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March 28, 2005
Greece, Turkey and Thoughts from Vacation
I have been traveling through Greece and Turkey in the past eight days with my family. Here are a few experiences that might provoke a laugh or nod of recognition.
While walking through Ephesus in Turkey, our guide pointed out what is regarded as one of the first known advertisements. Engraved on a piece of marble is a drawing of a woman’s head, her foot, a heart, a map and tiny coins. This turns out to be an ad for an enterprising prostitute who attests to her looks through her picture and dimutive foot size, suggests that her love is available for a good price and that all who are interested should precede this way. We also learned that there was a secret underground passage between the library and very large public brothel, providing men with the ideal excuse for the afternoon. On the way out of the ancient ruins, merchants posted the sign, "Real Fake Watches," a lot better than you get from the
"Rolex dealers" on the sidewalks of Times Square.
In Olympia and in Delphi, we saw large stadiums that were designed to host quadrennial games. During the period of the athletic contest, all warring city-states were to cease hostilities to enable the competitors to reach the games. On the path to the stadium in Olympia stood 16 statues of Zeus, the father of the gods. Inscribed on the base of each statue were the names of athletes who were found to have cheated during the competitions. This sounds like an appropriate punishment for the baseball players who took steroids to enhance performance in the past few years. Or maybe we could do the same on the doors of the New York Stock Exchange for CEOs and CFOs who have violated their fiduciary responsibilities.
For "keeping up with the Jones" and actually surpassing any of them, the award must go to the Dolmabahce Palace in Istanbul. Constructed in the mid 1800s by the Sultan, this fairy-tale palace features a ballroom with a 10,000 pound chrystal chandelier with 750 light bulbs, multiple Turkish baths and stunning combinations of ceiling painting and tapestry. Huge gifts from all of the other crowned heads of state in Europe dot the palace, including a never-assembled pipe organ from Germany and giant bear skins from Russia, plus large portraits of Queen Victoria and her son, the Prince of Wales. That such a huge expenditure could have been made at a time of economic difficulty for the Ottoman Empire shows the tremendous gulf between the ruling class and the people. This type of behavior was typical, according to our guide. To finance the deficit on construction of the stunning Aya Sofia cathedral in the fifth century A.D., the Emperor Justinian levied a tax on all men with long hair. The Emperor is reported to have walked into the Cathedral on its completion and exclaimed, "Solomon (King of Israel who built the Second Temple in Jerusalem), I have surpassed you."
On a more serious note, Greece is extremely proud of its performance in hosting the Summer Olympics but very disappointed in the slim economic return. In fact, last summer was a disaster for the tourism industry, as most vacationers chose other locations due to security concerns. Many Greeks express real anti-American feelings, which are exacerbated by the war in Iraq but really have their roots in US support for the military junta that overthrew a left-leaning but democratic government in the late 60s. The Turks, by contrast, are extremely pro-American but again the conflict in Iraq is seen by many as having no clear end point. The Turks are very focused on getting into the European Union and becoming a bridge between the EU and Middle East. Even the Turks are affected by the growing power of China—the textile industry here has lost export market chare to Chinese competitors.
Posted by Edelman at 11:24 AM |
Comments
So enjoy your blog. This post would have been great with a few "mobile phone" shots or perhaps a podcast - would have loved to have seen that ad!
Posted by: Toby at April 15, 2005 12:44 AM
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March 14, 2005
Break the Downward Spiral
Sunday's New York Times article, titled, "Under Bush, a New Age of Prepackaged News," is further evidence of our need to break the negative news cycle that is enveloping our industry. From the Armstrong Williams debacle to the new storm on the legality and desirability of video news releases, the PR community has serious challenges. Let's recognize these issues and take actions to reflect our unique position as custodians of the public trust, then communicating our changed policies.
Let me repeat some of the phrases used in the story on Sunday. "Under the Bush Administration, the federal government has used a well-established TOOL of public relations; the pre-packaged, READY-TO-SERVE news report that major corporations have long distributed to TV stations..." It is a world where all participants benefit...Public relations firms secure government contracts worth MILLIONS of dollars..."In three separate opinions in the past year, the Government Accountability Office has held that government-made news segments may even constitute improper covert PROPAGANDA..." An FCC decision in year 2000 states that "Listeners and viewers are entitled to know by whom they are being PERSUADED..." (Note that the capital letters are my own so that you get the full effect of the words being used).
Though Sunday's article did not focus on the PR agency world, be sure that more negative coverage will be coming. Why am I so sure of this? In part, because we have allowed our profession to be increasing defined as complicit in a cover-up, as willing shills who let money overwhelm our judgment and moral compass. We are accused of foisting government propaganda on the American people, in direct violation of the law.
What can be done? Let's start by revealing the size of our US government contracts. We have heard in the media that PR agencies received $250 million in the past four years ($88 million in 2004) from the US Government each year to promote its programs. At Edelman, our fees from the US Government (we have one account, from the US Department of Commerce to promote travel to the US from the UK) are $400,000, out of our global total of $240 million in fees. I understand from another top-ten firm that they only have 3% of its fees from Government contracts. So a useful first step toward transparency is to end the mystery of size of fees by having each firm reveal total spending by US Government-related accounts.
