Written by VETTI KAKULAS Business Reporter PerthNow
A new report has found the advertising industry generated around $40 billion to the Australian economy over a 12-month period. Picture: AAP
ADVERTISING is a “critical” part of our market economy contributing billions of dollars to WA, according to a new study.
The Deloitte Access Economics Advertising Pays report, commissioned by the Communications Council, found advertising contributed $40 billion to Australia’s economy in 2014, including $4.6 billion from WA.
Around 70 delegates attended the launch of the report on Wednesday morning, which was held at the Australian Institute of Management WA in Floreat.
It found advertising’s productivity value was almost as large as internet and digital technologies in Australia, estimated at $45 billion in 2013.
Advertising is even bigger than the accommodation and food services industry, which contributed $38 billion to Australian GDP in 2014.
Deloitte revealed for every $1 invested in advertising, Australia benefited from $3 of economic value.
It also provides a range of jobs, with 200,000 Australians employed directly and indirectly, including around 10,000 in WA.
These jobs include advertising specialists, managers, copywriters, designers, marketers and content developers.
Deloitte access economics director Elizabeth Fells says advertising is a significant employer in WA.
“Every advertising job in Australia supports three more jobs,” she said.
“Advertising influences perceptions of brand and a strong brand enables businesses to charge a premium price for their products and services.
“Money spent towards advertising is an investment in your brand and that pays off in the long-term, in terms of building customer loyalty and long-term business growth.”
Seven West Media chief executive Chris Wharton, who was on the discussion panel, said advertising played a critical role in growing a business.
“People often think about the cost of advertising, rather than the value and the long term benefits of really great communication and creativity across the board,” he said.
“We consider ourselves at Seven West Media to be an audience company, we’re about delivering quality relevant content to the people of West Australia.
“Some might say we don’t always hit the mark, but we’re always trying.”
The panel at the The Economic, Employment and Business Value of Advertising report launch -(L-R) Adam Marshall, Managing Director Carat Media, Neil Le Febvre from HBF, Louise Scott from Tourism WA, chief executive Seven West Media, Chris Wharton, Deloitte’s Elizabeth Fells.
As Australia enters its 25th year of consecutive GDP growth, Communications Council chair Jaimes Leggett said it was encouraging to see our services industry playing a “solid role in bolstering the broader economy.”
“Globally, the Australian communications industry has consistently been recognised as among the top five countries that generate the most creative and effective work,” he said.
“It’s clear from this research that an investment in advertising helps to drive the Australian economy further.”
Advertising in WA contributed $4.5 billion to the economy in 2014.
Australia’s retail industry spent the most, around $8.7 billion, on advertising in 2014.
Followed by motor vehicles ($4.6 billion), finance and insurance ($3.9 billion), real estate ($3.2 billion), and entertainment and leisure ($2.9 billion).
Every advertising job in Australia supports three more jobs.
There were 55,903 people employed in Australia’s advertising industry in the past 12 months to May 2015.
Half are employed in traditional advertising services businesses, the other half work in media, creative, digital, consulting, retail companies and government.
Deloitte Access Economics estimates the indirect employment, including content development and campaign planning, is 47,900 people.