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AMANA LISTENS TO PR PITCHES
Maytag's Amana division
is looking for a PR firm to promote its brand of refrigerators
and microwave oven products, Jim Powell, a Maytag corporate
spokesperson, told this NL.
Karen Davis in Maytag's
appliance group has been hearing pitches from PR firms.
She is at 641/787-6972.
Amana has promoted its
product reliability via the "built better than it has
to be" communications pitch. A recent product push
has been for the "Easy Reach Plus" freezer.
Maytag scooped up Amana,
which was founded in 1934, from Goodman Global Holdings
in a June deal worth $325 million. The company said Amana
would add $900 million to Maytag's $4.3 billion sales base.
Hoover, Dixie-Narco and
Jenn-Air are other Maytag brands.
BERGEN JOINS SIEMENS
Jack Bergen, president of the Council of PR Firms, will
join Siemens USA, New York, at the end of the year as senior
VP, corporate affairs and marketing.
Sarah Drennan, VP-operations of the Council, will be acting
president while a search for a new president takes place.
Before joining the Council, Bergen was PR head at CBS/Westinghouse
Electric; CEO of GCI Group, and president, Hill and Knowlton
USA. His salary was $200,000 annually throughout his CPRF
tenure. The CPRF has about $1 million in annual income and
currently about 120 members.
Bob Woodrum of Korn-Ferry International handled the search.
John Graham, chairman and CEO of Fleishman-Hillard, and
the 2002 Council chairman, heads the search committee for
Bergen's replacement.
Bergen told this NL the Council is considering a number
of candidates and expects to name his replacement by the
end of the month.
He said he had never sought another position or even responded
with an expression of interest to any inquiries by recruiters
since he joined the CPRF 40 months ago.
Siemens USA is part of Siemens AG, Munich, Germany, electronics
and engineering company with 460,000 employees in 193 countries
and sales of $74 billion in 2000. Siemens employs 80,000
in the U.S. and has sales of $17 billion+.
B-M CREATES BUZZ FOR 'IT'
Burson-Marsteller handled the Dec. 3 launch of the much-anticipated
Segway Human Transporter, according to Kerem Dinlenc, a
member of the B-M team.
The HT, which was called "It" or "Ginger,"
kept the "high-tech world abuzz for nearly a year,"
according to Reuters.
The New York Times said the mystery transportation
device has been the "subject of continuous fevered
speculation since provocative clues and predictions surfaced
in media reports last January."
"Good Morning America's" Diane Sawyer and Charlie
Gibson each gave the 65-pound scooter-like vehicle a spin.
Segway LLC envisions millions of people zipping along
on the electric-powered machine that is controlled by the
movement of the rider's body.
It predicts the Segway HT could "solve major urban
problems, such as pollution, congestion and livability."
Dinlenc identified B-M's Segway team members as Linda
Recuperio, U.S. brand marketing chair; Tracey Pontarelli,
mng. dir., and Jennifer Norton, dir.
SULZER MEDICA ASKS H&K
TO HANDLE CRISIS
Sulzer Medica, which wants to negotiate a $783 million
voluntary class action settlement with patients affected
by its recall of hip and knee implants, has invited Hill
and Knowlton to handle U.S. litigation and corporate communications.
The Switzerland-based company selected H&K without
a pitch. Beatrice Tschanz, director of corp. comms. at the
company, called H&K the "obvious choice" due
to its "understanding of legal issues."
Tschanz handled PR for SwissAir when H&K did crisis
PR for its crash off the coast of Newfoundland, Jim Cox,
H&K's U.S. director of client service, told this NL.
Cox, Harlan Loeb, head of its litigation asset group,
and Francesca Trainor, litigation specialist, head the Selzer
account.
Cordiant Communications
is chopping 1,100 jobs, or more than 10 percent of its workforce,
to counter the decline in PR/ad spending. The U.K.-based
combine, which is the ninth largest ad agency, expects full-year
revenue to fall in the $670 million range. That's down nine
percent from last year.
Cordiant last year bought Lighthouse Global Network, which
was parent to Morgen-Walke Assocs., in a stock deal worth
nearly $600 million.
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SEC WARNS ABOUT 'PRO FORMA'
REPORTS
The Securities and Exchange
Commission has issued an alert cautioning investors to "potential
dangers" of pro forma financial reports, while warning
companies that they could face legal action by issuing misleading
earnings reports.
