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QORVIS GIVES SAUDIS CLIENT
VETO-POWER
Qorvis Communications
has given $200,000-a-month client, Saudi Arabia, the right
to veto any potential foreign client for two years following
expiration of its one-year contract on Nov. 14. QC, according
to its representation agreement inked with Saudi Ambassador
to the U.S. Prince Bandar, "will not accept any engagement
with any client that would be deemed adverse to the interests
of the Kingdom of Saudi Arabia."
The 15 percent Patton
Boggs-owned PA shop also agrees to tell the Saudis about
any foreign client that approaches it for representation
during the its one-year contract period.
The Embassy has paid
QC $3.8 million since it signed its contract. The bulk of
those outlays ($2.9 million) were for advertising services
to position the Kingdom as a trusted ally of the U.S. and
a partner in President Bush's "war on terror."
NYC SET TO NAME 'REBUILDING'
PR FIRM
The New York City Economic Development Corp. will soon
name a firm to handle its "Lower Manhattan Communications
Plan" designed to promote the revitalization of downtown
in the aftermath of the Sept. 11 attacks. The RFP went out
to 75 firms.
NYCEDC wants to provide information to affected businesses,
employees and residents of downtown, as well as visitors
to the area. The RFP cites a Lower Manhattan website and
an area-focused newsletter as "key deliverables."
The Corp. is considering firms not headquartered in NYC,
though "experience in the community to be served"
is one criterion in the selection process.
Daniel Doctoroff, deputy mayor for economic development
and rebuilding, will oversee the communications work.
SNODDON JOINS APCO AS VICE
CHAIR
Former Burson-Marsteller CEO Larry Snoddon is now vice
chairman at APCO Worldwide, a Grey Global Group unit.
Snoddon, 55, will counsel clients and serve on APCO's
20-staffer senior advisory council, which includes former
Canadian ambassador to the World Trade Organization, John
Weekes, and former Michigan Senator Don Riegle.
Snoddon founded and managed B-M's healthcare practice
and was previously president of its Americas and European
operations.
WS HANDLES MEDIA FOR STANLEY
WORKS
Weber Shandwick is handling the media for Stanley Works,
the New Britain, Conn.-based toolmaker, that wants to reincorporate
in Bermuda to save $30 million in U.S. taxes. Peter Duda,
in the PR firm's New York office, is fielding inquiries.
The New York Times' lead editorial on May 13 suggested
that Stanley Works should change its name to "Stanley
Flees" for its effort to "stiff Uncle Sam."
SW is the "latest in an alarming exodus of greedy
companies," to tax havens, noted the paper.
The 159-year-old company announced that it won shareholder
approval for the reincorporation earlier this month, but
plans a new vote because of irregularities with the vote
count.
SW said in a statement it would hold a special meeting
"as promptly as possible" to allow another vote
on reincorporation in Bermuda.
CEO John Trani contends the company has to move so it
can lower costs to compete in the world market.
POWELL TATE CRUSADES FOR CRUSADER
Powell Tate is spearheading the effort to salvage the
controversial $11 billion Crusader artillery system that
caused friction between Secretary of Defense Don Rumsfeld
and Army Secretary Tom White.
PT is running the Crusader Industrial Alliance out of
its office in Washington, D.C. It defines the Alliance as
a "defense educational group." United Defense,
a unit of the well-connected Carlyle Group, is the prime
contractor for the Crusader. CG counts former President
Bush, ex-U.K. Prime Minister John Majors and former Securities
and Exchange Commission chief Arthur Levitt as its representatives.
PT staffers handling the Crusader include Liese Mosher,
Sara Cox, Brad Fisher and Pam Keeton.
Rumsfeld contends that the 40-ton Crusader, which fires
shells up to 31 miles away, is an outdated relic of the
Cold War designed to fight the Soviet Union in Europe. He
wants more flexible, light and high-tech weapons systems
to increase the mobility of the U.S. armed forces. The Alliance
counters Rumsfeld via ads in the National Journal
and Roll Call that claim that eight countries, including
China, Iraq and North Korea, can currently outgun the Army's
current artillery system.
Ari Fleischer, White House spokesman, said President Bush
urges Congress to "adhere to Secretary Rumsfeld's well-thought-out
recommendation."
