J201Lecture: Public relations (cont.)Walter Lippmann and public opinion•Harvard-educated journalist and editor•Propaganda writer in WWI•Feared the public was too easily manipulated and prone to stereotyping•Public Opinion (1922)•“manufacture of consent”Edward Bernays and brand PR•Press agent on Creel Committee•Wife & partner Doris Fleischman•1923: Crystallizing Public Opinion and Freudian psychology (his uncle)•Coined the term “public relations”•PR as morality•1929 Lucky Strike campaignPR regulation and professionalization•1936: NAAPD•1938: Foreign Agents Registration Act•1940s: War Advertising Council•1945: “The Ad Council” and PSAs•1946: Federal Regulation of Lobbying Act•1947: PR Society of America•1954: Code of EthicsPRSA Statement of Values 2000•ADVOCACYWe serve the public interest by acting as responsible advocates for those we represent.We provide a voice in the marketplace of ideas, facts, and viewpoints to aid informed public debate.•HONESTYWe adhere to the highest standards of accuracy and truth in advancing the interests of those we represent and in communicating with the public.•EXPERTISEWe acquire and responsibly use specialized knowledge and experience.We advance the profession through continued professional development, research, and education.We build mutual understanding, credibility, and relationships among a wide array of institutions and audiences.•INDEPENDENCEWe provide objective counsel to those we represent.We are accountable for our actions.•LOYALTYWe are faithful to those we represent, while honoring our obligation to serve the public interest.•FAIRNESSWe deal fairly with clients, employers, competitors, peers, vendors, the media, and the general public.We respect all opinions and support the right of free expression.structure of the PR industry•2/3 of PR professionals work “in house”•3,000-4,000 independent PR agencies for the rest•US government is largest single employer•women outnumber men 2:1•either hourly consulting or monthly retainer•“integrated marketing communications” (IMC)2005 RankingsPRWeek’s annual rankings: the definitive performance guide to PR agenciesRANKINGAGENCYNAMEUS REVENUE($)CHANGESTAFFREVENUE($) LOCATION2005 2004 2003 % 2004PER EMPLOYEE1 Edelman $152,727,355 $138,436,778 10% 1,010 $151,260 Chicago2 Waggener Edstrom $77,758,000 $69,693,000 12% 530 $146,741 Bellevue, WA3 The Ruder Finn Group $74,459,000 $68,261,000 9% 459 $162,220 New York4 MWW Group $39,267,129 n/a n/a 196 $200,342 East Rutherford, NJ5 APCO Worldwide $33,779,462 $26,507,582 27% 164 $205,972 Washington, DC6 Chandler Chicco Agency $25,714,700 $18,063,728 42% 136 $189,079 New York7 Text 100 Public Relations $23,185,392 $20,248,006 15% 147 $157,724 San Francisco8 Campbell & Co. $20,640,581 $22,279,489 -7% 143 $144,340 Dearborn, MI9 Schwartz Communications $18,060,408 $16,095,959 12% 148 $122,030 Waltham, MA10 Dan Klores Communications $17,400,000 n/a n/a 117 $148,718 New York11 Zeno Group $16,465,317 $12,589,679 31% 109 $115,502 New York12 Qorvis Communications $15,320,000 $12,214,000 25% 71 $215,775 Washington, DC13 Gibbs & Soell $14,754,600 $13,773,300 7% 102 $144,653 New York14 A&R Partners $12,540,000 $9,930,000 26% 86 $145,814 San Mateo, CA15 CKPR $10,780,000 $9,430,000 14% 88 $122,500 Chicago16 Kupper Parker Communications $10,724,715 $9,072,622 18% 30 $357,491 St. Louis17 Rogers & Associates $10,655,003 $10,105,143 5% 75 $142,067 Los Angeles18 Dorland Public Relations $10,556,000 $6,199,000 70% 46 $229,478 Philadelphia19 Padilla Speer Beardsley $10,387,525 $9,543,024 9% 76 $136,678 Minneapolis, MN20 Clear!Blue $10,230,000 $5,100,000 101% 42 $243,571 Birmingham, MI21 PainePR $9,387,904 $7,948,536 18% 54 $173,850 Irvine, CA22 KCSA Public Relations Worldwide $9,103,561 $7,801,197 17% 47 $193,693 New York23 Alan Taylor Communications $8,970,503 $8,001,966 12% 65 $138,008 New York24 Access Communications $8,873,035 $7,962,270 11% 45 $197,179 San Francisco25 French/West/Vaughan $8,745,696 $7,965,885 10% 84 $104,115 Raleigh, NC26 RF/Binder Partners $8,656,000 $7,824,000 11% 50 $173,120 New York27 Integrated Corporate Relations $8,600,209 $5,203,383 65% 32 $270,873 Westport, CT28 Martino Flynn $8,373,916 $5,904,511 42% 41 $204,242 Pittsford, NY29 Widmeyer Communications $8,300,000 $8,000,000 4% 49 $169,388 Washington, DC30 Bite Communications $8,289,000 $2,607,000 218% 57 $145,421 San Francisco31 Peppercom $8,133,386 $7,049,124 15% 61 $133,334 New York32 Cooney/Waters Group $7,767,815 $7,840,988 -1% 30 $258,927 New York33 Sloane & Company $7,259,482 $6,400,000 13% 23 $315,630 New York34 Levick Strategic Communications $7,049,552 $4,969,691 42% 25 $281,982 Washington, DC35 Horn Group $7,000,000 $5,966,782 17% 45 $155,556 San Francisco36 Rasky Baerlein Strategic Communication $6,854,467 $4,710,349 46% 30 $228,482 Boston37 Hunter Public Relations $6,797,567 $6,488,581 5% 46 $147,773 New York38 Spectrum Science Communications $6,438,770 $6,324,508 2% 50 $128,775 Washington, DC39 Capstrat $6,300,000 $5,458,000 15% 48 $131,250 Raleigh, NC40 M Booth & Associates $6,075,433 $6,629,668 -8% 44 $138,078 New York41 Jasculca/Terman & Associates $6,013,144 $6,163,905 -2% 55 $109,330 Chicago42 Davies $5,988,000 $4,344,000 38% 32 $187,125 Santa Barbara, CA43 OutCast Communications $5,975,000 $4,500,000 33% 44 $135,795 San FranciscoDue to ongoing internal control problems,IPG has been unable to file its 2004 year-end report or fourth quarter results as ofpress time.As of September 30, 2004, IPGreported nine-month total worldwide rev-enues of $4.45 billion,up 5% from the sameperiod in 2003.The company also reporteda year-to-date operating loss of $372 mil-lion at that time. Interpublic’s PR firmsinclude Weber Shandwick, GolinHarris,MWW Group, Carmichael Lynch Spong,DeVries PR,and Tierney Communications.Interpublic GroupOmnicom posted worldwide revenue of$9.75 billion in 2004,up 13% from $8.6 bil-lion in 2003. PR accounted for 10.7% oftotal revenues, and total marketing rev-enues outside of advertising accounted for57%.PR revenue grew 12% from the pre-vious year. Omnicom’s PR firms includeFleishman-Hillard,Ketchum,Porter Nov-elli, Gavin Anderson, Cone, Brodeur, andClark & Weinstock.OmnicomWPP posted worldwide revenue of $8
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