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PUBLICIS ACQUIRES BCOM3 FOR
$3B IN STOCK
Publicis Groupe is acquiring
Bcom3, parent company of Manning, Selvage & Lee, for
stock worth $3 billion, a deal that creates the No. 4 ad/PR
combine.
Lou Capozzi, CEO of MS&L,
said he is "invigorated" by the news. The key
benefit, to Capozzi, is the ability to provide clients,
"truly multicultural" PR services. He noted that
MS&L will be owned by the No. 1 firm in Europe, and
have access to the important Japanese market. Tokyo-based
Dentsu, which owned 21 percent of Bcom3, will own 15 percent
of Publicis.
Of PR management following
the merger, Capozzi said nothing has been discussed other
than MS&L will be a "business unit" of Publicis,
and the Bcom3 structure will disappear. There has been no
decision on whether the MS&L name will survive. Publicis,
however, maintained the Rowland brand following the acquisition
of its Saatchi & Saatchi parent.
Publicis, when the deal
is completed on June 30, will have annual revenues of $4
billion and 38,000 employees. Its CEO Maurice Levy will
remain in the top spot, while Roger Haupt, Bcom3 chief,
is to become president.
KETCHUM UNIT HANGS UP ON AT&T
The Washington Group has resigned its $20,000-a-month
AT&T lobbying account due to a client conflict with
Cingular Wireless, which is handled by its parent company,
Ketchum.
TWG chairman John Raffaelli said dropping AT&T was
the logical thing to do. Cingular, a joint-venture of BellSouth
and SBC Communications, is a multi-million dollar client
at Ketchum, Raffaelli told Influenceonline.
Omnicom's Ketchum acquired TWG in January of last year.
It named former New York Rep. Susan Molinari as CEO in October.
OGILVY SETS UP NUKE RESPONSE
UNIT
WPP Group's Ogilvy PR Worldwide has established Counter
Threat to help companies deal with disruptions caused by
nuclear, chemical or other terror attacks.
Chairman Bob Seltzer, in setting up the unit, noted that
potential clients are more likely to face an external, rather
than a specific corporate attack especially in light of
the news of the past six months.
The "I Have a
Dream" Foundation, New York, which helps disadvantaged
children, is seeking a PR firm at a $10,000 monthly retainer.
It is based at 330 Seventh ave. Edwin Rosado wants proposals
by March 21 ([email protected])...Shepardson
Stern + Kaminsky is counseling NBC, which is facing
spirited opposition from its plan to air hard liquor ads.
Rep. Frank Wolf vows to tighten rules on broadcasting.
TRG GOT $100M FROM CIA
The Rendon Group received close to $100 million over a five-year
period from the Central Intelligence Agency, according to
investigative reporter Seymour Hersh. TRG, which signed
a $100,000-a-month contract with the Defense Dept. in October
to advise it on how to handle the war on terror, was hired
by the spy agency in 1991 to provide media relations for
the Iraqi National Congress.
TRG, at that time, represented the Citizens for a Free
Kuwait, which was a front group for the exiled royal family
that was booted out of their country by Iraq.
Hersh, writing in the March 11 New Yorker, says
TRG also hired Linda Flohr, a 27-year veteran of the agency's
clandestine service, after she retired in 1994. Her last
assignment was for the "top-secret" Iraqi Operations
Group. Recently, Flohr was named director of security for
the Office of Homeland Security and director of counter-terrorism
for the National Security Council.
A TRG spokeswoman, who wished to remain unidentified,
said : "We have nondisclosure clauses in our government
contracts, so I can't comment on either the CIA or State
Department work." Anya Guilsher, from the CIA's PA
office, said, "I don't have anything on that for you."
RFP SOUNDS LIKE SET-UP FOR
ANVIL
A current RFP for a New York educational foundation mirrors
almost exactly the requirements for winning a Silver Anvil
of PR Society of America.
The RFP sets out a four-step process that includes assessment
of needs, collecting and analyzing data; developing strategies
and creating a time-table; executing the plan, and evaluating
what took place.
The Lund Group, which received the RFP, wrote the foundation
that it would not pitch the account because most PR work
by agencies does not fall into such a four-part format.
