The eight page weekly is the only PR newsletter on LEXIS/NEXIS.
Edition, September 6, 2006, Page 1
PENTAGON REVIEWS IRAQ PR CONTRACT.
The U.S.-led military
force in Iraq has issued an RFP to review its multimillion-dollar
strategic communications contract with The Rendon Group
for PR in the war-torn country.
Citing the brazen insurgency
(described as anti-Iraqi forces bent on civil
war in the RFP), the Multi-National Force-Iraq based at
Camp Victory in Baghdad is dangling a two-year PR contract
worth up to $20M.
The work described also
appears to mirror efforts initially handled by the Lincoln
Group shortly after the U.S.-led invasion in 2003.
A contracting officer
for the U.S. Central Command in Baghdad confirmed that The
Rendon Group currently holds the contract being reviewed.
The military wants a firm
to assemble a crack team of 12 to 18 talented/educated
communicators to support all aspects of Coalition
media communications throughout Iraq and the Middle East.
That includes media relations (Western and Arabic), communication
research, media training, monitoring, and other PR services.
The MNF identifies the
core objective of the PR work: Engage
and inspire targeted audiences.
The Rendon Group did not
return a call.
The RFP was issued on
Aug. 23 and proposals are due by Sept. 6.
IND. SEEKS FIRM FOR DISABLED
The Indiana state agency focused on developing policies
and awareness of disabled Hoosiers is on the hunt for a
PR firm to build up its outreach capabilities.
The Indianapolis-based Governors Council for People
with Disabilities has earmarked $250K for the first year
of a PR contract that could stretch out to four years.
Borshoff Johnson Matthews, an Indianapolis-based PR firm
that is part of IPREX, has recently handled outside PR for
Community and media relations, public education, editorial/publishing,
and further development of its flagship campaign Disabilities
Awareness Month are all expected of the winning bidder.
More than half the $250K annual outside PR budget is earmarked
for a firm to develop its month-long disabilities campaign
The GCPD's work has stretched from getting disabled citizens
involved in the voting process to setting up displays of
disability-related books in libraries and having citizens
monitor handicapped parking spaces.
Proposals are due Sept. 28.
PALMER DEPARTS PS FOR SYSCO.
Mark Palmer, former senior director of global communications
for Enron through the energy companys 2001 tumble,
has been named president of communications and collaboration
for Houston-based food service company Sysco.
Palmer departs a managing director post at Public Strategies
for the new position. At PS, he headed the well-connected
firms media relations practice.
Palmer was senior VP and managing director of Enrons
global communications operation both before and after its
bankruptcy filing. He was previously VP of PR for Enron
North America and director of PR.
Earlier he held a senior communications post at Fina Inc.,
a petroleum sector company in Dallas.
Sysco markets food products and equipment for restaurants,
schools, hospitals and the hospitality industry. Sales in
2006 were $32.6 billion.
WAL-MART GIVES DACH $3M IN
Former Edelman vice chairman Leslie Dach received $3M in
Wal-Mart Stores shares with his decision to take the executive
VP post at the retail giant.
Dach, on Aug. 28, received 67,522 in restricted stock that
fully vests in two years. Wal-Marts shares closed
at $44.43 on that day.
He also received 168,805 in stock options pegged at that
$44.43 price. Forty percent of that grant vests in two years,
35 percent in three years and 25 percent in five years from
the Aug. 28 grant date.
Wal-Mart filed a Form 4 disclosure statement
with the Securities and Exchange Commission that outlined
Dachs restricted stock and options grant.
Dach is responsible for Wal-Marts corporate affairs
and government relations. He reports to CEO Lee Scott.
EDELMAN LEAVES CPRF.
Edelman, the largest independent PR firm with $261 million
in fees in 2005, has not renewed its membership in the Council
of PR Firms.
Annual dues for firms with more than $80 million in U.S.
fees are $40,000, reduced two years ago from $50,000.
Members pay 0.65% of their U.S. fees to a maximum of $40,000.
Minimum dues are $2,500.
Kathy Cripps, Council president, said the Edelman firm
felt it was not necessarily using the resources
of the Council. She said she would welcome Edelman
back if it should decide to return, calling Edelman
a very important voice in the industry as the largest
(Continued on page 7)
Edition, September 6, 2006, Page 2
H&K NAME USED TO DUPE.
A member of a prankster
group posing as a Hill & Knowlton staffer on Aug. 28
was able to get a fellow imposter on a dais to speak next
to the Louisiana governor and New Orleans mayor at a press
The stunt has ticked off
reporters, officials in Louisiana, and hundreds of contractors
at the event and caused a minor headache for H&K.
These hoaxers have
absolutely no connection to our firm, said Gene Reineke,
COO for H&K U.S. Reineke said federal officials told
the firm that its name was used by an imposter to schedule
his appearance at the Louisiana conference. That same individual,
who has been identified as part of a group called the Yes
Men, also appeared at the press event, identifying himself
as a representative for the U.S. Dept. of Housing and Urban
Development. That federal agency is not a client, H&K
The event featured Gov.
