Edition, November 15, 2000, Page 1
CHECKS IN AT WYNDHAM HOTELS
Edelman PR Worldwide has won the seven-figure Wyndham International
PR account, beating out Porter Novelli for the Dallas-based
Fred Stern, Wyndham's VP-corporate communications, said
a dozen PR firms were invited to pitch.
He said Edelman won because of its broad travel experience
and extensive office network. Edelman was the No. 1 travel
PR firm in '99 with fees of $8M.
Cathleen Johnson, executive VP and national tourism director
at Edelman, will handle the account from Chicago. The firm's
Dallas office will provide additional support.
The PR firm's goal is to position the 169 branded Wyndham
properties as the upscale choice for business and leisure
Stern noted the Patrice Tanaka & Co., the 10-year incumbent,
decided not to pitch the account.
John Frazier, COO at PT&Co., said the firm made that
decision because it was "time to move on." He
also noted that Wyndham has a new management team in place.
JOINS MERCK AS VP-CC
Joan Wainwright has signed on as VP-corporate communications
at Merck & Co. She was deputy commissioner for communications
for the Social Security Administration, serving as its chief
spokesperson and responsible for national communications
strategy. At Merck, Wainwright will oversee media relations
and executive/employee communications.
GYH HANDLE PR FOR $9.2M HCFA DRIVE
Fleishman-Hillard and Garrett Yu Hussein will handle PR
duties for the Academy for Educational Development, which
has just been awarded a social marketing contract from the
Health Care Financing Administration.
AED's job is to develop educational programs to show how
the 74 million consumers enrolled in Medicare, Medicaid
and State Children's Health Insurance plans benefit from
the three programs.
HCFA has budgeted $9.2 million for the first year of the
The D.C.-based non-profit group has conducted programs throughout
the world in areas such as reproductive health, drug/alcohol/tobacco
abuse prevention, nutrition and health policy reform.
AED president Stephen Moseley oversees an annual budget
of $135 million and a staff of 850+.
HCFA, last week, awarded a $5.4 million account to a team
headed by Ogilvy PR Worldwide.
Martinez has left KemperLesnik Communications, where he
had been president of the Chicago-based firm's PR unit.
Harry ("Hud") Englehart, who is COO of the integrated
ad/PR firm, said he will oversee the PR division. Englehart
joined the firm in 1996 after several years with Hill and
Before joining KemperLesnik in 1999, Martinez had been senior
managing director of H&K.
ABC News correspondent Jack Smith has joined Burson-Marsteller's
San Francisco office as a senior counselor in the firm's
media practice. He spent his last four years at ABC developing
and covering the technology beat.
"I look forward to working with Burson's high-tech
clients, some of whom I was reporting on just a few months
ago," said Smith, who spent 26 years at ABC.
PA is doing PR for the White House Historical Assn.'s
seminar Nov 14-16 as part of celebrations marking the 200th
anniversary of the White House. Jody Powell, CEO of Shandwick
PA, said the Association is one of a string of new business
wins, including United Way (national media rels.), Chemical
Safety Board and Memorial Herman Health System (Houston-based
Levitt, SEC Chairman, while discussing Reg FD at the
Securities Industry Assn. annual meeting in Boca Raton on
Nov. 9, said some executives should be more "tight-lipped"
about their company's financial outlook. "Investors
do not need an analyst to interpret news," he said.
Companies accustomed to "using whispers and practicing
favoritism and exclusion-rather than openness and broad
disclosure" will suffer during the Reg FD era, said
IABC/NY, Women Executives in PR, Black PR Assn., and
other groups are cooperating on the "First Annual New
York Communicators Holiday Charity Celebration" Dec.
7 from 6-10 p.m. at the Float Night Club, 240 W. 52nd st.
Entertainment includes music and dancing. Proceeds will
go to Toys for Tots and N.Y.'s Neediest. The function is
an historic first for major New York communications groups.
Info.: 212/228-7228 (PRSA).
Edition, November 15, 2000, Page 2
DENIES 'SILENT RECALL.'
