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HOLLERAN
HEADS COKE PR
Charles Holleran, managing director of global communications,
PricewaterhouseCoopers, will join Coca-Cola in June as chief
communications officer.
Holleran,
55, succeeds Randy Donaldson, who was shifted to Coke/USA's
executive offices in January.
Coke has suffered many PR hits in recent months including
the short-lived tenure of former CEO Douglas Ivester and
its slow response to contamination problems in Europe. It
also had problems with its bottlers and was hit with a racial
discrimination suit. Facing lower profits, it announced
a 20% staff cutback in February. At least one major school
system (in Wisconsin) is expected to cancel an exclusive
Coke contract this summer.
The
stock, which was in the high $80s in 1997, is in the low
50s.
Don
Spetner, VP of corporate communications at SunAmerica, is
leaving May 15 to start his own consultancy.
SPETNER
OF SUNAMERICA TO OWN FIRM
Spetner
will set up an office in Los Angeles and specialize in media
relations, brand positioning and product launches. He already
has three clients set up, but would not disclose their names.
"This
is something of a lifestyle change for me," Spetner
said.
Along
with many of his colleagues at SunAmerica, Spetner was a
beneficiary of AIGs acquisition of the company in
January 1999. He claims his SunAmerica holdings have gone
up 11,000%.
Spetner
joined SunAmerica in 1997, after working at Nissan North
America for eight years, first as corporate manager and
moving up to director of corporate communications.
From
1987 to 1989 he was VP/COO at GreyCom. He has also worked
at Bozell, Jacobs, Kenyon and Eckhardt and Ruder Finn.
A
member of PRSA and the Arthur Page Society, Spetner is the
author of the 1993 edition of The PR Writers Handbook.
At
his new firm, Spetner says he will sometimes take payments
in equity in lieu of cash.
PUTIN
RAIDS RUBENSTEIN'S RUSSIAN CLIENT
Federal
agents of Russian President Vladimir Putin on May 11 raided
the corporate offices of Media-MOST, the country's largest
private media organization, taking boxes of documents, tapes
of TV programs and equipment.
Putin
said the corporate offices of MOST, which uses Rubenstein
Assocs. for PR, do not have the right to violate laws and
reiterated his commitment to a free press.
Yuri
Luzhkov, mayor of Moscow, told the New York Times May 12
that one reason for the raid was that MOST was disseminating
"information which authorities do not like." A
member of the Russian Parliament said the "military
operation" was "an alarming fact, a demonstration
of force that is undermining the authority of Putin, who
just took office proclaiming the ideas of democracy."
WPP
ACQUIRES Y&R (INCLUDING B-M)
WPP
Group is acquiring Young & Rubicam for $4.7 billion
in stock, placing the No. 1 and No. 2 PR operations, Hill
and Knowlton and Burson-Marsteller, in the same house.
B-M
reported $274M in revenues in 1999, up 6.3%, and H&K
reported $243M in revenues, up 18%.
Neither
agency supplied accounting statements or other backup to
support these claims. The "Council of PR Firms,"
which allows agencies to include advertising commissions
to a limit of 49% of the total, collected the figures and
supplied them to media. Ten of the 15 biggest "PR"operations
gave their figures only to the CPRF.
Early
comment from PR pros was that WPP is known for closely supervising
any firm that it acquires. Some thought the combination
of two advertising/PR giants had little to do with the traditional
practice of PR.
They're
in a Different BusinessSchwartz
Gerald
S. Schwartz, who heads G.S. Schwartz & Co., New York,
said the WPP/Y&R deal "means nothing to me and
the rest of the PR field outside of the global PR firms."
"The
giant PR firms are in a different business from everyone
else," he said. They have gone heavily into "management
consulting and integrated marketing for clients," he
added.
"I
love what I m doingpublicity, special events, seminars,
speeches, etc.," he said. "Our job is to build
relationships with our clients and the press," he added.
Schwartz
said he would not want to be employed by one of the conglomerate
PR operations if a recession should hit. He also feels the
big firms have "lots of fat" that could be trimmed.
