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IAB Turkey Multiplier Effect of Digital Advertising Research

The Economic Value of the Advertising-Supported Internet Ecosystem

This report examines the relationship between digital advertising investments and the economy between 2011 and 2016 and analyzes the effect of these investments on the economy.

The internet is leaving its mark on the 21st century socially, economically, and technologically. It continues to radically change lifestyles, business paradigms, and marketing and communication methods.

The internet and digital advertising–which affect us daily on websites, social media, search engines, and mobile–create an enormous ecosystem of technological infrastructure. The digital world has become one of the cornerstones of economy, supporting youth employment by fueling entrepreneurial intelligence, innovation, and creativity.

Digital and traditional advertising contribute to the economy in several ways. Besides the direct effects of advertising on employment and economic output, developments in media, content-related, and digital industries have indirect economic effects.

As digital advertising gains prevalence and substitutes traditional channels, it creates new value in a variety of industries. New technologies, including analytics, mobile, the “Internet of Things,” and “Big Data,” shape institutions, business models, and sectors. The institutions and countries which best manage the shift to digital will be economic leaders.

Since the digital economy represents 22.5 percent of the world economy, IAB Turkey, Ipsos Research, Consultance Inc., and the faculty of Economic and Administrative Sciences of Boğaziçi University wrote “Multiplier Effect of Digital Advertising Research” to identify the effects of the digital advertising ecosystem on the economy as a whole.

This study is unique because it utilizes a “genetic algorithm” model which reaches a solution through a combination of more than 100,000 models.

Online advertising’s total contribution to the economy was calculated using the Genetic Algorithm Model by IPSOS and data including 2012-2016 GDP statistics, platform-based media investments, and population and unemployment metrics.

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