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KLORES TAKES OVER SONG FOR
KETCHUM
Dan Klores Communications
has taken over PR duties for Song, the low-cost airline
that Delta Air Lines plans to launch in April, said Stacy
Geagan, spokesperson for the start-up.
"We used Ketchum
on a project basis, and for internal communications,"
Geagan said of the Omnicom unit that handles Delta. "We
are going forward with Klores because of its entertainment
PR capabilities," she added.
Sean Cassidy, senior partner
at DKC, said his firm will establish marketing partnerships
for Song with clients in its entertainment, hospitality
and consumer product sectors. The PR firm will represent
Song as least through completion of its full-launch, which
is anticipated by November.
Song president John Selvaggio
envisions a fleet of 36 Boeing 757 aircraft flying 144 flights
a day by October. Song will serve New York, Boston, Washington,
D.C., Hartford, Fort Myers, Fort Lauderdale, Tampa and Orlando.
Song is Delta's $65 million
response-which is the cost of the start-up-to discount carriers
Jet Blue and AirTran that have lured travelers in the Northeast-Florida
markets. The Wall Street Journal (Jan. 29) noted
that Delta's new Song is a "risky bet" at a time
when United Airlines and US Airways are in Chapter 11 and
the threat of war looms.
Delta, a Ketchum client,
lost $363 million in the fourth quarter.
McLEARN JOINS RF
Don McLearn, a former
deputy associate commissioner for PA at the Food and Drug
Administration, has joined Ruder Finn's Washington, D.C.,
office as senior VP in its healthcare practice.
Craig Martin, head of
RF/D.C., hired McLearn because of his "valuable contacts
within the FDA." He knows how the agency works, added
Martin, executive VP and managing director at RF.
McLearn, who spent 17
years at the FDA, will counsel clients on prescription and
medical device approvals, regulatory matters, and crisis
management. He joins RF after five years at Fleishman-Hillard.
Text
100 has landed Verio, the NTT Communications unit
that hosts corporate websites and manages private networks
for customers in more than 170 countries. The PR firm's
New York, Palo Alto and Amsterdam offices will handle the
account.
H&K GETS VIETNAM TRADE
PACT
Vietnam, which inked a
bilateral trade pact with the U.S. in 2001, has hired Hill
& Knowlton to position the country as the place for
American companies to invest in Asia.
Paul Taaffe, H&K's
CEO, says the WPP Group unit will deliver the message that
Vietnam is "open for business." The firm also
will play up Vietnam's 80 million people, of which 90 percent
are literate, as an "untapped resource potential."
The Economist's Intelligence unit projects that the
Vietnamese economy will grow seven percent this year.
H&K's offices in New
York, Washington, D.C., and Singapore will pitch Vietnam.
The firm's contract is with the Ministry of Planning and
Investment.
The firm also picked up
a $300K pact from Australia to promote the merits of a national
nuclear waste dump to be sited near Woomera in South Australia.
A Sydney anti-nuclear
coalition, led by Dr. Jim Green, has pledged 1% of that
amount from its war chest to start a "counter-offensive."
H&K will run the government's
campaign from its Melbourne office, which is run by Rod
Nockles, who refused to comment on the campaign.
W&B WANTS TO PLAY
BALL IN VIRGINIA
The Virginia Baseball
Stadium Authority has tapped White & Baldacci for a
$200K contract to help the state put together its pitch
to Major League Baseball's Relocation Committee.
The first meeting between
the VBSA and the League took place last week, but a date
for a formal pitch has not been set, according to Brian
Hannigan, communications director for the Authority. He
told this NL that VBSA looked at six other firms in the
review but decided on Reston, Va.-based W&B because
of vice chairman and president Steve Baldacci, who was formerly
president and chief marketing officer of the Washington
Redskins before joining the firm last year.
O'Dwyer's Directory
of Corporate Communications, 2003 Edition, which
lists the communications contacts at 5,300 companies, 2,100
associations, 189 foreign embassies and 350+ federal government
agencies and departments, has added thousands of web addresses
to ease information searches. The Directory, which is due
out next week, includes all NYSE-listed companies. $130
from the O'Dwyer Co.
