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Dr Benjamin Reid
Senior Researcher, Big Innovation Centre
T 020 7976 3552

The Contribution of Advertising to the UK Economy

The Contribution of Advertising to the UK Economy

Alexandra Albert and Dr Benjamin Reid
07 November 2011

The advertising sector is a key part of the UK creative industries, and a leading sector for the UK globally within the knowledge economy. This report – in association with Credos, the Advertising Industry think tank – represents the first attempt to systematically map the economic impact of the UK’s advertising industry on the UK economy. 

It concludes that the core impact – including direct, indirect and induced impacts – was £15.6bn for 2008. However, there are also a range of ‘catalytic’ impacts which should be taken into account: these would including advertising spend by advertisers, and the ‘consumer’ surplus individuals gain from services on the internet which are ‘free’ for them to use as they are supported by an advertising-based business model. It concludes by tracing the correlations between the strength of the advertising industry and a range of national outputs such as innovation, competitiveness, and economic growth.

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