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Internet Edition, March 7, 2007, Page 1


The National Fire Protection Assn. has issued an RFP designed to educate more than two million people in Mississippi about fire safety behavior.

The Magnolia State has the highest fire death rate in the nation due to a combination of high poverty and smoking. Many poor Mississippians are fire risks because they use stoves and portable space heaters to heat their homes. Mississippi also ranks among the top 15 states in smoking, the No. 1 cause of fire deaths.

The NFPA wants a campaign that focuses on four topics: smoke alarm installation/maintenance, cooking, heating and smoking. The PR firm will coordinate its education efforts with the state’s 541 fire departments.

The budget is set at $600K for one-year. Proposals are due March 30 and the work is to begin on May 1.

Lorraine Carli, VP-Communications at NFPA, is answering questions. She is at 617/984-7275 or [email protected].


The well-traveled Elizabeth Krupnick has joined headhunter Heidrick & Struggles International as senior VP & chief marketing officer. She had been running her own firm, TKO Communications Consulting, since `04.

Krupnick, 57, established TKO after exiting MasterCard International as senior VP-global communications.

Earlier she held key PR posts at BCom3 Group – the Leo Burnett entity – New York Life (senior VP-corporate communications), Dewe Rogerson (president), Prudential Life (chief communications officer) and Aetna Life & Casualty (senior VP-corporate affairs).


Interpublic reported $69 million in fourth-quarter `06 net income compared to a $23M year earlier loss as CEO Michael Roth works toward an `08 turnaround.

He downplayed a 1.3 percent dip in full-year revenues to $6.2B by playing up a 1.0 percent uptick in "organic growth."

That organic growth, according to Roth, was spearheaded by IPG's PR units (Weber Shandwick, MWW Group, GolinHarris) and the digital/direct mktg. units.
Roth said a key goal for `07 is to become "fully Sarbanes-Oxley compliant" by Dec. 31.

IPG posted an overall $32M full-year loss, down from a $272M `05 deficit. Roth labeled `06 a "solid year" as the company put a "strong foundation for the future in place." The CEO added that "there still remains much work to be done."


Independent PR firms reporting figures for the O'Dwyer ranking had a banner year in 2006 with 20 of the 50 largest showing jumps of more than 20%.

Five of the top 15 had gains of 20%+ topped by the 52% gain of Integrated Corporate Relations of Westport, Conn., financial specialist, to $17.5 million.

Qorvis Communications, D.C., was up 31% to $23.9M; Alan Taylor Communications, New York, was up 35% to $18M (second biggest growth in the top ten) and Schwartz Communications, Waltham, Mass., up 22% to $26.6M. 5W PR, for the third year in a row, led the entire list with a gain of 85% to $9.3M in fees and rising to No. 21 in the rankings.

Biggest gain in dollar terms was registered by Edelman, rising 23.9% to $324.4M. About $8M of the $62.6M gain was due to six months of fees of A&R Partners, which was acquired last year.

Other big gainers in the top 50 were Healthstar, New York, healthcare specialist, rising 65% to $6.6M; Coyne PR, Parsippany, N.J., generalist, rising 53% to $7.6M, and Cerrell Assocs., L.A., public affairs and environmental specialist, rising 38% to $5.6M.

New to the rankings are generalist Regan Communications, Boston, No. 12 with $15M in fees, and financial specialist Lippert/Heilshorn Assocs., New York, No. 16 with $10.3M in fees.

Conglomerate PR Firms Absent

PR firms of the five ad/PR conglomerates did not report fee/employee totals for the fifth straight year.

Omnicom said its PR firms (Ketchum, Fleishman-Hillard, Porter Novelli, etc.) bill $1.2 billion and had a 10% growth in 2006. This includes gains from acquisitions. OMC spent $311M on acquisitions last year. It has $432M in earn-out obligations through 2010.

WPP said PR fees without acquisitions grew 5.9% in 2006 and with acquisitions were up 12.4%. It said "particularly strong" results were posted by Ogilvy PR Worldwide, Hill & Knowlton, Burson-Marsteller, Cohn & Wolfe, Finsbury and Buchanan. PR fees of WPP are 10.1% of revenues of $11.4B or $1.15B.

