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GCI
GROUP RINGS UP $2M DELL ACCOUNT
Dell Computer awarded its $2 million PR account to GCI Group
in a pitch that included seven firms, according to Bob Feldman,
CEO of the firm.
He described the win as a huge shot in the arm for the high-tech
practice.
Jeff Hunt, who heads GCI Read Poland in Austin, and Diane
Gleason, the firm's tech guru in Boulder, will lead the
U.S. and Canadian part of the Dell account. They will be
supported by GCI units in New York, San Francisco, Chicago,
Dallas and Toronto.
Feldman said Hunt led the pitch. He credited the former
Burson-Marsteller exec's corporate and branding experience
as a big factor in landing the account.
GCI offices in Mexico City and Sao Paulo will support Dell's
business in Latin America.
The eight-week review came down to GCI, WeberShandwick,
Walt & Co. and a joint team of Waggener Edstrom and
Shepardson Stern + Kaminsky.
Barry French, director of communications for Dell's Americas
unit, said he was impressed with GCI's "creative thinking,"
its PR track record in the tech field and its "cost-effective
client service model."
Dell's annual revenues top the $32 billion mark.
PORTER NOVELLI LANDS MARCH OF DIMES
The March of Dimes picked Porter Novelli in a competitive
pitch to handle its three-year "national mission"
communications campaign, according to Stephanie Harwood,
who is in charge of the group's communications and media
relations.
PN's Washington, D.C., office was selected largely for its
anti-tobacco work and extensive experience in dealing with
health topics such as high blood pressure.
Debbie Lurie, senior VP at PN, and Colleen Ryan, account
supervisor, will handle day-to-day management of the MoD
work.
Ed Maibach, EVP and PN's worldwide director of social marketing,
will also provide counsel.
Harwood would neither disclose the budget nor the names
of the other firms that pitched the account.
She was VP-corp. comms. at PN from 1994-97.
Brodeur
Worldwide will cut 60 staffers following IBM's decision
to consolidate its account. The firm expects less income
as a member of Omnicom's One Blue team which is being put
together by sister company, Ketchum, to service IBM. Magnet
Communications and Text 100 are IBM's other firms.
SONICBLUE PARKS $1M ACCOUNT AT BOHLE
The consumer electronics and Internet services company SONICblue
has consolidated its seven-figure PR account at The Bohle
Co., after a review which included Porter Novelli and A&R
Partners.
The three firms previously handled assignments for SONICblue,
but the company wanted to centralize its PR at one firm,
according to Heather Stanger, PR specialist for SONICblue.
"It was a natural decision to go with Bohle because
we worked with them for quite a bit and were happy with
their efforts," she told this NL.
SONICblue, which encompasses the Rio, Replay- TV, and Loewe
brands, among others, unveiled a financial plan in June
to return to profitability in early 2002 after a net first
quarter loss of over $300M.
Sue Bohle, president and founder of Los Angeles-based TBC,
said she will oversee the account.
CLINTON
PITCHES FOR BRITS
Former president Bill Clinton has agreed to pitch Great
Britain as a good vacation spot in a promotional pact with
the British Tourist Authority.
The BTA will use the former President's picture on its website
and in various brochures.
Clinton, who attended Oxford University as a Rhodes Scholar,
is not getting paid for the pitch. His daughter Chelsea
plans to do postgraduate work at Oxford.
The British Hospitality Assn. estimates the number of foreign
visitors to the U.K. dropped 10 percent this year because
of the foot and mouth epidemic.
BSMG
HELPS BAHAMAS TOURISM REGROUP
BSMG Worldwide is helping client Bahamas Ministry of Tourism
cope in the aftermath of a devastating fire that destroyed
its Nassau headquarters and the Straw Market, a top tourist
attraction, according to Alice Diaz, director of BSMG's
travel and lifestyle practice. A vendor has been charged
with arson.
"We are responding to media requests" about the
fire that took more than eight hours to get under control,
she told this NL.