Kathleen Blanco and Mayor Ray Nagin discussing rebuilding
efforts in the aftermath of last years hurricanes.
A member of the Yes Men group posing as a HUD official followed
Blanco and Nagin on the dais and said that local housing
developments slated for demolition would be rehabilitated
instead. His remarks were initially reported by some media
and reportedly cheered in one instance by the contractors
present. The Yes Men group contends that the condemned housing
developments will be replaced with condominiums or other
housing out of financial reach to previous occupants.
The Times Picayune
reported that a group of journalists later huddled around
the fake HUD officials the H&K imposter posed
as the HUD officials press secretary asking
questions about the apparent policy reversal. Some news
organizations, the paper said, sent out breaking news alerts
to the major development before learning it was a fake.
The Yes Men, who have
orchestrated subterfuge events they call them identity
correction exercises targeting Halliburton,
Dow Chemical and the World Trade Organization, told CNN
that the group wanted to focus attention on a lack of affordable
a Washington, D.C.-based consulting and events company,
organized the meeting and was initially contacted by the
NAGIN COURTS BIG APPLE.
New York PR firm Ken Sunshine Consultants handled logistics
and PR for a delegation of New Orleans officials that made
a pitch to New York investors that the devastated Gulf Coast
city is open for business.
N.O. Mayor Ray Nagin, who has been under fire for caustic
remarks about the yet-to-be-developed World Trade Center
site, led a group of business leaders, tourism officials
and politicos to the Big Apple Sept. 1-2 to make the pitch.
Nagin referred to the WTC site as a hole in the ground
on 60 Minutes when pressed about the Big Easys
slow recovery. He emphatically apologized again while in
KSC is well-known in entertainment and political circles.
Sunshine is a former chief-of-staff to New York Mayor David
WS WORKS TO TORPEDO RAIL LINE.
Weber Shandwick is counseling the Rochester Coalition,
which is funded by the world-class Mayo Clinic, and its
spirited opposition to a plan to build a third rail line
to transport coal from Wyomings Powder River Basin,
the nations richest coal deposit.
The Coalition, which includes Rochester (MN) Chamber of
Commerce and the local government, objects to the 34 or
more high-speed mile-long coal trains that will travel only
blocks away from patients being treated at Mayo.
It also believes that a $2.3B federal loan guarantee to
the Dakota Minnesota and Eastern line will never be repaid.
DM&E says the line is needed to boost national energy
self-sufficiency and end the logjams at the Basin. Union
Pacific and Burlington Northern Santa Fe are the two-carriers
that serve the Basin.
It draws support from a group called Growth Opportunities
through Rail Access Coalition, which recently hired Jafar
Karim, the former legislative director for South Dakota
Republican Senator John Thune, as its PR spokesperson.
GoTrac claims the DM&E line will result in lower electricity
rates and more economic development.
Fifty-five of the 56 cities along the proposed route have
okayed the line.
Rochester is the sole holdout, and its supporters staged
a noisy protest there on Aug. 27.
DM&E is waiting for final Federal Railroad Administration
approval for the federal subsidy, which would be the biggest-ever
U.S. loan to a private company.
That decision is expected in October.
FD PROMOTES STEM CELL NEWS.
Advanced Cell Technology has tapped Financial Dynamics
to handle media regarding its blockbuster development procedure
of creating human embryonic stem cells by using an approach
that does not harm the embryo.
Nature, the scientific journal, broke the story
that the New York Times gave front page play on Aug.
The paper ran an editorial in support of ACT on Aug. 26,
saying its work demonstrates the great lengths to
which scientists must go these days to shape stem cell research
to fit the dictates of religious conservatives who have
imposed their own view of morality on the scientific enterprise.
The Vatican is among those religious groups. Rome specifically
criticized the ACT procedure on Aug. 28 saying it doesnt
solve ethical problems surrounding embryo manipulation.
Robert Stanislaro, the FD staffer in New York works on
the ACT account.
Alameda, CA-based ACT uses The Investor Relations Group
for outreach to the investment community. James Carbonara
is in charge of that.
ACT cancelled a planned private placement of $11.3M debentures
and warrants after receiving commitments of $13.5M in financing
following last months stem cell news.
Edition, September 6, 2006, Page 3
PRSA: NO PRESS AT ETHICS
The PRSA board has ruled
that reporters will not be able to listen to the discussion
of ethics on three teleseminars set for Sept. 5, 12 and
A statement via PR manager
Cedric Bess said the ethics seminars will not be open
to the media. This will allow for and encourage an open
and candid learning environment for the participants who
may be discussing sensitive issues.
The teleseminars are to
discuss recent high-profile ethical problems ripped
from headlines, bylines and web blogs.
The no-press decision
apparently was made by the board. No attribution is given
for the decision.
