Saturday, April 18, 2009

New Venues Can't Escape Old Business Rules

It seems every day, there's a new story on Twitter or some other new communications tool and their likely impact on the future of marketing and public relations. Pundits and prognosticators writing about what will happen with Twitter should look no further than one of the last new media darlings.


In a report issued this week, Credit Suisse projects that YouTube will lose $470 million this year, while raking in only $240 million in revenue. Since Google ponied up $1.65 billion for YouTube more than two years ago, YouTube doesn't face the same financial pressures of a typical technology company, as long as Google's willing to underwrite YouTube's losses. Still, their progress does speak volumes about what happens when you put a platform ahead of a business model.


PR pros and other communications professionals looking for help in deciding where to place their marketing money and effort would be wise to remember that the notion that you can build an audience first and worry about your business model later generally hasn't worked out too well historically. Just because Twitter's a media darling today doesn't mean it won't be gone at some point in the future.


I was surprised to finally see a negative -- or realistic, depending on your take -- column on Twitter that ran this week on CNET's News.com penned by Charles Cooper. Basically, Cooper said while the rest of the media world may continue to fawn over Twitter, he's going to take a vacation and wait for Twitter's co-founders to finally cement a business model before joining the crowd singing their praises.


Like Cooper, I'm generally advising all my clients to put their time and effort into social media platforms and tools that are based around a solid, quantifiable business model. Quite simply, if the platform you're banking on hasn't figured out how they're going to put money in the bank over the long term, it's not worth the majority of your time and effort at this point.


Twitter may indeed go on to become a true sensation that changes the way we communicate, but it's important to remember it may also become another WebTV; there's $425 million Microsoft would likely love to have back.

Monday, April 06, 2009

Defining (or Defying) Conventional Wisdom

During times of economic tumult, there's a natural tendency for everyone to look at historical precedence in an effort to get a handle on how the future may play out. The reason for this is simply because things often play out that way. While that may be true in this instance, we've got an opportunity to make some important changes this time that may have a long-lasting, positive impact.


One of the things that naturally occurs during a downturn is businesses struggle to get where they were before the downturn occurred. Most often, they embark on this journey using the same tactics and practices that have historically been used, without asking whether or not things can be done better.


Unfortunately, it's this lack of innovation that actually is a big reason that downturns themselves are cyclical; in other words, you can't predict much about them with certainty, except that they will occur again. Changing tactics or philosophy will likely not eliminate downturns, but it certainly could reduce their lifespan and/or severity.


It's my sincere hope that the public relations industry comes out of this downturn with true ideas on how to successfully innovate. The biggest thing we need to realize is innovation doesn't simply mean ways to make more money, but rather a long-term change that will result in one or more positive impacts.


I challenge my fellow practitioners to help me bring about innovation in public relations by having PR practitioners seen as valued counselors rather than merely hired hands that perform a tactical service. This perception is one of the reasons that PR pros often find they're not able to get clients to take their strategic advice. Instead, the client often ends up telling the agency what to do, and the agency works to deliver it -- regardless of whether it's a good idea, or even possible, in the first place.


This symptom results in public relations and the firms who practice it losing some of their value. In economic downturns, value becomes crucial because the first things to get cut are often services or products that are perceived to not deliver value. This certainly won't be an easy journey, but if we can join forces to bring it about, it will bring a seismic shift to the PR industry and all who practice it.

Monday, January 26, 2009

Need a Perfect Example of a Bad PR Move? This Is It

New York City landlord Rockrose Development, which is a well-known manager and marketer of luxury rental apartments in Manhattan, can trace much of its success to efforts it has undertaken to attract a young, hip audience to its pricey downtown rentals. While they've definitely figured out a lot of things when it comes to marketing, they've got much to learn in terms of crisis communications.


A story in Monday's New York Times chronicles the story of a young couple who claim they were forced to move from a Rockrose-managed facility because they lodged repeated complaints on an in-house, online tenant forum hosted by Google Groups but monitored by Rockrose.


David and Katy Griffiths were told by Rockrose that their lease wouldn't renewed because they had posted critical comments on the online forum. For their part, the Griffiths say while they did engage in spirited conversations on a number of issues, ranging from gym hours to additional fees for grilling on terraces, that none of their comments should be considered abusive.


They also say the whole issue smacks of 1984, particularly since Rockrose officials admit they have employees whose responsibilities include monitoring online forums, such as the ones the Griffiths participated in.


From a PR standpoint, the most interesting part of this whole affair is that Rockrose officials remain completely unapologetic.


“In these times, I try to renew everybody — unless somebody’s a real hothead and a troublemaker," Sofia Estevez, the company’s senior vice president for marketing, told The Times. Yet, the story also says "On perusing his file, the only evidence Ms. Estevez could cite of 'troublemaking' was his refusal to pay fees for the gym and other amenities early in his tenancy, when the gym was not yet open. She said that she could not recall whether online postings were a factor, but that a Rockrose employee does monitor tenant complaints on the Web."