There were 736 entries last year but four PR firms walked
off with 18 of the 46 Anvils or more than a third of them.
Non-member entry fee is $350.
Ketchum,
F-H Are Big Winners
Ketchum has won 45 Anvils in the past eight years (including
a record 10 of the 46 awarded last year) while Fleishman-Hillard
has won 32 in six years.
Burson-Marsteller, the biggest PR firm, has taken home
only one in the past five years. Edelman PR Worldwide, the
leading independent and which has 103 members of PRSA, has
won four in five years. (Continued
on page 2)
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RFP
SOUNDS LIKE ANVIL (continued
from page 1)
In 1992, 22 of the 403
Anvil entries were tossed because their binders were over
three inches when measured from the outside. That's the
outside measurement of the standard "three-inch"
binder. The next size is a two-inch binder.
Contestants who went
out and bought a "three-inch" binder were eliminated
since PRSA measures the binder from the outside rather than
the inside. On the outside, the measurement is 3.5 inches.
Hundreds
of Entries Tossed
This rule is in the extensive
instructions for submitting an entry but was missed by many
contestants for many years. It's probable that more than
200 entries were tossed because of this rule. PRSA kept
the entry fees and did not tell the contestants the reason
for the rejection.
Starting in 1993, the
reason or reasons for rejection were told to the contestants.
Lou Capozzi of Manning, Selvage & Lee instituted the
reform.
Contestants who obeyed
all of the rules could get 44 points in the judging process
while those who broke some rules could get a maximum of
40 points.
Judy Rich, former Ketchum
executive, and counselor Amanda Brown, who conducted a class
on how to win an Anvil in 1990, said that 31 entries were
dumped that year just because of the three-inch rule.
They advised devotion
to the four-part rule: an entry should give equal space
to each part. A 100-page entry, for instance, would have
25 pages on each.
The official Anvil advice
on PRSA's website states: "Media clips alone are insufficient!"
(PRSA's exclamation point.)
Rich and Brown said that
one entry that was 90% clips was tossed because it broke
the four-part rule. Leaving out any part automatically disqualifies
an entry, they said.
Entries in the wrong
category are also rejected since judges don't have the authority
to shift the entry to the proper category, Rich and Brown
noted.
JOANN VISITS JOHANNESBURG
Joann Killeen, president
of PR Society of America, was in Johannesburg, South Africa,
for about a week for a meeting of the new "Global Alliance
for PR and Communications Management" that was formed
at the PR World Congress in Chicago Oct. 25, 2000.
The meeting took place
March 1-3. Killeen, reached by e-mail upon her return home
March 6, said she would have nothing to report about the
meeting for several weeks.
About 24 PR groups are
members of the Global Alliance including the Canadian PR
Assn., the Confederation of European PR Societies, and PR
groups from Mexico, Ireland, Australia, New Zealand, India,
Romania and Slovenia.
A statement by the Alliance
says it was formed because, "In this new century, more
and more PR practitioners represent organizations that transcend
national boundaries... everyone is increasingly affected
by global trends and issues."
PR people and their associations,
it further said, "have felt a need to share ideas and
best practices, seek common interests and standards, and
better understand the unique aspects of each culture in
which practitioners operate." Executive assistant of
the Alliance (PRISA) is Susan Richardson ([email protected]).
The notice of the meeting
said, "If you are going to make this a business and
pleasure event, talk to your travel agent because you can
fly from Sun City direct to Cape Town." Also a website
is www.
saconvention.co.za.
PURDUE PHARMA BEGINS
ANTI-DRUG PUSH
Purdue Pharma has begun
a PR push to raise awareness of prescription drug abuse
amid widespread reports of abuse and overdoses of its own
popular painkiller OxyContin.
"Abuse of prescription
drugs is painfully obvious and has become more apparent
in the last 18 months," Merle Spiegel, director of
corporate communications for Purdue Pharma, told this NL.
She said a six-month,
10-state PSA campaign, a website called "Painfully
Obvious," and classroom campaigns aimed at "tweens"
are all part of the drug maker's plan to raise awareness
of the issue. She said PP's goal is to get other drug companies
and organizations involved in a coalition to fight prescription
drug abuse.
