RUDER FINN ABOUT EVEN IN 2002

The Ruder Finn Group, which includes RF Binder Partners, reported 2002 fees were $80.2M, down slightly from $80.3M in 2001. Employment rose from 543 to 585. Payroll was $37.38M.

Peter Finn, co-CEO of RF with Kathy Bloomgarden, said healthcare continues to be strong as well as consumer, travel and corporate.

Edelman PR Worldwide, No. 1 independent with $220M in fees in 2001, is preparing its figures for release next week. A decrease of 6%-7% is estimated. Edelman has many overseas offices while RF operations are mostly in the U.S.

The big ad agency-owned PR units are withholding their figures until April. Interpublic, which owns Weber Shandwick and Golin/Harris, reported PR revenues fell 18% in Q3 of 2002, the worst performance of any of its sectors. WPP, which owns Burson-Marsteller, Cohn & Wolfe and Hill & Knowlton, said PR was its poorest performing segment in the first half of 2002, down 11.2%. PR accounts for 11.8% of WPP's revenues.

Omnicom reported a 9% gain in PR fees in Q3 but this includes an unspecified amount from acquisitions. Omnicom PR units include Fleishman-Hillard, Ketchum and Porter Novelli.

Tim Doke, VP-corporate communications, American Airlines, DFW Airport, Texas, will join Dell Computer Corp., Round Rock, Texas, in March in the new post of VP of communications, reporting to Elizabeth Allen, VP-CC.

He will oversee media relations, PA at Dell and its Foundation, employee PR and executive visibility. American is fighting off bankruptcy. Dell last September called off a search for a global PR head, saying that Allen was the best qualified for the post.

Beverly Hills Conference and Visitors Bureau named the travel and lifestyles practice of Weber Shandwick for PR. Pollard Communications and Crier Communications also pitched. WS will promote Beverly Hills as a "world-class destination and brand," said Rene Mack, president of the practice. He plans to promote its "hidden treasures" such as its architecture and spas.

Howard Paster, EVP at the WPP Group and former CEO, Hill and Knowlton, has been named to the board of the London-based ad/PR conglomerate.

H&K SUCCEEDS EDELMAN AT AVAYA

Avaya, the troubled telecom equipment maker, has selected Hill & Knowlton for a "branding project," which is a pretty big deal, Lydia Whitefield, VP, corporate marketing and communications, told this NL. H&K takes over for Edelman PR Worldwide. "We worked with Weber Shandwick prior to that," she said.

Whitefield said she was impressed with H&K's capabilities. She noted that Michael Gordon, SVP in H&K's technology practice, will lead the Avaya team. Whitefield described herself as a "tough client."

The Lucent Technologies spinoff lost $37.6 million during its fiscal first quarter on an 18.7 percent decline in revenues to $1 billion.

The company designs, builds and manages communications networks for more than one million customers, including 90 percent of Fortune 500 companies.

Avaya was listed on the New York Stock Exchange on Oct. 2, 2000. It trades at $2.63.

COKE DEALS A BLOW TO IPG's DOONER

Coca-Cola has shifted its $150 million U.S. Coke Classic account from Interpublic's McCann-Erickson agency to WPP Group's Berlin Cameron/Red Cell unit, dealing a blow to IPG CEO John Dooner.

The IPG head served as "chief client officer" on the Coke business. The Wall Street Journal (Feb. 7) expects the account switch will likely put some heat on Dooner, and even more scrutiny on McCann-Erickson CEO Jim Heekin. Tensions between the two have been strained largely because it was McCann's shoddy bookkeeping practices that forced IPG to restate $181.3 million in earnings, sending its stock into a tailspin and triggering a Securities and Exchange Commission probe. IPG is now down to $10.75, off its $34.98 52-week high.

McCann will continue to handle Coke overseas. Coke president Steve Heyer, a former Turner Broadcasting executive, promised to shake up the Atlanta-based company's marketing efforts when he assumed the post in December.

John Faso, a veteran of the New York political scene, has joined Ruder Finn as senior PA advisor. The 16-year legislative veteran and former Republican leader of the state's assembly will work for RF from Albany, New York and Washington, D.C.
Peter Finn says Faso "understands how policy is made and how policymakers think."

EDELMAN & RUBENSTEIN GO TOE-TO-TOE

Edelman PR Worldwide is spearheading insurer Swiss Re's battle against real estate developer Larry Silverstein's claim that the Sept. 11 attacks on the World Trade Centers were two separate strikes entitling him to $7 billion in compensation as leaseholder of the properties. Rubenstein Assocs. CEO Howard Rubenstein represents Silverstein. The squabble earned a front page story in the Feb. 5 New York Sun, and articles in the New York Times and New York Post.

