Articles

Road(s) To Recovery

admin — Wed, 14 Oct 2009 18:22:26 -0400

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Following a Public Relations Consultants Association (PRCA) conference, annual general meeting and chairman’s dinner in London on Oct. 8, 2009, David Gallagher, Ketchum Senior Partner, Ketchum Pleon President, Ketchum London CEO, and Public Relations Consultants Association Chairman, shared his perspectives on the most promising areas for growth for public relations practitioners in the U.K. and Europe.

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By David Gallagher, David Gallagher, Ketchum Senior Partner, Ketchum Pleon President, Ketchum London CEO, and Public Relations Consultants Association Chairman

At a recent Public Relations Consultants Association-CorpComms conference for agency chiefs and in-house communications directors, WPP boss Sir Martin Sorrell took me to task for not featuring China and India in my outlook for the PR industry’s economic recovery.

Fair enough. These and other emerging powerhouse markets should figure into any worldwide plan for growth, and just about any investor would want to see globalization among the strategies of the world’s second-largest holding company of marketing service businesses.

But for those of us in the PR business, based in the U.K. or Europe, the way to recovery isn’t necessarily as easy as merely looking east. Few of us are in a position to simply relocate to Shanghai or Mumbai, and even if we are, what happens to the businesses we’ve built in Bristol or Brighton? For most of us, for better or worse, the challenge is finding growth right here at home, and I can think of at least three “roads to recovery” to consider.

The first road is the direct route: competition. The market for communications services in the U.K. remains one of the healthiest and most sophisticated in the world, and even if the overall volume of business looks limited, there are plenty of savvy buyers looking for smart suppliers. And smart suppliers, I would argue, are those who grow their share of the market with better talent, bigger ideas and stronger commercial management.

The second might be called the high road. Companies that take a higher, wider view of what communications now means will be in a position to win business from companies in other disciplines, like advertising or management consultancy. With the sudden democratizing emergence of social media and the increasing importance placed by consumers on corporate and brand responsibility, the expertise of public relations consultants can be offered at a premium – potentially at the expense of those unable or unwilling to look at the world in new ways.

And the third might be best described as the road rarely taken: collaboration. I’m convinced there is growth in store for businesses that are able to come together and meet opportunities they couldn’t have met on their own. My own agency has seen the benefits of collaboration on several levels, ranging from outright merger with Pleon in Europe, to forming a bespoke service solution with Fleishman Hillard to serve a global engagement. Sir Martin spoke of “consolidation” as a feature of the future, and I don’t disagree, but there will be plenty of ways to grow under the more general banner of collaboration for those businesses with sufficient imagination.

None of these pathways to economic recovery are exclusive, and in fact each is enhanced by participation in the PRCA. Here’s how:

PRCA enhances your competitiveness. With consultancy management standards, round the clock training, and growing number of industry and sector interest groups, your team differentiates its talent, services and commercial viability in a way that nonmembers simply cannot.

PRCA gives you a higher vantage point. With the inclusion of leading in-house teams, international members and regular, structured knowledge sharing and thought-leadership development, you’re afforded insight and connections unavailable to those who have not yet risen to PRCA standards.

PRCA affords you opportunities to collaborate. Through all of the activities described above and wider professional community they foster, you are introduced to potential partners and suitors, suppliers and buyers, to meet opportunities too much for you to meet on your own.

When it comes to post-recession recovery, are there other ways to get from here? Without a doubt. My own business is competing to serve as the global hub, from London and across Europe, for multinationals based in the very markets espoused by Sir Martin, using a combination of local market expertise and centrally managed processes and services. Our immediate prospects for recovery, however, are those closer to home, and while I might look into evening Mandarin courses, I’m not quite ready to throw in the towel on the U.K. or Europe.

.Next: Global Online Shopping Is Up; SEO Helps Get a Piece of the Pie

admin — Thu, 27 Mar 2008 19:29:58 -0400

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The critical role that search engine rankings play in capturing online shoppers is examined in this edition of .Next.

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But Companies Beware of the Google Smackdown

According to a recent Nielsen global online survey on Internet shopping habits, 875 million consumers -- or more than 85% of the world's online population -- have shopped online. This is an increase of 40% in the past two years. Seems like the fear of identity theft isn't slowing folks down! And when choosing which sites to shop at one-third of respondents used a search engine, while one in four relied on personal recommendations.

Nielsen's data underscores the importance of search engines -- a finding that mirrors results from Ketchum's second media usage survey, Media Myths & Realities: A Public of One. As you'll recall, the agency found that search engines were ranked as a top-three media choice for consumers and "influentials" in BRIC countries (Brazil, Russia, India and China). Search engines also ranked in the top four for U.S. consumers.

According to Nielsen, capturing online shoppers during their first interaction with a company's site is critical because consumers tend to stick to sites they are most familiar with. According to Bruce Paul, Vice President, Customized Research, Nielsen U.S., "This shows the importance of capturing the tens of millions of new online shoppers as they make their first purchases on the Internet. If shopping sites can capture them early and create a positive shopping experience, they will likely capture their loyalty and their money."

So all of this shopping online should spell good news for companies that have realized the power of a strategic search engine optimization strategy as part of their media mix, right? Well, that depends. An over-aggressive SEO plan can easily transform into a smackdown from Google they won't forget -- one that can have dire consequences to their businesses.

Google's rankings system, often called a mystery by many, has been the subject of much debate. It has a strict webmaster policy that bears reading a couple of times. It also is worth noting a recent example of the pitfalls of excessive search engine optimization. Hitwise, an Internet metrics company, recently published an overview of what happened to GoCompare.com, a U.K. car insurance comparison Web site that fell out of Google's good graces. It serves as a larger warning for other companies to beware of the Google smackdown.

GoCompare.com, like many comparison sites, seemed to be using SEO techniques to reach the number one position when Internet users searched under the term "car insurance." Harmless, right?

Wrong.