The Los Angeles Times accused Goodyear Tire & Rubber
of quietly replacing thousands of failed van, light truck
and sport utility vehicles tires for the past four years,
but only for those people who complained.
Goodyear PR officials have declined to comment beyond stating
that they are not conducting a "silent recall,"
said Davan Maharaj, who broke the story.
John Perduyn, senior VP-global communications for the Akron-based
company, said the Times was asking Goodyear to "supplement
the efforts of plaintiffs' attorneys to try lawsuits in
the media rather than in the courts where a fair and impartial
presentation of the facts can be made by both parties."
Robert Jenkins, a retired Bedford, Mass., businessman, said
a Goodyear tire dealer in Florida told him that there was
a "silent recall" involving the Marathon tires
on his vehicle, and that he could replace them at a discounted
price of $16.50 each.
When representatives of his trailer company told him Goodyear
was "exchanging" his tires, Jenkins contacted
his attorney, who filed suit in June.
Acknowledges Tread Separation Problem
Even before Jenkins' suit, publications catering to owners
of recreational vehicles published reports tipping off subscribers
to Goodyear's exchange program, and last month Goodyear
acknowledged that tread separation involving its 16-inch
Load Range E light-truck tires has been linked to at least
15 deaths and 120 injuries, but said it did not believe
a recall was necessary because it found no defect in the
The company did not disclose that it had been offering free
replacements of the tire for years.
The National Highway Transportation Safety Administration
said it was stepping up its inquiry into the 15 deaths involving
Goodyear's light-truck tires.
Chuck Sinclair, who is Goodyear's director of North American
tire communications, insisted that Goodyear is not conducting
a silent recall. Sinclair said the company strengthened
its Marathon tires a few years ago after noticing that consumers
were overloading their trailers "with customized modifications
like dishwashers, air conditioners and large TVs.
"We do not have a free replacement program in place.
We handle each situation on an individual basis," Sinclair
told the Times.
DISPUTE GOES TO HIGH COURT
The Supreme Court has agreed to decide whether publishers
can include the work of freelancers in electronic databases
without their permission.
The U.S. Court of Appeal for the Second Circuit, in New
York, held in a ruling last year that this common practice
was a violation of the freelancers' rights under federal
The appeal was filed by The New York Times along with Newsday,
Time Inc. and two companies--Lexis/Nexis and University
Microfilms--which sell databases in electronic and CD-ROM
The Times said the appeals court ruling would require "the
destruction of decades' worth of articles currently stored
in electronic archives."
The plaintiffs, a group of freelance authors led by Jonathan
Tasini, said the remedy would be a renegotiation of reprint
rights through a central clearinghouse. The legal issue
turns on a provision of law under which the owners of a
copyright in a "collective work," such as a newspaper,
are entitled to reproduce the individual works in "any
revision of that collective work."
The appeals court held the electronic databases could not
be considered a "revision" of the original printed
IS EUPHEMISM FOR LYING.'
Richard Stengel, who is editor of Time.com, said his sojourn
in politics taught him why the press is so often lazy, and
why telling the truth is not always the best policy.
He gave up his job as senior editor at Time early last summer
to become a senior adviser and chief speechwriter for the
presidential campaign of former Sen. Bill Bradley.
The first thing he learned is that "spinning is just
a euphemism for lying."
"Spinning is selling a version of events that you want
others to believe rather than the version that you know
to be true," said Stengel in an article that he wrote
for the Nov. 13 issue of Time.
"Most voters don't like to hear unpleasant truths.
If you insist on telling the truth, at least do it with
a smile. Even the press prefer this," he said.
Stengel found most reporters are afraid of getting either
too far ahead or too far behind.
"That's why, if things are going wrong with your campaign,
you've got to right it lickety-split. In two days the media
horde can undo strategies that took months to create,"
"I'm not saying that all campaign correspondents are
indolent and superficial; just that if you want them to
write a probing critique of an opponent, you'd better hand
it to them on a silver platter," he said.
