YAHOO! SHUFFLES PR FIRMS.
Yahoo! has reassigned PR accounts for several business units, including HotJobs, previously handled by Fleishman-Hillard.

HotJobs, the employment website acquired by Yahoo! in 2003, has named Euro RSCG Magnet to handle its PR account after a review that included incumbent F-H, which began work on that business amid the acquisition in early ‘03.

Lauren Meller, PR manager for HotJobs, told O'Dwyer's the company wanted an agency with "deep human capital expertise as well as strong consumer and business experience."

Meanwhile, Hill & Knowlton has taken over responsibility for Yahoo!'s mail, messenger, and photo accounts, according to Joe Paluska, director of H&K's technology practice. Westhill Partners had the account to handle those three units.

Helena Maus, director of corporate comms. for Yahoo!, told O'Dwyer's F-H remains the company's main corporate PR firm and the two "continue to have a great relationship."

She said as Yahoo! has implemented a more vertical structure it has recently brought on Bender/Helper Impact to handle its entertainment and gaming units and Alan Taylor Communications to bolster PR for its sports holdings.

JOHNSON TAKES REINS AT BK.
Edna Johnson, former VP of PR for The CNN News Group networks, has been named senior VP of global communications for Miami-based Burger King Corp., the second exec to take that post since August.

Burger King, which has been led by nine CEOs in 15 years, tapped corporate turnaround exec Steven DeSutter for the senior VP post in August. DeSutter is now EVP and president of BK's Europe, Middle East, and Africa region.

Johnson, who reports to BK CEO Greg Brenneman, headed all PR efforts for CNN, Headline News and CNN.com, along with internal communications.

Tim Fitzpatrick, director of corporate and marketing communications at chemical maker BASF Corp., has moved on to printing and imaging giant Lexmark Int l as VP of corporate communications.

He takes over for Roger Rydell, former VP/CC for The Timberland Co. who departs Lexmark after seven years.

EX-F-H EXEC INDICTED.
One of three PR executives recently dismissed by Fleishman-Hillard has been indicted by a federal grand jury on 11 felony counts of wire fraud connected with the firm's alleged overbilling of the Los Angeles Dept. of Water and Power.

John Stodder, the 49-year-old former partner and head of F-H's L.A. public affairs unit since May 2002, faces up to 20 years in prison per count.

The indictment claims Stodder was responsible for nearly $250K in fraudulent bills submitted to the DWP, and alleges other clients including the Port of Los Angeles, Gehry Partners LLP and the World Wide Church of God were overbilled as well.

Stodder and others reviewed bills submitted to see if they met billing forecasts for the month, according to the U.S. Attorney's office. If the bills were less than the forecast, Stodder and other un-indicted "co-schemers" increased and caused others to increase billings by altering the worksheets to reflect more hours than were actually worked, the office said, adding the increases were referred to as "write-ups."

Stodder appeared in court last week and posted $10K bond.

The indictment was handed down after an investigation by the FBI, U.S. Dept. of Transportation and the L.A. County District Attorney's Office.

F-H cut ties with Stodder, former L.A. office head Doug Dowie and seven-year staffer Steve Getzug earlier this month.

CONGRESS PROBES
KETCHUM PACT.
Sen. Tom Harkin (D-Iowa) and Arlen Specter (R-Penn.) have written a letter to Education Secretary Rod Paige asking for a review of the Dept. of Education's contract with Ketchum and the payment made to commentator Armstrong Williams to plug the "No Left Child Behind Act."

Paige, on Jan. 13, promised to address the "perceptions and allegations of ethical lapses" surrounding the affair. (story contines on page seven)

WAL-MART DRAWS
LINE IN THE SAND.
Wal-Mart CEO Lee Scott, with the help of Hill & Knowlton, has taken to the airwaves and paid media, saying it's time to give the "unfiltered truth" and correct "urban legends" about the country's largest retailer.

Full-page ads in scores of newspapers across the country have been tailored to regional audiences as part of a PR blitz to highlight beneficial facts about the company like sales tax revenue, contributions to local causes, competitive wages and health benefits. A website, walmartfacts.com, has also been unveiled.

"For too long, others have had free rein to say things about our company that just aren t true," Scott said in a statement distributed by H&K. "Our associates are tired of it and we ve decided it's time to draw our own line in the sand."

Scott said, in a round of media interviews in New York, that he is criticizing "false allegations" and has taken the day to announce the company will "actively correct the record."

Fleishman-Hillard has advised the Arkansas-based retailer on corporate reputation issues.