"We believe it is
appropriate to sound a warning to public companies and other
registrants who present to the public their earnings and
results of operations on the basis of methodologies other
than Generally Accepted Accounting Principles," the
SEC said in a statement. "This presentation in an earnings
release is often referred to as 'pro forma' financial information."
The SEC expressed concern
that pro forma information, under certain circumstances,
can mislead investors if it obscures GAAP results, making
it difficult for investors to compare a company's financials
with other reporting periods and with other companies.
In a separate statement
of "Tips for Investors," the SEC encouraged investors
to look through pro forma results to find out "what
the company is not saying." The Commission also explains
how pro forma results compare with GAAP financials, and
how to read what a company is "assuming" from
a pro forma report.
In its statement to public
companies, the Commission cited specific examples of conduct
which could mislead investors.
The presentation of financial
results which are addressed to a limited feature of the
overall results - earnings before interest, taxes, depreciation,
and amortization, for example - misleads investors when
the company does not clearly disclose the basis of its presentation,
the SEC said, reminding companies of federal antifraud securities
laws.
The Commission said companies
should pay attention to the "materiality" of the
information that is omitted from a pro forma release, saying
statements of results that are literally true nonetheless
may be misleading if they omit material information.
The SEC "commended"
earnings press releases guidelines developed by the Financial
Executives Int'l and the National Investor Relations Institute,
saying companies should consider and follow those recommendations
before issuing pro forma results.
Unger
Wants Probe of Reg FD Impact
The SEC
should examine whether Regulation FD has "chilled"
the flow of corporate communications or "has given
rise to any other negative or unintended consequences,"
said departing Commissioner Laura Unger in a 22-page report
on the rule released Dec. 6.
While the
one-year rule has increased investor access to corporate
information, the worth of that info has not yet been quantified,
according to Unger, who voted against Reg FD.
Some members
of the various roundtables convened by Unger criticized
Reg FD for a decline in the quality of information.
Unger recommends
that the SEC examine both the amount of information being
disclosed and the type of information issuers are providing
in Form 8-K, webcasts, press releases and through other
modes of dissemination.
NEW ERA OF PR KNOWLEDGE OPENS
A new era of PR knowledge has opened with the creation
of a searchable database of everything on the O'Dwyer website
starting Jan. 1, 2001, said publisher Jack O'Dwyer.
The search engine will find any name or group of words
in a few moments from among the hundreds of thousands of
words on the site.
For instance, typing in the word "merger" in
the "Search O'Dwyer's" feature at the top left
of the first web page results in summaries of stories that
have "merger" in it (60 as of Dec. 5).
Clicking on the summary brings up the entire story including
pictures.
Typing in "Ketchum" brings up 62 stories mentioning
that PR firm.
A search of "PRSA" finds more than 70 stories.
The existence of the O'Dwyer search engine as well as the
major search engines such as Google and Yahoo means that
PR is more important than ever before, said O'Dwyer.
"Stories are forever since they're so easily accessible,"
he said. "No longer can an executive think, `Well,
the public will forget all about that by next week.' The
story will always be right there in one database or another,"
said O'Dwyer.
This will make all sorts of PR research easier and will
make new types of research possible, he said.
Prospective clients and employees of PR firms and companies
can check what the news has been, he said.
Someone searching for an individual might find him or
her in a web search, he added.
An agency can search to see how many mentions it has obtained
and compare this with other agencies.
Materials for feature stories or studies on topics such
as healthcare, travel and other subjects can be easily assembled
using the search engine, said O'Dwyer.
LIZZIE G., PEGGY S. SPLIT
Publicity powerhouses Lizzie Grubman and Peggy Siegal
have called it quits, Grubman's executive assistant told
this NL. She said the name of the firm is expected to go
back to Lizzie Grubman PR, which was launched in 1996.
Siegal has paired with Harriet Weintraub to form Harriet
Weintraub/Peggy Siegal PR to pitch celeb events and fashion
labels.
The Grubman/Siegal break-up is said to be amicable. The
two, who created Lizzie Grubman & Peggy Siegal PR in
2000, expect to do some joint promotion work in the future.
The combo may have soured earlier this year after Grubman
was accused of mowing down 16 patrons of the Conscience
Point Southampton nightspot with her SUV.
Weintraub formed HWPR this year.
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CELEB PUBLICIST
RAPS ACCESS DEALS
Hollywood
PR pro Warren Cowan, who is profiled in the November issue
of Los Angeles magazine, said publicists who withhold
access to bigger stars unless journalists commit to covering
the also-rans, are "immoral."
