Is the reason you work in adland the fact it’s full of attractive people and you can often drink at your desk? Well, now there’s another reason to to be cheerful – you’re adding $40 billion to the economy every year, apparently!
According to a report by Deloitte Access Economics and commissioned and released this morning by The Communications Council, advertising spend contributes $40 billion a year to the Australian economy, or two per cent of the country’s gross domestic product (GDP).
And ads aren’t just pretty and for filling in time between TV shows. According to the report, titled Advertising Pays: The Economic Employment and Business Value of Advertising, advertising increases competition which meant brands tried harder, products were better and prices cheaper for consumers.
For every dollar invested in advertising some three-dollars of value was contributed to the economy, the report found.
Deloitte’s John O’Mahony said of the study’s findings: “Advertising is often overlooked as an economic driver and yet it is responsible for driving more than $40 billion of growth.
“Advertising provides strong incentives for business to be more innovative and to offer better products and more competitive promotion in their efforts to win market share.
“Consumers enjoy the benefits of both competitive pricing and being better informed purchasers of goods and services,” O’Mahony said.
Of most benefit to the economy was retail advertising spend that the study said contributed $8.7 billion to the GDP of the economy. Next was car advertising ($4.6 billion), finance/insurance ($3.9 billion), real estate ($3.2 billion), entertainment/leisure ($2.9 billion) and government spend ($1.7 billion).
Please login with linkedin to commentAdvertising Standards Bureau
Amid the sadness of magazine closures, the challenges of COVID-19, and industry concern as companies merge or change hands, some magazines are thriving. NextMedia titles such as the much-loved frankie and ABC Gardening Australia magazine have been enjoying a surge in sales during this period of home isolation. Gardening Australia retail sales have been robust […]
In this guest post, MINT’s publicity director, Nathan McIlroy (pictured below), explores the new norm for Australian media and says Bauer’s/Mercury Capital’s recent mag closures should be viewed as an exciting opportunity for the brave… Last week’s announcement that new owners Mercury Capital were to permanently close eight of Bauer Media’s magazines sent shockwaves through […]
In a first for the Australian insurance market, Club Marine, Australia’s largest provider of boat and pleasure-craft insurance, has released a new series of videos to help explain insurance cover. With a few familiar Aussie personalities to help out, Club Marine is helping its members, as well as the broader boating community, to understand the […]
Junkee Media and parent company oOh!media have launched a powerful new way to reach young Australians – the Junkee Network. Combining Junkee Media’s content platforms with oOh!’s leading Out of Home assets in venues and universities across the country, the Junkee Network will be the largest and most influential youth content network in the country. […]
Australian small business owners are turning to skilled local freelancers and upping their digital marketing spend as they move online to connect with customers and keep cash flow positive. The Federal Government’s pandemic response has earned a tick from small business owners as have those of New South Wales and Queensland, but one in three […]
In the last 12 months, Optus’ AI Assistant Chatbot has surpassed two million conversations, with 1 in 6 Optus customers having their queries resolved immediately, providing a seamless experience without needing to speak to a person. Optus Assistant greets every customer that comes through My Optus App Messaging and its Web Messaging service with on average […]