While Web sites pump their registered user numbers relentlessly, advertisers are not yet convinced those eyeballs offer added value. More obviously, the numbers just don't add up. According to market research company IDC, the worldwide population of Internet users is expected to reach 361 million by the end of the year. At the very least, that means registered user numbers are wildly out of proportion with the number of people who actually use those sites as their primary Web bases. At worst, it could give advertisers more reason to take a cynical view of the Internet numbers game, leaving Web sites scrambling for new and better sales tools.
Registered users are only a leading indicator of the size and scope of a relationship.
In its recent earnings report, for example, Yahoo boasted of having 185 million registered users. At 55 million, the figure was less than a third of the registered user count. Yahoo isn't alone. For its free services, however, it reports much higher and more suspect numbers. Many companies publish numbers pegged to criteria that indicate actual usage, in addition to raw registration data.