The Advertising Association (AA) has set out new proposals, urging the Government to exploit the UK’s strength in advertising as it develops its new Industrial Strategy.
The Government’s Green Paper, ‘Building Our Industrial Strategy’ was published in January and invited business sectors to come forward with proposals to help ‘create the conditions where successful businesses can emerge and grow’. Following consultation right across the sector, the AA’s blueprint for advertising centres around two key proposals:
- Using advertising as a domestic a growth lever: using targeted measures, including regional advice hubs and a new tax credit, industry and government can help SMEs to connect better with their customers at home and abroad. Even very conservative initial estimates show this could deliver around £800 million in additional revenue to the Treasury over the next two Parliaments.
- Promoting a post-Brexit Britain as a global advertising and media hub: the UK is arguably the world leader in advertising and marketing services, with the highest per capita exports and a creative reputation second to none. Support for advertising hubs across the UK like London, Manchester and Edinburgh, would continue to attract overseas business and talent. Using those services in tandem with award-winning creative work could further elevate the standing of UK advertising worldwide.
UK advertising spend passed £21 billion in 2016 and posted its highest ever quarter in Q4. Through its work with Deloitte, the AA has quantified the contribution advertising now makes to the UK economy including over 1,000,000 jobs, £4.3 billion in service exports and a £120 billion total contribution to GDP.
Stephen Woodford, CEO of the Advertising Association said:
“There are few better examples of the UK’s potential to trade with the world than our sector. UK advertising is highly skilled, open to global talent and investment and widely admired. With Government’s support, we can retain and build that advantage for UK plc – and make the benefits felt right across the country.”
Having already met with a number of Government departments, the AA is gearing up to put the case forward immediately after the Election, with detailed econometric modelling, more detailed proposals for regional advice hubs and recommendation on promoting the UK as a global centre of excellence.
The full strategy is available to download below.