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O'Dwyer's Newsletter
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Edition, June 1, 2005, Page 1 |
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F-H LEADS $21M BRAND
ST. LOUIS BID.
The St. Louis Regional
Chamber and Growth Assn. has awarded its five-year $21 million
branding and economic development campaign to
Fleishman-Hillard. Kupper Parker Communications was the
runner-up.
The
Greater St. Louis Inc. initiative kicks off
in the fall. It is based on information gleaned from Wilson
Research Strategies (Washington, D.C.), which gauged the
perception of St. Louis held by CEOs, venture capitalists
and national media.
Richard
Fleming, RCGA president, cited F-Hs media relations
savvy, and its big picture understanding of St. Louis
role in the U.S. economy among reasons for its selection.
RCGA represents 40 percent of the employment base in the
16-county St. Louis area.
More than 30 firms received RFPs.
OHIO TAPS LESIC AND
CAMPER.
Ohios air quality authority has parted ways with long
time firm Edward Howard & Co. and tapped Columbus-based
Lesic and Camper Communications to handle its communications
account.
EH&C had the account for almost 10 years and decided
not to participate.
We were very happy with Edward Howards work
but Authority members decided it was time to test
the waters again through a competitive process,
Mark Shanahan, executive director of the Ohio Air Quality
Development Authority, told ODwyers.
Four firms competed for the work, which involves newsletter
production, media briefings, op-ed placements and other
PR tasks. AQDAs budget is about $150K a year for PR.
The AQDA helps businesses conform to pollution guidelines
in Ohio, a state heavily dependent on coal power.
BROWN EXITS GREYHOUND
FOR WM.
Lynn Brown, VP of corporate communications for Greyhound
Lines, has moved over to Waste Management in that same title.
Brown was at Greyhound for five years after stints in the
defense and aerospace sector at Raytheon and Texas Instruments.
At Houston-based WM, she reports to Barry Caldwell, senior
VP of government affairs and corporate communications.
Kimberly Plaskett, senior manager of corporate comms. for
Greyhound, has taken over for Brown as director at the bus
giant, which is owned by Laidlaw International and brought
in Weber Shandwick for PR in January.
USAID PR PLAN CANCELLED.
The U.S. Agency for International Development has cancelled
plans to contract a firm to develop an integrated communications
plan for its initiative to foster public-private alliances
in its overseas work.
A solicitation issued on May 2 was cancelled a few days
later for USAID, which pumps billions of U.S. dollars into
projects around the world. Neither the contracting officer
nor USAIDs PR staff would give a reason for the move
when queried by ODwyers. The contracting officer
said to keep an eye out for any change.
In addition to developing PR strategy, a firm was to implement
a PR plan over a 12-24 month period with USAID staff. The
work was to include identifying speaking and networking
events and advise on media strategy.
USAID last month commissioned an advertising blitz to coincide
with Laura Bushs visit to the Middle East aimed at
bolstering America's image among Palestinians. But The Jerusalem
Post reported that none of the Palestinian entertainers
or athletes approached by the agency would serve as goodwill
ambassador for the campaign. An Israeli Arab soccer
player was eventually used in the From people to people
campaign.
WREN REBUFFS REPORTER
AT MEETING.
Omnicom CEO John Wren, presiding over the annual meeting
in Dallas May 24, answered two of 15 questions that were
prepared for him by an ODwyer reporter.
However, the reporter, a freelancer hired for this specific
project, was interrupted by an OMC staff member and had
no further chance to ask questions because the meeting was
adjourned.
The reporter held the proxy of the ODwyer Co., which
owns 20 shares of stock of OMC. He gave his name to Wren
and identified himself as a reporter for ODwyer before
the start of the meeting.
Asked during the 18-minute meeting how Wren could justify
a $4 million bonus on a $1 million salary in 2004 when the
stock declined to $84.28 at years end
(continued on page
7)
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MEDTRONIC/GCI ARE BEST
APPLES.
Medtronic and outside PR counsel GCI Group won the Best
of the Best awards in the Big Apple competition
of the New York chapter of PRSA May 23 at the Rainbow Room,
Rockefeller Plaza. The chapter awarded 31 Big Apples and
12 honorable mentions before an audience of 350. The event
was helped by donations of $50,000 by sponsoring firms including
PR service firms and PR firms.
