New report shows Ad Industry contributes $6 billion to NZ economy

1:25 PM, 6 June 2017

Advertising and economic growth are truly intertwined

Advertising and economy - read the facts

Up to recently, discussing the correlation between advertising and economic growth in New Zealand was just a matter of hearsay. A great ad can resonate with audiences, but where are the actual numbers?

This is why ANZA welcomes the launch of a report by Deloitte Access Economics for the Commercial Communications Council which, for the first time, provides an econometric analysis of advertising's monetary value has been undertaken in New Zealand.

Photo courtesy of GotCredit

The report shows:

  • Advertising is a significant driver of economic growth contributing around $6 billion or 2.4% of GDP a year
  • Paid advertising expenditure was $2.4 billion in 2015 -- almost 1% of GDP total expenditure. Including creative and production this figure is likely over $3 billion.
  • More than 44,000 New Zealand jobs are associated with advertising, including 12,000 directly employed in the advertising industry.

The role of advertising in economic development

This report finally sheds light on the significant contribution the industry makes to the NZ economy over and above what is actually spent on advertising.

Advertising contributes 2.4% to the county's GDP per year, about half what international tourists spend here in the same period of time.

In addition to economic benefits, the report shows advertising is an established and proven influencer of audience behaviour in areas such as road safety, public health, and tourism.

For example, Deloitte highlights that the 'Legend' drink driving campaign, commissioned by The NZ Transport Agency, is estimated to have saved 64 young drivers' lives over three years, saving the country $290 million.

If you would like to know more, you can download the full report here.

What are your thoughts on the Inaugural Deloitte 'Advertising Pays' report? All feedback, queries, and opinions are welcomed to lindsay@anza.co.nz

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