Nielsen//NetRatings July Global Internet Index Finds E-Commerce Web Traffic Still Strong

In Just One Month, Number of Active Internet Users Increases 4.5% Globally, to 122 million

Data Shows That Company Websites Have Six Minutes to Make User Impression

STAMFORD, CT – August 31, 2000 – Nielsen//NetRatings, the fastest growing Internet audience measurement service in the world, today released results from its July global Internet index, showing that 42 percent of home Internet surfers visited shopping sites last month.

“Despite wide-spread investor concerns about the viability of e-Commerce, shopping sites are pulling in enormous traffic, showing the global appeal and swelling potential of shopping on the on the Internet,” said David Day, director of analytics, ACNielsen eRatings.com.

Nielsen//NetRatings is a service provided by ACNielsen eRatings.com (a venture between ACNielsen Corp., NYSE: ART and NetRatings, Inc., Nasdaq: NTRT), Nielsen Media Research and NetRatings, Inc.

“Shopping sites attracted nearly 52 million visitors in July, three million more than in June, accounting for 42% of the active Internet audience last month,” Day said.  “Content-rich e-Commerce sites like Amazon and eBay are leading this trend by attracting large global audiences and generating large numbers of page views.  One in 10 people online in July went to eBay, reflecting its global significance.”

Day also noted that outside the US, Amazon attracted a majority male audience, most notably in the UK, where twice as many males visited Amazon as women.  However, in the US, women surfers outnumbered male surfers on Amazon, accounting for 54% of Amazon’s traffic, as opposed to the 46% of traffic from male surfers.  In each country, Amazon measured its highest proportion of visitors from the 25-49-year-old age bracket.

“Like many global e-Commerce sites, Amazon is most mature in the US,” Day said.  “While it has successfully garnered female shoppers in the US, its more recent expansion into other product areas, such as software, PC and video games, auctions and DVD and video products, has clearly attracted male shoppers outside the US, who are most likely attracted by the variety of products available and the ease of shopping the site.”

July results also showed Yahoo! with a leading global position, attracting an audience of 66 million individuals, followed by AOL, with an audience of 62 million and MSN, with an audience of 50 million. (See Table 1).

 

Nielsen//NetRatings Global Internet Index
Table 1.  Top 25 Web Sites by Property, At-Home, July 2000


Rank By Unique Audience Property Unique Audience Reach %(Active) Time Per Person % Page Views From Browser Cache
1 Yahoo!       65,907,687 54% 1:03:17 22
2 AOL Websites       62,349,504 51% 0:29:52 21
3 MSN       50,042,747 41% 0:46:02 13
4 Microsoft       42,793,223 35% 0:11:31 15
5 Lycos       32,584,584 27% 0:17:38 12
6 Excite@Home       28,357,289 23% 0:24:27 24
7 GO Network       23,132,996 19% 0:21:24 26
8 About.com       17,217,778 14% 0:09:03 23
9 AltaVista       16,803,118 14% 0:14:03 24
10 Time Warner       15,975,939 13% 0:13:24 22
11 NBC Internet       15,465,264 13% 0:12:31 25
12 eUniverse Network       14,228,590 12% 0:13:52 19
14 Amazon       13,905,421 11% 0:12:41 22
15 Real Networks       11,660,108 10% 0:04:59 18
16 eBay       11,531,267 9% 1:43:00 37
17 LookSmart       11,497,680 9% 0:09:53 21
18 Ask Jeeves       10,613,115 9% 0:10:19 29
19 Macromedia         9,993,535 8% 0:11:35 22
20 The Go2Net Network         9,759,125 8% 0:10:07 29
21 CNET Networks         9,633,690 8% 0:09:01 29
22 Fortune City         9,116,302 7% 0:04:28 24
23 American Greetings         8,706,038 7% 0:10:23 17
24 ZDNet         8,635,179 7% 0:10:46 22
25 Sony Online         8,541,575 7% 0:11:29 28
Source:  Nielsen//NetRatings, July 2000

In addition to shopping sites, the categories of portals and search engines and telecom and Internet services ranked high in unique audience and percent of the active audience reached in July.  Day also pointed to the ranking for corporate information sites, such as company websites, as instructive for marketers looking to establish a presence on the Internet. (See Table 2).

“Though corporate information sites ranked, as would be expected, below such audience-grabbing categories as news and information and entertainment, a fair share of the global audience – 23% of the home surfers active in July – are visiting those sites and spending an average of six minutes there,” he said.  “For companies that have corporate websites, or for companies looking to create a website as a marketing tool, this tells us that many consumers, job-seekers, investors and possibly even competitors are analyzing those sites and using the Internet as a means to get a further impression of a company.  Corporations have six minutes to make the impression they want to make on those important audiences, so this medium should be taken very seriously.” 