The firm also is providing communications and technical
support for the Ministry, which has tourism offices in New
York, Chicago, Dallas, Los Angeles and Aventura, Fla.
There were no reports of injury from the blaze though 300
guests at a hotel had to be evacuated.
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SPRINT
DIALS UP GOLIN/HARRIS
Golin/Harris International picked up the seven-figure Sprint
account in a competition that included eight PR firms. Burson-Marsteller
was the incumbent.
G/HI will handle corporate, media relations, issues management,
internal communications and government work.
Scott Farrell, G/HI's executive VP at its Chicago headquarters,
leads the account of the long-distance phone company. He
will be supported by G/HI staffers in New York and San Francisco.
Bill White, Sprint's VP-corporate comms., handled what he
called a "rigorous review process."
He said G/HI's "creative strategic counsel, planning
and support" are what separated the firm from the competition.
Sprint has revenues of more than $23 billion and employs
80,000 workers.
PUBLICIS
FLIES FLAG IN NEW YORK
Publicis opened for business Sept. 5 in its new 120,000
sq. ft. headquarters located at New York's Herald Square
opposite Macy's department store, which is the finishing
point of the famous Thanksgiving Day parade. The space houses
more than 350 staffers of Publicis Dialog, Publicis Advertising
and Optimedia International.
Bob Bloom, CEO of Publicis in the United States, said the
space was designed to "facilitate holistic thinking."
It features a "creative promenade" to showcase
the work of its talent, and a "glass enclosed elliptical
stairway" connecting Publicis' four floors of office
space.
That
stairway, according to Publicis* release, features a "transportive
environment with its own music, lighting and specially commissioned
kinetic sculpture to inspire creativity."
The canopy of the building carries the Publicis logo. It
will fly the U.S., French, Publicis and Optimedia flags.
The lobby will feature the latest Publicis campaigns.
Publicis will have a rooftop terrace equipped with lounge,
game room, large screen TVs, kitchen, basketball court and
showers.
Bryant Is In, Hasen Is Out at PD
Steve Bryant, Publicis Dialog's chief creative officer,
has replaced Jeff Hasen as president of its Seattle office,
which has 30 staffers.
PD president Andy Hopson says Bryant has been asked to beef
up the office's "branded and commodity foods"
businesses.
Bryant was responsible for publicity campaigns such as "world's
longest salad bar" for Hidden Valley Ranch Dressing's
25th anniversary and PetsMart's Rover makeover.
PD will soon name another executive to assist Bryant in
staff development and media relations.
Hasen, a veteran of Burson-Marsteller and Stoorza Ziegaus
& Metzger, left PD to "pursue other interests."
LASZLO & ASSOCS. FIGHTS GOSSIP
Laszlo & Assocs. is doing PR for wordscanheal.org,
a new group founded to "reduce gossip and verbal abuse
that is behind so much pain" in U.S. society.
It wants millions of people to take a pledge, agreeing to
"replace words that hurt with words that encourage,
engage and enrich."
The group was spawned by the co-authors of the Words
Can Heal Handbook --Irwin Katsof (an Orthodox rabbi
in New York), Chaim Feld and Hilary Rich.
The handbook tells of the need to promote the value and
practice of ethical speech to improve democracy and mutual
respect.
The organization believes gossip and bullying contribute
to problems in the country's schools.
It cites a National Education Assn. report that shows 160,000
children skip school each day because they are intimidated
by their peers.
Harsh political attacks are another area that is on the
group's radar. It plans ads in Roll Call, National
Journal, The Hill and Congressional Quarterly
promoting the need to tone down political rhetoric.
That has won the support of Sens. Tom Daschle, John McCain,
Harry Reid and Sam Brownback, who have proposed a "Words
Can Heal Day."
An all-star cast of Hollywood stars/artists (and frequent
grist for gossip columnists) supports wordscanheal.org.
Tom Cruise, Goldie Hawn, Bette Midler, Rickie Martin, Quincy
Jones, Florence Henderson and Rene Russo are among that
group.
