Online spending is gaining traction as high speed internet connections become cheaper and more commonplace for every household.  Every year online spending is getting bigger and bigger.  Though online spending is still a fraction of total consumer spending, it is growing at a rate of more than 25 percent annually.  But the trends are that the online spending is incremental and campaign advertising will increasingly shift online going forward, the research note says.

Spending

Households earning at least $100,000 have increased online spending by 28% over last year, but households that earn less than $50,000 have increased online spending by only 10%.  New households going online and more online spending from those already there will drive up consumer spending on the Internet to account for about 13% of all general merchandise retail spending by 2010, according to Forrester Research Inc.  Kids 6- to 13- years-old, the group with the smallest disposable and scant access to credit cards, will grow their spending online from about $100 million to just about $1 billion over the same time period.

Shopping

The trend is showing the internet becoming a popular option for people to use to make their shopping purchases.  Now shopping online is made even more easier with portals.  For their online shopping research, they turn to Google, store Web sites, and other sources before they turn to the newspaper Web site.

Customer

Customers, who can weigh in on their shopping experience, are more empowered to buy and feel appreciated, because they are not looked upon as just another ordinary online shopper.  Customers are ready to spend more than ever, thanks for a growing economy.

Online spending is fueled by recent announcements by major advertisers that the Internet is getting a bigger chunk of ad budgets.  Teen online spending is expected to explode over the next four years, according to a new report on the cyber-habits of the so-called Generation Y.

Tags: online shopper, shopping experience