part of their lives, according to the Pew Research Center that found that only 28% of US residents over age 65 had used the internet in the 24 hours prior to polling in March 2009. By contrast, 75% of people ages 18 to 29 reported the same.

Seniors don't seem to be overly chatty, either, at least when they are on the go. Nearly three-quarters of people ages 65 and above received "very few" or no calls on their cellphones. That number compares to 72% of 18-to-29-year-olds who received all or most of their calls on a mobile phone.

Pew found that among older adults, happiness varied little by age, race, ethnicity-or fondness for technology. (eMarketer, July 2009)


About 9 out of 10 US consumers ages 12 to 24 use the internet. That is not surprising. But more than half of those ages 65 to 69 are online as well, and internet-using 70-to-74-year-olds make up 45% of people that age, according to the Pew Internet & American Life Project.

Pew noted that the biggest increase in internet use since 2005 was in the 70-to-75-year-old age group; just over a quarter of them were online in 2005. The researcher said that Internet penetration would likely level off over time, but, "for now...young people dominate the online population."

US Internet users, by age 2008 (% of respondents in each group):
- 12-17: 93% (up from 87% in 2005)
- 18-24: 89% (82%)
- 25-29: 85% (85%)
- 30-34: 87% (83%)
- 35-39: 80% (80%)
- 40-44: 83% (76%)
- 45-49: 80% (73%)
- 50-54: 78% (68%)
- 55-59: 71% (68%)
- 60-64: 62% (55%)
- 65-69: 56% (57%)
- 70-74: 45% (26%)
- 75+: 27% (17%)

Pew measured the percentages of those who had ever been online. By a stricter definition of Internet users, eMarketer estimates that 78.8% of 12-to-17-year-olds went online at least once per month in 2008.

Pew noted that Internet users in their 20s did not dominate every aspect of online life. Generation X was the group most likely to bank, shop and look for health information online. And baby boomers were just as likely as Gen Yers to make travel reservations on the Web. (eMarketer, February 2009)



Digital Media

U.S. Internet users watched nearly 34 billion videos in May, with Google Sites ranking as the top video property with 14.6 billion videos, representing 43.1% of all videos viewed online. YouTube accounted for the vast majority of videos viewed at the property. Hulu ranked second with 1.2 billion videos, or 3.5% of all online videos viewed. Microsoft Sites ranked third with 642 million (1.9%), followed by Vevo with 430 million (1.3%) and Viacom Digital with 347 million (1.0%).

Nearly 183 million viewers watched an average of 186 videos per viewer during the month of May. Google Sites attracted 144.6 million unique viewers during the month (101.2 videos per viewer), followed by Yahoo! Sites with 46.0 million viewers (7.3 videos per viewer), and Vevo with 45.6 million viewers (9.4 videos per viewer). Vevo jumped one position in the May ranking taking the #3 spot with 45.6 million viewers and an average of 9.4 videos per viewer.

In May, Tremor Media ranked as the top video ad network with a potential reach of 102.8 million viewers, or 56.2% of the total video viewing audience. ScanScout Network ranked second with a potential reach of 99.3 million viewers (54.3% penetration) followed by YuMe Video Network with 87.5 million viewers (47.8%).

The top video ad networks in terms of their actual reach delivered were: Joost Video Network (by Adconion Media Group) with 35.2% penetration of online video viewers, BrightRoll Video Network with 24.4%, and Tremor Media Video Network with 21.2%.  84.8% of the total U.S. Internet audience viewed online video. 144.1 million viewers watched 14.6 billion videos on YouTube.com (101.2 videos per viewer).  The average Hulu viewer watched 27.0 videos, totaling 2.7 hours of video per viewer. The duration of the average online video was 4.3 minutes.

(comScore, June 2010)

 


 

Google-owned properties (which includes YouTube) continued to dominate the online video space in the US in January 2010, according to data from comScore. The company's Video Metrix measurement product estimates Google sites accounted for 39.5% of all videos viewed during the course of the month, with its closest competitor Hulu representing just 2.5% of the market by comparison. Hulu's closest competitor by total videos viewed was Microsoft, accounting for a 1.5% share.

In terms of reach, however, Google's dominance wasn't quite as extreme. Yahoo sites, for example, reached over a third of the users achieved by Google during the month, while properties including CBS Interactive and Fox Interactive Media achieved well over a quarter of that number too.

In terms of actual views, Google racked up an average of almost 94 per user over the course of the month. Hulu achieved an average just shy of 24, but much of its content is long-form, compared to the majority of Google's, which is user-generated. (ClickZ, March 2010)


Online video viewers became less likely to click on preroll ads, or watch them to completion, over the course of 2009, according to analysis of video ad network YuMe.  Between Q1 and Q4, click-through rates trended steadily downward, from 1.88% to 0.74%. Completion rates dropped as well, to 66.3% in Q4 from 74.4% in Q1 2009.

Broken down by length of preroll, there was a trade-off. While completion rates were higher for 15-second videos than for 30-second spots, the longer ads received more click-throughs. Additionally, view-to-completion rates fell throughout 2009 for both types of video ad, but rates for the shorter ads dropped more dramatically over the period.

Average click-through rates for the year were almost doubled on longer videos, at 1.5% for 30-second ads versus 0.8% for 15-second prerolls.

YuMe found that video ads targeted to children and teens ages 6 to 14 had the highest video ad click-through rate, at 3.5%, but the lowest rate of viewing to completion. It was the ads targeted at the oldest users (over 35) that were most likely to be watched to the end, at a rate of 77.4%.

