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Pg. 9 Pg. 14 Pg. 16 Does brand loyalty Social media PR congloms, service exist online? predictions for 2011 firms boast Q3 gains
Communications & new media Dec. 2010 I Vol. 24 No. 12
IS CELEBRITY ENDORSEMENT A THING OF THE PAST? PG. 12 SPORTS PR PROS RECAP ON LESSONS LEARNED IN 2010 PG. 28 NEW PLAYS FOR SPORTS SPONSORSHIPS PG. 10
SOCIAL MEDIA: HOLLYWOOD’S’ NEWEST STAR PG. 13 December 2010 | www.odwyerpr.com O’DWYER’S RANKINGS OF TOP SPORTS & ENTERTAINMENT PR FIRMS PG. 25 Decmagazine:Layout 1 11/24/10 2:10 PM Page 2 Decmagazine:Layout 1 11/24/10 2:10 PM Page 3 Decmagazine:Layout 1 11/24/10 2:10 PM Page 4
Vol. 24, No. 12 Dec. 2010
EDITORIAL THIRD QUARTER REVENUES Expert decries dominance of the email ON THE RISE pitch. PR conglomerates and service com- 6 16panies posted solid third quarter gains amid bleak global economic realities. RECORD ONLINE AD FIGURES SIGNAL Q3 COMEBACK Sales of recent Internet ads, as well AMERICANS DISLIKE 13 as a surge in video ad impressions, have8 set BUSINESS, FAVOR ETHICS the stage for an advertising comeback. Author Frank Luntz told the annual 17Arthur Page Society conference that Americans value accountability and integrity. STUDY: USERS FOLLOW FEW WHERE HAVE ALL THE NEW BRANDS ONLINE YORK PR GROUPS GONE? A new study by Cone finds the 9 Many groups that served as a social brands users typically follow online belong 18hub for PR pros have either shrunk significant- to a small, elite few. ly or closed their doors altogether.
PR MAKES $445 MILLION PROFILES OF ENTERTAINMENT IMPACT ON L.A. & SPORTS PR FIRMS 14www.odwyerpr.com The PR industry has a big effect Daily, up-to-the minute PR news on Los Angeles’ economy, though9 its 20 impact often goes unnoticed. RANKINGS OF ENTERTAINMENT 25 & SPORTS PR FIRMS SPORTS SPONSORSHIP OPPORTUNITIES WASHINGTON REPORT Regardless of economic conditi- tons, sports continues to be the preferred10 32 destination for sponsorship opportunities. COLUMNS
FRUSTRATED REPORTERS PROFESSIONAL DEVELOPMENT EDITORIAL CALENDAR 2011 26 Fraser Seitel SHOULD TAKE A PR LESSON January: Crisis Comms. / Buyer’s Guide Journalists who discover scandal often find their stories ignored by 11 FINANCIAL MANAGEMENT February: Environmental & P.A. 27 Richard Goldstein networks and the public. March: Food & Beverage GUEST COLUMN April: Broadcast & Social Media 28 Arthur Solomon RULES CHANGE CELEBRITY May: PR Firm Rankings ENDORSEMENT’S FUTURE GUEST COLUMN June: Global & Multicultural The FTC’s new rules regarding 29 Lou Hoffman endorsement guidelines have changed12 the July: Travel & Tourism roles celebrities play in advertising. BOOK REVIEW August: Financial/I.R. 30 ‘Deadly Spin’ September: Beauty & Fashion SOCIAL MEDIA PLAYS A PEOPLE IN PR October: Healthcare & Medical VITAL ROLE IN HOLLYWOOD 31 November: High-Tech A recent panel in Los Angeles PR BUYER’S GUIDE December: Entertainment & Sports disscussed the role social media now13 plays 34 in films, both large and small. ADVERTISERS
WHAT’S NEXT FOR SOCIAL Coyne PR...... 5 NAPS...... INSIDE COVER MEDIA IN 2011? Niche locations, content curation Fleishman-Hillard...... BACK COVER Omega Travel...... 23 and social gaming are just some of14 the trends shaping social media’s future. KEF...... 3 Ruder Finn...... 7 Log-On...... 19 TV Access...... 26
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J=9D&;J=9LAN=& We’re real people — we’re unique, honest J=9D&;J=9LAN=& and genuine, every single one of us. And We’re real people — we’re unique, honest the best part? So are our ideas. We produce and genuine, every single one of us. And creative that you can’t find anywhere else, the best part? So are our ideas. We produce because if someone else could think of it, creative that you can’t find anywhere else, we would never present it to you. because if someone else could think of it, we would never present it to you.
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EDITORIAL Expert decries dominance of the email pitch
EDITOR-IN-CHIEF endell Potter, author of “Deadly Spin,” a critique of health industry PR, Jack O’Dwyer said at a Nov. 16 NYU speaking engagement that PR’s adoption of e-mail [email protected] Was the dominant method of handling press calls is destroying traditional PR/press relationships and crippling communications. ASSOCIATE PUBLISHER Potter, as part of a 22-city tour to promote the book, addressed the audience at a Kevin McCauley social activation New York University Bookstore for nearly two hours. [email protected] One of his goals is to teach Americans to be wary of techniques for improperly EDITOR manipulating opinion whether they are practiced by companies, PR firms, the gov- Jon Gingerich ernment or the press itself, he said. [email protected] Personal relationships between PR pros and reporters have declined with the advent of e-mail which provides a permanent record of any conversations between SENIOR EDITOR press and PR. Greg Hazley A chapter in his book on the Read Edelman CEO Richard Edelman's review [email protected] death of Nataline Sarkisyan, Los of Potter's book “Deadly Spin,” on page 30. Angeles teenager who was sched- CONTRIBUTING EDITORS uled for a liver transplant after initial reluctance to pay for it by Cigna, has a passage John O’Dwyer Fraser Seitel on e-mail. Richard Goldstein Potter was chief spokesperson for Cigna at that time. The company initially refused to pay for the transplant but agreed to do so after the family launched a PR campaign. ADVERTISING SALES socialstorytelling ‘Take it or Leave it’ John O’Dwyer Wrote Potter: Advertising Sales Manager [email protected] “E-mail had become the most common way we communicated with reporters. It enables us to click and ‘send’ and dispatch a statement that usually had been blessed Jack Fogarty (if not already written) by an ad hoc committee of lawyers, corporate doctors, and National Advertising Representative businesspeople. [email protected] “With e-mail, we were sending not just a statement but a broader message: ‘Here’s our response to your question. Take it or leave it. It’s all we’re going to say.’ “More often than not, reporters would take it and not bother us for more informa- O’Dwyer’s is published monthly for $60.00 tion. They were often on a deadline, and even if they weren’t, they knew from expe- a year ($7.00 for a single issue) by the rience that they weren’t going to get much more from us.” J.R. O’Dwyer Co., Inc., A theme of the Potter book is that corporate PR tries to exercise as much control 271 Madison Ave., New York, NY 10016. (212) 679-2471 as possible over mentions of the company in the media and also exercises strict con- Fax (212) 683-2750. trol over who gets to interview corporate executives. Today, many corporate events where New York PR pros and the press once socialized have all but disappeared, as socialnetworking well as many of the 25 corporate and agency PR groups that routinely met in the © Copyright 2010 1970s and ’80s. J.R. O’Dwyer Co., Inc.
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MEDIA NOTES Historic online ad figures portend Q3 comeback
Online advertising is towing the line for the industry’s financial comeback, as most expected it would. Aside from held up,” said Tom Finneran, Executive history-making revenues in the third quarter, new studies Vice President of Management Services show gains in online video advertising could account for of the American Association of Advertising Agencies. “What’s been much of the industry’s future growth. By Jon Gingerich happening for several years is more marketers are shifting more money from offline to online. There’s no expectation Web video makes big gains that this is going to slow down, and in ccording to the latest findings from American Internet users viewed more fact, it’s only going to continue gaining the Interactive Advertising Bureau than 4.6 billion online video ads in traction.” Aand PriceWaterhouseCoopers, rev- October, a new record in its own rite. As recently as two years ago, it was enue estimates for Internet ads totaled a About 175 million U.S. Internet users regularly debated whether placing record $6.4 billion in the third quarter of viewed online videos during this time, advertisements on YouTube would 2010, up 17% from the third quarter last which accounts for more than 84% of alienate its audience. Today, this is year. These figures now officially all U.S. Internet users. rarely questioned. Recent research con- account for a milestone: the largest gains Video ads accounted for nearly 13% ducted by Turner found that not only are in digital advertising history. of all videos viewed, totaling about users becoming accustomed to commer- If it’s enough consolation that recov- 1.2% of all minutes spent watching cials on the Web, they’ll watch roughly ery is occurring within the advertising videos. About 45% of all Americans the same amount of online content industry, it might be an added bonus to watched an online video ad last month, regardless of how many ads they have learn that a particularly voracious breed with an average age of 34. to sit through. of advertising is leading these gains. Hulu was home for the highest num- The Web’s increased videocentricity According to November data released ber of video ad impressions, delivering is an obvious reason for the recent flur- by Comscore, online video advertise- a record 1.1 billion video ad impres- ries in online video ad activity. As tech- ment is now responsible for a growing sions during October. This reveals an nologies improve — storage and band- portion of this activity, and if the figures extraordinary increase of nearly 40%, widths, namely — we see online video are any indication, the medium is here to from the 793 million ad impressions as but another work in progress but one stay. just the month before. Receiving about that is making tremendous gains. 30,000 unique viewers every month, Media Briefs Video’s transition from TV to Web Hulu now reaches about 10% of the seems natural, almost organic. For one, NEWSPAPER READERS U.S. population, and Hulu users now it’s a familiar format; companies that view an average of 38 ads each month. work in brand advertising can continue DROP ANOTHER 5% Google — primarily driven by doing all the things they’re used to on Average weekday circulation at 635 newspa- YouTube — retained its position as the TV without changing their campaigns pers dipped five percent for the six-month period number-one video property, with a or finding a new strategy for their mes- ended September 30, according to the Audit record 2 billion videos watched during Bureau of Circulations. That compares to 10.5 per- sage. cent plunge during last year’s period. October and more than 146 million Online content is also much more The Wall Street Journal, which ranks as the unique viewers. Average users spent 4.5 measurable than print or broadcast, and No. 1 paper with a circulation of 2.1M, was the hours during the month watching videos since Web advertising can give more only top 10 paper to post a gain. It was up 1.8 per- on the site. Google’s ad views were dis- measurable results, it’s where clients cent. The Journal factors in 450K electronic sub- scribers to its numbers. USA Today fell 3.7 per- proportionately smaller however, with are likely to go when budgets are small cent to 1.8M, while the New York Times slid 5.5 about 170,000 video ads watched dur- and the money needs to go further. percent to 876,638. ing October, less than much “smaller” Contrary to popular belief, Finneran Rounding out the Top Ten are Los Angeles sites like AOL, Microsoft sites or CBS said the sun hasn’t yet set on the empire Times (down 8.7 percent to 600,449), Washington Interactive. Post (-6.4% to 545,345), New York Daily News (- of television advertising. Local radio 5.8% to 512,501), New York Post (-1.3% to Spending data shows that Internet stations were the real victims in 2008 505,501), San Jose Mercury News (477,592, `09 advertising has increasingly grown in and 2009 he said, racked by budget cuts figures not available), Chicago Tribune (-5.2% to recent years, even during notoriously and downsizing, damaged in part by the 441,508) and Houston Chronicle (-10.5% to harsh periods like 2009. Given the fact that local radio relies on much of its 343,952). Cablevision’s Newsday was the biggest loser economy’s pending recovery, most advertising from local retail, a venue among the top 25. Circulation plummeted 11.8 experts believe online ad figures are where many merchants found new fron- percent to 314,848. The San Francisco Chronicle poised to accelerate through 2011 and tiers in Internet search. fell 11.2 percent and the Newark Star-Ledger slid beyond. Increased placement of brand “Contrary to popular belief, TV is not 9.3 percent to 223,037. The Dallas Morning News messages online, from advertisers that was the only other paper to post a gain, up 0.3 dead,” Finneran said. “TV in 2010 had a percent to 264,459. have finally seen the light in the good year, even if it still wasn’t back to The combined Sunday circulation of 553 Internet’s potential as a viable forum for 2008 levels. Some of the largest papers dipped 4.5 percent, an improvement from advertising, is at least partially respon- spenders on TV are automotive dealer- the 7.5 percent plunge in `09. sible for the recent upswing. ships, and we all know what happened “The Internet is the one area that’s to them two years ago.”
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Study: users follow few brands with social media By Greg Hazley how to develop long-term rela- tionships with ocial media users “adopt” fewer real staying than five brands or companies power,” Sonline on average, whether its “lik- Nearly 60% of ing” it via Facebook, following it on those engaged say Twitter or subscribing to an RSS feed, they are satisfied according to a recent study of new media with their experi- consumer habits conducted by Cone. ences with com- New media users demonstrate an affin- panies or brands ity for only 4.6 companies online, the online, according Omnicom cause marketing firm found, to Cone, and 62% New research by Cone shows that while Americans are increasingly calling the chosen handful a “club” one said they were using new media technology, they follow an average of only five com- of the “most exclusive to which a compa- likely to share panies or brands online, forming an exclusive "club" that companies ny can hope to gain access.” An estimat- information about need to work to gain access. ed 33% of users do not follow any brands a company across Graphic courtesy of Cone. and only 8% follow 10 or more compa- their own social nies. networks. the decision to engage. Forty-six percent “Marketers are being more aggressive The study found 86% of consumers said customer service offerings like prob- than ever with attractive promotions want to engage with companies via new lem solving were important, while 39% designed to generate likes, followers and media (up from 78% in 2009) but it now said they wanted their feedback solicited. subscribers,” said Cone Director of New takes a considerable effort to reach these Only 28% were looking to be entertained Media Mike Hollywood. “Consumers’ privileged heights. by brands or companies. affinity can only tolerate five brands, so What attracts followers to brands? The study also found that new media companies need to think beyond the Seventy seven percent said incentives adoption has exploded for companies and coupon or clever widget to figure out like coupons or free products are key to brands, up 48% from only 2009. PR makes “quiet” $445 million impact in L.A.
