The report delves into everything from mobile use to media consumption and PCs to social networking. The takeaway, says Forrester, is that Gen Y "lives and breathes" a digital social life, Gen Xers are masters of the functional benefits of technology, but those older are much more reserved in nearly all areas.

"In almost every online or mobile behavior, Gen Yers lead the adoption curve," explains Forrester, summarizing the differences between the generations. The youngest members of this group don't remember life without a mobile phone or a time when texting or email was unavailable. Gen X, despite having a longer "tech memory" than its younger counterpart, still rivals Gen Y in many areas. This slightly older group tends to use the Internet and computers more functionally. For example, 26% of Gen Xers go online for information about food and cooking, 61% use it for news, 65% use PCs to manage photos and 53% email photos at least once per month.

Boomers fall behind on the technology adoption curve, but spend more money on everything tech-related from telecom fees to online shopping purchases. Seniors, however, lag ever further behind. 80% still subscribe to a local newspaper, for instance. But in other ways, they're catching up: 40% own an HDTV, one in five uses the Internet for reading news and one quarter for travel planning.

Devices: Gen X Leads

When it comes to devices - think HDTVs, digital cameras, PCs, gaming systems - Gen X leads the way, says Forrester. Their households are the most likely to have these devices in them.

When it comes to the household PC (meaning "personal computer" not necessarily "Windows machine"), Gen X and Boomers tend to use theirs for practical matters like word processing and household finances. They're also more focused on PC health, regularly scanning for malware and backing up files.

Mobile: Gen Y Leads

Meanwhile, on the mobile front, the 49 million Gen Yers lead the other generations, using their phones for everything from product research to social communication. Along with Gen Xers, Gen Yers are the most likely group to own a smartphone with an unlimited data plan. One fifth of Gen Y uses their phone for maps and directions now, while Gen X is generally more interested in checking news, sports and weather.

85% of Gen Y sends and receives text messages, while 68% of Gen X does the same. Only 15% of Seniors use SMS, however.

37% of Gen Y surfs the mobile Web. Mobile "Facebooking" is also more popular with Gen Y, with 27% participation, compared with 18% of Gen X. Seniors on Facebook, supposedly a growing trend on the desktop, is not so prevalent on mobile - only 1% use Facebook or other social networking sites from their phone.

Overall, 23% of Gen X and Y owns a smartphone and 17% of Americans do.

Online: Gen Y Surfs, Gen X and Boomers Shop

Internet use has surpassed TV viewing for Gen Y for a few years now, but this is the first time that Gen X can say the same. Younger Boomers (45-54) also now spend equal amounts of time online versus on the Web. TV viewing still beats Web surfing for older Boomers and Seniors though.

The survey found, too, that Gen X does the most online shopping, but Younger Boomers spend the most. In fact, Boomers were the only generation that spent, on average, more than $600 online in the past three months.

Forecast: eReaders are "Device of the Year," but Few Use

Forrester says that eReaders have drawn a lot of hype over the course of the year, but in reality, only a small percentage of the population currently uses them. However, the analysts forecast that another 6.6 million will buy an eReader by year-end. 8.3 million will buy a netbook or mini PC, though, in the same time frame.

Netbook and mini-PC purchases will outpace eReader sales until 2014, when both slow to 1% growth rates. Laptops will also decline to 2% growth in 2014.

This data seems in opposition to earlier reports from NPD that stated netbook sales have gone negative. This recently led to some controversy when the Wall St. Journal quoted Best Buy CEO Brian J. Dunn remarking on the netbook's decline, saying its sales have been cannibalized by the iPad. Dunn later explained, by way of a Best Buy press release, that "the reports of the demise of [notebook and netbook] sales are grossly exaggerated." It appears that Forrester agrees with this statement, given this new report's data.

Conclusion: Gens X & Y Outpacing Others

Forrester concludes that Gens X and Y are "setting the example of how future digitally native generations will live," with both generations "outpacing Boomers and Seniors on almost everything technology-related."