According to Robin Goad, Hitwise's research director, U.K., Google picked up on irregular inbound links to GoCompare.com's site, and -- as the saying goes -- that was all she wrote. "Since being ‘blacklisted,' [GoCompare.com] has dropped down the listing and . . . is well outside of the top 10," said Goad.

How much did its fall from grace impact visitor traffic? From the week ending Jan. 26 -- the week GoCompare.com held the number-one spot (i.e., number one "natural" position) for Google searches using the term "car insurance" -- to the week ending Feb. 9, there was an 87% decrease.

But perhaps even more telling is the window that this created for GoCompare.com's competitors. During this same time frame, its competition saw a substantial rise in traffic for searches for "car insurance": Confused.com increased traffic by 77% since the week of Jan. 26, while Comparethemarket.com tripled its Web traffic over the same period.

GoCompare.com's experience is not an isolated story, as any search will bring up other examples of companies feeling the wrath of Google. (Whether deserved or not, I'll leave it to you to decide.) The important thing to remember, however, is the cautionary tale it provides to teams creating SEO strategies for clients. As Goad said, GoCompare.com's situation "illustrates the fine balance that needs to be achieved between effective SEO and breaking the ‘rules.'"

.Next: Celebrity and CEO Antics

admin — Thu, 18 Oct 2007 18:55:33 -0400

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Ketchum Global Media Network Director Nicholas Scibetta discusses how in today's new-media environment a person's 15 minutes of fame can now happen in two seconds.

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Will Execs Experience the Same "Star" Treatment Britney, Paris and Lindsay Endure Online?

In this edition of .Next, published from a July 2007 article from Bulldog Reporter’s Daily ‘Dog, Nicholas Scibetta, Ketchum's Global Media Network Director, explains how a person's 15 minutes of fame can happen in two seconds and how one has to remember that he or she is always "on" in today's Internet-searchable world. Reprinted with permission from Bulldog Reporter's Daily 'Dog news Web site. Visit the site to subscribe to the daily service: www.bulldogreporter.com/dailydog.

Celebrities are perfect fodder for gossip blogs, the online versions of the People magazines of the world, and other similar sites. We've come to expect to see and read, almost instantaneously, news about Paris Hilton hitting a tree, Paris getting arrested, Paris doing just about anything.

But the online world doesn't stop there. Corporations also need to realize that the antics of their CEOs and top executives could get their own "star" treatment.

Traditionally kept on the down-low, stories about top executives at Time Warner, Citigroup, Whole Foods and Wal-Mart that have made their way onto the Internet, with harsh consequences for some of the individuals involved. With the threat of a shift in stock price and/or soiled public image, corporations are demonstrating little patience for "inappropriate" behavior. What's interesting is the ongoing debate that asks the question: Should companies in certain industries be held to different standards? Think about it for a second. Is a drunken rage by a Hollywood executive just par for the course?

Media personalities obviously are not immune to all of this, and their foibles are favorites for YouTube and sites like it. One only has to remember the situations with MSNBC's radio personality Don Imus or news talk show host Chris Mathews, who recently provided some sub-par commentary to a night's segment while unaware that it was being broadcast live. (OK, Chris had a different word choice to describe it.)

Another interesting example with a twist involves BBC journalist John Sweeney and his confrontation with the folks at Scientology. Capturing a spat between Sweeney and a top Scientology member, a Scientologist posted the clip to YouTube to state their case, and things took off from there. Turning the tables, Sweeney posted his own story, complete with a video of the fight, where he takes Scientology to task again and also apologizes for his actions.

Juxtapose all of this with the fact that if you're not "findable," you're almost nothing nowadays. People Google everyone from potential dates to classmates to job candidates. In fact, just about everyone should assume someone's done an Internet search on them at least once. There are no virgins in the land of search. With this reality comes the fact that everything you do, say and write can quickly find a home on the Internet and live forever.

For corporations, small businesses and entrepreneurs, this is a harsh reality. On one hand, you need to be searchable. Achieving respectable rankings on a Google search can be worth its weight in gold, giving those with top-ranked sites the ability to potentially blunt a crisis, demote a competitor, or successfully showcase products or services. At the same time an individual or corporation can find search rankings to be a major source of angst for many of the same reasons mentioned above.

It's not surprising that this reality has given rise to a host of companies such as ReputationDefender and Naymz, which will "scrub" your image and increase your search quotient. Now I don't think there's anyone out there who doesn't have that photo by the beer keg in a moment of say, acute overindulgence, that would best be burned and buried. Or maybe it's that negative post on some blog that refuses to drop off the radar in an Internet search. That said, the cold reality is that in the fast-food world of the Internet and all that comes along with it, one has to remember that he or she is always "on." Fifteen minutes of fame nowadays happens in two seconds and it doesn't discriminate. PR practitioners, corporations and their employees, spokespeople, and anyone else who represents a brand or company need to commit this to memory and act accordingly. If Paris Hilton has taught us nothing else, it's that fame or infamy, depending on how you look at it, can live on forever.

.Next: Deconstructing Social Media

admin — Tue, 22 May 2007 16:47:32 -0400

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Social media authority and blogger Brian Oberkirch talks with Ketchum Global Media Network Director Nicholas Scibetta to detail the opportunities and challenges of social media.

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Continuing with his .Next interview series, Nicholas Scibetta, Director of Ketchum’s Global Media Network, talks with Brian Oberkirch, an authority on social media who pens the blog Like It Matters, in which he writes about social media, community-based marketing and the changing face of technology. Scibetta discussed Oberkirch’s thoughts about social media, its impact on the marketing communications discipline, and what it means for PR professionals.

NS: In the spirit of the current political debates, where do you net out on the argument that it is not the technology that's changing the media landscape, but instead the social change that's happening among key consumer groups that's influencing technological change?

BO: A friend of mine has a great line that the most confusing thing about the Internet is that most people think it is about computers. I've long maintained that expertise in social media is not about technology. (That said, there is a technological component, and you better be paying attention to the rapidly changing environment when it comes to tools and techniques.) Word of mouth isn't fundamentally different. You always relied on your friends and neighbors for decisive input. There was always that maven who knew more about gadgets or vacation spots or restaurants or wine, and you respected their opinion. You made purchase decisions based on that input.