By Greg Hazley than it was in 1990 — 2,466 in 1990, age in 2009. compared with 3,030 in 2008. By com- The LAEDC found that PR firms parison, advertising employment fell have increased by 15% since 1990, os Angeles county PR agencies five percent during that period. from 386 to 445. have a $445 million impact on the PR employment peaked at 3,079 in Lcounty’s economy, or about $1 the second quarter of 2008 and has fall- Media Briefs million per agency, although its eco- en steadily since then to about 2,474 in nomic might often flies under the radar, Q3 of 2009, the study found. CABLEVISION STUDIES according to an analysis by the L.A. Eric Moses, Chapter President and SPIN-OFF County Economy Development Corp. Director of Communications and Public Cablevision announced in November it’s commissioned by PRSA/L.A. Affairs for Occidental Petroleum Corp., exploring the spin-off of its Rainbow Media The study claims that for each of the said the figures show that PR con- cable programming division to shareholders in a nearly 3,830 PR agency jobs (including tributes “significantly” to the county bid to boost value. Wall Street cheered the news, bidding Cablevision stock up almost $3 to 731 independent consultants) in the economy and supports jobs in associat- $31.90. area, 1.7 jobs outside the industry are ed industries, often without much atten- Rainbow channels include AMC (producer of supported. The area also includes about tion. “Mad Men”), WEtv (Women’s Entertainment), 10,370 PR pros at corporations and “The findings clearly show PR is one Sundance Channel (independent films) and other entities. of the drivers of the business communi- Wedding Central. The unit owns IFC (specialty film production). “It is clear that the reach of public ty that often goes unseen and unnoticed Cablevision will retain its cable TV operation relations goes far beyond the single but clearly plays a vital role,” he said. that serves 3M homes in the New York metropol- industry and is felt throughout the econ- The L.A. PR business accounted for itan area, News 12 Networks, Newsday, omy,” the report states. $445 million in labor income, state and Clearview Cinemas and MSG Varsity, which cov- ers high school sports. L.A. PR jobs have not yet returned to local tax payments of $45.3 million in A spin-off would take place in mid-2011. a peak level reached in 2001. Total 2008 and helped sustain more than Cablevision has ruled out the sale of either annual earnings for PR professionals — 6,400 other jobs, the LAEDC report Rainbow or the cable systems. agency, corporate and other entities — said. Earlier this year, the company spun-off reached $780 million in 2009. The average annual PR agency wage Madison Square Garden, which includes the Jobs declined ‘significantly’ since ‘01 New York Knicks, New York Liberty, New York in L.A. in 2008 was $78,129, 50% Rangers and Radio City Music Hall. Cablevision’s But the study found that employment above the average of all workers in the founding Dolan family controls MSG via owner- at PR agencies has declined significant- county. PR managers in the corporate ship of its Class B shares. ly since 2001, although it is 23% higher sector earned about $113,070 on aver-
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FEATURE New plays for sports sponsorship opportunities As sponsorships come under increased scrutiny, companies look for growth and value from existing and potential partnerships. Given the current economic environment, they’re often finding more benefits than ever. By David Nobs
upon which to build. Supporting market- panies, product seeding, publicity and inte- espite current market conditions, ing and communications activities must be gration are vital to ensure that products sports continues to be the preferred integrated, memorable and tied to both “show up” in the right places in the right Ddestination for corporate spending, short and long-term business objectives. way. far surpassing entertainment, ethical and Also, consider international ramifications, Social media and Twitter can serve political causes and the arts, according to market-by-market variances, and market brands and properties as a customer-serv- recent industry reports. share as part of the sponsorship equation. ice tool that offers real-time perspective Integrated marketing has become essen- There are also several “intangible” con- on how people react to a game, a deal or a tial in planning, executing and measuring siderations in placing a value on a sponsor- critical decision. the success of sports marketing campaigns. ship: Many sponsors provide consumers with The keys to success lie in bringing a mar- • The value of creating an internal and unique “moments” through experiential keter’s sponsorship to life in real and external marketing program in which a marketing, events and promotions. Media meaningful ways. company’s employee and sales force can relations is essential in securing positive The trend these days is to make more unite behind and that becomes the focal news coverage, testimonials and third- with less, in terms of quality of activation point of internal and external communica- party credibility. Advertising, signage, versus quantity of sponsorships. Even with tions. interactive marketing, sales and collateral, the sophistication of measurement today, • The value of creating new business and hospitality drive the message home. there are no formulas to ensure success. relationships, business development While there are certainly risks as evi- Each sponsor creates its own methods and opportunities, greater corporate awareness, denced in some recent high-profile cases, has its own criteria for placing a value on enhanced corporate or brand image, good- celebrity endorsements can enhance its sponsorship investment and determin- will within the company, and goodwill brand image, drive sales and cut through ing the ultimate success or failure of a throughout the community. the sponsorship clutter. given program. • The value of improved customer rela- The most successful campaigns feature There are guidelines to help companies tionships, hospitality and client entertain- celebrities who have a genuine affinity make an intelligent decision. Here are four ment, and the value derived from associat- toward the company or product they rep- primary areas to consider when evaluating ing with a visible and established equity resent or have some “skin in the game” in a sponsorship opportunity: partner or event. terms of investment or compensation. • Financial value from the sale of prod- • The value of favorable, third-party The challenges most often involve con- ucts and services directly tied to a sponsor- media coverage resulting from sponsorship tractual issues, inaccessibility or the pos- ship property. involvement. sible negative repercussions or “guilt by • Pre-emptive value by keeping the • Finally, when placing a value on a association” that could occur in crisis sit- competition out of a particular area. sponsorship program, a company should uations. • Brand image value gained by associat- consider the cost of not being a sponsor. Measurement and evaluation ing with a particular sponsorship property. From a competitive standpoint, guerilla Perhaps the most critical aspect of • Intangible value for the company marketing has become an accepted tactic to sponsorship is determining what success internally and externally. minimize the value of a competitor’s spon- looks like at the outset of a campaign and First, establish a potential revenue base sorship program. measuring activities and events against that would come from the sale of products A company should analyze its costs, those pre-determined goals and objec- or services to existing and prospective cus- understand its reasons for participation, tives before, during and after. Many tomers. Set specific, measurable goals and develop goals and objectives, and integrate sponsors conduct benchmark research to objectives that will automatically define its marketing and communications activi- measure pre- and post-campaign percep- the category or area that is most appropri- ties to achieve success. tions among key audiences, calculate ate for your needs and, therefore, the Activation and integration aggregate reach and frequency, conduct approximate cost. Commit to promotional In developing strategic and creative media audits, and place an equivalent spending that is at least equivalent to the sponsorship campaigns, consider all ele- advertising value on visibility. cost of the sponsorship, taking into consid- ments in the tool box. More often than not, Today, the relationship between sports eration that most successful programs are public relations, product seeding and social and entertainment is inseparable yet based on ratios that are two or three times media set the stage for future advertising, interchangeable. Sports still make sense as much as the sponsorship fee itself. event promotion and sales & marketing as a way to enhance corporate image and In some cases, keeping the competition strikes that follow. increase product visibility. If done well, out of a particular field of interest, whether Strategic corporate and media partner- sports provide companies with advertis- it’s a league, team, sport or event, may be ships with like-minded companies can ing, sales & marketing, promotion, public the primary factor to consider in deciding broaden your reach and frequency. Online relations, interactive and internal com- on a particular opportunity. and offline marketing and promotions gen- munications value all in one package. It’s important to keep in mind that a erate leads and reach consumers in uncon- David Nobs is head of sports marketing sponsorship only provides a “platform” ventional ways. For consumer goods com- for The Lavidge Company in Phoenix.
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Frustrated reporters could learn a lesson from PR By Jack O’Dwyer Avredlund’s “trade association” was the New York Financial Writers Assn., which Kandel headed in 1986-87. She should have made speeches to financial and gen- panel titled “Financial Journalism eral audiences and tried to obtain time on Under Fire” was one long hue and TV and radio. Acry by journalists who say they She could have become a “Joan of Arc” discover scandals but find their stories are dedicated to leading the financial report- ignored. ing press corps. She could have sought the One panelist suggested they give them- help of a PR firm. selves a “Cassandra Award” named after One panelist noted that editors rarely let the Greek god who was able to predict a reporter concentrate on one story to the disasters but could find no one who would exclusion of others. believe her. Kandel said failure to follow up on sto- “Exhibit A” in the journalists’ tale of ries and seek action was a major flaw of woe was the “outing” of mega thief financial journalism. Bernie Madoff by Erin Arvedlund of As evidence that financial journalism Financial journalist Erin Arvedlund has been Barron’s in 2001. mostly failed in warning about financial credited as writing the first article that ques- She checked with option traders who abuses he noted that no Pulitzer Prizes tioned the investment tactics of Bernard said Madoff could not possibly get the were awarded for financial journalism in Madoff. Her book, “Too Good to be True: The results he was reporting. Arvedlund’s 2008-09. Rise and Fall of Bernie Madoff,” was recently Henriques cites Cassandra published. major piece, the result of months on the story, ran May 7, 2001 under the title Diana Henriques, NYT senior financial “Don’t Ask, Don’t Tell” (highlighting the writer who is writing a book about ly caught up to him on a “scratchy inter- secrecy that marked the Madoff opera- Madoff, asked, “What do you do when national telephone line” while he was tions). what you report is ignored? traveling on a boat in Switzerland. He “There was no reaction,” she moaned, “Remember who Cassandra was,” she wouldn’t go into “details” and did not adding, “I wish I had followed up … I said. “She was able to predict disasters tell her “anything of note.” wish I had proceeded further.” She then but no one would believe her. What is the Avrelund, who worked at a hedge fund expressed sympathy for the people who appropriate media response when a story start-up from 2006-08 and was a reporter lost billions (total was about $65 billion), like Erin’s and other fine stories…are for the Times, Wall Street Journal, saying further stories by her might have ignored by policymakers and lawmak- Barron’s and TheStreet.com, talked to prevented it. ers…at what point does the subject for more than 100 people in researching Kandel calls for follow-up criticism become a dead horse…you keep Madoff but fewer than five had ever met Moderator Myron Kandel, former CNN saying it over and over again?” him. financial editor, said it was not enough for Kandel noted at the beginning of the Reporters “lack knowledge” journalists to expect action just because panel, which took place April 30, 2009 at Jon Friedman, MarketWatch.com they wrote a story that appeared on the the CUNY Graduate School of columnist, said many financial reporters front page of a major medium. Journalism (and which we just discov- were lacking in basic knowledge about Arvedlund should have pressed her ered) that good stories “were rarely fol- such financial instruments as credit case with SEC commissioners and gone lowed up.” default swaps and collateralized debt obli- over their heads to the legislative and He said reporters incorrectly believe gations. executive branches of the government, he that people are going to read their stories Kandel asked those in the audience how said. and “do something.” many were familiar with such devices and Markopolos ignored Kandel is on the right track. only a few raised their hands. Reporters can learn a lot from PR pros, Kandel noted that financial fraud Sal Nuccio, a life active member of the many of whom have switched from just investigator Harry Markopolos com- NYFWA who has written on insurance for “getting ink” to getting “results” or “out- plained to the SEC for years about the NYT, said the credit default swaps comes,” as they also call it. Madoff and was ignored. were actually insurance used as a gam- Arvedlund should have asked herself, Markopolos called the SEC a “captive bling device and the CDOs had “no back- “What is my goal?” The goal was to save of the industry it regulates that is afraid ing whatever,” providing a “false sense of investors from being bilked out of bil- of bringing big cases against the largest security.” lions. She and her editors should have and most powerful firms.” He said that Markets were doing so well that no one called a press conference. Barron’s should as he dug into Madoff’s affairs he began wanted to look too closely at what was have shared its research with other media. to fear for his life because he was con- happening, he said. Big companies, many of them fierce vinced that Russian mobsters and Latin There was agreement that financial competitors, often band together in trade American drug cartels were Madoff news is not a hot topic with TV producers. associations to push their causes. clients. One producer told Susan Lisovicz, They not only work via their trade asso- Avrelund’s article focused on the wall CNN stock market correspondent, “We ciations but create “coalitions of coali- of secrecy around Madoff. After months know financial news is important but try tions” in Washington, D.C. of compiling details about him, she final- not to make it seem like medicine.”
