The eight page weekly is the only PR newsletter on LEXIS/NEXIS.
Edition, March 8, 2006, Page 1
S.F. SECURITY AGENCY TAPS
teamed with graphic design firm Words Pictures Ideas, has
won a competitive review for a public outreach campaign
on behalf of San Francisco Countys Office of Emergency
Services and Homeland Security.
Ramirez, an emergency planner for OES, told ODwyers
that the county agency ranked a list of 10 vendors for marketing
and advertising and issued an RFP for a specific project
to the top proposers.
which covers the county and city of San Francisco, issued
an RFQ in December to set up a pre-qualified list of firms.
Weber Shandwick, Burson-Marsteller, Manning Selvage &
Lee, Solem & Associates, and Staples Marketing Communications
were tapped last month as PR contractors for OES, along
with a handful of advertising and design shops.
is putting up for review its entire PR account, now
handled by several PR firms and valued at close to $2 million.
An RFP has been circulated. Current firms include Edelman;
Cohn & Wolfe; HWH PR/New Media, and Publicis Dialog.
D.J. Oh is U.S. CEO based in Ridgefield Park, N.J.
5W TO SHAPE UP PRITIKINS
5W Public Relations edged
Dan Klores Communications and Edelman for the six-figure-plus
Pritikin Longevity Center & Spa in Aventura, Fla. Hill
& Knowlton had worked for the Center.
More than 75,000 people
have enrolled in the one and two-week Pritikins lifestyle
change programs. The Pritikin program focuses on daily exercise
and eating whole foods like fruit, vegetables, and lean
Ronn Torossian, CEO of
5W, calls the Center a vital institution at a time
that Americas health crisis is in such a horrific
PCIs BARRY STEPS DOWN.
Inc.s Dick Barry stepped down as CEO of the 43-year-old
Chicago-based firm on March 1. The 71-year-old executive
will officially retire in September.
With Barrys exit,
PCI becomes one of the largest female-owned PR firms. The
firm is headed by Dorothy Pirovano, 61, who becomes president
and CEO. The 25-year PCI veteran has counseled GlaxoSmithKline,
Baxter Healthcare, Hoffmann-LaRoche, and 3M.
She is joined at the top
by Ruth Mugalian, 54, and Jill Allread, 41. Mugalian takes
over for Pirovano as secretary. Allread assumes the treasurer
INDEPENDENT PR FIRMS FLOURISH.
Seventy-five of 130 independent
PR firms reporting to the ODwyer Co. had gains of
more than 10% in 2005 with 19 of the top 25 growing 10%+.
Ten of the 25 had gains
of 20% and more and six grew 30% and more.
Edelman led the independents
with a 13.6% jump to $261,858,702. Its increase of $31M
was the largest gain in fees on the list.
5W PR, up 85% to $5,043,600,
was the fastest growing firm in PR for the second year in
PR firms submitted top pages of income tax returns, W-3s
showing total payroll and other proofs.
The sizable gains were
in contrast to the observable performance of PR firms owned
Block PR Reports
While the five holding
companies wouldnt let their PR units reports for the
fourth year in a row, overall PR totals were available from
public documents of Omnicom and WPP Group.
OMC PR fees were up 2.1%
in 2005 to $1 billion. This includes an unknown amount from
numerous acquisitions that are made on a multi-year basis
so that actual organic PR revenues could be
OMCs holdings include Fleishman-Hillard, Ketchum,
Porter Novelli and Brodeur.
Hill & Knowlton, Ogilvy PR, Cohn & Wolfe, GCI Group)
reported $967M in PR fees which JPMorgan figured was a 4%
gain adjusted for the acquisition of GCI in 2005.
Interpublic (Weber Shandwick,
Golin Harris, Powell Tate, Rogers & Cowan) stopped breaking
out its PR fees in 2002, combining them with sales promotion,
branding, interactive, healthcare, event marketing.
Also shielding PR fees
are Publicis (Publicis Dialog, Manning, Selvage & Lee)
and Havas (Euro RSCG Magnet and Life NRP, and Abernathy
Independent PR principals,
many of whom once worked for conglomerates, said their growth
shows that PR does best in an independent environment. Some
of the principals, even though their fees were flat, said
they were happy to be on their own.
