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Yahoo
03-03-2025
- Business
- Yahoo
A tax on digital advertising will hurt Rhode Island small businesses and consumers
Rhode Island lawmakers have a choice when it comes to a proposed tax on digital advertising, which opponents say could hurt small businesses and consumers. (Photo by Janine L. Weisman/Rhode Island Current) As a former South Dakota State senator, past president of the National Conference of State Legislators, and a Certified Public Accountant, I've seen firsthand how tax policies can either help or hurt a state's economy. The digital advertising tax that is being pushed in Rhode Island Gov. Dan McKee's proposed fiscal 2026 budget is a clear case of the latter — a misguided policy that threatens to harm every small business and consumer in the Ocean State. Advertising isn't just about flashy billboards or catchy jingles; it's a cornerstone of economic activity. An independent study commissioned by the Association of National Advertisers shows that advertising expenditures generate a whopping $22.4 billion in economic activity in Rhode Island alone, supporting over 106,000 jobs. That's 15.5% of all jobs in the state. Taxing digital ads opened Maryland up to litigation. McKee wants Rhode Island to do it anyway. When you tax digital advertising, you're not just targeting faceless tech giants, you're hitting the local coffee shop trying to reach new customers, the family-run bookstore promoting a weekend sale, and the startup striving to make its mark. You might think you're hitting the big guy but you're really just stepping on the little guy. As I noted in my testimony in front of the Senate Finance Committee, because of this tax, small businesses would face tough choices. That is not the fate that legislators should be rooting for when it comes to Rhode Island's small business community. Proponents of this tax argue it's aimed at billion-dollar corporations, but history tells a different story. In France, a similar digital advertising tax ended up passing 55% percent of its burden onto consumers, according to a Deloitte study. Beyond the straight economic impact, this tax is a double whammy for businesses. Rhode Island companies already pay income tax, now they'd be taxed again just for advertising their products and services. This kind of double taxation doesn't just strain businesses —- it discourages them from growing, investing, and hiring. For a state in which business owners already face significant headwinds, this tax could be the final straw for many entrepreneurs. You might think you're hitting the big guy but you're really just stepping on the little guy. Let's not forget the legal minefield this tax creates. Maryland's attempt to implement a similar tax has been tied up in costly legal battles, draining taxpayer dollars with no end in sight. The proposed tax in Rhode Island could face similar challenges, potentially violating the First Amendment, the Dormant Commerce Clause, and federal laws like the Internet Tax Freedom Act. If the courts strike it down, Rhode Island could be on the hook to refund every cent collected, plus interest. With an already challenging fiscal situation on the horizon, that's a gamble the state can't afford to take. Digital advertising has been a game-changer for small businesses, leveling the playing field and allowing them to reach audiences far beyond their local communities. Over the past decade, it's fueled growth and innovation, helping more than 100,000 small businesses in Rhode Island thrive. Taxing this critical tool doesn't just stifle growth —- it sends a message that Rhode Island isn't open for business. A tax on digital advertising isn't just bad policy, it's a step backward. Rhode Island lawmakers have a choice: they can pursue short-sighted revenue grabs that hurt the very people they're supposed to serve, or they can focus on fostering a business-friendly environment that encourages growth, innovation, and prosperity. I urge lawmakers to reject this harmful tax and instead focus on policies that build a stronger, more competitive state. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
25-02-2025
- Business
- Yahoo
2025 SUPER BOWL ADS FUMBLE AGAIN: How Ignoring Women Cost Brands ROI For the 12th Year
ABX Advertising Benchmark Index™ and ANA SeeHer™, partners and co-developers of GEM®, (the Gender Equality Measure), today announced that Super Bowl 2025 ads were, once again, less effective than regular brand ads airing in the prior 12-month period. Amazingly, this trend has held true for 12 years (except for 2020 during Covid). Could the fact that these ads had little appeal to women be a reason for these declining scores? Super Bowl Ads vs Same Brand Ads Prior 12 Months Super Bowl Average ABX Index Scores by KPI GEM vs ABX Reputation Index New York, Feb. 25, 2025 (GLOBE NEWSWIRE) -- – ABX Advertising Benchmark Index™ and ANA SeeHer™, partners and co-developers of GEM®, (the Gender Equality Measure), today announced that Super Bowl 2025 ads were, once again, less effective than regular brand ads airing in the prior 12-month period. Amazingly, this trend has held true for 12 years (except for 2020 during Covid). Could the fact that these ads had little appeal to women be a reason for these declining scores? (See chart below) ABX Advertising Benchmark Index™ is a leading advertising effectiveness company that has measured half-a-million ads, across all media types, globally to date. SeeHer, launched by the Association of National Advertisers (ANA) in 2016, is the leading global movement to eliminate gender bias in advertising, marketing, media, and entertainment. GEM® scores are highly correlated to improving brand health and increasing sales. It is considered the 'gold standard' for measuring gender bias worldwide. This chart shows that regular ads have outperformed Super Bowl ads for the same brandsover the last 12 months, for the past 12 years. Only 11% of Super Bowl 2025 ads were above the ABX Index™ TV norm of 108.5, 37% were at norm, and 52% were below norm. Why are so many Super Bowl ads, at $8 million a pop, missing the mark? The ABX KPI scores below provide some insights on where these ads go wrong. While Super Bowl ads are more Likeable and Re-watchable than regular brand ads, they fall short in Brand Reputation, Purchase Intent, and other Calls-to-Action. If ads don't stimulate Action or increase Reputation, are they worth $8 