Low Prices on PCs = Less Usage

Although PC ownership has increased significantly, usage of home computers has dropped, reports a survey by Arbitron NewMedia. The survey found that PC ownership has grown from 29 percent in 1995 to 54 percent in 1999, yet the percentage of people that say they regularly use their machine has fallen from 90 percent to 53 percent in the same time period. Similarly, the number of PC owners with subscriptions to ISPs has risen four-fold from 1995 to 1999, while only two-thirds of these subscribers actually use the Internet.

One factor in these findings is the survey's exclusion of children under the age of 16, who are often the most active users. Another factor is a change in buyers' motives: previously, consumers bought PCs because they were interested in experimenting with the emerging technology, while now, consumers buy computers because the prices are low and they are easy to obtain. (Wall Street Journal 06/21/99)

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Even with reports of Web advertising expenditures doubling in the coming year, the medium still lags far behind spending on direct mail, television, magazines, newspapers and other traditional media, according to a report released by eMarketer.

The eAdvertising Report indicates thatadvertising dollars spent in television ($48 billion), newspapers ($45 billion) and direct mail ($39 billion) during 1998 towered over the $1.5 billion spent on the Web during that same period.

"For 1999, the eAdvertising Report forecasts web ad spending of $2.6 billion, a small fraction of 1.2% of total spending, estimated at $217 billion," said eMarketer statsmaster Geoffrey Ramsey, in a statement. "Even non-network cable advertising, which totaled $2.4 billion, edged out the Web in ad dollars spent during 1998."

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