What is Advertising? (2 pages in english)

As an economy grows, advertising becomes more important - because more consumers have income and advertising can get results. But good advertising results cost money. Spending on advertising has grown rapidly. In 1946, U.S. advertising spending was slightly more than $ 3 billion. By 1982 it was $ 66 billion - and by 1992 it was about $ 133 billion. While total spending on advertising seems high, especially in the U. S., it represents a small portion of what people pay for the goods and services they buy. U.S. corporations spend an average of only about 2,5 percent of their sales dollar on advertising. World-wide, the percentage is even smaller. In general, the percent is smaller for retailers (and wholesalers) than for producers. While total advertising expenditures are large, the advertising industry itself employs relatively few people. In U. S. it is only about 500 000 people, this includes all people who help create or sell advertising.