Communications & New Media June 2013 I Vol. 27 No. 6

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Communications & new media June 2013 I Vol. 27 No. 6

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Vol. 27, No. 6 June 2013

EDITORIAL PROFILES OF GLOBAL On Obama’s surmounting scandals. 6 26 PR FIRMS NY TIMES CEO: FAILURE IS A SPORTS STAR “COMES OUT” WAY TO SUCCESS TO BRANDING BOON NYT CEO Mark Thompson said the 8 Washington Wizards center Jason company’s recent online pay model ranks 30Collins made history when he became the first 10 as one of their most successful decisions. active gay athlete in the NBA. MEDIA BLASTS JUSTICE DEPT. MAJOR CHANGES SWEEPING IN WAKE OF SHIELD LAW THROUGH HISPANIC MARKET Media organizations have blasted 8 A wave of trends affecting a grow- the Justice Dept. for alleged leaks and ing31 and diversifying Hispanic demographic violating subpoena guidelines. portends major changes for this market. ENTERTAINERS NOW MOST TRUSTED AMERICANS WHEN MULTICULTURAL MAR- A recent Reader’s Digest poll KETING TURNS TO CRISIS shows Americans now trust entertainers9 Enlisting a multicultural PR agency to more than just about anyone else. 32work in tandem with ad departments can prevent 16 insensitive material from ruining a campaign. www.odwyerpr.com RETAILERS RESPOND TO Daily, up-to-the-minute PR news DISASTER WITH SILENCE PROFILES OF MULTICULTURAL Apparel retailers have offered a PR FIRMS shameful PR performance in the aftermath10 of the deadly Bangladesh factory collapse. 34 WASHINGTON REPORT UNCERTAINTY, WALL STREET LIMIT CEO PLANS CEOs today face a dual mindset of 40 uncertainty, budget woes, and regulatory11 COLUMNS pressure, according to a recent panel. PROFESSIONAL DEVELOPMENT NETWORK OFFERS MARKET Fraser Seitel LEADING APPROACH 36 AMO, a growing global PR net- FINANCIAL MANGEMENT work, has been making splashes 12 in the 37 Richard Goldstein investment banking and legal communities. OPINION 38 Jack O’Dwyer MUSLIM WORLD WOEFUL- LY UNDERSERVED BY PR GUEST COLUMN The often ignored Muslim con- 39 Kellyanne Dignan sumer market presents a unique opportuni-14 ty for PR firms. 40 PR BUYER’S GUIDE NEW LIBRARY REVEALS EDITORIAL CALENDAR 2013 HISTORY, FUTURE OF PR January: Crisis Comms. / Buyer’s Guide July: Travel & Tourism The new O’Dwyer’s PR Library, February: Environmental & P.A. August: Financial/I.R. which opened in May, reveals a 16 side of the industry many no longer see. March: Food & Beverage September: Beauty & Fashion April: Broadcast & Social Media October: Healthcare & Medical GLOBAL PR NETWORKS May: PR Firm Rankings November: High-Tech CHANGE STRATEGY June: Global & Multicultural December: Entertainment & Sports Global PR networks have found a way to do more with less, gaining revenues20 ADVERTISERS while shedding members in recent years. Abernathy MacGregor Group...... 7 PRGN...... 5 2013 PARTNER LIST OF Finn Partners...... INSIDE COVER Ruder Finn...... BACK COVER KEF Media...... 3 TV Access...... 33 GLOBAL PR NETWORKS Live Star Entertainment...... 9 22 Log-On...... 15 Shoot Publicity...... 14 Omega World Travel...... 25 Strauss Media Strategies...... 13

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EDITORIAL Your guide to the scandals of 2013

n the last month, the Obama administration has found itself besieged with crisis. For the EDITOR-IN-CHIEF President’s legions of detractors — and boy, there are legions — it’s a dream come true. Jack O’Dwyer IBetter yet, his administration has fumbled their ongoing explanation of these issues so [email protected] ineptly that we may find ourselves wondering how things could get any worse. Did any of us see this coming four years ago — or even last year? ASSOCIATE PUBLISHER In case you need a refresher: Kevin McCauley In May it was reported that the Internal Revenue Service had allegedly targeted conserva- [email protected] tive nonprofits like the Tea Party for their tax exemption status, based solely on their political affiliation. Spokespersons within the IRS were quick to apologize, claiming the incident EDITOR was isolated, the result of several rogue “front line” agents working out of the agency’s Jon Gingerich Cincinnati office. Several days later, acting Commissioner Steven Miller resigned. The IRS [email protected] is now being hit with a major lawsuit filed in district court by conservative legal advocacy group the American Center for Law and Justice, who’s representing 25 groups that claim they SENIOR EDITOR were also unfairly targeted by the tax agency. Greg Hazley Also in May, news broke that the Justice Department had allegedly subpoenaed months of [email protected] phone and email records from Associated Press reporters during 2010 and 2011, as part of a DOJ investigation into leaked classified documents regarding a now-foiled terrorist plot. CONTRIBUTING EDITORS John O’Dwyer According to AP CEO Gary Pruitt, “thousands and thousands” of phone conversations were Fraser Seitel allegedly seized from the news organization (it has since been revealed that the DOJ had Richard Goldstein allegedly snooped on at least one Fox News reporter as well). The House Judiciary Committee is now debating whether Attorney General Eric Holder committed perjury when Sarah Nicole Smetana Ostiz he implied during a congressional hearing that going after the press for leaking government Editorial Assistant & Research secrets was never part of the DOJ’s investigation. Finally, there’s the scandal that never seems to die: the Obama administration’s handling ADVERTISING SALES of and prior policies leading up to the September attacks on the U.S. diplomatic outpost in John O’Dwyer Benghazi, Libya, that left four people dead, including U.S. Ambassador J. Christopher Advertising Sales Manager Stevens. Nevermind the dozen consulate attacks that occurred during Bush’s presidency, [email protected] there are some foil-hat pundits who are convinced that if they keep flogging this dead horse Sharlene Spingler it will somehow be revealed that Obama singlehandedly caused this disaster to occur, and the Associate Publisher & National Sales Director GOP can henceforth begin impeachment proceedings. [email protected] What’s a beleaguered President to do? It’s been interesting, for lack of a better term, to watch the Obama administration juggle this many scandals at once. There have been a few solid judgment calls along the way: O’Dwyer’s is published monthly for $60.00 a year ($7.00 for a single issue) by the Obama denounced the alleged IRS targeting as “outrageous,” and ordered the DOJ to review J.R. O’Dwyer Co., Inc., future guidelines for subpoenaing the Fourth Estate (Holder has also agreed to an off-the- 271 Madison Ave., New York, NY 10016. record meeting with the major media’s Washington bureaus). More than anything, however, (212) 679-2471 the prevailing pathology here seems to have taken a cue from the corporate crisis playbook Fax (212) 683-2750. by simply distancing Obama from the myriad troublemakers that apparently populate his cabinet. Granted, there’s prudence in the idea of separating oneself from the bad apples, but those rules change somewhat when the person on the hot-seat shoulders, essentially, the © Copyright 2013 greatest responsibility in the free world, and the guilty party involves members of his own J.R. O’Dwyer Co., Inc. team. Much to Fox News’ undoubted chagrin, there is no evidence, as of yet, that any of these scandals lead directly to the Oval Office. But you don’t have to be a crisis management expert to know that fostering the image of a leader who has no idea what’s going on in his own ranks OTHER PUBLICATIONS & SERVICES: is probably not a good idea. Then there’s the hubris regarding how these crises have been addressed publicly. www.odwyerpr.com 4 breaking news, Specifically, Obama has revealed this Swiftian proclivity to bait-and-switch a current scan- commentary, useful databases and more. dal with any number of his more enduring scandals, sweetening the public with promises that Jack O’Dwyer’s Newsletter 4 An eight- have nothing to do with the pending barrage of allegations. During an impromptu May press page weekly with general PR news, media conference, Obama vowed again — yes, again — to close Guantanamo, which he initially appointments and placement opportunities. promised in 2009. He also said he was planning to scale back on his much-maligned drone program, which has grown increasingly controversial. He’d do much better to address the O’Dwyer’s Directory of PR Firms 4 has actual issues affecting his administration in the present, then work on the vestigial complaints listings of more than 1,600 PR firms through- only after the smoke has cleared. out the U.S. and abroad. My favorite irony in all this, however, is the postmodern paradox in which the media finds itself ensnared, the alignments and frictions their prevailing narratives pose with actual O’Dwyer’s PR Buyer’s Guide 4 Products events. After months of peddling Benghazi conspiracy hokum, Fox News finally has a legit- and services for the PR industry in 50 cate- imate blunder on their hands, and they seem irritated that a potentially real cover-up within gories. the White House is taking stage-time away from the false cover-up they’ve worked so hard jobs.odwyerpr.com O’Dwyer’s online £ 4 to manufacture. It’s hard to know who to believe anymore, or if it’s even worth listening. job center has help wanted ads and hosts — Jon Gingerich resume postings.

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MEDIA REPORT NY Times CEO: failure is way to success The New York Times’ decision to introduce an online pay model ranks as the “most important and successful decision” The New York Times, which embraced made by the company in many years, CEO Mark Thompson told digital during the 1990s, has gone Columbia Business School’s May 19 commencement ceremony. through several generations of new By Kevin McCauley online products and services. “It will need innovators and entrepreneurs every projection of current trends into the bit as much as digital start-ups down the hat decision, which pre-dated his future frequently prove unsound. road and fortunately we have the brand ascension to the helm, was faced “Conventional wisdom tries valiantly appeal and the creative challenges to Twith “initial widespread skepti- to keep up, to recalibrate in the light of attract them,” said Thompson. cism,” but now has the rest of the news- recent developments, b ut because it can- He likened the digitalization of The paper world scrambling to introduce their not foresee transformational break- Old Grey Lady — which he labeled the own online pay editions. throughs or the kind of behavioral and transformation of an iconic and precious His theme dealt with the importance of business-model pivots which digital tech- cultural institution — “as being like risk-taking and acceptance of failure as nology makes possible, it never can.” skateboarding down a flight of stairs the price of innovation and “transforma- Said Thompson, “In modern media, holding a Ming vase.” tional success.” you could make the case that the best way The paper’s success “depends on both He told the students that following forward is to listen carefully to what the on holding firm to unchanging values and conventional wisdom is an outdated industry has to say and then do the exact on opening ourselves to new and notion in today’s “disruptive age.” opposite.” inevitably uncertain business opportuni- Thompson’s said of the current era: To Thompson, the The New York ties” concluded the CEO. “The disruptive age is one in which the Times’ 700,000 paid electronic subscriber Thompson, a BBC veteran, was discontinuities outnumber and over- base and “nine-figure revenue stream” appointed to lead the NYTC last whelm the continuities and in which pre- proves as bunk the belief that “people November. He described his accent as dictions based on the past or the smooth won’t pay for news.” “Bond villain.” £ White House backs shield law as media blasts Justice Dept. A coalition of media companies, through the Reporters Committee for Freedom of the Press, has blasted the Justice Holder recused himself in the leak probe in 2012 because he was ques- Dept. in a letter to Attorney General Eric Holder for an “over- tioned in it. reaching dragnet for newsgathering materials.” The media companies also want to By Greg Hazley know whether the Justice Dept. has served any other media subpoenas that further use of them. They want an expla- have not been disclosed. £ he Justice Dept. is under criticism nation for the legal tactics and public for obtaining phone records of disclosure on who has access to the PR News Briefs TAssociated Press reporters in a records and how they were protected. leak probe about an Al Qaeda plot in SEQUESTRATION FORCES PR Yemen. JOBS CUTS The media organizations, including Atlantic Media, the New York Times Weber Shandwick has cut six percent of its Minneapolis-area staff as the effects of seques- Co., Dow Jones, Forbes and Gannett, to tration ripple through the firm’s government work. name a few, said the Justice Dept. vio- The firm’s Bloomington office is the hub for its lated guidelines for media subpoenas, U.S. Army PR work. The Pentagon budget is a showing a strong federal shield law is major target of the sequester cuts. Twin Cities Business magazine, which first needed to protect reporters and their reported the WS layoffs, said nine jobs were cut newsgathering efforts. across the office of 149 in the move. The White House said May 15 that it Ogilvy PR in April trimmed its Washington has asked Sen. Chuck Schumer (D- Holder workforce, citing budget freezes and government N.Y.), who heads the Senate Judiciary apprehension to award new contracts. The sequester cuts started on March 1 and will Committee, to reintroduce a press shield squeeze $85 billion from federal spending by law. A 2009 bill was derailed in part Holder, in a May press conference, September. because of the Obama administration’s said the investigation involved “a very, Government contractors will likely feel the cuts weakening of its provisions. very serious leak” that “put the as options on existing or expiring contracts are declined, budgets are submitted at the lower end The media companies want the Justice American people at risk,” adding “that is of guidelines, and new contracts are no t awarded, Dept. to return the phone records and not hyperbole.” He said the investiga- according to Federal Times. destroy all copies, or at least prohibit tion required “very aggressive action.”

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Poll: entertainers among “most trusted” Americans A recent Reader’s Digest poll Reader’s Digest Editor-in-Chief Liz talent, drive to personal excellence, shows Americans now trust Vaccariello called the reults “fascinating, internal moral compass, message, hon- entertainers more than just fun and shocking.” esty and leadership. about anyone else. She noted: “While the list showed what While the list focused on public fig- Americans think about those they see ures, RD noted that 77% cited their per- regularly in the news, on television and in sonal doctors as most trustworthy, fol- By Greg Hazley movies, our poll also revealed that we put lowed by spiritual advisors (71%), and our trust in do-gooders, that tweets do not their children’s teachers (66%). om Hanks topped Reader’s always equal trust, and that we trust peo- The top ten most trusted Americans in the Digest’s recent list of the “100 ple we know more than anyone famous.” Reader’s Digest poll (from first-place to TMost Trusted People in America,” Reader’s Digest pointed out that 10th) were: Tom Hanks, Sandra Bullock, and entertainers rounded out seven of the social-media savvy celebrities like Denzel Washington, Meryl Streep, Maya top 10 slots, based on a poll of 1,000 Ashton Kutcher and Lady Gaga were Angelou, Steven Spielberg, Bill Gates, Americans. toward the bottom of the trust ranking at Alex Trebek, Melinda Gates, and Julia The first non-actor to appear on the list 20% each. Roberts. is author and professor Maya Angelou, Rounding out the bottom of the top 11 The bottom five most trusted (from who landed at fifth place. Microsoft co- were media figures including Wall Street 95th place to 100th) in the Reader’s founder Bill Gates is at number seven, Journal tech scribe Walter Mossberg, Dr. Digest poll were: Walter Mossberg, Dr. while his wife, Melinda, took ninth place. Phil McGraw, Steve Forbes, Maureen Phil McGraw, Steve Forbes, Maureen Michelle Obama was the top rated Dowd and Paul Krugman of The New Dowd, Paul Krugman, and Shepard political person as 53% said she is York Times, and Fox News’ Shepard Smith. extremely/very trustworthy, ahead of Smith Robin Roberts of “Good Morning Colin Powell (50%), Hillary Clinton The Wagner Group conducted polling America” was the top rated TV news per- (47%) and President Barack Obama for Reader’s Digest, which compiled a sonality, followed by Diane Sawyer (45%). list of 200 prominent people for the vote. (51%), Brian Williams (50%), Katie Reader’s Digest said “trustworthiness” Couric (49%) and Barbara Walters Notably, TV’s Judge Judy outscored all £ nine Supreme Court justices in the rank- was calculated by integrity and character, (50%). ing. Media Briefs PELLEY: “JOURNALISM’S HOUSE ON FIRE” When it comes to heavyweights in Big Media, one would be hard-pressed to find a person heav- ier than CBS News anchor Scott Pelley. When Pelley trashes the journalism profession, people should take notice. Speaking at a May 10 Fred Friendly First Amendment Award dinner in New York, an event sponsored by Connecticut’s Quinnipiac University, Pelley told the assembled crowd of media lumi- naires that they are blowing it, big time. “Never before in history has more information been available to more people, but at the same time, never before has more bad information been available to more people,” he said. Pelley gave his own mea culpa for botching the Newton massacre story when he reported that the son of a teacher at the school was the shoot- er responsible for the slaughter. “It was a hell of a story, but it was dead wrong,” he said. The newsman went on to trash the media’s reliance on Twitter and Facebook as sources. He dismissed those sites as purveyors of gossip, which journalism is supposed to serve as an anti- dote to. To Pelley, the social media’s 24/7 world creates pressure on journalist to put speed above accuracy, which leads to inaccuracies. He concluded his talk by warning that journalism’s “hou se is on fire,” begging the question: Who is going to put out the flames and work to restore trust in media?

