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IAB study: Ad-Supported Internet Represents 6% of U.S. Total GDP

Manuela Walfenzao| 15 de marzo de 2017

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$1.121 trillion is the amounts generated by the ad-supported internet ecosystem for the U.S. economy in 2016, according to the study, The Economic Value of the Advertising-Supported Internet Ecosystem, commissioned by IAB (Interactive Advertising Bureau), and led by Prof. John Deighton, the Baker Foundation Professor and the Harold M. Brierley Professor of Business Administration, Emeritus, at the Harvard Business School. “The internet has become central to Americans’ day-to-day lives as they read, watch, shop, and connect on digital screens” said Dave Grimaldi, EVP, Public Policy, IAB. “In turn, the U.S. economy has reaped the benefits, becoming increasingly data driven, stimulating growth at an accelerated pace—the rapid rise associated with the take-off phase of an industry, rather than one that has been established for over two decades.” Regarding employment, the study found that ad-supported internet is responsible for 10.4 million jobs in the U.S., accounting for 7.3% of the country’s total nonfarm employment. In addition, the annual growth rate was 19.6% from 2012 to 2016, far exceeding the U.S. total nonfarm employment annual growth of 1.8 percent over the same four years. Surprising, 86% of the ad-supported internet economy’s direct employment and value currently lie outside the conventional centers of internet industry concentration such as thee San Francisco Bay Area, New York’s Manhattan, Virginia’s Arlington County, Boston’s Route 128, and Seattle/Tacoma. While California’s Silicon Valley, accounts for only 4% of jobs directly attributed to the ad-supported internet. “The ad-supported digital ecosystem has proved to be a powerful economic driver and job creator in the U.S.” said Randall Rothenberg, President and CEO at IAB. “This research underscores the industry’s ability to touch lives and support families across the country, fueling the economy from coast-to-coast, whether through big-name companies or mom-and-pop operations that depend on the internet for their livelihoods. I’m proud to say that IAB members make up the lion’s share of companies responsible for the largest uptick in new jobs since 2012, and we’ll work together to ensure that digital provides strong economic value to the U.S. in the years to come.”

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