Advertising contributes $53 billion to the Australian economy – 2.1% of total GDP

The true economic power of Australian advertising has been revealed today in an independent study by Deloitte Access Economics that 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, Advertising Pays builds on the first edition of the report published in 2016. It has been commissioned by 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 telecommunications industry in 2018 ($52 billion).

The report will be launched today by the Hon Michelle Rowland MP, Minister for Communications.

Says John O’Mahony, partner, Deloitte Access Economics, Australia: “The report, now in its second edition, quantifies the economic impact of advertising to the Australian economy. Advertising promotes competition and innovation by facilitating the transfer of information and by helping businesses reach potential customers. This, in turn, supports economic growth – delivering a $53 billion impact in 2022.”

Says Josh Faulks, CEO, AANA: “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 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.

Says Sophie Madden, CEO, MFA: “The study underscores that advertising serves as a major driver of job creation in Australia, with the industry employing more than 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.”

The findings also demonstrate the powerful role the industry can play in the Australian Government’s agenda through creative innovation and economic growth.

The study reasserts advertising’s ability to provide a platform to inform and educate the public and its increasingly important focus on communicating brand values, outlining that building awareness of a brand’s greater purpose can reinforce employee engagement as well as boost long-term brand building.

Says Tony Hale, CEO, ACA: “Advertising serves as a dynamic platform, not only to inform and educate the public, but also to align with the values and greater purpose of brands.

“In an era where societal engagement and brand authenticity are paramount, advertising’s focus on building awareness of a brand’s greater purpose holds immense potential. This not only reinforces
employee engagement and attraction, but also contributes to the long-term process of building strong and meaningful brands that contribute to economic growth. The industry’s combined creative capabilities can and does drive positive change, and champions the values that resonate with both businesses and the public.”

As part of the research Deloitte consulted with a number of market-leading organisations to understand ways to maximise the value of advertising.

Advertising Pays is supported by media industry bodies including the IAB, Outdoor Media Association, Commercial Radio and Audio, Free TV and ThinkTV.

To download the full report, visit: advertisingpays.com.au.

Key findings summary

Economic drivers

• The Deloitte Access Economics report confirms that the Australian advertising industry impacts a staggering $53 billion to the nation’s economy. This contribution accounts for 2.1% of Australia’s total GDP in 2022.
• Australia spent $18 billion on advertising in 2022. This represents a 12 per cent increase in economic impact since 2014.

Employment drivers

• 153,400 people were employed in advertising directly and in supply chain jobs in 2021
• 85,917 people directly employed in advertising in 2021
• 91,500 people employed in industries that rely on advertising as a source of revenue
• The rate of growth in advertising is more than double the labour market more broadly since 2015

Consumers and the community

• $2,100 in improved living standards for the average Australian attributable to the advertising industry
• $352 million of public infrastructure across communities is built and maintained by the advertising industry

Advertising in business

• $194 billion value of the top 100 brands in Australia in 2023
• 5% growth of digital advertising market 2023 to 2027
• Companies that leverage advertising to communicate their value proposition to employees have stronger employee retention.

DOWNLOAD THE REPORT