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Internet Edition, April 30, 2008, Page 1


Salt Lake City ad/PR firm Richter7 beat five competitors to steer a “healthy marriage” public information campaign for the Beehive State.

Utah issued an RFP in December to award a five-year contract worth $335K/year to bolster marriages as its divorce rate has hovered above the national average.

Excend Consulting Group, Penna Powers Brian Haynes, Zara Media Design, W Communications, and Vanguard Group, all of which have Salt Lake City operations, pitched. Richter7 will handle marketing, press outreach, advertising, events and focus groups with a particular focus on young adults and low-income couples. The firm has handled PR work for Southwest Airlines and the Utah Transit Agency.


Jim Heininger, a veteran Chicago consumer PR pro, has joined Ogilvy PR Worldwide as executive VP.

For more than 25 years, Heininger has handled consumer blue-chips such as Procter & Gamble, Miller Brewing, General Mills, Anheuser-Busch and Kraft.

He also has done work for professional services firms (Hewitt Assocs. and A.T. Kearney), electronics/telecom companies (Motorola and Nextel) and healthcare institutions (St. Jude Children's Research Hospital).

Most recently, Heininger was a consultant at McDonald’s on nutrition-related brand issues.

He was president at Kemper Lesnick, general manager of Porter Novelli/Chicago and senior VP at Ketchum.

At Ogilvy, Heininger is to counsel clients across all practice groups and head business development activities. WPP owns Ogilvy.


Gail Cohen moves to Burson-Marsteller May 5 as global chair of the WPP Group’s unit healthcare practice.

She assumes the slot held by Ame Wadler, who joined Interpublic’s MWW Group in November as executive VP, chief management officer and global health chair.

Cohen is leaving healthcare specialist Chandler Chicco Agency, where she sat on that firm’s leadership council. She was in charge of new business, affiliate relationships and helped build branding platforms such as Buzz Matrix and Viractive. CCA is part of InVentive Health.

Cohen reports to Mark Penn, B-M’s CEO, who praised her “outstanding leadership skills and tremendous spirit.”


Omnicom Group reported that first quarter net income rose 14 percent to $208.7M on a 12.5 percent jump in revenues to $3.2B.

The Fleishman-Hillard, Porter Novelli, Brodeur and Ketchum-led PR group showed a 7.1 percent increase in revenues to $315M. That hike paled in comparison to the 14.8 percent jump in CRM group revenues to $1.2B and the 13.5 percent growth rate of advertising to $1.4B.

CEO John Wren spent $83M for acquisitions so far this year. Earn-outs account for $27M of that outlay.

OMC first quarter pick-ups include A Vista Events (special events), The Kern Organization (direct marketing), Brazil’s Lew’ Lara (ad shop) and New Zealand’s Shift (web-based communications).


Weber Shandwick has a $15K per-month contract to provide PR duties for Singapore’s Temasek Holdings investment company.

Temasek has invested $5B in Merrill Lynch, a major casualty in the subprime contract.

The Financial Times reported that Temasek has a $540M “paper loss” since it launched the bail-out of Merrill late last year.

Weber Shandwick is to facilitate a dialog between Temasek and U.S. companies, think tanks and influencers. The PR firm may approach federal officials regarding any legislative action that may impact its client. Laura Kline, senior VP, handles the Temasek account. Temasek has more than $100B in its investment portfolio, and a staff of 300-plus.

Weber Shandwick’s contract runs for 13 months.


Media Distribution Services, for many years a major press release distributor and PR printer in New York, has combined with Log-On, a 90-person printing and mailing house. Facilities total 80,000 square feet.

Joining Log-On, which at 520 Eighth ave. is about a block from MDS at 307 W. 36th st., are 20 MDS employees. The MDS name will not be used.

MDS included the former PR Aids, founded in 1957 and a pioneer in building a multi-category editorial database. MDS acquired PRA in 1988.

Hy Wagner, the first salesperson at PR Aids, and Dan Cantelmo Sr., production head, broke away in 1964 to start their own business and were sued by PR Aids.

The legal battle went on for seven years until a judge ruled that MDS had the right to pitch clients of PR Aids.

(Continued on page 7)

Internet Edition, April 30, 2008, Page 2


Smith & Harroff is planning a May tour for members of the Lebanese Gathering Option, which describes itself as a Shiite-dominated moderate political voice for freedom and democracy in that troubled country.

The group wants to demolish the notion that pro-Syria Hezbollah speaks for all members of the Shia community.

LGO seeks to rid Lebanon of religious rivalries and feudal allegiances that have prevented the development of a modern state. (Lebanon’s parliament on April 22 failed for the 18th consecutive time to elect a president. The country has been without a president since Nov. 24.)

S&H is organizing LGO stops in New York, Washington, Houston, Detroit and Los Angeles.