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REPORT Legal hurdles, overkill plague today’s celeb endorsements Celebrity endorsements have long been a staple for modern ad campaigns. Decades of market suc- cess and almost universally enthusiastic responses from consumers have transformed spokesperson procurement from a cottage industry to a playbook standard. Recent legal hurdles, saturation in the media and new Federal regulations however, have left some wondering if the practice is now more trouble than it’s worth. By Jon Gingerich
particular illness were barred from endors- diately revoked. Pepsi dropped Madonna t’s been just over a year since the FTC ing pharmaceuticals on commercial ads. In after MTV aired her “Like a Prayer” video. published its new guides regarding the response, they were often paid to make Today, the legal binding of endorsement Iuse of testimonials and endorsements in appearances on talk shows. A cottage indus- contracts are noticeably tighter. Morality advertising. The first such changes to the try thus emerged, matching celebrities with clauses are longer, and more recourse is industry since 1980, the updated rules went a corresponding drug and then booking available to client companies if a celebrity’s into effect last December and affect all them on the talk show circuit, a practice that conduct threatens the product’s public forms of advertising, including broadcast, has shrunk. image. Major insurance companies are now print and blogs. “There’s a major decrease in that sort of even selling insurance packages where Especially affected by the new changes business now, because advertisers can just companies that hire celebrities can recoup are updates to the rules surrounding the reach consumers directly through ads,” said some of their lost fees when a crisis occurs. practice of celebrity endorsements. Jenney. “It’s pretty stunning what can happen,” Celebrities who endorse a product now The new landscapes governing celebrity Jenney said. “I’ve always been cognizant must disclose that they’re being paid to do endorsements — legal, technological, social on doing my research, but when guys you so and, in a notably vague section of — has made it a much different industry think are squeaky clean mess up, you can’t legalese by the FTC, an advertiser may “use than it was just a decade ago, and arguably, control it.” an endorsement of an expert or celebrity a harder one to work in. Celebrity saturation only as long as it has good reason to believe For one, the new gamut of legal concerns The Internet has made an increasd impact that the endorser continues to subscribe to has put a number of new, outsider hands in on the ways in which celebrities are used. the views presented.” the cookie jar. Concerned about its effects In the old days, endorsement deals were Celebrities must also disclose the rela- on the industry, more celebrity endorsement typically inked with a regional broadcast in tionships they have with advertisers when deals are now inked under the legal auspices mind, with celebrities paid according to its making endorsing statements outside the of union bodies like the Screen Actors reach. Now, with Internet tie-ins commonly context of traditional ads. Specifically, if a Guild. accompanying broadcast slots, it’s almost a celebrity makes an endorsing statement out- Moreover, because the new FTC rules are given that celebrity campaigns will be a side of an ad, say, on a TV talk show or even so difficult to explain, because they are dif- global partnership, using varying forms of on a social media site like Twitter, they must ficult to enforce internally, more deals are media. disclose that they are a being paid to do so. inked with the aid of lawyers, who increas- Some data however, suggests that con- According to some industry experts, this ingly find themselves at the forefront of sumer support for celeb-endorsed products portion of the new guidelines goes too far, endorsing campaigns. may be waning. According to a recent study as it analogizes a celebrity’s private life with “So far, awareness in the industry is pret- published by WPP, a deluge of celebrity their public persona. ty low, with the exception of when a con- endorsements may be responsible for “Celebrities are people too. If I can go out tract is review by lawyers,” Jenney said. “I diminishing returns in its effectiveness. and say my favorite brand of ketchup is don’t know how (the FTC) is going to Only about 35% of those polled said they Heinz, how can anyone say that celebrities enforce these rules. I don’t know if it’s even now believe celebrity endorsements can’t go out and say the same?” said Noreen legally enforceable. I don’t see how this can improve a brand’s image. The study also Jenney, Founder of Celebrity Endorsement become a major issue unless somebody files found that the effectiveness for celebrity Network, a Los Angeles company that a lawsuit.” endorsement seems to fade the older the acquires celebrity talen for ad agencies, PR Tighter contracts consumer gets. Only 14% of consumers in firms and corporate clients. Celebrity endorsements have a habit of the 35 to 54 demographic said they’d buy Unlike the 1980 version of the FTC forming relationships that, at times, seem something touted by a celebrity. Only 11% guides, celebrities can now be held liable for inseparable. From Joe DiMaggio’s work of those over 55 said they would do so. failure to disclose these connections. for Mr. Coffee to Michael Jordon’s Still, about a third of consumers in the Further, they can also be penalized for mak- decades-long relationship with Nike, the coveted 18-34 demographic said they’d try ing false or unsubstantiated claims during a role of celebrity as corporate pitchman has a product if it was endorsed by a celebrity, product pitch. been ingrained into the American psyche. and consumers this age are still about 50% Legal problems abound Of course, these relationships can be more likely to recommend a product if it is Jenney, who founded CEN in 1980, said fickle, and can backfire with tremendous endorsed by a celebrity. the current rules governing celebrity consequences. Tiger Woods’ marital infi- “I don’t know if the industry today is any endorsement are an almost polar opposite of delities was enough for him to famously bigger,” Jenney said. “Bigger advertisers what they used to be, as can be seen in the lose corporate sponsors like Accenture, have jumped in the pool and are spending former practices surrounding testimonial of AT&T, Buick and Gillette. After being more money on the people they’re buying, items like healthcare products. accused of rape, Kobe Bryant’s contracts but more than anything, I’d say it’s just dif- Previously, celebrities suffering from a with Nutella and McDonald’s were imme- ferent.”
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Social media plays vital role in Hollywood marketing By George S. McQuade III before you have even started editing it. There are programs where you just upload video “ clips, images, text and then he best way to get a following is to processes various options provide good content,” said social online with hundreds of royal- Tmedia expert Henna Merchant. ty-free songs to go with them. “People are attracted to other interesting Your presentations need to be people or content, so you have to think done early and should be com- about the people who are actually using pelling,” noted Vermeire. social media. If you want yourself to spread Vermeire wears many hats in virally, you’re going to have to touch the the Entertainment Industry. people who are most comfortable with the He’s a writer, producer, execu- technology, who are influencers. It’s not tive producer, host and actor your grandmother.” for various networks and pro- French filmmaker Evyha Cerhus speaks to the panel. Merchant is Principal of Clicked Digital duction companies such as PR and Marketing Communications, a firm FOX, The Disney Channel, Photos courtesy of MAYO Communications that melds digital influence, social and tra- The Family Channel, Vin ditional media, public relations, and mar- DiBona Productions and HombreTV. He’s a comedy producer with National keting. She was one of several speakers traveled as a seminar leader or guest speak- Lampoon. who participated in a two-hour social media er for SAG Conservatory, SAG “Sometimes what we do to support the workshop held during the L.A. Femme Foundation, The Actor’s Network and theatrical release of the film is offer an early Film Festival, that ran from Oct 14-17 in Children in Film. Currently, he’s the CEO prequel in film, a character lead out or build Hollywood. The L.A. Femme Film Festival of Holdon Log, and also a known stand-up out the story to create a fan base that will be is an annual, open-to-the-public event that comedian in the Los Angeles community. exciting and engage the viewer,” she said. showcases and celebrates films written, “The investor in an independent film is Lawson said there’s more than 800 hours directed or produced by women. you, the producer, and I think that’s why of hand-picked films and film-related pro- “Filmmakers’ first step should be using you’re going to pitch, you’re not going to gramming on Babelgum’s site. The compa- social sites to engage their fans,” said pitch to the studios, but rather to the peo- ny’s film products feature action and Gotham Chandna, an international social ple,” said Vermeire. “do the pitch first and adventure, animation and anime, classics, media expert, digital PR guru and the force start floating idea of this film that you have comedy, clips and interviews, documentary, behind Cloud 21 PR. “Websites are dead. coming out, and do it in an innovative way drama, horror and thriller short films. It’s really hard to change them, and it’s time using sites and tools at your consuming.” fingertips online, and see if Chandna is currently involved in devis- people are starting to say, ing and implementing successful social ‘Wow, this would be awesome, media strategies for actors, filmmakers, I’d really like to see this film.’” fashion designers, corporations and retail- “I’m more of a content per- ers. He has been involved in online market- son, so you need to provide ing since 2000, social media and blogging your audience with something since 2003. He is currently ranked in the that they want,” said Amber J. Top 100 Digital PR professionals on Lawson for Babelgum.com. Twitter. “The Paranormal Experience The social media workshop panel held during the L.A. “I hope you don’t have your project fin- was a good example where the Femme Film Festival, in Hollywood (L-R): Brian Vermeire, ished and now you are looking at social movie folks want a critical Kristina Hughes, George McQuade, Amber J. Lawson and media,” said Social Media Expert Kristina mass of media and took it Gotham Chandna. Hughes. online. You need to roll out Kristina is the Co-Founder of Holdon pieces of content of the story Log, a provider of organizational tools for that adds value to your audi- actors, models, comedians and background ence that you are constantly artists that offers products such as connecting with.” Performertrack.com, an online resource for Lawson, who manages com- actors that tracks, stores and analyzes per- edy content babelgum.com and formance and income history. has worked as executive pro- “Prior to having your product started or ducer on comedy shorts by done, there are great sites that can help you Landline TV, original content get going,” said Social Media Expert Brian like DateaHuman.com, and the Vermeire. “Sites like these allow you create second seasons of “The Crew” amazing, quick content that looks so pro- and “Old Friends.” Prior to fessional it’s ridiculous and it can really Babelgum, Lawson was VP of From L-R: Henna Merchant, Brian Vermeire, Kristina Hughes, George McQuade, Aida Mayo and Gotham Chandna. make your end product look professional Programming at Mania TV and
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FEATURE province of geeks like me, they are com- Social media predictions for 2011 pletely mainstream in Japan and they’re poised to grow exponentially here in the US, given that 51% of all Americans will be Where is social media headed? What’s important to learn carrying smartphones in 2011. There are a about today so we can be “in the know” six months down the number of great companies and apps cur- road? As we wrap up yet another year, here are a few predic- rently experimenting with (or betting their business on) QR codes, including RedLaser tions detailing what we might expect for social media’s future. (an eBay company), Paperspring and Big in By Stephanie Schwab Japan. I predict that we’ll see a great deal more in QR territory in the coming year, Consumer content curation broadcasts to all. including greater brand integration in print “Are we in the stream?” That’s the num- Services like shopkick appeal to in-store magazines, more consistent use in outdoor ber-one question brand managers should be shoppers who love bargains, and those media, and even some clever mashups of asking regarding their social media efforts whom want their location only to be known QR codes, gamification and social com- going into 2011. to the store they shop at. New platforms merce. In the coming year, people are going to like Foodspotting appeal to the foodie Social commerce be much more diligent about curating con- niche. Xtify’s geo-location technology is I started out thinking about this trend as tent coming to them into a more manage- going to allow a whole host of brands, such two trends: Group Buying and Facebook able form. Consumers are realizing that as Playboy, to unleash apps to target their Commerce. But the following dozens of brands on Twitter and exact demographic right where they are. more I thought about Facebook is getting them some good So, tell me what’s in it for me and promise it, the more I realized coupons and deals, but it’s also turning their that my mom won’t know about it, and I that it’s all the same walls into malls, which is getting over- just might buy in. thing: new ways to whelming. Gamification and social gaming leverage your social On Facebook, consumers are turning off 2010 was not only the year of location, it circle to help you brands posting to their walls, using friends was the year of Zynga, when they formally shop or share your lists to pay close attention only to their aligned with Facebook, cozied up to Apple, haul. In 2010, there “real” friends, and commenting on or shar- and generally made a mess of people’s free were a couple of ing only the most pertinent information. time with FarmVille and Mafia Wars and bold startups that Stephanie Schwab On Twitter, a company called Cadmus more. So what’s do I predict will happen in wanted consumers to aims to change the way we view our Social Gaming in 2011? It’s going to the share their every streams by determining what content is Super Bowl! purchase with their friends — Blippy and most relevant to you based on your Twitter You heard it here first, folks: I believe Swipely — but I think their adoption will usage patterns; other tools, such as Paper.li that a big brand is already planning to gam- be limited to people who are willing to and Flipboard (for iPad), also curate ify their Super Bowl marketing; we’ll see share more than the average person. Twitter, primarily based on content popu- everyday Joes chasing after some special Instead, when you add in a “what’s in it larity, and make that content much more trophy collection on their packs of beer. for me” component like with Groupon, or a reader-friendly. That trophy will of course tie in to the “look at me I’m so cool” component as For brands, this means it’s not going to be social web, where the consumer will share with Facebook Commerce, there are many enough to create content: you have to create their victory and the brand will collect all more people willing to share their individ- content that gets curated into people’s sorts of data on the trophy holders’ social ual purchases (or purchase intent) through streams. If your content is truly compelling spheres. their existing social platforms. and share-worthy, it’ll get noticed and And beyond the gridiron: FarmVille, for Social commerce also goes to the “fish “liked,” it will generate comments and one, has become a new testing ground for where the fish are” concept that I often retweets, it will have legitimately earned its brand integration — it’s come a long way invoke when talking about Facebook: if way into people’s streams. If not, you’ll in the past couple of months, even, with there are nearly 600 million potential cus- need a combination of search optimization new promotions for Farmer’s Insurance, tomers in Facebook, why not try giving savvy, fans in high places (influencers), and the Megamind movie and, yes, them something else to do with your brand maybe some cash to promote your content McDonald’s. In the coming year we’ll see besides grab a coupon? In 2010, savvy right under people’s Twitter noses using more, as well as deeper, brand integrations brands saw a solid rise in revenue from Twitter’s new Promoted Tweets feature. with existing gaming platforms as more mobile commerce applications; I predict Niche location brands creating their own gaming struc- that next year will be the year of social 2010 may have been the year of location, tures for consumer advancement into pre- commerce for brands that are bold enough but 2011 will be the year of niche location. ferred status, coupons, or freebies. to give it a go. While true that only 4% of the Internet pop- QR codes The next year is shaping up to include ulation is using location based services I may be too geeky for my own good, but plenty of creativity and innovation sparked (LBS), there’s no question that Foursquare I love QR codes. I even have one on my by social connectivity. and Gowalla were media darlings in 2010. I business card. I love how they add interac- Stephanie Schwab is the Principal of predict that in 2011 LBS will get more nar- tivity and trackability to traditionally un- Stephanie Schwab Consulting. She blogs rowly focused, which will make people trackable print and outdoor media, as well regularly on social media at more likely to use those services when they as a bit of whimsy and mystery to everyday www.stephanieschwab.com and feel that there’s a) a specific value returned, objects and events. www.socialmediaexplorer.com. She can and b) less of a feeling of “big brother” Although QR codes seem to still be the be reached via Twitter @socialologist.
