Economic study

Economic Study Reveals Internet Contributes to 1 Million Jobs and $392 Billion in GDP in California

Local businesses join the coalition to share how their businesses are benefiting from the internet

SACRAMENTO, Calif., April 6, 2022 /PRNewswire/ — After a recent economic study established direct links between the Internet ecosystem and economic growth in California, CaliforniaNew York-based businesses are joining the National Internet Coalition for Growth to help tell their individual stories of how they and their businesses have benefited from the Internet ecosystem.

The Economic Impact of the Market-Making Internet, a study published every four years by the Interactive Advertising Bureau (IAB), finds that the Internet has contributed $392 billion to the state’s GDP in 2020 and represents more than 1.1 million jobs.

The growth in California Internet jobs have been remarkable, growing from just over 290,000 in 2012 to 1.1 million in 2020, a growth rate of 283%.

Recently, the IAB helped launch a national coalition, Internet for Growth, to help capture the stories of the millions of creators, entrepreneurs, and small businesses who rely on the ad-supported Internet so that, When policymakers consider regulations, they have a full understanding of how the Internet is being used to help grow and transform our economy. Internet for Growth has over 300 small business members, many of which are based in California including AE Modern Construction in North Hollywood and the Mexican restaurant Rancho Los Magueyes in Uplands.

“This kind of growth shows how essential the internet is to our state’s economy and to businesses of all sizes and in all industries,” said Diana Eloeva, director of AE Modern Construction at North Hollywood. “I joined the Internet for Growth coalition because I want policy makers to understand how critical the internet is to my business and how important it is to every part of our state’s economy, whether it’s Silicon Valley or San Fernando Valley.”

According to the study, California alone is home to 30 congressional districts that each have at least 10,000 internet-dependent jobs. In seven congressional districts in California, Internet-related jobs employ at least 5% of the population.

This dramatic job growth can be attributed to a number of factors, including the Internet’s ability to improve and refine advertising and marketing approaches, especially for small businesses.

“The Internet lowers the cost of market entry for all businesses, but is especially important for small businesses,” said Gustave RiveraManager of the Mexican restaurant Rancho Los Magueyes in Uplands, California. “Small businesses and freelancers created 38% of Internet jobs, more than medium-sized (28%) or large businesses (34%). This clearly shows how the internet is democratizing business creation, allowing even independent restaurants and small businesses to compete. .”

“The internet has been crucial to our survival during the pandemic,” Rivera said. “Through our website, we are able to take online orders, which was a lifesaver for us when in-person dining was closed. We use Instagram to advertise our dishes and cocktails to our customers, as well as for announcing promotions and sending out news and updates. These tools have been essential to the survival of our business over the past two years.”

Nationally, the study finds that the internet economy has grown seven times faster than the overall US economy, creating more than 7 million jobs over the past four years.

About Internet for Growth
Internet for Growth, an initiative of the Interactive Advertising Bureau, supports the transformative role the ad-supported Internet plays in empowering America’s small businesses, helping entrepreneurs turn their ideas into reality. Supported by a diverse community of over 700 IAB members, including marketers, agencies, publishers, platforms and ad tech providers, as well as hundreds of small businesses and creators, we’re showcasing highlights the benefits the Internet brings to local economies, expanding opportunities for innovators to reach markets far beyond their neighborhoods. Our work ensures that people understand the limitless opportunities the Internet offers for creativity and commerce, fair competition, and connection with consumers on mutually shared values ​​and interests, regardless of background or geography.

Media Contact: Ashley Lautzenhiser
[email protected]310-968-3556

SOURCE Internet for Growth