July 2010

Wealthy TV viewers: everyone wants them. But what about years from now? Wealthy viewers are often "light" TV viewers who typically are not exposed to specific brands. So marketers will often pay a premium to get access to such viewers. AMC's "Mad Men" gets a big percentage of wealthy viewers for a cable show. But it doesn't get the most affluent cable viewers; higher-rated shows like USA's "Royal Pains" are much better at attracting this coveted demo. Will these wealthy viewers still matter to advertisers when data from set-top boxes come around? Maybe. The question is what actual data will be revealed from set-top boxes. There are privacy issues to consider, for one. Second, the good folks at the Coalition for Innovative Media Measurement are not only concerned the data will be tough to get, NBC's research chief Alan Wurtzel (one of the creators of CIMM) has questioned just how valuable the data will be. While we wait, marketers maintain their old ways. This is continued good news for "Mad Men" and all its advertisers.

In comments filed at the Federal Communications Commission, the Benton Foundation urged the FCC to
consider setting aside funding for analysis of the E-rate program. Benton believes substantial research into the benefits of the E-rate program will serve to enhance policy decisions surrounding the growth of the program and changes to its administration. Such research should also explore the best practices of schools and libraries in using the program, as well as for providers of equipment and services under the E-rate program, and the barriers that inhibit full participation in the E-rate program. Such research should also provide recommendations for improvements in the program.

The annual study of the impact of the Internet on Americans by the Center for the Digital Future at the USC Annenberg School found that 49 percent of Internet users said they have used free micro-blogs such as Twitter. But when asked if they would be willing to pay for Twitter, zero percent said yes. The responses about Twitter are reinforced by other findings in the Digital Future Study that explore Internet users' opinions about online advertising. The current study found that half of Internet users never click on Web advertising, and 70 percent said that Internet advertising is "annoying. " Yet 55 percent of users said they would rather see Web advertising than pay for content. The current study reveals a profile of American Internet users who go online more than ever, almost two-thirds who buy online, most households now using broadband, a majority of families that own two or more computers, and large percentages of users saying that the Internet is important in political campaigns. However, troubling issues emerge as well, with the study finding large percentages of users who express deep distrust in online information, surprising gaps in Internet use within some age groups, low percentages of users who said that the Internet gives them more political power, and continuing declines of users who say that online technology makes the world a better place.

Among the study's findings:

• Americans on the Internet -- For the first time, the Internet is used by more than 80 percent of Americans -- now 82 percent.
• Weekly hours online -- The average time online has now reached 19 hours per week. Although more than two-thirds of Americans have gone online for a decade, the largest year-to-year increases in weekly online use have been reported in the two most recent Digital Future studies.
• Gaps in Internet use in age groups -- Not surprisingly, Internet use continues to increase as age decreases, with 100 percent of those under age 24 going online. However, a surprisingly high percentage of Americans between 36 and 55 are not Internet users: among respondents age 46 to 55, 19 percent are non-users; among those 36 to 45, 15 percent are non-users.
• Low adoption of new media -- Although new media is used by large percentages of Internet users age 24 and under, overall large percentages of Internet users never go online to do instant messaging (50 percent), work on a blog (79 percent), participate in chat rooms (80 percent), or make or receive phone calls (85 percent).
• Does technology make the world a better place -- The percentage of users age 16 and older who said that communication technology makes the world a better place has declined to 56 percent of users from its peak of 66 percent in 2002.
• Internet and Political Campaigns -- although more than 70 percent of users agree that the Internet is important for political campaigns, only 27 percent of users said that by using the Internet public officials will care more about what people think, and 29 percent said that the Internet can give people more of a say in what government does.
• Buying online -- 65 percent of adult Internet users buy online (the same as in 2008), and make an average of 35.2 purchases per year (up from 34.1 per year in 2008).
• Internet impact on traditional retail declines -- 61 percent of Internet users said that online purchasing has reduced their buying in traditional retail stores -- down from 69 percent in 2008.
• Top 10 online purchases -- 59 percent of Internet users said they purchase books or clothes online, followed by gifts (55 percent), travel (53 percent), electronics/appliances (47 percent), videos (46 percent), computers or peripherals (41 percent), software or games (40 percent), CDs (40 percent), and products for hobbies (38 percent).

The New York Times reports:
Where are people going to find news and information they trust, in a world with a dwindling number of print publications and an ever-expanding number of online publications? Readers have not yet figured out the answer to that, according to a recent report released by the Center for the Digital Future at the Annenberg School for Communication and Journalism at the University of Southern California.

Almost a quarter of Internet users who also read newspapers would miss the print edition of their newspapers if they disappeared, according to the study, and 18 percent have stopped subscribing to a newspaper or magazine because they can read the same material online. More than three-quarters ranked the Internet as an important source of information, yet just over half said newspapers were important. While most people get their information online these days, they do not necessarily trust their new sources of news. Just 39 percent of people said that most or all of the information they read online is reliable, the lowest percentage since the university began doing annual studies a decade ago. Fourteen percent said that only a small portion or none of the information online was reliable, the highest level ever.

If that makes you think that people read the sites they trust and distrust the others, think again. Almost a quarter of people said that half or less than half of the information they read on sites they visited regularly was reliable.

The East Central Vermont Community Fiber Network said that with financing for the entire 22-town telecommunications network "well under way," it will build a pilot fiber-to-the-home project with Royalton as its hub. Project Director Tim Nulty said the pilot would "prove our concept" of creating a high-speed Internet network for rural Vermonters, at no risk to taxpayers. Nulty has projected profitability for the network in its fifth year of operation, if 49 percent of the households in the 22 towns subscribe. ECF spokesman Bob Merrill said the privately financed pilot could extend to a 12-mile radius from Royalton, the distance a passive optical network can function without a "repeater" station to "regenerate" the signal. "We haven't determined the exact area," Merrill said. He declined to identify the source of the funding for the project, but said the $75 million network is no longer in the running for a stimulus loan from the U.S. Department of Agriculture. "We have some private investment," he said. "We will raise some additional funds."