GAO: Bush administration put $1.6 billion into ad agencies and PR firms

By Jim Carnegie
Television Business Report
(February 14, 2006) According to the Government Accountability Office, government agencies in the last two and a half years have pumped at least a cool $1.6 billion into advertising and public relations, and the real number is likely much higher. Of this, the lion's share went through advertising agencies, which received $1.4 billion via 137 separate contracts. Fifty-four agreements valued at $197 million were made with PR firms, and 131 smaller contracts went directly to media companies, adding up to a total of $15 million.

A technique which gained notoriety in recent years was the video news release (VNR). The GAO said $1.2M was spent on 14 such contracts. Even the rarely-used Armstrong Williams-type deals were also noted -- there were only eight, totalling just under $100,000. However, the actual agreement between the Department of Education and Williams was not part of the study.

According to a release from Democrats in the House of Representatives, GAO did not have direct access to much of the government and was certain that reports received were incomplete, since the D of E's known relationships with Williams and PR firm Ketchum Communications were not provided.

"GAO surveyed only seven of the 15 cabinet-level departments and did not survey any independent agencies," it was explained in the release. Direct comparison to the spending habits of prior administrations was not part of the study, but it was noted that government spending on PR in 2000 was $39 million, compared to $88million in 2004.


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