RSS LinkedIn Google Plus

Call us: 0800 014 9884

UK has the 6th largest internet economy

UK_has_6th_largest_internet_economy_6131

UK 6th in the world

A report commissioned by Google has revealed that the UK’s internet economy is worth £100 billion. The Connected Kingdom was conducted by Boston Consulting Group, and concluded that the UK has the 6th largest internet economy in the world.

Consumption accounted for £59 billion of the total, including online trading and shopping, and the cost of connections and devices. The rest of the £100 billion is made up of investment in the internet infrastructure and government spending. The grand total puts the internet ahead of the transport, tourism and construction industries in terms of value.

Research also revealed that the internet accounts for 7.2 per cent of the UK’s GDP in 2009, but this is set to rise. The report estimates that the industry’s share of the economy will increase by around ten per cent each year, reaching a GDP of ten per cent by 2015. Internet businesses directly employ 250,000 people in the UK, and see annual revenues of around £50 billion.

B2B not included

However, the report added that “since many of these companies sell to other businesses, this amount is not comparable to our GDP calculation”. B2B e-commerce and online advertising are therefore not included in the final figures; the report reveals that B2B transactions totalled £360 billion in 2008, and online marketing was worth £3.5 billion in 2009.

BCG partner Paul Zwillenberg told the BBC, “Several industries – including media, travel, insurance and fashion – are being transformed”. The positive effect of the internet and online advertising on the commercial and offline economy is discussed in the report, but unfortunately cannot be measured.

Written by rachel_hand_swapRachel Hand

Testimonials

"theEword soon became an essential extension to our internal online marketing team."

~ Screwfix Bathrooms ~

  Screwfix Bathrooms

"We are extremely happy with the online visibility achieved through SEO and PPC."

~ Pure Student Living ~

  Pure Student Living

"theEword has consistently produced great results; very happy with the service."

~ Parasol ~

  Parasol

"theEword team has excelled itself in terms of client service, campaign measurement and responsiveness."

~ Linder Myers ~

  Linder Myers

View more of our testimonials »

Google acquires Firebase Wednesday 22nd of October, 2014by Dan Moores Google has acquired Firebase, a cloud service company that allows developers to build web and mobile apps quickly and easily, as well as store and sync data in realtime.

More on this story »

Microsoft devises new 'ubiquity' strategy for Bing Monday 27th of October, 2014by Dan Moores In an effort to increase Bing's market share, Microsoft executives have revised the strategy for the company's search engine and its paid ad services.

More on this story »

Twitter withdraws Google Glass support Wednesday 29th of October, 2014by Andy Williams Twitter has quietly announced that it has pulled its app from Google Glass with immediate effect, although a third party developer could step in and fill the gap.

More on this story »
theEword - 1 day ago

Think about semantic search - write blogs that answer people's common questions #contentontoast

Reply Retweet Favourite

theEweekly Wrap: 10 Oct Friday 10th of October, 2014by Martin Lindley This week: Facebook gets hyperlocal ads, Microsoft CEO has gender pay trouble, and comedy club starts pay per laugh system.

More on this story »

theEweekly Wrap: 17 Oct Friday 17th of October, 2014by Dan Moores theEweekly Wrap: Google readies Android 5.0, HBO plans streaming service, and Bono says sorry.

More on this story »

theEweekly Wrap: 24 Oct Friday 24th of October, 2014by Martin Lindley This week: Mediative researches search behaviour, Microsoft drops Nokia brand, and Tinder gets premium service.

More on this story »

Who loves theEword

Who loves theEword Who loves theEword