The eight page weekly is the only PR newsletter on LEXIS/NEXIS.
Edition, April 20, 2005, Page 1
KETCHUM GIVES WENDYS
Ketchum is helping
Wendys handle its finger in the chili bowl
crisis, Sean Fitzgerald, managing director of the Omnicom
unit, told ODwyers.
President Tom Mueller on April 15 doubled the award to $100K
to anybody who can identify how a finger found itself in
a bowl of chili on March 25 in a Wendys restaurant
in San Jose. He conceded that the negative publicity
has hit Wendys San Francisco Bay area operations especially
hard. Theyve done nothing wrong, yet they are
paying a severe price with sales down significantly in the
area. Our franchisees have had to lay off some employees
and reduce workers hours, he said.
said there is no credible evidence that Wendys
is the source of the foreign object. He said police
have interviewed Wendys workers in the San Jose unit,
and none of them has a hand injury. Employees also
passed lie detector tests.
said the incident has battered Wendys overall image.
Our brand reputation has been affected nationally,
WAL-MART STILL EYES
Wal-Mart has hired a New York PR firm as it looks to infiltrate
the five boroughs with its superstores and Sams Club
The Marino Organization, a firm focused on the real estate
and land development sector, confirmed it is representing
the nations largest retailer but declined to comment
on the scope of its efforts.
Wal-Mart was rebuffed in February, when it was dropped
from a development push in Queens.
The Home Depot, Hudson Yards Coalition a group which
supports a controversial stadium on Manhattans West
Side and Brooklyn Bridge Development Corp. are among
clients of the Marino firm. Hill & Knowlton and Fleishman-Hillard
are working for Wal-Mart nationally.
Christina Martin has
joined the Securities Industry Association as senior
VP-corporate communications. She was executive VP at Powell
Tate/Weber Shandwick, and senior VP-PA for the Cellular
Telecommunications & Internet Association. Korn/Ferry
International handled the search.
Ogilvy PR Worldwide,
following a pitch, has retained command of the three-year
$4.9 million National Heart, Lung and Blood Institute account,
promoting heart disease awareness to women.
FCC WARNS ON VNR DISCLOSURE.
The Federal Communications Commission, responding to a large
number of requests about the compliance of VNRs with
sponsorship rules, issued a public notice on April 14 to
warn broadcasters and VNR firms to clearly disclose
the nature, source and sponsorship of material.
The Commission is also seeking public comments for a report
or a formal proceeding to better monitor the sector.
We will take appropriate enforcement action against
entities that do not comply with these rules, the
FCC said in the seven-page notice.
The Commission noted that sponsorship rules put a greater
obligation on political material or programming dealing
with controversial issues. The FCC said an audience is entitled
to know when the program ends and the advertisement begins.
Two Democrats on the seven-member panel issued their own
statements regarding VNRs alongside the main FCC notice.
Commissioner Michael Copps, who noted that tens of thousands
of citizens contacted the FCC demanding an investigation
of government-generated VNRs, said the lines between legitimate
information and propaganda have increasingly blurred.
People in this country have a right to know where
their news is coming from, but its getting almost
impossible to know, he said.
Powell Tate/Weber Shandwick is doing PR for American International
Groups ex-CEO Maurice Hank Greenberg,
who invoked his Fifth Amendment right on April 12 in the
accounting probe into the giant New York-based insurer.
AIG has admitted to a range of shoddy accounting practices,
including a transaction with General Re that could reduce
its net worth by $1.8 billion.
The 79-year-old Greenberg stepped down as CEO on March
14 after a 34-year stint. He retired as chairman on March
Greenberg issued a statement to explain why he is invoking
the Fifth. He is willing to accept responsibility
and to account for his actions, but needs more time
to be advised of the issues to be investigated and
to my alleged involvement therein.
Howard Opinsky, who is based in PT/WS Washington,
D.C., office, serves as Greenbergs spokesperson. Sheila
Tate, vice chairman, told ODwyers the firm does
not comment on client work.
Edition, April 20, 2005, Page 2
ON THE MOVE.
Hill & Knowlton, which has been housed within sister
company JWT advertising since 1995 at 466 Lexington ave.,
is moving in May or June to 909 Third ave. (54th st.), taking
over space being vacated by sister company Ogilvy PR Worldwide,
which is moving to 825 8th ave. (49th st.) where Ogilvy
Advertising is located.