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FDNY GROUP PUSHING FOR 9/11
MEMORIAL
The Emerald Society of
the New York City Fire Dept. has launched a grassroots campaign
to support building a Firefighters' Memorial at the World
Trade Center site. The group accounted for 180 of the 343
firefighters who were killed during the collapse of the
World Trade Center in the aftermath of the Sept. 11 attack.
The Lower Manhattan Development
Corp., the entity that oversees planning for the reconstruction
of downtown, opposes a separate memorial. The LMDC, which
uses Edelman PR Worldwide to handle its $2 million account,
wants a single 9/11 monument with the names of the more
than 2,800 people who lost their lives on 9/11.
The Society also would
support separate memorial acknowledgements for the Port
Authority of New York and New Jersey Police Dept., which
lost 37 members or three percent of its force, and the New
York Police Dept., which lost 23 cops on 9/11.
The ES asks supporters to contact New York Gov. George Pataki
and the LMDC by phone or e-mail in support of the Firefighters
Memorial.
Patrick McCarvill, an
Emerald Society spokesperson, said hundreds of e-mails have
already been sent. John Finucane (845/548-4234) is the contact
for PR firms interested in providing pro bono counsel to
the Memorial campaign.
FENTON WARNS AGAINST TOXINS
IN BODY
Fenton Communications is using ads and PR to link the proliferation
of chemicals in the air, water and food to many diseases
and illnesses in humans.
That push, for the Collaborative on Health and the Environment,
comes on the heels of the Jan. 31 release of a $6.5 million
Center for Disease Control study measuring toxicity levels
in humans. Another report, released earlier this week and
sponsored by CHE member the Environmental Working Group,
found an average of 91 toxins and industrial pollutants
in a medical study of nine people by Mt. Sinai Hospital
in New York.
The firm ran a full-page ad in The New York Times last
week, titled "Body Burden: the pollution in people."
The ad features a woman with breast cancer who was "astounded"
to find the number of chemicals present in her body. CHE
claims chemicals in the environment and foods cause disease
in more than one-third of the U.S. population at an annual
healthcare cost of $325 billion.
Critics have lashed out at the mounting campaign, saying
the accusations and scare tactics are based on "junk
science." Cato Institute scholar Steven Milloy called
the campaign part of the greens' "mindless anti-chemical
agenda" on Fox News.
"They're scheming to use the CDC report as an opportunity
to launch the mother of all scare campaigns," he said.
Fenton has handled health-related issues for the White
House, American Medical Assn. and the Harvard School of
Public Health.
EDELMAN TELLS WEF: FORGET
ADS, DO PR
More than 80 percent of Americans and Europeans trust information
they receive from the media, while a mere 12 percent of
the group say advertising is trustworthy, Richard Edelman,
CEO of Edelman PR Worldwide, told the movers & shakers
at the World Economic Forum in Davos, Switzerland, on Jan.
27.
Edelman unveiled the results of his firm's latest "trust
survey" of 850 opinion leaders in the U.S., France,
U.K. and Germany, while making the pitch that PR is more
credible than advertising.
Business and newsweeklies are perceived as the most trusted
media (44 percent), while corporate and product advertising
are the least trusted (five percent).
Consumer packaged goods, hardgoods and technology are the
most trusted corporate sectors in the U.S., while most Americans
gives thumbs down to energy, telecom and professional services
firms. Europeans are more likely to trust healthcare, airline
and consumer goods companies, and frown on banks and other
financial services companies.
The survey found that trust in the U.S. private sector
is on the rise. Trust in Corporate America rose seven points
to 48 percent since Edelman's June `02 survey. The PR exec
attributes legislation, such as the Sarbanes-Oxley law,
with boosting confidence in business. Trust in the U.S.
Government tumbled to 39 percent from its 48 percent post-9/11
mark.
American icon brands such as Coca-Cola and McDonald's are
respected more here than over there. Coke gets a 66 percent
approval rating in the U.S., and scores 37 percent in Europe.
Fifty-five percent of Americans approve of McDonald's. The
fast food feeder gets a 22 percent ranking in Europe.
