The PR Warrior

Exactly How Much of My Advertising Dollar is Wasted?

Trevor Young — Mon, 09 Nov 2009 13:45:31 +1100

"Half the money I spend on advertising is wasted, and the problem is I do not know which half"- Lord Leverhulme 1851-1925, British founder of Unilever and philanthropist.

I'm not exactly sure when the good Lord uttered those famous words, but given he died in 1925, you can assume he said it eons ago, and it's a quote many, many marketers have bandied around since.

Okay, so if 50% of the founder of Unilever's advertising was wasted way back when, at a time when people had little or no distractions and advertising was an acceptable part of life (as it was for decades to come), what do you suppose the figure would be today?

Now, more than ever, traditional paid-for advertising is being questioned as a cost-effective method of communication. A quick recap:

Consumers today have more choices (read: distractions) than ever before - between the internet, video games, social networking, iPods and gazillions of cable TV channels, time for traditional media outlets has shrunk considerably. Y
ounger adults, for example, aren't in the habit of reading hard-copy newspapers and they don't watch television anywhere near as religiously as people used to, and therefore they are not being exposed to expensive paid-for advertising.

Whereas once upon a time people blindly soaked up advertising messages without question ("aaah, the good old days..."), today they're way too marketing savvy, not to mention information-overloaded and time-poor. People's ability to block out advertising messages is finely tuned and highly effective.

Trust in business is at all time lows, with some 74 per cent of Australians trusting business less this year than last, according to the Edelman Trust Barometer. Crucially, 87 per cent of Australians would refuse to buy from a company they did not trust, while 93 per cent said they chose to buy products or services from companies they trusted.

The rise and rise of social media has led to an increase in peer-to-peer influence. We have always been more open to recommendations from peers (positively or negatively), but social media has just brought a whole new dimension to word-of-mouth, so much so that it's now a far greater influencer in the buying process than advertising.

All of the above comes in to play before we even raise the issue of low standards in advertising. It doesn't take Einstein to realise the majority of advertising in this country is particularly cringeworthy, irrelevant, indeed, often just plain disrespectful to the intelligence of the populace.

So my question, given we were starting off a base of 50 per cent of advertising is wasted (according to the Levermeister), and factoring in the myriad factors above:

How much of the advertising dollar is actually wasted in Australia?

A second question is: If there is so much wastage, how come many marketers are still blindly throwing money against the wall by producing (and then buying media time/space) for mediocre advertising that simply doesn't work hard enough?

I know there has been a seismic shift in the way marketing dollars are spent, with some local marketers doing some really interesting, creative and relevant stuff. But you still see evidence daily of gross wastage of money that's been flung at traditional advertising when, with a little foresight and nous, marketers could have diverted some (not all, this is not about doing away with advertising per se) of the budget towards more meaningful, relevant and cost-effective communication activities - activities that connect with people, build trust and respect. Do that, and you just might find your advertising will work much harder than ever before.

'Movember' a Big Hairy Audacious (Marketing) Goal That Works!

Trevor Young — Tue, 03 Nov 2009 19:33:18 +1100

Oh, is there a moustache in there...somewhere..?

Okay. I'm a sucker for a good marketing idea. And if it's for a good cause, so much the better!

This year I have succumbed to the retro marketing charms of the Movember campaign to support awareness of men's health, specifically prostate cancer and depression.

Great cause, and the campaign, which has been running for a few years now, continues to grow MOmentum (n'yuk, n'yuk) as it edges its way from the 'cool' fringes into the mainstream proper.

If you would like to follow the progress of the PR Warrior's hairy upper lip (or even better, donate to the cause), please click here.

Word is my partner in PR crime David Park is also embarking on a similar growth path. Interesting times ahead for the firm of parkyoung!

Oh yeah, and big ups to those behind the campaign. It doesn't focus on just getting people to donate but rather, creates a talking point that involves people emotionally in the cause. Great stuff!

'Column Inches' Argument Gives Weight to Another Dilemma: the True Role of PR

Trevor Young — Sun, 01 Nov 2009 18:17:05 +1100

I read a good blog post this week by Sarah Emerson from Millward Brown entitled 'Stop Pretending PR is Worth the Same as Advertising Space' (the comments thread is also definitely worth a look).

This blog post is not meant to be derogatory to Sarah's article. Hers is a good piece and well worth reading. Please do so :)

No, my post rant has its origins in the fact Sarah felt the need to write such a post.

Surely - now we are coming up to a decade on from the turn of the century - the whole notion of measuring editorial exposure by comparing it to equivalent advertising spend (aka AVE) is more than a little outdated? (Again Sarah, this is not having a shot at you).