Online video analytics and distribution company TubeMogul reported somewhat higher completion rates for 10- to 30-second preroll ads appearing before short-form video clips. Nearly 16% of viewers clicked away rather than watch the ad to completion.  Rates were worse at magazine and newspaper sites, with nearly a quarter of viewers abandoning the video, while just 10.9% clicked away from prerolls in front of video from large broadcasters.

Earlier research has shown that in addition to location and industry, video ad size and creative have a significant effect on success metrics. (eMarketer, February 2010)


Total US online video streams were up 17% year-on-year during the month of November 2009, according to data from Nielsen. However, growth of the medium appears to be slowing, compared with the 41% year-on-year rise the measurement firm reported for August. Growth in unique viewers also slowed from 18% in August, to 11.4% in November.

Compared with August data, YouTube, Yahoo, and Microsoft properties all experienced drops in both unique users and the number of videos they streamed. Hulu, however, grew its user base over the same period, and experienced substantial growth in streams, from 392 million in August to over 656 million in September.

Top online brands ranked by video streams for November 2009:
- YouTube:6,753,100,000 streams / 106,852,000 unique viewers
- Hulu: 656,561,000 / 12,488,000
- Yahoo: 196,603,000 / 24,968,000
- MSN/WindowsLive/Bing: 147,120,000 / 15,345,000
- Fox Interactive Media: 137,185,000 / 12,983,000
- Megavideo: 128,581,000 / 3,633,000
- ABC Television: 125,400,000 / 5,819,000
- ESPN Digital Network: 111,884,000 / 8,922,000
- Blinkx: 108,623,000 / 706,000
- Nickelodeon Kids and Family Network: 106,266,000 / 5,297,000 
(ClickZ, December 2009)


US users streamed 41% more video content in August 2009 than they did during the same period in 2008, according to ComScore. In addition, users are spending more of their time with the medium, with the average time per viewer up almost 39% year-on-year. However, total streams per viewer increased by around 20%, suggesting an increase in consumption of long-form video.

Unsurprisingly, YouTube dominated users' attention, accounting for over 60% of streams during the month. Hulu was its closest rival with just 3.4% of streams, but this figure could be somewhat skewed given the long-form nature of the majority of Hulu's content, compared with YouTube's generally shorter, user-generated offerings.

In terms of reach, however, Hulu lagged behind properties owned by Yahoo, MSN, and Fox Interactive Media, suggesting a relatively small, but engaged user base for the site. (ClickZ, September 2009)


The Nielsen Company reported on overall US online video usage and top online brands ranked by video streams for September 2009.  Year-over-year, unique viewers, total streams, streams per viewer and time per viewer were up, led by 25% growths in total streams and time per viewer.

Overall US online video usage, September 2009:
- Unique viewers: 139,334,000 (+12.3% year-on-year growth)
- Total streams: 11,021,873,000 (+24.8%)
- Streams per viewers: 79.1 (+11.1%)
- Time per viewer: 195.2 minutes (+24.8%)

The top 5 online brands ranked by video streams for September 2009 in the US were YouTube, Hulu, Yahoo!, MSN/WindowsLive/Bing and Fox Interactive Media. (The Nielsen Company, October 2009)


The number of US users viewing video-sharing sites such as YouTube has almost doubled since 2006, according to research by the Pew Research Center's Internet & American Life Project. The survey, conducted with a sample of 2,253 respondents in April 2009, found that 62% of adult internet users have used video sharing sites, up from the 33% who had done so in December 2006.

Unsurprisingly, user generated video was most popular amongst younger adults, with 89% of users aged 18-29 having consumed such content, and 36% claiming to do so on a typical day. Overall, 19% of respondents said they used video sharing sites on a typical day when asked in 2009, compared with just 8% in 2006. This figure is even higher among broadband users, at 23%.

In addition to user-generated video, more than a third (35%) of users said they had legally watched professionally produced TV or movie content on sites such as YouTube or Hulu. Among that group, 23% said they have connected their computer to a television screen so they could view video from the internet on their TV. That equates to around 8% of respondents overall.

The survey also revealed the use of online video-sharing sites is outranking social networking in terms of popularity, with only 46% of US adult users claiming to be active on sites such as Facebook and MySpace. Recent data from ComScore suggests that UK users are therefore far more engaged with social networks than their US counterparts, with almost 80% of British users logging into social networking services during the month of May. (ClickZ, August 2009)


67% of online Americans have now streamed or downloaded digital video content ("digital video users" as described here), according to recent data from Ipsos MediaCT's MOTION study. While YouTube continues to dominate the short video clip market and iTunes continues to do brisk business via downloads, the streaming of longer running content, such as TV shows and movies, has become more popular due to sites such as Hulu and Netflix.

The growth of Hulu in particular has been rapid - only 9% of digital video users were aware of Hulu in September 2008; today, its awareness is 41%. iTunes also posted growth for digital video during this time frame, and even YouTube keeps extending its impressive reach. At the same time, the visibility of MySpace as a digital video source has dimmed recently.

The increase in usage across multiple sites - and business models - confirms that Americans are watching a greater breadth of digital video than ever before, according to Ipsos MediaCT. As a result, TV and movie studios should continue to embrace online video as another avenue to extend their content properties and reach consumers. Studio support of Hulu clearly illustrates that many executives on the content side have already incorporated online digital media into their strategies.

