PENTAGON SEEKS SEX ASSAULT PR PITCHES

The Pentagon is reaching out to PR firms for a possible social marketing campaign to prevent sexual assault in the U.S. military.

The Defense Department’s Washington Headquarters Service has issued a “sources sought notice” with the goal of hearing from PR firms capable of tailoring such a campaign to the “unique needs of the armed forces.” That includes reaching military personnel from 18-25 years old, as well as middle-aged service men nationally and on a global scale.

The Pentagon is asking for narratives of firms’ experience, approach and strategy for such a campaign. The responses will be used for a potential future formal solicitation, like an RFP. Contract specialist Stephen Crooks ([email protected]) is accepting narratives through March 19.

HAMMOND REVIVES ‘I LOVE NEW YORK’

Lou Hammond & Associates has been tapped by New York State’s Empire State Development to guide PR for the re-launch of its famed “I Love New York” campaign.

Hammond takes on agency of record duties after a competitive review with four other firms. Sweeney Vesty previously handled PR for the ESD.

Thomas Ranese, chief marketing officer for ESD, said a number of firms were interviewed, but he liked Hammond’s “experience, capability and understanding” of the work, which includes the “revitalization” of the ILNY statewide brand message.

Hammond has been based in New York for 23 years. The “I Love New York” campaign began in 1977.

EDELMAN TO RECHARGE U.S./EUROPE TIES

Edelman has a $250K contract to promote the British Council’s “Transatlantic Network 2020,” a program to reinvigorate ties between North America, U.K. and Continental Europe.

The goal is to build on common history and stimulate grassroots efforts to tackle issues such as climate change, immigration and security.

TN2020 wants to analyze the different perceptions of the transatlantic relationship based on U.S. vs. Europe dividing lines and identify rising leaders aged 20-to-35 who will affect society for years to come.

TN2020 will engage in outreach to governments, businesses, media, academia, think tanks and NGOs.

Edelman’s work runs through October. The TN2020 kick-off conference is slated for Ireland in September. The `09 session is planned for here.

B-M DRAGGED INTO SPITZER SEX MESS

Burson-Marsteller spent last week making sure the media knew that financier George Fox had nothing to do with the sex scandal that forced the resignation of New York Governor Eliot Spitzer.

The disgraced politico used Fox’s name to register at the Mayfair Hotel at which Spitzer met with a high-priced prostitute.

Fox, a longtime friend and political supporter of Spitzer, only found out that his name was used as an alias when news of the dalliance broke on March 10.

The B-M statement makes clear that there is “absolutely no connection between Mr. Fox and the governor’s alleged activity beyond the unauthorized use of his name.”

Fox is “distressed by the news that has emerged” and is “disappointed that his name was used.”

Spitzer has personally apologized to Fox for dragging his name into the mess.

BELL JOINS ST. PETER

Doug Bell, who was general manager of Fleishman-Hillard’s Cleveland office, has joined Anne St. Peter, former head of F-H/Kansas City, at Global Prairie Partners.

Bell worked at Bayer Pharmaceuticals, prior to shifting to the PR-side at the Omnicom unit.

Rick Thaemer, senior VP and co-chair of F-H’s animal health and ag division, has moved to GPP.

Dave Senay, CEO of F-H, addressed the exec exodus via an e-mail to staffers. He is “personally disappointed in the actions of Anne and Doug.”

Senay understands that people leave agencies every day, but “when individuals in leadership positions plan their exit in a way that potentially harms our firm, that does not fit my personal code of conduct.”

SHORT STORY HITS AT ‘PERSONAL’ PR

Word-of-mouth marketing is raked over the coals in a short story by U.K. novelist Hari Kunzru in the March 10 New Yorker titled “Raj, Bohemian.”

A young man gets so addled by friends pitching him products and even getting him to sample a vodka in a private party that later shows up in a videotape on a website, that he thinks of murdering the person who made the videotape. This person is “Raj” in the story, who is described as a “hustler.”

