A new study from the Internet Innovation Alliance (IIA), an industry advocacy group, found that after factoring in the cost of a mobile data plan and a home broadband connection, the average American household saves just over $10,500 per year on spending because of their access to the Internet.
Using data from the Bureau of Labor Statistics' annual Consumer Expenditure Survey as well as other sources, the IIA found that having a mobile data plan and a broadband connection at home allows consumers to take advantage of virtual marketplaces, Internet tools and web-exclusive discounts as well as do comparison shopping. The result is an annual savings of around $11,944. And that figure is up significantly from 2010 when the IIA estimated that consumers with a high-speed Internet connection saved $7,707 annually.
"Without question, the return on investment in broadband connectivity outweighs the cost, with unmatched chances for deal comparison, competitive pricing, and group-buying," said Nicholas J. Delgado, a certified financial planner with Dignitas, who partnered with the IIA on the study.
The IIA study analyzed what the typical family can save yearly on necessities such as housing, food and clothing, entertainment, gasoline and health insurance as well as services like bill pay and news, by using the Internet.
Compared to the 2013 IIA analysis, the greatest savings for consumers was in the entertainment and automotive categories. For example, consumers who cut the cord on their cable service could save $1,068.12 over 12 months, according to IIA.
- see this release
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