IT Facts for May, 2006

Online video ads to generate $300 mln

Advertising linked to online video is estimated to be worth about $300 mln but this is expected to grow to $1 bln within the next few years, according to Merrill Lynch.

US Internet users profile

Harris Interactive posted its findings on US online population.

US online population profile

  Total US
population
Online US
population

Age

18 ? 29 24% 21%
30 ? 39 22 18
40 ? 49 22 20
50+ 30 37
50 ? 64 22 22
65+ 8 16
Sex
Men 49 48
Women 51 52

Race

White 76 75
Black 10 11
Hispanic 13 13

Education

High school or less 39 47
Some college 30 27
College graduate+ 30 25

Household income

Less than $25,000 14 19
$25,000-$50,000 23 24
$50,000 and over 52 44
Source: Harris Interactive

In 12 months Google searches grew 34%, Yahoo! searches up 27%

In April 2006 Google Search grew 34% YTY, followed by Yahoo! Search with 27% growth. MSN Search rounded out the top three, growing 10% YTY.

Search growth in April 2006
  Searches, 000 Growth
Engine Apr 2005 Apr 2006 YTY
Google 1,986,795 2,655,649 34%
Yahoo! 919,894 1,169,109 27%
MSN 515,926 570,080 10%
Source: Nielsen//NetRatings

Distribution of EDGE, UMTS and HSDPA worldwide

EDGE is commercially offered by 133 operators across 80 countries, including 31 countries in Latin America and the Caribbean. There are 81 additional EDGE networks planned or in deployment. Currently, there are 105 UMTS networks in service across 50 countries, with 59 more planned or in deployment. HSDPA is commercial on 22 networks and 73 additional operators have networks planned, in deployment, or in trial.

$3.3 bln spent on ads to Hispanics in 2005

Advertisers spent more than $3.3 bln to market products to US Hispanics in 2005, a 6.8% increase from 2004. While traditionally Spanish-language advertising was used to reach Hispanics, new data indicate second- and third-generation Hispanics tend to favor English. As a result, ad spending growth in some sectors of the US Hispanic market is slowing as advertisers debate which Hispanic demographic to target.

Advertisers spent an estimated $3.3 bln to market their products and services to US Hispanics in 2005, a 6.8% increase from 2004. At the same time, the Hispanic population is growing at a faster rate than the overall US population. According to US Census estimates, the number of Hispanics reached 41.8 mln in 2005, an increase of 3% from the year before. The overall US population increased by less than 1% over the same period. As Hispanics simultaneously make progress in educational attainment, their purchasing power represents an increasingly larger proportion of the US total, reaching 8.9% in 2005.

36% of companies have no email or IM policies in place

According to Osterman Research, 36% of companies had no email or IM policies in place. 38% had email-only policies in place. 20% had email and IM policies in place and 6% had only IM policies in place.

Internet ads revenue reached $3.9 bln in Q1 2006

The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) announced that Internet advertising revenues reached a new record of $3.9 bln for Q1 2006. The quarter revenues represent a 38% increase over Q1 2005 at $2.8 bln and a 6% increase over Q4 2005 total at $3.6 bln.

Only 12% of fast-growing companies borrowed from the banks in Q1 2006

Only 12% of fast-growth companies completed new bank loans in Q1 2006, a step down from 13% in Q4 2005, and closer-yet to the historic low of 10% in the Q2 2002.

37% of bills are currently paid by check, 35% are paid online

More than 37% of bills are paid by check; 35% are paid online. The remaining 28% are paid with cash, debit cards or other payment methods. Given that trend, New York Times suggests Web payments could surpass checks over the 2006. In 2005, 46% of bills were paid by check, and 25% online.

$8.6 bln spent on mobile data apps in 2005

Consumers in 2005 paid $8.6 bln for data applications on their phones, up 86% from the year before, according to CTIA.

Traffic to flower and gift sites up 60% preceding Mothers Day

Online spending in the Flowers & Gifts category showed continued growth, peaking in the week prior to Mother’s Day at $195.8 mln in sales. That weekly total eclipsed the coinciding week in 2004 (week ending May 8, 2005) by nearly $28 mln and marking 16% YTY growth. Looking for last-minute Mother’s Day gifts, consumers flocked to sites in the Flowers, Gifts & Greetings category during Mother’s Day Week. Nearly 18 mln visited the category during the week, which amounted to 60% more traffic than the average of the previous 5 weeks. American Greetings and Hallmark, the most-trafficked sites in the category, saw double-digit gains over prior weeks. American Greetings jumped 15% to 3.3 mln visitors, while Hallmark drew slightly fewer visitors (3.2 mln) but showed a larger gain (32%).

However, flower retailers experienced the biggest jumps in visitation for Mother’s Day Week, with the top sites increasing their traffic by multiples. FTD.com saw the biggest gains and was the most visited site in the category, drawing 4.2 mln visitors during Mother’s Day Week, which marked a 504% increase over the average of the previous five weeks. ProFlowers.com jumped 327% to 2.5 mln visitors, while 1-800-FLOWERS.com rose 277% to 2.3 mln visitors.

