Banking and shopping the biggest online hits

Online banking, shopping and news dominated online growth in Australia during 2001-2002, despite a rapid slowdown in Internet activity during the first half of the year, according to Nielsen//NetRatings.

Online banking grew by 28 per cent over the past 12 months, while the Nielsen//NetRatings online shopping index grew by 28.7 per cent. By comparison, the total online market grew by just 10 per cent.

Online news grew by 23 per cent, proving that the Internet's slowdown has not dampened enthusiasm for certain rich content.

"Australian Internet users are consolidating their online choices, with whatever is providing the most usefulness being singled out and retained," said Andrew Reid, senior analyst, Nielsen//NetRatings.

Online banking and finance attracted almost 3.6 million users in June 2002 while the online shopping attracted more than 3.4 million and online news almost 2.2 million.

"Online business models are re-focusing their efforts towards customer retention and building affinity. Where once Internet growth allowed each competitor to increase their market share without much effort, in a slowdown environment, the hard work begins to win customers over from their online competitors," said Mr Reid.

"We are entering a very competitive period in the evolution of e-commerce. Being innovative isn't enough anymore - consumers are demanding real price competition."