OIL CO. LEAVES
LOBBYING GROUP.
ConocoPhillips has withdrawn its membership from Arctic Power, the non-profit lobbying group dedicated to opening up the coastal plan of Alaska's National Wildlife Refuge to oil drilling, in a move that is being applauded by environmental groups.

The U.S. Public Interest Research Group and Green Century Capital Management issued a press release on Jan. 5 praising CP's exit from the group.

CP has acknowledged its withdrawal from AP, but says it did so in `03 when it decided not to renew its membership. It never publicized that move.

An AP source, however, feels the greenies are using CP's exit in a bid to influence the upcoming Congressional debate on drilling in Alaska.

Anchorage-based AP is bullish on the prospects for Congressional support for drilling. It issued a release following the November elections, saying that the political landscape is "looking better than ever" as Republicans solidified their hold on Capitol Hill and defeated ANWR drilling opponent Tom Daschle.

HARBOUR FOUNDER
EXITS FOR GLOVER.
Joel Johnson, who advised the Kerry for President campaign, has left his managing director slot at The Harbour Group to join Glover Park Group. He founded THG in `01.

GPG is the home of Joe Lockhart, spokesperson for former President Bill Clinton and another Kerry counselor.

Johnson worked in the Clinton White House as senior adviser for policy and comms., was an aide to former South Dakota Sen. Tom Daschle, and chief of staff to ex-Ohio Sen. Howard Metzenbaum.

Replacing Johnson at THG are managing directors Thurgood Marshall, Jr. and Suzanne Spaulding.

APPLE SEEKS TO PLUG LEAKS.
Apple Computer is taking flak for the lawsuit it filed Jan. 4 in Santa Clara Superior Court against ThinkSecret.com, which published a correct report that the company would introduce a sub-$500 iMac at the MacWorld Expo in San Francisco last week.

The lawsuit has drawn the ire of Dan Gillmor, Silicon Valley's top blogger, who trashes Apple for attempting to stifle free speech.

Apple wants the name of the "leaker" who tipped off the rumor site, and an injunction to prevent the further release of trade secrets. Apple claims the ThinkSecret posting will reduce the "buzz" around its products. It feels "unauthorized disclosures diminish the interest of both the mainstream and trade media in the launch of a new product."

Gillmor, who stepped down Dec. 31 as technology columnist for the San Jose Mercury News to focus on his own blog, blasted Apple as arrogant. "If the party leaking information to ThinkSecret had sent it, say, to the San Jose Mercury News or New York Times<D>, and had those publications run the news, Apple wouldn t be suing them," he wrote. "Both have deep enough pockets to defend themselves."

Apple claims it is not interested in trampling on the First Amendment. The company, however, notes that "constitutional protected freedoms do not extend to defendants unlawful practice of misappropriating and disseminating trade secrets acquired through the deliberate violation of known duties of confidentiality."

The Wall Street Journal, on Jan. 14, ran the story about Apple's suit against ThinkSecret, which is run by a 19-year-old Harvard University student.

'ENCYCLOPEDIA OF PR' DEBUTS.
A team of 146 authors led by faculty at the University of Houston, has created the "Encyclopedia of Public Relations."

The two-volume set is edited by Robert Heath, a veteran PR professor at UH.

The work from Sage Publications examines the evolution of the PR field, with historical examples, key events, changing practices and the significant figures who developed and expanded the profession.

"PR has been referred to as buzz, spin, publicity and even free advertising," Heath said. "But it is so much more than that. From spokespeople to newsmakers, PR people have increasingly become an integral component in helping the news media report and translate world events, research breakthroughs and organization messages to the public, giving them human interest and meaning."

Among contributors are Tom Hoog, chairman of Hill & Knowlton; Betsy Plank, who created the PR Student Society of America; Dick Martin, retired executive VP at AT&T; Wes Pedersen, director of communication and PR for the Public Affairs Council, and Barbara Langham, a Houston-based PR pro for nearly 30 years, who is president/CEO of BDL PR. Info is on Sage's website.

ELECTRONICS SHOW
GENERATES NEWS.
More than 3,000 press releases were sent out at this year's International Consumer Electronics Show, according to Atlanta-based Calysto Communications, which estimates that maybe 15% of these were actually picked up and turned into an editorial piece.

CES, which started with Bill Gates keynote address that was marred by a technical mishap, featured more than 50,000 products from some 2,300 exhibitors; 5,000 media people, and more than 140,000 attendees.

"While known historically as a tech show for the consumer, telecom has made its way into almost every facet—from the networked home to all-in-one, super-connected mobile devices," the PR firm said in its Jan. 11 newsletter.