What are the most trusted brands in Europe? They are NGOs
Amnesty International, World Wildlife Fund, Greenpeace and
Oxfam International.
B-M WORKS FOR `NET SNOOP
Burson-Marsteller is now working for Stellar Internet Monitoring
because SIM's CEO was impressed after reading an article
placed by B-M in Advertising Age extolling the cost effectiveness
of PR over advertising.
Richard Schmidt, CEO of the Bonita Springs, Fla., company,
told this NL that he contacted B-M after the Ad Age piece
ran, and invited the firm to make a proposal.
SIM, which has web-based tools to help companies snoop
on how employees are using the `Net, had once used high-tech
firm The Stephenson Group, but wanted to expand its marketing
base, according to the CEO.
Schmidt said it came down to either hiring B-M or doing
PR in-house. He selected B-M because of its media relations
expertise and executive positioning plans.
The company contends that misuse of the Internet costs
American business about $63 billion in lost productivity
as workers chat, shop and trade stocks online.
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MEDIA
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PT&CO. AIMS
FOR 100+ S. AFRICA STORIES
Patrice
Tanaka & Co. is working on getting more than 100 stories
to appear this year about places to see and stay in South
Africa.
The New York-based
PR firm has been given approval to conduct at least 14 press
trips to the country over the next six to eight months as
part of its assignment for the South African Tourism department,
according to Moeketsi Mosola, COO of SAT.
Writers who
have been given assignments to write or produce pieces about
South Africa's travel destinations will be invited to go
on the all-expenses paid trips, a spokesperson for the PR
firm said.
The 14-day
itinerary, which the spokesperson described as "grueling,"
will include stops in Capetown and Johannesburg, and will
focus on destinations that will be featured in a new ad
campaign targeting two different types of U.S. travelers-the
rich and the adventurous.
The two-part
campaign was unveiled at a press conference and cocktail
party, arranged by PT&Co., that was held Jan. 23 in
New York. About 100 reporters and travel industry executives
attended the meeting at the Harold Pratt House, which is
the home of the Council of Foreign Relations.
Solly Moeng,
U.S. country manager for SAT, said the new marketing approach
is the result of comprehensive research that has "enabled
us to identify and pursue two key targets in the first part
of our campaign-the top end luxury segment-`Next Stop South
Africa'-where the bulk of our current market share sits;
and the younger, action and adventure loving professional-`Upscale
Wanderlusters.'"
The "Next
Stop South Africa" campaign will be featured in Conde
Nast Traveler, National Geographic Traveler,
Travel + Leisure, Departures, Smithsonian,
New Yorker and International Travel News,
and online at Concierge.com
and The Away Network.
The "Upscale
Wanderluster" ads will run in Budget Travel,
National Geographic Adventure, Travel Holiday,
Blue, The San Francisco Chronicle, The
Boston Globe, and The Washington Post. It will
also be featured online at Concierge.com,
The Away Network, Frommers.msnbc.com, and Fodors.com.
Information
on SAT is available on southafrica.net
or from Jill Ackerman at 212/730-2929 ext. 616 or [email protected].
PEOPLE
Dean
Wright, 52, was hired as editor-in-chief of MSNBC.com
to replace Merrill
Brown, who quit in June. Wright, who is moving to
the Seattle area from New York, will start Feb. 10.
He wants
to make the site "a bit more populist" with more
coverage of lifestyle and entertainment.
"There's
lots of room to increase coverage of popular topics and
affect users' lives without giving up on the essential mission
to keep people informed," said Wright.
Sandra
Sobieraj, 35, has quit The Associated Press to join
People magazine as chief of its Washington, D.C.,
bureau.
Shani
Saxon, who was music editor at Vibe, was promoted
to executive editor of the urban music and culture magazine.
Serena
Kim was named features editor, a new position, and
Eric Parker,
previously senior editor at The Source, has joined
as music editor.
Kim will
handle coverage of non-music features, investigative stories,
cultural trend pieces and business profiles.
Jason Adams,
previously editor of the "Burner" section at Blender
magazine, and Ari Karpel, who was editing TV Guide's
"Insider" section, have joined Entertainment
Weekly as senior editors.