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CHRYSLER EXEC RIPS ADVOCACY
GROUPS
Chrysler Group president/CEO
Dieter Zetsche, in a speech to the Adcraft Club of Detroit,
said "advocacy groups" which use the Internet,
can "humble- if not hobble" corporations.
"Activism is not
new, nor is it necessarily bad," he said. "Today,
however, activism in our society is creating a new set of
challenges for business...by putting pressure on any corporation
whose products or policies may run contrary to their views."
These well-organized
challenges can actually obscure the true voice of the consumer,
said Zetsche. "You might call it the difference between
natural public opinion and synthetic public opinion."
Chrysler Group advertising
has found itself in the crosshairs of these organizations
on several occasions, said Zetsche. "We do not go looking
for trouble, and we certainly don't try to offend anyone,
but we also want to find ways not to be driven to middle
ground, the `no-man's land' of ultra-conservative products
people won't buy and ultra-conservative marketing they can-and
will-ignore."
Zetsche said a little
bit of controversy can create products that resonate with
customers, and generate marketing that brings new customers
to showrooms.
"Over the years,
our company has prospered whenever it eagerly took creative
chances on the products it made and the way it marketed
them." In marketing, he said, that means breakthrough
ads that "step right up to the edge-but not over the
edge- of acceptable standards and execution.
"The challenge,
of course, is to find the right balance."
B-M PROMOTES DUBAI 2003
Burson-Marsteller is handling PR for Dubai 2003, the entity
formed to host the World Bank/International Monetary Fund
meeting slated for that member of the United Arab Emirates.
The firm is to position Dubai as a regional telecommunications,
financial and technology hub that is open for investments.
B-M is to produce brochures, pitch the media and run ads
promoting Dubai, which has 858,000 people. Saudi Arabia,
which borders the UAE, picked Burson-Marsteller to run "solidarity
with America" ads days after the Sept. 11 attacks.
The Dubai 2003 website cites its "glorious airport,
duty-free shopping, noise-free environmental good roads
and remarkable skyline." The emirate has "camels
and cars, desert and dance clubs, supermarkets and souqs."
Anti-globalization protesters figure Dubai got to host
the meeting because its relative isolation will allow the
finance ministers to meet without the worry about large
demonstrations.
Kelly Mullens,
VP, Fleishman-Hillard's business and corp. comms. group,
has joined Universal Music Group as VP-CC in New York. At
F-H, she handled the launch of UMG and Sony's online music
service, pressplay.
IPG SEES EPS GROWTH FOR YEAR
Interpublic is "on course" to provide earnings-per-share
growth for 2002 even if the second half of the year is flat
in terms of revenues, the annual meeting was told May 20
by John Dooner, chairman/CEO.
The 27-minute meeting was told that "prospects are
improving" and clients are "guardedly hopeful."
The company will complete by midyear the layoff of 6,800
employees, or about 11% of its workforce. Some analysts
have said the size of the layoffs could impact IPG's ability
to service clients.
UBS Warburg, noting the cost savings program of IPG, is
maintaining a "buy" rating on the stock, saying
it is trading at a 30% discount to its peer group. However,
Warburg warns that "Primary risk relates to execution
risk, resulting in further account losses and earnings shortfalls,
a prolonged global slowdown, and overall market risk."
MWW WOOS STATE DEPT.; LANDS
ZOA
MWW Group VP Ronn Torossian, who has strong connections
with Israel's Likud government, has been called in by Geoffrey
Weill Assocs. to persuade the State Dept. to lift or reduce
the severity of its travel warning on Israel.
The State Dept.'s April 2 warning notes the "deteriorating
security situation in Israel and informs travelers of ongoing
military activity in the West Bank and Gaza and increasing
delays and difficulties experienced at checkpoints located
throughout the West Bank and Gaza."
GWA represents Israel's Ministry of Tourism. CEO Geoffrey
Weill said Torossian will make appointments in Washington
for key Israeli government officials.
The $8,000-a-month contract also calls for Torossian to
coordinate outreach to Jewish and Christian organizations
to win "targeted, grassroots community support of tourism
to Israel."
