American companies spent nearly $300 billion on advertising across all industries and media last year, says a study commissioned by a coalition of the nation's big advertisers, the advertising industry and media organizations.
The Advertising Coalition and the Association of National Advertisers urged that the study, by IHS Economics and Country Risk, be used as a weapon to fight congressional efforts to restrict the tax deductibility of advertising expenses.
"Recent legislation developed by former chairmen of the House and Senate tax-writing committees (Rep. Paul Ryan and former Sen. Max Baucus) have made it essential for the nation's advertisers and media to inform all Senators and Representatives about the important role advertising plays in each of their states and congressional districts," the executive summary of the report said.
To help drive home the point to lawmakers, the report, released today, included a state-by-state breakdown of the economic impact of advertising.
On a national level, the study said companies in the United States spent an estimated $297 billion on advertising in 2014. It also said advertising supported $5.8 trillion of U.S. economic output and 20% of the 142 million jobs in the United States.
The average salary for the jobs that are supported by advertising is nearly $96,000, or about 20% above the national salary average, the report said.
The study also forecast that, under current economic conditions, spending on advertising will grow at an average rate of 3.3% from 2014 through 2019, rising to $349 billion at the end of this decade.
IHS Economics and Country Risk developed the study with the help of the Internal Revenue Service's "Statistics of Income" and other federal economic data.