Needless to say, there are some big risks being taken here. For starters, admitting that you monitor postings on an in-house forum as much to determine who the gripers are as much as actually fixing their complaints would rile many people. Secondly, it appears the Griffiths did have some legitimate issues, including the fact that some building amenities that were supposed to be provided as part of a mandatory fee were not yet available.


Even in the crazy world that is New York City real estate, it seems an especially bold move to be taken in a city whose unemployment ranks are swelling with each passing day and likely won't eclipse until late 2009. Most companies would be well advised to avoid anything that remotely resembles this kind of approach to complaints because almost nobody has a monopoly on a product or service. Just as word of the complaints reached Rockrose executives thanks to an employee who carefully monitored forums, you can bet several hundred thousand people -- many of whom may have never even heard of Rockrose until now, much less rented from them -- not only know who they are, but have a negative connotation attached to that name.


Anybody in public relations or crisis communications who is worth their salt will always counsel a client not to get involved in a conflict, whether it's verbal or on a virtual forum, with any current or perspective customer or client. The fact of the matter is, once something goes public, you have very little control over perception, even if you respond in the right way, or the best way possible. Unfortunately for Rockrose, they didn't really pick what most will view as the right way to respond, which will likely mean the memories of their aggressive action will linger longer than they otherwise would.

Monday, January 19, 2009

Yet Another Illustration of Social Media's Perils

Practically since the Web's beginnings, many irate customers have often used it to criticize companies with whom they've done business. In an "updated" version of the tale that emerged last week, a similar event occurred on one of the hottest Web 2.0 platforms -- only this time, it was a PR agency that was left with some explaining to do.


A Ketchum Inc. vice president based in Atlanta was in Memphis last week for a meeting with FedEx executives. The next part of the story gets all the more interesting, given that part of his mission related to training on social media. James Andrews, a Ketchum VP, apparently issued the Tweet "True confession but I’m in one of those towns where I scratch my head and say 'I would die if I had to live here!"


Obviously, FedEx wasn't too pleased with the Tweet, saying it exhibited poor judgement on the part of Andrews. However, the company said it was grateful for the apology and was moving past the incident.


For his part, Andrews said the moment followed an irate exchange with "an intolerant individual," and wasn't aimed at Memphis or its residents.


"Everyone knows that at 140 characters Twitter does not allow for context and therefore my comments were misunderstood," he wrote on his blog.


True enough. And, obviously these kinds of situations have snared many individuals and companies in the past. But it does seem amazing in 2009 that we still have to be reminded that online communications don't only give the poster a chance at instant expression, but they also pose the risk of instant feedback. Sometimes that's a good thing, but there are others where the situation could pose a big risk.


Bottom line: Don't assume anything you're writing online, whether it's a Tweet, a blog post, a Usenet posting or on any exploding number of private forums and social networks out there, will be either private or will shortly die. When I was a daily newspaper reporter, one of the solaces we took was that a mistake only lived in print for a single day and that you got a chance to instantly get up to bat the next day in an effort to start a new streak. Certainly these kinds of mistakes won't often have eternal consequences, but it's definitely not as easy for them to disappear from the public's view.

Monday, January 12, 2009

PR Students Worry About Reinvention of Industry

Perhaps no other economic downturn in the last 20 years is causing the same level of reverberations through the nation's economy as the recession we're now in the midst of. While everyone's concerned about their future in one degree or another, perhaps no group is as concerned as recent college graduates or those about to enter the work force.


Students about to enter the work force or recent graduates are most certainly encountering a challenging environment. While the current economic turmoil has a lot to do with it, the situation is complicated by the fact that the overall marketing and media landscape, with which PR will be forever linked, is literally in the profess of reinventing itself.


This reinvention is due chiefly to the emergence of blogs and other social media, as well as the decline of conventional media. Hardly a day goes by that a story predicting the newspaper industry's imminent death isn't published. In fact, several stories have made the rounds recently predicting that The New York Times may end the printed version of its flagship publication as early as May.


Certainly the business model around both publishing and advertising is going through a turmoil like never seen before. That said, anyone who claims to be able to chart exactly how any replacement vehicle(s) and their accompanying business model will be structured doesn't really know what they're talking about because the business model behind the replacements is still very much a work in progress.


I'm certainly not criticizing social media here; in fact, I'm in the midst of launching a social media practice at Astoria Communications. Yet, in contrast to many who have "pie in the sky" notions of what it will do, I believe we should have a much more concrete approach that focuses on knowing how to use social-media tools for business development. Even as new schools of thought are emerging that say expanding one's view of what a social circle is when it comes to social-networking platforms, it's still as important as ever to realize that these are communication platforms and capitalizing on them will require individuals to know how to do that successfully.