Statements like these tend to rile up the tech-savvy Boomers and Seniors who read this blog, often leading outraged comments about the wrongness of the data. In this case, though, Forrester analyzed 30,064 households containing 37,226 individuals to reach these conclusions, a sample size which seems sufficient enough for this analysis. Any generation will have its outliers, of course, from the digitally-adept Grandma to the Gen Yer who refuses to Facebook. Plus, anyone reading this article is at the top of the curve, no matter what the technology in question is, we would bet.

Image credit, top: flickr user Paulo Fehlauer; charts: Forrester

But not everyone using social networks is worth targeting equally, as it turns out. Instead, there are three types of online personalities that make up just one-fifth of the consumer population but are the key influencers in the purchasing activities of 74% of the population. Gartner calls them Salesmen, Connectors and Mavens.

The Salesmen, Connectors and Mavens are the three key influencer roles in today's social networks, just as they are offline. Salesmen, as you may guess, are defined by their ability to persuade people to purchase or act in certain ways. Salesmen aren't commercial entities, though; they just have the ability to encourage others to action.

Connectors can be split into two sub-groups - "Heavy" and "Light," and are defined by their status as a bridging function between disparate groups of people. Connectors have contacts in a multitude of different social groups and enjoy introducing people to one another.

Mavens are essentially information brokers. They are experts in a particular area and typically field questions from friends and family in need of advice. Often this advice influences purchasing decisions. Mavens, however, aren't necessarily trying to persuade people to purchase; they're just informing them.

Targeting the Key Influencers is Critical

These three roles play part in the purchasing activities of 74% of the population, says Gartner. The survey, taking place in the fourth quarter of 2009, studied nearly 4,000 consumers in 10 key markets and identified six different roles of user behavior. In addition to those mentioned above, there are also Seekers, who are the ones asking others for information, the Self-sufficient, who prefer to find the answers themselves and the Unclassified, who didn't fit into any defined role.

Gartner said it expected that some wouldn't easily fit into these prescribed roles because they may take on different roles when in different social contexts. You may be heralded as the IT expert (aka Maven) among your family, for example, but among your IT colleagues you're more of a Seeker of information. Two-thirds of the population ended up as Unclassified, however, which makes this report's findings and the staggering percentages regarding influence somewhat moot .

What marketers can take away from the study is that there are specific personality types that can be (and should be) targeted when using social networks to promote a brand, company, product or service. Salesmen, Seekers and Connectors are the most effective social network segments to target. This can be done by focusing on both the shopping experience and making information easily available to them. Mavens aren't as useful, because they don't do anything with the information they know unless specifically asked. For these folks (as well as the Self-sufficients), the focus should be primarily on improving the shopping experience.

At the end of the day, none of this is really new information - it just reinforces the fact that when online, consumers behave pretty much as they did prior to the Internet age. Word-of-mouth is still the best way to attract new business, and businesses should target those who like to influence others.

First of all, it's important to note that while Yahoo will incorporate Bing's search results, the company has no plans to scrap any of the auxiliary search products that currently surround Yahoo's search results. This means that Yahoo will continue to show results from it's own news product on its search results pages, for example. Yahoo's Search Pad and Search Scan apps that allow users to filter searches will also remain on the search results pages.

According to Yahoo's own announcement, this deal also means that the company can now focus on providing even more additional services around search, without having to focus on maintaining its own search engine.

Nothing New for Yahoo

For Yahoo, using somebody else's search technology isn't really anything new. Before launching its own search product, Yahoo had a partnership with Google that lasted from 2002 to 2004.

Overall, Bing offers better search results than Yahoo's own search engine. Besides better search results, Yahoo's users probably won't notice any major differences once Yahoo begins to use Bing. According to Yahoo's statement, this implementation will begin in the next few days, though the exact date for the transition isn't clear yet.

More Competition for Google

Bing, which is already growing at a steady clip will not become and even more important rival for Google's search engine. While anybody would be hard-pressed to argue that Google isn't innovating fast enough, this renewed competition from Bing will surely put some pressure on Google to innovate even faster.

