James Surowiecki opens his Financial Page column this week with the instructive tale of Kellogg and Post trying to maintain the toeholds they'd gained for ready-to-eat cereal in the 1920s once the Great Depression hit. Post drastically cut its advertising; Kellogg doubled its budget and launched Rice Krispies. Both brands survived, but Kellogg remains the dominant player today. The AAAAs has, of course, long maintained that companies that advertise in a recession emerge triumphant. Surowiecki seems to pull in every study ever done that would support that thesis, but he's also wise to point out that, for all the success …

Did we excerpt an article on the ascendancy of good old public relations recently? Seems so but if not, somebody ought to get cracking and write one. Between everybody having an opinion on everything and the ability of anyone to tweet, YouTube or blog it instantly, the spawn of Ivy Lee seem to have a bright digital future. Ben Bernacke doesn't have to rely on such home-grown tactics for his own PR blitz, of course. When he decided to take the wraps off the Federal Reserve, "60 Minutes" was waiting. He has also fielded questions at the National Press …

Domino's found itself in the middle of an instant PR nightmare yesterday when a video was posted on YouTube by two employees who identify themselves as Kristy and Michael, Emily Bryson York reports. The video captures Michael inserting pieces of cheese into his nose and waving pieces of salami behind his backside before placing them on sandwiches that Kristy says will be sent out to customers. Dominos spokesman Tim McIntyre says the employees will be fired, and he shared with Ad Age a letter of apology from Kristy, who claims the whole incident was a prank. "We would never …

If ever there was an industry in need of a PR campaign, it may be bottled water. Not too long ago, it seemed to be proving the point that Eskimos will buy ice if it's marketed clevery. But after years of double-digit increases, sales have stopped rising, Nancy Eve Cohen reports. While the sale of most nonalcoholic beverages fell last year because of the receding economy, bottled water is also under increasing pressure from environmentalists, as well as competitors such as Brita, which sells water filters, for its impact on landfills. Kim Jeffrey, CEO of Nestle Waters North …

In a lawsuit filed in federal district court in New York, PepsiCo charges that Coca-Cola's new Powerade Ion4 ad campaign is "a calculated, intentional strategy designed to falsely and viciously attack the readily-identifiable market leader, Gatorade." (Don't you love the way that even the legal beagles at Pepsi can't pass up the opportunity to reinforce its category-champion status?) The campaign positions Powerade's newly reformulated drink containing four electrolytes -- sodium, potassium, calcium and magnesium -- as the "complete sports drink," Natalie Zmuda reports. Executions picture half of a Gatorade bottle with the text "Don't settle for an incomplete sports drink." …

Bankrupt Circuit City Stores Inc. is auctioning off its brand, trademark and Web site presence to the highest bidder. Systemax Inc., which sells personal computers, consumer electronics and accessories online, through catalogs and in some retail stores, has been named as its stalking-horse bidder, Emily C. Dooley reports. A stalking-horse bid is an initial offer from a company chosen by the debtor. Systemax, which also owns the rights to the CompUSA name according the Wall Street Journal, has agreed to pay Circuit City a share of revenue generated through the Web site during the first 30 months of ownership. …

As business travel declines, airlines are getting more generous with special frequent-flier program deals, Scott McCartney reports, from triple mileage on some routes to double elite-qualifying miles on all travel and huge bonuses for international trips. American Airlines triggered the war over elite-qualifying miles in March, when it launched a double elite-qualifying-miles offer. "I can't remember a time like this," says Randy Petersen, president of Frequent Flyer Services. "Right now is one of the richest periods I've ever seen in 23 years of following these programs." Airlines say they are making more seats available for award redemptions, and …