KETCHUM TO 'CHANGE FACE OF MEDICARE'

Ketchum has won a competitive review to oversee a multi-faceted campaign to "change the face of Medicare," according to Monica Marshall, senior VP of corporate and gov't marketing for the Omnicom unit.

Marshall told this NL the goal of the one-year, multi-million dollar assignment, which is under the Centers for Medicare & Medicaid Services, or CMS, is to reshape the image of the federal healthcare system for the elderly and disabled. "We want to get the word out that Medicare is not just a claims processing division," she said.

Billings for ads and PR run about $25 million, said Rob Sweezy, director of public affairs for CMS, which is a division of the U.S. Dept. of Health and Human Services.

Under government ID/IQ rules, four firms were qualified to pitch for the work - AED, Ogilvy PR Worldwide and GCI Group are the others. Sweezy said Ogilvy and GCI pitched the work, but he wasn't sure about AED.

Ketchum, which has done social marketing work for CMS in the past, is officially charged with creating and developing a PR overlay campaign to educate beneficiaries and promote the agency's 1-800-Medicare line and medicare.gov. The firm will manage ad, media buying and research work by Campbell Ewald, National Media, and Public Opinion Strategies, respectively.

IPG DRINKS COLOMBIAN

The National Federation of Coffee Growers of Colombia gave Interpublic its $9 million ad/PR account.

Colombia hired IPG's Sawyer/Miller Group in 1985 for damage control work. The plan was to overturn the perception that it was corrupt, and promote it as an eager U.S. ally in the war on drugs.

The Federation will use IPG units Weber Shandwick, Sawyer Miller Advertising, KRC Research and Future Brand in New York; Powell Tate in Washington, D.C., and Rogers and Cowan in Los Angeles.

DDB Worldwide created the Federation's "Juan Valdez" character for the coffee growers. It handled the account from the late `50s to 2001.

VP-corporate communications posts are open at Boeing, Carrier Corp., Pfizer and Ernst & Young.

The searches are being handled by Korn/Ferry International: Bob Woodrum in New York; Nels Olson, Washington, D.C., and Don Spetner, Los Angeles. Main contact is Pepper Lunsford, D.C.

CLARKE EXITS PENTAGON

Pentagon spokesperson Torie Clarke is leaving her assistant secretary of defense for PA post on June 20 for personal reasons. Clarke, who had headed Hill & Knowlton's Washington, D.C., office, called her tenure as advisor to Defense Secy. Donald Rumsfeld "the best professional experience of my life."

Rumsfeld credited Clarke for developing "countless new methods to tell the story of our fighting forces." She also helped bring their "courage, dedication, and professionalism into sharp focus for all Americans," said Rumsfeld's statement.

Lawrence Di Rita, special assistant to the Secretary of Defense, will take over for Clarke on an interim basis.

Clarke is the fourth high-level woman communicator to depart the Bush Administration.

She follows Karen Hughes, a top White House aide, Mary Matalin, who counseled Vice President Dick Cheney, and Charlotte Beers, propaganda czar.

9-11 FAMILIES HIRE WASHINGTON GROUP

Ketchum's The Washington Group has been hired by 9-11 Families United to Bankrupt Terrorism to monitor Congressional hearings and activities related to the financing of terrorism.

The group has filed a $116 trillion class action suit last year seeking compensation from three Saudi princes, Islamic charities, Saudi bin Laden Group, and various banks for their alleged connection with the terror attacks. The organization is funded in part by its law firm Motley Rice.

The Washington Group team includes Carlos Bonilla, who joined the firm in March after serving as President Bush's assistant secretary for economic policy; David Crane, a former aide to Sen. Trent Lott; Missy Edwards, ex-director of development for the National Republican Senatorial Committee, and William Burke, an aide to Rep. Patrick Kennedy.

QORVIS RAKES IN $1.4M FROM SAUDIS

Saudi Arabia, which supplied 15 of the 19 Sept. 11 hijackers, paid Qorvis Comms. $1.4 million during its latest six-month federal reporting period.

Saudi Arabia broke ads in the top 25 U.S. markets this month to give Americans a "better perspective" of the Kingdom, and highlight its "steadfast commitment" to fighting terrorism. The ads also depict Saudi Arabia as a "modern nation" with "normal people" who are struggling against the scourge of terror.

SEC CHIEF RAPS FINANCIAL PRESS

Securities and Exchange Commission chairman Bill Donaldson mounted the bully pulpit and urged the media to examine the way they cover financial news during his speech at the New York Financial Writers' Assn. awards dinner on June 5.