They recalled advertisings
quest to buy out the PR counseling business by offering
generous amounts of cash and stock and by telling the PR
firms they were doomed if they didnt join one of the
But many PR firms that
sold to ad agencies did not do well in the ad environment.
Those that couldnt meet
(Continued on page 5)
Edition, March 8, 2006, Page 2
CLINTON ADVISES ARABS ON
President Bill Clinton advised leaders of the United Arab
Emirates on how to win approval for the $6.8B deal to take
over control of key U.S. ports, according to the Financial
Clinton spokesperson told FT that officials from Dubai called
the former President two weeks ago for advice on how to
deal with the political and public uproar about Arabs running
shipping terminals in New York, Newark, Philadelphia, Baltimore,
New Orleans and Miami.
recommended that Dubai Ports World, which is owned by the
UAE, call for cooling off period to allow for
a full investigation of the transaction. DPW agreed on Feb.
26 to a 45-day deal of the closing of the deal.
has close ties with the UAE. He received $300K for speaking
in Dubai in 02.
York Senator Hillary Clinton is a leading opponent of the
DPW takeover. She has introduced legislation that bans government-owned
entities from taking over U.S. ports.
CSV PILOTS KEYSPAN TAKEOVER.
Citigate Sard Verbinnen
is piloting the takeover of Brooklyn-based Keyspan Energy,
the nations No. 5 distributor of natural gas, by National
Grid of the United Kingdom.
NG is paying $7.3B in
cash for Keyspan which serves 2.6 million customers in New
York, Massachusetts and New Hampshire.
NG promises to honor Keyspans
labor contracts and record of community involvement as evidenced
by Keyspan Park, the home of the Brooklyn Cyclones minor
league baseball team of the New York Mets.
The British company promises
to retain a corporate presence in Brooklyn. Keyspans
CEO Bob Catell will become executive chairman of NG USA
and deputy chairman of NG.
WANTS PR FIRM.
The St. Petersburg/Clearwater
area of Florida, marketed under the name Floridas
Beach, has issued an RFP to bring in its first outside PR
firm since before Sept. 11.
The region, which spans
345 miles of shoreline along the Pinellas County peninsula
on Floridas West Coast, relies on tourism as its No.
1 industry ($2 billion impact) and claims 12 million vacationers
The St. Petersburg/Clearwater
Area Convention & Visitors Bureau has allocated $150K
for the first year of an anticipated two-year PR pact to
play up its locale as a leisure, business and meetings destination.
James Raulerson, PR representative
for the Convention & Visitors Bureau, told ODwyers
the area hasnt used outside PR counsel in the U.S.
since cutbacks after the 9/11 attacks, but the Bureau has
maintained relationships with agencies in central Europe
and England. Amelia McFarlane ([email protected])
of the Pinellas County Purchasing Department is contracting
officer. Proposals are due March 21.
MONTANA NEEDS PR FOR WORKERS
The non-profit agency
set up to provide workers compensation insurance for
businesses in Montana has issued an RFP for a firm to highlight
its work, distill the issue of workers comp for the
public, enhance its overall image, and describe the benefits
of doing business with the quasi-state agency.
The Montana State Fund,
which insures 28,000 businesses and competes with private
insurers, plans to allocate up to $500K for the effort,
which includes PR, advertising, web design and publications
consulting for its quarterly newsletter.
MSF wants a firm to be
able to tackle the issue of workers comp and make
it palatable for public education efforts. It notes the
topic is a complex type of coverage that is subject
to misunderstanding and sometimes, controversy.
The Fund is not requiring
firms to have an office near its Helena base, but personnel
must travel when required for meetings and must be in phone
and e-mail contact.
MSF anticipates awarding
a two-year contract to begin in July. Wendt Advertising
and PR is the incumbent. Its contract expires in June.
Mary Boyle ([email protected];
406/444-6502) is procurement officer.
DE SMEDT WINS $5K PAGE/IPR
Liesbeth De Smedt, who
is studying for her M.A. in Strategic PR at the Annenberg
School for Communication of the University of Southern California,
is the grand prize winner in the Case Study Competition
sponsored by the Arthur W. Page Society and the Institute
She will receive a $5,000
cash prize at Pages spring seminar April 6-7 at the
Ritz-Carlton New York, Battery Park City.
