headline from The New York Times, Sept. 14, 1998
1 Lexington Ad Club March 10 1999

Web Access
The Greatest Communication Medium of All Time
?

79.4 million Americans are online today, accounting for
38% of all people 16 years or older.
 18.8 million more are expected this year, a 23% increase in one year.

That means nearly 100 million web-enabled consumers out there!

Intelliquest Survey, 1999
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Web Access
Lexington Metropolitan Area Adults With Web Access
70%
60%
50%
40%
30%
20%
10%
0%
1994 1996 1998 2000
Source: Customer Study, Clark, Martire & Bartolomeo, 1994, 1996, 1998.
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Lexington
Forecast y = 0.38Ln(x) + 0.0864

Web Usage-It’s not just for “techies” anymore
 46% of users had college degree in 1996, 36% in
1999
 60% of HH reported incomes of $50K+ in 1996,
55% in 1999.
 40% of newcomers never attended college, 23% have incomes below $30K
 52% of newcomers are women
Intelliquest/Pew Research Center for the People & the Press
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Online Adult Demographics-Lexington
Age
60%
50%
40%
30%
20%
10%
0%
42% 42%
18-34
51%
44%
35-54
7%
13%
55+
1996
1998
Source: Customer Study, Clark, Martire & Bartolomeo, 1996, 1998.
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Online Adult Demographics-Lexington
Education
86%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
6% 6% 8%
23%
71%
< H.S.
H.S. Grad Some
College +
Source: Customer Study, Clark, Martire & Bartolomeo, 1996, 1998.
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1996
1998

Online Adult Demographics-Lexington
Income
59%
60%
50%
40%
30%
20%
10%
15%
26%
0%
< $20K $20 - 40K
Source: Customer Study, Clark, Martire & Bartolomeo, 1996, 1998.
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$40K +
1996

Income
49%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
25%
26%
< $30K $30 - $50K $50K +
Source: Customer Study, Clark, Martire & Bartolomeo, 1996, 1998.
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1998

Purchasing Habits
Online adults embrace technology in general
Used cellular phone past 4 weeks
Carried a pager
24%
19%
40%
52%
Online
Total Adults
Shopped computer store past
12 months
42%
Source: Lexington Market Study, MC-Squared Consulting, 1998.
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71%

Purchasing Habits
Online adults represent an attractive market
Played golf past 12 months
Bought a new car past 12 months
Shopped home improvement supercenter past 12 months
Taken a vacation trip past 12 months
Source: Lexington Market Study, MC-Squared Consulting, 1998.
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21%
33%
Online
Total Adults
19%
14%
59%
33%
54%
74%

Some Perspective
Online adults now make up a sizeable market
Total online adults
Have a cat
Watched X-Files past 7 days
Watched Friends past 7 days
Watched Jerry Springer past 7 days
Watched Melrose Place past 7 days
Source: Lexington Market Study, MC-Squared Consulting, 1998.
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30,000
106,500
94,900
90,200
74,600
62,500

Why Local Users Use the Internet
On line Information Sought Past 4 Weeks
World or National News
Travel Info
Entertainment Info for Some Other Area
KY Connect Site
Merchandise for Sale
Employment Info
Entertainment Info for Your Area
New Car Info
H-L Online
Homes or Real Estate Info
Used Car Info
Source: Lexington Market Study, MC-Squared Consulting, 1998.
27,400
26,400
21,500
21,400
20,700
19,100
18,600
16,200
11,900
38,100
47,200
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Advertising Measurement
Impressions the number of times a page is served with an ad on it
Click-Through a viewer clicking on an ad to go to advertiser’s site
Visit (Some use “hit”) the result of a click-through
Unique Users net reach/non-duplicated
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Advertising Effectiveness
As with all media, the message and the medium drive the response.
Internet users expect to save money or time, so ads must be creative and promise benefits to create clicks.
works, as do discounts, contests & giveaways.
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Advertising Effectiveness
On-line advertising has value for building awareness and brand positioning as well.
AOL.com study:
TV recall, 1 viewing: 41%
Banner ad, 1 viewing: 40%*
Impacts TV shopping, direct mail purchases and store traffic.
**
*Ipsos-ASI, AOL Study/**Cyber Dialogue
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Advertising Origination
Local spending will increase quickly
60%
50%
42%
40%
58%
30%
20%
10%
0%
Jay Friesel, EVP, 24/7 Media
1999
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54%
46%
2002
Local
National

Advertising Estimates
Net ad expenditure per online Household
$113
$120
$100
$80
$60
$40
$20
$0
$58
Note:
TV: $455
Newspaper: $513
1999 2003
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On-line Advertising Estimates
Small base, but a healthy rate of growth

First 3 Q of ‘98: $1.3 Billion; $2B+ for year.

116% Increase 3Q ‘98 over ‘97

Total spending at over $3B for ‘99.
PricewaterhouseCoopers for IAB/Jupiter Communications
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Success Stories
Bluegrass Airport
Louisville Convention & Visitors Bureau
Kennedy Bookstore
Red Lobster
Cross Gate Galleries
A Taste of Kentucky
Meijer
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What Can You Do?
Get Involved, Dis-intermediation is an ugly word because it means your clients don’t need you anymore.
Strategize with your accounts-how can they take advantage of this unique tool?
Partner with Web Designers if you do not have the expertise you need.
Invest in On-line advertising and learn how it can be a very valuable marketing tool.
20 Lexington Ad Club March 10 1999