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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Mass production
The term mass production refers to the application of the principles of specialization,  division of labor, and standardization of parts to the manufacture of goods. The use of modern methods of mass production has brought such improvements in the cost, quality, quantity, and variety of goods available that the largest global population in history is now sustained at the highest general standard of living. A moving conveyor belt installed in a Dearborn, Michigan, automobile plant in 1913 cut the time required to produce flywheel magnetos from 18 minutes to 5 and was the first instance of the use of modern integrated mass production techniques.
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