Traffic to flowers, gifts and greetings
sites before and after Mother’s day
  Daily audience, 000  
  Apr 3 - May 7 May 8 - May 14 Change
AmericanGreetings 2,819 3,250 15%
Hallmark 2,431 3,215 32%
FTD.com 703 4,245 504%
ProFlowers.com 592 2,530 327%
1-800-FLOWERS 606 2,284 277%
RedEnvelope 372 669 80%
Total for Flowers,
Gifts & Greetings
11,117 17,807 60%
Source: comScore

Top search engines in April 2006: Google - 50%, Yahoo! - 22%, MSN - 11%

Google accounted for 50% of all searches conducted in April 2006, followed by Yahoo! and MSN, with 22 and 11%, respectively. Google gained 3% in market share, while Yahoo! remained flat and MSN dipped slightly.

Top search engines in April 2006

Engine Apr 2005 Apr 2006 Growth
Google 47% 50% +3
Yahoo! 22% 22% 0
MSN 12% 11% -1
Source: Nielsen//NetRatings

Server blade market revenues up 43.4% in Q1 2006

The server blade market showed continued growth in Q1 2006, with factory revenue gaining 43.4% YTY and shipments increasing by 29.5% YTY, according to IDC. Overall, bladed servers, including both x86 and RISC blades, accounted for $591 mln in Q1 2006, representing 5.0% of quarterly server market revenue. IBM maintained the #1 spot in the server blade market, with 40.1% market share, while HP maintained the #2 position with 35.6% share. Dell holds the #3 position with 11.1% share of factory blade revenues and growing nearly twice the rate for blades overall.

Fixed public network services up 3.1% in China in 2005

Fixed public network services revenue increased 3.1% in China in 2005. The compound annual growth rate for retail Internet and data services revenue will be 10.8% and 9.7%, respectively, through 2010, Gartner says.

PC usage and Internet usage in the United States 1995-2006

Harris Interactive charted the PC usage and Internet usage correlation among Americans.

US PC usage and online usage trends

  US adults PC users who
are online
  Use PC Are Online
Feb-Apr 2006 81% 77% 95%
Feb-Apr 2005 79 74 94
Jun- Aug 2004 78 73 93
Oct-Dec 2003 75 69 92
Nov-Dec 2002 74 67 92
Feb-Mar 2002 74 66 90
Sep-Oct 2001 73 64 88
Mar-Apr 2001 72 64 89
Oct-Nov 2000 74 63 85
Apr-May 2000 69 57 83
Dec 1999 69 56 81
Jun-Jul 1999 65 48 74
Jan-Feb 1999 63 41 65
Jan-Feb 1998 63 35 56
May-Jun 1997 61 30 49
Jun-Sep 1996 54 19 35
Sep-Nov 1995 50 9 18
Source: Harris Interactive

US Internet usage 1995-2006

Harris Interactive published historic findings on online Americans from 1995 to 2006.

Online Americans, 1995-2006

Timeframe Home Work Elsewhere Total, % Total, mln. Avg hours
per week
Feb-Apr 2006 70% 35% 22% 77% 172 9
Feb-Apr 2005 66 36 21 74 163 9
Jun-Aug 2004 65 34 17 73 156 8
Oct-Dec 2003 61 31 16 69 146 9
Nov-Dec 2002 57 28 18 67 140 7
Feb-Mar 2002 55 30 19 66 137 8
Sep-Oct 2001 52 28 19 64 127 7
Mar-Apr 2001 53 27 20 64 126 7
Oct-Nov 2000 49 29 17 63 121 7
Apr-May 2000 45 24 15 57 114 7
Dec 1999 46 N/A N/A 56 113 7
Jan-Feb 1998 22 22 N/A 35 70 N/A
May-Jun 1997 16 18 N/A 30 59 N/A
Jun-Sep 1996 16 16 N/A 19 33 N/A
Sep-Nov 1995 N/A N/A N/A 9 17.5 N/A
Source: Harris Interactive

April 2006 search engine market shares: Google - 43.1%, Yahoo! - 28%, MSN - 12.9%

In April 2006, Google gained in search market share for the 9th consecutive month and maintained its status as market leader with 43.1% of all US searches conducted on its sites. Yahoo! remained in second place with 28.0%, while MSN ranked third with 12.9%. Americans conducted 6.6 bln searches online in April, up 4% from last month. Google Sites led the pack with 2.9 bln search queries performed, followed by Yahoo Sites (1.9 bln), MSN-Microsoft (858 mln), Time-Warner Network (457 mln), and Ask Jeeves/Ask Network (384 mln). MySpace.com has been added to the search engine rankings for April 2006, coming in at 6th place with 43 mln search queries performed (0.6% share of the US search market). Google and Yahoo! continued their dominance among toolbar searches, combining for more than 95% of the market share in April. Google grabbed 48.0% of toolbar searches, while Yahoo! captured 47.6%.

Share of Online Searches by Engine

  Apr 2005 Mar 2006 Apr 2006 YTY growth
Google 36.5% 42.7% 43.1% 6.6
Yahoo! 30.7% 28.0% 28.0% -2.7
MSN+Microsoft 16.1% 13.2% 12.9% -3.2
Time Warner 9.0% 7.6% 6.9% -2.1
Ask Network 6.1% 5.9% 5.8% -0.3
MySpace.com N/A N/A 0.6% N/A
Total 100% 100% 100% N/A
Source: comScore

1% of Google searches lead to eBay

1% of Google’s outgoing traffic goes to eBay, and 2.7% of eBay’s outgoing traffic goes to Google, HitWise tells The New York Times.