When broken down, the analysis showed that Puerto Rico’s 292 ad agencies generate $468 million in economic activity. (Credit: Peshkova | Dreamstime.com)
Puerto Rico’s ad industry generates nearly $1.6 billion in economic activity, which in turn pumps $93.1 million into government coffers, according to industry research commissioned from research firm Estudios. Technics.
The sector generates 16,533 direct, indirect and induced jobs, representing a combined payroll of $500 million, according to the study commissioned by the Puerto Rico Advertising Association.
The research also concluded that for every dollar invested in advertising, $2.12 is generated in economic activity. That said, the industry is estimated to have generated $93.1 million in revenue for government coffers.
“By reviewing all of this information, we developed an understanding of the industry definition and estimated all direct and indirect impacts, including expanding the sector definition to include multiple economic activities,” Graham said. Castillo, from Estudios Tecnicos.
The study shows that the sector includes advertising agencies, creative industries that provide services to agencies, as well as traditional and digital advertising.
When broken down, the analysis showed that Puerto Rico’s 292 advertising agencies generate $468 million in economic activity, representing 30% of the industry. The agencies generate 3,480 direct, indirect and induced jobs, with average salaries of $44,217.
“Employees in the advertising industry are paid more, on average, compared to the average annual salary of all industries,” Castillo confirmed.
Meanwhile, Castillo said the sector has great potential for growth, not only locally but off the island “for people who are interested not only in what we communicate from Puerto Rico, but also in the products and services from Puerto Rico”.
The last time the Association commissioned a study to measure the sector’s impact on the island’s economy was in 2014, so the most recent analysis used an entirely different methodology to include new players and technologies. .
“The reality is that Puerto Rico is a different place now, and different from what we see in other markets,” said Alexandra Caraballo, executive at advertising agency Lopito, Ileana & Howie and new president of Puerto Rico. Rico Advertising Association.
“We have an above-average elderly population, which leaves room for different types of media consumption. Television, for example, is the proven sales channel for advertising,” she said. “But as far as digital channels are concerned, they will continue to develop because it is a medium that is adopted by all targets.