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Reading: Deloitte Study: Advertising Contributes $53B To The Australian Economy
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B&T > Advertising > Deloitte Study: Advertising Contributes $53B To The Australian Economy
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Deloitte Study: Advertising Contributes $53B To The Australian Economy

Staff Writers
Published on: 20th October 2023 at 7:05 AM
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The true economic power of Australian advertising has been revealed today in an independent study by Deloitte Access Economics that values the industry’s impact at $53 billion, 2.1 per cent of Australia’s total GDP in 2022. Over the same period, $18 billion was spent on advertising, which has grown at a faster pace than many other developing countries on a per capita basis.  

The Deloitte Access Economics report, Advertising Pays, builds on the first edition of the report published in 2016. It has been commissioned by Advertising Council of Australia (ACA), the Australian Association of National Advertisers (AANA) and the Media Federation of Australia (MFA).

The report reveals the $53 billion economic impact delivered by advertising including:

  • That advertising’s impact has grown by $13 billion or 12 per cent since 2014, making it a dynamic, fast growing industry
  • For context, the economic impact of advertising is larger than the accommodation and food services industry in 2022 ($47 billion) and the telecommunications industry in 2018 ($52 billion).

The report was launched by the Hon Michelle Rowland MP, Minister for Communications.

John O’Mahony, partner, Deloitte Access Economics Australia, said: “The report, now in its second edition, quantifies the economic impact of advertising to the Australian economy. Advertising promotes competition and innovation by facilitating the transfer of information and by helping businesses reach potential customers. This, in turn, supports economic growth – delivering a $53 billion impact in 2022.”

AANA CEO, Josh Faulks, said: “Advertising is often overlooked as an economic driver and yet it is responsible for contributing a staggering $53 billion to the nation’s economy. Through tough economic times, we have continued to see remarkable growth, outpacing many other countries on a per capita basis. The importance of the advertising industry to a prosperous Australian economy cannot be understated.”

The study also revealed that the advertising industry employs 153,400 Australians in direct roles (85,917) and indirect roles (67,465). Advertising also supports 91,500 people who are employed in industries that rely on advertising as a source of revenue. The industry has grown two times faster than the labour market since 2015.

This means that for every five people directly employed in advertising, a further four are employed in industries and sectors that provide inputs to advertising through the supply chain. Direct advertising employment has increased by almost 30,000 since previous research in 2016, a growth of five per cent per annum, compared to an average two per cent per annum across all industries.

Sophie Madden, MFA CEO, said: “The study underscores that advertising serves as a major driver of job creation in Australia, with the industry employing 153,400 Australians. Advertising further supports employment in industries reliant on advertising-supported expenditure. This report is an important proof point of how our industry plays a significant role in the economy, as well as to our clients’ businesses and society.”

The findings also demonstrate the powerful role the industry can play in the Australian Government’s agenda through creative innovation and economic growth.

The study reasserts advertising’s ability to provide a platform to inform and educate the public and its increasingly important focus on communicating brand values, outlining that building awareness of a brand’s greater purpose can reinforce employee engagement as well as boost long-term brand building.

ACA CEO, Tony Hale, said: “This report demonstrates just how important advertising is for a healthy economy. The industry plays a significant role in building strong, recognised brands that contribute to long-term economic growth, with the top 100 Australian brands valued at $194 billion in 2023 alone. Our combined creative capabilities can and do drive positive change, and champion the values that resonate with the business community and public.”

As part of the research Deloitte consulted with a number of market-leading organisations to understand ways to maximise the value of advertising.

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TAGGED: AANA, Deloitte Access Economics, MFA, Michelle Rowland, tony hale
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Staff Writers
By Staff Writers
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Staff Writers represent B&T's team of award-winning reporters. Here, you'll find articles crafted with industry experience spanning over 50 years. Our team of specialists brings together a wealth of knowledge and a commitment to delivering insightful, topical, and breaking news. With a deep understanding of advertising and media, our Staff Writers are dedicated to providing industry-leading analysis and reporting, both shaping the conversation and setting the benchmark for excellence.

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