H&K, Ogilvy PR and JWT are members of the WPP Group
H&K, previously at 633 Third ave., was purchased by
the former J. Walter Thompson Co. (renamed JWT earlier this
year) in 1980 and was relocated by JWT in 1981 to space
at 420 Lexington ave (42nd st.) that JWT had vacated when
it moved to 466 Lexington ave.
H&K remained there until 1995 when it moved to 466
An announcement April 27, 1994 said H&K would move
its 158 New York employees from 420 Lexington to temporary
offices at 800 Third ave. while offices at 466 Lexington
were being prepared.
JWT signed a new 15-year lease at 420 Lexington in 1980
to house a number of subsidiaries including Brouillard Communications,
Soskin/Thompson Assocs. (direct marketing) and its Entertainment
H&K, which had 800 employees worldwide in 1980 including
more than 400 in New York, occupied floors 22, 29, 30, 31,
32 and 35-36 at 633 Third ave.
JWT noted that H&K staffers would be on contiguous
floors at 420 Lexington and that economies would be
realized because all accounting and computer operations
would be in one place and available to all H&K units.
Ogilvy is moving to what is known as the WorldWide Plaza
on Eighth ave., a 50-story building that is called one
of New Yorks skyline icons by the website for
The number of people involved in the moves is not known.
ANOTHER F-H INDICTMENT
Another indictment is expected in the federal probe of Fleishman-Hillards
billing for the Los Angeles Department of Water and Power.
Assistant U.S. Atty. Adam Kamenstein said he expects a
grand jury indictment against an additional defendant -
former F-H SVP John Stodder was hit with 11 counts of wire
fraud in February - this month or next, according to The
Los Angeles Times.
Stodder was one of three execs also including former
L.A. partner and office head Doug Dowie, who has sued F-H,
and seven-year staffer Steve Getzug to split with
F-H in January. Getzug told ODwyers he resigned
from F-H on Jan. 4 to take a SVP post with Hill & Knowlton.
Political opponents of Mayor James Hahn have tried to leverage
the F-H allegations against Hahn as he faces a May 17 runoff
against a city councilman and a broader federal probe of
corruption of L.A. contracts.
F-H has said it cant account for $652K in DWP billings
following an internal review but has challenged the L.A.
Controllers assertion that the firm overbilled the
city by $4.2 million since 1998.
PR CAN TRUMP TERRORISTS.
PR is one of the most powerful forces on earth, and a weapon
that should be used to fight global terrorism, according
to Bob Dilenschneider.
That was one of four must-dos that The Dilenschneider
Group CEO presented April 15 during the keynote address
at Worldcom PR Groups annual meeting in Paris.
Effective PR, he said, would go a long
ways toward reducing the wave of fear that is spreading
around the world, creating cross-cultural frictions and
animosities among the people of earth, and tension and suspicion
among their governments.
Despite cultural differences, Dilenschneider said people
throughout the world share a burning universal desire for
peace, prosperity and freedom.
These are powerful things that can bring us togetherour
mutual love of art and music, our respect for our neighbors,
our religious and human values, our yearning for a better
world for our children, he said.
Terrorists, on the other hand, operate outside that system
of shared beliefs and values. The agenda for terrorists
are death and destruction, not the preservation of art,
culture, and religious values, said Dilenschneider.
Working with clients, PR pros can confront terrorists on
the battlefield of ideas and ideals, where they are
extraordinarily vulnerable. PR people can begin
to marginalize and isolate terrorists and terrorist organizations
by casting them in their true lightthe barbarians
of the 21st Century.
Dilenschneider told the audience: By using the power
of ideas and ideals to fight fear and promote a peaceful,
prosperous worldwe can make our profession an even
more powerful force in the 21st Century.
The former Hill & Knowlton CEOs other must-dos
are: serving as think tanks for clients, improving cross-cultural
communications, and policing ourselves in thoughtful and
GWI WANTS DOLLARS
GoodWorks International, which is chaired by former United
Nations Ambassador Andrew Young, has a $180K contract to
promote U.S. investment in Rwanda.
According to GWIs contract, the firm is to devise
a strategy to focus greater public attention on the
tremendous improvements on the economic, political and social
aspects since 1994, when the genocide unfolded.
That genocide left more the 500,000 Tutsis dead, murdered
upon orders from the extremist Hutu government. Tutsi rebels,
under the command of Paul Kagame, ousted the Hutu government.
Kagame, who is now president of the African state, visited
the White House on April 15. The Bush Administration, on
April 12, praised the decision of a Hutu militia group,
which has been raiding Rwanda from the Congo, to disarm.
The U.S. State Dept. maintains a cultural center in Rwandas
capital, Kigali, but American private sector investment
in the country has been limited to its tea industry.