It is important to note that digital video users watch almost 15 hours of TV on their traditional television per week versus only about two hours on their PC. In most cases, digital video users state a strong preference for viewing content on their televisions. With professionally produced content now available through legitimate online websites, consumers may be poised to adopt technology solutions that facilitate the connected living room so often mentioned in the past. There is a desire to combine the readily available online video content and the preferred viewing platform-the television.

The Ipsos MediaCT's MOTION study concludes that despite the onslaught of video choices online, Americans remain happy with their TVs and HDTVs, especially as TVs grow larger and resolution improves with HDTVs. However, Americans also enjoy the immediate gratification of digital video content accessible online, and creating an easy and affordable way to bridge the gap from online video to the TV would allow consumers to enjoy the best of both worlds.

Data were sourced from the April 2009 wave of Ipsos MediaCT's MOTION study, which was conducted via online interviews among a representative online population aged 12 years and older. (Ipsos, September 2009)


There will be 144 million online video viewers in the US in 2009, growing to 188 million viewers by 2013, according to eMarketer.

US online video viewers, 2008-2013:
- 2008: 135 million (70% of US internet users / 44% of the US population)
- 2009: 144 million (72% / 47%)
- 2010: 154 million (75% / 50%)
- 2011: 165 million (78% / 53%)
- 2012: 177 million (82% / 56%)
- 2013: 188 million (85% / 59%)

eMarketer indicates that the bulk of the current video inventory is sharable through social networks, blogs, microblogs, e-mail and other social platforms. That capability makes every video a potential viral hit and opens opportunities for content distributors and marketers. eMarketer believes that the quality of the content is rising, too and video offerings cater to all age groups and interests. (eMarketer, August 2009)


Through its YouTube property, Google tops online video sites in April 2009 for US audiences, according to comScore. Across all video sites, internet users viewed 16.8 billion online videos in April, an increase of 16% over March. YouTube saw significant increase in video viewing, which contributed to the month-over-month growth.

Google's video use increased 15% over March levels. The search giant served 6.8 billion videos, accounting for a 40.7% online video market share. Across Google, YouTube accounted for more than 99% of all videos viewed on the property.

Top US online video properties by number of videos served and percentage share of videos for April 2009:
Total Internet: 16.8 billion
- Google sites: 6.8 billion (40.7% market share)
- Fox Interactive Media: 513 million (3.1%)
- Hulu: 397 million (2.4%)
- Viacom: 315.2 million (1.9%)
- Microsoft sites: 288.3 million (1.7%)

In a month of record video viewing on Google, nearly 152 million US internet users watched an average 111 videos each. The NBC and Fox property Hulu accounted for 2.4% of videos viewed and just 4.2% of all minutes spent watching online video. The duration of the average online video was 3.5 minutes. (ClickZ, June 2009)


YouTube continued to rank as the No. 1 video Web brand in April 2009 with 5.5 billion total streams in April 2009, according to Nielsen Online. Meanwhile, Hulu continued its explosive growth trajectory, increasing 490% in total streams year-over-year, from 63.2 million in April 2008 to 373.3 million in April 2009, making it the fastest growing brand among the top 10.

Top Online Video Brands Ranked by Total Streams for April 2009, US - Home and Work:
Overall Online Video Usage: 9,452,996,000 streams
1. YouTube: 58.1% share of streams
2. Hulu: 3.9%
3. Yahoo!: 2.2%
4. Fox Interactive Media: 2.1%
5. Nickelodeon Kids and Family Network: 1.9%
6. MSN/Windows Live: 1.7%
7. ABC.COM: 1.6%
8. MTV Networks Music: 1.5%
9. Turner Sports and Entertainment Digital Network: 1.4%
10. CNN Digital Network: 1.2%
(Nielsen Online, May 2009)


17.4 million people in the US downloaded podcasts on a monthly basis in 2008, according to eMarketer. eMarketer projects that growth will continue at least through 2013, when there will be 37.6 million people downloading podcasts on a monthly basis, more than double the 2008 figure. As a percentage of internet users, podcast downloaders will grow from 9% in 2008 to 17% in 2013.

US podcast audience, 2008-2013:
- 2008: 17.4 million (9.0% of internet users)
- 2009: 21.9 million (11.0%)
- 2010: 26.7 million (13.0%)
- 2011: 30.6 million (14.5%)
- 2012: 34.6 million (16.0%)
- 2013: 37.6 million (17.0%)

US online buyers who purchase mostly online showed an even greater propensity to listen to podcasts. Some 50% of mostly online buyers in a PriceGrabber.com survey said they listened to podcasts - a far greater number than comparable percentages of internet users or consumers as a whole.

As for who is doing the downloading, a Pew Internet & American Life Project demographic profile of US adult internet users who downloaded podcasts showed that they skewed male and young. The group ages 18 to 29 had the highest representation of podcast downloaders. Rates of podcast downloading steadily decreased for older age groups. (eMarketer, March 2009)


E-mail Services and Marketing


The most e-marketing tactics implemented in 2009  were tweeting e-mail newsletters and sending out blog entries to e-mail lists, according to a survey of US small businesses by e-mail marketing company AWeber.  Fewer than 4 in 10 small businesses were engaging in those activities, and only about a quarter had e-mail sign-up forms on their social profiles or links within e-mail messages to follow them on social sites.