But now, you have the benefit of hearing kudos and complaints lodged worldwide, almost in real time. Memes can pick up steam and have an impact so much quicker. One video of an exploding laptop forces a communications response. A popular blogger saying he's going to chuck your operating system and "go Linux" because of your digital rights management practices forces a certain series of discussions. Does this mean you have to respond to every person who would deign to post something about your brands? Of course not. But hyper-connectedness puts word of mouth on steroids. Smaller players can play a disproportionate role. Start-ups paying attention will be able to gauge market input much more rapidly, iterate, and grow their base that much faster. This means we'll have a more competitive environment, more things in play, and more homework to do.

We want to connect with those who share our passions. Social media enables that, but it doesn't change basic human dynamics. If anything, I think the technological revolution will force communicators back to basic, human questions: What do these folks care about? What do they want from us? How can we answer these needs? I think we have a chance to move up the value chain and influence the actual products and services we work on, instead of having a technocratic, hyper-professional focus on the tools and techniques of branding, reach versus frequency, mindshare, awareness, category management, etc. It'll keep us honest and more in touch with prime movers.

NS: When should companies know it is right to go to the blogosphere?

BO: I think everyone should be listening to the running conversations available. Think of it as a free 24/7 focus group where people are talking about the good, the bad and the ugly of your company, your product or services or those of your competitors. Who wouldn't want free feedback? Go check out your client's Wikipedia entry. Do a search on Technorati or Sphere to see if any bloggers are talking about them. Check out Flickr or YouTube for photos or videos that mention their brands. When it makes sense, talk back in the form of comments. Then (and only then) once you get the lay of the land, consider developing do-it-yourself media tools such as blogs, podcasts and wikis.

But, keep in mind that not everyone has to self-publish to get tons of value out of observing social media. Listening is key.

NS: What new-media platform do you believe is having a big impact and becoming much more utilized by marketers?

BO: Video has certainly gained traction over the last year. Not that it's being used by marketers so effectively yet, but shows like Ask A Ninja, Rocketboom, The Show with Ze Frank and all the viral videos are showing us a new form of attention aggregation. While some of the marketing response has been sort of knee jerk ("Let's run ads!"), I think we'll see some cool, smart stuff with companies creating daily video content that matters to their audiences. The costs are so low, and with great distribution tools like Blip.tv, it's dead simple for companies to start their own video channels.

NS: The mention of word of mouth is typically followed by a heated discussion peppered with numerous definitions of what exactly is ‘WOM,’ who does it right and what industry has the right to lay claim to it. Looking to bring a unified voice to one part of this discussion the Word of Mouth Marketing Association issued updated ethical guidelines for marketers working with bloggers. Will people ever be on the same page about WOM and what impact do you think the guidelines will have?

BO: I applaud all the leadership efforts I've seen to bring ethics and good citizenship to the fore of the discussions around online conversations. WOMMA, certainly. And my friend Chris Heuer is working hard with his Social Media Club tour to hold discussions about disclosure, best practices for the so-called social media press release, etc. All this work to spotlight the right things to do, I champion.

That said, it's also a bit of an academic parlor game. What really counts is what actions are taken at the edge, in practice, within the contexts of actual conversations with the communities we engage as professionals and peers.

Ultimately, though, any guidelines are just guidelines. If everyone pays lip service to certain social media expectations -- excellent. Let's see what they actually do when money, credibility, stature, competitive advantage and competing priorities come into play. If you're really down with the new, transparent, open ways we're going to have to communicate around business issues, that will be made obvious.

Lastly, we as professional communicators aren't really in charge of these decisions about communication mores. The communities we interact with are. They could care less about WOMMA or any attempt at self-regulation. They don't care if you're APR, and they probably mistrust you anyway. If you seem to be communicating in a way your communities deem unpalatable, they'll be sure to tell you, and you'd better be listening. They are the final arbiters of what is acceptable for them.

NS: What is your opinion on the current talk of companies -- ranging from advertising to promotions, guerrilla marketing to word of mouth -- looking to provide offerings around new media that are more typically associated with the PR field? What must PR agencies do in response?

BO: I have long maintained that public relations has a huge opportunity when it comes to social media. PR professionals are trained to be boundary spanners, linking disparate parts of the company together, bringing media and experts together, and translating offerings for analysts, etc. If PR people key in on their ability to connect audiences, they'll own the social media practices. If they try to make it all about content, or treat blogs as just another media outlet, I think they miss the larger point. I don't think advertising types are as able to manage the relationship dimension, nor do I think the ‘buzz’ types of offerings go much beyond the promotional or viral. These tools give us an opportunity to build meaningful connections with people who use our products, people who might work with us, people who might partner with us, etc. A PR team using these tools can put together a timely, strategic dashboard for a company to make much more informed decisions.

NS: What impact do you think social networking sites have on the media and what does it mean for PR professionals?

BO: Social networks are a great place for all marketers to observe what people actually think. As I mentioned earlier, who wouldn't want 24/7 chatter about things they work on perfecting? I think PR folks should look at social networks as another increasingly connected piece of the information ecosystem. Don't violate the vibe of a network by trying to stampede into the market in a ham-fisted way. But do listen in and understand what's going on. If you or your client has something to add to the conversation in a way that's relevant to that particular context, do so. You see some good examples of this in Second Life, for instance.

NS: What are your top five pearls of wisdom about social media that you'd leave with someone before getting off an elevator?

BO: Social media is about connection, not content.

Social media is about them, not you.

Social media may be cheaper initially, but it takes far more homework.

Get small fast. (Niche is nice. Think smaller feature sets, more targeted audiences, less chatter from you, and so on.)

Relax, it's early in the social media game. You're not behind because everyone's just trying to figure out the new environment.

NS: You've just landed the job of running a traditional PR agency. What would you implement in response to social media?