While I certainly won't slam a journalism or PR degree, I'd counsel current students and recent graduates to try and broaden their educational experience as much as possible. The classes you think are boring in school, such as economics or other business-oriented classes, will be what sets you apart from a hungry pack in the future.

Tuesday, January 06, 2009

Celebrity PR Doesn't Speak For Industry

I'll be the first one to admit that public relations has an image problem and have chronicled that fact in several posts since this blog's inception. However, the latest critique that's making the rounds has me baffled.


In the most recent "bookshelf" column appearing in The Wall Street Journal, Toby Young slams public relations as a "hype machine" and takes issue with the book's attempt to refute PR's imagine as the "unsavory business of exaggerating the value of their clients or their clients’ products."


The column, which is actually a review of the book Where's My Fifteen Minutes by Howard Bragman. After reading columns elsewhere about the review, I was expecting it to be a complete hatchet job, but if the book is characterized correctly, I actually agree with a good number of the criticisms.


One thing the column quickly shows is that there continues to be a widespread belief that "Hollywood style PR" is what most public relations pros are engaged in on a daily basis. I've written about this many times and have said this is why I personally hate when publicity and public relations are used interchangeably.


Many of the stories relate to personalities or celebrities and aren't really relevant for the majority of the industry that's involved in helping reputable companies of various types.


It's no surprise that someone with show-biz insights was able to sell someone on writing a PR-oriented book. What's unfortunate is that all these years after public relations became a mainstream professional service, most people don't know what the heck public relations is. Anybody who's actually out selling PR knows this all too well and is why I've continually called for industry practitioners and/or groups to ban together to try and stop this and actually illustrate the positive business impact of what is a widely-used professional service.

Here's To A Better 2009!

It seems 2008 was a year mostly filled of headlines chronicling one type of doom or another and, unfortunately, it won't go down as a banner year for public relations either. While the recovery may not take hold until mid-2009, there's still a lot we in the public relations profession can do to "raise the boat" for everyone.


Public relations has a unique opportunity, perhaps like never before, to articulate its value proposition. The changing media and entertainment landscape may be giving consumers more and more choice, but it's also posing many challenges on the advertising front. One of my professional colleagues is a long-time advertising executive who several years ago sold his company to one of the international conglomerates. If you were to ask him, he'd be the first to tell you that the ad industry has a lot of "discovery" to do, chiefly because there's a disconnect between the areas where opportunities are growing and viable business models.


In other words, the world may be moving online when it comes to news and content, but the online world is, at least for now, not nearly as profitable as the print and broadcast landscapes have traditionally been. Most consider PR and ad folks staunch competitors since they're generally trying to pull dollars from the same "marketing pie." However, this ad exec is refreshingly upfront and honest when it comes to speaking to business executives and owners in regard to what type of marketing works best for a given business. One of the things he says most often is that unless you're able to deal in relatively large budgets, advertising is generally not a good fit. That's chiefly because ad agencies are compensated based on a percentage of the overall advertising expenditure; thus, small budgets aren't really viable in the ad world. Conversely, public relations, which has very little outside costs other than staff time to create and execute a program, can offer options to a much broader range of business sizes and types.


Sadly, however, few people know of this distinction. That's not really surprising, however, given how few actually know what PR people actually do. While I'm not trying to appear as someone who is looking through rose-colored glasses, I do believe now is an opportunity like none before for PR firms and consultants to approach solid companies and tell them the current economic environment gives them a great opportunity to set themselves apart from their competition. Quite simply, success stories have gotten to the point that they're almost "contrarian indicators" in the current economic environment. Given that, there are many good reasons for successful companies to undertake and/or expand their public relations programs in an effort to gain market share.


Hopefully these thoughts will inspire others in the PR field to go out and educate business owners and managers about what we do and what PR offers. Happy 2009!

Wednesday, December 24, 2008

The Lois Whitman Hess Debate Continues

As many of you might recall, the blogosphere was set abuzz earlier this year following a backlash against publicity tactics employed by one tech agency. Three months later, the firm is again making a name for itself -- and not in a good way.


Earlier this month, HWH Public Relations sent out a press release in December regarding booth appointments for client Samsung HDD at the upcoming CES consumer technology tradeshow. Among the recipients was Phone Scoop, a well-respected blog that's widely followed for all the latest news on mobile devices and carriers. Phone Scoop founder Rich Brome sent an e-mail in response to the e-mail asking HWH's Lois Whitman-Hess to remove his name from the list, saying his blog didn't cover the type of products Hess' client was promoting.


Instead of replying with an "I'm sorry," Hess shot back with an angry e-mail whose text included:


"CES publishes a list of press … As a PR agency we use that list so we can solicit press for booth appts. I hope you can appreciate that. If you don’t, let me introduce you to the 'delete' button. Or in the future do not sign up as a press person for CES.