Her advisor, Craig Caroll,
Ph.D., will also be honored at the April 6 dinner. He will
De Smedt laid out a set
of problems for students to consider, debate and respond
to regarding anti-Barbie campaigns launched against Mattel
by other companies, toy manufacturers and artists.
The study shows how Mattel,
faced with decreasing sales of Barbie dolls, saw these changes
as threats rather than as opportunities
to create a pro-Barbie climate worldwide.
Daniel Pozen, student
at the Amos Tuck School of Business, Dartmouth College,
won first prize in the Business School category for his
research entitled: AManaging a Crisis in Financial Services:
Putnam Investments 2003-2004. He will receive $2,500 and
Paul Argenti, faculty advisor, will receive $650.
Yuliya Melnyk and Monshumi
Anand, students at the University of Missouri-Columbia-Mendoza
College of Business, won first prize in the communication/journalism
Title of their work was:
How the Russian Company Pallet Trucks used PR strategies
to protect its business and the German Brand Pfaff-Silberblau
in Russia in 2001.
Edition, March 8, 2006, Page 3
NYT'S BENNET TO ATLANTIC
York Times reporter James Bennet has been named editor
of the 149-year-old Atlantic Monthly.
post has been vacant since Michael Kelly resigned in 02
to return to writing. Kelly was killed in Iraq in 03
while on an assignment for the Atlantic.
39, had covered politics and served as the Times' Jerusalem
bureau. He planned to shift to Beijing later this year until
he was offered the Atlantic post by publisher David Bradley
on Feb. 29.
Bradley purchased the Atlantic from Daily News publisher
Mort Zuckerman for $10M in '99. He has just completed the
shift of the Atlantic headquarters from Boston to Washington,
Murphy, managing editor, had been editing the Atlantic,
but decided to remain in Boston. The Atlantics circulation
PEREZ EXITS NBCU.
Anna Perez, 54, is stepping
down as executive VP-communications at NBC Universal to
write a book about her life in politics and corporate America.
She denies reports that
she is leaving because of the recent arrival of GE corporate
marketing officer Beth Comstock as president of digital
media and market development. Perez reports to Comstock.
Before joining NBCU in
'01, Perez served as communications counselor to then-National
Security Advisor Condoleezza Rice. She also was corporate
communications general manager at Chevron, VP-California
government relations at Walt Disney Co., and head of media
relations at Creative Artists Agency.
Perez was press secretary
to former First Lady Barbara Bush.
Fincke, editorial director of In Touch Weekly
since 2002, has joined Martha Stewart Living Omnimedias
Body + Soul as editor.
Fincke had been writing
the Yoga Now column for B+S, in addition to
her duties at In Touch. She was formerly a senior editor
for US Weekly and articles editor for Elle. MSLO bought
B+S for $6M in 2004.
Bursky, editor-at-large for Electronic Design, has
joined CMP Medias Electronics Group as semiconductor
editor for EE Times and EETimes.com.
Bursky was at ED since 1973 in various titles including
Kennedy, VP/strategy and development for Tribune
Publishing since 2001, has been named president, publisher
and CEO of The Morning Call in Allentown, Pa. Hes
been with Tribune since 1994.
New York Times has moved to reassign diplomatic
correspondent Steven Weisman after his wife, Times White
House correspondent Elisabeth Bumiller, has closed in on
a deal with Random House to write a book on Secretary of
State Condoleezza Rice, according to the New York Observer.
These are two professionals
of the highest integrity.
And in this case the perception
of a conflict is relatively easy to avoid, executive
editor Bill Keller said in a statement to the Observer,
which reported Weisman is in talks to move to the economic-policy
Johnny Quads Wenzel, a former reporter
and staffer for Star, The National Enquirer
and The Palm Beach Post, has signed on as editor-in-chief
of Poker Pro Magazine. Wenzel is a well-traveled
poker player and has penned three books on the subject.
Termin has been promoted to executive VP, editor-in-chief
for PostNewsweek Tech Media, based in Washington, D.C. Termin
joined its Government Computer News in 1991 and rose
to become SVP for editorial in 2003.
