Although Canada lags behind the United States in Internet use in general and in e-commerce in particular, about twice as many Canadians bank online as do their neighbors to the south, said Steven Bartkiw, the chief executive officer of AOL Canada Inc.
Speaking about the larger Internet community, Bartkiw said that more than half the households in both Canada and the United States own computers, making penetration comparable. Only 20% of Canadian computer owners, however, pay for online services – compared with 35% of Americans.
Bartkiw added that 40% of those individuals purchasing online services also buy products online. But because so few Canadian companies have e-commerce sites, most of those consumers shop “south of the border.”
“They are hesitant to take the risk to invest online,” he explained. Bartkiw attributed some of the hesitancy to a lack of Canadian online service providers until five years ago – which was more than 10 years after the United States not only had such Internet service providers, but enjoyed a lively competition among several well-financed players.
Quoting statistics from AOL’s own research, as well as figures found in the Toronto newspaper The Globe and Mail, Bartkiw said that 23% of Canadian Internet users pay their bills online.
According to Bartkiw, AOL has been expanding in Canada during the past few years. Management of AOL Canada is local, and the Royal Bank of Canada owns 20% of the ISP. In addition to the Royal Bank, AOL Canada has more than 80 partners providing local content and commerce to its some 3 million members.
Nevertheless, AOL is only the No. 2 ISP in Canada. It ranks behind Microsoft even after the 30% growth AOL achieved thanks to a partnership with the Royal Bank and an aggressive branding and membership TV campaign that ran during the 1999 holiday season.
Bartkiw delivered his remarks on the state of Canadian e-commerce in a pre-conference keynote speech at the Canadian Marketing Association’s National Convention and Trade Show in Toronto. The conference took place April 25-27.
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