According to a recent analysis by the Interactive Advertising Bureau (IAB) in the UK, the online ad industry in Europe now accounts for 1.4 million jobs and €100 billion of Gross Value Added (GVA).
The study, “Paving the way: online advertising in the European economy,” represents the first serious attempt to detail online advertising’s contribution to the overall EU economy as measured in jobs.
“Online advertising generated € 30.7 billion of revenue for European publishers in 2014, nearly a third of total advertising revenue,” according to IAB. “Looking purely at digital publishing (as opposed to traditional and digital combined), advertising is by far the most important source for funding journalistic content, providing 75 percent of all online revenues.”
The surging mobile content market also depends on advertising. Interestingly, in 2015, advertising replaced paid-for app revenues as the top revenue source, says the IAB.
“Digital is now the second largest advertising sector in Europe, behind only television,” the report noted. “By the end of 2015, it is predicted to pull ahead of TV in at least the most advanced EU markets.”
The upshot? As the revenue source, online advertising provides European consumers with a wide range of educational, scientific, informational, and entertainment services at little or no cost.
“As advertising becomes increasingly data-driven and technology-centric, the sector is at the forefront of hiring and nurturing talent that possesses the skills to transform and future-proof other industries”, said Townsend Feehan, CEO of IAB Europe.
In short, the economic impact is significant.
“This study highlights the significant contribution of digital advertising to the economy, and the UK plays a huge part in that – in 2014 over £7billion was spent on online advertising in the UK, the largest market in Europe” IAB UK CEO Guy Phillipson said.