Swiss Re, which is the largest of the 23 companies that insured the site, maintains that Silverstein's policy defines the attack as a single occurrence worth $3.55 billion. The company brands Silverstein's two-event claim a "self-motivated hoax." Rubenstein retaliated by calling Swiss Re's statement a "cynical and manipulative attack on Silverstein Properties," and in turn "an attack on the rebuilding of lower Manhattan."

Swiss Re's court filing states that Silverstein huddled with Rubenstein the day after the attack. The two-strike strategy was adopted after Silverstein rejected the idea to declare the WTC site "hallowed ground" on which nothing will ever be built, according to a memo by Rubenstein that is included in Swiss Re's court filings. He wrote: "The WTC will not be rebuilt. It is inconceivable that we could rebuild a place of commerce on land that has become drenched with the blood of American patriots. It needs to be consecrated much the way Gettysburg and the Arizona are now."

Another recommendation called for the WTC to be rebuilt in "partnership with the American people." The memo calls for a "national crusade" that allows us to rebuild this symbol of American pride and determination where the people of this nation are equal partners in this effort."

Rubenstein says a Silverstein Properties exec erred when he contacted the Port Authority, and called the attack a single occurrence. That executive, Robert Strachan, had no part in the negotiations, according to Rubenstein, and was distraught after losing four co-workers in the attack.

The U.S. District Court in Manhattan will ultimately decide how much Silverstein is entitled to.

OGILVY PR DRIVES INTO AUTO RACING

Ogilvy PR Worldwide is setting up a racing car unit to line up sponsorships, handle media relations and arrange track-side events for its clients.

Len Batycki, who was with Richard Childress Racing and the North Carolina Motor Speedway, will head the unit from Charlotte. He had handled marketing for RCR and the Goodwrench Chevrolet that was driven by seven-time Winston Cup champ Dale Earnhardt. Rich Bartecki, Ogilvy's senior VP in Chicago, is group director of the motorsports unit.

Ogilvy has worked with clients involved in CART and the National Hot Rod Assn.

Interpublic is currently seeking to unload its Octagon Motorsports unit.

QORVIS GETS OUT SAUDI REFORM MESSAGE

Saudi Arabia is committed to building a "world class" educational system, and is determined to root out "offensive language" in its school textbooks and curriculum, according a statement distributed from Qorvis Communications, the Kingdom's $200K a-month PR firm.

The statement follows a Feb. 2 Washington Post story contrasting the modernization drive launched by neighboring Qatar to the conservative religious-based Saudi school system. Qatar has hired the Rand Corp. to develop a public school curriculum that stresses English over Islam.

The Saudi Government, according to a statement, following the 9/11 attacks, conducted an audit of its textbooks and found that about five percent of their content contained offensive language. That material is said to have been eliminated.

Targets Prisons

Saudi Arabia is spreading its Wahhabism belief throughout the New York State prison system, according to the Feb. 4 front page of the Wall Street Journal. It reports that some Muslim chaplains celebrated the Sept. 11 attacks as a just punishment for the wicked, and admire Osama bin Laden as a foot soldier of Allah.

The Saudi Embassy as part of its "prison outreach" program pays for chaplains to study in Saudi Arabia. Its Islamic Affairs Dept. also sends Korans, religious pamphlets and books to jails, according to Nail Al-Jubeir, an Embassy staffer.

M&H GETS MYSTIC TRAVEL BIZ

The Mystic Coast & Country Travel Industry Assn., in Mystic, Conn., has named Mintz & Hoke, Avon, Conn., to handle its account.

M&H will add some advertising and interactive work to the account, which had previously focused exclusively on PR while it was handled by M. Silver Assocs., New York.

MSA, and North Castle Partners in Stamford, Conn., as well as Cronin and Co. in Glastonbury, Conn., had pitched the account, which bills in the mid-six figure range.

ARTICULATE SPEAKS FOR ROSS SYSTEMS

Ross Systems has awarded Articulate Communications its PR account, Laura Grimmer, CEO of the New York PR firm, told this NL. Her firm is responsible for corporate and product messaging, customer outreach, media relations and editorial strategy.

Grimmer says her past work with Carey Kauffman, who recently joined Ross as marketing director, was one factor in landing the business. Grimmer used to represent Kauffman's former firm, Rely Software. Grimmer also said Ross executives were aware of her work for Prescient Systems, a supplier to Ross, which markets enterprise software to manufacturers in the food, life sciences, chemicals and metals industries.