Jennifer Laszlo, who has been handling media for the group,
says there will be a number of celebrity events for her
client.
Her firm has done work for the American Cancer Society,
American Assn. of School Administrators, American Israel
Public Affairs Committee, American Medical Assn. and the
Ford Foundation.
GATES
FOUNDATION ADDS PA FIREPOWER
The Bill and Melinda Gates Foundation has added Fleishman-Hillard's
Greer, Margolis, Mitchell, Burns & Assocs. unit and
Shepardson Stern + Kaminsky to its PA line-up, according
to Joe Cerrell, PA director of the charitable organization.
GMMB&A is to promote the Foundation's donations to libraries,
educational institutions and groups in the Pacific Northwest.
The Foundation, in August, gave $9.3 million to Chile to
buy computers for its 368 libraries. It also donated $1.2
million to fund technical training for 830 principals and
superintendents in Alabama, and $75,000 for a new Planned
Parenthood facility in Walla Walla, Wash.
SS+K will join Grey Global Group's APCO Worldwide in promoting
the Foundation's global health programs. A major initiative
is the Foundation's creation of a $100 million fund to combat
AIDS, which has taken the lives of 22 million people during
the last decade.
The Gates Foundation, which is based in Seattle, has $23.5
billion in assets.
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NEWS
RELEASE SLUMP HITS BW
Lorry Lokey, founder and CEO of Business Wire, told Dan
Fost, a columnist for The San Francisco Chronicle,
that his company's profits will be "cut in half"
in 2001 due to a decline in news releases sent out by its
customers.
Despite the slump, Lokey told this NL that Business Wire's
profits this year are "still well into the double digits
percentage wise, which is why we will be giving all our
staffers some $5 million in bonuses -about a month's pay.
And we'll still have to pay far more corporate income taxes
than that this year."
Lokey told Fost that BW, which he started in Oct. 1961,
had its best year in 2000, when revenues totaled $150 million,
and the company distributed more news releases than any
of its competitors, coming out on top with 50.5% of the
market.
This year has been a different story. During the first six
months of 2000, BW sent 138,000 releases, but the number
of news releases has dropped to 120,000 during the first
six months of this year.
Lokey, who is 74, said he thinks about retiring, but enjoys
himself too much. He said Cathy Baron Tamraz, who is executive
VP, based in New York, runs the company, and will step in
as CEO as soon as he says the word.
Lokey said the next step is to press forward with international
expansion.
DISTRIBUTOR
FINDS LOCAL NEWS NICHE
eNewsRelease.com,
a web-based news release distributor, said several national
companies have become clients of the company's HomeTowner
News Program, which feeds local news to thousands of newspapers
across the country about local residents.
The companies which have signed on with eNewsRelease are
using the service to send stories about local events and
employee promotions to targeted media outlets.
"We are fortunate to have found a niche, which fills
both the newspapers' need for local news content and our
clients' need to reach these hometown papers," said
Jon Victor, who is CEO of the Norwalk, Conn.-based company.
"It is increasingly clear that local news sell newspapers,"
said Victor, who cites as an example a recent front page
article in The Wall Street Journal about The Dunn
(N.C.) Daily Record.
The Journal's article said the Daily Record's market penetration
has grown 112% since being founded in 1950. The secret to
the paper's success is it offers loads of down-home news
that readers can't get anywhere else, the article said.
The Journal said scores of newspapers are coming to realize
that local news sells newspapers and retains customers.
eNewsRelease was started in 1997 by Charles Stackhouse,
and two partners, Elisabeth Stonehill and Max Oakes, as
Campus Release Network.
JEWELER PAYS AUTHOR FOR BOOK PLUGS
Bulgari, the Italian jewelry company, paid British author
Fay Weldon to write her new novel, entitled "The Bulgari
Connection." Weldon was paid by Bulgari for a prominent
place in the novel. The contract required her to mention
Bulgari at least a dozen times.