 

Nielsen//NetRatings Global Internet Index
Table 2.  Activity by Category, At-Home, July 2000
Ranking of Internet usage by category across the US, the UK, Australia, New Zealand, Canada, Japan, Ireland and Singapore

Category

Unique Audience

Reach %(Active)
Time per Person
Search Engines/Portals

107,543,846

88.19
0:08:01
Telecom/Internet Services

  78,516,293

64.39
0:06:19
Entertainment

  65,880,257

54.02
0:10:52
Personal/Business Elec. & S/W

           56,112,827

46.01
0:09:28
News & Information

  55,739,404

45.71
0:09:08
Shopping

  51,610,604

42.32
0:08:56
Online Communities

  50,516,785

41.43
0:12:17
Directories/Classifieds

  38,362,416

31.46
0:08:32
Finance/Insurance/Investment

  32,003,267

26.24
0:14:34
Family & Lifestyles

  31,307,305

25.67
0:09:36
Corporate Information

  28,563,471

23.42
0:05:59
Travel

  27,263,540

22.36
0:07:09
Adult

       26,515,427

21.74
0:03:10
Sweepstakes/Coupons

  25,690,613

21.07
0:08:02
Education

  22,268,578

18.26
0:06:50
Government/Non-Profit

  21,586,344

17.70
0:07:46
Sports

  16,190,938

13.28
0:11:21
Automotive

  13,492,059

11.06
0:08:31
Source:  Nielsen//NetRatings, July 2000

In July, the online universe – the number of people with Internet access -- grew 4.5% over June figures, rising to 216 million people in July from 207 million people across Australia, Canada, Ireland, Japan, New Zealand, Singapore, the UK and the US in June.  Similarly, the number of people active on the Internet in July increased 4.5% to 122 million, which equates to 56% of those with Internet access.  (See Table 3).

Nielsen//NetRatings Global Internet Index
Table 3.  Average Usage, At-Home, July 2000
Ranking of average Internet usage across the US, the UK, Australia, New Zealand, Canada, Japan, Ireland and Singapore

 

July 2000

June 2000

% Change

Number of Sessions per Month

17

17

0.00

Number of Unique Sites Visited

11

11

0.00

Page Views per Month

673

637

5.60

Page Views per Surfing Session

38

38

0.00

Time Spent per Month

8:57:47

8:30:33

5.33

Time Spent During Surfing Session

0:30:56

0:30:14

2.27

Duration of a Page viewed

0:00:49

0:00:49

0.00

Average Click Rate for Top Banners

0.51

0.52

-1.33

Active Internet Universe

       121,945,500

       116,734,979

4.46

Current Internet Universe Estimate

       216,442,238

       207,211,099

4.45

Source:  Nielsen//NetRatings, July 2000

About Nielsen//NetRatings
Through strategic partnerships between NetRatings, Nielsen Media Research and ACNielsen, the Nielsen//NetRatings audience measurement service collects real-time data from more than 165,000 Internet users around the world.  The U.S. panel sample currently consists of 57,000 at-home users and 8,000 at-work users.  International panels are under development with over 100,000 at-home users currently being measured.  These panels collectively represent the largest media research sample of Internet users in the industry.  

Nielsen//NetRatings uses unique technology capable of measuring both Internet use and advertising to provide the most timely, accurate and comprehensive Internet usage data and advertising information in the global marketplace.  Nielsen//NetRatings tracks the entire spectrum of Internet user behavior, leveraging proprietary data-collection technology from NetRatings, Nielsen Media Research's 50 years of expertise in research and audience measurement, and ACNielsen’s international leadership in offering market research information covering more than 100 countries.

About ACNielsen eRatings.com

ACNielsen eRatings.com is a venture between ACNielsen (NYSE: ART) and NetRatings Inc. (Nasdaq: NTRT).  ACNielsen is the world's leading market research firm, offering measurement and analysis of marketplace dynamics, consumer attitudes and behavior, and new and traditional media in more than 100 countries, and NetRatings is the leading provider of Internet audience measurement technology and analysis.  Through the Nielsen//NetRatings service, ACNielsen eRatings.com is creating the first global service for tracking audiences, advertising and user activity on the Internet in more than 30 countries worldwide.  

About NetRatings, Inc.

NetRatings (Nasdaq: NTRT) provides Internet audience measurement and analysis services that enable its customers to make informed decisions regarding their Internet strategies.  NetRatings delivers accurate and timely information collected from a representative sample of Internet users and augments it with detailed, flexible reporting and in-depth analyses. 

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Risks and uncertainties that may affect the operations, performance, development and results of the venture's business include: (i) the likely incurrence of significant losses by the venture while its business is being developed and the difficulty of forecasting future revenues and costs;(ii) the risk that a competing company's Internet audience measurement service will become the accepted standard for Internet audience measurement; (iii) the ability to successfully develop, promote and maintain the Nielsen//NetRatings brand; (iv) the effects on demand for the venture's products and services if the use of the Internet does not continue to grow; (v) the effect that governmental regulation of the Internet could have on the growth of the Internet; (vi) the ability to successfully respond to rapid technological change, including the uncertainties surrounding the emergence of new Internet access devices; (vii) the risks associated with international development of the Internet ratings service, including effecting necessary changes to the existing software to accommodate language and other differences in the jurisdictions in which the venture will operate and the effect of laws and regulatory requirements in such jurisdictions; (viii) the risks involved in collecting personal information from panelists, including the effect of privacy laws in the jurisdictions in which the venture will operate; (ix) the impact of foreign exchange rate fluctuations since so much of the venture's earnings will be generated abroad; (x) the risk of technical difficulties or service interruptions and the lack of a backup facility in the event of a systems failure at NetRatings' computer operations center in San Jose, California; and (xi) the uncertainties of litigation, including the IRI lawsuit against ACNielsen; as well as other risks and uncertainties that may be detailed from time to time in the Securities and Exchange Commission filings of the venture partners.
Developments in any of the areas referred to above could cause the results of the venture to differ from projected results.  ACNielsen and NetRatings caution that the foregoing list of important factors is not exclusive and they do not undertake to update any forward-looking statement that may be made from time to time regarding the venture.


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