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E-commerce & Internet Industry.Significant, continuing growth of E-commerce was seen in the global Internet sector in 2006. This growth will continue into 2007 and 2008, particularly in growing worldwide use of the Internet in general, growing access to the Internet via wireless devices and growing consumer purchases via websites. Worldwide, more than 1.1 billion people are using the Internet. China has become the second largest online market, after the U.S., with more than 132 million Internet users. The number of American homes and online businesses with broadband access capabilities topped 60 million as 2007 began, and a plethora of new services, entertainment options and time saving solutions have become widely available. The U.S. population is becoming more tech-savvy, with at least 72% of American adults surfing the net on a regular basis for online opportunities. Confidence in security for online transactions is on the rise, as is the ease of use of most retail web sites. During 2006, online advertising,including paid search inclusion at sites like Google and Yahoo!, has ballooned into a $13+ billion business in the U.S. alone, threatening traditional advertising venues of all types. Projections for online advertising in America run as high as $19 billion for 2007. Retailing online continues to be a booming business. Total online sales reached approximately $104 billion in the U.S. during 2006, up from about $89 billion in 2005. For 2008, growth in e-commerce sales in America will be 20% to 25%. E-commerce is about saving time (and therefore saving money) and the potential of the Internet has barely been tapped. New methods of taking advantage of efficiencies are become widely accepted as access to high-speed broadband Internet connections become commonplace. Users of the Internet (both business and consumer) are multiplying around the globe, and many online business companies are earning terrific profits in the process of serving those users. The long awaited phenomenon of "convergence" of entertainment, computing and communications has arrived. One of the most exciting examples of such convergence is the phenomenal success of Apple's iTunes online music service which has sold billions of songs, legitimizing the online music business and revolutionizing the delivery of recorded music. (Meanwhile, Apple's iPod digital music player has sold tens of millions of units worldwide.) Microsoft's investments in digital entertainment and the growing popularity of Internet-enabled telephony via voice over IP (VOIP) are also great examples of the arrival of convergence. Microsoft's 2007 release of the Vista operating system will eventually boost both Internet usage and e-commerce, since a major focus of Vista is enhanced security. Stay tuned-the next seven to ten years are going to be extremely exciting, both for consumers and for firms that provide Internet-based services. Top online businesses and money making websites include travel, clothing and accessories, books, music, videos, electronics and specialty foods including wines. In these markets, online shopping amounts to a significant share of sales.
Common Online Consumer Activities -Research Automobile Purchase Information -Banking/Manage Accounts -Instant Message -Check/Trade Stock Portfolios -Job Search -Mortgage Information and Application -Participate in Auctions -Play Games -Read News Items -Product or Entertainment Reviews -Research Consumer Health Issues -Shop/Check Product Prices and Features -Make Travel Reservations -Visit Pornographic Sites -Gamble Source: Plunkett Research
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Significant, continuing growth of E-commerce was seen in the global Internet sector in 2006. This growth will continue into 2007 and 2008, particularly in growing worldwide use of the Internet in general, growing access to the Internet via wireless devices and growing consumer purchases via websites. 