The eight page weekly is the only PR newsletter on LEXIS/NEXIS.
Edition, December 19, 2007, Page 1
Holidays to all our readers. The next issue of the newsletter
will be Jan. 2. Follow breaking news on odwyerpr.com.
Lynch has tapped Margaret Tutwiler to serve as its top PR
person, replacing Jason Wright who will stay on during a
the one-time Undersecretary of State for Public Diplomacy
and Public Affairs, follows John Thain to Merrill. She was
in charge of PR, government relations and marketing at NYSE
Euronext, the parent company of the New York Stock Exchange.
the former CEO of the Big Board, succeeded Stan ONeal
at Merrill in October.
Merrill, Tutwiler takes the senior VP/global communications
& PA post. That title was effective Dec. 17. Tutwiler
also served as U.S. Ambassador to Morocco, special advisor
for communications for President Bush II, senior VP-PA at
Cellular Telecommunications Industry Assn., State Dept.
spokesperson, and assistant to the president for communications
for President Bush I.
who was director of communications for Aetna, held the Merrill
job since `03.
VINES QUITS CHRYSLER
Jason Vines, the 47-year-old
VP-communications of Chrysler, has resigned that post effective
Dec. 31. He will be replaced by David Barnas.
Vines had urged a more
media-friendly approach for CEO Bob Nardelli and vice chairman
That policy was opposed
by Nardelli, who had brought in Robert Marston & Assocs.
to work with Vines.
Cerberus Capital Management,
the tight-lipped private equity firm, acquired an 80.1 percent
stake in Chrysler from Germanys Daimler in August.
It hired ex-Home Depot chief Nardelli for the top Chrysler
spot. Nardelli worked with Marston at Home Depot.
STANTON CRENSHAW CLOSES COMPUSA
Stanton Crenshaw is handling
the wind-down of CompUSA as its owner Mexican
telephone titan Carlos Slim unloads the 103-member electronics
store chain to Bostons Gordon Brothers Group, an investment
and restructuring firm.
CEO Alex Stanton told
ODwyers that his New York shop has worked for
the private equity arm of GBG in the purchase of Things
Remembered giftware shops and the sale of Party America
The stores are to remain
open during the Christmas season, luring customers via store
closing sales. The new owner is in active discussions
to sell select CompUSA units in key markets.
B-M HELPS QATAR BID FOR OLYMPIC
Burson-Marsteller is promoting
the Qatar Olympic Committee bid to host the `16 Olympics
Doha is currently an applicant
city in the hunt for the Games with Chicago, Madrid, Tokyo
and Rio de Janeiro.
The Wall Street Journal
Dec. 12 casted doubt over Qatars bid. While the oil
rich state could easily foot the bill for the Games, Doha
would have to bring in everything from the outside
to stage the event.
An estimated 750,000 people
live in Qatar, but only 170K of them are citizens. The International
Olympic Committee considers sustainability and
the legacy that the Games will leave behind among criteria
for choosing a host city.
The WSJ noted: At
the end of a Doha Olympic Games, most of the imported skills
will leave with the contractors.
The Journal also pointed
out that B-M is listed as contact in the media center at
site. In Beijing, at the same stage in the application
process, the public face was Chinese. Beijing will
run the `08 Games.
The IOC will decide in
June if Doha progresses from applicant to candidate city.
The host city will be announced in October `09.
PR NEWSWIRE PROFITS NEAR $100M
PR Newswire, part of United
Business Media of the U.K. and PRs biggest service
firm, reported pre-tax operating profit of 23.6M U.K. pounds
for the first half, representing a margin of 33.9% on revenues
of 69.8M pounds.
Since the pound is worth
about $2, profits for the full year as so defined would
approach $100 million. Bear Stearns, which has started coverage
of UBM, says PRN has a stable mid-single digit growth
However, profits reported
to the parent have been hurt by the 37% decline in the dollar
vs. the pound since 2002. It took $1.45 to buy one pound
then but $2 now.
About 75% of PRNs
revenues are in dollars as are 47% of UBMs. PRN is
the most profitable unit of UBM. Adjusted operating
profit means earnings
(continued on page 7)
Edition, December 19, 2007, Page 2
VOUCHES FOR NIGERIA
Levinson is representing the Economic & Financial Crimes
Commission of Nigeria, which aims to root out the rampant
corruption in that African state.
former managing director at BKSH & Assocs. spearheaded
the PR efforts of the Iraqi National Congress and its leader
Ahmed Chalabi in the years running up to the U.S. overthrow
of Saddam Hussein.
was expert advisor to the Iraq Study Group,
which was chaired by former Secretary of State Jim Baker
and ex-Congressman Lee Hamilton to review U.S. policy options.
She also works for the Iraq Memory Foundation, a group that
documents the crimes of Hussein and the Baath Party.
KRL International seeks support for the Nigerian Commissions
work among the White House, Congress, private sector, media,
think tank and non-governmental organization sectors.
leader Umaru Musa YarAdua, who took power in April,
met with President Bush on Dec. 13 and pledged to work with
the U.S. on military issues in Africa. He also restated
his commitment to transparency and a country free of corruption.
of the governors of Nigerias 36 states have been charged
with corruption since May, according to the Voice of America.
established KRL in `07. She is joined on the Nigeria account
by Molly McKew, a veteran of the American Enterprise Institute
where she ran its research program on foreign and defense
PUBLICIS SOFFER TO C&W
Hayley Soffer, a former
healthcare practice director of Publicis Consultants and
New York managing director, is now at Cohn & Wolfe.
