U.S. PLANS PR PUSH TO TOUT PAKISTANI AID

The U.S. Government is considering proposals from PR and advertising agencies to tout its assistance to Pakistan doled out through the USAID program.

Uncle Sam wants a firm to create and implement a 30-day public awareness push in Pakistan particularly aimed at influential Pakistanis and community leaders.

Documents outlining the project note that a September 2007 survey indicated 86 percent of urban Pakistanis say it’s a U.S. goal to “weaken and divide the Islamic world” and well more than half (64%) doubted the U.S. could be trusted to “act responsibly in this world.”

USAID says those views are growing.

Pakistan’s new prime minister is traveling to Washington this week to meet with President Bush, a powwow viewed by some as an attempt, in part, to diffuse tensions after an American airstrike in June killed 11 Pakistani paramilitaries.

Anticipated funding for the month-long PR effort is $600K and U.S. and Pakistani PR agencies were invited to pitch for the project.

POPEYES PICKS COOPERKATZ

CooperKatz & Co. beat Allison & Partners and Stanton Crenshaw Communications for a six-month PR contract from Popeyes Chicken & Biscuits, according to Alicia Thompson, VP-PR at the nearly 1,900-member chain.

She said CK&C was selected for its ability to “hone in on the brand needs” of the No. 2 chicken chain behind KFC, a unit of Yum Brands.

Thompson said Popeyes wants to attract young males whose fast-food experience skews to “boneless chicken products.”

Popeyes has a “bone & chicken” heritage that is supported by a “slightly older multi-ethnic demographic.”

The chain does plan new products based on three platforms of “portability, value and filling the lunch day-part,” said Thompson.

Burson-Marsteller slates a $6.5M campaign to educate New Yorkers about new voting machines under the Help America Vote Act.

The New York City Board of Elections is currently using the theme Vote. Or Liberty is History.” slogan to encourage turnout.

The Board of Elections has come under fire from New York Mayor Mike Bloomberg for wasteful spending.

APCO’S FULLER FLIES TO AOPA

Craig Fuller, executive VP at APCO Worldwide and co-chair of its international advisory council, becomes president of the Aircraft Owners and Pilots Assn. in January. He succeeds Phil Boyer, who is retiring.

Fuller served in the White House of Presidents Reagan (assistant for cabinet affairs) and Bush I (chief of staff).

He was president of Hill & Knowlton’s worldwide PA unit and senior VP/corporate affairs at Philip Morris.

In `95, Fuller chaired the presidential campaign of California’s Pete Wilson and then moved to Korn/Ferry International and National Assn. of Chain Drug Stores.

AOPA represents more than 400K pilots, and is a leading proponent of airport safety.

The Frederick, MD-based group has partnered with the Transportation Security Administration to develop Airport Watch, which uses pilots as the “eyes and ears” for observing and reporting suspected terror activity.

Fuller owns his own Beech aircraft.

WEINER HEADS PRIME USA

Mark Weiner, who earlier this year stepped down as Ketchum’s senior VP-global research director after an eight-month stint, is now North America CEO of Germany’s PRIME Research.

That PR research outfit has more than 600 analysts throughout the world, including 40 in this country.

PRIME founder Rainer Mathes lauded Weiner for his “reputation for innovation” and “thought leadership.”

The Connecticut-based Weiner (203/414-8482) will coordinate his activities with Derek Tronsgard, who launched PRIME’s U.S. operation in Ann Arbor, Mich.

Prior to Ketchum, Weiner served as president of Delahaye, which is now part of Cision.

He founded Medialink PR Research in `94, an entity that acquired The Delahaye Group five years later and took on the Delahaye name.

APPELBAUM BACKS DECOUPLING APR

Lynn Appelbaum, candidate for the Tri-State district of the PR Society, in response to questions from this NL, said she believes that members should “NOT” have to be accredited to serve in leadership.

Appelbaum, a PR professor at City College of New York and member of PRS/New York, echoed a belief that has long been expressed by leaders of that chapter.

