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Friday, April 23, 2004 Media Cynic | Forum | Advertising | Classifieds | Jobs Broadband Adoption Rates Highest Among Affluent Surfers Nielsen//NetRatings, a provider Internet audience measurement and analysis, reported that affluent Americans are the fastest growing income group online. Surfers with total household incomes of $150K and higher grew 31 percent year-over-year at home to nearly 7.9 million individuals (see Table 1). Those earning between $75K-100K increased to 26.4 million in March 2004, as compared to 20.7 million a year ago. Internet users with upper incomes ranging from $100K-150K rose 24 percent since last March. Table 1: Year-Over-Year Internet Access Growth by Income Level (US, Home) Unique Audience (000)
*Income level based on combined total household annual earnings Broadband Adoption Rates Highest Among Affluent Surfers Internet users earning upper-level incomes have a higher concentration of broadband adopters. Broadband surfers made up 69 percent of the total audience for those with incomes of $150K and above, as compared to 31 percent accessing via dial-up (see Table 2). Those earning between $100K-$150K showed a 61/39 split favoring high speed, while Internet users with incomes between $75K-$100K posted an even split among narrowband and broadband users. Middle and lower income surfers accessing the Internet via broadband posted much smaller concentrations. Almost two-thirds of individuals with household earnings between $25K-50K log online via narrowband, with just 36 percent accessing through broadband. Broadband composition is even less for lower income surfers earning between $0-25K, with just 25 percent accessing via cable, DSL or other high speed. “Cost plays a tremendous part in Internet access patterns,” said Kenneth Cassar, director of strategic analysis, Nielsen//NetRatings. “While broadband has become much less expensive over the past few years, it’s still a significant cost as compared to narrowband. Couple high-speed access with other utility expenses, and households with tighter budgets simply would not be able to afford the luxury of having broadband.” Table 2: Broadband vs. Narrowband by Household Income March 2004 (U.S., Home)
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