Executive Summary The advertising industry is a dynamic sector that is currently generating young professionals and earnings worldwide. It is closely related to the growth of the business sector since it provides promotion of products and services to the masses. This paper aimed to identify the different aspects of the advertising industry, its mechanisms, trends and current issues. It was observed that currently, advertising agencies are experiencing unprecedented growth with the trend of extending global reach to cater to the needs of large clients. New areas for advertising are also being realized such as the Internet and cable television. Accordingly, more aggressive forms of advertising are being explored in this very competitive environment. However, recurrent issues of public concerns regarding advertising content and the efficiency of government and self regulation still remain in the industry. Introduction Advertising is a form of communication that is unidirectional wherein the sponsor, usually featuring a product, is identified together with the intended message. This media industry includes many variations such as product endorsement, public service, sponsorship and marketing strategies to name a few. Since these are aimed at relaying the message to the masses, various channels are used (Wernick ,1991; Young, 2005). The more commonly known advertising media are television, radio and newspapers while the Internet, billboards and magazines can also serve the same purpose. Posters, flyers, stickers, shirts, public address system and many more forms are also creatively exploited for advertising. Today, the advertising industry is proliferating since a significant amount of money is channeled to it by innumerable companies and organizations. According to a report of PricewaterhouseCoopers called Global Entertainment and Media Outlook: 2006-2010, the figure reached $385 billion worldwide and is expected to reach approximately $0.5 trillion by the year 2010 (PricewaterhouseCoopers, 2002). This paper aims to identify the present status and trends of the advertising industry with emphasis on the mechanisms driving this evolution. Current players and their strategies will be assessed through searches on industry reports and marketing literature. In addition current issues will be discussed related to the above information. Overview History Advertising seems to have a long history parallel to the development of mercantilism and political activities in early civilizations. These can be observed in relics including Greek, Roman and Middle Eastern artifacts. Paper and walls were extensively used to feature products, services and initiatives. The major development that revolutionized advertising was the introduction of the printing press. In the 17 th century England, handbills and newspapers were already widely used. This practice became a common phenomenon as economies grew. In the 19 th century, advertisements filled newspaper pages in the United States of America. The first advertising company was founded in 1841 in Boston, USA by Volney Palmer who initiated the practice of charging a commission on advertisements at 25 percent. In terms of advertisement content, which was a concern for those wary of fake or false ad