Advertising underpins UK consumer economy to tune of £100bn, report claims
Advertising in the UK helps to generate £100 billion of consumer spending for the nation, according to a report commissioned by the Advertising Association (AA). Announced today (Thursday 31 January during the AA's Lead conference), the 'Advertising Pays' analysis conducted by Deloitte has prompted members of the marketing industry to call on the government to include it within its economic recovery plans. The study suggests that advertising plays 'a critical role' in driving consumer spend and high-growth within the digital and creative sectors with each £1 spent on advertising returning £6 of GDP to the UK economy. Ahead of the event, culture secretary Maria Miller stated that advertising had both "a huge impact" on the economy and on the UK's international reputation and tourism. "We must nurture this talent, which is admired the world over, so as the advertising industry can realise its full potential as a key driver of economic growth," she added. Tim Lefroy, CEO of the Advertising Association, added that with 60 per cent of GDP stemming from household consumption, the process of taking a product to market, including its promotion, to be remembered by government. Lefroy added: "Advertising is sharpening competitiveness and acting as a spur to innovation. This report should prompt fresh thinking both by industry and in Government in support of our role.” According to research by Boston Consulting Group over half a million (550,000) jobs were sustained by the £16 billion advertising revenue generated each year in the UK, that £7 billion of incremental benefit was generated to the UK through e-commerce and that £5 billion worth of Internet services, such as social media and search, we're available for free to consumers. It also reclaimed that over £2 billion was generated through agency service exports.