​Report: Advertising is fuelling the Aussie economy

Recent figures from Deloitte reveal advertising is a major driver of economic growth, job creation and innovation

Advertising contributes $40 billion to the Aussie economy and is a key driver behind employment, competition and innovation, a new report claims.

The Deloitte Access Economics report, Advertising Pays: The Economic Employment and Business Value of Advertising, revealed the $40bn economic contribution delivered by advertising almost equates to the productivity value of the Internet and digital technologies to the Australian economy. It’s also equivalent to the annual economic boost from a major economic reform such as the National Competition Policy and stands larger than the size of the accommodation and food services industry combined.

On top of this, the advertising industry drives significant employment growth, and is associated with the employment of 200,000 Australians, including direct roles and those created in the supply chain and supported sectors.

The employment analysis further showed the advertising sector can play a role in the Australian Government’s innovation agenda to create a greater number of highly skilled and technical roles and is a driving factor in the growth of Australian businesses.

Despite the report’s findings, Deloitte’s partner, John O’Mahony, said traditionally advertising has often been overlooked as an economic driver.

“Advertising provides strong incentives for business to be more innovative and to offer better products and more competitive promotion in their efforts to win market share,” he said. “Consumers enjoy the benefits of both competitive pricing and being better informed purchasers of goods and services.”

According to the report, the total value of Australia’s top 100 brands is $128bn. Chair of the Communications Council and CEO of M&C Saatchi Group Australasia, Jaimes Leggett, said it's clear from this research that an investment in advertising helps to drive the Australian economy further.

“Australia is now entering its 25th year of consecutive GDP growth,” he said. “As the commodities market softens, it’s encouraging to see our services industry has a solid role in bolstering the broader economy.”

Industry practitioners agreed brands must continually invest in the right channels to ensure their products and services stand out in a highly competitive market economy.

“Brands must continually ensure their products and services are differentiated and satisfying customer needs,” Officeworks' managing director, Mark Ward, said. “Advertising enables us to convey these messages to customers. But it must be aligned with the broader strategic objectives. There is nothing worse than telling a customer you're offering a great service when it's not good. It destroys customer trust.”

"Advertising in its broadest form of paid, owned and earned plays an increasingly important role in ANZ’s regional business strategy,” added ANZ’s group general marketing manager, Louise Eyres. “Aligning ANZ’s advertising with our broader strategic objectives and values has enabled us to build a much stronger brand that resonates with our geographically and culturally diverse customer base.”

As an example, the bank’s recent investment in the recent GayTM and accompanying #GAYNZ twitter campaign launched celebration of the 10th anniversary of Sydney’s Gay and Lesbian Mardi Gras, reached 1.8 million Australians via Twitter. #GAYNZ was mentioned 4700 times globally, earning 24.6 million potential impressions, and was mentioned 2500 times in Australia, earning the brand 14 million potential local impressions.

“Advertising has played a key role in achieving our broader strategic goal of financial independence and inclusion through initiatives such as GayTM,” Eyres said.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

Maintaining trust in a sceptical world: The power of brand trust

The faith people have in brands creates opportunity for those brands to become trusted advisors. In turn, this builds success by increasing the brand’s profile, letting it broaden its product offering and driving stronger customer loyalty.

Dan Ratner

managing director, uberbrand

When growth stalls: How to boost growth in large organisations

The push to start new businesses continues. In Q1 2017, the number of seed and angel deals increased by 1.4 per cent compared to Q1 2016.

Con Frantzeskos

CEO, Penso

Why we need diversity in marketing

​When we read articles about the need for increased diversity in marketing land, it is often through the lens of gender.

Jodie Sangster

CEO, ADMA

Interesting insight, well explained and the examples are just apt.Thanks for sharing!

FreshMindIdeas

The politics of branding - Brand science - CMO Australia

Read more

When the world that we live in floods with gigabytes of content every day, we have to learn to be selective about it. Such educational we...

Paulina Cameron

ADMA launches education program to tackle viewability, ad fraud and brand safety

Read more

Hi, i am an Aistralian ALK patient, been on xalkori dec 13 to oct 15 and achieved remission of disease, since been on Ceritinib until no...

gary packer

Pfizer Australia adopts AI-powered digital analyst tool for sales and marketing decision making

Read more

Hi James, shouldn't marketers also be focusing on collecting and utilizing up to date first-party profiling data on customers so that mes...

Tom

3 ways customer data can increase online sales conversion

Read more

Wouldn't reconnecting with younger consumers be in direct contravention of the code on alcohol advertising?

Tim Palmer

Vodka Cruiser reconnects with younger consumers via category-first Facebook Live campaign

Read more

Latest Podcast

Getting Intimate with CX Ep 5: Tammy Marshall, founder, The B Hive

How much of customer experience is having the foresight to know what those individuals might like, versus asking them? In Episode 5 of this new podcast series, BrandHook MD, Pip Stocks, talks with Tammy Marshall about the importance of asking your customers questions, how consistency plays a role in engagement, but how the unexpected adds extra value.

More podcasts

Sign in