Weldon, who at one time wrote ad copy for Ogilvy & Mather,
made Bulgari jewelry the centerpiece of the novel, and Bulgari
approved the manuscript without a change.
The 200-page novel, which was written in less than six months,
is scheduled for distribution by Grove/Atlantic in the U.S.
in November.
The idea for the sponsorship originated with Francesco Trapani,
Bulgari's CEO. "When you take out an ad in a magazine,
you only have a certain amount of space in which to speak,"
he told W, the fashion magazine. "That is why
product placement -whether you're talking books, movies
or Hollywood stars-is so important to us."
Books Are Next Wave
Michael Nyman, president of Bragman Nyman Cafarelli, a PR
unit of Weber Shandwick Worldwide, believes books are part
of the next wave of product placements.
Weldon's agent, Giles Gordon, said he would recommend product
placements to other clients. Gordon said the current crop
of "chick lit" novels and memoirs about the lives
of young women offers potential for promoting vodka, cigarets,
clothing and other brands.
Letty Pogrebin, president of the Authors Guild, said product
placements erode readers' confidence in the authenticity
of the narrative. She said it adds to the cynicism. "Does
this character really drive a Ford or did Ford pay for this?"
Seagram Sponsored Novel
This is not the first time a company has commissioned someone
to write a book. Last year, as a publicity stunt, Seagram
sponsored a satiric novel that happened to involve Scotch.
Weldon is a well-known author who has written more than
20 literary novels, including a few best sellers.
MEDICAL JOURNAL SETS EMBARGO DATE
The American College of Chest Physicians, headquartered
in Northbrook, Ill., will release CHEST, the peer
reviewed journal of the ACCP, the second Tuesday of every
month starting Sept. 11.
"Setting an embargo date lets members and journalists
know when to expect news about new treatment methods, technological
innovations, and groundbreaking research," said Dr.
Robert Johnson, president of ACCP.
The publication has more than 23,000 readers.
(Media
news continued on next page)
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MEDIA
NEWS/JERRY WALKER
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WSJ
EXPANDS COVERAGE OF REAL ESTATE
Following on the heels of its success in niche markets with
CareerJournal.com,
StartupJournal.com
and OpinionJournal.com,
The Wall Street Journal has started RealEstateJournal.com.
The new website, which is free, offers information for buying,
selling, leasing, managing and investing in residential
and commercial properties.
Content comes from editorial resources of the Journal and
RealEstate.com's editorial resources, which keep the site
current with news, features and reports on important changes
in the real estate market.
Tony Lee, who is editor-in-chief, said PR pros should send
applicable information to Laura Lorber at [email protected].
STYLE
24/7 MAGAZINE MAKES DEBUT
Style 24/7, which went on sale Sept. 5, will publish
three more biweekly issues before switching to a weekly
schedule.
Brandusa Niro, the co-founder and editor-in- chief of website
Fashion Wire Daily, is editor of the new fashion and celebrity
magazine.
The 96-page premiere issue will be sold at supermarket checkouts
and newsstands.
The launch is a joint venture that also involves FWD and
MacAndrews & Forbes, which is Ron Perelman's investment
company and a leading investor in the fashion news service.
Romanian-born Niro had been a PR professional before starting
FWD about four years ago.
USA
TODAY DROPS TWO COLUMNS
USA Today is dropping columns written by Larry King
and Jeannie Williams. Both columns run in the "Life"
section of the paper.
Steven Anderson, a spokesman for the paper, said the columns
were dropped to make more space available for interviews
with celebrities and articles focusing on celebrity fashion
trends.
Anderson said there will also be a new feature called "Hot
Spots" about restaurants, clubs and stores that attract
a celebrity clientle.
PEOPLE
_______________________
Matthew Church, former editor of Browser and
Active magazines, is editor-in-chief of Illinois
Now!, a new quarterly magazine published by the state's
Bureau of Tourism.
The magazine, which debuts this month, will replace two
existing IBOT publications: the Fairs & Festivals
Guide and Weekend Adventure Guide.