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REPORT Retailers’ PR response to Bangladesh disaster: silence

Whether it’s confusion or denial, apparel retailers have pounds of clothing had been sent in 21 ship- offered a shameful PR performa nce in the aftermath of the ments from the Rana factory to TCP, with a deadly April factory collapse in Bangladesh that took more two-ton shipment delivered to Georgia on than 900 lives. By Greg Hazley and Jon Gingerich April 5. The company in a May 1 Facebook posting chastised “certain media reports Memory hazy on supply chain that have suggested” the company hasn’t he April 24 collapse of the eight- Even for retailers that have pledged to been clear about using a supplier in the story Rana Plaza clothing complex in sign onto the reformed inspection and safe- collapsed building. TSavar, Bangladesh, is now consid- ty agreement, few have offered a response The top Bangladesh contractor, fashion ered the deadliest garment factory accident above anything that can be characterized as brand H&M, acknowledged the disaster in in history. Home to several factories that muted. its corporate press room online, even manufactured clothing for Western retail- Italian fashion giant Benetton, which has though, it said, none of its clothes were ers, the Rana Plaza disaster has reignited a since signed on to the agreement, doesn’t made at the Rana plant. The company then debate regarding retailers’ culpability for seem to know the details of its own supply blamed the accident on the impoverished safety standards in the factories where their chain. After denying any presence in Savar, country where it makes its clothes. products are made. in May its CEO acknowledged the compa- “It is important to remember that this Retailers’ response to the incident, how- ny bought shirts from a manufacturer, New disaster is an infrastructure problem in ever, has been noticeably quiet. In the wake Wave Company, based in the collapsed Bangladesh and not a problem specific to of the disaster, 14 North American retailers plant. Wire photos of garments found in the the textile industry,” the company stated have since refused to commit to an updated, rubble of the collapse displayed Benetton before expressing a willingness to take European-led agreement that would tags. part in a “joint force” to “influence this improve safety standards in factories issue.” like the one that collapsed in Savar. H&M, like Benetton, has since The agreement, titled the Accord signed onto the Accord on Fire on Fire and Building Safety, pro- and Building Safety agreement. posed companies commit to a five- Canadian apparel company year program wherein a set of rou- Loblaw acknowledged early on tine, independent safety inspections that its products were made in of factories are conducted, as well as the collapsed factory and chas- numerous safety improvements. It’s tised industry peers for their estimated the plan would cost partic- shoddy response. ipants about $500,000 per year. Loblaw CEO Galen Weston Wal-Mart, one of the companies noted at an annual April 30 that has refused to sign the agree- The April Rana Plaza factory collapse in Bangladesh is now meeting that only two of 30 ment, said it has drafted its own being called the worst garment factory accident in history. global apparel brands comment- updated safety plans to “reassess” ed on the disaster in its aftermath practices abroad that supersede the “The New Wave company, at the time of and pledged to reform inspec- European accord. In a May statement the the tragic disaster, was not one of our sup- tions to include structural reviews. retail giant said its new plans would “con- pliers, but one of our direct Indian suppliers Loblaw, which makes the Joe Fresh duct in-depth safety inspections at 100%” had subcontracted two orders,” Benetton clothing brand, and Irish clothier Primark of the 279 factories it uses in Bangladesh, Chief Biagio Chiarolanze told the were the only two to take ownership of the which would “get results more quickly” Huffington Post. crisis in the immediate aftermath, admit- than the European accord. Wal-Mart said it The CEO’s admission came after the ting their clothes were made in the Rana would publicize its findings on the compa- Wall Street Journal contradicted Benetton’s Plaza facility. ny’s website. earlier assertion and revealed the New The Rana Plaza disaster is one of only Wal-Mart, which was the subject of a Wave tie, citing documents for thousands of several deadly accidents to occur in New York Times expose in December that units ordered. Bangladesh’s $20 billion garment industry said it blocked a push for new safety rules Chiarolanze said his company will make this year. A November fire at the Tazreen in Bangladesh, also said it didn’t have any funds available to the families of victims in factory in the Ashulia district killed 112 “authorized production” at the collapsed the collapse, citing a “moral obligation.” workers. A January fire at a factory in factory. It made a similar comment after a The company, which did more than $2 Dhaka killed seven. In the latest develop- November factory fire in Bangladesh when billion in sales last year, offered no mention ment, a May 8 fire in a clothing factory in its products were later found in the rubble. of the plant collapse on its website for Dhaka killed eight. Other companies that have refused to weeks after the disaster. In May, the Bangladesh government sign onto the agreement include: Gap, Retailer The Children’s Place admitted it said it had now shut down 20 factories for Macy’s, Sears/Kmart, JCPenney, VF Corp., used a supplier in the Rana building but safety reasons. Target, Kohl’s, Cato Fashions, Carter’s, added that “none of our apparel was being “I’m very troubled,” said Weston. “I’m Nordstrom, American Eagle Outfitters, The produced there at the time of the tragedy.” troubled by the deafening silence from Children’s Place and Foot Locker. The New York Times reported that 120,000 other apparel retailers on this.” £

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Retailers’ PR response to Bangladesh disaster: silence Uncertainty, Wall Street limit bold CEO plans Regulatory uncertainty, quarterly earnings pressure and other Consulting for Gibbs & Soell, noted that external factors make CEOs less risk-averse, said author and Apple has now become more defined by former Fortune editor Hank Gilman at the New York installment of financial performance than innovation, a a May Gibbs & Soell conference focused on corporate disruptors. turnaround from its years as the darling of By Greg Hazley tech media. “Apple is judged on its hits,” he said. Halsey said competitor Samsung Part of that purpose, in the eyes of the is given more license to fail because it’s ilman said CEOs today face a dual public, is meeting a perceived “social chasing the leader, not leading the pack. mindset of being certain of where role,” said Fronk, who noted it’s not a phil- Fronk said it appears Apple is trying to Gthey want to take a company, anthropic or corporate social responsibility temper the Wall Street pressure as it held a against the uncertainty of factors like role. media availability in late April for the first Washington budget woes, disruptive tech- He pointed to Amazon’s simple mission time that didn’t involve a new product. He nology and even issues like global warm- statement — “To be Earth’s most cus- said: “My hope is that they’re not out of ing. Such constraints likely contributed to tomer-centric company where people can ideas but wanted to send a message that the decline of average CEO tenure from 10 find and discover anything they want to ‘We don’t need to give you a new product years in 2000 to less than four today, pan- buy online” — as a good example of a to drive our share price.’” He said the elist said. company thriving with a social role. “They company’s massive debt deal was in part One of the biggest factors hampering meet that,” he said. “From a customer to pay off people looking for short-term risk-taking among CEOs is Wall Street and standpoint, it’s ‘Does this business do gains so it could focus on innovations. the pressure to meet quarterly figures at the something to make my life better or easi- Companies ‘wed’ communities expense of long-term goals. er?’” In a separate panel, Paula Davis, a veter- The April ouster of JCPenney an Corporate Communications exec CEO Ron Johnson after less than for Siemens and The Pepsi Bottling two years surfaced at several points Group, who is now VP for Alcoa during the G&S event, which and President of the Alcoa included simultaneous events in Foundation, talked about the min- Chicago and Raleigh and was ing and aluminum giant’s efforts to dubbed “Global Street Fight: Are woo communities in which it oper- Your Ideas Disruptive Enough to ates around the world. Win in This Economy?” She said the company faced Gilman said Johnson is a prime “huge distrust” and disruptions at a example of a CEO trying to make mine operation in Jamaica before a bold moves while carrying Wall community relations effort, includ- Street on his back. “You may make ing efforts to educate school chil- the right decisions, but other forces Alcoa VP Paula Davis and Gibbs & Soell Managing Director Ron dren, smoothed its relationship are weighing on you,” said Gilman. Loch. there. Johnson, an Apple retail vet hired Photo: Greg Hazley Davis said Alcoa’s industrial in 2011, tried to revamp the old focus as a B2B company can be a department store chain with a multi- difficult pitch to media, especially year strategy but a slumping share price Part of crossing the threshold into being when President Barack Obama is not zero- and the loss of support from hedge fund perceived as a great company is moving ing in on U.S. competitiveness and manu- titan Bill Ackman ultimately led to his beyond the sector that got it there. “It’s facturing. downfall after just 18 months. companies that transcend the business they She noted research that found only 20% Robert Fronk, Executive VP for came up in that turn into the great compa- of parents want their kids to go into manu- Reputation Management at Harris nies,” said Fronk, asking whether Google facturing, a troubling statistic Alcoa has Interactive, said Johnson’s “boldness” is a tech company or a software company, tried to mitigate by educating about overran his ability to manage the compa- or whether Amazon is a bookseller or a advanced manufacturing and technology. ny’s finances as it burned through 90% of retailer. Rick Newman, Chief Business its cash while he was “innovating.” Who should burnish a company’s social Correspondent for U.S. News & World ‘Social role’ role? Fronk said it’s a job tailor-made for Report, said he gets about two dozen On the flip side of J.C. Penney is PR. “Nobody is more qualified than a pitches per day, deleting nearly all of them Amazon. Fronk said Amazon CEO Jeff strategic communicator to convey the idea because they aren’t relevant for his audi- Bezos is not constricted to make decisions of social role,” he said, adding that shorter ence. catering mostly to one stakeholder — in J CEO tenures have also upped the ante on “The stories I do are ones with some- JCPenney’s and many cases, shareholders corporate communicators who have less thing important to convey to my audi- — which allows him to run a retail giant time to shape a chief executive’s image. ence,” he said. “Inside the corporate bub- like Amazon like a small business. But Wall Street and shareholder pres- ble you have executives convinced it’s a “Successful small businesses are purpose- sure can also affect titans of the corporate great story when it’s a yawner. A lot of driven, and successful large businesses are world. Steve Halsey, Principal and times a company is just doing what it’s purpose-driven as well,” said Fronk. Managing Director of Business supposed to. That’s not a story.” £

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FEATURE Global network offers market leading approach A growing global PR network already making splashes in the investment banking and legal communities offers clients a best-in-class approach that reaches across borders. clients, and therefore automatically expects the same from international By James Abernathy partners. This is the key to AMO’s success as a network, we all have the same the leading local financial PR and expectations of each other as we do of uestion: In this time of increasing investor relations firms. The AMO net- ourselves. cross-border deals, what public work achieves this by uniting like- AMO draws inter-partner connections Qrelations organization handled minded, leading, local consultancies — through global teams specializing in the most M&A transactions worldwide whether independent or owned by a areas like M&A, Equity Capital last year? Hint: It’s not one of the giant larger parent‚ in the key financial and Markets and Investor Relations, who household-name agencies. commercial markets around the world meet and conference regularly ensuring AMO, a global network of financial under one brand, AMO. that the AMO international machine public relations consultancies, worked The AMO network now includes the continues to be a step ahead in terms of on more deals than any other franchise following market-leading consultan- industry trends and continues to operate last year, according to data from cies: The Abernathy MacGregor Group seamlessly on behalf of its many inter- Mergermarket. The network just cele- in the US; Maitland in the UK; Havas national clients. brated its 12th anniversary by adding a Worldwide in France, Belgium and Future development 22nd country (Poland) to its geographi- Dubai; Hering Schuppener in Germany The AMO brand is now well known to cal reach. and Brussels; Lorente & Cuenca in the investment bank- AMO’s founding premise was born Spain, Portugal and Latin America; ing and legal commu- from an attempt to address the fact that Hirzel.Neef.Schmid.Counselors in nity and AMO has a best-in-class corporate/financial agen- Switzerland; SPJ in the Netherlands; well-established mar- cies need to work with their direct peers Porda Havas in China; Springtime in keting program in major international markets, regard- Sweden; Ad Hoc Communications designed to raise its less of who owns what. The result: AMO Advisers in Italy; and NBS profile further in the agencies are carefully selected and lead- Communications in Poland. Four of the corporate sector. ers in their markets, handling the most eleven network consultancies are owned This includes AMO’s sensitive strategic communications by Havas and the remaining consultan- popular annual event needs in both their local markets as well cies are independent. for global communi- James Abernathy as across-borders. Network companies have now cations heads at Twelve years later, AMO is the received four Sabre Awards for Best Davos during the World Economic world’s largest strategic and financial U.S. or European financial consultancy Forum. communications network, employing and a clutch of additional awards in The AMO network ranked first in more than 750 consultants across 22 M&A, crisis management and corporate Mergermarket’s M&A league table by countries, and operating out of 34 cities. PR. Three of its board members have deal count in 2012 and has advised on We continue to add top-tier agencies in received Sabre Lifetime Achievement some of the most complex and challeng- new markets to broaden our reach. awards and in 2011, one was named ing international M&A projects. Cross- Best-in-class approach M&A communications adviser of the border M&A projects such as Mittal’s As market leaders in their respective decade 2000-2010 by Mergermarket. groundbreaking bid for Arcelor, UPS’s countries, the three founders set out to Common interest in serving clients bid for TNT and currently Royalty create a network of consultancies that Since its formation, no consultancy Pharma’s $6 billion bid for Elan are just were at or among “best-in-class” in their has left the AMO network and the a few examples of AMO transaction domestic markets, allowing AMO to demand for membership remains work. offer superior local expertise and flaw- strong…with admission into the net- Country by country AMO will contin- less execution across borders. Often the work highly selective. As membership ue to selectively expand its network of top financial PR agencies in internation- is determined by quality-of-service and local partners. As the media globalizes, al markets were not for sale — they a clear focus on strategic and financial and as client companies and organiza- wished to remain independent. The communications, the network’s integri- tions reach beyond their national bound- three founders also understood that ty has never been compromised by the aries to grow across borders, they will be going through the process of acquiring need to deliver short-term financial looking for assurance that their commu- different agencies all over world would results, or the priorities of one market nications will be handled by best-in- lead to integration issues and the chal- over another. class agencies. AMO is the only net- lenges of retaining and hiring top talent. AMO is bound together by profes- work that can provide this assurance, The AMO concept was designed to sionalism and a relentless pursuit to because that is the premise of our union avoid these problems and allow AMO deliver the highest quality counsel and and the foundation of our success. consultancies to guarantee clients that support to our clients. Each of our local James Abernathy is Chairman and no matter where they were doing busi- consultancies and practitioners upholds CEO of Abernathy MacGregor, and ness they would have access to one of the highest standard of service for their Chairman of AMO. £

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FEATURE Muslim world woefully underserved by PR sector The Muslim market is the single biggest consumer market in and go online for the first time and are like- the world — bigger than India and China — yet it’s treated ly to follow brands that are relevant to them differently because it isn’t limited to a geography, race or culture. and speak their language. For companies looking to find the next billion consumers, the In Islamic majority and minority coun- Muslim market presents a unique opportunity. tries throughout Asia, the Middle East, By Yusuf Hatia Africa, and Europe, business activity is escalating, with Islamic trade currently By 2030, 79 countries are expected to estimated in trillions of dollars. slamic doctrine, by and large, is not hold a million or more Muslim residents, Excluding Islamic finance and banking, ascetic and does not discourage trade or from the current 72 countries. A majority of the global Halal market is valued at about Iconsumerism. Likewise, it does not the world’s Muslims (more than 60%) will $2.3 trillion. The divide the state from religion, which means continue to live in the Asia Pacific region, worldwide Halal food that Muslims practice their faith hand-in- while about 20 percent will live in the market alone is worth hand with the political, social and cultural Middle East and North Africa. Muslims an estimated $650 bil- roles they play in society. So, the concept will remain relatively small minorities in lion or more and is of a Muslim market or a Muslim consumer, Europe and the Americas, but will consti- close to 17% of the we believe, is a valid one. tute a growing share of the total population global food industry. Consider some of the demographic data in these regions. To be successful in Asia, At the end of 2011, that makes this consumer very interesting. as well as the Middle East and North assets compliant with The global Muslim population is expected Africa, companies must learn to under- Islamic banking to grow by about 35% over the next 20 stand and address the Muslim market on a topped the $1 trillion Yusuf Hatia years, rising from 1.6 billion in 2010 to 2.2 large scale. mark and recorded billion by 2030, or over a quarter of the One demographic factor makes the another year of double- world’s total projected population of 8.3 Muslim market even more attractive to digit growth. The Halal pharmaceutical billion. By 2050, the Muslim population companies — it’s largely young and part of industry is estimated by some analysts to could grow to 2.6 billion and represent an emerging middle class on the road to be worth as much as $500 billion while the nearly 30% of the global projected popula- greater consumption. Some of these con- Halal cosmetics market is worth around tion. sumers will bank, use branded products $13 billion and growing at a compound annual rate of about 12%. Companies are starting to understand the opportunity that Muslim consumers represent. But addressing this market is not as straightforward as dealing with other billion population consumer markets. For a start, the Muslim community is not a single homogeneous group. Muslims live in every country, represent every race and come from every social and economic class. And although they share the common thread of their beliefs, they have their own cultural, regional or local nuances, prefer- ences and practices. The diversity of the Muslim consumer can prove to be a challenge to those who view markets as geographies and for whom the concept of an Islamic consciousness operating across market frontiers is alien. Neither can the Muslim economy be as easily defined as other cross-border markets such as the “green economy” or the “pink dollar.” For brands that find ways to embrace and engage the Muslim consumer, the rewards are rich. And smart, compelling communications will play a critical role in targeting a consumer market that already represents nearly a quarter of humanity. Yusuf Hatia is Senior VP and Managing Director of FleishmanHillard’s Mumbai office. £

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FEATURE New library reveals history, future of PR industry Books about PR, as well as press coverage of the industry dating back to the 1960s and earlier, are among the materials in the new O’Dwyer’s PR Library, which reveal an industry that was much more open, friendlier, and less stressful than it is today. By Jack O’Dwyer The National Investor Relations Institute took its annual meeting out of town rather n the 1960s, ’70s and much of the ’80s, had a printed directory of its 4,000-plus than face reporters. virtually every major company, ad members that was converted to digital in APR blight wrecked culture Iagency and PR firm had someone dedi- 2002 and is for use by members only. The open culture of the PR Society, typi- cated to building personal relationships Other printed directories no longer avail- fied by having a library open to all in mid- with reporters and visiting them at their able included those of the Arthur W. Page town and inviting reporters as Silver Anvil desks. Ad agency and PR firm judges, ended in 1980 when presidents routinely hosted counselor Patrick Jackson reporters in their corporate dining became President. He instituted a rooms. policy of only having association In New York, more than 20 PR career people at h.q. rather than groups flourished, topped by the PR people. About 10 such New York chapter of PRSA, staffers were ditched. Only one which each month held a lunch PR person, Donna Peltier, for nearly 300 practitioners at the worked at h.q. from 1984-94. Waldorf-Astoria. The association careerists bond- The Publicity Club of New ed with supporters of accredita- York, with 400-plus members, tion, a process that started out hosted a gathering every with good intentions but ended Thursday night (“Thirsty up attracting just under 20% of Thursdays”) that including a talk the membership. Costs of the by a leading editor. program ballooned ($2.9 million The press-friendly culture of loss from 1986-2002). Corners PRSA in the ’70s is indicated by A view of some of the books on display at the new O'Dwyer’s PR library. were cut. In place of a grueling its policy of inviting reporters exam that required 5.5 hours of (including this writer) to be Silver Society’s 400 members and the Publicity writing came a multiple-choice test lasting Anvil judges. Reporters, as well as PR peo- Club of New York’s 400-plus members. 3.5 hours. No live writing at all is involved ple, were welcomed at Society offices at PR departments of companies have in the current process, instituted in 2003. 51st Street and Third Avenue, where Mary shrunk to a fraction of their former sizes. The number of new Society APRs created Wilson served as librarian. Many companies stopped listing contacts in the past nine years is less than half of Directories made reaching PR pros easy by name. Reporters are now often faced what it was in the previous ten. The APR- Printed association directories were once with a blank box on corporate websites into controlled Assembly since 1999 has standard and made finding and reaching PR which questions can be inserted. Corporate rebuffed attempts to remove their monop- practitioners a breeze. PR heads are almost never indentified on oly on national offices and membership on The PR Society had a nearly 1,000-page such sites. the Ethics Board. directory of 20,000 members sorted by Twin blights: congloms & APR The Society cut off information flow in name, company, geographical location and What happened to turn friendliness into numerous places in addition to making its membership in one of 18 special sections. remoteness and even alienation on the part membership list available only to members. The last edition was published in 2005. The of many organizations and some PR firms? Only Assembly delegates have been Society made the directory available free of Those who visit the O’Dwyer’s Library allowed to see the national list of delegates charge to reporters, and it was a goldmine will find out. since 2005. Transcripts of the Assembly of contacts for them. Now, only Society The conglomerates of WPP Group, were not published after that year. members may access the current online Omnicom, Interpubic and Publicis, after Reporters were barred from the Assemblies directory. Reporters are not allowed to join swallowing just about every ad agency, of 2011 and 2012 for the first time in the the Society. small or large, starting around 1980, went Society’s history. The complete list of some A similar directory of 14,000-plus mem- to work on PR, capturing 19 of the 25 50 headquarters staffers, published until bers was published by the International biggest firms in the O’Dwyer rankings. 2005 in the members’ directory, disap- Assn. of Business Communicators until The financiers who run the congloms peared. In its place is a listing of seven top 2002. Copies were also available to the much prefer to deal with Wall Street ana- staffers. A list of presidents of the 110 chap- press. lysts, who rarely issue a “sell” order, rather ters disappeared after 2009. Members IABC’s current online directory does not than the press. That attitude spread quickly desiring such a list must compile it them- allow members to contact each other direct- throughout PR empires resulting in firms selves by visiting 110 chapter websites. ly. Messages can be sent to a “blind” data- going almost completely dark as of 2001. Also vanishing was the list of chapters by base that forwards them to the intended Gone were their account lists, revenue size. It can only be compiled by visiting all member. The system is similar to that used totals and employee counts. Dedicated Continued on next page by LinkedIn. press contacts were eliminated. Omnicom 0

