The eight page weekly is the only PR newsletter on LEXIS/NEXIS.
Edition, July 16, 2008, Page 1
Hughes, who was communications director for President Bush
and U.S. propaganda czar, has joined Burson-Marsteller as
51-year old Texan will team with Mark Penn, B-M CEO and
former pollster for Hillary Clintons Presidential
bid, to offer one-stop crisis and public affairs services.
served as Under Secretary of State for Public Diplomacy
from `05 to `07. As counselor to President Bush, Hughes
managed the White House Offices of Communications, Media
Affairs, Speechwriting and Press Secretary.
consulted the `04 Bush-Cheney re-election campaign and worked
with Bush for five years when he was Governor of Texas.
Hughes will serve on B-Ms newly created strategy team.
TAPS H&K AFTER REVIEW
has awarded its first recycling PR account to Hill &
Knowlton after a competitive RFP process that drew 15 proposals
to a lucrative RFP. H&Ks
pact with the Peach State is worth more than $743K for 12
months and includes four option years. It aims to cut down
on the 2.6M tons of common recyclables that Georgians toss
out each year.
states Dept. of Community Affairs Office of
Environmental Management will oversee the pact, which it
hopes to roll out by the first quarter of its 2009 fiscal
Atlanta operations of Edelman, GolinHarris, and GCI pitched,
as did PR firms based in the city like Cookerly and Tedco
Tampa office led its pitch.
Komisarjevsky, former CEO of Burson-Marsteller, is now a
strategic advisor to Edelman CEO Richard Edelman. He also
will serve pro-tem chair of Edelmans global corporate
practice and counsel the No. 1 independent firms leadership
stepped down from B-M in `05 after more than six years at
the helm. Most recently, he was senior counselor at APCO
praised Komisarjevsky as one of the most accomplished
counselors in the PR profession.
will advance the quality of our c-suite interactions,
according to Edelmans statement.
HANDLES STEVE & BARRYS REORG
& Co. is handling the Chapter 11 filing of Steve &
Barrys, the popular deep discount retailer that calls
itself a victim of the credit crunch.
features fashionable clothing priced under $10. Lines are
endorsed by celebrities/sports figures such as Sarah Jessica
Parker, Stephon Marbury, Amanda Bynes and Venus Williams.
Long Island-based retailer was founded in 1985 by childhood
friends, Steve Shore and Barry Prevor.
issued a statement to say though S&Bs strong
growth and sales performance far outpaced the industry,
tough economic times, the credit crisis and a landscape
of other troubled retailers reduced the appraised value
of our inventory and access to funding. Privately
held S&B claims first-month sales are up 25 percent
has 276 outlets. K&Cs Wendi Kopsick said no decisions
have been made about store closings. The chain employs 8,600
NAMED IABC CHAIR
Barbara Gibson has been named chair of the International
Assn. of Business Communicators.
20-year plus PR veteran runs SpokesComm, a London-headquartered
strategic communications planning and media training shop.
is past region chair of IABC Europe and Middle East and
past president of chapters in central Florida and the U.K.
last months IABC conference in New York, Gibson said
she wants to make the group less North America-centric.
Her goal is to highlight best communications practices wherever
they may be.
also named Irene Monley, chair of its research foundation.
She works at Tyco Electronics, responsible for global human
TELLS OF CONGLOM PROBLEMS
Sorrell, CEO of the WPP Group, whose stock has fallen to
the mid-$40s from its 52-week high of $76.50, told
the Financial Times June 30 of ongoing difficulties
in trying to manage the 300+ companies in the group.
is also in the midst of a hostile nearly $2 billion takeover
of the Taylor Nelson Sofres research firm. TNF prefers to
merge with GfK of Germany.
on page 7)
Edition, July 16, 2008, Page 2
PROMOTES PICKENS PLAN
oil tycoon T. Boone Pickens has launched the PickensPlan
program in an effort to wean this country off foreign energy.
York-based Sloane PR is handling media relations for PP,
which wants to harness domestic energy alternatives such
as wind power and natural gas to reduce the dependence on
energy imports. Elliot Sloane told ODwyers that
his firm picked up Pickens via a reference from a mutual
urges Americans to rally around his effort and challenge
the new President to unveil a program to break the hammerlock
of foreign oil within the first 100 days of his Administration.
is putting his money where his mouth is. He plans a potential
$6B outlay in Texas to create the worlds largest wind
founder of Mesa Petroleum fends off the notion that he has
turned green. Pickens told the Guardian his
business is making money, and that there is going to be
a lot of money made in alternative energies.
Mesa CEO, Pickens made his mark during the `80s via high
profile corporate runs at Gulf Oil, Phillips Petroleum and
now heads BP Capital Management, which has $4B in energy-oriented
assets under management.
HUNTER REVIVE HYDROX
Company is working with Hunter PR to bring back the Hydrox
brand as the crème-filled cookie marks its 100th
anniversary this year.