BO: I'd make sure everyone understood the new tools and have them describe to me how they see the information ecosystem in which our clients live. A lot of these things just have to be experienced. So, to get my team ‘net native,’ I'd make sure they were reading the blogs right for their clients, contributing to company knowledge through a wiki or internal blog, and sharing relevant links. Plus, I'd want to make sure my shop was using social media tools to promote our own expertise.

NS: What should PR professionals know about working with and reaching out to bloggers?

BO: They should know that bloggers probably like getting "pitched" even less than real journalists. Really read their blogs and get familiar with what makes sense. Cut to the chase -- for lots of these folks, their blog is an extracurricular labor of love. Be ready to have your bad pitch blogged -- I've seen plenty of mocking of PR faux pas. That said, bloggers love getting a heads-up on things that matter to them, and if you bring them in and really register their feedback, it can help a great deal. Think beyond the ‘hit,’ though. No one likes a drive-by pitch.

NS: How are social networking sites changing the marketing landscape for companies?

BO: The more connected we all become, the faster things can gain momentum. I think nuanced marketers who pay attention will have an increasing advantage -- whether they are watching blogs, Flickr streams, MySpace profiles, P2P traffic, user-generated video, bookmarks or Digg.com, to name a few. These are all forms of connection that are going to impact our work in marketing.

Industry Veteran Shares Insights on Changing Public Relations Industry

admin — Tue, 22 May 2007 16:46:31 -0400

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Ketchum’s London office co-hosted a discussion by Willard “Bill” Nielsen to gain his insights on the rapidly changing communication landscape.

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As part of its ongoing effort to enlighten colleagues and peers with the latest perspectives of top PR professionals, Ketchum London teamed with the Public Relations Consultants Association, the largest public relations professional organization in the United Kingdom, to host a discussion by 37-year industry veteran Willard “Bill” Nielsen. The event, called Industry Insights Breakfast, was held at Ketchum London’s office on Oct. 13, 2006, and offered a privileged opportunity to hear the thoughts of a true giant in public relations.

Nielsen retired as Corporate Vice President of Johnson & Johnson in December 2004 after a nearly 16-year career with the company, for which he oversaw public relations for a diversified “family” of 200 operating companies with more than 115,000 employees in 57 countries. He joined Johnson & Johnson in 1988, following an 18-year agency career, first with Carl Byoir & Associates, from 1970 to 1986, and then with Hill & Knowlton. He has also recently served as a special consultant to the Chairman and CEO of Johnson & Johnson.

Nielsen continues to be active in the leadership of PR professional organizations. He served two terms as a president of the Arthur W. Page Society and was inducted into that organization’s Hall of Fame in September 2003. In addition, he is a past chairman of the Public Relations Seminar. He also chaired the board of the Institute for Public Relations Research and Education and served on the Board of Directors and Executive Committee of the Global Public Affairs Institute. He continues to serve on the Board of the Arthur W. Page Society and on the Committee of the Public Relations Seminar, and is a member of the Wisemen, the National Press Club, the Foreign Press Association and the Public Relations Society of America.

Below is a summary of Nielsen’s remarks.

“You have chosen a great career in a wonderful business,” he began as he addressed a gathering of PR professionals from a range of U.K. agencies. “I tell young people all over the world, the best place to start your career is in an agency. Where else will you get the diversity, the opportunity and the sheer challenge?”

People with agency experience make the best corporate clients, he said, largely because of the skills and mindset they develop in the fast-paced, highly focused environment of professional services firms.

“An agency foundation will set you up for a very lucrative future on the corporate side,” he said, “and consultancies should actively look within their own ranks for the next generation of client talent as actively as they look for their own future leaders – everyone will win.”

His views in other areas of the agency business were not as rosy, however.

“Purchasing or procurement departments have their place in well run companies, but they can ruin the value that clients receive from consultancies by too much bean-counting,” he said. “They want to turn advice and counsel into commodities, and that’s not good for business.”

Further, he said agencies are contributing to what he calls a “growing wedge” between clients and their agencies. “Because of holding company pressures, agencies feel compelled to create ‘products’ or packages of ‘goods’ that diminish their value to clients. They’re seen as hawkers rather than as advisors.”

“My advice,” he added, “is to get into the heads of your clients – into their offices or cubicles if you must – and understand the world from their eyes, and then give them your best advice. That’s valuable – far more so than a service or product or methodology.”

And for the industry at large, he suggested a return to a values-based orientation to guide the conduct of businesses and agencies that advise them. J&J’s well-regarded credo has served the company extremely well “in good times and bad,” he said, and added that “it is the role of the agency to know, live and even police the values of its clients.”

His comments echoed views he shared earlier in the week as the Institute for Public Relations International Distinguished Lecturer at an event held at the Reform Club in London. In his speech, “Sustaining Trust in Today’s Business Environment,” he called for the PR industry to adopt a statement of values that can define the practice now and in the future. He suggested a set of principles that would include a commitment to transparency and well informed publics, integrity when it comes to representing clients, respect for high journalistic standards, and support for the PR profession with a personal commitment to character and integrity.

“And most importantly,” he advised, “go out there and enjoy yourself. You’re on the front end of important, exciting, creative stuff, and you’re paid to have fun – so go out there and do it.”

.Next: PR and the World of New Media

admin — Tue, 22 May 2007 16:44:42 -0400

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Ketchum Global Media Network Director Nicholas Scibetta discusses the ramifications of today’s new media with Daniel Greenfield, who offers a dual perspective of new media as both a VP of corporate communications for EarthLink and a blogger.

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The proliferation of consumer-generated media, specifically blogs, appears to be at the forefront of every conversation about public relations and the dialogue continues to rage about the challenges and opportunities it holds for the PR industry. Who should or shouldn't blog and why? What will the popularity of Web sites like Second Life and YouTube mean for the industry and for companies? Will podcasts truly gain traction? There are so many questions, and it seems, an endless list of individuals willing to dispense with conflicting answers. The PR industry was built on its unique and uncompromising ability to ignite and continue conversation among consumer audiences and it is being pushed now more than ever to not only become better at leading this conversation within the emerging media landscape, but to also become a driving force behind the content that sparks that conversation.

