Advertising and the Content Industry - The Coca-Cola Case

Attempts to dictate their rules to the media has become a common practice among marketers and the advertising industry. Similar as in the Chrysler case, where the company demanded that magazines give advance notice about controversial articles, recent attempts to put pressure on content providers have been pursued by the Coca-Cola Company.

According to a memo published by the New York Post, Coca-Cola demands a free ad from any publication that publishes a Coke ad adjacent to stories on religion, politics, disease, sex, food, drugs, environmental issues, health, or stories that employ vulgar language. "Inappropriate editorial matter" will result in the publisher being liable for a "full make good," said the memo by Coke advertising agency McCann-Erickson. Asked about this practice, a Coke spokes person said the policy has long been in effect.

(Source: Odwyerpr.com: Coke Dictates nearby Editorial. http://www.odwyerpr.com)

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The 19th Century: Machine-Assisted Manufacturing

Eli Whitney's proposal for a simplification and standardization of component parts marked a further milestone in the advance of the automation of work processes. In 1797 he suggested the manufacture of muskets with completely interchangeable parts. As opposed to the older method under which each gun was the individual product of a highly skilled gunsmith and each part hand-fitted, his method permitted large production runs of parts that were readily fitted to other parts without adjustment and could relatively easy be performed by machines.

By the middle of the 19th century the general concepts of division of labor, assembly of standardized parts and machine-assisted manufacture were well established. On both sides of the Atlantic large factories were in operation, which used specialized machines to improve costs, quality and quantity of their products.

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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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François Duvalier

b. April 14, 1907, Port-au-Prince, Haiti
d. April 21, 1971, Port-au-Prince

By name PAPA DOC, president of Haiti whose 14-year regime was of unprecedented duration in that country. A supporter of President Dumarsais Estimé, Duvalier was appointed director general of the National Public Health Service in 1946. He was appointed underminister of labour in 1948 and the following year became minister of public health and labour, a post that he retained until May 10, 1950, when President Estimé was overthrown by a military junta under Paul E. Magloire, who was subsequently elected president. By 1954 he had become the central opposition figure and went underground. Duvalier was elected president in September 1957. Setting about to consolidate his power, he reduced the size of the army and organized the Tontons Macoutes ("Bogeymen"), a private force responsible for terrorizing and assassinating alleged foes of the regime. Late in 1963 Duvalier moved further toward an absolutist regime, promoting a cult of his person as the semi divine embodiment of the Haitian nation. In April 1964 he was declared president for life. Although diplomatically almost completely isolated, excommunicated by the Vatican until 1966 for harassing the clergy, and threatened by conspiracies against him, Duvalier was able to stay in power longer than any of his predecessors.

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International Cable Protection Committee (ICPC)

The ICPC aims at reducing the number of incidents of damages to submarine telecommunications cables by hazards.

The Committee also serves as a forum for the exchange of technical and legal information pertaining to submarine cable protection methods and programs and funds projects and programs, which are beneficial for the protection of submarine cables.

Membership is restricted to authorities (governmental administrations or commercial companies) owning or operating submarine telecommunications cables. As of May 1999, 67 members representing 38 nations were members.

http://www.iscpc.org

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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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