"I
have never played one client against the other," the
77-year-old PR pro, who has been handling celebrities for
six decades, told Amy Wallace. "I always go back to
creating news," Cowan said.
"I
feel strongly about not misusuing power," he told Wallace,
who compares him to PMK's Pat Kingsley, who began her career
as Cowan's secretary.
Wallace
said Kingsley, whose firm controls media's access to 300
stars, "makes demands, seeking to control not just
who writes stories about and shoots images of her clients,
but what questions are off-limits and where stories will
be placed."
"Kingsley
and her partners, who are known to blacklist journalists
who won't agree to their terms, have used America's fascination
with celebrity to give publicists more leverage than ever
before," said Wallace.
"Cowan,
by contrast, is of the old school. He doesn't yell, preferring
instead to seduce and cajole," said Wallace. "His
approach is less adversarial and more complementary-a product
of the era in which he started out, when movie stars needed
the general interest media more than the media needed them."
Cowan told
Wallace he has long used press coverage not just to make
his clients famous but to get them work. For that reason,
he has never publicized who his clients are.
He wants
the studio heads to read a story about one of his clients
and be impressed, and not to think he planted it, said Wallace.
Rogers &
Cowan was founded in 1950 when the now-deceased Henry Rogers
made Cowan a partner. In 1987, R&C was sold to Shandwick
(which was later bought by Interpublic).
Cowan left
the firm in 1994, just days after his noncompete clause
expired, to open his own agency, Cowan and Assocs., in Beverly
Hills.
JOURNAL TO ADD NEW SECTION
IN APRIL
The Wall Street Journal will start a fourth section
on lifestyles, called "Personal Journal," on April
9.
Beginning Jan. 2, the Journal will increase from
80 pages daily to 96. Of these, 24 pages will be color-capable,
up from eight pages at present.
The Journal will also have a cleaner and clearer
design that will include increased aids to navigation, more
color and fewer typefaces. For the first time since World
War II, the front page will sport a new design, which will
include color.
The Personal Journal section will be published every Tuesday,
Wednesday and Thursday and it will offer readers content
focused on the "business of life" including personal
investing, travel, health and family, autos and consumer
electronics.
Dave Kansas, who covered the financial markets for the
Journal before becoming the founding editor-in-chief of
TheStreet.com,
was named managing editor of The Wall Street Journal Online.
Kansas will direct and expand the Online Journal's coverage
of money, investing and personal finance.
The "Weekend Journal," a section which focused
on leisure activities, will continue to run every Friday.
PLACEMENT TIPS
Arthur Levitt,
the former Securities and Exchange Commission chairman,
will contribute a monthly column for Bloomberg Personal
Finance magazine starting next spring.
Levitt's column will replace the "Opener" op-ed
written by Bloomberg LP founder Michael Bloomberg, who has
been elected mayor of New York. Levitt's columns will focus
on investor-rights issues.
Elizabeth Shea,
principal and co-founder of The SheaHedges Group, and who
was recently named the top PR pro for 2001 by Washington
Women in PR, told The Washington Business Journal
she has a rule to never start a pitch with a reporter by
saying: "There is this company you should know about."
Janet Guyon,
a senior writer, is succeeding Justin Fox as European editor
of Fortune magazine.
Fox, who is based in London, is moving to New York as
editor-at-large and to oversee economics and economic policy
stories.
Guyon, who will relocate to London, will continue to cover
economics, multinational companies, and profile CEOs.
Katrina Brooker and Devin Leonard were promoted from writers
to senior writers at Fortune.
Brooker will continue to profile CEOs and companies; Leonard
will remain writing middle-of-the-book features, including
stories covering the real estate and media beats.
MOVED
USA Today
has moved its headquarters to 7950 Jones Branch dr.,
in McLean, Va. The new phone number is 703/854-3400, but
the last four digits of all personal extensions will stay
the same.
Town & Country
has moved its offcies in New York to 1790 Broadway,
14th floor, for five weeks due to construction. Press releases
and other correspondence should still be sent to the magazine's
current address at 1700 Broadway. 212/903-5000.
Crain Communications
has relocated its company headquarters and three
of its Detroit-based publications to new offices.
The new address for Crain, Automotive News, AutoWeek
and Crain's Detroit Business is 1155 Gratiot ave.,
Detroit, MI 48207-2997. 313/446-0361.
(Media
news continued on next page)
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MEDIA
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HOSPITALS GET NEW PRESS GUIDELINES
Only a one-word description
of a patient's medical condition should be released to the
media without prior patient authorization, according to
new guidelines issued by the Society for Healthcare Strategy
and Market Development of the American Hospital Assn., headquartered
in Chicago.
