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MAGNET
AXES 36 STAFFERS
Magnet Communications, a unit of Havas Advertising, "reorganized"
its PR, corporate and administrative functions by firing
36 staffers last week.
"We
lost business we didn't expect to lose and have not won
as much business as we had hoped to win," said CEO
David Kratz in explaining the job cuts.
Kratz noted that Magnet lost "some talented people,"
but they had to go to "make us stronger in this difficult
economy."
The cuts were made across the board in each of Magnet's
eight offices. Affected staffers were given the bad news
by their respective supervisors, Kratz told this NL.
Kratz said the downsizing has given Magnet a much brighter
outlook.
The firm, which now employs about 185 people, was formed
last year via the merger of Kratz & Jensen, Creamer
Dickson Basford, Capstone Communications and ACG Communications.
It has eight offices.
Darryl Salerno, who had been CEO of Magnet, was replaced
on May 23.
SCHWARTZ
CUTS 22 IN BOSTON
Schwartz Communications, the fifth biggest independent firm,
cut 22 people from its Boston office May 30, according to
Lloyd Benson, executive VP at the firm. That's about 10
percent of the staff.
"We waited until the last minute before making the
move," he told this NL. "Our competitors were
forced to make their cuts much earlier," he noted.
Benson said it is SC's policy to hire people in anticipation
of demand.
No VPs were let go in SC's "force reduction" program,
he noted. There were no cutbacks in its San Francisco office.
SC's fees rose 57.7 percent to $33.2M last year.
Bill
Novelli, co-founder of Porter Novelli, has been elected
exec. dir., AARP, one of the nation's most powerful lobbying
groups. He was the group's PA director, and president of
the Campaign for Tobacco-Free Kids before that...Qorvis
Comms. has been named PR agency for CompTel, the telecomms.
industry's trade group. Maura Colleton who recently joined
Qorvis from WorldCom, heads the account... Waggener Edstrom
is handling Microsoft's campaign to encourage AOL customers
to switch to its MSN online service. McCann-Erickson developed
a $50M ad campaign to support the "switcher" campaign.
LMF
WINS $2.5M
SAFE DRIVING PUSH
Linhart McClain Finlon PR beat eight other Denver-area firms
to win a $2.5 million five-year contract from the Colorado
Dept. of Transportation.
Alexander Ogilvy, Peter Webb PR and Praco Ltd. were among
firms pitching the account, Sharon Linhart told this NL.
The firm will encourage drivers to use seatbelts, tackle
aggressive driving, provide info about road construction,
and highlight the danger of drunk driving, according to
Tom Norton, exec. dir., CDOT.
Linhart plans to use a combination of press releases, advertising,
e-mail alerts and wireless messages to get the messages
across.
LMF
PR has worked with clients such as KeyBank, Xcel Energy,
and Southeast Business Partnership.
EX-RF EXEC WINS $32M TOXIC MOLD SUIT
Melinda Ballard, former PR executive at Ruder Finn and United
Brands in New York, on June 1 won a $32 million toxic mold
case against a unit of Farmers Insurance Group.
She charged the company mishandled her family's claim for
mold damage which damaged the health of her husband and
son and made her 22-room house uninhabitable.
A jury found that Farmers Insurance Exchange committed fraud
in dealing with Ballard and her husband, Ron Allison.
They charged that the company failed to swiftly cover repairs
for a water leak, allowing the mold stachybotrys to spread
through their home in Dripping Springs, Texas.
Allison suffered neurological damage that forced him to
leave his job as an investment banker. However, no medical
testimony was allowed pending a court decision on the effects
of mold.
The case is the first in which a jury has awarded a homeowner
damages on mold contamination. Many other toxic mold cases
are pending.
Bill Miller, spokesman for Farmers, said the company will
decide on whether to appeal the case after seeing if the
award is reduced. Ballard and her husband were awarded $6.2M
in actual damages (the house will have to be leveled and
rebuilt); $12M in punitive damages as an example to other
insurers; $5M for mental anguish, and $8.9M in lawyers'
fees.
