The Ripple Effect

Following the report from IHS Global Insight on the economic impact of advertising in the USA, it was shown that advertising expenditures account for $5.8 trillion, or nearly 20 percent, of US economic output.

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....

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