20,000 jobs supported by advertising

Advertising supports 20,000 Irish jobs and has a higher multiplier effect than most other sectors, according to the first macro-economic assessment of the industry.

A study commissioned by the Advertisers Association of Ireland found that the sector generated tax revenues of €158m for the exchequer in 2011 from an overall ad spend of €1.1bn.

The study also found that each job within the sector supports another three non-advertising jobs.

AAI president Fiona Curtin said: “The impact of advertising on the wider economy is more substantial than many other industries and is often not readily recognised. The advertising industry in Ireland has an overall economic multiplier of 3.0, higher than the average for other industries in which the input/output model has been employed.”

Ms Curtin said advertising contributes €766m to GDP. Of this, €255m represents direct value-added. The overall national spend has decrease by 2% versus 2010.

Press advertising has been the main conduit for advertising spending over the past few years, with a total spend of €422m in 2011. Online advertising grew by 20% during 2010 and 2011, reaching €132m in 2011.

The service sector accounted for 76% of total advertising spend in 2011. From 2008 to 2011, construction and property spend fell by 84%. Agriculture was the sole growth area, with spend increasing 6.5% for the period.

Around 75% of turnover for media organisations is derived from advertising. Irish media organisations employ just less than 10,000 people in the traditional areas of press, television, and radio. This is made up of 3,700 full-time equivalent direct employees and another 6,155 indirect employees.

Ms Curtin said: “In supporting the viability of media, advertising promotes the independence of the media industry which is an important feature of modern democracies and cultural development. Advertising also supports the wider creative industries in Ireland and overall, it is estimated that, at a minimum, the advertising sector supports over 20,000 jobs in the Irish economy.”