ZOA Goes
to MWW
The Zionist Organization of America, which was founded
in 1897, has just signed MWW for PR, Torossian told this
NL.
ZOA plans to send its "largest and strongest delegation"
to Washington next month to "urge the Bush Administration
not to pressure Israel in its fight against terrorism."
ZOA has 50,000 members. MWW is part of Interpublic's Golin/Harris
International unit.
DOMEISCHEL, EX-WS, JOINS MAKOVSKY
Jack Domeischel, who was in charge of Weber Shandwick's
healthcare practice, is now doing the same job at Makovsky
& Co., succeeding Donna Ramer. He has taken the senior
VP/managing director post of the New York-based firm's health
sciences practice.
He served as VP-corporate communications at Searle Pharmaceutical
for ten years, and has held posts at Ares-Serono, Merck
and Burson-Marsteller.
Ken Makovsky hired Domeischel because of his "unparalleled
track record of success in the health sciences field."
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PUBLISHER BILLS
PR FIRMS FOR COVERAGE
Rennie Infomedia,
a Collingwood, Ontario-based publisher of new product guides
for the outdoor market-"What's New, and What's Hot"-will
charge PR firms for editorial coverage if their client's
do not buy ads.
Jim Rennie,
who is publisher of the guides, which are available only
on the Internet, said he is charging for reviews because
of the "emergence of many more `publicity agents' who
charge suppliers for no-cost placements in publications
such as ours."
He said
these "proliferating publicity agents reduce revenues
for all magazine publishers, including ourselves."
"Simply
put, the demand for editorial coverage of new products and
lines goes up (stimulated by more 'publicity agents and
agencies'). But companies have less to spend with us-as
'publicity agents' take more of available budgets,"
Rennie said in a May 9 memo that was sent to PR firms.
Rennie said
it is "self-destructive," and it has already claimed
victims as outdoor publications have closed in unprecedented
numbers over the past 18 months. "For our part, we
believe our publication 'has an important role in helping
to 'kick-off' the buying' process each season in the specialty
outdoor market."
Under the
new policy, PR firms will get editorial coverage if their
client buys ads in the current issue or has advertised in
any one of the prior two publications.
Otherwise:
one page of editorial coverage will be billed at $400; one-half
page-$250; one-third page-$150, and one-quarter page-$100.
Rennie Infomedia's
website is www.rennies.net.
BUDGET TRAVEL SEEKS MORE SUBMISSIONS
You don't have to be a professional travel writer to write
for Budget Travel.
BT's editor Arthur Frommer is urging readers and occasional
freelancers with no permanent involvement in travel journalism
to submit articles about affordable travel.
Frommer said the bimonthly magazine will start publishing
ten times per year, and "we've been busy meeting and
talking with staff members and free-lancers about the 250
some-odd articles and features that those ten issues will
need."
Frommer is hoping to get at least a small amount of the
additional content from readers.
"Over the years, several of our most provocative
articles have appeared unexpectedly in the mail, from either
unpublished first-timers or occasional freelancers in love
with a vacation tactic and eager to share it with others,"
he said.
"If you have a budget-related travel discovery of
broad application and want to tell the world about it-then
fire away!," said Frommer. "We read and seriously
consider every such submisssion."
Manuscripts should be mailed to Editor, Budget Travel,
530 Seventh ave., New York, NY 10018.
ADS USE PRODUCTS AS ENDORSEMENTS
Placing a product in an ad for another product is becoming
a popular promotion trend, according to Stuart Elliott,
who covers the ad beat for The New York Times.
Some examples:
-Toyota Matrix's new TV commercials show a Sony Vaio laptop
computer being used inside the vehicle as a way to promote
a feature being offered in the Matrix, a 110-volt outlet.
-The Profile line of refrigerators sold by General Electric
has been running print ads, which are headlined: "G.Q.
Meets I.Q."; the reference to GQ magazine is
meant to convey that Profile is stylish, said Elliott.
The outside product also serves almost as an endorser,
the same way a celebrity would, says Elliott.
He cites as an example a TV commercial for the Chevrolet
division of General Motors that shows two lonely Maytag
repairmen cruising the highway in an Chevrolet, suggesting
the vehicle's dependability.
