A research commissioned by The Advertising Coalition and carried out by S&P International Market Intelligence has quantified the extraordinary impression of promoting on US jobs and development, discovering that promoting powered greater than 20% of whole US financial output whereas supporting 29 American million jobs final yr. S&P International Market Intelligence’s evaluation — ‘The Financial Influence of Promoting on the US Financial system’ — discovered that promoting was chargeable for $10.4 trillion in whole US gross sales exercise final yr.
Among the many key findings of the report:
- Promoting supported 29 million of the 158.1 million jobs within the US final yr — or 18.3% of the whole US workforce.
- Promoting supported a major share of all jobs in all 50 states, starting from 14.1% to 19.7% of all jobs, relying on the state.
- Whole promoting spend and stimulated gross sales exercise totaled $10.4 trillion final yr, or 21.9% of the $47.5 trillion in whole output from the US financial system.
- Each million {dollars} spent on promoting supported 59 American jobs throughout a broad vary of industries.
- The typical wage supported by promoting was over $93,000 per yr, a degree of compensation 26% larger than the nationwide common.
- By 2029, promoting’s impression on the US financial system will enhance to $12.7 trillion in gross sales exercise and 32.1 million US jobs.
“Promoting is a strong catalyst that stimulates intensive financial exercise throughout each state and each sector of the US financial system,” mentioned Bob Flanagan, consulting director at S&P International Market Intelligence. “Our data-driven fashions traced how promoting drives spending by US enterprise and households, stimulates provide chain exercise and enhances income-based consumption. We quantified promoting’s broader financial impression on companies, staff, and communities throughout the nation.”
General, the research discovered that firms spent $491 billion on promoting their services and products final yr, which instantly stimulated $3.5 trillion in gross sales exercise and one other $2.8 trillion in oblique gross sales via the downstream suppliers to these advertisers. One other $3.6 trillion in gross sales was via worker spending from these direct and oblique ad-supported companies.
Whereas standard knowledge may counsel that the financial advantages of promoting would accrue principally to main advert hubs like New York, Los Angeles, and Chicago, promoting had important financial impacts throughout all 50 states as a consequence of gross sales it drives throughout the availability chain in each trade. In reality, the 17 states with the best share of advertising-supported jobs have been dominated by the Midwest (Illinois, Indiana, Iowa, Kansas, Michigan, Ohio, Wisconsin); the South (Alabama, Kentucky, Mississippi, South Carolina, Tennessee), and the West Coast (California, Oregon, Washington), in addition to Maine and New Hampshire.
The research is the primary evaluation of the financial impression of promoting launched by The Promoting Coalition since Could 2022. That research discovered that promoting had generated $7.1 trillion in gross sales exercise and supported 28.5 million US jobs within the prior yr.
Business leaders shared the next reactions to the research:
Bob Liodice, CEO, Affiliation of Nationwide Advertisers (ANA) mentioned, ”Promoting has been a driving power behind our nation’s progress, prosperity, and development for greater than a century. These findings validate that promoting’s advantages lengthen far past their impression on particular person firms. Promoting helps tens of thousands and thousands of jobs, powers our financial system, ensures that companies of each measurement can compete and thrive, and builds a stronger, extra aggressive America.”
Justin Thomas-Copeland, CEO, 4As mentioned, “By serving to world companies join with customers, drive demand and construct manufacturers, America’s promoting companies play a vital position in fueling innovation and maintaining our financial system shifting. This research reaffirms what we’ve lengthy recognized — {that a} thriving promoting trade is crucial to a thriving nationwide financial system. It leaves little question that promoting is a confirmed engine of financial development — and preserving the total deductibility of promoting as a enterprise expense isn’t simply good tax coverage, it’s important to maintaining that engine operating sturdy.”
Steve Pacheco, CEO, American Promoting Federation (AAF) mentioned, “These of us within the trade have at all times been conscious of the significance of promoting – to purchasers, to the media, and most significantly to customers. These truths are supported by this research which matches additional to indicate promoting’s position as a driver of the financial system, offering trillions of {dollars} of financial exercise and supporting thousands and thousands of jobs. What’s exceptional concerning the research is the way it demonstrates promoting’s significance, not simply in main markets, however in each state and each market within the nation. Promoting is an important communication device for world entrepreneurs, small companies, and everybody in between.”
Curtis LeGeyt, president and CEO, NAB mentioned, “The attain and group connection of native tv and radio stations present unparalleled worth to each our promoting companions and the audiences we serve. Promoting fuels native economies, helps good jobs and sustains the trusted journalism and emergency info that People depend on, and we’re happy that this research as soon as once more affirms this.”
The total S&P International Market Intelligence research and its methodology will be discovered here, on The Promoting Coalition web site.
