Internet Quarterly - UK - September 2007

SUMMARY

Abstract

The initial speed of growth displayed by the Internet caught everyone by surprise. Just think how much you rely on it today and try to remember a time without it. And it's still changing at that same hectic speed. Which is why Mintel has introduced the first Internet report that moves with the times - a living-breathing analysis of the Internet and how consumers use it. Available immediately on a subscription basis, updated quarterly.

nb Listed price is for four issues over 12 months

Sampling 870 Internet users, Mintel identifies the usage, access and subject of Internet use. With updates posted each quarter, it's the ideal way to stay in touch with how, where, when and why the Internet is being used in your sector, along with what purchases are made.

• How do users access the Internet?
• Which ISP's and browsers are used?
• Where do they visit when online?
• When do they surf? At home or at work?
• What do they purchase online and how often?
• Who is the most likely to make a purchase?

With wide-ranging and extensive coverage across all the major product sectors present on the web, the Mintel Internet Quarterly is essential eye-opening reading for anyone involved in e-commerce.

• Updated, fresh data in a rapidly-moving sector
• Monitor and track trends on a quarterly cycle
• Extensive coverage of all key product sectors
• Comparison and analysis of the main online areas
• Change your offer to meet consumer demands
• Build an historical document with quarterly live data

Because the information is updated and cross-analysed every quarter, you get to react to changes and spot trends as they occur ... before your rivals. You receive all the research you need for a whole year.

However fast the Internet moves, you move with it. All the changes and trends as they happen, providing reliable answers to your latest e-business marketing issues. The Web updates at the speed of light, so make sure your research does the same. Don't get caught thinking about the future.