(ACOM), a combination of eleven dot-com firms in which
Omnicom has a 36% interest, hit an all-time low of $9.13
last week, down from a high of $98. It went public in Dec.
1999. Omnicom's 18.5 million shares, worth $944M as of Dec.
31 when ACOM traded at $51, are now worth $168.9M. Initial
OMC investment in ACOM was $11.7M in cash. ACOM had a net
loss of $39,000 in the third quarter vs. a loss of $7 million
as revenues climbed to $57M from $26M in the year earlier
Razorfish (RAZF), another Omnicom investment, was at $5
last week, down from a high of $56.94 but above its low
of $4. OMC sold four million shares of Razorfish at $35
on March 14 for a profit of $110M. OMC has not sold any
of its Agency.com shares.
Nasdaq, which lists many dot-coms, is down 25% so far this
Edition, November 15, 2000, Page 3
WEEKLY'S D.C. BUREAU CHIEF DIES
Fran Durbin, 56, who was Travel Weekly's Washington, D.C.,
bureau chief, died Oct. 29 after a long illness. She joined
TW in 1972 as the assistant bureau chief and moved up to
chief in 1976.
She was recently awarded ASTA's 2000 Travel Writer of the
Michael Millingan, assistant bureau chief, said Durbin's
successor has not been named.
TO REVITALIZE LEFT-WING MAG.
Bob Burnett, a Cisco Systems co-founder, appears to be an
unlikely candidate to revitalize In These Times, the 24-year-old
Chicago-based magazine with left wing political views.
Burnett, 59, made millions from Cisco stock and is by his
own admission, in the nation's top one percent in terms
of net worth.
He was hired last month to help improve the non-profit's
fiscal condition and reach a wider and younger audience.
Joel Bleifuss, the magazine's editor, believes Burnett's
combination of business experience, fund raising skills
and political ideals make him perfect for the job.
The magazine has about 2,000 financial supporters, who give
from $25 a year to $30,000, according to Bleifuss.
circulation has fallen from its peak of about 40,000 in
the late 1980s to about 15,000 now.
The magazine has dropped its identification with socialism
in favor of the subtitle, "Independent news & views."
Burnett told Tim Jones, who covers media for The Chicago
Tribune, that the magazine needs to get beyond Republicans
and Democrats and realize that millions in America consider
themselves "just out there."
Burnett said this did not mean a change in the magazine's
editorial direction. "I'm an old lefty," he told
Jones, adding that he will vote for Vice President Al Gore
because he "is the lesser of two evils."
Jones, who interviewed the new publisher in his office in
Berkeley, Calif., said the "resurgence of consumer
activism and Green Party presidential candidate Ralph Nader
has contributed to Burnett's belief that the public has
a hunger for political magazines and a discussion of issues
that resonate with people-the environment, economic justice,
the gap between rich and poor, the wage gap for women, and
Evidence suggests the audience for political commentary
is growing, according to Jones, who cited American Spectator
magazine, which increased its publishing frequency this
year to twice a month, and Mother Jones, which reported
a 13 percent rise in circulation in the most recent reporting
period, to nearly 167,000.
news continued on next page)
Edition, November 15, 2000, Page 4
ON 'NET MOST FOR Rx NEWS
More than 85 percent of Internet users are seeking health
and medical information on websites, according to a nationwide
survey by Decision Analysts, Arlington, Tex.-based market
The survey also shows 28.5 percent of respondents believe
the information they are getting is "extremely useful"
and 42.4 percent believe it is "very useful."
Only about 2.7 percent said the information is not useful.
Of those using the Internet to gain medical knowledge, 25
percent are seeking information about pharmaceuticals, 23
percent are trying to learn more about new treatments, and
about 21 percent are using the Internet to investigate potential
medical conditions, the survey shows.
Consumers also are turning to the Internet for information
about physicians and medical literature.
More information about the survey of 565 Inter-net users
can be found at www.decisionanalyst.com.