Targeted media include Wall Street Journal, Washington Post, Associated Press and McClatchy papers. The firm is getting paid $25K for work in April and May.

Phase Two of the program runs from June through February. S&H hopes to develop ongoing relationships with reporters, providing them with newsworthy information while tackling misinformation. S&H plans aggressive Internet outreach.

The retainer for Phase Two has not yet been determined.


Caplan Communications is promoting the May 5 National Press Club press conference/panel event that will discuss a much-anticipated report from Freedom House, the non-profit D.C. entity that annually measures the state of freedom throughout the world.

For the first time in its 67-year history, FH will measure the condition of freedom here in the aftermath of the 9/11 attacks and the ensuing White House “war on global terror.”

FH’s report, “Today’s American: How Free?” is expected to generate much press as it examines whether this country is “sacrificing its essential values” in the anti-terrorism campaign.

Speakers at the CC-handled event include Stu Eizenstat, FH vice chairman and former Deputy Secretary of the Treasury in the Clinton White House; Helen Thomas, the queen of the D.C. press corps, and Bob Edwards, who hosted National Public Radio’s “Morning Edition” for almost a quarter of a century and now has his own show on XM Public Radio.

Aric Caplan’s firm is based in Rockville, Md.


Sitrick and Company is handling communications for Kimball Hill, a top homebuilder struggling amid the housing slump and credit crisis.

The company and certain business units filed for Chapter 11 bankruptcy protection on April 23. KH recently decided to exit the Florida market by the end of the year and will withdraw from four other states.

The 39-year-old company has set up a toll-free information line and a “reorganization” section on its website.

Anita-Marie Laurie, who head’s Sitrick’s West Coast restructuring unit, heads the work.


5W Public Relations represents controversial San Antonio evangelical Pastor John Hagee, who has caused John McCain heartache over his remarks about the Catholic Church.

CEO Ronn Torossian told O’Dwyer’s that his New York shop is agency of record for Hagee.

ABC News’ George Stephanopoulos asked McCain on April 20 whether he condemned Hagee, who reportedly referred to the Catholic Church as the “great whore” and a “false cult system.”

5W released a statement from Hagee in which he denies the “great whore” reference:

“In my writings, I have never stated that the great whore is the Catholic Church. Quite to the contrary, the Book of Revelation teaches clearly that the great whore will be an apostate church made up of all Christians from all denominations that stray from the path of God and embrace a godless lifestyle including the sin of anti-Semitism.”

McCain told Stephanopoulos he has already condemned Hagee’s anti-Catholic remarks, but it was probably a “mistake to solicit and accept his endorsement.”

However, the Republican is keeping Hagee’s endorsement because he respects his leadership of his church and his strong support of Israel.  


Eric Jackson, former VP of global communications for FedEx, has moved on to Western Union in a senior post.

Jackson, 41, oversees corporate-wide employee, executive and web comms., media relations, and issues/crisis management as senior VP, global corporate comms. for the Englewood, Colo.-based company.

Prior to his five years at FedEx, he was managing director of corporate comms. for Siemens, chief marketing officer at and director of global media strategy at Accenture, when it was Andersen Consulting.

Earlier, he directed public affairs and comms. at Novartis and was a campaign manager, advisor and field director in the political arena.

Jackson served in the first Bush White House and was special assistant at the U.S. Environmental Protection Agency from 1990-92.


M Booth & Associates is working with client Maidenform on the consumer launch of the backless bra, according to Norah Alberto, director of publicity for the N.J.-based company.

The brassiere, which was invented by a Tennessee single mother who won second place in the TV competition “American Inventor,” was licensed by Maidenform as the “Breakthrough Backless” bra and has been an initial media hit as it launched this month in the consumer market.

The bra has been featured in USA Today, Fashion Wire Daily and Marie Claire U.K., which lauded it as a “miracle.”

Maidenform launched a national ad push with The Via Group for the bra earlier this month.

Internet Edition, April 30, 2008, Page 3


Qorvis Communications is working with the Association of American Publishers as the group backs a copyright infringement lawsuit by three publishers against Georgia State University.

Oxford University Press, Cambridge Univ. Press and Sage Publications have charged that GSU officials have engaged in “pervasive, flagrant, and ongoing” violation of copyright laws by enabling professors to disseminate digital copies of course readings without publishers’ authorization.

A GSU spokeswoman said last week that the university had not yet been served with the lawsuit and couldn’t comment.

AAP, the national trade group for book publishers, said the suit seeks an injunction and not monetary damages. The group says that while other institutions work with publishers to adhere to copyright laws, GSU has “flatly rebuffed efforts to reach similar agreements.”

Kathryn Phelps, a senior associate at Qorvis, is working on the AAP account.


Total paid daily circulation fell at nearly all of the top 25 U.S. newspapers in the six month period ended March 31, according to the Audit Bureau of Circulations.

