Value of Advertising
Advertising delivers powerful economic benefits across the EU
January 16, 2017
The first-ever EU-wide report to isolate the economic and social contribution of advertising highlights its ability to drive economic growth across the EU. Value of Advertising, an independent study by Deloitte, has identified a multitude of benefits generated by advertising, to the overall economy, jobs and to civil society. Using econometric modelling, the study, which was commissioned by the World Federation of Advertisers and other industry partners, found that advertising contributed nearly 6m jobs across the EU and 4.6% of total GDP.
The study identified three key areas where advertising provided direct or indirect benefits to European economies and citizens:
Economic benefits: Every Euro spent on advertising is estimated to add an additional seven Euros to GDP. This means that the EUR 92 billion spent on advertising in 2014 in the EU would have contributed EUR 643 billion to GDP, representing 4.6% of the overall EU GDP.
Employment benefits: Advertising provides almost six million jobs in the EU, equivalent to 2.6% of all EU employment.
Social Benefits: Advertising provides personal and social benefits by funding or part funding media services. Advertising ensures that EU citizens benefit from news, entertainment and communications tools at a reduced cost or even for free. The €92bn spent on advertising in 2014 directly funded content of all kinds.
The full press release and the report are available on IAB Europe site.