Biscuits first sold Hydrox cookies in 1908, three years
before the main challenger, Oreos, hit the market.
the Wall Street Journal put it in January: For
many years, the contest between Oreo and Hydrox was akin
to that of Coke versus Pepsi, the Beatles against the Rolling
Stones, dog people and cat people. It was not just a choice,
but a declaration of identity.
came to own the Hydrox brand when it acquired Keebler in
2001 but it discontinued the cookies, re-branded as Droxies,
in 2003. A grassroots movement on the Internet urged the
company to bring back the cookies and Kellogg has responded
with an August target date to test the market again with
a limited edition run of Hydrox in honor of
WANTS PR FIRM
Intelligent Transportation Society of America wants proposals
from PR firms that are interested in promoting its World
Congress slated for New Yorks Jacob Javits Convention
Center from November 16-20.
will be more than 800 speakers at 200 sessions dealing with
the latest developments in communications-based electronics.
The Society works to apply high-tech solutions to improve
the performance of the nations infrastructure and
PR firm will create messages to address issues such as safety,
congestion reduction/mobility, environmental sustainability
is expected to both consumer and trade media. The firm is
to organize pre-show media briefings in New York and D.C.,
set up media tours for key ITS staffers and handle the shows
media room. Post-show publicity is geared to supplying the
media with follow-up reports on the show.
PR firm will report to Sabrina Quirarte, director of communications.
She is receiving proposals through July 18 at [email protected].
REVAMPS COMMS., HR
is realigning its human resources and communications functions
and eliminating its top employee relations post following
a sharp drop in sales in June. The Big Three Detroit automaker
said executive VP Nancy Rae, who heads human resources and
corporate communications, will lead the integration of those
two functions with employee relations.
Nardelli, chairman and CEO of Chrysler, said in a statement
that the move is part of a long-term strategy to create
organizational synergies for the Auburn Hills,
said it is cutting production at a St. Louis pickup truck
factory and shuttering a nearby minivan plant in response
to a sales drop of 36 percent in June. Lori
McTavish, who was director of corporate and internal communications,
gets the new title of executive director, communications,
under Rae. Four key staffers covering communications
product/brand, executive, corporate business affairs, and
sales/dealer/motor parts report to McTavish.
Fraciosi, SVP of employee relations, will retire on Sept.
30 after 31 years and his position is being eliminated.
Chrysler is owned by Cerberus Capital Management.
AWARDS $480K PACT
Government of Dubais strategic affairs committee has
hired DLA Piper for a ten-month project worth $480K. DLAP
is the home of former Senate Majority Leader George Mitchell,
who chairs the firms global board.
firm is to provide government affairs services, a task that
includes contact with journalists.
partner John Merrigan, former chair of the Democratic Business
Council, which represents corporate interests in the Democratic
Party, and ex-Middle Atlantic chair for Kerry for President,
reps the Arabs.
is joined by Republican Ignacio Sanchez. He served on the
Bush-Cheney transition team as director of policy advisory
committees for the Treasury Dept. and Office of U.S. Trade
Representative. He was a speaking surrogate on Spanish language
media during the campaign.
also has a $25K a-month contract with Johnson, Madigan,
Peck, Boland & Stewart to promote Brand Dubai,
and a $1.2M annual pact with Levick Strategic Communications
for media and stakeholder relations.
EXITS NASA FOR PHILLIPS
Hopkins, chief of strategic communications for NASA, is
stepping down to open a Washington, D.C.-area office for
management consulting firm Phillips & Company.
oversaw the offices of communications planning, education,
legislative and intergovernmental affairs, and public affairs
for the space agency. The Navy veteran previously held PA
posts at the Environmental Protection Agency and the National
Oceanic and Atmospheric Administration.
Shank has been named acting chief of strategic communications
for NASA. Shank is director of strategic investments in
the office of program analysis and evaluation and earlier
was a professional staff member on the House Subcommittee
for Space and Aeronautics.
Edition, July 16, 2008, Page 3
TAKES WAPO EDITOR POST
Brauchli, who was pushed out of the Wall Street Journal
editor post by Rupert Murdoch, will become executive editor
of the Washington Post on Sept. 8. He succeeds Leonard
Downie, who announced his retirement on June 23.
Bennett, managing editor of the printed Post, and Jim Brady,
executive editor of the website, will report to Brauchli.
publisher Katharine Weymouth, 42, praised Brauchlis
tremendous wealth of experience, both as a journalist
and editor. His job is to help the Post navigate
the new world of media.
who took the publisher post five months ago, is front-runner
to succeed her uncle, Don Graham, as CEO of the Washington
47, resigned from the WSJ four months after News Corp. completed
the acquisition of Dow Jones & Co. He was replaced by
Robert Thomson, former editor of News Corps Times
joined Dow Jones in 84. He served in Hong Kong, covering
China, Taiwan and the Philippines before moving to Stockholm
as Scandinavia correspondent. He returned to Hong Kong in
`92 and moved to Shanghai as China bureau chief in `95.
