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July 30, 2009
The New Stakeholder Society
The Huffington Post published this post by me this morning:
You can read the full post here.
Posted by Edelman at 11:05 AM |
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| TrackBackJuly 27, 2009
Huffington Post; Taking the Next Step
Five years ago, Arianna Huffington and former PR executive Ken Lerer founded Huffington Post to cover the intersection of politics, business and popular culture. I had lunch on Friday with Eric Hippeau, chief executive officer of the site and a partner at Softbank Capital in the U.S. Eric is returning to his journalistic roots; those of you in technology may recall that he ran Ziff-Davis while it was owned by the Ziff family in the early 90s. It was later sold to Softbank and then went public. Here are some of Eric’s musings:
1) Reporting has a different connotation at Huffington Post. “We expose our community to the best of what’s going on. Our content is what attracts the 20 million unique visitors a month. But what keeps our community coming back is engagement. We get 1.5 million comments per month. People jump onto stories and participate in the debate.”
2) There are 40 people in editorial at the Huffington Post; some of them are reporters, the rest are editors. “We have a unique ability to keep a story going when even mainstream media is silenced. Consider Iran, where after the election, the mainstream media reporters were kicked out of the country. But our citizen contributors communicated with us via Twitter and Facebook and cell phones, allowing Huffington Post to keep the story alive for eight days.” Reporters are also responsive to the “vox populi” by amending story leads or headlines based on feedback from the community.
3) Brands have a big role to play in the future of the site. “Marketing executives need to stop thinking about product campaigns. The question is what is your brand presence? Consumers are considering your brand at all possible times. And corporate reputation has a major influence on brands.”
4) HuffPost is considering some form of social network that allows continuous connection among your public and private conversations. The idea is a network that can be both personal and outward facing. “We see our community as being in the middle of the site, with content on the outside.”
5) Bloggers supply much of the content for the site. “We publish over 200 posts per day. Our community wants to hear from those who are in charge, from government leaders to CEOs. The style should be stream of consciousness with a point of view, not like traditional journalism.”
6) The business model depends on advertising. “I do not see us ever charging for content. We are a particularly efficient ad buy in the influencer category.”
Those of us at Edelman consider the Huffington Post a viable first option for clients. We placed an op-ed piece written by Howard Schultz of Starbucks on the one year anniversary of his return to the CEO position at the company. It generated significant discussion in the community, then later in mainstream media. I am fascinated by the notion that the debate is as important as the reporting and subsequent story. We are truly living in a world of expression.
Posted by Edelman at 5:58 PM |
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| TrackBackJuly 22, 2009
AOL—Dominating Niches, Keeping Consumers Engaged
I spoke with Jeff Levick, President, Global Advertising and Strategy for AOL, this morning. I wanted his view on how the new strategy for AOL would affect PR people and their clients. Levick told me that one reason he left Google for AOL because “there is an opportunity to start sites in niche areas of content where there are small numbers of quality players, then move the AOL traffic to get to #1 or #2 position in category within weeks of launch.” This will allow audience aggregation for marketers as advertisers, but also a compelling destination for PR folks hoping to attract “consumers who understand needs of other consumers. We want to be the largest single source of premium content on the web. Today, we already have more than 70+ individual sites already operating under our roof.” Here are highlights of my conversation with Levick:
1) Top brands in category—Among the leaders under the AOL banner are Engadget, BlackVoices.com, TMZ, Asylum.com, Spinner, Moviefone.
2) Cross-marketing—Editors of these sites are increasingly visible on other media (example is editor of Engadget on Jimmy Fallon show last month) as a way to extend the brands.
3) Full environment—AOL research indicates that consumers visiting one site are now becoming part of a community who go from one AOL property to another.
4) Open loop—AOL may be the content originator and owner but takes in feeds from other media or consumer generated content so that it can offer a depth of content unmatched by competitors.
5) New brands—The speed of new brand development and acceptance is stunning. PoliticsDaily.com, focusing on the daily scrum in Washington DC, has already overtaken Politico.com in unique visitors within seven weeks of launch.
6) Vox Populi—The brand, WalletPop.com, is a financial site offering consumer information on how to spend or save money. It does not compete with Yahoo Finance on stock quotes or market insight.
7) Top-class journalists—There will be small numbers of full time reporters at each site. “We need excellent journalism to make the claim of premium content on the web.”
8) Sponsor Ideas—AOL is open to sponsored content. One of the 70+ sites, Paw.nation.com, grew out of a promotion with a pet food company. “We do have real interest in custom solutions for marketers.”
