Ketchum

Ketchum office, Avenue des Arts 44, Brussels

Ketchum is one of the largest public relations agencies employing over 1100 people across 21 offices and with 35 affiliates around the world. It is owned by Omnicom.

History

In 1923 by George Ketchum formed Ketchum Communications as a Pittsburgh-based advertising company which later evolved to include a public relations practice.

In 1996 it became a subsidiary of the Omnicom Group with its work consolidated into five practice areas Brand Marketing, Corporate, Food & Nutrition, Healthcare and Technology.

In 1991 a leaked memo from Ketchum, hired by the Clorox Corporation to develop a crisis management plan, detailed proposed responses to a number of hypothetical scenarios, including a peaceful protest by Greenpeace at a Clorox factory. Among the recommended tactics was the launch of a "Stop Environmental Terrorism" public relations campaign.

Ketchum and the Armstrong Williams scandal

In 2003, the U.S. Department of Education signed a $700,000 contract with Ketchum to do "rankings of newspaper coverage of the No Child Left Behind law" and to produce a video news release (VNR) touting the law, which featured Education Secretary Rod Paige and promoted a tutoring program offered under the new law. The VNR, narrated by faux reporter Karen Ryan (actually a PR pro), generated controversy since it "comes across as a news story but fails to make clear the reporter involved was paid with taxpayer money." A similar VNR promoting the Bush Medicare law was found by the Government Accountability Office to be covert propaganda in violation of federal law. [4]

Download Ketchum's contract with the U.S. Department of Education, to promote the No Child Left Behind Act (1.6 MB PDF file).

Download Ketchum's request for increased funding for their "Minority Outreach Campaign," featuring Armstrong Williams (132 kb PDF file).

Documents obtained on Ketchum contracts with the U.S. Department of Education through a FOIA request from the People for the American Way are available for download here.

U.S. Government PR Contracts

According to the U.S. House Committee on Government Reform Minority Office, Ketchum received the following amounts per year, for federal PR contracts: [5]

• $1,692,000 in 1999
• $2,552,000 in 2000
• $3,657,000 in 2001
• $2,563,000 in 2002
• $31,163,457 in 2003
• $58,895,846 in 2004

The firm's website and the Public Relations Society of America's database of Silver Anvil Award Winners indicate that Ketchum has worked for the following federal agencies, in addition to its Education Department work:

• Internal Revenue Service, to promote 'Ten Minute Taxes' with Telefile;
• Department of Health and Human Services, to 'change the face of Medicare,' promote long-term health care planning, encourage preventative care, and raise awareness of home health care information; and
• U.S. Army, to 'reconnect the Army with the American people' and boost recruiting around its 225th birthday, in 2001.

In May 2005, a PR Week story on the Centers for Medicare and Medicaid Services request for proposals on its outreach work over the next five years reported that, "Under the last umbrella contract ... Ketchum led a $25 million integrated marketing campaign to drive people to the Medicare (800) number and website." [6]

Despite the controversy over the Armstrong Williams contract, Ketchum won a a $25 million contract, including $2 million in fees, to manage the advertising campaign as part of a $300 million, three-year U.S. government effort encouraging seniors to sign up for the new Medicare prescription drug program.

Ketchum "produced a controversial series of prepackaged news stories," or video news releases (VNRs), for the Department of Health and Human Services (HHS). VNRs that Ketchum produced for the Department of Education were also recently found to be "covert propaganda."

The Washington Post reported, "HHS officials say Ketchum got the new work because it already had a multiyear contract to provide public relations services for the department. The firm promised the new ads will not cross the legal line." HHS's Kathleen Harrington said that seniors trust Medicare information more when it comes from the government, so "it's in the interest of our success ... to label everything appropriately." [7]

Russia

In November 2014 Ketchum ended the bulk of its work for the Russian Federation in the US and Europe due to tensions between the West and the country. A statement from the firm said 'Ketchum no longer represents the Russian Federation in the US or Europe with the exception of our office in Moscow'. 'Our partner in the consortium, [ Omnicom subsidiary GPlus ], continues to operate under the terms of the contract'.

Ketchum were paid nearly $23 million by the Russian federation from 2006 through mid-2012, according to ProPublica, as well as $17 million by energy giant Gazprom.

