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Internet Edition, January 16, 2008, Page 1

TEXAS MULLS PUSH FOR GALVESTON BAY

Texas is looking for PR input as it mulls a three-year campaign touting the environmental and economic importance of Galveston Bay, the seventh largest estuary in the U.S. covering 600 square miles.

Studies conducted by the state found that citizens are not aware of the bay’s impact on the economy as a conduit for petroleum and shipping, nor are they keen to its vital importance as an ecosystem for commercial and recreational fishing.

The Texas Commission on Environmental Quality is asking for recommendations for implementing a “comprehensive public relations and social marketing campaign” about the bay, according to a request for information document issued by the state. That PR effort will serve the dual purpose of promoting a positive image of the estuary and encouraging citizen and business conservation efforts.

“The goal is to create a broad, compelling Estuary Program campaign message that indicates the estuary’s value and illustrates citizens’ positive and negative effects on the bay, unifies bay communities and garners support for region-wide action that sustains all uses,” reads the RFI.

The RFI was issued to prepare a detailed request for proposals for the campaign.

Deborah Brown ([email protected]) is point of contact. RFI is at http://esbd.cpa.state.tx.us.

SUSMAN NAMED PFIZER COMMS. CHIEF

Sally Susman, senior communications officer at the Estee Lauder Companies, has been named senior of worldwide communications at Pfizer.

Susman, who also takes on the title of chief communications officer, had been with Estee Lauder since 2000 serving as its spokeswoman and heading all PR disciplines.

She succeeds former Edelman and Clinton Administration official Loretta Ucelli who took the Pfizer post in `05. Ucelli resigned Dec. 31.

Earlier, Susman directed media relations, internal communications and government affairs for American Express in London and New York after eight years in government service at the Dept. of Commerce., including Deputy Assistant Secretary for Legislative and Intergovernmental Affairs.

Pfizer chairman and CEO, Jeff Kindler, noted Susman’s experience in the public and private sector, and stressed the importance of communicating the drug maker’s business strategy as it “continues to drive change” in 2008.

NIRI CHOOSES MORGAN FOR TOP POST

Jeffrey Morgan, executive VP for the Futures Industry Assn. and chief staff executive for FIA’s non-profit affiliate, the Institute for Financial Markets, has been elected president and CEO of the National Investor Relations Institute.

He is the fourth executive to hold that top role since 2006 for the IR group.
Morgan takes over for interim CEO Linda Kelleher, who slides into an executive VP role at NIRI after 10 months atop the organization.

Morgan has been with Washington, D.C.-based FIA for nine years, managing a staff of 25 and a $15M budget for the futures market trade group, which has more than 180 corporate members.

Search firm Spencer Stuart consulted on the CEO search with a six-member NIRI team.

NIRI, based in Vienna, Va., counts 4,400 members across 2,100 public companies in the U.S.

Nancy Humphries, former BellSouth VP-IR, resigned the president/CEO post at NIRI after seven months in early 2007. She followed the 24-year tenure of Lou Thompson.

WS WINS $1.8M EXTENSION

Weber Shandwick scored a $1.85M extension from Massachusetts’ healthcare reform agency, an extension of its pre-existing one-year $4M PR contract.

WS picked up the marketing communications work with the Commonwealth Health Insurance Connector Authority in January 2007 after an RFP process from the state called for pitches to back its universal healthcare program, which passed in 2006.

The Authority’s board voted on the lucrative extension, which runs from Jan. 22 through Oct. 31, at a meeting on Jan. 10.

The Interpublic unit’s Cambridge office has handled market research, surveys, communications planning, ads during Red Sox games and on major affiliates, events, and media relations.

A letter to the Authority’s board from chief communications officer Joan Fallon recommends the extension and says the firm’s work has been “excellent” through a year of “growth and change.”

She says the imposition of tax penalties under the healthcare program this year and in the future will trigger public confusion and concern, fostering the need for advertising and outreach support.

WS won an RFP that went to 25 agencies last year. It was the only responding firm not to ask for a commission on media buys.


Internet Edition, January 16, 2008, Page 2
   

PR COUNCIL BANKROLLS NL FROM BULLDOG

The Council of PR Firms plans to bankroll a weekly electronic newsletter in conjunction with Infocom Group, parent company of Bulldog Reporter and Daily ‘Dog.

Infocom, which is headed by Emeryville, Calif.-based Jim Sinkinson, is to receive an $85K payment from the Council under the one-year deal.

The partners are to share advertising and sponsorship revenues on a 50/50 basis. The Council claims that it has about $50K in verbal commitments from would-be sponsors.

The purpose of The Weekly Buzz is to increase “visibility for the Council and its members among member employees and clients, current and potential,” according to a Council document.

Ray Kotcher, Ketchum CEO and Council chair, could not be reached. His assistant did inform O’Dwyer’s that Kotcher “does not accept unscheduled calls."

