• by Paul Gough , August 4, 2003

A study profiling the at-home broadband audience finds that these users spent $15 billion online last year and are twice as likely as other Internet users to have spent more than $2,500 online.

The study, released Monday by Scarborough Research, finds what might be a higher than previously predicted rate of penetration for broadband among at-home users, 23 million or 19%. The Scarborough study tracked Internet users from August 2001 to September 2002, compared to other reports that have forecast up to 24.2 million at-home broadband subscribers by the end of this year, a full year later. Broadband includes ISDN, DSL or cable modem technology.

The at-home broadband audience is responsible for 31% of all online spending among consumers, Scarborough said. The study found at-home broadband users are 39% more likely to buy jewelry online, 64% more likely to buy toys and games online and 64% more likely to buy a car, truck or SUV online.

The demographic is well educated and affluent, with money to spend. And they're not afraid of the Web. Scarborough said broadband users are 12% more likely than all adults accessing the Internet to have a college degree and 17% more likely to have a graduate degree. They're also 32% more likely to have household incomes of $75,000 or more. A quarter are between 35 and 44; half have one or more children in the household.

"People with broadband tend to have been on the Internet longer, they tend to spend more time on the Internet, they have a tendency to participate in more activities online like online bill paying," said Gary Meo, senior vice president, Internet and print sales at Scarborough Research. "They're more comfortable with the online experience."

Meo said that comfort level - gained in total time online as well as having experience with a broadband connection at work - has brought an opportunity for marketers to use rich media.

"When you're using the Internet and reaching them at an in-home environment, the advantages that broadband brings, the ability to provide rich content and rich media, are important drivers to success," Meo said. "It opens up a whole new world of creativity and different kinds of advertising formats that people with a dialup connection would just get bored waiting for and just opt out."

Geoff Ramsey, chief executive officer of eMarketer, said that all the data has suggested that the early adopters of at-home broadband service have been upper income, well educated, spending more and spend more on time. But he said it's still unclear what will happen when next set of users jump to at-home broadband.

"One of the critical factors looking forward is, is the next generation of broadband users going to have the same usage patterns," Ramsey asked. "The next wave may not behave like the early adopters."

He counseled restraint when dealing with the opening doors of rich media.

"I think it means thinking of the Internet more of a pull medium rather than a push medium," Ramsey said. He said that it's important to use rich media technology to provide users with the ability to get more information like virtual tours, product simulations and other enhancements. But don't beat them over the head with it.

"Let them know these rich media and broadband-intensive applications exist, but don't push it out to them," he said. He said even broadband users will be turned off if applications get in the way of their experience.