The true economic power of Australian advertising has been revealed in a study backed by the major industry bodies.
The research conducted by Deloitte Access Economics values the industry’s impact at $53 billion, or 2.1% of Australia’s total GDP in 2022.
Over the same 12 months, $18 billion was spent on advertising, which has grown at a faster pace than many other developing countries on a per capita basis.
And the advertising industry employs 153,400 Australians, in direct roles (85,917) and indirect roles (67,465).
Advertising also supports 91,500 people who are employed in industries that rely on advertising as a source of revenue. The industry has grown two times faster than the labour market since 2015.
The report, Advertising Pays, builds on a study in 2016. It has been commissioned by Advertising Council of Australia (ACA), the Australian Association of National Advertisers (AANA) and the Media Federation of Australia (MFA).
“Advertising is often overlooked as an economic driver and yet it is responsible for contributing a staggering $53 billion to the nation’s economy," says AANA CEO Josh Faulks.
"Through tough economic times, we have continued to see remarkable growth, outpacing many other countries on a per capita basis. The importance of the advertising industry to a prosperous Australian economy cannot be understated."
Advertising’s impact has grown by $13 billion or 12% since 2014. For context, the economic impact of advertising is larger than the accommodation and food services industry in 2022 ($47 billion) and telecommunications industry in 2018 ($52 billion).
Sophie Madden, MFA CEO, says he study underscores that advertising serves as a major driver of job creation in Australia.
"This report is an important proof point of how our industry plays a significant role in the economy, as well as to our clients’ businesses and society," she says.
ACA CEO, Tony Hale, says advertising serves as a dynamic platform, not only to inform and educate the public, but also to align with the values and greater purpose of brands.
"In an era where societal engagement and brand authenticity are paramount, advertising's focus on building awareness of a brand's greater purpose holds immense potential," he says.
This not only reinforces employee engagement and attraction, but also contributes to the long-term process of building strong and meaningful brands that contribute to economic growth.
"The industry’s combined creative capabilities can and does drive positive change, and champions the values that resonate with both businesses and the public.”
Advertising Pays is supported by media industry bodies including the IAB, Outdoor Media Association, Commercial Radio and Audio, Free TV and ThinkTV.
A summary of Key findings:
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