Interpublic, which had a 1.3% drop in overall revenues to $6.2B for 2006, does not break out PR but said organic growth in PR was "spearheaded by Weber Shandwick, MWW Group and Golin Harris."

Edelman Sees Expansion of ‘PR’

Richard Edelman, president/CEO of Edelman, said "PR" is being expanded to include tasks formerly performed by ad agencies. PR is coming up with marketing ideas that can be carried out by traditional PR as well as

(Continued on page 6)

Internet Edition, March 7, 2007, Page 2


The Environmental Protection Agency’s radiation unit has moved to award a crisis PR contract to Widmeyer Communications without a competitive review.

The EPA’s Radiation Protection Division said Widmeyer is uniquely qualified to support the federal agency as it implements a multi-faceted crisis communication program for use in case of a radiological emergency.

The firm has previously conducted focus groups with EPA emergency responders and communicators to develop responses in the event of such a disaster.
The latest effort would include a background assessment, development of a discussion guide with an online capability, and recruitment of officials for interviews, among other tasks.

WC handled a disaster PR assignment last year for the Washington, D.C., area.


Josh Baran, who handled PR for Al Gore’s “An Inconvenient Truth” book/movie about the threat from global warming, has established RenewComm to provide “communications for the green industrial revolution.”

The former Edelman executive VP and Microsoft director of communications will counsel clients in the areas of renewable resources, green tech, clean energy, conservation, design and sustainable development.

He has counseled the Sierra Club, Natural Resources Defense Council, Amnesty International and Pediatric AIDS Foundation.

New York-based Baran is joined by Peter Kelley in Washington. He helped build the press shop at the National Environmental Trust and represented that group at the Kyoto, Japan, global warming treaty talks. Kelley also handled PR for American Rivers, League of Conservation Voters and Environment 2004.

RenewComm’s west coast operation is headed by Julie Buckner, former press secretary to California Sen. Barbara Boxer, who now heads the Senate’s environmental committee.


Clark & Weinstock has signed on as D.C. rep for Yahoo!, taking on such “hot button” issues as `Net neutrality, child protection and data security/privacy.

Vin Weber, the former Minnesota Congressman who opened C&W’s Washington office more than a dozen years ago, heads the 11-member Yahoo! team.

That squad includes the former legislative affairs aides to Presidents Bush II (Dirksen Lehman) and Clinton (Lisa Kountoupes), general counsel to the Senate Judiciary Committee (Jonathan Schwantes), aide to former Speaker of the House Newt Gingrich (Ed Kutler) and chief of staff to Democratic Senator Byron Dorgan (Niles Godes).

C&W joins sister Omnicom company Fleishman-Hillard on Yahoo!’s roster. The Internet company also relies on Outcast PR, which is part of Next 15 Communications Group.


The embattled New Orleans Police Department is looking for outside PR counsel to better communicate with the public and press amid national scrutiny of its operations.

Put under enormous pressure through and after Hurricane Katrina, the NOPD has recently taken criticism for alleged racial profiling in arresting illegal immigrants and has sparred in public with the city’s district attorney’s office.

The assignment is to include development of a strategy for public communications, coordination of media coverage and events, development of educational materials and briefing materials, and recommendations for the superintendent of police, Warren Riley, for more effective events involving NO police.

An RFP issued by the department calls for proposals by March 22. An evaluation committee of administrative personnel and the chief of the department’s Public Integrity Bureau will recommend finalists to Riley.

The move comes as the city’s Convention and Visitors Bureau turned to Weber Shandwick last month to bolster business and leisure travel to the city.


Public Strategies is bolstering PR for the record $43.8 billion buyout of Texas power company TXU, which is trying to make the transition from public to private company and go green in the process.

Equity firm Kohlberg Kravis Roberts & Co. is the lead investor in the largest leveraged buyout in history with equity firm Texas Pacific Group and Goldman Sachs & Co. playing key roles.

The buyout is expected to face regulatory, political and environmental concerns and the parties involved immediately moved to head off any immediate fallout. The news release announcing the buyout said the deal has been endorsed by Environmental Defense and the Natural Resources Defense Council. The companies also said TXU will implement an energy demand program with a $400M investment in conservation over the next five years, in addition to appointing former Secretary of State James Baker as chairman of an advisory group on climate change, among other moves.

