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Internet Edition, July 23, 2008, Page 1

H&K SIGNS $240K QATAR PACT

Hill & Knowlton expects to earn $240K through the end of the year as PR representative for Qatar Financial Centre Authority.

Located in Doha, the QFCA seeks to attract global financial companies and multinationals eager to invest in the region. It boasts of “best of breed” standards and world-class legal support.

Forbes (April 21) anointed Qatar as the world’s top tax cutter. A recent cut in its corporate tax enabled Qatar to leapfrog “nearby Dubai as an enticing spot for entrepreneurial wealth creation.”

H&K also represents Saudi Basic Industry Corp. in the Middle East. That client kicked in $416K during the six-month period ended May 31.

PhRMA RETAINS BREAUX LOTT

The Pharmaceutical Research and Manufacturers of America has hired Breaux Lott Leadership Group to do its bidding on Capitol Hill. Former Senators John Breaux (D-LA) and Trent Lott (R-MS) spearhead the effort.

PhRMA made news July 10 with a revision of its marketing code to “ensure that pharmaceutical marketing practices comply with the highest ethical standards.”

Billy Tauzin, PhRMA CEO, said the measure fortifies his group’s “commitment to ensure medicines are marketed in a manner that benefits patients and enhances the practice of medicine.”

He hopes “all companies that interact with healthcare professionals” will adopt PhRMA’s voluntary standards.

PhRMA critics say the code is an effort to fend off tighter regulation of the drug industry’s marketing practices, such as a Senate bill requiring companies to publicly disclose payments to doctors of $500 or more.

Tauzin is a former Republican Congressman from Louisiana.

FLAHERTY NAMED NO. 2 AT KETCHUM

Rob Flaherty, senior partner, global practices and New York managing director, becomes president of Ketchum on Aug. 1. The post has been empty since Ray Kotcher, 56, assumed the CEO title in `00.

Flaherty's promotion is part of a Ketchum re-org put into place by Kotcher to face challenges posed by rapid globalization, heightened demand for transparency and digital revolution during a period of "ongoing economic ambiguity."

Kotcher, in Ketchum's release, claims the shop enjoyed a strong first-half, "putting the agency's performance in the upper echelon of the industry."

CITI CUTS OMC’S RATING

Citi Investment Research downgraded its rating on Omnicom shares from “buy” to “hold” because the “economic environment is making us more bearish on ad spending through `09.”

OMC’s price target has been slashed from $60 to $47. The ad/PR combine is now trading at $42.30, near its $40.86 52-week low. The stock traded as high as $55.45 during the past 12 months.

Though Citi calls OMC a “core media holding,” the “downturn means that it is likely to stagnate for the time being.” It credits OMC’s “disciplined management team,” but feels it is battling sharp declines in the U.K./Euro markets and slower organic growth on the U.S. front.

Citi analysts David Rose and Catriona Fallon wrote: “Omnicom is susceptible to declines in revenue when there is a recession. We do not expect that Omnicom will always curb its own expenses during a downturn, so the company could have sharp declines in operating margin when it sees declines in revenue.”

Citi reaffirmed its “hold” rating on Interpublic, which has a price target of $8.50. IPG stock trades at $7.73. Its 52-week range is $11.85-$7.22.

NIKE’S BOETTCHER SHIFTS TO WS

Chad Boettcher, who was global director of Nike’s corporate responsibility programming, has moved to Interpublic’s Weber Shandwick. As senior VP-CR, he is to develop campaigns with a focus on digital and social network applications.

At Nike, Boettcher was noted for leading its global “4C’s (compliance, community, climate change and considered design) effort.

Earlier, he worked at MTV as senior director for strategic partnerships and PA. He helped create the “Choose or Loose,” “Fight for Your Rights,” and “Alternative Spring Break” campaigns.

PRS SECRETARY CANDIDATE INTERVIEW

Prof. Vincent Hazleton of Radford Univ., candidate for secretary of PR Society, answers questions from O'Dwyer's.

1. Should directors sign a "confidentiality" agreement at first meeting? Yes. The current policy does not discourage leaders from expressing their personal opinions. The need to distinguish between personal opinions and the policies of PRSA is made clear.

2. Remove APR requirement for national board, nominating committee? The APR credential signifies that a member has acquired a specific body of knowledge and has a commitment to professional development within the profession. These are important attributes that members should expect from leaders.

There are only two attributes that are currently privileged in selection to the nominating committee and board of directors: The APR credential and district membership.

(Continued on page 7)


Internet Edition, July 23, 2008, Page 2
   

5W SNAGGED IN BLOG MESS

5W Public Relations CEO Ronn Torossian told O’Dwyer’s that senior VP Juda Engelmayer is still employed at the New York-based firm that is embroiled in a fake blogging mess concerning kosher meat giant Agriprocessors, target of a federal round-up of illegal workers.

The Jerusalem Post, July 12, reported that 5W is accused of “posting comments on the Internet under fraudulent names to promote its client.” Those comments were uncovered by the blogger of FailedMessiah.com, who traced the postings to 5W computers.

Another posting, according to Forward.com, came from a computer that appeared to be from Engelmayer’s home. Engelmayer runs the Agriprocessor account.

5W’s IT unit investigated the accusations, which “we have now learned to be true,” said Torossian. The 5W CEO believes “growing companies often have problems in their expansion.” He notes that 5W has been in business since January `03 and “according to O’Dwyer’s 2007 rankings our revenues exceeded $11.5M, and we are the 21st largest independent PR firm in the U.S.”