Ballard
said she is going to continue her PR campaign to educate
people about toxic mold. The Lund Group, New York, has been
assisting in the campaign.
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SELTZER,
PASTER EARN BIG BUCKS AT WPP
Ogilvy PR Worldwide CEO Bob Seltzer earned a 6.4 percent
pay hike to $450,000 last year, according to a report from
the compensation committee of WPP Group, Ogilvy's parent
company. That was the sixth largest salary at WPP last year.
Seltzer's short-term incentive bonus, however, was sliced
14.4 percent to $338,000.
He got $25,000 in compensation covering the value of company
cars, club memberships and executive health/supplemental
life insurance.
The Ogilvy chief also was rewarded with long-term comp pegged
at $41,278.
The firm's revenues rose 61 percent, while operating costs
increased 59 percent, according to WPP's financials.
Howard Paster, who heads WPP's Hill and Knowlton unit, earned
the same $550,000 salary, and $344,000 in short-term incentives
last year that he made in 1999.
He got $17,000 to cover cars, clubs, etc., and $14,116 in
long-term awards.
H&K's revenues were up 31 percent, while costs rose
29 percent.
WPP CEO Martin Sorrell received $1,295,000 in salary and
$819,000 in short-term bonus during the past year.
CLOCK
TICKS FOR BCOM3 GROUP
If BCom3 Group does not complete a public offering by March
14, Japan's Dentsu Inc. has first dibs on the Chicago-based
holding company.
That's according to BCom3's Form 10-12G filing made with
the SEC.
Dentsu owns 21.4 percent of BCom3, which counts Leo Burnett;
D'arcy Masius Benton & Bowles, and Manning, Selvage
& Lee as key units.
Under its "standstill" agreement with BCom3, Dentsu
has the right to make the "first offer" for the
remaining shares of the Chicago-based holding company before
they can be shopped to other agencies.
Dentsu, as long as it retains a 15 percent stake in BCom3,
also has the right to veto the dismissal of BCom3 CEO Roger
Haupt and any acquisitions or divestitures.
BCom3 Group lost $65.6 million on $1.8 billion revenues
last year. That red ink resulted from a $71.9 million charge
related to a stock redemption offer and a $64.9 million
"goodwill amortization charge" related to a business
combination.
Haupt earned a salary of $687,000 and received a bonus of
$1,315,476. He is to receive a minimum $950,000 in pay through
2004.
BCom3 employs more than 17,000 in 90 countries. More than
60 percent of its staff are based outside the U.S.
Its top 20 clients generate 49 percent of its revenues.
They include Philip Morris, General Motors, McDonald's,
Procter & Gamble and M&M/Mars.
CELEBRITY PUBLICIST RAPS ARTICLE
Pat Kingsley, the 68-year-old celebrity publicist, said
a report in The New York Post that her new firm PMK/HBH
means practically all of Tinseltown's A-list will be micromanaged
by one company is "nonsense."
The May 31 Post article by Michelle Gotthelf said the marriage
of the two firms "means a question about Tom Cruise's
divorce could get a reporter blacklisted from other stars."
"Nothing has changed, we just are bigger," Kingsley
told this NL. "I don't see people quaking in their
boots over this. It just gives people one number to contact
a lot of good people," Kingsley said.
Huvane Baum Halls, a firm run by Stephen Huvane, 40, Robin
Baum, 36, and Simon Halls, 36, has agreed to be acquired
by PMK, which is owned by McCann-Erickson, a part of the
Interpublic Group. The deal is expected to be completed
by end of this month.
PMK currently handles PR for Tom Cruise, Matt Damon, Tom
Hanks, and Johnny Depp, while HBH has clients that includes
Russell Crowe, Gwyneth Paltrow, Jennifer Aniston, Liv Tyler
and Jude Law.
Gotthelf said journalists told her the merger will likely
spur reporter blacklistings by the uber-compay if they hit
stars with the questions their readers really want answered-and
it will have a big effect on what movie fans get to read
about their favorite stars.