PLACEMENT TIPS
Petite magazine,
located in San Diego, will make its debut next week as a
monthly, with a mandate to be "the hip, trendy, glamorous,
sophisticated stylish magazine for petite women (under 5'4")
everywhere," says its editor-in-chief Deborah Tumlinson.
Tumlinson, a former petite model, said the magazine will
address health, fitness, nutrition and beauty issues as
well as help women find clothes that fit and flatter them.
Petite's first issue, with actress Susan Lucci on the
cover, has stories on successful petite professionals, fitness
advice from Tamilee Webb, petite sports figures, and bridal
gown designs.
For more information, visit www.petitemagazine.com.
Brad Matson, producer
of "Breakfast Television," which is Toronto's
most-watched morning program, said publicists should put
visual offerings at the front of the press kit, and in the
first sentence of their pitch letter.
"You have to bring something to the table-literally-when
coming on a talk show," said Matson. "Starting
the letter with: `Would you like to see the world's oldest
bone? the biggest starfish collection?... all of Elton John's
old sunglasses?' should be more captivating than talking
about what kind of expert your client is in these areas,"
Matson told Adam Bello, a Toronto-based publicist, who runs
A.B. Communications & Assocs.
Matson said signs and text should be avoided. "Don't
display posters or brochures. These will be unreadable,
and come across as cheesy."
As motion is most effective, propose a demonstration with
host/audience participation when appropriate, he said.
(Media
news continued on next page)
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MEDIA
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WRITERS GET SCOOP ON OLD HOTELS
Over 50 travel journalists attended the Historic Hotels
of America's annual media luncheon that was held May 14
in New York at the Waldorf-Astoria.
Mary Billingsley, who is the Washington, D.C.-based association's
PR director, said some 50 members of the association participated
in the event, which was held in the Waldorf's recently renovated
Starlight Ballroom.
The journalists were able to meet face-to-face with representatives
of the hotels, who were stationed behind tables, loaded
with press kits, sales brochures, and novelties branded
with the hotel's name.
The Warwick Hotel, in New York, which is celebrating its
75th birthday, gave away bottles of wine and bathrobes.
At each table, reporters were provided with the latest
news-including renovations and restorations, and other updates
on their respective hotels. Some of the reps offered complimentary
invitations to stay at their place.
The HHofA has 185 hotel members. To qualify for membership,
the hotel must be at least 50 years old, restored, and in
operation.
More information about the organization and its member
hotels is available at www.historichotels.org.
USA TODAY IS TOP ABC-AUDITED
DAILY
The top 20 daily newspapers, according to the Audit Bureau
of Circulations' audit of average daily circulation for
six months ended March 31, 2002, are:
1. USA Today, 2,120,357
2. The Wall Street Journal, 1,820,525
3. The New York Times, 1,194,491
4. Los Angeles Times, 1,011,732
5. The Washington Post, 811,925
6. New York Daily News, 733,099
7. Chicago Tribune, 689,026
8. Newsday, 577,796
9. New York Post, 562,639
10. Houston Chronicle, 545,727
11. San Francisco Chronicle, 525,369
12. Dallas Morning News, 511,159
13. The Arizona Republic, 496,373
14. Chicago Sun-Times, 487,480
15. The Boston Globe, 478,735
16. Newark Star-Ledger, 406,717
17. Minneapolis Star-Tribune, 405,459
18. The Atlanta J-C, 405,367
19. The Philadelphia Inquirer, 381,104
20. Cleveland Plain Dealer, 368,322
NEW TEST KITCHEN EDITOR NAMED
Donna Pierce has joined The Chicago Tribune as
test kitchen director.
Pierce, previously food editor of The Columbia (Mo.)
Daily Tribune, will do double duty in print and on air:
testing and preparing recipes for the Tribune's "Good
Eating" section, which appears every Wednesday, and
taping weekly segments for CLTV's companion TV shows, "Good
Eating," which airs Saturdays, Sundays and Wednesdays.
Pierce is also contributing food editor to Upscale,
a national African-American magazine based in Atlanta.
The new kitchen director, who specializes in Creole dishes,
will join the Tribune June 3, according to Carol
Haddix, who is the paper's food editor.
