• by Karl Greenberg , October 14, 2010

If the ANA Annual Conference in Orlando, packed to the rafters, is any indication, the mood might be turning positive. A study unveiled at the event by IHS Global Insight says advertising can help. The study, done for The Advertising Coalition says that advertising accounts for $5.8 trillion of the $29.6 trillion in U.S. economic output and supports 19.8 million, or 15%, of the nation's 133.4 million jobs. Yearly ad spend for U.S. businesses is $279 billion.

The study also finds that ad impact is consistent across the U.S. region and state populations not withstanding (the firm says ads 19% of economic output in New York State and Arkansas).   According to IHS, from 2002 to 2007 ad spending grew 3-7% annually, and five-year compound annual growth rates were in the 3-5% range.  Two years ago the annual growth of spending dropped 1.8%, followed by a further decline of 6.6% in 2009 and an expected 1.2% drop in 2010.    But the firm forecasts a recovery in spend starting next year, with growth rates in the 3.5-4.5% range until 2014.  This would represent a modest 2.9% compound annual growth rate in ad spending for the period 2009-2014, per IHS Global Insight.