Linda Cohen of the Caliber
Group, Tucson, who became chair of the board of ethics and
professional standards this year, said she agrees with the
decision of PRSA.
Other BEPS members taking
part in the teleseminars, which cost $190 for members and
$290 for non-members, are former BEPS chair Robert Frause
of the Frause Group, Seattle; James Lukaszewski of the Lukaszewski
Group, White Plains, N.Y., and Emmanuel Tchividjian of Ruder
Finn, New York, where he has been ethics officer the past
PRSA had an ethics
summit March 22, 2005 at h.q. to which reporters were
barred. They were allowed to ask questions at a teleconference
PRSA COO Catherine Bolton,
answering reporters questions at the teleconference,
said young PR pros need to see the benefits of acting
ethically and see how it is applied to some
basic day-to-day activities.
Is Ethics Month at PRSA
The 90-minute panels,
part of the celebration of Ethics Month at PRSA,
will include 70 minutes of presentations by the four members
of BEPS and 20 minutes at the end of the teleseminars during
which participants may question the panelists.
The panels are entitled,
Resolving Bad Ethical Practice Situations.
JRC EXPLORES SALE OF N.E.
The Journal Register Co. is exploring the sale of its 25
newspapers in Rhode Island and Massachusetts.
The so-called New England cluster generated $40M in revenues
in revenues during the past 12 months, and reported a $9M
operating cash flow. The papers include The Herald News
(Tauton, MA) and The Call (Woonsocket, RI).
JRC CEO Robert Jelenic says the potential divestiture would
allow the Yardley, PA-based company to concentrate on its
fast-growing online operations.
JRC operates more than 220 websites that are affiliated
with its 27 daily and 366 non-daily publications in seven
geographic regions. It also runs a network of employment
Dirks, Van Essen & Murray is advising JRC.
has been upped to VP-strategic marketing, promotion &
comms. at NBC Universal Sports & Olympics. Before joining
NBC in '03, he was with USA Triathlon and the Dallas Mavericks.
VILLAGE VOICE SACKS EIGHT.
The Village Voice has cut eight staffers including
Robert Christgau, its longtime pop music critic. He had
been writing for the paper since 69.
Five of the group were top editors in its arts department,
a traditional VV strength. Ed Park, who was in charge of
books; Elizabeth Zimmer, dance editor, and Jorge Morales,
theater editor, were among those dismissed.
Village Voice Media Management, the Phoenix-based holding
company that owns the Greenwich Village weekly, says the
layoffs are part of a reconfiguration to make the editorial
department more dependent on writers than editors.
David Blum becomes the new editor of the VV on Sept. 12.
VIACOM BETS ON BET ONLINE.
Viacom's BET Networks is buying out partners in its BET
Interactive unit. Those include Microsoft, News Corp., Liberty
Media, IAC/Interactive and hip-hop mogul Russell Simmons.
The online media site for African-American content and
targeted brand advertising was launched in `00.
Viacoms buyout is part of its plan to craft a multiplatform
strategy that is fueling all of its many media-centered
BET Interactive is headed by Michael Pickrum. It has registered
more than 3.6 million users and generates 2.6 million in
total monthly unique visitors, according to its June 2006
TIME WARNER TO UNLOAD TIME
Time Warner, which has been reeling since its 2000 merger
with AOL, could right itself by selling its venerable magazine
group, suggests an article posted on Slate.com.
Daniel Gross sees signs the largest media conglomerate
isnt exactly pinning its future on the periodical
The company's flagship Time is saddled with an aging audience
that is becoming less relevant to advertisers. While
it can make eminently respectable profits for some time,
it won't provide the kind of growth demanded by public shareholders,
Gross also notes that TW CEO Dick Parsons is mulling an
08 race for New York City Mayor. His successor Jeffrey
Bewkes came up through TW's entertainment ranks.
Time Inc., which owns Fortune, Sports Illustrated,
People and more than 320 other titles, accounts for
about 13 percent of TW's revenues and operating profit.
The collection accounts for 23 percent of the dollars spent
for U.S. magazine ads.
A Time sale could be a lucrative multi-billion dollar deal
to private equity firms such as the Blackstone Group, Kohlberg,
Kravis & Roberts or Carlyle Group, which has added Norman
Pearlstine, the former Time Inc. editor-in-chief, to its
line-up to scout for media deals.
news continued on next page)
Edition, September 6, 2006, Page 4
OMC COZIES UP TO TIVO.
Omnicom has forged an
agreement with digital video recording company TiVo, which
created a burgeoning industry for set-top boxes that allow
viewers to record TV programs and easily skip commercials.
Under the deal, Omnicom
Media Group units OMD and PHD will purchase advertising
and audience measurement research from TiVo.
The companies will also
develop a study on DVR user behavior.
TiVo set up an audience
research and measurement unit last month to analyze DVR
viewing down to second-by-second tracking. It says that
data can be used as a gauge for the effectiveness of advertisements.