To shed light on these issues, Nicholas Scibetta, Director of Ketchum’s Global Media Network, had a conversation with Daniel Greenfield, Vice President, Corporate Communications, for EarthLink. Greenfield has the unique dual perspective of an executive looking from the inside out by managing the communications of a large corporation and an avid blogger (http://bernaisesource.blog.com/) from the outside looking in at the intersection of new media, public relations and journalism. Scibetta spoke with Greenfield about the ramifications of these new-media tools, how he views the changing media environment, and what awaits the industry as consumer-generated media becomes more entrenched in the media landscape and in the lives of companies’ various stakeholders.

NS: When should companies know it is right to go to the blogosphere?

DG: I am not sure there is a tipping point to start blogging. Clearly more and more companies have started to blog – but recent estimates suggest that only 4% of America's largest companies have outward facing blogs and only 10% of small businesses.

In some cases, companies don't have a choice. Blogs are proliferating – as many as one blog per second – and bloggers are not shy in sharing their feelings about companies. Ignore bloggers, and risk the consequences. In a well known case, Kryptonite locks ignored the blogosphere when it was widely circulated that a simple plastic ball pen could open what was thought to be a pick-proof lock. Failure to take bloggers seriously harmed the company as much from a customer relations perspective as the estimated $10 million it took Kryptonite to deal with the crisis.

Fundamentally, I believe a company's decision to blog should depend on two important considerations: corporate culture and customers.

Understanding social media does not mean that a company should immediately start blogging. Social media can be a serious mistake if there is a low tolerance for experimentation, transparency and decentralization. Regardless of a company's DNA, social media must be accepted and embraced internally; both employees and management must be educated on how best to implement a social media strategy.

One size does not fit all. Companies are looking to find new ways to reach media-saturated consumers who are tuning out more traditional forms of communication. But not everyone is embracing social media at the same rate or even at all. While my parents use the phone, and my peers use e-mail, my friends' nieces and nephews swear by IM, Facebook and MySpace. A successful social media strategy requires an understanding of one's customers and carefully balancing the use of new and traditional information channels.

Understand these considerations, and you are ready to consider blogging as a communications channel.

NS: You've just landed the job of running a traditional PR agency. What would you implement in response to social media?

DG: There are actually two parts to this question:

One, how do I deploy social media internally to market my firm's thought leadership to recruit employees and attract clients? Two, how do I sell blogging to my clients as a service they need?

Regardless, before I did anything, I would assess the basics – why, who, how, and how much? Why are we engaging in social media, who should do it, how should we do it and how much we should spend?

The barrier to entry is incredibly low, but the cost in time is incredibly high. Are you going to hire full-time bloggers, tap employees when they have time, use ghost bloggers for clients? Given the level of commitment, full-time bloggers are an added expense, but are more reliable. Encouraging employees to blog on the side yields inconsistent results and ghost writing for clients will prove disappointing at best.

Internally, I would make certain that a blogging policy is in place to make sure employees understand the rules of engagement. Externally, I would review the communications needs of each of my clients to determine if their industry is well suited for blogging and whether they have the internal resources and corporate culture that would permit effective blogging.

Remember not every employee or client is suited for blogging. Good judgment and strong communication skills are critical. Passion is essential.

NS: What are your top five pearls of wisdom about social media you'd leave with someone before getting off an elevator?

DG: Blogging is a conversation, so don't shout.

Be passionate and write on issues you know and care about.

Be confident in your mission, but be open to positive and negative feedback.

Post consistently and keep your reader in mind.

In the business world, blogging is the freedom to express yourself in a personal way; it is not the freedom to say anything you want.

NS: What should PR professionals know about working with and reaching out to bloggers?

DG: Remember everything is on the record, so pause and think before submitting a posting. It is OK to disagree, but avoid being incendiary unless your goal is to create controversy and notoriety. Keep to the focus of the blog. Just like you shouldn't indiscriminately blast-fax a press release to a media list, respect the time of the blogger. A reporter will ignore an inappropriate or irrelevant press release; a blogger may very well call you out in a posting causing you to really regret sending a release in the first place.

Be respectful, be candid; don't be afraid to e-mail the blogger in lieu of a comment if you feel uncertain about a posting. It may get posted, but you may minimize a negative response.

Be transparent; don't mislead or deceive and avoid anonymous postings. Understand who the readership is and determine if the blog is open to an alternative point of view.

As with reporters, it is critical to build relationships. Bloggers want a conversation, and giving a scoop to a blogger can go a long way.

NS: What impact do you think social networking sites have on the media and what does it mean for PR professionals?

DG: Social networking sites are causing boundaries to blur. The distinction between news and advocacy, and opinions and facts is less important. Reporting is getting more personal.

Social networking sites have made the 24-hour news cycle irrelevant. Postings live forever, and discussions can last for days and weeks and cause stories to resurface.

Social networking sites are shifting the balance of power as user-generated content from fans and customers is sought after – often at the expense of slickly produced, professional content. You don't need expensive equipment or a costly distribution mechanism to post videos or audio.

News and entertainment are what the reader, listener or viewer values. With infinite real estate in cyberspace, the so-called ‘long tail’ is more relevant as the obscure is as searchable and profitable as the most popular.

Newspaper and traditional media will have to find new ways to engage readers who have multiple sources for news, expect regular updates and demand opportunities to participate.

In short, what you gain in exposure and access, you lose in control and authority. Titles like CEO and VP are less important when any person with an Internet connection and a free blog account can become an expert, famous or infamous.

NS: How are social networking sites changing the marketing landscape for companies?

DG: Social networking sites are changing the relationship between producer and consumer, company and customer. Social networking sites are allowing individuals to engage in two-way conversations and share their content (writing, videos, music) and personal information with thousands, even millions, of people at one time for pennies on the dollar.

