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May 22, 2006

The Edelman Technorati Deal; Why This Matters for Companies.

Although Technorati is best known as the most comprehensive service for searching blogs -- they currently index over 40 million of them -- the company also provides the best analytic tools for tracking over time and in depth what the blogosphere is talking about. Until now, those tools have only been available in English and Japanese. Today, Technorati and Edelman announced that Edelman will have an exclusive right to offer Technorati's analytic tools in Chinese, French, German, Italian and Korean, starting with French in July and continuing into early 2007. That means not only will the user interface be translated into those languages, but the analytic tools themselves will be able to cluster blogs by language.

We think this is important. Here’s why.

First, we believe that every company is or can be a media company (take a bow, Andrew Heyward, until recently president of CBS News, for this line). This requires the companies participating in the conversation, to listen first, then to offer a view, then listen again and modify behavior or product as necessary. The new tools we're offering gives companies world-wide reach for finding that content.

Second, we are convinced of the power of consumer generated content. We need to persuade our clients and companies in general of the benefit of ceding control to the crowd, who in the words of Richard Sambrook of BBC, are "coming out of the stands and are now on the field playing in the game." Mainstream media is increasingly looking to bloggers as a source of story ideas. Having the right tools for seeing the patterns of discussion is essesntial.

Third, we will have the ability to improve our work product; specifically, to make PR people valued contributors to the discussion, not the often-reviled spinmeister or hype artist lampooned in the media. Participation in this world cannot be on the basis of "pitch a story, hope it appears." It will be based on an articulate, visual, factual presentation, with both positives and negatives acknowledged. We have to raise our game and we will..

Fourth, we are certain that this tool will be useful to brand marketers and corporate reputation experts alike. Look at the corporate reputation benefits for Microsoft, GM and Boeing, all three getting praised for new openness as they initiate blogs such as Scobelizer or Randy's Journal. For brands, the blogosphere will be a unique way to solicit expert opinion, to mobilize the base of enthusiasts and to monitor worldwide trends (avian flu if you are KFC). A globalized world needs global tools and analysis.

I would be very interested in your reaction to this initiative.

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Posted by Edelman at May 22, 2006 8:44 AM

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Comments

Great for Edelman! Great for Edelman clients!
How is this great for everyone else? Just curious, honest.

Posted by: Todd Defren at May 22, 2006 10:13 AM


Multilingualism is a divisive issue on the international stage. Currently, it is an impediment to developing a cohesive global Internet governance regime. The advancement of machine translation is an important step, but the tools that Technorati and Edelman are developing seem to address the enigmatic human element of the global exchange.

My wish for this venture, in addition to the strategic benefits you've outlined, is that localized understanding of global conversations becomes the catalyst for increased concern by casual bloggers for the interests of our fellow global citizens -- especially once the tools become public. Personally, something about the blog medium has engaged me in issues to which I previously paid no attention. Better understanding the global conversation can only bolster an international "meeting of the minds." This is very important work Richard, thank you for starting it in the PR fold.

Posted by: Eric Hansen at May 22, 2006 11:25 AM


Rubel reports that Edelman has a deal to "fast-track the development of localized versions of their offering in German, Korean, Italian, French and Chinese." I'm not sure what this means so a couple of questions for Steve:

• Is Edelman paying or funding software development at Technorati? What specifically does fast-track mean? Or to use Peter's words "support"?
• What does "exclusive" mean? Does this mean the only way to get access to pre-beta Technorati in those countries is via Edelman? The success of so many Web2.0 properties - Technorati included - has been predicated on getting not particularly robust products into the market allowing people to participate. Isn't this going to turn a public tool into a proprietary one for a period of time - is it about, at least initially, supporting the growth of the blogosphere for Edelman clients? Why not open it to everyone?

It is great that Edelman is lending its weight to such an important initative. I'm a big fan of Richard and Steve's. But fortunately they aren't the only ones so this does seem to run counter to the notion of "participatory" and open.

