Jupiter Communications Press Release

(See: Analysis of Jupiter Communications Press Release)

Diane Schreiber
Jupiter Communications

Associate Director,
Corporate Communications
Tel: 415-503-6121
Michele Husak
Jupiter Communications
Associate Manager,
Public Relations
Tel: 917-534-6208
Jupiter: Web Retailers Neglect Web Technologies, Less Than 20 Percent Use Java, Flash, and Chat Functions
Conservative Approach to Online Shopping Outdated

NEW YORK, August 29, 2000—Not even one in five online retailers deploys well-accepted and widely supported Web technologies such as Java, Flash, or chat functions to enhance online shopping experience and close sales-according to a new report from Jupiter Communications, Inc., (Nasdaq: JPTR). Jupiter's report advises that online retailers abandon conservative Web site development practices and optimize their interactive real estate to match the technical capabilities, of most online consumers that can support a rich interface adequately.

As audiences upgrade hardware, add plug-ins, and upgrade to faster Internet connections, the addressable consumer technology environment becomes more diverse. At the same time, consumers expect a richer online shopping experience because of the exposure they receive through new interfaces on most sites. Merchants operating in complex online product categories—auto, real estate, home furnishings and housewares, PCs and peripheral devices, and apparel—now have the opportunity to integrate advanced applications that can satisfy the needs and address the problems of more experienced online shoppers. Merchants must move to meet consumers' heightened expectations now as late movers will lose audience and market share.

"Many retailers have designed their sites for the lowest common denominator, which is shortsighted, particularly for vendors of high-consideration goods," said Lydia Loizides, an analyst with Jupiter Communications. "This practice ensures support for technology laggards, but retailers must also meet the rising expectations of experienced online shoppers. Competitive pressure will make support for advanced technologies a must-have for sites operating in the complex product market. Retailers will have to offer more to their customers than just basic textual representation, search, and price comparison."

In a new Jupiter Executive Survey of online merchants, 60 percent cited customer feedback as a primary factor in their decision to integrate advanced technologies into the user interface. However, a recent Jupiter Consumer Survey of online shoppers found that more than 50 percent of respondents indicated they would use the technology if it were available. Specifically, 56 percent said they would use items such as virtual dressing rooms, and 51 percent said they would use zoom-and-spin technology if available.

According to Loizides, merchants must proactively deploy technologies that enhance the process of searching for and evaluating products and services online, or they will lose customers to those that offer a richer online experience. PCs have evolved—and speakers, microphones, and support for processor-intensive multimedia is commonplace—yielding an environment in which Web ventures can integrate advanced imaging and graphics technologies, including voice and audio features creatively.

Online retailers should place technologies on a graduating scale of complexity. Web sites implement a wide range of applications that target audiences from those of low bandwidth, low-consumer technology to those on the high-end of those scales. However, marketing and technology departments of online retailers have focused on purchasing and checkout phases and hyper-focused on abandoned shopping carts and purchase forms. Loizides encourages merchants to incorporate technologies that can ease this process by including tools for product and price comparison, advanced search bots, and visualization clients that present a finer level of detail.

About Jupiter Media Metrix
Jupiter Media Metrix is the global leader in market intelligence for the new economy. The company delivers innovative and comprehensive Internet measurement, analysis, intelligence and events to provide businesses with unmatched global resources for understanding and profiting from the Internet. Jupiter Media Metrix brings together world-class, innovative and market-leading products, services, research methodologies and people. Jupiter Media Metrix brands include Media Metrix, AdRelevance, Jupiter Research and Jupiter Events. The Company is headquartered in New York City and operates worldwide, across the Americas, Asia Pacific, Europe (as Jupiter MMXI Europe), and the Middle East. Visit us at www.jmm.com for more information.

This press release contains statements of a forward-looking nature relating to future events or future financial results of Jupiter Media Metrix. Investors are cautioned that such statements are only predictions and that actual events or results may differ materially. In evaluating such statements, investors should specifically consider various factors, which could cause actual events or results to differ materially from those indicated from such forward-looking statements, including the matters set forth in Jupiter Media Metrix reports and documents filed from time to time with the Securities and Exchange Commission.

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