Edition, June 13, 2001, Page 1
WINS $4.5M MEDICARE PR PACT
GCI Group has won the $4.5 million Health Care Financing
Administration business in a competition that came down
to Ogilvy PR Worldwide, Ketchum and Academy for Economic
Ilyssa Levins, chairman of GCI Healthcare, said Lynn Duran,
senior VP in Atlanta, and Lynda Woodworth, VP in New York,
will co-manage the 30 staffers working on the account. Staffers
in five other offices will provide support.
GCI is to coordinate its grassroots and media outreach efforts
with HCFA's ten regional offices.
GCI has handled various projects for HCFA, such as promoting
its annual report, toll-free hotline and website.
TO H&K FOR BONE HEALTH
Hill and Knowtlon has picked up the Alliance for Better
Bone Health, an account that bills in the $1 million range.
The Alliance is a partnership between Procter & Gamble
Pharmaceuticals and Aventis Pharma formed to market their
osteoporosis drug Actonel.
H&K is to promote awareness and the need for treatment
of osteoporosis in the 44 countries in which Actonel is
Kathy Cripps, executive managing director of H&K's U.S.
Health and Pharmaceutical Practice, handles the account,
and is supported by staffers in the firm's London office.
H&K has done work for P&G, but Aventis is a new
International edged Magnet Communications and Douglas
Cohn & Wolfe in the race for Toyota project work. Toyota's
Tom Tetherow is looking for "fresh PR perspectives"
to bolster his in-house PR staff. Fred Cook, G/HI's GM in
Los Angeles, will oversee the business. Jerry Swerling,
Marina del Rey consultant, ran the search...Robert Grieves,
Burson-Marsteller's managing director in the corporate/financial
practice, joins the Bank of New York as senior VP and director
of communications. He also handled B-M's "global transaction
group."...Tom Foglietta, former Congressman
and Ambassador to Italy, joins Cassidy & Assocs. He'll
work from Weber Shandwick Worldwide's Rome office advising
clients on how to deal with the U.S. legislative and regulatory
BURY LEGAL HATCHET
Cohn & Wolfe and Titan Network have settled their messy
C&W had sued Titan after it was set up in January by
Tony DeMartino-who had headed C&W's Atlanta office-and
other breakaway executives.
It charged them with "unfair competition, misappropriation
of trade secrets and other confidential information."
Titan filed its own suit to have the "alleged non-compete
contract declared overbroad" under Georgia law.
C&W says the settlement bans Titan from soliciting either
clients or former clients of its Atlanta office through
Feb. 28. Titan also agreed not to poach any C&W execs
during that period.
DeMartino would not comment on the terms of the settlement,
citing a "gentleman's agreement" with C&W
not to discuss the case.
KETCHUM ACQUIRES CTC
Ketchum has acquired Corporate Technology Communications,
the Chicago-based firm that was founded by Paul Rand four
Rand told this NL that he talked to a number of suitors
as well as venture capital firms before going with Ketchum.
"It has the same global network as the other big boys
do, but I was attracted to its corporate culture,"
CTC, which also has an office in Austin, Tex., has 60 staffers,
and serves high-tech clients such as T-Systems (a Deutsche
Telekon unit), Navigation Technologies and Verio.
IS NO. 1, SAYS COUNCIL OF PR FIRMS
Fleishman-Hillard chalked up $342.8 million in fees last
year, making it the biggest PR firm, according to the Council
of PR Firms' rankings.
Weber Shandwick Worldwide was No. 2 on the CPRF's list at
$335 million, while a 25.9 percent surge in growth nosed
Hill and Knowlton ($306.3M) ahead of Burson-Marsteller,
which grew 11.6 percent to $303.9 million.
Incepta ($244M), Edelman PR Worldwide ($238M), Porter Novelli
International ($208M), BSMG Worldwide ($192M), Ogilvy PR
Worldwide ($169M) and Ketchum ($168M) rounded out the Top
The Council's numbers include PR firms owned by ad agency
holding companies. The O'Dwyer Co. rankings, which were
published on March 7, covered independent firms only.
Edition, June 13, 2001, Page 2
LOSING RWJF FUNDING
The Robert Wood Johnson Foundation, saying Kids in a Drug-Free
Society performed "very well" in a number of areas
and "fell short in a couple," has decided not
to renew funding after July 31 in large part because of
a change in RWJF's priorities.
