• by July 12, 2000

Good news for advertisers! According to the new eConsumer Shopping Report issued by eMarketer, more than 3 out of 4 U.S. internet users will be purchasing online by 2003. The number of U.S. internet shoppers will increase by 73% to 63.4 million by year-end 2000 and will soar to 106 million by 2003. U.S. revenues from online consumer shopping will reach $37 billion by year-end 2000 and will grow to $104 billion in 2003.

Additionally, the report shows that 68% of all U.S. web users will be shopping online by year-end 2000, compared to 53% of internet-using teens. This is primarily due to the fact that most teens do not have access to a personal credit card. Online spending by teenagers represent just 0.15% of their total expenditures on products and services, and less than 1% of total U.S. online spending. The report projects that 5.8 million, or 53% of teenage users will make at least one purchase by year-end 2000. By 2003, 9.8 million, or 74% of teen users will have made a purchase online.

“E-commerce growth will be driven primarily by new users and buyers for the next few years,” said Darren Allen, eMarketer's Senior Analyst. “After 2003, however, most growth will come from increased spending per individual user or internet-using household.”

The report also showed that almost 34 million of U.S. households are actively using the internet, and 23.5 million, or 69% have made a purchase. By 2003, 52 million households will be online, and more than 42 million will be buying online. While women represent 51% of the entire U.S. population, they will not achieve true parity participation on the internet until 2001 or 2002.

By year-end 2000, 93% of internet shoppers will become internet buyers purchasing $627 worth of goods online per person, up from $500 in 1999. This figure will double to $1,033 by 2003. The report also found that senior citizens are rapidly growing to become the second-largest untapped customer base after minorities.

With these projections, the global competition for web advertising dollars promises to heat up among web content providers and publishers.