Deloitte: Advertising Contributes £100bn to UK Economy
Advertising contributes £100 billion to the UK economy and provides vital funding for media such as newspapers, new research by Deloitte has found.
Published by the Advertising Association, the Advertising Pays 3 report examines how advertising spend and brand sponsorship impacts the media, entertainment, arts and sport.
The analysis shows that people value access to these advertising-funded services at nearly £10 billion and that by “lowering” the cost of media and culture “advertising brings it within reach of millions more people than would otherwise be the case.”
Culture Secretary Sajid Javid said: “The advertising industry makes a significant contribution to our economy. Its funding is vital for the long-term growth of the UK’s creative sector and ensures we are able to provide the quality recreational and cultural services that people value so highly.”
Looking at the newspaper sector, the report notes that “society as a whole benefits from having a healthy press” and newspapers “have traditionally played a key role in supporting the health of a democracy by disseminating information and providing quality investigative journalism.”
The report cites Newspaper Society research showing that newspapers, which took £2.74 billion in advertising revenues in 2013 accordign to the report, are a highly trusted source of news.
AA president Andy Duncan said: “Of course, businesses advertise to build brands, drive sales and fight the competition – not to fund our media. But the unintended consequence of advertising is a massive contribution to the TV we watch, the newspapers we read, the attractions we visit and much more. Without advertising to fund them, it is clear that the average UK household would be unable or unwilling to cover the shortfall.”