Matt Shaw, VP at the Council, emailed a statement attributed to Kotcher. It described the NL as a “special purpose publication” to “give voice to how PR firms are providing—and can continue to provide—ever more value to clients particularly in this complex communication environment.”

The statement says content will be developed by the staffs of Bulldog Reporter and Council member firms and their clients.

Kathy Cripps, president of the Council, said the TWB is a way to “communicate more deeply with member firms.”

The Council document promises “thought leadership” pieces from Council members, a blog and “transactional news” from member firms. An editorial oversight committee is expected to be formed.

TWB will also serve as a promotional tool for the Council. For instance, the NL will promote “benefits” to members of the Council, such as access to its industry surveys.

The Council report anticipated either a January or February launch date, but the email sent by Shaw says the debut will occur mid-March.

‘G-MAN’ CHECKS OUT BGR

Former Federal Bureau of Investigation agent Tom Locke joined BGR Holding on Jan. 16 as managing director.

He is the first significant new hire since the Washington-based firm “re-branded” from Barbour Griffith & Rogers on Dec. 18.

Locke worked at the FBI for 32 years, stepping down as acting assistant director of the investigation division in D.C.

He conducted the Bureau’s probe of the 1983 American Embassy bombing in Beirut and played a key role in the FBI’s worldwide investigation of the 9/11 terror attacks.

At BGR, Locke will counsel clients on dealings with the FBI, Justice Dept., CIA and Treasury Depts.

He also will perform corporate background checks, risk analysis and due diligence on people and organizations for the firm.

SITRICK AIDS SEINFELD SUIT

Sitrick and Company is handling media for author Missy Chase Lapine’s legal team as she sues Jerry Seinfeld and his wife, Jessica, for copyright infringement and defamation.

Lapine charges that Jessica Seinfeld plagiarized Lapine’s book “The Sneaky Chef,” which shows parents how to “hide” fruits and vegetables in kids’ meals.
Jessica Seinfeld penned a similar book, “Deceptively Delicious,” a bestseller, last year.

Lapine also accuses Jerry Seinfeld of going on a “malicious campaign” against her, including calling her a “nut job” and “hysterical,” according to her New York-based legal team at Kasowitz, Benson, Torres & Friedman.

Former New York Times reporter Seth Faison, based out of New York, and James Bates, ex-Los Angeles Times biz writer based in L.A., are handling the account at Sitrick.

The suit was filed in Federal District Court in New York Jan. 9.

WPP MAKES MOVE ON YANKELOVICH

WPP Group is acquiring Yankelovich Holdings, a top trends and lifestyle research business.

The 30-year old firm serves clients such as Unilever, Kraft, Rockefeller Foundation and GlaxoSmithKline.

Based in Chapel Hill, N.C., Yankelovich had revenues of nearly $18M in `06. It claims assets of almost $10M.

WPP’s latest trophy is noted for its Yankelovich MONITOR, which predicts the forces shaping American attitudes, values, lifestyles and behaviors and then identifies marketplace opportunities.

The firm also runs Insights Integration and The Segmentation Company.

Yankelovich will be added to WPP’s Henley Centre HeadlightVision unit, which is part of WPP’s Kantar research operation.

Under the deal, Yankelovich will continue to be headed by J. Walker Smith. Sian Davies leads Henley Centre HeadlightVision.

WPP’s expanded research offering includes 145 staffers in offices in New York, London, Delhi and Mumbai.

The company has plans to open in China.

H&K HANDLES CADWALADER CUTS

Hill & Knowlton is spreading news of Cadwalader, Wickersham & Taft laying off 35 lawyers due to “unexpected and persistent volatility” in the financial markets.

The statement stresses that the “personnel reductions” were not due to substandard performance.

“Talented lawyers who have made significant contributions to our firm” are among those cut from the payroll.

The Wall Street firm also is shifting a number of lawyers involved in the lackluster capital markets and global finance practices to more robust areas such as the restructuring and corporate departments.

CW&T is more than 200 years old. It has offices in New York, Washington, Charlotte, London and Beijing.


Internet Edition, January 16, 2008, Page 3
   
MEDIA NEWS
    

GANNETT NEWSPAPER CHIEF TO RETIRE

Sue Clark-Johnson is retiring as president of Gannett’s newspaper division in May, capping a 40-year career.

She assumed the presidency of the 85-member newspaper group in `05. Earlier, Clark-Johnson headed Gannett’s Phoenix Newspaper group, publisher of the Arizona Republic, and its Pacific Newspaper Group.

The 60-year-old Clark-Johnson called the decision to step down a difficult one. “I have been with Gannett for 40 years through evolution, transformation, good times and bad,” she said in a statement. She plans to relocate to the West to be closer to family members.