Ballantine was named group publisher for Government
Computer News and Washington Technology, both owned
by PostNewsweek Tech Media. Ballantine joined the sales
management team of The Washington Post in 2002 and
has served at The Wall Street Journal and Red
Maffei, Oracles former chief financial officer
who has served as CEO-elect of Liberty Media since November
2005, has taken over as president/CEO. John Malone, chairman
of the company who took the CEO reins on the retirement
of Robert Bennett, remains chairman.
Liberty has stakes in
media properties like QVC, Encore, IAC/InteractiveCorp and
post 103 historic films and documentaries from the National
Archives in a pilot program that Allen Weinstein, U.S. Archivist,
says is part of his effort to establish an archive
Footage of the Marines
raising the flag over Iwo Jima in 45 and the 69
film of the first manned landing on the moon are part of
the initial package.The Archives has more than nine billion
Press has published the International Libel
and Privacy Handbook, which is billed as the first-ever
guide to global media law.
Charles Glasser, media
counsel for Bloomberg News wrote the plain language
book, offering a nation-by-nation roadmap to navigate libel
and privacy laws. The 391-page book cost $95.
Economist editor-in-chief Bill Emmott said Feb. 20 that
he would relinquish the post after 13 years. Emmott, credited
with building a strong U.S. subscriber base for the U.K.
magazine, worked at the magazine since 1980 and took over
as EIC in 1993. Emmott's successor will be chosen by the
group's board of directors, subject to approval by four
the cable unit of NBC Universal, is launching outzonetv.com,
a broadband entertainment channel aimed at the gay market.
The site will feature
programs such as Boy Meets Boy, a dating reality
show. The gay market is estimated at $640B.
Edition, March 8, 2006, Page 4
KEF ADDS HISPANIC MEDIA PRO.
Robles, a former news and sports producer for Univision
and Telemundo, has joined KEF Media Associates, Atlanta,
as assistant VP and director of Spanish-language media relations.
was an audio technician and field producer for the Spanish
International Network, later becoming an editor and producer
for Univision, Telemundo and mun2 New York in Florida.
was an assignment editor for a handful of stations like
WPIX in New York.
said users of its national news line US1 will receive free
online media monitoring for 30 days after a release is issued.
PRNs eWatch monitoring service provides the tracking
data from 14,000 online publications and blogs. ...Vocus
has added an Italian version of its PR software, the fifth
language for the service. The company has also signed GENCO,
a supply chain management company, as a new client. ...PrimeZone
a press release dissemination service, has aligned with
Israeli PR company Noy Tikshoret to distribute Primezone
releases to Israel. ...Berkshire
finalized its acquisition of Business Wire (NL 1/25). ...Intellix
been tapped to re-design the website for online magazine
NEWS OF PR FIRMS _______________
FALLS TO LIME.
Communications has been acquired by Lime PR + Promotion,
a unit of Kirshenbaum Bond + Partners.
New York-based Jericho counts Progressive Insurance, Ikea
and TCBY as clients. CEO Eric Yaverbaum, who co-founded
Jericho more than 20 years ago, will become managing partner/client
services director at Lime. He is the co-author of I'll
Get Back to You and Public Relations Kit for
Strauss is to remain Jerichos president.
has counseled Song Airways, HBO, BBC America, NBC Universal,
Polo Jeans and Circuit City.
Partners acquired a majority stake in KB+P in `05. KB+P
has more than 225 employees and billings in the $550M range.
Hill & Knowlton
has moved its Washington, D.C. office from New Hampshire
Avenue to 607 Fourteenth Street, NW. Phone numbers remain
the same. ...APCO
Washington, D.C., has opened an office in Guangzhou, China.
