Customer of last resort? The Swedish advertising industry and the government from World War II to the end of the Cold War

Abstract

In connection with World War II, the advertising industry in neutral Sweden began cooperating with the government. This proved beneficial for the industry since blockades and rationing caused the civilian advertising market to almost disappear. After the war, the cooperation continued, albeit primarily regarding military matters. Later, however, the government began procuring advertising and media services on largely commercial grounds. This paper covers the history of the relationship between the advertising industry and the government and provides an analysis of the influence of the public advertising market and cold war institutions on the industry. I find that the government, by acting as a customer of last resort, conserved the industry structure and made it possible for the Swedish advertising cartel to survive World War II, and for the large firms that dominated the industry during most of the century to survive the dissolution of the cartel in 1965.

Does war destroy business? A review of empirical publications

“…T A B L E 2 Short listed 97 studies for further review (from 33 journals, 1 book chapter and 1 report) T A B L E 3 Details of shortlisted 97 studies from different categories and respective journals Business History and Economic History (38) Business History (6) (Deconinck et al, 2016) (Kaen, 2011). Empirica (Ollerenshaw, 1999) (Panayi, 1990) , (Lakomaa, 2021)…”

“…The Hispanic American Historical Review 1 Vand. J. which helped the industry retain its structure and the industry cartel to survive the adverse effects of the war (Lakomaa, 2021). Similarly, war effects on Australian military servicemen have also not been as devastating as many historians suggest.…”

“…World War II adversely affected the civilian advertising market in neutral Sweden. The government acted as a client of last resort when the advertising industry showed cooperation, which helped the industry retain its structure and the industry cartel to survive the adverse effects of the war (Lakomaa, 2021). Similarly, war effects on Australian military servicemen have also not been as devastating as many historians suggest.…”

Government public relations, audiovisual communication and the informalisation of Sweden

“…Drawing on this example, Expanded Public Information called for a modernised and more active form of public information. During the 1970s and 1980s, meanwhile, economic historian Erik Lakomaa observes that advertising became ‘an integral part of public sector activities, and government agencies and municipalities became major buyers of media and advertising services’ (Lakomaa, 2021: 479). This development was amplified by the establishment of the Board of Public Information (1971–1981) as well as an increase in the number of information offices and public relations departments within government agencies (Larsson, 2005: 77), a tendency which also has been noted internationally (Maartens, 2016).…”