A recent study led by S&P Global Market Intelligence and commissioned by The Advertising Coalition highlights the significant role advertising plays in the U.S. economy. The analysis revealed that advertising accounted for more than 20% of total U.S. economic output last year and was directly responsible for supporting nearly 29 million jobs, which is approximately 18.3% of the country’s workforce. This impact was evident across all 50 states, where advertising-supported jobs ranged from 14.1% to nearly 20% of total employment depending on the state.
The research quantified that advertising stimulated $10.4 trillion in total U.S. sales activity in the previous year. This figure includes $491 billion spent directly on advertising, which led to $3.5 trillion in direct sales and an additional $2.8 trillion in sales through supply chain activities linked to those advertisers. Furthermore, $3.6 trillion in sales stemmed from employee spending in businesses influenced by advertising dollars. On average, every million dollars invested in advertising supported 59 American jobs, with the average salary for these jobs exceeding $93,000 annually about 26% higher than the national average.
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Looking ahead, the study predicts that by 2029, advertising’s footprint in the economy will grow further, driving $12.7 trillion in sales activity and supporting over 32 million jobs. The geographic distribution of advertising impact challenges the notion that benefits are confined to traditional media hubs such as New York, Los Angeles, and Chicago. Instead, the greatest concentration of advertising-supported jobs is found in states across the Midwest, South, and West Coast, including Illinois, Ohio, California, and several others.
Industry leaders welcomed the findings, emphasizing advertising’s vital role in fostering economic growth, innovation, and competition. Bob Liodice, CEO of the Association of National Advertisers, pointed out that advertising not only helps individual companies but also drives the broader economy, enabling businesses of all sizes to compete effectively. Justin Thomas-Copeland, CEO of the 4As, underscored that advertising agencies are crucial to connecting businesses with consumers and fueling innovation, while warning that preserving the tax deductibility of advertising expenses is essential to sustaining this economic engine. Steve Pacheco, CEO of the American Advertising Federation, praised the study for demonstrating advertising’s importance across all markets, supporting millions of jobs and trillions in economic activity nationwide. Curtis LeGeyt, President and CEO of the National Association of Broadcasters, highlighted the value local TV and radio stations provide in connecting communities and sustaining trusted information channels.
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Overall, the study reaffirms advertising’s position as a dynamic and indispensable force underpinning nearly one-fifth of the U.S. economy and employment landscape, demonstrating its reach far beyond individual marketing campaigns and into the fabric of everyday economic life.
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