Attorney Binging Shi heads the office. She was managing
director of Shenzhen-based law firm. APCO has offices in
Beifin, Shanghai and Hong Kong. ...Himle
Minn., and Totten
Alexandria, Va., are managing a statewide campaign supporting
a proposed state constitutional amendment to dedicate 100
percent of Motor Vehicle Sales Tax to roads, bridges and
transit. Himle Horner guides day-to-day operations and Totten
is advertising consultant. The issue is on the November
ballot in Minnesota.
a veteran senior producer for NBC, CBS and CNN, to Ruder
Finn, New York, as VP in its global issues group. She is
working on media relations efforts for the World Summit
on Innovation and Entrepreneurship in Oman; Liz Claibornes
Domestic Violence Workplace Initiative, and the Summit of
Iraqi and American Women.
named to head a new Norwalk, Conn., office for HWH/PR New
Media. He joined the New York-based firm in July 2004. (Info:
was VP-communications at Biotechnology Industry Organization
in Washington, D.C., will join Cell Therapeutics in Seattle
next month. He wraps up a 13-year career at BIO, where he
represented more than 1,200 companies, academic institutions
and related groups. Earlier, Eramian was assistant administrator
of comms. at the Small Business Admin. and director of PA
at the Dept. of Justice. At CT, Eramian will be executive
VP of corporate communications. Judith Cushman of Judith
Cushman & Assocs. in Seattle handled the search.
for Connors Communications, has joined Dukas PR, New York,
as a senior VP and head of the firm's technology practice.
Barrish began his career in tech PR with Cohn & Wolfe.
Dukas has also promoted A/S Justin
NEW ACCOUNTS _________________
New York/Fotolia, online digital stock images database,
as AOR for PR.
New York/Littman Krooks, New York law firm focused on elder
law and estate planning, for marketing and PR.
New York/RSC Equipment Rental, national construction/industrial
markets supplier with 500 stores in North America, as AOR
York/The West Paces Hotel Group, for corporate comms. and
to spearhead launch of its Solis Hotels & Resorts brand.
New York/Workplace Print Media, direct marketer targeting
at-work consumers, for PR.
PR, New York/Stride
Rite, shoe brand, and cooking personality Rachel Ray, both
as AOR for PR.
Washington, D.C./Altair Nanotechnologies, publicly traded
developer of ceramic nanomaterial technology, for PR.
Pepperdine, Brown & Russell,
iBAHN North America, broadband services for hotels and meeting
sites, for PR in North America.
Waukesha, Wisc./Bou-Matic, dairy equipment supply company,
as AOR for marcom.
Milwaukee/be energy bars, for ads and PR as the product
is tested regionally in Target retail stores.
Diego/Barrier Therapeutics, for launch of Vusion Ointment.
NR is part of Euro RSCG Life NRP. Its New York office is
also on the account.
Edition, March 8,
2006, Page 5
from page 1)
quotas were merged into other firms or closed. Some firms
were moved from their own offices to empty offices of the
ad agencies. The five holding companies acquired a debt
that now totals about $12 billion and is increasingly costly
because of high interest rates. OMC says Sarbanes-Oxley
costs $60M yearly.
number of the larger independent firms say that a trade
association promoting the unique benefits of independent
PR counseling needs to be formed.
most independents have only one or a few offices in the
U.S., many belong to networks such as Worldcom PR Group
(100 offices in 33 countries), Pinnacle Worldwide (56 offices
in 31 countries), and IPREX (55 offices in 23 countries).
Is Key for Edelman
Richard Edelman, president/CEO
of Edelman, said the main thrust of the firm continues to
be getting attention in the media for our clients.
Strategy is critical,
he said, but you must deliver. He feels one
reason the firm is growing strongly now is because staff
was not cut in 2002-03 when the economy was down. We
kept our senior people, he said.
Helping to boost Edelman
revenues are such clients as Wal-Mart, General Electric
and Unilever. U.S. fees grew 12% to $170M while international
(25 countries) grew 17% to $91M. In reply to a question,
Edelman said the firm has no debt.
Love What We DoTorossian
Ronn Torossian, president/CEO
of 5W, the fastest growing firm in both 2004 and 2005, said
he is especially proud that we dont have a new
business department all of our business is word of
mouth or referral based ... we have no client or staff turnover
... we love what we do and expect to be the fastest growing
firm in 2006.
Biggest gainers in the
top 25 were Access PR, technology specialist that was formerly
a unit of Interpublic, up 38%; Alan Taylor Communications,
sports/lifestyle specialist up 36%, and Integrated Corporate
Relations, financial specialist, up 36%.
