In an era where economic engines are constantly scrutinized for impact and efficiency, advertising has proven itself as a powerhouse. A new study commissioned by The Advertising Coalition and conducted by S&P Global Market Intelligence reveals that advertising was directly and indirectly responsible for $10.4 trillion in U.S. economic activity in 2023—a staggering 21.9% of total U.S. output.
It also supported 29 million American jobs, representing 18.3% of the national workforce. If there was any doubt about the role of advertising in the U.S. economy, this data should silence it.
Advertising’s Ripple Effect on the Economy
The report, titled “The Economic Impact of Advertising on the U.S. Economy,” offers the most comprehensive analysis of its kind since 2022. It breaks down how advertising stimulates sales, drives employment, and boosts wages across all industries—not just media or marketing.
- Every $1M spent on advertising supported 59 jobs across the economy.
- The average salary of advertising-supported jobs was $93,000, 26% above the national average.
- Advertising drove $3.5 trillion in direct sales, $2.8 trillion in indirect supplier sales, and $3.6 trillion in induced sales from employee spending.
“This isn’t just about Madison Avenue or Silicon Valley,” said Bob Flanagan, Consulting Director at S&P Global. “Advertising stimulates spending across businesses and households, fuels supply chains, and drives consumption. It’s a fundamental economic driver in every community.”
Beyond the Coasts: Advertising’s State-Level Impact
While major media hubs like New York, Los Angeles, and Chicago benefit significantly, the study underscores that advertising’s impact is deeply felt in every state.
In fact, many of the top 17 states with the highest share of advertising-supported jobs are in the Midwest, South, and Pacific Northwest—including Illinois, Ohio, Kentucky, Mississippi, and Oregon. Job support levels ranged from 14.1% to 19.7% of total employment, reflecting advertising’s widespread, cross-industry influence.
Projected Growth: By 2029, a $12.7 Trillion Engine
The study forecasts a bullish outlook for the ad industry’s macroeconomic contribution. By 2029, advertising is expected to generate $12.7 trillion in total sales activity and support 32.1 million jobs—a testament to its adaptability and growing relevance in the digital age.
With $491 billion spent on advertising in 2023, this investment produced an unmatched economic multiplier—proving once again that advertising isn’t a cost center, but a growth engine.
Industry Leaders React
Leaders across the advertising ecosystem welcomed the findings as a validation of what many in the industry already understood intuitively:
- Bob Liodice, CEO of the Association of National Advertisers (ANA), emphasized advertising’s role in enabling companies of all sizes to compete, calling it a pillar of “progress, prosperity, and growth.”
- Justin Thomas-Copeland, CEO of 4As, highlighted how advertising agencies drive demand, build brands, and foster innovation, stressing the importance of maintaining full advertising expense deductibility.
- Steve Pacheco, CEO of the American Advertising Federation (AAF), noted the report’s revelation that advertising drives economic value beyond major markets, stating, “Advertising is vital to clients, consumers, and every layer in between.”
- Curtis LeGeyt, President of the National Association of Broadcasters (NAB), pointed out advertising’s role in sustaining local journalism, emergency information, and community engagement through TV and radio.
Why It Matters
In a time of tightening budgets and increased demand for measurable ROI, advertising proves itself not only as a revenue driver, but also as a jobs engine, a wage booster, and a backbone of the American economy.
This study could also influence policy conversations, especially debates around tax treatment of advertising expenses and the role of advertising in supporting local economies and small businesses.
Whether you’re selling shoes, streaming media, or running a tech startup, advertising doesn’t just promote—it multiplies.
