Advertising Pays, an independent study by Deloitte Access Economics, has revealed the true economic power of Australian advertising, which values the industry’s impact at $53 billion, 2.1% of Australia’s total GDP in 2022.
Over the same period, $18 billion was spent on advertising, which has grown at a faster pace than many other developing countries on a per capita basis.
The Deloitte Access Economics report builds on the first edition of the report published in 2016. It has been commissioned by the Advertising Council of Australia (ACA), the Australian Association of National Advertisers (AANA) and the Media Federation of Australia (MFA).
The report reveals the $53 billion economic impact delivered by advertising including:
- That advertising’s impact has grown by $13 billion or 12% since 2014, making it a dynamic, fast-growing industry
- For context, the economic impact of advertising is larger than the accommodation and food services industry in 2022 ($47 billion) and the telecommunications industry in 2018 ($52 billion).
AANA CEO, Josh Faulks, said: “Advertising is often overlooked as an economic driver and yet it is responsible for contributing a staggering $53 billion to the nation’s economy. 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.”
The Advertising Pays study also revealed that 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.
This means that for every five people directly employed in advertising, a further four are employed in industries and sectors that provide inputs to advertising through the supply chain. Direct advertising employment has increased by almost 30,000 since previous research in 2016, a growth of 5% per annum, compared to an average 2% per annum across all industries.
Sophie Madden, MFA CEO, said: “The study underscores that advertising serves as a major driver of job creation in Australia, with the industry employing 153,400 Australians. Advertising further supports employment in industries reliant on advertising-supported expenditure. 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.”
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