Jorge Ramon, who joined Teen People in Oct.
1997 as its first fashion editor and most recently was senior
fashion editor, was promoted to fashion director. He will
oversee cover shoots, celebrity profiles and real teen fashion
stories.
Sue Callaway, who left Fortune last year,
was promoted to VP and general manager of Jaguar Cars North
America.
Callaway, 37, whose Fortune byline was Sue Zesiger, worked
six years for the magazine.
As a senior editor, she edited cover stories and special
issues, and wrote auto industry stories and product reviews.
She joined Premier Automotive Group in Dec. 2000 as director
of marketing.
Neal Conan was named acting host of "Talk of
the Nation," until a permanent successor to Juan Williams
is named.
Williams stepped down as host to become a senior correspondent
for National Public Radio News, providing commentary on
politics and other subjects for the Washington, D.C.-based
network.
This Newsletter erroneously reported the program had been
cancelled.
Bill
Flanagan, a business reporter for KDKA-TV in Pittsburgh,
was named chief communications officer for a new joint venture
dedicated to advancing economic and community development
in Southwestern Pennsylvania.
Flanagan, 46, will oversee a media partnership with KDKA-TV
and the joint venture involving the weekly talk show, "The
Sunday Business Page," which he co-produces and hosts.
The joint venture will assume production of the program
as a platform for community building and discussion of economic
development issues and opportunities in the 10-county region.
KDKA will provide TV airtime and production resources for
the program.
John
Concannon, who spent 35 years at Newsweek, and
Hugh Mulligan, a former writer for The Associated
Press, were honored at this year's Great Irish Fair in New
York. Concannon was given the Thomas J. Cutie Memorial Award,
and Mulligan received the Irish Bard Award.
MEDIA'S
IMPACT ON MARKET IS MINIMAL
Allan Sloan, who this year received The Gerald Loeb Lifetime
Achievement Award, which is business journalism's highest
honor, said the media's impact on the stock market is "far
less than we in the media would like to think that it is."
In an interview with Linda O'Byron, who is executive editor
of "Nightly Business Report," Sloan said the media
can affect the stock market for only brief periods.
"If we take a fact that is not generally known, and
we put it out there and change people's perceptions, we
can affect an issue-or possibly a market. But in the end,
we're sort of gnats riding on the elephant. And it's foolish
to think otherwise," said Sloan, who is Newsweek's
Wall Street editor.
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H&K's
COMPAQ WANTS TO MERGE WITH H-P
Compaq Computer, which is one of Hill and Knowlton's biggest
accounts, is merging with Hewlett-Packard in a stock deal
valued at $25 billion when announced on Labor Day.
H-P has the upper hand in the merger, billed as a way to
create the world's global technology leader.
Its shareholders will own 64 percent of the combined company.
H-P chairman/CEO Carly Fiorina will helm the entity, while
Compaq's chairman/CEO becomes No. 2. at the company with
combined revenues of $87 billion.
The deal, if completed, is slated to close by the second
half of next year. Wall Street has ripped the deal, driving
the stocks of both H-P and Compaq southward. The transaction
is now worth in the $18 billion range. The battering of
H-P's stock has effectively wiped out the premium it had
offered for Compaq. Wall Street wags are now calling the
deal a "takeunder."
Neither Maureen Blanc, H&K's U.S. technology director,
nor Michelle Clarke, deputy director, could be reached for
comment about the number of staffers devoted to the Compaq
account, which is handled out of H&K's Houston office.
Judy Radlinsky of H-P, identified her company's top PR firms
as Applied Communications, Hoffman Agency, Weber Shandwick
Worldwide and Golin/Harris International.
PR
FIRM PUBLICIZES EARHART'S FLIGHT
Haberman & Assocs., in Minneapolis, is handling publicity
of Ameilia Earhart's Flight Across America.