The AOL strategy is different in conception because it understands the power of top-class journalism to establish brands. It is true that aggregation of audience is important but users only remain loyal to content providers who are consistently offering insight and innovation. PR folks will have to include the AOL sites in their media plans to do a complete job for clients.
Posted by Edelman at 3:53 PM |
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| TrackBackJuly 16, 2009
Insights from Baby Center.com -- Dominating a Vertical Market
I spoke late last week with Tina Sharkey, editor of Baby Center.com (Edelman client) to understand the business strategy of this very successful parenting website. Launched 11 years ago, BabyCenter.com now has 16 million unique users per month (half in the US), operates in 19 countries and reaches up to 90% of expectant mothers in the UK, Canada, Australia and the US. The brand has achieved a leadership position in 15 of the 19 markets in which it operates. Though owned by Johnson & Johnson (Edelman client), the site has independent editorial, no J&J branding and accepts advertising from more than 200 different companies. Here are key points from my discussion with Sharkey:
1) The editorial team consists of 19 editors (one for each market), six reporters in the main office in San Francisco, a global cadre of freelance writers and a medical advisory board. Stories should be proposed to the editorial team, who produce new material and keep evergreen content up-to-date.
2) Parents create their own content through the brand’s social platform, which rates #1, ahead of Café Mom. In fact, one part of the social platform, the Birth Club, matches up moms based on due dates of babies, and then allows them to raise their kids together even though they live far apart, by allowing for exchange of views.
3) A media property must vary its delivery modality by market. In India, with only 3.5% Internet penetration but 50% mobile usage, the BabyCenter content is delivered largely by cell phone. By contrast, in the West, the PC is the primary user vehicle.
4) The company is considering its own video channel. It rejected mass reach TV shows as insufficiently “stage sensitive,” as users want content relevant to the age of their children, from new born to teen. There will be a books division, with publisher BK. But the e-commerce business proved a dead end, given tough competition from multi-channel retailers and Amazon.
5) PR firms or ad agencies can suggest sponsored content, such as the ovulation calculator from First Response (a client) or special reports on moms and money with Charles Schwab (a client).
6) The brand is omni-present, “everywhere moms go for information. We promote our content on Twitter. We have a fan page on Facebook. You can subscribe to our personalized newsletter based on the age of your child, which will appear in your PC’s inbox or on your mobile device.”
7) The search function on BabyCenter, “enables us to be the leading insight engine on parenting."
The development of BabyCenter.com is proof positive of former CBS News president Andrew Heyward’s observation that every company is a media company. Corporations have deep knowledge of specific markets that can be shared with the community. In order to be credible, these entities must recruit editors such as Ms. Sharkey, who bring editorial integrity and a nose for news to the job. For PR companies, this development constitutes an important opportunity to develop an entirely new means of delivering content to stakeholders, whether through our traditional role in pitching stories to journalists, creating sponsored promotions that add value to the site; or supporting clients’ efforts to create their own media engagement channels.
Posted by Edelman at 10:39 AM |
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| TrackBackJuly 7, 2009
PR Profiling
The Sunday New York Times article on public relations, titled “Spinning the Web; PR in Silicon Valley,” reinforces every stereotype about our industry and undermines our ability to make the case for our role as a serious advisor on both policy and communications. This story of a charming and immaculately connected publicist (disclosure: a former Zeno employee, a subsidiary of Daniel J. Edelman, Inc.) could just as easily been written in the late 90s dot-com boom, when technology PR boutiques were claiming to navigate the eco-system of venture capitalists, investment bankers, customers and media. This self-inflicted wound leads me to compile a few of the myths of the PR Profile, a more nuanced form of ethnic profiling:
First myth: the best PR campaigns are done without media of all sorts (omitting tech bloggers, tech journalists at mainstream media), in favor of discussions with influential people who will carry the day on Twitter or Facebook. The fact is smart PR people work at the intersection of social and mainstream media to create a continuing engagement with stakeholders—customers, employees, investors, regulators. An example is our firm’s work supporting GE’s efforts (healthymagination) to increase access to, and decrease the cost of, healthcare in the US.
Second myth: the job is all about relationships, with reporters, investors and celebrities. Not all of us look good, nor do we specialize in name-dropping. We forge connections through substance, not show, as a reliable partner to media and to opinion formers, as well as the public at large. For instance, we are helping Brita (client) encourage thousands of people to reduce their bottled water waste.
