Edition, May 29, 2002, Page 1
KETCHUM BEATS H&K, F-H
Ketchum beat out Hill
and Knowlton and Fleishman-Hillard for the Deloitte Consulting
account because of the "strategic and creative ideas"
that it presented during the pitch, John L'Abate, DC's senior
manager-global PR, told this NL.
The Omnicom unit's "professional
services experience" also was a plus, L'Abate added.
Ketchum/ Chicago represented the embattled Arthur Andersen
auditor. Mike Hatcliffe, Chicago director, said the office
provided marketing communications support for Andersen.
There is no longer a need for that service, he noted, so
Ketchum and Andersen split on an amicable basis. (Omnicom's
Chlopak, Leonard, Schechter and Assocs. is doing crisis
PR work for Andersen.)
L'Abate said DC will
spend a "significant amount" for PR, but the company
has not "scoped out" the extent of Ketchum's responsibilities.
DC splits from Deloitte Touche Tohmatsu later this year.
IMPERATO TO SUCCEED AIELLO
Donna Imperato, who heads Cohn & Wolfe/N.Y.,will succeed
Steve Aiello as CEO of the WPP Group unit in the fall. Aiello,
59, steps up to the chairman slot. Kathryn Metcalfe, the
35-year-old healthcare pro, takes over for Imperato, 41,
in New York.
Aiello has been at C&W for a dozen years. Prior to
that, he was EVP/PA director at Burson-Marsteller, special
assistant to President Carter for ethnic/urban affairs and
N.Y.C. Board of Education president.
Imperato, a healthcare pro, joined C&W from B-M in
1997. Metcalfe was at Sciens Worldwide PR before signing
on at C&W in 1999. She began her PR career at Noonan/Russo.
C&W also named Doug Buemi, 52, vice chairman. He was
CEO/Western Operations. Martin Ellis, 43, director of int'l
development, is now president Europe/Middle East/Africa
and Asia Pacific.
WEBER SHANDWICK 'REDISCOVERS'
Weber Shandwick has beat out three other firms to promote
Canada's "rediscovery" as a "close and accessible"
travel destination from the U.S., Rene Mack, president of
WS' North American travel unit, told this NL. He said that
the firm will provide "good old fashioned media relations"
along with TV and events work for the Canadian Tourism Commission.
The firm's Rogers and Cowan unit will play up Canada on
TV shows in the U.S. and promote the country through movies
which are shot there.
PNI's COPITHORNE GOES HOME
David Copithorne has stepped down as CEO of Omnicom's
Porter Novelli International unit after a six-month stint.
The co-founder of Copithorne & Bellows high-tech firm,
acquired by PNI in 1995, wants to go home to Boston to spend
more time with his wife and two children.
Helen Ostrowski, PNI's Americas chief, takes over for
Copithorne. Gary Stockman, COO, assumes Ostrowski's duties.
Tom Harrison, CEO of Omnicom's Diversified Agency Services
group, said Copithorne's exit marks the "next chapter
in a story" that began with the 1999 folding of C&B
into PNI. Copithorne, who says he will consult for PNI while
pursuing other activities, was the last of the four founding
members of C&B at PNI. Bill Bellows left in 1998, while
Richard Moore and Mel Webster departed in 2000. Stockman
joined C&B in 1995 and managed the Hewlett-Packard account,
which is PNI's biggest piece of business.
OMNICOM EXPECTED TO CUT
Omnicom is reviewing "four global accounting firms"
to take the place of auditor Arthur Andersen, which has
been tainted by the Enron scandal. An Omnicom spokesperson
said that Andersen is not included in the bunch of firms
competing for the business. A decision is expected by mid-June.
Omnicom paid Andersen $17.6 million in fees last year,
of which $7 million was for its audit. The firm paid another
$5.6 million for "audit-related fees." Those outlays
were for "audits of acquired companies, employee benefits
plan audits, financial due diligence of potential acquisitions,
accounting consultation, registration statements and comfort
letters for underwriters relating to securities offerings,
according to its proxy statement. The firm spent another
$5 million mainly for tax compliance.
