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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History: "Indigenous Tradition"

In preliterate societies the association of rhythmic or repetitively patterned utterances with supernatural knowledge endures well into historic times. Knowledge is passed from one generation to another. Similar as in the Southern tradition intellectual property rights are rooted in a concept of 'collective' or 'communal' intellectual property existing in perpetuity and not limited to the life of an individual creator plus some number of years after his or her death. Often rights are exercised by only one individual in each generation, often through matrilineal descent.


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Biometrics applications: gate keeping

Identity has to do with "place". In less mobile societies, the place where a person finds him/herself tells us something about his/her identity. In pre-industrial times, gatekeepers had the function to control access of people to particular places, i.e. the gatekeepers function was to identify people and then decide whether somebody's identity would allow that person to physically occupy another place - a town, a building, a vehicle, etc.

In modern societies, the unambiguous nature of place has been weakened. There is a great amount of physical mobility, and ever since the emergence and spread of electronic communication technologies there has been a "virtualisation" of places in what today we call "virtual space" (unlike place, space has been a virtual reality from the beginning, a mathematical formula) The question as to who one is no longer coupled to the physical abode. Highly mobile and virtualised social contexts require a new generation of gatekeepers which biometric technology aims to provide.

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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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The Big Five of Commercial Media

After a number of mergers and acquisitions five powerful media conglomerates lead the world's content production and distribution. They operate on an international basis with subsidiaries all around the globe and engage in every imaginable kind of media industry.

Table: The World's Leading Media Companies

Media Company

1998 Revenues

(in US$)

Property/Corporate Information

AOL Time Warner (US)

26,838.000.000*

http://www.timewarner.com/corp/about/timewarnerinc/corporate/index.html

Disney (US)

22,976.000.000

http://www.disney.com

Bertelsmann (GER)

16,389.000.000

http://www.bertelsmann.com/facts/report/report.cfm

News Corporation (AUS)

12,841.000.000

http://www.newscorp.com/public/cor/cor_m.htm

Viacom (US)

12,100.000.000

http://www.viacom.com/global.tin



(* Revenues of Time Warner only (merger with AOL took place in January 2000)

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Introduction: The Substitution of Human Faculties with Technology: Computers and Robots

With the development of modern computing, starting in the 1940s, the substitution of human abilities with technology obtained a new dimension. The focus shifted from the replacement of pure physical power to the substitution of mental faculties. Following the early 1980s personal computers started to attain widespread use in offices and quickly became indispensable tools for office workers. The development of powerful computers combined with progresses in artificial intelligence research also led to the construction of sophisticated robots, which enabled a further rationalization of manufacturing processes.

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Basics: Infringement and Fair Use

The rights of a copyright holder are infringed when one of the acts requiring the authorization of the owner is done by someone else without his consent. In the case of copyright infringement or the violation of neighboring rights the remedies for the copyright owner consist of civil redress. The unauthorized copying of protected works for commercial purposes and the unauthorized commercial dealing in copied material is usually referred to as "piracy".

Yet copyright laws also provide that the rights of copyright owners are subject to the doctrine of "fair use". That allows the reproduction and use of a work, notwithstanding the rights of the author, for limited purposes such as criticism, comment, news reporting, teaching, and research. Fair use may be described as the privilege to use the copyrighted material in a reasonable manner without the owner's consent. To determine whether a use is fair or not most copyright laws consider:

- the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes (usually certain types of educational copying are allowed)

- the nature of the copyrighted work (mostly originals made for commercial reasons are less protected than their purely artistic counterparts)

- the amount and substantiality of the portion used in relation to the copyrighted work as a whole

- the effect of the use upon the potential market for or value of the copyrighted work (as a general rule copying may be permitted if it is unlikely to cause economic harm to the original author)

Examples of activities that may be excused as fair use include: providing a quotation in a book review; distributing copies of a section of an article in class for educational purposes; and imitating a work for the purpose of parody or social commentary.

