NEW YORK The advertising industry will contribute about $151 billion and 679,000 jobs to the New York City economy, mostly due to increased sales generated by ads, according to a study financed by the Advertising Tax Coalition, an organization of nine national media and ad trade associations.
The study, conducted by Michael J. Raimondi of Global Insight, reached beyond the direct impact of advertising agency and media supply jobs to the retail and service jobs generated by sales increased by advertising.
The projected direct impact of the advertising industry, about $80 billion, is higher than the $39 billion contributed by the travel and tourism industry and $42 billion contributed by the fashion industry, the study said. Real estate, however, provided a far larger impact, contributing $121 billion to the economy directly, according to the study.
"Advertising stimulates additional purchases by providing important and useful information to a broad range of purchasers in households," Dr. Lawrence R. Klein, director of the study, said in a statement. "The dollar figures underscore the vital service and economic role our industry plays in our daily lives."
Sales generated by ad spending will contribute about $68 billion to the New York economy and about 365,000 jobs, while suppliers will contribute about $33 billion and 145,000 jobs, the study stated.
New York City businesses will spend about $12 billion on advertising in 2004, the study said.