PS managing director Adam Levine, who was formerly VP of corporate communications for GS, is handling press inquiries for the deal.


Jason Glashow has returned to Fleishman-Hillard, taking the Boston general manager slot. He succeeds Ben Kincannon, who is now in charge of the Omnicom unit’s North American litigation practice.

Glashow is rejoining F-H from Microsoft, where he handled PR for the software giant’s U.S. public sector. He managed press relations and executive communications there. Earlier, he worked at ML Strategies, the government affairs unit of Boston’s Mintz Levin, and Weber Group in Cambridge.

Glashow served in F-H’s Boston and Austin offices from `97 to `99.

Internet Edition, March 7, 2007, Page 3


The British Broadcasting Corp. has signed a content deal with YouTube to show its news and other programming on the Google-owned website.

Mark Thompson, director general of BBC, sees the link as a way to engage new audiences both in the U.K. and abroad.

The partners will sell advertising on the YouTube channels, but ads on the news site will only be available to viewers outside the U.K.

The Wall Street Journal reported that private sector competitors of the publicly-funded BBC have been upset with its foray into the commercial realm.


Dunia Shive, president of media operations at Dallas-based Belo Corp., has been promoted to president/COO of the $1.7B media combine. Bob Decherd remains chairman/CEO. He held the presidency post since `94.

Shive, 46, will spend her time managing digital operations at the company, which includes its flagship Dallas Morning News.

Shive joined Belo as its controller in `93. Prior to that she was assistant controller at Tyler Corp. and audit manager at Ernst & Young, where she worked on the Belo account.

Decherd, 55, has been Belo's CEO since `87.


Martin Peretz, editor-in-chief of The New Republic, has sold his 25 percent ownership stake to CanWest Global Communications.

The move following CanWest's buyout of financiers Roger Hertog and Michael Steinhardt gives the Canadian media combine 100 percent control of the now biweekly political and cultural magazine.

Peretz, 68, remains editor-in-chief. He is confident the mag will flourish with a cash infusion by its new owner. The maiden issue of TNR under Canadian control debuts March 19 under editor Franklin Foer.


Stephen Farrell, Middle East correspondent for the Times of London is joining the New York Times later this year.

He will remain in Baghdad for the NYT, replacing John Burns who leaves this summer to head the paper's London bureau. The New York paper also will replace Sabrina Tavernise in Baghdad. She is moving to take over the NYT's Istanbul office.


Joe Uva, who was head of Omnicom's OMD Worldwide media buying operation, has been named president of Spanish language broadcaster Univision.

Prior to OMD, Uva worked at Turner Entertainment Group, a stint that included president of sales/marketing.

Univision is in the process of being acquired by investment groups including Texas Pacific Corp., Providence Equity Partners and Thomas H. Lee Partners. That nearly $14B deal is expected to close this month.


David Blum has been axed as editor-in-chief of the Village Voice after a six-month stint. He was terminated following a staff meeting on the lack of diversity at the New York-based weekly.

Blum is succeeded by Tony Ortega, editor of the New Times Broward-Palm Beach.

PR director Maggie Shnayerson said though the meeting served as the "catalyst" for Blum’s exit, there had been differences between him and management.

The VV editorial carousel began when long-time editor Don Forst resigned in Dec. `05.

He was followed by Doug Simmons, who left after a reporter fabricated parts of an article and Erik Wemple, the Washington City Paper editor who left the VV after two weeks.

Bill Jensen, a Boston Phoenix veteran who handles new media for Village Voice Media, took over for Blum on a temporary basis.

Deborah Kolben, who was city editor of the New York Sun, has joined the VV as managing editor.

She was education reporter at the Sun before being upped to editor. Kolben also was a reporter for the New York Daily News and The Brooklyn Papers.

The VV announcement also notes that Kolben has written for the Jerusalem Report, The Guardian and Financial Times.

The Voice has a 250K weekly circulation and 1.5M readership.

MSNBC UNVEILS FIRSTPERSON. has introduced FirstPerson to allow people to post news-related photos and videos to related news stories.