The ad industry is closely
watching the development of DVR technology because of a
belief that most users skip ads when watching or recording
SPJ REJECTS INDIVIDUAL VOTES.
Delegates of the Society of Professional Journalists, meeting
at the annual SPJ conference in Chicago Aug. 24-27, defeated
by 70-65 a bylaw that would have replaced delegate voting
with votes by all 9,000 members.
The members would have been able to cast their votes in
person, by mail, or e-mail.
Delegates would continue to meet at the national conference
to discuss bylaw changes and other matters in person.
Chapters are allowed one delegate for each 50 members or
portion thereof. There are about 100 delegates.
David Carlson, 2005-2006 president, said that nearly 40%
of the members don't belong to a chapter and are therefore
deprived of their voting rights.
He said the delegate system is unjust and that
SPJ is the only journalist group that uses such a system.
Every member deserves a voice in who leads the organization,
The SPJ website said that a passionate debate
lasting more than an hour took place over the proposal.
Delegates opposed to the bylaw said chapter members were
not informed about SPJ matters, didnt care about the
election of officers, and that an informed vote required
delegate interaction at the conference.
Carlson said journalists should be for openness
and wondered how delegates could defeat the motion and
not feel guilty about it.
He promised to bring it up for another vote next year.
The same bylaw change was tabled two years ago.
WALSH TO MCGRAW-HILL.
Patricia Walsh has joined McGraw-Hill as VP-communications
and marketing in its information and media group. She will
oversee properties such as BusinessWeek, J.D. Power
and Assocs. and ABC-affiliated TV stations in Denver, Indianapolis,
San Diego and Bakersfield.
Walsh had been a senior VP in Ruder Finn's corporate branding
Earlier, she held editorial and PR positions at Dow Jones
30 IS MAGIC NUMBER,
EDITORS TELL EPPS.
There are 30 celebrities that Us Weekly covers on
a regular basis, said Dina Sansing, deputy editor, so the
best way to get ink is to tailor a pitch to one of those
It's a pretty easy process, she told an Entertainment Publicists
Professional Society meeting in Hollywood on Aug. 17. Just
read the magazine to find out who is part of that charmed
group of 30, and deliver a pitch.
She said though celebrity is the magazine's focus it also
has a large TV and movie section, so there are lots
of opportunities in terms of products in every way that
relate to celebrities.
Us is interested in life changes, she said.
An engagement, a breakup, a pregnancy, or a birth
and that's when they (celebrities) become interesting.
Sansing is at [email protected].
TV Guide also lives by the rule of 30, according
to its West Coast bureau chief Craig Tomashoff.
Were interested in whats being said on some
30 shows we follow, instead of talking to 30 celebrities.
You really need to have a compelling reason for putting
your client in our magazine, especially if its a show
that is 57th in the ratings, he said.
Tomashoff ([email protected])
covers music, film, award shows, trends/industry news and
the television shows Amazing Race, CSI
and Medium. He wants to get pitches, but warned
the publicists to read the latest magazine. If you
read the magazine you see we like LOST and every
time we cover it sales go up. Desperate Housewives,
too, is one of our favorites to cover. If youre not
working with one of the top TV shows, there has to be a
really good reason to cover it, he said.
Linda Massarella, deputy bureau chief for In Touch, warned
the publicists to play straight with her. Ive
been in journalism for 20-years and I dont like to
be lied to, she said. I have this combative
streak, so when I ask a publicist something and she denies
it, and it turns out to be true, I will call her up and
say, You lied to me.
Massarella ([email protected])
noticed a new trend among magazine editors. Magazines
are trying to get rid of the middle man in advertising,
she explained. At In Touch, Ive noticed that
LOreal, for example, might have a booth at an a event
and work advertising copy into the story, but first going
over the ad agents and straight to the editors with their
Another nugget: I hate getting huge things in the
mail. ...If a publicist sends a freebie, the product is
given to a womens shelter.
Ramin Zahed, editor-in-chief, Animation Magazine,
needs two months lead time for pitches. I read all
my emails, but if you want to call after a short email pitch,
thats okay, he said. Zahed is at [email protected].
His magazine promotes the art and the business behind the
field of animation, focusing on studios, production companies,
films, the creators, the artists, the designers, post houses
and the effects team.
6, 2006, Page 5
OF PR FIRMS
TAPS WS, KETCHUM.
Shandwick and Ketchum have replaced Lime PR on discount
furniture marketer Ikeas U.S. PR account.
Helsingborg, Sweden-based company, which markets affordable
solutions for better living and is known for its large
blue and yellow stores, said it asked targeted PR
firms to submit proposals in June.
was invited to pitch for the review and did so. The Kirshenbaum
Bond and Partners unit landed the account when it acquired
New York-based Jericho Communications, Ikeas PR firm
for a decade.
WS (Interpublic) and Ketchum (Omnicom) will handle the accounts
from New York. A budget figure was not available.