WILL PUBLISH 'NET SHOPPING GUIDE
Time Inc.'s Southern Progress division is starting an upscale
shopper's guide to the Internet, called HotDots. The first
issue of the magazine went on newsstands Nov. 6, with a
guaranteed rate base of 400,000.
Mark Mayfield, who is on sabbatical from his regular job
as editor of Southern Accents, another Southern Progress
magazine, is overseeing HotDots.
Mayfield said HotDots is being positioned as a women's lifestyle
and shopping magazine and not another resource for techno-geeks.
Actress Sela Ward is on the cover of the first issue, which
features cover lines on "Get Gorgeous! 50 Best Beauty
Buys," and "Forget the Mall: 323 Top Gifts on
During the first year, the magazine will be published bimonthly,
but it is expected to go monthly in 2002.
VETOES SECRECY BILL
President Bill Clinton has vetoed the Intelligence Authorization
Bill, noting that a section of the legislation calling for
criminal penalties for unauthorized disclosure of classified
information would have had a chilling effect on the public's
right to know.
Section 304 of the IAB would have made it a felony for both
former and present government employees to disclose "properly"
classified information to any unauthorized person, even
if there was no harm to national security.
Many newspapers and other media have been working to defeat
this measure since it began to make its way through Congress,
without the benefit of public hearings or debate.
"While we respect the government's need to keep certain
information confidential, Section 304 of the bill would
have created the first official secrets act in our history-something
that always has been anathema to our nation," said
John Sturm, president/ CEO of the Newspaper Assn. of America.
TO PUBLISH NEW MAGAZINE
Women's Wear Daily (WWD) will start publishing a new magazine
in February, called BeautyBiz.
The monthly will focus on the leaders, strategies, issues
and trends driving the global cosmetics and fragrance industry.
It will offer a wide mix of in-depth interviews and profiles
on the industry's most influential people.
The magazine also will report on the retail scene, and provide
analysis of issues, product development trends, new looks
in advertising and consumer opinions on the state of the
Kerry Diamond has been named editor of BeautyBiz. She has
been a reporter and editor on WWD's news staff, most recently
as beauty news editor.
Diamond will continue to report to Pete Born, VP and associate
publisher in charge of beauty news coverage for WWD and
executive editor, beauty, for parent Fairchild Publications.
PLACEMENT TIPS ___________________
Style & Entertaining, the new Part 2 magazine
published by The New York Times Magazine, which debuted
Nov. 5, has regular features on fashion, travel, media,
books and designs. William Norwich is editor of the magazine,
which will be published twice a year.
a new Internet publicity service that grew out of a book
publishing company's efforts to get coverage for its authors,
is accepting content for distribution.
"Offering content from many sources gives the media
an even greater reason to visit FeatureSource.com each week
and browse for articles," said Phil Theibert, who is
director of marketing for Meadowbrook Press.
"We found we got much better placement of stories about
our books and authors when we sent out long and short articles
instead of news releases," said Meadowbrook Press publisher
Theibert, who is a former newspaper editor, said editors
love it when "we send them an article they can download
and use to fill up the news hole."
Theibert can be reached at 800/338-2232 or [email protected].
Sports Illustrated For Kids has added new departments
to its redesigned format, which will be unveiled with its
December issue, now on newsstands.
The first sports magazine written for kids ages 8-14, will
do more in-depth coverage of a wider range of sports, which
will include issue-oriented topics related to sports.
Neil Cohen is managing editor.
Edition, November 15, 2000, Page 7
WORLD BOOK MOVE QUESTIONED
Librarians and directory publishers have questioned the
wisdom of the International Assn of Business Communicators'
decision to cease publishing its printed World Book of members.
An electronic version of the directory, accessible only
to members, has been on IABC's website for years. The print
version, also only available to members, last year had 735
The 13,500-member group said most of its members have access
to the web and that "the print edition is out of date
almost as soon as it comes off the press" because of
job changing and new members.
Library consultant Barry Lee said annual printed directories
are mostly accurate even toward the end of their years.
He called the IABC statement "an exaggeration."
Lee is a board member of the Directory Publishers Forum
and Network, a group of 120 directory publishers, and president
of Research & Reference Services, consulting firm.
