14 DAY TRIAL // With the general economic trend still in a state of uncertainty the Internet Advertising Bureau (IAB) has released a new study regarding the size of Internet advertising in the United States and its impact on the economy. The study shows that interactive advertising makes up for $300 billion of economic activity in the US.
Internet advertising spending for 2008 was of $23.4 billion, the study further shows, and the Internet sites and services that rely on advertising for revenue add up 2.1 percent of the total US gross domestic product (GDP). The companies involved in advertising-supported Internet employ over 1.2 million Americans with another 1.9 million working to support those directly involved in Internet-related jobs. This adds up to 3.1 million jobs created by the companies that rely on Internet advertising and the services catered to them.
The study was undertaken by Harvard Business School professors John Deighton and John Quelch in collaboration with Hamilton Consultants. “This is the first time anyone has undertaken a comprehensive analysis of the size and scope of the Internet economy and measurement of its economic and social benefits,” said Professor Deighton, Harold M. Brierley Professor of Business Administration at Harvard Business School. “I am convinced the results of this study will prove useful for business leaders, legislators and the educational community.”
The study also looked at the whole Internet ecosystem including E-commerce, E-mail and Enterprise websites as well as the ad-supported Internet. It showed that not only large companies benefit from it but also 20,000 small businesses that offer Internet-related services and products. “This study underscores that the Internet ecosystem is generating an increasing level of economic activity in every corner of the nation,” said Professor Quelch, the Lincoln Filene Professor of Business Administration at Harvard Business School and a co-author of the study.