We always knew Chicago was an enormous advertising market?second only to New York in North America?and that advertising was big business.
Now thanks to a new study by Global Insight on behalf of The Advertising Coalition we know for a certainty exactly how huge it is. The total revenue impact of advertising spending on Chicago in 2005 will be $182 billion, according to the study.
That’s about 22.5% of the city’s projected $805 billion economic activity.
That ad spending figure includes $86 billion in direct impact on area sales, a $42 billion impact on supplier economic activity and another $53 billion in inter-industry spending.
According to the study, some 737,971 jobs are supported by advertising spending in the city.
Nationally, total advertising spending by businesses in the U.S. for 2005 is estimated to reach approximately $278 billion, about an 8% rise over 2004. These expenditures are projected to create a total revenue impact of $5.2 trillion.
The total estimated impact includes the spending on advertising, the direct impact on sales of $2.3 trillion, the impact on supplier economic activity of $1.2 trillion and the impact on inter-industry economic activity of $1.2 trillion and the impact on inter-industry economic activity of $1.4 trillion.
Advertising will account for a projected 20.5% of the U.S. economic activity. Advertising will also generate an estimated 21 million jobs, or 15.2% of the national workforce of 139 million.
The findings come from a new study, “Comprehensive Economic Impact of Advertising Expenditures.” It was conducted by Michael J. Raimondi of Global Insight, under the direction of Nobel Laureate in Economics Dr. Lawrence R. Klein for The Advertising Coalition, which is comprised of nine national media and advertising trade associations, including the 4As and the Advertising Federation.