Advertising delivers $40 billion dollars worth of value to the Australian economy new research from The Communications Council and Deloitte has revealed.
The report: 'Advertising Pays: The Economic Employment and Business Value of Advertising', also finds that advertising supports jobs, with more than 200,000 people in Australia working in advertising and its associated careers.
The aim of the study was to prove the value is advertising, with the sector sometimes being overlooked. The report highlights that advertising increases competition in the market, provides an incentive for businesses to be more innovative or efficient, to offer better products or services, or at lower prices, and to win market share, which provides benefits to consumers and the economy.
CEO of M&C Saatchi and chair of The Communications Council, Jaimes Leggett, says: “Australia is now entering its 25th year of consecutive GDP growth. As the commodities market softens, it’s enco, raging to see our services industry has a solid role in bolstering the broader economy.
“Globally, the Australian communications industry has consistently been recognised as among the top five countries that generate the most creative and effective work. It's clear from this research that an investment in advertising helps to drive the Australian economy further,” he adds.
It is also outlined that advertising is seen as an “inextricable” contributor to the success of Australia’s top 100 brands, previously estimated to be worth $128bn.
Communications Council CEO Tony Hale agrees, adding that this research provides important data for the industry as it helps understand the major role advertising plays in driving the economy and creating jobs in Australia.
“It recognises the power of advertising as a force for social good, referencing advertising’s ability to raise awareness of, and influence behavioural change around issues such as road safety, public health and tourism.”
When it comes to how adland fairs against other sectors, the study found that the economic contribution delivered by the advertising sector is almost as large at the productivity value of the internet and digital technologies, which was estimated at $45bn in 2013.
The report also looks at several cases, including the Transport Accident Commission’s Victorian campaign, ‘Wipe off 5’, which notes how advertising helped change public opinion of what constitutes speeding; with more than 90% of respondents considering driving at up to 65 km/h in a 60km/h zone as ‘speeding’ in 2013, compared to 69% in 2001. With the research indicating that advertising has played a key role in changing community attitudes and behaviour.
Executive chairman of Clemenger Communications Group, Robert Morgan, said that despite the nature of advertising changing radically in the age of digital and ‘one-to-one’ communications, its role in stimulating growth in the economy is more important than ever.
“This report proves how important advertising is to creating growth and employment. Indeed, advertising works.”
Managing director of Officeworks, Mark Ward says this is especially true for his business noting that in a competitive market economy, brands must continually ensure their products and services are differentiated and satisfying customer needs.
“Advertising enables us to convey these messages to customers. But it must be aligned with the broader strategic objectives. There is nothing worse than telling a customer you're offering a great service when it's not good. It destroys customer trust.”
See all the key findings from the report below:
- Advertising has a role to play in corporate strategy:
As consumers have greater access to information, and stronger voices through expanding media channels, it is increasingly important to ensure that products, services and also customer experiences deliver clear and consistent expressions of a firm’s brand.
- Creativity is important for connecting with audiences on an emotional level:
Portraying the role of business through a ‘human’ lens remains important for communicating the values behind a brand, an area of increasing importance for consumers when determining where their loyalty lies over the longer term.
- Omnivorous audiences thrive on balanced channel diets:
Businesses should not disregard the role for traditional channels, which continue to be effective in building a differentiated brand. The right mix will vary according to the strategic objectives of a business. Rarely will a one-channel strategy – digital or otherwise – serve a brand’s best interests.
- Systematically track both brand perceptions and financial performance:
Annual brand health studies that help to identify customer perceptions can be used to track the outcomes of advertising efforts in a complementary way, and also provide valuable insights to inform other business areas.
- Don’t overlook the employees and suppliers in the audience:
Advertising that is focused on building awareness of a brand’s greater purpose and meaning can not only strengthen customer relationships, but can also have reinforcing effects on employee engagement, talent attraction, supply chain connections and shareholders.
- Consistent, authentic advertising can support public policy objectives:
Public sector advertising is, at its best, employed transparently in the pursuit of outcomes for the public good, and considered as a bona fide tool in the arsenal of policy making, as part of a complementary, integrated suite of measures.
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