Jobs
Are Chasing People
Some
agency PR pros pointed out that the job market is very tight
because of the continuing economic boom and that H&K
and B-M will have to assure pros that the "cultures"
of their firms will endure and that their jobs are secure.
Harry
"Hud" Englehart, COO of Kemper Lesnik, Chicago,
and former H&K Midwest GM, said the merger of WPP and
Y&R means good things for the merged firms and for PR
as a whole.
"It
s going to make one powerhouse of an organization from a
PR perspective," he said. "I think it helps make
PR an equal sister to advertising." (continued on page
2 below)
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WPP
ACQUIRES Y&R (continued
from page 1)
The
combined revenues of WPP and Y&R would have been $5.2B
in 1999, which would have put it ahead of Omnicom ($5.1B)
and Interpublic ($4.6B).
OMC
and IPG are still close to or even ahead of WPP in 2000
based on first quarter revenues and IPG's acquisition of
the $500M NFO Worldwide.
Y&R
stockholders will get 4.175 new WPP shares for each Y&R
share, valuing the 72 million outstanding Y&R shares
and options on 19 million at $53 each for a total of $4.7B.
The original deal was worth $5.7B but the stocks of both
firms dropped initially.
Thomas
Bell, head of Y&R and former head of B-M, will only
stay on until the integration of Y&R into WPP is completed
in the fall. Bell is now chairman of Y&R.
Some
Negative Comments Made on Web
Some
negative comments on the deal were posted on the Y&R
message board on Yahoo.
"This
deal for the sale of YNR stinks," said one anonymous
message, adding the value of Y&R is in the $75-$80 per
share range. Others looked for $60-$65. "The YNR board
is stabbing shareholders in the back," said another
message.
"Once
again, the old concept of building value in the interest
of the shareholders is forsaken while the golden parachutes
rain down on Madison Ave.," said a third message.
Salomon
Smith Barney analyst William Bird told Reuters that the
price was "somewhat disappointing" and was a "mediocre
deal" for Y&R stockholders. If talent "walks
out the door," then the buyer has overpaid for the
asset, Bird further said.
Analyst
Mitch Kurz, pointing out Y&R stock was in the $70s three
months ago, told Advertising Age that Y&R stockholders
should be disappointed since WPP paid twice as much for
Ogilvy. Jerry Della Femina, AA columnist who had sold to
non-U.S. firms several times, predicted that "at least
one-third" of the 17,000 Y&R employees worldwide
would be looking for a job in the next two years.
Della
Femina said that in 1978 he tried to buy a new shop called
Saatchi & Saatchi in London but soon realized that the
way the deal was being structured, S&S would be buying
him.
The
AA article repeatedly referred to WPP head Martin Sorrell
as "Sir Martin," recognizing the knighthood that
has been given to Sorrell. WPP once sued AA in Queens Court,
London, over a story AA wrote about WPP s finances. There
were no further stories on the suit, which was dropped.
Not
'Sir Martin' to New York Post
The
New York Times refers to Sorrell as "Sir" but
not the New York Post or AdWeek, in keeping with the traditional
American distaste for titles. The Wall Street Journal does
not use such titles.
The
Post, quoting "industry sources," said Sorrell
is "likely to dump a number of executives who ve crossed
swords with him elsewhere in the past," naming Chris
Komisarjevsky, president/CEO of B-M, and Graham Phillips,
head of Y&R Advertising. Komisarjevsky was at H&K
and Phillips at Ogilvy & Mather when Sorrell took them
over. "There was a lot of personality clashing between
them and Sorrell and they split to get away from him,"
said the Post.
At
$53 a share, Y&R stock and options held by Bell are
worth about $60M. Biggest benefactor from the deal is Y&R
chairman emeritus Peter Georgescu, whose stock is worth
about $90M.
The
interpretation by Y&R executives and WPP was that Y&R
needed to be part of a bigger holding company in order to
compete and that it was bound to be sold, sooner or later.
However,
critics pointed out numerous recent negative developments
at Y&R which resulted in a sudden 30-point fall in its
stock price last month.