WPP Group CEO Martin Sorrell announced last week that
he will replace Andersen with Deloitte Touche Tohmatsu.
That move is subject to shareholder approval.
a Pulitzer Prize-winning Los Angeles Times editor,
has joined Fleishman-Hillard's PA practice as a senior VP.
He covered water issues, entertainment and city hall in
17 years at the Times. He was most recently entertainment
editor for the paper's business section.
Edition, May 29, 2002, Page 2
QC DENIES SAUDIS BACK SUICIDE
CEO Michael Petruzzello says it's "complete and utter
nonsense" that his $200K-a-month Saudi Arabia client
is giving money to the families of Palestinian suicide bombers.
That's the line that
Saudi Ambassador to the U.S. Prince Bandar made after Israel
released a trove of documents it seized during the invasion
of the West Bank purporting a link between Saudi cash and
the families of bombers.
Those allegations are
a "smokescreen" intended to divert the peace process,
said Bandar. "The people of Saudi Arabia are providing
money to restock hospitals that have no medicines, to rebuild
schools, to restore electricity and telephones and to put
food on the tables of thousands of starving families,"
the Prince said earlier this month.
The Qorvis chief said
the Saudis are providing $120 million a year to "international
organizations such as the U.N., Red Cross and the Red Crescent
Society for distribution [in the occupied territories.]
The U.S. is using the same channels. So you can't say the
Saudis are giving money to suicide bombers any more than
the U.S. is doing," he told the May 19 Insight,
which is the magazine of the Washington Times.
A Congressional analyst,
however, told Insight that almost without exception, U.S.
aid has been disbursed by the U.S. Agency for International
Development, which closely monitors the funds provided to
BG&R DROPS CRUSADER
Barbour Griffith & Rogers dropped the Crusader account
two days after agreeing to lobby on behalf of the $11 billion
artillery system, according to Doug Coffey, a spokesperson
at maker United Defense.
The White House adamantly opposes funding for Crusader,
believing the 40-ton weapon was designed to fight the Soviet
Union in Europe. It wants lighter and more flexible weapons.
The Army and Congress are among Crusader supporters.
BG&R had a verbal agreement to lobby for the Crusader,
and its staffers attended a strategy session at UD's Arlington,
Va., headquarters on May 14. The firm then decided to drop
The White House contacted BG&R when it heard that
the firm was going to represent the Crusader. That contact
resulted in BG&R dropping the account. BG&R CEO
Haley Barbour is former Republican National Committee chair,
and headed the Bush for President Washington, D.C., Advisory
Committee. He may also run for governor in his home state
of Mississippi in 2003.
Ed Rogers, BG&R vice chairman, declined comment on
the Crusader. Powell Tate, another Interpublic unit, is
lobbying for the weapon. UD is owned by Carlyle Group.
SYNYGY LINKS PR PAY TO PERFORMANCE
Synygy, which makes incentive-based pay software, has
replaced The Garfield Group with Brodeur Worldwide to handle
its PR after considering a number of agencies, Synygy PR
staffer Oliver Picher told this NL.
Brodeur will be paid a monthly retainer plus possible
additional fees on a "pay-for-performance basis"
when major communications goals, beyond those agreed to
in the core program, are reached. Picher noted some firms
balked at the pay-for-performance fee schedule Synygy requires.
The firm also liked Brodeur's experience and creativity
in the tech field, Picher added.
EDELMAN WINS BEST OF BIG
Edelman PR Worldwide's o.b.u (aka "oh be you")
was awarded the Best of the Big Apple Award for the best
PR program launched in 2001.
The award was presented May 23 at the 15th annual Big
Apple Award Luncheon, which was attended by more than 300
chapter members and guests.
