UK Web Industry value soars to £100 billion

November 26, 2010

A report by the Boston Consulting Group, the world’s leading advisor on business strategy, has shown that the internet is worth £100 billion to the UK economy. The sector currently outperforms utilities, restaurants, transportation and construction. It is nearly as big as the financial service which makes up 9% of GDP.

Even this may be underestimating its true value. The internet is estimated to contribute 7.2% of UK GDP but these figures do not include business-to-business e-commerce, worth around £360bn, and online advertising, worth £3.5bn.

Consumer benefits are not included either. They involve buying products researched online and the benefit of free online content.

The report, commissioned by Google UK has also shown that the UK has the largest per capita e-commerce market in the world and the second largest online advertising market.The UK is a net exporter of e-commerce goods and services.  For every £1 of services it imports there are £2.80 worth of exports.

One of the report’s authors, Paul Zwillenberg, described the growth as, “astounding,” with the internet allowing UK companies to compete in international markets. The success of small and medium sized UK businesses active on the internet has also helped to increase growth. As online shopping continues to prove extremely popular, online advertising has boomed with companies continually striving to attract shoppers to their sites. In the UK, online advertising is worth around £3.5 billion a year, second only to the US.

The good times for the online sector are also expected to continue as the report estimates that the internet economy will grow 10% in the next five years. The crux of this prediction lies within broadband distribution and the government’s targets to create internet usage in every home. If these aims are fulfilled by 2015, the internet industry could contribute up to 13% of GDP per year.

SOURCE: ShareCast via web marketing group

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