SOURCE: SDX

SDX

October 08, 2015 11:00 ET

SDX Announces Landmark Study Highlighting $71.5 Billion Economic Impact of Advertising Industry in San Diego County

SAN DIEGO, CA--(Marketwired - October 08, 2015) - SDX, San Diego's premier media, marketing and technology organization for brands, agencies, publishers and startups, announced the results of a landmark study by world-recognized economic consulting firm IHS Global Insight that every dollar of ad spending generates $22 of economic output. Additionally, every million dollars of ad spending supports 81 American jobs.

SDX is the San Diego chapter of the American Advertising Federation (AAF) who commissioned the study. According to Doug Hecht, 2015/16 SDX president, "Whether it's online banner ads or television commercials or anything in between, advertising drives the economy and jobs. From the five congressional districts covering San Diego County, advertising expenditures account for 16.9% of economic output and 15.54% of total jobs."

Michael Warburton, San Diego Zoo Global Brand Manager and current chair of the SDX Board said, "Although a subject not often thought about, data like this describes the robust advertising and marketing industry here in San Diego. Advertising is clearly an important contributor to the San Diego economy." Warburton also currently serves as Lt. Governor of the AAF District 15 which encompasses Southern Nevada and Southern California.

"Advertising has proven to be among the nimblest industries in this age of the Internet, and this study validates its regional economic impact," said San Diego County Supervisor Ron Roberts. "We all have become online researchers, but very often it is an ad that perks our interest in the product or service we set out to learn more about."

According to the study, advertising helps businesses build brand awareness and communicate the benefits of their products and services to target audiences. In turn, this triggers a cascade of economic activity and stimulates job creation and retention throughout the U.S. economy.

The economic model developed by IHS Global Insight and Dr. Lawrence R. Klein (recipient of the 1980 Nobel Prize in Economics) estimates and predicts the impact of advertising on sales and jobs as distinguished from the impacts of other economic factors such as consumer buying power, life stage buying behaviors, technological advances, and simply the need to replace obsolete or depleted items. IHS estimated the economic impact across four dimensions: direct economic impact, suppliers economic impact, inter-industry economic impact, and induced consumer spending.

Below is a chart summarizing economic impact by the five Congressional Districts covering San Diego County.

 
San Diego County's Congressional Districts
  $$ Value of Advertising Expenditures Accounting for Economic Output  
Percentage of Total Economic Output
  Jobs as a result of Advertising Driven Sales of Products & Services  

Percentage of Total Jobs
              
 District 49   $13.1 Billion   18.2%   45,234   17.6%
 District 50   $6.2 Billion   14.2%   22,787   12.9%
 District 51   $3.8 Billion   14.1%   13,629   12.0%
 District 52   $24.9 Billion   20.0%   82,128   19.6%
 District 53   $23.5 Billion   18.0%   83,484   15.6%
              
 Total:   $71.5 Billion   Avg 16.9%   247,262   Avg 15.54%

About SDX

Founded in 1911, SDX (formerly the San Diego Ad Club) is San Diego's oldest continuously operating business association. SDX brings together creative thinkers, business planners, marketing aficionados, communications technology innovators and more in order to build a community of professionals focused on what's next in the industry. SDX is creative, rooted in brand building, committed to public service and grounded in building valuable professional and personal relationships.

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