A new report from global economic research firm IHS Economics & Country Risk, backed by the Association of National Advertisers and The Advertising Coalition concludes that the nearly $300 billion in advertising expenditure in the U.S. last year drove about 16% of the nation’s sales activity, or some $5.8 trillion.
The ad spend directly stimulated about $2.4 trillion in sales, or 6.5% of the 36.7 trillion in total U.S. sales activity last year. The report surmises that 2014 ad spending drove an additional $1.4 trillion in indirect sales, the result of a “’multiplier effect’ throughout the economy as dollars flow through supply chains.”
“Advertising plays a significant role in stimulating US economic activity and supporting jobs in all sectors of the economy,” the report concludes. “Furthermore, advertising activity will continue to make a substantial contribution to the nation’s economic activity through the forecast horizon, which extends to 2019.”