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IPA Broadband Ecommerce

IPA eyes growth of additional £1.4bln in ecommerce through Digital Britain

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By The Drum Team, Editorial

February 25, 2010 | 2 min read

Research published by the IPA has found that an additional £1.4bn in revenue could be generated through online sales if every home in the UK has access to 2Mbps of broadband by 2012, a strategy laid out in the Digital Britain report.

Through the use of existing statistics by the Office of National Statistics, the IPA concluded that £1.4bln could be made, with the statistics also concluding that website sales totalled £104.7bln in 2008.

Evidence provided by the IPA’s Search Group revealed that visitors with a high speed internet connection were 36.9 per cent more likely to make a purchase online than those with low speed connections.

The Government’s USC strategy aims to provide the 4.9per cent of dialup users with a faster connection, which the IPA believes will mean an increase in e-commerce of £1.4billion.

Rob Taylor, Founder, TST Digital, who carried out the research on behalf of the IPA Search Group, commented: “It’s evident from this research that the Government’s Digital Britain initiative represents a great opportunity to drive economic growth and competitive advantage. Not only could the higher connection speeds result in £1.4 billion more money directly entering the digital economy, it is also likely to lead to more jobs and greater digital expertise, not to mention a fantastic return on investment.”

Hamish Pringle, director general of the IPA, added: “We very much hope that the IPA Search Group forecast gives the Government a bit more confidence in delivering on Lord Carter’s vision and that his fellow peers will see the potential financial benefits that will accrue to UK plc. From the advertising, media and marketing communications industry perspective we also see the Universal Service Commitment as a key element in maintaining our leadership position as ‘Creative Britain.”

IPA Broadband Ecommerce

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