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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Pressures and Attacks against Independent Content Providers: Serbia

The independent Belgrade based FM radio-station B2-92, which from December 1996 on also broadcasts over the Internet, repeatedly has been the target of suppression and attacks by the Serbian government.

B2-92 offices have been raided on numerous occasions and members of staff have been repeatedly harassed or arrested. In March 1999 the transmitter of radio B2-92 was confiscated yet again by the Serbian authorities and editor-in-chief, Veran Matic, was taken and held in custody at a police station. Ten days after the confiscation of B2-92's transmitter, Serbian police entered and sealed their offices. All members of staff were sent home and a new General Manager was appointed by Serbian officials. Although by closing B2-92, the Serbian regime may have succeeded in softening the voice of the independent content provider, with the distributive nature of the Internet and the international help of media activists, the regime will have little chance of silencing the entire flood of independent content coming out of former Yugoslavia.

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1900 - 2000 A.D.

1904
First broadcast talk

1918
Invention of the short-wave radio

1929
Invention of television in Germany and Russia

1941
Invention of microwave transmission

1946
Long-distance coaxial cable systems and mobile telephone services are introduced in the USA.

1957
Sputnik, the first satellite, is launched by the USSR
First data transmissions over regular phone circuits.

At the beginning of the story of today's global data networks is the story of the development of satellite communication.

In 1955 President Eisenhower announced the USA's intention to launch a satellite. But it in the end it was the Soviet Union, which launched the first satellite in 1957: Sputnik I. After Sputnik's launch it became evident that the Cold War was also a race for leadership in the application of state-of-the-art technology to defense. As the US Department of Defense encouraged the formation of high-tech companies, it laid the ground to Silicon Valley, the hot spot of the world's computer industry.

The same year as the USA launched their first satellite - Explorer I - data was transmitted over regular phone circuits for the first time, thus laying the ground for today's global data networks.

Today's satellites may record weather data, scan the planet with powerful cameras, offer global positioning and monitoring services, and relay high-speed data transmissions. Yet up to now, most satellites are designed for military purposes such as reconnaissance.

1969
ARPAnet online

ARPAnet was the small network of individual computers connected by leased lines that marked the beginning of today's global data networks. An experimental network it mainly served the purpose of testing the feasibility of wide area networks and the possibility of remote computing. It was created for resource sharing between research institutions and not for messaging services like E-mail. Although US military sponsored its research, ARPAnet was not designed for directly martial use but to support military-related research.

In 1969 ARPANET went online and linked the first two computers, one located at the University of California, Los Angeles, the other at the Stanford Research Institute.

Yet ARPAnet did not become widely accepted before it was demonstrated in action to a public of computer experts at the First International Conference on Computers and Communication in Washington, D. C. in 1972.

Before it was decommissioned in 1990, NSFnet, a network of scientific and academic computers funded by the National Science Foundation, and a separate new military network went online in 1986. In 1988 the first private Internet service providers started offering access to NSFnet to a general public. After having become the backbone of the Internet in the USA, in 1995 NSFnet was turned into a consortium of commercial backbone providers. This and the launch of the World Wide Web added to the success of the global data network we call the Net.

In the USA it was already in 1994 that commercial users outnumbered military and academic users.

Despite the rapid growth of the Net, most computers linked to it are still located in the United States.

1971
Invention of E-Mail

1979
Introduction of fiber-optic cable systems

1992
Launch of the World Wide Web

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Virtual Private Networks

Virtual Private Networks provide secured connections to a corporate site over a public network as the Internet. Data transmitted through secure connections are encrypted and therefore have to be encrypted before they can be read.
These networks are called virtual because connections are provided only when you connect to a corporate site; they do not rely on dedicated lines and support mobile use.

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Local Area Network (LAN)

A Local Area Network is an office network, a network restricted to a building area.

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Multiple User Dungeons

MUDs are virtual spaces, usually a kind of adventurous ones, you can log into, enabling you to chat with others, to explore and sometimes to create rooms. Each user takes on the identity of an avatar, a computerized character.

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PGP

A cryptographic software application that was developed by Phil Zimmerman at the Massachusetts Institute of Technology. Pretty Good Privacy (PGP) is a cryptographic product family that enables people to securely exchange messages, and to secure files, disk volumes and network connections with both privacy and strong authentication.

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