Friday June 1, 2001:

f2, The Fairfax Interactive Network, today released the first comprehensive survey of its users looking at the role of the Internet in their everyday purchasing behaviour.

The survey reveals a growing relationship between using the Internet and everyday purchasing behaviour - online and off.

Mr Nigel Dews, CEO of f2, said that the survey debunked three key Internet myths, leading to a major conclusion regarding the Internet as an advertising medium:

"Myth Number 1 is that advertising on the Internet is a waste of time unless you want to drive people to a website that does e-commerce. Our survey shows is that 96% of f2 users are actively seeking information that will influence their purchasing decisions.

"Myth Number 2 is that the Internet will never be a major source for commerce. Our survey shows that the more people are online, the more they come to trust it and rely on it for making purchasing decisions. 52% of recent (past 1-2 years) Internet users do their purchasing research online - as opposed to 80% of experienced (4-5 years) users.

"Myth Number 3 is that people will use the Internet to buy good because they expect them to be cheaper. 83% f2 survey say that it is convenience that is the strongest motivator fur using the Internet to make purchasing decisions. Only 32% of f2 users cite price as the key factor.

"Through this very large statistical survey of our users, we have now established a serious inter-relationship between the Internet and purchasing decisions made by consumers. This validates the importance of the Internet as a venue for advertising to a significant consumer audience."

• 80% of f2 users see the Internet playing a regular and influential role in keeping them better informed as consumers.
• The ability to comparison shop between suppliers and products is one of the main motivators.
• Men and women value the Internet's role in their purchasing behaviour differently. 70% of women reported a benefit in not having to deal with salespeople.
• Users were more likely to conduct online research into their intended purchases of airline tickets, holiday accommodation, books, entertainment tickets, electronic goods and music than any other categories but what categories of goods they preferred to buy online was different.
• Categories that have the most potential for online sales growth include Holiday Accommodation and Packages, Electronic Goods, Homewares and Pharmaceutical goods.

"The survey demonstrates to advertisers that the Internet should be valued because it is where people are making their short-lists before purchasing. It is not just about whether they complete the transaction online," Mr Dews said.

"It also confirms that the f2 Network is coming into its own as the place where Australian Internet users get online to become better informed and make better informed purchasing decisions."

The sample size of 4,160 was weighted using unique visitor figures from Red Sheriff to ensure it was representative of f2's 2 million+ monthly users.

The survey also reconfirmed that the f2 Network attracts people with prime demographic and behavioural characteristics. Of the f2 users surveyed, 68% have completed tertiary education, 69% have a household income of $50,000 or more and 85% have purchased something online last year.

"No other network of websites in Australia is attracting such a high proportion of the hard to reach AB audience, who are consistently logging on to f2. This audience trend is a significant cornerstone of our marketing and strategic growth," Mr Dews said.

View full survey results (to view this ppt file you need powerpoint viewer)

Contact:
Bruce Wolpe, Fairfax, 02 9282 3640

Note to editors

f2, the Fairfax Interactive Network, is a leading online publisher that is at the forefront of adapting new technologies, such as streaming video and audio, to augment its content and coverage. All of the f2 network sites and its partner’s sites are accessible through its home page at f2.com.au.