Advertising Investment Could Generate €6 for Every €1 Spent

New research reveals that investment in advertising can yield significant economic benefits, with every €1 spent generating an impressive €6 in economic value for the state. The findings are detailed in a report commissioned by the **Irish Advertising and Communications Professionals (IAPI)** and prepared by **Jim Power Economics**. The research indicates that approximately **€1.6 billion** was invested in advertising in **2024**, representing only **0.35% of Ireland’s GDP**, one of the lowest rates in the European Union, where the average investment stands at **0.59% of GDP**.

Potential for Economic Expansion

The report suggests that if Ireland were to align its advertising investment with the EU average of **0.59% of GDP**, it could significantly expand its market and generate substantial economic returns. These returns are expected to stem from productivity gains, growth in exports, enhanced brand equity, and increased innovation. The advertising and communications sector is highlighted as a vital strategic partner for both businesses and the government, contributing to revenue growth, public opinion shaping, and effective public sector communication.

A notable emphasis of the report is the role of artificial intelligence (AI) within the industry. As many firms, including advertising agencies, focus on AI advancements, the report asserts that the sector is positioned at the forefront of these developments. It can play a crucial part in addressing societal challenges, combating misinformation, and enhancing online trust and safety. The industry is also identified as essential in ensuring responsible use of AI tools, particularly as the Irish Government prepares to launch its new **Digital and AI Strategy**.

Challenges of Public Investment

The report points out that public spending on information campaigns in Ireland is currently lower than international benchmarks. This underinvestment limits the potential impact of advertising in shaping public opinion on crucial issues, such as investment in national infrastructure.

At the report’s launch, IAPI CEO **Siobhán Masterson** remarked, “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**, echoed these sentiments, stating that the advertising industry is a proven accelerator of economic growth and social cohesion. She emphasized that “underinvestment is a significant constraint” and called for recognition, reinvestment, and a supportive policy environment to unlock the industry’s full potential.

Jones further noted that creativity is the defining differentiator within the sector. Citing international evidence from countries such as the **United Kingdom**, **New Zealand**, and the **Netherlands**, she explained that nations prioritizing world-class creative industries tend to achieve stronger brand performance, higher productivity, and greater export capability. With the talent and capability present in Ireland, the country needs an operational environment that nurtures and supports creativity in order to meet these benchmarks.

The report ultimately paints a picture of a robust advertising sector that, if adequately supported, could drive significant economic growth and societal benefits in Ireland.