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August 2, 2006
Game On
PR Week has it exactly right in its editorial on July 31. Julia Hood and her team have asked, "Can PR keep the ball if ad pros play on its field?" (sub. req'ed).The editorial states, "This could not be a larger watershed moment; the ad industry is trying to out-PR PR." All of the talk at the Nielsen Buzz Metrics conference last week was about relationships, dialogue, learning from the crowd...in short the general proposition offered by public relations.
The advertising industry is facing a stark new reality. The traditional business of buying time and space in mainstream media is not a growth proposition. Why, you ask? Advertising alone is not sufficient to move the market. Note the huge $225 million spend this summer behind the "Dr. Z" campaign for DaimlerChrysler, which yielded a decline of 17% in July sales versus a year ago. According to Ad Age, "consumers were unmoved by the German-engineering positioning or the DaimlerChrysler chairman, whom they overwhelmingly (80%) believed was a fictional character."
The response from ad agencies is to develop their ancillary businesses, from direct marketing to interactive to public relations. The agencies have changed their names (JWT, not J Walter Thompson), boasted about their truly integrated campaigns (the Dove Real Beauty initiative - by the way, Edelman did the PR, not Ogilvy), and even hired chief marketing officers (Saatchi & Saatchi) who are tasked with persuading clients to undertake viral or other non-media based projects.
How can we compete in this environment where ad agencies are crowding our space?
First, explain to clients that PR must lead, advertising should follow. The Daimler campaign is an apt example. If the engineering credentials of Dr. Dieter Zetsche, the company chairman, had been established, the advertising might have succeeded. Note that the Lee Iacocca campaign on which this was premised, utilizing the then Chrysler CEO, had a man who had been lionized as the creator of the Ford Mustang and who had been outspoken on the need for a Federal bail-out for his company (small confession - it worked on me - I bought a Chrysler whose outstanding feature was a reminder that "the door is ajar" which always caused my dates to wonder why they ever accepted my fervent requests that they accompany me for a night on the town). Without the runway of trust established by PR, advertising cannot score in a world lacking trust and deficient in attention span.
Second, diversify our own offering so that it is clear that we are no longer solely in the small, preconceived box of PR as media relations. I am confident that we can offer consulting to the C-suite, viral promotional concepts, entertainment options including product placement, and CSR. We must educate our client leaders to be able to discuss this breadth of issues so that we can see off the advertising agency chief marketing officers who intend to steal our bacon.
Third, we need to innovate and push into areas traditionally owned by advertising. Edelman is working on a product we are calling conversational advertising. The idea is to turn advertising into a dialogue, not a one way street. We would write an op-ed ad at the top of the landing page, offer threaded conversations and the latest blog posts, plus a repository of authoritative web sites. Thus far, we have devised a product that could work for the corporate clients who are facing issues. We are now working on an offering that might appeal to product marketers who want to engage in a conversation.
Fourth, we have to promote ourselves more aggressively as thought leaders while being transparent about our activities. It was gratifying to see Burson-Marsteller included in yesterday's editorial on chief executive tenure in the Wall Street Journal (sub. req'ed). We have to come out from behind the curtain and stop the Wizard of Oz imitation. We should be open about what we are doing and how we are doing it. For instance, the article on the Wal-Mart war room run by our firm was important for the industry.
Fifth, big idea creative. We can own the idea. We will have best chance to do so if idea is rooted in solving social problem or grapples with major issue in society. Example would be Wal-Mart on environment.
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Posted by Edelman at August 2, 2006 8:41 AM
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Comments
Richard,
Did you write this or is it Satire? Are you sincerely advocating MORE self-promotion, MORE disintermediation, and LESS collaboration by pr professionals?
Or, perhaps, is this a Rally-the-Edelman-Troops moment since you weren't invited to the Wal*Mart party at Worldwide Plaza?
The best marketers are the people that learn how to apply strategic approaches to unique problems. The CEO and Board do not care whether their CMO or her advisors come from a "discipline", let alone a "lead discipline".
Leadership also requires discernment, knowing when to follow and when to support other subject matter experts.
I, for one, am thankful to have been taught strategic thinking across multiple disciplines at Ogilvy and not hood-winked at Edelman into complaining that the other guys are stealing MY BACON.
Posted by: Edward O'Meara at August 2, 2006 10:07 AM
Richard,
This is a fantastic post that really encapsualtes the feeling of the PR blogging community. Or at least my personal feeling.
We're all desperate for PR to take the lead and not let another opportunity slip through our fingers.
All the storm fronts are in place - the "web 2.0 revolution"; dissatisfaction with advertising and an increased number of PR grads - for PR to start taking the lead in the marketing process.
Ed
Posted by: Ed Lee at August 2, 2006 10:09 AM
PR people, with rare exception, are not in the C-Suite because we have a history of wearing our insecurity on our sleeves and using strategies such as "accreditation" to achieve self worth. We have done a horrific job managing our own reputation. How can we expect a CEO to believe that we should take the lead in managing theirs?
Clients want strong, self-assured leadership. Do you think they care whether it comes from the ad guy or the PR guy if its smart and will help the business? The landscape is changing rapidly, and if anything, we are better positioned to step up here. Richard's message is right on target, but until we adjust our role as messenger, we're screwed.