Social media marketing tactics US small businesses integrated with their e-mail marketing campaigns in 2009 (% of respondents):
- Tweet my e-mail newsletters: 36.01%
- Broadcast blog entries to my e-mail list: 35.14%
- Add sign-up forms on social media pages like Facebook: 25.38%
- Include "follow us" links in e-mail messages: 23.56%
- Place a link to each email message on social media pages: 20.0%
- Include share options in e-mail messages: 13.10%
- None: 31.87%

Many more small businesses have plans for the coming year, and more than ¾ consider integration of e-mail and social at least somewhat important. A majority plan to allow users to sign up for e-mails directly from social media sites like Facebook. This tactic allows e-mail marketers to grow their lists-cited as the top benefit of integrating social and e-mail by one-third of respondents-by allowing consumers to use their channel of choice and sign up on their own terms.

Almost half of small businesses will include "follow us" links in their e-mails, and about 44% will include share options in their messages. Just 13.1% of respondents had such options in 2009.

According to a study by e-mail marketing company GetResponse, including a social sharing option in an e-mail increased their clients' click-through rates from an average of 7.2% to 8.7%, and including as many as three different sharing options boosted the rate to 11.2%.

(eMarketer, June 2010)

 


 

Multichannel campaigns will find greater success when marketers are aware of consumer preferences and behaviours, according to findings from a Forrester Consulting study commissioned by ExactTarget.  Just 32% of US marketing decision-makers surveyed in July 2009 said they knew how their customers behaved across channels, and only 37% were aware of consumers' channel preferences.

In June 2009, ExactTarget found in its "2009 Channel Preferences Survey" that Americans' opinions about permission marketing were changing.  Respondents' preference for e-mail and text messaging was greater than the year before, and direct mail was losing ground fast.

Change in preferred channel of permission-based promotional messages among US internet users, June 2009 (% change):
- E-mail: +3.6%
- Text messaging: +2.9%
- Phone: +1.4%
- Instant messaging: +0.6%
- Social media: +0.3%
- Direct mail: -8.6%

Now, consumers choose e-mail at a rate of three-to-one over any other channel for marketing communications. But permission is key.  Half of consumers said unsolicited messages were unacceptable even from companies they did business with regularly; this was up from about a quarter in 2008.

Interestingly, as e-mail gained in popularity for marketing messages, internet users reported using it less for their own written communications, down 10% points year over year.

Written communication method used most often by US internet users, June 2009 (% of respondents):
- E-mail: 57% (down from 67% in February 2008)
- Text messaging: 24% (up from 16%)
- Social networks: 10% (up from 3%)
- Instant messaging: 5% (down from 8%)
- Letters/postcards: 3% (down from 5%)

In spite of Web users' increased use of social networks for written communication, they were not very open to receiving marketing messages through such sites.  ExactTarget found that 70% of monthly Facebook users who were fans of a brand said they had not given companies permission to send them information through the channel; again marking the importance of explicit opt-ins and channel preferences. (eMarketer, October 2009)


E-mail marketers are used to seeing reported delivery rates around 95%. However, data from Return Path, an e-mail services company, indicates they may be missing the hard truth. Hard bounces, which are admittedly rare, are not the only reason for non-delivery of e-mail. ISP and corporate filtering systems quietly weed out messages without informing the sender. Some messages end up in bulk or spam folders, while others are, according to Return Path, "completely missing". In all, Return Path found 79.3% of permission e-mail messages made it to inboxes in North America in the first half of 2009.

Average inbox placement rate for permission commercial e-mail in North America, First half 2009 (% of e-mails sent):
- Inbox: 79.3%
- Missing: 17.4%
- Junk: 3.3%

In the US alone, the inbox placement rate was slightly higher, at 82%. It was even more difficult for e-mail marketers to reach business subscribers. Only 72.4% of business-to-business (B2B) e-mails were delivered to inboxes.

Successful delivery rates varied widely by ISP. In the US, Gmail subscribers were hardest to reach, with a 23% failure rate. Hotmail and MSN were close behind, at 20% each.

Many marketers are still resistant to implementing the best practices that make email deliverability more likely and more consistent, according to Return Path. We still see programs with high frequency, low value and lack of segmentation. Welcome messages, efficient opt-out procedures and appropriate permission levels are all best practices recommended by Return Path. (eMarketer, August 2009)


94.1% of marketing e-mails were delivered in Q1 2009, according to the "Q1 2009 Email Trends and Benchmarks" report by Epsilon. In addition, 22.1% of e-mails were opened and 6.1% were clicked through. Open and click-through rates were up slightly from Q4 2008 when rates were 20.9% and 5.8% respectively. Deliveries were down compared to Q4 2008 when it stood at 94.4%.

How often e-mails were opened and clicked varied with the industry of the sender and the size of the list.

In Q1 2009, general financial services e-mails were opened most frequently in North America, followed by general business products and services, and credit cards and banks. The least popular categories were apparel, publishing and media, consumer packaged goods and electronics.

Click-through rates in January through March 2009 were highest for consumer packaged goods, followed by general financial services and pharmaceuticals. (eMarketer, July 2009)


Two out of five marketers say that sponsoring a Web site or page is the most effective way online to enhance a brand's perception, according to the 2009 Advertising Effectiveness Survey conducted by Forbes magazine

Respondents to the survey said the most effective tools for generating conversions, such as a sale, are: search engine optimization (48%); e-mail marketing (46%) and pay-per-click search marketing (32%).