MINNEAPOLIS LOOKS FOR WATER BOOSTER

Minneapolis plans to hire a firm to a $180K contract to convince people that its tap water is “pure, safe, great-tasting and environmentally friendly,” according to an RFP.

Steve Berg, columnist for the Star-Tribune, believes a key problem for the firm is to overcome the fact that sometimes the “water stinks to high heaven.”

That’s because the city’s state-of-the-art filtration system is not sophisticated enough to eliminate odors from leaves, algae and other organic matter that build up in the Mississippi River as the weather gets warmer.

Minneapolis has invested $140M to insure that its tap water exceeds federal standards. The RFP, which closed July 11, says the new plant is the “largest of its type in the Western Hemisphere and can filter out particles as small as some viruses.”

Minneapolis spokesperson Matt Laible told Berg that the city receives hundreds of complaints about its water, but emphasized the smell is a “temporary but perennial problem.”

Berg believes the winning shop has its work cut out. The job ranks with “convincing consumers that New Coke was better than Classic Coca-Cola or that Richard Nixon wasn’t a crook.”

SEIGENTHALER JOINS FAMILY’S FIRM

John Seigenthaler, who anchored “NBC Nightly News Weekend” from `99 to `07, has joined Nashville-based Seigenthaler PR as partner and will open SPR New York.

The PR shop was started in `72 by the late Tom Seigenthaler, John’s uncle. It is run by Tom’s daughters, CEO Elizabeth Seigenthaler Courtney, President Amy Seigenthaler Pierce and chief marketing officer Katie Seigenthaler.

AS CEO of SPR New York, Seigenthaler will provide media strategy/training and crisis services.

The New York Daily News famously dubbed Seigenthaler “the thinking man’s broadcaster.”

GAY MARRIAGE OPPONENTS TAP KERNS

Interest groups backing a statewide November referendum in California to halt gay marriages have brought in a veteran GOP political PR pro to direct communications for the effort.

Jennifer Kerns, who runs K Street Communications in San Diego and has been press secretary for several Republican officials in California, has been named communications director for the groups, operating as ProtectMarriage.com. The group is pushing for support of Proposition 8, known as the California Protect Marriage Act and slated for the November ballot in the Golden State to limit marriages to only those between a man and woman.

Kerns was recently press secretary for Steve Francis, who ran unsuccessfully for mayor of San Diego despite spending nearly $5M. She previously was senior press secretary for California Insurance Commissioner Steve Poizner after directing communications for his campaign.

Earlier, Kerns was Assistant Secretary of State and spokeswoman for California Secretary of State Bruce McPherson.

ProtectMarriage declared a small victory last week when the state’s supreme court tossed out a petition to remove the California Protect Marriage Act from the November ballot.

Jeff Flint, former VP at Russo Marsh + Rogers, and Frank Schubert, ex-Goddard Claussen Porter Novelli executive, are also working with ProtectMarriage.com through their firm, Schubert Flint Public Affairs.

On the flip side of the PR fight, WPP units Ogilvy PR Worldwide and Dewey Square Group are working to defeat the ballot initiative.

OGILVY LANDS $190K TRINIDAD PACT

Ogilvy PR Worldwide has a two-month $190K project to promote Trinidad and Tobago’s international finance center, which opens for business next month with the hope of positioning as an investment gateway for worldwide funds headed for Latin America and the Caribbean.

Karen Nunez-Tesheira, T&T’s Minister of Finance, has been making the rounds in the Middle East and New York promoting the venture’s commercial banking and investment opportunities in her country’s energy, transportation and tourism sectors.

She wants to duplicate the success of IFCs in Singapore, Dubai and Dublin, while competing with smaller “neighbor” financial facilities in Bermuda, Bahamas and Cayman Islands.

Ogilvy works as a subcontractor to Washington-based Ainsley Gill Assocs., which reps T&T.

Eric Rosenberg, an Ogilvy VP in Washington, is project manager. He is supported by Lisa Ross, Tony Bullock and Rory Davenport.

The WPP unit’s duties include communications planning, message development, “talking points” for government officials, website development, press materials, and media/blogger outreach.

Ogilvy bills its client on an hourly basis. The rates range from $75 for an intern, $250 for a VP and $400 for a managing director.


Internet Edition, July 23, 2008, Page 3
   
MEDIA NEWS
    

LAT’S HILLER, TRIB’S LIPINSKI EXIT

David Hiller, publisher of the Los Angeles Times for the past two years, has resigned the Tribune Co. property. He led the aggressive cost-cutting program, which triggered the departures of editors Dean Baquet and James O’Shea.

In a note to staffers, Hiller wrote that Tribune CEO Sam Zell is the boss and should get his choice to “pick his own quarterback.”

Zell expects to name a replacement to Hiller by the end of the summer.

In another big personnel move, Ann Marie Lipinski exited as editor of the Chicago Tribune. She said the job is “not the fit that it once was.” Gerould Kern takes Lipinski’s spot. He vowed to make the paper more “fun to be with.”

The Tribune is eliminating another 80 journalists, cutting the newsroom count to a little more than 575 people.

The cuts will be in place by the end of August and are in line with the plan to reduce the number of pages printed each week by about 15 percent.

The Trib had 670 newsroom staffers in `05.

More cuts in other departments are expected as Zell works to reduce debt tied to his takeover of the media combine.

AJC CUTS 8% OF WORKFORCE

The Atlanta Journal-Constitution is cutting its 2,300 workforce by eight percent, or by 189 jobs, by dropping its “geographically targeted news sections.”

