Just An Online Minute... Broadband Use Expected To Top 90% By 2008

Broadband penetration continues to surge, according to a new report by Magna Global. As of the end of last year, an estimated 55.6 million U.S. households, or 74% of all Internet households, connected to the Web via high-speed lines. That's up significantly from 2005's 43.9 million households and more than double 2003's 26 million.

As broadband use has surged, the number of dial-up connections has shrunk. Last year, just 19.7 million, or 26% of all Internet households, went online via dial-up.
What's more, broadband penetration is soon expected to surpass 90%, with an estimated 81 million U.S. homes connecting via high-speed connections by 2008.

At the same time, one in three households lacks Internet access altogether, according to Magna estimates. Even by 2008, when the vast majority of Internet homes will be on broadband, 18% of all U.S. homes still won't be online at all.

Still, with broadband use continuing to increase so quickly, it's no surprise that digital efforts are becoming more important to marketers. After all, broadband users not only tend to spend more time online, but they are also able to view more pages when connected. And, of course, broadband users can view video online, which opens the door to advertise using TV-like techniques.

Consider, The Wall Street Journal reported this week Nike is looking to move its account from Wieden + Kennedy, its agency since 1982, due to the shop's perceived weakness in digital advertising. "Despite its top-notch ability in every other department, Wieden has been slow to adapt to the Internet -- an important arena for a marketer as focused on the youth audience as Nike," the Journal writes.

Additionally, a recent survey of the Association of National Advertisers revealed that integrated marketing communications topped senior marketing execs' list of the most important issues they currently confront. Last year, integrated marketing communications ranked as the fourth most important issue.

Source: Media Post