Posts daily circulation is in the 675K range, down
from 800K in `00. Its website attracts nine million visitors
each month, the No. 3 ranked newspaper site.
WRAPS UP WEATHER CHANNEL
Electrics NBC Universal has inked a $3.5B deal to
acquire the Weather Channel and its website from Landmark
Communications. It partnered with Bain Capital and Blackstone
Group to cement the deal.
WC is received in almost 100M U.S. households. NBCU will
incorporate WCs offerings in MSNBC and NBC programming.
The WC will remain an Atlanta-headquartered operation.
NAST CLOSES GOLF FOR WOMEN
Nast is closing Golf for Women because it does not
support the goals of the magazine unit of privately held
Advance Publications, according to CN CEO Charles Townsend.
bimonthly was purchased from Meredith Corp. in 01.
GW published for a decade and was a companion to CNs
Golf Digest and GolfWorld.
Reed, editor of GW has moved to the editor-in-chief spot
at O, The Oprah Magazine, which is published by CN
rival, Hearst Corp.
assumed the newly created post of senior VP-programming
and development, alternative & digital at NBC Entertainment.
She joins from 20th Century Fox TV, where Hunter was VP-comedy
Hunter worked at Bravo, launching programs like Queer
Eye for the Straight Guy, Project Runway
and Celebrity Poker Showdown.
of marketing for RentWay and former PR and communications
advisor for Aarons Sales & Lease Ownership, has
been named editor for RTO Magazine, a bi-monthly
trade pub for the rent-to-own industry. Vance, who is based
in Kansas City, has contributed to the magazine and its
website for several years.
NEWS PR UNIT GOES FERAL
News PR machine goes feral if it doesnt
get what it wants, wrote David Carr in the July 7
New York Times.
CEO Roger Ailes, FN and its PR apparatus have waged
a permanent campaign on behalf of the channel that borrows
its methodology from his days as senior political advisor
to Presidents Nixon, Reagan and Bush, wrote Carr.
relations is a kind of rolling opposition research
operation intended to keep reporters in line by feeding
and sometimes maiming the opposition. Shooting the occasional
messenger is baked right into the process.
contends that through blacklisting reporters it does
not like and planting stories with friendlies at every turn,
FN is able to live a life beyond consequences for years.
told Carr about getting e-mails from FNs PR staff
that contained doctored photos, anonymous quotes and nasty
items about competitors.
source complained to Carr about getting smeared on
the blogs by Fox after he wrote a tough story about
the News Corp. unit.
writes of NYT TV reporter Jacques Steinberg, who penned
a story about CNN catching up to Fox in the ratings.
and Friends blistered Steinberg as a trained
attack dog and showed a doctored photo of him that
was similar to vintage German propaganda.
Lewis, who heads PR at FN, denies his staff participates
in dark ops. No blacklist exists, added Lewis, who said
his department is aggressive in a passive industry.
made it clear that FNs PR staff is not in the business
of altering photos and rejected Carrs suggestion that
the doctoring of Steinbergs headshot could be construed
as anti-Semitic. Lewis called the anti-Semitic charge vile
who has a soon-to-be-published memoir out that deals with
his days as a junkie and drunk, expects to be hammered by
OReilly has already called Carr a crack addict,
which the Times columnist says at least has the virtue
of being true, if a little vintage.
Mossberg Adds Fox Duties
Mossberg, the influential Wall Street Journal personal
technology columnist, is now a regular contributor to Fox
Business News. He appears Thursday morning.
is the first Journal staffer to have a regular perch on
its sister cable TV operation.
WSJ inked an agreement with CNBC, barring many of its staffers
from appearing on Fox. That deal was signed prior to the
papers takeover by News Corp., Foxs parent.
Mossberg was a contributor to CNBC.
news continued on next page)
Edition, July 16, 2008, Page 4
CUTS ANOTHER 250 STAFFERS
Los Angeles Times has announced plans to slice 250
people from the payroll including 150 in its newsroom. The
news staff cuts are divided between the LATs 876 print
and online journalists.
paper had 1,200 journalists on its payroll at its peak in
2001. The company will employ about 3,000 people after the
cutbacks. The LAT will reduce the number of pages that it
publishes each week by 15 percent as part of the overhaul.
Russ Stanton announced the job cuts via an internal memo.
Though the `Net has greatly expanded readership of the LAT,
Stanton noted that it offers advertisers more choices and
that results in less ad dollars for the paper.
LAT has been hit by the collapse of the California housing
market and the poor national economy that triggered a wave
of cutbacks through newsrooms from New York to Santa
Ana, according to Stanton, who will have details about the
retrenchment program by Labor Day.
