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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An Economic and therefore Governmental Issue

While the digital divide might bring up the idea that enterprises will be able to sell more and more computers during the next years another truth looks as if there was no hope for a certain percentage of the population to get out of their marginalization, their position of being "have nots".

Studies show that the issue of different colors of skin play a role in this, but more than "racial" issues it is income, age and education that decides about the have and have nots.

There exist ~ 103 million households in the USA.
~6 million do not even have telephone access. Why should they care about computers?

The digital divide cuts the world into centers and peripheries, not into nations, as it runs through the boarder between the North and the South as well as through nations.

http://www.digitaldivide.gov/
http://www.digitaldividenetwork.org/
http://www.pbs.org/digitaldivide/
http://news.cnet.com/news/0-1005-200-344552.html
http://racerelations.about.com/newsissues/racerelations/msubdigdivide.htm
http://www.techweek.com/articles/11-1-99/divide.htm
http://www.ntia.doc.gov/ntiahome/net2/falling.html

The most different institutions with various interests in their background work in that field; not rarely paid by governments, which are interested in inhabitants, connected to the net and economy.
see also: http://www.washington.edu/wto/digital/

Searching information about the digital divide one will find informations saying that it is growing all the time whereas other studies suggest the contrary, like this one
http://news.cnet.com/news/0-1005-200-341054.html

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Virtual cartels, introduction

Among the most striking development of the 1990s has been the emergence of a global commercial media market utilizing new technologies and the global trend toward deregulation.
This global commercial media market is a result of aggressive maneuvering by the dominant firms, new technologies that make global systems cost-efficient, and neoliberal economic policies encouraged by the World Bank, IMF, WTO, and the US government to break down regulatory barriers to a global commercial media and telecommunication market.

A global oligopolistic market that covers the spectrum of media is now crystallizing the very high barriers to entry."

(Robert McChesney, author of "Rich Media, Poor Democracy")

The network structure of information and communication technologies means that even deregulated markets are not "free". The functional logic of global networks only tolerates a small number of large players. Mergers, strategic alliances, partnerships and cooperations are therefore the daily routine of the ICT business. They bypass competition and create "virtual cartels".

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Economic structure; introduction



"Globalization is to no small extent based upon the rise of rapid global communication networks. Some even go so far as to argue that "information has replaced manufacturing as the foundation of the economy". Indeed, global media and communication are in some respects the advancing armies of global capitalism."

(Robert McChesney, author of "Rich Media, Poor Democracy")

"Information flow is your lifeblood."

(Bill Gates, founder of Microsoft)

The usefulness of information and communication technologies increases with the number of people who use them. The more people form part of communication networks, the greater the amount of information that is produced. Microsoft founder Bill Gates dreams of "friction free capitalism", a new stage of capitalism in which perfect information becomes the basis for the perfection of the markets.

But exploitative practices have not disappeared. Instead, they have colonised the digital arena where effective protective regulation is still largely absent.

Following the dynamics of informatised economies, the consumption habits and lifestyles if customers are of great interest. New technologies make it possible to store and combine collected data of an enormous amount of people.

User profiling helps companies understand what potential customers might want. Often enough, such data collecting takes place without the customer's knowledge and amounts to spying.

"Much of the information collection that occurs on the Internet is invisible to the consumer, which raises serious questions of fairness and informed consent."

(David Sobel, Electronic Privacy Information Center)

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The Concept of the Public Sphere

According to social critic and philosopher Jürgen Habermas "public sphere" first of all means "... a domain of our social life in which such a thing as public opinion can be formed. Access to the public sphere is open in principle to all citizens. A portion of the public sphere is constituted in every conversation in which private persons come together to form a public. They are then acting neither as business or professional people conducting their private affairs, nor as legal consociates subject to the legal regulations of a state bureaucracy and obligated to obedience. Citizens act as a public when they deal with matters of general interest without being subject to coercion; thus with the guarantee that they may assemble and unite freely, and express and publicize their opinions freely."