"Furthermore, do not make any threats to my company. I don’t need you to tell me what is right or what is wrong. I have been in the CE business for 42 years. I have seen nasty people like you melt away faster than a snowball going up hill in the rain. I am waiting for an apology. Maybe we can meet at CES for a hug or a slug.


"P.S. I just visited your web site. I would hardly call your blog a publication."


By the next day, the blogosphere was abuzz with the exchange with personal attacks and PR bloggers taking various sides over the issue. Interestingly, one of her defenders was POP! PR Jots!' Jeremy Pepper. While he was quick to point out he wasn't defending Hess' actions, he said that sending off-topic messages to outlets in advance of a trade show was one of those unavoidable things that happen under pressure to line up appointments for clients.


Pepper is, of course, right. But his explanation also points to another key issue in PR. Practitioners are all too often guilty of not realistically telling clients what can be expected in response to a request or demand. Instead, we work to move mountains, often embarrassing both ourselves and the client in response. If both the agency and their client work together in advance of a major initiative to prepare a clear strategy, this kind of stuff doesn't have to happen. Failure to prepare should never be labeled a media problem.

Monday, December 08, 2008

What to Make of "Web 2.0" From a PR Standpoint

It's almost impossible to read anything connected to the practice of public relations without quickly coming across the phrases "Web 2.0" or "social media." While platforms of these types have no doubt spawned many valuable exchanges, in many ways I question the efficacy of ways they're being thought of in regard to public relations programs.


Quite simply, it seems there's a notion out there that social-media platforms are the new media and that the most valuable conversations will start taking place on platforms such as MySpace, Facebook and Twitter. What all the proponents of this "second coming" of communications seem to overlook, however, is that good public relations programs aren't akin to beating a targeted audience over the head with a marketing message until they're motivated to take action. Instead, well-executed public relations programs communicate a value proposition in proven ways that, once explained, is easily understood by the target audience.

One of the things I've railed against continually in terms of the practice of public relations is the fact that so many campaigns and practitioners take the lazy-man's way out. They spend so much time looking for the lowest-hanging fruit and targeting it that their only real accomplishment annoying people. Taking the "mallet" approach isn't based around any kind of dialog at all, whether the conversation is taking place with an editor/reporter at a traditional outlet, or with an audience on a social-networking platform. I've personally noticed an increase in hostility among users of social networking platforms at the veiled attempts at promotion that have begun taking over discussions.


I think this is the latest in a series of developments that are challenging the prevalent notion that "Web 2.0" (whatever the heck that is) is rendering PR useless and/or meaning that dialogues have moved away from traditional media channels entirely. I find it amusing that something that's done through the same browser-based technology that we've had since 1994 is even called Web 2.0, but I guess I'm a curmudgeon in that sense.


One of the big things that PR pros need to grasp is the fact that a dialog is what everybody wants, and it's not just those who are on social-networking platforms. Journalists too want to know that you understand their needs and are willing to help them when you can, even if it's not necessarily on behalf of a client.


I know people who are looking for jobs/clients want to do the best they can to meet their client's/employer's needs, but I hope at some point we can get to a rational discussion on this as an industry.

Thursday, December 04, 2008

Why Is PR So Often Behind the '8-Ball'?

It seems every day, I either find myself in a conversation with a PR pro or read something in a trade publication that's acting as if the recession that we're now officially in is only now something that deserves reaction. Given how well PR budgets hold up once times get tough, frankly I'm amazed.


Following last week's post on debate within the Public Relations Society of America regarding licensing, I was involved in an online discussion with PRSA PR chief Arthur Yann. Basically, Yann indicated that the licensing debate was part of a discussion exercise at the annual conference in preparation of next year's bylaws rewrite. He said the topic of licensing didn't mean the organization is formally discussing the issue.


Over the course of the conversation with Yann, I mentioned to him that I've consistently thought the PRSA should serve as more of an industry advocate. Any practitioner who's had a conversation with someone who's never worked with a PR professional will tell you that many people have absolutely no idea what PR is or what a PR person does. The closest most come is work that most closely resembles celebrity representation, which is something the vast majority of PR practitioners aren't engaged in. Nowhere in people's knowledge in connection with PR is mission-critical communications that help companies drive their business. In an effort to remedy that situation, I suggested to Yann that the PRSA conduct surveys that would illustrate the cost effectiveness of public relations in comparison to other forms of marketing. No word on whether that's something the organization will consider.


I close by asking all professional PR practitioners -- and even students -- to PLEASE band together and lead an effort to change this. We complain about having to fight hard for a seat at the table, but all too often we don't back up that need with any kind of supporting information as to why we merit one.

Monday, December 01, 2008

PR Licensing Debate Flares Again

Over the years, there have been a number of proponents of licensure for PR professionals, both in and outside the industry. The reasons vary, but proponents generally argue that licensure does a better job of ensuring standards consistency among practitioners in a way that accreditation, since it is controlled by one body, does not.