Editors review the submissions and post the best in special galleries. People can vote on their favorites. The idea is to provide increased depth and content to stories, and get people more involved with the site.

Jennifer Sizemore, editor-in-chief of, notes that her site launched its first "citizen journalist" project in `96 when it posted delegate diaries from the Democratic and Republican conventions for an "insider look at politics from the floor."

She considers FP a move that embraces the "Internet's unique ability to open up the conversation to many voices and make journalism a more participatory experience."
Viewer content may also wind up on NBC News and MSNBC-TV programs. Sizemore is looking for both serious and light-hearted content.


Stefano Maruzzi has been named president of CondeNet International, a new position in charge of its nearly 60 sites in a dozen countries. Sarah Chubb handles U.S. operations.

Maruzzi was director of strategy and content-international for Microsoft's MSN site, and country manager for MSN Italy. He also was editor of PCWeek’s Italian editon. CondeNast’s collection of magazine includes Vanity Fair, Vogue, Glamour, Tatler, Gourmet and House & Garden. Maruzzi is based in Milan.

(Media news continued on next page)

Internet Edition, March 7, 2007, Page 4


Seattle’s Best Coffee, a retail and wholesale unit of Starbucks Corp. which has 129 stores in North America, has tapped DeVries PR after a three-agency pitch.

Lisa Pierson, managing director of DeVries' home and lifestyle division, said her firm will handle media relations and "brand awareness support" for regional markets in the early stages of the account work. She said an SBC marketing exec had worked with DeVries in her days at Procter & Gamble.

SBC markets coffee via three primary channels - cafes in locations like Borders book stores, retail presence in grocery and drug stores, and food service accounts like Alaska Airlines and McDonald's, mainly in the western U.S. Its first location in New York opened last year.

SBC worked with agencies in the past but did not have an AOR.

Starbucks acquired 30-year-old SBC in a $72M deal in 2003 when its previous owner, AFC Enterprises, faced an accounting scandal. Edelman is Starbucks' main PR firm.


Cynthia Greenwood and Sue Markgraf have combined their 50 years of PR experience and names to create GreenMark PR, which will concentrate on environmental issues.

The partners believe a five-year shared stint at the Chicago Botanic Garden will attract clients who want to promote green spaces, places and issues.

Greenwood has worked as an independent media placement strategist, handling assignments from Burson-Marsteller, Edelman, Hill & Knowlton, Ketchum and American Library Assn. She placed clients like Procter & Gamble, Reddi-Wip, Quaker Oats, Everready and Culligan.

Markgraf is a veteran of Fleishman-Hillard and one-time communications director for Dairy Management of "Got Milk?" fame. She is a co-founder of Chicago Parks & Gardens, a group dedicated to making Chicago a "green" tourism destination.

Markgraf had been running her own firm before teaming with Greenwood.


The Rochester Coalition, a group funded by the Mayo Clinic, has scored a victory as the Federal Railroad Administration nixed a $2.3B loan guarantee to the Dakota, Minnesota & Eastern Railroad Corp. to build a third rail line to bring coal out of Wyoming’s Powder River Basin, the nation’s richest reserve.

The RC, retained Weber Shandwick last year, to object to the high-speed mile-long coal trains that would rumble by only blocks away from the clinic.

DM&E argued the 280 miles of new track and upgrade of another 600 miles-which would have represented the nation's largest rail project in decades--was necessary to break the logjam at the Basin. Union Pacific and Burlington Northern Santa Fe currently run coal trains out of there.

NEW ACCOUNTS _________________________

New York

Dukas PR, New York/Atlantic Street Capital Management, PE fund focused on middle market cos.; Eisner LLP, CPA and advisory firm, and Zecco Holdings, company behind financial portal

Porter, Levay & Rose, New York/The Amacore Group, discount healthcare services, for IR and financial communications.

Porter Novelli, New York/British Airways, for corporate and consumer PR in North America, following a review. The firm already handled the U.K. and Trinidad and Tobogo for the airline.


Greenough Communications, Boston/TrueAdvantage, sales technology, as AOR, and IGEL Technology, network and IT hardware solutions, for PR.