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110 chapters. lent book on the celebrity mania gripping tainhead, often showering clients with up Trove of books on marketing/publicity the country, with plenty of good advice to 100 ideas for improving their business- O’Dwyer’s PR Library includes more and tips for newcomers as well as veter- es. But he was also close to them person- than 60 books with PR in the ally, not hesitating to get up in title, 24 with marketing in the the middle of the night and title and 10 with publicity in the visit a client who called him. title. Books exist in subject cate- The Tylenol Mafia by Scott gories such as ethics, crisis PR, Bartz, ex-Johnson & Johnson. financial and investor relations, The Tylenol Mafia is about and biographies. J&J and the 1982 Tylenol poi- There are extensive files, sonings. No press conference including tax and financial was ever held and J&J only reports and membership lists for offered a $100,000 reward more than 15 PR and journalist even though seven people organizations such as PRSA and died taking its product. It went its Foundation, Institute for PR, right back on the market with IABC, National Investor easily-spiked capsules in Relations Institute, Council of “tamper-resistant” bottles. PR Firms, Arthur W. Page Diane Elsroth, 23, became Society, (PR) Seminar, New another Tylenol victim in York Financial Writers Assn., 1986. Only then did J&J pull Society of Professional the capsules. Journalists, ProPublica, Assn. The Power House, bio of for Education in Journalism and Robert K. Gray, by Susan Mass Communication, Poynter Trento. The Power House pro- Institute, Committee to Protect vides a detailed look at how Journalists, Pew Research Robert Gray became a power Project for Excellence in broker in D.C., working Journalism, National Press Club closely with the Reagan and Overseas Press Club. Administration. Gray took his Also available to users are firm public and later sold it to copies of O’Dwyer’s Newsletter Hill and Knowlton, his former dating back to 1968, and employer. Gray sued author O’Dwyer’s magazines dating to Susan Trento but lost. Time 1987, PR Week from 1998, did a major piece on Gray. directories of PRW/U.S. from Deadly Spin, by Wendell 2000, directories of PRSA, Potter. Deadly Spin covers IABC, NIRI and Page Society, how PR is used by Cigna, back issues of Tactics and where Potter worked for 20 Strategist of PRSA and years, as well as other health- Communication World of IABC. care giants. It notes that many Get a grip on PR with these must-reads ans. Denizens of this book are on good of the activities of the industry are cloaked Newcomers to PR, including students terms with reporters and wouldn’t dream in secrecy. Donors to non-profit trade thinking of studying PR or communica- of ducking a call. They send written thank groups, for instance, don’t have to identify tions in college, as well as experienced PR you notes to reporters whenever a client is themselves in tax forms or elsewhere. pros can learn a lot from browsing in mentioned. Their advice to those looking Influence: The Psychology of O’Dwyer’s PR Library, a collection of for a PR firm is to check what recent Persuasion, by Robert Cialdini. Influence 700-plus books, periodicals, studies and placements have been made by that firm describes numerous psychological tricks databanks assembled over the past 45 for a similar product or service. used on consumers. For example, resi- years. Edelman and the Rise of Public dents of a California town were asked to Especially recommended are these Relations, by Franz Wisner. Edelman is a sign a petition to “Keep California books by knowledgeable authors: must-read book because it’s a biography Beautiful.” The next week, they were You’re Too Kind: A Brief History of of the founder of what is now the world’s asked to put a big sign on their lawns say- Flattery, by Richard Stengel. You’re Too largest independent PR firm. Daniel ing, “Drive Carefully.” Half the signers Kind says there is an “epidemic” of flat- Edelman built his firm on commitments to agreed while others did not. The signers tery in business and private circles and that ethics and transparency. Following the had unwittingly defined themselves as those who don’t practice some of its tech- details of his life and those of other suc- public-spirited and couldn’t bear to be niques can be left in the dust. He urges cessful PR people builds knowledge of PR inconsistent. “smiling a lot” at superiors and others you that cannot be captured in textbooks. Army of Entrepreneurs, by Jennifer want to impress because smiling means “I Always Live Better than Your Clients, by Prosek. Prosek, who heads a $15 million like you.” Stengel notes that flattery Isadore Barmash. This is a bio on Ben New York PR firm, tells how she has “thrives in hierarchical settings” such as Sonnenberg, who became the single rich- trained her employees to be on the lookout companies and institutions. est person in PR in the 1940s, ’50s and for potential new clients wherever they Celebrity Leverage, by Jordan ’60s by serving clients’ personal as well as Continued on page 18 McAuley. Celebrity Leverage is an excel- business needs. He was a creative foun- 0

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O’DWYER’S PR LIBRARY years. group this year that could be accessed No major media have mentioned the by the public: www.theseminar.biz 0Continued from page 17 existence of PR Seminar, the name that They offer two reasons. One is that has been used since 2007. While “PR” Seminar is desperate for new members has been dropped informally by the since so many keep losing their jobs. are. The book captures the “go-go” atmos- group, tax returns continue to be filed Another is that members have to justify phere of PR firms which is almost com- under the name of PR Seminar. A book- spending four or more days at one of pletely different from the defensive pos- let of one-page resumes is circulated the swankiest resorts in the U.S. at a ture that is common at companies and each year. total cost of nearly $1 million (includ- institutions. Publishing executives and editors of ing the $3,500 registration fee, hotel, No Such Thing as Over-Exposure, by leading media outlets have addressed it travel, meals, golf and other costs). Robert Slater. This book on Donald over the years including those from The Seminarians burst with pride Trump is a primer on how notoriety can New York Times, Wall Street Journal, The new Seminar website starts off bring riches. Trump described his slam- Barron’s, Washington Post, New Yorker, with this sentence: “For more than 60 bang approach to business to the PR Business Week, Forbes, Time, The years, The Seminar has been the pre- Society of America national conference Economist and Financial Times. miere organization of the highest-rank- in 2004. Ne ver trust another businessper- Membership turnover escalates ing communications and public affairs son and if one of them does you any harm PR Seminar in the 1970s was a high- executives of the world’s most influen- be sure to respond with a double dose of ly stable group, adding seven to ten tial corporations, nonprofit organiza- harm to them, he advised. Students think- new members yearly. PR people were tions and public relations agencies.” ing of a PR career must know the tooth allowed to stay even after losing their It says Seminar “is not about the prac- and claw nature of business competition. jobs or retiring as long as they did not tice of communications, focusing Major PR textbooks available miss two meetings in a row. instead on topics such as technology, Current and past editions of the five However, the rules were tightened in economics, healthcare, the environment major college PR textbooks are and more.” also available: “Practice of PR,” This is odd because “com- “PR: Strategies & Tactics”, munications” was in the title “Effective PR,” “This is PR: The of 65 of the 138 attendees in Realities of PR,” and “PR: The 2012 at the Park Hyatt Profession and the Practice.” Aviara Resort north of San The library, which is equipped Diego in 2012. There were with Wi-Fi, is open at no charge 35 new members, meaning to anyone for the first visit. approximately that same Some books will be available for number of PR executives loaning if security is provided. either quit, retired or lost Exclusive coverage of Seminar The nine boxes shown contain copies of all current PR/IR trade pub- their jobs, because there is a Extensive coverage of what lications and directories including O’Dwyer’s, PR Week/U.S. and PR finite number of openings at is no doubt the industry’s most News as well as the Tactics and Strategist publications of PR The Seminar. influential group, PR Seminar, Society of America and its last printed members’ directory. In 2011, when the meeting is provided by both the physical was June 5-8 at the Ritz- O’Dwyer’s PR Library and the Carlton, South Beach, Fla., O’Dwyer website. there were a record 49 Seminarians currently hold inductees, testimony to the the majority of seats on the next insecurity of PR posts at cor- most influential group, the porations. Arthur W. Page Society. Page This year’s meeting is June was founded in 1982 by mem- 2-5 at the Ritz-Carlton at bers of PR Seminar. Half Moon Bay off the coast Besides providing registra- of California, a resort notori- tion lists and programs from ous as a symbol of corporate 1970 to the present, the Library excess. has an 80-page booklet that AIG, which received $85 summarizes many of the pre- Membership lists of PR Society of America, National Investor billion in bailout money from sentations made to the group Relations Institute and International Assn. of Business the U.S. Government in over the years. PR Seminar Communicators were available to reporters as well as members until 2002 when NIRI and IABC went online to members-only. 2008, had scheduled several members are mostly from days of play there for top Fortune 500 companies and salespeople after just spend- about 20 of the largest PR oper- ing $440,000 at another ations. One tradition of the group is that recent years to exclude members that resort for the same reason. Half Moon the term “PR” is never discussed. lost their jobs and were not able to was ultimately cancelled. Membership lists and programs are move to a new major corporation with- Chair of the 2013 Seminar is Gerard cloaked in secrecy but attendees who in two years. They were able to attend Meuchner, who was with Eastman don’t believe a group of PR people one more meeting while unemployed. Kodak from 2000-2012, rising to direc- should be so reclusive have provided Veteran Seminarians were shocked tor of corporate communications and the O’Dwyer Co. with reports over the with the unveiling of a website by the public affairs. £

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REPORT Global PR networks gain revenues, change strategy While membership has waned somewhat among the largest global PR networks, revenues have soared to historic highs. This paradox may highlight a potential philosophical shift in how global PR networks are conducting business; the days of simply adding pins on the map appear to have been replaced with a noticeably more calculated, albeit leaner, attempt to find the right partners with the right skills fo r the job. By Jon Gingerich

just more steady and measured,” said offers is unparalleled, if only for the fact he numbers speak for themselves. If Worldcom Americas Region Chair Todd that the client isn’t paying for all the other there’s one takeaway from this year’s Lynch. “In the past, there were times when offices but they’re getting all their best serv- Troundup of global PR network activ- membership would either go way up or way ices and expert counsel.” IPREX continues climb ity, it’s the indisputable fact that networks down, and there was generally a lot more have found a way to do more — much more uncertainty in the market coinciding with Combined partner revenues for IPREX — with less. Call it quality over quantity. these swings.” reached nearly $250 million during 2012, a The most likely reason is that networks Lynch, who is Vice President and big uptick from 2011’s revenues of $200 have grown increasingly savvy and dexter- Director of Public Relations at St. John and million, which similarly saw gains from ous within the protocols of their own self- Partners in Jacksonville, Florida, said that 2010’s $173 million. sustaining, fiercely self-reliant model, using going forward, Worldcom is “proactively The network maintains 75 partners in 119 a preexisting nexus of inner-network con- looking” to add partners in the Asia/Pacific offices across the globe. In a vein similar to tacts to share information, expert access and region, as well as markets in Latin America, Worldcom, IPREX future business opportunities with better India and China. also experienced a results. “These conversations are coming about slight dip in member- One of the benefits of being part of a in two ways. On one hand we’re proactive- ship this year, shed- global PR network has always been the ly searching for member firms, but a lot of ding three partner ability to offer clients global expertise while people are picking up the phone and calling firms in the U.S., retaining fluency in the nuances of local us. I’d say that for us, specifically, Latin while remaining flat markets. This is still the case. However, America is a good base, and has been for a in Europe, Asia, executives told O’Dwyer’s that networks few years, and we’re committed to finding Pacific and Latin and today have become more adept at utilizing and attracting talent within the Asia/Pacific South America. The region and EMEA (Europe, the Middle network recently Worldcom the skills and expertise of fellow firms, by Americas Region both diversifying their roster of partners and East and Africa) regions as well.” added new partners in Chair Todd Lynch relying on legions of thought leaders within When searching for additional partners, The Netherlands their ranks. The result is a culture of integra- Lynch noted that industry practice has (Creative Venue PR), tion that has grown increasingly pervasive become just as important — sometimes India (Percept Profile), and the U.S. (Susan within global networks, one that strength- more important — of a variable as geogra- Magrino Agency). ens existing ties and offers better services to phy. Part of the reason for this comes down IPREX Global President Kathy Tunheim their clients. to simple practicality: if a network current- said the network’s leaner roster has not Worldcom maintains lead ly maintains, for example, a tech agency in affected the noted strength of its ever-grow- The largest of the global networks, New York or a travel agency in Florida, it ing bottom line. Worldcom saw combined revenues for its doesn’t make sense to double up identical “It was a good year,” agency partners exceed $340 million in practice efforts in the same region. One Tunheim said. 2012, a bold surge from 2011’s compara- major benefit of operating a partnership in “We’ve grown by tively humdrum $227.5 million (which an increasingly shrinking world, Lynch only a couple of revealed a dip from the network’s com- said, is the fact that agencies willing to members, but what’s bined 2010 revenues of $264 million). The combine talents, resources and ultimately really important from network now claims a total workforce of tackle issues together can excel in ongoing our perspective is we 1,900 professionals in 125 offices, in 102 professional development to serve existing don’t measure growth markets across six continents. clients and attract new business. by how many mem- In the midst of these exciting figures, “That idea of getting the best practices bers we have, but we new partner gains lagged in 2012. from the different partners, that model is ask ourselves if we IPREX Global our DNA, it’s the very foundation of our have the right set of President Kathy Worldcom lost several members in the Tunheim U.S., Asia and Middle Eastern markets last partnership. I think that’s why more compa- partners to support year, while remaining flat in South and nies are buying into the network model. each other.” Central America. However, the network in There’s simply less question on whether it Tunheim, who is CEO of Tunheim October found itself gaining two new part- works anymore. The idea of having expert- Partners in Minneapolis, distanced IPREX ner agencies in Europe: Blumen Group in ise, key geographical location, senior lead- from the bigger-equals-better notion that Belgrade, Serbia, and Manifesto ership, entrepreneurial capabilities com- often pervades conversations on global Communications Group in Istanbul, bined with the agility of independent firms interconnectivity. Turkey. works well for us, as well as our clients. The Continued on next page “I think the growth we’re seeing now is recognition and value of the flexibility it 0

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“We’ve pivoted past the idea of building fluence of many different disciplines, so PRWA’s integrated philosophy of sharing seats,” Tunheim said. “The truth of it is, ultimately we should be offering many dif- resources across agencies. In a way, when you’re looking at America or Asia ferent services to as many different clients members consider themselves members you don’t need an office in every area. as possible. The more we can be at the fore- of each other’s firm. What you really need is a strong set of front of that discussion, the better. We’re “We’re looking to distinguish ourselves agencies that have competencies in that always looking for new people in markets not by simply being a referral network, region.” where we’re not currently represented.” but by developing branded products that Tunheim said PR firms with practices in Landis also said corporate responsibility will be commonly marketed by members energy/sustainability, social media, and continues to be a growing interest for the of PRWA around the world,” Feintuch healthcare (especially in the Americas) are network. Recently, after an annual member said. “I don’t run a consumer PR firm, but of current interest to the network. meeting in Cape Town, South Africa, mem- with PRWA I’ve got the support of 100 “We’re beginning to ask our partners bers of the network went to a nearby village people who excel in that discipline, so if which areas make more sense for every- and helped build a home for a family living a client comes along and I need expertise body. I would never say geography is in the area. in that area I can put a team together, and inconsequential, because it’s good to have “Corporate responsibility is going to be a this model really works well.” local intelligence in local markets, but priority for the network. We’re toying with “It’s never been our intention to com- increasingly it’s not the driving factor. It’s a several ideas in this area at the moment. It pete on size, but to have the best breed of relatively large and sophisticated conversa- might be volunteer efforts, or it might be independent PR firms focusing on client tion and I think we’re in the early stages of education, or it might be helping journalists experience,” Feintuch continued. “The it, but I think the key questions is: what in countries where they’ve been censored.” commitment members make when join- make sense for us to do together, as a net- PRWA offers new network, philosophy ing PRWA is a commitment in offering work?” The newest of the global networks, PR senior counsel and senior level experi- PRGN gains most new members World Alliance, has been around for only ence in everything we do.” PRGN has come a long way. The net- about a year. PRWA is the result of a Pinnacle shuts doors work, which recently celebrated its 20th merger between two previous networks, The oldest PR net- anniversary, now boasts 46 total independ- ECP Global Communications and IPAN work, Pinnacle made ent member firms, accounting for more (International Public Relations Agency headlines several than 1,100 PR professionals in 47 cities Network). Already, the new network months ago when it worldwide. boasts 20 members in 13 countries. was reported the net- PRGN gained more members than The network holds a strong European work appeared to Worldcom or IPEX this year, winning two presence — with 15 member firms in that have shuttered its new partners in Europe (The We Agency, region — as well as recent partners added doors. based in France, and Goodwill in Brazil and the U.S. Combined 2012 Founded in 1976, Communications, based in Hungary) as revenues for the partner firms were just the Minnesota-based PRGN President well as new members in Portugal (Global under $50 million. network had appar- David Landis Press), Chile (RumboCierto PRWA Chairman Perran Ersu, Founder ently been wracked Communications), Japan (Integrate of Persona Communications in Istanbul, with financial difficul- Communications), and a yet-unannounced Turkey, said the network has an interest ties and the subject of mass defections. new partner in South Korea. Member in virtually every market, but maintain a O’Dwyer’s in December reported that the growth remained flat in the Middle East and special focus on markets that have expe- network’s website was no longer opera- Africa regions, and the network lost two rienced economic growth in recent years. tional. partners in the U.S. China, Russia, India and South America Interestingly, shortly before closing its Combined revenues of PRGN partner are specific regions winning the net- doors Pinnacle appeared to be showing firms exceeded $110 million in 2012, not work’s attention. signs of a rebound, bringing its roster of counting revenues of new member firms. Going forward, Ersu reiterated claims partner firms back up “We’re really growing,” said PRGN by other network executives, saying to nearly 50 in 2012, a President David Landis. “I think the fact PRWA doesn’t maintain a geographical bold surge from its 31 that we’re expanding is a really good indi- focus nearly as much as finding the right member-count in cation about our incredible leadership team firms with whom they can share expertise 2011. This was prima- and the talent we have with some of the best and resources for the sake of meeting rily the result of a independent agencies in the business.” clients’ needs. strategic partnership Landis, who heads Landis “Right now we have great variety, and with European PR Communications, Inc. in San Francisco, one of the reasons we have such a great consortium 27 and said Asia remains an area of interest for the variety is we have firms that are strongn i More, which brought network, as does Africa and South and many different interest areas. We have a Pinnacle’s partner list PRWA Chairman Central America. More than anything, good spread that has allowed us to tackle in Europe from three Perran Ersu Landis said PRGN remains primarily a variety of issues. A few might take the in 2011 to 19 in 2012. focused on strategic, long-term planning. lead doing one thing, and a few might It had been hypoth- This means looking for new partners where take the lead doing something else,” Ersu esized that one reason for the network’s the network isn’t currently represented, in said. closure had to do with high membership disciplines that are exclusive to particular Henry Feintuch, Founder and President cost, which allegedly included a $5,000 markets. of PRWA member firm Feintuch initiation fee and quarterly dues of $1,000. “Nowadays clients don’t care where you Communications, said close business and In December, Pinnacle founding Partner live, they care if you have the expertise to personal relationships in the network Joe McCarthy told O’Dwyer’s that plans get things done,” Landis said. “PR is a con- have provided a culture conducive to are being drawn to revive the network. £