Medtronic and GCI were singled out for a campaign to win
Medicare payments for use of a $20,000 device that shocks
irregular heart beats back to normal.
Preliminary approval of such payments has been given for
use in 85% of affected patients.
Fleishman-Hillard picked off four Big Apples and an honorable
mention while Burson-Marsteller, Ruder Finn and M Booth
& Assocs. each won two Apples.
A complete list of winners and sponsors is on the chapter
website, prsany.org.
Howard Rubenstein, who received the John Hill Award for
lifetime leadership in PR, said PR is a wonderful
career where you can hold your head high if you do
the right thing rather than think of what is
the right thing to say.
CBS-TVs Mike Wallace spoke about his recent interview
with Russias Vladimir Putin and said he told Putin
to be a journalist when he leaves office.
Asked about the Newsweek/Koran imbroglio, he said the magazine
should admit its mistake and move on. He urged
cooperation with 60 Minutes, on which he appears,
if it should call a PR person.
B-M HANDLES CHICAGO
ZOO CRISIS.
Burson-Marsteller is helping Chicagos Lincoln Park
Zoo deal with the fallout from a spate of animal deaths
since October. Three elephants, three monkeys, two gorillas
and a camel have died during that period, and an ape had
its arm amputated while reaching for food.
The U.S. Dept. of Agriculture has launched an investigation
into whether the zoo has violated the Animal Welfare Act,
and the American Zoo and Aquarium Assn. is conducting an
audit of the zoos procedures. The Cook County state
attorneys office began its own investigation of the
zoo after receiving a letter from the People for the Ethical
Treatment of Animals.
More than 200 people staged a noisy protest at the zoo
on May 15, demanding the resignation of zoo CEO Kevin Bell.
Bell did offer to step down, but his resignation was rejected
by zoo chairman Jay Proops pending the outcome of the probes.
RUDER FINN PROMOTES
COUDERT.
Ruder Finn has been hired by Coudert Brothers, the international
law firm founded in New York in 1853.
RF is to handle media relations, program development and
in-house communications to build greater awareness on its
client in the business sector.
Coudert has been in the news of late with reports of the
May 18 defection of its eight London partners to rival Orrick
Herrington & Sutcliffe. Those defections follow the
collapse of merger talks with Orrick.
MOYERS RIPS MEDIA, BUSH
ADMINISTRATION.
The U.S. media have abdicated their role as government watchdogs
by allowing official Washington to set the journalism agenda,
said Bill Moyers at the National Conference for Media Reform
on May 15. His speech has created quite a buzz on the Internet.
The former PBS correspondent faulted journalists for simply
recounting what government officials say, rather than subjecting
their actions to critical scrutiny. Instead of acting
as filters for readers and viewers, sifting the truth from
the propaganda, reporters attentively transcribe both sides
of the spin invariably failing to provide context, background
or any sense of which claims hold up and which are misleading,
said Moyers.
He heaped particular scorn on Judith Miller of the New
York Times for relying on official but unnamed sources
to report that Iraq possessed weapons of mass destruction.
She served essentially as the government stenographer.
In Moyers view, news is what people want to
keep hidden and everything else is publicity. Objective
journalism, he said means describing the object being
reported on including the little fibs and fantasies as well
as the Big Lie of the people in power.
Moyers said journalists are operating in a tough environment
as the radical right-wingers of the Bush Administration
and its supporters use their power and ideology to
squelch and punish journalists who tell stories that
make them uncomfortable.
These people are obsessed with control, using the
government to threaten and intimidate. They squelch
free speech in an effort to obliterate dissent and consolidate
their orthodoxy into the official view of reality from which
any deviation becomes unpatriotic heresy.
About Kenneth Tomlinson, the Corporation for Public Broadcasting
chairman who drove Moyers 'NOW' program off the air,
Moyers said: I always knew Nixon would be back.
VIANOVO SPRINGS TO LIFE.