Now it appears the Public Relations Society of America is at least discussing the idea among its membership. Attendees to this year's national conference reported that PRSA Chairman Jeff Julin led a debate and discussion on this issue, although details were sparse since the PRSA didn't release a transcript of the conference or issue any other details on discussions to non-attendees.


Some like O'Dwyer columnist Wes Pederson seem to indicate that the First Amendment would be relevant, although it's hard to say what it's impact would be since commercial speech -- which is what PR would most certainly be considered -- is given far fewer protections than individual speech.


Since the disclosure of its discussion at the conference, several columnists have weighed in on the issue, on both sides of the fence. Most feel there's nothing inherent in licensing that leads to an assurance that either the quality of the provider or the service they deliver will certainly be higher.


It's difficult to fully comprehend what proponents of licensing would hope to achieve in the field of PR. For example, if an agency or consultant is charged with developing and executing a media relations campaign, they can't realistically guarantee any outlet or reporter will find a particular story angle interesting. While some might try to guarantee that in advance, which poses an ethical issue of sorts, it's hard to imagine how licensing would guarantee a higher level of success in media campaigns.


While it's easy to understand why licensing is preferred in certain professions like law, where a single mistake can cause tremendous and in some cases irrevokable damages, since most PR firms or consultants work on short-term contracts, it's fairly easy for a dissatisfied client to seek new counsel. Given that fact, perhaps it's best to let the free market rule.

Monday, November 24, 2008

Link Shown Between Startups Who Use PR and Successful Funding

A new study published in the most recent PRWeek magazine once again provides stats proving that public relations is the most beneficial marketing tool for new businesses.


A survey conducted by BIGfrontier Communications Group of Chicago showed that startups who used public relations were 30 percent more successful in getting funding within one to three months than companies that did not. In all, 44 percent of companies who used PR received funding within one to three months of their launch, compared to 14 percent of companies who did not.


Despite the advantages PR is shown to have for startups, however, only 18 of 300 surveyed by the group undertook a public relations program during their funding search.


The survey was conducted between September and November 2008 via polling on social networks and direct solicitations through e-mail to CEOs and CMOs.

Tuesday, November 18, 2008

Now Is PR's Time to Shine

While it's undoubtedly going to be a tough road for the next 12 months or so for public relations and most anything connected to marketing budgets, there are important distinctions that can be made about PR that could help the profession stand out from other tactics.


Conventional wisdom is that all companies cut their marketing budget during a downturn and that will inevitably lead to a tough time for PR firms. While that's certainly true to an extent for those who rely on major corporations, there are a lot of businesses that continue to grow in a downturn -- particularly those who have an efficiency proposition.


This downturn gives public relations practitioners a great opportunity to let people across small and mid-sized businesses know that PR can be an affordable way to market one's goods or services and that a well-executed PR plan offers efficiencies in comparison to other types of marketing. One of the reasons ad firms are especially hard hit in a downturn is because their model relies on commissions from a total ad spend. Thus, when ad budgets go down, their revenues fall. In contrast, a good PR plan often doesn't rely on the purchase of any expensive supplemental service or product, which means that PR firms have the flexibility to work with a wider range of budgets.


While few people in their right mind would tell you this is a rosy time in the PR and marketing world, it does present a great opportunity for PR practitioners to trumpet PR's advantages and to put them to work for the entrepreneurial companies that will likely lead us out of the downturn.

Thursday, November 06, 2008

A Reflection

About a year ago, I was in an office at a mid-sized public relations firm in Manhattan having a conversation with two agency principles that hinged, in part, on the outlook for the business and the economy in general.


I remembered them being quite surprised when I indicated that in 12 to 18 months, things were going to get quite ugly from an economic standpoint once people were no longer able to take equity out of their homes to fund a lifestyle that had grown larger than their take-home pay. The response I got was one of surprise and, at least to some degree, disbelief.


I say that not to prove that I'm an economic soothsayer. In fact, I have no special talents in that area other than those I acquired from my work as a financial journalist for about a decade that include being able to read company financial statements and understanding various economic indicators. My thesis was built entirely on the fact that spending was outpacing wage growth and the spending increase was largely built on home-equity bets.


To bring this back to public relations, I urge all practitioners, financial or not, to gain a better understanding of the economy and what it means to their business. Often we as an industry are very guilty of chasing the latest booming trend only to be burned to a crisp when it goes south. By understanding the economy, practitioners can get a better grasp on which trends are sustainable and worthy of an investment of time or energy.

Wednesday, November 05, 2008

Loic LeMeur Again Shakes Up Social-Media World

Loic LeMeur, the entrepreneur behind the video community seesmic again made news across the social-media world this week when confronted with rumors about his company's decision to layoff staffers in this difficult economic environment.