Lois Paul & Partners, Woburn, Mass./Curl, Internet application platform; Konica Minolta Business Solutions USA; OpenConnect; RenewData, electronic evidence services for law firms and corporations; Troux, enterprise architecture platform, and ZoomInfo, business information search engine.

Racepoint Group, Waltham, Mass./Neighborhood America, social networking platform, as AOR for PR.

Consortium for Risk and Crisis Communication, Washington, D.C./Health Research Inc., New York state-affiliated non-profit, for faith-based communication audience research, along with risk and crisis comm. training. CRCC is made up of Widmeyer Communications and the Center for Risk Comm.

Trevelino/Keller Communications Group, Atlanta/
Omnilink Systems, human status tracking, as AOR as the company looks to build a presence in law enforcement, healthcare and real estate sectors.


Sullivan-St. Clair Marketing/PR, Mobile, Ala./
Cousins Subs, quick-service sub restaurants, as AOR for franchise development PR following a review. The chain counts 158 stores in the Midwest and western United States.


Holt Communications, Elkhart, Ind./Daimon’s Kids, nonprofit sports org. for kids, and Elkhart Express, professional basketball team based in Michigan. EE, is owned by Daimon’s Kids founder Daimon Beathea.

Southwest/Mountain West

Richards/Carlberg, Houston/RiceTec, rice producer and marketer, as AOR for its consumer business division. The work includes advertising and PR.

GroundFloor Media, Denver/Market Force Information, customer experience information; Shop’n Chek, mystery shopping; Electric Rain, software, and Whirled Peas Catering, for PR.


Sterling Communications, San Francisco/Euphonix, digital audio mixing systems and controllers, as AOR for all PR efforts.

Mayo Communications, Los Angeles/Southern California Gas Co., for a media campaign; M. Gray Music Academy, for a March 19 fund raiser, and the Iranian American Parents Assn., for a March 11 event.

Internet Edition, March 7, 2007, Page 5


Peter Winkler, a director in PricewaterhouseCoopers' entertainment and media advisory unit, has been named senior VP and chief marketing officer of Medialink's Teletrax monitoring unit.

Winkler served as management consulting director and global marketing director at PWC in New York, London and Los Angeles. He previously presided over its Global Entertainment & Media Outlook market forecast.

Earlier in his career, Winkler worked for marketing and PR units at Omnicom, Grey Advertising and Ogilvy & Mather.


Daniel Schaible, director of business systems for the San Francisco Chronicle, has been named senior VP of content for BurrellesLuce.

Schaible was previously production director at the New York Post and earlier headed a start-up mortgage company after posts in advertising and production with the Star Ledger in Newark, N.J.


PR Society of America's Georgia chapter hosted more than 240 college students at a "real world PR" conference Feb. 16 at Atlanta's Loudermilk Center.

John Walker, senior VP at Edelman and chapter head, hosted the event, which gave students from more than 30 colleges an "insider look" about making the most of internships and choosing the right specialty area in which to practice the craft of PR. Resumes were critiqued. Networking was encouraged.

Alan Richardson, southeast marketing manager of Starbucks Coffee, keynoted the day. He tipped the students plus 190 chapter members on the six cornerstones that guide every management decision at Starbucks. The management mantra is based on being "authentic," "considerate," "creative," "fun," "transformative" and "uplifting." Richardson said the "brand promise" of Starbucks is "daily inspiration."

The conference boasted more than 40 sponsors including LC, AT&T, Edelman, Weber Shandwick, Allstate, Cox Communications, Porter Novelli, UPS, William Mills Agency, AFLAC and Manning, Selvage & Lee. The Georgia chapter's real world event is the largest collegiate conference sponsored by any PRSA chapter.

The 900-member organization sponsors PRSSA groups at Georgia State University, University of Georgia, Kennesaw State University, Clark Atlanta University and Georgia Southern University.

BRIEFS: Wendy MacDonald was promoted to director of media for Family Features Editorial Syndicate, Mission, Kan. The company provides free food and lifestyle features to publications in the U.S and Canada. ... Advertising and corporate design firm has up to 6 windowed offices and separate reception area available in Midtown Manhattan; 50s on 7th Ave.; 1,250+ s.f.; access to conference room w/AV. Phone system & DSL in place. Info: 212-748-9681.