BUSINESS BOOMS FOLLOWING COKE
Tara Solomon, co-owner
of Tara Ink celeb/fashion firm in Miami, says everybody
in Miami nightlife circles is talking about the cocaine
bust of her fiancé and business partner Nick D'Annunzio.
"A little infamy is good," she told Page Six of
the New York Post.
D'Annunzio was arrested
during his 34th birthday party celebration last week at
Miami's Forge restaurant. He allegedly had two bags of cocaine.
"Nick keeps saying he's the new Kate Moss. It's not
like he's some big dealer. It's really a very minor thing
in the scheme of life," she told the paper.
Solomon says she has already
signed a client since D'Annunzio's arrest and has met with
several other potential clients. The former Miami Herald
advice columnist says she is not a casual drug user,
and feels that her beau does not have a problem with drugs.
include Chanel, Louis Vuitton, Christian Dior Clairol and
has acquired entertainment branding and content development
and plans to merge it with the firms own entertainment
marketing unit. ...French/West/Vaughan,
Raleigh, N.C., has severed an affiliation with Manning Selvage
& Lee and joined the IPREX network of PR firms. FWV
said competition with MS&L made the relationship no
longer practical for either party. ...Maya
Advertising and Communications, Washington, D.C.,
has produced the first HDTV documentary about D.C.s
Latino community. The production, which will be shown on
Sept. 13 at the Inter-American Development Bank, is backed
by the Mayors Office on Latino Affairs. ...Flowers
Communications Group, Chicago, which focuses on African-American
PR, has set up an Hispanic unit under the direction of SVP
Joseph Nebolsky de Ochoa and account director Gigi Ybarra.
The duo left jndeo co. for FCG. ...Berk
Communications, a New York-based entertainment PR
and events firm, plans to set up a Los Angeles presence
with the appointment of former Lizzie Grubman PR A/S Rachel
Krupa as an assistant VP. Krupa is slated to join Oct. 1
and handle clients like Jay Zs 40/40 Clubs and NBA
players Elton Brand and Corey Maggette.
& Associates, New York/Savient Pharmaceuticals;
ImageWare Systems, biometrics and security ID technology;
Sequenom, genetic analysis products; Akeena Solar, and Softwave
Media Exchange, advertising media inventory marketplace.
Lori Communications, New York/LaurEss, mineral cosmetics,
for national PR.
Communications, Sloatsburg, N.Y./Legal Marketing
Assn., for media relations surrounding the groups
endorsement of revisions to ethics rules that govern legal
PR, Knoxville, Tenn./Education Consumers Foundation,
Virginia non-profit focused on education policy; SmartBank,
state-chartered commercial bank; Flemings Prime Steakhouse
& Wine Bar; Holly Flats Properties, for marketing and
sales program support for its Timberlake residential development,
and River Shoals, as AOR for the new development.
Barshinger, Chicago/LexisNexis, as AOR for marketing
comms. for its legal and tax groups.
Marketing, St. Paul, Minn./National Marine Manufacturers
Assn., for PR for its 2007 Minneapolis Boat Show and 07
Northwest Sportshow, slated for January and March, respectively,
at the Minneapolis convention center.
& Knowlton, Houston/Kaneka Nutrients, for consumer
marketing and PR support for its CoenzymeQ10 brand.
Montgomery Inc., Houston/Network Intl; Denis
Seafood House; The Houston Polo Club, and The Inn at Dos
Brisas, for marketing comms.
PR, Dallas/World Digital Media Group, music and digital
content venture by RadioShack, Sirius, EchoStar Comms. and
CC Entertainment, as AOR.
PR & Marketing, Las Vegas/Southern Nevada Harley-Davidson
Sales, for launch of a new dealership and retail store.
PR, Denver/Thousand Hills Venture Fund, venture capital
fund focused on Rwandan companies, for PR.
+ Associates, Seattle/ColdHeat, tool maker, for communications.
Communications, Portland, Ore./Cadence Management
Corp., project mgmt. training courses, for event support;
the Lemelson Foundation, inventor and entrepreneur organization,
for media relations; Oregons Future, for web revamp
and rebrand of its magazine, and Morrison Child and Family
Services, for corporate alliance support.
PR, Lake Oswego, Ore./Wireless Industry Partnership,
as AOR for global comms.
Finn, San Francisco/Fosters Wine Estates Americas,
for national PR for its Beringer Vineyards Napa Valley promotional
Edition, September 6, 2006, Page 6
VETS SET UP SHOP.
former executives of broadcast PR shop KEF Media Associates
have set up a firm, Firstline Media, with a presence in
Chicago and Atlanta.
Edmundson, former SVP for KEF, is a 20-year veteran TV reporter
and editor, heads Firstline Medias Atlanta office.
Paul Friefeld, former VP for KEF who also is a former broadcast
journalist, is in Chicago for the new venture.
new firm is aligned with Firstline Creative Resources of
Atlanta, a graphic arts and event planning firm.
can shoot b-roll, but its crucial to come up with
a strategy for every project, said Edmundson. Thats
where our experience is making the difference for our clients.
handles SMTs, VNRs, PSAs and RMTs.