As executive VP and head
of its New York health group, Soffer takes on client service,
talent development and new business duties.
Soffer spent seven years
at Manning, Selvage & Lee, working as senior VP/counselor
to health clients on planning, crises and Food & Drug
Administration issues. Earlier, she was at Porter Novelli
and Makovsky & Co.
Sally Ann Barton is C&Ws
North American health practice chief. The WPP Group unit
has more than 200 health professionals worldwide.
RUBENSTEIN RE-OPENS KOSHER
The 2nd Avenue Deli, a
New York City kosher institution, reopened Dec. 17 with
fanfare generated by Rubenstein Associates. A ceremonial
salami cutting is slated for 11 a.m. at the kosher palace.
The Deli had been in the
East Village for more than 50 years, but closed in `06,
a decade following the fatal shooting of its founder Abe
Lebewohl, the Mayor of 2nd Ave, who was feted
for feeding the homeless and creating the Yiddish Theater
Walk of Fame.
The reopened Deli will
be run by Lebewohls nephews, Jeremy and Joshua. Their
father, Jack, ran the East Village restaurant in the aftermath
of his brothers death.
The Deli, which was famous
for its matzo ball soup, huge corned beef and pastrami sandwiches,
kugel and chopped liver, was a favorite haunt of Joe DiMaggio,
Danny Glover, Bette Midler, Jerry Seinfeld and Muhammad
The reborn 2nd Ave Deli
is located on 33rd St between Third and Lexington Aves.
It features 60 seats and will be opened 24/7.
EDELMAN GETS EXTENSION FROM
Illinois, which is reviewing
its multimillion-dollar tourism PR account held by Edelman,
has moved to extend that contract by a month to cover the
Governors Conference on Tourism in February.
That event, which is being
planned by Edelman, is slated two weeks after the state
expects to award a new PR contract.
Having a different
vendor manage this annual event after a different company
did all of the planning may create insufficient execution
of such plans, says a procurement notice of the move.
The month-long extension
is worth $75,500 to Edelman, which has worked with the states
tourism entity for nearly 14 years. Paulette Wolf Events
& Entertainment gets $36K for logistics and staffing
FD OVERSEES MAGUIRE AUCTION
Maguire Properties, southern
Californias biggest owner of Class A commercial
buildings, relies on financial PR savvy from FD as it mulls
The Los Angeles real estate giant has been under siege from
hedge funds, clamoring for a game plan to boost shareholder
Maquire announced Dec.
11 that it formed a special committee of independent directors
to explore the possible sale of the company. It hired Morgan
Stanley as its banker.
Walter Weisman, chair
of that panel, placed building shareholder value at the
core of his fiduciary duties, but said the committee is
prepared to wait if the time and opportunity are not
The credit crunch has
hurt Maguire. The companys stock is down more than
30 percent since the beginning of the year.
Maguire controls more
than nine million sq. ft. in Los Angeles. It also has holdings
in San Diego and Orange County.
FDs Ellen Barry
is in charge of the Maguire account. Peggy Moretti is Maquires
RAIMONDI MIGRATES TO HARRIS
Marc Raimondi, national
spokesman for the Dept. of Homeland Securitys Immigration
and Customs unit, has migrated to Harris Corp. in Washington,
D.C., as communications director.
Raimondi, 39, will focus
on boosting the communications equipment makers image
with the government and in the capital area.
He previously worked in
public affairs for the Dept. of the Army for 11 years, serving
as director of PA for its Criminal Investigation Command.
Harris, which has annual
revenue topping $4 billion, works on more than 300 government
programs, from the 2010 Census to the FAAs communications
Edition, December 19, 2007, Page 3
PRUNES DOZEN STAFFERS
is cutting a dozen editorial staffers as the McGraw-Hill
property completes the integration of its print and web
Stephen Adler, via a memo, said BW has been working on the
integration during the past three years by "increasing
reporters' contributions to Businessweek.com, combining
our overseas bureaus and copy-desk teams, and seating together
everyone within a given coverage area."
announced a restructured line-up of Brian Bremner (news
chief), Frank Comes (finance/personal finance), Jim Ellis
(small business), Peter Elstrom (technology), Neil Gross
(science), Mary Kuntz (corporations/workplace), Bruce Nussbaum
(innovation) and Chris Power (global/policy).
also appointed Ciro Scotti (managing editor of the magazine)
and Martin Keohan (managing editor of the web).
was senior editor responsible for the copy desk, and government/sports
business coverage. Keohan was director of editorial operations
for the web.
told staffers that in connection with the reorganization,
"a small number of our editorial colleagues will be
WALL STREETER TAKES TW POST
Douglas Shapiro, who covered
Time Warner as media analyst for Banc of America Securities,
has joined the media combine.
He is expected to take
a key IR post when Jeffrey Bewkes succeeds Dick Parsons
as CEO on Jan. 2. James Burtson currently heads TW's IR
Shapiro, according to
the New York Times, will likely explain the many
changes that are expected under Bewkes. That could include
the break-up of the company, which houses Time Inc., Warner
Brothers, HBO and AOL.