Those who follow PR blogs may remember LeMeur's rant about the uselessness of PR, chronicled here. Basically, LeMeur took a shot at PR, saying the whole industry essentially peddled a false claim that there was a "secret" to effective PR and that no outside consultant could do as effective a job at representing a company as its CEO. He went on to say that PR is no science and it's no longer complicated since social media platforms allow companies to manage their reputation directly.


Unfortunately for him, he found out that the situation might be a little more complicated than that following an announcement that his firm was laying off seven people. While that's not exactly newsworthy in this environment, what was interesting was the firestorm of comments that were unleashed following the announcement, including one disgruntled reader who accused the company of failing to have a business model and LeMeur of grandstanding and pursuing personal engagements more than ensuring seesmic's survival.


Of course, there will always be disgruntled individuals in the wake of an action like that taken by LeMeur; the key issue is how you confront the issue itself. On that front, LeMeur took a bold move by addressing the issue head-on and not letting rumors continue to surface. The wrath he encountered probably changed his attitude a bit about the ease with which public perception can be managed; hopefully he understands now that managing public perception isn't as simple as he first laid it out to be.

Monday, November 03, 2008

PR's Image Problem Continues

Anyone who practices in the industry knows that public relations has an image problem. One place you wouldn't expect it to crop up is the annual conference of the Public Relations Society of America.


Penelope Trunk, a career columnist for The Boston Globe reportedly had attendees squirming in their seats after saying "You guys know how to spin anything.... we should all be as good with spin as you are."


While PRSA Chairman Jeff Julin interrupted Trunk to say that spin isn't something practiced by PR professionals and that the true practice of public relations involves building relationships, the sad fact of the matter is Trunk's speech -- at a PR association industry event nonetheless -- shows what a poor job the industry does in explaining to people what it is we do.


Sure there are other professions, such as lawyers, that often fall victim to many negative associations, but because the public as a whole understands what they do much better, they also assume that most of the apples in the barrel are good ones. Not so with PR unfortunately; most people think the average PR person spends his/her time explaining the misconduct of the latest celebrity gone crazy or trying to make a guilty party or company look innocent.


Hopefully after hearing these words, PR practitioners will put themselves on a mission to explain what they do and how it's valuable. It's amazing to me that The Society for Human Resource Management is a heck of a lot better at doing PR for its organization than the organization that represents public relations. Anyone who's watched a primetime show or a Sunday morning program with a highly sought-after demographic has likely saw their ads.


In this time of economic downturn, those who can explain what they do and why it's valuable will succeed. Those who can't will fall far, far behind and potentially even witness failure. It's time for everyone in the industry -- especially the PRSA -- to take the mantle and start defending the profession.

Tuesday, October 28, 2008

Determining Social Media's Value Can Be A Difficult Proposition

Ever since the first blog went live, PR pros have been trying to figure out how to capitalize on the medium on behalf of clients. And while social media is in many ways no longer an experiment, determining its actual value largely still is.


There are lots of great social networks, such as LinkedIn, Facebook, MySpace, Twitter and others. Some have a decidedly more business-oriented focus like LinkedIn, but basically they all purport to bring like minded people together in the name of establishing valuable relationships.


Although it took some time from the emergence of MySpace and other networks for businesses to pay close attention to the trend, soon companies started trying to figure out is what value should be placed on the trend as a whole and which networks should receive priority in their marketing efforts. Once that happened, PR agencies started opening new media practices and there were also a host of social media evangelists that hit the Web espousing their value. And while some of them have certainly proven popular, the jury's still out as to whether social media is a trend that's worth a significant investment of a business' time and/or money.


In a recent report titled "Exploring the Link Between Customer Care and Brand Reputation in the Age of Social Media," the Society for New Communications Research examined how consumers are using social networks and which ones they value. While 74 percent of respondents say they choose companies and brands based on the experiences shared online by customers, most still indicated they used conventional search engines for their research rather than social media networks. In fact, several leading social networks scored poorly when it comes to consumer influence, with only 39 percent saying they used micro-blogging sites like Twitter or Pownce; 27 percent used YouTube and 22 percent turned to Facebook and MySpace.


Not surprisingly, technology and e-commerce companies tended to dominate the online discussion landscape, with Dell Computer Corp. and Amazon.com Inc. taking top honors as the companies most often discussed by consumers online. That said, those who do turn to social media networks are a desirable demographic, with an average net income of more than $100,000; most are college educated and range from 25-55 years old.


As with all things new, especially those involving technology, there's been a rush to adopt social media networks. One of the problems, however, is the fact that the social media sector is still quite decentralized, with several companies trying to jockey for the lead spots in the marketplace. This makes it especially hard for companies to know which investments will generate reliable returns. Historically, in the early phases of a new trend's emergence, this factor hasn't mattered very much; however, the fact that little attention has been paid to a return on investment has meant that technology-related trends have experienced harsher than normal boom and bust cycles.