Joan Hollendonner, senior communications officer and KIDS'
program officer at RWJF, said the Foundation is putting
greater emphasis on treatment of substance abuse while continuing
its already large program on prevention.
The KIDS program was entirely aimed at prevention, focusing
on training parents to educate their "tweeners"
(children from nine to 13) on the dangers of drug abuse.
The program "met or exceeded the majority of benchmarks"
that had been set for it, said Hollendonner. It exceeded
its goal for obtaining involvement of companies and the
employer sponsors of the work site training programs were
"very highly satisfied," she added.
KIDS was founded in 1998 by the PRSA Foundation and the
Partnership for a Drug-Free America (also funded by RWJF).
PRSA had sought a $9 million budget to succeed a $2,637,258
grant that is being completed July 31. RWJF is staying with
that grant, Hollendonner emphasized. There had been an earlier
$250,000 grant running from August 1998 to July 1999.
PRSA has had financial difficulties in the past two years,
when the combined loss totaled $1.1 million.
PRSA pledged $1 million and RWJF put up $2.6M to fund KIDS
The 2000 strategic plan of PRSA called for the Society to
raise $600,000 in support of the KIDS drive. The PRSA Foundation
did not say how it would raise the other $400,000.
Hope to Keep Program Alive
Catherine Bolton, executive director of PRSA, said that
intentions are to keep the concept of KIDS alive via the
PRSA Foundation but no decision has been made.
David Grossman, president of the Foundation, was not available
for comment. Lou Capozzi, CEO of Manning, Selvage &
Lee and chairman of KIDS, said, "We're in a very positive
dialog with PRSA and are optimistic the program will get
adopted by PRSA and will roll out nationally." The
program has only been in test cities thus far.
Bolton is now using the title of executive director in anticipation
of Joann Killeen taking the title of president for 2002.
Assembly approval is needed.
This NL reported Jan. 17 this year that Jackson, Jackson
& Wagner, Exeter, N.H., headed by the late Patrick Jackson,
had won a $200K five-city pilot program for KIDS in which
companies were to donate five, two-hour sessions for parents
on company time. The cities were Indianapolis, Atlanta,
Cleveland, Dallas, and Portland, Ore.
Jackson had sent this NL a 17-page description of the program
when queried about it.
Ronald T. Sconyers, retired brigadier general with the U.S.
Air Force and head of its PA, is president and CEO of KIDS.
Ray Gaulke, former president and COO of PRSA, resigned his
posts last December, saying he would be working on fund
raising for the PRSA Foundation and KIDS.
DKC STAFFERS GET BOOTED
Dan Klores Communications fired two staffers for planting
a story in the New York Post about Mayor Rudy Giuliani
and his girlfriend Judi Nathan sharing a "love nest"
at the St. Regis Hotel.
A St. Regis official thought it would be a good idea to
drum up business for the hotel, which is owned by DKC client
A Starwood marketing exec, at first, vetoed the pitch because
it would be a violation of privacy of guests, but then went
for the idea.
DKC staffers, according to the Post, gave the information
to the paper on June 4 without running it by their supervisors.
Giuliani called the story "entirely and absolutely
untrue," and threatened to sue the paper.
Two staffers were dismissed and a memo was sent to remaining
DKC staffers warning them to tread lightly when dealing
with politicos, and get final approval for controversial
Chris Widmaier, chief of staff to Dan Klores, said Klores
was on a short family vacation in France when the incident
happened. He was immediately notified that two employees
released unauthorized information to the press, according
Klores immediately decided to terminate the pair of executives.
New Editor Axes Six
Col Allan, the Australian who replaced Xana Antunes as editor
of the Post in April, fired six senior editorial staffers
on June 8.
They are: Stuart Marques, managing editor; Jerry Schmetterer,
city editor; Mark Kalish, features editor; Michael Lewittes,
Sunday features editor; Lisa Baird, deputy metro editor,
and Jack Newfield, columnist.
The "firings took the air out of a newsroom that had
been exhilarated by its current confrontation with Mayor
Giuliani," according to The New York Times.
GIVES AA $500K PACT
Indonesia, which is rocked by corruption and political upheaval,
is using Advantage Assocs. to improve ties with the U.S.
AA, which has a $500,000 contract with an Indonesian foundation,
is a firm comprised of former Congressmen, and headed by
ex-Texas Rep. Bill Sarpalius.