14 DECEMBER 2010 WWW.ODWYERPR.COM Decmagazine:Layout 1 11/24/10 2:10 PM Page 15
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REPORT
“We’re very pleased with a number of Third quarter revenues rise achievements and positive trends in our business,” president and CEO Rick Despite an uneven global economic state, PR conglomerates Rudman said in a conference call. Rudman said the company has sold and services companies posted solid third quarter gains for about $1 million worth of subscriptions 2010 as an unexpectedly strong U.S. market parlayed with to its four-month-old social media mon- rising revenue in Europe and growing regions like Asia. itoring platform, which he predicted could grow to as much as $5 million in annual revenue in the next year or so. By Greg Hazley and Kevin McCauley exposure to U.S. advertising cycles by The next release of that platform, which diversifying into international markets will expand its use for the small busi- and marketing services businesses. Fitch ness market, is slated for early 2011. “ hile improvements in the upped IPG’s issuer default rating from The PR software and services economy are inconsistent BB+ to BBB. provider said it added 579 net new sub- Publicis Q3 revenue jumps 26% Wfrom region to region, we scription customers — Hormel Foods, have been pleasantly surprised by the Publicis Groupe posted a 26 =% jump Dow Corning and the U.S. Dept. of continued growth in the United States in third quarter revenue — including Energy, among others — ending Q3 and renewed strength in Europe’s major 12% organic growth in North America – with 7,752 clients. President and CEO markets,” Omnicom president and CEO citing an upturn in the global advertising Rick Rudman said Vocus expects to John Wren said Oct. 19, as the advertis- market and payoff from investments in reach 10,000 customers by next year. ing and PR holding company for agencies digital and emerging markets. Vocus expects revenue in the $25.6 million to $25.8 million range in Q4. like Ketchum and Porter Novelli reported Third quarter revenue rose to 1.3 bil- UBM revenue up a 5.4% rise in Q3 net to $174.6 million. lion euro (about $1.8 billion), including Interpublic reported a robust 88% rise 666 million euro ($932 million) in North United Business Media, the U.K.- in third quarter profit to $45.3 million on America. Publicis said operations in the based parent company to PR Newswire, a 9.4% jump in revenue to $1.6 billion. so-called BRIC countries — Brazil, said revenue for the first nine months of CEO Michael Roth said the perform- Russia, India and China — saw revenue the year rose 3.9% over 2009 to £642.9 ance demonstrates that the parent of rise 15.6%. million ($895.4 million). Weber Shandwick, MWW Group and “Despite traditional fourth-quarter Revenue for its targeting, distribution GolinHarris is “back on the path to sig- uncertainties, we are confident about and monitoring division (PRN) was up nificantly improved profitability.” how the year will end,” said Chairman 10.1% to £134 million ($187 million), He noted that Interpublic recorded 10 and CEO Maurice Levy. although the unit’s profit was essentially percent organic growth in the U.S. and Levy said digital now accounts for flat at around $43 million, which, UBM double-digit increases in developing 44.4% of Publicis’ overall revenue in said, reflected investment in product countries. During the nine-month period, North America. For the first three quar- development and IT. the ad/PR combine earned $63.2 million, ters, Publicis revenue is up 18.5% over David Levin, CEO, said the results versus a $15.1 million loss a year ago. 2009. have the company on track to meet Revenue was up 6.9% to $4.5 billion. Levy said the company’s October 1 expectations for the year, but he acknowl- Salaries/related expenses for the year acquisition of Indian PR agencies 20:20 edged wider economic “uncertainties” rose a modest 2.4% to $3 billion. There Media and social media unit 2020Social remain. was a sharp decline in severance outlays, makes its MSLGroup PR division UBM said U.S. newswire volume dis- plummeting from $94.9 million to $43.5 “India’s leading player in the disci- tribution to date is up 5.1% over million. pline.” That deal is subject to Indian reg- September 2009. PRN’s multimedia and Harris Diamond, Weber Shandwick ulatory approval. broadcast division, MultiVu, us up 26.6% Omnicom PR up 5.1% CEO, told O’Dwyer’s that IPG’s PR units this year and its financial printing and fil- operated on all cylinders during the quar- Omnicom said PR revenues rose 5.1% ing services rose 34.6%. ter. PR is outperforming other communi- to $280 million during the third quarter. PRN acknowledged an overarching cations disciplines due to a greater under- Overall revenues rose 5.5% to $3 bil- trend in PR that the media release will standing among CEOs and CMOs of its lion. likely not be the key cog in dissemination ability to sell products and influence OMC also said in October that it that it’s been in the past. The company is opinion, according to Diamond. The rise acquired a majority stake in Moscow’s kicking off a marketing push to its high- of social media and development of Maslov PR, which was Ketchum’s part- light multimedia options for getting mes- sophisticated measuring tools bodes well ner on work for the Russian Federation. sages out to audiences beyond the press for PR’s future. Ketchum received $7 million from — bloggers, consumers, shareholders — Though organic growth drove IPG’s Russia and its Gazprom energy opera- under the tagline “Engage Opportunity PR unit during the first-half, Diamond tion during the year ended May 30. Everywhere.” Vocus revenues rise 17% said there has been a dramatic pick-up in CEO Ninan Chacko noted that commu- new business wins. “We are aggressively PR Software provider Vocus posted a nications pros are “re-imagining” how hiring,” he added. $742,000 net loss for the third quarter on they develop and deliver content given an Fitch Ratings in late October upgraded revenue of $24.7 million, a 17% revenue “increasingly fragmented communica- rise over Q3 of ’09 but a wider loss from IPG’s outlook from “positive” from “sta- Continued on next page ble” noting its agencies have reduced $382,000 for the period last year.
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Luntz: Americans dislike buisiness, favor ethics
By Jack O’Dwyer “Smart ads” were a key factor in the suc- said employees come first at the company cessful campaigns of Bob McDonnell, who and that the best way to have happy became governor of Virginia, Chris employees is to hire people who are already rank Luntz, author of “What Christie, governor of New Jersey, and Scott happy. Americans Really Want … Really,” Brown, upset winner of a Senate seat in His view is that employees are No. 1 and Fwhich made the New York Times Best Massachusetts, he said. With ads, he said, customers are No. 2. The employees take Seller list in its first week, told the Arthur the first sentence is supremely important if care of the customers and the customers W. Page Society annual conference that the advertiser expects any further reading. take care of stockholders. Americans are turned off by “bigness” per Attending the conference at Palos Verdes Southwest has Ginger Hardage as SVP, se and want accountability, integrity and outside of Los Angeles were 150 Page culture and communications but Ridley principles from companies. members. said such duties are spread throughout the Such words as the “bottom line” and Ehrlich Describes Facebook entire leadership and particularly with the “profit” are out and in are words that put the Jonathan Ehrlich, Director of Marketing CEO. customer first such as “commitment,” he at Facebook, said services like Facebook The company culture tries to keep poli- said at the Page conference, Sept. 26-28. are connecting people in ways that they tics and confusion about what’s important Company statements that capture this spirit never imagined before. He feels social to a minimum, he said. and whose employees carry it out will do media are not something that can be han- George Aguel, SVP, Disney Institute, better in the marketplace, he added. dled by a supplier but require plenty of time said Disney focuses on the “Millennial” Luntz, a West Hartford native who has by people within an organization. generation which is sometimes referred to taught at the University of Pennsylvania Companies have to monitor how their as the “Ninja” generation (no income and and George Washington Univ. and who brands are being treated in social media no jobs available). analyzes politics for Fox News, said he where independent thought is the norm, he He said members of the new generation admires the company statements of Wal- said. like living close to home and are family-ori- Mart and Microsoft because they focus on Ehrlich said organizations have to keep ented. They think carefully before going customers and innovation. up with the blinding speed of information with a company, he added. He had special praise for companies that dissemination in social media. He urged Jack Bergen, former head of communica- highlight the role of the “chief ethics offi- brevity and relevance in providing input, tions at Alcoa and now VP of global human cer.” saying the new generation scans rather than resources, said he has developed a new Luntz, who has written and helped con- reads materials and likes lots of graphics. appreciation for the importance of employ- duct more than 2,000 surveys of various Photos as well as unique content bring ee communications. A definite plus, he said, types in more than two dozen countries, engagement, he said. Readers want some- is if a company can make Fortune maga- said candidates who pitched economic free- thing “special.” “How-to” advice is also zine’s list of the “Most Admired dom rather than capitalism did best in the popular, he added. Companies.” recent elections. Winners, he said, empha- Employees first at Southwest Communications and corporate reputa- sized their independence and their desire to David Ridley, SVP of marketing and rev- tion also play roles in labor relations and have Washington face reality. enue management at Southwest Airlines, compensation, he added.
THIRD QUARTER REVENUES RISE 26% over 2009 as the company unloaded unprofitable businesses, revamped its People in PR Continued from previous page operations, and was affected by a nega- tive currency impact. Net profit swung FACEBOOK PR EXEC TO tions landscape.” positive to SEK 20M ($3 million) from STEP DOWN PRN has released a series of white negative SEK 309M (-$46 million) for Brandee Barker, Director of Corporate papers on PR, IR and marketing. Q3 of 2009. Communications for Facebook, is leaving the “Never before have communicators Gieskes said the company’s main focus social networking giant after four years to start a had so many opportunities to develop and is to return to organic growth on the PR consultancy for early stage tech companies. deliver their content in such a multitude strength of its CisionPoint PR software, a She is slated to step down Dec. 10. of ways that can have an impact across so Barker was a VP at Zeno Group when she left push which will include sales and mar- in the summer of 2006 to many media and consumer groups, keting spending in addition to new serv- handle Facebook’s PR. She’s investor targets and industry influencers,” ices. served as the company’s he said. In North America, Q3 revenue was spokeswoman and managed Cision slips 18% amid turnaround essentially flat — SEK 189 million, com- its image during a rise from 10 million to more than 540 Cision posted an 18 percent dip in third pared with 190 million for Q3 of ’09. Its million users. quarter revenue of SEK 265 million decision to outsource broadcast monitor- She was previously at (about $39.5 million) compared with ing to Critical Mention will help reduce Ruder Finn and GCI Group 2009, as CEO Hans Gieskes said North fixed costs, Cision said. and worked on the corporate Brandee Barker American margins remain “very solid” side at Stamps.com (direc- The company reiterated its belief that tor, corporate comms.) and Oracle (director, mar- while its turnaround effort in Europe is the PR software market will consolidate keting comms.). “progressing according to plan.” over the next few years because such Elliot Schrage is VP of Global Comms., For the nine months of 2010, Sweden- services are “complex and expensive to Marketing and Public Policy for Facebook. based Cision’s revenue was down nearly develop.”
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REPORT Where have all the New York PR groups gone? By Jack O’Dwyer always “pointing with pride or viewing with alarm,” claimed that it created the concept of accreditation. Originally it was meant just for agency people but corporate PR people hile doing research on changing insisted on being added. APR was created in PR practices, we recently stum- 1964. Wbled across a 1975 list of 24 PR Roundtable was about 50 PR pros New York City PR groups and found that, who handled house PR for PR firms or ad regrettably, many of them have vanished. agencies. It had monthly lunches for many Some casualties include: years at which media figures such as The Chemical Communications “Johnny Apple” of the New York Times Association, whose members were 60 cor- would speak. It also hosted a major holiday porate, agency people and editors in the party each year for members and the press. chemical industry. They lunched on the sec- The job of handling “house PR” for a PR ond Tuesday of the month at the Williams firm or ad agency has almost entirely van- Club, 24 E. 39th Street. Dues were $20 a ished. year. Shop Talk, made up of two top executives The Financial Relations Society consisted from a dozen of the biggest PR firms, had of 50 corporate PR pros who had dinner dinner meetings at the Sky Club (atop what meetings on the second Monday at the is now the Met Life building) to discuss a PCNY President Peter Himler speaks at one Princeton Club and various restaurants. variety of topics. Anti-trust considerations of the Club's recent events. The organization Dues were $60. may have spelled its doom once this group hosts regular panels featuring editoral staff Hospital PR Society of Greater New York was outed. and media pros, with attendance usually had 80 members and met for lunch or din- Wall Street Irregulars had monthly lunch- exceeding 100. ner. Dues were $25. Contact was Grace es and an annual golf outing. Its more than Photo by Jon Gingerich Kraskin of Beth Israel Medical Center. 40 members, including financial press, met The Monday II Group was 20 New York at moderately-priced restaurants. James journalists, political figures and corporate corporate PR people who represented com- Catalano, formerly of Hill & Knowlton and executives. Kerryn King of Texaco panies based outside of New York. Lunches then with Marine Midland Bank, ran the arranged for Bob Hope to address one of at the Sky Club and other restaurants were group. the lunches. held on the second Monday. There were no Wednesday PR Group was about 25 solo The Publicity Club of New York, which dues. practitioners or owners of small PR firms for many years hosted weekly “Thirsty National PR Council of Health and who met once a month for lunch at the Thursdays” where editors spoke to mem- Welfare Services was a national group of Williams Club. bers, now hosts monthly meetings and 2,000 PR and fundraising executives of Women Executives in PR merged in 2006 workshop panels where communicators nonprofits based in New York at 820 in its 50th year with Advertising Women of and PR pros can meet and hear from the Second Ave. It was absorbed by PRSA in New York. Founded by Denny Griswold media. The events are held at the 3 West the late 1970s. who also founded PR News with her hus- Club, near the corner of 5th Ave. and 51 The New York Airline PR Association band, Glenn Griswold, WEPR had 75 mem- Street. had 58 members who worked for airlines bers in 1975. PCNY in the 1960s and 70s had an annu- Many groups still active serving New York. The group became the al “Introduction to PR” course at night that North American Airlines PR Assn. and had By far the most active group currently is drew hundreds. Attendance at PCNY monthly meetings until 2008 when it made New York Women in Communications, events is typically more than 100. Peter its final landing. A member said that with which has 1,300 members and a schedule Himler, formerly of Burson-Marsteller and airline h.q. flying outside New York and of more than 75 events in 2010. Edelman, and writer of the popular Flack declining funds available to PR, the group It broke away from the national blog, has been PCNY President for the past has become inactive. Hope remains for a Association of Women in Communications 10 years. rebirth. Contact Jennifer Janzen now works in 1997 and has since flourished. Its signa- The New York chapter of the in Berlin on social media for Lufthansa. ture event is the Matrix Awards lunch at the Entertainment Publicists Professional New York Business Communicators had Waldorf-Astoria that raises more than a half Society now only hosts several events each 175 members who met monthly at different million each year. year, where publicists and communicators places. Dues were $55 yearly. Contact was After NYWICI, PRSA’s New York chap- hear tips from editors and media pros. Its Bill Nicolai at American Standard. Anyone ter is the second most active group, with Los Angeles chapter however, has monthly in “business communications” could join. about 25 programs in 2010. Its main event luncheons. Paper Industry PR Group had monthly is the awards cocktail party each May. EPPS, with about 400 members, had rev- luncheons. Members included St. Regis Other events are workshops and seminars enues of $54,012 and expenses of $65,442 in Paper, Boise Cascade, Mead Westvaco, etc. on specialized topics. ’08, the latest year available on GuideStar. Pride & Alarm had 20 mostly agency During the 1960s and 1970s the chapter Cash/savings were $89,676 at the end of the members who lunched once a month at the hosted monthly lunches at the Waldorf- year. EPPS leaders include Henri Bollinger Wings Club in the former Biltmore Hotel. Astoria attended by more than 300. of Henri Bollinger Associates, and Scott P&A, so-named because PR pros are Prominent speakers included authors and Pansky of Allison PR.
