Advertising Industry to Support 21 Million Jobs
The advertising industry is projected to drive $5.2 trillion into the U.S. economy next year, a major new economic study has found. The total economic activity generated by advertising -- which includes direct spending, supplier spending and inter-industry activity - will account for a projected 20.5 percent of the United States' economic activity.
Advertising will also generate an estimated 21 million jobs, or 15.2 percent of the national workforce of 139 million. The findings, released today, come from a new study entitled the "Comprehensive Economic Impact of Advertising Expenditures." It was conducted by Michael J. Raimondi of Global Insight, under the direction of Nobel Laureate in Economics Dr. Lawrence R. Klein for The Advertising Coalition. The Coalition is comprised of nine national media and advertising trade associations. Total advertising spending by businesses in the U.S. for 2005 is estimated to reach approximately $278 billion, according to the study. These expenditures are projected to create a total revenue impact of $5.2 trillion. The total estimated impact includes the spending on advertising, the direct impact on sales of $2.3 trillion, the impact on supplier economic activity of $1.2 trillion and the impact on inter-industry economic activity of $1.4 trillion.