"Who would dare ask Crowe about why he really dumped
Meg Ryan when they could be jeopardizing future access to
Cruise and Paltrow?," asked Gotthelf. "Nobody
dares ask Damon for the true lowdown on Winona Ryder because
they may then be refused Depp," Gotthelf said.
`Dish'
Has Chapter on PMK
Jennette Walls, who covers gossip for MSNBC, said it definitely
won't bode well for the readers.
Walls, whose new book, "Dish," has an entire chapter
about PMK, told Gotthelf that she remembers the PR backlash
that resulted when writer Stephanie Mansfield tried to deviate
from the "accepted" interview with Cruise for
GQ magazine and beforehand talked to a former classmate
of Cruise's.
"When she told Tom Cruise, he went absolutely ballistic,"
Walls said. "He called his publicist, Pat Kingsley
at PMK, who told Stephanie she'd be barred from interviewing
any PMK client if she used the interview with the classmate."
Mansfield used it anyway-and although it was a positive
interview, Kingsley made good on her threat, Walls said.
Kingsley admitted she got tough with Mansfield, but denies
she routinely blacklists.
Gotthelf said "practically every Hollywood reporter
has a story about a PR blacklisting-from being banned at
press junkets for writing about Crowe's attitude, to having
their phone calls never returned again because they inquired
about the Kidman/Cruise split."
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FIRM
GETS PUBLICITY WITHOUT A RELEASE
BizCom Assocs. believes good publicity comes from taking
advantage of a trend or seasonal opportunity to develop
an unusual story idea for media.
"It's a common misconception that press releases are
needed to get publicity," the Dallas-based PR firm
said in the new issue of its newsletter, Publicity Matters.
While a release is an important tool that can be used to
keep a company's name in front of reporters and editors,
"it usually won't win you the big story you want,"
the article states.
As
an example, BizCom cites its "April Publicity Showers"
campaign for DreamMaker Bath & Kitchen.
The only media hit that resulted from a press release was
Kitchen & Bath Business' coverage of the DMB&K's
new VP. It was also the smallest story (one paragraph) of
all the publicity that BizCom arranged.
Other magazines carried editorials that ranged from one-page
exclusives to inclusion in a four-page cover story.
"Each of these hits was obtained through specific,
individualized media pitches," said BizCom.
"Targeting your message around an event, a time of
year, or something else noteworthy for your industry creates
the possibility of reaching a greater number of people,
building a bigger brand name and/or giving your audience
the impression that `I see that company everywhere these
days,'" the firm said.
PLACEMENT
TIPS ___________________
Messages for "Nightly Business Report" anchors
and staff should be sent to [email protected],
and it will be forwarded to the appropriate person.
Now in its 23rd year in broadcasting, NBR is carried on
more than 260 U.S. public TV stations and internationally
via the International Broadcast Bureau's Worldnet Satellite
Network and the Armed Forces TV Satellite Network.
It is seen by more than one million viewers every weeknight,
making it TV's No. 1 daily business news program.
Publicists at BizCom Assocs., Dallas, will book a
guest on morning shows in 15 to 20 of top TV markets at
a cost of approximately $1,000 per market.
If the client has a good story, the bookings are guaranteed.
The firm offers a free evaluation of a story's potential
for TV. Info.: 972/490-0903.
Marc Malkin, who co-wrote the "Hot Stuff"
column at US Weekly, was named contributing editor
at New York magazine. He will co-write the magazine's
gossip column-"Intelligencer"-with Ian Spiegelman.
Malkin succeeds Beth Keil, who will become beauty editor
and remain a contributing editor, focusing on cultural and
trend pieces.
Malkin previously wrote for The New York Daily News'<D>
"Rush and Molloy" gossip column.
George Benge, formerly executive editor of The
Asheville (N.C) Herald-Dispatch, is moving to Gannett's
corporate offices in Arlington, Va., to write national columns
for the Gannett News Service and direct corporate news projects
with a focus on national diversity issues.