PRSA/New York president Michael Rinaldo, Fleishman-Hillard,
also presented 33 first place awards and 14 honorable mentions.
The presentations were made by Annika Pergament and Elizabeth
Gerst, NY 1 reporters.
Emmanuel Tchividjian, president-elect of the chapter,
who is VP of Ruder Finn, said this year's contest drew 137
entries. The entries were judged by a panel of 60 judges,
overseen by Liz Beck of Cohn & Wolfe.
Top honors featured campaigns including, "Latte and
a Loan?" for the launch of the ING Direct Cafe by Star/Rosen
PR for the best marketing communications program in support
of new services.
Manning, Selvage & Lee won in the best marketing program
supporting existing services for "Oral Cancer Early
Ketchum received recognition for the best crisis communication
program, "Extricating Exanta: AstraZeneca Battles to
Protect Pipeline Medication."
The best marketing communications program supporting a
new consumer product went to F-H for the "Welcome to
the Velocity Girl's World" program.
Other companies winning Big Apple Awards included Burson-Marsteller,
LVM Group, M Booth & Assocs. and Weber Shandwick Worldwide.
PN ADDS $3.6M ANTI-SMOKING
Porter Novelli's Washington, D.C., office has picked up
a $3.6-million pact to promote a Robert Wood Johnson Foundation
campaign to reduce the number of pregnant women who smoke.
Forty-six organizations are taking part in the Foundation's
North Carolina-based National Partnership to Help Pregnant
Smokers Quit. The group has set a 2010 goal to drastically
reduce smoking by pregnant women by boosting access to a
Kathryn Vose is a senior VP and worldwide director of PN's
anti-tobacco practice, which also handles Florida's "Truth"
Edition, May 29, 2002, Page 3
BREAKS POP CULTURE NEWS
ever wondered where Jay Leno gets all those weird stories
he mentions in his monologue? Or where Howard Stern finds
his bizarre guests?
answer: Wireless Flash News Service.
than 20 years, WFNS, commonly known as "FlashNews,"
has scanned the globe to find wild and wacky stories. The
pop culture wire, which is known to insiders as "The
AP of the Unusual," provides a daily feed of exclusive
stories to more than 800 media subscribers.
client roster includes "The Tonight Show," "The
Howard Stern Show," "The Late Show With David
Letterman," among others.
subscribers include Time, Maxim, The Los
Angeles Times, The Wall Street Journal, and Glamour,
which likes to use items in a column spotlighting celebrities,
sex and health.
use FlashNews as a contact source for on-air interviews,
while newspapers and magazines use it as a tip sheet or
run the stories in their entirety. TV show producers use
FlashNews for booking unusual guests.
subscribers are like good magicians-they never reveal their
tricks. But FlashNews is their secret weapon," said
managing editor Patrick Glynn, who has been at the helm
of the San Diego-based news service since 1980.
for FlashNews said 20% of the news content is provided by
publicists and 80% is found through investigative methods.
often pitch their trendsetting clients and breaking news
to FlashNews before other media outlets. For example, Weber
Shandwick Worldwide publicized the 65th birthday of Kraft
Macaroni & Cheese in February with a story that was
intentionally withheld so FlashNews could break it first.
no cost to get a story used by FlashNews, which is financed
entirely by its subscribing radio, TV, newspaper and electronic
can't "buy" a story placement anymore than they
can buy a story on AP or Reuters.
to the wire also get the Wireless Flash celebrity/kicker
news datebook-an offbeat almanac filled with celebrity birthdays,
"on this day in history" tidbits and trivia that
has been verified by FlashNews editors.
staff consists of David Moye, senior associate editor, and
Elaine Camuso, associate editor. 619/220-7191.
PITTS IS 'JOURNALIST OF THE
of CBS News was named Journalist of the Year by the National
Assn. of Black Journalists for his coverage of the events
of Sept. 11 and the war in Afghanistan.