Second, we should initiate a more stringent set of rules that would govern our behavior on government accounts. We already have a much more onerous paperwork requirement on accounting that is intended to safeguard the public's money. Why not allow the former reporter who is engaged to interview the US Government official to ask a few difficult questions as part of the process of filming the video news release (VNR)? How about identifying the former reporter as such, or including a note to viewers on-screen that the VNR came from the US Government?
Third, we should commit to providing full disclosure on exactly what we for Government contracts.
It is possible that this level of transparency will make it less attractive to the US Government to hire PR agencies. So be it. We cannot allow the impression that we are an outsourcing mechanism that allows freedom from oversight. We are in fact a highly reputable profession that risks its reputation by inaction.
Posted by Edelman at 9:55 AM |
Comments
The central message I distilled from the piece in the "Times" was something a little different from what you have posted. I read the piece as a basic questioning of the validity of Video News Releases (VNRs) as a proper medium for government communication. I agree with your suggestions that greater transparency, heightened accounting measures, and better notice of government-sponsored messages will help limit what seems to be the impending attack on PR agencies. I thought, however, that there was a more important question raised by the story: should the government be involved (or hire people on its behalf) in producing the news?
I would like to hear your defense of VNRs as a legitimate PR method for government clients. VNRs for product releases and corporate communications seem to be one matter, but for government messages seem to cross into dirty-word territory ("propaganda"). I do not think that real "independent journalism" would lessen the role of PR professionals. PR agencies working for the government can still meet their client's needs by presenting the best arguments and facts to independent reporters. The examples of VNR-abuse outlined in the "Times" were particularly egregious: reporters at local stations re-reading government copy to imply originality, local stations hacking off the VNR reporters' correct titles, and VNRs loaded with gushy, value-laden rhetoric.
The long and short of it is that when the pubDriver has not implemented the disconnect_all method. at C:/Perl/site/lib/DBI.pm line 565
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lic learns, as they did in Sunday's paper, that the government's message and their news outlet's messageDriver has not implemented the disconnect_all method. at C:/Perl/site/lib/DBI.pm line 565
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is remarkably intertwined, they are bound to be suspicious of both. I think that the PR community should be less concerned with ensuring transparent accounting practices for government clients, and more worried about the appearance that PR agencies are delivering their local news broadcast on behalf of the government. On February 28, you wrote that the 2005 Edelman Trust Barometer reflected a "lack of trust in traditional figures of authority and institutions, such as business, government and the media." The perception that PR agencies direct media content for the government (whatever its relationship to reality) will surely lead to similar barometric findings in 2006.
Posted by: Michael Hissam at March 15, 2005 1:24 AM
Your ruminations strike a chord. You probably noticed that by the end of the day (yesterday), the White House had thoroughly endorsed "video press releases," thus blowing off the GAO recommendation to stop them.
Some of the transparency you'd like for your industry can be obtained from bureaucratic sources, with some difficulty. There is a public data base in the General Services Administration called the Federal Procurement Data System-NG, which allows queries by type of service and vendor. It is truly difficult to query, but it should have, under the right "product-service code" all or most all PR contracts above $25K for recent federal fiscal years.
Also,you can request the formal descriptions ("statements of work") from PR firms' federal contracts via a Freedom of Information Act requests, agency by agency.
Your Washington staff will probably know how to query the database and make the FOIA requests. With some sweat and time, that should put some of the facts you seek on the table.
My newsletter, Government Services Insider, at www.gsinsider.com, addresses the management challenges of federally oriented professional services. What you sense in the PR sector is gaining amplitude in the broad swath of my readership in IT services and consulting.
Scrutiny from all stakeholders, including customers, is rising, with a heavy dose of accelerant (a fire marshal's term) from the informed and (my favorite) the uninformed press. The trade press in government services is frequently viewed by many as intimately involved in collaborating with the firms it covers--in various conferences, other marketing ventures, and, of course, advertising.
Favorable and unfavorable scrutiny from customers, the Administration, Congress, interest groups, and the media, such as it is, should be "good" for yoDriver has not implemented the disconnect_all method. at C:/Perl/site/lib/DBI.pm line 565
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ur business. The federal government services firms are going to need a lot more of what you know how to do.
Posted by: Michael Lent at March 15, 2005 5:18 PM
In my post dated March 14, 2005 titled "Break the Downward Spiral," I incorrectly stated the "U.S. Government spent $250 million each year" where in fact the "U.S. Government spent $250 million in the past four years ($88 million in 2004) according to the House Democrate report released in January 2005. Thanks to Kevin Kevin McCauley of O'Dwyers for the correction.
Posted by: Richard Edelman at March 17, 2005 1:11 PM
Michael,
If PR by agencies for US Government departments is in any way seen as a stealth operation then we are in real trouble. We cannot be viewed as facilitating propaganda campaigns. We need to offer complete transparency on motive, funder and budget. Once those items are on the record, we can get to the substance of the program. Thanks for writing.
Richard
Posted by: Richard at March 17, 2005 4:06 PM
Michael,
I take your point.