EX-BURGLAR USES PR FIRM TO GET PUBLICITY

TransMedia Group used a press release to get a client, who is a former jewel thief, an appearance on "The Oprah Winfrey Show."

The Boca Raton, Fla.-based PR firm, headed by Tom Madden, a former VP at NBC, handles PR for Walter Shaw, who is believed to be the world's most notorious jewel thief.

The firm agreed to promote a DVD that Shaw had produced entitled: "It Took a Thief to Stop A Thief." On the DVD, Shaw tells homeowners how they can protect themselves from burglars like he was once.

Madden said he saw an opportunity to catch the media's attention while watching Don Imus one morning on TV when NBC reporter Andrea Mitchell, who is married to Federal Reserve chairman Alan Greenspan, called in and was lamenting about the break-in and loss of so much jewelry.

Madden immediately drafted a news release connecting Shaw to the crime, and had the release distributed by PR Newswire on Jan. 23. The first paragraph began: "Walter Shaw, the reformed master jewel thief turned film and DVD producer says the recent burglary and theft of jewelry from Federal Reserve Chairman Alan Greenspan's home could have been prevented "if the chairman had consulted me or watched my DVD..."

When one of Oprah's producers saw the story on the wires, she called Carolina Lammersdorf at TransMedia. After discussions, pre-interviews and overnight shipments of materials, a crew from Oprah flew down to South Florida and videotaped Shaw at several home where the ex-burg;ar showed how easily they could be broken into and how they could be made safer.

Afterward, Shaw, accommpanied by Lammersdorf, flew to Chicago for his appearance on the show.

PLACEMENT TIPS

Newsday has launched a separate website devoted to news and information about the five boroughs of New York.

The site, www.nynewsday.com, will concentrate on covering news events in the city and development in entertainment, business, politics, and other areas of interest.

Among the new site's features are audio and video reports from entertainment events and community information about neighborhoods.

The site "is meant to give local breaking news with a New York voice," said Tony Wills, general manager of newsday.com.

Adweek is extending its coverage of PR, according to Alicia Griswold, a reporter for Adweek's Southeast edition.

She tells iCD Media's "Media Pro" that "creative uses of media and PR" are currently hot topics. She said Adweek also is doing "a lot more viral marketing stories, PR-related wins and campaigns."

She pointed out Adweek began publishing a single national print edition on Feb. 3 instead of separate editions. She said each of the magazine's six regions will have dedicated websites withing Adweek's webstite (www.adweek.com).

PR Fuel, a column written by Ben Silverman and published by eReleases.com, advises publicists to prepare for war.

"While you make your pitches this week, ask journalists what happens if war breaks out," writes Silverman. "Will they still take pitches? Will they concentrate on war issues or will business go on as before?"

The Boston Globe's editorial page editor Renee Loth has instituted a new letters to the editor policy to make sure the letters are not "canned PR material."

The new policy will confirm original authorship on nay letter that could be part of an organized campaign.

She suggests adding regular online searches of key phrases in any suspect letter, to quickly identify alread-published duplicates.

The new policy is the result of a study by the Globe's ombudswoman Christine Chinlund, who found the Republican National Committee had authored a letter that ran in the Globe on Jan. 12 and was signed by Stephanie Johnson. It praised President Busch for "demonstrating genuine leadership" on the economy, and detailed his tax relief plan.

Chinlund found about 45 identical, or nearly identical, letters have arrived in the Globe's electronic mailbox, and multiple copies were also sent to papers nationwide.

She called it the "latest example of what some call 'astroturf' (as in, fake grass roots), and it has generated a buzz online and in journalism circles."

MEDIA BRIEFS

Barbara Peck, executive editor of Travel + Leisure Magazine, in New York, will speak at the annual convention of the British Columbia Tourism Industry Conference, scheduled for Feb. 19-21 in Kamloops.

Speakers at this year's conference will address ways to stimulate renewed growth in the province's $9.2 billion tourism industry.

Jack Myers, a media analyst and editor-in-chief of the industry newsletter Jack Myers Report, believes a U.S.-led conflict in Iraq will have "little to no effect" on ad expenditures if it is a short conflict and no surge in terror attacks.

Companies like American Express have imposed a war clause to let it out of its media contracts if a war is declared, according to Ad Age.

A Swedish appeals court has killed a 24-year ban on alcohol advertising.

The Market Court, Sweden's highest court of appeal for consumer issues, upheld a lower court decision in favor of Gourmet magazine, which has published alcohol ads despite the ban since 1996.

(Media news continued on next page)

ENTERTAINMENT PRODUCERS WELCOME PR PITCHES

Four editors and producers for national entertainment TV shows took turns at the Publicity Club of N.Y.'s Jan. 29 luncheon to make their case on why PR pros should pitch them first.

