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Young, emerging 'middle class' boosts SA Internet growth

By Analytix Business Intelligence
Johannesburg, 23 May 2012

According to the latest Analytix BI report: “South Africa Country Report: Internet User Profile”, the increase in Internet use has been strongly driven by younger South Africans between the ages of 16-29 years and those who live in 'middle class' (LSM 5-7) households.

Based on the latest AMPS data, there were 5.8 million South African adults that had accessed the Internet in the past seven days in 2011, representing 17% of South Africans aged 16 years and above. The number of Internet users who had accessed the Internet in the past seven days had dramatically increased from 2.2 million in 2007, a growth of +164% or CAGR of 27.4% (see chart).

However, when comparing South Africa's Internet penetration to the BRIC countries (Brazil, Russia, India, China), it is apparent that South Africa still lags behind. Only India had a lower Internet penetration rate, at 7% in 2011. BRIC countries make up one-third (33%) of the world Internet population, although China alone accounts for more than one-fifth (22%). Russia currently has the highest Internet penetration among BRIC countries (43%), followed by Brazil (38%) and China (32%).

To put these numbers in context, the countries with the highest Internet penetration in the world are Norway (95%), Sweden (93%) and Netherlands (89%).

With the very strong growth in Internet usage over the past five years, it is worth taking a closer look at who these users are. Analytix BI's report shows that the increase in Internet access had been mainly driven by younger females in the emerging (LSM 5-7) segments, particularly through cellphone/mobile Internet. Although the highest proportion of Internet users that had accessed in the past seven days still sits in LSM 10 (26%), there had been a significant growth in the LSM 5-7 proportion. In 2007, 21% of people that had accessed the Internet in the past seven days were from LSM 5-7, compared to 35% in 2011.

Presently, the 20-39 year-olds (60%) dominate Internet usage in South Africa, but there is already a strong shift to an even younger Internet population fuelled by cellphone/mobile Internet access. Between 2007 and 2011, the proportion of Internet users who were 16-29 years old had gained considerably from 38% to 55% (see chart).

In addition, increasingly more females are going online. Even though females are still in the minority in the online sphere, there had been a steady increase of female Internet users over the five-year period, from 42% to 46%.

It is predicted that Internet user numbers are set to double in emerging countries within the next few years. However, in South Africa this can only be realised if the costs of Internet and especially mobile Internet come down, and operators expand their networks to reach those currently excluded from the Internet.

These and other results are available in Analytix BI's latest report: “South Africa Country Report: Internet User Profile”, which is based on an annual consumer survey among a nationally representative sample of over 25 000 people - the All Media and Products Survey (AMPS) conducted by the South African Advertising Research Foundation.

This comprehensive report examines the South African Internet User segment: Historical Internet users and forecasts until 2014; South African, African and global Internet usage trends; South African Internet access and usage (2007-2011); Internet usage and activities (cellphone, PC); Internet user and non-user profile; Internet access and usage by LSM group (LSM 1-4, 5-6, 7-8, 9-10).

Some of the key questions the report seeks to answer are:

* What are the historical Internet user trends and forecasts until 2014?
* What are Internet penetration trends in South Africa, Africa and globally?
* Who are the users (and non-users) of the Internet? Eg, age, gender, affluence, life stage, geographics
* What are important demographic trends (2007-2011) of Internet users that should be included in your business strategy?
* What are the Internet activities via cellphone and PC South Africans are engaging in?
* Who are the users and non-users of the Internet among the different LSM household groups?

Please note that the 82-page PowerPoint report is available for purchase for R9 000 (excluding VAT). Simply visit www.analytixbi.com to view the brochure and order form or contact us directly on (021) 551-7066.

Please click here to view the graphs.

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Analytix Business Intelligence

Analytix Business Intelligence is a Proudly South African market research company that conducts integrated quantitative and qualitative research to deliver holistic consumer-centric insights, customer value propositions and marketing strategy.

Our strength in quantitative surveys and analysis is enriched by significant expertise in gaining qualitative insights from ethnographic-style, in-home research to provide a 360-degree understanding of the consumer. We ensure you have the right information-based foundation to create successful marketing and communication strategies.

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For more information, go to www.analytixbi.com. Alternatively, contact Suzan Losaba on (011) 258-8731 or Katja Walter on (021) 551-7066.

Editorial contacts

Katja Walter
Analytix Business Intelligence
(+27) 021 551 7066
katja@analytixbi.com