The document, entitled,
"Guidelines for Releasing Information on the Condition
of Patients," also recommends:
-Hospitals should not
release any information (beyond the one-word condition)
about patients who arrive by fire department or other public
ambulance -even though these cases become a matter of public
record.
-Celebrities and public
figures have the same rights to privacy of medical information
as everyone else.
-Patients can "opt
out" of providing information altogether-including
confirmation of their presence in the facility.
-To safeguard patient
privacy, hospitals should not routinely disclose patient
room information to the media.
EXPERTS FORECAST AD RECOVERY
Ad forecasters predicted last week at the annual UBS Warburg
media conference that ad spending will start to recover
by the second half of 2002.
Robert Coen, senior VP at Universal McCann, said U.S.
media spending will rise 2.4% to $293.3 billion in 2002,
after falling 4.1% to $233.7 billion in 2001.
He believes spending will start to rebound in the first
quarter, driven by increased ad spending on the Winter Olympics,
congressional elections and financial services and pharmaceutical
brands.
The recovery will be "fully underway by the end of
the third quarter," he said.
Jack Myers, editor of Jack Myers Report, predicts
spending will decline 5.7% in 2002 after falling 6.8% this
year.
Lauren Fine, an analyst with Merrill Lynch, predicts spending
will drop .5% in 2002 after falling 5.1% this year.
She sees a recovery coming late in the third quarter of
2002.
MEDIA BRIEFS
Martha Stewart
Martha magazine's
premier issue is now available on newsstands in Japan.
Between 60% and 70% of the editorial content is from Martha
Stewart Living magazine, while 30% to 40% is new editorial
created by Martha Stewart Japan's editorial staff led by
editor-in-chief Sachiko Oshima.
The magazine has an initial distribution of 115,000 copies
and will be published six times in 2002.
In the U.S., Martha Stewart Living plans to publish
two more special issues in 2002, devoted to finance and
travel.
Spanish-language
talk show host Cristina Saralequi is ending her daily
TV talk show "El Show de Cristina" on the U.S.
network Univision.
The program, which has been the #1 rated Spanish-language
talk show seen worldwide by an estimated 100 million viewers,
will end its 12-year run on Dec. 14.
Saralequi is in the final stages of negotiations with
the network to continue hosting and producing "Cristina,"
a version of her daily show, airing Monday nights at 10p.m.
(ET).
Marcos Avila, who is Saralequi's business partner and husband,
is executive producer.
Colorado's Supreme
Court has extended First Amendment protection to
newsletters and commercial publications that print stories
of "legitimate public interest."
Justice Michael Bender, writing for the court, said it
has long been held that a profit motive does not transfer
a report about a legitimate matter of public concern into
"commercial speech."
Courts have repeatedly held that mainstream newspapers
and magazines are protected if what they publish is of legitimate
public concern and is newsworthy. The same should be applied
to nontraditional magazines and newsletters, Bender said.
PEOPLE
John Lamm
won the Motor Press Guild's Dean Batchelor Award for his
retrospective on the original Corvette Sting Ray which appeared
in the July 2001 issue of Road & Track magazine.
Laurel Lund,
former editor of Delicious Living and founding editor
of Natural Home, was named group editorial director
of Vegetarian Times and Better Nutrition.
Sharlene Breakey,
previously editor-in-chief of Working Women, was
named deputy editor of Redbook.
Joe Yonan,
formerly assistant metro editor at The Boston Globe,
was appointed travel editor.
Chris Lawson
has joined Men's Health as deputy editor/international.
He can be reached at 610/ 967-5171.
Angela Matusik,
from editor to features editor of InStyle magazine.
She is at 212/ 522-4455.
Anthony Lewis,
74, is retiring from The New York Times. His last
column will run Dec. 15.
Bruce Ingersoll,
60, a Washington, D.C.-based reporter for The Wall Street
Journal, who covered the agriculture industry, died
Dec. 1 of myelodisplastic syndrome.
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HIMLER COMMENDS PR FOR POST
9/11 WORK
While some PR practitioners
were not smart enough to rethink their media relations campaigns
just after the Sept. 11 attacks, most found journalists
were approachable for the "right" kind of story,
according to Peter Himler, who handles media relations for
Burson-Marsteller.
"Yes, there were
some knuckleheads out there issuing exploitative news releases,
but the profession as a whole acted responsibly and sensitively
in the face of these unprecedented and extraordinary events,"
Himler told 200 New York-based communications pros at a
breakfast sponsored by Business Wire.