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Asia / Pacific Europe United States & Canada Nuffer, Smith, Tucker, Inc. — San Diego San — Inc. Tucker, Smith, Nuffer, Milwaukee — Morgan&Myers Dallas — Associates & Burns A. Michael McGrath/PowerPublic Relations & Comms. — San Jose Denver — Relations Public Linhart D.C. Washington, — Affairs Public KellenAdams Nashville — PR Bailey & Vaughn Katcher Angeles Los — Inc. Group, IW Jersey New Oldwick, — L.L.C. Affairs Public Holt Detroit — Relations Public Hermanoff Region Niagara Toronto, — Canada Enterprise Calgary — Inc. Associates, & Donoghue Cleveland — Eaton & Dix Orleans New — Communication Deveney Boston — Ink Corporate Angeles Los — Inc. Associates, Cerrell Toronto & Montréal — CASACOM Beach Virginia — Partners & Brickell York New & Chicago — Comms. Integrated Bliss Orlando — Hennessy Bitner Lauderdale Fort — Goodman Bitner JBP PR & Parliamentary Affairs — London, England Bulgaria Sofia, — Ltd. Janev&Janev Netherlands The Bussum, — Communications IvRM Belgium Brussels, — bvba InstiCOM Germany Munich, — GmbH Bailey Helga HBI Spain Madrid, — Albión Grupo Poland Warsaw, — Consultants Garwolinska Glaubicz Portugal Lisbon, — Associates & Vaz Cunha Norway Oslo, — Relations Public Coxit Italy Milan, — Objectives by Communication CBO Italy Milan, — S.p.A. Press Business Serbia Belgrade, — Ltd. Group Blumen France Paris, — Babel Wrights PR — Melbourne & Sydney, Australia Sydney, & Melbourne — PR Wrights Vietnam City, Minh Chi Ho — Vietnam TQPR Thailand Bangkok, — Ltd. Co., TQPR Malaysia Lumpur, Kuala — Bhd Sdn TQPR Japan Tokyo, — TOCS Korea South Seoul, — PRN Australia Brisbane, — Group Phillips Indonesia Jakarta, — PR Fortune India Delhi, & New Mumbai — PR Finese Japan Tokyo, — Japan Worldcom AZ. China Kong, Hong — Admiralty China Kong, Hong — Ltd. Consulting A-World Singapore — Ltd Pte Connections Asia-Pacific Global PR Partners 2013 Partners PR Global M. East Latin America & & Africa South America Wordsworth Communications — Cincinnati — Communications Wordsworth Buffalo — Collins Travers Angeles Los — Group Marketing PR Pollack The Albuquerque — Relations Public Group Garrity The Angeles Los — Company Bohle The Chicago — Image Tech City Kansas — Communications Word Sturges Honolulu — PR Yokota & Weiner Stryker Louis St. — Partnership Standing Jacksonville — Partners & John St. Philadelphia — Group Relations Public Simon Boston — Associates Schneider Baltimore — Communications Hillman Sandy Rochester — Communications Roberts Greensboro — Communications RLF Seattle — Relations Public Richmond Chicago — Inc. Communications Public Austin — Relations Public PetersGroup York New & Minneapolis — Beardsley Speer Padilla Vancouver — Inc. Communications Group Pace Phoenix — Ave Madison Off Lange 360 — Cape Town, South Africa South Town, Cape — 360 Lange U.A.E. Dubai, — Communications & PR Majlis Israel Aviv, Tel — Com&Sense Yucatan —Paris, France —Paris, Yucatan Russia —Moscow, Group Comm. Corporation YA Netherlands The Arnhem, — Kommunikatie Wisse Hungary Budapest, — Communications Próbako PrimeTimeKommunikation — Copenhagen, Denmark Republic Czech Prague, — Consulting PRAM Sweden Stockholm, — AB Partners & Oxenstierna Finland Helsinki, — Communication Medita Istanbul — Group Communications Manifesto Spain Barcelona, — Channel LF Switzerland Zurich, — AG Communication L&W Germany Düsseldorf, — GmbH komm.passion France Paris, — Keima England London, — Kaizo Realidades SA — Lima, Peru Lima, — SA Realidades Brazil Paulo, São — PLANIN Brazil Janeiro, de Rio — PLANIN LatinMediaComunicaciones Limitada — Santiago, Chile Colombia Bogotá, — Colombia Albión Grupo DiezInfomedia Consulting — Buenos Aires, Argentina Rico Puerto Juan, San — Group Square C Arvizu, Comunicacion Corporativa — Mexico City, Mexico Lange 360 — Cape Town, South Africa South Town, Cape — 360 Lange U.A.E. Dubai, — Communications & PR Majlis Israel Aviv, Tel — Com&Sense Junemagazine_Layout 15/30/132:47PMPage23

Europe United States & Canada Grisko — Chicago — Grisko Diego San — PR Gable Raleigh — French/West/Vaughan Chicago — Group Communications Flowers Francisco San — PR Fineman Columbus — Mortine Fahlgren Syracuse — Associates and Mower Eric Oak Royal — Relations Public Eisbrenner Spokane — Communications Hege Desautel Charlotte — Communications Crown City Kansas — Crossroads Honolulu — Pacific Communications Angeles Los — Sayre & Casey Indianapolis — Borshoff Orleans New — Fitzgerald Miller Beuerman Reliant Communications — Athens, Greece Athens, — Communications Reliant Portugal Lisbon, — Reis & Quintela Spain Madrid, — poweraxle Germany Berlin, — Affairs ORCA Denmark Copenhagen, — Operate France Paris, — NewCap Poland Warsaw, — Consulting Martis Finland Helsinki, — Consulting Manifesto Croatia Zagreb, — Consulting Madison Germany Dusseldorf, — communication brand m/e Italy Milan, — Communication Lead Austria Vienna, — Tomaschtik & Lang Estonia Tallinn, — Partners & Liiva Jugaste, Italy Milan, — Imageware Slovenia Belfast, — Ljubljana PR Futura Republic Czech Prague, — Media & Business Donath dcp Strategic Communication — Belfast, N. Ireland Netherlands The Amsterdam, — Venue Creative Norway Tonsberg, — Kommunikasjon Consilio England London, — Consulting Brevia Spain Barcelona, — Comunicación Arenalia England London, — Communications Abchurch Global PR Partners 2013 Partners PR Global

Latin America & South America Asia / Pacific Vehr Communications — Cincinnati — Communications Vehr Minneapolis — Tunheim Milwaukee — Group Trefoil Toronto — Inc. Group Communications The SusanMagrino Agency D.C. Washington, — International Davis Susan City Oklahoma — Saxum Rountree Group Integrated Communications — Atlanta Lauderdale Fort — Relations Public Grant Pierson Vancouver — Communicators Peak York New — Company + Makovsky Cambridge — Group LaVoie Dallas — Inc. Associates, + Peat Laurey Terrace Oakbrook — Communications JSH&A Boston — Agency HB Moines Des — West Associates & Hanser Whyte Corporate Affairs — Brussels, Belgium Brussels, — Affairs Corporate Whyte Ireland Dublin, — Relations Public Walsh Scotland Edinburgh, — Ltd Business Comms. The SurreyHouse Corporate Commn. Ltd — Esher, England Sweden Stockholm, — PR Spotlight Wilkinson Group — Sydney, Australia Sydney, — Group Wilkinson Malaysia Jaya, Petaling — PR Rantau India Mumbai, — Profile Percept Zealand New Auckland, — PR Pead China Kong, Hong — PR Newell Australia Alexandria, — Ideas Liquid Singapore — Relations Public Fulford India Mumbai, — Communication Concept Alexander Communications — Auckland, New Zealand Lever Latino America — Lima, Peru Lima, — America Latino Lever Brazil Paulo, São — Comunicação Item Mexico City, Mexico — Comunicación Dextera — New York New — Junemagazine_Layout 1 5/30/13 2:47 PM Page 24

Global PR Partners 2013

Adam Friedman Associates LLC — New York HMA Public Relations — Phoenix The Aker Partners — Washington, D.C. JMC Marketing Communications — Kingston, NY Buchanan Public Relations — Philadelphia Landis Communications Inc. (LCI) — San Francisco The Castle Group — Boston L.C. Williams & Associates — Chicago Leading the Travel Industry The Conroy Martinez Group — Miami The Ledlie Group — Atlanta

United United States & Canada CooperKatz & Co. — New York Pacifico Integrated Marketing Comms. — San Jose by Providing Professional Dye, Van Mol & Lawrence — Nashville energi PR — Montréal and Toronto Stevens Strategic Comms. Inc. — Cleveland Travel Services Since 1972 The Fearey Group — Seattle VPE Public Relations — Los Angeles GroundFloor Media — Denver Xenophon Strategies, Inc. — Washington, D.C.

Athenora Consulting — Brussels, Belgium Spider — London, England

Europe Cabinet Privé de Conseils — Geneva, Switzerland We Agency — Paris, France Coast Communications — Stockholm, Sweden YESwecan PR — Paris, France Cometis AG — Wiesbaden, Germany Currie Comms. Pty Ltd. — Melbourne, Australia CROS Public Relations — Moscow, Russia Integrate Communications — Tokyo, Japan Cullen Communications — Dublin, Ireland Mileage Communications Pte Ltd. — Singapore

Evident PR — Amersfoort, The Netherlands Asia / Pacific Perfect Relations — Delhi, India Global Press — Lisbon, Portugal Goodwill Communications — Budapest, Hungary Guerra Castellanos & Asociados — Mexico City, Mexico IDENTIA | PR — Buenos Aires, Argentina Industrie-Contact — Hamburg, Germany LVBA Comunicação — São Paulo, Brazil Multi Communications — Warsaw, Poland

Latin America & South America RumboCierto — Santiago, Chile Public Relations Partners — Brussels, Belgium SCR — Barcelona & Madrid, Spain HWB Communications Pty Ltd — Cape Town, S. Africa • Business Travel Consultants Sound Public Relations s.r.l. — Milan, Italy M. East & Africa The Content Fa ctory — Dubai, U.A.E. • Strategic Meetings Management • Government Travel Contractors Locations: • Over 200 Offices Worldwide North America Middle East • Competitive Online Booking Europe Europe • One-on-One Travel Consultation Asia • Leisure Travel Experts Find out about cruises sailing from New York Bauer PR GmbH — Vienna, Austria Panama PR GmbH — Stuttgart, Germany and other worldwide destinations Briefing Communications Ltd. — Zagreb, Croatia Pelham Bell Pottinger — London, England CAP & CIME PR — Paris, France Persona Communications — Istanbul, Turkey 888-333-3116 Comvision AB — Stockholm, Sweden Pielle Consulting Limited — London, England Kable Communication Finance — Paris, France NBS Communications — Warsaw, Poland Publico Kommunikation — Århus, Denmark NewMark FinanzKomm GmbH — Frankfurt, GermanySouth Rochat & Partners — Geneva, Switzerland America Nostus Communications & Events — Athens, Greece SECI — Milan, Italy 212-563-3500 • OmegaNewYork.com

U.S. U.S. & Canada VIANEWS Comunicação Integrada — São Paulo, Brazil

Africa World Headquarters • 3102 Omega Office Park • Fairfax, VA 22031• 703-359-0200

Feintuch Communications — New York Sphere Communication Strategique — Montreal Stanton Communications, Inc. — Washington, D.C. PR Africa International — Lagos, Nigeria Junemagazine_Layout 1 5/30/13 2:47 PM Page 25

Leading the Travel Industry by Providing Professional Travel Services Since 1972

Currie Comms. Pty Ltd. — Melbourne, Australia Integrate Communications — Tokyo, Japan Mileage Communications Pte Ltd. — Singapore Perfect Relations — Delhi, India

Guerra Castellanos & Asociados — Mexico City, Mexico IDENTIA | PR — Buenos Aires, Argentina LVBA Comunicação — São Paulo, Brazil RumboCierto — Santiago, Chile

HWB Communications Pty Ltd — Cape Town, S. Africa • Business Travel Consultants The Content Factory — Dubai, U.A.E. • Strategic Meetings Management • Government Travel Contractors Locations: • Over 200 Offices Worldwide North America Middle East • Competitive Online Booking Europe • One-on-One Travel Consultation Asia • Leisure Travel Experts Find out about cruises sailing from New York and other worldwide destinations 888-333-3116

212-563-3500 • OmegaNewYork.com World Headquarters • 3102 Omega Office Park • Fairfax, VA 22031• 703-359-0200 Junemagazine_Layout 1 5/30/13 2:47 PM Page 26

Over the years, COSMO has and meetings/conventions. Each of specifically reinforced its expertise our staff has a “passion for places” and industry experience in health- which creates a culture of collabo- care, and develops healthcare com- ration, idea sharing and a deep munication programs under desire to achieve the investment “COSMO Healthcare.” and visitor attraction objectives of COSMO was named Japan our client communities. DCI has Independent Agency of 2012 by offices in New York City, Los Campaign Asia-Pacific, and Angeles and Denver and global Japanese Consultancy of 2011 by offices through the TAAN network. The Holmes Report. In 2011, COSMO won the Asia-Pacific FEINTUCH SABRE Award for “Japan Campaign of the Year” for its COMMUNICATIONS American Medical Devices and Feintuch Communications’ Founder & President Henry Feintuch con- Diagnostics Manufacturers’ 245 Park Ave., 39th Fl. ducting a lecture on industry analyst relations for colleagues of the Association (AMDD) public New York, NY 10167 PR World Alliance meeting in Warsaw, Poland. awareness program. In 2011, CEO 212/808-4900 Kumi Sato was awarded “The Gold [email protected] Standard Award for Professional www.feintuchcommunications.com Group in the U.S.; Maitland in www.PRWorldAlliance.com Excellence” and the Asia-Pacific www.jumpstartglobal.com THE ABERNATHY the U.K.; Euro RSCG C&O in SABRE Award for “Outstanding France, Belgium and Dubai; Individual Achievement.” , President MACGREGOR Hering Schuppener in Germany; Henry Feintuch Llorent & Cuenca in Spain, Latin GROUP DEVELOPMENT International PR is rapidly America and China; becoming an oxymoron in the Hirzel.Neef.Schmid.Counselors in COUNSELLORS 21st century as businesses cope to Founding member of AMO Switzerland; SPJ in the make sense of the impact of the 277 Park Avenue, 39th Floor Netherlands; Porda Havas in INTERNATIONAL Internet, global wireless commu- New York, NY 10172 China; AD HOC Communication (DCI) nications and increasingly com- 212/371-5999 Advisors in Italy; and Springtime mon international travel. www.amo-global.com in Sweden. www.abmac.com 200 – 243 Queen Street West Eve ry local company can now Toronto, ON M5V 1Z4 be a player on the international AMO — the leading global COSMO PUBLIC 416/528-6102 @aboutdci scene — if they wish to be. We’ve www.aboutdci.ca network of strategic and financial RELATIONS successfully supported companies from more than 30 countries communications consultancies — Karyl Leigh Barnes, Managing was co-founded by Abernathy CORPORATION Partner/Tourism seeking to enter the U.S. market. MacGregor. AMO’s ‘best in Maureen Haley, Regional We help all types of companies class’ philosophy brings together Azabukaisei Bldg. Director/Canada — b-to-b; b-to-c; and b-to-any- local market leaders in financial 1-8-10, Azabudai thing else — adapt their brand communications with unrivalled Minato-ku, Tokyo Japan 106-0041 Development Counsellors and messages to local markets. knowledge of financial markets www.cosmopr.co.jp International specializes in eco- We help our clients enter world and cross-border transactions in +81 (0)3 5561-2911 nomic development and tourism markets with the resources of our global network — the PR World the key financial centers of Ms. Kumi Sato, President & CEO marketing and public relations. Europe, Asia and the Americas. Mr. Ryuji Kondoh, COO Known as “The Leader in All iance — a rapidly growing With more than 500 profes- Marketing Places,” DCI has international alliance of premier sionals operating globally, AMO COSMO is one of Japan’s fore- worked with more than 400 coun- independent communication con- provides sophisticated communi- most independent strategic com- tries, regions, and cities to create sultancies which are particularly cations counsel for M&A and munications consultancies. For “place marketing” campaigns that adept at coordinating multina- capital market transactions, over 50 years, COSMO has used its have driven investment and tional projects and programs. media relations, investor relations global experience and domestic tourism since 1960. The firm’s For start-ups and multinationals and corporate crises. Described expertise to deliver communica- Toronto office spearheads destina- targeting the U.S., Latin America, by the industry publication The tions solutions for multinational tion marketing throughout Canada, Scandinavia and beyond, our Holmes Report as the “leading and Japanese companies. COSMO with place marketing teams who JumpStart Global Advisors sub- network for international M&A develops integrated campaigns design and implement headline- sidiary provides a set of business activity,” AMO consistently involving media outreach, crisis generating media relations cam- services that allow them to enter rank s at the top of M&A league and issues management, advocacy paigns; social and digital marketing the market quickly and efficiently tables of financial PR advisers by and public affairs, key opinion programs; special events for con- — everything from market assess- Mergermarket. leader research, corporate position- sumers, investors, media and travel ment and strategy, business estab- AMO is comprised of the fol- ing, consumer communications, industry representatives; marketing lishment, legal, financial, account- lowing market-leading network corporate social responsibility, and and sales campaigns designed to ing, HR, and back-office support to members: the development of editorial mate- influence investors, visitors, travel recruitment, sales/distribution/chan- The Abernathy MacGregor rials. trade (tour operators and agents) nel and partnership development to