Tom
Geier, who was EW's "News & Notes"
editor, was reassigned to the book review section.
Tracey
Pepper was promoted to senior editor at Spin,
a New York-based magazine. She will continue to edit news,
music profiles, and new artist coverage in the magazine's
"Noise" section.
Jeff
Koyen, who is currently an associate editor of The
Pill, an English-language alternative weekly in Prague,
is joining The New York Press, a weekly paper, as
editor. He will replace Lisa
Kearns, former managing editor, who was named editor
when John Strausbaugh
left the paper after it was acquired by Avalon Equities,
owners of The New York Blade.
Alexander
Zaitchik, a co-founder of The Pill, also is
joining the NYP as an associate editor.
MEDIA BRIEFS
Time Inc. is
"studying as many as half a dozen new magazine ideas,"
according to The Wall Street Journal. The ideas range
from a title about small houses to one that consists mostly
of celebrity pictures.
The New York Times, if forced to close its West
43rd st. headquarters due to a terror attack or natural
disaster, will move its news department to its production
plant in Edison, N.J.
The American Gem Society
(ags.org)
has established the Richard Liddicoat Journalism Award.
Checks for $1,000 will be given to reporters in three categories:
jewelry industry/trade reporting, consumer reporting in
national/multiple markets and consumer reporting in a local
market for writing articles that make "exceptional
contributions to the understanding of gemology."
Industry Week's
editor-in-chief Patricia Panchak seeks nominations
for the "Executive Word" column, which puts the
spotlight on top executives at companies, who "make
good deeds part of business strategy."
She is at [email protected].
(Media
news continued on next page)
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MEDIA
NEWS/JERRY WALKER
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NEW MAGS TO BOW AT N.Y. FASHION
SHOW
Three new fashion publications will make their publishing
debut at New York's Fashion Week, which starts Feb. 7.
7th on Sixth, which produces the event, will publish seven
issues of The Daily; Women's Wear Daily will
introduce Inside New York, and Time magazine
will distribute free copies of Style & Design
to attendees of the show at Bryant Park.
Brandon Niro is editor of The Daily, which Newsday
describes as "a news-and-gossip tabloid."
Niro, a former publicist, was editor of US Weekly's
paper, US Daily, which was published for the first
time at last September's fashion show. US Daily will
return.
Niro's paper will feature lots of fashion, gossip and scene
reporting, and lots of photos.
Belinda Luscombe, editor of Style & Design, told
Newsday her magazine, which will be mailed to 600,000
Time subscribers who are either very high income
or also subscribe to InStyle, will cover business
aspects of fashion and other design topics, such as cars
and architecture, exploring how culture and identity are
shaped through design.
WWD's Feb. 7th special section, called Inside New York,
will focus its coverage on "it" parties and restaurants,
and such matters as how designers get A-list celebrities
to their shows and how much a show costs. WWD will continue
its normal daily coverage.
Full Frontal Fashion,
a cable TV show, will once again provide runway coverage
on the Metro Channel. For the first time, coverage is being
extended to London, Milan and Paris.
National
Version to Air
Also for the first time, WE: Women's Entertainment will
carry a national version of the show, beginning with a Feb.
23 preview (part of a month-long "Fashion Spectacular"),
going weekly in April. The E! Networks' Style Network will
air a runway show, "Fashion Trance," Feb. 8-15.
People, which published two newsstand-only issues
called Style Watch last year, will do a repeat. The
next issue goes on sale March 3.
Vogue also is expanding its fashion coverage with
an occasional TV series called "Trend Watch."
Though editors will appear, it is actually a business venture
linking the purchase of commercials and print ads in the
magazine.
Vogue, which last year broadcast the runway shows
on a giant screen in Bryant Park for the public, is planning
to add screens in Grand Central Terminal and in W hotel
lounges.
CBS EXPANDS MUTUAL FUNDS COVERAGE
CBS MarketWatch
is expanding its mutual fund coverage with the addition
of two financial writers.
Jonathan Burton, who is the author of "Investment
Titans" and "Electronic Day Traders' Secrets,"
has joined as mutual funds editor, and Charles Jaffe, a
financial writer for The Boston Globe, has signed
on as a contributing columnist.
