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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History: European Tradition

Only in Roman times the first rights referring to artistic works appeared. Regulations resembling a lasting exclusive right to copy did not occur until the 17th century. Before copyright was a private arrangement between guilds able to reproduce copies in commercial quantities.

In France and Western European countries "droits d'auteur" or author's rights is the core of what in the Anglo-American tradition is called copyright. Such rights are rooted in the republican revolution of the late 18th century, and the Rights of Man movement. Today in the European system the creator is front and center; later exploiters are only secondary players.

France

During the 18th century France gradually lost the ability to restrict intellectual property. Before the Revolution, all books, printers and booksellers had to have a royal stamp of approval, called a "privilege". In return for their lucrative monopoly, the French guild of printers and booksellers helped the police to suppress anything that upset royal sensibilities or ran contrary to their interests. Still there were also a whole lot of underground printers who flooded the country with pirated, pornographic and seditious literature. And thousands of writers, most at the edge of starvation.

In 1777 the King threatened the monopoly by reducing the duration of publisher's privileges to the lifetime of the authors. Accordingly a writer's work would go into the public domain after his death and could be printed by anyone. The booksellers fought back by argumenting that, no authority could take their property from them and give it to someone else. Seven months later, in August 1789, the revolutionary government ended the privilege system and from that time on anyone could print anything. Early in 1790 Marie-Jean-Antoine-Nicolas de Caritat, Marquis de Condorcet proposed giving authors power over their own work lasting until ten years after their deaths. The proposal - the basis for France's first modern copyright law - passed in 1793.

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Economic rights

The economic rights (besides moral rights and in some cases also neighboring rights) granted to the owners of copyright usually include 1) copying or reproducing a work, 2) performing a work in public, 3) making a sound recording of a work, 4) making a motion picture of a work, 5) broadcasting a work, 6) translating a work and 7) adapting a work. Under certain national laws some of these rights are not exclusive rights of authorization but in specific cases, merely rights to remuneration.

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