Which PR Firms Are The Road Runners?
By Tom Foremski - October 11, 2007
Luca Penati from Ogilvy left aninteresting comment on my Wiley E Coyote post about PR firms running on thin air--http://www.siliconvalleywatcher.com/mt/archives/2007/10/wily_e_coyote_p.php">doing PR-as-usual and not noticing their world has changed drastically. As it has for media.
Luca Penati writes:
<blockquote>I think saying that most PR agencies do not get social media is wrong. Social media is new way to engage in conversations with stakeholders. Some agencies and companies mastered this before others, but the key thing to understand is that it has to be embedded in everything we do, and not seen as a separate discipline.
And engaging in conversations with stakeholders is what we have been doing all along.
We are not the coyote. We are the road runner.</blockquote>
Luca is right, there is some excellent work going on within the PR industry in using the new media technologies to build online communities, and to improve communications between companies and their customers.
Such efforts are very effective if done right. They create tremendous value for clients in many ways.
But there is a massive amount of work still being done around traditional PR. This is an expensive way to reach the same basic goals: improve sales and improve brand perception.
As more companies realize they can get more bang for their buck with new media PR strategies, they will pull more of their money from doing PR the old way. And that's when revenues for PR firms will fall.
And why wouldn't that happen? The new media approaches work tremendously well. And they don't cost as much. I already come across companies that spend tiny sums on conventional PR services and they have been very successful in building their businesses through non-traditional approaches. This is a growing trend. It is not a fad.
I disagree that some PR firms have already mastered the new changes.
We are all at such an early stage in all of this. Technologies such as RSS, CSS, and XML are simple yet incredible powerful media technologies that can be used to publish unique types of media formats, and publish the activities of interactive online communites. RSS should stand for "Relationships Simply Syndicated."
We don't yet know all the things we can create with these technologies, which is great. Because we can all have a hand in creating the future. The changes the PR industry still has yet to go through are similar to the changes that media companies are going through now.
The media business model is being hacked off at the knees or rather the neck.
Established media companies are continuing to lose revenues because of a plethora of new media sites. Those online publishers can offer cheaper advertising, better conversion--plus a ton of free additional metric data compared with traditional advertising. Traditional advertising cannot compete.
Similarly, PR firms will lose revenues because of new media approaches to creating the same basic value: improving sales and improving brand perception.
Yes, Ogilvy is doing some interesting work in new media areas, others are too. I don't have the figures, but I bet that the new media work accounts for a small fraction of overall PR industry revenues.
Not much incentive to change
There isn't much to be gained for PR firms to push new media approaches because it would lower revenues. Except if it is offered as an additional service, which is how it is being sold these days. Much of the PR industry is telling clients to use a dual approach, strap a new media strategy onto a traditional approach.
The PR firms that win will be the ones that kill most of their traditional PR approaches and advocate a new media approach because it is more effective and has a lower cost. That's a hugely disruptive change and it has yet to play out.
It is clear that some PR firms will emerge as Road Runners while others will remain behind as road kill :-)
Technorati Tags: New Rules Communications, Wiley E Coyote PR
« Making Money From Building Social Media Around Illness | Main | Newswatch 10.11.07: iPhone hackers strike back »
Posted to A Top Story | PRWatch
October 11, 2007 | Permalink | Comment | Subscribe to SVW
- Top Stories:
- Silicon Valley Goes To Paris... Le Web '09
- Turkey's Search Engine And The Backlash Against The Internet's 'Wal-Marts'
- A Saturday Post: Media In Crisis: I'm Thankful For Being Here Right Now...
- Guest Post: Social Media Marketing is Swiss Cheese
- A Single Search Index Would Speed Up The Entire Internet - A Zero Carbon Speed Boost
- The Dark Matter Of Internet Commerce - A Towering Pile of Scams - $1.4Bn And Counting...
- Groovy: Real-Time Data Could Aid Media Companies
- Tech Awards For Humanity: "Cash Prizes" Galore And Al Gore's Meaningless Speech . . . And Amazing Laureates!