In addition, this deal also makes Microsoft and bigger player in the search engine advertising business, a field that Google can currently dominate because of the sheer size of its market share.

And What About Developers?

Yahoo also just posted some information about what it plans to do with its developer tools now that this deal has been cleared. The overall message in Yahoo's announcement to developers, though, is that the company doesn't really know what it will do yet.

For BOSS, Yahoo and Microsoft are considering a fee-based structure, the future of SearchMonkey is unclear ("we're working hard to determine which path provides the best value for site owners and end users") and with regards to Yahoo's Site Explorer, Yahoo is also still considering its options.

Click here to read the full text of the joint Microsoft/Yahoo press release.

Press Release

SUNNYVALE, Calif. & REDMOND, Wash.--(BUSINESS WIRE)--Microsoft (Nasdaq:MSFT - News) and Yahoo! (Nasdaq:YHOO - News) announced today that they have received clearance for their search agreement, without restrictions, from both the U.S. Department of Justice and the European Commission, and will now turn their attention to beginning the process of implementing the deal.

Implementation of the deal is expected to begin in the coming days and will involve transitioning Yahoo!'s algorithmic and paid search platforms to Microsoft, with Yahoo! becoming the exclusive relationship sales force for both companies' premium search advertisers globally. Once the transition is completed, the companies' unified search marketplace will deliver improved innovation for consumers, better volume and efficiency for advertisers and better monetization opportunities for web publishers through a platform that contains a larger pool of search queries.

"This breakthrough search alliance means Yahoo! can focus even more on our own innovative search experience," said Yahoo! Chief Executive Officer Carol Bartz. "Yahoo! gets to do what we do best: combine our science and technology with compelling content to build personally relevant online experiences for our users and customers."

Microsoft CEO Steve Ballmer concurred with Bartz's assessment. "Although we are just at the beginning of this process, we have reached an exciting milestone," Ballmer said. "I believe that together, Microsoft and Yahoo! will promote more choice, better value and greater innovation to our customers as well as to advertisers and publishers."

Consumer Search Experience

Under terms of the agreement, which was announced in late July 2009, Microsoft will provide Yahoo! with the same search result listings available through Bing, and Yahoo! will innovate around those listings by integrating rich Yahoo! content, enhanced listings with conveniently organized information about key topics, and tools to tailor the experience for Yahoo! users.

Yahoo! will focus on providing a compelling and innovative search experience that allows people to find and explore the things, people and sites that matter most to them. While Microsoft will provide the underlying platform, both companies will continue to create different, compelling and evolving experiences, competing for audience, engagement and clicks.

Transition Timeline

Yahoo! and Microsoft will work with advertisers, publishers and developers on a customized plan designed to make the transition as efficient and seamless as possible. Both companies will begin working closely with most partners well in advance of their planned transition to the Microsoft platform and will communicate important information to partners about the transition periodically via phone, email, webinars and a newly created website at www.searchalliance.com.

The companies will begin the transition of algorithmic search and have set a goal of completing that effort in at least the United States by the end of 2010. The companies also hope to make significant progress transitioning U.S. advertisers and publishers prior to the 2010 holiday season, but may wait until 2011 if they determine that the transition will be more effective after the holiday season. All global customers and partners are expected to be transitioned by early 2012.

Customer Relationships

Once the transition is in place, Yahoo! and Microsoft will each represent and provide customer support to different advertiser segments. Yahoo!'s sales team will exclusively represent and support high volume advertisers, SEO and SEM agencies, and resellers and their clients. Microsoft will represent and support self-service advertisers.

Regulatory Summary

Although the transaction previously was cleared by regulators in Australia, Brazil and Canada, the terms of the agreement required clearance by U.S. and European regulators before it could commence. Meanwhile, Microsoft and Yahoo! continue to work with regulators in Korea, Taiwan, and Japan to ensure that they have all relevant information necessary to evaluate the transaction before the deal commences in those specific jurisdictions.

About Microsoft

Founded in 1975, Microsoft (Nasdaq:MSFT - News) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft's corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft's Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.

