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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Economic structure; digital euphoria

The dream of a conflict-free capitalism appeals to a diverse audience. No politician can win elections without eulogising the benefits of the information society and promising universal wealth through informatisation. "Europe must not lose track and should be able to make the step into the new knowledge and information society in the 21st century", said Tony Blair.

The US government has declared the construction of a fast information infrastructure network the centerpiece of its economic policies

In Lisbon the EU heads of state agreed to accelerate the informatisation of the European economies

The German Chancellor Schröder has requested the industry to create 20,000 new informatics jobs.

The World Bank understands information as the principal tool for third world development

Electronic classrooms and on-line learning schemes are seen as the ultimate advance in education by politicians and industry leaders alike.

But in the informatised economies, traditional exploitative practices are obscured by the glamour of new technologies. And the nearly universal acceptance of the ICT message has prepared the ground for a revival of 19th century "adapt-or-perish" ideology.

"There is nothing more relentlessly ideological than the apparently anti-ideological rhetoric of information technology"

(Arthur and Marilouise Kroker, media theorists)

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Basics: Infringement and Fair Use

The rights of a copyright holder are infringed when one of the acts requiring the authorization of the owner is done by someone else without his consent. In the case of copyright infringement or the violation of neighboring rights the remedies for the copyright owner consist of civil redress. The unauthorized copying of protected works for commercial purposes and the unauthorized commercial dealing in copied material is usually referred to as "piracy".

Yet copyright laws also provide that the rights of copyright owners are subject to the doctrine of "fair use". That allows the reproduction and use of a work, notwithstanding the rights of the author, for limited purposes such as criticism, comment, news reporting, teaching, and research. Fair use may be described as the privilege to use the copyrighted material in a reasonable manner without the owner's consent. To determine whether a use is fair or not most copyright laws consider:

- the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes (usually certain types of educational copying are allowed)

- the nature of the copyrighted work (mostly originals made for commercial reasons are less protected than their purely artistic counterparts)

- the amount and substantiality of the portion used in relation to the copyrighted work as a whole

- the effect of the use upon the potential market for or value of the copyrighted work (as a general rule copying may be permitted if it is unlikely to cause economic harm to the original author)

Examples of activities that may be excused as fair use include: providing a quotation in a book review; distributing copies of a section of an article in class for educational purposes; and imitating a work for the purpose of parody or social commentary.

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Framing

Framing is the practice of creating a frame or window within a web page where the content of a different web page can be display. Usually when a link is clicked on, the new web page is presented with the reminders of the originating page.

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Immanuel Wallerstein

Immanuel Wallerstein (* 1930) is director of the Fernand Braudel Center for the Study of Economies, Historical Systems, and Civilizations. He is one of the most famous sociologists in the Western World. With his book The Modern World-System: Capitalist Agriculture and the Origins of the European World-Economy in the Sixteenth Century (1976), which led to the expression World-System Theory about centers, peripheries and semi-peripheries in the capitalist world system, he did not only influence a whole generation of scientists, but this theory seems to get popular again, due to globalization.

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Martin Hellman

Martin Hellman was Whitfield Diffie's collegue in creating pubylic key cryptography in the 1970s.

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