53bn reasons to be proud to work in advertising
Do you ever wonder about the impact of what we do in our industry?
The updated Advertising Pays report by Deloitte Access Economics, released this month, quantifies the economic impact of advertising to the Australian economy and provides plenty of reasons to feel proud and inspired by the role we all play.
For starters, there’s the fact that advertising’s economic impact is larger than industries traditionally perceived as important contributors to the Australian economy, such as telecommunications and accommodation and food services.
How advertising boosts competition, which benefits consumers by helping to drive down prices and enabling access to a variety of new and innovative products and services, is also discussed in the report. Advertising also benefits the community by helping to fund local infrastructure and providing a platform to reach local audiences.
The report commissioned by the MFA, AANA, and ACA and supported by the CRA, IAB, Free TV, OMA, and ThinkTV demonstrates the industry coming together to uncover the economic, employment and business value of advertising.
Here are the hard numbers on advertising’s economic and social value:
- $53 billion economic impact to the nation’s economy, 2.1% of Australia’s total GDP in 2022
- $17.7 billion spent on advertising in Australia in 2022
- 12% increase in economic impact since 2014
- $2,100 in improved living standards for the average Australian attributable to the advertising industry
- $352 million of public infrastructure across communities is built and maintained by the advertising industry
- 153,400 people employed in advertising directly and in supply chain jobs in 2021
- 2x growth in advertising compared to the labour market more broadly, since 2014
Hon Michelle Rowland MP, Minister for Communications
Moderated by Megan Brownlow, MFA Board Director with panellists: Martin Brown, AANA Chair and Nestlé GM; Virginia Hyland, MFA Deputy Chair and Havas Media CEO; Mark Green, ACA Chair and Accenture Song ANZ President
Virginia Hyland, CEO Havas Network Australia
Advertising Pays was released at an industry event on the 20 October, 2023.
The Hon Michelle Rowland MP, Minister for Communications said: “Advertising not only informs and educates us, it creates value, it drives economic growth and recovery, and is an essential contributor to our labour market… A robust advertising sector encourages innovation, for businesses big and small. It motivates businesses to offer better products and also it motivates them to engage. This ultimately benefits us all through competitive pricing and our access to comprehensive information regarding the services or products we’re invested in.”
And here’s what industry leaders had to say about the report’s findings:
Sophie Madden, MFA CEO: "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.”
Virginia Hyland. CEO, Havas Media and Deputy Chair, MFA: “Working in media, we are empowered to affect change, both big and small for brands, the economy and society. I’m delighted to see this report verifying that jobs in advertising have grown more than twice as fast compared to the labour market, since 2015. The media sector has never been in greater demand, which affirms that the industry evolution is vibrant, dynamic, and critical to the growth of the economy.”
Advertising Pays builds on the first edition of the report published in 2016.