Fern and King Communications,
a Washington, D.C.-based political consulting firm, and
Stamford, Conn.-based North Castle Partners, a marketing
firm which targets teens, are handling the campaign, which
will focus on Appalachian states where abuse of prescription
drugs is at its worst.
OxyContin rings up $1
billion in sales annually for Purdue Pharma.
Purdue's PSAs, which
do not mention OxyContin, are running in publications with
"opinion readers," such as The Washington Post,
Boston Globe and other Beltway papers, she said.
H&K PUTS DOCTOR IN CHARGE
OF HEALTH
Hill and Knowlton, which is owned by WPP Group, has tapped
Reyn Archer, a medical doctor, to head its Washington, D.C.,
healthcare practice as a managing director.
Archer, an obstetrician, served as the commissioner of
health for the Texas Department of Health from 1997-2000,
when he chaired a committee of 10 border states on U.S./Mexico
health issues. He previously spent two years in Kazakhstan
developing a tuberculosis eradication program for Millwood,
Va.-based Project HOPE, and was U.S. Deputy Asst. Secretary
for Health, Population Affairs at the U.S. Dept. of Health
and Human Services.
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BOSTON REPORTERS
WELCOME NEWS TIPS
The lifestyle
and entertainment editors and reporters at three Boston-based
trendy publications and the city's two daily newspapers
said they depend on PR practitioners to keep them informed.
The panelists
at a Feb. 26 meeting hosted by the Publicity Club of New
England in Boston, said the key to getting coverage is for
PR pros to stay on top of the entertainment and lifestyle
circuits and current music trends. They stressed the need
for timely and newsworthy information.
The panelists
were: Lauren Falcone, features writer, The Boston Herald;
Carly Carioli, event editor, Boston Phoenix; Jeff
Lawrence, publisher/editor, Weekly Dig; Julie Short,
managing editor, Improper Bostonian, and Jim Sullivan,
music reporter, Boston Globe.
Don't Pitch
Bad Stories
All of the
panelists stressed the need to know the publication and
know the writer before calling to pitch them "Make
sure you pitch the right person," said Short. "Read
the magazine or ask."
"Don't
pitch bad stories," Sullivan said. "If you don't
believe what you're pitching is great, neither will I. I
can't be fooled. It's better to admit it's not great, but
put an interesting spin on it and hope you hit me on a slow
week."
"Don't
call me after you have read one of my stories with a similar
angle," said Falcone. "Wait at least six months
and be time sensitive to the cycles of the year, holidays,
etc."
'Be Outrageous'
Lawrence
stressed the need to make the story stand out from the rest
of the pack. The Weekly Dig strives to have content unlike
anything else available in Boston. "Avoid the normal,"
Lawrence said. "Be outrageous to get noticed."
It's imperative
to know the deadlines of each editor before pitching them.
"I
don't mind being deluged with faxes, e-mails, phone calls,
just make sure I get the info when it's timely," Carioli
said. "My stories are slotted eight days out so make
sure you get me the info in time."
Lawrence:
617/426-8942; fax: 426-8944; jeff@
weeklydig.com.
Sullivan:
617/929-2820; fax: 929-3186; jimsullivan
@globe.com.
Short: 617/859-1400;
fax: 859-1446; Julie_Short
@improper.com.
Carioli:
617/536-5390; fax: 859-8201; ccarioli@
phx.com.
Falcone:
617/426-3000; fax: 542-1315; lbfalcone
@bostonherald.com.
AJC AIMS NEW
SECTION AT IMMIGRANTS
The Atlanta
Journal-Constitution has launched a global news section
that is aimed at the city's immigrant population, which
grew by 82% between 1990 and 2000.
The eight-page
weekly section, called "Atlanta & The World,"
will feature global news with a local angle. The first section
appeared Feb. 20.
Raman Narayanan,
who was with CNN International for two years as a senior
writer and editor, joined AJC in January as editor of the
section.
