The UK is now home to the largest per capita e-commerce market and the second largest online advertising market globally. However, the character of the UK internet economy is not well understood. To address this gap Google UK commissioned The Boston Consulting Group to produce an independent analysis of the value of the UK’s Internet economy, the factors that are driving this, how we compare to other countries, and how this will change in the future.
Selected findings from the report
Last year the Internet contributed an estimated £100 billion or 7.2% of GDP to the UK economy. This is larger than that of the construction, transportation or utilities industry. Around 60% of the internet economy is driven by consumption.
The internet has been particularly beneficial for small and medium enterprises. Proprietary research shows that SMEs which are more active online are more successful, growing more quickly and reaching wider markets than their peers
The UK internet economy is likely to grow by 10% per year reaching 10% of GDP by 2015
About 62% of adults or 31 million people have bought goods or services online in 2010. Collectively they spent about £50 billion in 2009 on goods and travel. The clothing and sporting goods category is the most popular. Half of travel is booked online.
Consumers benefit from the internet by purchasing products offline which they researched online (about £40 billion per year); saving money through online shopping (about £18 billion per year); and by consuming free online content (about £5 billion per year)
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