UN'S
PR CHIEF WRITES COLUMN
Shashi Tharoor, who is director of communications for the
United Secretary General Kofi Annan of the United Nations,
and interim head of the UN's department of public information,
is writing a column for Newsweek International.
Tharoor is only identified in the first two columns as author
of a nonfiction book on India.
As chief PR man for the UN, Tharoor controls a budget of
more than $110 million, and also has nearly 1,000 people
working directly under him, according to Dyan Neary of Earth
Times News Service, who disclosed Tharoor's PR ties.
"It
is highly unusual for a major publication in the U.S. to
offer columns to PR personnel," said Neary.
"While PR flacks sometimes contribute opinion articles
to the Op-Ed pages of newspapers, their affiliation is almost
always cited by the publication," Neary said.
EDITOR
AUTHORS A PR `BILL OF RIGHTS'
Joseph Davis, who is acting editor of The Environment
Writer, said reporters ought to be able to expect the
following from federal agency press offices:
1. Returned phone calls-"Normally within no more than
a couple of hours."
2. Prompt notice of news-"Press releases about an event
can be e-mailed or put on the web within minutes after an
event or press conference."
3. Informed press officers-"He or she should know the
important facts about important stories."
4. Names and phone numbers-"Every press release should
have the name and phone of at least one authoritative or
quotable contact."
5. Access to agency people-"The job of the press office
is to put reporters directly in touch with agency people,
not to shelter or censor them."
6. Fair and equal treatment of media-"Day-ahead leaks
to The Washington Post are unfair and manipulative."
7. Access to information-"The press office's job is
to help reporters find and get information relevant to their
stories."
8. A good website-"An effective agency website can
help with most of the above."
9. Accuracy-"Goes without saying but needs to be said."
10. Honesty-"Ditto."
EW, a newsletter, is published 10 times yearly by the National
Saftey Council/Environmental Health Center, Washington,
D.C.
(Media
news continued on next page)
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MEDIA
NEWS/JERRY WALKER
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VAN
SLAMBROUCK IS EDITOR OF MONITOR
Paul Van Slambrouck, currently The Christian Science
Monitor's San Francisco bureau chief, was chosen to
succeed David T. Cook as editor of the newspaper on July
15.
Van Slambrouck joined the paper in 1976 as a reporter, and
has served as a business reporter, Houston bureau chief;
Johannesburg bureau chief, and international news editor.
He left the Monitor in 1989 to join The San Jose Mercury
News, where he was deputy managing editor, and rejoined
the Monitor in 1997.
Cook will move to Washington, D.C., as senior editor and
Washington bureau chief, replacing John Dillin, the current
bureau chief, who is retiring.
In January 2002, Cook will succeed Godfrey Sperling Jr.
as host of the Monitor's Washington policy breakfasts, which
Sperling has run for 35 years.
PEOPLE
________________________
Liz Brody, previously at Glamour, is joining
O Magazine as news director. Wendy Naugle has replaced
Brody as Glamour's health editor.
Jack
Egan has resigned as senior editor of Forbes.
Elizabeth Cummings was upped to managing editor of
Crain's New York Business.
Bill Howard, who was senior executive editor of PC
Magazine, is now a contributing editor, but he will
continue to write the "On Technology" column and
product reviews. He is also expected to become executive
editor of Family PC Magazine.
Amy Mastrangelo has joined Gourmet magazine as
food editor.
Mary Duenwald has resigned as executive editor of Harper's
Bazaar to join Sports Illustrated for Women in
the same title.
Gail Evans, who is retiring as CNN news group VP of
domestic networks, will be presented the 2001 International
Matrix Award by the Assn. for Women in Communications on
Aug. 3 at the AWC annual conference, at Baltimore's Renaissance
Harborplace Hotel.
NEW
DAILY WILL COVER MEETINGS
A daily newspaper featuring coverage of major financial,
business and diplomatic meetings in the U.S. and overseas
has been started by Theodore Kheel, who also founded The
Earth Times in 1991.
