Advertising supports 29 million US jobs

A comprehensive economic impact study released on August 5, 2025, found that advertising powered more than 20% of total US economic output while supporting 29 million American jobs last year. According to S&P Global Market Intelligence, advertising was responsible for $10.4 trillion in total US sales activity in 2024.

The analysis commissioned by The Advertising Coalition revealed that advertising supported 29 million of the 158.1 million jobs in the US last year, representing 18.3% of the total workforce. Companies spent $491.1 billion on advertising their products and services in 2024, which directly stimulated $3.5 trillion in sales activity.

Downstream effects created an additional $2.8 trillion in indirect sales through suppliers to those advertisers. Employee spending from direct and indirect ad-supported businesses generated another $3.6 trillion in sales. This cascade of economic activity demonstrates how advertising expenditures trigger broader economic multiplier effects throughout the US economy.

Bob Flanagan, Consulting Director at S&P Global Market Intelligence, explained the methodology behind the findings. "Our data-driven models traced how advertising drives spending by US business and households, stimulates supply chain activity and enhances income-based consumption," he said. "We quantified advertising's broader economic impact on businesses, workers, and communities across the country."

The research challenged conventional wisdom about geographic concentration of advertising benefits. While major ad hubs like New York, Los Angeles, and Chicago might be expected to capture most benefits, advertising had significant economic impacts across all 50 states due to sales it drives across supply chains in every industry.

State-by-state impact varies modestly across regions

The study found that advertising supported a significant percentage of all jobs in all 50 states, ranging from 14.1% to 19.7% of all jobs depending on the state. The 17 states with the highest percentage of advertising-supported jobs were dominated by the Midwest, South, and West Coast regions.

Illinois, Indiana, Iowa, Kansas, Michigan, Ohio, and Wisconsin led among Midwest states. Southern states with high advertising impact included Alabama, Kentucky, Mississippi, South Carolina, and Tennessee. California, Oregon, and Washington represented the West Coast, while Maine and New Hampshire also achieved high percentages.

State-specific factors that influence this concentration include industry composition, regional advertising strategies by firms, and levels of disposable income, according to the analysis. Manufacturing and industrial states particularly benefited from advertising's supply chain effects.

Economic multiplier effects generate high-quality employment

The study revealed that every million dollars spent on advertising supported 59 American jobs across a broad range of industries. More significantly, the average salary supported by advertising was over $93,000 per year, representing compensation 26% higher than the national average.

This wage premium suggests that advertising-driven economic activity creates higher-skilled positions requiring specialized knowledge and capabilities. The total impact of advertising represented 19.9% of US GDP in 2024, with wages supported by advertising representing 21.5% of all personal and proprietor income in the United States.

According to the research, every dollar of ad spending stimulated, on average, over $20 of follow-on sales activity. This 20:1 multiplier ratio demonstrates the substantial economic leverage that advertising spending provides across the broader economy.

The economic impact sequence begins with direct spending initiated by advertising expenditures. Direct suppliers who benefit from advertising spending engage with their own suppliers, starting an indirect contribution cycle. Employees supported by direct spending and extended supply chain activity contribute to induced economic activity through consumer purchases in local communities.

Methodology employs Nobel Prize-winning economic modeling

The modeling approach used in the study was originally developed by Dr. Lawrence R. Klein, recipient of the 1980 Nobel Prize in Economics. S&P Global Market Intelligence adapted Klein's methodology to account for the evolution of the US economy's structure over recent decades.

The analysis utilized IRS Statistics of Income data by industry to collect historical advertising expenditure information reported on corporate income tax forms. Macroeconomic equations estimated how sensitive sales are to advertising spending in each industry, revealing that some industries depend more heavily on advertising to generate sales than others.

Input-output methodologies computed the ripple effects of economic activity resulting from advertising-driven sales. The study simultaneously allocated advertising impacts to every state, congressional district, and 20 industry aggregates using proprietary macroeconomic, regional, and industry models.

Researchers assessed economic impact by quantifying how advertising spending affects five key indicators: sales activity, employment, value-added contribution to gross domestic product, labor income, and government revenues. Value-added measurements provide more accurate indicators of advertising's economic contribution by removing double counting that occurs when analyzing sales activity across supply chains.

Digital transformation reshapes advertising landscape

The study's release comes amid significant developments in digital advertising markets. Previous analysis from economists Ricardo Marto and Hoang Le found that digital advertising now accounts for up to 1.1% of US GDP, driven by enhanced data collection and analysis capabilities.

Digital advertising has become a dominant force in the US economy, accounting for approximately 65% of total advertising spending in recent years. Alphabet/Google generated advertising revenue equivalent to 0.85% of US GDP in 2023, while Meta/Facebook accounted for another 0.47% and Amazon's digital advertising revenue totaled 0.17% of GDP.

IAB reported that digital advertising revenue reached unprecedented heights in 2024, climbing 14.9% year-over-year to $258.6 billion. The analysis revealed the strongest growth for the industry since 2021, with mid-tier publishers gaining market share for the first time.

Connected television advertising has emerged as a particularly dynamic sector, with 86% of buyers using artificial intelligence for video advertisements. Industry projections indicate that generative AI creative will account for 40% of all advertisements by 2026.

Forecasts project continued expansion through 2029

Looking ahead, the study projects advertising's impact on the US economy will increase to $12.7 trillion in sales activity by 2029, supporting 32.1 million American jobs. This represents steady growth from the 2024 baseline despite economic headwinds including inflation concerns and geopolitical tensions.

