38% of Irish adults are now online.(according to Amarach report)(Statistical Data Included)

EUROPEMEDIA-(C)2002 Van Dusseldorp & Partners - http://www.vandusseldorp.com/

Internet penetration has now reached 38 per cent of Irish adults, which is equivalent to an estimated 1,065,000 adult users and represents a significant increase of 5 per cent on figures recorded last year, according to a new report from Amarach.

"The rate of growth in internet use has slowed down and AmArach expect this to continue," said Bettina MacCarvill, Senior Consultant AmArach. "We forecast that an additional 5 per cent of Irish adults will go online within the next 12 months and that by mid-2004 almost half the adult population will be internet users". In international terms, the study finds that Ireland's relative internet population is similar to that of the UK but lags someway behind the US where internet penetration is over 60 per cent. In Europe, the Nordic countries continue to have the highest levels of internet penetration.

Preliminary research from AmArach suggests that Ireland's economy impacting the consumer online market. After months of continued growth, the numbers buying online fell for the first time in a year. An estimated 188,000 internet users made an online purchase in the last 3 months compared to 238,000 at the beginning of the year. In percentage terms 18 per cent of internet users made an online purchase compared to 24 per cent at the start of the year. "The slowdown may reflect slower domestic economic conditions," said Michael McLoughlin, Director, AmArach. "It may also reflect seasonality not evident in the offline market. The fact that travel services are a very significant component of online purchases may also be affecting the timing of online purchases."

Travel services, specifically airline tickets, continue to account for the bulk of online purchases, according to the report. Books, CDs and tickets for events also continue to be big online sellers.

It further finds that the ability to shop online at any time of day or night is the most frequently cited benefit enticing people to shop online. "This was especially evident among 25-34 year olds," said Bettina MacCarvill, Senior Consultant, Amarach "This is a money-rich, time-poor group who place real value on convenience and are willing to pay a premium to get it". Over four in ten (45 per cent) said they could get better deals or cost-savings by shopping online. The ability to compare products and prices from different websites appealed to a significant number. Avoidance of queues and dealing with sales people was also considered a major benefit.

The future for online shopping remains reasonable - three in ten internet users said they were likely to shop online in the next three months. Not having a credit card is the main barrier to online shopping, particularly among younger internet users. Security concerns continue to be a major barrier. Two-thirds (66 per cent) of internet users agree that companies are not doing enough to demonstrate the security and safety of online shopping. "There appears to be a demand for a more visible security initiative among online retailers," said Michael McLoughlin "Many internet users remain unconvinced of the security of using their credit card online". ((Distributed via M2 Communications Ltd - http://www.m2.com))