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Internet Impact on Offline Spending at All-Time High

by Lester Volt

Laptop Battery Survey results shows that online product research conducted by consumers the past year was responsible for driving $180.7 billion in offline spending.If you would like to receive late breaking news on tech stocks covered by AXcess News then you need to subscribe. By joining, you can stay ahead of the pack and receive the latest news in your email in-box first.Print This Page

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Thinkpad Oct 6, 2004 (AXcess News/SP) Milwaukee - Survey results shows that online product research conducted by consumers the past year was responsible for driving $180.7 billion in offline spending, compared to $106.5 billion in direct online consumer spending.The American Interactive Consumer Survey was conducted by The Dieringer Research Group. The survey of 3,000 U.S. adults covered online and offline purchasing behaviors and impacts during the 12-month period ending the second quarter this year.

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Microsoft Thomas E. Miller, senior consultant at The Dieringer Research Group, said in a statement released Wednesday, "The new annual spending data indicate that at least $1.70 is spent offline after doing online research for every consumer dollar spent directly online. In reality, the offline spending impact is far greater because many consumers also go online to research financial and insurance products that are not reflected in the retail spending total."

laptop computers is driving strong sales for notebook computers, according to the latest quarterly sales figures from the research firm IDC, which reported a 37% computer sales for the second quarter, compared with a year earlier. In the U.S., laptop sales grew 17.7%, while sales of desktop computers and servers fell 4%. The New York Times ( 10), CNET ( 10)

Laptop Computers According to the new research, nearly 15% of total U.S. retail spending (excluding gasoline, food services and inventories) is currently influenced altogether by the Internet, a much higher ratio than is commonly cited.

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Laptop Computer The study also found that Internet-influenced offline spending is now growing faster than direct online spending. Internet-influenced offline sales grew 31% last year and direct online sales grew 14%, while total U.S. retail spending grew only 5% during the comparable period.Advertisement"The data confirm that the Internet's role as a consumer product information utility is much larger than its role as a direct selling medium," Miller explained.Technically, retail spending data does not really capture all the ways in which the Internet impacts the U.S. consumer economy. For example, the survey also found that 17% of all U.S. consumers who opened new financial service accounts or took out new insurance policies the past year used the Internet in their product decision-making process. "Those decisions by online consumers affected literally billions of dollars in financial services revenues, making the total dollar impact of online information far greater than anyone is talking about," concluded Miller.

"Computer industry analysts estimate that some 60 percent of all corporate data exists only on desktop and laptop computers, " said Walter Scott, CEO of Acronis. "Incorporating Acronis True Image with New Mexico Software backup server is the ideal solution to capture that corporate data and ensure that it is not lost. While traditional server backups are effective for protecting server data, every company should have a combination of server and workstation backup plans."

Desktop Computer Saturday, a story was released covering the move by online investors into eCommerce stocks that signaled a revival in the Internet sector.

Notebooks Popular search portals, Yahoo! (NASDAQ: YHOO), MSN (NASDAQ: MSFT) and Google (NASDAQ: GOOG) have shown an upward trend in their users online search habits. The Dieringer Research Group's survey supports those portals' consumer search results.

Lenovo Communicate.com Inc. (OTCBB: CMNN), which was featured in Saturday's story, may be an even better testiment to the Survey's offline consumer buying habits due to its strengths in travel and consumer goods online.In mid-August, Communicate.com released its second quarter results, reporting $733,107 in revenue for the 2nd quarter compared to $173,895 for the same period in 2003, an increase of 320%. For the second half, CMNN came in with even more impressive results, reporting revenues of $1,229,216 compared to $255,052 for the same period in 2003, an increase of 380%.

Hard Drive The story pointed out that Communicate.com's larger eCommerce competitors like TravelZoo (NASDA: TZOO), Orbitz, Inc. (NASDAQ: ORBZ) and Priceline.com, Inc. (NASDAQ: PCLN) were all overvalued compared to Communicate.com when viewed from a P/E ratio.Shares of Communicate.com were off 4 cents Monday in heavy trading following news released by the company Friday that it had recieved its final payment from the sale of four one-word domaines for $1 million. Investors who had rode the eCommerce company's shares up from March when it was trading at 41 cents were taking profits, building a new leg to its price floor at 54 cents.

Travelstar Source: Source Press

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