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Study from The Advertising Coalition Finds Advertising Drives $7.1 Trillion in US Sales
New Research Shows One in Five US Jobs Supported by Ad Industry The study found that the total impact of advertising and its multiplier effects represented 18.5% of U.S. gross domestic product (GDP) and supported nearly one-fifth of all American jobs in 2020. Further, those positive economic impacts were projected to continue to grow quickly, rising to "This important study proves what we've known all along," said The study was the first analysis of the economic impact of advertising by IHS Markit on behalf of The Advertising Coalition in seven years. The last research showed the industry driving The current study examined advertising spending in the U.S. and the cascade of contributions to the economy, such as advertising to stimulate sales, purchases of goods and services throughout the supply chain, and the re-spending of wages by employees in the advertising industry. The IHS Markit research was commissioned by The Advertising Coalition, an organization comprised of media companies and national trade associations representing advertising-centric members. "Advertising is not a luxury, but an absolute necessity. Businesses large and small, national and local depend on advertising to communicate with consumers, drive sales and growth. The IHS study demonstrates what we have long known, that as businesses succeed and grow, so does the vibrant American economy," stated The research discovered every dollar of ad spending supported nearly "Advertising helps sustain the creation of quality journalism that keeps communities across America informed, healthy and vibrant," said "Advertising drives economic growth - this simple fact has always been true. As the country continues to recover from the economic impacts of COVID, lawmakers must do everything they can to support this fragile recovery," remarked "The recent study by IHS Markit clearly demonstrates the link between advertising and growth - and the link between the full deductibility of advertising as a business expense and same growth." The study also examined the economic impact of changes to the tax treatment of advertising, with advertising expenditures currently fully deductible in the year they occur. The study looked at how proposals to allow 50% of advertising expenditures be deductible in the year they occur and the remaining 50% to be amortized over five and 10-year periods would have impacted economic activity in the years 2021-2026 had they been adopted in 2020. Under a five-year amortization plan, 2.6 million jobs and more than "America's broadcasters keep our communities and our economy strong by connecting consumers to the products and services they need, while helping local businesses grow," stated National Association of Broadcasters President and CEO The IHS Markit study can be found here. Contact:
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