GWI is based in Atlanta, and has offices in New York and
Edition, April 20, 2005, Page 3
TO MAKE DEBUT.
The content of the new BabyCenter magazine, which
will debut as a quarterly in Sept. 2005, will be personalized
for pregnant women and new moms.
The magazine, which is breaking new ground it its category,
will focus on moms-to-be and new moms during specific phases
of pregnancy and motherhood.
Jim Scott is editor-in-chief of BabyCenter and Nina Martin
is executive editor.
The publisher, which has operated the babycenter.com website
since 1997, plans to deliver the new print magazine to a
controlled circulation of two million annually, with a rate
base of 500,000 subscribers for each of the four editions.
Each issue will be stage-based, with all the editorial
targeted to women in a particular trimester of pregnancy
or phase of new motherhood.
The first issue, customized around pregnancy 4-6
months, will be published in Sept. Second issue: Pregnancy
7-9 months, to be published in Nov.
Each edition will be updated throughout the year to reflect
the latest pregnancy and parenting news, research, and trends,
Departments and features will touch on everything from
health and nutrition to relationships, beauty, nesting,
PR submissions should be sent to: [email protected].
N.Y. NEWS DOWNPLAYS
The New York Daily News will put more emphasis on
covering news that readers can use in its business section,
and less hard news coverage of companies.
The changes come as Daniel Dunaief, former deputy business
editor, takes over as business editor, replacing David Andelman,
Jean Chatzkys personal finance column will remain,
but Paul Colford will eventually give up his media column
to become an investigative reporter under the direction
of Rick Pienciak, who was named assistant managing editor
for the investigations group. Phyllis Furman, who covers
media and entertainment, and Lore Croghan, who writes about
real estate, are staying, but they will change the focus
of their columns.
A spokeswoman for the News said the major business stories
of the day will still be covered.
the parent company of www.webmd.com, is starting a bimonthly
consumer health publication called WebMD the Magazine.
The magazine will feature health and wellness information
from the website.
Each issue will connect readers with celebrities who share
their health-related stories and how these issues may affect
others. The first issue features an interview with actress
Brooke Shields, who shares her experiences of depression
following the birth of her daughter.
The magazine will have a circulation of one million copies
that is distributed free to patients in 85% of doctor waiting
rooms across the country.
Marjorie Martin is executive editor of the magazine, based
in Atlanta, Ga. Editorial submissions can be e-mailed to
her at [email protected].
The Journal of
Integrated Marketing Communications in Evanston,
Ill., is accepting articles about IMC trends, international
perspectives on IMC, agency and client point/counterpoint,
and IMCs role in crisis management, acquisitions and
mergers, for publication in the 2006 edition.
Abstracts, which are due by April 20, can be submitted
via e-mail to Kathryn Pratt, editor-in-chief, at [email protected]
with 2006 Abstract in the subject line.
created by the U.S. Hispanic Chamber of Commerce, is a syndicated
English-language program that reaches more than 26 million
potential viewers on major market TV stations, or about
86% of Hispanic households.
Only positive stories about Hispanic people are presented
on the half-hour weekly programs, which are hosted by Ramon
Rodriquez, former PR director of City Univ. of New York,
who is COO of the USHCofC.
Lourdes Santiago, who is executive producer of Hispanics
Today, can be reached at 202/842-1212 in Washington, D.C.
has joined The Village Voice as the New York papers
media critic and Press Clips columnist, replacing
now a features writer for the paper.
was promoted to business editor of The Cleveland Plain
the first female editor-in-chief of The Source, a
music magazine, and Michelle Joyce, VP/marketing, have filed
charges of discrimination with the EEOC accusing the co-owners
of committing sexual harassment and unlawful retaliation
against women at the company.
was promoted to editor of the opinion pages at The Houston
previously CNN Moscow bureau chief, was appointed CNN international
managing editor for the Asia Pacific region, based in the
networks regional headquarters in Hong Kong.
55, was dismissed as managing editor of The Pittsburgh
who established one of the countrys first undergraduate
PR programs in 1949 at Utica College, was honored on his
90th birthday on April 9 in New York by his former students,
which include David DAlessandro, chairman of John
Hancock Financial Services, and Gary Grates, VP/corporate
comms., North America, for General Motors Corp.
(Media news continued
on next page)
Edition, April 20, 2005, Page 4
GM CANCELS ADS
IN THE L.A. TIMES.
General Motors Corp. has stopped advertising in The Los
Angeles Times, at least temporarily.
