'Define What's Valued Online' Highlights Critical Role of Internet in Shaping Purchasing Decisions
Survey of 1,400 Technology Buyers Reveals Web's High Reliance and Strong Influence, But Satisfaction Levels With Tech Content and Information Sourced Online Could Be Higher

PALO ALTO, CA September 26, 2005 — While the overwhelming majority of business technology buyers cite the Internet’s high value as the top destination for researching potential purchases, their satisfaction level with white papers, product descriptions, case studies and other online content provided by marketers could be higher, says a new study.

In Define What’s Valued Online, a study fielded by the Chief Marketing Officer (CMO) Council and KnowledgeStorm, the Internet’s top-ranked search resource for technology solutions and information, 90 percent of the 1,400 survey participants report online technology content has a moderate to major impact on vendor preferences and selections. However, 50 percent said they are “somewhat satisfied” with the content, and 22 percent said they were “very satisfied.”

Tapping KnowledgeStorm’s opt-in user base of business and technology professionals, Define What’s Valued Online explored the consumption habits, research patterns and relative importance of various technology information sources and destinations. The survey also measured where and how downloadable content is impacting purchasing and procurement decisions.

“One of the goals of this survey was to give technology marketers insights into the value of Internet content syndication and how this is shaping the purchasing process,” said Donovan Neale-May, executive director of the CMO Council. “From the results, it’s clear that a high percentage of researchers and buyers leverage information gathered through the Internet to help make better decisions, and they see content offered by vendors and other trusted sources as valuable to the process. Use of Internet-based content appears to have become pervasive and a good indicator of technology purchasing patterns and shifts.”

The overwhelming majority of business and technology buyers cite the Internet’s high value as the top destination for researching potential purchases. But, their satisfaction level with white papers, product descriptions, case studies and other online content provided by technology vendors is lower than their satisfaction with content provided by industry analysts and professional and industry organizations, says the new study.

The study also reveals a moderate level of confidence and trust in the technical accuracy of IT content downloaded from the Internet, with research, reports and white papers from analysts and industry and professional organizations scoring higher. Similarly, content from analysts and associations was seen as having the highest degree of decision support value. Interestingly, news content from media publishers had moderate to low levels of confidence and trust.

With $2.1 billion spent by technology marketers — including hardware, software networking and telecom firms — on Internet marketing in 2004 (IAB/PricewaterhouseCoopers), marketers are embracing the Internet like never before. Through the online distribution of thousands of documents and other materials, technology vendors are educating professionals involved in making technology decisions, enabling them to become more informed buyers.

Other key findings in the report include:

• Over 83 percent of survey participants had moderate, high or final decision responsibility over IT buying in their organizations. In addition, over 34 percent said 20 or more staff in their organization relied on them for content sourcing and advice from downloaded technology content.

• The top benefits of using the Internet to research and download IT content were:
• Ease of access and availability
• Breadth and depth of information available
• Timeliness and currency
• Competitive data and analytics

• When asked their top technology content pet peeves, respondents cited “hype and puffery of offering” as number one. “Poor communication of business value proposition” and “too few proof points that evidence ROI” were second and third, respectively.

• The two most pressing problems or concerns cited by respondents are faced by Internet users in general: “invasive online advertising” and “pop-ups, spam or phishing.” “Biased and slanted content” ranked third.

• Nearly 70 percent of respondents start their online research with search engines and directories. Vendor Web sites placed a distant second. The most preferred search engine was Google, which garnered a 95 percent preference. In addition, search engines and directories were rated as the most valuable and trusted channels for gathering technology information.

To access the full Define What’s Valued Online report, please click on the following link: http://www.knowledgestorm.com/shared/write/collateral/ANL/51065_27775_97495_Define_Whats_Valued_Online_Report.pdf .

“While the data highlights the popularity and general satisfaction of technology content online, it also points out the need for IT vendors to re-evaluate the process in which this content is created and presented,” said Laurie Hood, vice president of marketing at KnowledgeStorm. “ It is clear that, by providing quality content online, technology marketers have the opportunity to improve their credibility and increase the influence they have on purchasing decisions .”

About the CMO Council
The CMO Council is an influential global affinity group dedicated to high-level knowledge exchange, thought leadership and personal relationship building among senior marketing and brand decision-makers. More than 1,500 technology companies are represented on the CMO Council, controlling more than $45 billion in annual marketing expenditures. For more information, please visit our web site at www.cmocouncil.org.

The CMO Council convenes under the auspices and administration of GlobalFluency, a Silicon Valley-based marketing and public relations network comprising 114 offices, 650 professionals and 41 agency partners in 72 countries. More information is available at www.globalfluency.com.

About KnowledgeStorm
Founded in 1998, KnowledgeStorm is the Internet’s top-ranked search resource for technology solutions and information. Leveraging the KnowledgeStorm Network of premier partners and its extensive search expertise, KnowledgeStorm is able to reach technology buyers and deliver the information they needs no matter where their search begins. KnowledgeStorm with its network, search expertise and online services serves as a powerful resource for technology vendors providing them the most opportunities to be found on the Internet and to convert motivated technology buyers into Web leads. For more information, visit www.knowledgestorm.com.