Conference News Daily plans to cover about 30 global meetings
between now and the end of 2002, including the annual meetings
of the World Bank and the International Monetary Fund.
Louis Silverstein, previously with The New York Times,
is editor of CND, and Anjum Niaz, formerly senior editor
of Dawn, a paper in Pakistan, is managing editor.
CND is located in New York at 205 E. 42nd. st., #1304; 212/297-0488,
ext. 17; fax: 297-0566.
MAYOR
BARS REPORTERS FROM EVENT
Cleveland's mayor, Michael White, refused to allow a reporter
and photographer for The Plain Dealer cover a political
event in a local elementary school cafeteria where he announced
he would not seek re-election to a fourth term.
White was angry at the PD for not giving more coverage of
a mayoral groundbreaking ceremony for a new airport runway.
Douglas Clifton, editor of the PD, said the newspaper, which
is owned by Newhouse's Advance Publications, was considering
suing the city for punitive damages, charging violation
of its civil rights.
SOCIETY
COLUMNIST IS SUSPENDED
The Hollywood Reporter has stopped running a column
by George Christy.
Christy, who covered Hollywood parties and premiers, was
removed from his job, pending separate investigations by
the newspaper and the Screen Actors Guild into allegations
that he accepted favors from movie producers and receieved
pension and health benefits for which he was not entitled.
MEDIA
BRIEFS _____________________
Kevin Maney, USA Today's tech columnist, asked
Gina Smith, a former tech journalist who became CEO of New
Internet Computer (NIC) 18 months ago, what's been hard
about becoming CEO? "Dealing with the press!",
she said.
Beth Berselli has given up her job as a reporter for
The Washington Post's "The Reliable Source"
column to teach elementary schoolchildren in inner-city
Phoenix as part of Teach for America.
Danielle Crittenden, who has a political novel, Amanda.Bright@home,
which is being serialized by the online Opinion.Journal.com,
is the wife of President Bush's economics speechwriter,
David Frum.
Fashion Wire Daily, a New York-based news service started
in May 1999 by publicist Brenda Niro, plans to publish a
weekly magazine version of FWD targeted at working women.
It will be published and distributed by American Media,
the publisher of The National Enquirer, Star, Globe,
and Weekly World News.
AssignmentEditor.com,
which is used in nearly all of TV newsrooms in the U.S.,
will sell space to corporations and PR firms to pitch messages
to the news media on its new "Event Window" site.
Jim Lichtenstein, CEO of AssignmentEditor, said the messages
will be seen by thousands of journalists. He is at 312/432-9911;
[email protected]
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ADS
WORK BEST ON "LIGHT" READERS
-Ads work better on "light" readers of news and
may have little effect on heavy readers.
-Heavy advertising during a period of bad news may make
matters worse by focusing attention on the company.
-In a period of light advertising, PR can be used to bolster
a company's image in the marketplace.
Above are some of the tentative conclusions in a study for
the Institute for PR on how news and ads impact consumer
attitudes.
The study is by Bruce Jeffries-Fox of Insight Farm, a unit
of Burrelle's/VMS Co. It is based on research materials
provided by AT&T.
"More work is needed to investigate the combined impact
of news and advertising," says the "Commission
on PR Measurement and Evaluation," an initiative of
IPR.
"If we are to have truly integrated marketing communications
plans, we need to bring together the worlds of PR-and particularly
media relations-and advertising," it adds.
Media relations and ads are usually managed by different
units in a company that have "little contact with each
other, let alone share joint planning or research,"
says an introduction.
"The status quo (that advertising dominates discussions
of marketing communications) is supported both by advertising,
and inadvertently, by PR," it adds.
The initial hypotheses ("more work is needed to investigate
the combined impact of news and advertising") were
drawn from four studies by AT&T in the late 1990s on
how news coverage impacted on consumer attitudes and perceptions.