CORP. KEEPS OTTAWAY
Corp. has decided to keep its collection of Ottaway newspapers
that it acquired with the acquisition of Dow Jones &
media combine has said prior to closing the DJ&C deal
that it planned to study the sale of the eight daily and
15 weeklies. The Ottaway group includes Cape Cod Times,
Standard-Times (New Bedford, Mass.) and the Inquirer
and Mirror (Nantucket).
BIDS ADIEU TO PR
Wycliff, who left the news business in `06, for a PR slot
on Notre Dames information staff has resigned from
the South Bend-based school.
former public editor of the Chicago Tribune and editorial
page editor for a combined 15 years says he isnt cut
out for PR.
did enjoy teaching a journalism course, but that was only
a small part of his overall ND duties.
61-year-old newsman also served as a member of the New
York Times editorial board and was an editor at the
Week in Review section.
reported and edited at the Chicago Sun-Times, Houston
Post and Dallas Times Herald.
LIFE, TOP NUKE PLANT FOE, FOLDS
Life, which once boasted of being the biggest weekly
paper east of the Mississippi, has folded due to falling
profits and the declining health of publisher Dave Wilmott.
crusading weekly was mailed free to residents of Long Islands
Suffolk County and had a peak circulation of 545K.
Levy, executive of Suffolk County, told Newsday that
SL will be remembered for its in-depth news coverage
and Wilmotts no-holds-barred editorials.
was a fierce opponent of the Shoreham nuclear plant, the
$6B fully licensed facility that was shut down before generating
a single kilowatt of electricity. He told ODwyers
PR Services Report (February, 1990) that Shoreham, which
was built on the shore of Long Island Sound, was a time
bomb and there was no way to evacuate Long Island
in the event of a disaster.
accounted for about 10 percent of SLs news hole, and
scores of editorials that Wilmott called strong and
controversial, but politically balanced.
plant was fully decommissioned on Oct. 12, 1994, which ended
a 25-year fight over nuclear power on Long Island, and besmirched
the reputation of former New York Governor Mario Cuomo.
$6 billion price tag -- about 85 times higher than
the original estimate -- had nearly wrecked the regional
economy by saddling Long Island with some of the highest
electric rates in the nation, according to Newsday.
has been ill with asthma and heart trouble, according to
his son, Michael, who called SLs shutdown a personal
chalked up many critics over his long career. A political
blog ripped Wilmott for using SL as a bully-pulpit
for right wing law enforcement Republican enthusiasts.
blogger credited SLs success with a Supreme Court
ruling that allowed newspaper publishers to mail papers
to people, even if they didnt want to receive them.
Eason, the main booker on The Big Idea With Donny
Deutsch, is exploring other opportunities after almost
four years of working with the adman and CNBC.
and show inquiries now go to [email protected].
GOOGLE HAS TOP REPUTATION
has completed a four-year ascent to have the best reputation
in U.S. business, according to Harris Interactives
annual Reputation Quotient survey and ranking.
didnt even register among the top 60 most visible
companies compiled by Harris in 2004.
seventy percent of Americans told Harris that corporate
Americas reputation is not good or terrible,
according to the survey, which is based on more than 20K
interviews and gauges perception of companies between 2006-07.
general terms, technology companies are seen to have the
best reputations while the tobacco and oil industries are
viewed among the worst. The airline industry saw the largest
decline in reputation last year.
the biggest gains over the last two years among Harris
ratings were Hewlett-Packard, which rose from #38 in 2006
to #17 last year; Berkshire Hathaway, up to #6 from 21 in
2006; Intel, which rose to #3 from 16, and McDonalds,
up to #38 from 47.
the hardest hits were Bank of America, which slipped from
#43 to 49, Halliburton (which remained at the bottom of
the ranking at #60 and saw its rating fall), Wal-Mart (from
#40 to 44), Sears (from #41 to 46) and Nike (from #25 to
Edition, July 16,
2008, Page 5
OF PR FIRMS
TEAMS WITH FAUCHEUX
Communications has launched Clarus Research Group, a polling
and PA research firm, in conjunction with noted political
consultant Ron Faucheux.
is the result of the merger of Qorvis in-house capability
with Faucheux Strategies.
has worked in nearly 120 political races and ballot initiatives.
He is former editor and publisher of Campaigns &
Elections magazine, chief of staff to Sen. Mary Landrieu
(D-La), government affairs chief at American Institute of
Architects, Louisiana Secretary of Commerce and member of
the Pelican States House of Representatives. He moved
from New Orleans to Washington 15 years ago.
experience provides Clarus instant credibility to
build a solid corporate, advocacy and non-profit client
base, according to Qorvis managing partner Michael
SETS UP TORONTO OUTPOST
Francisco-based Bite Communications has opened a Toronto
office to tap growing consumer, enterprise and clean tech
markets in Canada.