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localized marketing, branding and partners with the infrastructure and public relations. support they need to win and manage such assignments. FLEISHMAN- Clients choose IPREX partners for their influence in their own HILLARD markets and because our management systems make the diversity 200 N. Broadway and dynamism of owner-managed St. Louis, MO 63102 agencies work to their advantage. www.fleishmanhillard.com Agencies join IPREX for the assurance of high-caliber work for Dave Senay, President and CEO their clients in remote markets, and Jack Modzelewski, President of the Americas to develop their businesses in a John Saunders, Regional collegial environment through best President, EMEA practices, joint marketing and a Lynne Anne Davis, Regional common program management President, APAC language. Partners communicate through (L-R): Mayo VP George McQuade, Toto lead singer Bobby Kimball, FleishmanHillard is the an intranet, review each other’s Brad Smulson of OBOL, Mayo President Aida Mayo, and Ernie world’s most complete global work rigorously and meet often. Singleton of Singleton Entertainment on the red carpet for the inter- communications firm, specializ- Visit www.iprex.com for more national launch of Global Onslaught Australia-U.K. ing in public relations, public information. affairs, marketing, paid media, Photo by MAYO Communications transmedia and social content. MAYO FleishmanHillard delivers on the “power of true,” reflecting the COMMUNICATIONS live at a benefit for Operation Native American Network, The firm’s high values and unique INTERNATIONAL Blankets of Love animal charity. Canadian American Network, The ability to guide clients through a MAYO also launched China’s Korean American Network, and world demanding unprecedented largest telecommunications com- The Australian American authenticity and transparency. 7248 Bernadine Ave., 2nd Floor pany US Data Center in the heart Network. With headquarters in St. Louis, West Hills (Los Angeles), CA 91307 of the business district in down- the agency’s global network 818/340-5300 town Los Angeles. China Telecom MSLGROUP spans more than 80 offices across 818-6189229 Americas (ChinaTelecom.com), Fax: 818/340-2550 which provides Internet, high 29 countries, with affiliates in 42 Subsidiary of Publicis Groupe S.A. [email protected] speed access and storage for additional countries, delivering MAYOCommunications.com 375 Hudson St, 14th Flr. seamless service and effective Entertainment Div: Fortune 500 companies and links New York, NY 10014 results worldwide. The firm, LAentertainmentPublicity.com Chinese business with USA. 646/500-7600 founded in 1946, provides expert- The World Networks (theworld- [email protected] ise across diverse practices and Aida Mayo, President networks.com) has retained www.mslgroup.com sectors, as well as an George McQuade, Gen. Mgr/VP MAYO Communications for inter- International Advisory Board of national awareness and publicity. MSLGROUP is Publicis renowned experts and a network MAYO Communications The World Networks, includes: Groupe’s flagship specialty com- of specialty brands. Regularly International is a full service, glob- The French American Network, munications, public relations and recognized as an employer of al public relations firm based in The Chinese American Network, engagement network. The choice, the agency’s professional LA with offices in New York, San The Japanese American Network, agency works as a trusted advi- development sets the stage for a Diego, and international offices in The Latin American Network, The sor, master storyteller and source transformative professional expe- Buenos Aires, AR and Israel. Russian American Network, The for unbound creativity and value rience. FleishmanHillard is part Founded in 1995, MAYO has been Indian American Network, The in the always-on conversation. of DAS, a division of Omnicom offering international publicity for African American Network, The MSLGROUP is the industry’s #4 Group Inc. 10+ years. MAYO’s Entertainment Jewish American Network, The largest global agency and the Div. offers movie, TV show and Persian American Network, The largest agency in China, India and IPREX music PR. The advancement of Italian American Network, The Continued on page 28 technology and the rise in interna- Armenian American Network, The 0 tionalization of business have 414/755 2170 [email protected] reduced the global borders and [email protected] opened doors for launching companies from China to Australia and David Watson, Executive the United Kingdom. Director Late last year, MAYO launched Carol Clinkenbeard, Global an Australian-UK online music Administrator platform — GlobalOnslaught.com in Hollywood with USA concert IPREX is a $200 million net- tours in California and Nevada, work of communication agencies, CA. The global music service with 1,500 staff members and 100 launch and tour included new offices worldwide working across artists — Annie Lovell, U.K. the spectrum of industry sectors March Into Paris, October Rage and practice disciplines. (opening act for Bon Jovi). The red We offer our partners’ clients carpet launch event included The seamless world-class advice and Sledge Grits Band, Toto’s lead A session at the IPREX Annual Partner Meeting, Shanghai, May 2013. implementation — and we provide singer Bobbi Kimball performing

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PROFILES OF INTERNATIONAL PR FIRMS

Ogilvy Public Relations Public Relations Global (Ogilvy PR) is a global, multi-dis- Network (PRGN) to deliver tar- ciplinary communications leader geted public relations campaigns operating in more than 85 markets in more than 80 markets around across 6 continents. We blend the world. With revenues of proven PR methodologies with more than $110 million (USD), cutting edge digital innovations to PRGN is among the world’s top craft strategic programs that give four public relations networks. clients winning and measurable PRGN harnesses the resources results. Founded in 1980, the of 47 independent public rela- company serves a full spectrum of tions firms and more than 800 corporations, industry trade asso- communications professionals. ciations, government agencies Visit PRGN online at: and not-for-profit clients through www.prgn.com or call 877-900- Members of the Public Relations Global Network at a recent meet- seven practice groups: brand mar- 3366. ing in Cape Town, South Africa. keting, corporate, healthcare, public affairs, social marketing, PR WORLD technology and Social@Ogilvy, & Talent, Consumer, Events, our global, cross-discipline team ALLIANCE MSLGROUP Financial Communications, of social experts from across all Continued from page 27 Healthcare, Public Affairs, of Ogilvy’s businesses. www.PRWorldAlliance.com 0 Reputation Management & One key to our success has Corporate Communications and been the ability to foster strong Board of Directors: Social Media. Through Schwartz working relationships across Perran Ersu, Chairman (Turkey) in EMEA. We’ve been recognized MSL, MSLGROUP offers a lead- office locations worldwide, so Henry Feintuch, Vice Chairman, as best-in-class in Asia, China and, ing technology capability and that the right skills and experience (U.S.) most recently, Germany. expertise. The agency’s work in are brought to bear on every client Catherine Kablé(France) The agency’s client roster purpose — called PurPle — was program. This cross practice, Anna Krajewska (Poland) includes Microsoft, GM, PayPal, recognized as PR Service of the cross office approach allows us to Lars-Ola Nordqvist (Sweden) Emirates and Eli Lilly. It produces Helena Stamou (Greece) Year for North America. Its work most effectively serve clients Peter Walker (U.K.) some of the world’s most important in Conversational Storytelling — whose businesses are multina- events, such as the World sales training and corporate posi- tional in scope. Clients such as Economic Forum in Davos and PR World Alliance, with organi- tioning — for corporate and finan- Ford, DuPont, Diageo, Grohe, zational roots going back to 1988, elsewhere around the world, and cial services clients was recognized City of Chengdu, FM Global, the Annual Women’s Forum for the is an international network of pre- as one of the top PR inventions of Bulova, Mexico Tourism Board, mier independent communication Economy and Society in Deauville, the year. LG Electronics and Unilever have France that involves the participa- consultancies. Partners are careful- experienced the value in working ly selected and represent estab- tion of 1,300 business and political with Ogilvy PR across multiple leaders from more than 80 coun- OGILVY PUBLIC lished, respected and accomplished regions. More information is firms with a solid reputation for tries. RELATIONS available at: www.ogilvypr.com. In North America, it has devel- producing superior results for clients. oped acclaimed work for Shriner's PUBLIC RELATIONS Hospital for Children and National The Chocolate Factory The key difference between PR Grid communications around 636 Eleventh Avenue GLOBAL NETWORK World Alliance and other interna- New York, NY 10036 tional groups is its individual and Hurricane Sandy. Its work with 212/880-5200 various household, oral care and (PRGN) collective commitment to profes- www.ogilvypr.com sionalism, integrity and the highest digestive wellness brands has been [email protected] award-winning. The agency has 1991 Crocker Road, Suite 500 ethical standards. It is also the assurance that all campaigns are eight global practice areas: Brand Christopher Graves, Global CEO Cleveland, OH 44145 440/617-0100 ext. 201 overseen by the owners and senior Fax: 440/614-0529 practitioners of partner firms. That [email protected] assurance applies to all client www.stevensstrategic.com engagements — from the smallest project to the most complex multi- 1388 Sutter Street, #901 San Francisco, CA 94109 national efforts. 415/561-0888 ext. 2308 The 20 member, 19-country net- Fax: 415/561-0778 work encompasses public relations [email protected] companies and offices in North www.landispr.com America, South America, Europe, Asia and Africa with offices and Edward Stevens, APR, joint venture partners in Pakistan, President, Stevens Strategic Communications, Inc. India and China. The network continues to seek new members in David Landis, President, PRGN; strategic locations. President, Landis PR World Alliance provides In April 2013, PRWA held its semi-annual general assembly in Communications, Inc. clients with an extensive depth of Warsaw and Crackow, Poland. Pictured here (L to R) is the organi- knowledge in individual countries zation’s board: Catherine Kable (France); Lars-Ola Nordqvist More than 20 years of as well as a solid understanding of (Sweden); Perran Ersu, Chairman (Turkey); Anna Krajewska Connected Thinking. Globally. the dynamic multi-national mar- (Poland); Henry Feintuch, Vice Chairman, (U.S.); and Peter Walker More than 1,000 clients across ketplace. The network offers strate- (U.K.). Not pictured: Helena Stamou (Greece). six continents depend on the gic communication, public rela- combined resources of the tions and public affairs counsel,

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new product launch and promotion, offices in 81 countries around the specialized services across various social media programs and more. As one of the largest independ- world. The firm’s reputation is built functions within the healthcare, ent global communications agen- on its deep commitment to client financial, consumer and technolo- ROGERS & COWAN cies, Ruder Finn employs approxi- service, creativity, collaboration gy spaces including internal and mately 500 people globally and and engaging stakeholders in new external communications, advoca- over 190 professionals in the U.S., and creative ways to build brands cy relations, medical communica- Pacific Design Center 8687 Melrose Ave., 7th Floor and is uniquely positioned to pro- and reputation. tions, social media, analytics, dig- Los Angeles, CA 90069 vide clients with global perspec- Weber Shandwick works with ital and creative. 310/854-8117 tive, insights and resources, yet governments and multilateral insti- WCG’s mission is to be the [email protected] small enough to bring the excep- tutions on global issues such as future of positive communications www.rogersandcowan.com tional client service, creativity and development, foreign policy, cli- by continuously staying ahead of www.rogersandcowan.co.uk innovation of a boutique agency. mate, security and defense. The the client’s ever-changing environ- As one of the only communications firm also advises multinational cor- ment. While WCG has always Tom Tardio, CEO agencies co-headquartered in New porations, foundations and NGOs depended on its qualitative expert- , EVP Nikki Parker York and China, Ruder Finn brings in support of their global agendas. ise, the team recognizes ROI is a distinctive east-west perspective Weber Shandwick’s global net- becoming increasingly important. Rogers & Cowan is the leading to global businesses. work includes strong public affairs By combining their expertise with entertainment marketing and PR With an on-the-ground presence teams in the world’s leading politi- predictive analytics, WCG offers agency with offices in Los Angeles, in Boston, San Francisco, cal, media and financial centers. clients strategic and insightful New York and London. Our Washington, D.C., Basel, London, The firm has won numerous solutions. International Film team works with Brussels, Beijing, Guangzhou, awards for innovative approaches The team continues to evolve filmmakers, producers, financiers, Hong Kong, Shanghai, Singapore, and creative campaigns including their analytics offering to enable an distributors, film commissions and Bangalore, Mumbai, and New both The Holmes Report’s 2012 evidence-based ‘communications filmmaking talent from around the Delhi, Ruder Finn provides the Global Agency of the Year and the engineering.’ In April 2013, Mettle world to spearhead their interna- hands-on experience of a local bou- “Most Creative PR Firm in the Consultancy joined the team, tional publicity campaigns tique agency with local expertise World,” based on the agency’s first- offering in-house proprietary ana- throughout the lifetime of their and experience in health & well- place finish in its “Creative Index.” lytics to provide key insights into project. We provide clients with ness, corporate and public trust, In addition, Weber Shandwick was stakeholders’ behavior and help extensive knowledge of the U.S. technology and innovation and named PR News’ Digital PR Firm inform clients’ decisions. and international film industries consumer lifestyle. By aligning of the Year, The Holmes Report’s and have close relationships with deep insight and understanding Healthcare Agency of the Year and WORLDCOM leading distributors and media with expert implementation across a PR News CSR A-List agency. around the world. traditional and social media chan- The firm has also been recognized PUBLIC Our team offers strategic counsel nels, we help clients manage their as a “best place to work” around RELATIONS GROUP on the development and execution most pressing challenges, from the world and the agency’s client of corporate PR campaigns to posi- marketing products and services to initiatives have been internationally tion our clients’ within the film managing reputation. Ruder Finn’s acclaimed. 500 Fifth Avenue, Suite 300 industry, manage international PR expertise spans corporate reputa- Weber Shandwick is a unit of New York, NY 10110 of theatrical film releases and pro- tion and media counsel, branding, 800/955-WORLD (9675) The Interpublic Group of (US and Canada) mote foreign production facilities. executive thought leadership, Companies (NYSE:IPG), which is Additionally, we manage media 212/286-9550 financi al communications, among the world’s largest advertis- [email protected] activities for our clients’ projects at employee engagement and internal ing and marketing services organi- major film festivals and markets, communications, marketing com- zations. Stephanie Paul, Group Chair including Cannes, Venice, AFM, munications, social engagement, Todd Lynch, Americas Chair Mifed and MipTV as well as exe- public affairs, and crisis and issues Daisy M. Guthin, APR, Chief cute media and entertainment influ- management. Underpinning all of WCG Operating Officer encer outreach campaigns to build our offerings is a consistent focus awareness and participation at film on digital content and strategy 16 High Holborn Worldcom Public Relations London WC1V 6BX festivals and markets such as through our award-winning full- Group is the world’s leading part- Edinburgh, Zurich, Krakow, Aruba, service digital practice, RFI United Kingdom www.wcgworld.com nership of independently owned Bahamas, Trinidad & Tobago and Studios. Clients include Novartis, public relations firms with 125 Marche du Film. AstraZeneca, Hermès, Genentech, Jim Weiss, Chairman and CEO offices in 102 cities on 6 conti- Infor, Citi, PepsiCo, Kering, Gail Cohen, Global Practice nents, more than 1,900 employees, RUDER FINN, INC. Bloomberg , and Mondelēz Leader and combined revenues of more International. Christine Tadgell, Managing Dir. than $343 million in 2012. Through Worldcom, the 301 East 57th Street WEBER WCG is an independent global strongest, most capable independ- New York, NY 10022 communications consultancy 212/593-6400 SHANDWICK ent firms serve national, interna- [email protected] focused on providing insightful tional and multi-national clients and integrated solutions to its while retaining the flexibility and Kathy Bloomgarden, CEO, 919 Third Avenue clients. Since opening in 2008, client-service focus inherent in Ruder Finn New York, NY 10022 WCG has grown rapidly to over independent agencies. Michael Schubert, Chief 212/445-8000 30 employees and nearly four mil- Worldcom firms’ clients have Innovation Officer, Ruder Finn www.webershandwick.com lion in revenue (GBP), with an on-demand access to in-depth Louise Harris, Chief Global increase of 86% just last year Andy Polansky, CEO communications expertise from Strategist, Ruder Finn alone. WCG is part of the W2O professionals who understand the Jean-Michel Dumont, Chairman, Gail Heimann, President Jill Murphy, Chief Business Group, which includes over 300 language, culture and customs of Ruder Finn Asia employees worldwide with offices Elan Shou, Managing Director, Development Officer the geographic areas in which they Ruder Finn China in both North America and operate. Worldcom is an invalu- Nick Leonard, Managing Weber Shandwick is a leading Europe. able source for the local advan- Director, Ruder Finn UK global public relations agency with WCG provides integrated and tage, worldwide. £