USA Today and the Wall Street Journal, the top two papers by weekly circulation with about 2.3M and 2M daily subscribers, respectively, posted modest gains of .27% and .35%.

Rounding out the top five, the New York Times fell 3.85% to 1.12M, the Los Angeles Times slipped more than 5% to 816K, and the N.Y. Daily News was down just over 2% to 718K.

The Dallas Morning News (down 10.6% to 412K), Atlanta Journal-Constitution (-8.5% to 357K) and Boston Globe (-8.3% to 383K) were among the largest weekday circulation drops.

Sunday papers fared worse as 24 of the top 25 posted losses which averaged 4.6%. The N.Y. Times and N.Y. Daily News fell more than 9%, while the Newark Star-Ledger lost more than 12%, slipping to just over 500K. The St. Petersburg Times was the lone gainer at .44%, for Sunday circulation of 433K.


Marcus Brauchli has resigned as managing editor of the Wall Street Journal after an 11-month stint, according to his joint statement with Dow Jones CEO Les Hinton.

He is to serve as a consultant to the paper and explore expansion of STAR-TV in Asia.

DJ has launched a search for Brauchli’s successor.

Publisher Robert Thomson, the Australia native who was installed in that slot after Rupert Murdoch’s News Corp. bought the WSJ, is expected to assume ME duties on an interim basis. Thomson has been heavily involved in editorial matters at WSJ, Barron’s and WSJ newswires.

Brauchli, 46, took over the WSJ’s top editorial position from Paul Steiger. He had been deputy managing editor and global news editor based in New York. The 24-year veteran of DJ also reported from Europe and Asia. News Corp., in its agreement to acquire DJ, agreed to the creation of a special committee to oversee editorial independence of the DJ publications. Members of the special committee met on Brauchli’s exit. They must approve his replacement.

Brauchli said the change in DJ ownership made it the right time to consider new career opportunities. He “reveres” the WSJ and will “greatly miss working” with his former colleagues on a daily basis. The statement includes a quote from Murdoch, calling Brauchli a “terrific leader throughout the transition process.”

Murdoch has “great respect” for Brauchli and is “pleased” that he has agreed to take another position within News Corp.


Susan Glasser has been demoted at the Washington Post from her position as assistant managing editor for national news. Her hard-charging style reportedly irked some staffers. Glasser, 39, will now work directly with Washington Post Co. chairman Donald Graham.

She joined the Post in `98 as deputy editor for investigations after editing Roll Call, the paper of Capitol Hill.

Glasser also was co-bureau chief in Moscow with her husband, Peter Baker. She headed the Outlook section before being upped to her national news post.


New York Mayor Michael Bloomberg has shot down reports that he could be the savior of the troubled New York Times Co.

Newsweek reported that News Corp CEO Rupert Murdoch, owner of the New York Post, Wall Street Journal and front-runner in the auction of Long Island’s Newsday, considers Bloomberg a formidable competitor.

The billionaire politico, however, said he “has no plans to go into the newspaper business.”

NYTC chairman Arthur “Pinch” Sulzberger told shareholders at its April 23 annual meeting that the company is not up for sale. He dismissed the “number of recent newspaper and magazine articles that have suggested otherwise” as ill-informed

The controlling Ochs/Sulzberger family is firmly committed to retaining the editorial independence and integrity of the company, said Sulzberger.


Richard Engel has been named chief foreign correspondent at NBC News. He will report for “NBC Nightly News,” “Today,” MSNBC and

Engel is one of a handful of western journalists to cover the entire war in Iraq. He has served as NBC’s senior Middle East correspondent and Beirut Bureau chief since May 2006. He covered the initial U.S. invasion as a freelancer for ABC before shifting to NBC in May 2003.

Engel served as Middle East correspondent for “The World,” a joint production of BBC World Services, Public Radio International and WGBH-Boston before joining ABC.

(Media news continued on next page)

Internet Edition, April 30, 2008, Page 4


Primedia has named Charles Stubbs, 35, president & CEO, replacing Bob Metz. Stubbs joins Primedia from, where he served almost four years as CEO.

Dean Nelson, chairman of Primedia, called Stubbs the “right person to lead the company forward.”

He said Primedia’s growth is “tied largely to digital media” and that Nelson has the “skill set and operational experience to execute on these initiatives.”

Primedia publishes and distributes more than 38M guides and magazines to 60K locations each year. Elliot Sloane, of Sloane & Co., does its PR.


Men’s Health’s July/August summer issue will use so-called “live” advertising, which lets readers snap a photo of a print ad with a cellphone and send it to web marketing company SnapTell, which then messages the reader with promotional information about the ad.

Jack Essig, VP/publisher of the Rodale magazine, said the technology benefits both consumers and marketers as a chance for advertisers to have a direct connection with readers.

Advertisers utilizing the technology for the summer issue, which hits newsstands on June 24, include Westin, PowerAde and Samsung.