Looking ahead, those surveyed said they expect viral marketing and search engine optimization will likely see the biggest increases in allocation of marketing budgets in the coming six months. Ad networks, they said, will likely see the biggest decline in share of marketing budgets during that time. (ClickZ, June 2009)


18% of US e-mail marketers interviewed in February-March 2009 said that they are not tracking the effectiveness of their campaigns, according to eROI. Reasons for not tracking varied. Most marketers not tracking site conversions did not know how. Lack of time and budget were also concerns.

Similarly, the biggest reasons for not tracking e-commerce conversions were lack of knowledge and budget. (eMarketer, April 2009)


In the travel industry where so much activity has moved to the online arena, it's crucial that companies communicate effectively and efficiently with their customers, according to a report by Epsilon "Flying High: Measuring the Value of Email Marketing for the Travel Industry". In fact, recipients of travel e-mail showed even higher loyalty than retail (56%), consumer packaged goods (55%), pharmaceutical (44%) or finance (40%) category recipients, with 63% saying in October 2008 that they were more likely to buy from companies that sent them e-mail.

A whopping 92% of respondents who received travel e-mail thought it was a "great way" to learn about new products and offerings. More importantly, consumers often took easily measurable actions such as booking online, clicking links and downloading coupons after receiving e-mail from a travel company.

Actions taken by US e-mail users as a direct result of receiving an e-mail from a travel company, October 2008 (as a % of respondents):
- Book travel online 79%
- Click link to e-mail to learn more: 73%
- Visit aggregator site: 71%
- Search for reviews: 66%
- Download/print coupon: 66%
- Visit a new destination: 55%
- Try a new hotel: 55%
- Share coupon or forward e-mail: 45%
- Try a new airline: 35%
- Type/copy URL directly into browser: 33%
- Contact travel agent: 14%

(eMarketer, February 2009)


Promotional e-mail volume accelerated in October 2008 and reached a peak in December 2008 when retailers sent consumers a monthly average of 14.6 e-mails, according to the "Retail E-Mail Year-End Trends for 2008" report from Smith-Harmon.

Average number of promotional e-mails sent by US online retailers, by month in 2008:
- January: 8.8
- February: 8.2
- March: 8.9
- April: 9.2
- May: 9.3
- June: 9.0
- July: 9.2
- August: 9.1
- September: 9.5
- October: 10.2
- November: 11.3
- December 14.6  

Smith-Harmon's analysis of the top 100 retailers revealed that 90% of them increased the number of e-mails they sent during the holidays. However, e-mail marketing still accounts for only 1.5% of direct marketing budgets in the US, according to Smith-Harmon. (eMarketer, February 2009)


Search Engines and Searches

Google accounted for 71.40% of all US searches conducted in the four weeks ending May 1, 2010, according to Experian Hitwise. Yahoo! Search, Bing and Ask received 14.96%, 9.43% and 2.18%, respectively. The remaining 78 search engines in the Hitwise Search Engine Analysis Tool accounted for 2.03% of US searches.

Longer search queries, averaging searches of five to more than eight words in length, were flat between March 2010 and April 2010. The same time period showed that shorter search queries - those averaging one to four words long - also were flat from month to month. Two-word searches comprised the majority of searches, amounting to 23.06% of all queries, and increased 1% in April 2010.

Percentage of US clicks by number of Keywords, April 2010:
- One word: 22.77% (-1% compared to March 2010)
- Two words: 23.06% (+1%)
- Three words: 20.31% (unchanged)
- Four words: 14.23% (unchanged)
- Five words: 8.55% (unchanged)
- Six words: 4.71% (unchanged)
- Seven words: 2.60% (unchanged)
- Eight or more words: 3.78% (unchanged)

Search engines continue to be the primary way internet users navigate to key industry categories. Comparing March 2010 with April 2010, Automotive, Business and Finance, Entertainment, News and Media, Shopping and Social Networking categories showed double-digit increases in their share of traffic coming directly from search engines.

Among the top three search engines, Google sent the most visits to the Automotive, Health, Shopping and Travel categories. Google's%age of upstream traffic grew for the Automotive (+11%), Shopping (+15%) and Travel (+6%) categories. Yahoo! Search saw gains in the Automotive and Shopping categories. Bing saw double-digit growth among two categories - Health and Shopping - including a 105% increase in the Health category.

(Experian Hitwise North America Newsletter - June 2010)


A year after the official re-launch of its search product under the Bing brand, Microsoft's share of US searches has grown by 50%.  Microsoft's sites accounted for 12.1% of US searches in May 2010, up from 8% of searches in May 2009, according to comScore. That represents a year-over-year growth rate of over 50% following the official re-launch of its search product under the Bing brand on June 1, 2009.

Over the same period, searches on Google and Yahoo properties dropped by 1.3% points and 1.8% points, respectively, with Ask and AOL sites also losing searches. Data for Google sites does not include searches on its video site YouTube.

Month-over-month, Microsoft sites accounted for 6% more searches in May than they did during April, with Google sites attracting just 2% more. Overall, users conducted 3% more searches, month-over-month.

Share of US searches among leading providers, May 2010:
- Google Sites: 63.7% (up from 65.0% in May 2009)
- Yahoo Sites: 18.3% (down from 20.1%)
- Microsoft Sites: 12.1% (up from 8.0%)
- Ask Network: 3.6% (down from 3.9%)
- AOL Network: 2.3% (down from 3.1%)

(ClickZ, June 2010)

 


 

Search spending among travel advertisers in the US was 24% higher in April 2010 than it was during the same month in 2009, with average cost-per-click ads in the sector rising by 24% over that 12 month period, according to data from Efficient Frontier. Cost-per-click level reached US$0.71 in April 2010. (ClickZ, May 2010)


As it nears the year anniversary of its official re-launch, share of US searches for Microsoft's Bing has contracted for two consecutive months, according to data from Hitwise. The engine enjoyed three months of consistent growth until February, during which it reached 9.7% of searches, but that figure dropped to 9.62% in March, and further to 9.43% in April.

