Internet use in RP expanding to lower income groups
ABS-CBN news
by DAVID DIZON, abs-cbnNEWS.com | 03/26/2009 12:20 PM
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More and more Filipinos from the lower income sectors in urban Philippines are using the Internet as cheaper broadband and lower-priced computers drive down costs of accessing the Web, a survey by the Nielsen Company and Yahoo Philippines revealed Thursday.
The survey, conducted from October to November 2008, showed that 85 percent of all online users from total urban Philippines are from the Class D and E socioeconomic class while the rest are from Class ABC.
Jay Bautista, Nielsen Company executive director for media, said Internet usage in urban centers has grown from 20.8 percent in the first quarter of 2008 to 28.3 percent by the end of last year. Overall, a total of 28 percent of the estimated 35 million Filipinos in urban centers nationwide are regular Internet users with five percent of users saying they access the Internet everyday.
Bautista said the Yahoo-Nielsen Net Index Initiative is the first ever in-depth study of Filipino Internet users across 22 major cities in the Philippines. The survey used multi-stage probability sampling and was conducted using face-to-face interviews of 1,200 respondents aged 10 and above across all economic classes. All the respondents used the Internet at least once a month.
The study showed that 34 percent of total Internet users in the country have a computer at home while only 27 percent said they have home Internet access. Majority of Class ABC1 respondents said they have a computer at home (88%) and have home Internet access (77%).
On the other hand, only 21 percent of Class DE respondents said they have a computer at home while 15 percent said they have home Internet access.
Cheaper access
Bautista said lack of a PC or Internet access at home is no longer a hurdle for most Filipinos to access the Internet.
He said aggressive marketing campaigns by Internet service providers as well as improved local infrastructure has made it easier for Filipinos of all socioeconomic classes to access the Internet. "From dial-ups, we are now able to access the Internet via broadband in our homes. We also have wireless hotspots all over the landscape. Access is improving because of the infrastructure and the cost for access has also gone down," Bautista told abs-cbnNEWS.com.
He said Internet cafes have become an important access point for Filipino Internet users with 71 percent of the country’s estimated 20 million Internet population saying they have accessed the Internet through e-cafes in the past three months. He said
Great equalizer
He said affordability of access, either through Internet cafes, cheap netbooks and PCs, and cheap broadband is increasing the local Internet user base. He added, however, that Internet cafes are clearly favored by majority of the youth and people in the D and E socioeconomic classes.
“Internet cafes have become the great equalizer for all social classes in accessing the Internet. Forty-seven percent of all Internet time by Filipino Internet users are spent in Internet cafes. It’s the only medium that allows you to communicate and do research and even entertains you for 10 to 15 pesos an hour,” he said.
The survey showed that 71 percent of Filipino Internet users accessed the Internet through Internet cafes in the past three months, 27 percent said they accessed it at home, seven percent said they accessed it at the office, and seven percent accessed it in school.
Eighty-one percent of Internet users from Class CDE said they are regular Internet café users compared to 21 percent from Class ABC1 and 27 percent from Class C2.
Young Internet base
The survey also revealed that the younger generation have become early adopters of the Internet. At least 49 percent of Internet users in the Philippines are ages 10-19 while 32 percent are ages 20-29.
Fifty-percent of Filipino Internet users ages 10-19 years old said they accessed the Internet at least once in the past month.
The survey also showed that Internet use in the Philippines is not restricted just to the big cities like Metro Manila. “For example, 35 percent of Filipinos in Cagayan de Oro have accessed the Internet in the past month,” Bautista said.
Breakdown of users Past Month Internet Access
10-19 years 50 percent
20-29 years 41 percent
30-39 19 percent
40-49 12 percent
50+ 3 percent
The survey also showed that Filipino Internet users are more likely to be opinion leaders and early adopters compared to traditional media consumers. They are likely to be individualistic, trend conscious, willing to pay for quality products, and are tech enthusiasts.
"These Internet users like to stand out in the crowd. They think it's important to keep looking young and to keep up with the latest fashion. They also want to own quality items and pay extra for these goods. People even come to them for advice before buying goods," Bautista said.
Online gaming, social networking drive usage
Bautista said activities of Filipino Internet users can be categorized into five major areas: information (research), communication (instant messaging, e-mail), networking (social networks, online communities), entertainment (onling gaming, music downloads, watching online videos), and e-commerce (online transactions, banking).
"The motivations of going online have expanded with the most common online activities being e-mail, instant messaging and search," he said.
The survey showed that online gaming and social networks are becoming more common online activities for local Internet users. The survey said 53 percent of Internet users play online games. They are likely to be males and below 20 years old.
Bautista said social networks have become an important tool in communicating with friends and family. Fifty-one percent of local Internet users said they access social networking sites every month and 92 percent said they have a Friendster account.
Asked what drives them to social networking, most Filipino Internet users gave several reasons - it's a leisure activity, it's a chance to keep connected with friends and family, it keeps them in charge of media whether its photos, videos or blogs.
"It's no longer an outlet for passive engagement but for interaction and involvement among consumers," Bautista said.
The survey said 42 percent said they read a blog in the past month with at least one in three Filipino Internet users saying they have a blog.
The survey also showed offline texting is moving online. The survey showed 23 percent of Internet users regularly send text messages via the Internet.
On the other hand, online transactions or commerce among Filipino Internet users remain low. The survey said only three percent of Internet users conduct online banking activities or make online purchases.
Activity Monthly
Used e-mail 63%
Used Instant messages 63%
Used search 58%
Played games online 53%
Visited a social networking site 51%
Read blogs 42%
Download/upload photos 33%
Worked on personal blog 32%
Listened to Internet radio 28%
Download/upload music files 25%
Read news online on Internet portals/news sites 24%
Internet SMS 23%
Conducted on online banking transactions 3%
Purchased products online 3%