Consumer publishing and broadcasting company Meredith Corp. posted quarterly revenues of $401M for the first three months of the year, a slight (.2 percent) decline from the same quarter of ’07.

Advertising revenue fell 3.5 percent to $230M, while circulation dropped 4.7 percent to just over 87M. Meredith said circulation revenues dropped primarily because of an ongoing transition of titles like Parents, Family Circle and Fitness to a direct-to-publisher model.

Publishing revenue and operating profit were flat at $323M and $65M, respectively, while broadcasting revenue was down 1.2 percent to $77.5M, compared with ’07. The company said weakness in home, pharmaceuticals and direct response advertising was partially offset by strong growth in its largest ad category, food.

“Looking at the balance of fiscal 2008, Meredith is facing a weaker economy and related advertising demand,” the company said in a statement.


Marketing pros met on April 9 to discuss how the web can maximize presence for public service announcements at a WestGlen Communications event in New York’s Midtown Executive Club. The event featured speakers from Prime Visibility, an Internet marketing services firm that specializes in search engine and website on-page optimization.

Broadcasting a non-profit’s message carries a different know-how than, say, a traditional advertisement or press release. TV usually offers higher audience and media values, but a TV campaign can take between three and four months to build steam. Radio, while more affordable and more immediate, is typically limited to niche appeal.

Like everything else, PSAs are moving into cyberspace. Non-profits are targeting online outreach to bring in traffic, adopting tactics through social media like video and blogs. Understanding these tactics is vital for improving online engagement. The event gave tips on how non-profits can get web traffic and influence visitors to make donations once they’re there.

According to Annette Minkalis, senior VP of PSA Services for WestGlen, the more a non-profit positions itself as a leader, the more dollars it will bring in. Being a leader means maintaining relevance — the power of a message is more important than having a celebrity spokesperson.

Transparency is key: letting consumers know how much non-profits pay on overhead, and disclosing corporate grant partnerships is vital for steering clear of skepticism.

Lee Goldberg, a pay-for-play specialist at Prime Visibility, reminded the audience of PSAs’ emotive pull. People are motivated by emotions, not fact, he said. A non-profit’s website should be a call to action, creating immediacy for a donation. PSAs should also express how good it feels to give.

David Zeiter, VP of business development for Prime Visibility, offered a number of tips on how simple website navigation techniques can increase Web hits.

Once a target and the appropriate message have been identified, non-profits can begin the delicate process of creating a website that compliments the message. Zeiter offered a few specific enhancement tips that can influence visitors to press the ‘donate’ button:

• Online video clips should be no longer than four minutes.

• Research shows that only 25 percent of visitors look below the ‘fold’ of the screen. Put your most important information at the middle, top and top-right portions of the page, respectively.

• The fewer fields you have, the better. Requiring donors to fill out long forms creates impatience and last-minute dropouts.

• Don’t link off-site for the donation process, as it creates an anxiety of scams. People are afraid of scams. Use I-frames instead.

• A non-profit’s homepage is typically the worst place to link to off-site, simply because it offers no specificity. Link to video clips or testimony pages instead.
• Drop off-site web banner linkage. Many ignore web banners entirely and find them intrusive. Go for text-links that offer real stories instead.

• Remove Q&A sections. These areas are text-heavy and induce unwanted scrolling through mostly impertinent information. Instead, make the site more specific by answering questions in their respective areas on the site.

• Remove words like ‘buy’ or ‘purchase.’ People who donate want to feel like they’ve given; they don’t want to be treated like consumers.

• Disclose any affiliation with corporations.

Internet Edition, April 30, 2008, Page 5


Steinreich Communications is guiding PR for the United National Football League, the latest in a line of professional football league start-ups which plans to play its first game in January 2009.

Unlike short-lived predecessors like the bombastic XFL and ’80s-era United States Football League which looked to compete with the entrenched National Football League, the upstart UNFL is in development to serve a complimentary role to the NFL by featuring “undiscovered or under evaluated talent.”

Ryan Smith, account manager at Steinreich who oversees the account, said the firm started working on media relations and communications for the UNFL in early February, just before the Super Bowl.

The league’s season stretches from January through April, the relatively quiet season for the NFL between the media-frenzied Super Bowl and college draft.

Smith said New Jersey-based Steinreich’s work with the UNFL is the basis for a new sports and entertainment practice at the firm.


The American College of Nurse-Midwives, a D.C. trade group for thousands of certified midwives in the U.S., has tapped Jones Public Affairs as its AOR.

Communications manager Rebecca Jacob said the ACNM was looking for a small to mid-sized firm with a D.C.-area presence and sent out a criteria list to about 10 firms. ACNM did not previously have an agency.

