Talk about a winning formula.
It now appears that the ad-supported internet ecosystem generated $1.121 trillion for the U.S. economy in 2016. That’s twice the return it gave in 2012.
The news comes from an Internet Advertising Bureau (IAB) commissioned study 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 Economic Value of the Advertising-Supported Internet Ecosystem” report posits that the ad-supported internet can take credit for 10.4 million jobs in the U.S. — twice the number of jobs the industry supported in 2012.
“The ad-supported internet ecosystem today accounts for 6 percent of the U.S. gross domestic product (GDP), representing a 20 percent compound annual growth rate from 2012 to 2016—five times the average American GDP growth during the same period,” notes the report.
Contrary to conventional wisdom is the study’s finding that about 86 percent of the ad-supported internet economy’s direct employment and value happen in corners far from Silicon Valley and major urban centers. For instance, California’s Silicon Valley accounts for only 4 percent of jobs directly attributed to the ad-supported internet.
The study drills deep into the details of the internet economy, from jobs and GDP to other economic and societal impacts.
To take in the complete findings of the “Economic Value of the Advertising-Supported Internet Ecosystem” study, click here.