Third myth: we are now beyond PR and media relations, “we’re connecting people at the highest level, getting deals done.” I heard the same from a senior financial relations executive in the UK recently, who said he was adding more value than the investment bankers on deals. This overstatement leads to reactions such as Mike Arrington’s blast, “Smile, Dial, Name Drop, Pray,” in TechCrunch. PR people should allow others to take the credit, because we are consultants, not the decision makers.
Fourth myth: it is a distinct advantage to be an attractive female in PR. “That prejudice is something we all suffer through. When smart women interact with smart men, there is always a dynamic there,” said the publicist. Professional women in our industry should take particular umbrage at this conflation of PR with Soho night life.
Fifth myth: We do what the client asks, based on “gut” feel at the moment. In fact, the best PR programs are based on listening to the community, whether it’s public opinion research or on-line audits. We do not discriminate against reporters or bloggers because they are too tough; that’s what makes it PR, not advertising.
When I came into this business 32 years ago, my worst nightmare was to be presented as an empty-headed flack touting products without understanding, paid to drink with reporters in order to generate hits in the press. There are thousands of PR practitioners who work in an ethical and intelligent manner. This article missed the opportunity to present public relations as a vital profession at a time when reader attention is dispersed among media and ideas bubble up from the bottom.
Posted by Edelman at 10:27 AM |
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Come on, it´s not that bad. It´s not an article on PR but a funny read on people (mainly one lady) doing PR, bit of gossip, some clichés, we all know these people. It might not be the best PR for PR but still no reason to try to deconstruct alleged PR myths. Journalists and readers should be intelligent enough to read between the lines.
Posted by: Sascha Stoltenow at July 7, 2009 12:43 PM
Hi Richard, nice to be commenting on your blog again.
You know I respect you and your firm's work greatly; I'm still a big Edelman fan. But something about this article and the response has compelled me to defend it. I hope it doesn't cost me any friends.
I saw the article as a "hero" piece that chronicled a unique individual (and the article mentioned how she is unique in her operation/stature) whose approach has changed along with the times in order to get results for her client.
The mini case study at the end demonstrated how to include various forms of media (including traditional + tech bloggers), through an initial targeted online outreach.
Myth 2 surprised me because of how strongly Edelman promotes the importance of relationships (I still a copy of a publication called "RelationSHIPS" by Edelman) and seems to me that this is a semantics argument. The fact that the relationships in the article were more in the name-dropping realm does not preclude other sorts, like the ones you mentioned, from being essential to good PR practice.
Myth 5: I was upset by how quickly she flip-flopped on a client's whim, but we've all experienced those moments when the client feels strongly about something and having to pick our battles for the successful execution of the campaign. Again, I didn't see this having a negative impact if the details of the mini-case study at the end were true.
Lastly, I want to underscore how much I dislike the "empty-headed flack" mythology -- I still remember your post about finally having the PR professional as hero in the movie Fun with Dick and Jane -- but it's a reality that the publicity/promotions side of the industry is perpetuated by "characters" such as the one in the article.
I hope I have offered some food for thought. Again, I share your ideals for the industry and how it should present itself. I can't fault the MSM for latching onto fodder such as it did in this case.
Best,
Eric
Posted by: Eric Hansen at July 7, 2009 1:34 PM
Well said (as usual) Richard! PR strategy never goes out of style and "intelligent and ethical" communication strategists will always have a key role in business. We are indeed strategic consultants. Companies hire us the same way they hire lawyers or financiers and generally we have to know company operations as well as (sometimes better than) senior management. The Sidney Falcone stereotype of this biz needs to die.
Posted by: Dan Wool at July 7, 2009 1:35 PM
Love it. Thank you for speaking plainly and simply about something that has clearly riled the entire PR industry up.
You also didn't bash the person involved with the story (so kudos). Great to hear an agency side perspective.
Posted by: Stuart at July 7, 2009 1:43 PM
Thank you for your thoughtful response. I'm going to share it with the students in my public relations ethics and corporate social responsibility class. And thank you particularly for your fourth myth...it's so important that young people entering this field understand that it's a profession where substance and intellect rein over charm and connections.
Posted by: Mary Ann Ferguson at July 7, 2009 1:45 PM
Regarding the second myth: that "the job is all about relationships, with reporters, investors and celebrities." Wouldn't that be easy?