I was in a discussion earlier today with a group of legal marketing executives and a consultant who helps law firms set up their own blogs. The discussion originally started when an executive asked others whether they used Twitter, and if so, how? That spawned a lengthy conversation as to whether social media is judged in the same vein as other marketing activities and, if so, how a return-on-investment can be reasonably calculated. Even though the cost to set up a social media presence may be minimal, there should still be goals set and those should ideally be linked to a positive impact on a company's bottom line; after all, no matter what business you're in, time really does equal money.


The blogging consultant was of the mind that people responsible for bringing in business do the best when they're engaging in activities they truly enjoy under the theory that the use of these mediums mean a firm has the opportunity to reach potential customers that their competitors, who aren't embracing the platforms, are missing. That's certainly theoretically possible, although I suspect it will be some time before we really know for sure.


In the meantime, I still encourage companies – especially small and mid-size firms with limited PR and/or marketing budgets – to continue mining opportunities within conventional media channels. Those channels may not be as “sexy” as social media, but they still deliver an audience of many potential customers with desirable demographics.

Do It Yourself PR Isn't The Value It May Seem

Anyone who practices public relations has probably run into a business owner of some type who started chatting them up about a new, "do-it-yourself" book on public relations that makes PR out to be something almost anybody can do with only a little reading. If only it were that easy.


As with many professions that don't require licensure or advanced credentials, PR has come to be one of those things almost everybody thinks they can do as well or better than those currently doing it. It seems almost every month, there's a new book by a former TV or print journalist or some type of business expert that promises to tell you all you need to know about PR in about 200 pages. While these books may do a decent job of touching on the basics, they leave out a lot of details that are key in determining the success of a campaign.


The biggest problem with the "do-it-yourself PR" view is it completely overlooks the fact that a business owner will almost never be able to look at their business subjectively. By that I mean, if they were to talk to a journalist about their business, they'd hype to the extreme and often make it difficult for a journalist to tell what their compelling value proposition is. In a world where at best you have about two or three minutes to make your case, a bad approach to a journalist can blow a potential opportunity quickly.


Also, business owners have no formal experience in putting together a message that's part of a larger trend. Anyone whose been successful in PR will tell you that's the difference between success and failure; in other words, don't position your company in a self-serving way, but rather in a way that will have readers and viewers feeling it's "news you can use."


This will certainly be no surprise since I'm in the PR business, but I firmly believe that there are enough "mission-critical" things for business owners – especially small-business owners – to be doing that they should focus on the day-to-day tasks associated with administering the core function of their business.


While it may seem simple to fire off an e-mail or make a phone call to a reporter you've seen write stories on subjects that are similar to your business, a poor approach will not only cost you time, but will potentially leave the reporter with a negative feeling that might be very hard to recover from. As someone who spent a decade as a journalist, I can honestly tell you I remember people who made very bad PR pitches and once I was put through a bad pitch or two, it was very unlikely that I'd consider doing a future story on the company in question.


I also realize that entrepreneurs are often tempted to handle almost everything on their own. Their reasoning is nobody can do things as well as they can and/or no one can understand their business as well. While it's not always easy to think of someone else helping to market your own company, it can often be a smart move. Your options are two-fold: either bring someone in-house to handle the efforts or hire a consultant. The chief benefit of the latter is you'll get a higher level of experience for the fees you pay than if you were to use an equivalent amount of money and put that toward a full-time hire. Not to mention the fact that you'll be relieved of payroll taxes and other burdens associated with employees.


Ideally, you'll locate someone to help you who has substantial experience working with small companies and/or start-ups. They'll be able to sit down with you and help determine what your compelling advantage is and how best to communicate that. You should also be willing to accept honest feedback about your messaging and be willing to put into place the recommendations that your consultant makes. While it's never easy to hear anything that resembles a critical word, it's better it comes from someone working on your behalf than a journalist or other key stakeholder.


When meeting with a prospective PR counselor, make sure you're clear with him/her about what you want to achieve and give as much information as you can that will help the counselor. Even though a seasoned PR pro will be able to give you a lot of guidance on how to structure an effective message, their success will depend on large part on the quantity and quality of information you supply them.


If you retain an outside PR professional, make sure they're kept up to date on new hires, new product/service launches, new office openings and other events that can be translated into stories and briefs in business and trade publications. Most any successful PR pro will tell you the more information they have, the better. This will allow them to respond quickly to journalists they know are working on stories for which you're company will be a fit and/or to answer requests from reporters who might be considering a story on your company but need more information first to seal the deal.


Lastly, when embarking on a new PR campaign, remember to give it time. Just as Rome wasn't built in a day, it's not realistic to expect hits to start rolling in immediately. While I've scored major media hits for new clients right out of the gate, I would never tell a prospective client that it's likely, simply because if relatively few people know about a company and what it does, it takes time to educate them on who a company is and why they're worthy of media mention. However, with the right blend of cooperation and experience, the hits will come.