18 DECEMBER 2010 WWW.ODWYERPR.COM Decmagazine:Layout 1 11/24/10 2:10 PM Page 19
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Profiles
O’Dwyer’s Guide to: ENTERTAINMENT & SPORTS PR
12.10
strategic plan development, inter- Varsity, ESPN’s 2010 World Cup action with client contacts, culti- coverage and ESPN Wide World vation of media promotions to of Sports at Walt Disney World, enhance advertising buys, adher- among others. The key to ence to timelines, timely progress Coyne’s success — and yours — reports, on-site execution and is that we garner coverage for event results and evaluation. our clients in expected and unex- Clients include the NFL; pected places. Showtime Boxing; Speedo; Dew Action Sports Tour; DKC MGM/Mirage Resorts; PGA and LPGA golf tours; MLB; Ginn 386 Park Ave. So., 10th Flr. Club and Resorts; AVP New York, NY 10016 Professional Beach Volleyball; 212/685-4300 Hollywood Park; Santa Anita; the www.dkcnews.com College Football Awards; the Sports Museum of Los Angeles; Sean Cassidy, President NHL; and the PBA. Scott Miranda, Managing Director Susan Novak, Executive Vice COYNE PUBLIC President RELATIONS Established in 1991, DKC is among the largest independently 14 Walsh Drive Parsippany, NJ 07054 owned public relations firms in 973/316-1665 the country. Since its founding, www.coynepr.com sports business and entertain- ment have been cornerstones of 1065 Avenue of the Americas the firm’s diverse client mix. 28th Floor DKC’s sports division works New York, NY 10018 across every corner of the indus- 212/938-0166 try, including activation of spon- sorships, promotion of high-pro- Thomas F. Coyne, CEO file events and name-brand con- John Gogarty, Executive Vice President, Entertainment sumer products and representa- Chris Brienza, Vice President, tion of key media outlets in the Sports space. Wayne Catan, Vice President, Working across music, film, Sports television, fashion and beauty, special events and corporate, Coyne PR’s Entertainment and DKC’s entertainment division Sir Paul McCartney rocks the stage as the headliner of Hard Rock Sports teams are specialized services a wide range of clients Calling 2010, a three-day live music festival in London’s Hyde Park as groups of public relations pro- and interacts on a daily basis part of Hard Rock International’s Ambassadors of Rock Tour on June fessionals who possess the cre- with the key media and industry 27, 2010. Hard Rock International is a client of Coyne PR. ativity, experience, and passion influencers whose opinions are to impact your business. The vital to the strength of the brands Photo credit: Hard Rock International/Andy Paradise. Entertainment team works with we represent. Hard Rock International, striving Sports clients include the U.S. to make the brand synonymous Tennis Association, New with great music events by gen- Balance Athletic Shoes, Citi, BRENER ZWIKEL & Brener Zwikel & Assocs. is a erating local and global buzz for Warner Home Video, THQ, PR and marketing firm with more the brand, events and top artists Modell’s Sporting Goods, New ASSOCIATES than 60 years of combined expe- from Shakira to Bon Jovi. The Era Cap, Harrah’s Hotels, rience in the sports journalism team has also worked with Casino & Resorts and Liberty 6901 Canby Ave. and PR fields. BZA has the expe- everyone from Tim McGraw for National Golf Course. Among Reseda, CA 91335 rience and contacts to maximize Hamburger Helper, Miley Cyrus our entertainment clients are 818/344-6195 client exposure via PR, promo- and Mariah Carey for the Walt Pete Wentz, 50 Cent, Sean www.bzapr.com tions, event planning, event pro- Disney Company, to Jewel and “Diddy” Combs, Rob Thomas, duction and marketing plans. Martina McBride for Mary Ed Burns, Jay Leno, Michael 1633 Broadway, 16th floor The firm’s network of media New York, NY 10019 Kay’s CMA Awards sponsorship. Eisner, Sony Pictures Television, 212/708-1703 contacts at the local, national and The Sports team has created win- Showtime, The Second City, WE international levels facilitates ning game plans for industry- Entertainment, The Huffington Steve Brener & Toby Zwikel, media placements. Its service- leading companies, including the Post, Sony Music Entertainment Principals oriented philosophy includes Harlem Globetrotters, MSG Worldwide, Sports Illustrated
20 DECEMBER 2010 WWW.ODWYERPR.COM Decmagazine:Layout 1 11/24/10 2:11 PM Page 21
PROFILES OF SPORTS & ENTERTAINMENT PR FIRMS
Swimsuit Issue, the Hollywood senting national movements Dream, NHL and Atlanta clients encompass film, theater, Reporter and Billboard such as the United States’ effort Thrashers, MLB, NFL, PGA, television and the performing Magazine. to host the FIFA World Cup in LPGA, U.S. Olympics, U.S. arts. Current clients also 2022. Figure Skating, USA Boxing, include actress Lynda Carter FLEISHMAN Women’s Sports Foundation, and the hit musical “Freckleface HAMILTON PUB- American Football Coaches Strawberry” based on the chil- HILLARD SPORTS Association, National Association dren’s book by Julianne Moore. & ENTERTAINMENT LIC RELATIONS of Basketball Coaches, Atlanta Former clients include Sports Council, NASCAR, The Paramount Home 102 Madison Avenue Friendship Games and profes- Entertainment, Walt Disney 200 N. Broadway New York, NY 10016 sional athlete foundations. Studios Home Entertainment, St. Louis, MO 63102 212/328-5200 From its beginnings, Hope- Outfest, No Good TV, Parsons 314/982-1700 www.getpr.com Fax: 314/982-8642 Beckham has been involved in Dance, Anoop Desai sports and entertainment. The (“American Idol”), Bryan Batt www.fleishmanhillard.com John Frew, President & CEO Kevin Sniffen, Director, Sports firm got its start developing and (“Mad Men”), Cheyenne John Graham, Chairman Marketing & Event Management touring the first women’s pro- Jackson (“Glee,” “30 Rock”) Dave Senay, President & CEO fessional baseball team to com- and Malan Breton (“Project Sean Lashley, Michelle pete against men. The Colorado Runway”). Stevenson, Entertainment Hamilton Public Relations is an integrated marketing commu- Silver Bullets travelled nation- Leaders ally and internationally provid- J.J. Carter, Jim Woodcock, nications firm that offers the KEITH SHERMAN Sports Business Leaders basic premise that every client is ing opportunities for media entitled to direct counsel and exposure and entertainment & ASSOCIATES Fleishman-Hillard Sports & service by the firm’s principals. events. Entertainment embodies the The agency offers clients a sea- Hope-Beckham excels in 234 West 44th Street same commitment to excellence, soned team of communications public relations and utilizing New York, NY 10036 dedication to client service and experts with more than 50 years events as media and client 212/764-7900 opportunities. 212/764-0344 focus on new business that of combined experience direct- www.ksa-pr.com clients and industry peers have ing campaigns for numerous The agency provides a variety of services to its clients on a come to expect from Fleishman- Olympic and World Cup spon- Keith Sherman, President Hillard. Our practice is made up sors as well as companies spon- local, regional and national Brett Oberman, VP of employees from more than 21 soring professional golf, base- level. Since 2007 Hope- Scott Klein, VP offices worldwide and brings ball, football, tennis, soccer Beckham has been named one Glenna Freedman, VP O’Dwyer’s both an international perspective motorsports, college athletics of Top Independent and local market knowledge to and amateur sports. PR Firms in Sports & Keith Sherman & Associates the implementation of sports- Hamilton is a unit of Bodden Entertainment. provides strategic public relations and entertainment-driven mar- Partners, an independent, fully- counseling and marketing com- keting programs. integrated marketing communi- JS2 munications services to a diverse Entertainment services cations agency based in New COMMUNICATIONS roster of entertainment, lifestyles, include consultation, strategy York City that offers full brand, sports and corporate clients. and execution; influ- digital and direct marketing KSA has publicized hundreds encer/celebrity seeding; talent services. 661 North Harper Ave., Suite 208 of films, network and cable televi- negotiation; media relations; Current and recent clients Los Angeles, CA 90048 sion broadcasts, Broadway, sponsorships; media training and include developing a new brand- 323/866-0880 national touring productions and message coaching; red carpet ing and media campaign for www.js2comm.com high profile events nationally and management, product placement Hofstra University’s NCAA internationally. Some clients and script integration; charity Division One basketball pro- 99 Madison Ave., 5th Floor include: Focus Features, and cause relationships; and dig- grams, the National Hockey New York, NY 10016 Universal Pictures, Olympic 646/430-5645 ital programs. Recent work League, the Ladies Professional Medalists Brian Boitano, Paul includes the creation and imple- Golf Association, the Duramed Jeff Smith, CEO Hamm and Michelle Kwan, Tony mentation of the Hallmark FUTURES Tour, The Barclays Jill Sandin, President Awards on CBS for 18 years, Celebri-Tree, aligning Tourism and Turning Stone Resort Alissa Pinck, GM/SVP Lang Lang, Mike Birbiglia, Australia with “The Oprah Championship PGA Tour Pete Sanders, Vice President Bolshoi Ballet and 250 Broadway Winfrey Show” and its Ultimate events, Bowne Global Solutions and Off-Broadway productions. Australian Adventure, and prod- and Black Mesa Golf Club. JS2 Communications is a PR KSA’s clients include: The New uct placements on shows such as agency with offices in Los York Times, Visiting Nurse “The Biggest Loser,” “Dr. Phil” HOPE-BECKHAM Angeles and New York dedicat- Service of New York, Hertz, and “The Ellen DeGeneres ed to providing clients with Sony, The Onion, Architectural Show.” INC. strategic solutions, candid coun- Digest, Columbia University, Fleishman-Hillard’s sports sel and tangible results. A true Memorial Sloan-Kettering Cancer business counselors have a wide 17 Executive Park Dr., Suite 600 full-service agency, JS2 Center, New York Marriott range of experience, from lever- Atlanta, GA 30329 Communications represents Marquis, The Broadway League, aging sponsorships to guiding 404/604-2613 clients in nearly every lifestyle Bristol-Myers Squibb, Abu Dhabi professional teams, leagues and [email protected] category, with a thriving enter- Festival and the Montreal Jazz governing bodies through the www.hopebeckham.com tainment practice run by Vice Festival, among others. challenges of public affairs, a David C. Van Voorhis, Director President Pete Sanders. From Excellence. Results. A fresh crisis or global expansion. In Business Development & Client ArcLight/Pacific Theatres on point-of-view. Proactive effort. recent years, Fleishman-Hillard Relations the West Coast to the Shaw Intelligent strategic thinking. has launched programs such as Festival in Canada to “Real Experience. High standards. the Nike+iPod Sport Kit and Hope-Beckham is proud of its Housewives of New York City” Integrity. Creativity. Passion. Tiger Woods’ landmark partner- work with the NBA and Atlanta star Countess Luann de These are some of the elements ship with Gatorade while repre- Hawks, WNBA and the Atlanta Lesseps, our entertainment that distinguish KSA’s work.
DECEMBER 2010 WWW.ODWYERPR.COM 21 Decmagazine:Layout 1 11/24/10 2:11 PM Page 22
PROFILES OF SPORTS & ENTERTAINMENT PR FIRMS
Roberts of ABC’s Dancing with expertise and insight for clients the Stars; Alyson Reed, ‘‘High and corporations seeking to use School Musical”; Erika Eleniak, entertainment and pop culture to “Baywatch”; Julia Anderson, connect with media, consumers, “True Beauty”; Eduardo Garcia, fans and communities. With a “No Country for Old Men”; staff of more than 150 in Los Mary Margaret Humes, “Grey’s Angeles and New York, the Anatomy”; Marina Anderson, agency represents a who’s who “Desperate Housewives”; and of personalities from film, Lissa Levin Guntzelman, “Mad music, television, sports and About You.” content creators, as well as cor- Leading the Travel Industry The story aired on all enter- porations, networks and estab- tainment TV shows like “Extra,” lished brands within the enter- “ET Tonight” and AP. Later, tainment world. by Providing Professional MAYO created a buzz for PMK•BNC delivers compre- Platinum Album Violin Duo, hensive solutions that include NUTTIN’ BUT STRINGZ, the public relations, entertainment Travel Services Since 1972 first instrumental artist to per- marketing and outreach, spon- form live with New York’s sorship, event marketing, prod- ABC's Dancing with the Stars' Louis Van Amstel leads the ladies in Ballerina on ABC’s “Dancing uct placement and integration. a free dance lesson at MAMMOJAM 2010 benefit to fight breast can- with the Stars.” The event was The company represents more cer at Dr. Susan Love Research. WKRP Producer Lissa Levin, a can- covered by several stations and than 250 celebrity clients, cer survivor dances in pink with Dr. Love behind Van Amstel. networks including Fox’s TMZ numerous television campaigns TV show. In Oct., 2010, MAYO and entertainment companies MAYOPR image created and moderated a power- and produces and/or publicizes ful social media workshop “How nearly 200 events a year. MAYO recorded more than to Market and Sell your Film Via PMK•BNC clients include MAYO 250 million media impressions Social Media” for the LA Cameron Diaz, Amy Poehler, this year. Most recently, MAYO Femme Film Festival, which Jimmy Kimmel, Miley Cyrus, COMMUNICATIONS created a social media campaign honored Actress Angela Bassett, Kim Kardashian, Carmelo and media buzz for the First “Green Lantern,” 2010; Angela Anthony, Kate Hudson, ESPN, Annual MAMMOJAM 2010, Kinsey, NBC’s “The Office” and “Gossip Girl” (and