They were: Laura Saltman, entertainment producer, "Today Show" on NBC; Marie Hickey, N.Y. bureau chief for "Extra," produced by Time Telepictures; Chris Fahey, N.Y. bureau chief, Access Hollywood, a syndicated program, and Nando Velasquez, who is N.Y. assignment editor for E! News Live.

Saltman said what sets Today apart is the entertainment segment is allotted seven minutes for an interview while interviews on the other programs tend to be two minutes.

"So it's a great place to come if you really want to get your story out there," Saltman told more than 125 publicists at the sold-out meeting.

Another big difference is Tom Touchet, who is Today's new executive producer, wants to personalize the interviews.

"Instead of just sitting across from somebody at a junket or one-on-one, we want to get into their houses, into their closets, meet their families, go to their hometowns, learn about whatever they're passionate about, their hobbies, if they have a charity that their sister is involved with because she's ill, anything that's different and that you're not gonna see on every show," said Saltman, who noted her segment airs on Thursdays at 8:30 a.m. (ET), which she said is one of the best time slots.

Saltman said e-mail is the best way to pitch her. "My voicemail is constantly full and I have trouble returning phone calls, which is a bad reputation I have in this business. Please e-mail me any pictures that you have."

Get the Connection

Hickey said Extra has evolved into an entertainment news magazine and "everything basically has a celebrity angle to it.

"So, if you're pitching stories and it's something that might not be about a movie but if there is a celebrity connection, it's something that our show would be interested in," said Hickey.

Hickey's bureau has one fulltime correspondent, Barry Nolan, and two regular contributors--Tyson Beckford, who usually covers the fashion/celebrity beat, and Jumana Kidd, who is the wife of Jason Kidd of the New Jersey Nets.

Hickey said it is helpful to "get our pitches on e-mail, in the body of an e-mail rather than have an attachment because so much of the material that we have has to get forwarded out to the west coast or to run it by somebody else."

"If it's breaking news, something for that day obviously call us," said Hickey. "But if its's not time sensitive and it can wait till the afternoon, for a phone call, that's helpful."

Hickey said the N.Y. bureau feeds time senstive information at 4 p.m. (ET), which she described as "our kind of drop-dead deadline for getting material to Los Angeles."

"So for someone to call and say, `Y'know, I can get such-and-such for you at 2 p.m. or 3,' that's no gonna work on our timetable," said Hickey. When providing information in a press release, Hickey said it is "always helpful if they're truthful."

AH Wants Access

Fahey said "We prefer to be first, we don't want to follow other shows, necessarily, with Extra coming on right before us at 7 p.m. is so many markets."

Fahey said her show, which is targeted at the 18-49 age group, is "always looking for something new and fresh. We are the Britney Spears show."

Fahey said e-mail is best way to pitch information to her because if "you get 200 phones calls a day then it's hard to return all of them."

"Don't tell me you're coming exclusively to us when I know it's because Entertainment Tonight passed or because you've got Extra on the other line. I hate that. Just be honest, say, `We're going wide,' or `We're coming to you specifically.'"

Fahey's bureau also must "feed out at 4 p.m."

E! News Is Live

Velasquez said E! News Live, which now airs from 7-8 p.m. on the east coast, has "a lot of live guests, so that's a little bit of an extra push, if you have any special guests or anybody you want to get in."

He loves it when a publicist says, `Oh I thought of you first, you're getting the exclusive."

Guests are booked for five-minute interviews in their N.Y. studio. The interviews are handled by one of the show's three hosts--Todd Newton, Giuliana DiPanda or Linda Grasso.

"We really enjoy all these celebrity angles," said Velasquez, who is especially looking for "goofy stuff."

He appreciates e-mailed pitches because it's easier to forward than fax.

While the show's deadline is about 3 p.m. (ET), "we can do breaking news" for a couple of hours after the deadline, he said.

PEOPLE

Thomas Jolly, 47, who is currently assistant news editor, was named to replace Neil Amdur as sports editor of The New York Times.

Amdur, 62, was appointed senior editor for staffing/national recruiting last August.

Michael LaFavore, formerly editor of Men's Health, which he helped start, was named editor-in-chief of TV Guide.

Mark Trahant, previously CEO for the Robert Maynard Institute for Journalism Education in Oakland, Calif., has joined The Seattle Post-Intelligencer as editorial page editor.

Jan Leach, 47, has resigned as editor of The Akron Beacon Journal.