Burton is replacing Craig Tolliver, who will now edit the
site's Newsletters & Research channel. Burton will handle
"FundWatch" and "Mutual Understanding"
columns for CBS MarketWatch, and also edit its Mutual
Funds Weekly newsletter.
Jaffe, who is president of the Society of American Business
Editors and Writers, will provide three columns a week in
addition to audio and video analysis of breaking news affecting
personal finance or of the fund industry.
Jaffe will continue to write his mutual columns, which
are syndicated in 50+ newspapers nationwide.
PRINCIPOR GETS PRESS FOR SOUP
KITCHEN
Principor Communications
put together a publicity-getting program for Miriam's
Kitchen, which serves breakfast and provides social services
to men and women who are homeless in the Foggy Bottom area
of Washington, D.C.
The campaign is built around Steve Badt, a professionally
trained chef who traded a career in high-end restaurants
to conceive and prepare gourmet meals for people who might
otherwise never have the opportunity to enjoy them.
The "Chef Steve" angle has resulted in features
on National Public Radio's D.C. affiliate and in The
Washington Post and Washington Times, plus a
feature on Badt in the Feb. 3 issue of People.
"This coverage has resulted in measurable increases
in both financial and volunteer support," said John
Jordan of Principor. "Volunteer interest has been so
high that Miriam's recently started a second shift to accommodate
them," he said.
Jordan said the campaign proves "PR is about communicating
what makes an enterprise different.
Sometimes the differentiator is the management team."
PR PRO TELLS HOW TO PITCH
MEDIA
Al Lautenslager,
a marketing/PR consultant who owns a printing and mailing
company in Wheaton, Ill., passed along these pitch tips
that he got from the editors of four well-known publications
on Entrepreneur.com:
-Give leads about people no one has really heard about
before or a new effort from a company that is trying something
different.
-Offer case histories.
-Give real examples of how the product or service differs
from the competition.
-Make sure the story is one no one has written about at
the newspaper or magazine.
-Make sure the press release communicates to editors exactly
what makes the product unique.
E-mail is the best way to pitch stories, said Lautenslager,
who also advises readers not to say "press release"
in the subject line.
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PINCUS RAPS COKE
FOR 'CLAMMING UP'
Ted Pincus,
the former CEO of The Financial Relations Board, has knocked
Coca-Cola's decision to discontinue its practice of offering
investors guidance on earnings expectations.
Pincus, an
adjunct professor of finance in the MBA program at DePaul
University, said Coke's new non-disclosure policy "represents
a troubling regression in the annals of corporate disclosure."
The IR veteran
said he and other pros "spent decades patiently coaxing
CEOs into the sunshine."
"We preached the mantra that if a company sincerely
sought wider investor interest, leading to a maximum sustainable
price/earnings multiple, then there was a price to be paid,"
he wrote in an op-ed piece that ran in the Jan. 28 Chicago
Sun-Times.
Pincus said
IR pros asked CEOs to avoid the quarterly numbers game,
and talk in ranges of performance over a year or more, talk
specifics on how they hoped to attain them, and be ready
and willing to update investors frequently by fine tuning
their expectations.
By the late
'90s, an estimated 75 percent of all public companies were
providing what came to be called "street guidance"-the
frequent, full and simultaneous disclosure of performance
expectations, according to Pincus.
He said the
transformation was credited with reinforcing the "glasnost
spirit" that helped inspire the investor confidence
that created the longest bull market in history.
PIPER RUDNICK PROMOTES 'FREE'
KOSOVO
Piper Rudnick is working to build U.S. Congressional support
for the independence of Kosovo, which is part of Yugoslavia's
Serbia province. Kosovo saw much bloodshed during the `90s
when then Serbian leader Slobodan Milsevic unleashed a campaign
against the ethnic Albanian majority. A U.S.-led NATO force
drove the Serbians out. Kosovo has been a United Nations
protectorate since 1999.
Kosovo's independence is opposed by current Serbian leadership.
Prime Minister Zoran Djindjic warned last month that an
effort to create a free Kosovo could result in more violence.
