Sponsorship Models

With new sponsorship models being developed, even further influence over content from the corporate side can be expected. Co-operating with Barnes & Nobel Booksellers, the bookish e-zine FEED for instance is in part relying on sponsoring. Whenever a specific title is mentioned in the editorial, a link is placed in the margin - under the heading "Commerce" - to an appropriate page on Barnes & Noble. Steve Johnson, editor of FEED, says "We do not take a cut of any merchandise sold through those links.", but admits that the e-zine does indirectly profit from putting those links there.

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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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Porter Novelli

Porter Novelli is the third largest PR firm with 1998 net fees of US$ 183,050,000. The companies focus lies on building brands, enhancing reputation and crisis management. Porter Novelli is specialised in: Food and nutrition, health care, consumer goods, technology, public affairs and social marketing.

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Public Relations Consultants Association (PRCA)

The PRCA was formed in November 1969 as an association limited by guarantee of up to £5 per member and therefore has no share capital. The PRCA tries to encourage and promote the advancement of companies and firms engaged in public relations consultancy..

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