Clients

PRCA lobbying register

December 2015-February 2016

Booking.com | Cristal | London South Bank University | Philips

September 2015-November 2015

Booking.com | Cristal | London South Bank University | Philips

June 2015-August 2015

Booking.com | London South Bank University | Philips

March 2015-May 2015

Booking.com | Cristal | London South Bank University | Philips

Ketchum's client list (most listings from O'Dwyers PR Daily and the APPC register) includes:

• 3M
• Absolut
• Alberto Culver
• Almond Board of California
• American Iron & Steel Institute
• American Red Cross
• AstraZeneca
• Aventis
• Bank One/First USA
• Biogen
• Biopure
• Booking.com
• BP
• Bristol-Myers Squibb
• British Tourism Authority
• Britvic
• CMA German Agricultural Industries
• California Dried Plum Board
• Cardinal Health
• CareFirst Blue Cross Blue Shield
• Centers for Medicare and Medicaid Services
• Cingular Wireless
• Combe Inc.
• ConAgra
• Covidien
• Cox
• Cristal
• Delta
• Walt Disney
• Dixie International Brands
• Dow Chemical Company
• Duckling Council
• Dulux
• Elan Pharmaceutical
• Equifax
• Estee Lauder
• Federated Dept. Stores
• FedEx
• Fireman's Fund
• Florida State Board of Administration
• Frito-Lay
• Genentech
• Gillette
• Hampton Inn
• HUGO (Human Genome Organization)
• Hyundai Motor America
• IBM
• Immunex
• International Carwash Assn.
• International Truck & Engine (Navistar)
• Invista
• Johnson & Johnson
• Kikkoman International
• Kimberly-Clark
• Kodak
• Levi Strauss & Co.
• Liberty Alliance
• Lions Club International
• London South Bank University
• Master Foods
• Mattel
• Medtronic
• Merck
• Merial
• Montefiore Medical Center
• National Cattlemen's Beef Assn.
• New York Stock Exchange
• Newport News
• Nokia
• Novartis
• OrthoMcNeil Pharmaceuticals
• Pabst Blue Ribbon
• Panamanian Tourist Board
• PeopleSoft
• Pitney Bowes
• Potato Board
• Procter & Gamble
• Quaker Oats
• Roche
• Schwinn
• ServiceMaster
• Siemens
• Solvay
• Starbucks
• State of South Carolina
• StubHub
• The Clorox Co.
• The Home Depot
• Tropicana
• U.S. Department of Education
• U.S. Dept. of Health & Human Services
• UCB Pharma
• Universal Health Services
• VNU
• Warner Home Video
• Water Pik Technologies Inc.
• Wendy's International
• Wyeth
• Yahoo! en espanol
• Zapf Creation [8]

Personnel

Senior executives

• David R. Drobis Chairman Emeritus
• Raymond L. Kotcher, Senior Partner/CEO
• Rob Flaherty Senior Partner/Global Practices Managing Director/New York
• Daniel R. Madia Senior Partner/Global Chief Administrative Officer
• Jerry Olszewski Senior Partner and Chief Client Officer
• Lorraine Thelian Senior Partner and Vice Chairman
• Dale Bornstein Senior Partner and Director, Global Practices
• Barri Rafferty Senior Partner and CEO, North America
• Scott Proper Associate Director
• Charlotte Forbes principal, Stromberg Consulting
• Mindy Rubinstein Chief Communications Officer

Other Staff

• Rod Cartwright Partner & Director, Global Corporate Practice
• John Paluszek, Senior Counsel

UK APPC Register

September 2014-November 2014

Chris Abell | Victoria Barton | Lilia Bednarek | Jordan Campbell | Rod Cartwright | James Hardy | Rupert Lewis | Philippa Maloney | Jo-ann Robertson

June 2014-August 2014

Chris Abell | Victoria Barton | Lilia Bednarek | Jordan Campbell | Rod Cartwright | James Hardy | Rupert Lewis | Philippa Maloney | Jo-ann Robertson

March 2014-May 2014

Rod Cartwright | Jo-Ann Robertson | Rupert Lewis | Victoria Barton | Christopher Abell | James Hardy | Jordan Campbell | Pippa Maloney | Lilia Bednarek