New to the top 25 are
APCO Worldwide, which bought itself out from Grey Global,
up 22% to $41.8M, and Clear!Blue, with clients such as DaimlerChrysler,
Best Buy and Compuware, which grew 31% to $13.3M.
on Category Leaders
Tony Signore, CEO of Alan
Taylor Communications, said the firm has become the
lifestyle and sports PR choice for the worlds leading
Focus was switched to
category leaders with the client list being
cut from 62 in 2004 that generated $9.7 million to 39 in
2005 worth $13.3M.
Signore called this addition
About $1M in fees were
lost from clients who no longer met our new vision,
Firm, Grows Fast
Tom Ryan, co-CEO of Integrated
Corporate Relations, Westport, Conn., up 36% to $11.5M,
said the firms growth is due to its staff of senior-level,
former sell-side analysts, portfolio managers, investment
bankers and communications professionals serving a variety
of industry verticals.
The firm has 150 corporate
clients and took part in more than 60 initial public offerings
in the last three years. It added 70+ accounts in 2005.
Ryan was managing director
in the research dept. of BT Alex. Brown. Co-CEO Chad A.
Jacobs was VP and managing director in the same unit and
earlier with Ladenburg Thalmann.
Margery Kraus, president/CEO
of APCO, completing its first year as an independent company,
said, Operating independently has allowed us to continue
to invest in key people and add to our core strengths in
corporate communication, litigation communication and public
affairs. We also expanded our research capability and added
to our innovative online offerings.
The firm, which posted
a 22% gain to $41.8M, opened a Chicago office and expanded
in New York. It won a number of awards including an Arthur
W. Page Society Principles Award. North America CEO Neal
Cohen was named public affairs executive of the year
Does Tech, Health
grew 21% to $22.1M by focusing on technology and healthcare
President and CEO Steve
Schwartz says the 20 most senior executives average ten
years at the firm, providing an extraordinary deep
and rich reservoir of domain experience that clients can
The firm has more than
165 clients in the two practice areas and has kept this
focus throughout its 15-year history.
We continue our
laser-like focus on bottom-line results that produce real-world
business impact for our clients, said Schwartz.
Zeno Is Science-Driven
Jerry Epstein, president/CEO
of Zeno Group, which grew 19% to $19.9M, said the firms
culture attracts people with a diverse range of perspectives
including former CEOs, management consultants, and entrepreneurs.
They fuse creativity and advanced research analytics
to assure that our programs truly move minds and markets,
In this way, weve
built a different kind of agency, one with science-driven
approach that melds creativity to analytics with an eye
on delivering business results.
A&R Partners, up 17%
to $14M, headed by Bob Angus, cited exciting
new clients such as Mozilla, maker of the open source Firefox
browser; Cree, pioneer developer of environmentally friendly
LED lighting; Xantrex, designer and maker of energy products
and controls; LANDesk, leader in IT management and efficiency,
and Checkpoint, security/firewall firm.
A&R has a clean
tech practice that Angus feels will build revenue
and also have a positive effect on the environment.
New training programs
were created for staff that now totals 110. Turnover was
less than 6% in 2005.
Qorvis, growing 19% to
$18.2M (eighth biggest firm), cited its unique business
model top-heavy and client-service focused, with
no timesheets, silos or glass
(Continued on page 6)
Edition, March 8, 2006, Page 6
from page 5)
Partner Michael Petruzzello said this model ensures
communication, camaraderie and opportunity for our employees
at every level.
wins included Jim Beam brands, the British Embassy, U.S.
Sugar Assn., Pratt and Whitney, the Bozzuto Group, and Star
practice areas include media training, research and creative
Offers Strategic Splash
new to the rankings, grew 31% to $13.3M and 11th place on
the list, nearly missing the top ten.
Founded in 2000, its CEO
is Todd Smith, who has eight years of experience in automotive
sales and marketing, four each with Saturn and Chrysler.
Chief strategist is Mike Rosenau, who managed PR launches
for Jeep Grand Cherokee, Jeep Wrangler, Dodge Dakota and
other DaimlerChrysler models.
A Clear!Blue-created military-themed
stunt involving seven skydivers helped introduce the Jeep
Commander to 2,800 dealerships in 2005.
Clear!Blue created a new
products preview party for the 2006 National Hardware Show
in New York that drew 50 major consumer media.
