New research into the economic impact of advertising shows that for every €1 invested in advertising, it generates €6 in “economic value” for the state.
Details of the findings are contained in a new report, which was commissioned by Iapi and compiled by Jim Power Economics.
The research found that around €1.6bn was invested in advertising in 2024, representing just 0.35% of GDP, among the lowest in the EU, where the average spend is closer to 0.59% of GDP.
“A shift to the EU average level of advertising investment, 0.59% of GDP, would expand Ireland’s market considerably and generate significant economic returns, driven by productivity gains, export growth, enhanced brand equity and innovation,” the research notes.
The report also highlights that the advertising and communications industry is an essential strategic partner to both business and the State. “From driving revenue growth and brand equity to shaping public opinion, influencing behaviour and enabling public sector communication, the sector plays a profound role in Ireland’s economic and societal wellbeing,” it noted
With AI high on the agendas of many firms, including advertising and marketing agencies, the report notes that the industry is at the vanguard of AI developments and can make a significant contribution to positive societal outcomes by addressing shared challenges, combatting misinformation and enhancing online trust and safety.
The report also identifies the industry as playing an important role in ensuring that AI tools are used responsibly as the Government prepares to launch a new Digital and AI Strategy.
The State too is an important client, the reported noted with public bodies, including government departments and state agencies investing significantly in campaigns on an ongoing basis. However, the report notes that public spending on information campaigns in Ireland is lower than international benchmarks, despite its “potential to help shape public opinion on key priorities such as investment in infrastructure.”
Speaking at the launch of the report, Iapi CEO Siobhán Masterson said: “The findings show an enormous, untapped opportunity for Ireland. Advertising and communications should be viewed as a strategic investment by business and government. With the right supports, Ireland can build a globally influential commercial creative services sector, strengthen our domestic economy and enhance our international competitiveness.”
Geraldine Jones, President of Iapi and Managing Director of Publicis Dublin, added: “Our industry is a proven accelerator of economic growth and social cohesion, but underinvestment is a significant constraint. We have the creative capability, talent and strategic expertise to help businesses in Ireland grow and the State achieve its ambitions. What we need now is recognition, reinvestment and a supportive policy environment.”
According to Jones, creativity is identified as the defining differentiator of the industry. “International evidence from United Kingdom, New Zealand and Netherlands demonstrates that countries that prioritise world class creative industries enjoy stronger brand performance, higher productivity and greater export capability. Ireland has the talent and capability to match these benchmarks and now needs an operating environment that supports it.”