In fact, most 21st-century public relations success centers on providing value for editors, readers, investors, industry influentials, and other audiences... not currying on favors to get press or make a point in the public sphere. This means PR practicioners always need to have something relevant, important, interesting, and new to communicate. It would be easier to share martinis with an editor, sure, but today's ferocious climate values PR pros with business intelligence over dinosaurs reliant on their social graces.
Posted by: Michelle van Schouwen at July 7, 2009 1:53 PM
Thank you for restoring order to our universe. Well said.
Posted by: Glenn Rossman at July 7, 2009 2:21 PM
Thank you for this post - now I can comment rather than write one of my own.
Ms Hammerling's view of what constitutes public relations - and of how to be a consultant and develop a strategy - has probably set the profession back 50 years (and we were behind the eightball to begin with in terms of our own industry's image). Her continued promulgation of the myth that media relations - whether it's media relations 1.0 or media relations 2.0 - is about relationships rather than about facilitating the transmission of information - and about having some actual content that is, in fact, news - leads to so many other myths, chief of which is that if a PR person can 'plant' a story they can also 'kill' one.
I question many of the statements attributed to her in the NY Times piece - especially the one about PR firms returning cheques from potential Silicon Valley start-ups because they just couldn't handle the business during the dotcom boom. The high tech sector in the 90s was quick to realize the value of PR - but notoriously demanding in terms of results and famously tight when it came to budgets.
If you hire an order taker rather than a true consultant, you might just as well do your own PR. I shudder to think how Ms Hemmerling would handle a community and stakeholder consultation or deal with any kind of issue that needed to be managed. Her idea of how to conduct one of those would probably be martinis with the mayor, after which she'd blithely swan off, assuring the client that the mayor was paid to communicate with constituents, not her.
But I think the worst thing about her approach is that she sees herself as integral to the 'story' when in fact it's not about her in any way, shape or form. This kind of delusion of grandeur happens to folks who work in the film business too - they forget that just because they apply makeup to movie stars, they aren't stars themselves.
To say that her 'strategy' (which was actually not a strategy at all) has done her client a disservice is putting it mildly. She seems incapable of understanding - much less explaining - what the value of her latest client's offering actually is (and I say that having reviewed the company's web site, not just based on the NY Times article). But then I'm probably the old-fashioned one: I'd rather write a media release or a backgrounder that will get global media coverage than have a two-martini lunch with a single journalist or blogger.
Posted by: Ruth Seeley at July 7, 2009 2:55 PM
Too bad you didn't have the guts to comment in the actual article when they gave you the chance!
Posted by: JohnnySimpson at July 7, 2009 6:39 PM
The article doesn't say the things you point out are unimportant (I wouldn't assume that simply because it doesn't read from your PR manual of 'we do strategy' doesn't mean it's not important). What it does chronicle is how one person actually excutes strategy, which is far more valuable to paying customers than thinking ivory tower thoughts.
Looks like you lost a valuable employee in Ms. Hammerling.
Posted by: John Conley at July 7, 2009 7:09 PM
In addition to perpetuating stereotypes of your industry, I thought that article peddled an outdated, stereotype-ridden view of Silicon Valley. If it had been a short, cute snippet it would have been one thing, but it was the lead article in the Business section, breaking to a full page inside.
Really poor judgment on the part of the NYT.
Posted by: Lance Knobel at July 7, 2009 7:19 PM
I love it too. Don't know if order has been restored. But this debating is a great example of influence and power of the web on what I call collective learning. Opinions seem contradictory, there's just too much to digest if you follow many opinions on the web. Where is the truth? With social media seems to be many truths.
Posted by: Lydia at July 7, 2009 7:54 PM
As happy as I was to see the article initially appear in the NYT, I felt rather empty after reading it. Soon I realized that was because there wasn't anything there of much value other than shining a big media light on what I consider an important topic: the significant change in the way we do business today and our underlying need to adapt. The real value of the NYT piece for me was reading between the lines, as it were, and performing my own personal analysis as to why the subject did what she did, or felt compelled to do so. I seriously wondered (and perhaps still do) if this was actually meant to be a parody of how business is done in Silicon Valley and in doing so explain to those in the rest of the world why California is in such a financial mess. I simply can't believe the time and effort and space that the NYT put into the story. It's pretty easy to take shots and there is no shortage of targets as Richard notes in hitting most of them. Interestingly enough, a much better analysis and more professional study has surfaced on this subject in the last 24 hours, the white paper entitled "The Coming Change in Social Media Business Applications" by Josh Gordon available at http://is.gd/1qgHs ... which I am more than happy to recommend.