The nominating committee meets next weekend (Aug. 1-3) in Chicago. Results will be given Tuesday, Aug. 5.

(Continued on page 7)

STARBUCKS CASTS WIDE PR NET

Starbucks is relying on a multi-agency communications support team as the global coffeehouse brand implements a massive store-closing and transition plan in the U.S.

Agency of record Edelman is providing national PR support for the company and acting as the lead for local media coverage with support by seven other PR firms in the U.S.

Edelman’s Seattle, Portland, San Francisco, Los Angeles, Dallas, Austin, Atlanta and New York offices are all engaged to work with local media for Starbucks.

“We are a global brand but we try to be locally relevant,” said Bridget Baker, communications program manager at Starbucks. “We understand that from a media perspective and from a local relevancy perspective, we need people who are there, who can be a voice and do that local work for us.”

Starbucks is drawing widespread media coverage on the national and local level since its July 1 announcement that it would close about 600 underperforming stores in the U.S. and slow its opening of new stores in 2009. That came on top of an earlier plan to shutter 100 locations. Coverage has ranged from straight-up business pieces to in-depth looks at the coffeehouses’ place in American culture and petition drives to save particular stores.

In addition to Edelman, Baker said Starbucks is relying on a PR roster that currently includes The Frause Group (Seattle), The Limtiaco Company (Honolulu), Eiseman PR (Chicago) Airfoil PR (Detroit), Cone (Boston), Brotman Winter Fried Communications (Falls Church, Va.), and rbb PR (Coral Gables, Fla.).

“Corporate communications talks about our stores in general, while the agencies talk about ‘the’ store in a specific locale,” she said. “We centralize through Edelman. But what might happen in Chicago is not happening in a vacuum. It’s all part of what we’re doing nationally and globally.” [This NL’s initial query to Starbucks’ press department was returned by Edelman.]

Baker added that Grey Worldwide handles PR in Canada for the company and has been getting questions about the store closings, as well, although none are occurring north of the border.

“We couldn’t be doing this without them all by our side,” she said.

B-M’S HUGHES TO OLYMPICS

President Bush has named Karen Hughes, Burson-Marsteller’s freshly minted vice chair, as a member of this country’s official delegation for the closing ceremony of the Beijing Olympics.

The former propaganda czar and White House counselor will join the seven-member team that is headed by Secretary of State Condi Rice.

Other members include Peter Ueberroth, former head of the U.S. Olympic Committee, Michelle Kwan, figure skater, Elaine Chao, Secretary of Labor, Mike Leavitt, Secretary of Health and Human Services, and Clark Randt, U.S. Ambassador to China.

Hill and Knowlton, a B-M sister company at WPP Group, handles the Olympics.

OHIO EYES PR TO CUT OBESITY

Ohio, where 27 percent of the population is considered obese by federal standards, is turning to PR as part of a multifaceted push to slim down its citizens.

The state has issued an RFP for a $250K social marketing push to highlight the crisis of overweight children in Ohio and educate all ages on steps to take to prevent and reduce obesity.

The campaign is being billed as part of Gov. Ted Strickland’s healthcare reform initiative. Obesity is a particular problem for children in the Buckeye State as one in three of Ohio’s third graders is considered overweight or obese.

The RFP calls for a research study on exiting efforts, focus groups, development and implementation of a strategic communications plan on a six-month contract starting in September. The state wants a firm with public-sector experience that is web savvy and has experience reaching consumers with grassroots programs and PSAs. The state has a media buyer under contract.

Proposals are due by Aug. 8. The RFP is available here at http://procure.ohio.gov/proc/viewProcOpps.asp?oppID=6261.

Similar efforts could follow from other states as the Centers for Disease Control has set a goal to cut the percentage of obese adults to 15 percent in the states. By comparison, Ohio’s rate hovers between 20 and 24 percent. Southern states post the worst rates often exceeding 30 percent.

HORN ESTABLISHES DIGITAL GROUP

The Horn Group has formalized its digital media practice under east coast managing director Ben Billingsley.