The not-for-profit professional association represents thousands of certified midwives and nurse-midwives in the U.S., who are employed by healthcare entities like hospitals, managed care facilities and private practices, or work independently. Last year, the group said it would launch a national campaign to raise the stature and awareness of midwifery.

Jones PA is focusing on that effort handling message development, expert positioning, media relations, and blogger and community outreach. The firm will be on hand at ACNM’s annual meeting in Boston in May.

“At this time when health care reform is so seriously needed, midwives must be part of the solution and the public must know the scope and benefits of our service,” said ACNM president Carolyn Gegor.

Gegor said “lack of consumer knowledge” is the group’s greatest barrier to acceptance and growth.

BRIEFS: Dix & Eaton, Cleveland, recently provided more than $100K in pro bono PR services to the Cleveland Metropolitan School District. Scott Chaiken, CEO of the firm, said D&E worked to lay the groundwork for a “high-performing communications function” in the district. The work was part of D&E’s Henry F. Eaton Project, a community impact program named for the firm’s late co-founder. ...Jonathan Bloom, CEO of McGrath/Power PR and Comms., San Jose, has been named to the San Jose Convention and Visitors Bureau’s board of directors. ...Patricia Thorp, founder/pres., Goral Gables, Fla.-based Thorp & Company, was named Entrepreneur of the Year by the Coral Gables Chamber of Commerce.


New York Area

Abelson Group, New York/Camiant, software and technology for telecomms. companies, and Mobilians Int’l, creator of a secure payment service that runs via mobile devices and wireless service accounts rather than credit cards, as AOR for PR.

The Steven Style Group, New York/Hillside Candy, confections, for marketing comms. for its GoNaturally line of organic hard candy.

Trylon SMR, New York/Downtown Arts Development, non-profit focsed on Israeli arts, on a project basis to guide PR for the official celebration of Israel’s 60th anniversary on May 7 at Radio City Music Hall.


Rasky Baerlein, Boston/EnergyConnect, for PR, branding, and partnerships; Veolia Energy, sustainable energy development, for strategic comms. and crisis counsel, and UPC Wind, wind power generation and an RB PR and public affairs client since 2007, for a renewal to handle public affairs.

Hart-Boillot, Waltham, Mass./The Marino Foundation for Integrative Medicine, for brand audit and creation of a new visual identity and mktg. comms. materials.

Carabiner Communications, Atlanta/Applied Software, Autodesk reseller; Blancco, data erasure and “end-of-life cycle solutions; SmartTrust, mobile software; Digitus Biometrics; InterSOC, ESM solutions; James DeLucia IV, author and IT risk expert; Logic Trends, indentity and access management services, and Vumii, long-range camera surveillance systems.

Trevelino/Keller Communications Group, Atlanta/, sale-by-owner real estate site, for consumer PR.

O’Connell & Goldberg, Hollywood, Fla./Miami Children’s Hospital Foundation, for media and community outreach; Fountainebleau Las Vegas, for special events amid a redevelopment; MedVance Institute, healthcare training, for comms.; PrigeN98, for launch of its nitrogen tire inflation system, and Roderick Place, for media/community relations and events for the mixed-use development in Tenn.


Slack Barshinger, Chicago/The John Buck Company, real estate, for PR and marketing comms.

Bianchi PR, Troy, Mich./NxtGen Emission Controls, as AOR for PR.


Bob Gold & Associates, Los Angeles/Agion Technologies, “green” biotech, for PR and marketing.

Integrity PR, Irvine, Calif./Capita Technologies, web-based application development, as AOR for PR for its software, services and security solutions in the government and advertising/marketing markets.

Formula, San Diego/Munchkin, infant and toddler products, as AOR for PR. The firm will launch a campaign including national and trade media relations, product promotions, co-branding partnerships, and social media outreach, as well as position Munchkin executives as experts on family and parenting issues.

Internet Edition, April 30, 2008, Page 6


Boston University marked its 60th year of PR education with an April 23 event at its Charles River campus that drew nearly 200 practitioners, academics and alumni.

PR veterans including Burson-Marsteller founder Harold Burson and Carol Cone, CEO of Cone Inc., were on hand to celebrate what the school deems the oldest PR degree in the world, its Master of Science Degree in Public Relations dating back to the 1947-48 academic year. Burson and Cone joined professor emeritus Otto Lerbinger, Zoloco Group president/CEO Paul Rand and PR professor Don Wright of BU in a discussion of where PR has been and where it is headed.

Lerbinger, who taught PR at BU for 50 years before his recent retirement, pointed out the increased presence of PR as a management function. He said PR is ultimately an applied social science with a main purpose of forging, reinforcing and changing attitudes and behavior.

Rand of Zoloco, part of Omnicom's Ketchum firm, said that PR is in “challenging and confusing times” and noted traditional and new media channels are becoming more fragmented, posing challenges that are forcing the PR field to evolve very quickly.