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REPORT Sports star “comes out” to potential branding boon Washington Wizards center Jason Collins made history in April when he became the first openly gay working athlete in the history of the major sports leagues. The headlines surrounding Collins’ personal admission have taken the sports world by storm. According to some marketing experts however, the story could also boost Collins’ profile in the court of corporate endorsement. By Jon Gingerich

my friend, Jason Collins, for showing all of in an endorsement frenzy: “… it may not hirty-four-year-old Collins, who for- us what leadership looks like.” be just NBA teams that look to add him to merly played for the Boston Celtics, In a prepared statement, NBA their mix. If Collins plays again in 2013, Tdropped the bombshell news in a Commissioner David Stern wrote: “Jason other brands could also flock to him for bylined, April cover story editorial in has been a widely respected player and sponsorships,” the editorial read. “…there Sports Illustrated. teammate throughout his career and we are is likely no shortage of companies that The article begins: “I’m a 34-year-old proud he has assumed the leadership man- would seek to use him in a positive, uplift- NBA center. I’m black. And I’m gay. I did- tle on this very important issue.” ing message.” n’t set out to be the first openly gay athlete Outside the sports world, words of sup- Collins already holds a coveted endorse- playing in a major American team sport. port poured in from President Barack ment deal with Nike. In a brief press But since I am, I’m happy to start the con- Obama, First Lady Michelle Obama, and release regarding the issue, the sneaker versation.” former president Bill Clinton, among oth- giant simply said, “Jason is a Nike athlete. The 12-year NBA pro had shown sup- ers. We are a company committed to diversity port for gay rights in the past. During his and inclusion.” stint with the Boston Celtics during the In an April 29 Adweek editorial, the trade 2012-2013 season he played under the jer- opined on this partnership by stating: “On sey number 98, in honor of Matthew a pure advertising level … Nike seems like Shepard, whose hate crime murder the perfect company to push the occurred in 1998. Collins remains a free Washington Wizard center’s courageous agent for the 2013 season. public stance as an opportunity to further Shot heard around the world solidify the brand’s recent history of sup- Most who are unfamiliar with profes- porting gay rights.” sional basketball never heard of Jason Indeed, Nike already seems well poised Collins before April. That changed imme- to graft itself to this message. The sports diately upon publication of the Sports apparel company had recently signed Illustrated article; the day the story went Women’s National Basketball Association live, the Collins story drew nearly four mil- player Brittney Griner, who is openly gay. lion visitors to the SI.com site, a record for In 2012, Nike hosted a LGBT sports sum- the sports publishing company. mit to raise awareness regarding homopho- According to a May 3 analysis on tech- bia in sports. nology site The Salesforce Marketing “Coming out as the first gay man in the Cloud, mentions of Jason Collins through- NBA was a huge boost to Jason Collins’ out social media channels reached nearly a brand,” said Matt Tumminello, President million hits in just over four days. Twitter of Target 10, one of the leading gay and accounted for a majority of the activity — lesbian marketing and communication almost 90% — though there were more Jason Collins, center for the Washington agencies in the country. “It can only than 8,000 blogs mentioning the incident Wizards, shocked the world in this April increase his endorsement value, but the and more than 30,000 Facebook posts on Sports Illustrated cover story, when he ofﬁ- question is how will he be used and what the subject. cially becoming the ﬁrst openly gay active for? Companies that want to attach them- Moreover, public sentiment surrounding athlete in the NBA. selves to Jason Collins will do so because the news seemed to be overwhelmingly they like what he represents — breaking Alley-oops for branding possibilities positive. Sentiment analysis by The new ground, bravery, equality, strength of Salesforce Marketing Cloud showed As cathartic as the admission may have character. This is true for any category, not Internet postings associated with Collins been for Collins, his highly publicized just sports.” contained statements that were deemed coming out story may offer more than a Tumminello continued: “Our nation’s about 70% positive. mere sense of personal relief. Already, slow crawl toward equality for LGBT peo- Positive responses reverberated within marketing professionals are hypothesizing ple has turned into a sprint over the last two the sports world as well. In reaction to the how the move may bode for his endorse- years, so his timing was perfect. Most news, Kobe Bryant tweeted, “Proud of ment profile, as corporate brands may line Americans now reject the idea of anyone of @jasoncollins34. Don’t suffocate who u r up in an attempt to attach themselves to this us being less equal or having less rights. because of the ignorance of others,” and narrative. Combine this with the fact that he’s a Shaquille O’Neal wrote, “Character is An April 30 PR News editorial posited respected player and well-liked and you found in those who lead. I am so proud of that Collins’ recent coming out could result have a recipe for success.” £

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Major changes sweeping through Hispanic market A wave of new trends affecting a growing and quickly more U.S-born, and more educated than diversifying Hispanic demographic portends major ever before. The second is geographic, changes that marketing pros with a multicultural practice as the Hispanic population rapidly shifts should be aware of. to new parts of the U.S. The By Jose Villa Southeastern U.S. in many ways is the new hotbed of Hispanic population noticed a steady increase in the amount growth. Finally, anytime you have a hen you’re in the business of of Hispanic creative running in general- population of 50 million people spread anything — whether it’s sell- market media over the last two years. all over a country as vast as the U.S. Wing cars or building houses — Not to mention the crossover, cross-cul- from 20-plus different countries, simple you often get caught up in the day-to-day tural work that seems to be growing in psychographic segmentation models and lose sight on the changes going on prominence, most of which is targeting simply to start to break. around you. It happens to all of us. It’s the younger millennial groups. I know from Hispanics are shifting towards new old adage of not being able to see the for- my own new business experiences dur- media. est for the trees. ing the last year that more brands are We’ve all seen the reports on Hispanic This also happens to those of us who expressing an interest in consolidating over-indexing on digital device adop- work in Hispanic marketing. We’re so and integrating this general market and tion. I’ve mentioned this many times busy trying to launch the next client Hispanic advertising. I think we are on before based on my anecdotal observa- campaign, or land the next new business the precipice of a huge shift in the ad tions of Hispanics pitch, we’re too busy putting together business. adopting advanced that media plan, or writing that brief, Growing trend towards retroaccul- digital technologies. that we don’t have the time — or more turation and increased bilingualism. The last few months importantly, the spare attention — to Maybe I am looking at a skewed sam- I’ve seen it more. As stop and look at the changes happening ple — as the Hispanic parent of two an example, I was at a all around us. We miss some of the young children — but I continue to be construction site a things happening right in front of us that amazed at how many parents, most of few weeks back can tell us a lot about where things are them either second or third generation where a group of going in our industry, with our con- Hispanics, are raising their children to Spanish-dominant, sumers, and with the culture we so often be bilingual or speak Spanish first. We recent immigrant Jose Villa try to influence on behalf of our clients. all know retroacculturation is a real Hispanic men were Here are six changes I’ve been notic- phenomenon that has been around for all listening to ing around me and what I think they many years. However, I venture to say Spanish music on the job site — via portend for the future of Hispanic mar- retroacculturation is taking hold faster Pandora running on a smartphone con- keting. and spreading more rapidly than ever nected to a mobile speaker unit. I antici- The multicultural market now before. You need only look at the explo- pate a huge shift in media consumption often implies the Hispanic market. sion in availability of bilingual chil- behavior by Hispanics toward personal- Am I the only person who’s noticed dren’s books for a supporting data point. ized, digital and mobile media channels. that term “multicultural” is increasingly With this adoption of Spanish comes an The market is now evolving faster becoming synonymous with Hispanic? increased attachment to Hispanic cultur- than its marketers. It wasn’t that long ago that the term al traditions — whether they are food, These observations may not consti- multicultural marketing referred to an music, or family dynamics. I think the tute a sound scientific experiment from organization’s marketing programs cohort of second and third generation which to make pronouncements about aimed at a variety of minority or non- Hispanics coming of age during the next an entire industry. However, they pro- white groups, such as African- 10-15 years in the U.S. will look very vide directional trend lines that the Americans, Asians, and others. It’s hard different than their counterparts 20 Hispanic market is evolving faster and to deny the slow but steady decline in years ago. changing more fundamentally than it African-American focused marketing Increased diversification of the ever has before. The same can be said of efforts over the last 15 years. While the Hispanic market: demographic, geo- the general market and the typical Asian population has grown rapidly graphic, psychographic. American consumer. However, when over the last 20 years, it has been unable All Hispanic marketers bemoan the you look at the mainstream marketing to climb into that number-two spot past tendency to portray the Hispanic market industry, and compare it to the Hispanic the behemoth that seems to be eating up as monolithic. Hispanics come from marketing industry, you see a major gap all the “multicultural” budgets — the more than 20 different countries, with in innovation. I worry that our industry Hispanic market. distinct cultural, ethnic and national of so-called “Hispanic marketing” The lines between mainstream and backgrounds. However, I’ve noticed the experts is not keeping up with the Hispanic marketing have blurred. differences in the Hispanic market Hispanic market, and doing a huge dis- Remember the Spanglish Bud Light growing at what I consider to be a faster service to the growing number of organ- spot, developed by a Hispanic agency pace than ever before. izations now looking to tap into it. that ran during the Super Bowl a few The first is demographic, as the Jose Villa is President of Sensis, years back? That was a big deal. I have Hispanic population is getting younger, headquartered in Los Angeles. £

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REPORT When multicultural marketing turns into a PR crisis

It happens all the time. A well-intentioned advertisement featuring a risqué or off-color message unintentionally results in public outrage due to being insensitive or, in some cases, downright offensive. Here’s how enlisting a multicultural PR agency to work in tandem with clients’ ad departments can prevent this disaster from happening again. By Lisa Skriloff

in a garage. He doesn’t succeed, because South Hackensack, New Jersey. “When hat public relations profes- the car he used for the suicide attempt is an ad comes into question, such as the sional wouldn’t like to report a zero-emission Hyundai. VW, Coca-Cola and Mountain Dew ads, Wthat their company’s news General Motors’ recent Chevrolet Trax it becomes clear that a specialized multi- was picked up by CNN, ABC News ad, set in the 1930s, according to The New cultural agency was not utilized.” Nightline, AP, USA Today, The New York York Times, “featured a modern remix of Elaine Meryl Brown, co-author of “The Times, The Wall Street Journal, Fox a song from that era that included refer- Little Black Book of Success: Laws of News and even the Daily Mail U.K., ences to Chinese people using phrases Leadership for Black Women” said, “I MTV News, The Hollywood Reporter like “chingching, chop suey.” have to question and Adweek? A McDonald’s transit poster ad showed whether or not there Sounds great, but just this year, there a woman with her head buried in her was a multicultural have been plenty of instances where pub- hands, accompanied by the line, “You’re senior executive in lic relations professionals were caught off Not Alone: Millions of people love the the room when the guard when their clients’ advertising Big Mac.” Below was an 800 number — decision making departments created commercials that to McDonald’s corporate offices. process took place to backfired, causing controversy, outrage Kmart attempted to be cheeky with its greenlight the and retractions. “Ship My Pants” ad campaign, which Mountain Dew com- Is any press good press? amused more than 10 million YouTube mercial which is bla- Multicultural Marketing News asked viewers. Apparently the humor didn’t go tantly racist and in Lisa Skriloff public relations and advertising experts over so well with the conservative poor taste. The to comment on a spat of controversial Christian American Family Association. images and message commercials released in 2013, and to dis- Coca Cola’s most recent SuperBowl ad not only overshadow the product, it cuss how the dual departments of adver- drew wide complaints and criticisms from diminishes it.” tising and PR can work more closely the American-Arab Anti-Discrimination “A crisis happens when advertisers together to react quickly to such a situa- Committee, as well as an LGBT market- behave badly,” explained Matt tion — or better yet, avoid problems in ing firm, for its portrayal of characters pit- Tumminello, President of Target-10 in the first place. ted against each other in a desert race. The New York. “But what happens when con- Controversial commercials of 2013 joke was lost on many, as Coca Cola was sumers do? Last year, JCPenney retained Rather than attract brand awarenesss later forced to explain that the ads were Ellen DeGeneres as a spokesperson for and increase return on investment, this intended to contain plays on characters the company, angering anti-LGBT organ- year’s crop of controversial commercials featured in popular films such as ization One Million Moms, which took to resulted in mass consumer outrage. “Lawrence of Arabia,” “Mad Max” and social media and launched a boycott. Not Instead of being labeled “creative” or “Priscilla Queen of the Desert.” long ago, this kind of backlash would “award winning” by the industry, they USA Today recently reported that strike fear in advertisers and very few were lambasted as racist or misogynistic. Volkswagen’s commercial “about a would consider associating their brand In some cases, critics said they made light happy-go-lucky white guy who tells with an LGBT person but times have of depression, suicide, even violence office mates to be happy in a Jamaican quickly changed. Instead of reversing against women. accent” has been criticized by some. course, JCPenney doubled down. The As Ron Campbell, President of However, the Jamaica Tourist Board retailer’s next move was to feature same- Campbell-Communications, said: “Bad quickly praised the “Get Happy” ad, cit- sex parents a few months later in the com- press always seems to gain more traction ing the welcome attention bestowed upon pany’s spring catalog for Mother’s Day than good news. Particularly when it Jamaica. The Jamaica Tourist Board then and Father’s Day. The public rallied comes to cultural faux pas.” created a “Get Happy in Jamaica” promo- behind JCPenney and Ellen, millions of Here are just a few highlights (low- tion of its own, with free nights and dis- favorable news impressions were generat- lights?) from this year’s universally counts at hotels. ed from the controversy, and One Million denounced commercials: So, what to make of these commercials Moms became a late night TV punch- PepsiCo aired a commercial featuring a and the subsequent backlash they line. The crisis, it turned out, was for waitress who was beaten up for running received in the court of public opinion? those who oppose diversity and LGBT out of Mountain Dew and later threatened “In some of these instances, in particu- equality.” while viewing a lineup of African lar the Mountain Dew ad, I see a huge dis- Preventing further crisis American men (among them in the lineup connect between the ad creators/writers How can public relations pros and was a talking goat). and any sort of PR or multicultural guid- advertising departments work closely A Hyundai U.K. ad featured a man try- ance,” said Karen Sinisi, Director of Sales Continued on next page ing to commit suicide by running his car and Marketing at Ethnic Technologies in 0

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together to prevent these types of disas- ings of what each of the functions do.” will be more synergistic with unified mes- ters from occurring again? Tumminello claimed that PR teams saging — and greater exposure. In addi- According to Tru Pettigrew, CEO and should “always be included in discus- tion to synergy and consistency in mes- Founder of Tru Access in Cary, North sions when a creative execution is being saging, the smarter ad agencies rely on PR Carolina, “Potential damage control is developed.” It’s their job to keep compa- to ensure that creative campaigns can often only reactive unless the message or nies safe from a communications crisis, gather earned media, that there won’t be content is obviously offensive,” he said. he said, and they can help alert the adver- any controversial, negative associations “The problem with that is, if the members tising teams to any unintended risks. for the campaign and to create more con- of your PR team, or any other agency “At a minimum, PR teams should sumer conversations online.” partner for that matter, are not in tune know about any advertising before it hits “Many creative directors don’t like PR enough or aware enough of the real atti- so they are not caught off guard if any pros having an opinion on the creative — tudes, opinions, issues and influences of problems were to arise,” he said. and many of them have suffered a boycott diverse cultures, then they will not see the Ron Campbell, President and Chief to the campaign or negative press as a offense until it’s too late. The answer Strategist of Campbell-Communications result many times,” said Roxana Lissa, to remedy these potential PR fiascos is to in New York, said it’s “not a requirement” Founder of RL Public Relations and embrace diversity and establish cultural that PR and advertising departments work Marketing, which has offices in New chemistry across all business units together to assess the risk of a commercial York and Los Angeles. “In my experi- throughout the brand, and look for it in being controversial. However, the PR ence working with some of the top agen- your agency partners.” department “doesn’t have the ability to cies in the country, PR can influence the “It’s important that there be a fully evaluate the brand building impact of a creative execution of a campaign by pro- integrated, horizontally organized team commercial. If the commercial is judged viding the creative teams with solid developing advertising strategy and cre- to be risky, it is prudent to engage the PR insights about the possible repercussions ative and that it includes multicultural departments earlier in the launch of an ad that a particular creative can have in the oriented PR at every level of develop- campaign,” he said. press. In today’s social media era, the ment,” said Esther Novak, Founder and Campbell continued: times are gone where creative can come CEO of VanguardComm in East “For the last few years, we have seen ad up with whatever they want and put it on Brunswick, New Jersey. “Positioning a agencies relying more on PR agencies and air. There are more audiences and criti- brand as hip and edgy is fine as long as it bringing them in earlier in the processes cism and working as a team is not a does not cross the line into stereotyping, of planning and creative development. maybe but a must to ensure successful ad poor taste and negative values. It’s criti- There are many advantages to this, includ- campaign execution — and a happy cally important that the advertising and ing the development of PR strategies that client.” public relations departments view them- support the ad campaign — and for the Lisa Skriloff is President of selves as equal collaborators in promot- consumers it means that the campaigns Multicultural Marketing Resources. £ ing and safeguarding the brand. Advertising professionals often don’t have a complete or clear understanding of the public relations function. If a fully integrated team that includes public relations is not doable, at a minimum a PR review at strategic points is important to ensure the brand is being portrayed as positive and credible.” According to Pawan Mehra, Founder and Principal at Améredia Inc., “advertising and PR departments cannot operate in silos anymore like they did in the past. There’s a need for organizations to become more integrated and intercon- nected than ever before. And the closer the integration the better performing and more successful the larger entity is in this new market scenario. At a time when the speed to market has reduced significantly, any advertising initiative will be smart to have PR on their side, for good or worse.” “PR versus marketing is an ongoing battle between departments in organizations and agencies,” said Yuriy Boykiv, Vice President of Gravity Media. “The issues arise when you are planning a campaign and you have a marketing manager trying to combine the two disciplines into one cohesive strategic document. Most of the issues are related to misunderstand-