The system of the public sphere is extremely complex, consisting of spatial and communicational publics of different sizes, which can overlap, exclude and cover, but also mutually influence each other. Public sphere is not something that just happens, but also produced through social norms and rules, and channeled via the construction of spaces and the media. In the ideal situation the public sphere is transparent and accessible for all citizens, issues and opinions. For democratic societies the public sphere constitutes an extremely important element within the process of public opinion formation.

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1800 - 1900 A.D.

1801
Invention of the punch card

Invented by Joseph Marie Jacquard, an engineer and architect in Lyon, France, punch cards laid the ground for automatic information processing. For the first time information was stored in binary format on perforated cardboard cards. In 1890 Hermann Hollerith used Joseph-Marie Jacquard's punch card technology to process statistical data collected during the US census in 1890, thus speeding up US census data analysis from eight to three years. Hollerith's application of Jacquard's invention was used for programming computers and data processing until electronic data processing was introduced in the 1960's. - As with writing and calculating, administrative applications account for the beginning of modern automatic data processing.

Paper tapes are a medium similar to Jacquard's punch cards. In 1857 Sir Charles Wheatstone used them for the preparation, storage, and transmission of data for the first time. Through paper tapes telegraph messages could be stored, prepared off-line and sent ten times quicker (up to 400 words per minute). Later similar paper tapes were used for programming computers.

1809
Invention of the electrical telegraph

With Samuel Thomas Soemmering's invention of the electrical telegraph the telegraphic transmission of messages was no longer tied to visibility, as it was the case with smoke and light signals networks. Economical and reliable, the electric telegraph became the state-of-the-art communication system for fast data transmissions, even over long distances.

Click here for an image of Soemmering's electric telegraph.

1861
Invention of the telephone

The telephone was not invented by Alexander Graham Bell, as is widely held, but by Philipp Reiss, a German teacher. When he demonstrated his invention to important German professors in 1861, it was not enthusiastically greeted. Because of this dismissal, he was not given any financial support for further development.

And here Bell comes in: In 1876 he successfully filed a patent for the telephone. Soon afterwards he established the first telephone company.

1866
First functional underwater telegraph cable is laid across the Atlantic

1895
Invention of the wireless telegraph

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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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International Cable Protection Committee (ICPC)

The ICPC aims at reducing the number of incidents of damages to submarine telecommunications cables by hazards.

The Committee also serves as a forum for the exchange of technical and legal information pertaining to submarine cable protection methods and programs and funds projects and programs, which are beneficial for the protection of submarine cables.

Membership is restricted to authorities (governmental administrations or commercial companies) owning or operating submarine telecommunications cables. As of May 1999, 67 members representing 38 nations were members.

http://www.iscpc.org

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The Rocky Horror Picture Show

The story of Frank-N-furter, Brad and Janet ... Don't dream it, be it!

http://www.rockyhorrorpictureshow.com/

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Intelsat

Intelsat, the world's biggest communication satellite services provider, is still mainly owned by governments, but will be privatised during 2001, like Eutelsat. A measure already discussed 1996 at an OECD competition policy roundtable in 1996. Signatory of the Intelsat treaty for the United States of America is Comsat, a private company listed on the New York Stock Exchange. Additionally Comsat is one of the United Kingdom's signatories. Aggregated, Comsat owns about 20,5% of Intelsat already and is Intelsat's biggest shareholder. In September 1998 Comsat agreed to merge with Lockheed Martin. After the merger, Lockheed Martin will hold at least 49% of Comsat share capital.

http://www.intelsat.int/index.htm

http://www.eutelsat.org/
http://www.oecd.org//daf/clp/roundtables/SATS...
http://www.comsat.com/
http://www.nyse.com/
http://www.comsat.com/
http://www.comsat.com/
http://www.comsat.com/
http://www.comsat.com/
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Nadia Thalman

Nadia Thalman is director of MIRAlab at the University of Geneva, Switzerland. Thalmann has become known as the creator of "virtual Marylyn", an installation which allowed visitors to literally to slip into Marylyn's shoes. Thalman's work is located at interface between science and art. It is about modelling human bodies for science and creative purposes, e.g. as virtual actors in movies. Thalman insists that artificial beings must be beautiful, in addition to being useful, as we will be living with them at close quarters.

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