"At the risk of literally biting the hand that fed me this evening," Donaldson told the assembled reporters to examine the role they may have played in hyping the "bubble economy that came to an abrupt halt."

Many media got caught up in the boom of the `90s, according to the SEC chief. "Even those with the highest standards got carried away as the band played faster and faster."

The market boom "coincided with an unprecedented growth and evolution of new media outlets and consumer dependence on the real-time reporting of the financial news."

As the stock market became more accessible, Donaldson said many people who had never owned stock began to dabble in the market.

The press, in turn, fed them "the latest hot tips and buzz about future market movers, perhaps contributing to the false sense of confidence that plagued many investors," said the chairman.

Donaldson believes the corporatization of the media also fed some of the stock market hysteria.
He said corporate entities must produce a product-whether electronic or print-that satisfies the demands of particular market segments, as well as general mass audiences.

Tensions developed associated with "delivering a quality product within the context of commercial demands."

His message to the media: "Turn around the looking glass and examine the way you do your own business, and how you can learn from the past."

MURPHY HEADS PR AT EADS

Diane Murphy, an aerospace and defense veteran who also managed PR and ads for 30 high-profile political campaigns, has left her D.C. firm for a top post at European Aeronautical Defense and Space Co., the number two aerospace and defense contractor in the world. Murphy takes on the role of VP of communications and PR for North America at EADS, which includes plane maker Airbus.

From 1977 to 1987, before founding her own firm, Federal City Comms., she worked at Smith and Harroff PR, managing communications for campaigns including Sen. John McCain (R-Ariz.), Gov. John Sununu (R-N.H.) and Rep. Olympia Snowe (R-Me.), among others.

She set up Federal City in 1987 with clients like Military Times Publishing Co., IMAX Corp. and Lockheed Martin.

Murphy began her career at the Republican National Committee and was a press aide to Rep. John Rhodes (R-Ariz.) for four years when he was House Minority Leader.

GOTHAM PROFILES 'PR HEAVIES'

Gotham magazine's summer edition profiles 15 New York "PR heavies" with questions from "Can clients call you at 3 a.m.?" to "What is the worst thing about your office?" Among the high-profile PR pros the magazine queried are Dan Klores, Lou Hammond, Lizzie Grubman and Steven Rubenstein.

Grubman told the magazine she finds summer weekends in New York quiet and relaxing and said she wants to get more corporate clients and extend the brand marketing division of her firm, Lizzie Grubman PR.

Rubenstein, EVP of Rubenstein Assocs., says his dream assignment is to convince the Academy Awards to come to New York. Klores says clients are forbidden to call him after 10 p.m., ever since Puff Daddy rang him at 2:45 a.m. after being arrested in connection with a well-publicized shooting at the China Club. Asked what client he wished he had, Klores quipped: "Howard Rubenstein."

Susan Magrino, chairman/CEO of Susan Magrino Agency, says the best event she's ever planned was the 75th anniversary of Time, which featured President Clinton as a guest speaker and "everyone who had ever been on the cover."

Desiree Gruber of Full Picture, Mathew and Louise Evins of Evins Comms., and Leslie Stevens and James LaForce of LaForce & Stevens, are among others profiled and photographed in the magazine's "Deep Dish" section.

DAVIDSON WINS SCOTLAND

Laura Davidson PR has picked up the Scottish Tourist Board, VisitScotland, account in a competition with Ruder Finn, M. Silver Assocs., Quinn & Co. and Nike Comms. The firm is to pitch Scotland's tourism "brands" (city breaks, culture, golf and genealogy). The firm will organize press trips and represent Scotland at travel shows in the U.S. and Canada.

CEO Laura Davidson said the first-year budget of the three-year program is $110K. LDPR has worked for the Australian Tourist Commission, Novotel North America, and Carenage Bay Resort.

QUIZNOS REVIEWS FIRMS

Sandwich shop chain Quiznos is reviewing its various outside marketing communications firms, including ads and PR, Stacie Lange, VP of communications for the Denver-based franchiser, told this NL.

Ogilvy PR Worldwide's Denver office is the PR incumbent and is participating in the review, which encompasses a total of 18 firms, Lange said.

In addition to Ogilvy, incumbents are Cliff Freeman & Partners (ads), Zipatoni Co. (in-store promotions), and Initiative Media (media planning and buying). Total billings are in the $25 million range.