Tucker Eskew, who headed the White Houses global communications
office to coordinate the war on terror message,
is a founding partner of ViaNovo. He also served in London
during the Afghanistan war as President Bushs communications
rep to U.K. Prime Minister Tony Blair.
Washington, D.C.-based ViaNovo offers management and communications
consulting services to governments, companies and non-profit
groups.
Eskew is joined by Matthew Dowd, chief campaign strategist
for Bush-Cheney `04 in charge of media, message development,
targeting and research.
owd also was senior advisor to the Republican National
Committee and director of polling and media planning for
the `00 Bush campaign.
On the Democratic side, ViaNovoa name from the Latin
root for new way or new pathcounts Blaine Bull and
James Taylor as founding partners. They both worked at Public
Strategies Inc. and were aides to Texas Democrat and ex-Sen.
Lloyd Bentsen.
Each of ViaNovos founding partners had been running
his own firm.
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MEDIA
NEWS/JERRY WALKER |
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TIMES UNVEILS NEW BUSINESS
SECTION.
The new Business Day section in the New York
Times will focus on a separate theme each day:
Monday features media and marketing, along with technology.
It adds a new column by David Carr, a Times media writer,
along with alternate-week columns on consumer behavior and
blogs.
On Tuesday, coverage of business travel, renamed Itineraries,
includes a new column, Sounding Off, alternating
with the Frequent Flier
On Wednesday, commercial real estate coverage, renamed
Square Feet, adds information on transactions
and personalities in the industry.
Thursdays feature is Circuits, focusing
on consumer technology, with David Pogues reviews.
On Friday, Street Scene has new features
and columns on Wall Street, spotlighting the players and
strategies behind the news.
Starting last month, the Saturday section was expanded
with a column by Joseph Nocera and new features on personal
business, including a Q&A, with an executive in the
news; an investing column; alternating columns on consumer
advice and executive style; and digests of business articles
worth reading online and in magazines and journals.
Bailey Covers
Chicago Biz
Jeff Bailey, formerly editor of Crains Chicago
Business, from 2003 to 2005, is joining the New York
Times Chicago bureau as a business news reporter.
Larry Ingrassia, business editor, said Bailey will cover
accounting, corporate financial shenanigans and related
issues.
Bailey will work out of the Chicago bureau after a brief
stint, lasting a couple of months, in New York, Ingrassia
said.
He starts on June 13.
LIQUOR BARON BUYS BUSINESS
TRAVELER.
Shortly after his $2.3 billion sale of Grey Goose Vodka,
and less than three months after his acquisition of Travel
Savvy Magazine, Sidney Frank has purchased Business Traveler
Magazine.
Frank said the new focus of BT will be on comprehensive
and timely information that will make their busy lives more
efficient and productive. The magazine will continue
to provide travel advice.
BT was owned for the past seven years by UK institutional
investor Euromoney LLC, which was founded in 1988 by Perry
Publications and has a circulation of 85,000.
BEST BUY BACKS FEATURE
ON MSNBC.COM.
MSNBC.com has started a new interactive technology feature
called Digital Life, which can be found within
the sites Tech & Science section.
The new subsection, which is exclusively sponsored by Best
Buy, allows users to enter a digital representation of various
living spaces in the home and discover the way technology
has transformed each.
The new site will also include news and reviews for lifestyle
technology related to living rooms, outdoor entertainment,
kids and dorms, kitchens, home offices, holiday gift giving
and beyond.
Columnist Michael Rogers will write special reports each
month about different spaces where individuals use technology
to entertain and inform.
Detailed product reviews will accompany the monthly reports.
FCC COMMISH WANTS PROBE
OF PAYOLA.
Jonathan Adelstein, a member of the Federal Communications
Commission, wants to start an investigation of experts who
promote products on TV without disclosing payments from
the manufacturers.
Such appearances violate the federal law against payola,
according to Adelstein.
Sony, Apple, and Hewlett-Packard have positively discussed
the firms products on NBCs Today
show, other network programs and during satellite
tours of local TV stations (NL, April 27).
The FCC commissioners ordered broadcasters last month to
disclose the origin of video news releases produced by the
government or corporations.