Consequently, consumers are expecting companies to communicate with them candidly and directly. Corporate speak is out, and personal communication is in. There is a real shift in power and audience dynamics.

As Christopher Barger, who heads up IBM's blogging efforts recently told me: ‘The audience now controls your brand and how you're perceived – not the messenger. Every single person can respond. Perception is controlled by how the audience is receiving, not how we are telling.’

With greater audience participation, we are also seeing a dramatic increase in user-generated content. Companies are soliciting videos from customers to be used in marketing campaigns. Fans are courted and encouraged to talk about their favorite movie, television or product online.

Customer engagement is the new buzz word. Where the number of impressions was your indication of success, companies through social network site are measuring expressions – or the depth of the relationship between customer and company, fan and media property.

NS: What new-media platform do you believe is having a big impact and becoming much more utilized by marketers?

DG: Blogging comes most immediately to mind. Clearly sites like MySpace, YouTube and Second Life are gaining traction, but the adoption rate for blogging is profound. Now I don't want to oversell blogging. It is not for everyone. Companies in the health, security and financial industries need to think long and hard about whether blogging is right for them. And as I said before, the adoption rate for America's largest companies remains in the single digits. But for those with the right corporate culture and right audience, blogging adds a whole new dynamic to corporate communications. It also allows for deeper engagements with customers and gives companies an inexpensive platform to extend their message.

NS: What is your opinion on the current talk of companies – ranging from advertising to promotions, guerrilla marketing to word-of-mouth – looking to provide offerings around new media that are more typically associated with the PR industry? What must PR agencies do in response?

DG: We are living in one of the most exciting times to be a PR professional. The rules of corporate communications are being rewritten each day. Changes in technology and shifts in public expectations are mixing together to form a splendid communications cocktail with a kick – that is shaken, not stirred. The challenges to keep up are immense; the risks are enormous, but the opportunities are limitless.

What is the key to success? Be real, respect your audience, and remember a good story told well will trump any new-fangled technology any day.

.Next: The New-Media Transformation

admin — Tue, 22 May 2007 16:11:01 -0400

Short Description

Ketchum Global Media Network Director Nicholas Scibetta explores some of the latest issues and trends of today’s new media with Ross Dawson, an expert on the future of media and technology trends who is chairman of the global events and consulting firm Future Exploration Network and writer of the blog Trends in the Living.

Full Story

Public relations is about igniting and continuing conversations with the audiences that matter most to organizations and their publics. These conversations and the media through which they take place are in the midst of profound change thanks to the proliferation of new media such as blogs, vodcasts, wikis, virtual communities and social-networking Web sites. This transformation holds great potential for public relations professionals and the ways they work with media.

To shed light on this transformation, Nicholas Scibetta, Director of Ketchum’s Global Media Network, had a conversation with Ross Dawson, an expert on the future of media and technology trends who is chairman of the global events and consulting firm Future Exploration Network, CEO of the consulting firm Advanced Human Technologies, and writer of the blog Trends in the Living Networks. Ross and Nicholas discussed some of the future directions of new media and what it means for public relations.

NS: What companies do you feel are doing a good job of playing in the ‘new media’ space and why?

RD: News Corp. is the media conglomerate that has done the best job among its peers in getting into new-media forms. This has been not only through its highly discussed acquisition of MySpace, but also its less-visible purchase of IGN [a gaming network], which recognized that video games are now part of the media space.

In the start-up space, I like Edgeio, which competes with eBay and other classified services. It enables people to publish listings on their own blog or Web site, which are then aggregated into one space so people can search for and find what they are looking for across all advertisers. One of the most important questions in the media space is whether classifieds will remain associated with traditional media. Edgeio is a very interesting experiment based on the assumption that they will be separate.

NS: What do you feel are the biggest misconceptions about working with new-media outlets and what are the three things you think all PR professionals should know before reaching out to them?

RD: Many people associate new media with blogs and podcasts. These are part of the emerging media space, but any Internet presence that has significant reach can be considered new media. Three things for public relations professionals to keep in mind when reaching out to new-media outlets are, one, PR professionals should always be completely transparent and open in their communication with new media; if they don't, it will swiftly boomerang on them. Two, every message should be targeted based on an understanding of their interests -- you will get no respect if you contact people with irrelevant information, but you will be respected if you know what they will be interested in and why. Three, the way to engage new media is to build relationships -- people in new media believe in relationships and conversations, not in press releases.

NS: What is the future of media and what is the role of both new and traditional media in PR programs, given the current media landscape?

RD: Mass media will not die -- what we are seeing emerge is a continuous spectrum from traditional mass media through to small community-based conversations. For any particular client or campaign, PR professionals will have to consider where across this spectrum of media they should be investing energy to achieve results. In some cases, accessing only traditional media will be appropriate, while in others, new-media channels will be the primary target. Usually these will be complementary, especially given that traditional media increasingly takes its cues from key bloggers, and their stories can have little impact if they do not generate a discussion among bloggers.

Newspapers and business magazines, in particular, are actively looking for story ideas from bloggers, not least because it means those stories are more likely to get attention. Anecdotally, major bloggers are often pestered by mainstream journalists to link to their stories. A few high-profile bloggers linking to a journalist's article means that it will get far more attention. Related to this is the reality that it is not just advertising campaigns that are now measurable and accountable, but also journalists, whose readership is now often directly measurable. Journalists whose articles are not read won't have a job, and those that get many readers will quickly rise.

Newspapers and bloggers are now competing for scoops. A similar dynamic will soon emerge in the video landscape. The television networks are now experimenting with putting selected programs online, advertising slots and all. This makes sense, as it can only generate additional viewers, and value for their advertising. At that point, the number of viewers will be strongly related to how many bloggers link to the program, or people endorse it on popular video sites, such as YouTube.

NS: What impact do social-networking sites like MySpace and Facebook have on the media and what does it mean for PR professionals?