Craig Dubow, CEO of Gannett, said a successor to Clark-Johnson will be named later. Her term as chairwoman of the Newspaper Association of America ends in April.

WSJ OPENS UP SITE A BIT

News Corp. is providing free access to Wall Street Journal editorials, op-eds and associated video content. Those sites were available on a paid-only basis prior to Jan. 10.

In making the announcement, the WSJ said it is “delighted to offer our worldwide readers access to our message of free people and free markets—for free.”

New Corp. CEO Rupert Murdoch told a recent investor conference in Australia that a totally free WSJ was likely. News Corp. closed on the acquisition of WSJ parent company Dow Jones & Co. in December.

The WSJ website also will offer free clips from its weekly TV show “Journal Editorial Report,” which runs on the Fox News Channel.

CONDE NAST SHUFFLES RANKS

Mitch Fox, Alexandra Golinkin and Amy Churgin have exited Conde Nast Publications in a major revamp of the magazine group.

Fox was group president and publishing director of Golf Digest Group and Conde Nast Bridal Media Group.

Golinkin was publisher of Lucky, while Churgin was senior VP of Conde Nast Media Group overseeing corporate sales.

CEO Chuck Townsend has expanded responsibilities for a number of key executives.

Tom Florio, VP and publishing director of Vogue, Men’s Vogue and Vogue Living, is upped to senior VP. He adds Teen Vogue to his portfolio.

William Wackermann, VP and publisher of Glamour, adds oversight of Conde Nast Bridal Media Group. He is now senior VP.

Louis Cona, VP and publisher of The New Yorker, is promoted to senior VP of the Conde Nast Media Group. Drew Schutte replaces Cona at TNY.

Gina Sanders, who headed Teen Vogue, takes over for Golinkin at Lucky.

SUN SETS FOR PUBLIC EDITOR IN BALTIMORE

The Baltimore Sun has done away with the public editor position with the promotion of Paul Moore to the deputy managing editor for newsroom operations.

Publisher Tim Ryan told staffers the paper plans to keep up close interaction with its readers. “We will launch a new blog on baltimoresun.com, offering readers the opportunity to ask questions and comment about our coverage,” he wrote in a memo.

Moore will moderate the blog and coordinate response from top editors.

In his new duties, Moore will supervise news editing, copy and design desk and the photography department.

CRAIN’S NY LAYS OUT GROUND RULES

Crain’s New York editor Greg David says the mission of his weekly is to examine the most important issues affecting the city’s businesses and local economy.

He considers “arts and nonprofit groups” to be businesses and “we cover governmental matters and social trends,” according to his annual column spelling out the magazine’s journalistic philosophy.

Concerning PR, David says pros “succeed more than others in pitching their ideas only they know how to interest a reporter in a piece.”

He continues: “The best way to get a story in the paper is to approach a beat reporter (beats are listed on our website; e-mail is preferred).”

Reporters are keen to find out “what is about to happen so that they can write stories for our daily web alerts.”

David warns that reporters are very busy and don’t have assistants, “so they usually won’t respond unless they think an idea is useful.”

He also tells PR people to stay away from the magazine’s marketing and ad staffs because they “can’t help you place a story in the paper.”

David welcomes pitches from all sources. He stresses that advertisers receive no preference.

GARRUBBO JOINS BLOGHER

Gina Garrubbo, a founder of Terralina, a natural skincare company, has joined BlogHer as executive VP and will work to position the guide to blogs by women as a major women’s media network.

She has worked with companies such as Discovery Communicatioins, Oxygen Media and The Learning Channel.

Garrubbo also was involved with the launch of women.com.

BlogHer was launched in `05 with the mission of creating opportunities to boost “exposure, education, community and economic empowerment” for women who blog.

Racepoint Group does its PR.

WAPO REVAMPS WEBSITE

The Washington Post has hired the Wonder Factory to create an overhaul of its website.

Jim Brady, executive editor of washingtonpost.com, told Editor and Publisher the revamp had been in the works for several months.

The Post launched its online site in `96. The revamp is expected to be in place by Election Day.

(Media news continued on next page)


Internet Edition, January 16, 2008, Page 4
   
MEDIA NEWS/CONTINUED
   

COMCAST DECLARES CLOSED CABLE DEAD

Comcast, the nation’s biggest cable TV operator, has joined with Panasonic to launch a co-branded portable digital video player with Panasonic. The AnyPlay device will record up to 60 hours of video and play DVDs and CDs.

AnyPlay can record programming from any cable operator’s system.

Brian Roberts, CEO of Comcast, declared the “era of closed cable is over and the era of open cable is here.” He unveiled AnyPlay during the Consumer Electronics Show in Las Vegas.

Comcast also introduced Fancast.com, an online destination the enables users to watch, manage and find entertainment content on TV, DVDs, online or in movie theaters. It is billed as a “personalized entertainment experience.”

