The IGN Data Hub - Nov 7, 2001

7 November 2001
Wireless Ads Vex Users

Most wireless Internet customers are not open to the idea of mobile advertising, although they would embrace such ads if the notices gave them some benefit, a recent study from the Cahners In-Stat Group found.

The group, a subsidiary of Cahners Business Information, found that 64 percent of wireless Internet users were cold to mobile advertising. The same sample, however, suggested that such ads would be more welcomed if they offered the customer special offers or discounts.

The director of Cahners' wireless research said the poll shows that digital advertising should be no different from more traditional ads.

"Just as sales drive customers to stores, special savings will lure consumers in, and will make the process of receiving mobile ads more palatable to users," Becky Diercks said.

The wireless Internet market is estimated to represent five percent of cellular phone users in the United States.

International Travel to Las Vegas Down

Statistics from the Las Vegas airport show that international travel dropped off 40 percent after the Sept. 11 terrorist attacks.

Travel from Japan and Mexico to McCarran International Airport decreased the most, reported the Las Vegas Sun last week.

Domestic travel, on the other hand, was down 27.7 percent to 1.9 million passengers from 2.6 million passengers, compared to last year's figures.

Air travel from Japan was so low in September that Japan Airlines has suspended service between Tokyo and Las Vegas. Mexico, the city's No. 3 source of visitors behind Japan and Canada, is starting to see a slight increase from September, but planes are still little more than half full. Swissport, the company that handles ticketing and ground operations for AeroMexico, said many flights have been outright canceled.

"People are scared to fly," Biridiana Vazquez of Swissport told the Las Vegas Sun. "We have had to cancel flights because there haven't been enough passengers."

Gamblers Aid Climate Study

Researchers from Stanford University looking for historical data on climate change recently found it in a very unlikely form--a gambling contest in Alaska.

Since 1917, the people of Nenana, Alaska, which is 50 miles west of Fairbanks, have bet on the exact time the ice on the local river, the Tanana, will break. To record the precise timing of the first crack, a tripod is set up on the ice. The tripod is connected by wire to a switch on a clock that is sitting on the riverbank. When the ice moves, the wire pulls the switch and turns the clock off. This year's winnings--$300,000--were shared by eight people who correctly guessed the right time.

The researchers, noting that the high stakes made for accurate record keeping of the breakup times, used the data along with weather records to show temperature changes over time.

Web Shoppers in Search of Convenience

Online shoppers prefer convenience to low prices, according to a survey released last week by Internet research firm Gartner.

The poll found that 81 percent of Internet shoppers said they valued convenience and 33 percent said price was more important. Gartner analyst David Schehr said that in today's downward economy, businesses might expect the opposite to be true.

"That is not to say that online merchants should begin to raise their prices," he said, "but alternatively, they should focus their energy on getting the customer in and out of the site as quickly and efficiently as possible."

Schehr suggested that retailers put their Web address on as many places as possible, such as shopping bags and print advertisements. Neil MacDonald, director of research of the section of Garnter that did the report, said merchants should view convenience as a way to add value to their products.

"Buyers can get the same product at a low price from any number of sites," he said. "In the end, the primary factor in choosing your site will be convenience."

Dot-Com Job Losses Up 60 Percent

Internet job losses rose 60 percent in October to 4,840, said outplacement consulting firm Challenger, Gray and Christmas this week.

Employment in the online industry has declined for the past five months. The main source of the job losses appears to be layoffs from online travel companies, many of which lost much of their business after the Sept. 11 attacks, and the waning interest in business-to-business services and software.

Consumer service firms, which include travel sites, cut 2,055 jobs in October, representing more than 40 percent of all job losses. The B2B services sector had 1,001 layoffs. In contrast, online retail businesses had only 15 jobs lost in October. John Challenger, chief executive of the outplacement firm, said online job losses affect almost everyone in the computer industry.

"As companies continue to cut back in online advertising, Web sites are reducing their business with vendors, he said. "As the entire Internet sector continues to struggle, so do the companies that provide the technology and hard-wiring."

Growth in Web Use Stalled

For the first time since Internet use began rapidly growing in 1994, the number of adults using the Internet has remained unchanged for the last year.

A Harris Interactive poll released Wednesday shows that the percentage of adults accessing the Internet from any location--including home, work and cyber cafes--has been static at 64 percent for the last 12 months.

Harris Interactive reports that 127 million adults have Internet access. Fifty-two percent can access the Web from home, and 28 percent can go online at work. The amount of adults who were online in 1997 was 30 percent; by 1998 that figure rose to 56 percent. Last year, 63 percent of adults used the Internet, but the one percent change from this year to last year is not statistically significant.

Web users continue to be socio-economically skewed, however. The Harris poll of 2,023 Americans older than 18 found that only 19 percent of those online had household incomes of $25,000 or less, compared with 25 percent of the U.S. population, and that only 38 percent had never been to college, compared with 52 percent of the adult population.