Coordinating its efforts with the country's embassy, AA
will contact White House and Congressional leaders about
efforts being made by Indonesia's government and its commitment
to human rights.
Edition, June 13, 2001, Page 3
OFFER PLACEMENT TIPS
The keys to placing photos with the media remain creativity
and quality of the images.
That was among the important placement tips at a May 30
U.S. Newswire workshop attended by more than 100 PR pros
at Washington, D.C.'s National Press Club.
The event, presented by Medialink's U.S. Newswire division,
featured Harry Walker, photo editor of Knight-Ridder News
Service; Jonathan Elmer, former photo editor of The Associated
Press, and Jim Sulley, director of photography for Medialink's
WirePix division, a leading producer and distributor of
news photos for the PR field.
Following are 10 tips presented by the panel:
1. Remember, news photography is not advertising. Make sure
you identify the news value of the story you want to illustrate.
2. Wire services like the AP get as many as 800 photos a
day and consider hundreds more. Your photo needs to tell
your story quickly and creatively, and have real news value,
to m ake
3. Capture images that tell your story at a glance. If your
story is that you're donating money to build homes for the
homeless, get a photo of people building homes, not a "grip
and grin" check presentation.
4. Write a complete and proper caption. Don't be misleading.
5. Identify the audience you are trying to reach. Photos
for annual reports and internal publications are not the
same as photos intended for newspapers or trade publications.
6. Get photos for day-of stories out in a timely fashion.
Rely on a respected vendor to help deliver your photo to
the media-they have credibility and experience with newsrooms
that can greatly increase the chance of your photo being
seen and used.
7. Try to create photos that have a shelf life. Can they
be used to illustrate the specific story today as well as
related/ongoing stories down the road?
8. If you are putting on a press event, make sure you provide
the media, both print and TV, with a visual opportunity.
Talking heads at a podium are not visual.
9. Don't try to over brand the photo. It should look spur-of-the-moment,
even if it isn't.
10. PhotoShop is a wonderful tool. Don't abuse it by altering
reality in your photos. Media will know if the photo is
altered and you will lose credibility.
EYES NEW COVERAGE AREAS
The Philadelphia Inquirer's "beat committee" has
suggested several new beats to Robert Rosenthal, who is
the Inquirer's editor.
Rosenthal, who is looking for ideas that will take the paper
in "new directions and give our readers fresh and important
stories," described some of the committee's proposals
in a May 31 staff memo, as follows:
-"Youth culture: This beat would cover the world of
people who are in their teens and 20s. It would be a newsy
beat and cover trends in attitudes, interests, recreation
-"Workplaces: Among the topics: layoffs, stress, safety,
wages and benefits, working conditions, perks, training
and workplace cultures.
-"Consumer news: This beat would develop enterprise
and investigative stories that help readers fight back against
the system and win in the marketplace. It would be edgy
and take up matters of money and time.
-"Online life: A lot of people are living their lives
through their computers. They have more friends online than
in real life. They form communities and romantic relationships.
It's a hidden universe.
-"Public health and food safety: It would look at issues
of communicable diseases, safety, pollution and the effectiveness
of health agencies.
-"Business of culture: Over the past decade, tens of
millions of dollars have been pumped into our cultural institutions...They
play vibrant, vital roles in the life of our communities,
they enrich our lives, but there is much that we, and those
who shell out the millions of dollars to keep them going,
don't know about them. Not intended to be a gotcha beat,
it will, however, get whomever needs to be got.
-"Why things are the way they are: It would pick offbeat,
unusual, curious or otherwise inexplicable elements of daily
life in the region and explain why they are the way they
are-by reporting them out. For example, why can't a SEPTA
clerk with loads of change at his fingertips, give change
to buy a token?
-"Big ideas for the future: The aim here would be to
tell stories about the next thing-big, small or medium-sized-that
smart people in science, commerce and government are plotting,
inventing, or legislating that almost certainly will change
the lives of people in the region. The goal would be to
be forward-looking, sophisticated and useful so that people
will turn to the Inquirer to get a heads up on what's coming
down the pike."
TO MEET WITH N.Y. TIMES
The Publicity Club of New York will hold a "Meet the
Media" luncheon on June 20, featuring a panel of three
editors from The New York Times.
