The Cost of Advertising

Paper Summary:

This paper looks at the need for advertising in order to increase sales and create branding awareness for the product and company. The paper points out that, in today's world, Internet advertising plays a major role and is a major cost to a business. The paper then looks at each of the major consumer markets, namely, U.S.A., Germany, Japan, Spain, Italy, and the United Kingdom and how each country is spending its advertising dollars.

From the Paper:

"The term "media" in general refers to the communication vehicles used to take the messages to the people and these consist of newspapers, magazines, radio, television, billboards, direct mail, and the Internet. The commercial messages to the target audience is carried by the media for the advertisers, and on the other side, the media depend on the advertising revenues to cover the cost of their operations. The estimated advertising expenditure in media was shown already at around $141 billion in 2001, and it is estimated that of this expenditure television accounted for 22.5 percent, direct mail 19.8 percent, newspapers 19.3 percent, radio 7.7 percent, yellow pages 5.8 percent, magazines 4.7 percent and the Internet 1.8 percent, with other media accounting for the remainder. Among the media, there is a classification into mass media and niche media according to the advertising experts. The media of television, newspapers, magazines and radio are called mass media as they carry the messages to a widespread and anonymous audience."

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