New Study Confirms Advertising as Key Driver of the U.S. Economy; Advertising is a Major Contributor to GDP, National Employment and Labor Income
The Association of National Advertisers (ANA) and The Advertising Coalition commissioned a study which highlights the industry’s considerable economic benefits. According to this study, advertising contributed $3.4 trillion to the U.S. GDP in 2014, which represents 19% of the nation’s total economic output.
The research by IHS Economics and Country Risk provides a comprehensive assessment of the contribution of advertising to national, state, and regional economic activity across 17 industries. This study includes information on the positive impact of advertising on employment, salaries, wages, consumer sales, and the overall economy.
According to Bob Liodice, President and Chief Executive Officer of the ANA, “this new study underscores the essential nature of advertising in promoting both business and economic growth in this country.”
IHS researchers also examined the effect of a tax proposal that would alter the treatment of advertising as an ordinary and necessary business expense. The proposal would only allow businesses who advertise to deduct 50 percent of all annual advertising expenses with the balance to be amortized over five years.
Speaking about the impact of the tax proposal, Liodice commented, “The very fact that this industry contributes nearly 20 percent to the nation’s GDP sends a powerful reminder to policymakers that advertising is an essential stimulus to the U.S economy that should be promoted and not subjected to a tax. We have long known that the economic value of advertising extends into other sectors like manufacturing, agriculture, healthcare, retail, and numerous other areas of the economy. ANA is proud to see data that affirms that advertising is a major contributor of revenue and a true engine of job creation in the U.S.”
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