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What's in the know


Australian internet traffic to increase 7 fold. What it means for business.

Boon Yang - Tuesday, July 10, 2012


Australian Internet Traffic to Grow 7 Fold by 2016. 

What would that mean for business?

According to network giant Cisco, Internet traffic is forecasted to be increasing at a geometric progression yearly and Australia internet traffic is not left behind as current studies have shown that its internet traffic will grow 7 fold by 2016 when compared to 2011.

Facts

  • Cisco a multi billion dollar giant in networking made the announcement that traffic will reach 1 million gigabyte per month in 2016 which is equivalent to about 160 million DVDs per month. This company made another forecast that internet traffic in Australia will grow by 49% every year from 2011.
  • The year 2016 will witness further increases in Australian networked devices as more traffic will be generated from hand held tablets and smart phones. There will be an up jump from about 93 million networked devices in 2011 to 142 million devices in 2016.
  • More devices will be connected to IP networks and by 2016 it will surpass the global population by nearly 3 times.
  • Aussies are currently using 4.5G traffic per month which will increase to 30.1G per month in 2016.
  • The gap in internet usage between urban and rural areas is quickly narrowing due to the broadband guarantee program which will provide the rural areas of Australia with higher bandwidths at affordable rates. 
  • In a research in 2007, 52% of internet users in Australia used the internet for business and this has been rising steadily over the years due to the emergence of small and medium scale businesses establishing their presence on the internet and the increasing awareness created for such purpose.
  • Income level also affects internet usage but this has become less significant as more people despite their annual earnings are using the internet, with most of the traffic generated directed at businesses. In 2001, only 16% of Aussies within the lowest income bracket had access to the internet however in 2008 approximately 47% in this crowd were accessing the internet.
  • By 2016, over 93% of homes will have access to broadband internet via fiber optic cable; fixed wireless will be used by 4% of homes; and the remaining percentage will be supplied by satellite. This will enable an ultra fast two way broadband communication allowing business owners to create and participate in video and chat conferences whilst permitting sharing of large files easily and promptly. 

Having a great shop or business without customers to patronize your services is disastrous because income will not be generated despite the quality of goods or services you are offering to the public. This implies that every flourishing business depends on happy customers ready to patronize such business. With the huge forecasted increase in the number of internet users leading to a gigantic boom in traffic generation, internet oriented businesses will definitely flourish simply because more customers will be looking to purchase goods and services online.

The growth of internet traffic will affect business positively also because of the increasing use of smart phones and tablets (which are primary contributors to the forecasted internet growth) to access information and content via the internet. These are hand held devices and as such individuals can indulge in business transaction while on the move. Imagine being able to reach millions of potential customers on the go with a plugged in video advert which has great download time telling customers about the product or services that you are offering. This makes advertising less boring, quick to access and easy to remember and this will go a long way in improving business.

Recommendations 

It is blindingly obvious that the forecasted internet traffic boom in Australia within the next few years will mean more people going online to do business. Small and medium business owners must capitalise on this anticipated trend. The following recommendation will be useful for small and medium scale business owners to skyrocket their businesses and thus maximizing their profits.

  • As internet users become more aware of the many options available, not to mention smarter and savvier with the ever abundance of information available, small and medium businesses will need to ramp up their websites a notch especially by ensuring user friendliness and easy to navigate tools for their visitors. With so many other options available, if a business cannot provide convenience and a hassle-free experience, their customers will be looking else where. Remember, the potential is huge but competition will become more fierce as competitors fight for the bigger piece of the pie.
  • Having internet presence or a well designed website will not be enough as websites do not attract traffic, they are merely designed to convince visitors to become customers. As the internet opens up many tactics of attracting traffic, website owners should seriously consider not only investing in contemporary advertising but relevant advertising. For example, viral marketing can be used to reach a large number of people within a short period of time through blogs and social network sites; but will method this suit your purpose? Social networks like twitter, facebook and others available will prove to be invaluable in traffic generation but how one business uses it will not necessarily be suitable to another. 
  • The advancement of technology in hand held devices mean that more people will be using smart phones and tablets to access the internet. Business owners must ensure that they are optimising their websites and marketing materials for hand held devices i.e mobile enabled websites, click to call mobile optimised Ads etc.
  • It is a requirement for business owners to invest and improve on human resource and financial management. The internet revolution makes this easier and cheaper to achieve. Customers should be encourage to leave feed back after visiting a website for business as this will help business owners improve on their businesses. Collecting and analysing data like this was once laborious and costly.