The company has an ongoing system of news coverage monitoring
analysis that covers a broad range of general and specialized
news media including print, broadcast and the Internet.
Content, favorability/unfavorability, story length, placement,
size of headlines and other factors are studied.
The complete text is at www.instituteforpr.com.
CS&A BOOSTS IMAGE OF LACROSSE
Craig Shirley & Assocs. is positioning The University
Club of Washington, D.C., and the club's Tewaaraton Trophy
to be the Downtown Athletic Club/Heisman Trophy of college
lacrosse.
The annual award, named for a Mohawk Indian predecessor
to modern lacrosse, will be presented at the club for the
first time June 6 to the sports top male and female collegiate
player.
The Tewaaraton award was endorsed by the Mohawk Nation's
tribe of elders.
CONCENTRATE
ON MESSAGES-LEWTON
PRSA
chair Kathy Lewton, addressing 70 PR pros at the Sunshine
district conference May 16-18, said PR pros should concentrate
on identifying the appropriate messages for clients rather
than on how the messages will be delivered.
"We
tend to fall in love with the methods, or the `how,' instead
of focusing on the messages," she said. "Tactics
should not be discussed until the messages have been defined
and understood," she told the meeting in St. Augustine,
Fla.
Other
speakers included Tom Harmening, of Hill and Knowlton/Tampa,
who gave ten rules for handling crisis communications; Jim
Lukaszewski, crisis counselor, who gave his definition of
"strategy," and Cheryl Procter-Rogers, of Home
Box Office, who said PR pros should keep written records
of praise given by clients and employers.
"We
Live in 24-7 Environment"
Lewton said that people are living in a "24-7"
environment where everyone can see everything almost instantaneously.
PR pros serve as counselors and translators in this ever-changing
world, she said.
"We
are PR counselors who provide context and translation...we
tend to fall in love with the methods, or the `how,' instead
of focusing on the messages..." she added.
Messages
can be sent, but not received; received, but not understood,
and understood, but not believed, she continued.
Messages,
therefore, need relevance and resonance and need to be sent
to audiences who will care, according to Lewton.
"Everybody
is usually not our audience," she said. "Are we
speaking to them in ways that will make them care? Does
it make their hearts flinch?"
Saying
this process may take a long time, Lewton said listening
is a critical PR skill and after translation is complete,
"We must show them!"
Crisis
Tips Given by Harmening
Harmening gave ten crisis tips:
1.
Take ownership-it's not the same as taking blame.
2.
Recognize the difference between bad publicity and a crisis,
then calibrate your response accordingly.
3. Get the confirmed facts and base your response on them.
4.
Recruit and use third parties to speak on your behalf.
5.
Treat the media as conduits, not enemies.
6.
Assume you'll be sued.
7.
Watch the web as closely as the traditional media.
8.
Demonstrate concern, care and empathy.
9.
Take the first 24 hours very seriously.
10.
Begin your crisis management program now by building your
reputational assets.
Lukaszewski
Defines Strategy
Lukaszewski, chair of Lukaszewski Group, White<%0>
Plains, N.Y., and author of a series of crisis communications
workbooks, said, "Strategy is a unique mixture of mental
energy verbally injected into an organization through communications,
which results in behavior that achieves organizational objectives."
A
strategist, he said, has exceptional verbal skills, communicates
effectively in real time and on the spot, focuses on what
is important and helps everyone recognize the obvious.
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PR OPINION/ITEMS
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The
Institute for PR, in a well-meaning but naive way, is
asking for further study of the impact of news and ads on
consumer attitudes.
The IPR and a unit of Burrelle's, with the help of statistics
compiled by AT&T, have found that consumers who are
heavy readers of news on a certain subject are not too affected
by advertising.
Said the report:
"Among lighter news consumers, our (AT&T's) advertising
had the expected effect; i.e., those aware of the advertising
gave higher ratings than those unaware of the advertising.
However, this was generally not true among heavier news
consumers, for whom advertising seems to have contributed
little or nothing above the impact of news coverage."
