Psst, Don't Tell Anyone, But the Internet Is Over

David Card | December 16, 2005, 02:18 PM

Well, not really. But the reach of core Internet functions is down. People seem to be settling on what they use the Internet for, and doing fewer things overall. Time spent online isn’t shrinking, nor, in most cases, is the absolute number of users of any given function going down. It’s just that the breadth of activities any one user engages in is shrinking.

For example, the percentage of the online population that says they regularly use IM has shrunk nine or ten points over the last five years. IM reach among teens or young adults (18-24) shows the same patterns. About 11% of teens say they’re using IM less because they have a mobile phone. E-mail’s down seven points or so, across the board. Search is essentially flat, and some applications that weren’t viable a few years ago, like online banking, are up strongly.

Our analysis is survey-based because the traffic analysis firms can’t do long-term trending. But we examined the survey data closely. These patterns are consistent across demographics (age, gender, income) and online tenure, and it doesn’t look like cohorts are having an effect (e.g., the group that came online pre- versus post-bubble). What does this mean for online media? It’s more critical than ever to know your audience. Deeply. Plan your programming and marketing accordingly.

I’m out for the rest of December, so clients or reporters should look to talk to Andrew Peach or Corina Matiesanu about these findings.