The flight is being sponsored by Gregory Herrick, a vintage
plane collector, who owns Historic Aviation, a 30-year-old
St. Paul-based company, which was acquired by Sky Media
in 1999.
Carlene Mendietta, a California dentist, will attempt to
duplicate Earhart's 1928 solo transcontinental route to
Los Angeles and back.
Earhart's flight recreation began on Sept. 6 at Westchester
County Airport, in White Plains, N.Y., a few miles from
the polo field at the Westchester Country Club, in Rye,
N.Y., which Earhart had originally used as an airfield to
begin her 5,500-mile journey on Aug. 30, 1928.
Mendietta will fly the same type of open-cockpit airplane
and stop over in many of the same places as Earhart did
on her historic flight to Los Angeles.
Two members of the PR firm will follow the flight to Los
Angeles in a Cessna, which is loaded with spare parts and
press kits.
When Earhart planned her trip, she hoped to avoid news media
attention, but her sponsor, George Putnam, the publisher
and author she would later marry, secretly promoted the
trip, alerting the news media in each community Earhart
approached.
This time Mendietta's progress will be posted on a website
(www.ameliaflight.com).
VW DRIVES PR ACCOUNT TO MARX LAYNE
Volkswagen of America, Auburn Hills, Mich., has named Farmington
Hills, Mich.-based Marx Layne & Co. its agency of record
for corporate and product PR.
The selection of ML ends a search that began in Nov. 2000.
VOA's PR was handled in house.
Steve Keyes, who is VOA's director of communications, said
the firm's responsibilities-for both the Volkswagen and
Audi brands-include strategic communications counsel, media
relations support, event marketing promotions and regional
PR throughout North America.
Michael Layne founded the agency in 1987. It has a professional
staff of more than 50 people.
EGYPT
TAPS VAN SCOYOC ASSOCS.
Egypt is using Van Scoyoc Assocs., a Washington, D.C., lobbying
firm, to provide information about Congressional policies
regarding U.S.-Middle Eastern relations.
Egyptian president Hosni Mubarak has urged President Bush
to take a more active role in finding a solution to the
Israeli-Palestinian conflict.
"America
is the only sponsor of the peace process," Mubarak
said in a TV broadcast last month. "The situation requires
America to take a stand. If the Americans hesitate, it is
dangerous for the region, for our interests and even for
the Israeli people," he said.
VSA's Mark Tavlarides is working on the Egyptian account.
He is a former director of legislative affairs at the National
Security Council.
VSA's contract is signed with Afridi, Angell & Pelletreau,
a law firm that has worked with Egypt since 1999.
CORPORATE PRO MILLER SIGNS WITH GCI
Corporate PR pro Steve Miller is now head of GCI Group's
technology practice, based in San Francisco.
Miller put in more than 20 years at Oracle, where he was
VP-global marketing and business development for its education
unit, and at Apple Computer.
Bob Pearson, president of GCI/The Americas, lauded Miller's
extensive technology, marketing and sales experience when
he predicted the executive would be an "indispensable
asset" for the PR firm.
Miller, who also worked for BankAmerica and GTE Sprint,
brings a worldly background to GCI.
He worked for Apple in Paris, consulted for Iceland's Oz
Interactive, and was COO for Alchemedia, an Israeli start-up.
GCI, which does PR for Intel and AltaVista, is part of Grey
Global Group.
Lisa McAllister, who was Michelin North America's
corporate spokesperson, has joined Hill and Knowlton to
head the Mazda North American Operations business. Mazda
is a 27-year client of H&K.
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PR OPINION/ITEMS
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United
Business Media's bid to purchase Medialink (Aug. 29
NL) has put the spotlight on British financial reporting
habits-which are off the wall, in our view.
These habits include emphasizing earnings before taxes,
operating earnings, underlying earnings, continuing earnings,
earnings before currency fluctuations, earnings before exceptionals
and earnings before amortization. The real earnings are
hard to find.
A degradation in U.S. earnings reports is also taking
place. "Separating reality from fantasy in (U.S.)
corporate earnings is harder than ever," wrote New
York Times columnist Gretchen Morgenson Sept. 2.
