timone NetMarketing
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Marketing in the internet – as seen from Italy


No. 70 – February 25, 2004


 
Other articles on similar subjects
are published in English
in the Offline column
 

 

loghino.gif (1071 byte) 1. Continuing growth of the internet


Of course we should never forget that there is no “certainty” in data and statistics. They are never totally accurate and they cam be misleading. However hostcount data have proven, over the years, to be an effective tool in understanding the growth and evolution of the internet.

As regular readers know, in the last four years the basic analyses are no longer in this newsletter. They are in the data section of this site. But, as was done in previous periods  (see, for instance, issues 62 – February 2002 – and 68 – April 2003)  I am placing here a few of the key data, which will remain as “historical reference” when the documents in the data section will be updated.

The Internet Domain Survey, that for fifteen years was published every six months, did not appear for the first half of 2003. On February 10, 2004, data became available for year end 2003. While in 2002 growth appeared to be slower, now it seems to be more in line with previous years. We don’t know (but that isn’t particularly relevant) if there was a real change in speed or 2002 figures were somewhat “underestimated”. Trends always need to be understood over relatively long periods – more than one, or even two or three years.

One fact is clear: the internet is continuing to grow – and quite fast. The number of hosts increased 58 percent in two years worldwide, 51 percent in Europe. The exaggerated projections that were widely accepted ten or five years ago were never matched by facts. On the other hand, the dismal views that prevailed after the deflating of the financial bubble were equally unrelated to the actual growth of online activity.

It’s unwise to attempt any projection or forecast. But there is obvious potential for further growth, with no “threshold” in sight at this stage of development.


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loghino.gif (1071 byte) 2. New worldwide data


The analysis of international data shows that, with some slower or faster phases, there is strong growth of the internet worldwide. These are the numbers from 1994 to 2003.

  Number
of hosts
yearly
growth
1994 5,800,000 + 119 %
1995 12,900,000 + 104 %
1996 21,800,000 + 104 %
1997 28,700,000 + 52 %
1998 42,200,000 + 46 %
1999 72,400,000 + 68 %
2000 109,600,000 + 51 %
2001 147,300,000 + 35 %
2002 171,600,000 + 17 %
2003 233,100,000 + 26 %

It’s obvious that, with larger numbers, growth percentages decrease. But there are changes in speed that don’t follow any coherent pattern. Overall growth of the internet is the combination of many separate and partly unrelated factors.

The situation remains almost unchanged in the broad picture by large geographical areas.

large areas

There are some changes compared to two or three years ago. Asia has been growing a bit faster that Europe, central-south America has overtaken the Pacific area. But these are small variations compared to the overall picture.

In 1999 there were six contries worldwide with over a million internet hosts (two in Europe). In year 2000 they were ten (four in Europe). In 2001 thirteen (six in Europe). In 2002 seventeen (nine in Europe). In 2003 twenty – thirteen in Europe, four in the Americas, two in Asia and one in Oceania.

The countries with over two million hosts were two in 1999, five in 2000, eight in 2001, eleven in 2002 and 2003 (five in Europe). With over three million hosts they were two in 2001, eight in 2003 (four in Europe).

The next chart shows figures for the 35 countries (of 240) with over 200,000 internet hosts.

  Number of hosts
December 2003
% growth
in a year
% of
  total  
Per 1000
inhabit.
United States 147,116,789 + 40.2 63.2 522.8
Japan 12,962,065 + 40.0 5.6 102.1
Italy 5,469,578 + 41.5 2.4 97.1
United Kingdom 3,715,752 + 26.5 1.6 62.2
Germany 3,421,455 + 17.0 1.5 41.6
Netherlands 3,419,182 +   8.6 1.5 215.5
Canada 3,210,081 +   2.6 1.4 106.1
Brazil 3,163,349 + 41.4 1.4 18.6
Australia 2,847,763 + 11.1 1.2 167.8
Taiwan 2,777,085 + 28.0 1.2 131.8
France 2,770,836 + 28.4 1.2 47.4
Spain 1,694,601 n.a.   0.7 41.4
Sweden 1,539,917 + 27.3 0.7 173.4
Denmark 1,467,415 + 27.2 0.6 274.3
Belgium 1,454,350 + 38.2 0.6 142.0
Mexico 1,333,406 + 20.4 0.6 13.7
Poland 1,296,766 + 53.7 0.6 33.6
Finland 1,259,763 +  3.3 0.5 242.5
Switzerland 1,018,445 + 40.8 0.4 139.8
Norway 1,013,273 + 59.8 0.4 224.1
Austria 982,246 + 17.2 0.4 109.6
Russia 800,277 n.a.   0.3 5.5
Argentina 742,358 + 46.1 0.3 20.6
Israel 634,001 + 72.9 0.3 108.0
Hong Kong 591,993 + 48.7 0.3 88.3
Singapore 484,825 + 42.6 0.2 148.6
South Korea 475,834 n.a.   0.2 10.5
New Zealand 474,395 +  9.6 0.2 126.9
Hungary 365,221 + 43.5 0.2 35.8
Czech Republic 362,083 n.a.   0.2 35.2
Turkey 359,500 + 63.1 0.1 5.7
Portugal 299,923 +   2.9 0.1 29.0
South Africa 288,633 + 16.8 0.1 6.7
Greece 245,650 + 21.9 0.1 23.9
Chile 202,429 + 49.8 0.1 13.1
Total 233.101.491 + 35,8   14,8


This “pie” graph shows the situation, at the end of year 2003, for the eleven countries with over two million internet hosts.