I'm not going to pad this post with niceties about how significantly the PR industry has changed, or the (obvious) reasons why editorial simply cannot be compared to paid-for advertising. Life's too short. If you don't understand this by now, with all the information available at your fingertips, then perhaps you shouldn't be in marketing?

Two Different Camps

The bigger picture is less about AVEs per se and more to do with the fact the business world is spilling in to two different camps when it comes to PR - those marketers/CEOs/brand professionals who intuitively understand the true value public relations can bring to their organisation (and, accordingly, are willing to employ a range of PR techniques), and those with a blinkered 'column inches' mentality.

In my experience - and through talking to others in the industry - the people (clients) who obsess with equating advertising to editorial in almost all cases tend to also be those who think PR is all about media publicity and nothing more.

On the other hand, those companies and brands that take the time to better understand what strategic public relations is all about and how it can help drive the reputation of an organisation, these are the ones who worry less about AVEs and more about coming up with new ways to increase the intensity of brand connection with the people who matter most to their business.

DISCLOSURE: Like most PR consultants, I've been guilty in the past of compiling AVE stats at the behest of clients. With hand on heart, I pledge I will do everything in my power to never have to do it ever again! Interestingly, when doing such comparisons, we've never been able to put a price on online coverage, this is despite a large proportion of exposure these days being internet based. The mockery of AVEs continues!

Here is what the Public Relations Institute of Australia (PRIA) has to say on the matter.

University Creates Talking Point with Tweepr

Trevor Young — Sat, 24 Oct 2009 18:49:58 +1000

You're in charge of lifting the profile of a university's Master of Business (Public Relations) course.

Part of the gig is to ensure the program's 'brand' is relevant, sits at the contemporary edge of public relations, and reaches/interacts with Australia's PR fraternity.

What do you do?

Well, if you're the Queensland University of Technology, you create a really cool app called Tweepr that covers "the thoughts and observations of Australia's most followed public relations specialists".

Tweepr has compiled a Top 100 List of Australia's top PR tweeple, and also features their live tweets.

What a fantastic idea!

A simple, timely, relevant word-of-mouth driver if ever I've seen one!

Great stuff!

Dear Laura, Here Are Some Answers for Your PR Research Report

Trevor Young — Sat, 24 Oct 2009 16:27:43 +1000

I was asked this week by Laura, a final year PR student, if I wouldn't mind jotting down some thoughts to a series of questions she had compiled for a PR research report she was writing.

The questions - below in blue - are all relevant for today's turbulent marketing landscape, so I thought I'd share my thoughts. Love to hear others' views too!

1. What communications tools do you primarily use in your day-to-day work? (i.e. media releases, social networking sites, publicity stunts, speeches etc)

Press packs (media releases, backgrounders etc) are tools we still use on a day-to-day (as-needs) basis, but not nearly as much as we used to.

That may be because the team (at parkyoung) tends to leverage a broad array of PR techniques to communicate with people, whereas some PR agencies prefer to focus more on media relations and therefore continue to use the tools relevant to them.

Other tools we use include social networking sites such as Twitter plus blogs and podcasts etc; however, we tend not to use them directly for clients but rather set them up first then teach them how to use the tools for themselves.

In promoting our company, we activity employ a full array of social media platforms and techniques - Twitter, LinkedIn, blogs, podcasts etc.

When launching the agency earlier this year, we did so via Twitter and LinkedIn and got tremendous immediate feedback. Likewise, we recruited our first employee via Twitter as well.

2. How have communications tools evolved since you started working in the industry? What trends have you noticed?

When I first started in the PR industry (20+ years ago), I primarily used media releases and press packs as well as produced lots and lots of newsletters.

Over the past decade, a PR agency I had co-founded and managed started exploring newer channels such as street teams, events, experiential stunts etc. This differentiated us greatly from many of our competitors at the time and gave clients a much more compelling reason to use us because we took a more holistic view of the public relations discipline.

With my new company parkyoung we are currently focusing more on social media. That said, if the need calls for it, we have no hesitation in recommending media releases/packs or face-to-face activity such as stunts and events. It all depends on the client's situation, their goals and budget.

Based on the above, you could say the PR business has definitely evolved and become more and more complex given the number of communication channels at our disposal.

That said, what hasn't changed over the years is the need for clear strategic thinking, clever and creative ideas, solid writing skills and the ability to provide clarity around tricky communication challenges. Of course, being able to execute tactically is also critical.

3. Is the 'death of the newspaper' as imminent as people say?

I don't think newspapers are going to die any time soon. Melbourne's Herald-Sun, for example, still attracts something like a million readers daily and is highly influential.