AD INDUSTRY TOPS MEDIA CLOUT

The advertising industry is set for a golden age, according to Adonis Hoffman, senior VP at the American Assn. of Advertising Agencies, who penned an op-ed piece in Broadcasting & Cable’s Jan. 7 issue.

Hoffman contends that advertising, which has suffered a “latent inferiority complex,” is on the rise due to the “maturation of digital, interactive and broadband technologies.”

He notes that online spending, which has already surpassed the amount of ad dollars geared to radio, will soon top newspaper and magazine spending.

To Hoffman, that means paid-for consumer content will slowly wither away. “The proliferation of ad-supported networks provides so-much choice that paid content will have to be highly targeted or extremely narrow to demand subscriptions,” he wrote.

Advertisers, in his view, “could eclipse media as arbiters and developers of non-news programming content. When consumer choice abounds and media lack leverage, advertisers can be the kings,” according to Hoffman.

HOLLINGER PROMOTED AT DISCOVERY

Mark Hollinger, who was president-global business and operations at Discovery Communications, has been promoted to COO.

He also is in charge of Discovery Studios, as well as corporate marketing, PR, business affairs, legal, information technology, and production management.

Hollinger joined Discovery in 1991 as VP and deputy general counsel.

Discovery CEO David Zaslav said Hollinger’s promotion reflects the reality that he has been running things for a long time.

He called Hollinger the “operational leader” of the company.

YOUTUBE FOR ‘EGGHEADS’ LAUNCHED

BigThink, a social site for people interested in politics, business and public issues, has launched backed by investors including Peter Thiel, co-founder of PayPal, former Harvard University president Larry Summers and TV producer Gary David Goldberg.

The site is the brainchild of former “Charlie Rose” staffers Victoria Brown, 33, and Peter Hopkins, 24.

Hopkins told the Jan. 7 New York Times that the site wants to counter the notion that “Americans are stupid,” the guiding philosophy used by many venture capitalists when it comes to bankrolling Internet companies.

Big Think has compiled a library of 180 videos of thinkers such as New York Times columnist Paul Krugman, Virgin Group’s Richard Branson, PBS anchor Jim Lehrer, former Congressman Lee Hamilton and Presidential contender John McCain.

Hopkins hopes the site will become a “must” for people open to hearing opposing ideas. “People should expose themselves to the counterpoints,” he told the NYT.

MICROSOFT FORGES CONTENT DEALS

Microsoft has signed agreements to receive film and TV programming from Walt Disney Co., NBC Universal, Metro-Goldwyn-Mayer and CBS’ Showtime Networks unit for its MSN service and Xbox Live.

Chairman Bill Gates made that announcement during his “swan song” presentation at the Consumer Electronics Show in Las Vegas.

The deal better positions Microsoft to compete against Apple’s online offerings.

The Redmond, Wash.-based software giant also unveiled a pact with NBCU covering the '08 Olympics set for Beijing.

Microsoft’s Silverlight technology will enable the Olympics site to incorporate more than 3,000 hours of video programming and allow viewers to customize coverage of the Games.

McGRAW-HILL CUTS 600+ JOBS

McGraw-Hill announced that it is cutting three percent of its work force (611 jobs) as the subprime mortgage mess takes a toll on its Standard & Poor’s unit.

Moody’s, which competes with S&P in the credit rating business, is also cutting 275 staffers.

McGraw-Hill CEO Harold McGraw said “reducing staff is never an easy decision, but we believe the steps we have taken will strengthen our organization.

He believes the company is well-positioned for long-term growth in the “knowledge-based global economy.”

The company is taking a $43.7M pre-tax fourth-quarter `07 charge to cover employee severance costs.

The S&P-led financial services sector accounts for $18.8M of that employee expense.

McGraw-Hill Education is taking a $16.3M charge as it moves to “better address new and existing revenue streams for textbooks and facilitate its strategic shift toward increased investments in digital and custom products.”

Correction: An article last week (1/9) about Fox Business News’ slow start incorrectly reported that CEO Roger Ailes had boasted about burying CNBC. An FBN staffer said Ailes never made such a claim nor did he make any ratings predictions.

 
Internet Edition, January 16, 2008, Page 5
 
NEWS OF PR FIRMS
 

RENO, LOVALLO EYE CAPITAL MARKETS PR

Agency veterans Tom Reno and John Lovallo have formed Stamford, Conn.-based Solebury Communications, a communications firm aligned with investment bank Solebury Capital Group.

Reno and Lovallo worked together at Makovsky & Co. earlier in their careers.

SC's practice areas include corporate comms., IR and capital markets comms.

Reno most recently headed Ogilvy PR Worldwide's corporate practice and previously held top posts at Hill & Knowlton, GCI Group and Citigate. Lovallo, a veteran of Ogilvy and Weber Shandwick, recently headed his own firm.