RD: Advertisers are seeking to reach young people who no longer consume traditional media. They can now do that by positioning themselves at the interstices of their social relationships – for example in social-networking sites. PR practitioners must be enormously careful in this space. Advertising is an overt message, so can be tolerated. Seeking to influence without being seen in the absence of disclosure is more likely to have a negative than positive impact. This means that PR practitioners need their activities in social-networking spaces to be entirely visible and clear, with the clients' interests evident. For example, if people are rewarded to endorse a product or service, that should be disclosed. There are many possible effective PR activities in social-networking spaces. Complete transparency in these activities must be the guiding principle.

NS: What do you make of virtual environments and their impact on companies?

RD: The development of virtual worlds, such as Second Life, is still at a very early stage. Within the next decade they will begin to play a massively important role in society and business, providing a space where people can interact in ways that mimic real life. A recent article in the Harvard Business Review discussed marketing in virtual worlds; this is a prelude to far more attention being paid to this important topic. Business as well as social interactions will routinely happen in virtual worlds. This provides new ways both to identify influencers, and to participate in the new flow of messages and ideas.

NS: What is your opinion on the current talk of companies -- ranging from advertising to promotions, guerrilla marketing to word-of-mouth -- looking to provide offerings around new media that are more typically associated with the PR field? What must PR agencies do in response?

RD: Our connected world is in the process of radically changing how messages flow. Many organizations have the capabilities to play in this new space, and see the opportunity to build new revenue. PR companies need to ensure that the way they conceive of their business is not limited by their history. Options include explicitly repositioning their organizations, or establishing new operations that work in new areas. However, the most important action is to ensure that the necessary skills and knowledge are in place to meet the challenge of the new competition.

Some of the critical skills include a deep understanding of Web 2.0 technologies, such as syndication, tagging, identity; the ability to engage in and facilitate informal conversations rather than communicating through press releases and sound bites, a major shift for many in the PR community; and capabilities in producing exceptional -- in interest, not necessarily in production quality -- audio and video content. The PR community has capabilities that are unique and highly relevant to the emerging new-media space, but that gives them no right to expect to succeed against new competitors. The industry must swiftly build on its core strengths in order to succeed in a rapidly changing environment.

Understanding and Managing Negative Word of Mouth

admin — Tue, 22 May 2007 16:10:03 -0400

Short Description

Zócalo Group President Paul Rand explores how consumers now control the message and how consumer word of mouth can criticize as well as praise a company.

Full Story

On Sept. 28, 2005, the Word of Mouth Marketing Association (WOMMA) continued to advance one of the most newly recognized forms of communication when approximately 240 attendees gathered at New York City’s Marriot Marquis hotel for a one-day conference titled “Word of Mouth vs. Advertising.” Among the speakers was Paul Rand, President and CEO of Ketchum's word-of-mouth marketing agency, Zócalo Group. Here Paul explains how consumers now control the message and how companies can respond to consumer word of mouth that can “knock” as well as praise a company.

With the maturing of the Internet, mass participation in discussions about companies and mass dissemination of information have moved from a possibility to a reality. It's no longer just one neighbor complaining to another about a bad experience he had with his car --- it’s a blogger relating his complaint to millions of people around the world. And what he says has permanence on the Web, unlike a passing comment made over the backyard fence. A review on Amazon.com or a strategically placed blog posting now has the power to radiate to more viewers than a primetime TV ad and be perceived to have more credibility.

The recent WOMMA conference called “Word of Mouth vs. Advertising” provided us with an exciting opportunity to explore this phenomenon. At the event, fellow word-of-mouth communicators exchanged insights about how word of mouth amplifies, answers questions, and adds a seat at the advertising table for consumers who now can talk easily about products and the ads used to market them. In the end, there was agreement that there is no word of mouth vs. advertising or word of mouth vs. anything. Word of mouth – at least effective word of mouth – must complement and work in harmony with all of the other marketing disciplines.

Ketchum was invited to shed light on how to understand and manage negative word of mouth. Everybody wants and is striving for the great benefits that positive word of mouth can generate, but word of mouth also can serve as a double-edged sword. And more and more companies are realizing this dark side of word of mouth. For this reason, understanding and managing what I term “determined detractors” becomes increasingly important.

Determined detractors are critics, competitors and even peers who are, for one reason or another, bent on causing a company harm or hindering its success through a focused, negative voice. Three basic types of determined detractors exist.

The first type is what I call the “Hear Me’s.” They want or need to be acknowledged. They’re people who quickly can escalate an issue if they feel their requests, complaints or problems are ignored. For instance, if someone called a cable TV company to report a problem several times and then, after receiving no response or an unsatisfactory response, started to write critical letters to company management, newspaper editors and consumer trade organizations, that person would exemplify a Hear Me.

The second type of determined detractor is a “Reputation Terrorist.” Unlike Hear Me’s, who create noise because they have a grievance with one particular issue but not an agenda with a particular party, Reputation Terrorists have a vested interest in publicly criticizing a company or brand. And unlike a Hear Me, the primary goal of a Reputation Terrorist is to cause a change by maligning and changing the perception of a company’s reputation. For example, a disgruntled fired employee who used blogs to reveal sensitive internal information about a company in an attempt to embarrass it would qualify as a Reputation Terrorist.

The third type of determined detractor can be even more dangerous. Moving one level beyond Reputation Terrorists, “Competitive Destroyers” look to create a negative situation for a company or spotlight potentially damaging information, such as financial concerns, legal issues or product recalls. And their goal is not simply to damage a company’s reputation; it’s to put a company out of business.

As insidious as these determined detractors may seem, however, companies can take several steps to prepare for and protect themselves against this negative word of mouth. The first step involves simply making the facts available when any event threatens to turn into a public controversy. Disclosing as much information as possible through an appropriate word-of-mouth channel will neutralize any ammunition a determined detractor potentially could use later.

Second, a company should be proactive in understanding and building relationships with the word-of-mouth community in which it thrives. In this way, a company can establish a basis of credibility and familiarity, determine if its brand or product is being talked about, understand what bloggers and writers are the most influential, and spot market needs and opportunities.