Year-over-year, however, Microsoft has almost doubled its share of searches from the 5.68% its engine represented in April 2009.  Having grown by a surprising 21% in March 2010, Ask.com's share nosedived 37% in April, accounting for just over 2% of searches overall. Yahoo's share also dipped slightly, down 1% versus March. Meanwhile, Google's share grew 2%, month-over-month, accounting for almost 72% of searches. Year-over-year, Google's share has therefore dipped by 1.34% points.

Share of US searches among leading providers, April 2010:
1. www.google.com: 71.40% of searches (+2% compared to March 2010)
2. search.yahoo.com: 14.96% (-1%)
3. www.bing.com: 9.43% (-2%)
4. www.ask.com: 2.18% (-37%)
(ClickZ, May 2010)


Experian Hitwise revealed the top search engines sites in the US for the 4 weeks ending May 22 2010, ranked by volume of searches.

Top search engines for the industry "All Categories" in the US, for the 4 weeks ending May 22 2010 by volume of searches:
1. www.google.com: 72.00%
2. search.yahoo.com: 14.58%
3. www.bing.com: 9.20%
4. www.ask.com: 2.18%
5. www.aolsearch.com: 1.06%

Top search engines for the industry "Computers and Internet - Search Engines" in the US, for the week ending May 22 2010 by visits:
1. Google: 65.96%
2. Yahoo! Search: 12.06%
3. Bing: 10.34%
4. Ask: 1.96%
5. AOL Search: 1.11%
6. bing Videos: 0.64%
7. Yahoo! Image Search: 0.58%
8. Dogpile: 0.50%
9. bing Images: 0.44%
10. Google Images: 0.37%
(Experian Hitwise, May 2010)


Americans conducted 15.5 billion searches in April 2010, according to comScore. Google Sites led the US search market in April with 64.4% of the searches conducted, followed by Yahoo! Sites (up 0.8% points to 17.7%), and Microsoft Sites (up 0.1% points to 11.8%).

Both Yahoo! Sites and Microsoft Sites have experienced gains due in part to the introduction of new site navigation experiences that tie content and related search results together within several channels. These features provide search results to users as they navigate through topical content and meet comScore's established criteria for counting search queries. Ask Network captured 3.7% of the search market, followed by AOL LLC with 2.4%.

comScore search report, April 2010 (Total US - Home/Work/University Locations):
- Google Sites: 64.4% of searches (-0.7% compared to March 2010)
- Yahoo! Sites: 17.7% (+0.8%)
- Microsoft Sites: 11.8% (+0.1%)
- Ask Network: 3.7% (-0.1%)
- AOL LLC Network: 2.4% (-0.1%)

Americans conducted 15.5 billion searches in April, up slightly from March. Google Sites accounted for 10 billion searches, followed by Yahoo! Sites (2.8 billion), Microsoft Sites (1.8 billion), Ask Network (574 million) and AOL LLC (371 million).

In the April analysis of the top properties where search activity is observed, Google Sites led the search market with 14.0 billion search queries, followed by Yahoo! Sites with 2.8 billion queries and Microsoft Sites with 1.9 billion. Amazon Sites experienced sizeable growth during the month with an 8% increase to 245 million searches, rounding off the top 10 ranking. (comScore, May 2010)


Google continued to grow its dominance of the paid search space during the first quarter of 2010, according to a report from agency Efficient Frontier. The agency's State of Search Report estimates Google accounted for almost ¾ of all spending on search advertising in the US during the first three months of 2010, up from a 74.2% share in Q1 2009 and 72.3% share in Q4.

Microsoft's Bing engine also experienced substantial relative growth, accounting for 6.5% of spend during the first quarter of this year, up from just 4.5% in Q1 2009.

Growth for those two parties comes at the expense of Yahoo's ailing search product, which saw its share of spend drop to 18.7% from 21.3%. Similar trends were evident for share of clicks.

Of course, Microsoft and Yahoo penned an agreement in July that effectively made Bing the default provider of paid search services on Yahoo sites for the next 10 years, with the pair splitting the revenue generated from traffic through Yahoo properties. (ClickZ, April 2010)

 


 

Making it onto the first page of results from Google, Yahoo! or Bing has always been a major goal, with marketers aware that consumers will give up after relatively few hits. Data from iCrossing analyzing natural-search referrals shows that only a tiny number come from results after the first page.

US natural search visits from Google, Yahoo! And Bing, by search engine results page, Q2-Q4 2009 (% of total in each group):
- Google: 95.8% (page 1) / 2.5% (page 2) / 1.7% (other)
- Yahoo!: 95.2% / 2.8% / 1.9%
- Bing: 95.0% / 3.4% / 1.6%

That was true across the big three search engines, with at least 95% of traffic from each originating from the first page of results after a non-branded search. Less than 2% of search-referred traffic came from clickers persistent enough to look for results after the second page.