Alan Sheriff, CEO of Solebury Capital, said his firm backed the new unit because it saw a client need for communications with a deep understanding of capital markets. He said Solebury had been looking for more than a year for the right partners.

Reno said the firm plans to have a mix of shared and independent clients. It’s own clients include Wavecom, Lend America and Team Health, and Reno said he and his partner are in discussion with a number of Solebury Capital’s clients.

He said being part of an investment bank gives his firm insight and access that he thinks independent firms will have a hard time matching. “We not only have access to all of the research tools that bank uses, but the bankers themselves,” he said. “Our missions are also surprisingly similar … to manage risk and grow shareholder value … so the businesses are naturally synergistic.” Info: soleburycomm.com.

KEKST HANDLES ZAGAT DEAL SEARCH

Kekst and Company is handling the announcement that Zagat Survey is pursuing a possible sale.

Kekst partners Caroline Gentile and Wendi Kopsick are guiding news of the search for a deal.

Zagat has tapped Goldman, Sachs & Co. to find “strategic opportunities” for the company which could come in the form of a joint venture or sale.

The company sold 5.5 million guides and counts 1.5M registered users on its website.

Tim and Nina Zagat, who founded the company in 1979, said in a statement released by Kekst that 2007 was the company’s “best year ever.”

SV PILOTS CNET TAKEOVER BID

George Sard’s Sard Verbinnen & Co. is advising Jana Partners, which is spearheading an investment group out to gain control of CNET Networks.

The Jana-led consortium currently controls an eight percent voting stake in CNET, and wants to elect seven reps to an expanded 13-member CNET board.

Barry Rosenstein, managing partner at Jana, called CNET an “underperforming company.” He aims to increase shareholder value by “building on its top-notch editorial talent and premier Internet assets.”

CNET shares, according to Jana’s statement, rose less than one percent in `07. That compares to a 10 rise in the NASDAQ Index.

 
NEW ACCOUNTS
 

New York Area

Susan Magrino Agency, New York/Millennium Partners Sports Club Management, as AOR for the company and its six health clubs under the Sports Club/LA and Reebok Sports Club/NY brands. SMA has also picked up Reem Acra, a luxury eveningwear and bridal designer, for U.S. PR, branding and special event planning.

Corbin & Associates, New York/Ascendia Brands, health and beauty products, as AOR for PR. Sister firm Hillman & Partners picked up AOR duties for advertising and marketing.

Dan Klores Communications, New York/FEARnet, advertising-supported horror content network, for PR focused on pop culture media in the first half of 2008.

KCSA Strategic Communications, New York/Titan Worldwide, outdoor advertising sales, as AOR for PR to gain recognition in current and new geographic markets, as well as new product and services support.

Manning Selvage & Lee, New York/Match.com, as AOR for the online dating site and sister site, Chemistry.com.

Trylon SMR, New York/Active Response Group, direct response services, as AOR for PR.

Alison Brod PR, New York/Tasti D-Lite, frozen desserts, as AOR for PR, including expansion, new product launches, and celebrity programs.

Environics Communications, Stamford, Comm./Society for Biomolecular Sciences, for PR for its international annual meeting and media relations support for membership activities.

East

The Zimmerman Agency, Tallahassee/Florida Dept. of Health, for its $17M tobacco prevention account following a review. About $1M of the $17M is for PR with the rest allotted to advertising and interactive work.

Axia, Jacksonville, Fla./Vizergy, international hotel Internet marketing provider, as AOR for PR.

West

Burson-Marsteller, Sacramento/PCBC, regional homebuilders’ trade show, for marketing and PR for the brand, conference and its exhibitors. The California Building Industry Assn. presents PCBC.

Rogers & Cowan, Los Angeles/College Tonight, for traditional and social media to support the national roll-out of collegetonight.com, a social networking portal for college students with a .edu email address.

Blaze, Los Angeles/Sheraton Universal, which is undergoing a $30M renovation; Tutto Tutti, Melrose Ave. frozen yogurt shop, and Veroli Foods, Dallas-based Italian food company.

International

Mulburry Marketing Communications, London/
Reside International, booking agent for serviced apartments and hotel rooms, for PR for the launch of its website for the lesbian, gay, bisexual and transgender sector, www.PlanItGay.com. Mulburry is handling media relations in the U.K., U.S., France, Germany, Spain and the Netherlands.

 
Internet Edition, January 16, 2008, Page 6
 
NEWS OF SERVICES
 

MARKETWIRE EXPANDS THROUGH IMS GRAB

Marketwire has acquired International Media Services Companies, a newswire, clipping and monitoring company focused on emerging markets in Asia and Latin America.

The deal adds two offices each in China and Brazil, as well as a Miami outpost to Toronto-based Marketwire, which said it now has 17 offices across four continents.

