Tokyo has replaced New York as the advertising capital, according to Advertising Age's 48th annual Agency Report.
The recession of 1991 that derailed the nation's economy and the U.S. advertising agency business managed to demote New York - with its fabled Madison Avenue - as the world's advertising capital, the report said.In Ad Age's report, covering more than 1,600 agencies, Tokyo agencies accounted for $24.5 billion in billings last year, up 8.4 percent from 1990, while New York totaled $24.1 billion, up only 3.2 percent.
London finished third at $12.1 billion, followed by Paris at $9.7 billion and Chicago at $7.1 billion.
Collectively, 1,110 foreign ad agencies from 80 countries had gross income of $13.3 billion on billings of $91.2 billion, according to the Ad Age Report.
A reflection of the power of the U.S. agencies abroad is that they account for about one out of every three dollars spent by agencies.