October 25, 2004

Infomercials

Pew Internet and the American Life Project closely analyzed almost 1,400 Internet surfers and users in the US during the summer of 2004, in an effort to better gauge the country's use of online rating systems.

Overall, 26% of adult Internet users in the US have used online rating systems, or about 33 million people. A look at the demographics of those users shows that most groups displayed the same general level of use (usually between 20% and 30%), with a few exceptions. Among the demographic differences:

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1) Men used online rating systems more than women by seven percentage points

2) Younger Internet users rated things online more than mature users (for example, 30% of Generation Y users had done online rating, compared to 11% of those over 69 years-old)

3) Hispanics did more online rating than blacks by five percentage points, with usage by whites falling in-between the two groups

4) Those with higher household incomes reported did more online rating than lower income households

5) College graduates and those who had completed some college used online rating systems more than high school graduates and non-high school graduates by about 10 percentage points.

Broadband users rated products online more than dial-up users.

Web sites use online rating systems for a variety of products and in a variety of ways.

Popular online auction site eBay lets users rate those who they do business with, helping potential buyers and sellers decide whether someone on eBay is trustworthy enough to do business with.

Other sites, like Amazon or Epinions, allow consumers to rate an almost limitless number of products, aiding other customers who are winnowing their purchase down to one product.

Similarly, sites like Citysearch lets users rate restaurants, bars, stores and other services, while the Internet Movie Database features movies ratings by those who have (it's assumed) seen a film.

Finally, sites like HotorNot.com offer anyone a chance to rate the physical attributes of anonymous people and assign a numeric score.

As this varied list demonstrates, these sites are not only useful as a source of buying advice, but can be a source of both entertainment - from reading humorous reviews to the tackiness of HotOrNot.com, for example - and as an engaging or even self-gratifying activity, such as when a user writes reviews and dispenses wisdom to others.

With so many applications and facets, use of online rating systems by US consumers is sure to rise even further.

Source: eMarketer