The majority of the studies dedicated to the role of intangible advertisement investments on economic growth demonstrate that advertising helps generate more than considerable profit in sales and economic activity represents 20% of the total economic activity.
Existing literature on this topic proves that it is impossible to to measure the direct impact of advertising , as a specific investment, on economic growth. Therefore for assesment of the impact of advertising on key variables that favour economic growth and indirect method is used. Involving these key variable the impact of advertising appears to be measurable.
The four variables are the following ones:
- The funding of a dynamic economic activity, especially the role of advertising in media financinг
- Competition between the different economic actors that is stimulated by advertising under several aspects: vertical competition (between suppliers and distributors), and horizontal competition (capturing and safeguarding market shares).
- Household consumption: advertising concentrates on high growth – and high value added products.
- Innovation: the highly innovative economic industries are those where advertising pressure is extremely high.
Application of such models has revealed that advertising investments considerably improve the economic efficiency of the tangible investments they generate.