There was no immediate comment from either Ed Keller, president of the Word of Mouth Marketing Assn., or WOMMA, which is based in Chicago. Keller heads The Keller Fay Group, New Brunswick, N.J.

(Continued on page 7)

NO-BID PR PACT WITH PN SCRUTINIZED

A $500K “emergency” no-bid contract awarded to Porter Novelli has been suspended by the state of California after the Associated Press and state officials questioned the pact.

PN was awarded the $500K contract after being asked to submit a proposal last November after hundreds of residents complained about health effects following spraying to control an invasive moth, according to the AP. The AP said it obtained emails through a Public Records Act request that revealed a senior state contracting official questioning the no-bid pact with the California Dept. of Food and Agriculture.

Gov. Arnold Schwarzenegger’s office asked the DFA to review the contract last week (after the AP inquired about it) because of questions about its size and effectiveness.

PN had already collected $66K and another $30K could still be owed for services rendered.

The AP noted that Randle Communications, the PR firm of Schwarzenegger contributor and advisor Jeff Randle, was promised a share of the moth spraying PR work. After losing out to PN to handle the full contract, it was tapped as a subcontractor. Donna Lucas, a former Schwarzenegger PR advisor who left for PN in 2006, also asked to submit a proposal but was not involved in the campaign.

A spokeswoman for the DFA defended the no-bid solicitation, saying: “It’s all word-of-mouth when you’re in PR. You know who the good other people are. That’s how it works. ... People probably think there’s some political thing here, but there’s really not.”

PN’s GM for Sacramento, William Schreiber, told the AP that the firm had done similar work on the moth in New Zealand and declined to comment on the state’s awarding the contract to his firm.

F-H, SITRICK TARGET BIOVAIL

Fleishman-Hillard and Sitrick & Co. are handling a messy fight waged against pharmaceutical company Biovail Corp. by its founder.

Eugene Melnyk announced March 13 that he intends to nominate a dissident slate of directors at the June 25 meeting. He contends that Biovail lacks a strategic plan to improve both financial performance and shareholder value.

Douglas Squires, Biovail CEO, says many of Biovail’s woes stem from the time under Melnyk’s watch. He says Biovail is poised to “implement meaningful changes to the business—changes that would facilitate a new growth trajectory.”

Melnyk, who controls a 12 percent Biovail stake, stepped down in `07.

KELASH DROPS LUTHERANS FOR WS

Paul Kelash, who headed PR for Thrivent Financial for Lutherans for the past five-plus years, has joined Weber Shandwick’s Minneapolis office.

He becomes Twin Cities coordinator of the Interpublic unit’s North American Financial Services industry practice group that has staffers in 20 offices.

Kelash also will be North American liaison to WS’ London-based financial group.

WALKE TAKES ROLE WITH BLUESHIRT

David Walke, who co-founded the IR and corporate communications firm Morgen-Walke and helped build it into a $20M firm, has taken a senior advisory role at The BlueShirt Group.

San Francisco-based TBG has been mostly focused on technology since its inception and is run by a group of M-W alumni. The firm is looking to diversify its client base and recently set up a New York outpost, where Walke is based.

M-W was sold in January 2000 to Lighthouse Group and merged with Financial Dynamics, now FD.

Blueshirt was formed by three M-W execs – Erica Abrams, Chris Danne, and Alex Wellins – in 1999, just before M-W was sold.

“We’ve always maintained a friendship and business relationship and when it became clear to us that he was serious about returning to the IR field, we were very anxious to structure something with him for our New York growth initiative,” Wellins told O’Dwyer’s. “His depth of experience and network base is particularly strong in New York.”

“I kept in touch with them on a periodic basis,” Walke said in an interview. “We were competitors, but we were friendly competitors. Morgan-Walke was very diversified, while Blueshirt was focused on the tech space.”