In Shapiro's last report
on TW, he put a $25 price target on the stock because of
a chance of a restructuring including the possible divestiture
of either publishing or AOL or "even a full break-up
of the company into its four logical components."
TW shares have tanked
since its `01 merger with AOL. They now trade at $16.93.
ATLANTIC MOVES SOME STAFF
The Atlantic said
it will move its sales and marketing operations about
15 staffers from Washington, D.C., to New York. The
magazines editorial staff remains in D.C., along with
publisher Elizabeth Keffer, who takes over Atlantic Live,
the events business that runs the Aspen Ideas Festival.
Atlantic Media said it
is searching for a New York-based publisher. Justin Smith,
president of Atlantic Consumer Media, said the company will
ramp up its sales efforts across the board as it enhances
its print, online and events business and introduces new
AM also publishes National
Journal and Government Executive. It recently
changed the flagship magazines name from The Atlantic
Monthly to The Atlantic. The title is now published
10 times a year, down from 12.
meanwhile, said group publisher and executive director Steve
Vito will assume the title of president, overseeing operations
and performance of its print, online and events business.
He has been with the media unit for seven years after serving
as associate publisher of BYTE Magazine and publisher
of PCResource and Federal Computer Week.
Executive editor Tom Shoop
has been named editor, overseeing content for the entire
Government Executive. He joined 20 years ago as a reporter.
Current Editor and President Tim Clark, who has helmed the
title since it was acquired by National Journal group in
1987, is staying on as editor-in-chief.
Mathis has been promoted to senior VP of corporate
communications for the New York Times Company.
A VP who joined the company
in 1997 as director of IR, she heads media, community and
employee relations, PR, crisis comms., corporate speechwriting,
and company websites.
Mathis was VP of corporate
relations at the Overseas Shipholding Group before joining
The Times has also promoted
Ken Richieri to SVP and general counsel, from VP.
Media Group of Kuwait has inked a deal to publish
a Middle East and North Africa edition of Cartoon Network
Magazine. Nine 32-page issues a year are planned targeting
Cartoon Network is part
of Time Warner and is translated into 21 languages across
a trade publication for investment advisors, has tapped
MWW Group, East Rutherford, N.J., to elevate
its brand within the media community and boost circulation
through media relations and thought leadership activities.
Today said it will debut a new active lifestyle
magazine called Open Air in March. The quarterly
will appear on Fridays March 7, May 2, Sept. 5 and Nov.
7 in 2008.
The focus is busy,
well-informed, affluent consumers.
on outdoor activities, travel features and articles on gear,
nutrition, and the psychological benefits of a healthy lifestyle.
Jack Curry, executive
editor of USA Weekend, is interim editor. Staff from
the newspaper and USA Weekend will handle editorial.
Medias Supermarket News has launched
a daily blog and weekly e-newsletter called Refresh to supplement
its quarterly organic and health/wellness title SN Whole
news continued on next page)
Edition, December 19, 2007, Page 4
EXITS DOW JONES
Dunbar has left her VP-corporate communications post at
Dow Jones & Co. with the completion of its takeover
by Rupert Murdochs News Corp.
former Ford Motor executive director communications strategy
joined DJ on March 27.
told ODwyers that she had a great experience
albeit brief at DJ. It was a whirlwind,
a reference to the activity surrounding Murdochs bid.
plans to make some travel plans and then find another job
in PR, a field that she loves.
DJ CEO Rich Zannino sent a note to staffers Dec. 13, thanking
Dunbar (and CFO Bill Plummer) for their service.
Dow Jones will no longer be a public company as part of
News Corp. and as such will not require the full breadth
of skills Bill and Linda brought to their future endeavors,
Dunbar was PR director at the American Institute of Certified
Public Accountants and handled external and financial communications
for Philip Morris International.
EVERETT TOPS NEWS CORP.'S
Teri Everett, senior VP-corporate
affairs and communications at News Corp. in Los Angeles
has taken over chief spokesperson duties for Andrew Butcher,
who is returning to Australia.
Everett is now stationed
in New York. Julie Henderson assumes Everett's job on the
West Coast. She had been the PR person for Fox Interactive
Gary Ginsberg, a key deputy
of News Corp. CEO Rupert Murdoch, is executive VP-global
marketing and corporate affairs. He joined the media combine's
office of the chairman in October.
TEXT 100 GUIDES MACROVISION
Text 100 is guiding Macrovisions
bid to become a digital hub for TV, computer,
cellphone, and mobile devices via its $2.8B acquisition
of Gemstar-TV Guide, which is 41 percent owned by News Corp.
Macrovision produces software
that prevents copying of DVDs and videogames. Gemstar -TVGuide
is a top programmer of video guidance and entertainment.
Their announced goal is
to build and integrate open technology, content protection
and distribute offerings that enable the delivery of digital
media to consumers across multiple platforms and channels.
Macrovision CEO Fred Amoroso
will lead the combined companies. Gemstar-TV Guide chief
Rich Battista will depart when the deal is finalized during
the second quarter of '08.
News Corp. acquired its
Gemstar-TV Guide stake in `98. It took a $6B write-down
of the property in `02.