Steve Majors, senior producer in NBC News, to The Ehrhardt Group, New Orleans, as a senior consultant focused on crisis communications, planning, training and management. Before being assigned to NBC’s New Orleans bureau, Majors worked out of New York for the network and its MSNBC and CNBC units.

Jeff Zelkowitz, former managing director for Taylor Rafferty, to APCO Worldwide, New York, as a senior VP focused on financial comms. He served in New York and London for TR.

Donna Pedro, senior consultant for diversity consulting firm The FutureWork Institute, to Ogilvy PR Worldwide, New York, as chief diversity officer, a new post. She helped the firm implement its diversity training program over the last two years as an “executive on loan.” She was previously VP of diversity and professional development at Sony Music Entert.

Melissa Mazella DeLaney, a spokesperson for ousted California Congressman Richard Pombo, has joined John Adams Assocs., Washington, D.C., as VP-congressional and media relations. Pombo, a conservative rancher, headed the House Resources Committee since '03. He was a strong advocate for opening the Arctic National Wildlife Reserve for oil exploration, and supporter of the Bush Administration's "Healthy Forests" program. He joined Pac/West Communications' office in Sacramento (2/28 NL). DeLaney is to work on environmental and health issues at JAA. Before working for Pombo, she was press secretary for Rep. Candice Miller (R-MI), and a staffer at Manning, Selvage & Lee.

Karen Foss, a veteran broadcast journalist, to utility company AmerenUE, St. Louis, as VP for PR. She was anchor of KSDK-TV in St. Louis for 25 years.

Joel Postman, director of executive communications for H-P’s enterprise business group, to Eastwick Communications, Redwood City, Calif., as executive VP of emerging media. Postman is a blogger and formerly was the senior speechwriter for Scott McNealy, former CEO and chairman of Sun Microsystems.

Brion Tingler, a former Ogilvy exec who worked in Greater China for the last five years, to Gavin Anderson, New York, as an associate director. Lydia Leung, IR manager for COFCO, a state-owned consumer food and agricultural enterprise in China, also joins GA as an associate director.


Ann Carter to CEO, Rasky Baerlein Strategic Communications, Boston. Carter joined the firm in 1997 and has served as CFO, a title she retains. She was previously VP at Winthrop Financial Associates.

Colleen Kmiecik to A/S and Eric Younan to senior A/E, Marx Layne & Co., Farmington Hills, Mich.

Brandon Edwards to president and COO, and Robb Rice to executive VP, Davies, Santa Barbara. Chairman/CEO John Davies noted Edwards’ healthcare work contributed 40% of the firm’s total revenue.

Angie Yang to senior VP, PondelWilkinson, Los Angeles. She joined in 1997.

Internet Edition, March 7, 2007, Page 6

INDEPENDENTS GROW 20%+ (Cont’d from page 1)

advertising, he said. "PR firms are taking dollars from ad agencies," he added.

Edelman has owned offices in 45 cities and can carry out global campaigns of clients, he said. He noted the firm is private and independent and does not have to send profits to a parent company.

"We're investing heavily in intellectual capital such as our Trust Barometer which conducts surveys in 18 countries," he said. Eight staffers work on digital technologies including the "Me2" capability.

ICR Enjoys 52% Jump

Integrated Corporate Relations executives Chad Jacobs and Thomas Ryan, co-CEOs, and Don Duffy, president, said the firm's rapid growth is due to its "unique and strategic brand of financial communications, appreciated not only by clients but analysts, institutional investors, business/financial media and other key corporate audiences."

ICR's "superior investor relations model is composed exclusively of former Wall Street professionals including senior sell-side analysts, portfolio managers, investment bankers and CFOs who understand the capital market," they said. ICR also has "highly skilled corporate communications, media relations and digital media groups."

5W Has Biggest Gain

Ronn Torossian, president and CEO of 5W, which was the fastest growing firm for the third year in a row, said 5W is growing "because we are the most focused results-oriented agency in the U.S."

He said the growth "has been entirely organic and the reward for being completely focused on serving our clients. I am proud of our staff and excited we have been the fastest-growing firm three years in a row, which is unprecedented in this industry."

