Advertising is worth £100bn a year to the UK economy, far more than previously thought, according to new research.
The Advertising Association said every £1 of ad spend generated a return of £6, and this showed that "GDP growth follows advertising investment, not the other way around". Its chief executive, Tim Lefroy, urged government and the private sector to invest more in advertising as a way to stimulate growth.
"Advertising is a vital enabler of the consumer economy, underpinning £100bn of GDP and playing a critical role in the high-growth digital and creative sectors," he said, noting that "60 per cent of GDP is rooted in household consumption".
The report by the accountancy firm Deloitte was released ahead of a summit of advertising leaders this morning in London at which the Culture Secretary, Maria Miller, a former advertising executive, is due to speak. The Government has come under fire from many in the industry for slashing Whitehall spending on advertising in 2010.Reuse content