Will Willis heads up the outpost with a small team. He is
a former senior PR manager at Bite client Advanced Micro
Hargreaves, GM of North America for Bite, called Toronto
a strategic hub for many of the firms
tech clients. It is very important to us that we meet
their needs by opening this office, he said, noting
AMD and Sybase are two key clients to be served from Toronto.
former PR director for PriceWeber, has set up her own Louisville,
Ky.-based firm, Top Shelf Communications & PR. A key
first assignment is providing strategic comms. services
to DHL Express USAs U.S. headquarters. ...A new network
of PR firms has formed focused on the travel, transportation,
luxury and lifestyle sectors. Hawkins International PR,
New York, is the U.S. representative for the group, called
Orchestra - Global Communication Network,
which includes FD (London); Martinengo - Global Marketing
Communication (Milan); Wilde & Partner (Munich), and
Sergat Espana (Barcelona), among others. Twenty countries
are represented, the group said. Info: themarketingorchestra.com.
Buffalo, N.Y., chalked up 15 of the 26 Excalibur Awards
given by PR Societys Buffalo/Niagara (N.Y.) chapter
in June. The firm took home gold awards for its work with
the Univ. of Buffalo (community relations and external video),
Catholic Charities (public service), Unshackle Upstate (public
affairs and creative tactics). ...Litzky
began in an apartment on the Upper East Side of Manhattan,
is marking its 20th year with a move across the Hudson River
to Hoboken, N.J. Michele Litzkys firm has 14 staffers
and focuses on toys, entertainment, tech and publishing.
Hasbro has been a client for 14 years. Litzky has revamped
the firms corporate identity and website to mark the
anniversary. Info: litzkypr.com.
New York/BNP Paribas Taste of Tennis, pre-U.S. Open charity
event, for PR for the fifth consecutive year.
& Soell, New York/Seward & Kissel, financial
district law firm, as AOR for PR.
Mardiks, New York/ShermansTravelMedia, publisher,
for media outreach and brand positioning.
PR, New York/The Laundry, East Hampton eatery, for
Williamstown, N.J./Post University, for re-brand of the
school and to promote its main campus in Waterbury, Conn.
Partners, Portland, Me./Maine Center for Creativity,
for PR for its Art All Around international competition.
Group, Cary, N.C./Amana Tool, saw blades and boring
bits maker, for strategic consulting and media relations
in North America and regions of South America.
Advertising and PR, Myrtle Beach, S.C./
Burroughs & Chapin Co., for marketing and PR for its
$250M Broadway at the Beach entertainment complex.
Orlando, Fla./Grupo HIMA-San Pablo, Puerto Rico healthcare
provider, a national PR push for its capabilities and facilities
to the medical insurance industry.
Brand Communications, Denver/Stetson, for integrated
marketing, including events, in-store marketing, PR and
online comms., following a review.
Public Relations, Austin, Tex./Trans Pecos/El Paso
Regional Center of Innovation and Commercialization, as
AOR for PR to launch the organization which fosters entrepreneurial
relationships across the U.S.-Mexico border and focused
on the El Paso area.
PR, Portland, Ore./American Lung Assn. of Oregon,
for pro bono PR.
Communications, San Francisco/Serious Materials,
green building products, as AOR for PR.
Hall, Cosa Mesa, Calif./Orange County Teachers
Federal Credit Union; Springboard, financial literacy resources
for consumers; Mi Pueblo Foods, No. Calif. grocery; Marcus
& Millichap, brokerage firm; City of Victorville, and
EnviroFinance Group, brownfield lending specialist, for
Group, Campbell, Calif./frevvo, web development software;
Filtrbox, web-based media monitoring service, for PR.
PR, San Diego/Tecate Light, beverage brand, for PR
with an advertising push by MediaVest New York targeting
Mexican and Mexican-American adults in the U.S.
Townsend, San Diego/Tessera Technologies, packaging
and consumer imaging solutions, as AOR for PR in the U.S.,
including product launches, trade show support and media/analyst
Edition, July 16, 2008, Page 6
ELECTS NEW SLATE
York Women in Communications has elected its slate of officers
for the 2008-09 year with Weber Shandwick SVP Nancy Rabstejnek
Nichols serving as president.
takes the reins from Kristine Welker, VP of sales and marketing
for Hearst Digital Media, who continues on the board as
immediate past president.
counts nearly 1,500 members in media, marketing, publishing,
PR and entertainment. Its annual Matrix Awards are a premier
event in New York.
out the new board are: president-elect Denise Warren, senior
VP, chief advertising officer, New York Times; secretary
Nancy Megan, owner, Promotion Management; VP/finance, Jennifer
Brisman, president, Events New York; VP/integrated marketing
& comms. - branding, Dorothy Crenshaw, president, Stanton
Crenshaw Communications; VP/integrated marketing & comms.