Y&Rs
$800M Citibank account is under review and could be lost;
it withdrew from the battle for the $114M U.S. Army account,
which it had since 1987, and its 6.8 million shares in Luminant
went from $300M in December to $60M when the stock crashed
from $52 to $8.50 as of May 15. Critics said it was just
a good time for the top people to bail out.
Y&R
also had other dot-com investments that have become problematical
in investors eyes.
Like
Auto Company ConsolidationBell
Bell
told the Y&R annual meeting May 12 that the ad industry
consolidation is similar to what happened to the auto industry.
"There were 40 car companies in the 1920s but only
three now," he said.
A
creative director with 25 years at Y&R told Bell that
morale needed "rebuilding" at the New York office.
He said staffers were upset because of press reports that
executives are haggling over their buyout offers. The employee
wanted to know what guarantees exist for middle management.
Bell
said he had talked to hundreds of staffers about the merger
and did not detect a morale problem. He said most supported
the merger with WPP. Bell said WPP picked 12 Y&R executives
and made sure they would stay with the company for two years.
The
customary reel of commercials was shown and it was longer
than the usual ten minutes. Chief creative officer Ed Vick,
commenting on the length, said, "I figured, what the
hell, it may be our last." He praised Bell for "doing
the right thing" for Y&R.
O'DWYER'S
DIR. OF PR FIRMS LISTS 2,400
The
2000 O'Dwyer's Directory of PR Firms, which will be published
in June, lists a record 2,400 PR firms and carries 369 agency
statements and 359 logos of the firms.
Agencies
that take agency statements and logos are placed without
charge on the O'Dwyer website.
Agencies can be added to the website at any time during
the year. The website, for the first time, carries color
pictures and color logos for firms that have supplied them.
The Directory, now in its 31st year, lists more than 19,000
clients of the firms. Those placing orders now will receive
the book directly from the printer.
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MEDIA NEWS/JERRY
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FOOD
NETWORK WANTS TO TRAVEL
The
Food Network has gotten the travel bug, and has begun "going
around the world" to shoot programs on location for
primetime viewing.
Bob
Tuschman, VP/production, who spoke April 4 at a Publicity
Club of New York lunch, urged the 130 publicists who attended
to call the network s senior producers directly to discuss
arranging a trip and story ideas.
"I
am not the right person to call," said Tuschman, who
oversees all in-house productions.
Gives
List of Producers
He
provided this list of producers to call: Craig
Anderson, "In Food Today," 212/649-6234,
fax: 869-8310; Erika Bishop,
"Bill Boggs Corner Table," 649-6279, fax: 398-9323;
Georgia Downard, "Cooking
Live" 649-6338, fax: 649-6266; Irene
Wong, "Melting Pot," 649-6207, fax:
549-6266; Karen Katz, "Emeril
Live," "Essence of Emeril," 649-6265, fax:
869-8337; Mark Dissin,
"Sweet Dreams," 649-6230, fax: 649-6266; Jerry
Liddell, "Hot Off the Grill With Bobby Flay,"
"Grillin and Chillin, " "Molto Mario,"
212/549-4495; Julia Harrison, "East
Meet West," 203/762-1121.
All
of the producers work in TFN's home office at 604 W. 52nd
st., New York, NY 10019.
While
they can't accept free travel from companies, "we would
talk to a tourist board" about underwriting trip expenses,
said Tuschman.
He
said the Network's "how to" chef shows, which
air during the daytime hours, will continue to be shot in
the New York studio.
Fabricant
Welcomes Calls
Florence
Fabricant, a longtime food writer/columnist for The New
York Times, welcomes calls from food publicists.
She said she has come to rely on them for fodder for her
columns and reports.
She
is especially receptive to publicists who provide her with
information that is not "one-sided," and know
"my interest is news for my readers."
Fabricant
said phone calls are okay as long as the publicist is not
calling to check on a press release.
The
best time to call her is on Wednesday, which is the day
the food section"Dining In"appears.
Mondays and Tuesdays are "tough" days, said Fabricant,
who said she returns all her calls, except messages saying:
"I have something important to tell you. Please call
me."