MW president and CEO Michael Nowlan noted the importance of Asian and Latin American markets for the company’s North American and European clients.

The deal also gives MW a stake in IMS’ Communique-se, a media database and distribution company based in Brazil, and multi-year distribution pacts with the Chinese Government and Asian news agencies. IMS was previously aligned with Business Wire in China.

Hector Botero, who heads IMS, joins Marketwire as vice president, emerging markets, reporting to Nowlan. Financial terms of the deal were not released.

MW merged with CCNMatthews in 2006.

BW INKS DEAL FOR CANADA REACH

Business Wire signed a distribution agreement with CanWest MediaWorks Publications, a Canadian media company which includes CanWest News Service and reach in print, broadcast and online outlets in Canada.

BW releases are sent over CNS’ QuickWire and hosted online at the Financial Post and CW’s other newspaper sites. Canada.com will also link to releases.

CW’s other outlets include a TV division and news outlets like National Post, The Montreal Gazette and Ottawa Citizen.

CUSTOM PUBLISHERS PLAN FIRST CONFAB

The Custom Publishing Council will host its first custom content conference in New Orleans March 9-11. The event is called “Content ‘08: Re-thinking Branded Content in the Age of Engagement.”

More than 100 executives are expected for panel discussions, speeches and networking events. Topics to be covered are social networking, blogs and web technology, research, brand design, behavior modification and engagement/loyalty.

Among the slate of speakers are Joseph Plummer, chief research officer for the Advertising Research Foundation and Kenneth Neher, senior manager of interactive and relationship marketing for GlaxoSmithKline Consumer Healthcare.

Info: custompublishingcouncil.com. Cost: $695.

BRIEFS: VideoLink, a broadcast PR and video producation shop in Newton, Mass., has promoted four-year veteran Marty DeLoreto to sales manager. Chris Temper, former associate director of media development at New England Research Institutes, has joined as an A/E. ...PR Society/National Capital Chapter will have its 2008 opening leadership rally and kick-off board meeting at the DAR Memorial Continental Hall in D.C. Event is free, registration is required. Info: prsa-ncc.org.

 
PEOPLE
 

Joined

Marty Dauer, senior VP of marketing and communications at insurance broker Marsh, to Duff & Phelps Corp., New York, as managing director and chief marketing and communications officer. He was previously director of financial communiations for Tyco International in the aftermath of its 2004 executive scandal.

Jen Dowd, marketing associate at MFS Investment Management, to BackBay Communications, Boston, as an A/E. Her accounts include the Association for Corporate Growth and StarCompliance.

Richard Gillespie, executive VP, chief marketing officer, GMAC Residential, to Radian Group, Philadelphia, as senior VP of corporate communications and marketing. Mona Zeehandelaar, who held the post and headed investor relations, has left for a senior post at Towers Perrin. Radian is conducting a search to fill to IR post.

Greg Clarke, senior communications associate in Eli Lilly and Company’s global product comms. unit, to Rolls-Royce, Indianapolis, as senior manager of corporate comms. for its Defense North America division. He was previously comms. and operations manager for Ford Motor Company.

Bob McEwen, who has more than a quarter century of PR experience, is the new PR director at full-services independent ad agency Nicholson Kovac in Kansas City. His resume includes key positions at Fleishman-Hillard, Burson-Marsteller, Hill & Knowlton and Weber Shandwick. Prior to his PR career, McEwen reported for the Associated Press in Arizona and California.

Denise Paleothodoros, a 10-year veteran of GolinHarris who worked on the Florida Dept. of Citrus and General Mills, to Ogilvy PR Worldwide, Chicago, as a senior VP overseeing consumer food marketing accounts.

Narciso Tovar, director of external communications for the Home Builders Association in the Dallas area, to mundayMorning, Dallas, as VP and head of its PR practice. He was previously with Fleishman-Hillard, Cohn & Wolfe and Connors Communications.

Promoted

Matthew Henson to senior VP in GolinHarris’ corporate practice, based in New York. He was previously comms. director at the National Security and Natural Resources News Service in Washington, D.C. He was also a legislative and comms. aide to Sen. Carol Moseley-Braun (D-Ill.).

Wendy Kouba to VP, corporate communications, Wyeth, Madison, N.J. Kouba, 44, joined in September 2006 after serving as VP of comms., technical operations and product supply at the drug maker.

Frederick Kiga to VP, state and local government relations and global corporate citizen for Boeing in the Northwest region. He is based in Seattle and was formerly director of corporate and gov’t relations for Russell Investments.

Nyree Wright to VP, McGinn MS&L, Arlington, Va. She joined in 2001 from Ogilvy as an A/D.


Internet Edition, January 16, 2008, Page 7
 

NEWS USA OFFERS PUBLICITY FOR STOCK

Companies that need publicity and marketing but don’t have the funds for it and don’t mind paying in stock are being targeted by Media4Equity, a unit of News USA, Falls Church, Va., headed by Rick Smith.