Former Staff

• Paul Baverstock head of UK corporate practice. Former director strategic communication for the Conservative Party and has worked at Bell Pottinger Group, MHP Communications, Centre for Social Justice
• Gary Stromberg principal, Stromberg Consulting
• Kim Sample Partner Associate Director. Now CEO of Emanate
• Chris Atkins Partner/Director of global corporate practice. Former vice president of Hill & Knowlton, chief operations officer New York Office of Burson Marsteller, managing director of Ogilvy Public Relations Worldwide, vice president of communications at Standard & Poor's and managing director of US public relations and communications at PwC.
• Rob Lorfink Chief Financial Officer. Now chief financial officer, Americas at Omnicom Group.
• David Catlett Partner/Director Global Healthcare. Former president, healthcare PR at Euro RSCG. Now executive director of GolinHarris

Contact Information

711 Third Avenue
New York, NY 10017
Phone: 646/935-3900
Fax: 646/935-4499
Web: http://www.ketchum.com

Case Studies and internal documents

• Ketchum tackles corporate responsibility
• Copy of Kethcum's Leaked Draft Clorox Crisis Management Plan (4.6MB Pdf file)
• Greenpeace USA Media Release on Copy of Kethcum's Leaked Draft Clorox Crisis Management Plan

Material from PR Watch

• Sheldon Rampton, "Ketchum (the UN's PR Firm) Tackles Corporate Responsibility", PR Watch, Volume 9, No. 3, 3rd quarter 2002.
• Sheldon Rampton, "Corporate Social Responsibility and the Crisis of Globalization", PR Watch, Volume 9, No. 3, 3rd quarter 2002.
• Sheldon Rampton, "Terrorism as Pretext", PR Watch, Fourth Quarter 2001, Volume 8, No. 4.
• "Flying the Koop: A Surgeon General's Reputation On the Line", PR Watch, Volume 5, No. 4, 4th Quarter 1998.
• "The Chlorine Industry's Secrets Exposed! #2, PR Watch, Volume 3, No. 2, 2nd Quarter 1996.

External Links

• Jonathan Nack, "Chlorine company targets Greenpeace", Green Left Weekly, 1991. (Originally published in the Guardian (US).
• Ravi Chandiramani, "Ketchum appoints director for its UK corporate practice", PR Week, February 23, 2004.
• Ketchum, The Building of a Top Ten Global Public Relations Agency, undated, accessed July 2004.
• Douglas Quenqua, "Ketchum faces inquiry of contract with Puerto Rico", PR Week, September 20, 2004.
• Ben Feller, "Bush ad appears to be news story," Associated Press, October 11, 2004.
• Fraser P. Seitel, "Ketchum Calamity Post Mortem", O'Dwyers PR Daily (sub. req'd.), January 24, 2005.
• Jack O'Dwyer, "PR Opinion", Jack O'Dwyers Newsletter (sub. req'd.), Internet Edition, January 26, 2005.
• Erica Iacono, "Spellings halts Ketchum work as Council polishes industry image", PR Week, February 07 2005. (Sub req'd).
• "Review of Formation Issues Regarding the Department of Education's Fiscal Year 2003 Contract with Ketchum, Inc. for Media Relations Services", Department of Education, April 15, 2005.
• "White House Is Impeding Armstrong Williams Probe, Dem. Lawmaker Says", Editor & Publisher, April 15, 2005.
• Brian Faler, "Hiring of Commentator Is Called Poor Judgment: Report: Education Dept. Broke No Law", Washington Post, April 16, 2005.
• Anne E. Kornblut, "Inquiry Finds Radio Host's Arrangement Raised Flags", April 16, 2005.
• "Warnings on Armstrong Williams ignored, report says", Seattle Times, April 16, 2005.
• Erica Iacono, "ANALYSIS Government Contracts: DoE contract report takes some heat off of Ketchum", PR Week, April 25, 2005. (Sub Req'd.)
• Erica Iacono, "DoE report cites a lack of ROI, not ethics", PR Week, April 25, 2005. (Sub req'd).
• Beth Herskovits, "Medicare/Medicaid throws majority of work up for bid," PR Week (sub. req'd.), May 23, 2005.
• Beth Herskovits, "Novartis and Arthur Frommer publish restroom guide for OAB sufferers", PR Week, June 15, 2005. (Sub req'd). (A brief report on a campaign for Novartis by Ketchum).
• Christopher Lee, "Medicare Drug Benefit Outlined in Campaign: As Enrollment Is Set to Begin, Ads and Other Outreach Seek to Educate Eligible Citizens", Washington Post, October 10, 2005.

Resources

• Ketchum PRCA Yearbook 2004