Advertising and marketing pays â for the UKâs culture, media and sport

The value of the data-driven economy to the UK’s media-hungry consumers has been highlighted by new research by Deloitte published this week (28 January). According to its findings, £10bn of advertising, marketing and sponsorship expenditure subsidises the true value of online, social, print, TV and radio accessed by UK consumers every year.

The Advertising Association estimates that the gap between what people are willing to pay and the value of the advertising-funded media they receive is almost £5 billion, equal to £187 per household per year. Household spend on recreation and culture is already the third highest weekly outgoing - ahead of spend on food and non-alcohol drinks, household goods and services and clothing and footwear.

The analysis shows that the advertising and marketing spend subsidy puts a host of media, entertainment and services within the hands of millions of consumers who would otherwise unable or unwilling to access them if they were charged for at their true cost.

The impact of data-driven marketing on online media and services is particularly pronounced. Many search engines, social media platforms and email services that we all take for granted would simply be unable to function without one-to-one marketing. Deloitte’s analysis puts the annual value of these subsidised digital media to the UK consumer at £4.3bn alone.

The data-driven economy is essential to enriching the lives of the UK’s citizens through making entertainment, culture and personal communication accessible to all. Putting a monetary figure to the benefits UK consumers receive via one-to-one marketing and advertising shows businesses, politicians and legislators the real value exchange to consumers of making their data available to businesses.

Click here to read Advertising pays 3: The value of advertising to the UK’s culture, media and sport