- PR, Linda Levi, senior comms. officer, NewYork-Presbyterian
Hospital; VP/integrated marketing & comms. - editorial/content,
Gail Griffin, general manager, Barrons Online; VPs/membership,
Marcia Cole, deputy managing editor, Realsimple.com, founder,
Ambermag.com, and Renee Nino de Rivera, Nino de Rivera Communications,
Inc.; VPs/programming: Leslie Hunt, associate director,
outreach, EMBA Career Management, Columbia Univ., and Timi
Lewis, director of corporate affairs & strategic planning,
NYC TV; VP/sponsorship, Sue Katzen, assoc. publisher, Cosmopolitan;
VP/strategic planning, Karen Karpowich, consultant; VPs/student
affairs, Joan Cear, managing director, G.S. Schwartz &
Co., and Linda Krebs, senior A/E, G.S. Schwartz & Co.
Associated Press said the 2008 edition of its go-to Stylebook
is one of the largest updates ever with more than 200 new
entries from iPhone to WMD.
the additions also come subtractions. Words that have been
tossed from the new edition include blue blood, malarkey,
milquetoast and Photostat. Entering the stylebook are high-definition,
podcast and Wikipedia.
is now an acceptable alternative for the AP-preferred Sept.
11 in describing the terror attacks of 2001, and the African-American
entry has been updated to indicate that term and black
are not necessarily interchangeable, although the latter
is acceptable for an American black person of African descent.
new feature for the 2008 edition is a food and recipe style
is $18.95 via ap.org.
An online subscription version is $25/year.
a Cincinnati-based lead generation firm in the marketing
sector, has been tapped by Velocity Studio, an Ontario-based
marketing communications firm and RSWs second Canadian
Norwalk, Conn., said it has reached 500 users for its MediaQ
monitoring application launched in mid-January. The tool
tracks print, online, blogs and real-time broadcast news,
according to the company. Info: enr-corp.com.
Dieterle, a Horn Group veteran, to Racepoint Group,
Waltham, Mass., as executive VP. Marijean Lauzier, CEO of
Racepoint, cited Dieterles expertise with Fortune
1000 companies in the B2B and enterprise software space
in announcing the hire. Dieterle is a 20-year veteran who
spent nine years at Porter Novelli.
McGonegal, former SVP of equities at the American
Stock Exchange, to The Investor Relations Group, New York,
as an executive VP. He joins TIRG from Morningstar, where
he was VP of business development and analyst research.
Breglio, director at Mullen, to 360 PR, Boston, as
an A/D. She previously held posts at Fitzgerald Comms. and
Regan Comms. Brittany
Welch joins as an A/E from Shift Communications,
and Stephanie Shih
and John LeRoy
join as A/Cs.
Limbaugh, senior A/E, The Treister Murry Agency,
to Zig, part of MDC Partners, Chicago, as director of comms.
Earlier, she was an A/E at 160over90 in Philadelphia.
Clark, client services director for law firm Polsinelli
Shalton Flanigan Suelthaus, to Ash Grove Cement Company,
Overland Park, Kan., as director of comms. and public affairs.
She was formerly manager of public affairs at Hallmark Cards.
Sainz, director of comms. and press secretary to
Mayor Jerry Sanders of San Diego, to The Gill Foundation,
Denver, as director of comms. and marketing, starting Aug.
18. The Foundation, started by tech entrepreneur Tim Gill,
focuses on gay rights. Sainz was VP of public affairs for
the San Diego Convention Center Corp. and worked at the
Waitt Family Foundation, 1996 Republican National Convention.
St. Clair Pearson, who headed marketing, branding
and comms. at Breakthrough Management Group, to Verio, Centennial,
Colo., as senior director of marketing and comms. Earlier,
she was director of marketing and comms. at ViaWest.
Maher, a former reporter and agency pro with stints
at Grace Advertising, Medium 21 and The Blackstone Agency,
to Media Mayhem Corp., Los Angeles, as a PR specialist.
Herr, VP in the consumer group at Michael A. Burns
& Associates, to Forte PR, Dallas, as VP of client services.
She was at Cummings McGlone & Assocs. when it merged
with MAB in 2001. Also, Jade
Falldine, a six-year veteran of Greystone Communications,
joins Forte as senior VP of operations, and Madeline
Clark, a sales assistant at Freeman, joins as a senior
Hall Vaughan to president, Vladimir Jones, Denver.
The eight-year veteran of the firm founded its account planning
unit and served as executive VP.
Krizan, CEO of The Wow Factory, to director of comms.
for the board of directors of Meeting Professionals Internationals
Edition, July 16, 2008, Page 7
TELLS OF WOES (Cont'd
from page 1)
The Times said
WPP is under increasing pressure from giants like Google
and Microsoft that can dictate the future of advertising
by dealing directly with clients and bypassing companies
It was against this backdrop
that Sorrell said that WPP, which grew mostly by acquisitions,
is threatened with becoming over-bureaucratized.
The model we, Omnicom,
Publicis and Interpublic have is the most difficult to manage,
because you have different tribes [and] warring factions
that work in isolation, he said. He referred to McKinsey
and Goldman Sachs as companies that are strong
because they have grown organically.