Susan Stevenson
is deputy managing editor in charge of the new section,
which has a staff of four fulltime reporters with specific
beats-Moni Basu (Global Connections), Mark Bixler (Immigration),
Shelia Poole (International Communities) and David Goldberg
(Business/Globalization).
Narayanan,
a native of Malaysia, said the section will seek a balance
between traditional "hard" news and "soft"
news.
The first
issue had a story about a Muslim family in Atlanta heading
off on the Hajj, a story on the city's changing international
mix and an essay by Secretary of State Colin Powell.
KOPPEL STRIKES
BACK IN OP-ED PIECE
"Nightline"
host Ted Koppel said in his first public comments on ABC's
effort to replace his program with David Letterman's entertainment
show, "Late Night," that his news program "ought
to have a place in TV's expanding universe, and I am confident
that it will."
In an op-ed
piece that appeared in The New York Times on March
5, Koppel said he hopes to stay with the network, but criticized
an ABC executive for questioning the show's relevance.
Koppel called
it "perfectly understandable that Disney would jump
at the opportunity to increase earnings by replacing 'Nightline'
with the more profitable David Letterman show."
In the op-ed
piece, Koppel criticized the unnamed ABC executive, whom,
he said, was quoted in an earlier Times article questioning
the show's relevance.
With terrorism
fears at home and U.S. troops in action abroad, "the
regular and thoughtful analysis of national and foreign
policy is more essential than ever," Koppel wrote.
He said at times like these "it is, at best, inappropriate
and, at worst, malicious to describe what my colleagues
and I are doing as lacking relevance."
MEDIA BRIEFS
New
Choices
magazine will cease publication after the May/June
issue. The lifestyle magazine, which was targeted at the
mature market, was published by Reader's Digest Assn.
Consumer
Reports.org has exceeded the 800,000-paid subscriber
mark, making it the largest paid site on the Internet, according
to John Sateja, who is VP of multimedia publishing at Consumers
Union.
"Good
Day Live," a syndicated morning TV program produced
by Twentieth Century Fox TV, is going into national distribution.
(Media
news continued on next page)
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NAT'L GEO TRAVELER
OFFERS PITCH TIPS
The National
Geographic Traveler's writer's guidelines, which are
posted on its website (nationalgeographic.com/media/traveler),
say a good story pitch has "a headline that suggests
what the story is, a deck that amplifies on that, a strong
lead and not much more than a page that sets out the premise
and approach."
The magazine,
which publishes eight issues a year, is 99% written and
photographed by freelancers.
Each issue
has five or more features, roughly balanced between U.S.
and foreign subjects. "Generally, we are interested
in places accessible to most travelers, not just the intrepid
or wealthy," state the guidelines. "The types
of destinations we cover vary widely from mainstream to
adventure travel."
Subjects
of particular interest to NGT are national and state parks,
historic places, train trips, cruises, and driving trips.
Paul Martin,
executive editor of the Washington, D.C.-based magazine,
is especially interested in pitches that have a new angle
or story.
Although
regular contributors are used to write the main feature
articles, there are regular departments, such as "Smart
Traveler;" "48 Hours," and "Travelwise,"
whose editors use information submitted by publicists and
new writers.
The magazine
does not want phone calls, and does not accept proposals
about trips that are subsidized in any way.
Keith Bellows,
who is editor, and Martin are located at 1145 17th st.,
N.W., Washington, DC 20036-4688; [email protected].
PLACEMENT TIPS
Equal
Justice Magazine
makes its debut March 13 at a launch party in the
Rayburn House Office Building, in Washington, D.C.
The magazine
will be published quarterly by the D.C.-based Legal Services
Corp., a nonprofit organization chartered by Congress in
1974 to promote the work of legal aid lawyers.
Articles
in EJM will "capture the heroism of public advocates
and pro bono attorneys striving to make the legal system
work for everyone," said Eric Kleiman, who is the LSC's
press secretary.
By telling
their stories, LSC hopes more lawmakers, judges, lawyers,
and community leaders will join in the struggle for justice.
Copies of
the premier issue are available by calling 202/336-6939
or e-mailing [email protected].
Amy
Friedman has turned to freelance writing since leaving
American Banker, where she had been editor of investment/insurance
products for more than a year.
