1 TRY of Digital Advertising Spend Generates 17.2 TRY for the Turkish Economy

1 TRY of Digital Advertising Spend Generates 17.2 TRY for the Turkish Economy

1% Growth in Online Advertising Investment Increases GDP by 450 Million TRY

According to the ‘Multiplier Effect of Digital Advertising Research’ conducted by IAB Turkey, IPSOS and Bogazici University the Faculty of Economics and Administrative Sciences in 2015, online advertising has contributed 27.5 billion TRY to the economy and created jobs for 1.26 million people.

Internet World Stats 2016 Q3 statistics, shows that worldwide one out the two people is an Internet user, while almost half of the population in Turkey uses Internet (31 million active Internet users above the age of 12 – Source: IAB Turkey AB Turkey Internet Audience Measurement Research October 2016).

As a result of increasing number of internet users, technologies enabling development of digital advertising and usage of these technologies in new business fields; a new term called “digital economy” has been emerged. The digital economy is defined by Accenture Strategy- Digital Disruption Growth Multiplier report as the share of total economic output derived from a number of broad “digital” inputs. These digital inputs include digital skills, digital equipment (hardware, software, and communications equipment) and the intermediate digital goods and services used in production. Accenture Strategy Research estimates that the digital economy, involving some form of digital skills and digital capital, represents 22.5 percent of the world economy. Where online advertising plays a triggering role as IAB Turkey believes.

From this perspective, as the leading NGO of the digital industry, IAB Turkey has initiated “Multiplier Effect of Digital Advertising Research” aiming to measure digital advertising’s direct and indirect effects on the economy. The research has been conducted by IPSOS and Faculty of Economics and Administrative Sciences of Bogazici University and supported by Kariyer.net.

In the study 2012-2015 GDP numbers, platform-based media investments, population, and unemployment data have been compiled via Genetic Algorithm model by IPSOS and online advertising’s contribution to the total economy has been calculated.

Online advertising is growing in double digits since 2011 and it is in a position of driving force of advertising industry as a whole.

The above graphic shows the effect of online advertising on the growth of advertising industry only. Genetic Algorithm modelling used in the Multiplier Effect Research asses online advertising with its direct and indirect effects, and reveals that;

In 2015,

• 1% growth of online advertising generates 450 million TRY increase in GDP.
• Online advertising made a contribution of 27.5 billion TRY to the economy.
• Created job opportunity for 1.26 billion people.
• 1 TRY of digital ad spend generates 17.2 TRY for the Turkish economy.

All these figures highlight the potential of online advertising with its capacity of employing young population.

“Growing number of Internet users is increasing the power of digital platforms to be used as advertising mediums. This can be seen clearly in online advertising investments. In Europe, online advertising investments reached 30.7 billion € in 2015 and surpassed TV ad investments for the first time. A similar research carried out by IAB Europe and IHS also depicts that ‘digital is generating employment for 5.4 billion people in Europe and creating 113 billion value on economy in direct or indirect ways. According to our research in Turkey, online advertising has contributed 27.5 billion Turkish Liras to the economy and created employment for 1.26 million people in 2015,” said Dr. Mahmut Kursun, Chairman of IAB Turkey.

Bogazici University Faculty of Economics and Administrative Sciences Dean Prof. Dr. Ayşegül Toker, emphasized digital economy triggered by online advertising as a revolutionary change on business practices and said: “There will be more need for young professionals who have the capacity of analyzing ‘data’ with IT and marketing skills. As a university, we care about the industrial collaborations in order to satisfy this need. We also believe that there should be more educational programs which are oriented to needs of business world.”