New analysis published today by Credos shows advertising’s role in the Scottish economy, underpinning £8.8 billion of GDP and supporting high-growth digital and creative sectors.
“Advertising Pays Scotland” centres on econometric analysis of advertising’s effects on market efficiency, productivity, competition and innovation. It finds that, on average, £1 of advertising spend returns £5 to the Scottish economy, and the resulting £8.8bn contribution equates to 5.6% of the Scottish economy.
The report also finds that some 42,000 jobs in Scotland are supported by advertising, with over half of those directly involved in the commissioning and creation of ads. 7,000 more jobs in Scotland’s Creative Industries are supported by advertising revenues, as well as a further 13,500 in the wider economy. The £1.7bn spent on advertising in Scotland in 2015 flows through the media, digital and creative industries – supporting creative talent across directors, animators, producers, photographers, acting talent and more.
The report has been commissioned by the Advertising Association’s Front Foot Scotland network, aiming to raise awareness of advertising’s positive impact to policymakers. The group are pushing for closer ties between Scottish advertising and Holyrood when it comes to advertising’s potential to support economic growth.
Brian Coane, former Chairman of the Institute of Practitioners in Advertising (IPA) Scotland said:
“Whatever lies in Scotland’s future, we need to be competitive at home and abroad – and advertising is at the heart of effective competition. This report shows how advertising is part of our economic infrastructure – helping all companies reach customers, create return on investment and grow. As we look to build a strong, sustainable economy we need to encourage businesses to access the power of great communications.”
For the full report, click here.