Advertising is a growth industry in nearly every state, according to predictions from the Advertising Coalition, a super-group of representatives from trade associations including the 4A's, ANA, National Association of Broadcasters, and the Newspaper Association of America.
In our regulation issue, Beth Snyder Bulik discussed a study prepared last fall by IHS Global Insight the coalition commissioned to measure the economic impact of advertising on employment and sales. The coalition this week released state-by-state totals with some eye-opening results.
Between 2010 and 2014, advertising-related jobs are projected to grow as much as 11.1% in Arizona. Virginia and Washington also show double-digit growth. Nationwide the study projects a 6.2% increase to 20.3 million jobs over that span. At the state level, these jobs represent between 13.1% to 18.1% of all jobs.
Advertising employment will see slower growth, increasing 4.2% to 657,000. Several states will have declines, however, including the big advertising hubs in New York and Illinois, which will drop 3.7% and 4.2%, respectively.
Clearly this is casting a wide net in order to generate big numbers but that doesn't mean it's unreasonable. The study controlled for variables such as "consumer buying power, life stage buying behaviors, technological advances, and simply the need to replace obsolete or depleted items" to come up with an estimate for the impact of advertising and marketing.
The study measures the impact on three areas of the economy:
- Retail and manufacturing: including sales of products and services as well as agency work, media and the services related to the creation of advertising;
- Suppliers: companies that produce products and parts for the advertised goods that are sold; and
- "Inter-industry activity": the services used by the suppliers including logistics, fuel, etc.
Advertising expenditures are projected to grow between 7.4% (Hawaii) and 25.1% (Louisiana). Total sales related to advertising are projected to grow between 13.4% (New York) and 26.7% (Oregon).
Nationwide, the study predicts sales growth from $5.5 trillion to $6.5 trillion over the four-year span.).