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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