Scotland’s ad industry vital to economy, says shadow business secretary Daniel Johnson

“Your industry is incredibly important. It’s very much the front door to so much of what happens in the economy. If advertising is about businesses telling people about new things they’re doing, it’s an incredibly important barometer to the health of our overall economy,” he said.

His remarks underscore the unique function of advertising, not only in promoting products but also as a gauge of the broader economic landscape. A robust marketing sector often signals a vibrant business environment, making it a vital indicator of Scotland’s economic trajectory.

Johnson openly recognized the challenges facing Scotland, arguing that over the last 25 years, the Scottish Parliament has prioritized social policy at the expense of economic strategy. “We’ve had 25 years of social politics that have harmed economic policy,” he stated, noting the insufficient attention given to growth and investment. “We’ve essentially boxed up economic policy and convinced ourselves it’s off-limits, even though we have significant tools and the capacity to influence the economy right here.” According to Johnson, this disconnect has hindered Scotland, especially when compared with other UK regions that have advanced with bold economic plans.

His remarks come at a time when Scotland is under pressure from increased competition from other areas of the UK. He pointed to Manchester as an example, which has outpaced Scotland in job creation through inward investment. “I’m concerned that places such as Manchester are taking our opportunities,” he said, emphasizing that while Scotland ranks second in the UK for the number of investment projects, it struggles to convert these into jobs. “Last year, Scotland created about half the jobs that Manchester did and only a third of what the west Midlands achieved. That’s the reality of our performance in terms of inward investment.”

At the heart of his strategy for success is the necessity to tackle Scotland’s economic fundamentals. He underscored a troubling financial situation – a £2bn budget deficit and slower growth in income tax revenue compared with the rest of the UK. “We face a £600m shortfall in financial performance. If our income tax grows more slowly than the rest of the UK, we miss out. If we grow faster, we gain a bonus. But this neglect of the economy has had a seriously negative effect,” he said, demonstrating how a sluggish economy directly affects Scotland’s capacity to fund public services.

A key part of Johnson’s vision is to leverage the creative sector as a catalyst for economic growth. He highlighted the interconnectedness of a robust private sector and well-funded public services, a collaboration he sees as vital for Scotland’s future.

“You can’t have a healthy private sector without a healthy public sector,” he said. “We need public services that equip people with the right skills and education to become productive workers. We need a health service that enables quick recovery so individuals can return to work. Without strong public services, a thriving private sector is just a dream.”

However, systemic challenges have hindered progress, including the digital skills gap. Johnson pointed to the downfall of CodeClan, a digital skills academy, as a lost opportunity. “Money got stuck in the pipes,” he remarked, indicating the lack of effective government support for workforce upskilling initiatives. This has led to a significant disparity between the demand for digital skills and the availability of qualified workers. “We produce around 3,000 individuals annually in digital skills, but we need 13,000. That illustrates the scale of the issue, and it’s not merely about numbers. It’s about how we prepare people for future job roles.”

For Johnson, the solution lies in a more cohesive approach to education – one that merges creativity with technology. He imagines a future where “you won’t be able to do a creative job without understanding technology, and you won’t be able to do a technology job without engaging with creativity.” This vision is particularly pertinent for the marketing and advertising industries, where data-driven strategies and digital tools have become essential for successful campaigns. It’s a call for a fresh perspective, where creativity and technology are integrated into the core of Scotland’s economic strategy.

It’s not only about nurturing talent; it’s also about showcasing Scotland’s strengths on the world stage. Johnson argues that Scotland must improve its self-promotion, moving beyond its usual focus on tourism and whisky. “We’ve spent far too long marketing Scotland to the Scots,” he stated. “Now it’s time to present Scotland to the global audience. This goes beyond promoting Scotland as a tourist spot or selling whisky and shortbread. It’s about clearly communicating what we can offer, our expertise in technology, renewable energy and professional services – elements that can establish us as a leader in the economy of the 21st century.”