The Online Population is Skyrocketing--Nationally and Globally
According to Research and Markets and eMarketer.com, the U.S. Internet population will grow to nearly 200 million users by the end of 2009! eMarketer also projects that 221 million people in the U.S. will be using the Web by 2013!
A Pew Internet survey released in January 2009 found that 74% of adults in the U.S. now use the Internet, and the demographic profile of the online population has evolved to look more like the whole U.S. population, spanning a diverse range of ages, ethnicities and income levels.
Jupiter Research found that by 2012, one quarter of the world's population will access the Internet regularly. The increase in emerging global markets will grow at double-digit rates, boosting the growth of the global online population.
ComScore recently reported that the global Internet population has reached the 1 billion mark! And according to ComScore's Magid Abraham, the next billion is right around the corner: "Surpassing one billion global users is a significant landmark in the history of the Internet ... a monument to the increasingly global community in which we live. The second billion will be online before we know it, and the third billion will arrive even faster than that."
The Economy is Driving Consumers to the Web, and they're Looking for You!
PriceGrabber.com's Consumer Behavior Report found that one in four consumers is spending more time online than last year "because of the tough economy." And they're spending a lot of that time researching businesses and searching for information about products. In fact, Forrester Research reports that over a quarter of all retail sales are either directly or indirectly influenced by the Internet. The firm also found that 75% of consumers research products on Web sites before making online purchases. They forecast that by 2013, 40% of total retail sales will be initiated on the Web!
E-commerce remains Strong and Steady, Despite the Downturn
According to Jupiter Research's U.S. Online Retail Forecast for 2007-2012, e-commerce sales reached $128 billion in 2008, and that total is expected to climb to $148 billion this year! A study by The Conference Board and TNS Retail Forward found that 5% of online households plan to spend more than $500 at e-commerce Web sites this year ... that's a four percent increase over 2008!
Forrester Research also revealed that 72% of companies surveyed said economic conditions have not impacted their e-business technology plans. In fact, over half of the companies said they planned to increase their e-business technology budgets. Forrester analyst Brian Walker said businesses will continue to make the investment in e-commerce because they understand the power of the online channel.
A sweeping number of consumers are taking their holiday shopping online. ATG and The E-Tailing Group predicted that 49% of U.S. holiday gift shoppers would turn to the Web in 2008, marking the first year ever that Web shopping would surpass in-store shopping.
Research released by ComScore and MasterCard in early 2009 show that ATG's prediction about a jump in holiday online spending was accurate! ComScore's Gian Fulgoni reported that, "... e-commerce trends outperformed overall consumer spending in several product categories, which is to say that e-commerce continued to capture an increasing share of consumers' wallet."
Shop.org and Forrester Research report that in the first quarter of 2009, U.S. online retail sales rose an average of 11%! While most brick-and-mortar establishments without a Web site were reporting losses, 58% of the surveyed retailers with an online presence reported that their Web sales increased during the first quarter!
Your Competition is Making the Investment
Borrell Associates reports that there are 14.6 million small and medium-sized businesses in America, and these businesses aren't spending their advertising budget on the Yellow Pages or direct mail ads anymore. They're shifting their budget to the Web, including the promotion of their own Web sites, "where they are now investing 11 percent of their advertising, up from less than 4 percent three years ago."
Experts Agree: Every Business Needs a Web Presence
Web entrepreneur Tim W. Knox writes, "Yes, if you have a business, you should have a Web site. No question. Without a doubt ... I don't care if you're a one-man show or a 10,000-employee corporate giant, if you don't have a Web site, you're losing business to other companies that do. The point to be made here is that you should at the very least have a presence on the Web so that customers, potential employees, business partners and perhaps even investors can quickly and easily find out more about your business and the products or services you have to offer."
Donna L. Hoffman and Thomas P. Novak, editors of Beyond the Basics: Research-Based Rules for Internet Retailing Advantage, point out that "A scrutinous local shopper searching for information online presents smaller retailers with an opportunity to win sales from larger stores. ... the Internet ... currently creates a distinct disadvantage for local businesses that lack a Web presence. Already battling the ever-expanding reach of national and regional giants offline, these mom-and-pop stores now face an Internet-based proliferation of product and service alternatives, informational content and purchase event opportunities."
Small business blogger Ingrid Cliff writes, "... how people buy has changed in recent years. People research and increasingly shop online. In my opinion, a Web site is just as essential as a business card these days for small businesses."
According to SmartCompany's Web expert Craig Reardon, "I have some great news for retailers, and it's this: The Internet can multiply your sales with only a modest investment. You can expand the size of your market over and over again and not have to set foot from your business. The message for retailers is now crystal clear: If you don't look after your customers online, someone else will."