million to air? Here are the differences between Super Bowl and regular ads for the same brands for the prior 12-month period: Super Bowl ads usually score high in Likeability and Watchability, but not so much inBrand Reputation, Purchase Intent and Calls-to-Action that drive Brand: Clear which brand is being advertisedBrand Reputation: Feel better, worse, no different about the brand after being exposed to the adPurchase Intent: As a result of seeing this ad, intend to purchaseCalls to Action: As a result of seeing this ad, any of six actions are takenLikeability: Like this ad based on a 10-point scaleSee Again: I would be willing to see this ad againSuper Bowl ads Aren't Resonating with Women Watching the Game Women have always been football fans. However, advertising has not acknowledged female fans, nor appealed to them, which is likely a contributing factor of low Super Bowl ad scores. Women's economic impact this year extended beyond viewership. ABX data showed that 40% of each female viewer spent an average of $30 or more on Super Bowl-related purchases such as food, party supplies, and merchandise. Beyond game day, women wield $31.5 trillion in purchasing power and influence 85% of consumer decisions. While viewership from female fans should emphasize the growing importance of this demographic, women (female characters) are often absent, overshadowed, or inauthentically portrayed in ads. Female Representation in Ads Fall Short For this part of the analysis, we leveraged nine years of Super Bowl creative testing results and trends from the ABX Index and GEM® metric. In 2025, women were present in 81% of Super Bowl ads, a drop of 10 points from 2024. Only one ad had a solo female character. Thirteen percent featured only male characters, all of which were at or below the ABX TV norm. Eighty percent of ads featured both male and female characters. While women were present in Super Bowl ads, they didn't see themselves represented accurately. The Gender Equality Measure (GEM®) for female characters was rated lower by female respondents than by male respondents. Missing the Mark with Female Fans is a Missed Opportunity Not targeting female fans correlates with weaker purchase intent among women. For Super Bowl ads, the ABX Purchase Intent Index was only 87 for women compared to 124 for men. Improving the portrayal of women is highly correlated with improved Reputation and Call-to-Action Scores (includes website visits, search, purchases, recommendations). As explained below, as the GEM score increases, so do Reputation and CTAs. The chart above shows that for every GEM® point score improvement, Brand Reputation improves by 1.7 points, for a 70% increase. The same is true with Calls-To-Action. As GEM® increases, CTAs improve by 0.5 points, or 25%. The measure of overall effectiveness, the ABX Index, improves 0.4, or 20%, for every GEM® point of improvement for brands whose ads accurately portrayed women vs. those that did not. Conclusion Super Bowl advertisers continue to miss the mark on creative, which significantly reduces the impact of their substantial investment. And despite the increasing interest and viewership by women, Super Bowl ads fail to resonate with them. For Super Bowl and non-Super Bowl ads, brands can benefit by prioritizing inclusivity and authenticity, leveraging best practices to optimize their investment and connect with one of the most influential consumer segments in the market …. WOMEN! Contributors Gary Getto, President & Co-Founder, ABX Advertising Benchmark IndexGary@ Yatisha Forde, Sr. Director, Insights & Thought Leadership, SeeHeryforde@ Press Inquiries:Angela Jeffrey, VP Brand Management, ABXangie@ Contact us HereAbout GEM® GEM®, spearheaded by SeeHer and ABX Advertising Benchmark Index, is a globally renowned ESOMAR (European Society for Opinion and Marketing Research) award-winning effectiveness measurement methodology. GEM® evaluates gender portrayals in advertising and content and is highly correlated to improving brand health, as well as increasing sales. Advertisements delivering high GEM® scores have yielded double-digit increases in brand reputation, brand choice, purchase intent, calls to action, and brand loyalty. Moreover, ads with elevated GEM® scores have been correlated with driving significant sales lifts across genders, races/ethnicities, and generations, up to 10X higher than ads with low GEM® scores. About Advertising Benchmark Index ABX Advertising Benchmark Index ( is an ANA SeeHer partner and co-developer of GEM®. It is a techno-research company focused on driving ROAS & ROI through its Global Integrated Single Solution. Marketers, through the ABX Global Multimedia Platform, can evaluate the effectiveness of all their creative across all media types and channels, and against their competitors, in 75+ countries. ABX has evaluated half-a-million live, in-market ads through its syndicated system, and offers a wide variety of standard and customized solutions. About SeeHer SeeHer is the leading global movement to eliminate gender bias in marketing, media, and entertainment. Launched in 2016 by the Association of National Advertisers (ANA), SeeHer's coalition of leaders is committed to setting the gender equality agenda for the industry and driving growth for their businesses. To help its members benchmark success and become catalysts for change, SeeHer spearheaded the development of the Gender Equality Measure (GEM®), the first research methodology that quantifies gender bias in ads and programming. A winner of the prestigious ESOMAR Research Effectiveness Award, GEM® is the global measurement standard, proving that content accurately portraying women and girls dramatically increases purchase intent and brand reputation. SeeHer's suite of training and resources, including GEM®, enables marketers to prioritize best practices as part of an always-on approach to driving growth. The movement includes the following vertical expertise: SeeHer in Sports, SeeHer Entertainment, SeeHer Health, and the SeeHer Media Task Force. Visit to join the movement and follow SeeHer on LinkedIn and Instagram. Sources: ABX Advertising Benchmark Index, SeeHer, (Gender Equality Measure) 2017-2025 Super Bowl Ad Analysis Attachments Super Bowl Ads vs Same Brand Ads Prior 12 Months Super Bowl Average ABX Index Scores by KPI GEM vs ABX Reputation Index CONTACT: Angela Jeffrey, VP Brand Management, ABX angie@ in to access your portfolio