REUTERS QUELLS MURDOCH-LINKEDIN
Reuters reported that
rumors of preliminary talks for News Corp. to potentially
acquire the business networking platform LinkedIn arent
true, shooting down a dispatch by the U.K.s Sunday
The Express said that
News Corp. head Rupert Murdoch and LinkedIn CEO Dan Nye
started talking three weeks ago about a possible acquisition
by News Corp. Nye has said he wont take less than
$1 billion for LinkedIn, which connects people in the corporate
world for social and business purposes.
Reuters cited a source
familiar with the matter, while the Express did not
identify its source, either.
Murdoch bought MySpace
for $580 million two years ago.
SPJ LAUDS SENATE FOR FOIA
The Society of Professional
Journalists commended Congress for its passage of notable
reforms to the nations Freedom of Information
The group said FOIA is
one of the strongest tools Americans have to supervise
the inner workings of government and hold elected officials
The Senate passed a bill
sponsored by Sens. John Cornyn (R-Tex.) and Patrick Leahy
(D-Vt.) which creates an independent ombudsman to resolve
citizen disputes, helps agencies strengthen FOIA, creates
a system for the public to monitor the status of requests,
and allows requesters to more effectively recover
legal costs incurred when agencies improperly deny requests,
according to SPJ.
SPJ is urging the House
of Representatives to pass a similar bill.
group lobbied with the Sunshine in Government Initiative,
which includes the Associated Press, Coalition of Journalists
for Open Government and the National Assn. of Broadcasters,
among other groups.
WSJ PRAISES PAY-FOR
The Wall Street Journal
Dec. 17 mused that small businesses paying for placement
is a better deal than going solo and cheaper than hiring
a full-service firm.
The paper profiled Castle
Rock, Col.-based Cynthia McKay, owner of Le Gourmet Gift
Basket Inc., which employs 28 people. She initially hired
a PR agent who burned through $3,000 in two
weeks with no results. The agent was so charismatic
and dropped the name of McKays business at every cocktail
party. McKay realized that it would be a long time to see
Rhoda Weiss, chief of Public Relations Society, defended
full-service firms. She told the Journal that PR is
more than being in the media. When you work with a [full-service]
PR firm, they will develop a communications strategy.
McKay next tried a firm
that charged her $1,200 for an initial five placements.
She dropped it after being nicked and dimed
to death. The last straw: an $11,000 bill after an Associated
Press story was picked up across the country.
McKay then considered
big Denver-based firms but quickly realized she couldnt
afford the retainers.
She finally met Margie
Zable Fisher (Boca Raton), who does straight media work
and only bills a client after a hit. For instance, the WSJ
article is a $6,000 placement for Fisher. Thats the
top of her scale, which begins at $500 for a low-traffic
website, small radio or TV station.
19, 2007, Page 5
OF PR FIRMS
ADDS 10 FIRMS
Worldcom PR Group added 10 partner firms to its ranks following
regional meetings this fall in Mallorca, Miami and Macao.
the Americas region, Worldcom added Deveney Communications,
New Orleans; Roberts Communications, Rochester, N.Y.; Carreno
Group PR & Government Affairs, Houston; Linhart PR,
Denver, and Pace Group Communications, Vancouver.
in Europe, Scandanavia, Asia and the Middle East rounded
out the 10 new partners, a record number of additions for
the PR network.
Bliss of Bliss, Gouverneur & Associates, New York, chairs
the Americas region. Hal Dash of Cerrell Associates in Los
Angeles is chair-elect.
Corporate Relations, Westport, Conn., handled financial
comms. for Titan Machinery, a Fargo, N.D., agricultural
and construction equipment company that held a $51M IPO
in early December. ...The Tourism Commission for Cape May,
N.J., has severed ties with MWW
Group and its $6K/month pact after nearly two years.
said it has been certified green after going
through a series of audits by the San Francisco Green Business
Program, which looked at water and energy use, lighting
and cleaning supplies, among other aspects of operations.
The firms Cambridge, Mass., office is engaged in a
similar effort. Info: www2.sfenvironment.org/greenbiz/.
...Credo Media Group,
Boca Raton, Fla., is marketing online reputation repair
services to combat online libel. CMG president
Gary Greaves calls Internet defamation a widespread
problem that can have devastating consequences
for companies. The firms efforts focus on removing
or pushing down defamatory information from the tops of
search engine results. credomediagroup.com. ...Kara Smith
has launched what she says is Harlems first new media
PR boutique firm, Karasma
Media PR and Publicity. She is stressing her use
of new technology and creativity to reach niche audiences
in Web 2.0. karasmamedia.com. ...KempGoldberg,
Portland, Me., won a Silver Award from the Maine PR Council
for a bylined article penned for Disability RMS that appeared
in two trade journals for an estimated reach of 61K media
impressions. The Council gives out its golden Arrow Awards
Youngclaus, a Chapel Hill, N.C.-based healthcare
firm, has changed its name to Pulse
Health & Wellness Initiatives to better reflect
its focus. The firm has worked with Kelloggs, Unilever
and Merck. pulsehw.com.
...Baltimore-area firm Imre
Communications has moved from Towson to a 15K-square-foot
facility in Sparks, Md. The new space is 50 percent larger
than its previous location, which it occupied for 12 years.