She said investors now realize that "the momentous
earnings reported by many companies in recent years may
have included a lot of hype, embroidery and fluff."
She noted the Commerce Dept. found after-tax profits of
the S&P 500 grew 5% from 1995-2000 while the companies
claimed a 9% growth. "Favorable accounting" for
stock options and gains in pension plans made the difference,
she said.
We
found a new term in the UBM financial reports-"Headline
profit." This means "profit before investment
in online businesses, new ventures, exceptional items, amortization
of intangible assets and taxation."
Louis Thompson, president of the National Investor Relations
Institute, said he never heard of the term and hopes it
doesn't reach the U.S. UBM said it didn't invent it and
that it's used by companies to help analysts and not as
a substitute for the usual key indicators.
UBM, formerly United News & Media, sold off $4.6 billion
in assets including the Daily Star and Daily Express
and major TV properties to become a mostly trade magazine,
e-business and market research company.
Staff was cut from 13,459 to about 6,000.
PR Newswire appears to be UBM's best acquisition.
Its profit margin in the first half of 2001 was 21.2 million
British pounds on sales of 66.9 million pounds or 31.7%
(although down from 34.9%). "Underlying profits,"
said UBM, were up 42%, helped by a staff reduction of about
150 of the total of 1,170.
About 65% of PRN's business is "regulatory in nature,"
notes UBM (companies are required to use PRN to meet disclosure
rules).
CMP, the Manhasset, N.Y., trade book and e-commerce company
that UBM purchased in 1999 for $920M (nearly double
sales), is having its problems.
UBM CEO Clive Hollick had told the Wall Street Journal
April 30, 1999 that CMPNet, UBM's online division, "is
well placed to capture the explosive growth in online advertising."
CMP's flagship publication, Information Week, was
off 45% in ad pages to 910 for the second quarter, according
to Adscope. Pages of all CMP publications were down 15%
in the first half to 18,771. About 400 staffers were cut
at CMP Media in the first half, according to one analyst
report (CMP reported 1,775 employees to Advertising Age
in July 1998). Members of the Leeds family that owned CMP
since 1971 left immediately after the sale was agreed upon
with UBM. They owned 68% of the stock, which was listed
on NASDAQ. The family included founders Jerry and Lilo Leeds,
parents of Michael Leeds, who became CEO, and Dan Leeds,
another son.
Arthur Page, whose biography was carried in the Aug.
15 newsletter, believed that PR was "90% doing and
only 10% talking about what was being done."
In other words, he was no great communicator. He had the
Pollyanna view that a company could be run so perfectly,
so in tune with the public interest, that it wouldn't have
to explain itself.
Here's one of his quotes:
"Large enterprises can be run so intelligently in the
public interest that the public will be satisfied and content
with their services."
Many companies follow this PR philosophy today. They let
their actions speak for themselves. They feel they*ll put
out good products or services and run a tight ship financially
and will need to say little, if anything, to the public.
Page was an elitist if ever there was one. A graduate of
Harvard, he was a member of the Harvard Club, New York Yacht
Club, Century Club in New York and St. James Club in London,
among others.
He got his job as the first PR head of AT&T in 1927
partly because a Harvard classmate, Walter Gifford, was
president of AT&T.
Page was an opponent of Franklin Roosevelt and his New Deal
reforms, saying that "in a country where the opportunity
to get rich is banned, the fate of the poor will be bad..."
He became the model for many PR executives. He saw PR's
job as counseling top management and even becoming a member
of it. That was where he was most comfortable.
He was also a member of The Wise Men, an elitist PR group
founded by John Hill of Hill and Knowlton in 1937 that continues.
The dominant groups in corporate PR today are the 300-member
Page Society and the 200-member PR Seminar. Both take members
by invitation only and neither will provide their membership
lists. Workiing press are barred from PR Seminar meetings.
--Jack O'Dwyer
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