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Founded in 1982, Bronze at the 2013 DTC Interviewing Service of America National Advertising Awards for (ISA) has become one of the Best Multicultural Campaign largest market research data col- and was awarded 2012 Best-in- lection and processing firms in Class Healthcare Campaign by the US. To date, we have con- the Hispanic Public Relations ducted Quantitative and Association for ¡A tu salud!, a Qualitative multicultural and health & wellness marketing multilingual research projects in campaign created for The Mount 67 languages, worldwide. Sinai Hospital NY. Agency Industries served include Founder Arminda “Mindy” Automotive, CPG, Healthcare, Figueroa was named one of fast food, entertainment, radio 2012’s top 100 Under 50 Diverse and TV advertising, public rela- Executive Leaders by Diversity tions and universities. We are MBA Magazine. acknowledged as experts in the L2L’s team has proudly part- Asian and Hispanic American nered with world-class brands communities having won three such as: PBS, Access Health CT, awards for our research. ISA has Scholastic, KinderCare Learning offices around the U.S., Canada Centers, The Mount Sinai and India with three telephone Hospital NY, Jose Luis Orozco centers and two focus group and has begun to expand its facilities in Los Angeles. We are reach to the Caribbean and the co-owners of the Asian around the world including work American Marketing Report, a with Gov. Juan F. Luis Hospital one-of-a-kind, ongoing syndicat- in St. Croix, Team National, and ed survey that compares the EDSA, a global architectural Chinese, Korean, Vietnamese, landscaping firm. Filipino, Indian, Hispanic and Visit www.Latin2Latin.com to African American communities learn more. with the general population. MOSAICO PUBLIC Rashada Whitehead, President & CEO of Flowers Communications LATIN2LATIN Group (FCG). RELATIONS MARKETING + COMMUNICATIONS 330 Townsend St., # 119 San Francisco, CA 94107 tions, social media, consumer 415/392-1000 ext. 22 FLOWERS engagement and creative servic- 333 N. New River Drive East Fax: 415/392-1099 es. With an expertise that covers Suite 1200 Mobile: 415/623-6611 COMMUNICATIONS multicultural, multigenerational, Fort Lauderdale, FL 33301 www.mosaicopublicrelations.com millennial and multimedia disci- [email protected] GROUP www.Latin2Latin.com plines through new and tradition- 954/376-4800 Juan F. Lezama, Director al engagement, our agency has its Celina Rodríguez, Strategic 303 E. Wacker Dr., Suite 1000 pulse on the future of communi- , Hispanic Market Expert Chicago, IL 60601 Arminda “Mindy” Figueroa cations with a fresh perspective President & Founder 312/228-8800 on trends, ideas, culture and Fax: 312/228-9414 San Francisco-based Mosaico www.flowerscomm.com news. To find out more, Latin2Latin Marketing + Public Relations, a division of visit www.flowerscomm.com and Communications (L2L) is an Fineman PR, prides itself in Rashada Whitehead, President join the conversation. award-winning, MBE certified, being a multi-cultural and multi- & CEO full-service marketing and com- lingual agency that creates cul- INTERVIEWING munications agency with over turally relevant communications Flowers Communications 80+ years of hands-on experi- while maintaining the consisten- Group (FCG) is one of the SERVICE OF ence in developing successful, cy of a company’s brand across nation’s leading multicultural AMERICA ROI driven marketing and com- cultures. Led by Juan F. Lezama, communications agencies. munications plans in the U.S. Mosaico has worked with clients Known as a great place to work Multicultural, Caribbean and in several industries, covering and great people to work with, we Corporate Headquarters Latin American markets. pharmaceutical, food and bever- develop and manage consumer- 15400 Sherman Way, 4th Floor L2L is a proud 2-time winner age, financial, remittance, Van Nuys, CA 91406 focused integrated campaigns 818/989-1044 (2011-2012) of the Greater Fort healthcare, real estate develop- that leverage cultural nuances to [email protected] Lauderdale Chamber of ment, publishing and communi- tell total mark et stories on behalf www.isacorp.com Commerce “Established Small ty-based nonprofits. of our clients. FCG continues to Business of the Year.” Mosaico has received multi- lead in the areas of media rela- Michael Halberstam, President Additionally, the agency won cultural and crisis communica-

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PROFILES OF MULTICULTURAL PR FIRMS

tions awards for its client work. tural budgets as well as The agency’s client roster has reporters. You can submit your included Nestle Health Science, news for distribution at multicul- Fortune 500 company The First tural.com/services/mmr_news. American Corporation, Foster We also publish an annual Farms, Xoom.com, Pacific directory The Source Book of Companies, Sequoia Healthcare Multicultural Experts, with pro- District and City of Hope files of multicultural PR and Medical Center, among others. communication companies. The Mosaico is also proud to have book’s online equivalent, Experts the strategic counsel of Latino Directory (available at multicultur- Market Expert Celina al.com/sourcebook/sourcebook_co Rodriguez, a former CNN En mpanies) is continually updated Español and KSTS-Telemundo with profiles of other multicultural (San Francisco/Oakland/San marketing and PR experts. You can Jose) anchor with more than 25 join the online directory at multi- years of experience working in cultural.com/sourcebook/get_list- the U.S. and Mexico. ed. For marketing executives, we MULTICULTURAL provide information on reaching multicultural and lifestyle con- MARKETING sumer markets, as well as contacts for potential partnerships. RESOURCES We write presentations on multicultural marketing/diversity, cre- 150 West 28th St., Ste. 1501 ate reports on best practices in New York, NY 10001 your industry and others, deliver 212/242-3351 seminars/training sessions with Fax: 212/691-5969 www.multicultural.com guest speakers to your marketing staff and plan events. We help Lisa Skriloff, President companies with expertise in marketing to ethnic consumers gain Multicultural Marketing visibility among executives at Resources, (multicultural.com) corporations who oversee multi- is a premier multicultural and cultural marketing budgets and Lisa Skriloff, President of Multicultural Marketing Resources, Inc. PR consulting firm. We work journalists who seek diverse with corporations, PR firms and sources. mainstream & ethnic media We connect our clients with journalists and specialize in pro- ethnic, mainstream and trade populations. Our obsession with cultural diversity of the country moting multicultural marketing press looking for sources for cultural influences on commu- and the rapid adoption of digital & diversity news. Lisa Skriloff, Black History Month, Women’s nities — both local and global technology. formerly of The New York Times History Month, Asian Pacific — is what sets us apart and is Sensis began as a digital and Caballero Spanish Radio, American Heritage Month, and the backbone of our ability to agency 15 years ago. However, founded the company in 1994. Hispanic Heritage Month, as initiate conversations and we don’t fit nicely into any of Our clients are the nation’s well as for year-round coverage proactively build relationships the categories that agencies get leading PR and communication of a diverse America. We also that create positive results for put into: firms who specialize in market- provide the press with demo- our clients. OCG PR is one of We are a digital agency … that ing to cultural and niche mar- graphic information and the largest minority-owned pub- expanded into traditional adver- kets, including Hispanic, Asian insights into best practices and lic relations agencies in Texas. tising. American, African American, trends. We are a Hispanic agency … women, people with disabilities SENSIS that handles general market and LGBT consumers. We also OCG PR work for many of our clients. work with PR departments at 811 Wilshire Blvd., Suite 2050 We are a PR firm … that corporations to help them get Los Angeles, CA 90017 builds websites and buys media. 101 Summit Ave., #208 the word out about their multi- 213/341-0171 A cross-cultural advertising Fort Worth, TX 76102 cultural marketing and diversity www.sensisagency.com agency with digital at its core. 817/332-0404 blog: www.sensisbureau.com Our vision is to retire the con- news. Fax: 817/531-1520 [email protected] Our free email newsletter, [email protected] cept of the “general market” and [email protected] MMRNews (sign up at multicul- www.ocgpr.com replace it with a new, explicitly cross-cultural model of advertis- tural.com/mail_list_sign_up) is 1605 Connecticut Avenue, N.W. distributed to two audiences: OCG PR (formerly Open 4th Floor ing, PR and marketing. Our multicultural marketing industry Channels Group) is a full-serv- Washington, DC 20009 unique agency model combines professionals and journalists and ice public relations agency 202/629-9783 multicultural and general market offers news and information of based in Dallas/Fort Worth, spe- reach with digital, traditional interest to marketers targeting cializing in multicultural, digi- Jose Villa, President advertising, and PR. We have ethnic consumers. tal, integrated communications, Danny Allen, EVP been at the forefront of the bur- MMRNews is a great business and public involvement. Dania Wasongarz, Strategy geoning multicultural social Director media space, and are widely con- development and marketing tool We offer expertise in diverse Polly Beale, Creative Director for those companies looking to multicultural segments, includ- sidered industry thought leaders get in front of corporate and ing African American, Hispanic Sensis was created to address in how to use social media to agency marketing and advertising and Asian communities as well two fundamental shifts taking engage Hispanics, African- professionals handling multicul- as women, youth and LGBT place in society — the growing Americans, and Asians. £

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OPINION Professional Development What makes a good press secretary By Fraser Seitel David Axelrod became Sen. Obama’s chief tion. Without that seat, the press secretary is counselors. When Gibbs slid into the press prisoner to the person from whom he has secretary role, t he transition was seamless. received the information. It’s that particular n 2006, Time Washington Bureau Chief Carney, who left journalism to work as a aide’s interpretation — not necessarily the Jay Carney sat down with C-Span and press secretary for Joe Biden, possesses no President’s or important others at the table Iuttered the following prophetic commen- such closeness with Obama. He is an “out- — that turns out being communicated by the tary: sider” and conducts himself accordingly. press secretary. “The best press secretaries were very deft When Gibbs spoke, the White House Press In Obama’s case, Gibbs was always at at serving both their boss, the President, the Corps knew the words and thoughts were the table; Carney, rarely if ever. And it Administration, and the press. It’s a tricky coming directly from the President. There is shows. In a sympathetic profile of Carney job. I’m sure I would- no such similar confidence in what Carney on Saturday, Jennifer Steinhauer, of The n’t be any good at it.” utters from the podium. He simply isn’t a New York Times asked the press secretary Here we are seven confidante. about his fumbling performance on years later, and Jay Policy knowledge Benghazi. Carney’s answer was revealing. Carney, Obama’s A good press secretary must know every- “I think we all can look back and find things Press Secretary, has thing about everything that concerns the we could have done better,” he said. “But I turned out to be a organization — even more than his boss. just know that everybody here who briefed sayer of the sooth. This entails doing his own due diligence me did their best and did right by me.” While he isn’t as on matters that not only are front-and-center Translation: He’s got no seat at the table. Fraser P. Seitel has miserable in the job as on the national stage, but those lurking Arm’s length relationship with press been a communications the worst press secre- behind-the-scenes ready to explode. A good The relationship between the press secre- consultant, author and tary in recent years — press secretary therefore keeps his own tary and the media is a tricky one. On the teacher for 30 years. the confused Scott objective counsel and his own internal and one hand, the press secretary must be a loyal He is the author of the Prentice-Hall text, The McClellan, whom the external intelligence network. advocate for his employer; on the other Practice of Public White House Press Snow was a master of this. A former hand, he must be an honest broker to the Relations. Corps dubbed “the columnist and Fox News anchor, Snow was media in conveying Administration philoso- piñata” when he a well-informed intellectual who knew his phy and policy. labored for President George W. Bush — way around Washington, cultivated opinion Like a corporate PR executive, a good Carney, as Presidential Press Secretary, is as leaders, and was well-versed on the issues of press secretary is neither friend nor foe to mediocre as the President he serves. the day. He gave full answers to questions, journalists, but a “friendly adversary.” A He is singularly humorless, unsteady and well beyond the “talking points” given to good press secretary seeks the “respect,” not ill-equipped to handle the rough-and-tum- him. And when the press argued with him, the friendship, of journalists. Reporters may ble, hand-to-hand combat that has come to he argued back as the Administration advo- have bridled when Snow challenged them comprise the daily skirmish with the White cate he was hired to be. back on facts and policy, but Snow was uni- House Press Corps. As the Obama Carney, by contrast, is a prisoner of his versally respected for his knowledge, wit Administration fumbles its way through talking points, rarely venturing beyond the and straightforwardness. When journalists multiple scandals, Mr. Carney seems to be precise words approved by the White House start “defending” a press secretary, it’s a sign getting even less sure of himself and less brain trust. As a consequence, he seems the PR person is in over his head. competent in the job. wooden and inflexible, unwilling to engage Sense of humor The best press secretaries — Carney’s in philosophical conversation, lest he annoy If you’re a press secretary, the best way to predecessor Robert Gibbs, Mike McCurry, the higher-ups. “keep your head” is to not take yourself too Ari Fleischer and the best of all in recent Typical was his response on Benghazi, seriously. The job and the issues are serious years, the late Tony Snow — possess char- citing the murder of four American diplo- and challenging, but for God’s sakes, light- acteristics that make them invaluable to both mats as “old news.” Blaming everyone from en up, have some fun, and relax. their boss and the media through which they Fox News to Mitt Romney, Carney told a McCurry, Snow, and Gibbs understood convey their administration’s positions, skeptical press corps: “Efforts to refight the this, and each was smart and confident philosophies and programs. Here are sever- political battles of the past are not looked on enough to maintain their equanimity while al of those characteristics: kindly by the American people.” While it walking the tightrope with the media. Closeness to the Chief wasn’t clear which “American people” There’s a reason you never see Jay Carney “Access is power” goes the public rela- Carney was speaking for, it was clear that on Fox or “Meet the Press.” The tions truism, and that is certainly the case if the press secretary seemed to be wilting Administration is more comfortable trotting one is the mouthpiece of an organization. under the multi-scandal scrutiny. out articulate and unruffled “inside players” The closer you are to and more comfortable Seat at the table like Dan Pfeiffer, who impressively carried you are with the individual running the Hand-in-hand with being a trusted advi- Obama’s water on the scandals this week- show, the more confidence you will display sor-to the-chief and having policy knowl- end on the morning talk shows. and speak with when representing that indi- edge, a good press secretary — like any After facing a particularly nasty grilling vidual in public. public relations executive — must occupy a the day before, the normally lugubrious Gibbs was the prototypical example. He seat at the management table. Carney began the next day’s briefing by served with Obama for four years before A seat at the table ensures the press secre- poking fun at himself with a display of being called upon to become White House tary is aware of the nuances of policy and anguished photos of him from the day Press Secretary. Over those years, Gibbs and the discussions that led to policy formula- before. £

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Financial Management Pricing: should you raise or lower your fees? By Richard Goldstein not meeting their needs, which in turn tomer is two hours but the value to the means it might be easy for them to align customer is $100,000. What should the fter years in recession, the U.S. with another agency. The above two fee be? economy continues to just plod questions should help you understand Consider matching your competition. Aalong, leaving thousands of your customers expectations. You can If you raise prices to match a competi- business owners in a quandary as to also ask, if price was not an issue, what tor, customers may perceive your serv- how to continue running their business services would you like us to help you ice as equal — even if the competitor’s profitability. They with? offering is superior. face a delicate bal- 5. Competitors: Research your com- Understand the cycle ancing act: Should petition by understanding their product A business owner or executive that they implement lines and services. Also look at their has been around for a long time under- higher prices (or strengths and weaknesses, and pricing stands the ups and downs of commerce. fees in the case of a strategies. This can help you better The key is not to panic during the PR firm), in order understand how your firm stacks up downtimes. Use this time instead to to become more (or with the competition. Chances are you make existing customers your best stay) profitable? Or already know this information about the friends by providing impeccable serv- should they stand competition. Look at their website! You ice. Richard Goldstein behind their clien- will learn a good deal about your com- A final thought is a partner at tele and keep petitor. Buchbinder Tunick & prices/fees as low An intangible factor in the decision- Alan Weiss, a consultant to consultants Company LLP, New feels that fees should never be based on York, Certified Public as possible? making process is customer perception. Accountants. It’s a difficult As an example, a customer may per- time units of any sort. If your value to a choice to make. If ceive an underpriced priced service as customer is simply a matter of hours, you are in this situa- lower quality or desperation, even if days or weeks you provide, then you are tion you understand how just one this is not the case. no better than a commodity. Customers wrong move could eventually make you Pricing will understandably and rationally eval- regret your decision. Here are some tips While pricing strategies depend on uate you as a commodity. The legitimate for making the right decision. your situation, you essentially have two question will be “Can’t you do it for less Develop a strategy choices: raise or drop prices. Although time?” Your fees should be based upon When developing a pricing strategy, dropping prices in a lackluster economy fulfilling value, not performing tasks. consider a number of distinct situation- may make sense in order to keep cus- Time unit billing will always be less £ al factors, such as: tomers, more often it is best to maintain than your true value. 1. Cost. Factor in your fixed costs current pricing or even price you fees a such as rent, utilities and salaries bit higher than those of your competi- (include variable costs such as free- tion, as this conveys higher quality and PR News Briefs lance and engagement costs not reim- allows negotiating room without jeop- GRAYLING UNVEILS bursable by your client). ardizing profitability. Relying on lower 2. Economics. Research what the fees to differentiate your service is CYBERSECURITY UNIT market will bear relative to supply and risky, however. This strategy may esca- Grayling has established a cybersecurity demand, price elasticity and other con- late to a price war where, eventually, consulting and advisory unit to help clients ditions, such as economic expansion or respond to data breaches and deal with the raft the bigger guns will be the only ones of regulatory matters. recession. left firing. Larger PR firms with greater New Chief Pete Pedersen, who chaired 3. Customers. Your clients are your resources and operating efficiencies Edelman’s tech practice before joining the customers! I use this term rather than can quickly take out a smaller agency. Huntsworth unit in February, believes any com- “client.” Know what your customers Gaining market share pany that collects, transmits, stores or use consumer data is at risk from sophisticated cyber- expect when it comes to capabilities There are many price-raising strate- attacks. and features. For example, they will gies you can employ for market share Michael Locatis, who stepped down in likely value quality service and price. and increase profitability. One is to January after a nine-month stint as assistant These features will vary depending on charge a premium. This approach secretary for cybersecurity and communications the type of business. You can ask two at the Dept. of Homeland Security, is part of the works when supported by a service’s Grayling team. questions to find out this information: unique completive advantage. Sprucing Prior to DHS, Locatis was chief information Why are you considering a change in up your presentation and website can officer at the Dept. of Energy. He runs Nexusist, with your PR firm at this time and what also create a perception of higher a Grayling affiliate. will you need to see six months from worth. My good friend, Al Croft, pub- Huntsworth-owned Grayling believes its offering differs from security consulting firms now to know you made the right deci- lisher of Management Strategies, advo- that focus on network protection. sion to engage us? cates a higher rate for “strategic servic- It’s focuses on risk mitigation, management 4. Uniqueness. Do you fully under- es” that provide high value. As an and 24/7 awareness of enterprise risk posture. stand how your product or service example, assume you have a customer Grayling has offices in more than 40 countries. addresses your customer expectations that needs strategic PR consulting serv- and values? If you don’t you are likely ices. The time it takes to advise the cus-