Posted by: Leo Bottary at August 2, 2006 4:10 PM
Richard,
Here are a few suggestions to add to your list:
1. Get smarter. At its best, PR offers deep insight into the culture at large and how to influence it. As companies struggle to understand the full impact of emerging media on how people think about and relate to their products, no industry is better positioned than PR to put all the pieces together. It’s also true (albeit a truth of the inconvenient sort) that most agencies and internal PR shops don’t have the right talent to fully leverage this advantage. Traditionally, we’ve hired people with communications or journalism backgrounds. They’re smart all right, and aggressive, and hip to the zeitgeist. They’re not the problem. The problem is all the talent we don’t have. Where are the economists, the cultural anthropologists, the psychologists? Not here. Not now. It’s tough to come up with powerful ideas, integrative ideas, ideas that really are going to move the culture, without powerful and different kinds of thinkers.
2. Get connected. PR pros do a lot of talking, but we’re way behind other disciplines when it comes to talking – and listening – to consumers. One step we’ve taken in my business to address this shortcoming is to merge Interactive Marketing and PR. Not only does this give us the firepower to expand our online offerings, it gives us the ability to target and reach out to consumers directly. It’s even changed the way we think about designing PR. Next week, for example, we’ll hold a real-time interactive session with over 100 consumers in preparation for a new product launch. It won’t be a market research session. We already know what consumers think about the product. The point of this session is to have consumers help us create the PR program for the launch.
3. Get on with it. If PR is dying, we’ve already written its epitaph. It goes something like this: “we’ll do a survey and a press release; partner with a non-profit; and hire (fill in your favorite grade B celebrity here) to do an SMT. Oh, and we’ll build a web site.” For all the talk about the future of PR, the fact is that most agencies come in most of the time with the same old pitch. And there’s a reason for that. Just like AOL’s subscriber model, traditional PR remains a cash cow, even as we count down the days to its inevitable demise. It’s past time to get moving on what’s next.
Posted by: Kosmos at August 2, 2006 6:31 PM
Edward,
I do not write satire. I think that the presumption has been that ad agencies act as coordinators of multiple communications disciplines. I intend to challenge that notion. There are times when PR should lead.
Posted by: Richard Edelman at August 3, 2006 10:09 AM
Press agentry is by no means the only skill on the bench.
Because advertising is a PR tool, it should be on the bench too.
Because PR is involved with values, it has custody of the brand conversation but the CMO can bring on the water.
No one else can play on this field. It is the C Suite.
But they can shout from the terraces.
Posted by: David Phillips at August 3, 2006 12:07 PM
With all of the mergers of PR and ad agencies -- finding any independance is like trying to find the burnt chip in a Lays bag. Few and far between.
After reading the PR Week article, I understand where Richard is coming from --don't necessarily agree -- but I know where he is coming from.
Communications is becoming more and more muddy. Just think of the way we are receiving information today -- and you can only barely see the difference between PR and advertising.
How many of our PR agencies have used a service like NAPS to distribute our mat releases? Isn't that advertising -- guaranteed placement? What are blogs -- certainly not traditional PR by any means -- and probably closer to advertising with a lower price point.
The nexus of PR and advertising is here because the media has already changed. We must be aware and use any means necessary to provide the coverage we can get for our clients.
Posted by: Chris McTague at August 6, 2006 9:47 PM
McTague makes a valid point, one that makes any self-respecting - or self-deprecating, as it may be - PR professional cringe. Paid media such as NAPS or any other horrific service is suffocating our bread and butter, yet we're being forced to play in that field. It's truly scary. And that?s why Richard point is so? poignant. We?ve got to get creative and blur the lines between advertising and PR, while trying to maintain some amount of integrity. Personally, I see one-on-one viral marketing taking over. Yes, it?s true that the cost-per-hit ratio will go up exponentially, but if your messages are ultra-targeted, then your ROI will (read: should) also increase at the same or similar rate.
Posted by: WT at August 8, 2006 5:19 PM
Richard,
Just a point of clarification. When you wrote "(the Dove Real Beauty initiative - by the way, Edelman did the PR, not Ogilvy)" this is not true in Asia. Ogilvy PR won the Dove Campaign for Real Beauty work at the regional level and also won local execution in many markets. I personally worked with Research International in crafting 1,700 pages of new research in Asia, and with a colleague in Hong Kong wrote the new 50-page white paper in Asia as well as created the complete tool kits used by all agencies in Asia--whether Ogilvy PR or not. I do not believe Edelman handled any of the Dove Campaign for Real Beauty work in Asia. This was not a mere copy of the US work pioneered by Ogilvy & Mather and Edelman in the US, but instead a very tribal look contrasting attitudes by country (including traditional rivals), by demographic and by psychographic. Then public debates were created in local markets with sources we tracked down.
I do agree that in 360 Degree Brand Stewardship PR can or should take the lead in many cases. In the Ogilvy approach to the Campaign for Real Beauty in Asia, we assembled a team that came to Bangkok that included the client, PR, advertising, activation, online and direct marketing all around the same table with no one party dominating.
Best regards,
Chris Graves
President & CEO, Asia Pacific
Ogilvy PR
Posted by: Christopher Graves at August 20, 2006 3:46 AM