That said, I saw a stat the other day, something about 24 of the world's 25 biggest newspapers have suffered readership declines in recent times. There have been plenty of other similar examples so you'd have to say this is definitely a worrying trend for newspaper proprietors.

So while the hard-copy newspaper will undoubtedly, eventually, become something of a novelty in (many) years to come, the concept of having journalists reporting on the news will continue one way or another, just that the channels used will be more digital. This has to be the case because younger adults - the future consumers of newspapers - simply aren't getting into the hard-copy habit.

Of course, adding to the complexity is the public is also contributing content in increasing numbers, citizen journalism as some call it. While I don't want to see newspapers die any time soon (I'm pretty 'old school' like that!), it never ceases to amaze me how senior executives of many major newspapers are not grasping the opportunities of the social web.

They'd rather rail against new media technologies - or worse, prefer to ignore them - rather than be all-embracing and fully into the 'new world'. I would have thought newspapers' future pretty much depended on their creative and sustained use of social media channels.

4. Where do you see this moving in the future?

I'm upbeat about the future of public relations because against a backdrop of advertising noise, media fragmentation and consumer apathy, the need for pure and authentic communications has never been greater. That's where PR comes in.

Professional PR practitioners have the ability to cut to the heart of a communications challenge or issue, and generally they're able to generate results at a fraction of the cost of your average advertising campaign.

Those agencies and practitioners that specialise in straight media relations will become niche players as companies, brands and organisations seek more innovative and holistic solutions. Face-to-face activity, or 'live media', will become increasingly important in this socially networked age.

It will be the PR people who understand and can join the dots of social media, as well as interlink other forms of communication such as events and traditional media, that thrive in these crowded, hyper-connected times.

Indeed, PR people who 'get' the importance of creating and distributing genuine, relevant content to help brands earn trust and respect will start rising to the top of the communications tree.

In their book 'Putting the Public Back in Public Relations', the authors Brian Solis and Deirdre Breakenridge write: "The new world of public relations will focus on developing unique stories for the various groups it hopes to reach and inspire."

I'm in complete agreement with them.

What PR People Can Learn From Miles Davis

Trevor Young — Sat, 10 Oct 2009 08:13:27 +1000

Think of a PR and communications campaign as a jazz band.

The drums and bass represent the campaign strategy. Rock solid. Anchoring. A driving force.

Add in trumpet, sax, piano etc. These instruments help flesh out the sound. Bring it to life. These are your creative tactics. They weave in and out, adding colour, flair and movement.

Drums and bass by themselves don’t work. Absolutely critical, yes, but a bit boring and dimensionless without the ‘tactical’ instruments.

Trumpet and sax on the other hand can be very noisy, indulgent and directionless if played by themselves. However, in concert with drums and bass, they can sound magical.

Same with a great PR campaign. Strategy without the tactics won’t go anywhere. Similarly, if you’re all tactics and no strategy, the campaign will be messy and directionless.

(Also posted on parkyoung In Brands We Trust)

Playboy Magazine Parlays Marge Simpson into Publicity Gold

Trevor Young — Sat, 10 Oct 2009 06:59:45 +1000

In the PR business, coming up with (and executing) a BIG PUBLICITY IDEA that spreads throughout the media is akin to the holy grail.

Today, with the ability of social media to explode the message even further, a clever big idea can be worth millions.

Rule #1 - take a risk!

Playboy's daring decision to turn its cover over to the matriarch of Springfield, Marge Simpson, is an awesome example of a big publicity idea in action!

The Apprentice Shows Why TV is Still the Master

Trevor Young — Thu, 08 Oct 2009 14:04:35 +1000

I was speaking with a friend of mine this morning. If you watch Channel Nine's The Apprentice Australia, you would know her. Tall. Blonde. Loud. Wears a big 'C' jewelled necklace.

Her name is Carmen Parnos (@carmenparnos), and even though The Apprentice has (at time of writing) only been going a couple of weeks, her life has been turned upside down, thanks to the sudden increase in her public profile.

The conversation with Carmen in no uncertain terms reminded me just how important (read: powerful) television is despite the fact we're living in a social age where technology is severely disrupting the traditional media model, TV included.

Carmen has been out and about on the publicity hustings, as one would expect (prime time TV + publicity department = flurry of activity).

What's really freaked her out is how easily recognised she is in the street (and in nightclubs and pubs and at events etc). Everyone wants to talk to her. She's signing autographs like crazy. Remember, only two episodes of The Apprentice have gone to air at this point.

Let's face it, Twitter is not going to give you a mainstream public profile like that. Nor is Facebook. If used properly, they might help propel things forward, but ultimately, it is the box in the corner of the room (or more likely the flat screen these days) that has done the 'heavy lifting' in terms of Carmen's popularity/notoriety.