Members of the Forum that were reached by this NL knew of
only one print directory (Nathan's Legal Market directory)
that had shifted completely from print to electronic form.
Electronic & Print Versions Most Common
Port City Press, Baltimore, one of the largest printers
of directories in the U.S., said publishers today are commonly
adding CD and online versions while continuing their print
versions. It said print press runs are down by 50% because
of the shift.
Corporate and PR firm librarians and "knowledge"
officers expressed strong disapproval of electronic-only
Publishers are shifting to the much cheaper electronic-only
directories but charging the same amount, said one librarian.
Another said print can never be replaced by online directories
because the latter do not allow for side-by-side comparison
of different years. "Journalists love to browse in
print directories because of the serendipitous knowledge
that might be picked up," said one.
Another said it's much quicker to check a name or address
in a print directory than to access a website, punch in
a user name and password, and describe the information being
On the other hand, they point out, an online directory that
is searchable by categories can do an amazing amount of
research in a short time. Mass e-mailings and label printing
are among many options.
PRSA Exploring CD Version
PR Society of America, which has delayed publication of
its own membership directory until January because of financial
reasons, said it has no intention of dropping the print
version but is exploring electronic and CD versions.
IABC lost $341,605 last year after a loss of $107,116 the
previous year. Net assets were $519,150 as of Dec. 31, 1999.
It renewed 1,161 fewer members than expected in the six
months to March 31 (loss of $203,175 in income). It has
spent $1 million on an e-business (TalkingBusinessNow.com)
and is seeking to raise $400,000 more to fully implement
World Book and Communication World (IABC magazine published
eight times a year) took in $34,000 and cost $623,440 in
1999. The audit did not break out the revenues/cost of World
DIRECTORS DID NOT ACT ILLEGALLY
The nine directors of PRSA who publicly supported Joann
Killeen for chair-elect against official candidate Art Stevens
in the recent election did nothing illegal, said Arthur
Abelman of Moses & Singer, PRSA's law firm.
Several PRSA members had quoted Abelman as telling them
that the collective action of the directors was somehow
improper or "inappropriate."
However, Abelman said they did not quote him correctly.
He said the directors did not do anything illegal although
what they did might be interpreted as a criticism of the
Assembly because it opposed a decision of a committee of
But people do not lose their right of freedom of speech
just because they are directors of an organization, he said.
Other PRSA Leaders Are Concerned
Jack Felton, who this spring headed a special committee
of the board that studied the nominating process, said that
if board members take part in the nominating process next
year "a number of other concerned PRSA leaders have
volunteered to publicly censure those who repeat the kinds
of activities undertaken this year."
He had argued before the Assembly Oct. 21 that a "small
clique" on the board had "made a grab for power"
in supporting Killeen vs. Stevens.
The enlarged 20-member nominating committee, representing
all segments of the Society, is supposed to pick candidates
for the board, he said. "The board is not supposed
to pick its own officers," said Felton.
Stevens Issues Statement
Stevens, meanwhile, issued a statement Nov. 2 on the election
in which he thanked his supporters and congratulated Killeen.
He said PRSA needs to continue to work on its "well-documented"
financial problems and that the staff "continues to
need focus and support." The national board "continues
to need a spirit of cohesion." He described accreditation,
globalization, ethics, and member services as "works
Said Stevens: "We must reconnect with chapters, sections
and districts and put an end to the frustrating feeling
of divisiveness that has been allowed to fester for far
too long. The need to focus outward toward our target audiences
increases every day." He said these continue to be
Edition, November 15, 2000, Page 8
decision to drop its printed directory in favor of an all-electronic
one (page 7) is a poor one but only the latest bad decision
to come out of this organization. The worst was last year
when IABC lopped 19 of the 34 income and spending categories
from its financial report, citing advice from its new auditor,
Deloitte & Touche.
Complaints led IABC to restore the numbers, revealing that
$398,755 had been spent on "web development" in
1999 vs. nothing in 1998. The D&T report had a spending
category called "other" totaling $548,955.