He said that "many
of us were quickly pressed into action to ensure that information
was communicated accurately and in a timely manner."
Himler said journalists
turned to PR pros to get answers to questions, such as:
Where do victims and their families go to seek assistance?
Will insurance companies cover one's losses? How does one
find out if his or her flight was canceled? Where can one
seek professional grief counseling? What do I tell my kids?
"For these questions,
and countless others, the PR professional, in the aftermath
of Sept. 11, truly demonstrated his real value.
"The media not only
welcomed and appreciated being fed this kind of information,
but they actively sought it out," said Himler.
Himler said publicists
need to be more targeted in their media outreach. "Check
out the reporter online before picking up the phone or dashing
off an e-mail. The right story pitched to the right reporter
at the right time of day--absent a terrorist attack--should
find a receptive ear," he said.
ENRON STARTS DUMPING PR FIRMS
Several divisions of Chapter 11 Enron have begun to cancel
their PR contracts.
Don Middleberg, whose New York-based PR firm handled Enron
Credit, said he got a letter on Friday, Nov. 30, saying
the retainer contract had been terminated.
"Fortunately for us, their account was current because
they were good about paying their bills," said Middleberg,
who noted the division had previously reduced their retainer
fees.
Diane Bazelides is Enron's managing director of marketing
and PR and Mark Palmer is VP of PR.
Other PR firms used by Enron in the U.S. include the Hirst
Co., Albuquerque; Bates Churchill, Houston, and Bitner.com,
Ft. Lauderdale, Fla.
"We are on hiatus, but hope to resume work for Enron
once the company reorganizes," said Gary Bitner, CEO
of Bitner.com.
John Cordova, president of the Hirst Co., said his firm,
which has handled Enron Transportation and Storage, based
in Omaha, Nebr., for the past two years, has not gotten
a cancellation notice.
The agency, which has a handshake agreement, is paid $5,000
a year to do media monitoring and community relations for
the division, which operates a pipeline across New Mexico.
Cordova said it will continue to do the work until told
to stop.
PUBLICISTS MAKE BLIND PITCHES
Most PR practitioners (61%) don't know the publication
or reporter they are pitching, according to a new study
of South Florida editors and reporters.
While more than 50% of those interviewed listed this as
their biggest complaint, 80% of journalists admit they work
frequently with PR executives to gather leads and build
their stories, and 94% rely on news releases as a source
of information.
The study, conducted by Florida International Univ. PR
students, was based on interviews with 32 broadcast and
print journalists.
Out of that group, 24 are print journalists.
Questions included how journalists prefer to get news
and information and whether they thought PR pros do a satisfactory
job in knowing the reporters and building a rapport with
them.
Among the findings:
-Fewer than 10% were interested in a local angle to a
story.
-70% want fact-filled releases, and a majority were concerned
about releases or pitches that buried or left out relevant
but negative information.
-68% of journalists prefer to get their information via
e-mail.
-63% say the releases are average to well-written.
-81% of journalists like to work with PR practitioners
who know the media or beat and are understanding and polite.
-Fewer than 10% of PR people try to build a relationship
with the journalist, the study said.
PUBLICIS DIALOG WINS REDLINE
Redline Networks has selected Publicis Dialog to launch
a B2B campaign to educate consumers about its "real-time
acceleration" technology products.
Tony Tissot, Redline's director of communications, said
PD was chosen in a pitch because of its strong press contacts
in the New York market and its good technology background.
He would not disclose other contenders.
PD's ownership by France's Publicis Groupe also helped
it land the account. "We just opened a sales office
in Paris," said Tissot, who formerly was at Siemens.
Tissot said PD's executive principal Lucy Siegel will
oversee Redline's account. She had run her own firm before
it was acquired by Lobsenz-Stevens, which in turn was acquired
by PD. Veteran counselor Howard Geltzer, who sold his high-tech
firm to PD in 2000, also will work on the business.
Redline received a $10 million Series B round of funding
from Advanced Technology Ventures in July, and completed
the move in September to a new headquarters in Campbell,
Calif.
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PR OPINION/ITEMS
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The
abuse of earnings reports has reached such a stage that
the SEC has warned companies they face legal action
if they continue it (page 2).
Enron, which has gone
spectacularly bankrupt, used a device called "Special
Purpose Entities" which allowed it to have off-balance-sheet
loans.
The tactic was attacked
in a Wall Street Journal op-ed piece Dec. 4 by none
other than a partner of Andersen, Enron's own CPA firm.