While a propriety lock-in to Technorati's international versions is a terrific coup for Edelman - and I am sure is a very profitable commercial relationship for Technorati - doesn't it leave bloggers and other companies as deeply engaged in the blogosphere out in the cold?

Posted by: Andrew Lark at May 22, 2006 11:40 AM


Phew! That was fast! I turn my head for a second after that Syndicate posting, and you're partnering with Technorati...although I'd assume this has been in the works for some time. Still, a very timely union. This is a great global-reach initiative.

First, I'd imagine this is immediate competition for PR Newswire and its subsidiary online monitoring services like eWatch, but hopefully there will be additional recognition and effort from PRN to improve its clients the global distribution and reach that is a priority.

Second, I wonder where Google fits into all this. As the world's #1 search engine, and emerging tech. industry leader replacing Microsoft, Google has made its name on innovation in the digital era even as its grown into a massive operation. But it seems that their services have focused on the individual online consumer, but not organizational. With their online presence increasing on Xinhua - the Chinese gov't-run news service (among other examples)- they obviously have their eye on the global perspective. I wonder if this new partnership will catch their eye. Seems to me it's be a natural development to use its online presence to monitor whats going on in the Blogosphere and beyond and offering it to interested clients, no?

Posted by: Geoff at May 22, 2006 8:45 PM


I think this is excellent. For the first time a PR consultant is buying into and competitively gaining advantage by the use of serious software that offers intelligence. My praise is conditional.

The pity is that Edelman and other major consultants did not develop these capabilities from their own resources and left it to others to show them how.

For 20 years I have been trying to interest press agents, sorry – PR consultants, intelligence tools.

They either do not understand them (most often) or want them free or at silly money prices.

Unlike management and accounting consultancies, the PR tradesmen are a long way from gaining advantage from the digital age.

Are we surprised that the best evaluation tools are used in-house and the really advanced applications of software and analytics are in-house? Is it a big surprise that we only find techniques like visualisation and stakeholder analysis (with real relationship numbers) are used by companies and not consultants?

Is it a wonder of the world that the companies that offer such capabilities are bigger than most consultants?

I hope this trend continues. It elevates practice and offers clients something of real value.

But, you don't get of lightly. Imagine a machine that cuts to the chase and reduces even the most advanced press release tools to the real story. An example is posted to my blog. These capabilities disintermediate PR (and journalists and, well, editors too).

The digital tsunami is bigger than we think.

Posted by: David Phillips at May 23, 2006 2:20 PM


Andy
A few facts ,then our strategy
First, we are paying Technorati to fast track development of these additional language capabilities. These will be rolling out from July through September in a gradual fashion.
Second, this will be open to the entire blogosphere from Jan. 1, no matter whether we got French in July and Korean in September.
Third, we are trying to build a competitive advantage in having proprietary use of the product in those four to six months. But we are also conscious of the beta aspect of the Technorati French or Korean product. This walk before you run approach is familiar from your technology company playbook.
Fourth, we will be trying to figure out whether there is a global approach which encompasses local plus multi-local, to crisis management, brand marketing or corporate reputation.
Fifith, we hear you loud and clear on your view of our taking this proprietary. We will take your opinion seriously.
Thanks for writing.

Posted by: Richard Edelman at May 23, 2006 6:18 PM


Thanks Richard, You are on the right track.

Personally, I think you will gain competitive advantage not from accessing the technology before anyone else but from the smarts you will bring to the analysis and technology. Four months is very little time to buy given the potential perceptual loss in the broader community. While I entirely respect your commercial motivations, I do think Edelman would gain a great deal more perceptually from being associated with driving the openness of Technorati from the get-go. Your motivation to drive the reach of Technorati ( a terrific initiative on your part ) will be ultimately overshaddowed by the restrictions you imposed.

