Three years ago there were 40 million people online, a number that has now surpassed 250 million, with more than half from the United States.
Statistics like that are striking proof that the Web as a business environment is moving at a dramatic pace, DMA president and CEO H. Robert Wientzen, told a standing-room only crowd at the opening session of the The DMA net.marketing Conference & Exhibition in Seattle, WA.
Wientzen said, that to meet the challenge direct and interactive marketers need to tap the latest technologies and draw on the success of time-tested traditional direct marketing skill sets such as information management, targeting, sophisticated order taking, fulfillment and customer service processes and systems.
“It looks like you can have the snazziest Web site and the latest technology on the Internet, with lots of bells and whistles, however, if you can’t get the goods into your customer’s hands on time, you will be relegated to the ‘loser’ list very quickly,” Wientzen said.
Wientzen also offered the following statistics as indicators of continued strong Web growth:
* In January 1993, only 50 sites occupied the Web compared to the current 15.4 million domains registered worldwide including 9.4 million dot.com companies
* The general consensus is that the online holiday season yielded around $7.5 billion in sales of goods and services
* The amount of time the average cyber surfer spends online each week has risen 75% during the past two years
* Only 22 of the current U.S. Fortune 500 companies were on the list 25 years ago; of those 22 companies, 14 have changed their business direction dramatically during that quarter of a century
* 96% of DMA members are now employing the Web in their business operations, up from 90% last year; of that 96%, 44% are conducting sales via their sites, a number that closely matches last year’s survey
* 68% of those that offer online sales are reporting that they are doing so at a profit, up from 49% last year
* The digital economy accounted for 8% of America’s gross domestic product and has generated 25% of that total new growth in recent years, according to the Department of Commerce
* Revenue for online retailers over the holiday season were four times higher than those of 1998, and the number of total orders placed grew by 270%
* Last year, the number of adults who concurrently use the Web and watch television increased from 8 million to 27 million, up more than 300%
Wientzen added that people’s expectations of privacy regarding the online environment are different and of greater concern than those in the off-line environment.
“This is a big concern,” Wientzen said. “It’s one that can erode consumer trust and satisfaction. And I doubt if I need to remind anyone that when this trust erodes for any business, that company’s eventually going to feel it in the pocketbook.
“Wientzen reminded the group that the Federal Trade Commission will soon begin its third sweep of U.S. commercial Web sites and encouraged DMA members to follow its Privacy Promise instituted last July.
As for Internet taxation, Wientzen said a presidentially appointed advisory commission composed of government as well as business representatives, including a DMA-AIM representative, is studying the issue of remote taxation and is to make its recommendations to Congress in April.
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