1

Computers, the Internet, and theComputers, the Internet, and the50+ Population50+ Population

Shereen RemezRobert Prisuta

AARP Knowledge ManagementMarch, 2003

2

68

80

106

0

20

40

60

80

100

120

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Millio

ns

In 1995 there were 68 million people 50+

By 2014 there will be 106 million people 50+

Population Age 50+ - 1995-2014Population Age 50+ - 1995-2014

3

Confluence of Two Major TrendsConfluence of Two Major TrendsConfluence of Two Major TrendsConfluence of Two Major Trends

Boomer Wave

Internet Revolution

4

Computer Use by AgeComputer Use by AgeComputer Use by AgeComputer Use by Age

59%

71%

85%93%

58%

71%

58%

70%

28%

43%

54%

66%

0%

20%

40%

60%

80%

100%

3 - 8 9 - 17 18 - 24 25 - 49 50+ Total

Age

19972001

Source: U.S. Bureau of the Census, Current Population Survey, 2001

5

Internet Use by AgeInternet Use by AgeInternet Use by AgeInternet Use by Age

7%

28%33%

69%

32%

65%

27%

64%

11%

37%

22%

54%

0%

20%

40%

60%

80%

100%

3 - 8 9 - 17 18 - 24 25 - 49 50+ Total

Age

19972001

Source: U.S. Bureau of the Census, Current Population Survey, 2001

6

Variations in Computer Variations in Computer Use Among 50+Use Among 50+

Variations in Computer Variations in Computer Use Among 50+Use Among 50+

58%

70%

50%

65%

40%

60%

20%

40%

15%

31%

9%

20%

7%12%

0%

20%

40%

60%

80%

100%

50 55 60 65 70 75 80

Age

19972001

Source: U.S. Bureau of the Census, Current Population Survey, 2001

Variations in Internet Variations in Internet Use Among 50+Use Among 50+

Variations in Internet Variations in Internet Use Among 50+Use Among 50+

28%

60%

20%

58%

14%

45%

8%

32%

5%

20%

3%

18%

2%

10%

0%

20%

40%

60%

80%

100%

50 55 60 65 70 75 80

Age

19972001

Source: U.S. Bureau of the Census, Current Population Survey, 2001

International Use of InternetInternational Use of Internet

10%

21%

23%

25%

27%

29%

29%

31%

36%

40%

40%

47%

48%

51%

54%

54%

58%

0% 10% 20% 30% 40% 50% 60% 70%

Greece

Portugal

Spain

France

Iceland

Germany

Belgium

EU Average

Luxembourg

Ireland

UK

US

Austria

Finland

Netherlands

Denmark

Sweden

Source: U.S. Bureau of the Census, Current Population Survey, 2001

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Key Internet DemographicsKey Internet Demographics

Gender – Equal overall, but differences by age Age<20 – no gender differences Age 20-55 – more female users than male Ages >55 – more male users than female

Race/Ethnicity Higher use among non-Hispanic Whites, Asian

American/Pacific Islanders Lower use among African Americans, Hispanics

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Key Internet DemographicsKey Internet Demographics Employment Status

Using the computer at work is the most important factor

Income Higher incomes = higher use

Education Higher education = higher use

Urban/Rural use similar, but lower use in urban/central city households

Marital Status Highest use among married couples with children<18

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Why People Say They Don’t Use the Why People Say They Don’t Use the InternetInternet

Why People Say They Don’t Use the Why People Say They Don’t Use the InternetInternet

14%

2%

1%

3%

7%

4%

25%

4%

1%

1%

2%

8%

6%

69%53%

0% 20% 40% 60% 80% 100%

don't want to

too expensive

can use elsewhere

concern w/ children

computer not capable

lack of knowledge

other

no computer Total55+

Source: U.S. Bureau of the Census, Current Population Survey, 2001

* Less than one percent

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Uses of Internet Among 50+Uses of Internet Among 50+

6%

13%

41%

72%

90%

0% 20% 40% 60% 80% 100%

Employment Search

Online Banking

Products/ServicesPurchase

Products/ServicesInformation Search

E Mail

Source: U.S. Bureau of the Census, Current Population Survey, 2001

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Uses of Internet Among 50+Uses of Internet Among 50+

50+ more likely to use Internet to check health information (43%)

Just as likely to use email Less likely to play games, job

search, participate in chatrooms or list servs, view television or movies, listen to the radio or trade/invest on line

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Demographics of Top 100 Websites by Demographics of Top 100 Websites by CategoryCategory

Type of Site 45-54 55-64 65+ All Ages

Entertainment 28% 19%

Shopping 16% 14%

Services/Resources 15% 19% 13%

Education 9% 6%

News/Information 7% 6%

Society/Community 6% 9% 13% 4%

Source: Comscore, December 2002

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Demographics of Top 100 Websites by Demographics of Top 100 Websites by CategoryCategory

