Internet already 3.7% of US economy

2012-10-01 20:31

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

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

The study released by the Interactive Advertising Bureau said the economic value 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% of the US gross domestic product (GDP) last year, up from 2.1% 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 Internet firms.

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

Many others were self-employed web designers, 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%) and consumer support service (229%) 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."

- SAPA
Read more on:    us  |  internet
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News
 

LOL! Best outdoor girl fails

It’s not only guys who have FAIL moments! Here are some of the funniest outdoor fails where girls are the victims!

 
 

Where were you when you last felt alive?

90-year-old's incredible travels
10 facts about swimming you didn't know
Halloween night run
Exciting new zipline for Cape Town!

Jobs in Cape Town [change area]

Jobs in Western Cape region

Marine Engineer / Surveyor

Cape Town CBD
Hi-Tech Recruitment - Johannesburg
R50 000 - R60 000 Per Month

Software Developer

Cape Town CBD
DAV Professional Placement Group
R360 000 Per Year

Web Application Developer

Cape Town
Datafin Recruitment

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Save up to R2100 on electronics! – As seen in the catalogue

Wishing for tech gadgets this festive? Save up to R2100 on hot tech products at kalahari.com. While stocks last. Shop now!

Toys 4 for the price of 3

Buy 4 toys and get the cheapest FREE! Offer valid while stocks last. Shop now!

Seen something you like in our catalogue?

Find the perfect gift and save up to R5000 – As seen on the catalogue. Hurry and shop now!

Mind blowing deals on electronics!

Save up to 35% on electronics. Offer valid while stocks last. Shop now!

Hot offer: Up to 50% off irons

Save up to 50% on all Philips irons. While stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

There may be some tension that is caused through social conflicts -- personal interests versus obligations. You may feel an...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.