CEO Sabrina Horn credited Billingsley, who joined the company from CooperKatz & Co. in `06, for a raft of New York digital wins.

That new business includes Pontiflex (first lead generation marketplace), WebCollage (content exchange services), adap.tv (open and universal video ad platform), Move Networks (technology provider for high-definition online TV), Buddy Media (social media) and Brand.net (network for brand advertising).

The practice also includes Adify, which was acquired by Cox Enterprises last month, Clickable and Right Media.

Horn, who once represented PeopleSoft, believes the new practice will attract big corporate clients that are looking for interactive services, “flawless execution, creativity, social media savvy and the ability to turn on the dime.”

She told O’Dwyer’s the shop has recruited a new CFO, Michael Polley, to handle the next wave of growth.

He was financial chief at McCann-Erickson’s MRM Worldwide, and previously worked at Nortel Networks, Standard New York and American Document Management Group.

Horn is looking to add a VP, account supervisor and A/E to its 17-member New York office.

The firm, which reported $8.2M in `07 fees, expects to hit the $9.5M mark this year. Her current goal is to get the shop in the $15M to $18M fee range.

JERRY WALKER, 72, EX-O’DWYER EDITOR

Jerry Walker, 72, senior editor of O’Dwyer’s for 18 years, died instantly July 19 at his home in Bluffton, S.C., after a heart attack. He retired in 2005.

Walker, who had lived in New Jersey, enjoyed retirement and the warm year-round southern weather.

He kept busy playing softball and working two nights a-week at a Publix supermarket for pocket money and a chance to meet other people.

An "NBC Nightly News" crew covered one of Walker’s games in a segment on how Baby Boomers are spending their retirement years. A producer approached Walker for an interview, but changed her mind after he told her his age.

A reporter from the Island Packet suggested that Walker apply for a job there, but he said he was done with “newspapering.”

Walker recently attended the 50th class reunion at Spring Hill College in Mobile, Ala. and planned to visit his youngest daughter, Betsy, in Oregon next month.

Before joining O’Dwyer’s, he was a reporter and managing editor at Editor & Publisher for 19 years.

Walker served as an investigative reporter and media editor of O’Dwyer’s, conducting a monthly media advice column in O’Dwyer’s PR Report magazine.

He was responsible for many major stories over the years including the discovery in voluminous reports on the Iran/Contra scandal that five PR people had spent a day with Treasury Secretary and head of the Central Intelligence Agency Bill Casey, giving Casey advice on how to raise funds for supporting the Contras, a revolutionary group in Nicaragua.

Walker monitored dozens of news media daily in search of stories with PR angles.

His father, Jerry Walker Sr., was editor of E&P for many years.

After graduating from Spring Hill, a Jesuit school, he served more than four years in the U.S. Army, rising to lieutenant. One of his postings was in Germany, where he was chauffeured by Elvis Presley.

After leaving the service, he started his journalism career with the New Rochelle Standard Star.

Walker summarized his approach to journalism by reciting the Army battle cry: “Hi diddle diddle, up the middle.”

“He had a keen eye for unusual angles on a story and an instinct for going for the jugular,” said Jack O’Dwyer.

“Journalism lost one of its most enthusiastic practitioners when he retired,” said O’Dwyer.

Survivors include his wife, Sarah, and six children – Mark, Mary Virginia McCabe, Jeri Ann Bourke, Cynthia, Timothy and Betsy.

NYT SUFFERS 82% DROP IN NET

The New York Times Co. reported last week that second-quarter net income plummeted 82 percent to $21.1M on a six percent decline in revenues to $741M. Ad revenues dipped 11.8 percent, while circulation revenues were up 2.5 percent.

CEO Janet Robinson blames the “U.S. economic slowdown and secular forces playing across the media industry” as reasons for the dreary results.

Robinson says the effects of the “deepening economic slowdown, particularly in categories sensitive to the price of oil — airlines, hotels and autos — will continue for some time.”

