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.

TEXTBLOCK 1/1 // URL: http://world-information.org/wio/infostructure/100437611652/100438658092
 
General Electric

GE is a major American corporation and one of the largest and most diversified corporations in the world. Its products include electrical and electronic equipment, plastics, aircraft engines, medical imaging equipment, and financial services. The company was incorporated in 1892, and in 1986 GE purchased the RCA Corporation including the RCA-owned television network, the National Broadcasting Company, Inc. In 1987, however, GE sold RCA's consumer electronics division to Thomson SA, a state-owned French firm, and purchased Thomson's medical technology division. In 1989 GE agreed to combine its European business interests in appliances, medical systems, electrical distribution, and power systems with the unrelated British corporation General Electric Company. Headquarters are in Fairfield, Conn., U.S.

INDEXCARD, 1/4
 
First Amendment Handbook

The First Amendment to the US Constitution, though short, lists a number of rights. Only a handful of words refer to freedoms of speech and the press, but those words are of incalculable significance. To understand the current subtleties and controversies surrounding this right, check out this First Amendment site. This detailed handbook of legal information, mostly intended for journalists, should be of interest to anyone who reads or writes. For example, the chapter Invasion of Privacy shows the limits of First Amendment rights, and the balance between the rights of the individual and the rights of the public - or, more crudely, the balance of Tabloid vs. Celebrity. Each section is carefully emended with relevant legal decisions.

http://www.rcfp.org/handbook/viewpage.cgi

INDEXCARD, 2/4
 
Sperry

Formerly (1955 - 1979) Sperry Rand Corporation, American corporation that merged with the Burroughs Corporation in 1986 to form Unisys Corporation, a large computer manufacturer.

INDEXCARD, 3/4
 
Bertelsmann

The firm began in Germany in 1835, when Carl Bertelsmann founded a religious print shop and publishing establishment in the Westphalian town of Gütersloh. The house remained family-owned and grew steadily for the next century, gradually adding literature, popular fiction, and theology to its title list. Bertelsmann was shut down by the Nazis in 1943, and its physical plant was virtually destroyed by Allied bombing in 1945. The quick growth of the Bertelsmann empire after World War II was fueled by the establishment of global networks of book clubs (from 1950) and music circles (1958). By 1998 Bertelsmann AG comprised more than 300 companies concentrated on various aspects of media. During fiscal year 1997-98, Bertelsmann earned more than US$15 billion in revenue and employed 58.000 people, of whom 24.000 worked in Germany.

INDEXCARD, 4/4