Ruder Finn at $99.3M

In second place on the list was Ruder Finn, up 8.2% to $99.3M.

Peter Finn and Kathy Bloomgarden, CEOs, said there was "significant global expansion in health and wellness, corporate trust and global connectivity." There was double-digit growth in the corporate reputation practice, working with multinational companies on CEO positioning, media, branding, and crisis programs.

Creative activities, especially new media, Internet and emerging technologies, were said to be the fastest growing divisions, gaining 25% with expertise in developing on-line communities, web development and web marketing. Revenues were up 14% at New York headquarters.

Waggener Edstrom Grew on Many Fronts

Melissa Waggener Zorkin, CEO of Waggener Edstrom Worldwide, said the firm had "multiple successes in 2006." Significant effort was focused on "attraction, retention and development of our top world talent, thus providing the highest quality work to existing and new clients," she said.

The firm helped launch Windows Vista, the Shire Human Genetic Therapies and Elaprase, a drug for the treatment of Hunter Syndrome. New clients included GlaxoSmithKline, BMC Software, and HTC USA.

The firm increased R&D spending, formalizing IP in support of its "Innovation Communications" approach with products such as "Narrative Network." Zorkin is "strongly optimistic" for 2007.

Schwartz Gains 22%

Steve Schwartz, president/CEO of Schwartz Communications, said the 22.6% growth of the firm was due to achieving "meaningful, bottom-line results for clients."

The firm has a "laser-like focus on delivering services that have a tangible business impact for our clients," he said. "This is why we're retained in highly competitive situations."

Qorvis Added Prominent Clients

Michael Petruzzello, managing partner of Qorvis, said 31% growth was the result of having senior people work directly with clients and by not billing by the hour, eliminating a "built-in conflict with clients." New clients include PhRMA, Consumer Electronics Assn., Mortgage Bankers Assn., Financial Services Roundtable, Pratt & Whitney, United Technologies, DynCorp. and Halliburton.

New services include advertising. Qorvis in six years has grown to 90 employees in two offices. During the past three years, growth has averaged 23%+.

Taylor Rose 35.6%

Tony Signore, CEO of Alan Taylor Communications, "the lifestyle and sports PR choice for the world's leading consumer companies," which rose 35.6% to $18M, said that since 2004 the firm has been guided "by a clearly defined vision that calls for ATC to be exclusively aligned with category leading consumer brands who respect and value the PR discipline. This selective approach continues to pay dividends for our organization."

RFBinder Up 11% to $11M

RFBinder CEO Amy Binder said expansion came from new and current clients including Johnson & Johnson in consumer; B2B with Haynes & Boone, and the Chilean government for exports; in energy with Repsol YPF and the York Regional Interconnect, and in finance services with Ameriprise.

Long term clients including Bank of America, Robert Bosch, Dunkin' Donuts, TIAA-CREFF, Eli Lilly, and McGraw-Hill gave major assignments to the firm.

French/West/Vaughan in Top 20

French/West/Vaughan joined the top 20 by growing 11% to $9.6M. Rick French, president/CEO, said the firm won a number of major national account reviews and that existing clients increased spending, particularly in the consumer product and healthcare sectors.

There was double-digit growth in the Raleigh and New York offices.

A profitable new social media and word-of-mouth marketing practice area was started. Marketing communications had a high single digit growth.

Said French: "Our independent standing as a midsize national agency with resources to handle almost any size national and even international account has made the firm an attractive alternative to some of the larger holding company owned agencies that have traditionally secured the vast majority of plum client programs."

Internet Edition, March 7, 2007, Page 7


(Click here for rankings)

Internet Edition, March 7, 2007, Page 8




The table on page 7 shows the continued growth of the independent PR counseling business.

We talked to owners, executives and staffers at dozens of these firms in the past few weeks and we’re impressed not only with the growth of their businesses but with their good spirits. They’re happy and expressive, just like PR people are supposed to be.

Their growth rate surpasses that of the conglomerate-owned PR firms. The growth rate of WPP’s PR firms is 6% and for PR firms owned by Omnicom, somewhat under 10%.