The media combine is dealing with these challenging times by launching new print and online products, building its R&D capability, driving down costs and rebalancing its portfolio of businesses, according to Robinson’s statement.

Robinson says the company has accelerated its cost-cutting drive. It beat the goal of cutting '08 costs by $130M. The company plans a total of $230 in cost savings by the end of next year.

The NYTC reports Internet revenues grew 12.8 percent to $91.3M. Ad revenues jumped 18.3 percent to $80.5M. The price of the flagship N.Y. Times paper will rise 25 cents to $1.50 on August 18.

GUARDIAN SNAGS WAPO VET

Guardian News & Media has hired Caroline Little, former CEO of the Washington Post’s digital unit as special advisor to plot expansion in the U.S.

Tim Brooks, GNM managing director, called Little an “experienced operator” who understands and shares the values that drive our business.

The GNM mission is “centered on truly independent journalism,” said Brooks in a statement.

Little joined the Washington Post/Newsweek interactive unit in `97.

She was named COO of the unit in `00 and president in `03.

YAHOO SETTLES WITH ICAHN

Yahoo has sidestepped a messy proxy fight by inviting activist investor Carl Icahn and two of his associates to sit on its board of directors.

Jonathan Miller, former CEO of AOL and current partner in Velocity Interactive, is one of Icahn’s allies who will join him on the board.

Yahoo will select another from a list of eight choices selected by Icahn.

Yahoo CEO Jerry Yang says the agreement “puts the distraction of a proxy contest behind us.”

It will allow management to pursue a goal of making Yahoo a “starting point for Internet users and a ‘must buy’ for advertisers,” he said in a statement.

Icahn called the settlement an opportunity to work with Yahoo management to achieve the full potential of the company. He still feels the sale of the company or the sale of its search engine is the “right transaction.”

Icahn is also happy that any “meaningful transaction” forged by Yang’s management team must be fully discussed with the board before any final decision is made.

Meredith Corp. said it will relaunch Espera, a magazine for expectant mothers, and 12 Meses, focused on the first 12 months of life, under the Ser Padres brand. The titles become Ser Padres Espera and Ser Padres Bebe.

(Media news continued on next page)

LANGHOFF TAPPED BY OTTAWAY

Andrew Langhoff, senior VP of Dow Jones & Co.’s Ottaway Group, has been upped to CEO. He takes over for John Wilcox, who is retiring.

The OG has “profitable papers in strong markets,” according to Les Hinton, who is CEO of DJ&C, part of News Corp.

Langhoff joined Ottaway in `03 as general counsel and executive responsible for Internet activities. He worked at Walt Disney’s digital operations earlier.

Wilcox called Ottaway, which he joined in `79, “the little company that could.” Ottaway publishes eight dailies and 15 weekly newspapers.

SCHMIDT NAMED IHT EDITOR

Bill Schmidt, assistant managing director at the New York Times, has been named editor, global editions of the International Herald Tribune. He will head for Paris before the end of the year to assume the post.

Schmidt joined the Times in `81. He has reported from Moscow, London, Chicago, Miami and Atlanta. He became deputy national director in `95 and senior manager of the newsroom in`97.

Schmidt replaces Martin Gottlieb, who returns to New York to further integrate the NYT and IHT, which is printed at 35 sites across the globe.

S.D. UNION-TRIB UP FOR SALE

Copley Press has placed the San Diego Union-Tribune on the auction block and has hired Evercore Partners to “explore strategic options for the company’s future including a potential sale.”

Harold Fuson, CP executive VP, says the real estate-dependent San Diego market has been pretty difficult for the paper. CP is confident business will rebound, “but the uncertainties pose too great a risk to sit still,” said Fuson in a statement.

Fuson noted that the U-T combined newspaper and web readership is very strong and an “indispensable resource for advertisers.”

The paper is the 21st largest in the U.S. with circulation that tops 300K on weekdays and 350K on Sundays. Its website attracts more than 3M unique visitors each month.

The paper also publishes Enlace, a Spanish language weekly, and Today’s Local News, a free daily.