Andrea Wood, Chicago managing
director, was a SVP at Golin Harris. She has 16 years in
New clients in 2005 included ACCO Brands, Masterlock, Stanley
Tools and Valvoline.
The firm believes in making
a splash that furthers client goals.
Steve Harris, who returned
to General Motors in March as VP of global communications,
was chief communications officer at Clear!Blue.
John Seng, whose Spectrum
Science Comms. grew 35% to $8.6M, said its100% focus on
healthcare is a key to its success.
We hit the ground
running faster and smarter on the issues and situations,
he said. Were in constant contact with healthcare
media and advocacy organizations, delivering value that
I believe is unmatched by larger firms.
Seng, who was one of several
Hill & Knowlton executives who left in 1992 and were
sued to prevent them from taking either accounts or H&K
employees, said, I cannot overstate the importance
of freedom from pushing revenues up to a mega-agency structure.
Clients benefit from senior
counselors who are integrated on their accounts rather
than drive-by strategists with high billing rates,
said Seng, who noted the firm has low staff and client turnover.
Has Blue Chip Clients
Booth, president of M Booth & Assocs., up 32% to $8M,
cited expanded ongoing relationships as well as new clients.
business came from Unilever for Vaseline, Country Crock
and Ben & Jerrys. The Remy Cointreau USA account
expanded with JMR Easy Drinking Whiskey and Cointreau.
MGM Mirage account grew with SKYLofts, West Wing and The
Signature at MGM Grand.
clients included JCPenney, Akzo Nobel, Siemens, Global Home
Products U.S. Virgin Islands Dept. of Tourism, and Maidenform.
cited the firms laser-like focus on increasing
work with existing clients. Adding creative capabilities
in new media and viral and guerilla marketing brought added
values to clients, she said.
Grew 18% to $6.5M
Ken Makovsky, chairman
of Makovsky & Co., said outstanding client
retention (exceeding 80%) and new clients drove the growth.
Major new clients include
a large division of Schwab; Pfizer Worldwide; Eisai Pharmaceuticals,
one of Japans largest drug companies; OCharleys,
restaurant chain with nearly $1 billion in sales, and Western
& Southern, a Fortune 500 diversified financial
Makovsky also pointed
to strong morale evidenced by the fact that 100% of those
queried would recommend the firm to a prospective employee.
Our commitment to our core business areas is exemplified
by our new branding program and brand energy line,
The Power of Specialized Thinking, he said.
42% to $6.2M
One of the biggest gains
on the list was shown by Davies, Santa Barbara, Calif.,
up 42% to $6.2M.
Clients include ExxonMobil,
Harrahs Entertainment, The Home Depot, Tiger Woods
Foundation, Centex, and Westin.
CEO John Davies said the
growth is due to quality work, specialization, financial
diversification, and dedicated new business efforts.
New business is aimed
at core practice areas of the firm real estate, healthcare
and energy. This builds relationships, establishes
trust, and helps us to understand the decision making process
of prospects, resulting in new accounts across the U.S.,
More than 75% of new clients
come from referrals. Davies says about 90% of its new business
pitches result in wins.
Last year was the fourth
straight year of growth. Average monthly revenue per client
is $18,000 and no client accounts for more than 10% of gross.
A commitment to revenue
diversification protects the firm from any client leaving
after completion of a successful project, said Davies.
GH, B-M VIE FOR DOW CHEMICAL.
GolinHarris and Burson-Marsteller
remain in the running for the Dow Chemical PR account, according
to Terri McNeill in the chemical giants media relations
Several teams including
those representing Publicis Groupe (Manning, Selvage &
Lee) and Omnicom (Porter Novelli) met with Dow officials
The depth of thinking
and the caliber of people from all of the agency teams made
it a particularly challenging decision, McNeil said
in an e-mail.
Dow will continue talking
with GH and B-M and their respective holding companies:
Intepublic and WPP Group. The final decision on the review
is expected within several weeks, said McNeill.
Dow is looking to consolidate
its estimated $15 million communications budget at a single
Edition, March 8, 2006, Page 7
Edition, March 8,
2006, Page 8
Independent PR firms across
the U.S. are flourishing and dont mind talking
about their businesses and providing backup documents to
prove their numbers (page one story and chart).
this year were 130 independents, up from 117 last year.