- The Death Of The Search Algorithm? Techmeme Has Six Editors
- TEDxSF - Little TED Just Like The Big TED
- What's Next? Beyond Real-Time...
- PearlTrees: A Novel Approach To Human Mapping Of The Internet
Comments (6)
Tom, I agree. I'm a longtime internal AND agency PR guy. I posted some comments concerning your original post the other day but to me the agencies that survive will have:
They will not need the traditional PR 'products'. The PR agency of today must evolve itself (quickly) and have the right talent in place, in most cases that is not your traditional media relations expert. It will be interesting to watch it shake out.
/kff
Posted: October 11, 2007 10:17 AM
Beep, beep. :)
http://blog.ogilvypr.com/
Posted: October 11, 2007 11:03 AM
I don't think new media is the answer to every communication problem. For this reason, I disagree that PR agencies are not pushing new media because it would lower revenue. We don't think that way. We look at the problem that needs solving and apply the solution we think most appropriate. New media is often part of the solution, and sometimes is THE solution. Not always.
We need to move away from the terms "traditional PR" and "new PR". There is only one PR. it's an integrated approach that best addresses the problem.
Welcome to PR 2.0.
Posted: October 11, 2007 11:48 AM
I'll tell you something Tom. What PR hasn't mastered is an understanding of the journalist's customer, your audience. We're all at fault, pitching new business on our "services," "new / creative ways" to use social media to advance our clients message(s) yet, in what way and to whom? PR people need to go back to their roots. Here's some tips:
-Work backwards: profile your client's customer, asking a group of customers the same questions and test those customers to see how they react individually and in a group (the bigger, and more diverse the group, the better) Don't guess, test!
-Listen, don't talk: rather than starting with a client's web site and building a position with messages to face an audience, go to that audience and become "one of them." Understand their language, style and discourse, before starting any "proactive media relations" program.
-PR 2.0 is SO 1.0: Take what you've learned offline, attending events, parties, social gatherings of many kinds and apply that to who and how you interact with people online.
-Play by the rules, before striving to win the game: Go back in time and read (or re-read in my case) some Marshall McLuhan and other traditional media messagers to grasp an understanding of the foundation of communication, it's challenges and opportunities
Why do PR people today make everything sound so complicated? If I have re-read the responses to your post just to understand those PR people, then how will I understand them if they're communicating on behalf of one of their clients?
Posted: October 12, 2007 9:50 PM
I think feathers are ruffled perhaps because it's true. Some PR agencies have NOT mastered the new changes hitting the landscape and further, many are afraid to dip their toe in and learn more.
Many PR agencies tout social media as a capability or strength, without little more than an understanding of how to pitch a story to a blogger. It's important to stress social media goes way beyond pitching a blogger to write about your client's' news. In fact, that's so remedial, it's not really the thinking a client is paying their agency for when they say develop a social media strategy. To pose blog relations as a social media strategy is ill advised counsel to a client. Fear of losing budget shouldn't be the concern; being a good partner and doing what is right for a client is the best thing you can do. Many agencies don't believe in this. Having EXTENSIVE experience on the agency side I know this to be true. Motivation is not what's in a client's best interest. Keeping the budget is.
For what it's worth, my two cents -- social media is engaging in the dialogue, finding out what's being said and using those insights to develop a strategy for a company to engage with and learn from their core audience (i.e. customers). It is not pitching bloggers on you client's news.
Posted: October 16, 2007 11:04 AM
The new 2.0 tools and techniques may be low cost but executing effective campaigns still demands well-practiced and experienced public relations expetise including a solid understanding of how to recognize and craft a good story for consumption by any media.
Consider desktop publishing as a prior tech-shift example. The wonderful new computer-based tools allowed lots of people to rapidly create a lot of graphic crap. It didn't put graphic design houses out of business. The productivity tools likely helped them grow.
As always, there will be companies that hire internal talent or rent it from agencies. However, agencies very often lead in innovating new techniques and methods to remain competitive.
Lastly, media relations is but a single dimension of the imense range of communications strategies and tactics availailable to public relations pros. Whole campaigns are often successfully done without hustling media coverage. Nothing new about that.
Posted: October 16, 2007 1:09 PM