CFO Sherm Smith, who helped us with this story, either quit
or was fired by IABC on the day he returned from a vacation.
We don't think his was the head that should have rolled.
Another bad IABC decision was spending $1M on an
elaborate e-business that sounds like it's competitive with
CNN, Newsmax and other commercial websites. The new site
is so complicated it needs another $400,000 to get off the
Worse yet is that false reasons are being given for killing
the print directory. IABC says "the print edition is
out of date almost as soon as it comes off the press."
Directory publishers, attacking this "straw man"
argument, say a small part of any print directory is out
of date right away but the great bulk of the entries are
useful for years.
IABC drops expired members two weeks after their expiration
date (vs. three months for PRSA), meaning about 2,400 listings
of members are killed during the course of a year (IABC
renews about 80% of members).
can't electronically look up a friend who didn't renew but
he or she would still be in the print edition. From a research
viewpoint, an electronic directory is a disaster because
it can't be compared to previous editions. From a PR standpoint,
IABC has robbed itself of a handsome directory that should
be its No. 1 sales tool. Oddly, IABC only lets members buy
it. This is the same IABC that now wants the public to come
to its new e-business.
says money was not the "driving force" behind
dumping the printed directory. We doubt that. It has admitted
that renewals are down by $200,000 this year after the group
lost an overall $339,987 in fiscal 1999. It only had net
assets of $519,150 on Dec. 31, 1999 on income of $4.8M.
Power has coalesced at IABC h.q. in recent years with Elizabeth
Allan taking the titles of both president and CEO and elected
IABC chairs rarely being heard from. This is also true of
PRSA where chair Steve Pisinski made no speeches for general
distribution last year and the National Investor Relations
Institute, none of whose elected leaders or board members
has distributed a speech for years (a fact confirmed by
NIRI president/CEO Lou Thompson). The 120-member house of
delegates of IABC gave up its right to set dues for the
group in 1992.
PRSA also had a severe drop in membership renewals
this year, the rate falling from 85% to 72%. The Society
of Professional Journalists saw dues income drop to $526,454
in the year to July 31 from $574,454 in 1999. This is a
loss of about 1,000 members in a group with about 10,000
Why these three communications groups are losing members
in the midst of prosperity is a question that needs to be
We think it's the impact of the Internet. There are plenty
of news and how-to materials for PR pros and journalists
that are free on the web and that are far more up-to-date
and even riveting than anything offered on the websites
of PRSA, IABC or SPJ. Organizations change very slowly while
the web is improving at warp speed.
PRSA member Bob Stack, a resident of Juno, just north of
Palm Beach, said he, too, had trouble figuring out the "butterfly"
ballot that has become such a matter of contention. "I
have felt in previous years that this was a poorly designed
ballot and I had to study it before making the correct choice,"
said Stack. He could understand how senior citizens (most
of the population of Juno) would have trouble with it. Voters
could ask for another ballot but whether the voters or the
people at the polls knew this is questionable, he said.
A voter who punched the second "bullet" on the
ballot would have voted for Pat Buchanan. If the vote was
intended for Gore/ Lieberman, the voter might have, on second
thought, then punched a hole in the third bullet. The two
holes invalidated the ballot. Stack believes most of the
Buchanan and invalidated votes were meant for Gore.
enough of a racket is made about the Palm Beach vote,
the voters may get a chance to do it again, as advocated
by Harvard law professor Laurence Tribe in the New York
Times and New York Post columnist Sid Zion. Courts sometimes
bow to publicity. The murder of Martha Moxley in Greenwich,
Conn., languished for 26 years until authors Michael Fuhrman
and Dominick Dunne put the spotlight on it in their books...giving
people a second chance is part of the American tradition.
A bridge player who calls for the wrong card to be played
in dummy but switches to a second card in the same breath
is allowed to play the second card. A golfer is allowed
a second shot off the first tee if the first shot goes awry.
This is called a "Mulligan" and is legal because
the first shot is considered to have been taken before play