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Tuesday 20.03.2018 | Name days: Made, Irbe

Industry: advertisements contribute the entire economy of the European Union

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUGunta Kūla for BNN

Every euro invested in advertisement has seven times the influence on a country’s GDP. Every one euro brings seven euros in return to the country’s GDP, as emphasized by Latvian Advertising Association, noting that advertisement sector contributes to employment in all of the European Union.

A study ordered by the World Federation of Advertisers mentioned that the advertisement industry has a positive impact on EU economy, labour market and society. The advertisement industry has created nearly six million jobs in the European Union. Latvian Advertising Association’s chairperson Baiba Liepina says: «Advertisements, which form less than 1% of GDP, has a positive effect on employment, creating jobs for 2.6% of employed people in Europe. I believe it is a good effect.»

MC owner and Engure’s oil tycoon award winner Modris Cirulis believes that advertisements definitely contribute to business, because it is an opportunity to tempt potential consumers. «Anyone of us is a consumer, even for me there is influence from advertisements.» The businessman believes it is a separate field that should be filled.

Based on information provided by the Latvian Advertising Association, the labour market’s benefits can be divided into three parts. One of them is people who work in the media. Vita Dreijere, a lecturer for the University of Latvia and journalist, has her own opinion on the advertisement matter. «We cannot only focus on either positive or negative effect advertisement on journalism. One the one hand, advertisements mean revenue with all positive effects additional resources provide, including in the field of autonomy. On the other hand – some of the media are dependent on advertisement money, which leads to different unacceptable journalism practices,» – Dreijere says.

The European advertisement industry urges not to allow advertisement restrictions, because a measure could negatively impact Europe’s digital economy. Restrictions should not be introduced until it is possible to perform assessment of secret costs. Senior customer service manager of the Advertisement Registry Oskars Rumpetera notes: «I agree with LRA that laws for limitation of advertisement volumes can negatively impact the volume income the media and service providers earn.»

Liepina believes that decline of the advertisement industry would impact employment and EU’s economy as a whole. «The advertisement industry can potentially suffer from restrictions, as there could be obstacles in the way of using matters of reaching potential consumers,» – Liepina comments.

«Advertisement restrictions can impact small businessmen, because this way they will likely see a reason to come closer to large businessmen,» – believes oil industry representative Cirulis.

Businessman Kaspars Luters, whose business field is carpentry, notes that social media is the best form of advertisement available today, because it is easy to reach a large audience. «I have tried multiple advertisement opportunities, including printed media. I have understood that social media that the most convenient and affordable form of advertisement. I live in a small city and most of my consumers are there.»

Stephan Loerke, head of the World Federation of Advertisers, notes that the advertisement market has room for democratic freedom. He adds that benefits provided by this industry affect the entirety of society.

Because advertisements fully or partially finance media services, one of the most significant social benefits is that a wide range of communication channels is available to European residents accessible for a low price or for free.

Liepina mentions two significant trends noticed in the advertisement market in 2015: «Advertisement volumes are one a rise in the digital environment and money outflow to foreign internet resources continues. The grown noticed on the internet in 2015 can be explained with development of new digital products and the transmission of traditional solutions to the digital environment.»

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