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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1960s - 1970s: Increased Research in Artificial Intelligence (AI)

During the cold war the U.S. tried to ensure that it would stay ahead of the Soviet Union in technological advancements. Therefore in 1963 the Defense Advanced Research Projects Agency (DARPA) granted the Massachusetts Institute of Technology (MIT) U.S.$ 2.2 million for research in machine-aided cognition (artificial intelligence). The major effect of the project was an increase in the pace of AI research and a continuation of funding.

In the 1960s and 1970s a multitude of AI programs were developed, most notably SHRDLU. Headed by Marvin Minsky the MIT's research team showed, that when confined to a small subject matter, computer programs could solve spatial and logic problems. Other progresses in the field of AI at the time were: the proposal of new theories about machine vision by David Marr, Marvin Minsky's frame theory, the PROLOGUE language (1972) and the development of expert systems.

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Technological measures

As laid down in the proposed EU Directive on copyright and related rights in the information society technological measures mean "... any technology, device, or component that, in the normal course of its operations, is designed to prevent or inhibit the infringement of any copyright..." The U.S. DMCA (Digital Millennium Copyright Act) divides technological measures in two categories: 1) measures that prevent unauthorized access to a copyrighted work, and 2) measures that prevent unauthorized copying of a copyrighted work. Also the making or selling of devices or services that can be used to circumvent either category of technological measures is prohibited under certain circumstances in the DMCA. Furthermore the 1996 WIPO Copyright Treaty states that the "... contracting parties shall provide adequate legal protection and effective legal remedies against the circumvention of effective technological measures that are used by authors..."

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