Piper Rudnick's $30K a-month agreement calls for it to
relay Kosovo's take on the political, economic, human rights,
intelligence and security concerns in the Balkans. Marshall
Harris heads that effort. He is the former State Dept. official
who resigned in 1993 to protest the U.S. "inaction"
to contain the bloodshed in Bosnia. He also was VP at Freedom
House in Washington, D.C., and chairman of the Acquisition
Support Institute, an organization that works with the State
and Defense Departments to facilitate training of the Bosnian
military.
Terry Wade,
former EVP of PA at Cohn & Wolfe and managing director
at Burson-Marsteller, has set up The WadeGroup in Washington,
D.C. He had headed C&W's D.C. office, which closed Dec.
2001.
RUBENSTEIN TACKLES SEX DISORDERS
Rubenstein Assocs. is providing IR services to NexMed Inc.,
a Robbinsville, N.J.-based company that has products in
the pipeline to treat erectile dysfunction and female sexual
arousal disorder. NexMed, in December, completed Phase 3
clinical trials in more than 80 research centers for Alprox-TD,
a topical cream that it hopes one day will compete with
Viagra.
The company believes Alprox will be more attractive than
Viagra to the more than 30 million men with ED because it
is faster-acting with less side effects. NexMed CEO Joseph
Mo also eyes commercialization of Femprox which is targeted
at the 43 percent of women between 18 and 54 that the American
Medical Assn. reports have some sexual dysfunction. There
is no commercial pharmaceutical product that has been approved
for FSAD. NexMed claims the worldwide FSAD market is bigger
than the ED category.
Clint Cantwell of Rubenstein Investor Relations heads the
NexMed account. Deborah Carty, a NexMed spokesperson, could
not be reached.
Just What
the Doctors Ordered?
Drug companies have been accused by Ray Moynihan, editor
for the British Medical Journal of resorting to "behind
the scenes" PR tactics to promote a new disorder called
"female sexual dysfunction" in an article published
Jan. 31 in The Age, a daily newspaper in Melbourne,
Australia,
Moynihan said the history of female sexual dysfunction contains
"many blurred lines. Essentially a group of researchers
with ties to drug companies has been defining and refining
a new category of human illness at meetings sponsored by
the same companies racing to develop new drugs," he
said.
He believes the discussions about sexual problems and revelations
about the creation of the dysfunction are part of a wider
story about close relationships between doctors and drug
companies-"relationships that may be distorting medical
science and skewing our notions of health and illness."
BENNETT TO CITIGATE
Bill Bennett, former senior VP at Ruder Finn and Golin/Harris
Int'l, has been named to head the Sun Microsystems account
at Citigate Cunningham. He takes over for VP Kevin Patsel,
who has left the firm.
Bennett, who joins the firm as VP and portfolio leader
in its Palo Alto office, reports to CC president Paul Bergevin.
Bennett has previously counted NCR, Toshiba and Sun as clients
in a 20-year career.
Most recently, he was an independent consultant handling
Interwoven, Pulsent and Actuate.
Prior to a term in Ruder Finn's San Francisco office, Bennett
founded marketing consultancy Information Design Assocs.,
was a senior VP/general manager at Hill and Knowlton's advanced
technology division and held communications posts at Hewlett-Packard
and Convergent Technologies.
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PR OPINION/ITEMS
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This
NL is again gathering fee and employee totals of PR firms
for our annual rankings. As has been the case for
the past four years, the 15 or so biggest PR firms are refusing
to supply them.
The firms are in the so-called
"Council of PR Firms," which is trying to establish
itself as the collector of statistics for the industry.
A better name for the group would be the "Coalition
of Big PR Firms." This is a case of the fox appointing
itself caretaker of the chicken coop.
Almost all of the $1 million
in income of the CPRF comes from the biggest firms, each
of which pays $50K yearly in dues.
After nearly five years,
only a handful of smaller firms have joined. The CPRF lost
26 firms in 2001-2002 and added 14 for a current total of
120. Dues are .65% of fees. Minimum is $2,500.
Nevertheless, the CPRF
claims to be "the leading authority on the PR industry."
The CPRF's rules benefit the big, conglomerate-owned PR
operations.
