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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Fiber-optic cable networks

Fiber-optic cable networks may become the dominant method for high-speed Internet connections. Since the first fiber-optic cable was laid across the Atlantic in 1988, the demand for faster Internet connections is growing, fuelled by the growing network traffic, partly due to increasing implementation of corporate networks spanning the globe and to the use of graphics-heavy contents on the World Wide Web.

Fiber-optic cables have not much more in common with copper wires than the capacity to transmit information. As copper wires, they can be terrestrial and submarine connections, but they allow much higher transmission rates. Copper wires allow 32 telephone calls at the same time, but fiber-optic cable can carry 40,000 calls at the same time. A capacity, Alexander Graham Bell might have not envisioned when he transmitted the first words - "Mr. Watson, come here. I want you" - over a copper wire.

Copper wires will not come out of use in the foreseeable future because of technologies as DSL that speed up access drastically. But with the technology to transmit signals at more than one wavelength on fiber-optic cables, there bandwidth is increasing, too.

For technical information from the Encyclopaedia Britannica on telecommunication cables, click here. For technical information from the Encyclopaedia Britannica focusing on fiber-optic cables, click here.

An entertaining report of the laying of the FLAG submarine cable, up to now the longest fiber-optic cable on earth, including detailed background information on the cable industry and its history, Neal Stephenson has written for Wired: Mother Earth Mother Board. Click here for reading.

Susan Dumett has written a short history of undersea cables for Pretext magazine, Evolution of a Wired World. Click here for reading.

A timeline history of submarine cables and a detailed list of seemingly all submarine cables of the world, operational, planned and out of service, can be found on the Web site of the International Cable Protection Committee.

For maps of fiber-optic cable networks see the website of Kessler Marketing Intelligence, Inc.

http://www.britannica.com/bcom/eb/article/4/0...
http://www.britannica.com/bcom/eb/article/4/0...
http://www.wired.com/wired/archive/4.12/ffgla...
http://www.pretext.com/mar98/features/story3....
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