"What was most interesting is the fight forcontrol of the living room. Beyond the PC, set-top boxes are making huge strides and deals," Calysto said.

MEDIA BRIEFS
Vogue is sending a team to cover the shows and markets at Milan men's fashion week in preparation for Men's Vogue, which is scheduled to make its debut this Sept. Jay Fielden, Vogue's arts editor, will edit the new magazine.

GeezerJock, a sports and fitness publication for people 40 and over who are serious athletes, will debut as a quarterly in March. The Chicago-based magazine also has a companion website at www.geezerjock.com.

Advancing Suicide Prevention will be published six times a year by PDV Communications, a Sheboygan, Wisc.-based magazine publisher in the mental health and social services arena. Dennis Pazur, who is senior editor of the new magazine, can be reached at 920/457-4033.

The American Diabetes Assn. is starting a controlled circulation tabloid, DOC News, that will be sent to 100,000 primary care physians and nurse practitioners who manage the care of those with and at risk for diabetes. Irl Hirsch, M.D., is editor-in-chief. ADA is based in Alexandria, Va.

Network Communications in Lawrenceville, Ga., which publishes nine regionally based real estate publications, including The Real Estate Book and Apartment Finder, has been sold to Citigroup Venture Capital Equity Ptrs. for about $380 million.

The Village Voice, a weekly publication, has moved to a daily format on its website, villagevoice -.com, adding 12,000 entertainment listings in 21 categories and expanding the real estate and classified section.

mediabistro.com has launched "Freelance Marketplace," a database that lets freelance media pros advertise their work. To date, more than 500 professionals have placed ads on the website, which editors can search for free, while freelancers pay an annual or monthly fee to post a listing.

BLOGS ARE SEEN
AS `PRIME TIME MEDIA.'
Andy Lark, who just stepped down as Sun Microsystems VP of global communications, predicts blogs will become a "prime time communications vehicle in 2005, and community building will become the new mantra for communications professionals."

According to Lark, audiences will come to be thought of in new terms resulting in 10-20% of big budgets shifting to viral campaigns and the blogosphere.

"Communications will recognize the effectiveness of cascading information from informed influencers to the mass market," said Lark. "Blogging will become the new must-have ingredient in communications planning and dealing with blog-related issues will take up an increasing portion of corporate communicators time."

Lark also predicts that communicators will need to learn how to use, manage and monitor news aggregators who are pulling together content.

Additionally, he suggests that more corporations will create official blogs, that company blogs will begin to aggregate to the corporate news page, and that sites will begin to feature streaming audio and "podcasting" as a news distribution tool.

"We have entered the era of Particapatory Communications," Lark said on his blog, andylark.blogs- .com/andylark/. "The ability of the PR elite to control communications is on the decline. Communications power has begun to shift back to communities and will only accelerate in 2005."

Lark will give the keynote address at the New Communications Forum, which will be held at the Silverado Resort in Napa, Calif. on Jan. 26 and 27.

PEOPLE
Klara Glowczewska, previously executive editor of Conde Nast Traveler, was promoted to editor, replacing Tom Wallace, who was named editorial director of Conde Nast's 17 publications.

Thom Calandra, a former columnist for CBS MarketWatch.com and one of its founders, has agreed to pay $540,000 to settle an SEC civil fraud charges of using his newsletter to write favorable profiles of small cap companies and then selling their shares after they went up in price.

Sarah Jewler, 56, managing editor of New York magazine, died Jan. 5. Her husband, Jay Kennedy, who is editor-in-chief of the King Features Syndicate, said his wife had suffered from a rare blood disorder for many years.

(Media news continued on next page)

EDITORS PICK TOP FOOD STORIES.
The death of Julia Child, the award-winning cook who started the TV chef trend back in the ‘60s, topped the list of food-related news stories in 2004, according to a survey of 1,300 food editors by Hunter PR in New York.

Obesity, which was ranked No. 1 in last year's survey, slipped to No. 3 behind the low carb trend, which held the No. 2 spot for a second year in a row.

The PR firm pointed out that obesity issues this year focused around who is most to blame for burgeoning waistlines, can the trend be reversed, and how can consumers prevent children from becoming the next generation of fat Americans.
Closely related, the buzz surrounding the documentary film, "Super Size Me," took the No. 4 spot.