After M-W was sold, Walke moved on to head research firm Find/SVP, now known as Guideline, which was later privatized and sold under Walke’s leadership. After that, Walke said he sat down with Danne in New York before that deal was closed and it became apparent that he could help Blueshirt in a number of areas.

Walke serves as a senior management advisor with Blueshirt. In addition, he is also working on “productization” for the firm, which he described as developing scalable IR products beyond common counseling fee-based IR.

Blueshirt opened in New York last fall under the direction of Jonathan Schaffer and Walke also plays a role in building up that operation. The office has aligned with New York-based The Consumer Group.

BECKERMAN PROMOTES N.J. TRAVEL

The New Jersey Travel Industry Assn. has hired Beckerman PR to promote the Garden State’s $37B travel sector.

Michael LaCosta, a travel PR veteran with more than 15 years of experience, will lead the account.

He is a veteran of M Silver Assocs. and Lou Hammond & Assocs.

LaCosta has done PR for clients such as Atlantic Canada, Mystic Marriott, Bermuda Dept. of Tourism and Hilton Hartford.

LaCosta, who would not disclose NJTIA’s PR budget, also held posts at Cendant Corp, and its hotel brands (Super 8, AmeriHost Inn, Villager and Wingate Inns).

BPR, which is based in Bedminster, will kick off its work by promoting the 2008 New Jersey Governor’s Conference on Tourism that is slated at the Trump Marina in Atlantic City on April 9-11.

AOL MAKES SOCIAL MARKETING SPLASH

Time Warner’s AOL is acquiring Bebo.com, the No. 3 social networking site, in a deal worth $850M. Bebo has 22M unique visitors, trailing marketing leader MySpace’s 109M, according to comScore. Facebook is the No. 2 site.

Randy Falco, CEO of AOL, called Bebo a “perfect complement to AOL’s personal communications network.”

The deal enables AOL to “offer advertisers even greater reach and marketers significant insights into the desires and needs of consumers,” according to his statement.

Bebo users spend an average 33 minutes a day on the networking site.

Under the deal, Bebo president Joanna Shields will report to AOL COO Ron Grant. The social networking company had drawn interests from suitors such as CBS Corp.

TW CEO Jeff Bewkes told investors last month that he is willing to listen to offers for AOL or explore “any strategic moves that make sense.”

E&P: BIG NEWSPAPER CIRC DROPS 1.4M

Editor & Publisher reports that the combined circulation at the 20 biggest newspapers dropped 1.4M during the past four years.

The San Francisco Chronicle showed the largest percent decline 28.8 percent to 365,234 readers. It was followed by the Los Angeles Times (down 20.2 percent to 794,705), Boston Globe (19.9 percent to 360,695) and Atlanta Journal-Constitution (-16.8 percent to 318,350).

The New York Post (+2.3 percent to 667,119) and No. 1 USA Today (+2.1 percent to 2,293,137) bucked the downward trend.

In rounding out the Big Five papers, E&P reports the Wall Street Journal was down 3.8 percent to 2,011,882; New York Times suffered a 7.2 percent decline to 1,037,828 and New York Daily News dipped 6.5 percent to 681,415.

MURDOCH TARGETS MIDDLE EAST

Rupert Murdoch's News Corp. is launching two satellite TV networks in the Middle East in conjunction with Saudi Arabian Prince Al-Waleed Bin Talal's media company, Rotana.

The 24-hour movie channel, called Fox Movies, debuts in May, according to a report in Variety. A companion station will launch in November.

The venture is to be based in Dubai though FM will use Rotana's broadcast facilities in Cairo.

The deal was negotiated by James Murdoch, who heads NC's Europe and Asia operation. It marks NC initial foray into the Middle East.

Prince Waleed is an investor in NC, owning a five percent stake.

Variety calls Rotana "one of the dominant media forces in the Mideast." It owns seven TV channels the region's leading music label and a film production company.

NC and Rotana are to share ad revenues from the new venture.

