Global Insight Study Demonstrates Economic Benefit of Advertising
The Advertising Coalition, of which ANA is a founding member, recently updated an important study that demonstrates the economic benefit of the advertising industry. The study, conducted by IHS Global Insight, Inc. and based on a model developed by Nobel Laureate in Economics Lawrence Klein, was released at ANA’s "Masters of Marketing" conference.
The study’s key findings show that advertising plays a major role in bolstering the nation's employment figures and economy. Ad expenditures account for $5.8 trillion of the $29.6 trillion in U.S. economic output (20 percent) and support 19.8 million of the nation's 133.4 million jobs (15 percent) in the U.S. It also found that annually, U.S. businesses spend $279 billion in advertising – and every dollar of this ad investment generates nearly $20 of economic output and results in the creation of 69 American jobs.
The study assesses advertising's economic impact across 52 industries, plus government, in every state and Washington, D.C., as well as in each of the 435 U.S. Congressional Districts. It is an important tool we utilize in informing policymakers of the importance of advertising and why taxes or bans on ads would be misguided.