The US advertising industry will help drive $151 billion (€122.78bn; £83.87bn) into the New York City metropolitan area economy this year, according to a new study conducted for the Advertising Tax Coalition – a body comprising nine national media and advertising trade associations.
The total economic activity generated by advertising (inclusive of direct spending, supplier spending and inter-industry activity) is estimated to account for a projected 18.9% of the region's $800bn economic activity and an estimated 679,151 jobs, or 16.2% of the area's 4.19 million workforce.
These findings come from a new study -- the Comprehensive Economic Impact of Advertising Expenditures -- conducted by Global Insight, under the direction of Nobel Laureate in Economics Dr Lawrence R Klein.
It estimates that total advertising spending by businesses in New York City for 2004 will reach $12bn. In addition to this sum, the direct impact on area sales will be $68bn, plus supplier economic activity of $33bn and the impact on inter-industry economic activity of $38.4bn. In total $151.4bn.
The estimated 679,151 jobs supported by ad spending in the NYC area are made up of 365,934 jobs from sales directly generated by advertising, another 144,939 jobs generated in suppliers of products and services to the direct sales employers, and 168,278 jobs from third tier inter-industry jobs.
Says Klein: "This landmark study demonstrates that advertising stimulates additional purchases by providing important and useful information to a broad range of purchasers in households and businesses - a critical function in a market economy."
"Advertising fulfills the critical role of informing and educating consumers about the many choices available to them in the marketplace. The dollar figures underscores the vital service and economic role our industry plays in our daily lives."
The Advertising Tax Coalition, which coordinate efforts to fight federal advertising tax proposals was formed in 1988 and now comprises nine associations.
These are: the American Advertising Federation; the American Association of Advertising Agencies; the Association of National Advertisers; the Grocery Manufacturers of America; the Magazine Publishers of America; the National Association of Broadcasters; the National Cable & Telecommunications Association; the Newspaper Association of America; and the Pharmaceutical Research and Manufacturers of America.
Data sourced from Association of National Advertisers (USA); additional content by WARC staff