1. Trends in Internet Adoption and Use: Comparing Minority Groups John B. Horrigan, Ph.D. Presentation for OTX Research May 11, 2004

2. Presentation Overview General trends in Internet Adoption Focus on “hard to reach audiences”, i.e., Hispanics, African-Americans Opportunities in Hispanic, African American segments

3. Big picture – as of February 2004 128 million American adults – or 64% – are Internet users 19 million teens (age 12 to 17) are Internet users, or 77%. About 70 million American adults online on the average day. 48 million American adults have high-speed connections at home.

4. Percent Adult Americans Online

5. Trends in Internet use – by race

6. Internet penetration by race – End of 2003 (% Americans age 18 and over)

7. Internet penetration by race & age – End of 2003 (% Americans age 30 and under)

8. Internet penetration by race & education – End of 2003 (% Americans over age 18 and college graduates)

9. Internet penetration – age groups

10. Latest broadband numbers February 2004 24% of adult Americans have broadband at home That’s 39% of adult Internet users That’s a 60% increase in past year DSL is big winner – More than half of growth in past year due to DSL subscriptions

11. Broadband at home, 2000-2004

12. Broadband at home -- subgroups

13. Broadband at home – by race

14. Profile of Online & Offline Population February 2004 Online demographics – Whites: 75% – African American: 8% – Hispanics: 11% – Other: 6% Average Age (Internet users): – Whites: 41.9 – African American: 36.6 – Hispanics: 33.8 Offline demographics – Whites: 69% – African American: 15% – Hispanics: 11% – Other: 5% Average Age (Non- Internet users): – Whites: 58.3 – African American: 50.9 – Hispanics: 41.1

15. Rhythms of use – by race WhitesAfrican- American Hispanics Online yesterday59%35%41% Go online from home 84%81%76% Log on several times per day 29%14%18% Number of years online 6.15.75.5 # of online activities – ever 7.5 (out of 18) 7.3 (out of 18) 7.0 (out of 18) # of online activities – daily 3.4 (out of 18) 2.6 (out of 18) 3.4 (out of 18)

16. What people do online – % of Internet users who have ever done following activities Email – 91% Search engine – 88% Map/directions – 84% Info query – 80% Research product before purchase – 78% News – 70% Surf for fun – 67% Travel info – 66% Health medical – 66% Buy product – 65% Travel reservations – 57% Job-related research – 51% Political news – 46% Download (games, videos, pictures) – 42% Bank online – 34% Religious/spiritual info – 29% Download music – 18%

17. What people do online – % of Internet users who, on typical day, do following activities Email – 48% Search engine – 31% Get news – 27% Surf for fun – 23% Hobby – 21% Info search – 21% Research product before purchase – 15% Get financial info – 12% Audio/video clip – 11% Play a game – 9% Bank online – 9% Government Web site – 9% Look up phone # – 7% Online auction – 3% Read a blog – 3% Buy a product – 3% Search for info about a person you might meet – 3% Download video file – 2%

18. Playing games online

19. Do search in answer to a question

20. Get sports scores online

21. Get religious/spiritual information

22. Buy a product online

23. Research a product online

24. Participate in online auction

25. Do Banking online

26. Download music

27. One hand … other hand Minority groups tend to lag whites in Internet use by various measures …penetration, intensity of use, number of years online. Tech elite – measured not just by Net use – tend to be whites. But minorities show willingness to spend on information goods and services.

28. Cell phone use – by race October 2002

29. Cable TV penetration – by race October 2002

30. Satellite dish penetration – by race October 2002

31. Premium TV Channels – by race October 2002

32. DVD players at home – by race October 2002

33. Average monthly spending, selected information goods (phone, cell phone, cable TV, premium channels, ISP, online content) – October 2002

34. Summing up African-Americans and, to lesser extent, Hispanics lag whites in Internet use – by several measures – Overall penetration – Broadband use – Frequency of use African-Americans use the Internet to get information and for entertainment. – Lag on online transactions/ecommerce Minority groups show willingness to spend money on information goods & service, but these dollars go to old media

35. Reach me … John B. Horrigan – jhorrigan@pewinternet.orghorrigan@pewinternet.org – 202-296-0019 Pew Internet & American Life Project 1100 Connecticut Ave, NW, Suite 710 Washington, DC 20036