Posted by: Kevin Wooodward at July 7, 2009 7:58 PM
What a weirdly thin-skinned blog post. Richard, I always thought you were much savvier than that.
Sorry that it's so hard for you to see an ex-Edelman person get a good article written about her and her work.
Posted by: A High Tech Exec at July 7, 2009 8:00 PM
Seems to me she generated a ton of online coverage with this media hit, intentional or not. Bet traffic to her client's site is way up. The public doesn't care if a post is positive or negative. They'll click on the link to her client's web site, and if the service seems useful, they'll use it, despite what anyone says about the PR strategy behind it. In fact, a negative post is more likely to garner eyeballs and, as a result, drive more curious surfers to her client's site.
Posted by: RBL at July 7, 2009 8:21 PM
Richard,
Stakeholder relations may be a more relevant term than public relations, as it encompasses a more systemic worldview and communicates the importance of influencing interact among stakeholders.
Posted by: Hugh Campbell at July 7, 2009 9:36 PM
The biggest myth that the article perpetuates is that PR is publicity and buzz. It's so, so, so, so much more than that.
That said, I admire the hard work of Ms. Hemmerling. She is building a brand for herself, and as this blog post notes, with today's fragmented media landscape, it's important to be able to incorporate social media influencers into the PR plan.
As for the name dropping, the articles makes clear that she doesn't just drop names, she delivers them. If you've got relationships with business, entertainment and political influencers that can help your client directly, of course you should be using them! Isn't that far more effective than having those same influencers read about your client in the paper? What am I missing?
The PR as rock star approach has problems, for sure. Most importantly, it's not scalable and can't be replicated across a massive agency. Unless Ms. Hemmerling is going to start selling t-shirts and licensing her image for lunchboxes and mousepads, she's going to have to keep up the travel, long hours, and high profile.
If she hires a rock star herself, history is bound to repeat itself and her protege will go out and gig on her own. It's another conundrum of the industry that the NY Times piece touched upon.
What I felt was missing were the numbers. Why a business profile with no information on the business model? Rates? Revenues? That's also another area where the piece went soft.
Posted by: Julie Wright at July 8, 2009 7:56 AM
I completely agree. I read the NY Times article and was pretty dismayed. Relationships are key, but intelligence, strategic thinking, creativity and concise writing skills are the elements of a competent p.r. pro. Great rebuff!
Posted by: Erica Cottrill at July 8, 2009 8:28 AM
Enjoyed this post. Couldn't agree more. Time for the PR industry to overhaul/reposition itself but not clear who is going to lead the charge.
Posted by: Martha at July 8, 2009 10:06 AM
Richard, your comments are excellent and reflect many of the same thoughts I had when I read the Times article. I was most disturbed at the portrayal in the article of the PR "counselor's" failure to advise her client and willingness to make a 180-degree turn to do whatever the client wanted rather than stand up for her own suggestion and explain why it was a better course of action.
The woman the journalist followed in the Times article was certainly not a fair portrayal of our profession. The article shows the typical cynicism about PR expressed by many journalists. It's ironic that large numbers of the same people who have made a sport of ridiculing our profession over the years are now eager to jump the fence and are looking for jobs in PR.
Posted by: Lucy Siegel at July 8, 2009 10:13 AM
"PR people should allow others to take the credit ..."
"But I think the worst thing about her approach is that she sees herself as integral to the 'story' when in fact it's not about her in any way, shape or form. This kind of delusion of grandeur ..."
I just wanted to highlight those two points made by Mr. Edelman and Ms. Seeley. Not anywhere in this and many other posts regarding the story do I see the name of her client.
Posted by: Brian Russell at July 8, 2009 10:21 AM
We're a strictly industrial agency with a decidedly different mission than you folks on the consumer or even the misnamed B2B side.
That said, we're a Chicago agency and I've long admired the Edelman brand. Have had many friends there.
Because of the technical nature of what we promote, it's vital that we have a cursory understanding of it, when we speak with media of any type. This has been a challenge for one Old English major for 35 years now!
Mr. E's right to cite the myths and the recurrent trend I've seen over my years to conquer, capture, then abandon the "new paradigm" has always amused us.
Good PR, especially in our world, is the result of hard work, net work and often the dirty work of entering the world of our clients' customers, rolling up our sleeves and getting intimate with the product, the technology, the applications of same and the results derived therefrom BEFORE we draft the first release.
That said, I do still subscribe to the Trumpism that all PR is good PR, for reasons I'll leave to another post.
Let's keep talking, kids...
