NPD and Media Metrix E Visory Report Shows Three Out Of Four Pet Owners Aware Of Online Pet Stores

According to a new e-Visory Report released by leading marketing information provider The NPD Group, Inc. and Media Metrix (NASDAQ:MMXI), 75% of pet owners who access the Internet are aware of online pet stores, up from 55% in September 1999. Twenty-seven percent have shopped at an online pet store, while 14% made an actual purchase at an online pet store.

The study confirms that almost three times as many pet owners become aware of online pet stores from television advertising compared to last year, while fewer are learning about sites from surfing the Web. Though television advertising in the category is growing, consumers are still more likely to find out about pet e-tailers from some online source, such as clicking on a banner ad or direct link from another site.

“Our study confirms that big advertising budgets, such as the one featuring the Pets.com ‘Sock Puppet,’ have had an impact on the industry. Now that consumers are aware of their sites, marketers’ next big challenge will be to draw them in to shop, convert them into buyers, and make it a profitable transaction,” commented NPD New Media Vice President Carol Neithercut.

The good news for marketers is that while category penetration is still low, customer satisfaction is high. Among the 14% who have purchased, a whopping 97% of them are satisfied with their buying experience. More than two-thirds reported being very satisfied (68%), up from just over one-half in September of 1999 (53%).

Also boding well for the industry, the majority of consumers who have shopped at pet store sites said they are likely to shop again in the next three months (59%), and half would make a purchase sometime in the future (49%). Not surprisingly, those consumers who are very satisfied with their buying experiences at online pet stores in general are much more likely to make a purchase in the future than those who have not.

Media Metrix reported that Petsmart.com had the highest number of unique visitors among pet store sites(a) in March of 2000. Petsmart.com is the online extension of the leading offline specialty pet store chain in the nation. Petsmart.com’s advantage comes from tapping into the tremendous buying power of its parent company. Like Petsmart.com, other top pet store sites have the support of strong alliances. Petopia.com is backed by the offline retailer Petco, while Pets.com is supported by Internet e-tailing giant, Amazon.com.

Top Pet Sites(a) Visited in March 2000

Pet Store Sites Unique Visitors (000) Reach %

Petsmart.com 1,5762.1

Pets.com 1,2881.7

Petopia.com 1,1121.4

Petstore.com 623.8

Source: Media Metrix, Inc.

(a) Pet store site category defined by The NPD Group, Inc.

For more information or to purchase the e-Visory Report, contact Stacy Miller at (516) 625-2360, or by e-mail at [email protected]

About the NPD/Media Metrix e-Visory Reports

The NPD data presented in the e-Visory Report were compiled by NPD Online Research from 2,084 surveys completed and submitted in May 2000 by members of NPD’s Online Panel, individuals prerecruited to participate in surveys.

About The NPD Group, Inc.

The NPD Group is an international marketing information company headquartered in Port Washington, NY. Founded in 1953, the firm specializes in providing insight into consumer purchasing and behavior via both Internet-based and traditional research methodologies, including online and offline consumer panels and retail panels supplying point-of-sale tracking data.

NPD offers proprietary databases and research expertise in more than 20 industries, including apparel, automotive products, consumer electronics, cosmetics and fragrances, financial services, food, foodservice, footwear, housewares, information technology, interactive entertainment, new media, pharmaceuticals, toys, and more. The firm also offers a full range of analytical tools for ad hoc research. NPD is the developer of the revolutionary Web audience measurement technology now marketed by its successful spin-off Media Metrix, Inc. NPD has offices and affiliations in 36 countries, covering North America, South America, Europe, Asia and Australia. For more information on The NPD Group, please visit http://www.npd.com

About Media Metrix

Media Metrix, Inc., with over 750 clients, is the leader and pioneer in Internet and Digital Media measurement and the industry’s source for the most comprehensive, reliable and timely audience ratings, e-commerce, advertising and technology measurement services. Media Metrix operates in France, Germany, Sweden, the United Kingdom, Australia, Canada, Japan, Latin America and the United States. The company utilizes its patented, superior operating-system metering methodology to track Internet and Digital Media audience usage behavior in real-time. Media Metrix has a sample of over 70,000 people under measurement worldwide. Please visit www.mediametrix.com for more information.

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