NEWS20 October 2023

Australian advertising industry worth $53bn

Asia Pacific Media News

AUSTRALIA – Advertising contributes $53bn to Australia’s economy every year, equalling 2.1% of the nation’s gross domestic product (GDP) in 2022, according to research from Deloitte.

Sydney Opera House

The report, carried out by Deloitte Access Economics and called Advertising Pays, found that advertising employs 153,400 Australians and was growing 5% a year.

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% a year across all industries.

For every five people directly employed in advertising, a further four are employed in industries and sectors that support advertising, according to the report.

In 2022, $18bn was spent on advertising in Australia, and that its overall economic impact had grown 12% since 2014.

The figures meant advertising was more valuable to the Australian economy than the accommodation and food services industry, worth $47bn, or the telecommunications industry, worth $52bn.

Advertising Pays was commissioned by the Advertising Council of Australia (ACA), the Australian Association of National Advertisers (AANA) and the Media Federation of Australia (MFA).

Sophie Madden, chief executive at the MFA, said: “The study underscores that advertising serves as a major driver of job creation in Australia, with the industry employing 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.”

AANA chief executive Josh Faulks said: “Advertising is often overlooked as an economic driver and yet it is responsible for contributing a staggering $53bn 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.”

Tony Hale, chief executive at the ACA, added: “The industry plays a significant role in building strong, recognised brands that contribute to long-term economic growth, with the top 100 Australian brands valued at $194bn in 2023 alone.

“Our combined creative capabilities can and do drive positive change, and champion the values that resonate with the business community and public.”