Fabricant,
who likes to get product samples, asked the publicists to
check with her before sending them to find out if she wants
to get it, and whether the package should be sent to the
office or her home.
Zuckerman
Likes Gadgets
Jocelyn
Zuckerman, senior editor of the "Good Living"
section in Gourmet Magazine, said her interests are new
food products and kitchen gadgets.
She
prefers to be pitched by E-mail and a follow up phone call.
She gets lots of press releases.
Zuckerman
said staffers can t accept press trips, but they are permitted
to negotiate a press rate.
Louise
Kramer, a reporter for Crain s New York Business, who just
joined the weekly paper from Advertising Age, covers arts,
restaurants, hotels and tourism beats.
Kramer
is trying to get used to working with PR people. Most of
her sources have been ad agency and company ad executives.
She
suggested publicists prepare some background information
before pitching her a story.
She
emphasized that Crain s plays up the "financial aspects"
in its news reports, and limits its coverage to businesses
in the greater New York area.
Kramer
takes phone calls, but she believes e-mail is the best way
to pitch ([email protected]).
NYT
REVAMPS LOCAL SUNDAY SECTION
The
New York Times has redesigned its Westchester County, N.Y.,
Sunday section.
The
new local section, which debuted May 7, features in-depth
coverage of local issues and events, up-to-date business
news, an expanded calendar of the week s theater, music,
dance, art and film schedules, and a new column on suburban
life called "County Lines."
The
section will also include wine and home design columns,
restaurant reviews, and sports coverage.
PLACEMENT
TIPS ______________________
The
New York Times has started a new column called
"Mixing Media" that will be anchored inside the
Wednesday food section, "Dining In."
Michelle
Slatalla, who will write the monthly column, said she will
be "looking at food on TV, on radio, on the Internet
and in magazines."
WineToday.com,
an online publication from the Internet division of The
New York Times Co., has begun a new special section featuring
travel stories, tips and recommendations on the most interesting
wine regions.
Leslie
Sbrocco, editor-at-large for WineToday, has joined San Francisco-based
KPIX-TV "Evening Magazine" TV program as a contributor.
Foodie's
first issue has been published by Morpheus Publishing in
New York.
The
publisher expects to sell 4,000 on newsstands and mail another
25,000 to a rented list of names.
The
new quarterly, with Sarah McLachlan on the cover, is geared
toward 27 to 35-year-old men and women who do not cook.
Gus
Floris, who is editor and founder, said publicists can pitch
him at 212/889-9036 as long as the information is food-related
and is appropriate for the target audience.
Floris
and four staffers, who are based in 527 3rd ave., will move
to 27 W. 20th st. on June 1.
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MEDIA NEWS/JERRY
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PLACEMENT
TIPS _______________________
"Cross
Dressing" author Bill Fitzhugh made a deal
with The Seagram Co. for product placement within his book.
Brill
s Content reports in the June issue that Fitzhugh rewrote
scenes to include Seagram s products and even made a boxed
set of vintage scotches an important part of a character
s life.
The
magazine also looks at how marketers are finding ways to
use digitized images in movie product placements to seamlessly
integrate products even within the action of online
video games.
Inside.com,
an entertainment and media website that just
started, will entertain pitches for new books.
Sara
Nelson, who heads the book unit, wants to get information
about the people behind the books the authors, the
agents, the editors, the publishers, the back office workers,
how the deals are made, where they are promoted and who
is making the movie.
Inside.com,
which is owned by Powerful Media, is located on West 26th
st., New York.
Internet.com
is interested in news about new websites and
important personnel moves, says managing editor David Needle,
who runs the Silicon Valley news bureau (siliconvalley.internet.com).
Needle,
46, who was previously West Coast bureau chief for InformationWeek,
is essentially editor of the site, which also has bureaus
in Boston (boston.internet.com),
Washington, D.C. (dc.internet.com),
and New York (atnewyork.com),
which covers Silicon Alley.
The
site was started by Westport, Conn.-based Internet.com Corp.