Details of one of the deals are in an SEC filing Dec. 30, 2005, by Global Food Technologies, Hanford, Calif.

Stock valued at $4.45 million is to be given in return for media placements aimed at 10,000 newspapers and 6,000 radio stations and whose value is being placed at $54 million.

The contract includes an initial payment of $50,000 in cash.

Global Food is marketing a system aimed at “improving food processing methods and food safety results.” Its inspectors and equipment would monitor production and distribution of food with the aim of eliminating contaminants.

Global Media Fund is named in the SEC filing as the recipient of the stock and cash and is described as being owned by News USA, whose “beneficial owner” is Rick Smith.

However, Don Rose, CEO of GMF, says that the firm is now owned separately from News USA.

Global Media Fund, News USA Split

GMF and News USA split late last year after News USA sued Global Media Fund for $386,389, claiming that GMF had cashed out stock and had failed to pay News USA.

The action was settled on Dec. 7, 2007 in the U.S. District Court, Virginia, with all claims and counterclaims dismissed.

Both Smith and Rose expressed satisfaction with the settlement.

GMF continues to provide services for companies in return for stock but says that most of its services are in TV commercials, website creation, and production of logos and brochures, and other forms of marketing.

Almost all of GMF’s deals are for stock. Rose says the firm currently has 10-12 clients. GMF was founded in 2004. Rose has a 20-year background in business development, technology and finance.

Both Smith and Rose say their technique allows undercapitalized start-ups or even established companies to market themselves without causing financial strain.

Both provide publicity to 10,000 newspapers and 6,000 radio stations, among other services.

Smith founded News Canada in 1980 and opened News USA in 1990. His firm says it has worked for more than 3,000 companies and government offices.

Publicity Is Key Part of GFT Marketing

Global Food Technologies’ SEC filing says that the articles and radio spots that are to be produced are “a material part of our proposed marketing plan (and) are to be distributed to over 10,000 newspapers and 6,000 radio stations.”

Global Media, says the document, “agreed to produce and distribute $54 million worth of nationally-syndicated newspaper and/or radio features covering our proprietary products and services and their commercial launch into the food safety industry.”

For these services, Global Media is given the right to receive $2.2 million in shares of restricted stock based on a value of $4.50 a share (for a total of 488,888 shares), with such shares having piggy-back registration rights under the registration statement covering the offering.

Global Media was also to get $50,000 in cash and the right to receive $2.25M in shares of restricted stock payable over a three-year period and having piggy-back registration rights for a subsequent registration statement.

Global Foods’ SEC filing said that, “To date, we have not generated any revenues and we have incurred accumulated losses of $18,520,918 and negative operating cash flows of $15,553,358.” It also noted that the company has “raised substantial equity capital to fund the development of the BEST Processing System” (trademark).

This system, it said, “is now fully developed and ready for market introduction.”

BRITAIN’S PM TAPS BRUNSWICK CHIEF

British Prime Minister Gordon Brown, who has suffered a number of political setbacks, has hired Brunswick Group CEO Stephen Carter as top spokesperson.

The London Times reported that Carter is charged with presenting Brown as a “leader of substance.”

As CEO of Brunswick, a master in the “dark arts of spin,” Carter has spent much time “soothing the egos of chief executives and helping them how to disclose the best and often worst news,” reported the Times.

Brunswick, which is London’s biggest financial firm, has counseled heavyweights such as Pearson, BA, Burberry, Reed Elsevier and FTSE 100.

Carter will be in charge of PR, political strategy and research. He will attend Cabinet meetings and report directly to Brown.

His role will be similar to that of Alastair Campbell, who shaped the image of former PM Tony Blair.

Carter’s appointment has drawn derision from members of the rival Conservatives. Caroline Spelman, Tory chairman, said Brown should be “hiring staff to deliver on his promises, not another chief spin-doctor to put more gloss on the failings of his Government.”

5W COVERS UP ‘NAKED COWBOY’

5W Public Relations, on behalf of Weatherproof Garment Co., arranged to supply a lifetime of cold weather apparel to the “Naked Cowboy,” a Times Square icon who plays his guitar while attired in white briefs only.

Freddie Stollmack, founder of WGC, conducted an “intervention” Jan. 7 in which he slapped a coat on the Naked Cowboy, a New Jersey resident who pulls in over $100K a-year in contributions from tourists.

Stollmack, according to 5W’s Alexis Wallsh, has been “extremely concerned for years” about the Naked Cowboy’s health and well-being.

He urged the Naked Cowboy to don Weatherproof’s gear during the winter season—though that would cut into his business of taking photos with smiling tourists.

Stollmack is somewhat fanatical about bundling up. Wallsh says he would “put a coat on the Statue of Liberty if he could.”