Who puts out all these
misleading and confusing earnings reports? IR professionals.
For a sampling of their
work, we looked at the reports via the 14 corporate members
of the 17-member National Investor Relations Institute board.
NIRI, founded in 1970,
promised to keep investors informed in good times and bad.
NIRI was set up to be dominated by corporate, not agency
people.
We
found many examples of what the SEC is complaining about
among the 14 reports.
The 3Q Whirlpool
report (IR director Thomas Filstrup) was criticized by TheStreet.Com,
which said the company's earnings are "all wet."
Writer Peter Eavis said that if the earnings were given
a "good wash" they could "shrink like a mohair
sweater that's been through the hot cycle."
Whirlpool's own headline
said it increased third quarter "Core earnings-per-share
49%" to $1.46 from 98 cents. Actually, Whirlpool lost
$94M in Q3.
Eavis believes "core
profits" could have been 25% lower if income were excluded
from "two arguably nonoperating sources such as Brazilian
tax breaks and the company's pension plan." He also
wonders if the "restructuring charges" contain
operating expenses since they are taken with such "regularity."
BellSouth's
Q3 report spoke of an increase in DSL customers and data
revenues and skipped (until the bottom of the second page)
the real earnings: $7 million net in Q3 vs. $1 billion net
in the 2000 Q3.
Only four of the 14
reports gave "real" earnings first. Five
of the 14 lacked balance sheets.
Among the best reports
were those from Olin
(Richard Koch) and Tiffany
(Mark Aaron). Olin reported in the first sentence
a Q3 loss of 45 cents a share vs. a profit of 52 cents and
said sales fell to $334 million from $413M. Tiffany said
in the first sentence that sales fell 10% to $333M and net
fell 34% to $24M in Q3. Cendant
(Samuel Levenson) had the Q3 headlines: "Adjusted EPS
of 32 cents meets current projection; Adjusted EBITDA (less
interest, taxes and depreciation) increased 18% to $603M."
The fourth sentence in the headline said "reported"
EPS was 23 cents vs. 29 cents. It was not until the seventh
page of the 12-page release that we found the full earnings
stats: revenues of $2.4B vs. $1.2B and net of $210M vs.
$214M (23 cents EPS vs. 29 cents). Cendant admitted in 1998
that three years of profits totaling $640M were false.
Brooks
Automation (James Chiafery) reported its net loss
before amortization, restructuring, acquisition charges
and other items. Heidrick
& Struggles (Lynn McHugh) reported an "adjusted"
21-cent EPS loss first. GAAP loss was 40 cents.
Jack Bergen is leaving
the Council of PR Firms (page one), raising the question,
what has this group accomplished in four years?
It's a creature of the
big public ad agencies that want control over the PR agency
business the same way they control the ad agency business.
There are virtually no independent ad agencies left. Interpublic,
Omnicom, etc., wanted to duplicate this in PR. They particularly
wanted control of the PR firm rankings so they could pump
in all sorts of numbers, combine operations, and boost their
PR units to the top of the rankings.
The CPRF started collecting
numbers, absolving all firms of supplying account lists
or proofs such as W-3 forms, CPA statements, etc. This would
save the parents of the big PR firms tens of thousands of
dollars each in CPA fees. The takeover of the rankings did
not succeed since 171 PR firms supplied the usual proofs
to the O'Dwyer rankings last year. The holdouts were a dozen
of the big PR firm members of the CPRF.
The top ten had paid
$50,000 a year each in dues and other big firms paid nearly
that amount.
CPRF started as the "American
Assn. of PR Firms" in 1997. Questionnaires were sent
to 5,000 firms but only 400 responded. There were just 38
founding members as of April 1, 1998. The total is now 120
out of at least 10,000 PR firms in the U.S. counting sole
practitioners.
Some
former members of the CPRF who are independents are going
to start their own group. "We had nothing in
common, we had totally different agendas from the big ad
agency-owned firms," they said. Some said they were
"constantly pitched to sell our businesses...we felt
like little animals in a cage being looked over." One
said, "When you sell to an ad agency, you become one."
The finest moment of the CPRF was the speech it hosted by
former Clinton press secretary Mike McCurry in which he
said the PR field needs to explain and promote itself. "We
should exalt those who deal in the facts," he said.
The CPRF has not promoted PR but rather integrated marketing.
It believes in "campaigns that require a strong visual
and emotional component," said Bergen. We had hoped
McCurry would become a PR leader.
--Jack O'Dwyer
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