A new report suggests that UK businesses will benefit significantly if the government’s targets for blanket broadband coverage are met.

Broadband is now considered to be an essential commodity for home users as well as business customers and although the importance of high speed broadband for businesses is well known, it is equally important that sufficient customers are able to get online and access services in driving revenues.

According to a new report authored by the Institute of Practitioners in Advertising (IPA), UK businesses could net an additional £1.4 billion in ad revenue if every household in the UK is given access to a 2Mbps (minimum) broadband connection, which is the government’s plan.

It is estimated that nearly five per cent of UK citizens are stuck with sluggish dial-up internet connections, whilst many more have no kind of internet access at all in their homes. This means that there is an untapped market out there from which businesses could benefit if universal broadband becomes a reality.

The IPA believes that nearly 37 per cent of consumers would make a purchase online if their internet experience was boosted with a broadband connection, which would make ad space more valuable and drive further revenue for businesses in all sectors.

The IPA’s Nigel Gwilliam noted the degree to which broadband had shaped market trends and influenced the behaviour of consumers online. Mr Gwilliam also said that the new report was the first of its kind, demonstrating that home broadband connectivity was directly linked into the success of businesses.

Simple Broadband’s Communication Manager Simon Gerrard added that “Businesses will benefit hugely from the arrival of universal broadband and the best news is that the opportunities will be relevant to any enterprise from any background with the ambition to make waves online.”