The paper says publishing the community sections is now cost prohibitive due to rising newsprint/fuel prices during a time of slumping advertising revenues.

The AJC is committed to maintaining news bureaus in the outlying areas, and promises that the daily metro and sports sections are going to expand coverage beyond the core Atlanta market.

NYT STOCK TANKS

The New York Times Co. stock hit a ten-year low of $12.08 last week following a blistering report by Lehman Brothers analyst Craig Huber.

He slashed NYTC’s price target to $8 a-share from $12, calling the stock the most expensive of the newspaper group.

Huber urged CEO “Pinch” Sulzberger to cut the dividend and earmark the cost-savings to reducing the $1B debt load of the $3.2B company.

NYT shares traded at $50.11 on Oct. 21, `02. They traded as high as $23.88 during the past year.

The NYTC will release its second quarter financials on July 23.

NBCU TEAMS WITH WAL-MART

NBC Universal has inked a multi-million-dollar deal with Wal-Mart in which the retailer sponsors “momtourage” material on NBCU programming to help mothers to become better parents, teachers and neighbors.

The deal is part of Women@NBCU, a unit that provides advertisers opportunities to gain access to female-friendly outlets such as the “Today” show, Bravo and Oxygen cable outlets and the iVillage website.

The NBCU/Wal-Mart tie kicks off during the third-quarter. Lauren Zalaznick is president for women and lifestyle entertainment at NBCU.

GREGO SHIFTS TO B&C

Melissa Grego, an editor at the Hollywood Reporter, has moved to Broadcasting & Cable as executive editor. She handled the re-launch of THR’s website and was in charge of all its digital offerings.

Earlier, Grego was managing editor of Television Week, and wrote “Mel’s Diner,” a blog about dining out with some of the movers & shakers in the business.

She joins B&C on July 28, reporting to editor Ben Grossman.

KWITTKEN TAPPED BY U.S. NEWS

Kwittken & Co. is handling the overhaul of U.S. News & World Report as the No. 3 weekly revamps as a more service-oriented, information you can use-type publication.

Aaron Kwittken’s shop was initially hired by USN&WR in `07 on a project basis to promote its “America’s Best” series of lists covering topics such as cars, high schools, colleges, hospitals and civic leaders.

Brian Kelly, editor of USN&WR, is expanding K&C’s duties to cover its transformation from print to a multi-platform publisher.

The firm will coordinate efforts with the magazine’s in-house staff in support of the recently launched U.S. News Media Group and work to promote its editorial talent as experts in their respective fields.

K&C was founded in `05.

KELLY CO-ANCHORS ‘GOOD DAY NEW YORK’

Greg Kelly has signed on as co-anchor of “Good Day New York,” which airs on WNYW/Fox 5.

He had been a correspondent for Fox News since `02. Kelly was White House reporter for Fox News and was embedded with the Army’s 3rd Infantry during the `03 invasion of Iraq. He is credited with providing the first live shots of U.S. forces entering Baghdad, and exclusives of the storming of Saddam Hussein’s presidential palace.

The Marine Corps veteran flied nearly 160 missions during “Operation Southern Watch,” the U.N.-imposed “No-Fly Zone” over Iraq following the Gulf War.

Kelly teams with Jodi Applegate on GDNY.

USAT’S KECK TUNES INTO TVG

Will Keck has shifted from covering celebrity entertainment news at USA Today to TV Guide.

As senior editor in its Hollywood bureau, Keck will launch a weekly column about news, shows and stars. He also will do some feature writing and report from the red carpet.

Keck has filed stories for the Los Angeles Times, Entertainment Weekly, US Weekly and People. He also was an on-air contributor to the TVG’s program, “Hollywood 411.”

(Media news continued on next page)


Internet Edition, July 23, 2008, Page 4
   
MEDIA NEWS/CONTINUED
   

WSJ SLICES 50 EDIT JOBS

Wall Street Journal editor Robert Thomson is closing the paper’s South Brunswick, N.J., editing facility that opened shortly after the Sept. 11 attacks. The retrenchment is set for next month, costing 50 jobs.

Thomson’s memo says the revamp means that reporters and bureau chiefs must submit copy that is “clean, to length and conforms to our style.”

New Jersey staffers are encouraged to apply for editing jobs at the WSJ’s news hub in New York. Those with the “highest skill levels and the enthusiasm to acquire new skills will have a distinct advantage during the selection process.”

Thomson paints a rosy picture for the WSJ, which has “invested in a significantly larger newshole contrary to industry trends, and filled long-vacant reporting positions in many bureaus.”

The News Corp. property plans an “ambitious expansion” of web and international operations.

Thomson claims the Journal and Newswires expect to add 95 journalists over the coming months. “There is good reason for optimism at Dow Jones amidst the pessimism prevailing in our industry,” he wrote.

CLEAR CHANNEL’S HUDES JOINS IPG

Michael Hudes, who was global director of digital media for ClearChannel, has joined Interpublic Group to become president-diversified media services and strategic development at its Mediabrands collection of media assets.

Prior to CC, Hudes was president/COO at AdSpace Networks, which develops software to manage ads/promotions. He also headed Organic, the global digital marketing services outfit.

Hudes says his goal is to apply technology to create new tools, media channels and business models for IPG clients.

SNOW DIES AT 53

Tony Snow, former press secretary for President Bush, died July 12 of colon cancer. He was 53.

