Sixteen billion pounds. Whether you’re in advertising, accountancy or aerospace, that’s a lot of money. So when UK business spends £16 billion on advertising, what happens? At the very least, those businesses expect a return on their investment. But what about the rest of UK plc – how widespread are the effects?
In 2011, we asked the econometricians at Deloitte to find out.
With the help of Deloitte’s modelling, we show how advertising fuels competition by showing people they have a choice. And that kick-starts innovation, encouraging firms to bring new products and services to market. By building brands it helps protect those innovations, stimulate investment and grow exports.
Businesses that advertise benefit. And UK plc benefits with them.
But it doesn’t end there. There are the agency services they use and the businesses they advertise with. The TV airtime and cinema screens. The pages in newspapers and magazines. The space on billboards and in social media. The presence in search. A pound spent on advertising can support all of these.
And advertising is at the heart of the digital economy – funding the vast majority of content and services, supporting on-line consumer research and boosting e-commerce.
In fact, Deloitte found that when a pound is spent on advertising, it adds six to UK GDP. That meant a £100 billion boost to GDP in 2011 and over 550,000 high quality jobs.
It’s all in Advertising Pays. Please do take a look.