I believe that VNRs are a valid mechanism, even for the US Government Why One, they provide news that would otherwise not be covered in local market due to budget restrictions Second, they are viewed in advance by local news producers who make judgment on whether or not to use on air (so in fact like pitching local newspaper)
What needs to change--I think the content of VNR for government should be more balanced, with some questions that are not softballs. Further, there should be an on screen "crawl" at the bottom that acknowledges at the beginning and end of the VNR, viewable by consumer of news, that this is a piece produced by Government.
Posted by: Richard Edelman at March 17, 2005 4:08 PM
Richard,
Thank you for sharing the numbers of Edelman contracts and not be afraid of hiding the reality behind the mask of independence. We, as an agency, can redefine PR industry as a transparent service with clear deliverables. The glamourous image of 20th century PR evaporates with the new means of communication. I appreciate that you use these new forces instead of running away from them.
Thank you,
Arseny Tseytlin
Posted by: Arseny Tseytlin at March 19, 2005 1:51 AM
Transparency only makes the problem visible. The fact that MY tax dollars are being spent on propaganda designed to get me onboard a train I loathe is sickening.
Posted by: Liz at March 19, 2005 10:43 AM
This post offers good advice for the industry. Thanks.
Posted by: Scott Baradell at April 4, 2005 3:21 PM
Scott,
It will only work if we all commit to high ethical standard and are unafraid to talk about our work Thanks for writing
Posted by: Richard Edelman at April 6, 2005 12:29 PM
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March 5, 2005
The future -- social computing ?
I had an opportunity to visit on the phone with Chris Charron of Forrester Research. We were discussing the opportunity for public relations in a world of blogs, fragmentation of the media business and lack of trust in institutions. He put forward the concept of Social Computing, in which consumers take signals from their peers. Trust is established by dialogue, intelligent up-selling and respect for consumers' personal information. He posits that in a world where consumers can switch easily among brands, the key source of competitive advantage is ease of experience, not simply features or price points. He suggests further that every consumer touch point, from relevant customer service to relevant and intelligent marketing is critical to successful positioning.
I asked him specifically about my notion of consumers co-creating brands with their corporate owners, with input to product development and shared responsibility for success. He thought this was absolutely right. Companies need to get over their fear of lack of control, to tap into the consumer passion and thereby drive the marketing process. The early advisory to the connectors, the brand loyalists who can drive the brand forward, will allow them to spread the word in a credible fashion. This is especially useful in a crisis scenario, where traditional third parties such as academics and doctors, can be supplemented by average people who use the product. Note the power of the testimony of VIOXX users at last week's FDA hearings on the safety of arthritis medications (I want my VIOXX back, was the common refrain).
One other fundamental change in a world of social computing--a shift in emphasis in the marketing cycle from spending on awareness to spending on establishing preference. Chris believes that the more measurable forms of marketing will win. This certainly puts the onus on the PR industry to come up with less expensive, more rapid forms of feedback than the customary column inches or advertising equivalent measures. Perhaps we can focus on the catalysts, those who are the drivers in a given category, as an early detection system, a proxy for broader public opinion.
Two other learnings from the past week that are significant are those in the PR field. Verizon Wirelss and Telnor of Norwary are developing a broadband wireless service called V Cast. For a subscription fee of $16 per month, users can receive localized programming such as traffic and weather on cell phones. Fox is already developing content similar to the soap opera the O.C. to appeal to the teen audience. Fifty segments are being filmed of the Sunset Hotel, a scripted show. Another initiative under development for the small screen is Amush Makeover, one minute vignettes that include grooming tips. We should aggressive in developing creative concepts, particularly to reach the teen audience.
One other is the progress of Eink, an electronic newspaper that comes out of the MIT Media Lab. The device will be foldable, black and white particles on an electronic display. Is this simply a cost saving device for newspapers, with no delivery, printing or paper costs. It is also updated wireless like a portable wire service. The first devise, which I saw today, was just launched in Japan and will be coming to the U.S. shortly. I would argue that it is also a wonderful bridge for those of us addicted to carrying a paper in a continuously updated format. It will also be a more attractive advertising vehicle than the PC delivery of the interactive edition.
In short continuous learning and experimentation is necessary in the PR business. We cannot sit still and allow ourselves to be painted into the corner. As traditional outlets of newspapers and television morph into next generation vehicles, we should be leading our clients, not waiting for the advertising guys to offer sponsored content. The more free-wheeling the discussion, the higher the level of trust--the future is ours to build. I look forward to your thoughts about the future direction of PR.
Richard
Posted by Edelman at 9:01 AM |
Comments
You hit the nail on the head with your comment about companies needing to get over their fear of lack of control. PR agencies need to get over that fear as well.
There's much more to be gained by entering into a dialogue than trying to control something - the brand, the message, whatever - that really can't be controlled.
Posted by: David Parmet at March 5, 2005 10:16 AM
David,
This control issue is a difficult one for companies and PR firms Note how few PR firms are really teaching their employees about cyberworld Seems like most just know how to pitch the NY Times which is good but not sufficient Thanks for writing
Posted by: Richard Edelman at March 7, 2005 3:43 PM