Internet hosts in 11 countries
countries worldwide with over two million hosts
 

11 countries


Excluding the United Sttes, this is the picture for the other 19 countries with over a million internet hosts.


Internet hosts in 19 countries
countries worldwide with over a million hosts   (US excluded)
 

19 countries


The next graph shows density (hosts per 1000 inhabitants) for the 24 countries (excluding the United States) with over 500,000 internet hosts.


Internet hosts per 1000 inhabitants in 24 countries
 
density graph

And this is the situation seen as a world map.


Internet hosts per 1000 inhabitants

world map
 
In addition to the map of Europe, that appears also in point 3 of this issue,
in another analysis there are similar maps of Asia and Latin Anerica.


This is the situation in relation to income (gross national product) in the 24 countries (excluding the US) with over 500,000 internet hosts.

Internet hosts in relation to income (GNP)
in 24 countries

 
income graph

More detailed analyses, with comments onthe evolution, are in the inhternational data document.

Another analysis available on this site explains the growing presence in the internet of two language communities (Spanish and Chinese). In that context there is an approximate evaluation of the nine most active languages in the net.


Most active languages in the internet
 
languages

English is obviously doiminant, but eight other languages have a relevant presence online. Over time, Spanish is likely to become the second largest language in the internet (it’s already in that possition if we consider the number of countries in which it is spoken.)  Chinese would have a larger presence than Japanese if restricrions were lifted in mainland China.


A new analysis of the international situation will probably be available in the first quarter of 2005.

 

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loghino.gif (1071 byte) 3. New European data


There are some relevant shanges in Europe compared to the situation that was summarized in issue 68 (April 2003). As usual, a more detailed analysis is in the European data document.

It’s quite surprising that hostcount data show Italy as the leading country in Europe. It’s safer to think that it may be in third place, after the UK and Germany. But the continuity of the development in the last three years shows that this isn’t just a fluke. In any case, trends need to be reviewed over time and it takes more than a few years to understand their meaning.

The total European hostcount is getting close to 34 million. If the current trend continues, it will be approximately 40 million by the end of 2004. This is an update of the situation in the 25 European countries with over 100,000 internet hosts.


  Number of hosts
December 2003
% of
Europe
Per 1000
inhabit.
Italy 5,460,578 16.2 97.1
United Kingdom 3,715,752 11.0 62.2
Germany 3,421,455 10.2 41.6
Netherlands 3,364,044 10.0 215.5
France 2,770,836 8.2 47.4
Spain 1,694,601 5.0 41.4
Sweden 1,539,917 4.6 173.4
Denmark 1,467,415 4.4 274.3
Belgium 1,454,350 4.3 142.0
Poland 1,296,766 3.8 33.6
Finland 1,259,763 3.7 242.5
Switzerland 1,018,445 3.0 139.8
Norway 1,013,273 3.0 224.1
Austria 982,246 2.9 109.6
Russia 800,277 2.4 5.5
Hungary 365,221 1.1 35.8
Czech Republic 362,083 1.1 35.2
Portugal 299,923 0.89 29.0
Greece 245,650 0.73 23.9
Ireland 155,467 0.46 42.9
Romania 141,202 0.42 6.3
Ukraine 130,569 0.39 2.6
Estonia 113,154 0.34 82.8
Slovakia 111,188 0.33 20.7
Iceland 106,296 0.32 381.4
European Union 27,024,000 82.9 74.8
Europe 33,708,000   48.0


When ten more countries join the European Union, the EU share of the total European hostcount will grow from 83 to 90 percent.

This “pie” graph shows the situation, at the end of year 2003, for the 15 European countries with over 500,000 internet hosts.


Internet hosts in 15 European countries
countries with over 500,000 hosts
 

15 countries


The next graph shows density (hosts per 1000 inhabitants) in the 25 European countries with over 100,000 internet hosts.


Internet hosts per 1000 inhabitants
in 25 European countries

density graph

And this is density seen as a map of Europe.

Internet hosts per 1000 inhabitants

Europe


This the situation in relation to income (gross national product) in the 25 European countries with over 100,000 internet hosts.

Internet hosts relation to income (PNL)
in 25 European countries

gnp graph

The situation continues to evolve, but some “traditional” facts remain, such as the strong internet activity in Finland. There is relevant growth in several Eastern European countries.

The Netherlands had considerable growth in recent years, while some of the largest countries in Western Europe don’t have a presence online in proportion to the strength of their economies.

 

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loghino.gif (1071 byte) 4. People online in Italy


Statistics on the number of people using the internet aren’t very reliable. But some historical sequences are reasonably choherent and relevant.

These two graphs are only a short summary of a much more extensive analysis of who uses the internet in Italy

The first graph shows evolution from 1997 to 2003.


Internet “users” in Italy 1997-2003
numbers in thousands
1997-2003

Growth was fast until year 2000, then slower, but it appears to be improving in the second half of 2003. From the beginning to 1999 internet use was predominatly in the workplace, but home use has been expanding in the last four years.

The second graph is based on relatively frequent use of the net (“at least once a week”) and shows changes from January 2001 to January 2004.


Internet “users” in Italy
January 2001 – January 2004

numbers in thousands
2001-2003


There are ups-and-downs (not always related to sesonal factors) and the expansion of internet use isn’t as fast a some naive projections suggested a few years ago. But it’s continuing to grow in Italy – as in most of Europe. There is condiserable potential for additional growth, depending mostly on cultural evolution and on improvements in the quality of content and services offered online.

 

 

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