In January 2013, the AA and Deloitte showed how advertising does more than just benefit individual businesses – it underpins £100bn of UK GDP by helping businesses reach customers, promoting innovation, enhancing competition, and expanding and developing markets.
Advertising Pays 2: How advertising can unlock UK growth potential argues that sustained economic recovery will depend on the health of our SMEs – in particular those medium-sized businesses most poised for growth.
Yet these businesses underinvest in advertising, limiting their growth domestically and overseas. The report finds that UK SMEs contribute nearly 40% of UK turnover, but only 18% of adspend, and shows that using advertising to help raise UK SME exports to the EU average would add £40bn to the economy.
With these findings, the AA believes that UK advertising must ask what more can be done to address SME concerns, and open up the benefits of advertising to smaller, high-growth UK businesses. And that policymakers should consider advertising’s potential more closely when examining policy options to support SME growth.