Needle
is based at 601 Gateway blvd., #1140, South San Francisco,
CA 94080. 650/745-3647; [email protected].
Robyn M. Sachs, president
of RMR Marketing, Rockville, Md., said publicists should
consider their appearance when meeting with the media.
"Today,
many firms have loosened their dress code and if yours is
one of them, great. Just remember that the editor s culture
may adhere to coats and ties. Your appearance should match
that of the editor you are visiting," said Sachs.
MOVED:
Automobile Magazine
has moved to 260 Madison ave., 8th floor, New York, NY 10016.
212/726-4300; fax: 917/256-0014.
BOSTON
REPORTER RETURNS TO WORK
Robin
Washington, a consumer affairs and transportation columnist
for The Boston Herald, who was suspended April 30, returned
to work on May 14.
Washington
was suspended without pay by top editors after he raised
the issue of the paper buckling under pressure from Fleeta
Herald advertiser and lender (NL,
5/10).
The
suspension had prompted 75 Herald employees to sign a petition
to the publisher protesting the "apparent unethical
influence of advertisers" in the newspaper s coverage
of the merger of two banks, Fleet Financial and BankBoston.
PEOPLE
__________________________
Scott
Lien was named editor of ShowBiz Weekly, a magazine
about Las Vegas tourist attractions.
Jonathan
Wolman was promoted to executive editor of The
Associated Press, replacing William Ahearn, a 29-year veteran
of the news service, who was dismissed by AP president/CEO
Louis Boccardi. Wolman, previously AP s Washington, D.C.,
bureau chief, had been managing editor since late 1998.
Marvin
L. Stone, 76, former editor of U.S. News &
World Report and deputy director of the U.S. Information
Agency from 1985 to 1989, died May 1.
PAPERS
ARE KEY TO BURSON'S SUCCESS
Harold
Burson, the founding chairman of Burson-Marstller, said
newspapers are the reason for his success as a PR professional.
Burson
said his "entire life has been intertwined with newspapers"
in an article he wrote for a special section of The New
York Times May 8.
Burson
said his father, who "relished being 'in the know'"
read the Memphis Commercial Appeal page-by-page every day,
and he used the hometown paper to teach his son how to read,
starting just before Harold's fourth birthday.
"My first reading lessons were the department store
and grocery ads with their large typefaces," said Burson,
who was born in 1921 in Memphis.
"He
then had me reading headlines and, eventually, the news
columns, including the editorial page,"
Burson,
who still starts his day by reading several newspapers,
said "I am appalled that more of my business friends
haven't discovered my secret."
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11
AD/PR GIANTS WILL COMPRESS TO 4-5
The
advertising "oligopoly" of 11 giants will collapse
further to about 4-5, ad industry analyst David McMurry
of Donaldson, Lufkin & Jenrette says in a new 58-page
study. (The study came out before WPP Group s purchase of
Y&R.)
McMurry
says the giants are too big and there are too few firms
left to buy for any new global player to emerge. He feels
the existing players will use their "abundant cash"
(and stock) to acquire specialized firms that help them
to reach individual customers.
The
11 are Omnicom, Interpublic, WPP, Havas, Bcom3 Group (combination
of Burnett and MacManus), Y&R, True North, Grey, Publicis,
Saatchi & Saatchi and Cordiant.
The
report says they get about half of the $27B in commissions
(averaged at 12%) from the $225B in worldwide traditional
media advertising. The share of the 11 in the U.S. is close
to 60% with the top four (OMC, IPG, WPP, Y&R) handling
35% of this. DL&J used statistics from IPG s McCann-Erickson.
Worldwide
PR Market: $5B
McMurry
estimates worldwide PR firm fees at $5B, with the big four
claiming $1.74B of this in 1999 or 35%. The total for the
11 is $2.2B or 43%.
He
feels the web is a good development for PR. "It is
essentially an enhancing technology for purposes of PR...a
fast targeted medium for PR people to reach a desired audience,
and a low cost way to cultivate and maintain media relationships."