Internet Edition, January 16, 2008, Page 8

    

PR OPINION/ITEMS

 

Hillary Clinton's win in New Hampshire last week caught pollsters and us by surprise. Common view is that her sudden tears washed her to victory.

Clinton took a much bigger percentage of the female vote than Barack Obama.

The allegedly liberal press has been fawning over Obama and other male candidates while sticking the needle into Clinton whenever possible. This has angered many women who feel it's "payback time."

Oprah Winfrey ducked the last four days of the N.H. primary because women deluged her website with complaints for deserting a woman (Clinton) in favor of a man (Obama).

Fox analyst Kirsten Powers says Clinton is blasted whenever she "raises her voice" but candidate John McCain, "whose temper is famous," gets a pass.

Clinton, meanwhile, has "suffered endless commentary about her icy demeanor…and when she lightened up a bit in interviews, the media were quick to spin it into a negative," said Powers.

Also getting a pass is Rudy Giuliani, whose "bizarre laugh" when hit with a tough question, is well known to the press corps. Clinton was ragged for days about her ambiguous comment on drivers' licenses for illegal immigrants but "Obama gave essentially the same answer and reporters yawned," said Powers.

After Clinton was accused of taking one "planted" question at a conference, she was then portrayed as unable to handle "unscripted events" even though on most days she takes "endless questions from voters," added Powers.

The commentator would like to see the press concentrate more on Clinton's health plan and less on "her laugh."

The publicity-for-stock programs of News USA and Global Media Fund (page 2) reminded us of Ben Sonnenberg's use of this technique to become rich in the 1950s.

Sonnenberg, a dominant PR personality in the 1940s, '50s, and 60s, lent $300 to Margaret Rudkin of Norwalk, Conn., in 1930 so she could buy a bigger oven to bake her homemade bread. She starting doing that because her son had asthma and her doctor said commercial breads were a factor.

Neighbors liked the bread and soon she was selling to local stores. In return for advice and publicity (which included the Reader's Digest, Ladies' Home Journal and McCall's), Sonnenberg got a one-third interest in what became Pepperidge Farm.

Business went from $20 a week to more than $50M a year. When the company was sold to General Foods in 1958 for $28M, Sonnenberg got $9M in stock and cash.

He showed biographer Isadore Barmash a list of similar deals but called Pepperidge "the crown jewel in my portfolio." He told Barmash he got particular satisfaction out of sharing in the "capital appreciation" of clients.

The National Investor Relations Institute's code of ethics allows both inside and outside IR counselors to hold stock but cautions that the stock must be registered on SEC Forms S-1 or S-3. The latter is only available to public companies that have filed at least one Form 10-K annual report and have a market float of at least $74M.

NIRI also cautions that holding stock makes an IR person an "insider" and trades in the stock must be cleared with the client or employer.

The NIRI code says IR services of consultants "must not have even the appearance of being promotional in nature."

IR pros are to "exercise independent professional judgment."

The Council of PR Firms' $85,000 deal for an e-mail NL by Infocom, publisher of Bulldog Reporter and the Daily 'Dog (page 2) should not be happening.

CPRF, which gets most of its dues from conglomerate-owned PR firms and which is always headed by a conglomerate PR person, should not be doing business deals with PR media that are also covering the Council.

CPRF, which spent more than $100K on ads in PR Week over the past five years while buying virtually no ads in any other PR media, is repeating its sin of favoritism.

Its charter calls for it to promote the entire PR counseling industry. Its actions should be the epitome of openness, fairness and even-handedness.

When the conglomerate-owned PR firms stopped reporting numbers in 2002, CPRF should have continued to collect them for the independents instead of halting this.

Bias towards the conglomerates is one reason CPRF membership is around 100 in its tenth year when it was once as high as 132. Nearly 50 firms have quit including such big independents as Edelman and Ruder Finn.

PR Society's old code said PR people were not to do anything that tended to "corrupt the integrity of the channels of communication."

The Committee to Protect Journalists, New York, which tracks the fatalities and persecutions of journalists worldwide, lists 31 organizations that have given it from $1,000 to $50,000.

No PR groups are on the list. Most donors are media such as Bloomberg, AP, Knight Foundation, Time-Warner, Los Angeles Times, etc. Corporate givers include Citigroup; Ford; Goldman, Sachs; Sony and UBS.

Since PR people depend at least as much on the media as vice versa, it would be a good gesture for one or more PR groups to get on this list (especially considering the uses to which the PR groups spend tens of thousands and even hundreds of thousands of dollars yearly).

The total lack of interest by PR groups in the journalists who are hunted down and murdered each year is a blot on the image of PR.

Individual memberships are as low as $45 yearly, which includes a twice-yearly magazine and an e-NL. CPJ.org.

--Jack O'Dwyer


 

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