MEDIA BRIEFS_______
New York Times Co.
said it will cut 190 jobs, or about 2% of its work force,
including reductions at the New York Times and Boston
Globe.
Less than 25 of the cuts will come from the newsroom, where
a voluntary reduction program is in place.
Paul Wilmont Communications,
a N.Y.-based PR firm specializing in fashion, pays a $100
cash bonus to any staffer who gets a client mentioned in
New York Magazines Best Bets section,
edited by Rima Suqi.
E-mail is the dominant
approach to communications with employess, according
to Dallas/IABCs latest Quick Poll, which shows 82%
of respondents say e-mail is used the most for internal
communications.
The Aker Ptrs.,
Washington, D.C., believes firms rely too much on e-mail
for mobilizing constituents to contact their members of
Congress.
Today, congressional offices get hundreds of e-mails
daily. There is little incentive to read them when the individuals
name is not recognized, every word is the same, and the
person is not a constituent, the firm has advised
clients.
Medialink Worldwide
and PR News have started the Legal PR Bulletin
as an online publication featuring news, opinion pieces,
and case studies.
MEDIA NUMBERS_______
135 millionThe
number of adult American women that Meredith Corp.s
titles will reach with the acquisition of Parents, Child,
Fitness and Family Circle.
$43,015The
average base pay (not including bonuses) for senior reporters
at daily newspapers, according to the Inland Press Assn.s
2004 survey.
(Media news continued
on next page)
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MEDIA
NEWS/JERRY WALKER
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STUDY: WOMEN LESS LIKELY
SOURCES.
A study released by the Project for Excellence in Journalism
found news organizations quote men more than twice as often
as they quote women.
The 32-page study, which examined 16,800 stories reported
by newspapers, TV news and news websites last year, found
76% of the stories quoted a man and 24% quoted a woman.
The findings shows reporters need to work harder to broaden
their base of sources, according to Tom Rosentiel, director
of PEJ, which is part of the Columbia Univ. graduate school
of journalism.
The report also found 88% of newspaper stories quoted,
directly or indirectly, a man, while 41% of stories quoted
a woman. On TV, women were sources for 27% of network evening
news stories and 19% of cable news stories.
Rosenstiel said maybe one reason why women consume news
in lower numbers than men is they see less of themselves
in the news.
CNN quoted the most women among cable news outlets. Female
sources appeared in 21% of CNN stories, compared with 19%
of Fox News stories and 15% of MSNBC stories.
THE DEAL STARTS TECH
MAGAZINE.
Tech Confidential, a new bimonthly supplement to
The Deal, is targeted at the innovation crowd.
Ed Paisley, who is managing editor of The Deal, is the
editor of Tech Confidential and a website and a blog featuring
postings by writers and reader comments.
The first issue, published May 20, emphasized a single
story, driving home the magazines editorial mission,
which is to explore how technology affects nearly every
business decision and strategies that companies use to innovate
around the globe.
The magazine is organized into five sections starting with
Strategic Takes, offering insights into decisions
made by executives and investors, followed by Emerging
Technologies, presenting articles on the newest products
and services, and Industry Intelligence, including
features that weigh into converging technologies amid the
search for IT efficiencies.
Towards the back of the magazine is a section of columns,
ending with a page of statistics.
The Deal, which is a diversified media company, also publishes
The Daily Deal, Corporate Dealmaker, Corporate Control
Alert, and Bankruptcy Insider.
Investors in the privately held company, include majority
owner U.S. Equity Ptrs., a private investment fund sponsored
by Wassertstein & Co.., and Rustic Canyon Ventures in
Southern Calif.
The Deals editorial offices are located in N.Y. at
105 Madison ave. 212/313-9275.
AMA TAPS INTO INTERNET
FOR TALK RADIO.
The American Marketing Assn., a 40,000-member organization,
has an online radio talk show, produced by wsRadio.com,
located in San Diego, Calif.
The show, called Marketing Matters Live!, broadcasts
live via the Internet every Wednesday from noon-1:00 p.m.
(ET).
Marketing thought leaders are booked to discuss forward-thinking
topics with co-hosts Tim Riesterer and David Kinard.