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OPINION Opinion PR professors push ‘dialogic loop’ (for others) By Jack O’Dwyer numerous sources, say that creating IABC is holding its annual conference mutually beneficial relationships this year from June 23-26 (Sunday- R professors including Tina between organizations and stakeholders Wednesday) in New York, a location that McCorkindale, Chair of the PRSA is based on “openness, trust, dialogue, has been eliminated as a site by the PR PEducators Academy, and Marcia understanding, and willingness to negoti Society. Its last New York national confer- DiStaso, Chair-elect, maintain that a ate.” ence was in 2004. It has picked the next “dialogic loop” is the ideal form of com- “These principles also form the foun- five cities but refuses to identify them. munication for PR dation of relationships with stakeholders New York chapter members say New people. A dialogic on social media,” they say. York is not one of them. loop is defined as “One of the most important principles” The audits of the Society and its “any negotiated of dialogic looping, the paper further Foundation are late coming this year. exchange of ideas says, is that it “allows stakeholders to They are usually published in April. and opinions.” query the organization and the organiza- Members can only get IRS Form 990, “Both parties must tion to respond to queries … the dialogue which shows pay packages of the top be willing to be open must be ethical, honest and forthright in seven staffers, by going to h.q. or making and listen to the terms of transparency as well as authen- a written request for it. The Society nor- Jack O’Dwyer other parties even if ticity.” mally waits until near the end of the cal- there is disagree- “Respond to queries” is one principle endar year (after the Assembly) to supply ment,” says their 23- we would like to see followed but so far the document. page article on the subject, titled “A the educators are not following it with us. Society’s leaders don’t “loop” Benchmark Analysis of the Strategic Use McCorkindale, during a few initial replies Candidates for the national board last of Social Media for Fortune’s Most to us, said she could not accept an invita- year, including Joe Cohen of MWW Admired U.S. Companies on Facebook, tion to visit the new O’Dwyer’s PR Group, refused to answer any questions Twitter and YouTube.” Library because she will not be in New put to them by reporters or members. However, attempts by this reporter to York until next year. She said she was No national President or Chair has pre- set up such a loop with McCorkindale busy with end-of-school-year activities. sented himself or herself to the New York and DiStaso or any of the 14 other board She was asked if she or any other chapter membership for questioning in members of the Academy have been Academy director will attend the more than 25 years. unsuccessful. Two directors, in fact, have “Leadership Rally” of the Society that Cohen is a member of the New Jersey demanded we not contact them again. will take place in New York from chapter of the Society, and attempts to The directors are: Dean Kazoleas, Thursday, June 13, when the Silver Anvil loop with any of the officers and directors Ph.D., APR, California State University; Awards are presented, to Saturday, June about the subject of accreditation have Elizabeth Kerns, Asst. Prof. of 15. The 14 section chairs, 10 district been unsuccessful so far. Communication/PR, Washington chairs and 110 chapter presidents will APR is under attack on the grounds that University; Alisa Agozzino, Ph.D., Asst. each receive $550 towards their expenses the current test involves no writing or cre- Prof., Ohio Northern University; Sandra from national to attend the event. ativity and participation by Society mem- Duhe, APR, Assoc. Prof., Southern They also get five free meals including bers is less than half of what it once was. Methodist University Dallas; Julie two breakfasts, two lunches and a dinner At one time 5.5 hours of writing were part Henderson, APR, Fellow PRSA, Prof., at a restaurant Friday night. The Society of the APR process. Only APRs have been University of Wisconsin Oshkosh; James has put the cost of this weekend at able to hold national office since the Lingwall, Assoc. Prof., Clarion $140,000 and considers it sacrosanct. 1970s. University; Juan-Carlos Molleda, Ph.D., When suggestions were being taken on APR chair of the N.J. chapter is Carlos University of Florida Gainesville.; Bonita how to cut expenses during talks about the Arcila, external communications manager Neff, Ph.D., Assoc. Prof., Valparaiso $30 dues hike in 2011, leaders said that of Verizon Enterprise Solutions. University; Robert Pritchard, APR, there was no chance of cutting the His phone number is on the chapter Fellow PRSA, Instructor and Faculty Leadership Rally. One money-saver sug- website but if called it answers, “Please Adviser, University of Oklahoma; gested was dispensing with the in-person enter remote access code.” A message Gemma Puglisi, Asst. Prof., American Assembly. The Leadership Rally is not cannot be left. He did not return an e-mail. University; Hilary Sisco, Ph.D., Asst. mentioned on the Society website. We have brought this to the attention of Prof., Quinnipiac University; Maria Where are Society’s financials? Verizon PR head Peter Veronis and media Elena Villar, Ph.D., Asst. Prof, Florida Since responding to queries is so relations head Robert Varettoni. A letter is International University Miami; Rhoda important in social media, we wonder being sent to Verizon CEO Lowell Weiss, Ph.D., APR, Fellow PRSA, how the educators can be associated with McAdams. UCLA; and Donald Wright, Ph.D., APR, an organization that responds to almost no Verizon should not be connected in any Fellow PRSA, Harold Burson Prof. and press queries. way with an organization that has poor Chair in PR, Boston University. Reporters are not allowed to join the financial reporting practices, that has an Loopers answer questions, says paper Society although they are welcome at the undemocratic governing system (resulting Dialogic looping is positioned as the International Association of Business in the “Committee for a Democratic PRS” sine qua non of social media. Communicators, a similar organization in 2010), and which bars reporters from McCorkindale and DiStaso, quoting with 14,000 members. its annual legislative Assembly. £

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Guest Column

When the media descends Getting back to the Huffington Post By Kellyanne Dignan tweet, I did a little investigating and monitor the coverage. By keeping track of found the source in a CNN transcript try not to overthink anything I see on what reporters are asking and reporting from May 8. Reporter Martin Savidge is Twitter. I find that only 140 characters you will be able to determine what infor- quoted: “And part of the story here is that Ileave plenty of room for misinterpreta- mation they need to tell the story accu- when you talk to local officials, they tion. That said, I was struck by a tweet last rately. don’t get it as far as how much media is week from the Huffington Post. Citing a Anticipate media needs here or why. The reason we know why is CNN reporter, @HuffPostMedia tweeted: The media is very predictable during it is so rare … in these circumstances of “media crush around breaking news. Reporters will want to missing people, not one, three of them, Berry home sounds get close to the action, they will specu- walk out of this horrible circumstance ‘frightening,’ local late often with “experts” or anyone close alive. And that is remarkable, and I think officials don’t ‘get’ to the action who is willing to talk, and in news that the world wants. It’s no wonder why so much press is a 24 hour news cycle they will focus on (the community) is being overwhelmed.” in Cleveland.” any new information they can get. The Remarkable indeed but not unpre- Since I was not best thing you can do when big news dictable, I’m sure that newsrooms there, I can’t vouch hits: start thinking like a reporter. Gather already have their recipes for cicada for the accuracy of the background materials they will need, pesto ready to go. £ Kellyanne Dignan is the statement, which make sure there is enough space to park Associate VP and referred to the hun- media vehicles before calling a press Director of Training at dreds of reporters conference, and know their deadlines so News Briefs Rasky Baerlein outside the home of you can try to work around them. By Strategic Comms. in Amanda Berry, one being a source rather than a roadblock Boston. SEC CLOSES HISTORIC of the young women you will build relationships and credibil- INSIDER TRADING CASE rescued last week. ity. The SEC said May 15 that final settlements But it got me to thinking about major Don’t play favorites have been approved in the “golden goose” insider media events. You may have friends in the media or trading case in which a former Lehman Brothers I was shocked that anyone would be you might be tempted to “stick it” to a trader passed along inside info from his PR exec- surprised by the media attention. When I reporter who has written negative arti- utive wife, who was not charged in the scheme. produced cable news we had a saying, cles in the past, but a major media event Final judgments were entered May 14 against Jamil Bouchareb and Daniel Corbin, who received that good stories needed only four ele- is not the time to play favorites. Make insider info passed along by Matt Devlin. ments: mystery, outrage, drama and sure everyone has access to the same Devlin’s wife, Nina, was an executive at video. The Cleveland kidnappings have information at the same time. When Brunswick Group at the time, in 2008, handling plenty of all four. you’re responding to hundreds of mergers and other corporate announcements. The SEC alleged Devlin, who wore a wire and helped In the world of news there are two types inquiries it’s a time saver to send out one bring charges against the other two, gleaned of events, the planned (the Olympics, a media advisory. insider info about 13 deals based on his wife’s major trial, presidential elections) and Be available 24/7 conversations and travel schedule. breaking news (extreme weather, unthink- Sorry 9 to 5ers, you can’t stay on top Authorities said the participants in the scheme able crime, and yes, unexpected mira- of a story just during business hours. referred to an unknowing Nina Devlin as the “golden goose.” cles). Both draw a media crowd that can Make sure the media has access to a Under the terms of the deal, Bouchareb will feel a bit like the cicadas that are about to credible spokesperson and media facili- pay about $1 million and also receive 30 months start swarming the south. tator at all times. in jail following a guilty plea in the criminal case For the record, this year’s cicada inva- Release your own media brought by the U.S. Attorney for the So. District of New York. sion is a planned media event as we know By releasing your own pictures and Corbin owes about $190,000 under the SEC they will appear every 17 years. But even video as well as participating in the deal and got a sentence of six months in prison with close to two decades to prepare, social media conversations you ensure and two years of supervised release. He also has when the global media descends on any that your part of the story gets told. This to forfeit $1 million. type of community, be it a town, city or is also a great way to build trust with Matt Devlin received three years probation in exchange for his cooperat ion and the SEC said organization it can be very overwhelming. reporters. If the media knows that you this week that he has been barred from associat- I’ve experienced the international press will provide them with compelling con- ing with industry pros like securities dealers or corps from both sides. And even in the tent they are going to anticipate it and investment advisers, or from offering any penny best of circumstances when an event has run it. stock. He will pay a $10,000 fine and forfeit gains of $23,000. been planned for months or even years, Identify spokespeople ahead of time Charges against four other people in the “controlled chaos” is about all you can and use them scheme were finalized in 2011. hope for. Every organization needs to have peo- Nina Devlin, who moved to Edelman after I was recently involved in several large ple ready to speak with the media. Take Brunswick, is now VP of communications at Mylan media events here in Boston and have time to train them and make sure they are Pharmaceuticals. I n a letter filed in federal court last year, she urged the judge overseeing the crim- arrived at six key takeaways. looped in as situations unfold. Remember inal complaint against her husband to keep him Track inquiries and coverage that during breaking news, anyone will- out of prison to care for their young son. Keep a spreadsheet of every request you ing to talk can end up being an unofficial The SEC said Bouchareb and Corbin were the get with the reporter’s inquiry and contact spokesperson, so don’t hold back and last remaining defendants in the case. information and take the extra time to start participating in the conversation.

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WASHINGTON REPORT Heritage Foundation, under fire, mulls PR help

onservative think tank The Heritage Foundation is mulling the hire of a “high-profile” PR firm, according to a May Creport by Politico, as it has been bombarded with criticism over a report it produced that said immigration reform could cost $6.3 trillion. Politico reports that the foundation is taking on water from Republicans and conservative outside groups which often align with the institution, as well as Democrats, as its immigration report is ripped by critics. The Washington Post noted the foundation helped kill immigration reform six years with two reports predicting a flood of 100M immigrants and swelling of the welfare ranks. The latest report was immediately attacked as “flawed” by influential Tea Party Sen. Marco Rubio (R-Fla) and ex-Mississippi Dept. of Energy slates PR search Gov. Haley Barbour, among others. A key point of contention on both sides of the political aisle is the argument in a Harvard disser- tation by one of the study’s co-authors that there are genetic IQ dif- he Dept. of Energy is preparing to release an RFP to han- ferences between races and low-IQ immigrants should be barred dle PR for its $2 billion division fostering Tenergy efficiency and renewable from entry to the U.S. Heritage VP of Communications Michael Gonzalez has been energy technology. handling the fallout. “We believe that every person is created equal Expected to cover public and media and that everyone should have equal opportunity to reach the lad- relations, digital communications and der of success and climb as high as they can dream,” he wrote in a public affairs, among other tasks, the blog post May 8, borrowing from the Declaration of Independence DOE slates a one-year contract with and Constitution. He distanced the report from the controversial three option years for a firm in the author, Jason Richwine, stressing that Richwine “did not shape the Washington, D.C., area to work with its methodology or the policy recommendations” of the report. Energy Efficiency & Renewable yEnerg Gonzalez, a Cuban immigrant, is a former Wall Street Journal office. reporter with a global pedigree who joined Heritage in 2009 after The U.S. Senate in April confirmed Ernest Moniz, a strong stints at the SEC and State Dept. during the George W. Bush supporter of renewable energy, as Secretary of Energy. The administration. EERE office administers loan and grant programs, produces On May 10, Heritage Foundation announced Richwine’s resig- media campaigns, and fosters administration plans for clean nation. £ energy in sectors like manufacturing and transportation. The RFP is slated to be released on June 6 with work expect- Big oil pushes for “sound and ed to begin in late October. £ balanced” ocean policy Wyden aide opens P.A. shop

he National Ocean Policy Coalition has hired Houston- ennifer Hoelzer, former Communications Director and based HBW Resources advocacy firm to push for a “sound Deputy Chief of Staff for Oregon Senator Ron Wyden Tand balanced plan toward development of the nation’s Jhas opened IOC Strategies in Los Angeles. oceans. She is targeting interest groups, celebri- NOPC opposes President Obama’s National Ocean Policy that ties, local governments and companies in he unveiled in 2010, calling for consolidation of more than 140 need of PA and issues management servic- federal laws, tighter ecosystem management and a streamlined es. process for various permits. The six-year vet of liberal Democrat’s Key Republicans in Congress including Doc Hastings, chairman office is remembered for pushing his bipar- of the natural resources committee, have blocked funding for tisan “Healthy Americans Act,” which was implementation of Obama’s plan. pitched as an alternative to Obamacare and The Washington Congressman believes the president is pushing his OPEN Act aimed at copyright reform. for “ocean zoning,” carve-outs that could ban drilling and other Hoelzer says her Los Angeles base will Jennifer Hoelzer economic activities. be a “real game changer as few in The Coalition believes greater input is needed for development Hollywood seem to understand the power of the ocean and fears any federal move will override the regulato- their national profiles could command in Washington.” ry oversight of of states and local authorities. Prior to working with Wyden, Hoelzer was Press Aide to Its members include ExxonMobil, American Petroleum Congressmen Tim Ryan (D-Ohio) and Sanford Bishop (D-Ga.). Institute, Chevron, U.S. Oil and Gas Assn., Alaska Chamber of She also was a writer and producer at the McLaughlin Group, Congress and seafood/sports fishing groups. £ PA program. £

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International PR News Patton Boggs revives Libya pact Donna Imperato CEO of C&W, called the firm an established, credible partner that understands the complexity of the atton Boggs, which began work for Libya in 2011 with fees fast-growing Middle Eastern market. capped at $50,000-per-month, has renewed its contract to The recast BPG | Cohn & Wolfe has offices in Abu Dhabi, Pan “as-needed basis,” while maintaining a 20% discount for Baghdad, Doha, Jeddah, Kuwait and affiliates in Cairo and its legal representation. Muscat. It has 34 staffers. Those fees range from $100-per-hour for a legal assistant to WPP owns C&W. £ $995 for a partner. In a May 7 letter, PB Partner David Tafuri notes that representation will follow receipt of written notice from the Libyan Blair hits Albanian jackpot Government. The Libyans “are not obligated to pay any fees or costs to Patton ormer British Prime Minister Tony Blair is advising Boggs, unless our firm receives a request for such services,” Albania’s Socialist Party, which is on the verge on grab- wrote the one-time “rule of law coordinator” for the State Dept. Fbing power in the impoverish southern European nation. in Baghdad, who leads the account. Tommy Boggs had headed The deal “could be worth millions of pounds,” according to the Libya business. a report in the U.K.’s Mail Online. During 2012, PB received $262,000 from Libya for its work Albania is negotiating entry into the European Union, a geared to presenting the former rebel grouping as the “legitimate move that would be an economic shot in the arm. government of Libya” and the “protection of Libyan assets in the The Socialists have tapped the British politico For counsel U.S. and abroad for the benefit of the Libyan people,” according on how to effect structural reforms similar to those adapted to the new engagement letter. £ by his New Labour Party. Socialist Party Chief Edi Rama, via Twitter, said Blair and C&W pitches Middle East stake his team will work for the new government in the likely even election. Due to NATO’s 1999 action against arch-rival Serbia in ohn & Wolfe has purchased a stake in Dubai-based 1999, Blair is viewed as a hero in Albania. BPG|pr, which was established in 1995 and serves blue Blair as advised countries including Brazil, Kuwait, Cchips like Rolls Royce, Visa, Dubai Events and Kazakhstan and Colombia. His government advisory practice Promotions Establishment and Omega. is called Windrush Ventures. £ FARA News ¸ NEW FOREIGN AGENTS REGISTRATION ACT FILINGS Below is a list of select companies that have registered with the U.S. Department of Justice, FARA Registration Unit, Washington, D.C., in order to comply with the Foreign Agents Registration Act of 1938, regarding their consulting and communications work on behalf of foreign principals, including governments, political parties, organizations, and individuals. For a complete list of filings, visit www.fara.gov.

Davidoff Hutcher & Citron LLP, Washington, D.C., registered May 13, 2013 for The Embassy of The Republic of Mali to the United States, for advocacy before the House of Representatives, Senate, and executive and administrative agencies of the government of the United States.

T. Dean Reed, Purcellville, VA registered May 5, 2013 for Embassy of Japan, Washington, D.C., to provide communications advice and services.

CHP Representation to the United States LLC, Washington, D.C., registered May 3, 2013 for The Republican People’s Party of Turkey (CHP), Ankara, Turkey, for organization of grassroots activities amongst Turkish citizens in America, contribution to the improvement of their standing in society and promotion of efforts to enhance the bonds between the two countries.

Fernando Valladares, Washington, D.C., registered May 3, 2013 for Nationalist Republican Alliance (ARENA), to achieve the goals of the party which is to promote a better democracy in El Salvador and to assist Salvadoran people that live in the United States to become aware of their rights to vote via absentee ballot in the February 2013 presidential election. Lobbying News G NEW LOBBYING DISCLOSURE ACT FILINGS Below is a list of select companies that have registered with the Secretary of the Senate, Office of Public Records, and the Clerk of the House of Representatives, Legislative Resource Center, Washington, D.C., in order to comply with the Lobbying Disclosure Act of 1995. For a complete list of filings, visit www.senate.gov.

Golden Oak Consulting, Santa Clara, CA, registered May 21, 2013 for GoPro, San Mateo, CA, regarding using their waterproof and shock- proof cameras as combat training tools.

Peck Madigan Jones, Washington, D.C., registered May 21, 2013 for Intel, Washington, D.C., for H.R. 624, Cyber Intelligence Sharing and Protection Act and S. 744, Border Security, Economic Opportunity, and Immigration Modernization Act as well as issues related to the telecom spectrum and intellectual roperty issues in trade agreements.

Holland & Knight LLP, Washington, D.C., registered May 20, 2013 for American NeuroMonitoring Association, Bismark, ND, regarding Medicare payment for neuromonitoring services.

Hannegan Landau Poersch Advocacy, LLC, Washington, D.C., registered May 16, 2013 for Wal-Mart Stores, Inc., Washington, D.C., regarding legislative and regulatory matters, including federal tax legislation.

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