WAPO MAKES MIAMI MOVE

The Washington Post Co. is buying NBC Universal’s WTVJ station in Miami to give the company a one-two punch in south Florida. WTVJ was the Sunshine State’s first TV station.

The purchase is Post-Newsweek’s first since `94, and gives the six-station group a duopoly in Miami. P-N owns WPGL, an ABC affiliate.

The FCC allows ownership of two stations in major cities as long as the market is well-represented on the TV dial. Half the Miami market is currently owned by Spanish-language stations.

P-N expects to reduce overhead following FCC anticipated approval of the deal.

CLARITY LAUNCHES SUNDAY EXAMINER

Clarity Media Group, a publishing company set up by billionaire financier Philip Frederick Anschutz, a prominent supporter of conservative causes, has launched a free Sunday edition of the Washington DC Examiner newspaper to replace a previous Saturday edition. About 255K copies of the Washington DC Examiner were first delivered on July 13 in the DC area, including Virginia and Maryland.

Ryan McKibben, CEO of Clarity, said readers and advertisers preferred a Sunday edition over the Saturday version.

A new opinion feature was added to the paper – “10 brightest ideas of the week” and “10 worst ideas of the week.”

Clarity, which also publishes Examiner papers in Baltimore and San Francisco, describes the paper as a “gutsy, opinionated and fearless newspaper.”

Shirley & Banister Public Affairs is handling PR for the new edition.

COMPETITORS, PRESS AXED ‘THE BEAR’

The fall of Bear Stearns, whose stock went from $170 to $2, was caused in large part “by rumor and innuendo that, as best one can tell, had little basis in fact,” writes Brian ("Barbarians at the Gate") Burrough in the August Vanity Fair.

Competing Wall Street houses, perhaps still angered that Bear opted out of the syndicate that rescued Long-Term Capital Mgmt. in 1998, would not come to Bear’s aid and in fact greased the skids for its demise, says Burrough.

Cheering the execution on were the “children” at CNBC who spread false rumors about the company’s liquidity.

CNBC’s David Faber is especially faulted for floating the false “bombshell” report that a trade with Bear was being held up because of concerns about its “health.”

Only later did Faber report the trade went through.

Bear PR person Russell Sherman fought the rumors but told Bear execs he couldn’t find any CNBC executive who was in charge of correspondents Faber, Larry Kudlow, Maria Bartiromo and Charles Gasparino.

“At CNBC, there is simply no adult supervision,” an unnamed Bear exec told Burrough. The writer theorizes that short-sellers may have driven down the price although he says it’s a “difficult theory to prove.”

An unnamed Wall Street source is quoted as saying Bear did not have a liquidity problem but a loss of confidence problem “spurred on by rumors fueled by people who had an interest in the fall of Bear.”

The “proudly independent” company had a “cutthroat culture” that was run “less as a modern corporation than as a series of squabbling fiefdoms,” says Burrough. Bear refused to join the syndicate that bailed out Long-Term Capital Mgmt. of Greenwich, Conn., whose collapse raised fears of a global financial disaster.

J.P. Morgan Chase came to the rescue of Bear which has now “effectively disappeared into the maw” of the bank.

Employers of Gen “Y” or the “Millennials” are getting a lot of advice these days from experts of various stripes (page 7).

Let them have “fun” and be “independent” but don’t criticize them too much because they grew up as “pals” of their parents who treated them as something “special,” goes the advice.

They’ll work hard, given the right environment (which they like to be fast and action-packed) but don’t expect too much loyalty, employers are also told.

We checked back with what an expert told the Counselors Academy of the PR Society in 1994 about “Gen X” (who were also known as “Slackers” (polite for “spoiled brats”).

For the record, there are 76 million “Millennials” (born after 1977) and 41 million “Xers” (born between 1965-77). Fading from the picture are the “Baby Boomers” (78 million born between 1946 and the early 1960s).

Both Gen X and Y like anything high-tech.

The analyses of both groups ignore some important facts—the elephant-in-the-room syndrome.