MSN’S BRADFORD EXITS

Joanne Bradford, who was chief media officer at Microsoft’s MSN unit for the past seven years, has left the firm for Spot Runner Inc.

The Wall Street Journal depicts Bradford’s departure a big blow to Microsoft. Her job was to try to “inject advertising industry expertise into the company’s software culture.”

MSN’s failure to made headway against Google has led to Microsoft’s bid for Yahoo.

At SRI, Bradford is executive VP-national marketing services.

SPJ CRITICIZES CUBAN’S BLOGGER BAN

The Society of Professional Journalists has “expressed deep concern” after Dallas Mavericks owner Mark Cuban banned bloggers from the team’s locker room last week.

Cuban, a blogger and media entrepreneur, said he instituted the ban on writers whose primary purpose is blogging because of space concerns. But SPJ noted that the move affects only one news blogger, Tim MacMahon of the Dallas Morning News, who recently published a critical piece about Mavericks coach Avery Johnson.

“This appears to be nothing more than a power play by one team to control media coverage,” said SPJ president Clint Brewer, who added that it’s the fans that ultimately lose from decisions like the Mavericks’ blogger ban.

Brewer sent his concerns in a letter to NBA Commissioner David Stern and urged an investigation of locker room access for media bloggers. Brewer offered SPJ’s help in developing a compromise.

STERN EXITS NPR

Ken Stern, 44, has stepped down as president of National Public Radio after a dispute with board members over the direction of the network. He left the post “by mutual agreement.”

Stern ruffled some board member feathers with the radio network’s aggressive push into the new media category. He joined NPR in `99 as executive VP and assumed the CEO post in `06.

The Washington Post credited Stern and former CEO Kevin Klose for guiding NPR to the “most successful decade of its existence.”

Audiences for programs such as “Morning Edition” and “All Things Considered” doubled to the 26M mark. Revenues rose from $65M to $200M.

Stern is replaced on an interim basis by Dennis Haarsager, chairman.

ANN TAYLOR’S LINN TAKES NICK POST

Jennifer Linn, who was VP-marketing at Ann Taylor Corp., is now senior VP-brand marketing for Viacom’s Nickelodeon/MTVN Kids & Family Group.

She will maximize return on Nickelodeon properties like SpongeBob SquarePants, Dora the Explorer, Naked Brothers Band, iCarly and original movies. Linn also will work closely with the PA team on social and multicultural initiatives.

(Media news continued on next page)

CEOS NEED TO LET LOOSE

It’s time for CEOs to return to the bully pulpit, according to George Anders writing in the Wall Street Journal on March 12.

Anders bemoans that many "strong-willed chairmen and CEOs fear saying anything controversial in public."

Instead of telling it like it is, today’s CEOs fill speeches with feeble clichés.

Anders wants corporate leaders to bring "more of their backstage feistiness into public view" and get rid of the layers of advisors that encourage them to be "risk-adverse."

Timid CEOs are toast with the rise of blogs and YouTube videos that provide a platform for any "gabber with a funny story or provocative point of view to gain worldwide attention within days or hours."

Wrote Anders: "If bosses can’t define the agenda with words that delight and startle, someone else will."

The WSJ columnist tips his cap to legendary leaders who had a knack for blunt talk.

That includes Citicorp's Walt Wriston and American Airlines' Bob Crandall.

Accolades also go to current chieftains such as Berkshire-Hathaway's Warren Buffett, Microsoft's Bill Gates, Disney’s Bob Iger and Apple’s Steve Jobs.

Anders believes Jobs' trashing of wireless carriers led Apple to cut a sweet deal with AT&T to provide service for the iPhone.

Steve Lipin, a Wall Street Journal alumnus now Brunswick senior partner, told Anders that "offense is the new defense" for CEOs.

XM’s ABRAMS MOVES TO TRIBUNE

Lee Abrams, who was senior VP and chief creative officer at XM Satellite Radio, is now chief innovation officer at Sam Zell’s Tribune Co.

