Research Finds Advertising Brings Trillions To U.S. Economy
Advertising accounted for $3.4 trillion of the U.S. GDP in 2014 reports the Association of National Advertisers (ANA) and The Advertising Coalition. Their study surveyed advertising’s contribution to national, state and regional economic activity in 17 industries, and found that it is a key driver in 19 percent of the nation’s total economic output.
“This new study underscores the essential nature of advertising in promoting both business and economic growth in this country,” says Bob Liodice, president and chief executive officer of ANA. “The very fact that this industry contributes nearly 20 percent to the nation’s GDP sends a powerful reminder to policymakers that advertising is an essential stimulus to the U.S. economy that should be promoted and not subjected to a tax. We have long known that the economic value of advertising extends into other sectors like manufacturing, agriculture, healthcare, retail and numerous other areas of the economy. ANA is proud to see data that affirms that advertising is a major contributor of revenue and a true engine of job creation in the U.S.”
The research found that advertising generated $5.8 trillion in overall consumer sales including direct, indirect and induced expenditures, representing 16 percent of all sales activity in the U.S. It forecast that advertising spending will increase 3.3 percent each year, on average, through 2019, and that by 2019 advertising will directly and indirectly foster $7.4 trillion in U.S. economic activity and support more than 23 million jobs. In 2014, advertising supported 20 million jobs.
“Time and again, the data supports that advertising brings a unique benefit to the U.S. economy,” says Bob Flanagan, director at IHS. “When considering the impact the advertising industry has had on the output of goods and services in this country, and the creation and retention of U.S. jobs as a result, there are very few American industries that can compare in terms of across-the-board economic value.”
The full report and an executive summary can be found here.