IDC Says the Digital Marketplace Has Reached a Tipping Point and Will See Double-Digit Growth Rates That Cannot Be Ignored

FRAMINGHAM, MA – MAY 17, 2007 – The Internet is revolutionizing the way we live, work, communicate, access information, and entertain ourselves. IDC recently found that more than 70% of Americans are using the Internet on a daily basis for private and/or business use. Providing a quick and convenient way to exchange goods and services globally, the Internet has created a new economic ecosystem – the Digital Marketplace – that has become the virtual main street of the world. According to IDC, the Digital Marketplace has reached a tipping point and will see double-digit growth rates until at least the end of this decade.

"The tipping point is being driven by increased consumer sophistication, commercial maturity, and technology readiness," said Rachel Happe, research manager for IDC's Digital Marketplace program. "This will jumpstart a new wave of adoption and growth, particularly in rich media content and social networking applications."

With close to two trillion dollars exchanged just in online transactions for goods and services in 2006, businesses operating in the Digital Marketplace as well as businesses in the traditional economy cannot afford ignorance when it comes to the economic ecosystem of the Internet. Some businesses are successfully leveraging this ecosystem to achieve phenomenal growth while other businesses are struggling to adapt quickly enough to maintain their current size. The Digital Marketplace is forcing businesses to learn and adapt like never before, putting their flexibility and speed to the test.

The popularity of the Internet makes it an effective medium for businesses to communicate and have influence with its customers, partners, and employees. IDC believes the Digital Marketplace is creating a virtual environment rich in participation, content, and revenue for all businesses, not just those operating online. That's why IDC stresses that it is more important than ever for all businesses to understand online user behavior and traffic flows, business models, and application infrastructure.

IDC's latest study, The Landscape of the Digital Marketplace in 2007 (Doc #206726), defines the Digital Marketplace and reviews the factors that influence its development. The authors of this research document assess the current state of the Digital Marketplace, describe new business models, outline the influencers and disruptors that will affect the development of this ecosystem, and provide a framework for Digital Marketplace applications. They also provide guidance for IT vendors, media companies, advertisers, content providers, and retailers regarding the pressures brought on by changes in the Digital Marketplace.

To purchase this document, call IDC's Sales hotline at 508-988-7988 or email sales@idc.com.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com .

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