Affluent Americans Power Internet Growth

The global standard for internet audience measurement and analysis, shows that the $150,000+ salary group grew by 31% from March 2003 to March 2004 – faster than all the other income groups. Next in line was the salary bracket $75-100,000 who saw a 27% rise to 26.3 million up from 20.7 million for the same period last year.

The lower income groups also experienced growth, with the lowest salary band growing faster than middle earning’s. The $0-25,000 group grew by 18% while the $50-75,000 managed an increase of only 11%.

However, as the table below shows, the income group $150,000+ represents only 7.8 million users, a small number when compared to the overall total of nearly 142 million. Although the middle income bands appear to have the slowest growth rate, they do infact have the largest number of internet users with 42.4 million in the $50-75,000 band and 37.8 million earning $25,000-£50,000.

Year-Over-Year Internet Access Growth By Income Level (US, Home)
	Unique Audience (000)
Income Level	March 2003	March 2004	Yearly Percent Growth (%)
$150,000+	6,010	7,873	31
$75,000 – 99,999	20,732	26,393	27
$100,000 – 149,999	14,356	17,786	24
$0 – 24,999	7,961	9,399	18
$25,000 – 49,999	33,074	37,826	14
$50,000 – 74,999	38,165	42,473	11
Source: Nielsen//NetRatings, April 2004

The report also shows that internet users with higher income’s prefer high-speed access. Those earning $150,000+ make up 69% of total broadband users.

On the other hand, nearly two-third of those with earnings between $25-50,000 log-on using narrowband, with just 36% using broadband. In the lowest salary band of $0-25,000 only 25% access via a high-speed connection.

Broadband vs Narrowband By Household Income (US, Home)
Income Level	Narrowband	Broadband
$150,000+	31	69
$100,000 – 149,999	39	61
$75,000 – $99,999	50	50
$50,000 – 74,999	54	46
$25,000 – 49,999	64	36
$0 – 24,999	75	25
Source: Nielsen//NetRatings, April 2004

Kenneth Cassar, director of strategic analysis said: “Cost plays a tremendous part in internet access patterns. While broadband has become much less expensive, it’s still a significant cost as compared to narrowband. Tighter budgets simply would not be able to afford the luxury of having broadband.”