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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Although Web advertising becomes a significant portion of marketing budgets, advertisers are still unsure on how to unlock the potential of the Internet. Current findings show that:
- Consumer brands spend only a fraction of their advertising budget on on-line advertising.
- Technology companies spend five times more on advertising in the WWW.
- While banner campaigns are still popular, there is no standardized solution for on-line advertising.
- Ad pricing is based on CPM (costs per 1.000 visitors), rather than on results.
- Personalized targeting has not yet taken hold. Instead advertisers mainly target on content.
At the moment three dominant models are used for Internet advertising:
Destination Sites: They use entertainment, high production values and information to pull users in and bring them back again.
Micro Sites: Content sites or networks host small clusters of brand pages.
Banner Campaigns: Those include other forms of Web advertising like sponsorships.
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Although it is generally hard to distinguish between public relations and propaganda,
It furthermore played a central role in the Gulf War. On behalf of the Kuwaiti government it presented a 15-year-old girl to testify before Congress about human rights violations in a Kuwaiti hospital. The girl, later found out to be the daughter of Kuwait's ambassador to the U.S., and its testimony then became the centerpiece of a finely tuned PR campaign orchestrated by Hill & Knowlton and co-ordinated with the White House on behalf of the government of Kuwait an the Citizens for a Free Kuwait group. Inflaming public opinion against Iraq and bringing the U.S. Congress in favor of war in the Gulf, this probably was one of the largest and most effective public relations campaigns in history.
Running campaigns against abortion for the Catholic Church and representing the
Accused of pursuing potentially illegal proxy spying operation for intelligence agencies, Richard Cheney, head of Hill & Knowltons New York office, denied this allegations, but said that "... in such a large organization you never know if there's not some sneak operation going on." On the other hand former
(Source: Carlisle, Johan: Public Relationships: Hill & Knowlton, Robert Gray, and the CIA.
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