Public Relations and the Advertising Industry

The public relations industry, the same as advertising, is concentrated in the hands of few dominant firms. Still, the striking element about corporate public relations is that PR firms are tightly related to advertising companies. Nine out of the ten biggest international PR agencies have close ties with the advertising industry. Also, looking at the largest acquisitions involving U.S. PR firms from 1997 to 1999 it is apparent that money coming from advertising agencies has played an important role.


Table: Top 10 PR Firms 1998


Rank 1998

PR Firm

Advertising Agency Related

1998 Net Fees (in U.S. $)

1997 - 1998 % Change

1

Burson-Marsteller

yes

258,417,000

4.2

2

Hill and Knowlton

yes

206,000,000

8.9

3

Porter Novelli Int.

yes

183,050,000

23.6

4

Shandwick

yes

170,300,000

7.3

5

Fleishman-Hillard

yes

160,692,000

19.1.

6

Edelman PR Worldwide

no

157,840,530

18.1

7

Ketchum

yes

125,248,000

29.6

8

BSMG Worldwide

yes

118,963,000

93.0

9

Weber PR Worldwide

yes

83,166,000

36.2

10

GCI/APCO

yes

79,667,957

28.4




With many PR agencies sold to advertising companies, the advertising industry's influence further increases; enabling them to offer their clients not only advertising services, but also know-how in marketing, public opinion, crisis and issues management and political lobbying.

Table: Acquisition of PR Agencies (1997 - 1999)

Acquired Company

Buyer

Buyers Industry

Estimated Purchase Price (in millions of U.S. $)

International PR

Interpublic Group of Cos.

Advertising

230

Fleishman-Hillard

Omicom Group

Advertising

85

Ketchum

Omnicom Group

Advertising

60

Dewe Rogerson

Incepta

Advertising

40

Financial Rel. Bd.

BSMG/TN

Public Relations

33

Weber PR

Interpublic Group of Cos.

Advertising

15

Alexander

WPP Group

Advertising

15

Charles Barker

BSMG/TN

Public Relations

15



Source: Odwyerpr.com.

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Hill & Knowlton

Although it is generally hard to distinguish between public relations and propaganda, Hill & Knowlton, the worlds leading PR agency, represents an extraordinary example for the manipulation of public opinion with public relations activities. Hill & Knowlton did not only lobby for countries, accused of the abuse of human rights, like China, Peru, Israel, Egypt and Indonesia, but also represented the repressive Duvalier regime in Haiti.

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 Church of Scientology, large PR firms like Hill & Knowlton, scarcely hesitate to manipulate public and congressional opinion and government policy through media campaigns, congressional hearings, and lobbying, when necessary. Also co-operation with intelligence agencies seems to be not unknown to Hill & Knowlton.

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 CIA official Robert T. Crowley acknowledged, that "Hill & Knowlton's overseas offices were perfect 'cover` for the ever-expanding CIA. Unlike other cover jobs, being a public relations specialist did not require technical training for CIA officers." Furthermore the CIA, Crowley admitted, used its Hill & Knowlton connections to "... put out press releases and make media contacts to further its positions. ... Hill & Knowlton employees at the small Washington office and elsewhere distributed this material through CIA assets working in the United States news media."

(Source: Carlisle, Johan: Public Relationships: Hill & Knowlton, Robert Gray, and the CIA. http://mediafilter.org/caq/)

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Digital Subscriber Line (DSL)

DSL connections are high-speed data connections over copper wire telephone lines. As with cable connections, with DSL you can look up information on the Internet and make a phone call at the same time but you do not need to have a new or additional cable or line installed. One of the most prominent DSL services is ISDN (integrated services digital network, for more information click here ( http://www.britannica.com/bcom/eb/article/4/0,5716,129614+15,00.html )).

http://www.britannica.com/bcom/eb/article/4/0...
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Kessler Marketing Intelligence (KMI)

KMI is the leading source for information on fiber-optics markets. It offers market research, strategic analysis and product planning services to the opto-electronics and communications industries. KMI tracks the worldwide fiber-optic cable system and sells the findings to the industry. KMI says that every fiber-optics corporation with a need for strategic market planning is a subscriber to their services.

http://www.kmicorp.com/

http://www.kmicorp.com/
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