The IPTV integration is an interesting one and Philips doesn't seem like an obvious partner. What other types of partnerships do you have in store for us?
Honestly, we're not only looking to partner with the big brands, PayPal also wants to enable innovation from the little guy. We know we'll reach success when developers exceed our expectations. We're looking to them to decide how it plays out. Without taking credit for other developers' work, there are some great areas to innovate in voice authorization, real-time mobile applications, shipping, consumer apps and coupons.

What does the future of PayPal look like?
We're launching an app store where consumers can check out new and convenient payment forms and merchants can purchase specific solutions.

How is this connected to Le Web's theme of the real-time web?
We're looking to provide real time payment options and support.

As a global leader you've got every opportunity to dictate industry pricing on apps and merchant services. What is the percentage you're going to take off merchant purchases from the app store?"
We're not sure of that yet. What we do know is that it's going to be fair. We don't want to take our cue from some of the other closed platforms. We're offering visibility, easy integration of payment and smooth transactions. We're not trying to be Apple, we want as much cross device, cross platform transactions as possible. We make our money off the transactions, not the applications.

If the future of PayPal is about seamless app integration, then doesn't that mean that in a perfect world PayPal is virtually indistinguishable from the app?
Not exactly. We offer developers security authorization. Consumers want to know that their money is safe. There are lots of other providers, but developers choose us because our brand offers a sense of security. We're leveraging the success of our payment brand and the developers are responding.

For more info on Le Web, check out Social Media Club House

With the Top 10 Consumer Web Apps of 2008, we've tried to select the apps that have burst onto the radar of the everyday user this year - or if not quite, then perhaps they will next year.

This is the third in a series of top products of 2008:

1. Top 10 Semantic Web Products of 2008
2. Top 10 International Products of 2008

Note: We attempted to order this list from most obvious to least obvious.

1. Twitter

Twitter is the de facto leader of the microblogging scene, a realm usually rife with witty repartee between leading social media consultants and Web 2.0 developers. But when household names like Lance Armstrong, Richard Branson, Al Gore, Shaquille O'Neal, Britney Spears, and politicians across the US started using it, this year, it was clear that our selection as the Best Web LittleCo for 2007 had grown up - and entered the public consciousness.

Twitter was a constant fixture on ReadWriteWeb this year from its use as a source of news to its growing use as a customer service channel. But it wasn't without its hiccups. Midway through the year, Twitter - and its more and more frequent showings of the Fail Whale - was rapidly becoming persona non grata. In June 2008, Amazon's Jeff Bezos poured more cash into the service. And with the US elections, Twitter proved its mettle, becoming a critical forum for debate on the issues at hand.

2. Firefox

November 2008 marked the fourth birthday for Firefox, arguably one of the most successful open source projects and clearly the most popular Web browser that users have to actually install. In 2008, more and more of the consumer population gravitated to the browser that strives to deliver the Web the right way.

Firefox has continued to grow in popularity throughout 2008, but it was the download day for Firefox 3 that began to truly turn heads. Site crushing traffic to download a Web browser? Believe it. So much traffic, in fact, that it set a world record. That, and a number of other factors, had Firefox reaching a 20% market share in October of this year.

3. IntenseDebate

IntenseDebate - dubbed by RWW as the "the sophisticated blog comment system with the silly name" - provides a commenting add-in for blogs and Web sites that allows users to better manage their profiles and comments across multiple conversations. It also supports OpenID.

In 2008, distributed commenting was still a very young space with no clear leader. But when IntenseDebate appeared as the comment system on US President-elect Barack Obama's change.gov, it stepped into the public eye. Now, thousands of people are using the commenting system. This makes Automattic - the company that manages the development of WordPress - look pretty insightful for acquiring IntenseDebate this year.

4. Hulu

If Hulu - a joint video content sharing venture between NBC Universal and News Corp. - is any indication, traditional mainstream media companies are beginning to get this whole "online thing."

