The advertising economy
A new study from the Advertising Association and Deloitte reveals that for every £1 spent on advertising, £6 is generated for the UK economy. Can the industry capitalise on this by lobbying for greater freedom?
Even among advertising people, the question as to how their activities create economic value is a matter of some debate. That's why the study we have just published 'Advertising Pays: How advertising fuels the UK economy' has been such a challenge. It examines – and for the first time, seeks to quantify – just how advertising affects the way markets operate, and its impact on the overall UK economy.
We already know that UK firms spend in the order of £16 billion on advertisements each year and it is estimated that there are approximately 500,000 people whose jobs are directly or indirectly dependent on advertising. But the key message from our study is that the economic role of advertising is much broader than is captured in a simple supply chain analysis, because advertising is fundamental to a market economy (Figure 1).