TABLE OF CONTENTS

Table of Contents

• Issues in the Market
• Definition
• Research methodology
• Abbreviations
• Market in Brief
• Penetration suffers seasonal consolidation
• Most forms of usage down
• Time spent online changes little
• Digital device usage up
• Browsing for information undergoes a climb...
• ...as does browsing with the intent of buying...
• ...but purchasing doesn't fare so well
• Differentiation is key for social networking sites
• Mixed fortunes for products
  • Figure 1: Online product purchasing, by category, April 2005-July 2007
• Who's Innovating?
• Google developing Gphone
• IBM predicts technology to ease travel
• Nokia to jump on music download bandwagon?
• Amazon rivals eBay's PayPal
• Sky streams live Premiership goals
• Yahoo to optimise m-commerce sites
• Internet Penetration
• Quarterly highlights
• Penetration undergoes slight setback...
• ...but this is in line with seasonal patterns
• Just under 30 million now online
• Digital divide remains
• Pervasive use may mean penetration levels are higher
• Broadband is not deepening the divide
• Long-term growth penetration levels appear to have plateaued
  • Figure 2: British Internet penetration at home/work/place of study or elsewhere, 2002-07
• Cold comfort for digital divide
• Concern for government
• Long-term growth rate recovers slightly
  • Figure 3: Growth rates, British Internet penetration at home/work/place of study or elsewhere, 2002-07
• Detailed consumer demographics
  • Figure 4: British Internet penetration at home/work/place of study or elsewhere, by gender, socio-economic group, age, region and working status, 2001-07
  • Figure 5: British Internet usage profile, by gender, socio-economic group, age and working status, July 2007
• Internet Usage Experiences
• Quarterly highlights
• Usage levels down
• Email leads the way
• The Internet saves money
• Technology opens up possibilities
  • Figure 6: Types of activity undertaken on the Internet in the last three months, July 2003-July 2007
• Socio-economic profile for downloading music going through a reversal
  • Figure 7: Usage of Internet to download music, by socio-economic group, August 2005-July 2007
• Social networking sites attracting the young
  • Figure 8: Usage of Internet to visit message boards/community websites, by age, July 2005-July 2007
• Old getting used to paying household bills online
  • Figure 9: Usage of Internet to pay household bills, by age, July 2003-July 2007
• Those in work most interested in price-comparison sites
  • Figure 10: Usage of Internet to visit price-comparison sites, by working status, April 2005-July 2007
• Detailed consumer demographics
  • Figure 11: Types of activity undertaken on the Internet in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
  • Figure 12: Types of activity undertaken on the Internet in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
  • Figure 13: Types of activity undertaken on the Internet in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
  • Figure 14: Types of activity undertaken on the Internet in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
• Brand Elements
• Brand Map
  • Figure 15: Attitudes to and usage of social networking site brands, August 2007
• Bebo
  • Figure 16: Key attitudes towards the Bebo brand, August 2007
• Brand qualities -- struggling to differentiate itself
• Bebo needs to be more than a 'me too' offering
• MySpace
  • Figure 17: Key attitudes towards the MySpace brand, August 2007
• Brand qualities -- cool, innovative, welcoming and inspiring
• Where now?
• Facebook
• The darling but for how long?
  • Figure 18: Key attitudes towards the Facebook brand, August 2007
• Facebook going down the open road
• Windows Live Spaces
  • Figure 19: Key attitudes towards the Windows Live Spaces brand, August 2007
• Brand qualities -- Mr Average in disguise
• Wanted; serious branding
• Friends Reunited UK
  • Figure 20: Key attitudes towards the Friends Reunited uk brand, August 2007
• Brand qualities -- the original, safe but uninspiring
• The trusted, father figure of the scene
• Usage of brand
  • Figure 21: Consumer usage of various social networking brands, August 2007
  • Figure 22: Consideration of various social networking site brands, August 2007
• Brand Qualities
• Friends Reunited is most secure
  • Figure 23: image of various social networking brands, August 2007
• Attitudes towards brands
• The 'also-rans' lack distinctiveness too
  • Figure 24: Consumer attitudes towards various social networking brands, August 2007
• Brand satisfaction and performance
• Facebook shows excellent satisfaction
  • Figure 25: Customer ratings of social networking brands, May 2007
• Brand commitment
• Half of Tagged users are unlikely to use it again
  • Figure 26: Customer commitment to social networking brands, August 2007
• Round-up
• Frequency of Usage
• Quarterly highlights
• Time spent online changes little
• Digital divide appears between the genders but not by socio-economic status
• Average hours online per week holds steady
  • Figure 27: Average hours per week spent using the Internet during leisure time in the last three months, July 2007
• Digital divide manifests itself in time spent online by gender...
  • Figure 28: Average hours per week spent using the Internet during leisure time, by gender, July 2007
• ...but not so obviously by socio-economic status
  • Figure 29: Average hours per week spent using the Internet during leisure time, by socio-economic group, July 2007
• Digital divide shown by amount of time spent online by age
  • Figure 30: Average hours per week spent using the Internet during leisure time, by age, July 2007