Oil & Gas Journal,
which will mark its 100th anniversary on May 24,
will publish a special anniversary edition in August, according
to Bob Tippee, who is editor of the Houston-based magazine.
PEOPLE
Albert Primo
was awarded the 2002 Ellis Island Medal of Honor for creating
the Eyewitness News format. Primo, who currently operates
Primo Newservice in Old Greenwich, Conn., is also producing
a pilot for a new TV magazine and writing a book and oral
history of Eyewitness News.
Gabriel Snyder,
who co-wrote the media gossip column in The New York
Observer, is leaving to join US Weekly.
Seth Mnookin,
who was covering the media beat for The New York Sun,
is joining Newsweek's national affairs desk as a
senior writer, and Ellen
Kampinsky is leaving the Sun to join Glamour
as a senior editor.
Jasper Becker,
45, was abruptly dismissed as the Beijing bureau chief of
The South China Morning Post, which is Hong Kong's
top English-language newspaper, after he complained editors
were softening the paper's coverage of China.
Peter Bonventure,
co-executive editor of Entertainment Weekly, was
named interim managing editor until the June 6 issue.
Anders Gyllenhaal
(pronounced JILL-in-hall), 50, previously executive editor
at The Raleigh (N.C.) News & Observer, was appointed
editor of The Minneapolis Star Tribune, succeeding
Tim McGuire,
who is retiring next month.
Melanie Sill,
43, succeeds Gyllenhaal as editor in Raleigh.
Gyllenhaal's wife, Beverly
Mills, writes two syndicated columns on food and
parenting for United Features Syndicate.
James Lorincz
was named editor-in-chief of Tooling & Production
magazine, Solon, Ohio, replacing Stan
Modic, who continues in his editorial advisory role
and as a columnist for the monthly magazine.
Patrick Boulay,
49, who was editor of The St. Paul (Minn.) Legal Ledger,
was promoted to VP/publisher of Dolan Media, and publisher
of Finance and Commerce, a business paper, based
in Minneapolis.
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INSANA, JORDAN,
ALTER AT PR SEMINAR
Principal
speakers at the 51st PR Seminar May 22-25 at the Ritz-Carlton,
Naples, Fla., are Ron Insana, co-anchor, CNBC's Business
Center; Vernon Jordan, managing director, Lazard Freres
& Co.; Lawrence Eagleburger, Secretary of State under
President George Bush, and Jonathan Alter, senior editor
of Newsweek and correspondent to NBC News.
The annual
gathering usually attracts at least 150 PR executives from
leading companies and about a dozen heads of the major PR
firms.
Membership
is by invitation only and some PR people wait years to be
invited.
The group
meets at the finest resorts in the U.S. for four days each
May. Registration tab this year is $1,800 for Seminarians
and $800 for their companions. The tab helps cover speaker
fees.
Insana will talk about "Financial Journalism in the
Age of Enron." Alter will discuss "politics."
Jordan, who was a top aide to President Clinton, will talk
about "Vernon Can Read! A Memoir," which he wrote
with Annette Gordon-Reed. He will be introduced by Hill
and Knowlton's Howard Paster, former Clinton lobbyist and
last year's PRS chairman.
Eagleburger,
now with Baker, Donelson, Bearman and Caldwell, will discuss:
"Foreign Policy in the 21st Century: What Is the Role
of the U.S.?"
Harold Burson, founder of Burson-Marsteller, is chair of
this session.
Proceedings
at PRS are "off the record." Working press has
never been allowed to attend the meeting although numerous
press figures have addressed it.
Nicholas Ashooh of American Electric Power is 2002 chair
of the group; David Demarest of Visa International is program
chair, and Diane Dixon of Avery Dennison is secretary/treasurer.
Other Speakers
Also on
the program are:
Chuck Rund,
president, Charlton Research Co.; Michael Josephson, president,
Josephson Institute; Robert Full, Ph.D., professor of biology
at University of Calif. at Berkeley; Lori Wallach, director
of Public Citizen's Global Trade Watch, which is affiliated
with Ralph Nader; and Alice Domar, assistant professor of
medicine, Harvard Medical School, and director, Mind/Body
Center for Women's Health.