For more information or to listen to the show, log onto
www.wsradio.com/marketingmatters!LIVE.com.
The Go Daddy Group, based in Scottsdale, Ariz., parent
company of GoDaddy.com, the leading registrar of domain
names, has launched Radio Go Daddy.
The show broadcasts live every Wednesday night at 7 p.m.
(PST)/ 10 p.m. (ET) via the Internet and over Sirius and
XM Satellite Radio stations plus select AM stations.
Bob Parson, president/co-founder of Go Daddy, hosts the
show, which broadcasts from a new studio located at the
companys Scottsdale headquarters.
Regular shows will feature live, uncensored and unedited
podcast segments as well as guests.
Parson and David Lawrence, who hosts The David Lawrence
Show, are co-producers of the new show, which can
be found at www.radiogodaddy.com.
PUBLICISTS INVITE PRODUCERS
TO LUNCH.
The Publicity Club of N.Y.s next luncheon on June
8 will feature a panel of TV news producers, who book in-studio
guests and story segments for early morning shows.
The panel consists of Kim Gerbasi, senior executive producer,
WNBC-TVs Today in New York; Andy Savas,
producer, WABC-TVs Eyewitness News This Morning;
Byron Harmon, executive producer, WCBS 2s News
This Morning, and Adrienne Paxton, senior producer,
WNYW-TVs Good Day New York.
Members and non-members can preregister at www.publicityclub.org.
PEOPLE_______
Dean Wright
has joined Reuters as SVP/managing editor for consumer services,
based in New York.
Wright joins Reuters from MSNBC.com where he was editor-in-chief
and managing editor for news.
He leads the editorial operations and programming for reaching
consumers over digital media platforms.
Sam Sifton,
previously deputy culture editor, was promoted to culture
editor for the New York Times, replacing Jonatham
Landman, who returns to assistant managing editor.
Ben Wood was
promoted to associate publisher/editorial director at Vance
Publishing Corp.s produce group, which publishes The
Packer newspaper in Lincolnshire, Ill.
Lance Jungmer, managing editor of The Packer, was promoted
to editor, and Greg Johnson, formerly news editor of the
paper, was upped to managing editor.
Ellen Cannon,
a veteran of Time Inc., Bloomberg Financial, and Conde Nast,
has joined the Palm Beach Media Group as editorial director
of its 11 luxury lifestyle magazines, including the 53-year-old
Palm Beach Illustrated.
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WREN
REBUF (cont'd from one)
from $87.10 at the
beginning of the year, Wren replied: Can I justify
it? Certainly. The management team is not responsible for
what the stock market does or does not do. We are responsible
for the performance of the company vs. the rest of the industry.
Omnicom
outperformed at multiple levels the performance of the advertising
and marketing services industry around the world.
All
of that was taken into consideration by the compensation
committee in awarding the bonus.
Wren also received $193,159 for personal use of aircraft
hours. A new rule of the Securities & Exchange
Commission requires company executives to report personal
use of corporate aircraft.
A
Wall Street Journal story May 25 said the SEC crackdown
revealed that executives are using the jets for vacation
and leisure travel to a far greater extent than previously
known. Four executives had air travel usage worth
more than $500,000 each.
Wrens
bonus in 2003 was $1 million. He owns 376,342 OMC shares
worth $32 million and has options on 2,650,000 other shares
at various prices. The value of his unexercised in-the-money
options as of Dec. 31, 2004, totaled $53.3 million (exercisable)
and $7.2M (unexercisable).
OMC
is the largest ad/PR conglomerate with revenues of $9.7
billion in 2004 and $723M in net profits. Although OMC has
posted a long string of quarter-to-quarter gains in sales
and revenues, its stock is about 25 points below its all-time
high of $107 on Dec. 17, 1999.
Insider
sales totaling more than $25 million in 2004 hurt the stocks
credibility, Barron's said last year.
OMC
owns two major PR firms that have been in the news lately.
Its Ketchum unit is responsible for the contract under which
broadcaster Armstrong Williams promised to pitch the No
Child Left Behind Act on his and other shows.
OMCs
Fleishman-Hillard unit has been accused of overbilling the
City of Los Angeles.