He joined the White House in April `06 after believing that he had beaten the disease. It reoccurred in March `07. He returned to the podium after surgery, but left the White House in September to raise more money to support his family.

Snow joined the Bush Administration from Fox News. He was a speechwriter for President Bush I. Snow had replaced Scott McClellan at the White House.

GUARDIAN BUYS AMERICAN CONTENT

The U.K.-based Guardian News & Media company has purchased ContentNext Media, which covers digital media, entertainment and technology sectors, for reportedly $30M.

Rafat Ali, founder and editor of CNM, and Nathan Richardson, will continue to run the company that has co-headquarters in Santa Monica and New York.

Carolyn McCall, CEO of Guardian Media Group, said Rafat and his team “personify the values of editorial independence and integrity that are core to the Guardian.”

ContentNext was founded in `02, receiving funding from Greycroft Partners. The Guardian website generated 18.3M unique visitors in May.

WEBB TAKES PROPUBLICA PR POST

Michael Webb, who was deputy director of communications & strategy at the Brennan Center for Justice at New York University’s School of Law, is now PR director for ProPublica, the non-profit newsroom the produces investigative pieces in the public interest.

He joined the Brennan Center in Jan. `07, after handling publicity and syndication for The Nation.

ProPublica editor-in-chief Paul Steiger, the Wall Street Journal alumnus, now oversees a news staff of 28 journalists.

The latest additions include Los Angeles Times veterans Charles Ornstein and Tracy Weber. They combined for the “The Troubles at King/Drew” hospital series that won a Pulitzer Prize for Public Service.

Other reporters to join are Tom Detzel, ex-editor at the Oregonian, Marcus Stern, Copley News Service veteran, and Mosi Secret, staff writer for the Independent Weekly in Raleigh/Durham.

AILES BECOMES PRESS MOGUL

Roger Ailes, chairman of Fox News, has purchased Putnam County News and Recorder, which has a circulation of about 3,000.

Elizabeth Ailes, Roger’s wife, is publisher of the paper, which is about 60 miles north of New York City. She worked at NBC and CNBC.

The Aileses said the paper reflects the community, and will not change much. They really liked PCN&R, which is why they bought it.

The Aileses are looking for a general manager to run the paper on a day-to-day basis. Brian O’Donnell, who has published the paper for the past dozen years, is staying on as a consultant.

OSBERG GOES DIGITAL

Greg Osberg, who assumed the president post at Newsweek last year, is giving up that post in the fall to pursue opportunities in the digital world.

He had been Newsweek’s worldwide publisher. The magazine, which is part of Washington Post Co., does not plan to replace Osberg.

Newsweek’s ad pages are down more than 20 percent for the first-half of `08.

VETERAN NEWSMAN COUNSELS LEACH

Charles Feldman, who was an investigative reporter at CNN, is now “of counsel” to Leach Communications.

He plans to offer businesses, trade groups and high-profile personalities a full-scale “forensic investigation simulation” to ensure they are fully prepared to deal with a crisis.

Al Leach notes that Feldman covered courtroom dramas revolving around O.J. Simpson, Michael Jackson and the bombing of Pan Am Flight 103 over Lockerbie, Scotland.

 
Internet Edition, July 23, 2008, Page 5
 
NEWS OF PR FIRMS
 

THE LIMITED TRIES ON PR AGAIN

The Limited Stores, the women’s clothing retailer sold to private equity firm Sun Capital Partners in 2007, has brought in its first PR firm in recent years after a search.

New York-based lifestyle firm Alison Brod PR has picked up the account to reconnect the mall-centric brand with its customers.

“Our main goal is to remind people why they love The Limited,” said Jennifer Bayley Guerra, PR manager for the company. She said TL, which had not recently worked with an outside firm, met with numerous agencies and credited ABPR with reflecting a “fun, sophisticated and professional aesthetic” of the brand.

Guerra said ABPR is handling long lead and buzz media, special events, product launches and celebrity outreach.

Jill Borkan, fashion director at ABPR, heads the account.

TL, based in Columbus, Ohio, has 226 mall locations in the U.S. In the past, when it was under the ownership of Limited Brands (Victoria’s Secret, Bath & Body Works), TL worked with Badger Worldwide.

U.K’S MULBERRY HITS THE WEST COAST

Mulberry Marketing Communications, London, is slated to open a San Francisco office in early September under the direction of Dan Brown, an MMC account director currently in London who is a native Californian.

The firm said it wants to improve its reach for U.S. media for its North American clients and further develop its tech PR practice with the outpost.

Clients for the office include Quantum Retail Technology and InsuranceMadeSimple.org.

The 13-year-old firm also has a Chicago office in the U.S.

SMG ACQUIRES LIVINGSTON SM SHOP

Social Media Group, a Toronto-based firm, has acquired Washington, D.C.-based Livingston Communications, a boutique firm focused on social media communications.

Geoff Livingston, who heads LC, said on his blog, “Basically, I will serve major accounts as a lead strategist, head the D.C. office, market the company and continue blogging at the Buzz Bin (which will get a resulting content upgrade). “In a list of the top 10 reasons he sold his agency, Livingston noted, “I can’t stand watching the large agencies of the world continue to guide large social media programs, often ineffectively.”

SMG says the acquisition makes it the largest independent social media shop in the world.

Qui Diaz, a former digital strategist at Ogilvy PR Worldwide, is director of strategy at LC. The firm has worked with dozens of blue chip companies and clients like the Washington Nationals, Verizon Wireless, and AT&T Government Solutions.