The cancellation, which came a few days after Richard Wagoner
took over as chairman/CEO of GMs North American division,
was apparently in reaction to an April 6 column by Times
auto columnist Dan Neil, who called for top management to
Neil also said GM utterly missed the boat on hybrid
gas-electric technology while speeding up production
The ban covers corporate ads, not individual dealer ads
in the classified section.
GM spokespeople declined to place a value on its advertising
account or disclose how much it has spent on advertising
in the paper, which is Calif.s largest newspaper with
a daily circulation of about 900,000.
David Garcia, a Times spokesman, said the company will
look into any complaints GM has about inaccruacy or misrepresentation
and will make any appropriate corrections.
Bob Lutz, vice chairman of GM, criticized the media for
promoting the myth of foreign supremacy at the
expense of domestic brands and unfairly suggesting that
GM was in trouble at the start of the New York Auto Show.
Although times are tough at GM, Lutz insisted the challenges
ahead for the company were far less serious than the import-biased
Lutz, who has been given new duties at GM, said his four-month-old
blog, FastLane, will continue.
What began as an experiment has become an important
means of communicating for GM, said Lutz.
Hass MS&L has consulted with GM on its blog endeavors.
Michael Days, the new editor of The Philadelphia Daily
News, was warmly received at a meeting of
the African-American Chamber of Commerce, which has been
boycotting the paper for the past two years.
A. Bruce Crawley, who is chairman of the group, which has
members in Pennsylvania, New Jersey and Delaware, told Days
that he should not expect a free ride because
he is African-American.
Crawley, who is president/CEO of Crawley Haskins Sloan
PR & Adv., helped organize the boycott to protest the
papers coverage of Philadelphias black community.
Crawley had also demanded that Knight-Ridder, which owns
the paper, replace the two top editors of the PDN.
Days was named in Feb. to replace longtime editor Zack
Stalberg, who retired. Earlier, the papers managing
editor left to join a paper in Madison, Wisc.
Days urged the attendees to call or e-mail him about
the tough issues we need to explore and the people we need
to uplift in the paper.
Crawley said the black boycott of the paper had wound down
but the concern over the papers coverage of the black
community had not gone away.
FORMER KNICK STAR
TO HOST TALK SHOW.
Sirius Satellite Radio is starting a weekly talk show called
American Voices, created and hosted by former
U.S. Sen. Bill Bradley (D.-N.J.), who played 10 years with
the New York Knickerbockers.
Bradley, who is a managing director at Allen & Co.,
said the show, which begins in May on Sirius Talk Central,
channel 148, will feature varied stories, personalities
and opinions on American Voices.
He plans to have guests on his show as varied as the ones
he has met on the road from athletes and writers
to entrepreneurs and community leaders.
American Voices will focus on the common humanity
of our citizens and will recognize those extraordinary individuals
who make a difference in their communities, he said.
Devorah Klahr, who is handling bookings for the show, can
be reached at 212/901-6720.
BET DROPS ITS
NIGHTLY NEWS PROGRAM.
BET, the leading cable channel for black viewers, is canceling
BET Nightly News at the end of this summer.
BET will offer news briefs throughout the day, specials
about newsworthy events and an urban affairs show, The
Cousin of Jeff Chronicles that will run four times
Debra Lee, president/COO of BET, said their audience does
not want to wait until 11 p.m. to find out what the news
BET, which is targeting black viewers aged 18-to-34 with
music programming as its primary focus, has also canceled
other public affairs programming in recent years including
Lead Story (now replicated by host Ed Gordon
on National Public Radio) and Teen Summit.
BET also dropped BET Tonight host Tavis Smiley
in 2001 following a dispute about Smiley offering a newsworthy
interview to ABC instead of BET.
Disney Magazine, a
quarterly published by Walt Disney Co., has ceased publication
due to declining subscriptions.
a music industry title, which was started in Jan. 2004,
is shutting down, temporarily, until more funding is found.
Derek Jeter and Alex
Rodriquez of the N.Y. Yankees ranked first and second,
respectively, on a Sports Business Day survey of the most
marketable players in Major League Baseball.
The publication surveyed 81 marketing, advertising and
PR executives, consultants and journalists.
The New York Times has
dropped columns by Maureen Dowd and Thomas Friedman from
the Sunday edition. The columns will now appear just on
of The Washington Post will receive the President's
Award from the Overseas Press Club at its annual awards
gala on April 27.
Edition, April 20, 2005, Page 7
of PR Firms by Specialty
Internet Edition, April
20, 2005 Page 8
Two the sky
is falling articles about advertising and its problem
with fragmented media appeared in recent weeks. One conclusion
is that the fragmentation is presenting more opportunities
for PR and promotion.