PR Implications
of 9/11 Is Topic
A panel
will discuss, "Changing Messages: PR Implications of
9/11." Members are Mary Beth Bardin of Verizon; Michael
O'Neill, American Express, and Tom Slocum, Delta Airlines.
Moderator is Betty Hudson of the National Geographic Society.
Besides
Burson and Paster, other PR firm executives who are members
of PRS include Lou Capozzi of Manning, Selvage & Lee;
Richard Edelman, Edelman PR Worldwide; Al Golin, Golin/Harris
International; Bob Feldman, GCI Group; John Graham, Fleishman-Hillard;
Bob Seltzer, Ogilvy PR Worldwide, and Larry Weber, formerly
of Weber Shandwick, now with parent Interpublic.
PISINSKI DIES
SUDDENLY AT 52
Stephen
D. Pisinski, 52, president of PR Society of America in 2000,
died suddenly in his sleep last week at his home in San
Francisco. Cause of death was not immediately known.
Friends
said he was not known to be ill.
Surviving
are his wife, Patrice, and two children under ten years
of age, Spencer and Ashley Ann. Also surviving are his parents,
Statia and Steve Pisinski; a brother, Donald, and a sister,
Cynthia.
Joann Killeen,
president of PRSA, said, "This is truly devastating
news for the PR profession and the Society. We have lost
an esteemed leader. Steve was a friend, colleague and mentor
to me as he was to many others." The Society purchased
an ad in the May 17 New York Times in which it said,
PRSA is "forever grateful for the significant professional
and personal contributions Steve made not only to the Society
but to the PR profession." It lauded his "leadership,
intelligence and guidance," and noted that the "Society
underwent tremendous change during his tenure as chair and
CEO."
Pisinski
headed his own firm, The Montgomery Group, San Francisco.
He entered
PR in 1971 at Ketchum PR in Pittsburgh and transferred to
Ketchum/San Francisco where he worked six years, rising
to VP and associate director.
In 1981,
he opened and headed the San Francisco office of Burson-Marsteller.
He also worked for B-M in New York.
He opened
his own firm in S.F. in 1984, selling it to Ogilvy &
Mather PR in 1985. He served as GM of Ogilvy/S.F. from 1985-91.
Pisinski
had a B.A. degree in history from Georgetown University
and a master's in PR, with graduate business school courses,
from Boston University.
JUDGE OKAYS 'HARRY &
LOUISE' SPOTS
U.S. District
Court Judge Reggie Walton has denied Health Insurance Assn.
of America's bid to block the "Harry and Louise"
spots that CuresNow Action is running in support for stem
cell research.
HIAA claimed
that it owned the right to the H&L characters based
on 10 years of usage. Goddard Claussen Porter Novelli created
those spots for HIAA, and used the same actors for CNA.
Ben Goddard,
founding partner of GCPN, issued a statement saying "In
denying HIAA's attempt to silence the 'Harry & Louise'
ads about stem cell research, the court has taken an important
step in preserving an important public voice in the debate
over this issue."
CNA claims
that the real-life Harry Johnson and Louise Clark, who is
married to Goddard, are strong supporters of stem cell research,
and are pleased that Judge Walton has given them the right
to express them through ads.
HIAA debuted
H&L in 1993 to oppose then-First Lady Clinton's healthcare
reform effort, and re-introduced them in 2000 as advocates
for the uninsured.
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PR OPINION/ITEMS
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The
death of Steve Pisinski is a loss for the PR field and PR
Society of America.
Steve, one of the brightest people in PR (a magna cum laude
graduate of Georgetown University), was the most communicative
PRSA president in recent years. He e-mailed us detailed
answers to the many financial questions about the Society
including the shrinkage in its deferred dues account.
To the best of our knowledge, Steve is the one who fired
both CFO Joe Cussick and COO Ray Gaulke during his term
as 2000 president. He simply got sick and tired of the paucity
of financial information available from the h.q. staff.
We salute Steve as a good communicator and a person of action.
The annual conference
of the National IR Institute will take place June 3-5 in
Palm Desert, Calif. About 2,000 will attend. As usual,
there will be no press room and no texts of speeches nor
any releases on the more than 20 sessions. In the past,
reporters were told to purchase tapes of any sessions for
$10 each if they wanted any. This year NIRI is sending us
a set of the tapes gratis...The
NIRI policy is about the same as that at PRSA and IABC.