The Los Angeles
roll out over the next few months several weekly
themed sections that will focus on food, homes and outdoor
The paper is also overhauling several sections, including
entertainment news, "Calendar," and it is phasing
out the Southern California "Living" section.
The Medical Letter,
in New Rochelle, N.Y., has started a new website,
which offers medical professionals and consumers electronic
access to comprehensive drug evaluations.
The new site also provides live links for all references
cited in articles published in 2002.
Access to the website is free for individual subscribers
to the print version.
Gianna Zuccotti, M.D., is deputy editor of The Medical
Letter, which can be reached at 800/211-2769.
new editor Josh Quittner said his plans for the monthly
high-tech magazine, which Time Inc. acquired a year ago
and merged with eCompany, is to make news, not follow
"This is the place to chronicle the boom that will
follow the bubble," Quittner told Ned Desmond, who
started the magazine from scratch four years ago with former
managing editor Jim Aley. Aley has returned to writing as
an editor-at-large for Fortune.
Desmond will continue as president.
Quittner was Time magazine's first personal technology
columnist, as well as founding editor of On magazine,
a Time spinoff about personal technology.
Quittner is based in San Francisco: 415/293-4800.
combining its two technology news sites, Newsbytes.com
and Washtech.com,under a new name: TechNews.com,
as of June 3.
TechNews will focus on the news that matters most to technology,
business and government decision-makers," said washingtonpost.com
CEO/publisher Christopher Schroeder.
The new site will contain nearly all of the content that
has been offered by Washtech.com and will add reporting
from several Newsbytes reporters.
In addition to covering the major technology stories of
the day, TechNews will offer expanded coverage of technology
policy, including such issues as regulation and legislation,
privacy, antitrust, and technology standards.
While Newsbytes will no longer exist as a separate website,
the company will continue syndicating technology news under
the Newsbytes name. Wash-tech will exist as a section of
the TechNews.com site, containing technology coverage important
to the D.C. area.
The Ft. Worth
and TV station KXAS, an NBC affiliate, have begun
a two-year relationship in which the organizations will
share news content.
news continued on next page)
Edition, May 29, 2002, Page 4
MISSING TRAVEL WRITER DECLARED
Travel writer, Claudia Kirschhoch, an assistant editor
for Frommer's travel guides, who was last seen on May 27,
2000 in Negril, Jamaica, has been declared dead by a New
Judge Reginald Stanton of Superior Court in Morristown
ruled (May 20) Kirschhoch had died as a result of foul play.
The ruling allows her parents to file a lawsuit against
Sandals Resorts, which owns the resort where Kirschhoch
was staying. Her parents, who hired a private investigator,
have made several trips to Jamaica, where they have posted
a $50,000 reward, and set up a phone line and a website
Kirschhoch was a member of a press trip organized by Patrice
Tanaka & Co., a New York-based PR firm. Some of the
writers were planning a visit to Cuba.
One of the last persons to see Kirschhoch was Tania Grossinger,
a freelance travel writer. The two writers had breakfast
together on the day Kirschhoch disappeared.
RAGAZA NAMED VIBE'S EXECUTIVE
Angelo Ragaza was named executive editor of Vibe,
a leading music and urban culture magazine based in New
Emil Wilbekin, editor-in-chief of Vibe, said Ragaza
will work with him to conceptualize issues and special projects,
plan future issues, oversee the editing of all stories,
major features and the layout of the magazine.
Ragaza had been deputy editor of HIV issues magazine POZ,
and was editor-in-chief of A Magazine, which targets
the Asian American community. He has also written for Vibe,
Vogue, W, Newsweek and Forbes.com.
NETWORK TV NEWS SKEWS WHITE
A study of ABC "World News Tonight," CBS "Evening
News" and NBC "Nightly News" in the year
2001 shows 92% of all U.S. sources interviewed were white,
85% were male and where party affiliation was identifiable,
75% were Republican.
Conducted for FAIR by the media analysis firm Media Tenor,
the study shows the three nightly news shows rely heavily
on society's most powerful groups when they report the news
of the day.
