Commentary

Affluent Americans Power Internet and Broadband Growth

Affluent Americans Power Internet and Broadband Growth

The latest findings from Nielsen//NetRatings show affluent Americans leading all income groups in year-over-year Internet growth. Online surfers making total household incomes of $150K and above grew 31 percent since last March 2003, topping the list of fastest growing income groups. In addition, higher income Internet users show greater adoption rates for broadband. Broadband surfers made up 69 percent of the total audience for those with incomes of $150K and above, as compared to 31 percent accessing via dial-up.

Year-Over-Year Internet Access Growth (US, Home)

HH Income LevelUnique Audience (000)
Mar 2003
Unique Audience (000)
Mar 2004
Yearly Percent Growth
$ 150,000+6,010 7,873 31%
$ 75,000 - 99,99920,73226,39327%
$ 100,000 - 149,99914,35617,78624%
$ 0 - 24,9997,961 9,399 18%
$ 25,000 - 49,99933,07437,82614%
$ 50,000 - 74,99938,16542,47311%

Source: Nielsen//NetRatings, March 2004

Internet users earning upper-level incomes have a higher concentration of broadband adopters. Broadband surfers made up 69 percent of the total audience for those with incomes of $150K and above, as compared to 31 percent accessing via dial-up. Those earning between $100K-$150K showed a 61/39 split favoring high speed, while Internet users with incomes between $75K-$100K posted an even split among narrowband and broadband users.

Middle and lower income surfers accessing the Internet via broadband posted much smaller concentrations. Almost two-thirds of individuals with household earnings between $25K-50K log online via narrowband. Broadband composition is even less for lower income surfers earning between $0-25K, with just 25 percent accessing via cable, DSL or other high speed.

"Cost plays a tremendous part in Internet access patterns," said Kenneth Cassar, director of strategic analysis, Nielsen//NetRatings. "While broadband has become much less expensive over the past few years, it's still a significant cost as compared to narrowband. Couple high-speed access with other utility expenses, and households with tighter budgets simply would not be able to afford the luxury of having broadband."

Broadband vs. Narrowband by Household Income March 2004 (U.S., Home)

Income LevelNarrowband Broadband
$ 150,000+31% 69%
$ 100,000 - 149,999 39% 61%
$ 75,000 - 99,99950% 50%
$ 50,000 - 74,999 54% 46%
$ 25,000 - 49,99964% 36%
$ 0 - 24,999 75% 25%

Source: Nielsen//NetRatings, March 2004

For more information, please visit www.nielsen-netratings.com

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