WPP reports that PR income grew an additional 6% because of acquisitions. OMC, which spends heavily on acquisitions, does not say how much of the 10% is from that. Interpublic, No. 3, does not break out PR and neither do Publicis and Havas.

We almost never talk to anyone from firms owned by the conglomerates. A couple will respond if called but never initiate contact. Many now won’t release account lists nor make any announcements.

This blanket of silence is harmful not only to them but to the PR counseling industry. We don’t see it changing any time soon. Ad industry culture is not to lift a finger without the permission of the client. PR culture is to see PR as a bridge between client and public, with duties towards both.

Some academics seem puzzled by the silence of PRSA national board members, chapter presidents, district leaders, ethics board members at the national and chapter levels, section leaders, etc., despite criticism of PRSA’s financial reporting by three accounting professors; lack of democracy (only APRs can run for national office); refusal to supply transcripts of Assemblies; lack of a staff CPA; failure to report nearly $2 million on staff time on the annual conference; refusal to defer dues income; removal of $2.5M in administrative costs from 13 categories of spending; refusal of new COO Bill Murray to disclose his salary, and the collapse of the APR program (PRSA added 123 APRs in 2006 after adding 116 in 2005).

The answer is that anyone in “leadership” is co-opted by an elaborate system of favors and punishments that PRSA national has at its command. Veteran members know this system well.

“Carrots” include new business and job tips that pour into h.q. and that are not posted on the PRSA website where they belong. “Favorites” get them. The way to get off this “favored” list is to oppose national in any way or help the press about PRSA.

Counselors as well as corporate members and PR professors want these tips.

Also desired by chapter and district leaders are the scores of national committee chair appointments that are given out each year; national conference speaking assignments, of which there are more than 100 (with publicity and reduced fees for the speakers); appointment to key committees such as Silver Anvil judging that help improve resumes; appointment as speakers at the dozens of seminars and webinars that PRSA stages throughout the year, some carrying hefty fees (James Lukaszewski made $60,000 in one year by conducting such sessions), and approval of travel, meal and hotel budgets by national staff and leadership. Ex-presidents, who get free conference passes for life ($1,000 yearly) and free national membership for life, don’t complain.

Any employee of a PR firm who challenges national risks exclusion of the firm and its principals from the PRSA “goody bag.” Any chapter member who does this risks ostracism by chapter officers and members.

The system of rewards/punishments extends to the PR media. Media that carry PRSA editorials word-for-word are rewarded with exclusives, invites to speak at PRSA events, and ads. PRSA, like Omnicom, is a subject that is off-limits to the New York Times ad column. Leaders of the PR Student Society of America are barred from speaking to the PR trade press. Students know this would about kill any chances of PRSA hooking them up with jobs. The students abjectly accept PRSA dominance of their website, learning only too early how to sacrifice principles for $$.

The result of this system is that chapter and district leaders are hog-tied and tongue-tied when it comes to national. The Ethics Board headed by Linda Cohen has said that under no circumstances will it criticize the national board. Only silence comes from the 110 chapters, all of which have ethics boards. Members of the current national PRSA board have promised never to speak in public or to the press about PRSA matters. This no doubt was a key condition for their nominations.

PRSA is thoroughly corrupt, led for too many years by solo practitioners or those who worked at one-person corporate PR offices. The last head of a major PR firm to lead PRSA was John Beardsley of Padilla Speer Beardsley in 1995. Members have been robbed of their printed directory, a caper condemned by nine of ten rank-and-file members that we talk to. This was the biggest heist in the history of PRSA and some members have vowed to overturn it. A close second is the robbery of New Yorkers of the use of h.q. by the move downtown. PRSA turned its back on its richest source of new members, cutting off its nose to spite its face.

The impact of this corruption on the PR industry is that PRSA is not available to provide an example of how good PR can be when blasts in the media take place such as an article in the NYT or ridicule from the Dilbert comic strip. It would be nice to point to PRSA as a model of good press relations; as a provider of timely and accurate financial reports; that treats all members as equals; that has an active ethics process that condemns PR abuses, and has a president (or chair) that holds press conferences and answers all questions.

Instead, PRSA is the embodiment of many of the evils that the press complains about.

--Jack O'Dwyer


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