Maggie Fox, who heads SMG, said the addition of LC’s social PR practice makes her agency’s services rival every traditional agency’s SM practice.

A letter of intent was signed last week. The cash and stock deal is expected to close in August.

 
NEW ACCOUNTS
 

New York Area

Bullfrog & Baum, New York/Zwilling J.A. Henckels, cutlery maker, for media relations, strategy and consumer programming for three brands in the U.S. – Zwilling cutlery, Staub cast iron cookware, and Demeyere stainless steel cookware.

G.S. Schwartz & Co., New York/Duplicate (2007) Inc., online poker community, and Smart Talk Media, women’s live programming and subscription speakers series, for PR.

Geoffrey Weill Associates, New York/Algodon Mansion, luxury boutique hotel in Buenos Aires, and Algodon Wine Estates, real estate development in Argentina wine country, for PR.

KCSA Strategic Communications, New York/Kyp Systems, paper-based marketing tool developer, as AOR for PR. The tool, called iKyp, is designed to make information easier to understand and use and has been used by American Express and AstraZeneca, among others.

RF|Binder, New York/Gather, social network geared for adults, following a search that included several New York and Boston-based firms. RF is handling research, creative programming, writing and media relations. Gather was launched in 2004 for the 30-plus demographic.

Rubenstein PR, New York/StoneCastle Partners, investment manager in community banks, for PR touting its strategy and funds. Richard Rubenstein sees opportunities in the community banking sector amid the troubles of large investment banks and financial institutions.

Wordhampton, Riverhead, N.Y./Squadeco Premium Spring Water, for PR for its national launch this year, and Montauk Yacht Club, as AOR for PR amid a multimillion-dollar renovation and 80th anniversary celebration over the next two years.

East

Public Strategies Inc., Washington, D.C./Pilgrim’s Pride Corp., food marketer, for public and legislative affairs regarding federal fuel standards, commodity and farming price supports, and environmental law and regulation.

GolinHarris, Miami/Convenient Care Assn.; American Cancer Society, Florida Division; Jackson Memorial Foundation, for its philanthropic program, International Kids Fund, and the Alberta Cancer Board, a tobacco control and cessation advocate. The Miami office recently wrapped up a project for BBC Mundo, the BBC’s Spanish American online and radio service.

South

Red Square Agency, Mobile, Ala./Stewart Enterprises, funeral services giant, as AOR for advertising and PR following a search of 11 agencies. The publicly traded company is based in Jefferson, La, and claims to be the second largest company in its sector in the world.

West

Tsantes Consulting Group, Campbell, Calif./Samplify Systems, data compression start-up, for messaging, positioning and communications.

 
Internet Edition, July 23, 2008, Page 6
 
NEWS OF SERVICES
 

FEATURES SERVICES QUANTIFIES HITS

ARAnet, which places features in newspapers and on websites, some of which it owns, has unveiled a metric to assign advertising dollar value to articles posted online.

Scott Severson, president of the company, says he’s seen an increasing demand to quantify its service, which the new application, called Online Ad Value, does.

The service takes into account banner ad rates, word count, site audience metrics and other factors to rate placements. It is added on to its existing online reporting service for clients.

The Hopkins, Minn.-based company provides features on topics like home improvement, finance, and health to media. It also has its own group of websites that carry many of the ARA features.

PUBCLUB N.E. RINGS BELLS

Cone won the Publicity Club of New England’s Super Bell Award at its annual Bellringer Awards. Cone took home that top prize for a community service campaign with the American Heart Assn.

Steve & Paula Mae Schwartz, founders of Waltham, Mass.-based Schwartz Communications, were honored with the John J. Malloy Crystal Bell for lifetime achievement.

Among the Bell winners were Schneider Assocates and client ESAC/Boston 2010, which won for advocacy advertisement; Schwartz Comms. with ResMed/Respironics and Kelliher Samets Volk with Crane (online feature or commentary placement), and Schwartz with OkCupid and Racepoint with One Laptop per Child for TV news placement, national.

In the bylined article category, Bell winners were Racepoint Group with Helicos BioSciences; O’Neill and Associates with the Massachusetts Commission on Compulsive Gambling; PAN Communications with JANA Software, and Thomson Communications with Boston Private Bank. Winners list is at pubclub.org.

FOOD MARKETERS MISSING HEALTH PROS

Food makers are not communicating the health benefits of their brands to healthcare professionals, according to a survey by PULSE Health & Wellness Initiatives, a marketing firm that works with major food and health companies.

The firm polled 896 health pros to rate their perceptions of how well products and brands meet health needs and 60 percent said the companies don’t give enough information for consumers to make healthy choices.

Brands scoring well among the participants included natural food line Kashi, Fiber One Cereal and Bars from General Mills, and Kellogg’s All Bran.

Ninty-six percent of the healthcare pros surveyed said they recommend specific brands to patients.

PULSE co-founder and CEO Linda Leikin said marketers may be investing in mass media to increase consumer awareness but are missing a chance at earning a valuable endorsement of healthcare pros.

“Manufacturers need to educate healthcare professionals about the health benefits of their brands just as much as they need to educate consumers,” she said.

 
PEOPLE
 

Joined

Chris Winans, VP of media relations at American International Group, to AXA Equitable Life Insurance Co., New York, in the newly created post of senior VP, external affairs. He is slated to start on July 29 and will serve as chief spokesperson for the insurance company. A former equity analyst and journalist, he was a VP at Lehman Brothers and held a similar post at Williams Capital. He joined insurance rating agency A.M. Best Co. after serving as national news editor in a 10-year career at the Wall Street Journal.