If a conglomerate buys 51% of a PR firm on Dec. 31, it can
count 100% of the income for the entire year. Up to 10%
of income can be from "issue" ads. Conglomerates
can combine billings of PR units as long as "control"
is asserted and the same brand name is used. This leads
to boxcar figures in which dozens of firms are "combined."
Shandwick, for example,
was once 35 different PR firms.
No account lists are required
by the CPRF, which fits in with the big firms' penchant
for secrecy.
The rules play into the
hands of the conglomerates' PR firms which no longer have
separate income tax returns and may not have separate W-3s.
They get their numbers under supervision of parent ad giants
such as Omnicom and Interpublic, whose managements are under
fire for alleged financial irregularities. Loss of faith
in the financial reporting of OMC and IPG has caused their
stock prices to plummet.
Payroll, fee and employment
totals for 2002 are known to the big firms now. But they're
not going to reveal them until May (last year's publishing
date). Before the CPRF started interfering, we published
the figures by the first week in March.
PR
firms and suppliers say business is "just about standing
still" because of the threat of war. New York
counselor Richard Laermer says PR firms can help their clients
through this period by providing emotional support and advice
and by being in constant touch with them. Keeping them informed
is one way to lessen their stress, he said.
The
New York Times
policy of having its reporters avoid friendships with sources
(1/29 NL) is evident at the N.Y. Financial Writers' Assn.
In 1971, 28 NYT financial reporters were in the NYFWA including
financial editor Tom Mullaney, future financial editor John
Lee and columnist Bob Bedingfield.
Others included John Abele,
Bob Cole, Glenn Fowler, Erich Heinemann, Al Kraus, Jim Nagle,
Gene Smith, Bill Smith, Len Sloane and Phil Wiggins.
Many took part in the
"Financial Follies" where about half the cast
and stagehands were PR pros. During the weekly rehearsals
over a period of months and at various parties, many friendships
were formed.
But in recent years, as
the NYT became more insular, NYT staffers dropped out. Only
five Timespeople currently belong. CNN has about 20 members.
The Wall Street Journal had 12 members in 1971 but
only one now.
Despite
its pledge to tell the "complete, unvarnished truth,"
the NYT last year skipped the 35th anniversary of
Israel's (mistaken?) attack on the USS Liberty in 1967.
However, it may have to
do something now since the Washington Post on Feb.
1 ran an extensive piece on it, saying "evidence suggests
a U.S. government coverup."
The NYT has also virtually
ignored the financial troubles of Omnicom, which have been
covered extensively by The Wall Street Journal.
The
blocking of press/ PR personal relationships, which is being
done by companies as much as media, indicates companies
don't trust their employees.
Communications are stymied
if reporters and PR pros almost never get to see each other
in person.
PRSA,
which switched from "Big Four" CPA Deloitte &
Touche to Sobel & Co., says its 2002 audit will
be ready in early March. Results in past years were often
announced in mid-summer because D&T was "busy with
blue chips."
PRSA treasurer Del Galloway
told the Assembly Nov. 17 that the Society was "very
low" in cash and investments based on standards of
the American Soc. of Assn. Execs.
PRSA's cash is about
11% of annual expenses and it should be "around 50%"
according to the ASAE. Aim is to get this up to 20% in the
next four years.
The
new PRSA logo at least gives a capital "A"
to America. The previous logo, which had a small "a"
for America, was disrespectful, some members felt.
Lame
duck SEC chairman Harvey Pitt, pressured by Wall
Street, accountants and lawyers, is "watering down"
or "delaying" some rules designed to prevent future
Enron-type scandals, said Time mag Feb. 3.
CPAs can still earn consulting
fees from companies they audit.
Company lawyers must report
wrongdoing internally but not to the SEC as once planned.
The
National IR Institute defines IR as "a strategic corporate
marketing activity" that at the same time gives
an "accurate portrayal of a company's performance and
prospects."
This is like having the
sales staff of a newspaper write the stories.
Aware of the contradiction,
NIRI literature adds, "Marketing in this context does
not mean 'selling.'"
IR, it says, involves
"educating" audiences. Our dictionary says marketing
is "the act or process of selling."
--Jack O'Dwyer
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