909 Ridgebrook Road, 21152. ...Genesis
Burson-Marsteller, New Delhi, has aligned with sister
WPP firms BKSH & Associates and Quinn Gillespie &
Associates to provide public affairs services to Indian
Hammond & Associates, New York/33rd International
Congress for Relais & Chateaux, organization representing
470 hotels and gourmet restaurants in 55 countries. The
November meeting in Washington, D.C., drew 500 hoteliers
and chefs. A three-day media tour in New York followed the
Congress and included features in USA Today, Washington
Washington Times, New York Post, and Washington
Mattie PR, New York/LA Boxing, fitness; TheraBreath,
oral care products, and GlyDerm, skin products, all for
PR. Earth Therapeutics has signed on for a third year with
Communications, New York/IDC, events and market technology,
to promote the 2008 IDC IT Forum & Expo in Boston in
Communications, Andover, Mass./Cuppys Coffee,
Smoothies & More, franchise, for consumer and business
outreach touting both its products and franchise opportunities.
Communications Group, Miami/Iqua Ltd., wireless and
hands-free devices, for North American comms.
& Quinn PR, Fort Lauderdale/Vicem Yachts USA,
to manage PR for the unit of Vicem Yachts Inc., a Turkish
motor yacht builder.
Chicago/Prevent Blindness America, for a national eye health
consumer campaign funded by Pfizer, including PSAs for TV,
radio and the web.
Group, Chicago/ALDI, discount grocer with 900 stores
in the U.S., for PR as it expands in new markets and boosts
its presence from Kansas to the East Coast. MWWs Los
Angeles office was tapped to promote a green housing community
for homebuilder The Olson Company.
PR, Troy, Mich./Seton Co., supplier of leather for
automotive interiors, as AOR for PR. Norristown, Pa.-based
Seton has operations in North America, Europe, Asia and
Group, Dallas/NTRglobal, remote access technology,
as AOR for PR for its North American division.
Weinkrantz, San Antonio/N-trig, Israel-based digital
touch technology, for media and analyst relations in North
Agency, Scottsdale, Ariz./Boat Owners Association
of the United States, commonly known as BOATU.S., for marketing
comms. focused on touting member benefits to a fishing audience.
Gardiner, San Diego/Vet-Stem, regenerative veterinary
technology; Jade Theater, restaurant and lounge; CH Carolina
Herrera, designer, for a boutique opening; La Jolla Development
Group, real estate, to devise a marketing strategy, and
Point Loma Outfitting, outdoor/sailing gear, for marketing
Edition, December 19, 2007, Page 6
S SIMON GETS GSA PACT
S Simon has landed a General Services Administration contract
to handle PR and video/film production services for the
Wright, senior VP for Simon, noted the company has worked
on federal campaigns through PR agency partners in the past,
but the new federal supply schedule contract enables it
to expand on that work.
S Simons pact is under the Advertising & Integrated
Marketing Solutions category, which encompasses PR.
NEW PRESENTATION TOOL FOR
RePromotion has created
the "Power2Show Presentation Media Player" that
allows PR presenters to integrate images, audio, Flash animation
and PowerPoint in their pitches.
Chaim Fleischer, CEO of
RePromotion and developer of the new software, said PR pros
will find it a helpful tool in presenting to clients and
"They will be able
to integrate PowerPoint, digital audio, images and video,
Excel and Word documents, Flash animation, websites, scrolling
text, RSS feeds and even YouTube clips with just three clicks,"
The presentation can be
run "in a loop or with hands-on control," he added.
Users can cue up individual files or sequence them as a
loop that can be paused, run unattended, or customized.
Presentations can also be burned onto CDs.
Israel, creates presentation and digital signage software
for clients such as Procter & Gamble, Johnson &
Johnson U.K., Coca-Cola Ireland, Arriva, Great American
Insurance and the Museum of Modern Art, New York.
Said Fleischer: "PR,
sales and marketing people can benefit from the experience
we gained in providing digital signage and presentation
solutions for the biggest companies."
A seven-day free trial
of the product is available for download via www.power2show.com.
Incorporated, a graphics and logo design firm in
Madison, Wisc., has relocated to Middleton to house a growing
staff. The firm has worked for clients like Dunkin Donuts
and BMW Mini and specializes in creation of infographics,
icons, maps and visual instructions. 7609 Elmwood Avenue,
#201, Middleton, WI 53562; funnelinc.com. ...WPPs
unit has launched Promo+, a tool to measure promotional
campaigns of marketing-focused companies like retailers.
...M+R Strategic Services
helped the Chicago Council on Global Affairs release its
Task Force report, which noted a need for greater Muslim
American civic and political engagement to prevent
the alienation of a community that is vital to U.S. relations
with the Muslim world at large. The group was founded
in 1922 as the Chicago Council on Foreign Relations. ...PR
Societys New York chapter has set up a college
fund under the Societys 501(c)3 foundation. The chapter
plans to seek funds for scholarships, building on its annual
Philip Dorf Memorial Scholarship.
Isaf, senior VP and PR unit leader, Arnold Worldwide,
to Weber Shandwick, Cambridge, Mass., as a senior VP in
its financial comms. practice. He was with Arnold since
Sacks, director of federal government relations,
PA, policy and comms. for Verizon, to Democracy Data &
Communications, Washington, D.C., as senior VP of political
involvement. She was Verizons primary lobbyist for
about 40 House Democrats and served as a liaison with other
party entities. Earlier, she was a marketing and comms.
analyst for MCI Comms.