I am really surprised at some of the emails I've got on this issue - how upset some are, how jealous others can be. Either way, you've generated as much a negative undercurrent as a positive one. Something to think about as you figure out how to promote your relationship with technorati going forward.

Good luck and good initative. Hope you got some stock as well!

Best, Andy

Posted by: Andy Lark at May 23, 2006 6:18 PM


The only concern I have Richard is the potential for the manipulation of such data and its analysis. Public opinion doesn't represent fact, it represents opinion and opinion can be manipulated top-down to generate blogs that are favorable or unfavorable from the bottom up.
Not that I would ever believe that a professional public relations firm would ever consider "stuffing the ballot box" but there are unscrupulous louts out there who are not part of PRSA or IABC, rather they go by the initials GOP who have been known to use the resources available to them to generate thousands of letters to Congress on issues. What kind of controls can be put into place to prevent thousands of blogs from being written in support or in opposition to a product. It really isn't that big a jump, is it?
Now, if you could stop the news media from portraying members of our profession as weasels,that would be progress!

Posted by: James Grandone at May 24, 2006 12:26 AM


Technorati is blocked in China. Quite a few blogs are blocked in China. Yet, people are still building blogs out here, breaking those firewalls that prevent free expression. I read in an article that there will be more than 60 million bloggers in China by the end of this year. How will Technorati, a service that caters to bloggers but inaccessible for China bloggers deal with this issue?...


As a US expat currently living and working for Edelman in Shanghai, China, I belive that the Technorati/Edelman deal is a great thing not only for Edelman and Technorati,but great for the reasearch and the "science" of blogging. As a blogger myself, this kind research is needed to keep blogs going.


Blogs over the last two years have changed the way we use the Internet, there is no doubt about that. Blogging is a hobby for your average Joe or Jane, it's a CEO's means of connecting with people on a new product and getting real opinions and critisism. Real people, real opinions, real connections.


But let's bring it back to China and the Chinese language blog.


Think about it, the number of bloggers out here is growing. Even China companies are getting into blogging. 1.3 billion people, that's a lot of potential customers. With a large population that is only getting richer and thinking more technologically, China is going to be the place to be. But there are still limits on blogging in China, particularly with blocked websites... How will Technorati deal?


Making a version of the research in Chinese is great, but people have to be able to see it, especially the most populous nation in the world.

Posted by: Morgan at May 24, 2006 2:34 AM


DP we take a different approach
Adam Smith model--we do what we do well
We are not technology experts
We are smart in a different way
So that is why this JV makes sense
But keep pushing us

Posted by: Richard Edelman at May 30, 2006 4:31 PM


You are right-- blogs may not represent public opinion. But they are an unvarnished view of personal opinion and the best of the blogs do give you a consistent take on the news. Blogs are also key to gaining exposure in mainstream media. Hence our investment in the JV with Technorati. Thanks for writing

Posted by: Richard Edelman at May 30, 2006 4:33 PM


MJ I have no idea but am asking our JV partner Peter to comment

Posted by: Richard Edelman at May 30, 2006 4:34 PM


Richard

As a commentator on the implications of the social Web on disintermediation, Adam Smith is very attractive.

It means there is a case for specialist advisers to extend their influence through relationships with enhanced values. Of all assets, relationships are the most valuable and all others (tangible and intangible) are at risk.
Smith vigorously attacked the antiquated government restrictions which he thought were hindering industrial expansion. Does this include Patents and copyright? I think in the end it does - but not yet.

JV's are therefore good - so far.

Here is the push:- What about one using The Clarity Concept to extend the reach of PR in corporate management? Jon White and I are looking for a partner.

Getting statistics behind the relative significance and change in stakeholder relationships is quite a good bridge between old and new management (the numbers are especially helpful for CFO's at budget time).


David

Posted by: David Philips at May 31, 2006 8:43 AM


yes this JV just may make Technorati and Eldeman become the top dawgs in their vertical segments that is blogSearch and PR :)-

Posted by: /pd at July 13, 2006 7:34 PM


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