More than one in four sources were politicians -President
George W. Bush alone made up 9% of all sources-versus 3%
for all non-governmental advocacy groups.
The findings show corporate representatives appeared about
35 times more frequently than did union representatives,
accounting for 7% of sources vs. labor's 0.2%.
STUDY: NEWS REPORTS MOVE STOCK
A study by two professors found news reports by CNBC's
business news reporter/anchor Maria Bartiromo make stock
prices go up.
T. Clifton Green and Jeffrey Busse, who are assistant
professors of finance at Emory University's business school
in Atlanta, videotaped Bartiromo and CNBC colleague Consuelo
Mack for 20 weeks in 2000.
They also tracked the price performance and trading volume
of each stock before and after they were mentioned.
The study, which has been accepted for publication in
the Journal of Financial Economics, suggests some
day traders can profit a little by continuously following
news services such as CNBC and trading quickly on the news.
Executing a buy order within the first five seconds yielded
a profit of about $300 for trades that averaged $80,000,
they found. Buying within 15 seconds netted $123. Beyond
15 seconds, the average returns were no longer statistically
significant, after transaction costs were factored in.
The study found Bartiromo's reports carried more weight
with investors than Mack's. On average, prices rose 10 times
The study also found prices often rose in advance of Bartiromo's
FORBES COLUMNIST PITCHES SUBSCRIBERS
"My name is Ken Fisher. I write the 'Portfolio Strategy'
column for Forbes magazine and serve as chairman
and chief investment officer of Fisher Investments,"
starts a letter that was sent recently to subscribers of
Fisher, whose investment firm is located in Woodside,
Calif., offers "a kit of useful insights you can't
get anywhere else free and without obligation."
He says the kit "normally is given only to our clients.
Each one typically has at least $500,000 in our care."
"I've found educating high-net-worth investors is
good for our investment management business, whether any
individual becomes a client or not," says Fisher, whose
May 27 column was written on board the Crystal Symphony,
which is hosting the fourth Forbes Cruise for investors
as it sails the Pacific south from Acapulco.
SMART BUSINESS TO FOLD
Ziff Davis Media is shutting down Ziff Davis Smart
Business, formerly called PC Computing.
The last issue of SB will appear in June.
The publisher plans to bring back the title in September
as a newsletter, and will maintain its Smart Business website.
ABC is cancelling
Bill Maher's talk show, "Politically Incorrect,"
which has aired on the network since 1997.
Edition, May 29, 2002, Page 7
IPG, OMC BAR
and Omnicom, which together own PR firms with net fees of
$1.24 billion, held their annual stockholder meetings May
20 and 21 but barred any press interviews either before
or after the meetings.
its directors had to go directly into a board meeting following
the 27-minute stockholders' session in New York. A request
for an interview had been placed with VP-PR Phillip Krakowsky
two weeks before the meeting.
photos to be taken of the annual meeting but OMC barred
photos. OMC CEO John Wren, in reply to a question, said
he would not rule out an interview with him, CFO Randall
Weisenburger, and writers for this NL.
that a request for an interview be placed with Pat Sloan,
PR contact for OMC and former New York editor of Advertising
Age. She was asked to arrange a one-hour session.
reporters at both meetings were Jack O'Dwyer, editor-in-chief
of the O'Dwyer Co., and Kevin McCauley, editor of this NL
and the O'Dwyer website, www.odwyerpr.com.
is "on course" to provide an increase in earnings-per-share
for the year even if the second half is flat in terms of
revenues, CEO John Dooner told the meeting at the Equitable
Center, Seventh ave. and 52nd st.
several slides showing financial figures and ratios. Prepared
addresses were given by Wren and Weisenburger.
copies of the speeches and slides were not available to
which was $1.5 billion at the end of 2001, was $2.81B as
of March 31, according to a filing with the SEC May 15,
the last possible day for such a filing (45 days after the
close of the quarter).
said ad agency debt usually goes up in the first quarter
because of ad spending patterns.