The panelists are: Glenn Kramon, business editor; Jonathan
Landman, metor editor, and Rich Meislin, technology news
meeting will be held at 3 West Club, 3 W. 51st st. at Fifth
news continued on next page)
Edition, June 13, 2001, Page 4
TO RUN BETTER HOMES
Karol De Wulf Nickell was named editor-in-chief of Better
Homes and Gardens magazine, replacing retiring editor
Nickell, 44, has been editor-in-chief of Traditional
Home magazine since it was founded 13 years ago by Meredith
Corp., which also publishes BH&G.
Mark Mayfield, 45, will replace Nickell as editor of Traditional
Home. He was editor of Southern Accents magazine
before being promoted to president, editor and publisher
of entree magazine this year.
RESIGNS AS SUNDAY EDITOR
Frank Lalli has resigned as editor of the Sunday New
York Daily News. He was editor of George magazine
when it was closed down in January, and took over the Sunday
editor's job in March.
GETS A NEW EDITOR
Lucy Danziger was named editor-in-chief of Self magazine,
replacing Cindi Leive, who left to become editor-in-chief
of Glamour magazine.
Danziger had been editor of the now-defunct Women's Sports
& Fitness magazine.
Allan Sloan, Wall Street editor
of Newsweek magazine, was named winner of the 2001
Gerald Loeb Lifetime Achievement Award.
The Loeb awards, administered by UCLA's Anderson graduate
school of management, honor print and broadcast journalists.
Brian Duffy, 46, was promoted to editor of U.S.
News & World Report, replacing Stephen Smith.
Bill Grueskin, 45, a senior editor of The Wall
Street Journal, was named managing editor of the Online
Journal, replacing Rich Jaroslovsky, 47, who will
return to the print Journal as a senior editor.
Carey Winfrey, who is assistant managing editor of
People magazine, is joining Smithsonian magazine
as editor-in-chief, replacing Don Moser, who is retiring.
Jeffrey Zaslow, who wrote an advice column for The
Chicago Sun-Times for the past 14 years, has left the
Zaslow, who replaced Ann Landers when she moved her
syndicated column to the Chicago Tribune, may rejoin
The Wall Street Journal.
Barbara Martinez has replaced Beth Berselli
as a reporter for "Reliable Source," a column
on celebrities and influential Washington people in the
Brian Rosa, 22, was named editor of Time4 Media's skiing
magazine, Freeze, based in Boulder. He will oversee
product and gear reviews and edit feature stories including
the "Debris" section.
2.0 AND ECOMPANY TO MERGE
AOL Time Warner is buying Business 2.0 magazine and
merging it with its eCompany Now magazine.
In September, eCompany will be renamed Business 2.0. eCompany
has a circulation of 375,000 and Business 2.0 had a circulation
Despite the collapse of many Internet companies, Jack Haire,
who is president of AOL's Fortune magazine group, which
is the publishing unit of Time Inc., believes there is a
market for the magazine.
eCompany will offer jobs to a few of Business 2.0's editorial
staffers. Business 2.0 has about 140 editorial and business
employees; eCompany has 100 employees.
PULLS PLUG ON FAKE REVIEWER
David Manning, who has been a consistent booster for Sony
Picture films in print ads, does not exist.
The ads listed Manning as a reviewer for The Ridgefield
Press, a weekly newspaper in Connecticut. The newspaper
was unaware that its name was being used in the ads.
Susan Tick, a Sony spokeswoman, said "we're taking
all the steps necessary to determine who's been responsible
and will act appropriately."
MAGAZINE SHUTS DOWN
The Sciences, a magazine published by the New York
Academy of Science since 1961, has shut down.
The magazine had appeared bimonthly until this year, when
it became a quarterly. Circulation was 46,000. Six staff
members were asked to resign.
MarketWatch, a San Francisco-based online business
news website, is eliminating about 40 jobs from its 250-employee
payroll. About 85 of MarketWatch's employees cover the news.
After losing $91 million in 2000, MarketWatch opened the
first quarter of this year with a $20 million loss as the
company's ad revenue dropped by 41% from the prior year.
Orlando Sentinal will publish a weekly newspaper
that will cover local, national and international news in
Spanish and English.
Some 60,000 copies of El Sentinel will be distributed
free to homes and newsstands in Orange, Osceola, Seminole,
Lake and West Volusia counties.
Orlando Sentinel columnist Maria Padilla will be editor
of the paper and elSentinel.com.
CNN will start an evening newscast this fall. Aaron
Brown, 52, who anchors the Saturday edition of ABC's "World
News Tonight," will join CNN as anchor of the new program.