At WPP, he said, internal
communications and internal politics are the bane of our
WPPs first big acquisition
was the hostile takeover of J. Walter Thompson in 1987 for
$566M followed by the takeover of Ogilvy in 1989 for $864M,
Young & Rubicam in 2000 and Grey in 2005.
Stocks of the five conglomerates,
including Havas, are at their all-time or at least 52-week
WPP is at the mid-$40s,
below where it was in 1990. It was slightly above $50 then,
rose to about $100 in 2000, and has been in the $50-$75
range since then except for the past few weeks. Its shares
are down 38% from the 52-week high.
Its debt is about $4 billion
according to Generally Accepted Accounting Practices.
However, WPP reports its
debt as average net debt, subtracting cash on
hand from debt. This is not allowed under GAAP. Average
net debt for Q1 of 2008 was reported as 1.66 billion pounds
or about $3.3B vs. 1.08 billion pounds or about $2 billion
in the same 2007 quarter.
is $3.08 Billion
Omnicom, whose stock is
around $43, off 20% from its 52-week high of $55.45, was
$53.50 on Dec. 17, 1999. It is comprised of more than 1,500
It reports debt both according
to GAAP and by net debt although it notes the
latter figure is not accepted under GAAP. Actual debt, according
to Finance/Yahoo, is $3.08B.
Interpublic, with debt
of just over $2B, is below $9, off 38% from its 52-week
Publicis, with about $2.8B
in debt, is just below $20, off from its 2001 high of about
Havas, at about $2, is
at its all time low. It was as high as about $18 in 2001.
Total debt of the conglomerates
is about $12B.
Omnicom several years
ago was able to sell CoCo bonds (contingent
convertibles) which carried no interest. The bonds, also
known as zero bonds, were convertible to stock
which supposedly would increase in value. OMC is paying
sweeteners (interest) on such bonds.
It announced June 18 that
the 2033 and 2038 series of zero bonds were all renewed
with no redemptions. The interest rate paid was not provided.
Sanford C. Bernstein &
Co., which describes itself as Wall Streets premiere
sell-side research firm, on July 8 downgraded Omnicom
from outperform to market perform.
Five of the last six changes
in advice on OMC from Wall Street Houses have been downgrades.
The stock has been in
the low $40s after achieving a new high of $55 earlier
slide killing Madison Ave., headlined the New York
Post last week.
It feels adland is growing
increasingly pessimistic about its prospects this year,
citing forecasts by industry analysts.
Robert Coen of Magna,
media research arm of Interpublic, lowered his estimate
of the ad spending gain in 2008 from 3.7% to 2%.
The Post quotes Coen as
saying, The advertising industry is presently in a
Banc of America Securities
on Nov. 7, 2007 downgraded OMC from buy to sell.
Deutsche Securities on
June 25, 2007, upgraded OMC from hold to buy.
UBS and BMO Capital Markets initiated coverage of OMC earlier
Oppenheimer analysts met
June 24 with OMC CFO Randall Weisenburger (although the
report misspelled his name as Heisenberg) and
kept its rating at outperform.
The report, by Jason Helfstein
and Jennifer Dance, said OMC executives are seeing a modestly
weaker organic growth vs. 1Q but are not seeing a dramatic
change in client spending.
that conditions could weaken further and is focused
on maintaining earnings-per-share growth of 13-15% through
expense control and share buybacks.
TRI-STATE HAS CANDIDATE
The PR Society candidate
drought in the Tri-State district (New York, New Jersey
and Conn.) is continuing, with the nominating committee
forced to push back the deadline for candidates a second
time to Friday, July 18.
Initial deadline was June
9. This was extended to June 30. Cheryl Procter-Rogers,
2006 chair, took over as chair of the nomcom on Jan. 1 this
Veteran Tri-State members
say the failure of any of the hundreds of APR members to
show up for the open board seat for the district is becoming
an embarrassment to national leaders.
Current occupant of the
district seat is Francis Onofrio, a counselor based in Bethany,
Conn. He did not appear before the New York chapter during
his term nor issue any public reports about PRS to members.
There is no public record of his appearing before any of
the other chapters including Westchester/Fairfield, Southern
Conn. and Conn. Valley.
Calls and e-mails to Onofrio
by this website were unanswered.
Some Tri-State members
who are APR and could run for the board say they would not
subject themselves to the strict silence imposed by leadership
New directors are required
to sign an oath at the first meeting forbidding them from
making any comments to the press about the Society or PR.
They promise to keep all Society matters confidential.
PRS policy is that the
elected CEO is the only person who can speak in behalf of
the Society or about PR subjects in general. Directors mostly
remain silent even after they leave the board.
Edition, July 16, 2008,
shaky stock market is proving especially hurtful to the
ad conglomerate stocks
and calls into question the viability of the conglomerate
Sorrells remarks to the Financial Times about
warring factions at WPP and internal politics
being the bane of our existence are not helping
also cast a jealous eye at companies like McKinsey and Goldman
Sachs which he said have grown organically.
mentioned the other conglomerates by nameOmnicom,
Publicis and Interpublic (leaving out the much smaller Havas).
model that such companies have is the most difficult
to manage because you have different tribes [and] warring
factions that work in isolation, he said.
on the story were quick to come on odwyerpr.com.