the CW 7248 Bernadine Ave., 2nd Floor Network), Shonda Rhimes West Hills (Los Angeles), CA Hollywood, CA raising aware- ABC’s “Dancing with the Stars” 91307 ness for Dr. Susan Love Research Singer Carmen Carter and others. (“Grey’s Anatomy”), “House,” 818/340-5300 foundation to fight breast cancer. PRSA recognized MAYO “How I Met Your Mother,” Fax: 818/340-2550 WKRP in Cincinnati twice for “Best Media Activision, Jenny Craig, Producer/Writer Lissa Levin is a Placement” MAYO clients are Academy of Country Music Aida Mayo, President breast cancer survivor and regularly featured in Variety and Awards, Academy of Television George S. McQuade III, VP MAYO client. MAYO organized Hollywood Reporter cover sto- Arts and Sciences, Audi, a benefit dance with ABC’s ries and on TV/radio talks Samsung, T-Mobile and MAYO communications has “Dancing with the Stars’” Louis shows/blogs. Gatorade. offices in LA, San Diego, NY Van Amstel and other celebrities A short list of MAYO clients: • Business Travel Consultants and Bern, Switzerland. It is a full offering door prizes, including Actress Marina Anderson, RBB PUBLIC service Los Angeles based enter- free dance lessons at the event Actress Kristina Hughes, Actor RELATIONS tainment publicity and public and at Van Amstel’s dance stu- Eduardo Garcia, Actor James • Strategic Meetings Management relations firm with a niche in dios. Joining 500+ women at the Karnes, Comedian Brian social media, traditional media event were celebrities such as Vermeire, Singer Carmen Carter, 355 Alhambra Circle, Suite 800 Locations: placement/media training. Louis Van Amstel and Jonathan Nuttin’ But Stringz, Miami, FL 33134 • Government Travel Contractors All4Media.TV, Warrior Records, 305/448-7450 Eddie Money and Crash Kelly. www.rbbpr.com North America “We don’t guarantee media, we • Over 200 Offices Worldwide , CEO just get it!” Christine Barney Lisa Ross, President Middle East Tina Elmowitz, Executive Vice • Competitive Online Booking PMK•BNC President Europe 8687 Melrose Ave, 8th Floor rbb Public Relations is a lead- • One-on-One Travel Consultation Los Angeles, CA 90067 ing national PR firm based in Asia 310/854 4800 Miami with a wealth of experi- ence serving sports and enter- • Leisure Travel Experts Find out about cruises sailing from New York 622 Third Ave., 8th Floor tainment clients ranging from and other worldwide destinations New York, NY 10017 professional teams and champi- 212/582-1111 onship events to industry lead- 888-333-3116 Michael Nyman, Chairman & CEO ing venues and family entertain- Cindi Berger, Chairman & CEO ment experiences. The agency Chris Robichaud, CEO prides itself on delivering results-oriented campaigns that PMK•BNC is the premier persuade, motivate and influ- Mike Golic of ESPN’s “Mike & Mike In the Morning” tries to blend in entertainment public relations ence consumer decisions, and with the hugely popular Florida Marlins Manatees, Major League and marketing agency that being recognized for best prac- Baseball’s first ever all-male dance/energy squad.” addresses the changing needs of tices in media relations, corpo- 212-563-3500 • OmegaNewYork.com the entertainment industry. The Continued on page 24 company provides unmatched World Headquarters • 3102 Omega Office Park • Fairfax, VA 22031• 703-359-0200 22 DECEMBER 2010 WWW.ODWYERPR.COM Decmagazine:Layout 1 11/24/10 2:11 PM Page 23
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212-563-3500 • OmegaNewYork.com World Headquarters • 3102 Omega Office Park • Fairfax, VA 22031• 703-359-0200 Decmagazine:Layout 1 11/24/10 2:11 PM Page 24
PROFILES OF SPORTS & ENTERTAINMENT PR FIRMS
Rocks, IMAX, 20th Century sports marketing public relations Fox, Lionsgate, Zurich Film campaigns for companies Festival, Edinburgh including FedEx, ExxonMobil, GM, U.S. Army, Kraft, International Film Festival, Campbell Soup Co., Polaris, Fidelity FutureStage, Gibson Degree, Mars, got milk?, Guitar, Baldwin Piano, and Sharpie, Champion and Crowne Warner Bros. Interactive Plaza. These campaigns have Entertainment. resulted in enhanced brand image, increased product/service WEBER awareness, extended audience and market positioning, and SHANDWICK heightened consumer recogni- tion and use. 919 Third Avenue Our experience extends to all New York, NY 10022 of the major worldwide sports 212/445-8000 leagues and properties including www.webershandwick.com FIFA World Cup, Olympic "WKRP in Cincinatti & Mad About You" Producer Lissa Levin (left) Games, MLB, NFL, NBA, talks to EXTRA on the red carpet about MAMMOJAM 2010 to benefit Gail Heimann, Vice Chair NCAA, NHL, USTA, Formula breast cancer research at Dr. Susan Love Research Center. Dr. Love Marc Abel, Executive Vice One, NASCAR, IRL, NHRA, is in the middle. President Action Sports, PGA, LPGA, MAYOPR image Pete Campisi, Executive Vice USGA and various PGA President Tournaments. Steve Johnson, Senior Vice RBB PR viding publicity and market- Recent highlights include President amplifying FedEx’s high-profile Continued from page 22 ing campaigns, special event NASCAR program; executing support, sponsorship activa- Weber Shandwick’s Sports activities and media outreach tion, celebrity/influential IMPACT practice designs and around MLB’s Home Run Derby rate and crisis communications, seeding, promotional tie-ins, implements consumer marketing for an insurance leader; and product introductions and digi- product placement and social campaigns that build connec- coordinating communications tal/social media. media strategies for our tions between brands and con- and community outreach coordi- sumers through entertainment, nation for the 2010 U.S. Army rbb’s sports and entertain- clients. ment roster includes organiza- sports and lifestyle influencers, All-American Bowl — the tions such as the Florida The agency offers a wealth and advocates. Army’s single largest outreach Marlins, the Orange Bowl of experience working with The firm creates integrated event. Committee, Ringling Bros. and celebrities, athletes, cable and Barnum & Bailey Circus, network TV, film production Disney on Ice, Monster Jam, and distribution, record labels, and the American Airlines video game producers, web Arena. Three-time “PR Agency of based content creators, sports the Year” winner, rbb gives its leagues and one-time or multi- Fortune 500 and entrepreneurial market events. clients award-winning counsel We embrace the power of and results, and the individual traditional and social media to attention available only through build brands, drive attendance a boutique agency. Explore how rbb’s employee-driven work- and viewership for sports and place delivers extraordinary entertainment programming client satisfaction at or live events, as well as gen- www.rbbpr.com or call erate increased awareness for 305/448-7457. products, brands and services. Our team embraces the oppor- ROGERS & tunities presented by the ever COWAN evolving media landscape, whether it’s through targeted blogger outreach, social net- PACIFIC DESIGN CENTER work marketing or online 8687 Melrose Ave., 7th Floor Los Angeles, CA 90069 video. 310/854-8117 Recent clients/projects have Fax: 310/854-8106 included Cooking Channel, www.rogersandcowan.com Food Network, GRAMMYS, Tom Tardio, CEO Yo Gabba Gabba Live, Heather Krug, EVP Discovery Channel, Scion’s Reinvent the Wheels, Kraft Rogers & Cowan has exten- Real Women of Philadelphia, sive expertise in the sports and NASCAR, PGA Tour, USA entertainment industries pro- 7’s Rugby, ShoWest, Reality
24 DECEMBER 2010 WWW.ODWYERPR.COM Decmagazine:Layout 1 11/24/10 2:11 PM Page 25
O’DWYER’S 2010 RANKINGS OF ENTERTAINMENT PR FIRMS
1. 21. Ruder Finn New York $5,800,000 McNeely Pigott & Fox Nashville 246,074 2. 22. Edelman New York 4,868,443 Richmond PR Seattle 236,726 3. 23. APCO Worldwide Wash., D.C. 1,697,895 VPE PR S. Pasadena, CA 223,731 4. 24. Hunter PR New York 1,668,448 Levick Strategic Comms. Wash., D.C. 215,846 5. 25. 5W Public Relations New York 1,605,622 JS2 Communications Los Angeles 214,900 6. 26. Jackson Spalding Atlanta 1,069,270 Seigenthaler PR Nashville 201,367 7. 27. Regan Comms. Group Boston 935,000 rbb Public Relations Coral Gables, FL 168,247 8. 28. Kaplow New York 800,000 Pierson Grant PR Ft. Lauderdale 164,500 9. 29. Coyne PR Parsippany, NJ 660,000 Guthrie/Mayes & Asscs. Louisville 161,554 10. 30. Middleberg Comms. New York 500,000 Zeppos & Associates Milwaukee 154,917 11. 31. Travers, Collins & Co. Buffalo 494,786 The Rogers Group Los Angeles 142,340 12. 32. IW Group W. Hollywood 486,000 Linhart PR Denver 125,438 13. 33. CooperKatz & Co. New York 467,271 Trevelino/Keller Atlanta 110,000 14. 34. Hope-Beckham Atlanta 414,528 Boardroom Comms. Plantation, FL 100,000 15. 35. Public Communications Chicago 344,061 Blaze Los Angeles 83,800 16. 36. Gregory FCA Comms. Ardmore, PA 342,000 Kwittken & Co. New York 67,044 17. 37. Widmeyer Comms. Wash., D.C. 330,356 TransMedia Group Boca Raton, FL 42,500 18. 38. Catalyst PR New York 307,179 Maccabee Group Minneapolis 24,542 19. 39. Zeno Group New York 298,297 Vollmer Houston 24,314 20. 40. Landis Comms. San Francisco 247,700 Schneider Associates Boston 18,500
O’DWYER’S 2010 RANKINGS OF SPORTS PR FIRMS
1. 12. Edelman New York 4,046,876 Zeppos & Associates Milwaukee 154,917 2. 13. Catalyst PR New York 3,964,615 VPE PR S. Pasadena, CA 99,996 3. 14. Coyne PR Paramus, NJ 1,338,000 McNeely Pigott & Fox Nashville 69,362 4. 15. RF|Binder Partners New York 1,300,000 Hope-Beckham Atlanta 68,779 5. 16. Regan Comms. Group Boston 956,000 Rasky Baerlein Boston 51,460 6. 17. rbb Public Relations Coral Gables, FL 550,033 Richmond PR Seattle 50,835 7. 18. CooperKatz & Co. New York 528,060 Boardroom Comms. Plantation, FL 50,000 8. 19. Allison & Partners San Francisco 421,916 Guthrie/Mayes & Asscs. St. Louis 44,689 9. 20. Rosica Public Relations Paramus, NJ 323,122 RL PR & Marketing Los Angeles 42,176 10. 21. Levick Strategic Comms. Wash., D.C. 309,119 Vollmer Houston 29,516 11. 22. Jackson Spalding Atlanta 172,185 Moore Consulting Group Tallahassee 21,906
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OPINION Professional Development PSAs ... yes, PSAs brand. By Fraser Seitel lion viewers last year, the three network Q. How has the economic recession morning shows lost 300,000 viewers, and impacted the market for PSAs? TV ratings continue to decline at the RS. It’s helped. As more commercial know it’s the 21st century. And I hands of Apple iOS apps alone? airtime opens up in unsold blocks, more understand that communicators today For answers, we turn to the dean of slots are filled with PSAs. Our clients Itweet and befriend and blog and that PSA producers, Ray Salo, of San Ramon, have experienced upwards of a 10% TV viewing is now by appointment only Calif., whose Salo Productions has been increase in results over the 2009-2010 via TiVo and DVR pumping out award-winning, 10 to economic downturn. and Video Capture 60-second TV and radio client public Q. How has PSA placement changed Card. (I may be old, service announcements for three decades. over time? but I’m not dumb – Q. With the decline of broadcast tele- RS. In recent years, most of our TV or at least, not that vision and the rise of on-demand, com- PSAs are for brand building and cause- dumb!) mercial-free programming, why would related brand building, for everything So why in the an organization use PSAs? from safe burgers to causes of asthma to world would I raise RS. For one thing: Cable. We distrib- keeping up with social security. the subject of PSAs ute PSAs to 500 cable systems across Q. What are the best topics for PSA as a publicity vehicle the nation. This greatly increases the coverage? Fraser P. Seitel has in this digital age? RS. been a communications pickup in the top 20 markets. One recent Traditional topics for PSAs are consultant, author and ‘Cuz they work, TV PSA for our longstanding Icelandic safety and health. But today, few topics teacher for 30 years. He that’s why. In fact, in Tourist Board client received 15 uses in are off limits, and almost anything that is the author of the the words of one the top 15 TV markets. offers information in the public interest Prentice-Hall text, The admittedly-biased Q. But isn’t such pervasive use the is fair game. Practice of Public exception in such a saturated TV Q. Do celebrities help PSA usage? Relations. PSA producer, “The Public Service marketplace? RS. They aren’t necessary, but they Announcement as RS. We guarantee our clients 2,000 certainly don’t hurt. We’ve produced tool to build brand identity is stronger telecasts. We average 2,000-4,000 recent PSAs, featuring NASCAR driver than ever.” telecasts, 25-50 million viewers, Bobby Labonte on Internet safety for How could that be, you ask, when the $200,000-$400,000 in “value of air children and baseball player Ken three network newscasts lost half a mil- time.” That’s a lot of attention for a Griffey, Sr. on ending Prostate Cancer. But most spots we produce feature no celebrities. Q. Don’t most PSAs run at odd hours? RS. Late night is about 25-33%. Technically, PSAs are used ROS, mean- ing “run of schedule,” which includes all time periods. Q. What’s the idea length for a PSA? RS. The ideal TV PSA combination is a 30-second spot and a 60-second spot. That’s what our standard PSA package includes. Q. How much does a typical TV PSA cost? RS. In most cases, our total package – from creation to production to distribu- tion – runs under $45,000 all-in. Q. What time of year is best for PSAs? RS. Summertime provides the heaviest usage, but PSAs run throughout the year. Q. How long do PSAs run on TV stations? RS. Usually for six months, with the first three months providing the most hits. Q. Can PSAs be re-released? RS. Yes, probably unique among pub- lic relations vehicles, re-release of a PSA in the second year usually provides good results.
