Ever craved fast food after seeing an enticing ad on a bus or at a train station? Such powerful advertisements increase consumption of unhealthy foods and drinks, contributing to obesity, which costs Australia’s healthcare system and society an estimated A$39 billion each year.
New economic modelling reported in Public Health Nutrition by researchers at Deakin Health Economics and Cancer Council Western Australia investigated the costs and benefits of removing unhealthy food advertising from WA’s public transport assets.
Health economist and lead researcher Associate Professor Jaithri Ananthapavan said, ‘To make a compelling case for governments to take action, not only do they need to know the health and associated economic benefits, they also want to know the costs of implementation. This is particularly important when we are asking transport departments to invest in a policy that will deliver health benefits.’
To evaluate the policy’s effectiveness, the researchers analysed a similar policy restricting ads on Transport for London assets, adapting the evidence to the WA context. They found that over a 30-year period, the implementation of this public health intervention was excellent value for money, with a benefit-cost ratio of 50, meaning every $1 spent would produce $50 in benefits.
‘Implementing this policy in WA would be highly cost-effective. The healthcare savings alone justify its implementation. Plus, restricting ads on transport assets offers a cost-efficient way for state governments to advance the National Obesity and Preventive Health Strategies,’ said Ananthapavan.
The tricky part for government, however, is understanding who bears the implementation cost. If transport departments fear losing advertising revenue and aren’t incentivised by the wider societal benefits, then the policy’s execution may falter.
‘But the concerns of London’s transport department didn’t transpire,’ Ananthapavan explained. ‘New advertisers stepped in to fill the income gap. So, if implemented, this policy is likely to produce high-value public health benefits that negate any losses borne by transport.’
The research also found that delaying implementation is costly. If governments wait for advertising contracts to expire, the real benefits will be much lower than if they implement the policy sooner.
‘We need a national response, so advertisers have similar regulations across the country. Obesity prevention affects all facets of our lives, so all of government needs to work together to have an impact.’
South Australia implemented restrictions on advertising unhealthy food and drink on buses and trains in 2025. A full evaluation of South Australia’s current policy would help policymakers in other jurisdictions understand the potential return on investment and strengthen the nation’s campaign to prevent obesity.
Read the paper titled: Potential cost-effectiveness of outdoor unhealthy food and drink advertising restrictions in Western Australia
Read more about Associate Professor Jaithri Ananthapavan’s research.
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