Kathy Park, an M.B.A. candidate and former PR manager for the New York Times Company, to Harper’s Magazine, New York, as VP of PR. She was previously a publicist for CNN in New York.

Jim Cox, an editor, foreign correspondent and business reporter for 21 years at USA Today, to Agility Defense & Government Services, Alexandria, Va., as VP of public affairs. He heads PR, marketing and government relations for the supply chain management and logistics company for government and defense clients. It has offices in 100 countries. Cox was foreign editor at USAT from 2004 until January. He opened bureaus in Hong Kong and Beijing for the paper.

Paul Del Colle, previously with Anreder & Company and former UBS media relations specialist, to Walek & Associates, New York, as a senior A/E.

Mark Holoweiko, principal, co-founder and former president of Stony Point Communications, Hayslett, Mich., to HealthPlus of Michigan, as director of corporate communications. He remains corporate chair and shareholder of Stony Point. Anne Harcus takes over as president of Stony Point.

Ben Gardeen, A/E in Porter Novelli’s consumer, healthcare and sports marketing units, to Carmichael Lynch Spong, Minneapolis, as senior associate. He manages the Maytag Repairman account.

Promoted

Ana Varela to senior A/E, Spaulding Communications, Decatur, Ga. She is fluent in four languages and worked in media at CNN, FOX 5-WAGA, Discovery Channel and Animal Planet.

Natalie Stavale to A/C, Marx Layne & Company, Farmington Hills, Mich. She joined in 2003.

Barb Jones to senior VP and Brandy Radey to VP, Schenkein, Denver. Meredith Stevens has been upped to senior A/E and Zack Littlefield to A/E.

Patrick Horgan, former managing director of APCO Worldwide in China, has been named MD for the firm’s EMEA-Asia business. He had recently been based in Brussels for the firm but earlier headed its three China offices and lived and worked in China since 1989. Tech and telecom are his specialties.

Yvonne Koh, who headed public affairs and consumer teams at Hill & Knowlton Singapore, has been named leader for Manning Selvage & Lee’s Southeast Asia operations. That post includes Singapore, her base, Indonesia, Malaysia, the Philippines, Thailand and Vietnam.


Internet Edition, July 23, 2008, Page 7
 

PRS CandidateS Respond (Cont’d from 1)

Unfortunately the APR credential is not evenly distributed across districts. This poses a problem in securing an adequate number of qualified candidates from each district. This problem can be solved by making the APR credential less important or making geography less important. It is my belief that knowledge and motivation should be more important the geography. This does not mean that geography should be excluded, merely that it should be less important.

3. Have printed as well as online members’ directory? No. The costs of printing and mailing would far outweigh the benefits to the small number of people who want a printed directory. Our resources are better spent improving the on-line services for members.

4. Move charter to Delaware which allows electronic meetings? Face-to-face meetings provide a much richer communication environment than the linear and time consuming electronic meeting environment. Electronic meetings work well for small groups who know each other well. This is not the case for the large PRSA Assembly. Building community and increased opportunities for participation are important factors that might be lost if we switched to electronic meetings.

There would also be substantial costs involved in creating the electronic infrastructure for meetings. PRSA does not currently have such structures in place. This is in addition to the other additional expenses identified by O’Dwyer. We already have electronic meetings, such as leadership phone calls. However our deliberative body, like AICPA, can not vote electronically.

5. Remove three-year limit on Assembly service? There is not a three year limit on Assembly service. The limit concerns consecutive terms of service. I, for example, over a period of approximately 20 years served as assembly delegate 9 times without violating the consecutive term rule. Generally between 60% and 70% of assembly delegates each year have prior assembly experience. Having fresh faces and new voices in the Assembly is important. The mix of experience and new points of view is good.

6. Copy governance of ABA, AMA, AICPA (delegates set policy for board)? Serving on the by-laws re-write committee, I participated in a wide ranging comparative study of other association’s practices. If anyone would review the agendas of assemblies of the ABA, AMA, and AICPA they would discover that their focus is on regulating their professions rather than overseeing the day to day work of the professional staff of the associations. Their decisions generally focus on issues of professional practice and public policy. They also meet twice a year for a least two days per meeting. Since most chapters do not cover the entire costs of participating in the assembly, I think it would be difficult to find support for more and longer meetings.

Involving the assembly in governing the profession is a good idea. This would mean more time focusing on issues of ethics and practice policies and less time on the wording of by-law amendments. To do this within our current meeting time frame will require some changes in what the assembly does.

7. Report conference costs accurately; defer dues income (like ABA, AMA, etc.)? Based on my knowledge of staff, how they spend time, and financial reports from professional staff, I believe that we do report conference costs accurately. Less than 50% of revenues comes from membership dues. We could not sustain the organization if we lost a million dollars a year from the conference.

PRSA does defer a portion of dues income like ABA and AMA. We are required by law to defer those portions of income which reflect real commitments of services over time (Subscriptions, for example). There is no accounting standard that mandates deferring 50% of dues. Both ABA and AMA are much larger organizations than PRSA and have more resources. Deferring more income than is required by law poses fewer problems for those organizations because of their resource base. PRSA complies with the law and this realistic decision actually increases the long term financial stability of the organization.

