Internet 'ecosystem' is 3.7% of US economy: study

Oct 01, 2012

The advertising-supported Internet "ecosystem" generated $530 billion last year and supported 5.1 million jobs in the United States, an industry study said Monday.

The study released by the said the of online industries has roughly doubled since 2007.

Researchers from the Harvard University Business School commissioned by the IAB, said this amounted to 3.7 percent of the US gross domestic product (GDP) last year, up from 2.1 percent four years ago.

"The substantial economic impact of the Internet—through its evolution and dynamism—has been borne out by this study," said study author John Deighton.

"Once accessed only from large desktop machines that connected the office or home to the world, the Internet, thanks to mobile phones and tablets, has become ubiquitous."

The report, "Economic Value of the Advertising-Supported Internet Ecosystem," was unveiled at the annual IAB conference to quantify the significant role the ad-supported digital sector plays in the broader US economy.

The report shows New York and California as home to the headquarters of the largest number of US .

The jobs support by the Internet include 375,000 in one-person firms and small companies, many of whom sell on Amazon, and other sites.

Many others were self-employed , writers and programmers.

App development alone accounted for 35,000 full-time equivalent jobs, the study concluded.

The biggest increase in jobs over the four-year period was seen within the infrastructure (300 percent) and consumer support service (229 percent) sectors.

The study said digital industries directly employ two million Americans, and another 3.1 million jobs are supported indirectly by online activity.

"The rapid growth of the ad-supported Internet has become a major driver in the US economy," said Randall Rothenberg, president and chief executive of the IAB.

"With encouragement from regulators and legislators in Washington, DC and other world capitals, there is no doubt that the interactive marketplace will bring an even greater number of jobs into the fold—not only in America, but across the globe—providing strong economic value in the years to come."

Explore further: Out-of-patience investors sell off Amazon

add to favorites email to friend print save as pdf

Related Stories

Signs of recovery for online ad market in US

Apr 07, 2010

Online advertising revenue hit a record 6.3 billion dollars in the United States in the fourth quarter of the year, a bright spot in an otherwise dismal year, according to a report on Wednesday.

Half-year record for US online ad revenue: IAB

Oct 12, 2010

US online advertising revenue rose 11.3 percent during the first six months of the year to 12.1 billion dollars to set a half-year record, the Interactive Advertising Bureau (IAB) said Tuesday.

Recommended for you

Out-of-patience investors sell off Amazon

12 hours ago

Amazon has long acted like an ideal customer on its own website: a freewheeling big spender with no worries about balancing a checkbook. Investors confident in founder and CEO Jeff Bezos' invest-and-expand ...

States ascend into the cloud

19 hours ago

Seven years ago, the state of Delaware started moving computer servers out of closets and from under workers' desks to create a consolidated data center and a virtual computing climate.

Microsoft drops Nokia name from smartphones

21 hours ago

Microsoft said Friday it was dropping the Nokia name from its Lumia smartphones, rebranding following the acquisition earlier this year of the Finnish group's handset division.

Amazon's loss makes holidays a question mark

21 hours ago

Amazon's trademark smile icon is becoming more of a grimace. The world's largest online retailer reported a wider third-quarter loss than analysts expected and gave a disappointing holiday forecast.

User comments : 7

Adjust slider to filter visible comments by rank

Display comments: newest first

not rated yet Oct 01, 2012
How dare that filthy, evil gubderment invent the internet. And how dare Visionaries like Al Gore create and enact the legislation that makes it open to the public.

When will people learn that Government can only destroy industry and destroy jobs.
1 / 5 (1) Oct 01, 2012
'And how dare that republitard, George Bush, for not vetoing the legislation. When will people learn that they are just a bunch of little tards'
1 / 5 (1) Oct 01, 2012
...George Bush, for not vetoing the legislation.
What legislation did Dubya not veto?
3 / 5 (2) Oct 01, 2012
JaJack thinks that George Bush could Veto the legislation created by Gore that opened the internet to public access, 15 years after it was passed.

JaJack is a typical American RepubliTard. Ignorant of it's own recent history, and oblivious to reality.

It will be fun watching them soil their underpants in protest as Obama is re-elected.
4.6 / 5 (45) Oct 02, 2012
How dare that filthy, evil gubderment invent the internet. And how dare Visionaries like Al Gore create and enact the legislation that makes it open to the public.

When will people learn that Government can only destroy industry and destroy jobs.

The capitalistic economy adopted the Internet and made it what it is today. The only thing the government had to do with it is getting out of the way so it could flourish.

The idea of the "Internet" was obvious from half a century ago,.... but still yes, of the countless wasted trillions of dollars, the government occasionally backs something worthwhile. However, unless the free market decides that it is useful to capitalism, it sits on some shelf collecting dust.

You better hope that Romney doesn't win,... no more government cheese and food stamps for you.

4.6 / 5 (45) Oct 02, 2012
,... the government is responsible for infrastructure. Your doppy statement is like saying the success of the US free market is due to the government because the government builds roads,... like Obama's "you didn't build that statement".
4.6 / 5 (45) Oct 02, 2012
The ancient afircan dung beetle was the first to make bricks, therefore we owe skyscrapers to an insect.