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December 23, 2004
More Insight into Future of Media and Evolving Role of PR
Edelman held its end of year executive leadership meeting last week in New York City. We were fortunate to have three outstanding outside speakers who are experts on the evolution of the media business. They include Phil Revzin, who runs all of Dow Jones properties outside of the US, Jonathan Klein, recently named president of CNN in the USA, and Michael Wolf, who is the senior partner at McKinsey in charge of the media and entertainment practice. I will relate key comments by each of the speakers, and then provide my own views at the end of this entry.
Revzin: The Wall Street Journal will launch in India in early 2005 in cooperation with the leading Indian newspaper. It plans a China edition in the next year. These national editions are meant to serve both American executives working abroad and the local business community. The Journal no longer has national news editors--they have given way to a global news editor. The Wall Street Journal believes its remit to be everything related to the life of a business person, from their investments to their life at the office to the best resorts and restaurants. The Wall Street Journal on line product is very successful even as a paid subscription, with unique attributes such as query to journalist and bookmarking. He believes that blogs are not a real threat to mainstream media and that the quality of media remains excellent despite the pressure to publish more quickly. He suggests that PR folks can be very helpful to journalists by introducing them to the next level of executives below the CEO, so that strong relationships can be forged before accession to the top job. He noted the importance of educating beat reporters over time on a company and industry, and underlined the importance of PR folks having personal connections to reporters, with relationships built on trust and transparency.
Klein: Broadcast has become too regularized and has caused the audience to tune out. Networks are too accustomed to going to press conferences and regurgitating the content, just covering the headlines. He wants CNN to cut through the background clutter, to make the news easier to watch and then understand. "We must constantly refresh our approach to get our message through. We have to focus on a few topics, such as terrorism and security," he said. He noted the increasing localization of broadcast, with CNN Europe having a different look and feel than CNN US. He wants to focus on high interest topics such as music news (interestingly movie news not so compelling). He wants to win viewers back from specialized cable networks such as the History Channel and Court TV. He noted his recent experience at Feedroom, with the power of broadband now allowing companies to turn their own web sites into media outlets to reach investors, employees and other stakeholders.
Wolf: Consumers are watching less news, especially traditional news broadcasts, than ever before. In fact, more are now getting their news from late night talk shows or comedy shows. Consumers are taking their news "cafeteria style" by taking small bits of knowledge from many sources. People are looking for individual stories and are not relying on a single news brand to deliver the information. Tabloids are a very fast growing and influential news source, with heavy reliance on celebrity gossip and sex. Another fast growing medium is suburban newspapers, which are more thoroughly read than urban daily papers because they offer more local news and relevant advertising. Advertisers are seriously concerned about the efficacy of their spending in traditional advertising, particularly on new product launches. They are scared about blogs because they are an uncontrolled medium. They are unable to reach key growth audiences with traditional media, including affluent Hispanics, gays/lesbians, upscale businesspeople. Product placement is not a fad, it is here to stay. The new film Aviator has Leonardo de Caprio as businessman Howard Hughes, sporting his Keds sneakers, part of a cost effective promotion. Key to this is not offset of production costs but ability of the brand to fit into the show, as younger viewers particularly dislike excessive promotion. The content must have a "subversive look" to be most effective, a self directed and not corporate controlled approach on a company web site as one example. Companies should make their web sites a place for consumer experience and destination for fun plus product information, such as Pepsi.com. Marketers must be aware of opportunities on the smaller screens of PC and cell phone, beyond television, particularly for young consumers.
What are the implications for PR people as we enter 2005?
1) We need to expand our horizons to include a broader set of delivery options for our messages. We should go direct to end user of information via cell phones, PCs etc.
2) We should recognize the importance of media vehicles such as mass circulation tabloids and suburban newspapers, plus the comedy and late night shows.
3) We can help our clients create compelling content for distribution on their own web sites.
4) We should persuade our clients not to fear blogs but to participate in this wonderful democratic world of communication.
5) We have a great opportunity to take market share from advertising agencies by offering credible, interactive and entertaining programming.
Have a wonderful holiday season. See you on the other side.
Posted by Edelman at December 23, 2004 8:50 AM |
Comments
I don't wish to rain upon your parade but I read last week that a survey reported at the recent international Public Relations Association conference in Dubai indicated that PR was, in the eyes of the public, the least trusted of all communication media (for want of a better word) with a trust rating of 4%.
That's no doubt a result of bad practice, but it does indicate the size of the mountain that has to be climbed.
Posted by: john dodds at December 24, 2004 11:47 AM
John,
The PR industry has to improve its own image and its own reality, no doubt about that. We also need to confront stigmatization of our industry. An example I came across this morning An article in the Russian Journal blasting PR spinners for saying bad things about President Putin contending that PR firms were making Putin out to be anti capitalist and were causing problems for Russia This is so bizarre as to be amusing.
I intend to write to the publication to ask for a correction.
Posted by: Richard Edelman at January 3, 2005 4:07 PM
When a PR profissional - and a vice -president of one of the top ten !- says in a interview that he was surprise that people are more interested in stories closer to their lives.... give me a break...What you could expect readers will think of PR people?
Posted by: andrea vieira at January 29, 2005 6:26 PM
"We also need to confront stigmatization of our industry."
I think we have to do everything to avoidstigmatization!
Posted by: Sharlott at August 1, 2005 4:09 AM
Sharlott,
We will break out of stereotypes like "flak" only by concerted effort to improve our image and our reality. Meaning that we are as good as our product. Good example is PR work behind the Dove Real Beauty campaign--we have given it substance and personality at same time. Thanks for writing.
Richard
Posted by: Richard Edelman at August 1, 2005 9:27 AM