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.