The New Rules In PR - The Old Model Is Dead
By Tom Foremski - June 10, 2009
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For several years I've warned the PR agencies that fundamental changes have occurred in their world just as they have in the media world.
I said it all reminded me of the cartoon character Wily E. Coyote, who is chasing the Road Runner. Everything is fine until he looks down and sees he has run out of road and there is nothing between him and the distant canyon floor.
For the past few years the PR agency world didn't know it had run out of road because it was able to charge for its traditional PR activities and also to charge extra for its "social media" expertise too. Times were great, money was pouring in, and everyone was hiring.
Now the road has run out in traditional PR for many, and the canyon floor is a long way down. These days, I can't tell you how many people from large PR agencies have been telling me "the old model is dead."
Here are a few notes from my conversations:
- There will still be a need for large agencies but not for the vast majority of companies.
- The old way of charging a monthly retainer is going away, it is moving to a project by project model.
- Why do PR agencies bring in their "social media experts?" Shouldn't they all be social media experts by now? Why make the distinction.
- PR needs to focus on outcomes, and not outputs. Outputs are just ways to charge for time spent, outcomes is where the value is.
- So what that you emailed 50 journalists? You are charging for outputs and not outcomes.
- Charging by the hour is going to go away, charging by the project, by activity, is the future.
- PR needs to say "No" to clients more often, otherwise they are not using their expertise, or it shows that they have none.
- Is it PR, marketing, or advertising? Which department pays for PR? You should compete with the best ideas getting funding.
- There is no such thing as "social media" it is all media and you should have expertise in all of it.
- Who puts out press releases through the newswires these days? Or puts out press releases anyway? You should be contacting journalists and others directly.
- PR firms need to figure out how to drive traffic to news stories and to client web sites. They don't know how.
- Too many people are managing others rather than doing the work that needs to be done.
- I can charge half the agency rates and the get the work done in half the time.
. . .
In the next couple of weeks I'll be looking at some of the changes in the world of PR. I'm particularly interested in the extent of "social media" expertise among the PR agencies.
"Social media is the tip of the spear" when it comes to new business, says Todd Defren, principal at Shift Communications.
I'll be looking to see who in the agencies is active in blogging, Twitter, FaceBook, YouTube, etc. Is it the senior people or is it junior staff? How often do they update, how much traffic do they get? What's the quality of their content?
My position is: you've got to be in it to know it. Let's see who knows it.
- - -
Let me know how things have changed from your perspective: Tom at Foremski.com. I also publish guest posts.
Please see:
Can You Advise Clients On Social Media If You Aren't On Facebook Or Twitter?
I Don't Want A Social Media Relationship With My Hard Drive
The Future Of PR When Every Company Is Now A Media Company...
Microsoft's ROI on Robert Scoble - the disruption of PR by blogging
Chicken or Rooster? Engaging in online debates . . .
Raining on the PR industry's parade...
Wily E Coyote: Traditional PR is Running on Thin Air
Disruption in mainstream media but where is the disruption in the mainstream PR industry?
June 10, 2009 | Permalink | Comment | Category: PRWatch | Subscribe to SVW
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Comments (11)
Brilliant Post. "You Have to Be In It To Know It" - Couldn't Be be more accurate...which is why training for employees - Jr Staff & CEO's alike - Is needed for any PR Firm to survive...you can't have a social media division, or expert...everyone must know social media, just as the do traditional media relations...I could go on and on, but you've pretty much said it all, and very succinctly. I'll be back - you've made a reader outta me, Tom. I might take you up on the guest post offer, if you'd like...and I'd love for you to pen a guest post on my blog - quid pro quo?
- David
Posted: June 10, 2009 2:29 PM
Love the post except for one thing: "You've got to be in it to know it."
Being "in it" isn't the same as knowing it. That's the same idea that has led to a lot of very boring PR/social media blogging.
On the other hand, having a good personal (rather than PR-focused) blog is a nice idea, but not everyone publicly connects their work persona and their personal blog, for a variety of reasons.
Finally, people don't have time to be "in" blogging, Facebook, YouTube, etc. all the time -- what about their work? We're not all professional bloggers or freelancers with loads of time on our hands. I think being "in it" can mean being a smart consumer as much as a professional producer.
Posted: June 10, 2009 2:31 PM
More great insight Tom! Thanks.