Morgan Spulock's movie showcased his experience of eating only McDonald's food for one month and the damage that high fat diets can do to the body.
In doing so, he turned the spotlight on food marketing practices, in general, the agency said.
Revisiting the famed food pyramid claimed the No. 5 spot. The forthcoming new guidelines (which may no longer be in the shape of a pyramid) will most likely advise consumers to eat more fruits and vegetables, whole grains, and non-fat or low-fat milk products, while limiting carbohydrates and salt, Hunter said.

Mad Cow Disease, which reared its head in the U.S. for the first time, captured the No. 6 spot.

The No. 7 spot was occupied by the debate over whether obesity will become the leading cause of preventable death in the U.S. In March, the Journal of American Medical Assn . published a study from the Centers for Disease Control and Prevention that claimed more Americans will soon be dying from obesity than from smoking.

The widely publicized finding was contradicted on Nov. 23 by The Wall Street Journal, which reported major statistical errors in the CDC's report.

Produce Shortage Is No. 8

The produce shortage, caused by Florida's hurricane season, was No. 8 on the list of top stories.

As contrast to the survey's No. 2 result, the No. 9 story of the year is the decline in popularity of the Atkins diet during the second half of the year.

While most experts say Atkins will be a force to reckon with for years to come, they believe the craze has reached its zenith and will decline slowly over time, according to Hunter PR.

"Cheeseburger Bill" rounded out the list at No. 10.
Passed by the U.S. House of Representatives in March, the bill prohibits obesity lawsuits against the food industry, protecting producers and sellers of food and non-alcoholic drinks.

Nearly two-thirds of the food editors believe individual consumers are most responsible for the nation's obesity problems, not the food manufacturers or providers.

ELSEN REJOINS N.Y. TIMES.
Jon Elsen, the business editor at The New York Post, has rejoined The New York Times as media and marketing editor, overseeing media, advertising, retailing and consumer products coverage for the business section.

Elsen joined the Post as its media and telecommunications reporter in 1997, became deputy business editor in May 1999 and business editor in Jan. 2000.

Before that he was editor of Merger & Acquisitions Report, a newsletter of Investment Dealer's Digest.

He also was a project editor for TimesFax, a condensed version of The New York Times faxed overseas, and a copy editor at various Times departments from Jan. 1991 to Jan. 1995.

Elsen succeeds Jacques Steinberg, who earlier was assigned to cover the entertainment beat for the Times.

MEDIA BRIEFS
Over 266,000 articles dating back to Time's first issue in March 1923 are now available free to subscribers of the magazine's website (www.timearchive.com).

USA Today has expanded its book coverage from one to two days a week (Tuesdays and Thursdays) under book editor Carol Memmott, who was given this year's "AAP Honors" award by the Association of American Publishers.

Memmott's strategy is to keep reviews short, in favor of trend stories and publishing stories, and to be newsy.

Sporting WomanQuarterly, based in Wellington, Fla., will make its newsstand debut this Spring with an initial rate base of 400,000.

The quarterly will target the well-heeled sports socialite or enthusiast 25-49+ years old, who goes to sporting events and related charity functions.

The magazine will feature seasonal highlights of women's luxury sporting events, including polo and equestrian events, golf, tennis, and premium international sports.

It will also have athlete interviews, information on sporting trends, fashion, sporting goods, travel information, and upcoming events. [email protected].

Thomson Media in New York will publish a new quarterly business intelligence magazine, Business Intelligence Review, in April.

The magazine will be designed as a single source of information for non-technical managers engaged in business intelligence, focusing on the use of technology to make organizations more effective and responsive.

Jim Ericson, previously an editorial director and senior news editor at Line56 Media and managing editor at MSNBC, was hired as editor-in-chief of BIR.

Brian Cronin is handling PR inquiries about BIR at 212/803-8358.

Forbes.com plans to increase significantly its editorial capabilities in 2005, including an expansion of its video output and the start of several new content areas and services.

Dan Bigman, 34, previously with the NYTimes. com, where he spent six years, most recently as associate editor, and previously as business editor and producer, was hired as managing editor to oversee the day-to-day editorial operations of the site.

Miami Herald publisher Alberto Ibarguen believes daily newspapers will eventually come in two formats.

One edition will consist of in-depth articles for for older, more sophisticated readers, and costing about $2.00.

The other will be a tabloid-size free paper for those who want news in a lighter vein.

"My absolute belief is that the future of communicating information will get done electronically," said Ibarguen, who spokes at a recent media conference in New York.

Herald Media in Boston, which publishes The Boston Herald, has acquired Women's Business Boston from Vicki Donlan, who founded the 25,000 controlled circulation monthly paper, which is devoted to professional women in the business world, in 1998. She will remain as publisher.