Average gain in the top 25 was 18%.
talked to principals at about 50 firms in the past few days
in gathering statistics and getting quotes on their business
practices, we found them to be happy and excited about the
work theyre doing and willing to talk about it at
principals at firms that showed losses claimed they couldnt
wait to get to work each morning.
like promoting products and services of clients and have
an almost unlimited bag of tools for this. They produce
a big bang for a small buck and
it gives them great satisfaction.
a few of the principals, both in tiny firms and bigger ones,
once worked for conglomerate-owned PR firms and are glad
the experience is over.
of those who sold out to Shandwick in the late 1980s recalled
CFO David Slobom going from agency to agency demanding 25/25/25,
meaning 25% growth each year, 25% profit, and 25 days on
to achieve these targets meant firings, shifting to the
offices of another Shandwick firm, and/or scratching the
name of the firm. Only a couple of names of the 33 firms
of other conglomerate-owned PR firms told similar stories.
of those who quit conglomerates were hit with expensive
lawsuits charging theft of business. It cost them a bundle
to win their independence.
firms owned by the conglomerates are in the fourth year
of a deep freeze about any statistics of the firms.
Fear of violating Sarbanes-Oxley is cited.
SOX provides for jail
terms and up to $25 million in fines for misleading statistics
of public companies.
However, PainePR, Irvine,
Calif., which was sold to the public Cossette Communication
Group, Canada, last year, was able to obtain a W-3 payroll
report from Cossette showing about $5 million in wages to
back up its claim of $11.4M in net fees (up 23%). Paine
has been shifted from the ranking of independent firms to
the ranking of ad-agency related firms.
Cossette is the largest
ad/PR firm in Canada with 1,450 employees and gross of $198M
Canada has a law similar
to SOX that prohibits dissemination of false information
CPAs, commenting on the
position of the holding companies that accounting principles
differ from country to country, say that wage and staff
totals are mere compilations and are not subject
to differing principles or interpretations.
to reach the conglomerates for comments on their PR practices
were mostly unsuccessful. Calls were not returned to spokespeople
or executives at Omnicom, Interpublic and Havas (based in
Paris). OMC has publicly said that its PR component grew
2% in 2005.
Eve Magnant, spokesperson
for Publicis (Publicis Dialog, Manning, Selvage & Lee),
called from Paris and said the only categories Publicis
reports are advertising, marketing services and media, which
account for 46%, 28% and 26% of revenues, respectively.
PR is part of marketing
services which includes sales promotion, healthcare and
customer relationship management.
Asked if someone in the
U.S. could go over Publicis financials with us, she said
no one in the U.S. is authorized to speak for the company
and she would plan to see us on her next trip to the U.S.
The same request was made
to a WPP spokesman in New York but no arrangement has yet
been made for this. WPP CEO Martin Sorrell, responding via
e-mail, directed us to WPP financial statements on the companys
website and also sent us copies of them.
He challenged the JPMorgan
analyst report that said PR and public affairs
of WPP was up 4% in 2005 and the Yahoo!Finance report that
puts WPP debt at $4.25 billion and debt/equity ratio at
We have requested a meeting
with WPP to examine these different financial reports.
independent PR firms are offering a wide range of services
these days up to and including paid advertising.
These include marketing,
media relations, grassroots organizing, issue ads, media
training, worldwide PR affiliates, corporate strategy, video
production, direct mail, special events, legislative programs,
lobbying, branding, art and cultural programs, web marketing,
multicultural outreach, litigation support, financial and
capital markets, opinion research, market intelligence,
celebrity PR, and sales promotion, to name some of them.
one of the 117 firms on the 2004 ranking did not return
this year even though 25 of the firms ranked in 2004
had either flat or negative years in 2005. Joining the list
in 2005 were 13 firms new to the list and two that returned
after dropping from the rankings ... the
meaning of this is that rankings, including the rankings
by city and by PR specialties, draw attention to the firms
and help bring in new business.
Ranking positions can
be used in promoting the firm and winning publicity in local,
national and trade media.
They can be cited to client
prospects as an indication of the national recognition of
benefit of the rankings is that they draw attention
to the PR counseling industry, showing how successful most
of the firms are and arousing the interest of client prospects
in what PR firms have to offer.