ZCOMM BOLSTERS RADIO STAFF.
zcomm, a Bethesda, Md.-based
broadcast PR firm, has added three new staffers to its broadcast
Melissa Daddio, a veteran
radio promotions and marketing exec in the Washington, D.C.,
market, joins as a VP focused on the development of new
services and radio promotions.
Jaclyn Fortune, an A/S
on the DaimlerChrysler account at GMR Marketing, has joined
as a manager for radio promotions. Also, Abbey Cantor, an
intern, has been promoted to radio coordinator.
Strategic Services is handling grassroots and communications
work for SmokeFreeOhio, a campaign by the American
Cancer Society and other groups to create smoke-free public
places and workplaces in the Buckeye State.
M+R reports that the group
has turned in 185K signatures to the Sec. of State to get
the issue on the November ballot. That is double the required
number of signers, thanks to 3,000 volunteer online activists
who participated in the drive, M+R noted.
An online appeal also
raised $10K for the cause.
The firm also kicked off
a national campaign to highlight the 600K residents of Washington,
D.C., that do not have voting representation in Congress.
That work is for DC Vote.
Tesch, manager of sales and product partnerships
for Business Wire,
has been named Northern California regional sales manager.
The area encompasses the Bay Area, Silicon Valley and Sacramento.
...Romina Rosado has
been promoted to managing director for The
NewsMarket in Europe. She will handle business development,
newsroom integration and oversee the European launch of
the digital video delivery companys new product suite
slated for release later this year. The
Black PR Society of New York will fete its founding
members at a Sept. 14 mixer at Burson-Marsteller, 230 Park
Avenue South (19th Street). $20/non-members; www.bprsny.org.
...Mark Haefeli Productions
nabbed an Emmy nomination for its work for Paul McCartneys
concert in St. Petersburg, Russia.
Bough, SVP for Ruder Finn Interactive, to Weber Shandwick,
New York, as EVP of interactive and emerging media.
Rojas, comms. counsel and spokesperson for Consumer
Reports, to The Jeffrey Group, New York, as director
of client service.
Davis, U.S. recruitment manager for Burson-Marsteller,
to Marina Maher Communications, New York, as VP of talent.
She was previously a senior contract recruiter for CMP Media.
Neuman, a former Paragon Marketing Group and Arnold
Comms. exec, has opened Amplify Sports & Entertainment
in New York, a marketing agency focused on sponsorships
and alliances for athlete and celebrity-driven campaigns.
Branch, senior director of corporate communications
for Sony BMG Music Entertainment, has left for a director
post at luxury watch brand TAG Heuer. Branch, as director
of PR, strategic partnerships and events, takes over for
Livia Marotta, who left the Louis Vuitton Moet Hennessey
unit last month for Luxottica Group. She will report to
LVMH Watch & Jewelry North America President and CEO
Daniel Lalonde, based in Springfield, N.J. Branch was at
Sony for nine years, starting out as a PR strategist for
its electronics division. Earlier, she worked in PR for
Bergdorf Goodman for four years.
Hegarty, former director of PR for the Society of
Financial Service Professionals, to Schubert Communications,
Downingtown, Pa., as senior PR executive.
Krell, director of PR for the United Auto Workers
in Detroit, to The McGinn Group, Arlington, Va., as a senior
VP. He was with the UAW since 1993, following stints on
Capitol Hill during the 1980s.
Landis, PR director for Glasure Group, and Carolyn
Oehlerts, an account director for CKPR, to Paradise
Advertising and Marketing, St. Petersburg, Fla., as PR managers.
Sadowski, PR manager for LexisNexis U.S., to Seapine
Software, Mason, Ohio, as manager of PR. He held PR posts
with The Reynolds and Reynolds Co. and Dayton Area Board
Spataro, who headed interactive and new media practices
for Weber Shandwick and GolinHarris, to weblog and consumer-generated
media consulting firm Visible Technologies, Seattle, as
VP of intermediary marketing and sales.
Liu was promoted to managing director, Weber Shandwick
China. Darren Burns
has moved to WS from Interpublic sister firm GolinHarris
as MD for Shanghai and Guangzhou. Burns replaces Diane
Wu who has resigned effective early October. Also,
marketing services group manager for Intel, has joined WS
as a VP to head its corporate and tech practices in Beijing.
Forbes and Paula
Gomez to A/Es, rbb PR, Coral Gables, Fla.
Edition, September 6, 2006, Page 7
LEAVES CPRF (Continued
from page 1)
Other firms that quit
in the past several years included Ruder Finn, GCI Group,
Cohn & Wolfe and Sloane & Co.
President and CEO Richard
Edelman said that the firm has the utmost respect
for the remaining firms in the Council but, We disagree
with the Council on a few fundamental points. There
was no elaboration on these points in a statement issued
by Edelman on his blog.