And with good reason. In 2008, Hulu shed its ugly duckling image and came into its own and was projected to earn a staggering $90 million in its first year. How? Again, the true turning point was the US elections. Consumers turned to Hulu as much for the political content, as for the satire - like Saturday Night Live and The Daily Show. Now, consumers are hooked and that affinity for the service is showing no sign of slowing.

5. Ning

Ning is a service designed to help anyone build a social network about anything that interests them. And in 2008, consumers flocked to the site to do exactly that - to the tune of a new social network created every 30 seconds.

As of October 2008, Ning was host to half of a million networks. And it will only continue to grow in the consumer space. Why? Much like Twitter, Ning has begun to attract celebrities who find the service a viable way of interacting with fans. Plus, with its integration of OpenSocial, Ning gains access to tech savvy consumers on a variety of social networks who already understand the dynamic.

6. Last.fm

Any app that incorporates consumer media and makes it easier to use is a winner. And that's why Last.fm, the socially driven music recommendation service, is a shoo-in for top consumer apps of 2008.

We at RWW spend a great deal of time focused on Last.fm - from the most popular songs to mashups created using its data to visualizing Last.fm friends networks - because we spend so much time on Last.fm. One thing is for sure with its redesigned site, the growing presence on mobile platforms, innovative programs, and interesting features, Last.fm is sure to continue gaining more and more fans.

7. Meebo

Meebo, always a favorite here at RWW, provides a centralized instant message platform that's accessible from any Web browser. While they've always been popular with the overly connected crowd, 2008 marks the year where Meebo has a growing opportunity to become a consumer favorite, as well.

In March 2008, we saw Meebo as having the opportunity to bring Web IM to the mainstream. Throughout the year, they continued to improve - including adding a revenue stream. And by October, Meebo had begun to roll out a partner program that will place its functionality on niche consumer sites throughout the Web. Even if consumers don't recognize Meebo yet, they will soon.

8. Mogulus

If YouTube taught people about online video and Ustream taught folks how to stream video, then Mogulus will be the service that teaches consumers how to broadcast online. And in a burgeoning HD market, where users are coming to expect crisp video and audio quality even online, Mogulus stands to become the streaming service of choice for serious videophiles.

In June 2008, we reported that Mogulus - which launched in May 2007 - was already reporting 4.5 million uniques. By September, that number had grown nearly 30% to 5.8 million. Clearly, the numbers are on the upswing.

9. Qik

Qik, the service that allows users to stream video to the Web from a mobile handset, may not be as prevalent on the consumer radar as some of these other apps. But it's safe to say it will be. While services like Mogulus have focused on the quality of the video stream, services like Qik have focused on the converse: the ability to stream content with devices that consumers are already carrying around. And that will be their key to success - the ability to deliver more content while hauling less gear.

At the beginning of the year, we wondered if Qik might be one of the breakout apps at SXSW 2008 given the number of tech types participating in its early testing. By the middle of 2008, Qik had opened its beta to more participants. And since that point, they've focused on making the service available on both mass market phones and some smart phones. No doubt, the ability to shoot video with that phone in your pocket will be as compelling to consumers as taking photos - if not moreso.

10. Cooliris

Cooliris may be the least obvious - and least recognized - of our consumer app selections, but it has that certain something that makes us sure its going to be popular with the less technically savvy. For those of you who haven't had the chance to try it, Cooliris is a browser extension that provides a 3D environment for thumbing through visual sites - like photo and video sites. What's more, it makes it fun. And that's why consumers will continue to be attracted to it.

We covered Cooliris - then called PicLens - in February 2008, finding it "a lot of fun to play with and makes searching and viewing images on the web very enjoyable." By June 2008, they had added Amazon items and YouTube videos. Even the iPhone got the Cooliris treatment with the Cooliris iPhone app. Most recently, Cooliris has unveiled features that allow users to personalize selections - and that allows Cooliris to sell more advertising. Visual browsing is still coming into its own, but Cooliris is leading the charge in a way that consumers will embrace.

Now, it's your turn. What's your opinion on these selections? Are we off? Did we miss something? Are you seeing consumer adoption elsewhere?