The IGN Data Hub - Mar 29, 2000

Cybercrime Hits Often and Costs Big Bucks

Internet businesses, in recent years, have seen a huge increase in criminal attacks, including denial of service, virus manifestations and outright theft of information and money. In fact, FBI director Louis Freeh told a Senate subcommittee this week that cybercrime investigations have doubled since last year, according to Reuters.

During 1998, the FBI opened 547 computer intrusion cases and closed 399 of them, Freeh testified. Last year, the organization opened 1,154 cases, and closed 912.

Cybercrime isn't cheap. The Computer Security Institute surveyed 273 corporations that reported at least $265 million in cybercrime costs. Last year, 163 respondents reported $123 million in losses.
www.gocsi.com

TV Ads Losing Ground to the Internet

U.S. advertisers will probably spend $32.5 billion by 2005 for advertising online, compared to $19.2 billion on network television and $23.8 billion on network cable, according to E-Commerce Times. The article is based on information provided by the Myers Group LLC, a U.S. media research and consulting firm.

Online ad revenues are likely to increase 80 percent this year, Myers Group CEO Jack Myers told the publication , with a 40 to 60 percent increase each year through 2005. In addition, worldwide online advertising spending is expected to surge, with $5.25 billion this year and topping $45.5 million by 2005.

E-Commerce Providing Big Boost to U.K. Bottom Line

Online businesses will have a profound effect on the British economy according to NewsEdge Corporation. Information from the Center for Economics and Business Research show that even though the effect is negligible now, e-commerce is expected to boost Britain's gross domestic product 0.6 percent a year over the next 20 years.

Dot-Coms Face Challenge from European Clicks-and-Mortars

It used to be that online retail firms were making money hand-over-fist while beating out their real world competitors. That's set for a change, as more and more Western European retailers branch out to the Web. In fact, online businesses only maintain a 51 percent majority over their brick-and-mortar competitors, according to Jupiter Communications.

In addition, Jupiter reports that online commerce revenues should increase eightfold, rising from EUR 8 million in 2000 to EUR 64 billion by 2005. Plus, the number of online buyers will more than quadruple, reaching 85 million by 2005--up from 20 million in 2000. Consumers' unquenchable thirst for more variety of products and services that can be bought online is spurring the growth.

Even though current dot-com retailers have kept up well, there is no guarantee that they'll maintain their lead. "Selling low-ticket items with simple transactional sites and discounting won't develop the loyal customers or good supplier relationships that retailers need to become profitable in the long run," explained Evan Neufield, vice president of international research for Jupiter.

The real-world skill of building good supplier relationships is even more crucial as volumes rise and an increasing number of premium and branded products are sold online," said Nick Jones, an analyst with Jupiter's European research team. "As online shopping becomes mainstream, brick-and-mortar players have the opportunity to build on their off-line experience. Switched-on retailers can make the most of their existing relationship with suppliers to put attractive product propositions in front of online shoppers."
www.jupitercommunications.com

Smaller Business Need Firewalls, Too

Computer firewall sales worldwide should see revenues of at least $1.6 billion, and may even top $2.1 billion, reported NewsEdge Corporation. Figures from International Data Corporation indicated that the most promising market for firewall sales is small businesses, of which only 14 percent have installed any kind. Forty-one percent of medium-sized businesses and 50 percent of large businesses have already installed firewall protection. It's unlikely that the firewall market will reach saturation before 2004, IDC added.

Bigger and More Diverse Online Usage Reported in the U.S.

More than half of all U.S. adults are online, according to The Strategis Group. In total, 106 million adults use the Internet either at home, work or both, while women account for 52 million of that number.

"The Internet is going mainstream in two ways," explained John Zahurancik, vice president of broadband studies for The Strategis Group. "First, it is often the primary choice for communication, entertainment and commerce."

"Daily home use of the Internet has skyrocketed in the past year, increasing 50 percent. Fifty-seven million adults - 28 percent of the population - now use the Internet from home every day. For many Americans, the Internet is now an essential part of their daily lives."

"Second, Internet users are increasingly a reflection of mainstream America, with more than half of all U.S. adults now online, more women online, and the median household income of Internet users steadily falling. The Internet is less and less the domain of an information elite," he added.

Customer Satisfaction is More Important Than Site Availability

E-commerce sites are rapidly reaching a point of diminishing returns, which means that businesses should concentrate on customer satisfaction, according to Forrester Research. "Based on average transaction rates and dollar amounts, Forrester believes that most companies should target 99.9 percent availability for their websites because there is little point in investing more funds in infrastructure than the site returns in revenue," explained a senior analyst with Forrester. "Acquiring new customers in 2004 will require millions. The best bet for online companies is to dazzle customers with a quality shopping experience now - before it's too late. "

Forrester recommends that companies apply load and usability testing to their site design to improve visitors' experiences, plus provide shoppers intuitive navigation while making it easier for returning customers to pick up from where they left off. Their research also shows that speed and efficiency during transactions is critical.
www.forrester.com

Online B2B Advertising Leads the Pack

Business-to-business advertising is leading the pack of industries advertising on the Internet, reported AdRelevance. Their newest finding revealed:

• The number of B2B companies advertising online has increased 58 percent over the last four months, compared with an average of only 17 percent for all other industries.
• In the same period, B2B advertisers have increased their ad spending by 66 percent.
• During Q4 1999, B2B banner advertising accounted for about 1.9 million ad impressions, or 5 percent of all online advertising.
• Most B2B advertising on the Internet focused on technology: 62 percent featured products and services including Web design, e-commerce security, network hardware, domain registration and related business technology.