Trades Can Often Be A Good Sale

To public relations professionals, dropping the names of top-tier outlets in which they've secured clips for their clients is a sort of “A list” approach to selling. While it does indeed make for an impressive feat in many ways, it's not always the best method over the long term.


It's understandable that clients like to see their names in top-tier publications like The New York Times or The Wall Street Journal. Simply put, meeting that bar gives a sense of validation to a company that sets it apart from its competitors. While they will unquestionably raise a company's visibility level, their impact on sales in many cases won't be all that dramatic.


To put it in simple terms, let's reflect on the old, familiar slogan used by USA Today, which is "not the most words, just the right ones." I think it makes sense to look at media outlets and campaigns in the same way. While it's natural to take pride over having your name seen by hundreds of thousands, or perhaps even millions of readers, stop and consider how many of those readers are prospective customers of your client's product or service? In all likelihood, there's a good chance that number is relatively small. This, of course, is especially true in the case of a company that sells primarily to businesses and not consumers.


Trades serve a much narrower, more focused audience; while their circulation is definitely smaller, many are widely read in their industries by key executives who turn to them for the latest in product developments and a whole host of industry news. Another big benefit of trade publications are reader-service cards. They provide actual sales prospects because readers actually go the extra step of volunteering to receive more information on a featured company's product or service.


Even better, most publications will send you periodic reports containing a detailed list of sales prospects who've submitted those cards. This information can easily be imported into a company's database for sales tracking purposes. In addition to the obvious benefit of having actual names and contact information for prospective customers, the feedback allows a sales team to put together a sort of “geographic hit list” based on the sales inquiries. This allows them to spend more time chasing qualified prospects rather than cold calling or some other method that doesn't yield much efficiency. So, for example, a client can often say that a specific story in a trade publication generated X number of leads and that translated into X number of sales.


Trade publications also often make for great case studies, since placements in them will generate qualified leads and sales. For example, I've been able to craft a number of successful “David vs. Goliath” story pitches that have resulted in stories chronicling how a small company in an industry vertical dominated by one or more large companies found a niche that separated them from the competition. By using a time-tested formula that presents a problem and goes on to describe how a company solved it, case studies serve as a sort of “how to” road map that other companies can follow. Think of it as the corporate America version of “news you can use.” Just as traditional media outlets love those kinds of stories, business and trade publications often do as well.


Another obvious benefit trades provide is the opportunity to expand your media target horizon. For every sector that a company sells to, there's almost certainly a fair number of publications that track the industry. By getting to know the publications, their editors/reporters and what they write about, you can create several pitches with each one containing specific information about how your client addresses a key need businesses in the industry have.


Unfortunately for PR pros and their clients alike, many PR counselors are afraid to give any kind of counsel that does anything but parrot and cheer on what the client says they want. So, for example, if the client says they want The New York Times, their PR pro in most cases says, "sure, we'll go get it." Again, high-level placements can indeed be very valuable; that said, just as much time should be spent ensuring your reaching a proper target audience and that's where trades play a key role.

Tuesday, October 14, 2008

Client Does Some Negative PR On Its Own Agency

Every public relations agency around has at one time or another helped one of its clients handle a situation with a negative consequence. While that may be a staple of the business, the industry was abuzz this week following a well-publicized efforts by one agency's client to flip the situation around.


Clean Air Gardening, a Dallas-based retailer of environmentally-friendly gardening and lawn-care supplies, went public this week with its battle against Christie Communications, its public relations agency. The company claims it was a victim of poor reputation once Christie Communications sent out a press release without its approval and created a press kit that, as Clean Air Gardening puts it, "was so badly designed and riddled with errors, that it looked to me as if a middle school student had created it for a school project."


These issues led Clean Air to decide to fire the agency immediately, which set off a back and forth tussle between client and agency. Basically, the company is alleging that it should receive a refund for the $12,500 in fees paid to the firm based on the poor quality of work provided.


CleanAir President Ron Hundley says he tried on several occasions to work things out with the firm, but couldn't get company executives to return his phone calls and e-mails. After going public with the dispute, he did receive a response from the firm that detailed the work that had been done on his behalf, which he took issue with.


Upon receiving is latest complaint, the company reportedly accused him of libel and defamation as a result of claims made on the Web site he uses to air his dispute. In his latest response, Hundley has advised the firm to send specific examples of factual inaccuracies on the site and he also claims he offered to take the matter to mediation in mid-September.


While this is certainly an extreme example, it points to issues that can quickly spiral out of control when there's a dispute regarding work done for a client. Although no assurances can be made that these situations can be avoided in all cases, if the client's allegations that the firm stopped responding and/or making an effort to resolve the dispute are true, they illustrate how important it is to not only handle such issues as both quickly and cautiously.