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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Virtual cartels, oligopolistic structures

Global networks require global technical standards ensuring the compatibility of systems. Being able to define such standards makes a corporation extremely powerful. And it requires the suspension of competitive practices. Competition is relegated to the symbolic realm. Diversity and pluralism become the victims of the globalisation of baroque sameness.

The ICT market is dominated by incomplete competition aimed at short-term market domination. In a very short time, new ideas can turn into best-selling technologies. Innovation cycles are extremely short. But today's state-of-the-art products are embryonic trash.

    According to the Computer and Communications Industry Association, Microsoft is trying to aggressively take over the network market. This would mean that AT&T would control 70 % of all long distance phone calls and 60 % of cable connections.



    AOL and Yahoo are lone leaders in the provider market. AOL has 21 million subscribers in 100 countries. In a single month, AOL registers 94 million visits. Two thirds of all US internet users visited Yahoo in December 1999.



    The world's 13 biggest internet providers are all American.



    AOL and Microsoft have concluded a strategic cross-promotion deal. In the US, the AOL icon is installed on every Windows desktop. AOL has also concluded a strategic alliance with Coca Cola.


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Fair use

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Internet Societal Task Force

The Internet Societal Task Force is an organization under the umbrella of the Internet Society dedicated to assure that the Internet is for everyone by identifying and characterizing social and economic issues associated with the growth and use of Internet. It supplements the technical tasks of the Internet Architecture Board, the Internet Engineering Steering Group and the Internet Engineering Task Force.

Topics under discussion are social, economic, regulatory, physical barriers to the use of the Net, privacy, interdependencies of Internet penetration rates and economic conditions, regulation and taxation.

http://www.istf.isoc.org/

http://www.istf.isoc.org/
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