Sharp, lead design director, Orbitz.com,
to Spectrum Science Communications, Washington, D.C., as
director of technology + design. She recently spearheaded
the re-design of CheapTickets.com
Duning, executive VP, EFXMedia, to SpeakerBox Communications,
McLean, Va., as COO. He was previously EVP for Multi-Media
Holdings. He also founded and publishes a monthly e-newsletter,
Dinges, VP of external affairs, McCormick Tribune
Foundation, to Allstate Insurance Company, Northbrook, Ill.,
as assistant VP of public social responsibility.
Reid, chief marketing officer for Hudsonville Creamery
& Ice Cream, to Spartan Motors, Charlotte, Mich., as
VP of public affairs and brand/strategic management. Reid
heads marketing, corporate comms., and branding in the new
post at Spartan, which makes chassis and recreational and
emergency vehicles. He was previously with furniture maker
Herman Miller and its subsidiary Milcare.
Parker, senior counsel and lead practitioner for
corporate affairs, high-tech and IR at Peyron & Associates,
to American Commerical Lines, Jeffersonville, Ind., as VP
of IR and corporate comms. He is the primary media contact
for the marine transportation and service company, which
posted $940M in 2006 revenues.
Chumney-Hancock, senior communications specialist
at CHRISTUS Health, to Vollmer PR, Houston, as VP of its
hospital and healthcare unit managing accounts like NightRays,
Universal American, and Legacy Bonds.
Gannon, marketing and PR manager, Zannel, to Concept
Communications, San Francisco, as senior A/E. She was previously
Leggett to senior director and Melissa
Pluta to senior A/E, E. Boineau & Co., Charleston,
S.C. Leggett joined in 2005, while Pluta joined in 2006.
Stacey Page to A/S, MWW Group, Seattle.
Widmeyer, chairman/founder of Widmeyer Communications,
has been named a member of the David Rockefeller Fellows
Program, a Manhattan-based program that has executives meeting
with New York City leaders to address issues and potential
partnerships to support city operations.
Edition, December 19, 2007, Page 7
PROFIT NEARS $100M
from page 1)
interest, taxes, exceptional items and amortization of intangible
assets. UBM said an exact value of such deductions could
not be given because other UBM units are also involved in
that force companies to practice full and immediate disclosure
are driving growth, said BS, adding that even more regulation
is ahead. PRN is promoting such regulations in Europe, said
PRN COO David Armon.
Stearns said UBM is still finding its way and
is laggard in switching from print to online.
counters that the percentage from print revenues is declining
as other parts grow, especially its CMP operations where
print made up 37% of first half revenues vs. 73.7% in 2005.
Only 15% of profits in the half came from print, UBM said.
About 85% came from face-to-face media such
as trade shows and events, data businesses, and PR Newswire.
debt is low. Stock is currently around 620 pence, trading
at 13 times estimated 2007 earnings.
Private Securities Litigation Reform Act of 1995 (Safe
Harbor) made companies add lengthy cautionary statements
to their press releases about anything forward looking.
In addition, Fair Disclosure rules of the SEC
forced them to send out releases on anything remotely "material."
While PRN and BW are not on the New York Stock Exchange
list of official disclosure media (Dow Jones, AP, UPI, Bloomberg,
Reuters) they are often used by public companies for disclosure
purposes. They charge by word count. PR firms that mark
up such releases by 15% or more also benefited.
PR firms are heavy users of PRN and BW. A slide in a UBM
presentation Sept. 27 talked about an 18.9% growth in the
"PR sector" in the first half to $23.1M.
were the logos of Porter Novelli, Ketchum, Fleishman-Hillard,
Ogilvy PR, Hill & Knowlton and Burson-Marsteller. UBM
said business from other firms was included in that total.
press releases of PRN rose from 60% to 70% of its messages
in 2001. Revenues were $178M. Profits dipped 13% to $50M,
a margin of about 30%.
and Business Wire constitute a duopoly in the
electronic news release business, says Bear Stearns.
which had revenues of $127M in 2006, was sold that year
to Berkshire Hathaway. Lorry Lokey, founder of BW, was called
one of the 50 Greatest Givers by BusinessWeek
Nov. 26, 2007. His gifts to charities were said to total
Rebuffed UBM in 2001
UBM, with estimated sales
of 790M pounds in 2007, failed in an attempted hostile takeover
of Medialink in 2001.
It offered $5 a share
or $29M for Medialinks 5.8 million shares (then trading
Charles Gregson, CEO of
PRN since 2005 and an executive director of UBM 11 years,
was paid 203,440 pounds in basic salary in 2006; 43,633
pounds in benefits, and 217,131 pounds in bonus (50% was
deferred into shares under the Bonus Investment Plan). His
pay totaled 751,005 pounds in 2005.
20+ Offices into Three
PRN in 2006 combined more
than 20 U.S. offices into three located in Cleveland, Albuquerque
and Washington, D.C. Armon, who headed Cleveland, said about
20 staffers in Cleveland and 15 others at a training center
there joined a dozen from other offices.
East Coast bureaus were
combined in Cleveland under Glenn Frates. Moving to Albuquerque
(100+ staffers) under Janine Caldwell were the West Coast
and Central bureaus.