For PR purposes, Gen Y is handicapped by lack of a good general education. Very few even read their daily newspapers. Archetypal Gen Y members are the “Jaywalkers” that Jay Leno interviews for “The Tonight Show.” Questions such as “Who is the Vice President?” regularly stump them.

PR firm presidents tell us that recent college grads “have a hard time putting a group of words together in a meaningful way.” The digital world they grew up in is at odds with reading, according to the Center for Reading and Language Research at Tufts University.

Many of Gen Y are saddled with college tuition debts averaging $20,000 and health insurance costs of $5,000 yearly and more (unless they get employers to pay for this).

Gen Xers, an executive of Yankelovich Partners told the Counselors Academy, were depressed about their futures, having little hope of owning a home.

Some no doubt were surprised to find they could buy a home with only 1% down although it carried an “ARM” (adjustable rate mortgage). The piper is being paid for this now.

Also on the program at the 1994 Counselors Academy was adman Joey Reiman of Atlanta who instead of analyzing Xers socked it to them. A “slacker” wouldn’t last five minutes at Reiman’s agency.

Reiman, the most popular speaker at the meeting, drew gales of laughter and applause from the audience. He said he tells his employees that if they’re not “fired with enthusiasm,” they’ll be “fired with enthusiasm.”

Ad/PR people have to be in a “passion” rather than a “profession,” he said. He urged PR people to think positive thoughts only.

If someone on the elevator starts talking bad, such as saying, “‘It’s Thursday, only one more day,’ get off the elevator even if it’s not your floor,” advised Reiman.

Other sayings were: “You cannot compete against someone who has passion,” and “Thoughts become actions, which become habits, which become character, and character is destiny.” He urged “tight self control” as opposed to “indulging one’s self.”

The nominating committee of the PR Society will make its selections this weekend (Aug. 1-3) and announce them next Tuesday. This is a matter of importance to the PR industry because PRS claims not only to lead its members but the entire profession. Whenever PR hits the news, the PRS CEO rushes out and makes comments in behalf of the industry, often chastising whomever for not following the PRS Code of Ethics (which PRS itself does not follow). Various policies and actions of PRS have driven all but one major corporation (Eastman Kodak) from the 17-member board. Christopher Veronda of Kodak leaves this year.

Hurt by the criticism that it has been taken over by solo practitioners who lack national stature, the Society has gone all-out this year to attract members who work for blue-chips. It has found two, Michelle Mermelstein, PR manager of Sprint Nextel ($40 billion in revenues), and Gail Liebl, director of corporate communications of Travelers ($26 billion).

We wonder if CEOs (Daniel Hesse of Sprint and Jay Fishman of Travelers) would approve of the Society’s refusal to compensate authors for the $200,000+ it made selling their articles without their permission. The Assembly had passed a resolution directing the board to discuss this with the delegates but the resolution was ignored. Beth Caseman of the PRS law firm of Venable, has repeatedly told the Assembly that under New York law it cannot direct the board to do anything. This is one more reason for shifting the charter to Delaware. We also doubt that approval of PRS policies would come from Modesto Maidique, president of Florida International University, the 13th largest university in the U.S. with 38,000 students. Rosanna Fiske, an associate professor at FIU, is running for chair-elect against Gary McCormick of Scripps. Fiske, who is emphasizing that she is “the first Hispanic woman elected a PRS national officer,” uses the term “diversity” 15 times on the first page of her presentation to the nomcom. She is associating the diversity movement and particularly Hispanics with the PRS policies. McCormick is doing his newspaper-related company proud by answering our questions instead of ducking.

The gloomiest forecasts are being given for ad spending. The Institute of Practitioners in Advertising of the U.K. says advertising is facing its sharpest decline since 9/11.

“A fundamental weakening in demand in the economy as a whole,” is cited. Bernstein Research, N.Y., says Omnicom is better-positioned to weather the economic storm since 60% of its income is from “marketing services” like PR rather than media advertising.

--Jack O'Dwyer