Ad industry positioned as key sector for driving economic growth
The Future of Media Manchester
“If they’re [the government] looking for an industry that can drive the growth they need, they can look no further than advertising.”
This was the key message from Advertising Association policy and government affairs specialist Chris Walker during a session at The Future of Media Manchester last week.
At a time when the government needs to prove its plan for driving economic growth and deliver on the changes promised by the Labour party, it is essential that prime minister Sir Keir Starmer instils confidence in his party, businesses and the public.
In light of this, top of the agenda for Starmer at the Labour party conference, which started on Sunday, is highlighting his plan for growth. And as Walker outlined, while advertising plays an essential part in the UK economy, reform is needed and restrictions must be considered.
Advertising accounts for 4% of UK’s gross value added and 5% of employment
Advertising’s dual role
Credos director Dan Wilks drew on the Advertising Association’s Advertising Pays report, highlighting how £108.6bn gross value was added to the UK economy through advertising and marketing in 2024.
Advertising in particular had a gross value added (GVA) contribution of £46.3bn, which was significantly higher than other creative industries such as publishing, which had a GVA of £10.1bn.
Crucially, advertising as an industry, while being part of the creative sector, also forms part of the professional services sector that focuses on driving business growth. Within this, advertising fared well again, with legal services reporting a GVA of £39.1bn and accounting, bookkeeping and auditing offering a GVA of £33.4bn.
Wilks said: “There aren’t many other industries in the economy that have a dual purpose of driving growth at macro level whilst also supporting jobs, revenues and content in creative industries.”
The UK is also a world-leading hub for advertising exports, with £17.9bn exported in 2024 — second only to the US.
Moreover, Wilks underlined the important place advertising has in funding very valued features in society, including journalism, TV, magazines, maps, emails, radio, podcasts, cinema, search, sports and culture, as well as urban infrastructure.
Future outlook
Despite advertising being secured in the Creative Industries Sector Plan, with the UK government announcing in June that £380m has been earmarked for investment in creative industries, Walker argued that there are still areas that need further investment.
At the Labour party conference, the Advertising Association would be focused on securing investment for driving skills and apprenticeships within the industry and make recommendations to the Department for Business & Trade and the Department for Culture, Media & Sport on this.
Walker also highlighted the restrictions on growth, referencing the incoming less healthy food advertising restrictions coming into effect from 1 October and the implications of this on TV and online.
It is also crucial to ensure no more restrictions are brought in, he added: “This hampers growth, which impacts the economy.”