Sorrell is being very honest about major issues we
have known for many years, said former PR exec
with two WPP PR units, adding: The conglomerate
model is not only broken, it has been a mess since its origin.
firms in conglomerates not only compete with each other
but within themselves
teamwork is very rare
between divisions and among executives of units in PR firms,
said the contributor.
synergies often dont work out, said another
contributor and a third one wondered how long banks are
going to float the conglomerates in view of the tighter
credit. Combined debt of WPP, OMC, IPG and Publicis is about
$12B and has been at that level for years.
of WPP at $44 is back where it was in 1990 while OMC at
$40 is where it was in 1998. Sanford Bernstein on July 8
downgraded OMC from out perform to market
perform and Deutsche Bank on July 1downgraded IPG
from buy to hold. Five of the six
last changes in advice on OMC from Wall Street houses have
been downgrades. The ad industry is presently in a
severe slump, said researcher Robert Coen of the Magna
research arm of IPG.
being battered and which has a big debt ($1.05B vs. revenues
of $3.16B) is the New York Times.
Its stock has sunk to $14 or where it was in 1986. It reached
a high of $55 in 2002. CEO Arthur Pinch Sulzberger
has defied NYT tradition by running both the business and
editorial sides. His hand is obvious in certain editorial
policies. One subject off-limits is OMC while its
practically open-season at the NYT on IPG.
PR and PA businesses had a stellar year in 2007,
said the 2007 WPP annual report. Revenues grew 8.2% not
counting mergers, and 12.6% on a constant currency
basis. Profit margin was 16.5%, up 1.5%. PR/PA makes up
10.5% of WPPs revenues but 11.7% of profits.
rosy picture is painted for Hill & Knowlton, Burson-Marsteller,
Ogilvy PR, Cohn & Wolfe, and GCI (C&W and GCI were
merged earlier this month).
dollar or employment figures are given.
Paster, XVP of WPP PR/PA, said in 2003 that lawyers warned
CFOs of the dangers of signing off on numbers because accounting
principles differ from country to country.
The conglomerates operate in numerous countries. WPP lawyers
and executives of its PR firms had discussed the matter
long and vigorously before making the decision
to withhold numbers, Paster said in 2003. Sarbanes-Oxley
provides jail terms and fines for misleading financial data.
last figures given by the hundreds of conglomerate ad agencies
and PR firms were for 2001, making 2007 the sixth straight
year without such data. A total of 190 independent PR firms
provided verified figures for the 2007 ODwyer rankings,
topped by Edelmans $395M in fees.
H&K and Ogilvy made excellent progress in
2007 as B-M
continued operating from strength in the U.S. while
rebounding in Europe, says the WPP report. B-M
benefited from good years at its BKSH, Direct Impact, and
Penn, Schoen & Berland subsidiaries. H&K maintained
its broad leadership in Europe and showed special growth
in Canada, the Middle East and Asia. Ogilvy did well in
all regions while sustaining its leadership in China.C&W
and GCI turned in impressive results, with C&W
again delivering the highest margin among the WPP
CEO Paul Taaffe said H&K celebrated its 80th birthday
by reaching record levels.
Every region and practice expanded, he said, with 20%+ growth
in the Gulf, Australia, China, Canada, Denmark, Hungary,
Sweden, Puerto Rico, Spain and New York. H&K has 72
offices in 41 countries. Largest clients, served in many
countries, include Amgen, Deloitte, HP, Merck and P&G.
Major new clients include HSBC, Qatar Financial Centre Authority,
Alstom, Castrol, Nord Stream and the OPEC Conference.
the subject of international accounting rules,
the Bush Administration is proposing a shift to international
rules for financial reporting (NYT 7/5). Such rules are
weaker than U.S. rules and would put U.S. investors
at the mercy of overseas regulators, said the
NYT. It feels a last-ditch effort is being made
to dilute rules passed after the Enron and other scandals
990, which would show the salary of PR Society COO Bill
not filed by the first deadline, May 15. A PRS staffer said
the filing may be made either by the next deadline of Aug.
15 or by Nov. 15, the final deadline (which would be after
the PRS Assembly Oct. 25) ... we
dont know how the nine educators who are seeking national
office at PRS can associate their
institutions of learning with the formal press boycott that
has been passed by the PRS board. We doubt their school
officials would allow this. The link to the PRS e-mail disclosing
the boycott against this NL is as follows (click
here). Charges are made against us but no specifics
are provided (because the charges would dissolve at the
merest light shed on them). The candidates are Rosanna
Intl Univ.; Vince
Veterinary College; Deborah
Buffalo State; Amy
of Ark.; Susan
Educ. Assn., Carolyn
Christian, and Ann