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18.1.2011 Online models must change

Advertisers and media owners must overcome a €100bn "surplus" between the value consumers extract from the web and the amount of money it generates, McKinsey has said. The consultancy surveyed 4,500 Europeans and Americansabout their online preferences, supplementing the results with analysis of popular behaviour, and suggested the annual value of internet usage stands at €150bn. Such value might be generated from common online behaviours, such as browsing social networks or watching free video. But McKinsey also found that shoppers only spend €30bn to access digital services like gaming and music platforms. "Consumers derive significant value from all they do on the web, and since advertising pays for much of this, it involves no immediate out-of-pocket cost," it said.

Protection from intrusive ads and data privacy risks may be worth another €20bn, based on estimates made after participants were asked what they might pay to more tightly control such areas. Having combined these figures, McKinsey stated a "substantial consumer surplus" of €100bn remains, potentially reaching €190bn in 2015 as broadband and mobile device penetration rises. It based this total on subtracting the price paid for using services from their real value, and then deducting the cost people would meet to limit interruptive ads and information abuse while continuing to enjoy the ad-funded internet.

B.L. 18.1.2011