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31 May 2022
Adspend drives growth in US sales activity
Business servicesUnited States
Expenditure on advertising will generate $9.6 trillion in additional US sales activity by 2026, over $2 trillion more than in 2020, according to a study by industry body The Advertising Coalition and research firm IHS Markit.
Why it matters
Advertising is a critical element of the national economy, driving corporate sales and providing jobs, both directly and indirectly. Some of its broader impacts include supporting a wide range of suppliers, and supporting media companies and journalism at the local and national level.
In 2020, the study found, $7.1 trillion in additional sales activity was generated by $325.6 billion of adspend.
That same year, fully $2.8 trillion in sales were directly stimulated by advertising, with a further $4 trillion attributable to indirect sales resulting from this activity.
That includes money flowing through supply chains, and salaries for employees who then go on to buy consumer goods and services.
While an estimated 551,000 people work directly in advertising and marketing, the study suggested the sales supported by ads support 28.5 million jobs, from a total workforce of 145.7 million.
Adspend is pegged to hit $465.6 billion in 2026, helping power over $9 trillion in additional sales activity.
The big idea
"Advertising is not a luxury, but an absolute necessity. Businesses large and small, national and local depend on advertising to communicate with consumers, drive sales and growth.” – Steve Pacheco, president/CEO, American Advertising Federation.