UK report evaluates “contribution of advertising to the UK economy"

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27/10/2011
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Credos, the UK advertising industry's independently-governed think tank launched by the Advertising Association in 2010, is organising a research briefing on the economic value of advertising on November 3rd in London. The event will mark the launch of their report The Contribution of Advertising to the UK Economy, written in partnership with The Work Foundation. This work sets out to quantify the direct and indirect contribution of the advertising industry to the UK economy. It also seeks to outline the various mechanisms through which advertising stimulates economic growth.

WFA partnered with the French Advertiser Association (UDA) back in 2006 to conduct research on the same theme. In turn, this research was cited in a recent report conducted by McKinsey & Company on the links between advertising and economic growth. The research shows that in the last ten years the contribution that advertising makes to GDP in the G20 countries is on average 10-15%, and depending on the methodologies used may have contributed to as much as 20%. McKinsey also found that at a micro-economic level, a company's investment in digital advertising is correlated with better relative growth and profitability than its competitors.

The findings were presented at the Media Lounge event in the European Parliament, organised by WFA and its EU-level partners*, hosted by German liberal MEP Nadja Hirsch. The event featured a keynote by Reinhard Buescher, Head of Unit for Support for Innovation, DG Enterprise, European Commission, as well as a panel discussion with industry leaders from MTV Finland, Axel Springer, Nielsen Online and German MEPs, Paul Rübig and MEP Heinz Becker. The annual Media Lounge event is organised to highlight to European regulators how advertising benefits the economy and society.

For further information relating to the Credos event, please email emma.taylor@credos.org.uk. For more information about the McKinsey report, please contact emil@wfanet.org


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