Cone said the concept of a “social contract” continues to impact PR. She said that involves a company recognizing the need to earn its license to operate by “crossing objectives with core needs of society.”

The panel stressed the impact of new media and affirmed the importance of writing skills, regardless of the media used to disseminate messages. “The changes we’re seeing are not in strategic thinking,” said Burson, “but in creative and innovative ways we’re now delivering messages.”

Other attendees included Bill Nielsen, former VP of public affairs and corporate comms. at Johnson & Johnson, who represented the Arthur W. Page Society, and Bob Grupp, president of the International PR Assn.

BU has six full-time faculty members teaching PR with a seventh expected this September. It also has the Harold Burson Endowed Chair in PR and several ad-junct professors from the Boston PR community.

The school is home to the papers of Edward Bernays and Burson has made arrangements for the school to acquire his own papers.

BRIEFS: Donald Michels, chief technology officer of Medialink Worldwide, has been named an inaugural “All-Star” by Streaming Media magazine. He is one of 25 honorees. ...Gloria Rodriguez, founder and president of multicultural marketing and comms. firm comunicad, has been tapped to receive IABC/Washington’s 2008 Pinnacle Award, which goes to an area communicator for achievement and emplifying professional and ethical standards. Her firm has worked with AARP, Freddie Mac and Coors . She will get the award at a May 7 breakfast event in D.C. Info: ...ME Productions, a Hollywood, Fla., events production firm, recently produced the International Assn. of Airport Duty Free Stores trade show for the 23trd consecutive year. The Fort Lauderdale event drew more than 3,000.



Stephen Bingham, senior member of the Caunos Group, to JFK Communications, Princeton, N.J., as VP. He oversees work for Eisai, Aerocrine and NPS Pharmaceuticals.

Elliott Subervi, who handled sales and development in the telecom sector, to Utopia Communications, Red Bank, N.J., as managing director handling business development and staff training.

Don McIver, who was COO at Interpublic’s MWW Group unit, has moved to Beckerman PR for the same post at the Bedminister, N.J.-headquartered firm. Beckerman is a professional services PR firm that handles real estate, law firms, accounting firms and equity funds. McIver was with ISO Inc., a Garden State firm that provides actuarial and information services to the insurance sector.

Kel Fisher, partner in his own firm, BetterWorld Studios, to Charleston|Orwig, Hartland, Wisc., as interactive director.

Gerard Gould, VP of IR, The Stanley Works, to RSC Holdings, Scottsdale, Ariz., in that same title. Gould, 54, has worked in IR for 15 years.

Eric Hess, director of PR services for IR Japan, to Manning Selvage & Lee, Tokyo, as managing director of its Tokyo office.


Leigh Parrish to managing director of FD’s retail and consumer practice, based in New York. Also, Kal Goldberg to managing director, special situations practice (M&A, litigation, Ch. 11), and Lou Colasuonno to managing director, corporate comms.

Marie Cacciato to VP, JB Cumberland PR, New York. She is the 23-year-old firm’s first VP.

Judy Blatman to senior VP, communications, Council for Responsible Nutrition, Washington, D.C. She joined in 2001 from the VP-PA/comms. post at the Distilled Spirits Council of the United States.

Susan Wolfe to senior VP, consumer brands, GolinHarris, Chicago. She continues to lead the Florida Dept. of Citrus account.

Jessica Lappen to group manager of Boston-based Schneider Associates’ consumer group. She is a five-year veteran of the firm and handles Baskin-Robbins and New England Confectionery.

Michael Whitlow to executive VP, CRT/tanaka, Richmond. Also, Kelly Bucher to senior A/E in Norfolk; Kate Stern to senior A/E, and Lindsay Grant and Catherine Gryp to A/E, Richmond. Erin Schaal and Kendyl Wright were upped to A/Es in New York.

Kerri Erb to senior VP, Wheatley & Timmons, Chicago. She led the firm’s media services unit.

Deron Johnson to VP, PR director, Rhea + Kaiser Marketing Communications, Naperville, Ill.. He joined in 2005.

Brad Kostka to senior VP and Kelly McGlumphy to A/S, Roop & Co., Cleveland. Kostka is 2008 president of PR Society/Cleveland.

Ashley Cundiff to associate A/E, Preferred PR & Marketing, Las Vegas. She joined last June.

Internet Edition, April 30, 2008, Page 7

MDS MERGES INTO LOG-ON (continued from 1)

Arnowitz Heads Log-On

Dan Arnowitz, president and CEO of Log-On, said that Dan Cantelmo, Jr., head of MDS, has become executive VP of Log-On.

“Integrating Dan and his team was an easy decision,” said Arnowitz. “They are well known in the industry for their professionalism, client service and focus on results. It’s a perfect fit.”

Cantelmo said that MDS will continue to offer all of its services, including its 200K-listing editorial database, and will now have access to the full slate of printing and mailing services available at Log-On.

