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Consumers Driving the Digital Uptake: The Economic Value of Online Advertising-based Services for Consumers

Europeans now spend an average of 24 hours on the internet every month. Almost all of the services that they use regularly—from email, instant messaging and maps to social networks, gaming, music and video sites, and to search and price comparisonare free, funded largely by online advertising.
 
A new report commissioned by IAB Europe from McKinsey & Company examines the so called consumer surplus that advertising-supported web services generate for internet users in the UK, France, Germany, Spain, Italy, Russia and the US. The consumer surplus represents the economic value of free web services to users after deducting costs such as access to the internet and paid-for services, and after taking account of the concept of advertising disturbance.

“The IAB Europe/McKinsey study shows that advertising triples the value consumers receive from the Internet, by subsidizing such valuable services as email, comparison shopping, news alerts, social networking, and video entertainment,” said Randall Rothenberg, President and CEO, IAB US. “This work contributes to a growing body of research—including the IAB US/Harvard study on ‘The Economic Value of the Advertising-Supported Internet Ecosystem’—which shows conclusively that online advertising is a boon to consumers and citizens worldwide.”