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December 11, 2008
Fight the Good Fight
All of us on the PR agency side are anxious about the dire forecasts coming out of the annual UBS conference this week. Advertising spending in the US is expected to decline of 3% in 2008, and up to 6% in 2009. Rather than wring our hands, let’s create business value for clients and win more than our customary share of the 2009 budgets, because PR is best suited to the time. Here is some advice on how to fight against traditional and new competitors.
The most important issue of the day is the precipitous decline in trust in business. The massive government intervention to stabilize financial and industrial concerns has raised new issues of public accountability and fairness. The collapse in the past year of industrial and financial service icons is undermining business’ license to operate. The calls for limits on executive pay and new oversight power for appointed and elected officials as conditions of government bailout funding indicates severe popular disenchantment. This is a classic PR assignment; rebuilding credibility.
There can no longer be separation of corporate reputation and brand. Citizens funding bailouts, investors, employees and regulators now expect ‘mutual social responsibility. Even in a recession, consumers show a preference for brands with social purpose. We need to help clients create a new reality that enables them to make money while addressing broader needs of society. To use a line I coined a few years ago, “You have to be it, you cannot buy it.” This idea of responsible capitalism is central to the business model at Starbucks (disclosure: Edelman client).
We are no longer the tail on the marketing dog. We are now involved in developing strategy by bringing perspectives from non-traditional stakeholders (NGOs) or establishing scientific credentials for brand’s. The traditional advertising-agency controlled marketing model is wearing thin; ads are increasingly ignored or not believed. We uniquely create the runway of credibility for the advertising and digital plane to take off. At a recent meeting, the marketing team at Dannon (disclosure: Edelman client) said our work for Activia yogurt was much more important than advertising in establishing the brand proposition.
We are competing for new areas of client spend. We are in the entertainment business, bringing clients such as Wrigley, together with the TV program The Biggest Loser, as part of program including web, on premise and classic publicity. We are using digital tools for a landmark shareholder fairness “proxy fight” in Japan. We created excitement for a new Dove product collection launched via a partnership with MTV. (disclosure: these three are Edelman clients).
The dispersion of audience and authority makes it incumbent on companies to inform conversations. We are going where the communities meet on their terms, from mainstream media web sites to new influencers operating in niches. Our approach is premised on people opting-in. Butterball (an Edelman client, who in 1981 created one of first national, toll-free consumer help lines),this year engaged by partnering with Bravo’s “Top Chef,” where chef’testants cooked with Butterballs, and enabled people who text the word “TURKEY” from mobile phone to get tips on cooking turkeys. We also maintained a twitter roll, hosted live web chats, engaged with bloggers, then provided how-to videos, new recipes, cooking calculators on butterball.com.
Paul Seaman, in yesterday morning’s Wall Street Journal: Europe, opines “the PR industry has to help business convey its new, blunter message.” He goes on to say that “PR became part of the problem. We were the froth on a frothy time, a party to the trivialization of business…boom-time PR loved the attempt by boom-business to be loved by everyone. But being loved isn’t a successful business strategy.” He uses the Barclay’s Bank rejection of UK Government financing as evidence of “leadership and boldness…the public wants to hear from genuinely knowledgeable and thoughtful businesspeople.” While I disagree with his characterization of CSR and alignment with stakeholders as “double speak and euphemism,” he is right in suggesting that straight talk will work best at this time. If we are entrusted with the primary responsibility for building brands or restoring corporate reputation, we have to show courage and conviction, with content that is accurate and authentic. Let’s fight the good fight because now is our time.
Posted by Edelman at December 11, 2008 1:56 PM |
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Comments
Mr. Edelman:
You write that "straight talk will work best at this time." Are there times when straight talk is not the best policy?
I'll check back here for your answer.
Thank you.
Carla R.
Posted by: CARLA R. at December 11, 2008 9:08 PM
As always, I'm excited to see companies take strides in cultivating and demonstrating the ideal meaning of public relations. At face value, it’s really about asking ourselves “How will we relate to the public?” and then getting down in the trenches, with them, to make it happen. It also seems that some textbook definitions and ideals I've learned about public relations are becoming more of a reality. That ideal entails much of what you speak of Richard -- to simply say it, serving as a strategic planning and management function, being (tactfully) candid, and including the publics we serve in our strategies. It seems we are successfully grasping the role to serve as the ethical conscience ... convincing fellow organizational leaders to do the right thing to get positive returns (of any type for that matter). Anyone who is passionate about public relations should be excited to be in an era of so much change and openness to creativity. I certainly know I am.
Posted by: Mark Taylor II at December 12, 2008 4:52 AM
Carla,
Straight talk is always best, even more so when there are major credibility issues for business.
Thanks for reading,
Richard Edelman
Posted by: Richard Edelman at December 12, 2008 12:32 PM
Richard,
I agree to your philosophy that "straight talk" is always best, especially with regard to today's markets. Obviously AIG has not taken to this philosophy especially with regard to their corporate bonus structure. I believe, even with the average economic recession lasting 13 months, we will see a general mistrust in AIG and their business practices for years to come. What do you believe their best course of action could/should be to change the many negative perceptions of their business model? The next few years are going to be very interesting for AIG executives! Thank you for your response.
Bryan Whitlock
Chief Creative Officer
Emergent PR
Posted by: Bryan Whitlock at December 17, 2008 9:36 AM
Bryan,
Lay out a bonus structure, then explain the rationale. Provide comparables from the industry. Make sure there is clarity on pay for performance.
Thanks for reading,
Richard
Posted by: Richard Edelman at December 18, 2008 5:19 PM