PR Aids, which changed its name to PRA in 1987 in the wake of the AIDS epidemic, was for much of the 1970s and ’80s a focal point of PR life in New York. Its large conference room at 305 E. 45th st. was used by PR Society/New York for monthly workshops and it also conducted its own meetings.

Employment in the 1980s included 50 in New York, 17-18 in Brooklyn and 12 in Washington, D.C.

Levitt, Toohey Met in Air Force

Equal owners were Lee Levitt and Richard Toohey. Both were in PA in the Air Force.

However, a dispute broke out between the two that resulted in Levitt proposing on Nov. 16, 1984 to dissolve the company and asking Toohey to buy him out. A court in 1988 recommended that Toohey pay Levitt $1.27 million plus $400,000 in interest but Toohey argued that Levitt’s stock was worth between $200K and $309K in 1984.

Toohey claimed there was a loss of $1.5M between July 31 and Oct. 31, 1984.

MDS, meanwhile, in 1984 had made an offer of $3M to buy PR Aids but Toohey argued the offer was made by the “fiercest competitor” of PRA with “a motive to assist Levitt in injuring PRA, and “may well have been a sham.”

Levitt, asked last week what caused two former friends and business partners to become such enemies, replied that there were differences over how to computerize the editorial categories and how much to spend.

MDS purchased PRS in June 1988. No price was revealed but both Levitt and Toohey were satisfied. Levitt said his legal fees totaled more than $150K since 1984.

Toohey Supported First PRW/U.S.

PRA in 1988 was a major supporter of the first PR Week/U.S., which debuted in March that year with a projected controlled circulation of 61,000. PRA supplied the initial mailing lists and also gave part of its offices to PRW at 330 W. 43rd st.

Owners of PRW were said to be “Quotepledge” of the U.K. and “Formay & Assocs.” of the U.S. But the people behind these companies were six executives of the U.K. IR firm of Dewe Rogerson, and Frank Madden of First Funding Realty, part of First Funding Corp., U.S. investment banker for Shandwick.

This NL obtained the corporate ownership papers through a search of records and revealed the owners.

The DR executives had founded PRW/U.K. in 1985 and sold it to Haymarket in 1988 for a reported $3M.

PRW/U.S. published its last issue on Nov. 28, 1988. A report to potential investors showed it had $323,954 in losses; accounts payable of $164,283; accounts receivable of $148,574 and a loan of $166,000.

Publisher Geoffrey Lace said the market for recruitment and other ads had been overestimated and he was “disappointed with the whole matter of doing business in the U.S.”


Vocus, which manages data on 800,000 editors and other news outlets for clients and distributes and electronically tracks usage of releases, reported a 42% jump in revenues to $17,867,000 for the first quarter.

A loss of $403,000, or two cents per share on 17,682,504 shares outstanding, was reported vs. break-even for the 2007 quarter.

Profit is affected by the Vocus policy of paying commissions when sales are made and deferring revenues over the next year.

“The first quarter was truly outstanding for us, one of our best ever, as we exceeded all of our key operational and financial metrics,” said Vocus president and CEO Rick Rudman.

Besides the revenue growth, he said, free cash flow was up 66% to $5.12M and profits, on non-GAAP basis (meaning not according to Generally Accepted Accounting Principles) was $2.77M or 14 cents a share vs. $1.89M or 11 cents in the same 2007 quarter.

Vocus products range from about $3,000 for its SBE (small business) version to $5,000 and more for its Enterprise and Professional Editions.

Users Compile Lists from Database

Users compile their own editorial lists from the Vocus database which are then updated by Vocus.

A major part of the business is electronic tracking of usage of client releases and monitoring of news of competitors of clients.

Net loss from operations, based on GAAP, was $297,000 for the quarter vs. a loss of $370,000 for the same 2007 quarter.

Total deferred revenue as of March 31 was $35.78M vs. $26.92M a year earlier. Cash flow from operations for the quarter was $5.94M, a 58% increase.

A record 219 net new subscribing customers was added in the quarter vs. 105 net new customers a year earlier. Total customers at the end of Q1 was 2,646.

Non-GAAP Income Defined

The Vocus report defines non-GAAP income from operations as income from operations excluding amortization of acquired intangible assets and stock-based compensation.

Non-GAAP net income is defined as net income minus amortization of acquired intangible assets and stock-based compensation.

Amortization of intangible assets recorded in connection with acquisitions consist of non-compete agreements, trade names, purchased technology and customer relationships that are not expected to be replaced when fully amortized, as might a depreciable tangible asset.

Vocus says it compensates for the limitations in the use of non-GAAP financial measures by also using GAAP financial measures and by providing a detailed reconciliation between the two.

Internet Edition, April 30, 2008, Page 8




There’s an interesting juxtaposition of stories on page 7—Media Distribution Services, a major player in the editorial list business in New York for many years, has merged with a large printing and mailing house, Log-On.