McMurry
puts ad industry growth at 7-8% a year, saying there will
be an "unprecedented demand" for the full range
of (marketing) skills. Clients regard ad/PR as an "investment,"
not a "cost," he says.
The
Internet "is not the death knell for traditional advertising"
but he favors companies that show "a track record of
early and astute moves" in the web.
Web
Banners Not Getting "Click-throughs"
The
report says "click-through" rates of banner ads
on websites are "well under 1% and falling, showing
that the interactivity of banners is not being utilized."
He says banners are "little different from a print
ad" but do show the marketer is "savvy enough
to advertise online."
A
major casualty of the web could be market research firms,
says McMurry, "The Internet is clearly a faster cheaper,
richer tool for research purposes," he says. Existing
firms (such as NFO, which was recently acquired by Interpublic)
will have to "cannibalize" themselves to compete
with other web-oriented research services, he adds. IPG's
stock fell from $58 to as low as $38 in the months after
it announced plans to buy NFO.
David
R. Drobis, CEO of Ketchum, was elected president
of the ICO, the international trade association of PR firms.
Drobis
is the first non-European to head ICO, which consists of
associations in 25 countries representing more than 1,000
firms throughout Europe and the U.S.
IABC
INCOME OFF; SPENDING $1M ON WEB
The
Int l Assn. of Business Communicators, in a special e-mail
to members May 12, reported a "revenue shortfall"
due to lower than expected membership renewal and growth
rates.
IABC
is attacking the problem with offers such as a discount
for multi-year renewals and prizes for chapters showing
good growth.
The
e-mail, which was withheld from the press until it was delivered
to members, said IABC has invested "just over $1 million"
in building an e-business for members and the general business
public. "We remain committed to our visionary and aggressive
e-strategy but must rework timelines and funding sources,"
said the e-mail by chair Dave Seifert. No details of the
e-mail business or revenue shortfall were given and Seifert
couldn t be reached.
Seifert
wrote that member satisfaction is high, based on polls,
"making it all the more puzzling that membership growth
flattened out." There was also a "calculation
error in the budgeting process, discovered by the staff
in February, that compounded the revenue variance problem."
IABC
lost $339,987 on income of $4.8M in 1999 and had net assets
of $519,150 as of last Sept. 30. Thirty-five board members
and eight staffers went to the board meeting in London Feb.
18-19, IABC paying staff expenses and $300 per board member.
PR'S
'LOSS OF SOUL' DISCUSSED
U.S.
and U.K. PR have become too identified with marketing PR
and money-making and have lost the"social dimension"
of the profession, said Richard Linning, Brussels counselor
and president of the Confederation of European PR Assns.
(CERP), which has 26 PR groups and 30,000+ members.
Linning
was reached by phone after Boston counselor Terry Clarke,
who met with PR pros in Europe and Russia earlier this year,
reported that many PR leaders and rank-and-file PR pros
there are disappointed with current U.S. PR trends.
One pro asked Clarke, "Where is the soul in your work?"
Linning
said the new demoncracies in Eastern Europe see PR as the
"method by which the competition of ideas is introduced."
Western PR, he said, seems less concerned with ethics and
professional standards and more with growth and profit margins.
He agrees with U.S. counselor Howard Chase (1/12 NL) that
marketing has "captured" PR.
The
"social dimension" of PR, its role as the "corporate
conscience," seems to have been lost, he said.
The "bean counters" are in charge and PR is seen
as a business, not a "vocation or calling."
Linning
said production of brochures and other collateral is now
emphasized by PR firms, which may mark them up by as much
as 30% in the U.K.
PR
pros in Europe, he added, tend to be highly educated, skilled
in languages, and interested in sociology. They're
regular readers of the Harvard Business Review and similar
publications.
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PR OPINION/ITEMS
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The
acquisition of Y&R by WPP is not only a momentous development
for advertising but also for PR since it brings the
No. 1 and No. 2 PR operations, Burson-Marsteller and Hill
and Knowlton, under one roof. They fought each other for
many years for the top position, with B-M emerging as undisputed
No.1 in recent years.
WPP
is known for the tight control it exercises over its purchases
and the likelihood is great that there will be big changes
at B-M.
