A new research report by Deloitte Ireland and sponsored by Core Media, Google, Independent News and Media (INM) and RTE reports that advertising in Ireland contributes E5.3 billion annually to Irish Economy and supports 30,000 jobs.
The report published on 1 November 2013 is called “Advertising: An engine for economic growth“, and seeks to quantify and detail the impact the advertising industry has on areas such as job creation to supporting innovation and stimulating competition.
In the report they comment that for every euro spent on advertising, on average 5.7 euro is generated and that advertising supports 30,000 jobs. Of these 7,000 are direct employees, 7,500 are jobs which are supported by advertising revenue (such as newspapers and radio) and 15,500 jobs are across supply chains of creative industry and the wider economy.
The report also finds that advertising stimulates competition by supporting innovation. It says over 400,000 households would not have broadband if it were not for advertising of expansion campaigns and faster speed by operators.
Advertising provides 38pc of all Irish media revenues and 938 million euro was spent on advertising media placement in Ireland in 2012.
In the report you will also be able to read case studies of Irish examples of the use of advertising.
“Up to now, little has been known about advertising’s role as a stimulant for economic growth through its capacity to drive demand, spread innovation and foster competition. This report on advertising’s impact on the Irish economy provides a valuable contribution to understanding the industry’s role in the economy.”
“The key finding from this study tells a remarkable story about the Irish advertising and marketing industry; on average 1 euro spent on advertising is estimated to generate 5.7 euro in our economy. This phenomenal finding is based on rigorous and complex econometric analysis, conducted by Deloitte, and described in this report.”
“We request that policy makers take note of the disproportionate impact our industry has on the economic performance of this country, and we ask Government to consider the benefits that would accrue from a programme which incentivises and encourages businesses to invest in advertising in order to grow demand and employment in Ireland.”
The report has been reported on by the media and I am hoping that this helps the public understand the value advertising can bring to the economy. What is clear from recent announcements is that consumers on social media platforms dislike sponsored content interupting their experience on the platform. The challenge has to be for advertisers to be more creative in developing adverts that people enjoy seeing in their digital or offline world.