Neither group distributes texts of conference speeches or
even releases on them. For example there was no written
summary of the speech by economist Lester Thurow, who was
paid $20,000 to address the PRSA conference in Atlanta Oct.
29, 2001...NIRI has
no on-staff PR pros to write releases, prepare transcripts,
distribute them to the press, etc., although lack
of funds is not the reason. NIRI had $4.6M in the bank as
of Dec. 31 and will probably duplicate last year's conference
profit of $1,295,988, bringing its cash/investments to nearly
$6M. "PR" is just not one of the things NIRI does...PRSA
and IABC have to a lesser degree starved the PR function
for decades, usually having only one person assigned
to it and sometimes no one...also
not practicing PR (by our definition) are any of the four
big ad/PR conglomerates. Publicis, Paris-based conglomerate
which announced its 1Q revenues last week, told us there
is no one in the U.S. who can discuss with us the Publicis
financial reports. Such discussions can only take place
over the phone to Paris. London-based WPP Group also has
no one in the U.S. who will perform that chore. Interpublic
and Omnicom are in New York but refuse interviews by financial
reporters. Publicis, OMC and IPG allow reporters to listen
in on analyst conference calls. WPP won't even let reporters
do that...one thing
that Publicis is doing that OMC and IPG are not is identify
their acquisitions. The new 20-F report by Publicis
identifies 18 acquisitions and gives descriptions of each.
IPG has made more than 200 "mystery" acquisitions
in four years and the 2001 annual report of OMC mentions
39 acquisitions for $849 million but doesn't identify them...we
were disappointed by the 1Q report of IPG because it has
removed PR as a separate reporting category. PR is
now mixed in with a stew of other activities totaling 26%
of revenues. There's no way now to tell whether PR is up
or down...IPG and OMC,
under new accounting rules, must report any "impairment"
of the value of their numerous acquisitions. This
determination will be made with their accounting firms (Arthur
Andersen for OMC and PricewaterhouseCoopers for IPG). PR
has been seriously "impaired" at both based on
layoff figures...all
signs point to WPP again putting out a 26-page indecipherable
financial report for the first half in spite of a
pledge by CEO Martin Sorrell in a NASDAQ ad that plain English
will be spoken in financial reports and "obfuscation"
will be spurned. NASDAQ, including VP-CC Bethany Sherman
and NASDAQ's PR firm, The Torrenzano Group, have been unreachable
for weeks. WPP became unreachable months ago on this subject...the
Empire State building "cold called" us last week
saying it had "excellent space available on high floors
at low rent." We bet you do, we responded. We
can look out our office window and see at least six full
floors across the street that have been vacant for months...a
PR firm said it has never received so many requests for
summer intern positions and will take at least one since
no cost is involved...both
Ragan Communications and IABC gave two-day conferences on
internal PR in May, Ragan drawing 225 and IABC, 65. Both
meetings charged $795. Ragan had about 80 speakers, including
six leaders of IABC. IABC and the Council of Communication
Mgmt. (co-host) had a dozen experts in employee PR as their
speakers. About 400 were expected at the Ragan meeting but
the economy held down attendance, Ragan said ...the
spring issue of PR Strategist of PRSA had 44 pages
but only two-and-a-half pages of ads, making it very
expensive to print and mail its 20,000 copies. Disseminating
it via a PDF file on the Internet, which NIRI and the Int'l
PR Assn. do with their magazines, would be a money-saver.
NIRI now bulk mails the issues of its monthly after sending
out the PDF version...an
O'Dwyer web poll asking if "PRSA needs reforming,"
is running 71% "Yes" and 29% "No"...the
accounting profession, hard hit by the current scandals,
is doing some PR. Nancy Newman-Limata, president, New York
State Society of CPAs, is doing a Sunday column for the
New York Post, explaining how to read complicated
financial statements. Footnotes contain "a wealth of
information," said her column May 12. This is an example
of consumer friendliness that the American Society of CPAs
could well follow.
--Jack O'Dwyer
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