8. Provide Assembly transcripts as was previous practice? Having attended as many assemblies as I have, my first response is to question the sanity of anyone interested in reading such a transcript. On the other hand, this is also a cost benefit issue with respect to members and requests for such transcripts. The benefit was provided for a limited period of time, 3 years. Given the costs and level of demand the service is no longer provided.

9. Tighten bylaws to block return of directors as officers? There are two important questions relevant to this issue. The first is do previous directors make bad officers. I believe the answer to this question is no. The second is does increasing competition for office decrease interest in seeking leadership roles. Again I think the answer is no.

10. Pass bylaw barring proxy votes? Allowing proxy votes did not negatively impact on participation in the 2007 Assembly. If we had meetings of few people casting many votes it would be a problem. Passing bylaws requires a 2/3 majority vote.

11. Open Society website to greater participation by members and press? Limiting participation in e-groups actually decreases the occurrence of irrelevant communication (spam) and increases the value for participants. E-groups are a membership benefit. If any member wishes to discuss an issue they have a variety of ways of engaging with other members and leadership.

12. Have enforceable Code of Ethics (like U.K. and German PR groups)? The claim that German and UK groups have an enforceable code of ethics is questionable. The German code for example only allows censure. No one may be removed from membership in a professional organization, prohibited from joining a professional organization, or engaging in the practice of public relations as a result of unethical behavior. In the UK, like it used to be in PRSA, the code of ethics may only be applied to members and option of resigning membership makes the code unenforceable. PRSA’s aspirational code and policies of speaking out about ethical situations through our advocacy program has much more potential for advancing the profession than the old system of enforcement.

13. Remove bar to O’Dwyer ads in Society publications or O’Dwyer staffer joining Society? Anyone practicing public relations should be allowed to join PRSA. There is no guaranteed right to advertise. Without knowing the specifics of the advertisements in question, this question is not answerable.

CANDIDATE VALLBONA RESPONDS

Marisa Vallbona, president of CIM Incorporated, La Jolla, Calif., chair of the Universal Accreditation Board in 2007 and a candidate for director of the PR Society representing the Western district (running against Donald Kirchoffner), has provided the following answers to questions posed to her and other candidates by odwyerpr.com.

1. Should directors sign a "confidentiality" agreement at first meeting? I'm willing to sign a confidentiality agreement if it's asked of me.

2. Remove APR requirement for national board, nominating committee? I have always wanted national leaders to hold the APR because I wanted them to exemplify drive, commitment and dedication to the profession and PRSA. For me, APR is a symbol of that commitment. There are highly qualified leaders and practitioners who don't hold the APR.

As we've seen during this campaign, PRSA has had challenges finding leaders from various districts. In districts without candidates, I believe it would be appropriate to open the field to non-APRs. If the Assembly votes to decouple, I will follow its wishes.

It doesn't matter that I was the Universal Accreditation Board chair or that I am APR.

3. Have printed as well as online members' directory? I have found the online information provided to be very efficient and user friendly. In today's economy and in the effort to remain environmentally friendly, I think it would be terribly irresponsible to print a directory.

4. Move charter to Delaware which allows electronic meetings? I think this is a good idea in the case of emergency meetings when the board and/or Assembly can't gather for a meeting in person.

5. Remove three-year limit on Assembly service? For many chapters with challenges finding delegates, removing the three-year limit is a very good idea. Job responsibilities and family obligations eliminate too many qualified delegates.

6. Copy governance of ABA, AMA, AICPA (delegates set policy for board)? Our profession has long sought to be on par with others in terms of how we're viewed. I don't know enough about how the PRSA board is run because I haven't sat on it so I can't speak to whether governance should be changed or not.

However, I have served as an Assembly Delegate for the San Diego chapter two terms (of six years) and believe that the Assembly does have a voice and is heard.

If the Assembly feels it's important to copy governance of the ABA, AMA and AICPA, delegates can propose it and make it happen.

I currently sit on the Volunteer Leadership Development Task Force, born from the 2007 Assembly. The national board of directors fully supports the group. The Assembly does have power. I have seen first-hand how it works.

If the Assembly wants something to happen, it can gather a group, build solid consensus, present a valid case, and get the majority to vote on it.

7. Report conference costs accurately; defer dues income (like ABA, AMA, etc.)? Of course, all costs should always be reported accurately. Transparency is crucial!

8. Provide Assembly transcripts as was previous practice? I'm not sure why PRSA doesn't provide Assembly transcripts, so without knowing the reason, I can't answer to this.

9. Tighten bylaws to block return of directors as officers? I disagree with this because there are some directors who are extremely valuable to the board and provide energy, insight and contribute a great deal to PRSA. It would be a shame to lose them because of a bylaw.

10. Pass bylaw barring proxy votes?

11. Open Society website to greater participation by members and press?

12. Have enforceable Code of Ethics (like U.K. and German PR groups)? Several years ago, PRSA held focus groups at one of its international conferences to study how we can improve the Code of Ethics and make it enforceable. The result of the focus groups is the current Code of Ethics. Members spoke up and said they wanted a less detailed Code of Ethics and that's what PRSA delivered to them.

For decades, PRSA struggled with the fact that our Code is difficult to enforce.

One could argue that a less enforceable Code defeats the purpose of having a Code. As Ethics Officer for the San Diego Chapter for several years, I encountered a difficult situation involving a colleague who complied as soon as I pointed out the ethics violation.

As long as chapters stay on top of the Code, keep an involved Ethics Officer and encourage their members to tap that Officer for advice and guidance, ethics violations should be kept to a minimum.

