The Ripple Effect
Chuck Kapelke
A new report shows the far-reaching economic impact of advertising in the United States
Advertising expenditures account for $5.8 trillion, or nearly 20 percent, of the $29.6 trillion in U.S. economic output. That's one of the key findings from a new report on the economic impact of advertising in this country, produced by IHS Global Insight, Inc., a Lexington, Mass.-based research firm. Using a model developed by Nobel Prize-winning economist Dr. Lawrence R. Klein, the report estimates the “multiplier effect,” or economic chain reaction, that ensues when advertising sparks an increase in sales for U.S....