Faster browsing leads directly to more spending, research suggests.
Broadband to every home could boost British online revenues by up £1.4 billion, according to a report by the Institution of Practitioners in Advertising (IPA).
The boost could be delivered within a year if the government’s Digital Britain Universal Service Commitment (USC) goes ahead. The scheme aims to ensure that every home in the UK has access to 2Mbps broadband by 2012.
Evidence from IPA’s Search Group experts reveals that visitors with a high speed internet connection are 36.9 percent more likely to make an online purchase than those a dial up connection.
Extrapolating that growth across the 5 percent of dial up users who would be upgraded to broadband delivers the £1.4 billion increase in online sales.
Rob Taylor, founder of TST Digital, which carried out the research on behalf of the IPA Search Group, says: “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.”