UK Internet Industry Worth £100 Billion a Year
A Boston Consulting Group (BCG) report published today (commissioned by Google) has provided further insight into the increasing importance of internet marketing to UK businesses stating that the internet accounts for 7.2% of UK GDP.
The 40 page research based document “The Connected Kingdom: How the internet is transforming the U.K. Economy”, states that the internet’s contribution to UK GDP is set to grow by around 10% per year, arriving at 10% of GDP by 2015.
Key research highlights:
- UK Internet economy is worth £100 billion a year
- If it was an economic sector the internet is the UK’s fifth largest sector making is larger than transport, construction and utilities
- Internet companies employ an estimated 250,000 staff, playing a vital role in UK employment
- Small businesses actively using the internet report sales growth more than four times greater than that of less competitive companies
- For every £1 spent online importing goods, £2.80 is exported
The following diagram (sourced from the BCG report, page 28) highlights that both SEO and online advertising e.g. PPC, plays a key role for a high proportion of businesses.
“The internet is a central pillar of the UK’s economy. The sector has come of age, and with great prospects for further growth the UK internet economy will be vital to the UK’s future prosperity.”
Matt Britain, Managing Director, Google UK
This latest report from the BCG further highlights that companies not engaging in online marketing services such as SEO and online advertising risk losing out to their competitors who have already engaged in, and reaped the benefits of the internet.