From 2024 onward, both advertising spending and US GDP growth are expected to follow more typical trajectories after the disruption caused by the COVID-19 pandemic. The analysis indicates that advertising spending contracted by 11.3% during 2020 but was followed by a two-year surge as the economy reestablished equilibrium.

Consumer spending accounted for about 67.9% of US gross domestic product in 2024. Relative to other large advanced economies, the United States has higher dependence on personal consumption. The consumer sector's share of GDP is expected to increase to 69.1% by 2029, implying continued reliance on advertising to drive sales activity.

The research demonstrates advertising's vital role as an economic catalyst across all sectors and regions. As digital platforms continue evolving and artificial intelligence technologies reshape creative production and targeting capabilities, advertising's economic impact is positioned for sustained growth throughout the remainder of the decade.

Industry leaders respond to economic impact findings

Industry leaders shared reactions emphasizing advertising's broad economic benefits beyond individual company impacts. Bob Liodice, CEO of the Association of National Advertisers, stated that advertising has been "a driving force behind our nation's progress, prosperity, and growth for more than a century."

Justin Thomas-Copeland, CEO of 4As, highlighted advertising agencies' role in fueling innovation and economic growth. "By helping global businesses connect with consumers, drive demand and build brands, America's advertising agencies play a critical role in fueling innovation and keeping our economy moving," he said.

Steve Pacheco, CEO of American Advertising Federation, emphasized advertising's importance across markets of all sizes. "What is remarkable about the study is how it demonstrates advertising's importance, not just in major markets, but in every state and every market in the country," he noted.

Curtis LeGeyt, President and CEO of NAB, connected advertising to local media sustainability. "Advertising fuels local economies, supports good jobs and sustains the trusted journalism and emergency information that Americans rely on," he observed.

Timeline

• January 2025: S&P Global Market Intelligence conducts comprehensive study quantifying advertising's economic impact on US economy
• August 5, 2025: The Advertising Coalition releases study findings showing advertising supports $10.4 trillion in economic activity
• 2024: Companies spend $491.1 billion on advertising, directly stimulating $3.5 trillion in sales activity
• 2024: Digital advertising revenue reaches $258.6 billion, growing 14.9% year-over-year
• 2024: European digital advertising achieves €118.9 billion with 16% growth despite economic challenges
• 2024: Programmatic advertising shows 72% growth as marketers increase investment
• 2029 (projected): Advertising impact expected to reach $12.7 trillion supporting 32.1 million US jobs

Key terms explained

Economic multiplier effects: The phenomenon where initial advertising spending creates cascading impacts throughout the economy. According to the study, every dollar spent on advertising generates approximately $20 in follow-on sales activity through direct purchases, supplier relationships, and employee spending in local communities.

Supply chain activity: The interconnected network of businesses that provide goods and services to companies engaged in advertising-driven sales. The research found that advertising stimulates $2.8 trillion in indirect sales through these supplier relationships, demonstrating how marketing investments ripple through multiple layers of economic activity.

Value-added contribution: An economic measurement that calculates the difference between revenue received for products or services and non-labor input costs. This metric provides more accurate assessment of advertising's economic impact by eliminating double counting that occurs when analyzing raw sales figures across supply chains.

Digital advertising: Online marketing activities that now represent approximately 65% of total advertising spending in the United States. This sector has grown to account for up to 1.1% of US GDP, with major platforms like Google, Meta, and Amazon driving significant portions of this digital transformation.

Labor income: The total compensation paid to workers, including wages, salaries, and proprietor income across all jobs and industries. Advertising supported $2.7 trillion in labor income during 2024, representing 21.8% of total wage income in the United States with average salaries 26% above national averages.

Gross domestic product (GDP): The broadest measure of economic health representing the sum of value added across the entire US economy. The study found that advertising activity supported $5.7 trillion or 19.8% of the $28.7 trillion in US GDP during 2024.

Consumer spending: Personal consumption expenditures that accounted for 67.9% of US gross domestic product in 2024. This high dependence on consumer activity, compared to other advanced economies, makes advertising's role in stimulating demand particularly critical for overall economic performance.

Programmatic advertising: Automated digital advertising buying that uses algorithms and real-time bidding to purchase ad inventory. Recent data shows 72% of marketers plan to increase programmatic investment in 2025, with connected television emerging as a dominant force in media budget allocation.

Connected television (CTV): Streaming video services delivered through internet-connected devices that have become major advertising platforms. Industry projections indicate CTV's share of media budgets will double from 14% in 2023 to 28% in 2025 as advertisers shift from traditional linear television.

Artificial intelligence: Machine learning technologies increasingly used in advertising for creative development, audience targeting, and campaign optimization. Industry research indicates that 86% of video advertising buyers use AI tools, with generative AI expected to account for 40% of all advertisements by 2026.

Summary

Who: S&P Global Market Intelligence conducted the study for The Advertising Coalition, examining impacts on 158.1 million US workers across all industries and regions.

What: Comprehensive economic impact analysis quantifying advertising's contribution to sales activity, employment, GDP, labor income, and government revenues across the US economy.

When: Study data covers 2024 economic activity, released August 5, 2025, with projections extending through 2029.

Where: Analysis encompasses all 50 US states, Washington DC, and 435 congressional districts, revealing advertising's nationwide economic impact.

Why: Research demonstrates advertising's role as economic catalyst, supporting nearly one in five American jobs while generating over 20% of total US economic output through multiplier effects across supply chains and communities.