Thoughts on Internet User Demographics
Monday, October 16th, 2006Compiling statistics on internet user demographics is a relatively young field. The information that is available publicly is quite limited. Specialized demographic information is expensive, compiled by research professionals for specific industry users. Problems with survey based user information include self-selection, which refers to the lack of control over who responds to any given survey. That’s why being aware of consumer statistics and trends is important, but personally knowing your users much more so.
Interpretation and forecasting is, and always will be, as much art as science. The entrepreneur may consult a brilliant analyst, although nowhere near as often as the businessman will, but the analyst can also learn much from the seasoned entrepreneur. Looking at this kind of data from the vantage point of web development vs real estate development, its potential application does increase. In real estate a typical urban development takes years, whereas on the web a new destination or add on format can be created in weeks. The traditional skills of an entrepreneur include instant problem solving and the ability to turn on a dime, and I see interpretation of close-to-real-time consumer data as an important skill and another emerging specialty.
Any new business venture must know their marketplace, and that knowledge includes size and number of competitors as well factors such as barriers to entry. My own experience is that there is rarely a similarly detailed snapshot from the target user’s pov. New businesses on the web are started mostly by advanced users for each other, but offering a product or service to consumers who are already getting lots of what they want online is a pretty crowded place to be. I’m seeing a lot of the ‘we’ll do it better’ approach, and some of the ‘we’ll also do it a bit differently’. This is fun for core users until it hits a saturation point and therefore a fatigue level. Then comes ’shake out’ time.
Starting from the target market pov, and specifically looking at things like competitors and barriers is an alternative approach. There are many millions of computer users who represent a desirable market for any number of things, yet who have not yet been compelled or convinced to fill their needs or desires electronically instead of the way they always have in the real world. Can this be done? Is it worth bothering with? Yes. Millions came here already because Amazon or eBay made it easy or attractive enough. Millions more are intrigued by some of the potential benefits, yet hesitate or stop because of barriers. What are those barriers and how to remove them is worth more careful attention, and not only from an ecommerce perspective. The goal of enriching society through open and connected knowledge bases should be equally targeted beyond core users.
There are many individuals and groups putting time and attention into important issues such as privacy, safety and ethics, and these collective efforts are very important. They’d be dramatically enhanced if every web citizen contributed more time and attention to them, but I also think that the single most effective contribution all web professionals can make in this regard happens to be the same place where major growth and opportunity resides which is in increasing the scope of what is here through increasing the user base.
As an example relating to safety, security and trust, many new sites and services devote significant attention to ensuring the security and safety of users, but how often does a potential user, not knowing any of this, hesitate and back out because they don’t feel safe and secure? Learning how to stay safe on the internet, if you aren’t a tech person, shouldn’t be anywhere near as hard as it is. This point is as relevant to our kids, who aren’t all going to be techies, as it is to 50 year olds. It’s actually more relevant to them, because it is the developers building for older business clients who are paying the most attention to issues such as trust and security.