A time slot has not been picked.
Edition, June 13, 2001, Page 7
Edition, June 13, 2001, Page 8
Foundation of Women Executives in PR is launching a fund-raising
drive for general purposes in honor of the memory of
its founder, Denny Griswold, who died at the age of 92 Feb.
Its Denny Griswold Education Endowment Fund has no relation
thus far to any senior citizens' issues.
However, stories in this NL and other media about Griswold's
last few years touched off calls and letters to this NL
about various conditions in nursing homes.
We heard plenty of praise for homes that allow visitors
almost any time of the day or night. Other homes regularly
take their residents on various trips.
Philanthropist Elinor Guggenheimer, who is helping on the
drive and with whom we had lunch last week, is most eloquent
on the subject of senior citizens. She recalled an incident
at one senior facility that infuriated her.
A visiting lecturer, explaining a subject, treated a gathering
of residents "like they were in kindergarten,"
she said. "Actually, many of the residents had far
more knowledge than the lecturer," she added.
Guggenheimer, who says, "Our treatment of the elderly
has been a disaster area," feels that some institutions
can become an "intellectual void" unless they
challenge the mental abilities of their residents.
Seniors should be thought of as living in "half-way
houses" with freedom to go to parks, concerts, theater
and so on, she said.
who do almost everything in the open, are the biggest practitioners
some of our political leaders have made huge PR miscues.
Gray Davis, governor of California, whose state has literally
lost its power, has become the nation's No. One whiner.
First he blamed his Republican predecessor for the situation
that calls for "rolling blackouts." Then he criticized
the state's utilities for "gouging" their customers.
Then he attacked President Bush for "turning a blind
eye to the bleeding" in his state. Next, he lit into
the greedy Bush-backed Texas energy firms for being "obstructionists."
Last week, he threatened to sue the Federal Electricity
Regulatory Commission and warned in a New York Times
op-ed piece that a refusal to cap energy prices would
wreck the nation's economy.
That's a lot of whining.
The Davis approach, as Vice President Dick Cheney phrased
it, was positively "goofy."
The best political strategy is to show leadership, not lunacy.
Nobody likes a whiner. That's why Davis' approval rating
in California, where he was elected by a landslide in 1998,
has slipped to 51%.
In another ongoing case of political PR, New Jersey Senator
Robert Torricelli, who has been under fire on a number of
fronts, has adopted a policy that might be called "involved
He has reacted "coolly" to some accusations, ignoring
others, and has spoken out forcefully on senatorial issues
such as the budget, the tax cut, and the switch of Senator
Jim Jeffords to independent status.
A three months' New York Times series has reported
in great detail numerous allegations against Torricelli
including strong-arming some contributors and accepting
illegal contributions; making stock market profits on privileged
information, and receiving a Rolex watch, Oriental rug,
large screen TV and ten made-to-measure Italian suits from
a mysterious Korean businessman.
Universally loathed by the right and only partially loathed
by the left, Torricelli doesn't have a lot of defenders.
But he is too bright to have adopted a whining PR strategy.
Nor has he chosen, as so many corporate executives do, to
"hide out" until the crisis passes.
While refusing to talk about the watch or the rug or the
suits, Torricelli nonetheless called an early press conference
to denounce his accusers.
"I have never, ever done anything at any time to betray
the trust of the people of the State of New Jersey. Never!"
he shouted, slamming the lectern defiantly. He has let his
lawyers handle the personal problems while he remains active
and visible doing the people's business.-by Fraser Seitel.
overwhelming majority of people (82%) say they have stopped
using a company's products when trust is broken, according
to a study commissioned by M Booth & Assocs., New York.
The study of 1,252 adults found virtually all consumers
(96%) say they have taken one or more steps when their trust
in a company is diminished-ranging from writing letters
of dissatisfaction (78%) to stopping use of a product as
a result of negative media attention (51%).
In the last year, many of those who say their trust in specific
companies decreased, said they stopped buying the products
and services of Firestone (58%), Nike (46%), AT&T (37%),
ExxonMobil (32%), and United Airlines (32%).
The study, which was conducted by Harris Interactive, also
shows a high percentage of consumers, who said their trust
in specific companies had gone down in the last year, refused
to buy the company's products and services (59%), bought
competitive products and services (46%), told their family
and friends not to buy the company's products and services
(25%), and wrote a letter to the company expressing their
dissatisfaction (15%). About 40% did nothing.