The latest set of data from the Pew Internet & American Life Project shows that after a 50% increase in home broadband adoption last year, the growth pace is likely to slow soon. John B. Horrigan, Senior Research Specialist at Pew, says that there are two factors suggesting growth may be moderating. "First, fewer experienced dial-up Internet users - the prime candidates to upgrade to high-speed connections - now say they want broadband than a year ago," Horrigan writes in the report, titled Adoption of Broadband to the Home. "Second, dial-up users who are most likely to say they would like to get broadband at home are the ones who say it is not available in their neighborhood." Nevertheless, the report says, about 13% of the dial-up Internet population seems ripe to migrate to broadband service. These users have been online for 6 or more years and say they are interested in moving to broadband. And - importantly - they have online behavioral patterns similar to existing broadband users. That is, they are already active information producers and gatherers, which are distinctive characteristics of Internet users who today have broadband at home. Pew data show that as of the end of March 2003, 31% of home Internet users had a high-speed connection at home. This is up from 2 in October 2002 and 21% in March 2002. Today, approximately 30 million people - or 16% of all Americans - log on at home with a broadband connection. That is double the number who had a high-speed connection at home at the end of 2001 and, as noted, a 50% increase in the past year. In 4% In not quite three years, the United States has witnessed a five-fold increase in the number of people who go online with a fast connection at home. Even with the fast pace of broadband adoption, there are concerns that it may not be fast enough, particularly in contrast to countries such as South Korea and Canada. In those countries, half of all households have high-speed connections. Although about a third of home Internet users in America have signed up for broadband, many wonder why more haven't done so. In our surveys, it is difficult to probe why some Internet user do not choose to get broadband connections. After all, they have chosen not to buy something about which they may know very little. We do, however, ask whether dial-up users want broadband and whether Internet users know whether broadband service is offered to their neighborhood. According to a survey we conducted from October 7, 2002 through October 27, 2002 of 1,677 Americans, 71% say that they live in an area where broadband service is available; 12% say they cannot get broadband service at home, with the remainder (17%) saying they don't know whether service is available or not. People who report they cannot get broadband are twice as likely to live in rural areas as the general population. But even with the widespread availability of broadband, most dial-up users say they are content to stick with their dial-up modem. Nearly three in five (57%) of dial-up users say they have no interest in having a faster connection at home, while 38% say they would like to upgrade to broadband. The numbers reverse, however, for those who say broadband is not available in their area. Among these people, 61% say they would like to have a faster connection with 35% saying they're not interested in an upgrade.2 It seems that those who want broadband the most are those who can't get it.
Jupiter Research, a division of Jupitermedia Corporation yesterday released the results of a survey confirming that search marketing will continue to be the hottest segment of online marketing into 2004. "Seventy six percent of marketing executives that used search engine marketing rate it as more successful than banner-style advertising and 64% plan on increasing their spending," said Jupiter Research analyst Gary Stein. "For consumers, Web-wide search is more accurate than local site search a full 52% of the time," added Jupiter Research senior analyst Matthew Berk. "Search is the single greatest opportunity to learn from - and influence - customer behavior." Also, Jupitermedia announced today that its Jupiter Research division will launch a new service on May 27, 2003 called Online Search. This unique service will help businesses optimize their search marketing tactics and spending within their overall media mix. It will also help enterprises evaluate their search engine strategies, both on their own sites and Internet-wide. Covering the leading search engine vendors and search marketing services, Jupiter Research's Online Search coverage will help companies develop business strategies, choose partners and technologies, and navigate an increasingly complex vendor landscape. The service also covers the evolution and economics of the online search industry, using proprietary consumer data, executive surveys, and industry forecasts. "Jupitermedia is the leading provider of information about this booming marketplace," stated Alan M. Meckler, Chairman and CEO of Jupitermedia. "The launch of our new Online Search research service, along with our daily editorial coverage in SearchEngineWatch.com and SearchEngineMarketingList.com, and our world tour of Search Engine Strategies conferences and expos, completes the picture." The complete findings of this survey are immediately available to Jupiter Research clients online.