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Thursday, 7th January 2016

Paving the Way: How Online Advertising Enables the Digital Economy of the Future

Source: IHS via IAB Europe

From Executive Summary:

€46 billion were invested in online advertising in Europe in 2014. Out of this sum, publishers active Europe generated revenues €30.7 billion from online advertising, or 30.4% of all advertising revenue.

In terms of gross value added (GVA), a standard measure of the contribution to the overall economy similar to GDP, €22 billion are directly attributable to online advertising in the EU-28. Advertising includes a multiplier effect throughout the economy as Euros flow through supply chains (indirect effects) and as companies and their supplies hire and pay employees (induced effects). Considering these effects, the contribution of online advertising increases up to €113 billion...

0.9 million European jobs (or 0.4% of the EU-28 total) are directly supported by online advertising; this increases to 1.4m jobs if indirect and induced effects are considered, and to 5.4 million, or 2.5% of the EU-28 workforce, if broader ripple effects are taken into account.

Online advertising is an integral funding model for high-growth digital sectors in Europe. In 2014, 54% of all online video revenues in the EU-28 were generated by advertising. For the publishing industry, advertising is by far the most important source for funding journalistic content with 75% of all their online revenues coming from advertising. Similarly, the buoyant mobile content market depends on advertising. In 2015, paid-for app revenues have been replaced by advertising as the top revenue source.

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Having begun his career in academic libraries, Adrian Janes has subsequently worked extensively in public libraries, chiefly in enquiry work as an Information Services librarian. In this role he has had particular responsibility for information from both the UK Government and the European Union. He wrote a detailed report on sources for the latter which was published by FreePint in 2007, and has contributed articles to FreePint and ResourceShelf. He is involved in training in information literacy and the use of online reference resources.

A Contributing Editor to DocuTicker, he also write reviews for Pennyblackmusic.

More articles by Adrian Janes »



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