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Thursday, June 26, 2008

IDC: 1.4 billion online

Highlights from IDC's Digital Marketplace Model and Forecast:
1. The number of mobile devices accessing the Internet will surpass the number of online PCs by 2012.

2. Users will access the Internet through more than 1.5 billion devices worldwide in 2008, including PCs, mobile phones, and online videogame consoles. By 2012, the number of devices accessing the Internet will double to more than 3 billion, half of which will be mobile devices.

3. China passed the US in 2007 to become the country with the largest number of Internet users. China's online population is forecast to grow from 275 million users in 2008 to 375 million users in 2012.

4. Nearly half of all Internet users will make online purchases in 2008. By 2012, there will be more than 1 billion online buyers worldwide making business to consumer (B2C) transactions worth US$1.2 trillion. Business to business (B2B) eCommerce will be ten times larger, totalling US$12.4 trillion worldwide in 2012.

5. Worldwide spending on Internet advertising will total US$65.2 billion in 2008, which is nearly 10% of all ad spending across all media. This share is expected to reach 13.6% by 2011 as Internet ad spending grows to US$106.6 billion worldwide.

6. Roughly 40% of all Internet users worldwide currently have mobile Internet access. The number of mobile Internet users will reach 546 million in 2008, nearly twice as many as in 2006, and is forecast to surpass 1.5 billion worldwide in 2012.

7. The most popular online activities today are searching, finding information for personal use, using Internet email, accessing news and sports information, and accessing financial or credit information. More than 50% of online users worldwide are using instant messaging and playing online games. The fastest growing online activities include accessing business applications, creating blogs, online gambling, accessing work-related email, and participating in online communities.

8. Among mobile Internet users, the most popular online activities are searching, accessing news and sports information, downloading music, videos, and ringtones, using instant messaging, and using Internet email. By 2012, downloading music, videos, and ringtones will become the number one activity among mobile Internet users worldwide.

"The Internet will have added its second billion users over a span of about eight years, a testament to both its universal appeal and its availability," said John Gantz, chief research officer at IDC.

The report states that Internet users will move from just searching, shopping, and sending email to watching user-generated videos, posting blogs, and participating in social networks. The latter will create new opportunities and challenges for online advertisers seeking to monetize the Internet experience.

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