Asked
if currently rising interest rates would present a challenge
given the companys $2.5 billion debt, Wren replied:
The company is properly leveraged as demonstrated
by the slide Randy (CFO Randall Weisenburger) demonstrated
and the company has more than adequate liquidity to meet
its current and future needs.
Reporter
Was Interrupted
After
the ODwyer reporter had put the second question to
Wren, an unidentified woman approached him and told him
to stop using a camera. The reporter said it wasnt
a camera, but a digital audio recorder that was being used
to record the meeting.
At
this point, someone moved that the meeting be adjourned.
The motion was promptly seconded and the meeting was declared
over. The reporter had no further chance to ask questions.
[The
reporters name is not being used because he was given
a limited assignment to pose questions at the OMC meeting
and record the answers. This NL does not want the reporter
to suffer any repercussions for being the only person to
ask questions at the meeting of the worlds biggest
advertising/PR conglomerate]
N.C.
SUSPENDS MULTI-MILLION DOLLAR RFP.
North Carolinas Health and Wellness Trust Fund has
suspended an 11-firm pitch for its $7.4M/year account for
PR and advertising.
Eighty-five
percent of the work was earmarked for teen anti-tobacco
efforts and the state said it plans to divert the funds
to a promised prescription drug plan for seniors.
The
proposed account was a robust increase on the current budget
of about $2.6M, work handled by Raleigh-based Capstrat,
which was one of 10 other firm pitching for the account.
Alison
McLaurin, director of marketing and public affairs for the
Fund, told ODwyers that Capstrat will continue
with its $2.6M work until the end of its contract in December.
She said the RFP is being evaluated.
Under
state rules, the contract had to be put through a competitive
bidding process because the budget was increased.
Accusations
of political favoritism surfaced during the RFP process
earlier this year, but the governors office said the
commitment to seniors must be met before other educational
efforts are to be made.
CAOUETTE
DISCONNECTS FROM CINGULAR.
David Caouette, who led media relations for AT&T Wireless
through its $41 billion acquisition by Cingular Wireless,
has left AT&T for a VP-corporate communications post
at The Walt Disney Company.
Cingulars main PR
team is located in its headquarters of Atlanta, while Caouette
has been based on the West Coast for AT&T and remains
there with Burbank, Calif.-based Disney.
Caouette is a veteran
of GE Capital from 1989-94, handling external communications
for the bond insurer Financial Guaranty Insurance Company
and began his career at UNUM Life Insurance as manager of
employee communications.
At Disney, Caouette handles
financial reporting, legislative and regulatory issues and
corporate and executive communications. He reports to senior
VP-CC Zenia Mucha.
HIGH
COURT BACKS COMMODITY PR.
The Supreme Court ruled May 23 that commodity ad/PR programs
represent constitutionally protected forms of government
speech, tossing aside complaints that the mandatory
fees slapped on ranchers violates the First Amendment rights
on those opposed to the Beef: Its What for Dinner
message.
Jim McAdams, president
of the National Cattlemens Beef Assn., told Bloomberg
the ruling is a victory for all producers who want
demand-building efforts in beef safety, nutrition and promotion
continued. The groups promotion board spends
nearly $20 million a year in the Leo Burnett-developed campaign
that is funded by a $1 per-head assessment on ranchers.
The Livestock Marketing
Assn. had opposed the mandatory beef checkoff because it
violates the free speech rights of those ranchers
who object to being forced, as a condition of their choice
of livelihood, to support speech with which they happen,
for whatever reason, to disagree.
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PR OPINION/ITEMS
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The ad/PR holding
companies (Omnicom, WPP, Interpublic, Publicis, Havas)
took a pasting from the New York Times and Advertising
Age.
Ad columnist Stuart Elliott, in a major feature on page
one of the May 23 business section, said the Big 5 are facing
shrinking profit margins and sagging stock prices,
leading to shakeout and a frenzied effort to cut prices.
While the market was mostly up May 23, the ad stocks posted
small losses throughout the day.
Elliott questioned whether the giant holding companies
are nimble enough to halt the decline, a theme
that was echoed in a debate on the holding companies conducted
by Ad Age.