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Virtual cartels; mergers

In parallel to the deregulation of markets, there has been a trend towards large-scale mergers which ridicules dreams of increased competition.

Recent mega-mergers and acquisitions include

SBC Communications - Ameritech, $ 72,3 bn

Bell Atlantic - GTE, $ 71,3

AT&T - Media One, $ 63,1

AOL - Time Warner, $ 165 bn

MCI Worldcom - Spring, $ 129 bn

The total value of all major mergers since the beginnings of the 1990s has been 20 trillion Dollars, 2,5 times the size of the USA's GIP.

The AOL- Time Warner reflects a trend which can be observed everywhere: the convergence of the ICT and the content industries. This represents the ultimate advance in complete market domination, and a alarming threat to independent content.

"Is TIME going to write something negative about AOL? Will AOL be able to offer anything other than CNN sources? Is the Net becoming as silly and unbearable as television?"

(Detlev Borchers, journalist)

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Biometric applications: surveillance

Biometric technologies are not surveillance technologies in themselves, but as identification technologies they provide an input into surveillance which can make such as face recognition are combined with camera systems and criminal data banks in order to supervise public places and single out individuals.

Another example is the use of biometrics technologies is in the supervision of probationers, who in this way can carry their special hybrid status between imprisonment and freedom with them, so that they can be tracked down easily.

Unlike biometric applications in access control, where one is aware of the biometric data extraction process, what makes biometrics used in surveillance a particularly critical issue is the fact that biometric samples are extracted routinely, unnoticed by the individuals concerned.

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Timeline 1900-1970 AD

1913 the wheel cipher gets re-invented as a strip

1917 William Frederick Friedman starts working as a cryptoanalyst at Riverbank Laboratories, which also works for the U.S. Government. Later he creates a school for military cryptoanalysis

- an AT&T-employee, Gilbert S. Vernam, invents a polyalphabetic cipher machine that works with random-keys

1918 the Germans start using the ADFGVX-system, that later gets later by the French Georges Painvin

- Arthur Scherbius patents a ciphering machine and tries to sell it to the German Military, but is rejected

1919 Hugo Alexander Koch invents a rotor cipher machine

1921 the Hebern Electric Code, a company producing electro-mechanical cipher machines, is founded

1923 Arthur Scherbius founds an enterprise to construct and finally sell his Enigma machine for the German Military

late 1920's/30's more and more it is criminals who use cryptology for their purposes (e.g. for smuggling). Elizabeth Smith Friedman deciphers the codes of rum-smugglers during prohibition regularly

1929 Lester S. Hill publishes his book Cryptography in an Algebraic Alphabet, which contains enciphered parts

1933-1945 the Germans make the Enigma machine its cryptographic main-tool, which is broken by the Poles Marian Rejewski, Gordon Welchman and Alan Turing's team at Bletchley Park in England in 1939

1937 the Japanese invent their so called Purple machine with the help of Herbert O. Yardley. The machine works with telephone stepping relays. It is broken by a team of William Frederick Friedman. As the Japanese were unable to break the US codes, they imagined their own codes to be unbreakable as well - and were not careful enough.

1930's the Sigaba machine is invented in the USA, either by W.F. Friedman or his colleague Frank Rowlett

- at the same time the British develop the Typex machine, similar to the German Enigma machine

1943 Colossus, a code breaking computer is put into action at Bletchley Park

1943-1980 the cryptographic Venona Project, done by the NSA, is taking place for a longer period than any other program of that type

1948 Shannon, one of the first modern cryptographers bringing mathematics into cryptography, publishes his book A Communications Theory of Secrecy Systems

1960's the Communications-Electronics Security Group (= CESG) is founded as a section of Government Communications Headquarters (= GCHQ)

late 1960's the IBM Watson Research Lab develops the Lucifer cipher

1969 James Ellis develops a system of separate public-keys and private-keys

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Changes

Still, disinformation and propaganda are nothing magic. They can change things, but supposedly only if those things/meanings/opinions are not fixed completely. Galileo Galilee was not capable of changing people's opinion about the world being flat until some persons got suspicious that this long-believed-in truth was a mistake. The propaganda of his experiments which made him famous was not enough. On the other hand later all the propaganda of his enemies could not turn back the wheel of enlightenment, as people thought it was more logic to believe in a round world than in a flat one.
It is never just a single idea that changes. Society is following the changes.

