AAI makes case to Government for ad support

The Association of Advertisers in Ireland (AAI) is asking the Government to introduce an incentive to encourage advertising investment in the media during the Covid-19 crisis. In a letter to the Minister for Public Expenditure and Reform Paschal Donohoe, AAI chief executive Barry Dooley (above) pointed out how advertising is “a proven driver of the economy”.

Dooley said that for every euro spent on advertising generates €5.70 for the Irish economy. Core has forecast that Covid-19 will reduce the market by up to 30 per cent, equating to €316 million. Ad spend per capita in Ireland is now around 20 per cent below the Western European average – when spend drops, it results in negative costs for the economy.

Advertising is also disproportionally important to the economy, Dooley added.

It has the effect of stimulating consumer demand, promoting innovation, driving competition, enabling the digital economy and encouraging growth. As Deloitte’s ‘Advertising: An engine for economic growth’ industry study indicated, a one point increase in advertising spend correlates with a 0.06 per cent rise in GNP per capita.


A tax incentive would have an immediate impact on driving advertising spend and economic growth.  The AAI, on behalf of its members, is requesting a 25 per cent tax credit for advertising investments in 2020 and 2021. Any increase in spend will drive economic growth and will create additional marketing activity in these “extraordinary challenging times”.

Dooley said the Italian Government has introduced a 30 per cent tax relief on advertising during 2020, effective from March 17. Similar proposals have been presented by advertising representative bodies in Spain, France, Belgium, Switzerland, Australia and New Zealand.











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