Tim Daro
President
Bernard & Company
A full-service, strictly industrial ad/PR agency (yes, Virginia, you CAN do them both successfully; we're 34 years of living, thriving proof!)
Posted by: Tim Daro at July 8, 2009 10:43 AM
Richard, Posts like this make me quite proud to point to my years at Edelman. Thanks for your continued efforts to educate.
Posted by: Starr McCaffery at July 8, 2009 10:49 AM
Richard,
Spot on. I have shared your column with my team. Inasmuch as we embrace social media in this office - as well as the role of influencers - our best work is done by partnering, consulting, and listening to our clients, let alone getting coherent press materials out to our media colleagues in a timely manner.
Best,
Steve
Posted by: Steve Haweeli at July 8, 2009 10:59 AM
One of the things that bugs me about PR is that our luminaries take it so damn seriously.
Posted by: Daniel Durazo at July 8, 2009 12:55 PM
Disagree with your proposition. It is not about being thin-skinned. I believe I made important points about how PR should be done.
Posted by: Richard Edelman at July 8, 2009 1:19 PM
Great points in response but all a bit too serious. This from a city whose best known "PR person" to the rest of the world is Samantha Jones from Sex And The City? If the NYT subject is making a coin with her version of events, good for her. I'm just glad it's not my job description ...
Posted by: Jason at July 8, 2009 5:09 PM
Great post, Richard. One additional thought: many people in Silicon Valley and in the social media space believe PR is one-dimensional: they define it as media relations. PR is not a “one-hit wonder”. It does not stand for “press release”. We build brands, enhance and protect the reputation of our clients and are here to stay.
To use a music analogy, we are the Bruce Springsteen of the communications world. Not Right Said Fred.
Posted by: Luca Penati at July 8, 2009 7:36 PM
My objection to the NYT article had to do with its portrayal of PR professionals as name-dropping, conference-hopping party girls, starting with the publication's decision to photograph both subjects at parties. Of course, the subjects had to agree to this, which seems at odds with a desire to be taken seriously as professionals and does little to debunk stereotypes.
Posted by: Marivi at July 8, 2009 8:47 PM
Richard,
Right on. This article sickened me. First, it reminded me of dot com boom articles. Just sub in Pam Alexander's name for Brooke's and a few late 1990's dot coms for Wordnik, et al. and you have the same article. How old is this reporter? Was she not alive in 1999? Second, I sincerely hope that Brooke's clients did not pay for her work on this article. I read it wondering if it transpired as the result of some kind of back door way in for a mention for her clients while simultaneously garnering quite a lot of promotion for Brooke. Obviously, she is a bright, fabulous woman, but really...if she wants glam, maybe she should go to LA and be a real publicist -- work with A-list celebs, not geeky start-ups. Just a thought.
Posted by: Margaret at July 8, 2009 11:16 PM
Richard,
You are right on target. I was disappointed in the NYT business section. It could have been written in 2000, with Pam Alexander's name substituted for Brooke's. Was Larry on his lunch break when this article got pitched internally at the NYT?
I was at least happy to see that Brooke feels that that old guy, Quentin Hardy, is still an influencer. ;-)
I sincerely hope that her clients didn't pay for her time to work on this article. Much better for Brooke than for Wordnik.
Posted by: margaret at July 9, 2009 12:00 AM
Great post Richard. And for the commenters who think Ms. Hemmerling did us practitioners a favor, I have news for you: if my mother read this article, I'd be embarrassed. For people who don't know the ins and outs of our profession, I think a big blank space instead of this article would have been far better. I once worked in a SE Asian country where "PR" meant the same thing as "attractive female hotel greeter". If the NYT article was accurate in the way it portrayed Ms. Hemmerling, we've got a bigger image problem than I thought.
Posted by: Ken Hong at July 9, 2009 11:33 AM
Sure, some companies are looking for full service PR as you describe in Myth 1. Others clients though simply want to work with a PR or AR rep who has personal experience working with influencers in their market and can leverage these relationships and understanding of media and analysts interests on their clients behalf. The article didn't miss an opportunity at all as your last paragraph suggests, it was just one spin on an old story. Kudos to the publicist in the story - in an industry where we spend our days making our clients famous, she got got some publicity for herself!
