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Consumers Continue to Spend More Time Online
How is the increased consumption of the Internet impacting the world we live in? Britain’s are spending more and more time online. Large audiences are spending as much as 30 hours per week on the Internet, according to a report from uSwitch.com.
The report showed that on average we spend 2 hours on the Internet for work and 3 hours for leisure daily with approximately 3 hours per day on the weekend browsing to keep us entertained. Online usage increases in the younger age groups with 18 – 24 year olds spending 45 hours per week online.
The way we access the Internet is also changing. The growth of the mobile Internet, due to more sophisticated 3G mobile phones, is increasing the amount of time spent online. Users have further options to access the web from handheld devices wherever they may be.
Faster connection speeds and increased broadband coverage across Britain means home broadband use also continues to rise. Ofcom research into broadband speeds in Britain found average broadband speeds in the UK in April 2009 were 4.1Mbit/s and that 70% of broadband users receive average speeds of more than 2Mbit/s. The increased connection speeds allow for faster load times and the ability to stream better quality content such as HD videos.
The affect on Advertising Spend
The increasing time spent online is having an impact on where advertisers spend their marketing budgets. Online advertising spend has now over taken TV. More and more, well known brand advertisers are realising the potential of online as a means to reach mass audiences.
Big brands such as Kellogg’s are waking up to the potential audiences online can bring. Kellogg’s spent £58 million on TV advertising from August 2008 – July 2009 and only spent just over £300k online. But this is about to change with the appointment of dedicated digital positions to come up with a strategy for 2010. This indicates large advertisers are now tuned in to the benefits online communications with customers can bring to a brand.
The seemingly late adoption of investment in Internet advertising by Kellogg’s comes as no surprise as typically FMCG brands have found it difficult to come to terms with the digital landscape. This is because they have failed to understand how it can fit in with their overall marketing strategy. But the adoption of the majority of the UK moving online means advertisers have to be where the audience is.
The convergence of TV and Online
More and more people in the UK are consuming TV online. Catch-up TV became popular in 2008, thanks to the BBC iPlayer and 4OD. The figures from the latest Ofcom’s annual Communications Market Report show 23% of households claim to watch programmes online. This increases to 33% in 15-24 year olds.
There are two ways to watch TV online through streaming or downloading. If you are streaming you are watching directly from the broadcaster, like traditional TV. Programmes can often be paused and rewound (unless they are “live”), but they aren’t saved to your computer. Downloaded programmes are saved on your computer’s hard drive, and can be watched whenever you want, although many have digital rights management (DRM) protection that locks them after a set period of time preventing you from watching them again.
Is the consumption of TV likely to move solely online? This may happen in the future if more programmes are aired solely online like the in case of the England World Cup qualifier against the Ukraine which, for the first time at the beginning of October 2009 was aired online with no TV coverage. The cost to watch the match started at £4.99 before the 8th October rising to £11.99 up until match day.
The general feedback from consumers was that this was too expensive for one match and it alienated pub viewers and fans with slow internet connections. But no doubt there will be more events in the future that are not aired on TV and are only shown over the Internet.
The growth of social networking
Social networking is huge in the UK with Facebook the clear market leader accounting for 1 in every 7 page views in the UK. Facebook is the second most visited site in the UK after Google but is the clear leader in terms of pages viewed due to the stickiness of the site with more pages viewed than Google, eBay UK and YouTube combined.
The success of Facebook is staggering with an 86% increase in visits in the past 12 months. Despite losing press coverage to Twitter recently, it is still the most popular social network accounting for almost half of all social networking activity that takes place online, with no signs of its growth slowing. Social networking is not just for a young audience the fastest growth occurred among the 35-54 year olds, during Q1 of this year.
Children and their time online
Most children are totally comfortable using the Internet having not known a world without it. A report by the London School of Economics uncovered the following about 9-19 year olds use of online. Children are very comfortable using the Internet with 40% using the Internet daily. Although time spent online tends to be shorter than with adults 19% spend up to 10% with 48% spending between 10 minutes and an hour. The activities they perform on the Internet ordered by popularity are:
- Obtain information on things other than school work (94%)
- Help with school work (90%)
- Send and receive emails (72%)
- Play games online (70%)
- Send and receive instant messages (55%)
- Download music (45%)
- Look for information on careers and further education (44%)
- Look for information and shop online (40%)
- Read the news (26%)
- Chat rooms (21%)
I have no doubt over time the use of Internet will continue to grow. Our children use it from a young age, creating a generation of people who are comfortable performing a variety of tasks online from entertainment to shopping. The continued improvement of Internet access reduces the barriers to entry, and the ever growing technologies that use the Internet to make certain tasks easier and quicker will all help to continue the increasing expansion of the Internet.
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