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WFA/UDA study reveals positive impact of advertising on global economy
Date: 02/10/2007
WFA has today published, in conjunction with the French Advertiser Association (UDA), a study on the importance of advertising for the economy. The study is an important contribution to our understanding of the role of advertising in a modern, dynamic economy.
Carried out at the University of Paris 9 - Dauphine, the study demonstrated that:
1. Advertising and growth are directly linked
The more advertising investment grows, the more the productive efficiency of a country increases (and vice versa). And those countries in which relatively little is invested in advertising are also those in which economic growth is weakest.
2. Advertising speeds up the spread of innovation
Advertising speeds up the conversion of R&D expenditure into revenue helping transform technological progress, often in danger of being unexploited, into profitable product innovation.
3. Advertising is essential for competition
Business sectors where advertising is used effectively are that those with the most dynamic market share movement and therefore those in which competition, a recognised driver of growth, is liveliest.
4. Advertising is a multiplier of economic growth
Within the advertising industry itself added value is increasing twice as fast as in the economy as a whole, and its contribution to employment growth is four times greater than the average for the overall economy. This correlation between the rate of economic growth and the rate of investment in advertising is visible internationally.
The full study can be downloaded below.
WFA is committed to promoting research that quantifies the role of advertising in a successful economy. More work is needed not only in this field but also to consider its role as a pillar of our societies: providing freedom of choice for individual citizens, supporting the freedom and vibrancy of our media, making a crucial contribution to culture and sports. For more information on the work WFA is doing please contact [email protected]
Documents:
WFA-UDA_Advertising&Economic_Growth.pdf