MDS has faced increasing competition over the years from many sources including 21-year-old New York-based PIMS, which has a 300,000-editor U.S. and international editorial database and a full range of electronic and print distribution services.

Also on page 7 is the financial report of Vocus, which also is in the editorial list business but reaches editors and other outlets electronically.

While MDS was merging, Vocus was reporting a 42% jump in revenues to $17.8M for the first quarter and analysts predict 2008 revenues of $76M.

MDS and its 1988 acquisition, PRA (formerly PR Aids) were primarily in printing and mailing although MDS developed e-mail and fax capabilities to reach its 200,000 editorial database.

Vocus is entirely electronic and has the growth characteristics of other electronic distributors such as PR Newswire, which had gross profits of nearly $100M in 2007, and Business Wire, whose co-founder, Lorry Lokey, was able to give about $435M in profits to worthy causes (4/9 NL).

Vocus has a database of 800,000 editors, analysts and other outlets. Its PRWeb unit e-mails releases including pictures and video at prices from $80 to $360. It has eight million websites, blogs, etc., in its Really Simple Syndication (RSS) database.

PRA was grossing under $5M when it was acquired by MDS which was also probably under $5M. The big money was in electronic distribution.

Helping to propel Vocus is a huge and costly sales force. It had110 “quota-carrying” salespeople in 2007 and plans to have 120-125 by year’s end.
Since commissions are paid when sales are made and revenues are deferred over the next year, Vocus had a loss of $403,000 on $17.8M in sales. Tax-deferred revenue was $35.7M as of March 31.

A good part of the business is in surveillance. Clients want to know what their competitors are up to and Vocus provides this electronically. Another major player in international PR distribution and surveillance is Cision, which has an 800,000 database and 13 companies in this area. In a similar vein, DNA13 tracks release use by clients and competitors and also the nature and quantity of press calls handled by PR staff at clients, providing an “early warning” of “hot spots” before anything hits print or the airwaves.

PR has become more and more of a defensive “eyes and ears” function in recent years.

Having garnered many accounts worth tens of thousands of dollars, Vocus is now also going after the “mid-market” of 300,000+ prospects in the $10-$25M category and 26 million firms under $10M. Its new $3,000 Small Business model is well suited for these smaller businesses that otherwise “couldn’t afford any form of PR,” CEO Rick Rudman told analysts April 22. PR “typically delivers a better return on investment than other forms of marketing including ads,” he said.

We have a soft spot in our heart for the former PR Aids partly because it printed this NL for our first few years. It also served as a convenient, neutral meeting place for New York PR pros, regularly hosting its own and PRS/New York workshops for 50 and more at 305 E. 45th st. The PR Society’s h.q. were also in midtown at 51st st. and Third. Its library and meeting rooms were heavily used by PR pros.

However, the office was hijacked downtown in 2004 by the staff and non-New Yorker officers who abhor the thought of locals getting any more use of h.q. than a chapter in, say, Denver. A neutral meeting place is needed in midtown New York.

PR firms don’t like sending their staff to other firms for workshops.

While researching MDS and PRA, we found material on the first PR Week. PRA provided offices, mailing lists, mailings and no doubt much advice on how to succeed in the U.S. The first PRW was part of a move by U.K. interests not only to own a major part of the U.S. PR counseling industry but also to secretly control the U.S. PR trade press.

PRW, with its announced circulation of 61,000 and its claim of being “the largest circulation PR publication in the world,” was going to obliterate what it thought were the few puny newsletters that were then covering U.S. PR. Circulation was to be mostly free (at least half requested in writing to satisfy USPS rules) with ads (at $5,350 a page) supplying the revenue.

Readers were not told that the real owners of PRW were six executives of the large U.K. financial PR firm of Dewe Rogerson and U.S. investment banker Frank Madden who had close ties to Shandwick, headed by Peter Gummer.

Gummer at that time was on an acquisition tear unequaled before or since, buying 35 firms (15 in the U.S.) from 1986-89 for an initial $90M in cash and payouts that could be as much as $280M more.

His firm was the biggest independent in1988 with $121M in fees (+86%) and1,610 employees.

Only a fraction of those payouts was made as Shandwick merged almost all of the firms with each other, dropping many famous PR names after promising not to do so. Shandwick stock, burdened by a heavy debt, fell from two pounds to as low as three pence. Still owing about $80M, it was acquired in 1999 by Interpublic.

The second PRW/U.S., brought here in 1998 by Haymarket, provides a better indication of the size of the U.S. market for PR publications.

After ten years, its total circulation averaged 9,759 in the year ended Sept. 24, 2007. This included 6,918 paid and requested and free distribution of 2,841. Rate for a full-page ad is $9,400.

--Jack O'Dwyer


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