Linda Smith, who was worldwide group director of Johnson & Johnson's baby franchise growth platforms and marketing director at McNeil Nutritionals, has joined Ogilvy PR Worldwide/D.C. as senior VP.

PR PITCHES GET LOST IN JUNK E-MAIL

Junk e-mail is making it harder for publicists to get information to reporters.

Ray Cormier, who is travel editor of The New York Times, said he has stopped opening any e-mail that looks like it might be an ad. He advised the publicists to make sure the subject line in their e-mail pitches says something different, or else it may never get read.

"If it doesn't mean anything, I don't open it," he told about 120 publicists who attended the Publicity Club of New York's meeting on June 10. He said the subject line should be "specific, clear and concise."

Cormier was on a panel with Valarie D'Elia, travel reporter for NY1 News and WOR Radio; Melissa Bradley, travel and feature editor of Town & Country magazine, and Paul Glader and Paula Szuchman, who cover travel for The Wall Street Journal's "Weekend" edition.

Cormier said publicists should target their travel feature ideas and stories to fit the Times' preference for "destination oriented" articles. "Know what we do," he told the publicists.

The travel section's e-mail address is [email protected]. The fax number is 212/556-1604.

"If you mark it for a department or column, it will get to those people," said Cormier, whose daughter is a publicist at Ruder Finn.

Travel Section Is Smaller

Cormier said the weekly travel section has dropped to an average of 19.4 pages, down from 22.8 pages in 2002, which was one of the worst years ever.

The fewer number of pages, which is due to a drop in ad linage, is making it more difficult for publicists to get stories in the section, he said.

Szuchman, who joined the Journal in March from The New York Post, where she was deputy travel editor, writes travel features for the Weekend section, which is published every Friday.

She welcomes story ideas and phone calls from publicists.

She said PR pitches are more effective when they are not just based on what their client is doing, but in context with the rest of the world.

While she does not mind getting phone calls, she prefers to get information by fax (212/416-3521).

Szuchman said she has gotten a lot of wrong information from publicists in the past, but she still relies on them for news and to give her access to presidents and CEOs of companies as well as to provide statistics to back up their hypothoses.

Do Your Homework

Glader, who writes a travel column, likes to work with publicists on stories. He said they should come to him only after they have done their homework.

Publicists can be helpful in providing facts for a story, he said, citing as an example a recent article he wrote about bed bugs, which was pitched to him by a publicist for Orkin, the pest control company.

Glader said he got pages of facts for the story, which never got published because the editor felt it was too negative.

Bradley Looks for Adventure

Bradley, who also has a problem with too many junk e-mails, said publicists should use regular mail to deliver information and pitches to her. She is in T&C's editorial offices, which are located at 1700 Broadway, New York, NY 10019.

Since T&C covers a small segment of the travel market, Bradley said it is important for publicists to take the time and effort to target their pitches to a very select reader who is totally passionate about travel, and views it as a lifestyle and adventure.

D'Elia, who handles travel reports for several TV and radio outlets, is especially interested in getting information about travel deals and trends for her reports on NY TV1, a local cable news channel, and a once-a-month segment that she does for CNBC's "Squawk Box."

The travel deals have to be "very, very good" to get on the air, D'Elia said.

She also books guests for interviews for her syndicated two-hour live listener call-in program about travel that she hosts every Sunday evening on WOR radio, which is based in New York.

She urged publicists should check out NY1's website to read the last 10 travel pieces she has done.

D'Elia and Bradley said they will go on press trips, but Cormier and the two Journal reporters said not allowed to take sponsored trips.

PCNY REELECTS HIMLER AS PRESIDENT

Peter Himler was reelected president of the Publicity Club of New York for the third year in a row. imler is a managing director of Burson-Marsteller's U.S. corporate financial practice and executive VP of media relations.

Beginning with Himler's two predecessors, Doug Simon and Howard Bailen, the 63-year-old club, which fell on hard times in the late '80s, has gotten back on a solid financial footing through increased membership and greater attendance at meetings and club-sponsored events.

The club's bylaws prohibit anyone from serving a fourth consecutive term as president, according to Bailen, who chaired the nominating committee and oversaw the election on June 10.

Lisa Kovitz, who is a managing director of B-M's U.S. brand marketing practice, was reelected first VP/programs.

She will continue to oversee the monthly "Meet the Media" luncheon programs, which have been attracting sell-out crowds for the past two years.

The other reelected officers were: second VP- Eric Wright, who is employed by D.S. Simon, a broadcast PR firm; treasurer-Nancie Steinberg, who manages PR for the City of Hope, and secretary- Suzie Pileggi of Weber Shandwick.