It also said: We
have an abiding and shared interest in the issues facing
the PR industry from diversity to ethics ... we will continue
to be advocates for the PR industry to help all of us achieve
the full potential of the business.
Four of the top ten independent
firms ranked by ODwyers remain in the CPRF:
Waggener Edstrom Worldwide, No. 3 firm with $84M in 2005
fees; APCO Worldwide, $73M; Text 100, $52M, and Gibbs &
Not in the CPRF, besides
Edelman and RF, are the other firms in the top ten: Schwartz
Communications, Zeno Group of Edelman, Dan Klores Communications
and Qorvis Communications.
Six of the top 15 are
members of CPRF.
Edelman did not renew
as of January but the information is just now surfacing.
CPRF currently lists 101
members on its website. It had a peak of about 125 members
New members since January
are Alan Taylor Communications, Financial Dynamics Business
Communications, Solomon McCown, Thorp & Co., Trone PR,
360 PR, Anne Klein & Assocs., Eastwick Communications,
Imre Communications and Ron Sachs Communications.
The bulk of the approximately
$1 million in annual dues comes from the large PR units
owned by the five ad/PR conglomeratesOmnicom, WPP
Group, Interpublic, Publicis and Havas.
OMC units include Fleishman-Hillard,
Ketchum, Porter Novelli and Brodeur. WPP units include Burson-Marsteller
and Hill & Knowlton while Interpublic units in the CPRF
include Weber Shandwick and MWW Group.
CPRF, founded in 1998,
initially sought to collect fee income and staff totals
from the entire U.S. counseling industry.
Signed statements from
CFOs of PR firms were accepted as substantiation of the
figures and up to 10% of fees could be from paid advertising.
However, following passage of the Sarbanes-Oxley Act, the
Council decided to withdraw from ranking any PR firms because
the conglomerates no longer allowed any of their units to
report fee income or employment totals.
Fines and prison terms
are provided by SOX for false or misleading financial statements
by public companies or their subsidiaries.
Leaving the rankings compiled
by O'Dwyer were 21 of the top 25 firms that were in the
TOUTS KAZAKHSTAN AS BEACON.
Strategic Media, the Washington, D.C. PR and editorial shop,
placed a four-page advertorial in the September/October
Foreign Affairs, the high-brow political journal,
extolling progress made in Kazakhstan under the leadership
of Nursultan Nazarbayev.
Reaching for the Stars piece tells how Kazakhstans
stable government, religious and ethnic peace, growing
democracy and a diversifying and expanding economy has turned
it into a beacon for central Asia.
fate of Gregoire de Bourgues, the editorial coordinator
of the report, rocks that image of stability.
the very least, de Bourgues represents the rampant crime
and dangerous conditions that exist for foreigners in Kazakhstans
commercial center and former capital city of Almaty. (Nazarbayev
moved the capital to Astana in 97.)
Bourgues was stabbed to death on August 2 in an apartment
that he rented for several months while doing research for
the FA piece.
Kazakh government denies any political motivation behind
the killing though an official at Kazakhstans Journalists
in Danger organization, suspects that de Bourgues may have
uncovered information about the recent murders of two prominent
who has banned opposition parties and cracked down on the
press, is to visit the White House later this year, and
spend some time at the Bush family compound in Maine.
OGILVY HANDLES BUFFETTS
Ogilvy PR Worldwide is
handling the eBay auction of the Lincoln Town Car owned
by billionaire Warren Buffett.
The bidding runs from
Sept. 12-22. Proceeds benefit Girls Inc. That organization
is geared to girls from ages 6 to 18 who are largely from
single-parent homes with income of $25K or less. It works
to instill self-confidence in girls, and counts money management
among its various programs.
Buffetts car is
a four-door 2001 model with 14,000 miles on it. The car
comes equipped with Buffetts personalized Thrifty
vanity license plate.
Ogilvys Leslie Jones
is promoting the auction.
Buffett announced in June
that he plans to donate more than $30B to charity.
RF SQUARES OFF AGAINST JOELE
Ruder Finns Andy
Hopson is counseling Valassis, which filed a suit on Aug.
30 to break up its $1.3B merger with Advo Inc.
Valassis contends that
Advo provided it with materially false information
and failed to disclose significant internal control
deficiencies. The Livonia, MI-based company portrays
itself as a victim of fraud.
Advo, which is the nations
leading direct mailer, believes Valassis suit is baseless
and without merit. It dismisses the suit as a smokescreen
to hike the fact that Valassis is suffering from an extreme
case of buyers remorse.
Edition, September 6,
2006, Page 8
departure of Edelman from the Council of PR Firms (page
one) is another sign that the Europeanization
of the U.S. PR counseling industry is receding.
