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Internet usage update UMR Omnibus results June 2012 Email:

[email protected]

Website: www.umr.co.nz

Facebook: www.facebook.com/umr.research

Methodology This report is based on questions asked over a period of thirteen years in the UMR omnibus survey. This is a telephone survey of a nationally representative sample of 750 New Zealanders aged 18 years or over. It has been running since 1991. The report compares results for questions on Internet use which were first asked in 1999. This date is important because New Zealand’s first widely available broadband service and Trademe were both launched that year. There is little question that the popularity of both of these would have contributed to changes in the way New Zealanders use the Internet. The margin of error for sample size of 750 for a 50% figure at the ‘95% confidence level’ is ± 3.6%.

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Key findings The proportion of New Zealanders using the Internet has increased sharply over the last 13 years, but the most dramatic changes are in how often we use it and what we use it for. In 1999 just under half of all New Zealanders (48%) had access to the Internet, but most did not use it very often. ► Just 13% used it every day, while 34% had access to the Internet but did not use it every day. ► Only 8% had bought something over the Internet using a credit card, and 75% reported that they would be uncomfortable with buying something over the Internet using a credit card.

Today, 84% have Internet access. ► 55% use the Internet every day, almost five times as many as in 1999. ► 62% have bought something over the Internet using a credit card. ► On the other hand, 45% remain uncomfortable with buying over the Internet using credit cards. The effect of this is reduced by the fact that other payment options (especially debit cards) are more available now than they were in 1999.

The fact that people use the Internet much more frequently likely reflects improved Internet speeds and changes in what people can do on the Internet. ► Telecom introduced New Zealand’s first broadband Internet service in 1999. 2009 information from Statistics New Zealand showed that 63% of households had broadband Internet connections by this time. ► Trademe was launched two months before the 1999 survey. When Fairfax purchased the online auction site in 2006, they estimated that it accounted for 60% of all Internet traffic in New Zealand. ► 31% of New Zealanders now use Facebook every day, and 98% of those who are on any social networking site are now on Facebook. Social networking in its current form barely existed for New Zealanders in 1999, with MySpace launched in 2003 and Facebook established in 2004.

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Key findings In 1999 men were clearly more frequent Internet users than women. The gap in the 2011 results is much reduced. ► 59% of men and 51% of women use the Internet at least once a day. ► 60% of men and 64% of women have made a purchase over the Internet using a credit card. In 1999, just 4% of women had made such a purchase.

There is still a discernable gap between Aucklanders and people living in provincial areas. ► The number of provincial residents using the Internet every day is still not quite a majority (49%). This compares with 60% of Aucklanders. ► 62% of Aucklanders and 60% of provincial residents have made a purchase over the Internet using a credit card. The equivalent figures in 1999 were 10% for Auckland and 4% for provincial areas.

Although older people remain less likely to use the Internet, the numbers of over 60 year olds who do so has increased dramatically. ► The proportion of over 60 year olds who use the Internet every day has increased almost tenfold since 1999 (from 4% to 38%). ► The proportion of over 60 year olds who have made a purchase over the Internet using a credit card rose from 4% to 42%. ► The most frequent Internet users are now 30-44 year olds (65% use it every day, and 75% have made a purchase using a credit card).

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Internet access Do you have access to the Internet, either at home or at work?:

Yes, 90%

Yes, 48%

1999

2012

Base: All respondents (n=750)

5

Internet access Do you have access to the Internet, either at home or at work? And about how often do you visit websites on the Internet? Have access to Internet: 48%

1999

13

21

13

52 Once a day Once a week or more Less than once a week Do not use internet

Have access to Internet: 90%

73

2012

0%

20%

40%

14

60%

80%

3

10

100%

Base: All respondents (n=750)

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Internet access Do you have access to the Internet, either at home or at work? [If yes] About how often do you use the Internet?:

Use Internet at least daily 79 75 70

76 69

83 77

47 1999 2012

15

12

60 +

45 -5 9

30 -4 4

30

4

Un de r

Fe m al e

9

M al e

Pr ov in cia

l

9

Au ck la nd

19

17

16

Base: All respondents (n=750)

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Internet purchases with credit cards Have you made a purchase over the Internet using a credit card?:

Yes, 62%

Yes, 8%

1999

2011

Base: All respondents (n=750)

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Internet purchases with credit cards Have you made a purchase over the Internet using a credit card?:

Purchases over the internet with credit cards

75 62

60

69

64

60

56

30 Un de r

Fe m al e

10

6

4

60 +

10

4

M al e

l

4

30 -4 4

12

Pr ov in cia

Au ck la nd

10

45 -5 9

42

1999 2011

Base: All respondents (n=750)

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Level of comfort with Internet card purchases

Generally how comfortable would you be with purchasing products directly from the Internet using a credit card?: Total comfortable: 20%

1999

5

Total not comfortable: 75%

15

5

22

53

Total not comfortable: 45%

Total comfortable: 51%

2011

17

0

34

20 Very comfortable

4

40 Fairly comfortable

21

60 Unsure

Not that comfortable

24

80

100

Not comfortable at all

Base: All respondents (n=323)

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