(Media news continued on next page)

LENO BEATS LETTERMAN IN VIEWERSHIP

A much larger audience is watching Jay Leno's " Tonight Show" than David Letterman's "Late Show."

More than 6.3 million viewers watched Leno's program on NBC during the May sweeps period compared to four million viewers that watched Letterman on CBS, according to Nielsen.

Nielsen's report also shows Leno topped Letterman by more than 60% among viewers 18-49 years old, a coveted demographic group. In New York, about 299,000 viewers watched Leno last month on Ch. 4, as compared to 197,000 who watched Letterman on Ch. 2, according to Nielsen.

Adam Buckman, The New York Post's TV critic, said Letterman's producers get more viewers by booking "more quirky guests."

"Few things on TV are more dull than movie stars promoting their latest pieces of Hollywood-produced junk," said Buckman, who also believes Letterman should spend more time with reporters. "Leno does it-why can't Dave?" he asked.

KENO TWINS GET THEIR OWN SHOW

Leigh and Leslie Keno, the 46-year-old twins who are the star appraisers on "Antiques Roadshow," which airs on PBS TV stations, are getting their own series.

Production has begun on the series, which is called "Find!" The first of 26 planned half-hours is scheduled to premier Oct. 6 on PBS stations.

Leigh Keno, a New York-based antiques dealer, said the show will feature decorating tips from experts on how to select and coordinate antiques.

Production of Find! is being supervised by Russ Morash, who is executive producer of "This Old House" and "Ask This Old House."

N.Y. DAILY NEWS SHIFTS EDITORS

Dean Chang was appointed metropolitan editor at The New York Daily News. Previously city editor, he has replaced Dick Belsky, who was named managing editor for features.

Jere Hester, formerly night city editor, was named city editor.

PEOPLE

Diane Silberstein, 46, who has been publisher of Yahoo! Internet Life Magazine, The New Yorker and Elle, was named publisher of Playboy, replacing James Dimonekas.

Rosemary Ellis, 43, has joined Rodale Inc. as editorial director of Prevention magazine. She was editorial consultant.

Rick Kaplan, who rejoined ABC in February, was named senior VP of ABC News. He will oversee "Nightline," "This Week," all editions of "World News Tonight," "World News Now" and "World News This Morning" as well as ABC News' political unit.

James Pavia, previously editor-in-chief of National Jeweler, was named editor of Investment News, a national weekly newspaper for financial advisors, published in New York by Crain Communications.

Stuart Kemp, previously European film editor, was promoted by The Hollywood Reporter to U.K. bureau chief, and Charles Masters, formerly a Paris-based correspondent, has been moved up to European features editor. Kemp is based in London, and Masters remains in Paris.

Art Cooper, 65, who retired June 1 as editor-in-chief of GQ, died June 9 at New York Hospital after suffering a stroke at the Four Seasons restaurant.

NEW MAG COVERS IP COMMUNICATIONS

Richard Grigonis, formerly of Computer Telephony Magazine, was named editor-in-chief of VON magazine, a new publication for people involved in the IP communications industry and their customers.

The magazine, which is scheduled to make its debut in September, was created by Jeff Pulver, founder/CEO of pulver.com and the VON Conferences.

Grigonis said the magazine, which will address industry issues, will have a special section called: "Products that Work at Work."

Editorial offices are located in Melville, N.Y., at 115 Broadhollow rd., #225.

Grigonis, who is temporarily working out of his home, can be reached at [email protected] or at 973/497-1196.

COVER STORY TIED UP PR FIRM FOR A YEAR

Business Week's seven-page "Cover Story" report on Samsung Electronic Co. in the June 16 number was an ongoing project for HWH PR for several months. Lois Whitman, who runs the New York-based PR firm, said the firm's staff spent "over a year" working with BW on the story.

"We had to respond to at least 100 questions that were e-mailed to us by the three reporters who were assigned to do the story" about the achievements of the company, which just six years ago was in financial trouble, said Whitman.

HWH's staff also helped in arranging face-to-face interviews with Samsung's top executives in the U.S. and South Korea for BW's three correspondents: Cliff Edwards, in Ridgefield Park, N.J., Monn Ihlwan, in Seoul, and Pete Engardio in Suwaon.

PLACEMENT TIPS

Victoria's Secret model Frederique, who was last seen on "Celebrity Mole," will host a show for Scripps-Howard's Fine Living Network.