Thinking about disinformation brings us to the word truth, of course, and to the doubt that there is no definite truth. And truth can easily be manipulated to another truth. Just present some facts that seem to be logic and there you've got a new truth. And if the facts can supposedly be proved by empirical studies then the quality of the truth definitely rises.
That's what ideologies do all the time. And the media like to do the same thing - as a game with power or mere presentation of power?

But of course there also exist bits of disinformation which are more amusing than evil or dangerous:
- the theory of the celestro-centric world/"Hohlwelttheorie"
- the story of the German philosopher who invented an Italian philosopher, wrote books about him, even reprinted "his" texts, which had gone lost pretendedly 100 years ago - and finally lost his job and all his career when other scientists found out that everything had been made up.

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Global hubs of the data body industry

While most data bunkers are restricted to particular areas or contexts, there are others which act as global data nodes. Companies such as EDS (Electronic Data Systems), Experian, First Data Corporation and Equifax operate globally and run giant databases containing personal information. They are the global hubs of the data body economy.

Company

Sales in USD billions

Size of client database in million datasets





Equifax





1,7





360





Experian





1,5





779





Fist Data Corporation





5,5





260





EDS





18,5









(not disclosed)

(Sales and database sizes, 1998)

The size of these data repositories is constantly growing, so it is only a matter of time when everybody living in the technologically saturated part of the world will be registered in one of these data bunkers.

Among these companies, EDS, founded by the former US presidential candidate Ross Perot, known for his right-wing views and direct language, is of particular importance. Not only is it the world's largest data body company, it is also secretive about the size of its client database - a figure disclosed by the other companies either in company publications or upon enquiry. After all, the size of such a data base makes a company more attractive for potential customers.

For many years, EDS has been surrounded by rumours concerning sinister involvement with intelligence agencies. Beyond the rumours, though, there are also facts. EDS has a special division for government services. EDS does business with all military agencies of the US, as well as law enforcement agencies, justice agencies, and many others. The company also maintains a separate division for military equipment In 1984, the company became a subsidiary of General Motors, itself a leading manufacturer of military and intelligence systems. EDS is listed by the Federation of American Scientist's intelligence resource program as contractor to US intelligence agencies, and prides itself, amongst other things, to respond to the "rise of the citizen as a consumer".

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Internet Societal Task Force

The Internet Societal Task Force is an organization under the umbrella of the Internet Society dedicated to assure that the Internet is for everyone by identifying and characterizing social and economic issues associated with the growth and use of Internet. It supplements the technical tasks of the Internet Architecture Board, the Internet Engineering Steering Group and the Internet Engineering Task Force.

Topics under discussion are social, economic, regulatory, physical barriers to the use of the Net, privacy, interdependencies of Internet penetration rates and economic conditions, regulation and taxation.

http://www.istf.isoc.org/

http://www.istf.isoc.org/
INDEXCARD, 1/14
 
Wide Area Network (WAN)

A Wide Area Network is a wide area proprietary network or a network of local area networks. Usually consisting of computers, it may consist of cellular phones, too.

