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only people who can afford access to it are the major corporations. For the small, Mom-and-Pop operation to be able to compete equally--one of the dreams of the Net--the data have to be free.
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Hoffman and Novak thought they'd gotten their wish when, in early 1995, they got
the CommerceNet consortium, of which they are members, to agree to supply up to
$100,000 to fund the study. Out of twenty-odd proposals, the committee of five
(including Hoffman and Novak) selected A. C. Nielsen, the well-known TV ratings
company, which they felt had the best proposal and also had significantly underbid
the rest of the field.
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Nielsen's methodology was a familiar one: select a nationally projectable sample
and conduct telephone interviews using a carefully designed survey questionnaire.
In order for the sample to be projected accurately, however, its makeup has to be
compared to known census data for the target population (in the Nielsen study's
case, the adult population of the United States and Canada). If, hypothetically, 20
percent of your sample were under twenty-five, but official census data shows that
in the general population 30 percent are under twenty-five, you need to take this
difference into account when you project the results of the survey onto the larger
population. While you would probably refine your selection procedures to choose a
more representative sample in the case of such an egregious discrepancy, it's
typical for samples to vary slightly from the make-up of the larger population. This
difficult but well-established process of analyzing the statistics, making these
comparisons, and adjusting the results to take these differences into account is
called weighting. If this all sounds too complicated and mathematical, think of it like
balancing a tire and applying weights to eliminate small imperfections that are
unnoticeable at ten miles per hour but make the car vibrate noisily at fifty-five.
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When Nielsen weighted the data and released the results in November 1995, they
were unexpectedly high: the number of Americans and Canadians sixteen or older
with access to the Internet was projected at 37 million, of which 24 million used the
Internet, 18 million used the Web, and 2.5 million had actually used the Web to
make purchases.[6] Hoffman and Novak, who had proposed the study
and were expected to endorse it, immediately challenged these figures. In April
1996, they released a reanalysis of the same data claiming the figures were
inflated due to errors in the weights. "The average inflation due to deficient
weighting alone is 20.6%, the average inflation due to inconsistency alone is 13%,
and the average total inflation in the original CNIDS [CommerceNet/Nielsen Internet
Demographic Survey] estimates, when adjusted for the combined effect of these
critical flaws, is 38%," they wrote. "As such these estimates lack validity and are of
little value to decision makers."[7] Imagine you're running a business,
and you're thinking of advertising on Roseanne, and you're basing your marketing
plans and advertising expenditures on the assumption that the audience is more
than a third larger than it actually is. Hoffman's and Novak's corrected estimates
were 28.8 million with access, 16.4 million actually using the Internet, 11.5 million
using the Web, and 1.5 million who had used the Web to purchase something.
Nielsen, which had priced copies of its full report at $5,000, disagreed with this
reanalysis,[8] but Hoffman and Novak's paper was accepted for
publication in the peer-reviewed journal Communications of the ACM and Nielsen
eventually revised its estimates.
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One reason Nielsen's figures seemed so high was that several other surveys,
released around the same time, came out with much lower numbers. Specialist
Internet publisher O'Reilly and Associates 1995 study came out with 5.8 million
adults using the Internet; consulting and research service FIND/SVP estimated 8.4
million adults and 1.1 million children use the Internet; and Times Mirror came up
with 25 million adult Americans online.[9]
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The wide variation among those numbers illustrates a different problem: there is
little agreement on how to define such basic concepts as "Internet access" and
"Internet user." All of America Online's 8 million users have Internet access, but that
doesn't mean they use it. Leaving net.prejudice aside, AOL members who send
email and have chat sessions only with each other aren't using the Internet, they're
using AOL. Similarly, a business may connect its network to the Internet but give
  
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