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Financial Management Impact of ‘Small Business Jobs Act’: part II By Richard Goldstein Cell phones Roth IRA, and in most cases will be Effective for tax years beginning after subject to income tax. The income trig- his month’s column continues 2009, cell phone and similar devices gered from the conversion is spread the discussion of the Small used for business are no longer classi- 50/50 between 2011 and 2012 (the tax TBusiness Jobs Act of 2010. Last fied as listed property. due will be payable over a two-year month, immediate Therefore, these devices are no longer period) unless an election is made to expensing of depre- subject to the detailed usage records to recognize all the income in 2010. ciable property, prove that a cell phone is used for busi- Rental property bonus depreciation, ness. Regardless, if one cell phone is For payments made after 2010, own- and health insur- used for both business and personal ing a rental property will be considered ance costs was dis- calls, some sort of record keeping will a business for Form 1099 purposes. cussed. be necessary to determine the business Conversion from Therefore, rental property owners will usage. generally be required to file a Form C to S corporation An employee who uses his or her own Richard Goldstein 1099 for any service provider that is is a partner at On the chance cell phone for his or her employer’s paid $600 or more during 2011. Service Buchbinder Tunick & that some readers business can claim the related costs as a providers can include your CPA, yard Company LLP, New recently converted miscellaneous itemized deduction. York, Certified Public care, painting services, etc. Accountants. from a C to S cor- However, because of the limitation on Business credits poration, the SBA miscellaneous itemized deductions A business credit can reduce your tax changes the rules (must exceed two percent of adjusted liability related to your business. for paying additional tax on the so gross income) and the alternative mini- Unlike personal credits, many-business called built-in gain on the conversion. mum tax, it is possible that no tax ben- related credits are subject to a special For tax years other than 2009 and efit will be received. Employers need to limitation, called the general business 2010, the period subject to the built-in establish an “accountable plan” to con- credit. gains tax is ten years. For tax years vert deductions that receive no tax ben- beginning in 2009 or 2010, the ten-year efit into reimbursements that are not The general business credit is not a period is reduced to seven years. For subject to income tax. separate credit; it is a compilation of tax years beginning in 2011, the SBA There is speculation that the IRS one or more separate business-related exempts gains from the tax if the fifth might soon issue guidance allowing credits that are specifically included by year of the recognition period has gone employers to provide cell phones to law within the general business credit. by before the start of 2011. employees as a tax-free working condi- The reason for grouping the credits as Accordingly, there is now a seven- tion fringe benefit. one is to impose an overall limitation. year recognition period for gains recog- Form 1099 The credits include the investment nized in tax years beginning in 2009 It is not uncommon for PR firms to credit; the research credit; low-income and 2010 and a five-year recognition use “freelance” help. Starting in 2011, housing credit; disabled access credit; period for gains recognized beginning the IRS will be able to access much renewable electricity production credit; in 2011. higher penalties, in some cases double credit for small employer pension plan Start-up cost deduction the existing penalties, for failing to file start up costs; employer provided child This is much easier! If you launched Form 1099 information returns with the care facilities; and seventeen in 2010, the SBA increases the maxi- IRS and failing to send copies to pay- others. mum deduction that can be claimed for ees. Prior to the SBA, business credits start-up costs to $10,000 (this is up Roth conversions generated in the current year that from $5,000). Start-up costs that Some qualified plans, typically cannot be used due to the limitation exceed the $10,000 threshold can be 401(k) plans, allow employees to make rule can be carried back one year and amortized over 180 months, starting salary-reduction contributions to desig- forward 20 years. The SBA creates an with the month when business com- nated Roth accounts. These accounts exception that allows unused credits mences. are similar to the IRA Roth, but they are that arise in the first year that begins in Example: John and Mary formed JM operated by the retirement plan not the 2010 to be carried back five years. PR on June 1. They incurred $18,000 of individual. The SBA will now allow a This exception only applies to costs (expenses) before actually begin- plan participant to roll over distribu- eligible small businesses. This includes ning business on August 1. tions from the “regular” part of the plan a corporation that doesn’t have publi- The SBA allows JM to deduct into his or her designated Roth account. cally traded stock, a partnership (an $10,000 of start-up costs on its 2010 The change is effective on September LLC with more than one owner is a tax return. The remaining $8,000 can be 28, 2010. partnership for tax purposes), and have amortized over 180 months, starting in The impact of this change is the same annual gross receipts for the preceding August of 2010. as rolling over the distribution into a three tax years of $50 million or less.
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OPINION Guest Column What sports PR pros learned in `10 By Arthur Solomon day after the U.S. team was eliminated about the team (which isn’t much of a from the Cup competition showed that change from some sports writing by staff only 26 percent of respondents remained members of other dailies, whose articles nother year has nearly passed interested. Considering the population often looks like they’re nothing but since the beginning of the Great make-up of the city and the large number promotional pieces for the home team). ASports Recession. What have we We learned that Congress is still push- of Hispanic stars on the Mets, that’s a learned? The main lesson: the old bro- pretty devastating result. ing baseball, which promotes players as mide about sports being recession-proof Media promote ‘iconization’ role models to clean up its act: First is not true. We learned that the ‘iconization” of steroids and more recently wanting We learned that athletes, fostered by sports marketers, baseball to prohibit smokeless tobacco the Russians cer- advertising agencies and PR firms, is use during games. Can football be far tainly believe that abetted by the media. While one finds it behind? On April 23, the Wall Street politics and the difficult to believe that Tiger Woods’ Journal reported that “just under Olympics mix: extra-curricular activities were not one-third of the 327 players who attended Russian Prime known to at least a few of the golf media, this year’s NFL pre-draft scouting camp, Minister Vladimir Tom Watson publicly said that Woods or combine,” used marijuana. And the Putin lambasted the has not shown the same stature of other Feds began intensifying its investigation judging of an ice- golfing greats and that he should show of pro cycling’s misuse of substances. Arthur Solomon is skating event and some humility to the public and clean up We learned that another branch of the a former VP for President Dmitri government, the Supreme Court, isn’t Burson-Marsteller. his on-course behavior, his language and Medvedev called club throwing. Surely that had to be swayed by the pass, run and kickers of for athletic officials known to the media because it happened the NFL by ruling that the league is not to resign or “we will help them” because right on the golf course. a single business when merchandise is of their countries poor showing at the We learned, as if we didn’t know, that being sold. But the rest of the story is Vancouver games. the real sports game is “money,” as all still unwritten: will the Justice’s unani- We learned that the United States who stand to make a buck from Woods’ mous decision affect other issues? Olympic Committee also thinks that pol- return to the 24ct gold links — the golf, We learned that the NFL stopped say- itics have a place in the Olympics by hir- TV and sports marketing industries — ing that the Earth is flat and admitted ing Dutko Worldwide, a Washington warmly welcomed him back. that concussions can have long-term “strategy” firm to cultivate ties with We learned that golf, sports marketers effects. Congress (perhaps to obtain direct feder- and TV need Woods if they wish to keep We learned, according to a Wall Street al support for its teams)? the sport as a major audience media Journal story of April 10-11, that sports We learned that Greece, proud home event. Woods’ selection to the Ryder sponsorship may not be the best way for of the modern Olympic Games, wasn’t Cup team, despite a lackluster comeback, marketers to spend big bucks. The story much helped by staging the 2004 compe- was prima facie evidence. said that a plurality of those surveyed tition in Athens. We learned that some of the media now couldn’t name any sponsor associated We learned from the International Luge wants to control a newsmaker, instead of with Major League Baseball. A story in Federation that driver error caused the reporting on the person’s remarks: Golf the June 28-July 4th issue of death of a luger on the Winter Olympics Writers Association refused to cover SportsBusiness Journal, showed that slide. (They said so in an April release, Woods’ coming-out press appearance brand identification with the National and who can be skeptical of any official because they were limited to three Hockey League was not an important report?) reporters. CBS subsequently turned factor in purchasing products or services. We learned that USA Swimming — the down a chance to interview Woods We learned that a new phrase has national governing body of competitive because he would only agree to a five- entered the lexicon of sports: sexual swimming in the United States — had minute interview. addiction. coaches who preferred the breast stroke There are two things wrong with these We learned that the body slams and to others. stands, in my opinion: By not taking other punishing blows during wrestling We learned that, like the Olympic advantage of the opportunity, they could matches are — what a shocker — not real Games, sports and politics also mix in have missed a breaking story. and can be performed on a Broadway the World Cup. After poor play, Nigeria The second reason is best summed up stage. Who said so? Linda McMahon banned its team from international com- by former Boston Globe sports editor, said so during her campaign as the GOP petition for two years and a French par- Vince Doria, a senior vice president and candidate for a Senate seat from liamentary committee held a hearing to director of news at ESPN. “The alterna- Connecticut. And she should really examine why their team played so poor- tive was not to do the interview, and that know. She formerly was the top banana ly. of World Wrestling Entertainment. wouldn’t serve our viewers,” he said, Politicization of sports We learned that, like the Olympic adding that there were no restrictions on Games, once soccer’s World Cup was the questions or the person who would But there was also an important new history, interest in the U.S. was negligi- do the interview. wrinkle added to the sports scene in 2010 ble (compared to baseball, football, bas- We learned that Gannett’s Asbury Park for marketers to ponder: when do ads ketball and even hockey). In fact, a SNY Press okayed an employee of the New Continued on next page poll during a New York Mets game the Jersey Devils to write byline articles
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Guest Column What’s happening behind the technology curtain? By Lou Hoffman venture capital will never reach levels While venture capitalists make sure their achieved in the past. They point to the portfolio companies show up on the right ou already know Facebook enjoys modest number of new venture-funded lists, there is no “census bureau” that the clout of a sovereign state. It’s startups as exhibit A that the rate of inno- goes to door-to-door capturing the boot- Yhard to miss the battle for vation in the tech industry is on the strappers. supremacy in the decline. Like their venture-backed brethren, mobile phone mar- But these numbers don't show the total these startups also need public relations ket as Google, picture. to build their brands and profiles. Apple and Microsoft knock A funny thing happened on the way to It’s not only already happening, but heads. We've startups “enjoying” rejection after rejec- happening on a global scale. become numb to the tion in the quest to raise money. We’ve supported startups based in acquisitions from Entrepreneurs figured out that venture Korea, Japan, Singapore, China, the UK, HP, IBM and Oracle capital isn’t a requirement to starting a the Ukraine and Canada in just 2010. as they strive to company. Bootstrapping has become the More than the obvious PR services, these Lou Hoffman is CEO new black, which makes sense when you of The Hoffman Detroit-ize the tech companies need guidance in how to Agency, a PR agency sector. consider two macro trends. effectively enter the U.S. market. They with offices in the But here’s what As our lives — both personal and busi- don't have large marketing departments. U.S., Europe and Asia. we’re seeing in the ness — increasingly move online, there Heck, they often don’t have a VP of mar- tech sector that are enormous opportunities for even a keting; the CEO serves in this role by doesn't necessarily generate headlines, single programmer to help invent this default. but stands to play a role in shaping the new digital world. That creates new opportunities for PR industry in the coming months. And thanks to “the cloud,” which com- agencies. The unglamorous part of innovation — moditizes computer processing much Whether it involves localizing the the 18-hour days that go into building a like electricity, the infrastructure costs website to U.S. tastes or making sure the product with the requisite course correc- for startups has been reduced to a pit- actual product is ready for prime time, tions that come from learning on-the-fly tance. someone needs to be taking a holistic — couldn’t be healthier. The upshot: Tens of thousands of start- approach to communications on behalf Everyone laments that the flow of ups are toiling away in relative obscurity. of international startups.
WHAT SPORTS PR PROS LEARNED letes as product pitchman. Even before alluding to guns featuring Kobe Bryant Continued from previous page it was aired, the politicians were getting and LeBron James appeared in several involved. publications. The ad was denounced Sarah Palin wrote that NOW, which by the NBA and Cleveland city offi- featuring sports personalities cross the pushed for CBS to drop the ad and stick cials rejected a proposal by Nike for a lines dividing the marketing of products to football, “is looking at the pro-life billboard based on the ad. and religious and political beliefs? issue backwards” and urged that CBS, Adding a Marx Brothers element to The Tim Tebow pro-life ad for the “Just do the right thing. Don’t cave. the 2010 scene was the NFL’s heavy- Christian conservative advocacy group Have the backbone to run the ad.” handed response to mom-and-pop tee Focus on the Family introduced a new The Tebow Super Bowl ad may also shirt stores in New Orleans, threaten- element into the “should we or should- open the door for other TV sporting ing them with cease and desist letters n’t we” controversy of marketers tying events to become rife with advocacy for using the “Who Dat” phrase on their programs too closely to an athlete. commercials. merchandise leading up to the Super If athletes become associated with Organizations whose ads are rejected Bowl. Especially ludicrous because controversial agendas, what will the will claim prejudice and censorship by the chant is said to have originated with affect be on sales to consumers who the networks, gaining media coverage a high school that began using it in have a different point of view? that will take the spotlight away from 1972 at its football games. Unlike most athletes of the past, many more traditional marketers that relied But, most importantly, we learned today are more likely to voice their on getting an extra bang for their com- there is life after mega events sponsor- opinions about political situations. mercial bucks by dominating the news ships as companies abstained from Example: MLB players and their union coverage for days before and after events like the Super Bowl and voiced disapproval of the Arizona anti- mega sporting events. Olympics and still survived. immigration law. And athletes are While the controversy over the So what should sports publicity-seek- speaking out on other issues: David Tebow commercial was still generating ing marketers do as the activities of too Wright of the N.Y. Mets did a TV significant news coverage, a basket- many athletes can be covered by either commercial extolling the union workers ball-themed controversial ad joined the police beat or sports journalists? who built Citi Field. fray. They can require their agencies to Tebow’s Super Bowl ad has the possi- Shortly after two Washington develop programs that targets sports bility of future marketers distancing Wizards players were suspended for fans without running the risk of being themselves from using “political” ath- having guns in the locker rooms, an ad blind-sided by an athlete-gone-sour.
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BOOK REVIEW Guest Column ‘Deadly Spin’ distorts reality of PR profession By Richard Edelman clarify fact ... and there are plenty of eth- ical PR people out there to do this.” He spent a weekend in November read- quickly takes back even this modest ing “Deadly Spin,” former PR man acknowledgement with his other hand, IWendell Potter’s tale of his conver- “With PR so intricately woven into sion from corporate “spin-meister” to every major industry and today’s mass healthcare reform advocate. Potter’s media reality, the stakes of spin have story moves along become incredibly high. And ethics do two tracks, a per- slip. PR often crosses the line into mis- sonal awakening to leading, withholding or simply lying. the evils of man- And when it does, society suffers …” aged care inter- Most outrageous is Potter’s conflation spersed with salvos of propaganda and modern public rela- against the PR busi- tions. He goes back to one of the giants ness. of the profession, Edward Bernays, I will concentrate whose book “Propaganda,” written in on his critique of 1928, ostensibly wound up on the book- Richard Edelman PR, leaving the shelf of Third Reich minister Joseph Wendell Potter speaks at NYU on Nov. 16. is President and healthcare issues to Goebbels. CEO of Edelman. those more expert in Potter then goes on to suggest that Photo by Jack O’Dwyer the field. Hitler’s Mein Kampf discusses manipu- Potter’s central thesis is that “Good lation of public opinion “in terms that PR is about control … PR people are could be used by one of today’s PR Ok, Mr. Potter, since you are calling us good at manipulating the news media counselors.” He quotes the Fuhrer as out, let me agree with you on a few because they understand them … PR saying, “All effective propaganda must points. I do not subscribe to the use of people cultivate reporters, ostensibly for be limited to a very few points and must front groups to cover up the true intent friendship or mutual benefit, but more harp on these in slogans.” He even of a client. I do not endorse the use of realistically for manipulation ...With quotes the Institute for biased research surveys that years of practice, I learned how to Propaganda Analysis purport to be factual repre- respond with a pithy remark if I wanted report from the late 30s sentation of the views of the to be quoted and how to baffle them with uncovering effects of public. I do not advocate bullshit if I didn’t ... Be obscure clearly domestic manipulative duplicitous communications ... I became a master at doing just that.” practices of advertisers campaigns where clients say Potter acknowledges that “PR has and businesses, using one thing and mean another. been used to good ends. Even the “propaganda/PR ploys” Here is where you and I noblest of causes can benefit from the such as “Fear, Glittering part company. You have no services of a communications expert to Generalities, Testimonials, right to say that big and well Name-Calling, Plain Folks, connected PR firms have a PR news briefs Euphemisms, Bandwagon reputation “not so much for and Transfer by Respected public relations as for public EURO RSCG LONDON AND Individuals.” deception.” BISS LANCASTER MERGE He concludes his book Nor do you have carte Euro RSCG London announced in November with a bizarre “What If?” He suggests blanche to say that many of the bigger that it is merging with Euro RSCG Biss Lancaster that “without basic knowledge of PR tac- firms “pay little heed to ethical guide- to form a single PR consultancy. The move will “put PR at the heart of the cre- tics and the ability to distinguish between lines because they are happy to take ative process at Euro RSCG London,” according to fact and distortion, Americans — and your money and launder it.” a press release issued by the company. The com- that includes journalists — are at the Nor can you say that third party pany said the merger reflects “how fragmented mercy of spin doctors and PR practition- experts recruited to be credible spokes- media channels have accelerated client demand ers whose loyalty to their clients out- men “won’t have a thing to do with op- for more genuinely integrated marketing commu- nications.” weighs the public’s right to the eds except lend their names.” The new PR consultancy will now be known as truth….We need the Woodward and You have done the public a great dis- Euro RSCG London PR. The two companies Bernsteins of coming generations to service in distorting the PR field, which already work together on a number of clients ensure that Americans have access to provided you a good living for the better including Peugeot, Reckitt Benckiser and Australian Wool Innovation. truth and that a health balance between part of your career. There will always be As part of the integration the Manchester and news and spin is in place. Otherwise our much to criticize in the world of PR, but Edinburgh offices of Biss Lancaster will be re- news will be coming, whether we know do not call into question the motives of branded Euro RSCG Manchester PR and it or not, from companies with names the vast majority of practitioners who Edinburgh PR, respectively. Both offices are man- like the Hawthorn Group, Edelman, are interested in the truth and in educat- aged by Managing Director Brian Beech. Porter Novelli and APCO. If so, our way ing stakeholders about issues of our of life will truly be threatened.” time.
