People and the Internet - Who Uses The Internet? By Income

The panel examines the online population by income. Those with higher income do have a stronger presence online; however, it is important to see that the Internet has been embraced by every segment of the population.

Those with an income of $75,000 or more make up roughly 30% of online households. This figure is expected to fall to about 25% by 2005 (according to Jupiter Research) as individuals with lower incomes move onto the Internet. Between December 1998 and September 2001, Internet use by individuals in the lowest income range (those earning less than $15,000 a year) saw a 25% annual growth rate. Those in the highest range ($75,000 or more a year) saw an annual growth of 11%.

Is the average Internet user wealthier than the average American? Yes. But the field is becoming more level, depending on whose numbers you use. According to Jupiter Research, the average income of the online user has fallen from about $63,000 in 1996 to $59,000 in 2000. This is just above the mean income of $57,045 for all households. A study by Insight Express found the typical online household's income fell from $62,700 in 1996 to $49,800 in 2001, which is slightly more than the $42,148 median income for all households (according to the Census). Mediamark Research placed the median income of Internet users at $65,466 in Spring 2000. While the numbers may vary, they all make the same point: that income is becoming less of an impediment to participating on the World Wide Web. Similarly, the online population and general population are beginning to look identical. One is inclined to nod in agreement. It's everywhere, it's everywhere!

Sources: "Access Up, Divide Shrinks." Industry Standard, June 26, 2000, p. 186; Michael Pastore. "Online Customers Now the Average Consumer." Retrieved February 1, 2002 from the World Wide Web: http://cyberatlas.internet.com; "Online Households." Investor's Business Daily, November 27, 2000, p. A10; U.S. Department of Commerce, Economics and Statistics Administration, National Telecommunications and Information Administration, A Nation Online: How Americans Are Expanding Their Use of the Internet, February 2002.