Friedman
said two of her freelance pieces have recently appeared
on the front page of AB.
She can
be reached at 212/942-3323.
The
Washington Post has added two new technology
columns to its revamped consumer/personal technology section,
which now appears in the Sunday "Business" section.
The section name has been changed from "Fast Forward"
to "Personal Tech."
Leslie Walker
is writing a new column, called "Web Watch," that
features three or four short items about new web content
and services.
The other
new column, called "Selling Us," which is written
by Margaret Pressler, will offer a consumer's look at retailing.
Rob Pegoraro,
who is consumer tech editor, can be reached at [email protected].
BUSINESS REVIEW'S EDITOR RESIGNS
Suzy Wetlaufer, the editor of the Harvard Business
Review, said (March 8) that she would resign after at
least six top editors raised questions about her handling
of an interview with former General Electric chairman and
CEO Jack Welch.
Wetlaufer said she would resign as editor immediately
but remain on the Review staff as an editor-at-large.
Executive editors Nicholas Carr and Sarah Cliffe were
asked to take charge of the Review's editorial operations
by Walter Kiechel, who is editorial director of Harvard
Business School Publishing. They will be in charge until
a new top editor is named.
Two Review editors, Harris Collingwood and Alden
Hayashi, also resigned to protest Wetlaufer's new arrangement.
At least six top editors wrote to Kiechel, calling for
Wetlaufer's resignation because they said her interview
with Welch had been compromised by her personal relationship
with him.
Wetlaufer joined the Review as a senior editor
in 1996. She was named editor in October 2000. A former
reporter for The Miami (Fla.) Herald, she worked
as a consultant at Bain & Co. before joining the Review.
Eileen McNamara, who writes a column for The Boston
Globe, said HBR would be "more credible if the
publication did not, as a matter of policy, cede control
of its editorial content to the corporate hotshots it writes
about."
McNamara said the magazine's policy that allows the subjects
of its regular feature, "The HBR Interview," to
read, edit and rewrite the article before publication is
not a standard journalistic practice.
PEOPLE
Rich Jaroslovsky,
a senior editor for The Wall Street Journal, and
before that managing editor of The Wall Street Journal Interactive
Edition, is leaving to join Ziff Brothers Investments in
New York.
He was the founding president of the Online News Assn.
Cokie Roberts,
58, plans to leave "This Week," which she co-hosts
with Sam Donaldson on ABC, after the fall elections.
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WPP, IPG BATTLE
IN COURT, AGAIN
WPP Group
and Interpublic Group of Cos. are in court again over a
personnel matter.
In the new
lawsuit, as reported in Richard Linnett's column in the
March 4 Advertising Age, Brian Brooks late last year
gave WPP one-year's notice that he was leaving to join Interpublic
as HR director.
However,
WPP filed a claim in the U.K. High Court of Justice in February
seeking to enforce a two-year non-compete clause in Brooks'
contract.
Brooks,
who is based in New York, did not return a phone call. WPP
representatives in New York said they had no immediate comment
on the matter.
In an initial skirmish, WPP sought to have IPG's lawyers,
who are representing Brooks, dismissed from the case. A
hearing on that was scheduled for last week in London.
WPP, IPG
Fought in 1994-97
The two
ad conglomerates locked horns from 1994-97 over the switching
of WPP execs to IPG.
WPP sued
in 1994, charging IPG was hiring employees of WPP when it
had agreed in writing not to do so. IPG was at that time
buying Scali, McCabe, Sloves from WPP and allegedly promised,
for a one-year period, not to offer salaries or stock worth
$175K+ to WPP employees in attempting to hire them.
IPG hired
Bruce Kelley of WPP's J. Walter Thompson unit for $250,000;
Nina DiSesa of JWT for $500,000 plus stock, and offered
$240,000 to Richard Fitz-Simon of JWT.
Two other
JWT executives had previously joined IPG units-Peter Kim
and James Heekin.
WPP won
a $750,000 settlement from IPG in 1997.
ELLIOTT SEES PLACEMENT BACKLASH
Stuart Elliott, ad columnist for The New York Times,
believes consumers will eventually rebel at watching TV
shows and reading articles where the ad messages have been
integrated into the content.