Posted by: TechnologyPR.com at July 9, 2009 5:16 PM
Sorry, feel obliged to weigh in again here. Wordnik (as of earlier this week ending July 11, 2009) had a grand total of 300 Twitter followers, having been on Twitter since mid-March 2009. While there were many mentions of Wordnik from bloggers on Twitter, it wasn't driving an increase in follower numbers. Furthermore, despite two mentions prior to launch in the New York Times (one by William Safire, no less), Wordnik's own tweets failed to supply the links to the articles, both of which stressed the credibility of its founders.
If you're going with a social media strategy and launch, I'd say the results were less than adequate and that the client, if doing its own tweeting, had not been adequately prepared/trained.
Posted by: Ruth Seeley at July 11, 2009 1:38 PM
Rather than getting all bent out of shape about the reinforced stereotype of a one-dimensional (and quite successful) publicist, I found the end results the key take-away - and a wake-up call to recognize Twitter as a disruptive technology in public relations.
(Excerpt) "By 6:30 p.m. on the day Wordnik went live, Brew's staff had calculated that 1.43 million people had seen tweets about it. CNET and a handful of blogs also wrote about the site. None of the coverage was in print, and most wasn't by professional journalists.
The publicity sent 40,000 people to Wordnik's Web site to perform 170,000 searches the following week and caught the attention of reporters at USA Today and The Wall Street Journal who hoped to write articles. A couple of media companies have contacted Wordnik to talk about potential partnerships and mentioned that they read the tweets of Mr. Adelson or Mr. Rose."
Who wouldn't want these kinds of results?
Posted by: Keith Lester at July 14, 2009 4:01 PM
Richard, I'm curious to know why you're using a search marketing link that is clearly tagged as being measured on CPC basis and sending traffic from Google to your client, Brita. Wouldn't that mess up their traffic tracking?
Posted by: Gab Goldenberg at July 30, 2009 12:56 AM
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| TrackBackJuly 2, 2009
Leadership in Tough Times
I was a participant in the London Business School’s Global Leadership Summit earlier this week. Five hundred executives, many of them LBS graduates, attended the event. There were heated debates about executive compensation, the role of government in the private sector, the balance between needs of shareholders and stakeholders, and the responsibilities of the CEO as communicator/statesman. Here are some of the more provocative contributions from the CEO panelists:
1) Government and Business—Jeff Immelt of GE said, “We need to embrace public private partnerships. Government has moved in next door and is not leaving. “Paul Walsh of Diageo said, “Pressures of rising unemployment are forcing government to consider job protection, which is actually protectionism.” Lord Davies of the UK Government Department of Trade and Investment, added,”The voice of business in the UK is silent on the issues of the day.”
2) CEO as Communicator—Ian Davis of McKinsey said, “There is nothing in it for CEOs to speak up because they will get slammed. Business should have a collective voice or put forward entrepreneurs such as Branson.” Immelt disagreed, “You need the ability to connect with stakeholders, to explain company strategy. To heck with critics in the business media—tell them what you are doing but then move ahead.” Ben Verwaayen of Alcatel-Lucent said, “You must bring your people along to establish credibility and rebuild trust.” Willie Walsh of British Airways added, “Be honest with your people because they are very intelligent and know the business. Pride in the brand can sustain you in trying times.”
3) Shareholder Value as Primary Task—Ian Davis of McKinsey said, “Shareholder value needs a re-think. The duration is the key point; we cannot succeed in business with such short term targets. Finance faculty has been too dominant at business schools. Incentives should recognize needs of employees and society as well.”
4) Executive Compensation—An entrepreneur in the audience challenged Stephen Hester’s pay package. The UK Government regulator, John Kingman, responded, “His rewards are tied to the taxpayer ROI. We seek to run these partly nationalized banks as commercial investors would; we need to rebuild the bank.” Professor Julian Franks of London Business School added, “Compensation should not be sapped. Align management with shareholders to reward success. It is not a matter of fairness.”
5) The Global Divide—It is not about rich and poor, it is East versus West and state capitalism versus free markets. Professor Kishore Mahbubani of National University of Singapore said, “Don’t universalize Western conditions. Asians feel there has never been a better time. The crisis can be traced to Western managerial incompetence.” Sunil Mittal of Bharti added, “The new generation in India are spenders; their parents are savers.” Xavier Rolet of the London Stock Exchange noted, “We are witnessing the relative humbling of the West and of free market capitalism.” Lord Davis of UK Government added, “The West has lost moral authority for promoting its system. Watch out uncontrolled for anti-business, anti-government sentiment.”