13. Remove bar to O'Dwyer ads in Society publications or O'Dwyer staffer joining Society? Each organization reserves the right to decline ads from advertisers, decline income, and refuse membership from individuals. Refusing the ads and membership doesn't necessarily make it right, and I know Jack O'Dwyer and the O'Dwyer staff are being treated unfairly.

I'm certain PRSA has its reasons for the decisions just as Jack O'Dwyer has his reasons for the decisions he makes with respect to what he publishes. There are two sides to every story.

Without having been an active participant in what causes the decisions by the Society, it would be irresponsible of me to give an opinion.


Internet Edition, July 23, 2008, Page 8

    

PR OPINION/ITEMS

 

Four of the 22 candidates for the PR Society national board have expressed their opinions on 13 issues facing PRS (page 7 for the latest two) and several others have promised to do so.

It’s not a great turnout but useful. For one thing, it breaks the “wall of silence” the Society tries to erect against us. An information society depends on “dialogue, discourse and debate,” says Horst Avenarius, chair of the German Council for PR. Americans should not have to take lessons in PR from another country.

Based on these early returns, candidates are showing little sentiment for removing the APR rule for national office.

Candidate Don Kirchoffner is for dropping the rule but the other three (Vincent Hazelton, Marisa Vallbona and Gary McCormick) would either leave the decision to the Assembly or reduce the ten districts, thus lessening the role of “geography” in determining who can be on the national board.

On the second most important issue before leadership, the possible return of the printed directory of members, all four are against it. They either say that online is more up-to-date and just as good as the printed directory, or that the printed directory is just too costly to produce.

We’re still heartbroken over the loss of the directory because it was such a great research tool for us. It allowed us to compare one year with another, for instance, and do lots of other research that is impossible with the online directory. Looking up members was quick and easy. About 5,000 names are lost forever each year as members fail to renew. Besides member listings, there were also 200 pages of other useful materials. O’Dwyer staffers and all reporters are barred from joining PRS or accessing the member database so we can’t even use online. We have to ask members to look up items for us. In contrast, a more liberal-leaning Society in 2003 gave out 150 copies to the press as a goodwill gesture.

The directory, a publication of 50 years standing, was killed in the dark of night. There was no trial, no weighing of evidence, just an execution and no wake or funeral. No discussion was allowed on the PRS website, Tactics & Strategist, nor in the Assembly.

To plug this gap, the O’Dwyer Co. is offering prizes of $500 each for two essays, one that argues the best for return of the directory and one that argues for online-only. The 500-word essays (one NL column) will be carried in this NL and on odwyerpr.com and must be signed. Deadline: Aug. 8.

Contestants who don’t have access to this site will be given temporary codes. They also need codes to the PRS site.

The key question of affordability needs to be addressed against the fact that PRS has about $4.9 million in cash on hand and that it describes its financial situation as satisfactory. We can send the full audit to anyone who wishes it. Travel/meals/hotels spending was $571,062 in 2007, second highest ever. The 2007 national conference is said to have made a profit of $569,901. Staff costs on the conference are reported as $240,039 or 4.67% of total staff costs of $5,135,245.

An odwyerpr.com poll on this issue found respondents voting nearly 6-1 in favor of bringing back the directory and dropping the annual conference. Almost every PRS leader we talk to favors online-only while almost every rank-and-file member wants the directory back.

Gil Schwartz of the CBS PR staff has attacked CBS-TV’s Andrew Cohen for critical comments Cohen made about PR in response to PRS CEO Jeff Julin saying that PR pros have a code that forbids anything but the “highest standards of accuracy and truth.” Cohen said this was like the “Burglars Assn.” having a code against stealing. Schwartz says that PR pros, “in general, only lie when we are lied to by our clients.

These are what may be referred to as ‘secondary lies,’ which are far less odious, I believe than the primary lies told by the really big prevaricators-- hedge fund brokers, allegedly of course; journalists in pursuit of a story; show business agents, and other lawyers and politicians, plus realtors.” We don’t think the PR biz can accept lies being told on a “secondary basis” even as a matter of whimsy…the 5 p.m., Friday July 18 deadline for candidates for the board of PRS from Tri-State passed without any showing up on the PRS website. The current rep, Francis Onofrio of Bethany, Conn., has yet to address his district. Members say that when they ask him a question, he refers them to CEO Jeff Julin as the “only spokesperson”…failure of anyone to show up from New York is evidence of a “red state/blue state” political divide at PRS—conservatives vs. liberals. The blue staters don’t want anything to do with the red staters who dominate PRS. Blue staters who have been on the board feel they have been treated as pariahs. They also don’t agree with the red state policies…PR profs are angry at the $700 “early bird” fee for the conference in Detroit Oct. 25-28, saying it’s 70% higher than two years ago and 100% higher than three years ago. It doesn’t include the opening night party, any meals or any networking events. Educators Academy says the fees seem “meant to further drive us from the organization.” This is an odd claim since nine educators are seeking national office this year (7/16 NL)…PRS candidates need to have the wording of the “confidentiality” agreement they will be forced to sign should they get elected to the board. The wording should be public record. New directors will be giving up their right of free speech…former directors say that 15-20 hours a week is required for the PRS board and not the 4-5 hours described in a leadership teleconference earlier this year…highly suspicious is PRS switching from “Big Four” CPA firms such as Ernst & Young and Deloitte & Touche to small firms such as Sobel & Co. and PKF (currently). Sources say D&T quit in 1999 because it disagreed with the PRS presentation of its numbers.

--Jack O'Dwyer


 

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