Washington, D.C., continued
as an office. PRN had acquired U.S. Newswire in D.C. in
2006 for $19 million. Revenues were $6M. Sales and media
relations staff remained in 20-plus cities.
Armon cited employee retention
as a key reason for combining offices. Markets like New
York or Los Angeles have high turnover because there is
a job on every street corner, he said. Employees
stay on for years and even entire careers in centers where
PRN has a lot of employees and there is a clear career progression
path, he added.
Offices involved in the
changes include Boston; Coral Gables; Tampa; Charlotte,
N.C.; Philadelphia; Pittsburgh; Southfield, Mich.; Minneapolis;
Dallas; Houston; Salt Lake City; Phoenix; Denver; San Diego;
Los Angeles; San Francisco and Redwood City, Calif. BS says
UBM is also improving PRNs margins by upgrading
editorial software, off-shoring and outsourcing, and implementing
data management for sales efforts.
CMP in 2000
UBM in 2000 paid $920M
in stock for publisher CMP of Manhasset, N.Y., which was
nearly double its sales. Publications included Information
Week and other technically oriented publications. A
major part of CMPs business is hosting major trade
PRS A BIG HIT AT FEMA, SAY
The Dec. 6 visit of eight
PR Society leaders to offices of the Federal Emergency Management
Agency was a truly wonderful event, a leadership
teleconference was told Dec. 11.
The meeting was set up
in the wake of the fake press conference that
FEMA officials held Oct. 23 during the California wildfires.
FEMA staffers, who appeared to TV viewers to be reporters,
posed questions to No. 2 FEMA official Harvey Johnson.
PRS chair Rhoda Weiss
told the teleconference that PRS leaders gave a comprehensive
ethics lesson to 100 PA staffers of FEMA and the Homeland
Security Dept., some at the D.C. headquarters of FEMA and
others at 10 branch offices. She said that giving such instructions
was a highlight of her career. Michael Cherenson,
who will be chair-elect in 2008, said the meeting was a
truly wonderful event that was frank and open
and had a cathartic effect on the government PA employees
truly appreciated it.
We made America
a little stronger as a result of that day
we made a
strong impact, he said.
Jeff Julin, who will be
chair in 2008, said the visit to FEMA h.q. was a highlight
of the advocacy program of PRS that allowed the Society
to share our body of knowledge and our collective
Edition, December 19, 2007,
- YEAR IN REVIEW
you can't justify it to your mother, then don't do it,"
D.C. crisis expert Richard Levick told a crisis wrap-up
in the Wall Street Journal.
is "15% facts and 85% perception," PR Society
crisis expert James Lukaszewski told the Canadian Broadcast
Corp. Radio series called "A Century of Spin."
PR lays out the "facts of the matter from the perspective"
of the client, he said.
people "make flower arrangements of the facts,
placing them so that the wilted and less attractive petals
are hidden by sturdy blooms," novelist Alan Harrington
told the New Yorker in a 12-page article on Howard Rubenstein.
The article described Rubenstein as "a gentle fixer."
job of the press is to ask "tough questions"
and the job of PR is to provide "hard answers,"
Tim Russert told the PR Society in Philadelphia.
a definition of PR: it is the exercise of power by
controlling the flow of information. If a given audience
doesn't know about something, it's powerless to do anything
America runs on clean information and PR and the
press must work together to keep the stream flowing and
pure. No one wants to drink contaminated water or take "info
pills" that have Mickies in them.
Weiner, head of research at Ketchum, said research
shows PR returns about $6 for every dollar invested while
ads return about $1.20.
problem with today's PR is that the press is moving
at blinding speed while PR waits for numerous approvals
(client, marketing, finance, CEO, legal, etc.). The story
hits the web where it's picked up by Google and other "crawlers"
and remains there forever.
operate 24/7 but almost no PR does. Editors' names,
e-mails, phones, likes, dislikes, etc., are available on
numerous electronic databases but all national and local
PR groups bar press access to their online member databases.
orgs work hard to maintain military silence no matter
what is said about them. They're like the guard at Buckingham
Palace who wouldn't flinch even if a bee stung his nose.
others seek to overwhelm and intimidate audiences
with unlimited, overbearing hype. Anyone not on their "bandwagon"
answer to these types is Abe Lincoln, who said in
1837 that the only acceptable form of public discourse is
"reason, cold, calculating, unimpassioned reason."
PR students are learning from PR profs: that they
must "first serve society" and that PR is a good
major even if they don't go into PR (Prof. Karen Russell
of Univ. of Georgia) and PR people are "public servants"
(Prof. Betty Jones of UGA).
were disappointed that Philadelphia Inquirer
publisher Brian Tierney, a longtime PRS member, did not
do the history of PRS on its 60th anniversary when PRS met
there Oct. 20-24.
In fact, his reporters
did not even cover him when he spoke at the conference or
write anything about the conference.
One columnist named speakers
at the upcoming meeting and left him out. Philadelphia
Bulletin sent a reporter who wrote 400 words.