6) The Way Out of Crisis—Stephen Hester of RBS said, “There are powerful forces of recidivism, those who benefited from borrowing against rising house values or easy access to credit cards. We cannot go for quick end of recession and create even more instability.” Professor Helene Rey of London Business School, “It is unclear how we get back to growth. We have nations of big savers (China, Japan, Germany) but no longer the big spenders (US). The US is key litmus test on protectionism. “
7) CEO Job in 21st Century—Jeff Immelt advised rapid adaptability, ability to embrace uncertainty, mobilize decentralized team, make business more personal via engagement and transparency. Ben Verwaayen of Alcatel-Lucent noted that CEO’s must be authentic (be yourself) and be predictable. He cited his experience at the troubled company, where his blog, AskBen.com, received 12,000 comments in the first three months—he responded to each himself, thereby building a relationship with employees.
Edelman and LBS also conducted a survey of participants on the day of the event. The data seems to suggest participants are looking forward instead of worrying about a precipitous decline. They are very nervous about the extent of government involvement in business, especially about the long term implications of higher taxes. They were reticent about becoming visionary public figures, preferring to be transparent communicators.
I left the conference convinced that the CEOs see the need for change, for a more robust regulatory structure, for a stakeholder approach supplanting the Milton Friedman vision that the only social responsibility of business it to make profit. But there is a disconnect around compensation (especially in financial services); witness the chair of Deloitte, John Connolly’s quote, “Those who make a big contribution are entitled to a big reward.” The disparity between haves and have nots, the sense of opportunity for the few and pink slip for the many, are corrosive to a vision of business as a productive partner in society. Paul Polman of Unilever spoke of “a higher level of accountability, a need to balance short and long term.” He concluded with a quote from Viktor Frankl’s In Search of Meaning, “Next to the Statue of Liberty on the East Coast, Americans should have built a Statue of Responsibility on the West Coast.” His advice is worth heeding.
Posted by Edelman at 1:33 PM |
Comments
Richard,
I found Don Phillip’s (hemscott.com) 7/31/09 interview of John Bogle, which follows, relevant to you “Leadership in Tough Times” post:
Don Phillips: As a card-carrying capitalist, how do you feel about--or what lessons are there about capitalism from what's happened here, and how do you feel about the increased and expanded role of government?
John Bogle: Well, business brought it on themselves. This is certainly a crisis in capitalism. Judge Posner blames it all on the capitalistic system. He's the great Chicago School man everybody knows. University of Chicago Law School, Chicago Business School all teach us this.
The markets have to clear. They will produce great gains for us. Competition, free markets unimpeded.
So capitalism has basically failed us, and I think even worse--although Judge Posner does not agree with this--I think capitalists have failed us as well as capitalism.
I blame the capitalists actually more than capitalism, which gets to, Don, the endemic part of the system, which means that the idea that capitalism brought this crisis upon itself is even more acceptable, more understandable, in the whole scheme of things.
That is, these businessmen--take the bankers. All the other banks are doing these low loans, so their earnings are growing faster than ours are. So our directors and the analysts on Wall Street say, boy, you better get on the bandwagon and follow.
I've written on this in a number of different contexts, but it's a little bit like the old ethical standard. Think about this, all of you, if you would. There are some things that one just didn't do. That's the way I was brought up. It's not gray; it was black and white.
Now the ethical standard seems to be if everybody else is doing it, I can do it too. Carry that over into the banking. Everybody else is doing these funny loans and having earnings grow faster, building up their margins, leveraging those margins.
The more leverage A gets, the more leverage B feels inclined to get. So the system fed on itself and drove bankers to making decisions that they, presumably, should have known better than to make.
I don't--like Judge Posner does, however--I don't blame government for this. I was at a meeting of CEOs, even though I haven't been to one for quite a while, and someone asked me to sum up the morning. This was a bunch of bankers and other CEOs. They said, what do you think about all this?
I said, you know, what I'm hearing here is you're blaming the government for allowing you to do what you should have had enough brains not to do in the first place. I think there's a lot to that. So it's endemic to the system, and we have to learn to have a better capitalistic system.
I don't call it nationalism. Call it what you will, Don. If the government owns 35% of the bank, it's not their fault they own 35% of it. They had to bail the bank out. Frankly, other than the fiscal issues, I don't see any difference in having Washington, D.C., own 35 percent of Citibank than having Dubai own it except Dubai would drive a much harder bargain.
Phillips: [laughs] Well, it seems at the end of the day, character still counts.
Bogle: Yes, character still counts, and we have lost a lot of that.
Posted by: Hugh Campbell at August 4, 2009 10:16 PM





