Looks like the situation is coming to a head. On November 21, the Association of National Advertisers (ANA) posted a press release that announced that the Senate Finance Committee released a draft tax reform bill that includes the dreaded provision — that 50 percent of its advertising expenditures are tax-deductible immediately, while the other 50 percent must be amortized over the following five years. Because as of now, all advertising expenditures are tax deductible.
Truly, advertising is a cost of doing business.
ANA encourages fans of AdLand to reach out to their Senators and to the Finance Committee to tell them of the economic impact this could cause for our industry.
Apparently, our friends across the pond are going through a peculiarly similar situation. But they are doing us one better — instead of encouraging other professionals, the Advertising Association (AA) is presenting its "Advertising Pays" report, the report they did in conjunction with Deloitte, to the UK's House of Commons.
Yes, its 27-page report breaks down how the £16bn pounds that businesses spent on advertising turned into £100bn pounds that contributed to the U.K.'s GDP. That, ladies and gentlemen, is a 1:6 ratio.
How's that for ROI?
The report is impressive, and ties in economic reports, consumer studies, and previous reports on consumer effectiveness, consumer behavior, and GDP impact based on purchasing power. From the AA, to WARC, to IPSOS, the Advertising Pays report conveys a telling message — the UK economy needs a government/AdLand partnership to keep going.
Is that not the message we need to send to Capitol Hill? Let's be our own advocates.
Below is a video the AA (with the creative done by TBWA London) has posted on its website. You can also follow the hashtag #adpays.
Dwayne W. Waite Jr. is partner and principal at JDW: The Charlotte Agency, a marketing and advertising shop in Charlotte, NC. He enjoys consumer behavior, economics, and football.
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