Marketers recognize the importance of investment in search optimization so they will appear in those results and benefit from the huge portion of clicks that go to the top hits. The Society of Digital Agencies (SoDA) found that search optimization was the third priority of senior marketers worldwide, after social networking and improving digital infrastructure. A report from Econsultancy and ExactTarget indicated natural search would see a rise in spending by online marketers worldwide, nearly 2/3 of whom planned to increase outlays in the channel.

iCrossing also found that, in terms of referrals rather than queries, Google is doing even better than reported by researchers such as comScore, which found that 65.7% of US search queries in December 2009 were conducted on Google.

Google, Yahoo! and Bing US market share of natural non-branded search visits, Q2-Q4 2009 (% of total):
- Google: 74%
- Yahoo!: 13%
- Bing: 13%

Counting referrals for non-branded search terms, Google's share rose to nearly 3/4. (eMarketer, February 2010)


Google accounted for 72.25% of all US searches conducted in the four weeks ending Jan. 2, 2010, according to Experian® Hitwise®.

Yahoo! Search, Bing and Ask.com received 14.83%, 8.92% and 2.54%, respectively. The remaining 66 search engines in the Hitwise Search Engine Analysis Tool accounted for 1.48% of US searches.

Percentage of US searches among leading search engine providers, December 2009:
1. www.google.com: 72.25% (+1% compared to November 2009)
2. search.yahoo.com: 14.83% (-4%)
3. www.bing.com: 8.92% (-4%)
4. www.ask.com: 2.54% (-4%)

Shorter search queries (averaging searches of 1-4 words in length) were flat between November and December 2009. Searches of 1-2 words increased 1%. The same time period showed that longer search queries (those averaging 5 to more than 8 words long) were down 2% from month to month. Searches of 1 word comprised the majority of searches, amounting to 24.34% of all queries.

Percentage of U.S. clicks by number of keywords, December 2009:
- 1 word: 24.34% (+1% compared to November 2009)
- 2 words: 23.41% (+1%)
- 3 words: 20.32% (0%)
- 4 words: 13.79% (0%)
- 5 words: 8.02% (-1%)
- 6 words: 4.37% (-1%)
- 7 words: 2.37% (-2%)
- 8 or more words: 3.38% (-5%)
(Hitwise North America Newsletter - January 2010, January 2010)


Search engines continue to be the primary way internet users navigate to key US industry categories. Google was sending the most visits to the travel industry in December 2009 among the top three search engines. Google's percentage of upstream traffic grew in the last year.

Percentage of US upstream traffic from search engines in the travel industry, December 2009:
- Google: 29.55% (up from 27.09% in December 2008)
- Yahoo!: 4.02% (down from 4.99%)
- Bing: 2.78% (up from 1.88%)

(Hitwise North America Newsletter - January 2010, January 2010)


Americans conducted 14.7 billion searches in December 2009, with Google Sites leading the search market and accounting for 65.7% search market share, virtually unchanged from 65.6% in November 2009, according to comScore.

Search Report, December 2009 (Total US - Home/Work/University Locations):
1. Google Sites: 65.7% (+0.1% compared to November 2009) / 9.7 billion searches
2. Yahoo! Sites: 17.3% (-0.2%) / 2.5 billion
3. Microsoft Sites: 10.7% (+0.4%) / 1.6 billion
4. Ask Network: 3.7% (-0.1%) / 545 million
5. AOL LLC Network: 2.6% (-0.2%) / 383 million
(ComScore, January 2010)


Analysis of query content for the travel category reveals that the search terms consumers use on the leading search engines (Google.com, Bing.com and Search.Yahoo.com) vary greatly, according to Hitwise. One reason for these differences might be the suggestions the search engines offer as one types in a query. It is important for search marketers to tailor search campaigns by search engine to reflect these differences in query content.

Take for example the following Hitwise Search Term Variations report for the words "flights to". This report shows all of the different search terms that consumers entered into search engines last week that included the keywords "flights to".

Search terms containing ‘flights to' - week ending August 15, 2009:
(Search Terms: 598 returned)
1. flights to hawaii: 3.96%
2. flights to florida: 2.19%
3. cheap flights to florida: 1.88%
4. cheap flights to las vegas: 1.63%
5. flights to las vegas: 1.47%

Hitwise filtered that report by Search Engine and dramatic differences in the "flights to" queries performed on the different engines were seen. For example, as the following list illustrates, Florida figures prominently among Google users, with "flights to Florida" and "cheap flights to Florida" ranking #1 and #2 among Google searches that include the words "flights to". A Florida related query doesn't appear until #14 on Yahoo! Search. On Bing.com, a search for flights to Orlando comes in at #4, but the word Florida isn't included in a "flights to" query until #59.

Hitwise US: Search term variations for ‘flights to' - Week to 15/08/2009:

- Google.com: 1. flights to florida; 2. cheap flights to florida; 3. cheap flights to Europe; 4. cheap flights to las vegas; 5. flights to reno Nevada

- Yahoo! Search: 1. cheap flights to las vegas; 2. flights to dubai; 3. cheap flights to mexico; 4. flights to new mexico; 5. airline flights to reno from seattle

- Bing: 1. flights to Hawaii; 2. flights to las vegas; 3. new york to san francisco flights; 4. flights to orlando; 5. flights to maui

Similar differences are evident in hotel related searches. A report on search terms that include the word "hotel" (filtered to include only destination related searches rather than brand names) puts Las Vegas, Virginia Beach, Myrtle Beach and Atlantic City at the top of Google hotel searches. Among Bing users, New York comes in at #2. (Hitwise, August 2009)


Americans conducted more than 14 billion searches in June 2009, with Google Sites accounting for 65% of the search market share, according to comScore. Microsoft Sites grabbed 8.4% market share, a 0.4% point gain versus May, after introducing its new search engine, Bing.

comScore Core Search Report, June 2009 (Total US - Home/Work/University Locations):
1. Google Sites: 65.0% share of total core search (unchanged compared to May 2009)
2. Yahoo! Sites: 19.6% (-0.5%)
3. Microsoft Sites: 8.4% (+0.4%)
4. Ask Network: 3.9% (unchanged)
5. AOL LLC: 3.1% (unchanged)
* Based on the five major search engines including partner searches and cross-channel searches. Searches for mapping, local directory, and user-generated video sites that are not on the core domain of the five search engines are not included in the core search numbers.