AA said ad veterans complain that the holding companies
are hampered by a crippling focus on quarterly profits
and the whims of Wall Street.
The holding company model is so complex it may have made
them too ponderous to respond quickly enough to sweeping
change... it added.
Elliott pointed out that hip new rivals are
springing up with names like 180, Amalgamated,
Mother and Taxi that are innovative
and creatively focused.
An AA poll found that 84% of respondents feel the Big 5
have become too large to be effective.
Comments on adage.com included:
Its about whose stock price is more important:
the holding companys or the clients.
They talk about integration, but because line managers
lack experience and motivation to collaborate, they operate
as self-serving individuals.
Account managers must run an often mind-numbing gauntlet
of bureaucratic tangles...
The current state of Big Advertising is a mirror
image of the current state of Big Media. Both have become
too distant to be sensitive to what their audiences need...media
has lost credibility; advertising has lost creativity. Both
sacrifices were made at the altar of profitability.
Among the few AA respondents
who were not negative was one who cited the creativity
in the Super Bowl ads and said the Big 5 have been
effective for shareholders.
However, Elliott pointed out that Omnicom is down 8% from
its 52-week high and 13.8% from its five-year high; WPP
down 11.7% and 29.1% respectively and Interpublic, off 15.7%
and 73%.
The situation is so
embarrassing that the congloms have run from the
press (page one).
OMC CEO John Wren took the annual meeting to Dallas where
it found safe haven from Ad Age, AdWeek and even
the Dallas Morning News. This NL was the only media
daring to cover the OMC meeting.
Interpublic has no scheduled annual meeting at all, claiming
its books are too fouled up. WPP, Publicis and Havas conduct
their stockholder meetings in other countries, giving the
bird to the U.S. press.
The ad and PR creatives
are angry and we dont blame them. They have
watched accounting and business people take over their firms,
stuff their pockets and run up a massive debt ($12B+).
Though OMC dipped $3 in 2004, Wren got a $4 million bonus.
Shocking was the news that Wren got $193,159 worth of personal
use out of company aircraft in 2004, a revelation
forced by a new SEC rule.
The Wall Street Journal did a lede article May 25
on this corporate perk, noting that the reported personal
use of aircraft totals may understate the actual cost
by a factor of three since cost of aircraft, maintenance,
crew, etc., are not counted.
PR Seminar, the annual
gathering of blue-chip corporate PR execs, meets
June 1-4 at the Ritz-Carlton in Naples, Fla., and a high
turnover in its ranks is possible. Outplacement firm Challenger,
Gray & Christmas says 411 CEOs lost their jobs in the
first four months of 2005, up 88% from 2004. PR heads usually
exit with them. PRS needed a record 44 new members last
year to fill its ranks.
It once only took in 7-8 freshmen yearly.
White House press
corps boycotted a President Bush press conference
May 23 featuring Bush and Afghanistan leader Karzai. Scribes
say theyre only allowed two questions at these mini-conferences
and are tired of being props. White House interns
were used to fill up the room.
Sellers of PR firms
are almost uniformly happy with the money they got
but only 58% of buyers said their financial expectations
were generally met, according to a survey of 30 people
in selling firms and 20 acquiring firms by StevensGould
Partners.
Former PRSA/New York
board member Ken Kerrigan wrote in his blog May 19
that PRSA president Judith Phairs remark to a Senate
committee that PR...has established a level of trust
with the media and public was a ridiculous and
foolhardy statement.
The only reason this bill (about video news releases)
is before Congress is because the public and media dont
trust PR people, said Kerrigan (inperspective2020
.blogspot.com). There was no immediate comment from Phair...
the PRSA board has
promised not to interfere in the 2005 nominating process,
said Phair. In another reform, nominating ballots will be
counted in the open, unlike last year, she also said. Governance
reform committee proposals that are adopted by the board
will be revealed but not the rest, she said... from
the May 16 New Yorker: A voice (on the
phone) that might have been a childs said something
she couldnt understand...a fashion, that baby telephone
voice.
We hear that baby telephone voice all the time
from PR A/Es asking if we got that release.
How do they perfect that?!
Jack
O'Dwyer
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