Advertisers, realizing this, have made the logical next
step: eliminate the news as much as possible. Then, there
is nothing for these "heavy readers" to read.
They, like the "light" readers, will form their
opinions from company ads and promotions.
The coordination between advertising and editorial is
growing stronger and probably needs no one to urge even
more cooperation.
For instance, media have discovered that if they write about
health issues, ads from drug and other health-related companies
will flow.
Some of our best national magazines on occasion<%0>
become like medical textbooks with frightening dis<%-2>eases
examined in endless graphic detail.
A good example of medical ads working in unison with editorial
was the May 6 New York Times<D> Sunday magazine. It
was a collection of rare and horrible diseases from throughout
the world including "brain fag," "hyperstartle
syndrome,"and fatal "familial insomnia" (victims
have a "sleep debt" hundreds of times greater
than subjects in any sleep experiment). There were 17 pages
of health ads.
The magazine advised travelers to consider wearing a bike
helmet on "unsafe" public transportation in foreign
countries and a mask while walking down the street. Also
advisable would be a "pith helmet with mosquito netting
attached, like a veil."
A greater danger might be insulting the natives with these
and similar precautions urged on travelers.
Rather than yanking ads from publications that displease
them, advertisers have taken the tack of rewarding publications
that please them (as noted above). Trade magazines that
have awards programs get ads from many of the same companies
that win the awards. The publications that don't give awards
don't get anywhere near the amount of ads.
Typical of the current "message-oriented" school
of PR is the speech given by PRSA chair Kathy Lewton
to the Sunshine District in May.
Lewton said PR pros should concentrate on identifying the
appropriate messages for clients rather than how the messages
will be delivered. Dissemination should be sought only after
the messages "have been defined and understood,"
she said. This approach coordinates well with an advertising
program, which is also at work on a "message"
that will be delivered to "target" audiences.
The current "message" of the big ad agencies and
many of their PR wings is: "We are growing rapidly
because of our new business wins and because of our excellent
work as evidenced by the numerous awards we win." Written
speeches circulated to the press by ad/PR execs have become
a rarity. The Lewton speech referred to above was covered
by a local chapter member. Lewton has said she will not
supply any speech texts this year because she speaks only
from notes.
The failure of Omnicom to use modern communications techniques
is on display in its 2000 annual report. It only has
a sketchy description of its novel zero-interest convertible
bond called a LYON that gives the buyer the right to nine
shares of OMC for each $1,000 loaned to OMC. With such a
bond, OMC pays no interest but can deduct the imputed or
phantom interest from earnings, thus improving cash flow.
The buyer has to pay taxes on the phantom interest. In an
odd wrinkle, if the price of OMC stock goes up enough to
make a $1,000 LYON worth more than 220% of the original
price, OMC can redeem the bond for the original $1,000.
There are many other bells and whistles on this unique debt
vehicle. The OMC report says its LYON is explained in Exhibit
4.1 to its SEC Registration Statement 333-55386 "and
incorporated herein by reference." That last phrase,
attached to 23 other OMC exhibits, means you have to chase
after the documents yourself. OMC should have given the
web link to the LYON and other filings to make it easy for
readers to find them. The route is: www.freeedgar.com; enter
OMC for ticker symbol; for "select," highlight
"freeedgar," and then click "search"
at right. When the OMC listings come up, click on "view
filings" and scroll down to S-3/A Registration Statement
dated 2/27/01 (click
here to get to the OMC filing). Click on "body"
at left and 173-page document comes up. This filing, highly
repetitive and in thick legalese, is anything but reader-friendly.
An OMC copywriter could probably summarize its key elements
in a half page...deadline for filing for PRSA nominations
is June 14. Reports are that candidates who previously
tried for office and failed may run again...Advertising
Age columnist Richard Linnett (Adage column), twitted
this NL in his May 28 column for asking questions of Omnicom
and Interpublic officers at their annual meetings. Ad Age
also can't get answers from OMC and we advised Linnett he
should be helping other reporters to get answers.
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