The Interactive Advertising Bureau (IAB) slammed the “Banning Surveillance Advertising Act,” a bill that would effectively eliminate internet advertising in the United States, jeopardizing, state IAB, an estimated 17 million jobs primarily at small- and medium-sized businesses.
“If the sponsors understood the devastating effects this bill would have, not only on the advertising industry, but also on our entire economy, they wouldn’t have introduced it,” said IAB CEO David Cohen, who leads the organization of more than 700 media companies, brands, agencies, and technology firms. “Data-driven digital advertising is the heart of online commerce, representing an ever-increasing share of U.S. GDP. It also drives the increasing diversity of products and services consumers rely on for information, education, entertainment and connectivity.”
He pointed to a recent IAB study, The Economic Impact of the Market-Making Internet, showing the internet economy grew seven times faster than the total U.S. economy from 2016 to 2020 and accounts for 12% of gross domestic product. Of the 17 million internet-related jobs the study cites, small- and medium-sized firms are responsible for the largest share.
“Banning personalized ads would severely impact an increasingly important economic sector, stifling innovation and dramatically harming the small business community who use data-driven advertising to promote their goods and services and reach customers all over the world,” said Cohen. “This bill would make advertising less precise, more expensive, and raise costs for everyone.”