"World Class with Frederique" is described as a half-hour weekly magazine series "for sophisticated viewers seeking an authoritative resource to take their personal experiences to the next level."

The show is scheduled to make its debut this fall.

A dirty deal has been struck among PRSA leaders that illustrates the selfish politics that mar the governance of PR's "premiere" organization.

The 21 past presidents who last year signed a petition blocking the move to let students join PRSA directly (instead of via its Student Society) are backing decoupling of Assembly delegates from APR this year in return for the student initiative again being blocked.

Selfishness was behind keeping the initiative off the agenda last year. The PR profs in the 240 colleges with PRSA-approved courses do not want students in the other 3,700 colleges to benefit from PRSA.

They feel that if students want to get into PR, they should transfer to one of the PRSA-approved schools and enroll in their courses. They don't want English, history, etc., majors from other colleges learning about PR and PR job opportunities and taking away scarce jobs from their PR students.

There are 8,000 members of PRSSA but at least eight million undergrads, many of them majoring in liberal arts and not having clear career goals.

Some PR employers favor such grads, feeling they can easily teach them the rudiments of PR, especially if they have spent four years taking difficult courses.

PRSA is up to its old anti-competition tricks. It got hit with a formal Federal Trade Commission order in 1977 for banning members from pitching each other's accounts and banning contingency fees.

We call on the board to live up to its promise not to block competition in any way. It should immediately decouple APR from all office-holding including board posts, allowing 80% of its members to compete again. It should immediately open itself to direct student membership.

The board has sweeping powers and does not have to wait until October for Assembly action. That is a cop-out.

When we asked PRSA president Reed Byrum about the student motion, he said that the 2003 Assembly already had a "full plate" in considering decoupling the Assembly from APR. This is odd. The 294 delegates are all APR, meaning they're supposedly the best and the brightest of PRSA's members. Yet they can only handle one issue at a time in a full day?! The APR delegates also seem to be among the poorer paid. Jane Dvorak, president of PRSA/Colorado, told a leaders' teleconference June 11 that the cost of attending a national conference is "exorbitant." This is the real reason 25 chapters were not represented last year, and not because there is any shortage of APRs, she said.

Conference costs for a delegate, who must stay two extra nights, can easily top $2,000. They pay the full registration fee of nearly $900. Colorado, sixth biggest chapter with 493 members, led the fight against decoupling last year. Byrum agreed that many delegates are in low paying jobs. Dvorak also noted that many APRs have lost their jobs and are now self-employed.

PRSA members see the Society in terms of the titles they obtain from it, which are used in new business pitches, resumes, biographies, seeking promotions, etc. With the departure of so many corporate members, the bulk of members are now in healthcare, non-profit, education, federal/local government, armed forces and similar jobs where titles and credentials are key.

PRSA generates 7,400+ titles and awards, including 2,100 for the 110 active chapters (average of 20 titles each); 270 national committee and board titles; 17 national board members; 17 Foundation; 50 district; 170 sections; 340 Fellows; 4,300 APRs, and 196 awards (presented June 5). Chapters also give awards.

This is what the actives get from PRSA. They only want to hear good things about the Society. They are not interested in reforms or changes. But they are fiercely protective of their titles and awards, particularly their APRs. This is why PRSA is in such a battle with itself over decoupling.

Strong feelings in chapters across the U.S. are also aroused by any hint favoritism to PRSA/New York. It is keeping a low profile in the decoupling fight because any hint that this is a New York initiative would doom it.

The chapter, ousted from h.q. 12 years ago, has declined in numbers since then despite the rich New York PR/IR market. It lost its No. 1 title to the "National Capital" chapter which actually draws most of its members from Virginia and Maryland. Eleven board members work in Virginia, three in Maryland and six in D.C., indicating the bulk of its members are from Virginia. The PRSA h.q. staff is an oasis of prosperity (steady at 48) although it's carnage outside in the PR job market. But most chapters don't mind as long as no senior New York PR pros work there.

An example of title mania is in the 2003 PRSA members' directory where, for the first time, the listing of committees and boards has been put right after national board members and ahead of staff members and the Foundation board.

The listings have been expanded from two to five pages.

Fourteen new "senior counsel" titles have been created for Prof. Maria Russell (who got nine of them); Cathy Lewton, three, and Ofield Dukes, two. The counsels are given top billing over the regular chairs and co-chairs.

Where there used to be one chair, there are now two "co-chairs" for seven committees and three "co-chairs" for two.

--Jack O'Dwyer