Television Under-Delivers to Internet Households, According to Nielsen Study

August 12, 1998

Dulles, VA, August 12, 1998 - Households with Internet or online access watch noticeably less television --15% less (M-Su, 24 hours) - than do non-Internet/online households, according to a new industry research study released today and produced by Nielsen Media Research for America Online, Inc. The study, which examines television and Internet usage in the 5000 homes that participate in Nielsen's People Meter sample panel, indicates that households which subscribe to Internet or online services watch 8 hours less television per week compared to non-Internet/online households, or more than one hour less every day (M-Su, 24 hours). Although the percentage varies according to time and hour of day, during any 24-hour viewing period, overall, households that subscribe to online or Internet services watch markedly less television than non-subscribing households. Specifically: - During late afternoon, or Monday through Friday between 4:30 PM and 6:00 PM, television usage is 19% lower among Internet/online households; - During early fringe, or Monday through Friday between 6:00 PM and 8:00 PM, television usage is 16% lower among Internet/online households; - During the prime time daypart, or Monday through Friday between 8:00 PM and 11:00 PM, television usage is 6% lower among Internet/online households; and - During late fringe, Monday through Friday between 11:00 PM and 1:00 AM, television usage is 9% lower among Internet/online households. "This new Nielsen study underscores AOL's unique advantage compared to television, which is under-delivering to these upper-demographic Internet/online households so desirable to advertisers," said Bob Pittman, President and Chief Operating Officer of America Online, Inc., who is scheduled to deliver a keynote address today at Jupiter Communications' Online Advertising Forum. "It means that AOL, which is rapidly becoming more and more a mass-market medium, has an important role to play in marketing campaigns, especially those that typically run on television." "The findings from this study are consistent with other research indicating that online households are more upscale than their unconnected counterparts, and that upper-demographic homes, as a whole, watch less television than the U.S. average," said Paul Lindstrom, Vice President, Nielsen Media Research. AOL is the leader in interactive marketing, supported by one of the largest new media advertising sales forces in the world with offices in 10 U.S. cities. AOL's Interactive Marketing division has built major strategic advertising and electronic commerce partnerships across the company's multiple brands. It provides full services to its current advertising and marketing partner roster of more than 400 companies and brands, including seven of the nation's top 10 advertisers. For more information, visit the media space sites on AOL (Keyword: Media Space) or on the Web (www.media.com). Methodology Using its widely respected People Meter sample, the broadcasting and advertising industry's standard, Nielsen closely examined television and Internet usage of its panel members during January 1998, traditionally one of the highest-rated months for television usage. The in-tab panel included a total of 4471 households: 1006 with online or Internet access and 3465 without online or Internet access.

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