As of March
31, OMC had $205 million in bank loans; $895M in long term
debt, and $1.75B in convertible debt.
$844M in 2001 buying 39 firms or making payments on previous
acquisitions. SEC rules do not require that the firms be
identified. OMC takes the position that the acquisitions
are not "material" and don't need to be identified.
Monitor unit of KMV Moody's shows OMC's credit rating has
fallen to high "B" levels as of March 31 from
"A" levels in 1997-98.
pointed out that Fitch, Moody's and Standard & Poor's
all give OMC an "A" rating.
However, an analyst said the three services are very slow
in changing their ratings and that the Credit Monitor's
ratings can be considered more current since stock prices
are taken into consideration. OMC, now trading in the late
$80's, hit $107 almost two and a half years ago (January,
Given to IPG
to obtain an interview with the IPG executives, the NL presented
a list of 14 questions to Krakowsky. Some of the questions
Two IPG PR
firms are paying dues of $50,000 each yearly to the Council
of PR Firms: (Weber
Shandwick and Golin/Harris Int'l).
Since IPG is running a tight ship, laying off 6,800 employees
through this summer, what is the justification for this
cost? What do you feel the Council of PR Firms will accomplish?
Omnicom is paying $150,000 (Fleishman-Hillard, Ketchum and
Porter Novelli); WPP Group is paying $150,000 (Hill and
Knowlton, Ogilvy and Burson-Marsteller), and Bcom3 Group
(Manning, Selvage & Lee) is paying $50,000.
IPG has acquired at
least 200 companies in the past four years, almost all of
them unidentified except in financial terms.
Not even the industry they are in is identified in many
cases. There are descriptions of 13 more acquisitions or
partial acquisitions in the latest 10Q without any identifications.
There were more than 30 such acquisitions in 2001. Can we
have a complete list of these acquisitions. How can we judge
the quality of what is being acquired?
Publicis in its Form 20-F issued in May 2002 identifies
18 acquisitions by name.
Why was PR removed
as a separate financial category in the IPG financial reports
starting with the first quarter of 2002? (combining
it with direct marketing, sales promotion, event marketing,
healthcare, branding and interactive, a huge category making
up 26% of IPG's revenues). OMC and WPP continue to break
IPG now has to decide,
with its accounting firm, PricewaterhouseCoopers, whether
there has been any impairment in the goodwill carried
for its purchases, goodwill totaling as of 3/31/02 $3.084B
plus other intangible assets of $107.9M. What are these
"other intangible assets?" How many of the 6,800
employees laid off are PR people?
Grant's says IPG's
accounting for its pension plan investment returns
made up a third of its year-to-year per share earnings gain
in 2000; accounting for employee options and stock grants
help boost EPS in 2000. Do you agree with that?
As for the state of
PR and IR, Ted Pincus, who for decades headed the Financial
Relations Board, which IPG now owns, said in April
that IR and PR people, as well as lawyers, accountants and
investment bankers, must stop being "lapdogs"
for companies like Enron. The professions must overcome
the "yellow streak of spinelessness," he said,
and PR/IR must once again take up its role as "corporate
conscience." Do you agree with his assessment of PR/IR?
Do you ever revisit
the "net new business" claims of sometimes a billion
or more you made for past quarters, stating whether
these proposed budgets have been revised downward because
of the decrease in ad spending? How much of these proposed
new business budgets ever materialized?
Edition, May 29, 2002, Page 8
Bowes, which used to supply us with a mailing machine and
postage meter, is making a determined bid to win us back,
promising possible "free postage" and six other
left PB in 1997 for Ascom Hasler, Swiss-made machine that
turned out to be cheaper and just as good or better than
Yearly meter charges had reached $1,000 at PB plus $500
for maintenance. AH meter fees are $672 annually no matter
how much postage is used. There is no maintenance charge.