"The more you compromise the quality or the integrity
of the content, the more you run the risk of making it worthless
and queuing the consumers so they can't believe anything,"
Elliott told Tim McHale, who is chief media officer of Tribal
DDB Worldwide.
"If consumers think they can't get away from advertising
anywhere, I think eventually all advertising is going to
be suspect," Elliott told McHale, whose interview with
the ad columnist appears in the March 4 online issue of
Media Life.
"If everything is nothing but pushing and pushing and
selling and selling, you are sort of breaking that covenant
with the consumer," said Elliott. "I don't think
that is going to be good in the long term because the content
is why people are watching or reading-not to see more ads."
Elliott said PR has also helped blur the boundaries between
editorial and advertising.
"I don't think 20 or 30 years ago there was a concept
of a celebrity being sent around by a drug company to talk
about an ailment," said Elliott.
AMERICAN SUPPORT FOR ISRAEL
SLIPS
American support for Israel slipped to 43% from 55% after
the Sept. 11 attacks, according to a March 8-9 USA Today/CNN/Gallup
poll.
Gallup also followed up on its earlier poll of nine Muslim
countries, which found that most respondents had an unfavorable
view of the U.S.
Most Americans (63 percent) believe Muslims view the U.S.
unfavorably because this country is perceived as siding
with Israel in its conflict with the Palestinians. Sixty-two
percent say the "U.S. interferes in the affairs of
Muslim countries," while another 51 percent feel the
"U.S. is too willing to use military force in Muslim
countries."
Gallup surveyed 863 people on March 1-3.
PR Leaders
Comment
New York counselor Robert Dilenschneider, who was one
of a number of PR leaders asked what should be done about
the Mid-East fighting, said the "finest minds of the
world" should convene and seek a solution to the problem,
which he said appears to be beyond the ability of either
the Israelis or Palestinians.
Harris Diamond, CEO of Weber Shandwick, the biggest PR
operation, said that the solution can only come from the
two parties themselves.
Attempts by outsiders to impose a solution have failed
thus far, he said.
Al Golin, founder of Golin/Harris, said the Bush Administration
must send in higher-level people as peace brokers. People
with the stature of Vice President Dick Cheney or Secretary
of State Colin Powell are needed, he said.
Providing economic aid to the Palestinians is also necessary,
added Golin. "Since the Palestinians feel they have
nothing to lose, they don't mind blowing themselves up,"
he said.
He noted that economic devastation in Germany gave rise
to Hitler.
Abhors Killing
Children
Daniel Edelman, founder of Edelman PR Worldwide, was especially
displeased with the killing of women and children by each
side. He said the U.S. is the only country that can broker
a peace.
He said the Saudi initiative in which Arab countries would
establish full relations with Israel in return for establishment
of a Palestinian state is a good starting point for talks.
U.S. leaders with "knowledge, experience and credibility"
who are not identified with one side or another should be
brought together on the problem, said Edelman.
Asked about a U.S. or U.N. peacekeeping force, Edelman
said the U.S. is already "spread thin" by engagements
in a number of places in the world.
The U.N., he added, has for long been identified with the
Palestinian cause.
Dilenschneider said his high-level panel would not include
generals, political leaders or journalists, who have failed
thus far in attempts to halt the fighting, but academics,
scientists, business and religious leaders, like the World
Economic Forum.
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PR OPINION/ITEMS
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Since
generals, politicians and journalists have failed to halt
the violence in Israel/Palestine, we asked some PR
leaders what their solution would be.
Dan Edelman said that peace talks must start right now and
not wait for a period of non-violence.
"That could take five years," he said.
With violence escalating in the Mid-East, Prime Minister
Ariel Sharon, who had previously demanded seven days of
quiet, announced the next day that talks might begin before
the killing ends. The violence, however, continued unabated.
Counselor Bob Dilenschneider said that the greatest minds
of the world, such as academics, authors, scientists and
business leaders but excluding generals, politicians and
journalists, should be brought together and their advice
taken.
