The impact of Broadband on British homes is increasing, with shoppers flocking online prompted by the ease, ever faster speeds, and low cost of Broadband services, according to Continental Research’s Internet Autumn (September) 2005 Report.

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After two years of no growth in the number of homes coming online, 1.5 million new homes have connected to the Internet in the past 12 months, making a total of 14 million homes connected (56% of all UK homes).

Broadband take up has doubled year on year, from 4.2 million homes in 2004 to 8 million in 2005. Even more significant is that amongst the non-Broadband regular dial up homes (6 million), 1.3 million say they are likely to upgrade to Broadband in the next 6 to12 months.

Broadband users spend on average £620

Whilst 17 million adult Internet users spent an average of £490 each online over the past 12 months, that figure leaps to £620 spent by Broadband users. Other groups who spent above this average were 25-34 year olds who spent £680, and social demographic AB’s who spent £700. Air tickets (7.2 million purchasers), books (6.1m), CD/DVDs (5.9m) and hotel accommodation (5.1m) were the most sought-after items.

Role of advertising

Colin Shaddick, director at Continental Research, said: “Online shopping is fast becoming an essential part of everyday life. Expenditure is set to rise in the next 12 months with 36% of online shoppers expecting to increase the amount they spend.”

“With larger numbers spending more online the role of advertising is playing a crucial role in stimulating purchasing and building customer loyalty. Shoppers recall that the key sources of information about websites they purchase from are TV advertising (16%), online advertising – not including at purchase site - (11%), word of mouth (10%), press advertising (8%) and emails (8%).”

How shoppers are made aware of websites

Sources of awareness for the website where people made their last purchase do vary by item. The chart on the following page shows the different media/sources that obtain high (shown in yellow) and low awareness (shown in red). Overall people purchasing items from auction sites were most aware of any advertising with both TV and online advertising being especially high. Insurance sites also achieved high levels of advertising awareness these being primarily driven by TV.

All, with the exception of insurance, achieved good levels of awareness from any online activity (i.e. online advertising, email or search engine).

For the past nine years Continental Research has monitored Internet access and usage amongst the UK population. The reports are published every six months. The Autumn 2005 report continues to track Internet access and usage from both home and the workplace.

The report also covers:

• Home and work internet access and usage
• Demographic profiles of all users
• Broadband forecasts
• Role of advertising and online purchasing
• Attitudes to online advertising

Methodology
This report is based on data collected from 2,135 face to face interviews with a representative sample of UK adults aged 16 years or more. The respondents were selected according to a two-stage random location sample, designed to be representative of all adults aged 16 years or more. Interlocking quota controls were set for working status and age within sex. Weighting was subsequently applied to social grade, age and region within sex to make the profile representative of the adult population. All interviewing was carried out in-home using CAPI (Computer Assisted Personal Interviewing) from 15th to 19th July 2005.

In addition to the Internet Report, Continental Research also issues reports on the mobile telephone market, the digital TV market and into the growing area of e-commerce. The reports cost £175 + VAT but are free to journalists.

ORDERING THE REPORT:
For further information contact Amanda Harrison. Tel 01296 660 294, email ah@amandaharrisonmedia.co.uk or visit www.continentalresearch.com