• Detailed consumer demographics
  • Figure 31: Average hours per week spent using the Internet during leisure time, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
• Technology Usage
• Quarterly highlights
• Digital device usage up
• Portable music players and digital radio display early adopter profiles -- still
• Digital device usage
  • Figure 32: Digital device usage, July 2007
• Portable music players show classic profile
  • Figure 33: Profile of usage of portable digital music player, by gender, age and socio-economic group, July 2007
• Digital radio
  • Figure 34: Profile of usage of digital radio, by gender, age, socio-economic group and technology usage, July 2007
• Interactive TV services
  • Figure 35: Profile of interactive services on digital TV usage, by gender, age and socio-economic group, July 2007
• Wi-Fi shows clear correlation with socio-economic group
  • Figure 36: Profile of Wi-Fi usage, by gender, age and socio-economic group, July 2007
• PVRs popular amongst the old
  • Figure 37: Profile of personal video recorder usage, by gender, age and socio-economic group, July 2007
• Detailed consumer demographics
  • Figure 38: Technology usage of digital devices, by gender, age, socio-economic group, region, working status and technology usage, July 2007
  • Figure 39: Technology usage of digital devices, by gender, age, socio-economic group, region, working status and technology usage, July 2007
  • Figure 40: Technology usage of digital devices, by gender, age, socio-economic group, region, working status and technology usage, July 2007
• Browsing the Internet for Information Purposes
• Quarterly highlights
• Overall trend is reversed
• Travel declines but remains top
• Weather proves very popular
• Background
• Why should businesses go online?
• The purchasing cycle
• Technical developments
  • Figure 41: Websites browsed for information purposes in the last three months, November 2002-July 2007
• Holidays by household income
  • Figure 42: Holiday websites browsed for information purposes in the last three months, by household income, October 2003-July 2007
• Weather age
  • Figure 43: Weather websites browsed for information purposes in the last three months, by age, November 2002-July 2007
• Those not working appear to do so by choice
  • Figure 44: Jobs websites browsed for information purposes in the last three months, by working status, November 2002-July 2007
• Clothing by gender and children
  • Figure 45: Clothing websites browsed for information purposes in the last three months, by gender and presence of children in household, November 2002-July 2007
• Detailed consumer demographics
  • Figure 46: Websites browsed for information purposes in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
  • Figure 47: Websites browsed for information purposes in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
  • Figure 48: Websites browsed for information purposes in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
  • Figure 49: Websites browsed for information purposes in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
• Browsing with the Intention of Buying
• Quarterly highlights
• Since 2002 21 categories have risen, five have fallen and six have not changed
  • Figure 50: Websites browsed for information purposes with a view to possibly buying in the last three months, November 2002-July 2007
• Travel important for the old
  • Figure 51: Profile of travel websites browsed with the intention of buying in the last three months, by age, November 2002-July 2007
• DEs very keen to browse with the intention of buying clothes
  • Figure 52: Profile of clothing websites browsed with the intention of buying in the last three months, by socio-economic status, November 2002-July 2007
• Youth have lead in music cut
  • Figure 53: Profile of music websites browsed with the intention of buying in the last three months, by age, November 2002-July 2007
• Online banking appeal growing with older generations
  • Figure 54: Profile of banking websites browsed with the intention of buying in the last three months, by age, November 2002-July 2007
• Detailed consumer demographics
  • Figure 55: Websites browsed with the intention of buying in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
  • Figure 56: Websites browsed with the intention of buying in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
  • Figure 57: Websites browsed with the intention of buying in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
  • Figure 58: Websites browsed with the intention of buying in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
• Actual Purchasing on the Internet
• Quarterly highlights
  • Figure 59: Websites actually purchased from in the last three months, November 2002-July 2007
• Purchasing recovers as penetration bounces back
  • Figure 60: Internet penetration and purchasing behaviour in the last three months, November 2002-July 2007
• Media products best at converting intentions to purchases
  • Figure 61: Websites actually purchased from in the last three months, July 2007
• Travel sites improve conversion of browsers to buyers
  • Figure 62: Consumer use of travel websites in the last three months, November 2002-July 2007
• Entertainment sites slip back in converting browsers
  • Figure 63: Consumer use of entertainment websites in the last three months, November 2002-July 2007
• Middle-aged show greatest appetite for books
  • Figure 64: Actual purchasing from books websites in the last three months, by age, April 2005-July 2007
• Amazon, eBay and Tesco most popular sites
  • Figure 65: Named websites actually purchased from in the last three months, July 2007
