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 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 (Source: Odwyerpr.com: Coke Dictates nearby Editorial. | ||||||||||||||||||||||||||
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Hill & Knowlton Although it is generally hard to distinguish between public relations and propaganda, It furthermore played a central role in the Gulf War. On behalf of the Kuwaiti government it presented a 15-year-old girl to testify before Congress about human rights violations in a Kuwaiti hospital. The girl, later found out to be the daughter of Kuwait's ambassador to the U.S., and its testimony then became the centerpiece of a finely tuned PR campaign orchestrated by Hill & Knowlton and co-ordinated with the White House on behalf of the government of Kuwait an the Citizens for a Free Kuwait group. Inflaming public opinion against Iraq and bringing the U.S. Congress in favor of war in the Gulf, this probably was one of the largest and most effective public relations campaigns in history. Running campaigns against abortion for the Catholic Church and representing the Accused of pursuing potentially illegal proxy spying operation for intelligence agencies, Richard Cheney, head of Hill & Knowltons New York office, denied this allegations, but said that "... in such a large organization you never know if there's not some sneak operation going on." On the other hand former (Source: Carlisle, Johan: Public Relationships: Hill & Knowlton, Robert Gray, and the CIA. | ||||||||||||||||||||||||||
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On-line Advertising Revenues Although Internet advertising only really started in 1994, revenues showed a steady and fast growth. In 1997 US$ 906.5 million were spent on on-line advertising. Compared with advertising revenue for the television industry in equivalent dollars for its third year, the Internet was slightly ahead, at US$ 907 million compared to television's US$ 834 million. 1998 on-line advertising grew by 112 percent to US$ 1.92 billion in revenues, and is on track to hit US$ 4 billion in 1999, which would put Internet advertising at about 2 percent of the U.S. ad market. Table: Spending on On-Line Advertising by Category (first quarter 1999)
Table: Types of On-Line Advertising (first quarter 1999)
Source: Internet Advertising Bureau (IAB). | ||||||||||||||||||||||||||
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Advertising and the Media System Media systems (especially broadcasting) can be classified in two different types: Public Media Systems: Government control over broadcasting through ownership, regulation, and partial funding of public broadcasting services. Private Media System: Ownership and control lies in the hands of private companies and shareholders. Both systems can exist in various forms, according to the degree of control by governments and private companies, with mixed systems (public and private) as the third main kind. Whereas public media systems are usually at least partially funded by governments, private broadcasting solely relies on advertising revenue. Still also public media systems cannot exclude advertising as a source of revenue. Therefore both types are to a certain degree dependent on money coming in by advertisers. And this implies consequences on the content provided by the media. As the attraction of advertisers becomes critically important, interests of the advertising industry frequently play a dominant role concerning the structure of content and the creation of environments favorable for advertising goods and services within the media becomes more and more common. | ||||||||||||||||||||||||||
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On-line Advertising and the Internet Content Industry Applied to on-line content the advertising model leads to similar problems like in the traditional media. Dependence on advertising revenue puts pressure on content providers to consider advertising interests. Nevertheless new difficulties caused by the technical structure of online media, missing legal regulation and not yet established ethical rules, appear. | ||||||||||||||||||||||||||
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