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PEOPLE IN PR Abernathy MacGregor Group president Economist crowns Adam Miller as a Senior Advisor as the GCI taps Novartis vet Sorrell ‘King of the $30 billion deal moves toward fruition. for social media COO Steve Burke Mad Men’ has worked with Miller for more CI Health has brought in Novartis Pharmaceuticals Social Economist than a decade and he (Nov. 6) anointed GMedia Director Mark Davis to said he will be a WPP CEO Martin Sorrell “King of lead its digital health operations. Tthe Mad Men” for positioning the great asset to the GCI, part of WPP’s Cohn & Wolfe, 25-year ad/PR conglomerate on top of the company, an endorsement that said Davis has been asked to “broaden heap on Madison Avenue. the strategic vision” for its digital health The British business magazine notes could put Miller atop the media offering, while also that Sir Martin is “sometimes put down handling client by critics as a Allison Gollust giant’s corporate communications work and new finance-obsessed business under ‘bean counter,’ but apparatus. Gollust, a 14-year veteran of NBC, is CEO Wendy Lund. he delegates a lot Davis handled and has placed slated to step down Dec. 31, the compa- ny said. regulatory and legal astute bets such as issues in social deciding that the “I was honored to play a role in telling the story of NBC Universal and I leave media, among other advertising industry duties developing would become knowing that it is poised for an exciting new beginning,” she said in a statement. Mark Davis digital communica- increasingly driven tions across the Martin Sorrell by technology.” Gollust was named EVP in July 2009. She was Senior VP of NBC News and drug maker’s A third of WPP’s brands. $14B revenues started out as a publicist, later moving to “Today.” Gollust joined NBC after Prior to seven years at Novartis, he comes from advertising. was VP/Consumer Experience at Merck- Sorrell’s acquisition game plan is built directing communications for the Colorado Rapids of Major League Medko after marketing posts at on buying good businesses, taking time Prudential and American Express. to know the firms, locking in manage- Soccer. ment for five years and some “luck,” he says. Levinsohn says Yahoo WPP’s bullish performance this year is Weber Shandwick due to robust demand in the U.S. market, rebounding from severe cutbacks in Hires Hynes oss Levinsohn has joined Yahoo! as 2009. Executive VP for the Americas in Television ad spending is leading the Rcharge of media operations, ad sales ony Hynes, a 20-year veteran way because marketers traditionally look and corporate partnerships. He replaces of the hi-tech scene, joined to the media to build brands while Hilary Schneider, who resigned in TInterpublic’s Weber Shandwick “online is more about price and offering a September. Nov. 22 as Executive VP in Northern deal,” according to Sorrell. California and part Levinsohn served Sorrell says much has changed since of its technology as President of “Mad Men,” the TV show about ad agency leadership. News Corp.’s Fox life during the 1960s. But he watches the He was West Interactive, where he program and says its portrayal of “egos, Coast General led Rupert Murdoch’s turf wars and political incorrectness” still Manager at Bite $1B foray into rings true today. Communications, digital, a drive was where he capped by the NBC Communications handled HP, Sun ill-fated acquisition Microsystems and of MySpace, which is currently being chief to step down Tony Hynes helped launch the Ross Levinsohn Next Fifteen unit’s reorganized. llison Gollust, Executive VP of cleantech practice. Upon exiting Fox Corporate Communications for Earlier, Hynes was Director of Global Interactive, Levinsohn was co-founder and ANBC Universal, will step down PR/Corporate Communications at managing director of Fuse Capital, an equi- when the company’s megamerger with Hitachi Data Systems and staffer at IBM ty firm focused on the digital space. Comcast is consummated at the end of and SAP. Earlier, he held posts at AltaVista, a search the year. Hynes reports to Robert Dowling, site; CBS Sportsline and HBO. She is the chief spokeswoman for the head of WS’ North American technology Carol Bartz, Yahoo CEO, says the company and NBC CEO Jeff Zucker, practice, who calls Hynes “one of Levinsohn hire will “allow us to solidify who has been told by Comcast that he the most recognized communications our position as the largest digital media, will not be retained. professionals in the technology content and communications business Comcast in early October brought in industry.” around the globe.”
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WASHINGTON REPORT Glover Park hired to protect U.S. foreign aid
he U.S. Leadership Coalition has hired Glover Park Group to stave off cuts to the U.S. international affairs budget as TRepublicans get set to control the incoming 112th Congress with cost cutting on their minds. The Coalition, in the aftermath of this month’s election, issued a statement to say that though it recognizes “budget realities” it is critical to support the Defense Dept., which calls for “greater investments in the civilian side of our global engagement tools.” In September, the Coalition released a poll that found nearly 90 percent of military officers agree that public diplomacy and a strong military are critical to U.S. security. Eighty-three percent The Treasury Dept. has called cigarette smuggling a threat to say food/health/education assistance and economic development national security. Doggett says a global study conducted in the funding are important to national security. 1990s found that a third of the world’s manufactured cigarettes was The Coalition also favors federal programs to support exports, not accounted for. They simply vanished, Doggett testified to saying each dollar spent returns $40 to the U.S. economy. Congress earlier this year. The Coalition includes more than 400 companies and non-gov- ernmental organizations like General Electric, Northrop Grumman, Wal-Mart, CARE, Catholic Relief Services, Pfizer, Ex-Cheney aide to ACC American Israel Public Affairs Committee, Microsoft, Mars Inc. Better World Campaign, Lockheed Martin, Mercy Corps and International Rescue Committee. nne Womack-Kolton, the Brunswick Group hand who Glover Park’s Coalition team includes Brett O’Brien, former moved in-house at client BP during the Gulf oil crisis, Ahas landed at the American Chemistry Council. aide to former House Majority Leader Dick Gephardt; Lindsay Lee, ex-staffer for former Congressman Joe Knollenberg, and Womack-Kolton, a former Press Secretary for Vice President Nicole Sawran, former staff director of the Senate Democratic Dick Cheney and Dept. of Energy PA director, has been tapped Steering Committee. as VP of Communications for the D.C.-based trade group for the chemicals industry. Womack-Kolton reports to ACC president and CEO Cal BP puts Dempsey in charge of Dooley and to the trade group’s board. The ACC has been looking to bulk up its communications D.C. relations apparatus as it is currently advertising four open PR posts – director of online advocacy comms.; director, regional comms.; P has tapped a company VP who handled external affairs in manager, product/panel comms., and senior director, advocacy Florida during the Gulf oil spill to serve as BP America’s liai- comms. Bson to stakeholders in Washington. After her Bush administration stints, she was a VP at APCO, Ray Dempsey, VP, Strategy and Portfolio for the company’s fuels where she landed after exiting BP, according to the ACC. value chain strategic performance unit, has been tapped as VP of She joined the Bush/Cheney campaign in 2000 from the Texas Government and PA for BP America. Attorney General’s Office. Dempsey, a 20-year veteran of BP, was part of the company’s response team to the Deepwater Horizon oil spill, serving as a spokesman handling “information sharing” in Florida for the com- Mexico splits with APCO pany during the crisis. Dempsey testified before the House Committee on Homeland he Mexico Tourism Board wound down work with APCO Security Subcommittee on Management, Investigations and Worldwide on June 1, according to the independent PR Oversight on June 12. Tfirm’s federal filing. The firm had provided counsel on trade, security, border, and tourism issues under the $1.4M pact Gephardt seeks to snuff out agreed upon in 2009. APCO had a 15 people handling the work. Senior VP Charles smuggling of smokes Krause was project manager of the team that included former Congressman Don Bonker, online director Evan Kraus and ephardt Group Government Affairs represents APCO Insight president Mark Benson. Switzerland’s SICPA Product Security, which wants to The firm received $705,113 in professional fees from Mexico Gaffix its digital stamp on American cigarettes to counter during the six-month period ended Sept. 30. smuggling. The Mexico Tourism Board has a separate one-year pact worth Texas Congressman Lloyd Doggett has been pushing the $330K pact with Qorvis Communications. Smuggled Tobacco Prevention Act, which requires a digital stamp The country’s image-tarnished state of Baja California hired as a tool to recover lost federal tax dollars. It also is a way to com- Allison & Partners in September for a travel and tourism push bat organized crime and terrorism (Hezbollah). amid drug cartel-fueled violence.
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International PR News UAE pays Harbour for AF/PAK, U.S./UAE legal cooperation and staffers at both the American soccer PR Jewish Committee and Anti-Defamation League about the UAE’s threat to ban BlackBerry smartphone service. he U.S. Emirates Alliance paid The Harbour Group $956K in PR fees for the six-month period ended Sept. APCO acquires Arab firm T30 for activities from contacting U.S. officials about sta- bility/humanitarian development in Pakistan and Afghanistan to promoting the opening of a soccer pitch atop an elementary PCO Worldwide has acquired JiWin PR, which is part public school in New York City. of Dubai Holding’s Tecom Investments. Tecom invests On the Af/Pak front, Harbour arranged meetings with Dan Aand manages “knowledge industry clusters” such as Feldman, State Dept’s special representative to those coun- Dubai Internet City, Dubai Media City, Dubai Studio City, tries, along with his deputies Vikram Singh and Jarrett Blanc. Dubai Knowledge Village, Dubai International Academic City, D.C.-based Harbour briefed State Dept.’s United Arab and Dubai Outsource Zone. Emirates desk officer Bridget McGovern about the visit of the APCO CEO Margery Kraus, CEO of APCO, is eager to tap Manchester City Football Club to the U.S. and then worked JiWin’s “extensive knowledge and contacts in the Middle with the principal and a teacher at the Lexington Academy in East.” She refers to Dubai as the “intersection of global trade Manhattan’s Spanish Harlem. and commerce connecting Asia, Africa, Europe and the wider The UAE Embassy and Manchester City, which is owned by world.” Abu Dhabi royal Sheikh Mansour bin Zayed Al Nahyan, JiWin counts 35 PR pros working in corporate communica- donated the lighted synthetic field, the first in Manhattan, as tions, community relations, IR, crisis and issues management. part of the UAE’s community soccer initiative. It’s designed to Clients include Dubai Holding, Noor Islamic Bank, Merck, forge closer grassroots ties in the U.S. Johnson & Johnson, NASDAQ Dubai and Young Arab Leaders. Harbour also contacted Attorney General Eric Holder about Dubai Holding is owned by the Government of Dubai. 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 commu- nications work on behalf of foreign principals, including governments, political parties, organizations, and individuals.
Kreab Gavin Anderson (USA), Inc., New York, N.Y., registered November 2, 2010 for the Government of the Philippines, Manila, Philippines, regarding promotion of the Philippines.
M. Silver Associates, Inc., New York, N.Y., registered November 10, 2010 for Turkish Culture & Tourism Office, New York, N.Y., regarding providing public relations services.
Podesta Group, Inc., Washington, D.C., registered November 5, 2010 for Republic of India, Embassy of the Republic of India, Washington, D.C., regarding providing strategic counsel to the principal on communicating priority issues in the United States-India bilateral relationship to rel- evant U.S. audiences including the U.S. Congress, administration, media and policy community.
Lobbying News 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 http://sopr.senate.gov.
Akin Gump Strauss Hauer & Feld LLP, Washington, D.C., registered November 10, 2010 for BakkenLink Pipeline LLC, Houston, Texas, regarding international energy pipeline issues.
Constantinople & Vallone Consulting LLC, New York, N.Y., registered November 12, 2010 for Vacant Property Security, Inc., Chicago, Ill., regarding property security and development.
Mercury (Formerly known as International Government Relations Group), Washington, D.C., registered November 12, 2010 for Kee Action Sports, Sewell, N.J., regarding training and recreation issues.
M.T. Phillips Associates, Inc., Burke, Va., registered November 5, 2010 for Open Space Institute/Outdoors America, New York, N.Y., regarding S. 2747 (Land and Water Conservation Authorization and Funding Act), S. 3663 (Clean Energy and Jobs Oil Company Accountability Act), and H.R. 3534 (Consolidated Lands, Energy and Aquatic Resources Act). Interior Appropriations issues are anticipated.
RR&G, LLC, Washington, D.C., registered November 3, 2010 for Bond Dealers of America, Washington, D.C., regarding financial institutions regulatory reform.
Womble Carlyle Sandridge & Rice, PLLC, Washington, D.C., registered November 4, 2010 for National Corn Growers Association, Chesterfield, Mo., regarding providing specific advice on the federal legislative process specifically targeting agricultural trade policy during the 111th Congress.
DECEMBER 2010 WWW.ODWYERPR.COM 33 Decmagazine:Layout 1 11/24/10 2:11 PM Page 34
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