Bill Huey, who has taught ad/PR at three universities,
blasted the report on PR education by PRS ("The Professional
Bond") for saying more Ph.D.s in PR are needed. Ph.D.s
help schools get grants but students need teachers who have
hands-on experience, he said.
chair Rhoda Weiss, attending a meeting of PR people
at the State Dept. in Washington, D.C., Jan. 10, slipped
and fell on wet stairs outside the Eisenhower Office Bldg.
and apparently broke her leg. She was seen in a wheelchair
with her leg in a cast the next day. Weiss refused to talk
about this (or anything else) with us the entire year.
that scored poorly on Fortune's "America's
Most Admired Cos." list did better on Wall St. than
those with good reputations, said a study by Prof. Meir
Statman of Univ. of Santa Clara Univ. and Deniz Anginer,
Univ. of Mich. Investors in admired companies are penalized
by an aura of positive feelings, they said.
the syndicated comic strip about office life with
an audience of 150 million, poked fun at PR. An attack with
fangs came from Washington Post columnist Gene Weingarten
who likened PR pros to the Gaboon viper, a six-foot poisonous
African snake with two-inch fangs.
PR firms flourished in 2006 with 20 of 50 largest
having gains of 20% +. Participating in the O'Dwyer rankings
based on top pages of tax returns and W-3s were 140 independents.
Tech, health, financial were hot.
17 marked the eighth anniversary of Omincom's high
of $53.50 in 1999 (adjusted for 2-1 split this year). But
OMC is only $48 now in spite of $50M+ paid to CEO John Wren;
the removal of 60M of 386M shares from the market, and "buy"
or "hold" advice from practically all the analysts
on the stock for eight years (all doing business with OMC).
This is one story that doesn't "fit" the NYT.
Ad Age named Wren its "Man of the Year"
clue to OMC's "beleaguered" (Barron's) stock:
it owes $3.07B long-term. WPP owes $4.14B; IPG, $2.32B,
and Publicis, $2.84B (total is $12B). Their leaders put
much of the ad/PR industry in hock for decades by overpaying
for acquisitions and overpaying themselves.
marked the 25th anniversary of the seven "Tylenol
murders" by declaring Johnson & Johnson's handling
of it "the gold standard of crisis control." Forgotten
were the seven 1982 victims and Diane Elsroth, 23-year-old
victim in 1986 of the same easily-doctored capsules that
should never have been marketed again (or even in the first
place). You never saw her picture nor the pictures of any
of the seven.
long the standard source of editor info, became Cision
after its purchase by the Observer Group, which adopted
the name Cision. Cision North America lists 400,000 editors
at 130,000 outlets. Cision, listed on the Nordic Exchange,
had sales of $270M in 2006.
PR software and services company, which went public
at $9 in 2005, made additional offerings and saw its stock
rise to $35 and sales to upwards of $60M for 2007.
of Don Imus stunned the PR world but he was back
in the fall. He tried to apologize to the Rutgers team but
they wouldn't accept it until after he was canned.
tragedy of 32 murders and a suicide at Virginia Tech
put the spotlight on the fatal link of PR and marketing.
"PR" people doubling as marketers/fundraisers
for VT were at the pow-wow that suppressed news of the initial
two murders for two-and-a-half tragic hours.
of the Washington Post wrote: "The marketing-PR
axis makes the team of Hitler and Mussolini seem benevolent."
to PRWeek editor Julia Hood and her husband
on the birth of their baby boy, Leo, in November.
record 171 journalists and other news media staff were killed
in the first 11 months of 2007, topping the high of 168
killed in all of 2006. No PR group ever shows any interest
in this carnage.
a Hill & Knowlton exec as saying that cash payments
to Chinese news crews "for transporting equipment"
can top $700. Reporters often get a $25 "transport"
fee just to attend an event.
Group said ad agencies that win the most awards are the
most profitable. Agencies now publicize themselves
by promoting their awards instead of advertising in Ad
Age and AdWeek, said Al Reis. The weakened mags,
suicidally, give lots of awards. AA lost longtime editor
Scott Donaton and AdWeek cut to 33 issues for 2008 (new
title needed?). OgilvyOne boasted winning 595 awards but
wouldn't provide a list of them.
relation to the University but influential) advises
the college-bound that liberal arts is the best preparation
for PR. Half of incoming freshmen consult it. The Review's
take on PR is that "ads lie about the product and PR
lies about the company." PR profs replied that PR majors
only take one year of PR courses and study liberal arts/sciences
the other three years.
PR newswire services were acquired. CCNMatthews,
Canadian PR newswire, which owned Market Wire, was bought
by Omers Capital Partners. Market Wire then acquired Collegiate
Presswire. Primezone was taken over by NASDAQ and renamed
Rowland, one of the dominant PR counselors in the 1970s
and 1980s, died at the age of 81. He helped P&G, IBM,
DuPont and others to conduct highly targeted PR campaigns
at discreet demographic groups.
Basista left as executive director of the Arthur W. Page
Society after six years and was replaced by Tom Nicholson.
Club of Los Angeles, 50 years old in 1995, folded.
PRS/L.A. and Entertainment Publicists gave it tough competition.
Verbinnen & Co. bought 51% of itself back from U.K.
conglomerate Huntsworth, the deal to be completed by the
end of 2009.
Dowie, former head of Fleishman-Hillard/L.A., was
given 42 months in jail on charges of falsely billing the
Dept. of Water & Power $500K.
Call ten PR people
and only one will pick up the phone.
Almost all leave messages like, "Sorry I'm not here"
followed by "Have a great day." Please drop the