He assumes that post on April 1 and is eager to “design the future of American media with passion, intellect, and imagination that meets the spirit of the 21st century,” according to a statement.

Abrams, 55, has consulted for Coca-Cola, Swatch and MTV.

JFWBK DOES ZIFF MEDIA CHAPTER 11

Joele Frank, Wilkinson Brimmer Katcher is handling the Chapter 11 filing of Ziff Davis Media.

The publisher of PC Magazine, Electronic Gaming Monthly and trade show organizer is seeking to drop $225 million in debt via the filing.

ZDM CEO Jason Young, who succeeded Robert Callahan in August, said the debt burden was connected to an `01 leveraged buyout of the company by Willis Stein & Partners.

While the print segment remains “challenging,” Young sees growth opportunities driven by digital revenue expansion.

ZDM says it reaches more than 26M consumers a-month through its magazines, websites and events.

Andy Brimmer is handling the bankruptcy filing.

U.S. FALLS IN TOURISM RANKING

The U.S. has fallen two places to become the seventh most competitive country in the travel and tourism sector, according to a report by the World Economic Forum and Booz Allen Hamilton.

The U.S. now trails Switzerland, Austria, Germany, Australia, Spain and the U.K. The travel and tourism sector has become more competitive as countries improve transportation infrastructure and environmental safeguards, according to the study.

Sweden, Canada and France trail the U.S. and round out the top 10.

The rankings are based on 60 factors - statutory regulations, health/safety, price levels, and infrastructure, to name a few - that measure a country's appeal in cultivating tourism.

The U.S. scores well in infrastructure and natural resources, but lags in perceptions of safety and environmentalism, the report noted.

It is No. 1 for overall business environment and No. 2 for natural resource attractions, but placed 105th out of 130 countries for price competitiveness and 100th for environmental sustainability.

Justin Zubriod, VP at Booz Allen, said the low environmental mark is a result of "relatively weak regulatory measures to combat global warming," as well as inefficient energy consumption and high levels of urban pollution.

"To attract more tourists in the long term, the U.S. might consider adopting environmental policies that not only preserve natural assets but also change global perceptions about our leadership in environmentalism," he said. The U.S. also scored dismally on its openness of citizens toward foreign visitors, ranking 114th.

Travel and tourism contribute 3.8 percent of the U.S.' GDP.

China, which is hosting the Olympics this year, inched up to No. 62 from 71 last year, while South Africa, which is preparing to host the World Cup in 2010, rose to 60th from 62 in '07.

People _____________________________

Jack Bogoch has been promoted to editor of Skiing magazine. He had been senior editor and has written for ski magazines for a decade. Skiing, which is published six times a year by Bonnier, is also revamping its look with a larger paper size and photo-driven design slated to take effect with the Sept. ’08 issue.

Brief _______________________________

A group of Asian American publishers has set up a trade group to increase advertising share and develop the Asian American market in representing both English and Asian- language publications.

The National Association of Asian Publishers has begun reaching out to more than 400 Asian publishers, both print and online, in the U.S. Publications involved at the group’s outset include Asian Fortune, AsianWeek, Filipinas Magazine, U.S. Asian Wire and the Seattle Chinese Post.

The New Yorker short story, "Raj, Bohemian" (page one) is not only a commentary on word-of-mouth marketing but on the values and behavioral patterns of what appear to be 20 and 30-year-olds.

The protagonist, whose name is not given, has the worst possible things to say about friends who pitch products for pay ("monetize" their "social networks" as one character says).

Such people are "shallow," betrayers of "trust," "hustlers," violators of "privacy," and purveyors of "zombie-speech."

He's shocked that none of his friends feel as he does. All they seem to care about is consuming one product or another.

Not only is their ethical sense lacking, but so are their morals. The protagonist as well as his friends accept casual sex as the norm. They might be a little more hesitant about this if they read the latest report from the Centers for Disease Control that found 26% of U.S. girls aged 14-19 have one sexual disease or another and this rises to 48% among black teenaged girls. More than 60% of U.S. women college grads leave with a lifelong case of HPV, according to other studies.