Current PR pricing models are less than ideal. Output vs. outcome distinction is valuable to the extent that both parties can agree on an abstract service valuation in the course of structuring a deal. Often it's expedient for both sides to simplify terms - not because they care less about outcomes - rather because it's much easier to translate outputs and hourly estimates into a document that both sides will execute. The legal/contractual side of dealmaking will continue to be a major factor in how PR services are bought and sold.
Posted: June 10, 2009 2:58 PM
Good stuff Tom. Looking forward to your insights, as ever.
Couldn't agree more on the integration of social media into the core teams, rather than an ivory tower.
Posted: June 10, 2009 3:14 PM
You've got some great points in here. The media landscape has shifted and that changes the rules of the game. I love what you're saying about not delineating social media experts from the rest of the staff. Communication pros should be well rounded. Proving outcomes will be a requirement in the future, especially since we have the ability to measure success now. What you said about saying "no" makes me smile. You are dead on there. If you are good at what you do, you should be able to be selective and should want to avoid red flag clients.
Be careful not to throw the baby out with the bathwater though. People thought social media was the death of "traditional media" and then threw out relevant concepts along with the tired ones. Social media is really just a shift in the economics of production and distribution along with the addition of participation. The people prophesied the end of "traditional media" are now returning to timeless concepts like quality editing, fact checking, journalistic ethics, etc. Same is true with PR.
While PR will shift in tactics from harassment to consent building as social skills take a lead role, but retainer models for service industries are not going away. Companies may have lost trust in large PR firms, which will cause some of the big PR firms to downsize and even put some out of business. They may be scared away from retainers for a season as they relearn to order and manage modern communication services from capable communication firms. The firms that are good at proving they delivered results will *want* to be paid on commission. Once the industry as a whole is good at delivering value as the proven models rise to the top, clients will seek retainers again as it gives them the highest profit margin and predictable budgets.
There will be a changing of the guard leading to the downsizing and death of large PR firms, but new ones will emerge just as large as today's that will be effective at scaling packaged services using modern methodology.
PR is already competing against advertising for marketing dollars as the war to prove who delivers more leads to sales continues to heat up. Very exciting time to be in PR.
Posted: June 10, 2009 7:33 PM
I love the messages I get from people trying to push "PR" forward, and that I bring a vindication to what they are trying to do.
In media and in PR, things are changing quickly, (and I think they will continue changing.) I really believe that you have to jump into the new media and you cannot understand it, or appreciate it, unless you are in it. You don't have to be good at it, you just need to be in it.
Posted: June 10, 2009 10:10 PM
The Wave of World Wide Rave is not limited to the US - it is very much awake in Asia especially a red dot called Singapore - it may have taken 2 years of sweat to get brands to understand the new rules and the wise ones are believing. The social media roller coaster keeps thrilling us with ride taking us into new waves of opportunity and enlightenment.
Posted: June 11, 2009 1:03 AM
Great post - couldn't agree more with: 'there's no such thing as social media, it's all media'. Essentially, the skills of communicating remain the same while online channels like for example Twitter, speed some of the processes up and enable dialogues to happen more instantaneous.
Also, PR has moved from being a tool to 'broadcast' information to becoming a way of creating two-way conversations.
Posted: June 11, 2009 1:21 AM
Well said, Tom. I have been in PR for 16 years and started out faxing releases and advisories to newsrooms! I also pitched a lot on the phone, and you know what? The same was true back then as it is now. If you are good storyteller, know how to work with the press on their terms while accomplishing your goal, and can pull in strong results for your clients, you will always be successful. Good PR people also never, ever let themselves become antiquated (which includes keeping media skills sharp at all times), and stay on top of what's current. I have worked for several big firms, but have been on my own for four years and I love it so much more for many reasons. I also love the emergence of "social media" (I still call it that, as do most PR people I know) because it gives people like me a whole new way to build relationships, which is so key in this business. The people who will survive in this business will be active across all mediums, understand how those mediums work (in a way which they can explain to others) and are focused on results as PR becomes more and more "ROI" driven.
Posted: June 12, 2009 12:23 PM
Another good post on PR, Mr. Foremski. Looking forward to the follow-up.
My only quibble is your position on press releases. Don't get me wrong, I agree with you, but there are still many companies whose technology plays to industries outside of the valley where releases are still (unfortunately) part of the mix (more as a marketing/sales tool than a press tool).
Keep up the good work!
Posted: June 13, 2009 2:17 PM
Thanks Mike. My position on the press release is "horses for courses" where it makes sense, as you point out. Oh, and put some links in it :)
Posted: June 13, 2009 2:49 PM