H&K
became part of WPP in 1987 when WPP made a hostile takeover
of J. Walter Thompson, which owned H&K. Ogilvy &
Mather and its PR operation were also taken by force by
WPP in 1989, a move that almost put WPP under because of
the cost.
Radical
changes followed at both H&K and Ogilvy PR. Carl Byoir
& Assocs., which had been acquired by H&K in 1986
and which once approached H&K in size, was gradually
erased from existence.
The
Byoir culture, emphasizing press relations and good writing,
had already suffered greatly under previous owner Foote,
Cone & Belding. FCB had ordered a mass firing that demoralized
the staff and touched off costly age discrimination lawsuits.
Also
erased was Dudley-Anderson-Yutzy as a separate unit of Ogilvy.
It was the oldest PR firm. All 90 people who made up the
corporate/financial unit of Ogilvy PR left.
The
mind-boggling union of H&K and B-M under one roof should
touch off serious thinking about what PR is and where it
is headed.
PR
pros should read the DL&J study described on page seven
so they will understand the powerful financial forces that
affect the lives of everyone in PR. The consolidation of
the ad agencies has given the few remaining players enormous
power, power that the client side once had. Now it is the
agencies that call the shots.
The
view from Eastern Europe is that U.S./U.K. PR, under the
thumb of the ad/PR giants, has lost its "soul"
and has become obsessed with money-making, measuring and
counting. This is a proposition that deserves debate on
its own and without reference to who is saying it.
PR
originally sided with citizens who wanted information from
their institutions. But the public service aspect of PR
in the U.S. has almost disappeared. PR started losing its
mission decades ago when the orthodoxy became that PR is
a "management function." This dodge enabled PR
to escape its principal duty of being a source of straight
facts. Press and relations with the public (not "publics")
were downplayed and PR leaders insisted PR s role was to
run the company or organization.
Europeans,
and especially Russians, who have lived under many repressive
regimes, know the value of information. Oddly, two days
after we talked to a European about information and PR s
role in disseminating it, agents of Russian President Vladimir
Putin raided Media-MOST, the country s largest private media
organization.
We
agree with Gerald Schwartz that what the PR giants are doing
bears little relation to what most small and medium-sized
PR firms offer clients. His firm emphasizes press relations,
special events, seminars and other devices that bring recognition
in the media for clients.
The
PR giants some years ago switched to management consulting
for clients and an integrated approach that uses all forms
of advertising and promotion to put across client "messages."
There is not much difference between the ad units of the
conglomerates and the PR units. Some of the "PR"
units openly call themselves "marketing agencies."
IABC
provides a good example of an institution withholding information.
It has told members there is a sudden "revenue shortfall"
requiring emergency procedures but gives no figures on the
size of the shortfall, membership renewal rates, etc. It
says it s spending $1 million on an e-business but gives
no details such as the outside contractor(s), what the service
will offer, etc. We were told a release on the subject of
the web would go out May 12 but when we called we were told
the press would get it only after the members were informed.
We consider this "the-members-must-know-everything-first"
stance hypocritical since it was this NL that informed the
members of the $398K web spending in 1999. That figure was
not in the truncated Deloitte & Touche report that IABC
tried to palm off on its members (3/15
NL). Members of most organizations would be poorly informed
if they relied only on official handouts...We re looking
for the PR counselor who will say to a prospective client:
"Our job is to give out information and lots of it
on your company and if you have something to hide or can
t handle this then you shouldn t hire us"...Coca-Cola,
the No. 1 brand according to the Interbrand unit of Omnicom,
has appointed a new PR head (page one). The advertising
might of Coke has allowed it to neglect PR considerations
with impunity and has served as an example that many other
companies emulate. Coke is famously testy with the press,
preferring not to be written about at all. Whether Coke
changes its policy will be worth watching. Among the other
top ten brands, according to Interbrand, which uses a formula
that estimates profit generated by a "brand,"
are Microsoft, IBM, General Electric, Ford, Disney, Intel,
McDonald s, AT&T and Marlboro.
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