News item: American Society of Assn. Executives cuts 30 staffers, says that the rest will work in "teams" and be "inter-dependent." The staff of 105 is down from its peak of 155 three years ago.

We interpret "teams" and "inter-dependent" to mean staffers will no longer be in sharply defined slots.

Employees who have sharply defined duties tend to fill the day with those duties and reject any additional tasks.

However, plenty of things can happen to an organization that don't fit into molds and require staffers to go outside normal duties.

Though the ASAE lost $1 million in the year to June 30, 2002, it appears to be financially healthy.

It has expenses of about $21 million a year but had nearly $7 million in cash and investments as of last June 30 and another $10.7M representing a 55% interest in its 12-story building on I Street in Washington, D.C., a few blocks from the Capitol.

ASAE occupies the top two floors. The investment is thought to be worth much more than $10.7M.

ASAE's biggest liability is $6.2 million in deferred revenues, mostly representing services owed to members who pay dues a year in advance. Almost all associations acknowledge such a liability.

ASAE staffers will focus on seven programs that are highly valued by members and that produce $$. Activities are to be matched with expenses.

The current recession has something to do with the staff cuts but it's not the deciding factor, according to a spokesperson. Advertising has declined and dues and conference revenues are off slightly.

We can't help but wonder how the ASAE approach would impact the staff of PRSA, which has remained at 48 full time positions throughout the recession. About 44% of PRSA's gross goes to pay salaries, far above the 29% average for groups its size.

ASAE is about twice the size of PRSA in terms of revenues and has 25,000 individual members, about 6,000 more than PRSA. It has built up a treasury of $7 million and owns more than half of its building.

ASAE decided a year ago that its "world has changed and ASAE must do so as well."

The much-heralded Sarbanes-Oxley Act of 2002, designed to restore confidence in Wall Street, was panned Feb. 1 by The Economist under the headline "Wishy-washy." The Act is "hardly the puritanical regime foreseen by the evangelistic act, which was passed amid post-Enron fire and brimstone last July," said the magazine.

William Donaldson, expected to be confirmed as the successor to SEC chief Harvey Pitt, was knocked by New York Post columnist John Crudele Feb. 4. Crudele said Donaldson knew or should have known about trading infractions at the New York Stock Exchange when he was its chairman. Ten traders were indicted in 1998 for a scheme that netted $11 million in improper gains. The NYSE then cracked down on the abuses.

Omnicom last week had to pay nearly $25 million in cash to keep holders of its $850 million in "zero coupon bonds" from demanding their money back. The deal wasn't supposed to turn out this way. OMC's stock was supposed to soar to $165 or so, making it unnecessary for OMC to pay any interest and making the bondholders happy. Merrill Lynch, which underwrote the complicated deal, got 3-4 times the normal commission for it. OMC borrowed a lot of money to buy ad agencies, PR firms and other properties that have not lived up to expectations.

Interpublic was also in the news as it lost the U.S. Coke Classic account to WPP Group and inked new credit agreements. Fred Searby of J.P. Morgan downgraded the stock to underweight from neutral and said there was an "excessive risk" of further declines in the stock price (now around $11 after being $57 two years ago).

WPP Group, owner of Hill & Knowlton and Burson-Marsteller, will publish its 2002 figures Feb. 24. We hope they're not as confusing as last year's 26-page report which failed to highlight the most meaningful figure-per share earnings.

PR Society of America still won't reveal the name of the person who moved to table the motion to decouple Assembly membership from accreditation Nov. 17. The tabling motion was improper, say parliamentarians, because a "mover" must be identified as well as the seconder.

Current PRSA leadership should move to correct this gross and undemocratic injustice.

A New York Times editor appeared to be backing away from the harsh 53-page ethics code that it has just socked its staff with. William Schmidt, associate M.E. (to whom any "romantic involvement with a news source" must be reported), told Buffalo News columnist Anthony Violanti Jan. 31 that, "In most cases, all we're doing is getting people to disclose these things because we need to know."

Schmidt feels the NYT is a "unique institution and we live in the world's largest glass house. Our integrity is everything. " He also said, "These are not the Ten Commandments" and "Nobody's going to read it. I see it as a kind of reference book."

Krystyna Stachowiak, fiancee of NYT executive editor Howell Raines, is SVP at Coltrin & Assocs., New York PR firm founded in 1982 by Stephen Coltrin, who was formerly chairman of American Communications, "an owner of media properties." He received a B.S. from Brigham Young University and has served as a spokesman for the National Pharmaceutical Council and Pharmaceutical Mfrs. Assn. Coltrin's website lists nine executives and seven branch offices including London and Singapore. An account list is not provided.
--Jack O'Dwyer