The Internet – Transforming the Economy

The Economic Impact of the Market-Making Internet, a study released every four years by the Interactive Advertising Bureau (IAB), reported recently that the internet contributed $48 billion to the state’s GDP in 2020 and accounted for 135,900 jobs in Arizona.

The growth in Arizona’s internet jobs has been remarkable, going from around 37,000 in 2012 to just under 136,000 in 2020 — a growth rate of 265%. Nationally, the study finds the internet economy grew seven times faster than the overall total U.S. economy, creating more than 7 million jobs in the last four years.

Recently, the IAB helped launched a national coalition, Internet for Growth, to help capture the stories of the millions of creators, entrepreneurs and small businesses that rely on the ad-supported internet so that as policy makers consider regulations, they have a full understanding of how the internet is being used to help grow and transform our economy. Internet for Growth supports the transformative role the advertising-supported internet plays in empowering America’s small businesses, ensuring people understand the limitless opportunity the internet provides for creativity and commerce, fair competition, and connecting with consumers on mutually shared values and interests, no matter the background or geography.

Internet for Growth has quickly grown to include more than 300 small businesses – including Arizona-based entrepreneurs Margaret Dunn, CEO of Dunn Transportation; Max Fose, President and CEO of Fose+McKay; and Allen Affeldt, the owner of the La Posada hotel in Winslow.

The dramatic job growth in the internet’s economic impact can be attributed to a number of factors, including the internet’s ability to improve and refine advertising and marketing approaches, particularly for small businesses. 

“The internet lowers cost to entry for all businesses, while providing a significant benefit to small businesses,” says Max Fose, president of Arizona-based advertising agency Fose+McKay. “Small businesses and the self-employed created 38% of internet jobs — a larger percentage than medium (28%) or large firms (34%). This shows how the internet democratizes business creation, allowing the smallest of firms to compete.”