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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The 19th Century: Machine-Assisted Manufacturing

Eli Whitney's proposal for a simplification and standardization of component parts marked a further milestone in the advance of the automation of work processes. In 1797 he suggested the manufacture of muskets with completely interchangeable parts. As opposed to the older method under which each gun was the individual product of a highly skilled gunsmith and each part hand-fitted, his method permitted large production runs of parts that were readily fitted to other parts without adjustment and could relatively easy be performed by machines.

By the middle of the 19th century the general concepts of division of labor, assembly of standardized parts and machine-assisted manufacture were well established. On both sides of the Atlantic large factories were in operation, which used specialized machines to improve costs, quality and quantity of their products.

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Asymmetric or Public-Key-Cryptosystems

Here the keys for encryption and decryption differ. There needs to exist a private key, which is only known to the individual, and a public key, which is published. Every person has her or his own private key that is never published. It is used for decrypting only. Mathematically the different keys are linked to each other, still it is nearly impossible to derive the private key from the public one.
For sending a message to someone, one has to look up the other's public key and encrypt the message with it. The keyholder will use his/her private key to decrypt it. While everybody can send a message with the public key, the private key absolutely has to stay secret - and probably will.

"The best system is to use a simple, well understood algorithm which relies on the security of a key rather than the algorithm itself. This means if anybody steals a key, you could just roll another and they have to start all over." (Andrew Carol)

very famous examples for public-key systems are:

· RSA:
The RSA is probably one of the most popular public-key cryptosystems. With the help of RSA, messages can be encrypted, but also digital signatures are provided.
The mathematics behind are supposedly quite easy to understand (see: http://world.std.com/~franl/crypto/rsa-guts.html.

· PGP:
PGP is a public key encryption program. Most of all it is used for e-mail encryption.
It is supposed to be quite safe - until now.

· PGPi is simply the international variation of PGP.

for further information about the RSA and other key-systems visit the RSA homepage:
http://www.rsa.com/rsalabs/faq/
http://www.rsa.com/rsalabs/faq/questions.html
or:
http://www.pgpi.org

All of those tools, like hash functions, too, can help to enhance security and prevent crime.
They can theoretically, but sometimes they do not, as the example of the published credit card key of France in March 2000 showed.
For more information see:
http://news.voila.fr/news/fr.misc.cryptologie

Still, cryptography can help privacy.
On the other hand cryptography is only one element to assure safe transport of data. It is especially the persons using it who have to pay attention. A key that is told to others or a lost cryptographic key are the end of secrecy.

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Augustus

Gaius Julius Caesar Octavian Augustus (63 BC - 14 AD) was adopted by Julius Caesar and became the first Roman Emperor. While he was very successful in military affairs abroad, he tried to bring back law and order to the Roman population. He was most interested in arts and philosophy.

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Above.net

Headquartered in San Jose, USA, AboveNet Communications is a backbone service provider. Through its extensive peering relationships, the company has built a network with the largest aggregated bandwidth in the world.

http://www.above.net

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