• Amazon appeals to ABs, eBay to C2DEs
  • Figure 66: Main named websites purchased from, by gender and socio-economic group, July 2007
• Detailed consumer demographics
  • Figure 67: Websites actually purchased from in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
  • Figure 68: Websites actually purchased from in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
  • Figure 69: Websites actually purchased from in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
  • Figure 70: Named websites actually purchased from in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, July 2007
• Trends in Online Product Purchasing
• Quarterly highlights
• Average expenditure on entertainment and clothing up...
• ...but books, music and computers down
• Travel and auctions up
• Groceries and financial services down
  • Figure 71: Trends in average spend per online buyer in the previous three months, 2002-July 2007
  • Figure 72: Trends in average spend per online buyer in the previous three months, 2002-July 2007
  • Figure 73: Trends in average spend per online buyer in the previous three months, 2002-July 2007
  • Figure 74: Trends in average spend per online buyer in the previous three months, all categories, 2002-07
• Internet User Types
• Types of Internet user
  • Figure 75: Different Internet user types, by gender, age and socio-economic group, July 2007
  • Figure 76: Propensity to intend to buy and bought, July 2007
  • Figure 77: Propensity to browse and bought, July 2007
  • Figure 78: Intending to buy and purchasing behaviour, July 2007
  • Figure 79: Browsing and purchasing behaviour, July 2007
  • Figure 80: Cluster groups for online intentional buyers and browse buyers, July 2007
• The Converted (17% of Internet users)
• Sucked In (12% of Internet users)
• Purpose led (50% of Internet users)
• Peripherals (22% of Internet users)
  • Figure 81: Internet types, by number of product categories browsed in, July 2007
  • Figure 82: Internet types, by number of product categories intended to buy in, July 2007
  • Figure 83: Internet types, by number of product categories bought in, July 2007
  • Figure 84: Different Internet user types, by gender, age and socio-economic group, July 2007
• Amount Spent on Online Book Purchasing
• Highlights
  • Figure 85: Amount spent on books purchased over the Internet in the last three months, November 2002-July 2007
• Recent online book developments:
• Potter magic only breaks even at Amazon
• Online book club launched by former teacher
• Book swap online
• Social networking for books
• Microsoft adds to book-search tools
• Tesco plots book launches
• Amount Spent on Online CDs/Tapes/DVDs/Videos Purchasing
• Highlights
  • Figure 86: Amount spent on CDs/tapes/DVDs/videos purchased over the Internet in the last three months, November 2002-July 2007
• Recent online music and film developments
• gBox adds to iTunes' challengers
• Qtrax plans for online advertisers to face the music
• EMI to sell protection-free songs
• Amounts Spent on Online Clothing and Footwear Purchasing
• Highlights
  • Figure 87: Amount spent on clothing and footwear purchased over the Internet in the last three months, November 2002-July 2007
• Recent online clothing and footwear developments
• Bhs to sell clothing online...
• ...as Amazon gets into footwear
• Asos thrives
• Asda takes George range online
• Amount Spent on Online Computer Hardware and Software Purchasing
• Highlights
  • Figure 88: Amount spent on computer hardware and software purchased over the Internet in the last three months, November 2002-July 2007
• Recent online computer software and hardware developments
• Apple after PCs
• Dell switches from online-only policy
• Amount Spent on Online Entertainment Ticket Purchasing
• Highlights
  • Figure 89: Amount spent on entertainment tickets purchased over the Internet in the last three months, November 2002-July 2007
• Recent online entertainment ticket developments
• Movietickets.com sales increase 31%
• Tickex offers advantages over Google...
• ...and claims more online tickets than anyone else
• Amount Spent on Online Travel Purchasing
• Highlights
  • Figure 90: Amount spent on flights/holidays purchased over the Internet in the last three months, November 2002-July 2007
• Recent online travel developments
• Online booking 'is way ahead'
• Brits prefer to trust 'virtual' strangers
• Amount Spent on Online Grocery Purchasing
• Highlights
  • Figure 91: Amount spent on grocery shopping purchased over the Internet in the last three months, November 2002-July 2007
• Recent online grocery developments
• Waitrose goes Scottish
• Sainsbury's feels benefit of online boom
• Ocado moves into non-food
• Waitrose to launch foodies social networking site
• Amount Spent on Online Auction Site Purchasing
• Highlights
  • Figure 92: Amount spent on products from an auction site purchased over the Internet in the last three months, November 2002-July 2007
• Recent online auction site developments
• eBay launches five-minute 'speed shopping'
• Samedaybooks agrees to buy Auction Assist
• Ad misplacement exposes flaws in buying processes
• Web auction site launches rival to eBay
• Amount Spent on Online Financial Services Purchases
• Highlights
  • Figure 93: Amount spent on financial services-related products purchased over the Internet in the last three months, November 2002-July 2007
• Recent developments in online financial services
• Alliance & Leicester banking on self-service
• 20,000 close First Direct accounts
• Barclays sees future in widgets
• Internet savings war is in the air
• First phase of Barclays' UK m-bank
• HSBC online banking up 55%