Australia’s digital advertising industry contributed $94 million to the national GDP and was responsible for $55.5 billion in social value in terms of consumer benefits in 2021-22, according to a new report.
The Advertising value The report, commissioned by the Interactive Advertising Bureau (IAB) Australia and produced by PwC, found that the digital advertising industry contributes more than 4% of GDP and 3% of total employment in Australia in 2021-2022. It further showed that the ecosystem was responsible for 450,000 jobs, including 24,600 directly.
The social value of digital advertising was a key area in the report’s spotlight. According Advertising value, the average Australian consumer’s perceived value of access to free, ad-supported digital services and content is $544 per year, or $8.8 billion for consumers per year and $1,100 for households . Social value included benefits such as strengthening and connecting communities, providing increased access to job opportunities, education and financial information, and entertainment content.
For example, 78% of consumers indicated that digital content and services made it easier for them to stay in touch with friends and family, with this figure increasing to 81% in regional areas. Ad-supported online content and services were most important to low-income consumers, with those with annual incomes below $50,000 reporting that the value they place on currently free content and services is approximately double that of consumers whose annual income is at least $80,000.
There’s also the thriving second-hand market in the mix: 40% of consumers regularly find or buy second-hand goods online through the circular economy, the report notes.
In addition, Advertising value recognized $10.2 billion in value from consumption on the back of closer preferences, plus $36.5 billion in reduced transaction costs through reduced time and cost. The report also claims that consumers save 25 minutes per transaction by accessing ad-supported digital content and services to research products before purchase, which equates to $15.9 billion in time saved per transaction. year, while there are $71 in savings per month through research or purchase of goods and services. on line.
Overall, the IAB/PwC report showed total annual savings of $14.7 billion for consumers through increased competition among suppliers.
Another notable finding from the report is that 44% of digital advertising comes from SMBs, with SMBs receiving 61% of the industry’s business benefits.
To further illustrate the continued impact of digital advertising, the report highlighted that the industry with the biggest impact on employment and output is the communications industry. However, the industries that invest the most in marketing also see the biggest impacts on employment and output, the report’s authors said. For example, more than 55,000 jobs are supported in the retail and wholesale industries, a sector that includes FMCG, automotive and technology retailers.
“This report shows the tremendous value that digital advertising brings to the community through free ad-supported content and services, news and information freely available, the ability to connect with others, and cost savings. transactions – totaling $55.5 billion,” IAB CEO Gai Le Roy said. “There is no doubt that the main winners are the consumers.”
The report defines the digital advertising ecosystem as comprising media channels ranging from broadcast TV to video-on-demand services, games, news media, podcasts and streaming radio and digital out-of-home . It also includes organizations providing adtech support services and agencies providing planning, purchasing, management, and design services.
The research incorporates modeling of the direct and indirect benefits of the digital advertising ecosystem, as well as an online survey of over 1,000 Australian consumers between August and September 2022 conducted by Pureprofile.