CPRS was founded in 1998
and bankrolled mostly by the five ad/PR conglomerates: the
U.K.-owned WPP; French-owned Publicis and Havas; Omnicom
(U.S.-owned but as secretive as the British and French),
and Interpublic, which grossly exaggerated its revenues
and is now in deep financial trouble.
The conglomerates were
bent on dominating the U.S. PR counseling industry including
taking over the job of reporting fee and income totals of
PR firms. They counted paid ads as PR, thereby
skyrocketing revenue totals. No proofs were sought from
PR firms, just CFO statements.
As of 1998, the conglomerates
had purchased 12 of the 13 largest U.S. PR operations.
Edelman was the only independent
in the top 13. It joined the CPRF although it was unlike
many of its fellow members. In quitting after eight years,
Richard Edelman cited disagreement with the Council
on a few fundamental points but did not elaborate.
The big PR firms paid
annual dues of $50,000 each to launch CPRF which was patterned
after the American Assn. of Advertising Agencies. Its initial
name was American Assn. of PR Firms.
Previously the ad agency-owned
PR firms had been active but restless members of the Counselors
Academy of PRSA, which toyed with firm membership for years,
the concept pushed by Mitch Kozikowski and Bob Dorf. But
PRSA ruled that neither the Academy nor any section could
have its own bank account and all funds were under the control
of PRSA. The conglomerate-owned PR firms were not about
to give $50K each to PRSA.
The Council, currently
with 101 members vs. about 125 at its peak in 2000,
lost steam in 2003 when WPP, OMC, et al ordered their PR
and ad agencies to stop reporting revenue or staff totals.
Sarbanes-Oxley provided jail terms and fines for any misleading
information and the conglomerates said different accounting
rules throughout the world made reporting hazardous.
With Edelmans departure, only four of the top ten
independents in the ODwyer rankings remain in the
CouncilWaggener Edstrom Worldwide, APCO Worldwide,
Text 100 and Gibbs & Soell.
Ruder Finn, second largest independent, quit in 2003, citing
CPRFs withdrawal from ranking PR firms. RF, paying
$40K yearly, also said firms three and four times as big
were only paying $50K. Sloane & Co., 29th largest firm,
quit in 2005, citing CPRFs tepid response
to the Ketchum/Dept. of Education/Armstrong Williams scandal.
Other losses included Cohn & Wolfe, GCI Group, Schwartz
Communications, KCS&A, and Stanton Crenshaw. Ten firms
joined in 2004 and a total of ten in 2005 and 2006 to date.
But there has also been attrition from mergers and firm
closings. The biggest recent arrival is Alan Taylor Communications,
13th biggest independent with 2005 fees of $13.2M. The others
have fees below $5M based on available data.
WPP, Publicis and
Havas have brought European attitudes of secrecy to the
Council. This is on top of the traditionally secretive
ad business and the highly secretive financiers who hold
the top posts at the conglomerates. Conglom units
PR accounts are now mostly undisclosed and their CEOs rarely
make public appearances.
Omnicom, while U.S.-owned, is headed by ex-CPA John Wren
who has given three interviews in four years. The secretive
culture of OMC, described in the New York Post Aug.
14, is one reason its stock is $20 below its high of $107
in 1999 and it has to buy back some 27 million shares to
prop up it up.
Another aspect of European business culture is its attitude
towards the trade press. Such press openly say they support
the industries they write about. U.S. trade press covers
All this secrecy may
have been too much for Richard Edelman, who has preached
openness and who has an active personal blog. U.S.-style
PR is at odds with the secret ways of European companies
and U.S. and European financiers. U.S. independent PR firms
are growing at a much faster rate than the conglomerate-owned
firms based on available data.
Tim Dyson, CEO of publicly-held NextFifteen (owner of Text
100, which has $52 million in fees and is in the CPRF),
said the firm operates in 25 countries and SOX has not stopped
it from reporting figures. He said the withholding of figures
by the conglomerates is bad for our industry.
Dyson, who researched sections 302, 404 and 409 of SOX,
said, I cant see any good reason why an agencys
revenues should not be reported...SOX has only provided
a fig leaf for holding companies.
The PRSA Ethics
Teleseminars Sept. 5, 12 & 26 have been barred
to the press by the PRSA board but PR manager Cedric
Bess has invited us to submit questions in writing to the
four ethics board panel membersLinda Cohen, Bob Frause,
Jim Lukaszewski and Emmanuel Tchividjian. We sent Bess 20
questions but the main one is how can PRSA justify keeping
the Central Michigan chapter proposal for governance reform
off the PRSA website? We also ask is it fair for PRSA to
allow Rhoda Weiss to be president next year when she has
shown such disdain for press relations and public appearances?
PR is under heavy attack (New York Times, Der
Spiegel, etc.) and current president Cheryl Procter-Rogers
is not taking up the offensive. Can PR and PRSA stand another
nearly silent president is our question? Lukaszewskis
writings indicate skepticism towards the press. Reporters
dont know about your business, dont care about
your business and cant care about your business,
he says in a volume on crises featured in the