INDEXCARD, 2/14
 
Theoedore Roosevelt

With the assassination of President McKinley, Theodore Roosevelt (1858-1919), not quite 43, became the youngest President in the Nation's history. Roosevelt's youth differed sharply from that of the log cabin Presidents. He was born in New York City in 1858 into a wealthy family. Roosevelt steered the United States more actively into world politics. He liked to quote a favorite proverb, "Speak softly and carry a big stick. . . . "

He won the Nobel Peace Prize for mediating the Russo-Japanese War.

for more information see the official website:

http://www.whitehouse.gov/WH/glimpse/presidents/html/tr26.html

http://www.whitehouse.gov/WH/glimpse/presiden...
INDEXCARD, 3/14
 
cryptology

also called "the study of code". It includes both, cryptography and cryptoanalysis

INDEXCARD, 4/14
 
Amazon.Com

Amazon.Com was one of the first online bookstores. With thousands of books, CDs and videos ordered via the Internet every year, Amazon.Com probably is the most successful Internet bookstore.

INDEXCARD, 5/14
 
Vladimir Putin

Vladimir Putin is Russian President, Boris Yeltsin's. Until his appointment as Prime Minister in August 1999, he was nearly unknown. He had been working for the Soviet Security Service, the KGB. In July 1998 he took charge of the Federal Security Service, FSB. In March 1999 he became secretary of the Security Council. He has no experience in being at all. Where he demonstrated power until now is the Chechnya War. Soon after the beginning of this 2nd war in the region his popularity rose.

INDEXCARD, 6/14
 
Xerxes

Xerxes (~519-465 BC) was Persian King from 485-465 BC. He led his Army against the Greek but finally was defeated. He was the father of Alexander the Great.

INDEXCARD, 7/14
 
Enigma Machine

The Enigma Encryption Machine was famous for its insecurities as for the security that it gave to German ciphers. It was broken, first by the Poles in the 1930s, then by the British in World War II.

INDEXCARD, 8/14
 
Artificial intelligence approaches

Looking for ways to create intelligent machines, the field of artificial intelligence (AI) has split into several different approaches based on the opinions about the most promising methods and theories. The two basic AI approaches are: bottom-up and top-down. The bottom-up theory suggests that the best way to achieve artificial intelligence is to build electronic replicas of the human brain's complex network of neurons (through neural networks and parallel computing) while the top-down approach attempts to mimic the brain's behavior with computer programs (for example expert systems).

INDEXCARD, 9/14
 
Local Area Network (LAN)

A Local Area Network is an office network, a network restricted to a building area.

INDEXCARD, 10/14
 
Electronic Messaging (E-Mail)

Electronic messages are transmitted and received by computers through a network. By E-Mail texts, images, sounds and videos can be sent to single users or simultaneously to a group of users. Now texts can be sent and read without having them printed.

E-Mail is one of the most popular and important services on the Internet.

INDEXCARD, 11/14
 
Transmission Control Protocol/Internet Protocol (TCP/IP)

TCP and IP are the two most important protocols and communication standards. TCP provides reliable message-transmission service; IP is the key protocol for specifying how packets are routed around the Internet.

More detailed information can be found here

http://www.anu.edu/people/Roger.Clarke/II/Pri...
INDEXCARD, 12/14
 
Intelsat

Intelsat, the world's biggest communication satellite services provider, is still mainly owned by governments, but will be privatised during 2001, like Eutelsat. A measure already discussed 1996 at an OECD competition policy roundtable in 1996. Signatory of the Intelsat treaty for the United States of America is Comsat, a private company listed on the New York Stock Exchange. Additionally Comsat is one of the United Kingdom's signatories. Aggregated, Comsat owns about 20,5% of Intelsat already and is Intelsat's biggest shareholder. In September 1998 Comsat agreed to merge with Lockheed Martin. After the merger, Lockheed Martin will hold at least 49% of Comsat share capital.

http://www.intelsat.int/index.htm

http://www.eutelsat.org/
http://www.oecd.org//daf/clp/roundtables/SATS...
http://www.comsat.com/
http://www.nyse.com/
http://www.comsat.com/
http://www.comsat.com/
http://www.comsat.com/
http://www.comsat.com/
INDEXCARD, 13/14
 
William Gibson

American science fiction author. Most famous novel: Neuromancer.

For resources as writings and interviews available on the Internet see http://www.lib.loyno.edu/bibl/wgibson.htm

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