Third, a company should put a crisis-watch program in place to monitor, assess and anticipate regularly what is coming through the word-of-mouth pipeline. Knowing when and where a flame ignites is crucial in containing it and extinguishing it before it becomes a full-blown fire. For instance, if word of mouth suggests detractors may use an annual meeting to protest an issue, the company can take steps to prepare for such activism, especially with matters that might spark media coverage.

A case in point of why a crisis-watch program is critical is the episode that occurred with Dell and blogger Jeff Jarvis this summer. Jarvis began writing in his personal blog, BuzzMachine, about his lengthy quest to fix a $1,600 computer, an ordeal he said included countless e-mails, some unanswered, and phone calls to Dell's customer-service line. When the PC overheated and malfunctioned, he was told to send it in. When it still wasn't working when it came back, he launched a series of attacks on Dell, including an Aug. 17 open letter to CEO Michael Dell. He ended up getting a refund and, by the end of the episode, attracting more than 10,000 daily visits to his blog. As a result, Dell was embarrassingly forced to add more customer-service representatives and improve their training.

Big brands and big thinkers attended the WOMMA conference, putting their heads together to explore the best ways to harness the power of word of mouth credibly and further establish this new field as a powerful form of communication. It’s increasingly clear that word of mouth and its participants are maturing and evolving. Ketchum is proud to be a part of this initiative and looks forward to continuing to help define word of mouth and provide a greater understanding of it to our clients, colleagues and peers.

Customer Evangelism and the Power of Word of Mouth

admin — Tue, 22 May 2007 16:06:01 -0400

Short Description

Paul Rand, President of Ketchum's word-of-mouth marketing agency, Zócalo Group, shares his insights from a presentation he delivered at the first-ever trade conference on the topic of word-of-mouth marketing.

Full Story

On March 29 and 30, the Word of Mouth Marketing Association (WOMMA) made history when more than 350 professionals gathered at Chicago's Hotel Intercontinental for the Word of Mouth Marketing Summit, the first-ever trade conference on the topic of word-of-mouth marketing. The summit brought the industry's best and brightest together to further WOMMA’s mission of building a prosperous word-of-mouth discipline based on best practices, effective standards and ethical leadership. Among the summit’s attendees were Ketchum’s Paul Rand, President and CEO of Zócalo Group, Ketchum’s word-of-mouth marketing agency. Here Paul explains the key points of the presentation he delivered, “Customer Evangelists: Motivating Customers to Talk About You.”

It may surprise some people that something once thought of as genuinely spontaneous now merits its own trade association, a code of ethics, and a panel of experts. But word-of-mouth marketing has emerged as a medium whose time has truly come and, as this first summit showed, one now deserving of its own professional organization and guidelines.

Word of mouth, of course, has been around since the beginning of human interaction. What has changed now is that marketers and communicators are finding it increasingly difficult to cut through the media clutter, so they have turned to word of mouth as a non-traditional way to reach consumers. At the same time, ample data now exists that proves word of mouth can have a dramatic impact in reaching consumers in ways that traditional mass communication can’t. As a result, the question arises: “Is there a more effective way to employ word of mouth to cut through today’s media clutter, and, if so, is there a way to do it credibly and ethically?”

The Word of Mouth Marketing Summit offered us an exciting opportunity to compare tactics, debate issues and identify trends related to this question. At the event, we had a unique opportunity to come together with fellow word-of-mouth communicators and exchange insights about everything from age-old word-of-mouth communications to techniques now on the cutting edge, including blogs, message boards and product seeding programs. In the end, we found the summit invaluable in not only furthering our own understanding and application of word-of-mouth marketing but also in confirming the focus and direction of our own firm’s word-of-mouth services offerings.

We were invited to help shed light on the connection between word of mouth and customer evangelism. Specifically, we were asked to explain how customer evangelism can be extended from a one-to-one process to a one-to-many process with the same effect. To do this, we focused on how public relations tactics can be used to deliver what we call “customer evangelism in overdrive.”

Gaining individual customer evangelists to extol the rewards of a business experience represents a proven and critical communications tactic. But by building on this basic word-of-mouth process, many organizations can gain the capability to dramatically expand and strengthen their network of customer evangelists and their impact.

In particular, we have identified four ways that public relations techniques can be used to unleash the power of “customer

evangelism in overdrive”:

Mutual Benefit – Asking customers to do something for your business without reciprocating the benefit will not work in the long run. Thus, it’s important to structure a customer evangelism program with mutual benefit for both you and the customer. This may entail helping clients talk to the media in a way that helps their businesses, helps them connect with prospective customers or helps link them with other valuable third parties.
Media and Analyst References – Leveraging positive customer testimonials with the media and analysts is a cornerstone of public relations. Thus, it’s critical for companies to foster relationships through which they can gain testimonials to parlay with media and analysts. Having a customer testify to a company’s value delivers credibility that is invaluable in comparison to a company trying to promote its value directly.
Customer Gatherings – Many customers don’t have the ability to connect easily with other industries and fields. So when you can gather different customers to exchange information with and provide feedback for your organization, you can open a bridge and build a bond among customers that can reinforce positive experiences and shared challenges.
Customer-based Research – When you can get customers’ opinions and feedback before you launch a product or service, you gain more than valuable insight. You can also recruit advocates who feel they have contributed to the development process and who have developed loyalty and attachment to the product or service.

Identifying these four methods represents just one of many steps in the program Ketchum is developing to leverage word-of-mouth communications and reach media through unconventional means, such as blogging, podcasting, and other viral marketing techniques.

Word of mouth is going through a dramatic shift. Marketers are learning how to encourage and amplify this natural phenomenon while still respecting and protecting its honesty and integrity. Using blogs, online communities, buzz marketing, customer evangelism and other word-of-mouth tools, WOMMA and its members are helping define this new field as honest, authentic two-way communications between marketers and customers.

As a charter member of WOMMA, Ketchum looks forward to building on the lessons learned at this conference and seeking to provide a greater understanding of word of mouth to our clients, colleagues and industry peers.