The Armstrong Williams/Ketchum mess (page one) may be the Three Mile Island of PR.

In that 1979 PR disaster, the mishandling of a puff of radiation into the air from a stack in Pennsylvania ended the expansion of nuclear power in the U.S.

No new nuclear plant was ordered after that.

Congress and the FCC are probing Williams/Ketchum and even President Bush has declared there must be a "bright line" between journalism and propaganda. All government PR contracts are being examined and who knows where that will lead?

The feds are already leery of anything with "PR" on it, having passed a law in 1917 that forbids the use of federal funds for it ("PA" is used instead).

PR is also in hot water on the West Coast with the indictment of a former Fleishman-Hillard executive on 11 felony counts of wire fraud. F-H allegedly overbilled the L.A. Dept. of Water & Power.

Ketchum and F-H are Omnicom firms but there are differences in how each is handling its crisis. F-H execs John Graham and Richard Kline have been available for interviews and the firm has put out extensive materials on its situation. But Ketchum's Ray Kotcher has regularly ducked this NL on this and other matters. Predecessor Dave Drobis was highly visible, heading three major PR organizations. Drobis, who retired at 62, was a strong believer in using ads to support PR goals.

Neither Kotcher, PRSA nor the Council of PR Firms puts any blame on Kotcher or Ketchum for the "Minority Outreach Campaign" contract with Williams that specified he was to comment on NCLB during his programs. He was also to "utilize his long term relationship with America's Black Forum, where he appears as a guest commentator, to encourage the producers to periodically address the NCLB..." Williams is touted in the contract as an influential commentator with a potential audience of 12 million ("39% black; 21% Latino, 40% white").

PRSA president Judith Phair, in two statements on this subject, couldn t bring herself to mention "Ketchum" in either one, referring instead to "a PR agency." If Kotcher and Ketchum's Lorraine Thelian are found to have had a role in non-disclosure they could be expelled from PRSA. A member "sanctioned by a government agency" may be "expelled," say the bylaws.

Since the Dept. of Education/Ketchum program focused on minorities, we should hear from PRSA board members Cheryl Procter-Rogers, an African-American, and Rosanna Fiske, a Latino. If they are muzzled on this subject, it will say a lot about PRSA and the practice of PR in the U.S.

Kotcher, showing favoritism to one of PR's three weekly publications, provided a statement on Williams/Ketchum to the PR Week website Jan. 13, bypassing this NL and PR News. He even praised PRW as "a great prospective forum" for discussing government PR contracts.

Do PR pros normally recommend one particular trade publication over others? We couldn t find PRW's website in the top 120 for "PR news" in Google while odwyerpr.com ranked third after PR Newswire and Topix.net's PR section.

Possibly influencing Phair's reticence to mention "Ketchum" is the fact that the firm is the crown jewel of PRSA, holding far more of its highly touted Silver Anvils than any other firm (89 as of 2004 including 62 added in the last 11 years). Only one other firm (F-H) has more than 10.

While PRSA has been supporting Ketchum, the reverse is not true. Ketchum cut its PRSA members from 79 in 2001 to 48 in 2003 and 22 in 2004.

Ketchum was for many years the biggest advertiser in PRSA publications, taking 12 consecutive right hand pages in the December 1987 PR Journal.

Ketchum has won so many Anvils because the contest is set up to reward the kind of PR programs Ketchum does. Rules require Anvil judges to give up to ten points in each of four categories–research, strategy, execution and post-research.

An entry of 100 pages should have 25 pages on each category, Ketchum creative director Judy Rich once advised. A PR firm that brought in baskets of placements but didn t do lots of research and planning could not win an Anvil. Media coverage is belittled. Advice to contestants on the PRSA website says, "Clips only = loser," "Don t expect clips to win," and "More Research, Fewer Clips."

Ketchum is a big supporter of PR research. Its knowledge of the detailed rules for Anvil submission also helped it. In a dust-up that rocked the Society in 1992, it was revealed that hundreds of entries in previous years had been rejected (33 in 1992) on nit-picking grounds such as binders being more than three inches on the outside (the standard "three-inch" binder is 3.5" on the outside).
PRSA pocketed entry fees of $150 and more for each entry without telling the contestants why the entries were rejected.

Ketchum, acquired by OMC in 1996, was $13 million in debt at the time and was told its loans were being cancelled. The firm had paid $11.4M for stock of departing execs in 1993-95. Book value of Ketchum stock was -$1.42 per share as of Dec. 31, 1995. Ketchum had net fees of $185M in 2001, its last public financial report.         –Jack O'Dwyer