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Chris Owen
Chris Owen is President and founder of Hubris Communications. Until the opening of Hubris' Wichita office, Mr. Owen was the sole network technician and systems administrator of the company. Hubris Communications is a provider of premium Dial-Up, ADSL, SDSL, Wireless, and dedicated Internet Services. Founded in Garden City, Kansas and doing business since July 1995, Hubris Communications, Inc. serves over 3,200 customers in south central and southwestern Kansas. Chris can be reach at (316) 858-3000 or owenc@hubris.net
Computers & Software
2002-02-01 16:35:00
Internet vs. other media
Question: I have owned a small business in Wichita for many years. Like most businesses, I need to advertise. For years in electronic media it was 3 TV stations and about 8 Radio stations. Then along came Cable... FOX... more Radio stations... then group ownership. The audience is so 'chopped up' compared to what it used to be yet the prices still go up every year.People can't be spending much time watching or listening to any one media.Then there's the Internet. Are there any studies on how big of a 'bite' the Internet takes out of the consumption of media?
Answer:  In the Summer of 1999 the UCLA Center for Communication Policy began the first comprehensive study of the impact of Internet usage on a wide range of issues, including its impact on traditional media. The study was funded by a wide range of traditional and new media organizations, including America Online, Microsoft, The Walt Disney Company, Sony, GTE, Pacific Bell and the National Cable Television Association.The study looked at approximately 2,000 households throughout the United States. Those households represented both the approximately 50% of US households that currently have Internet access as well as the 50% (a number which is declining each year) that do not have Internet access.In November UCLA released their report for year two of the study. This report showed that Internet usage had a major impact on the amount of time Internet users spent on other activities. Internet users spent significantly less time each week reading books (6.6 versus 7.6 hours), reading newspapers (2.7 versus 3.9 hours), reading magazines (2.3 versus 3.2 hours), listening to the radio (9 versus 11 hours) and talking on the phone (4.9 versus 5.9 hours). However, the biggest difference was in television viewing. Internet users in the study spent 4.5 hours less a week watching television (12.3 versus 16.8 hours). That represents 27% less viewing by Internet users.The only activities that Internet users spent more time on were non-advertising supported. Those included playing video games (1.5 versus 0.6 hours) and listening to prerecorded music (7.2 versus 6.4 hours).In real terms, Internet usage by households that have access now exceeds all other activities except television viewing (and even then it is a close second). Households with Internet access now spend 9.8 hours per week online, up from 9.4 hours in year 1 of the study. The impact on television viewing has been so dramatic for instance that viewing by 14 year olds declined last year for the first time in history.The impact on traditional media by Internet usage need not necessarily be a negative for a business however. Despite the continued increase in hours spent online by consumers, the "dot bomb" bust of the past year has made online advertising more affordable than ever. The UCLA study also found that consumers were buying online slightly less than the year before, but that nearly one half did so during the year.There is little question that the Internet has had a negative impact on advertising on other media. However, much like the cable television and other newer media types, advertising on the Internet allows businesses to specifically target their advertising expenditures. Web sites that focus on specific types of consumers for instance can allow businesses to drill down to exactly the type of consumer the business would like to reach.Depending on their market, this may allow businesses to spend less money reaching just those consumers they wish to reach with their advertising message.Full results of the UCLA study can be found online at http://ccp.ucla.edu/
 
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