BROADBAND NOW IN 49% OF ONLINE HOMES EARNING $75K+; LINKED TO HIGHER LEVELS OF INTERNET SHOPPING

Knowledge Networks/SRI report shows e-marketing potential being fulfilled among wealthiest consumers

Menlo Park, CA; January 9, 2004: High-speed Internet connections— essential for accessing a host of sophisticated online marketing vehicles, including high-quality video, audio and graphics—have become standard equipment in the wealthiest online homes; and broadband households are 50% more likely to be active online shoppers.

These findings—from Knowledge Networks/SRI's The Home Technology Monitor ™—suggest that, while Internet growth overall has slowed, high-income homes are taking this medium to the next level. The result may be a greater capacity to use the Internet as a marketing and selling tool reaching the most desirable consumers.

The new data - based on 1,526 interviews conducted in August and September 2003—shows that broadband access in online homes earning $75,000 or more per year has grown 25% since the spring, from 40% to 49%. The 49% consists of 31% who have cable modems and 18% using DSL connections.

High-speed Internet in all online households also increased, from 26% to 34% during the same period. By contrast, dialup connections are now found in 66% of online homes (down from 75% in Spring 2003), and in 50% of upper-income Web homes (versus 60% in Spring).

In addition, 64% of broadband households report shopping via the Internet in the past 60 days (versus 42% of dialup homes); and nearly half (47%) have kids— a powerful source of shopping "wish lists."

Homes earning $75,000 or more are also twice as likely to report paying $30 or more per month for Web access, compared to households earning $30,000 to $49,000 annually (46% versus 22%).

"The long-held vision of the Internet as a go-to source for research and purchase of almost anything is being fulfilled among high-end consumers," said David Tice, KN/SRI Vice President, Client Service, and Director of The Home Technology Monitor ™. "They can view the most sophisticated graphical elements with almost no download time, and it's safe to assume that they have more disposable income to spend on the Internet. The result is a powerful environment for high-end marketing - and a motivator for creating special Web site features that leverage this opportunity."

The Home Technology Monitor ™ is the definitive source of reliable insights into how consumers use and respond to media-related technologies, from broadband to DVRs to wireless Internet access. The program builds on two decades of research, combining top-quality nationwide surveys of technology ownership with special reports on key devices and services. These special reports are usually based on Knowledge Networks/SRI's exclusive How People Use® media methodology, a proven technique for studying the quality of media exposures.

Knowledge Networks delivers quality you can use—superior methodologies, design, and analysis that give you an edge when it comes to making smart, safe business decisions. KN's unmatched consumer research resources include the only projectable Web-based consumer panel. The company leverages its expertise in brands, media, advertising, and analytics to provide insights that speak directly to clients' most important marketing issues. In addition, Knowledge Networks has built a substantial practice in government and academic research, an area notable for its rigorous methodology standards.

In 2001, Knowledge Networks acquired assets and expertise from Statistical Research, creating Knowledge Networks/SRI. KN/SRI is one of the country's leading authorities on consumers' use and ownership of media and technology. The company is the leading measurement provider for Yellow Pages directories; other specialties include cross-media allocation (MultiMedia Mentor™) and studies of consumers' interactions with media (How People Use® research).