Newspapers, magazines and radio are also often part of the equation because the fact something is on television generally increases its newsworthiness.

Social media will often feed off television (check out #TheApprentice Twitter hashtag) and in turn, propel a show (or personality) to new heights as the message/story ricochets across the public domain. The increased levels of chatter on social media channels, in turn, will often boost interest in a television show, leading to even more media attention.

In summary, as PR people, we should never underestimate the power of television.

But, increasingly importantly, we should also acknowledge the added role social media can play in extending the message and leveraging the levels of exposure provided by TV.

Being able to integrate (or interlink) all mediums is where the real PR power lies.

Salvos the Most Trusted Brand in Australia

Trevor Young — Mon, 05 Oct 2009 23:48:16 +1000

The Salvation Army has been recognised as Australia's most trusted brand by a new ‘Eye on Australia’ report by Grey and Sweeney Research.

Grey Executive Chairman, Paul Gardner, was reported as saying that Australians based brand trust on foundations including consistency, delivery on promises and open communication.

No argument from the PR Warrior on that score!

What is your brand doing today to build trust with its customers and broader constituency?

For the full story, check out parkyoung's blog IN BRANDS WE TRUST.

A Lesson for Brands in Today's Social Age: Suck It Up & Get On With Life!

Trevor Young — Sun, 04 Oct 2009 16:08:34 +1000

If this week's Kraft Vegemite iSnack2.0 saga tells us anything, it's that the people are (generally) always right and brands that get it wrong need to quickly and publicly make amends if they want to remain in favour with the public.

The story so far...

Kraft created a new Vegemite product (for non-Australian readers, Vegemite is an iconic Australian brand, albeit one that is now owned by a US company).

Part of the promotion of this new product was a competition for the Australian public to name it. Kraft, cannily, launched the product in-store with the words NAME ME featured on the label. It sold heaps and some 48,000 entries were received. You could say this part of the promotion was a roaring success.

Then came phase two: Kraft's announcement of the product's new name - iSnack 2.0

Reaction was swift with the new name well and truly being held up to public ridicule and derision (and you'd have to say for good reason - let's just put it down to a momentary lapse in marketing judgement).

Anyway...

The tide of public opinion was so great that Kraft backflipped and within days had announced they'd be dropping the new name.

The company announced that a shortlist of names from the original promotion would be voted on by the people, and the entry with the most votes would become the name of the new Vegemite product.

Skeptics were many. A lot of social media chatter (traditional media journalists weighed in too) floated the theory Kraft had deliberately chosen a crap name for publicity purposes. Kraft deny it did any such thing.

The Lessons

Kraft did one thing well in particular: they listened to the public and quickly changed tack by dropping the iSnack 2.0 name.

THEY SUCKED IT UP! They took the hit and bent to the will of the people (classic PR tactic) rather than going back in to their shell like a lot of other companies would have done.

This was exactly the right thing to do.

Unfortunately, their press release smacked of defensive corporate speak (here's a sample):

"The new name simply has not resonated with Australians" - No, really? Why not tell it like it is - we made a mistake, the name sucks, and we're pulling it.

And this (in response to the allegation the whole thing has been a publicity stunt):

"We are proud custodians of Vegemite, and have always been aware that it is the people's brand and a national icon."

Guys, cut the jargon. Who talks like that (apart from inward-looking marketers)?

Another lesson: Make sure you get the domain name and Twitter handle. Others have beaten the brand to it and have had a great deal of fun at Kraft's expense.

No doubt Kraft is pissed at the level of criticism thrown at it - as my 12-year-old daughter acutely observed: "Companies hate being told they're wrong" - but under the circumstances, I think the brand has come out of this okay.

Yes, egos have been bruised and the marketing department is probably feeling a little dazed and confused right now, but the level of publicity has been huge and the new product will probably be a roaring sales success.

In true 2.0 form, the debacle reached such a level of notoriety that the wonderfully-named Epic Fail Store quickly whipped up a t-shirt to cash in on the controversy (below). Hat-tip psfk Good Ideas.

Further reading:

Crowdsourcing Done Wrong: the Vegemite iSnack Naming Disaster (Advertising Age - international recognition!)

Is iSnack 2.0 So Bad It's Good? (Anthill Online).

Names That Are Better Than iSnack 2.0 (dedicated iSnack 2.0 blog).

Vegemite iSnack 2.0 PR Response Turning a Debacle into a Disaster (Mumbrella - editor Tim Burrowes makes some good points about accessibility of corporate spokespeople).

Forget #Vegefail How About #SocialMediaMarketerFail (Online Marketing Banter by James Duthie).

Even Hitler wasn't impressed! (Via cc82)