Advertising Age columnist Bob Garfield on April
4 worried that the ad industry is caroming toward
chaos and disruption wrought by the digital media revolution.
Broadcast TV works less well each year and the marketing
industry is currently whistling past the graveyard,
according to an Ad Age summary. AA is polling readers on
whether they agree with Garfields Chaos
Ken Auletta, writing
in the March 28 New Yorker, noted the typical
home can pick from 100+ TV channels and the six broadcast
networks (up from three) only from 100+ pull 30% of viewers.
Also alarming adland is the fact that the 13-24 age group
spends more time on the Internet than on TV, according to
Since the audience is so fragmented and so many people
zap commercials or switch to another channel,
marketers are now buying time within programs to push products.
But they dont necessarily tell viewers that the time
has been purchased (like Armstrong Williams pushing No Child
Left Behind on the editorial part of his show under contract
from Ketchum and the Dept. of Education).
Frank Zazza of iTVX,
Westchester, N.Y., told Auletta that the cost of
a 20-second product placement within Desperate Housewives
would be up to $400,000, about the same as a 30-second commercial
on the show.
Zazza predicted $1 billion would be spent on such placements
this year, up from a $500M last year.
MindShare, the media-buying unit of WPP, and ABC are developing
comedies and dramas for Sears and Unilever, Auletta notes.
The article was mostly about the Kaplan Thaler Group, New
York, creator of the Aflac duck.
Linda Kaplan Thaler believes in PR. Dont worry
about whether the news is good or bad. Just get covered...PR
breeds PR, she wrote in a 2003 book.
Her firm was sold to Publicis in 2000. Publicis has the
biggest debt of the five conglomerates ($3.9 billion) and
the lowest revenues ($4.99B).
Aulettas sweeping article did not cover the finances
of the five conglomerates.
Ethics does pay, according
to a study by a professor at the Graduate School
of Business, University of Chicago, who studied quality
of audit committee members and stock prices.
Prof. Roman Weil found that the better the audit committee
of a company, the higher its stock price.
Board members were rated on their ability to understand
transactions, the accounting issues involved, and the implications
of accounting choices.
Dow Chemical had a grade of 443, topping the list of companies
whose stocks were studied from 2000-2003. Last was the CVS
drug chain with 221.
The survey was described in the April 9 New York Times.
Continuing this theme,
the NYT the next day wrote about a money manager
who found bad news hurts stock prices.
Among stocks he studied were American Intl Group,
down 21% this year amid charges of financial improprieties;
Marsh & McLennan, off 36% after being charged with rigging
prices, and Citigroup, down 12% after its private banking
operations were banned from Japan.
Citigroups attitude towards the press was evident
at the Financial Follies of the New York Financial
Writers Assn. last Nov. 19. The bank had two tables
(18 of its own PA people) and no reporters as guests. At
the same event, Bank of America hosted 15 reporters and
Deutsche Bank, 13.
The research on stock prices was made by Great Companies,
Clearwater, Fla., which manages $1.3 billion.
Also cited in the article was a study of corporate governance
practices of 1,500 companies from 1990-99 that found a correlation
between strong shareholder rights and higher profitability
and sales growth. The study was by Prof. Andrew Metrick
of the Wharton School, University of Pennsylvania, and Paul
Gompers and Joy Ishii, of Harvard.
The National Investor
Relations Institute, recognizing in 2002 that non-financial
matters such as governance were having a big effect on stock
prices, created a Center for Integrated Communications
to help members build their knowledge of corporate communications.
NIRI president Lou Thompson said both IR and CC should be
under one umbrella.
The goal of a three-part effort was convergence of
corporate communications functions. Thompson has been
asked via e-mail what happened to this initiative but has
not yet replied.
Heather Sieber recently joined NIRI as its first VP-communication
but NIRI has yet to provide a photo of her...
Intl Assn. of Business Communicators also has a new
PR contact, Kristina Jackson, who is an outside contractor.
No picture is yet available.
Amanda Vaughn had been hired in February as PR/marketing
manager at $50K but quit after several weeks.
Martin Sorrell of
WPP was picked as one of the 100 Most Influential
People by Time mag April 18. The write-up was
by Ken Auletta, who said Sorrell saw that clients wanted
to cut costs and that adland was threatened by fragmentation
of media and the zapping of TV ads.
Sorrell acquired lucrative fee-based service businesses
such as PR, event marketing, direct-mail and research firms,