Type of Site

Health

45-54

6%

55-64

5%

65+

4%

Total

2%

Computers/Electronic 5% 5%

Travel 3% 4% 2%

Home & Living 2% 2% 2%

Finance/Investing 5% 8% 5%

Automotive 2%

Source: Comscore, December 2002

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Top Ten Internet Sites by AgeTop Ten Internet Sites by Age

45-54 55-64 65+ Total

Microsoft Microsoft Microsoft Microsoft

Ebay Ebay Ebay Ebay

Geocities Amazon Amazon Geocities

Amazon Geocities Geocities Amazon

Windowsmedia Windowsmedia Windowsmedia Windowsmedia

Source: Comscore, December 2002

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Top Ten Internet Sites by Age, Top Ten Internet Sites by Age, ContinuedContinued

45-54

Digitalcity

55-64

Digitalcity

65+

Digitalcity

Total

Digitalcity

Kazaa Classmates Classmates Kazaa

Classmates CNN CNN Classmates

Tripod Real Real Tripod

CNN Mapquest Kazaa Real

Source: Comscore, December 2002

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45-54 (27%) 55-64 (11%) 65+ (7%)Bible 46% AARP 34% Haband 34%

Guitarnotes 46% Winner 33% Mamarocks 33%

Zibgib 45% Merck-medco 29% Promiseofgod 30%

Hawaiianair 44% Vantagetravel 29% Vantagetravel 28%

Marriottrewards 44% Getfreesoftware 29% Llerrah 27%

Viewpointforum 43% Gasupusa 28% Kissedbyanangel

25%

Surveywriter 43% Mamarocks 28% Talltexian 24%

NYPL (NY Public Library) 43% 123inkjets 27% Zacks 24%

Docguide 43% 101funpages 27% Agoora-inc 24%

Cookingclub 42% tvinventions 27% Ashland 23%

Top Ten Internet Sites by Proportion of Visitors in Each Age GroupTop Ten Internet Sites by Proportion of Visitors in Each Age Group

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Favorite Topics of Interest to Favorite Topics of Interest to Individuals 50+Individuals 50+

Favorite Topics of Interest to Favorite Topics of Interest to Individuals 50+Individuals 50+

Getting the most from your computer – 73% Budget Travel – 68% Planning Ahead – 66% Nutrition – 62% Active Living – 62% Alternative Medicine – 61% Finding Information on the Internet – 61% Favorite Hobby or Pastime -- 61% Mastering an Advanced Skill -- 52% Getting More Enjoyment out of Life --51% Having a Healthy Diet and Nutrition -- 50%

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Most Important Features of a Web Most Important Features of a Web Site for Internet Users 50+Site for Internet Users 50+

7.9

8.0

8.0

8.0

8.0

8.1

8.1

8.2

8.3

8.5

0 1 2 3 4 5 6 7 8 9 10

Detailed information

Comprehensive information

Loads quickly

Search results fast

Value for time

Well organized

Good advice

Ease of Navigation

Relevant search results

Up to date

Average of 1-10 scale, 10=extremely important

Source: Visitor Profile and Evaluation of AARP Webplace, AARP, 1998

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Least Important Features of a Web Least Important Features of a Web Site for Internet Users 50+Site for Internet Users 50+

4.3

4.5

5.6

6.1

6.6

6.7

6.8

0 1 2 3 4 5 6 7 8 9 10

Contests/Surveys

Feel part of community

Fun to use

Looks appealing

Interactive

Geared to me

Good reputation

Source: Visitor Profile and Evaluation of AARP Webplace, AARP, 1998

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People 45+ Represent a People 45+ Represent a Substantial Share of the MarketSubstantial Share of the Market

Market Market Share 45+ Leading Age Segment

Annual Spending

Computer Information Services

51% 45-54 $2.8 billion

Computer Software/Accessories (non-business)

53% 45-54 $1.3 billion

Computer System Repair

61% 45-64 $ .2 billion

Computers and Hardware (non-business)

53% 45-54 $11.1 billion

Total: $15.4 billion

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The 50+ Population and The 50+ Population and the IT Marketthe IT Market

8% of adults 50+ plan to buy a computer in the next 12 months.

Almost one in four (22%) plan a computer system upgrade in the next 12 months.

One in four (25%) have made an on-line purchase in the last 12 months (9% made purchases totaling $500 or more).

Almost one in ten (9%) have made 10 or more on-line purchases in the last 12 months.

Source: Scarborough Research 2003

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ConclusionsConclusions

Internet use among people 50+ will grow dramatically in the near future as boomers age.

Mass appeal sites have been successful in attracting all age groups, including people 50+.

The age mix of niche site users varies greatly.

Practical considerations are the primary concern when people 50+ evaluate a web site.