(comScore, July 2009)


Google's share in the search domain has fallen from 78.72% in May 2009 to 78.48% in June 2009, according to StatCounter. Microsoft's share of the US market, meanwhile, has grown to 8.23% since the launch of Bing, up from the 7.8% share it enjoyed before the rebranding of its search portal.

Yahoo! remains the second most popular search engine in the US, accounting for 11% of all search traffic in June 2009.

At first sight, a 1% increase in market share does not appear to be a huge return on the investment Microsoft has made in Bing, but the underlying trend appears positive, according to StatCounter. As per the information available, Bing's share peaked in the first week of June, shortly after launch, when it accounted for more than 9% of search traffic. (EyeForTravel, July 2009)


Microsoft has reportedly added a feature to Bing that allows the search engine to query the internet for so-called real-time data, including postings from Twitter users.

The first of the three major internet search engines to include this functionality, Bing's move shows the importance internet companies are attaching to "real time" blogging services like Twitter, and likely foreshadows an arms race as digital marketers try to make money searching through this content, highlighted Dow Jones. Real-time search, which is in its infancy, is regarded by internet marketers as a promising source of future advertising revenue, due to the exploding popularity of services like Twitter. (EyeForTravel, July 2009)


Google accounted for 73% of all US searches conducted in the four weeks ending April 25, 2009, according to Hitwise. Google was followed by Yahoo! Search, MSN Search and Ask.com. The remaining 49 search engines in the Hitwise Search Engine Analysis Tool accounted for 1.36% of US searches.

Percentage of US searches among leading search engine providers, April 2009:
1. www.google.com: 72.74% (+7% compared to April 2008)
2. search.yahoo.com: 16.27% (-20%)
3. search.msn.com: 5.68% (-9%)
4. www.ask.com: 3.95% (-5%)

The length of search queries has increased over the past year. Longer search queries, averaging searches of 5 to more than 8 words in length, have increased 7% between April 2008 and April 2009. Searches of 8 or more words increased 18%. The same time period showed that shorter search queries - those averaging 1 to 4 words long - have decreased 2%. Searches of 2 words comprised the majority of searches, amounting to 22.95% of all queries.

Percentage of US clicks by number of keywords in April 2009:
- 1 word: 20.37% (-3% compared to April 2008)
- 2 words: 22.95% (-5%)
- 3 words: 21.84% (+1%)
- 4 words: 15.04% (+3%)
- 5 words: 8.78% (+4%)
- 6 words: 4.76% (+5%)
- 7 words: 2.58% (+8%)
- 8 or more words: 3.68% (+18%)
(Hitwise North America newsletter - May 2009, May 2009)

 


 

A total of 8,608,488 searches were carried out in the US in April 2009, according to Nielsen Online. Google Search was the No. 1 search provider when ranked by total searches in April 2009, with 5.5 billion total searches; representing 64% of all search queries conducted during the month.

Top 10 Search Providers for April 2009, by share of searches (US):
1. Google Search: 64.0%
2. Yahoo! Search: 16.3%
3. MSN/Windows Live Search: 9.9%
4. AOL Search: 3.7%
5. Ask.com Search: 2.1%
6. My Web Search: 0.7%
7. Comcast Search: 0.5%
8. Yellow Pages Search: 0.4%
9. NexTag Search: 0.3%
10. Dogpile.com Search: 0.2%

With a 615% increase in visitors, MSN/Windows Live Shopping Search was the fastest growing shopping search provider in April 2009, due in part to the popularity of its Cashback program.

MSN/Windows Live has also performed well in translating searchers into customers, driving 12% of dollars to major e-commerce sites. (Nielsen Online, May 2009)


The US average Cost-Per-Click in search in the Travel category stood at $0.61 in March 2009, according to data and research by Efficient Frontier. This was down by 3% compared to the previous month. (ClickZ network, April 2009)



The four basic search options are paid search, contextual advertising, paid inclusion (all three are types of advertising) and search engine optimization (SEO). All four options will experience increased spending through 2013 when total US search marketing outlays will surpass $23 billion, according to eMarketer

US search engine marketing spending by type in 2013 (2008 figures in brackets):
- Paid search advertising: $14,725 million (up from $7,700 million in 2008)
- Contextual advertising: $3,600 million ($2,150 million)
- Paid inclusion: $1,205 million ($841 million)
- SEARCH ADVERTISING SUBTOTAL: $19,530 million ($10,691 million)
- Search engine optimization (SEO): $3,850 million ($1,550 million)
- SEARCH MARKETING TOTAL: $23,380 million ($12,241 millin)
(eMarketer, February 2009)

 

 

 


Last Updated on Friday, 27 August 2010 14:28
 

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