In five years there has been one repair bill-$132 for a
seal provided by the smaller, quieter AH is iron tight.
Plain water is all that is needed (not the blue liquid that
PB still recommends for a good seal). Postage is added via
phone at no cost. The AH had cost about $2,000 less than
the comparable PB 5600 model. We figured we paid $14,000
over 25 years for a meter that cost PB $800 to make.
with PB, we found that yearly meter charges are now $1,328
and that maintenance on the base is $650. Blue sealing liquid
is still sold. The PB meter rental fees are based on amount
of postage used although we can't get any logical explanation
for this. PB charges $9.50 for adding postage.
have lost a lot of confidence in security analysts, especially
those connected with brokerage houses and investment bankers.
The analysts are now the object of both federal and state
investigations. The most damaging statistic is that only
3% of recommendations are currently for "sell"
vs. 18% in 1992.
Lynch last week agreed to pay $100 million to settle claims
of New York state. It still faces claims that could add
up to $5 billion from people wh said they bought stock based
on advice from ML that was supposedly independent but was
linked with investment banking fees.
group of 54 analysts formed Investrend to provide independent
stock analysis under contract from companies. The analysts
are not connected with any banks or brokerage houses.
group was started because many companies have no analyst
coverage. About three-quarters of investors say they are
"most influenced" by an analyst report. For $12,000
and up, an Investrend partner will provide such an analysis
Interpublic and Omnicom annual meetings are an example of
the "zero-sum" or "scorched earth" PR
that is popular these days: no texts of presentations; no
copies of statistical slides; no interviews for the press;
no pictures allowed (by OMC), and refusal of PR aides to
answer any questions.
This NL was the only press at the meeting. Press attendance
has not been cultivated or encouraged.
and OMC are what are called "roll-ups" on Wall
Street. They "buy their top of the lines," meaning
they buy through acquisitions much of their annual gains
in sales and earnings.
in 2001 added $735 million in revenues with a little over
half (about $440M) coming from acquisitions, for which it
paid $844M, or almost $2 for every $1 of revenue added.
The 39 acquisitions were purchased with $818M in cash to
avoid increasing the stock float.
identity of almost all of these acquisitions is not known.
"Most" of the acquisitions have been "relatively
small transactions," says an OMC filing withthe SEC.
the previous year, OMC added revenues of $1.02 billion with
nearly half coming from acquisitions, most of them also
security analysts simply say, "We don't know what OMC
is." The major ad/PR units are known but the quality
of the firms being acquired at a cost of nearly $1 billlion
a year is not known.
pay for all these acquisitions to keep OMC's record of growth
intact (43 quarters in a row of gains), debt soared to $2.81
billion as of March 31. The Credit Monitor unit of KMV Moody's
shows OMC has been in the high "B's" since late
1999. The CM measurement, which also considers stock price,
is much more meaningful than credit ratings by Fitch, S&P
and Moody's, which give "A's" to OMC but which
can lag the market by months.
has been highly active in the credit markets, issuing $45.3
billion in commercial paper in 2001 and redeeming $45.9B.
In the previous year, it issued $13.4B and redeemed $12.5B.
"scorched earth" or "in-your-face" PR
school of IPG and OMC is popular today but there
are still PR firms and some corporate PR departments whose
goal is to communicate via the editorial portions of print
and broadcast media, supplying media the necessary details
and setting up interviews with principals of clients.
interesting list, from a client's point of view, would be
PRfirms that are 100% dedicated to working with the media.
Firms could also describe themselves as being 90% dedicated
to media and 10% dedicated to marketing/graphics/strategy/advertising,
a sliding scale, they could rank themselves all the way
to the opposite end-100% dedicated to marketing, etc., and
no percent dedicated to media.
that wish to take part in such rankings should e-mail Jack
O'Dwyer at [email protected].This
is a measuring tool that would help clients to retain the
kind of PR firm they want.