Author of "Raj, Bohemiam," is Hari Kunzru, an established British novelist and journalist.

What he has written is fiction, and employs exaggeration to make its points, but it may have a better grasp on reality than pure journalism where attaching behaviors to real names can lead to a lawsuit.

Our advice to PR and J-majors would be to chuck all their textbooks and read the New Yorker each week instead. Besides good fiction and in-depth journalism, it has business articles and commentary that no other publication would attempt.

Switching back to "business reality," we note that the ethics code of the Word of Mouth Marketing Assn. states that only samples of products and never money can be used to reward those who pitch products and services to their friends.

Those employed by such companies as Procter & Gamble, Dell and numerous PR firms agree always to identify themselves as representatives of these companies when handing out samples or recommending products.

For those interested in word of mouth marketing, WOMMA has created the "Word of Mouth Marketing University" which will hold its first "Higher Learning Conference" May 8-9 in Miami. Cost is $995 for members and $1,495 for non-members.

WOMMA says it had "an extremely difficult time deciding between all of the amazing, highly qualified candidates" who wanted to be on the faculty.

These include Erin Byrne of Burson-Marsteller; Liana Frey, Dell; Brian Reich, Echo Ditto; Bonin Bough of Weber Shandwick Web Relations; Virginia Miracle of Ogilvy PR Worldwide; Geoff Nelson, Buzz Corps; Kate Niederhoffer of Nielson Online, and Lynn Eastep of Fleishman-Hillard. Topics include building a blog program; managing reputation at the speed of social media; activating WOM in social networks for beginners and those who are advanced; "Going for Big, Fast Buzz Now," and "Communities: Build, Buy or Rent?" Return on investment will also be discussed.

The flap over the receptions thrown by 2007 PRS chair Rhoda Weiss (page 7) is indicative of many things.

Former PRS presidents, current leaders and rank-and-file members are justified in saying that it looks like Weiss was more interested in promoting herself than the Society during her term of office in 2007.

We realize that PR people have to work hard at self-promotion or their careers are apt to go nowhere.

However, when they assume positions of leadership in any of the PR groups, personal promotion must stop.

The past presidents of the Society, who were given the cold shoulder by the current leadership, have every right to beef.

None of the past presidents-so far-wants to do so openly because punishments galore await anyone who speaks up.

These include not only becoming a pariah with the h.q. staff, but eliminating in the future any of the "hundreds" of new business leads that pour into h.q. all year long (as stated by the Counselors Academy of PRS); eliminating appointment to the more than 30 national standing committees, boards and task forces (which titles look good on a resume), and eliminating any chance of board, district or section nominations.

If the critic is already a leader of some committee, budgets can suddenly dry up. Critics also face ostracism at the local level. It's no wonder that no one will publicly oppose the APR Southerners and Westerners who control PRS.

The "Committee of 50" headed by Blake Lewis that obtained passage of a 2007 Assembly resolution calling for "openness, complete transparency," has been silent so far in 2008.

The disciplinary power of h.q. was evident in 2006 when not one of the other 109 chapters supported the Central Michigan proposal to give more power to the Assembly.

StevenGouldPincus, consultant and merger specialist in PR, found via a survey that four out of five U.S. PR firms are predicting steady business in 2008 in spite of all the clouds on the economic horizon including the housing debacle and the weak dollar.

Sources say that the weak currency is attracting European venture capitalists to the U.S. in record numbers and that PR firms and ad agencies are prime targets.

Dorland PR, Philadelphia, which had fees of $11 million in 2006, was acquired last year by Huntsworth, the U.K. conglomerate headed by Peter Gummer.

The U.S. dollar is only half-price to the British, whose pound is worth $2. Also shooting up in value recently is the euro, now worth $1.54 when it used to be around 85 cents.

--Jack O'Dwyer