Consumer Internet Barometer

Press Release

More Consumers Going Online, But Trust is a Major Concern
New Consumer Internet Barometer™ Tracks Who's Doing What on the Internet

October 16, 2002 - More Americans are going online now than at the end of last year, and more users are satisfied with their online experience, but trust remains a major concern, according to the Consumer Internet Barometer, a new quarterly measure of who's doing what on the Internet. The new survey goes beyond who's buying what online to include latest data on how consumers are using the Internet and how satisfied they are with their online activities.

The percentage of Americans going online at least monthly has edged up to nearly 61% today, compared to 59% at the end of last year. While satisfaction levels have risen during the last nine months, trust levels have not. Many consumers still don't fully trust that their personal information is secure.

The Consumer Internet Barometer is produced jointly by TNS NFO, Forrester Research and The Conference Board. It tracks consumers’ evolving usage, trust and satisfaction with the Internet over time and identifies emerging trends.

"One striking exception to this downward trend in trust is online financial transactions," says Lynn Franco, Director of the Consumer Research Center for The Conference Board. "More than 31% of consumers who engage in online financial transactions trust that their personal information will be safe, compared with 27% almost a year ago."

Among the findings, today's online shoppers are spending more. Nearly 31% of online consumers spent more than $250 in the third quarter, up from about 28% in the fourth quarter of last year. "The rise in average spending per individual, coupled with the increase in traffic as the holiday season approaches, should help boost online sales in the coming months," says Franco.

More Key Findings . . .

More Internet users are using the Internet primarily for personal communication (36%) than for work-related activities (18%).
More than 35% of U.S. consumers go online daily, while an additional 15% go online several times a week.
Close to 65% of online males under the age of 35 play games online, compared with less than 60% of females.

About This Survey:

The Consumer Internet Barometer is based on a quarterly survey of 10,000 households. A unique sample is surveyed each quarter. Return rates average 70 percent, which assures highly representative data. Data is weighted as well to reflect the latest U.S. household demographic information. This survey was conducted during the third quarter of 2002.

To receive the survey report by email, please contact tortorici@conference-board.org

TNS NFO (www.nfow.com)

TNS NFO is one of the world ’s leading providers of research-based marketing information and counsel. "Marketing minds specializing in research "™, NFO provides in-depth knowledge and understanding of businesses, consumers, and brands through research. TNS NFO is one of The Interpublic Group of Companies (NYSE:IPG).

Forrester Research, Inc. (www.forrester.com)

Forrester Research identifies and analyzes emerging trends in technology and their impact on business. Forrester ’s WholeView ™ Research, Strategic Services, and Events help Global 3,500 companies understand how technology change affects their customers, strategy, and technology investment. Established in 1983, Forrester is headquartered in Cambridge, Mass.

The Conference Board (www.conference-board.org)

The Conference Board is the leading global business knowledge network for the world's largest corporations. The Conference Board is dedicated to helping companies improve performance and strengthening the role of business in society. More than 2,000 companies in 61 countries are members of The Conference Board, which produces the Consumer Confidence Index, the Help-Wanted Index and Business Cycle Indicators for nine countries worldwide.

© 2004. All rights reserved. Consumer Internet Barometer is a joint trademark of TNS NFO and The Conference Board. TNS NFO and the TNS NFO logo are trademarks of TNS NFO. The Conference Board and The Conference Board logo are registered trademarks of The Conference Board, Inc.