The Advertising Industry
The advertising industry is dominated by three huge advertising networks, which offer their services throughout the world. Gross income of the three leading agencies is twice as much, as the one of places four to ten.
Table: World's Top 10 Advertising Organizations 1999
(figures in millions of U.S. dollars)
Rank 1999
| Advertising Organization
| Headquarters
| World-Wide Gross Income 1999
| 1
| Omnicom
| New York, USA
| $ 5,743.4
| 2
| Interpublic Group of Cos.
| New York, USA
| $ 5,079.3
| 3
| WPP Group
| London, UK
| $ 4,819.3
| 4
| Havas Advertising
| Levallois-Perret, France
| $ 2,385.1
| 5
| Dentsu
| Tokyo, Japan
| $ 2,106.8
| 6
| B Com3 Group
| Chicago, USA
| $ 1,933.8
| 7
| Young & Rubicam Inc.
| New York, USA
| $ 1,870.1
| 8
| Grey Advertising
| New York, USA
| $ 1,577.9
| 9
| True North
| Chicago, USA
| $ 1,489.2
| 10
| Publicis SA
| Paris, France
| $ 1,434.6
| |
Table: Top 10 Global Marketers 1998
(figures in millions of U.S. dollars)
Rank 1998
| Advertiser
| Headquarters
| World-Wide Media Spending 1998
| 1
| Procter & Gamble Co.
| Cincinnati (US)
| $ 4,747.6
| 2
| Unilever
| Rotterdam (NL)/London (UK)
| $ 3,428.5
| 3
| General Motors Corp.
| Detroit (US)
| $ 3,193.5
| 4
| Ford Motor Co.
| Darborn (US)
| $ 2,229.5
| 5
| Philip Morris Cos.
| New York
| $ 1,980.3
| 6
| Daimler Chrysler
| Stuttgart (GER)/Auburn Hills (US
| $ 1,922.2
| 7
| Nestle
| Vevey (SUI)
| $ 1,833.0
| 8
| Toyota Motor Corp.
| Toyota City (JP)
| $ 1,692.4
| 9
| Sony Corp.
| Tokyo (JP)
| $ 1,337.7
| 10
| Coca-Cola Co.
| Atlanta (US)
| $ 1,327.3
| |
On the other hand the three biggest advertisers only spend about US$ 2 millions less than places four to ten together. Whereas money spent on advertising in traditional media comes from very diverse categories, companies offering computer hard- and software, peripherals or Internet services mainly pay for on-line advertisements.
Table: Top 10 Internet Advertisers 1998
(figures in millions of U.S. dollars)
Rank 1998
| Advertiser
| Internet Spending 1998
| 1998 - 1997 % Change
| 1
| Microsoft Corp.
| $ 34.9
| 9.4
| 2
| IBM Corp.
| $ 28.5
| 58.6
| 3
| Compaq Computer Corp.
| $ 16.2
| 169.8
| 4
| General Motors Corp.
| $ 12.7
| 84.8
| 5
| Excite
| $ 12.4
| 1.5
| 6
| Infoseek Corp.
| $ 9.3
| 22.3
| 7
| AT&T Corp.
| $ 9.3
| 43.5
| 8
| Ford Motor Co.
| $ 8.6
| 46.7
| 9
| Hewlett-Packard Co.
| $ 8.1
| 102.9
| 10
| Barnes & Noble
| $ 7.6
| 280.2
| |
Source: Advertising Age
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Automation
Automation is concerned with the application of machines to tasks once performed by humans or, increasingly, to tasks that would otherwise be impossible. Although the term mechanization is often used to refer to the simple replacement of human labor by machines,  automation generally implies the integration of machines into a self-governing system. Automation has revolutionized those areas in which it has been introduced, and there is scarcely an aspect of modern life that has been unaffected by it. Nearly all industrial installations of automation, and in particular robotics, involve a replacement of human labor by an automated system. Therefore, one of the direct effects of automation in factory operations is the dislocation of human labor from the workplace. The long-term effects of automation on employment and unemployment rates are debatable. Most studies in this area have been controversial and inconclusive. As of the early 1990s, there were fewer than 100,000 robots installed in American factories, compared with a total work force of more than 100 million persons, about 20 million of whom work in factories.
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