British media and sport are now reliant on advertising, with the health of these sectors depending on money generated by promotional work.
Research from Deloitte found that people value advertising services at almost £10 billion, highlighting the increasing importance of marketing activity across the UK.
The group identified that, in order to react to the 100 per cent price increase needed to cover the absence of advertising, newspaper sales would drop from 91 million to 20 million every week.
When it came to consumer magazines, a lack of advertising would result in 378 million fewer magazine sales annually, while Deloitte forecasts that it would be difficult to see how the commercial radio sector could survive whatsoever.
Advertising is now present in most sectors and seen on a number of devices, including smartphones and tablets. Due to an increase in the number of web-enabled devices, companies are taking their promotional efforts more serious than ever before.
Nick Stringer, director of regulatory affairs at IAB UK, said: “Advertisers now spend billions of pounds on the internet in the UK every year and, as the Ad Pays 3 report shows, this helps fund content, services and applications, and drives commerce.
“It therefore demonstrates the need, particularly with policymakers negotiating Europe’s data protection reforms, to strike the right balance between providing these innovative services and safeguarding our privacy.”
Andy Duncan, Advertising Association president and CEO of Camelot UK, explained that businesses advertise to big brands, drive sales and battle the competition, rather than doing so in order to fund the media.
Mr Duncan stressed that, when advertising is taken out of the equation, it is evident that the average British household would be unable to cover the consequent shortfall.
Sajid Javid MP, secretary of state for culture, media and sport, also commented on the findings, noting that advertising makes a “significant contribution” to the UK economy.
Posted by The British media and sports sectors are now dependent on advertising revenue, findings show.