Most PR leaders we called ducked the topic as "too
hot" to handle. The U.K.'s Guardian, which headlined
March 9, "Israel Descends into Chaos," says one
of the causes of Mid-East violence is failure of the U.S.
press and public to openly discuss it.
We tracked how eight other publications handled the nearly
impenetrable 2001 "earnings" report of the WPP
Group.
Only one of the eight publications, the U.K.'s Financial
Times, mentioned the key statistic in the report: per
share earnings were down 20% to $1.71. The Times also noted
that revenues fell 3%-not counting acquisitions. But it
failed to note the 45 times ballooning of debt to $1.52
billion nor the 33% jump in U.K. shares outstanding to 1.15
billion.
Advertising Age missed the drop in per share net,
the rise in stock outstanding, and the debt situation. Ditto
for AdWeek, PR Week (U.S.), Daily Telegraph,
Guardian, Independent and Evening Standard.
PR Week reported "gross profits" rose 38%
to $5.5B, a mistake of $5B+. The "gross profits"
of WPP are actually its gross revenues.
This inadequate reporting is both the fault and not the
fault of these publications. There's no one from WPP helping
the reporters to make their way through the 26-page thicket
of confusing numbers and claims. But, with a little time,
anyone could crack this "code." Reporters need
to take the mess home and work it out.
The Daily Telegraph, jumping at the infinitesimal
increase in the WPP dividend (about a nickel on a $50 stock),
headlined: "WPP Payout Rise Stuns City" (financial
district). It gushed: "Sir Martin Sorrell...thrilled
investors with a surprise 20% increase in the final dividend."
An editorial went further, saying the hike "is a sign
of confidence from the tough little guy" and that,
"Who knows, Macho Martin might be starting a trend."
The Financial Times said WPP "performed a lot
worse" than Omnicom and Publicis in terms of revenues.
The New York Times, as far as we can tell, never
covered the WPP report.
The WPP approach is
now in violation of official U.S. IR policy as declared
by Louis Thompson, president, National IR Institute. Thompson,
responding to pressure by President Bush who last week demanded
reforms in financial reporting by companies, said NIRI is
recommending that real earnings be put first in a press
release. NIRI had previously said they could be reported
after pro forma earnings. The majority of the NIRI board,
by the way, is in violation of the "real earnings first"
rule. Bush also wants faster disclosure of insider stock
sales. Allan Sloan of Newsweek (3/11) noted such
disclosures can take up to a year.
The accountants and
lawyers who crafted the WPP earnings bramble are
the same ones supplying fee income figures for Hill and
Knowlton, Ogilvy PR and Burson-Marsteller. Given their bent
for twisting numbers until they almost scream, how believable
can they be? WPP supplies no proofs such as income tax returns
and W-3s nor any CPA statements. It only gives its numbers
to the Council of Firms (we have removed the term "PR"
from the Council's name because it has dishonored PR by
interfering with the media's information-gathering).
The purchase of Bcom3,
parent of Manning, Selvage & Lee, by Publicis
puts 60% of the world's advertising in the hands of five
agencies. Further consolidation of the big ad agencies has
been predicted by analysts who said the agencies have nothing
left to buy but each other. MS&L will be a sister company
of Publicis Dialog, which reported $32 million in fees and
234 employees for 2000. It includes the former Lobsenz-Stevens
PR and Geltzer & Co. in New York; Selz/Seabolt in Chicago,
and Evans Group PR in Seattle. Andy Hopson, who was with
Evans, is president. PR acquisitions of Publicis thus far
have taken the Publicis name...PRSA
president Joann Killeen went to the meeting of the "Global
Alliance of PR and Communications Mgmt. Assns."
in Johannesburg, South Africa, March 1-3. This new group
of about 22 PR associations was created at the PRSA conference
in Chicago in 2000. The trip was not disclosed as it should
have been on the PRSA website. Killeen has not uttered a
peep so far on any of the problems facing PR (Enron, the
earnings report mess, PR for the U.S. war effort, etc.)
or PRSA's own many problems such as the obvious corruption
of the Silver Anvils (page one), stonewalling on finances,
and undemocratic rule of PRSA by the inner sanctum of APRs.
--Jack O'Dwyer
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