PR's hand basket to hell

By Tom Foremski - January 27, 2006

My recent post about "where is PR's hand basket to hell?" sparked some spirited debate within the online PR communities. I remain unconvinced that PR can justify a larger spend when the media sector continues to decline.

PR agencies are hiring, they are making money, while the media sector is rapidly falling apart. Online advertising is disrupting mainstream media and blogging will disrupt the PR industry.

Yet the PR industry is saying everything is okay. That is like the man falling past the 33rd floor of building heard saying, "No problem so far..." Jam tomorrow :-)

The PR industry needs to change into a new communications industry. But it can't get there from here. It has business models and products that are profitable (just as newspapers remain profitable).

The business models in the new communications and new media sectors are still in formation, and cannot support the cost structures of the old. That's why the old cannot cross the chasm to the new and that's why there will be considerable disruption ahead.

The winners in the new communications/new media sectors will be new companies, or what I call new rules enterprises. New rules companies are new, and they are formed around the emerging new business models.

Here are some of the rules of new rules enterprises

You start with the lowest cost business model and you grow as the new business models grow. I am a new rules enterprise, I am a journalist blogger with a laptop. To get below my costs you would need to be living rent-free at your parents' home and using your sister's computer :-)


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January 27, 2006 | Permalink | Comment | Category: PRWatch | Subscribe to SVW

Comments (9)

Tom, I can live with 100 dollars per month. How can you compete with someone like me?


Jamie Bull:

While i definitely agree that PR doesn't seem to be moving as quickly towards new media as it should, I think that PR's ability to thrive while old media and advertising are taking a turn for the worse really speaks well about PR as a communications discipline.
If PR were all about generating press hits to reach your public instead of buying ads to reach them, I would agree completely with your argument. In an age when many organizations lack the ability to communicate their reason for existence, PR has jumped at the chance to give organizations effective communication that doesn't just communicate for the sake of communication, but does so in an attempt to meet the organization's business goals (usually...).
PR's adoption of new media tactics does seem to be much slower than you'd hope from a business communication industry, but some have taken onto it much faster than others, and I can only hope the rest will follow.


Tom, you are embarrassingly clueless on this topic. Please stop talking about it. Hmm, should I listen to Tom or Dick Edelman about how to run a PR firm?

Worst analogy of the week award:

"The PR industry needs to change into a new communications industry. But it can't get there from here. It has business models and products that are profitable (just as newspapers remain profitable)."

Please tell me you're not comparing the PR biz to the newspaper biz, Tom. The newspaper industry has printing presses, Tom. They have physical infrastructure that will ultimately obsolete. Comparing the challenges of the newspaper biz to the PR biz is like comparing a battleship to a tug boat, and saying that because they're both boats they should have the same turning radius.

I refused to write a post on your last column because of how ill-informed it was. Please don't make me post a column on you, Tom; you won't want that.


Shel Israel has made me see the error of my ways, so I apologize for the tone of my previous comment. I'll add this, though: Rather than simply restating your opinion, I wish you had engaged in a discussion of each of the specific points that Richard Edelman brought up in refuting your argument. That would be more of a conversation.

As someone who has worked in two industries --paging networks and, more recently, newspapers -- that were threatened (or in the former case, destroyed) by their inability to overcome their infrastructure investments when the business models needed to change, I can tell you that PR has no such difficulties. The business requires a cultural shift, but thanks to folks like Edelman and others, that's already underway.


Hi Tom -
I haven't had a chance to read Richard Edelman's response yet, but crafted a response of my own:

http://pr-squared.blogspot.com/2006/01/tackling-silicon-valley-watchers-dire.html.


I think it's great that you've inspired this much angst. As an industry we should never get comfortable.


There seems to be some parallels between your argument on the PR industry, and some self-reflecting VCs…

http://www.ricksegal.typepad.com/pmv/2006/01/vc_20_part_2.html


Tom:
It isn't simply a cost thing though I fully understand the value of 'free.' I absolutely disagree with those who see the PR world through rose tinted spectacles. Here's what's happened recently at my place:

I spend a lot of time calling a very well known UK tech company. They basically try and ignore what's happening. I call a couple of times - not much by way of response. OK.

Then they launch a new product and now want to talk with me. As it happens the product looks good for what it does and the market for which it's aimed. It gets written up appropriately. I know the area we're talking about so it's no big deal to me.

In house PR comes back saying 1. can we use your stuff? Sure it's under CCL. 2. We'll talk to you abut the things you give us a hard time over - soon. 3. We're working to resolve the issues you've picked up and we'll keep in touch.

Hmmm...traffic takes an uptick and now others want to talk. Hmmm...people I've never spoken to before. Not via PR agency but direct.

Where is this going? I think I know.

Command and control a la traditional high-tech PR is evaporating. Did they ever think that was true in the first place? Emperors' clothes springs to mind.


Dimitar: "I can live with 100 dollars per month. How can you compete with someone like me?"
--I already do compete with someone like you :-)

Scott: "Please don't make me post a column on you, Tom; you won't want that.
--Bring it on baby! Of course I want to you to do that! And yes, I didn't have time to respond to each of Richard Edelman's many points. I love conversations but I've also got a lot of running around and reporting to do--so posting takes priority (I wish there was a week in every day).

TDefren: "There seems to be some parallels between your argument on the PR industry, and some self-reflecting VCs…"

VCs--the next bowling pin to be toppled :-) VCs have been in trouble for a long time--the disruption happened but they still sit at their desks, looking for some deal flow and scatching their heads as to what to do. It's a knowledge capital world these days... Some VCs have quite a lot of knowledge capital--but only some.


I totally agree with what you're saying. I wish more people felt this way and took the time to express themselves.Keep up the great work.
Tom Goodman
http://www.watergardensuppliescenter.com


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