Advertising and the Content Industry - The Coca-Cola Case

Attempts to dictate their rules to the media has become a common practice among marketers and the advertising industry. Similar as in the Chrysler case, where the company demanded that magazines give advance notice about controversial articles, recent attempts to put pressure on content providers have been pursued by the Coca-Cola Company.

According to a memo published by the New York Post, Coca-Cola demands a free ad from any publication that publishes a Coke ad adjacent to stories on religion, politics, disease, sex, food, drugs, environmental issues, health, or stories that employ vulgar language. "Inappropriate editorial matter" will result in the publisher being liable for a "full make good," said the memo by Coke advertising agency McCann-Erickson. Asked about this practice, a Coke spokes person said the policy has long been in effect.

(Source: Odwyerpr.com: Coke Dictates nearby Editorial. http://www.odwyerpr.com)

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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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1913: Henry Ford and the Assembly Line

Realizing that he'd need to lower costs Henry Ford (Ford Motor Company) was inspired to create a more efficient way to produce his cars. Looking at other industries he and his team found four principles, which furthered their goal: interchangeable parts, continuous flow, division of labor, and reducing wasted effort.

The use of interchangeable parts meant making the individual pieces of the car the same every time. Therefore the machines had to be improved, but once they were adjusted, they could be operated by a low-skilled laborer. To reduce the time workers spent moving around Ford refined the flow of work in the manner that as one task was finished another began, with minimum time spent in set-up. Furthermore he divided the labor by breaking the assembly of the legendary Model T in 84 distinct steps. Frederick Taylor, the creator of "scientific management" was consulted to do time and motion studies to determine the exact speed at which the work should proceed and the exact motions workers should use to accomplish their tasks.

Putting all those findings together in 1913 Ford installed the first moving assembly line that was ever used for large-scale manufacturing. His cars could then be produced at a record-breaking rate, which meant that he could lower the price, but still make a good profit by selling more cars. For the first time work processes were largely automated by machinery.

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"Attention Brokerage"

"Attention Brokerage" is one of the latest developments in the field of online advertising. The first Web-site applying the concept of selling and buying attention is Cybergold. Users, who want to earn money have to register and then look at ads, which, of course, they have to prove by e.g. downloading software. Attention, according to this idea, represents a good, which is worth being paid for.

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Alan Turing

b. June 23, 1912, London, England
d. June 7, 1954, Wilmslow, Cheshire

English mathematician and logician who pioneered in the field of computer theory and who contributed important logical analyses of computer processes. Many mathematicians in the first decades of the 20th century had attempted to eliminate all possible error from mathematics by establishing a formal, or purely algorithmic, procedure for establishing truth. The mathematician Kurt Gödel threw up an obstacle to this effort with his incompleteness theorem. Turing was motivated by Gödel's work to seek an algorithmic method of determining whether any given propositions were undecidable, with the ultimate goal of eliminating them from mathematics. Instead, he proved in his seminal paper "On Computable Numbers, with an Application to the Entscheidungsproblem [Decision Problem]" (1936) that there cannot exist any such universal method of determination and, hence, that mathematics will always contain undecidable propositions. During World War II he served with the Government Code and Cypher School, at Bletchley, Buckinghamshire, where he played a significant role in breaking the codes of the German "Enigma Machine". He also championed the theory that computers eventually could be constructed that would be capable of human thought, and he proposed the Turing test, to assess this capability. Turing's papers on the subject are widely acknowledged as the foundation of research in artificial intelligence. In 1952 Alan M. Turing committed suicide, probably because of the depressing medical treatment that he had been forced to undergo (in lieu of prison) to "cure" him of homosexuality.

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Federal Networking Council

Being an organization established in the name of the US government, the Federal Networking Council (FNC) acts as a forum for networking collaborations among Federal agencies to meet their research, education, and operational mission goals and to bridge the gap between the advanced networking technologies being developed by research FNC agencies and the ultimate acquisition of mature version of these technologies from the commercial sector.

Its members are representatives of agencies as the National Security Agency, the Department of Energy, the National Science Foundation, e.g.

http://www.fnc.gov

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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...
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Internet Architecture Board

On behalf of the Internet Society, the Internet Architecture Board oversees the evolution of the architecture, the standards and the protocols of the Net.

Internet Society: http://www.isoc.org/iab

http://www.isoc.org/
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Internet Research Task Force

Being itself under the umbrella of the Internet Society, the Internet Research Task Force is an umbrella organization of small research groups working on topics related to Internet protocols, applications, architecture and technology. It is governed by the Internet Research Steering Group.

http://www.irtf.org

http://www.irtf.org/
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