Document 6511590
Transcription
Document 6511590
March 31, 2008 Digital PR prnewsonline.com ▶ Contents Issue 13 Vol. 64 Internal Research Communications How to Lose Friends & Alienate People: Refuse to Relinquish Control Of the many reasons executives cite for being hesitant to fully embrace the power of digital communications channels, the fear of losing control is among the most frequent. But that’s not to say that the same executives aren’t pushing to incorporate these channels into their business plans. According to the results of a recent survey conducted by PR ( DID YOU KNOW? ) Seven Things You Will Learn In This Week’s Issue Of PR News 1. Thorough research can be the backbone of a media relations effort. (p. 4) 2. 36% of surveyed executives report that 1%-10% of their overall marketing budgets were allocated to digital tools. (p. 2) 3. 75% of consumer survey respondents say that corporations’ green efforts are more credible when endorsed by environmental groups. (p. 3) 4. Traditional political campaign techniques can be applied to shift investor sentiments. (p. 7) 5. The four “Cs” to live by in the digital age are: consumers, content, creativity and change. (p. 6) 6. Having a library of abstracts will increase your chances of being selected for a speaking engagement. (p. 8) 7. 51% of survey respondents stop watching online video once they encounter an in-stream advertisement. (p. 3) News and Peppercom, it’s quite the opposite. Of the nearly 500 professionals who responded to the survey, the vast majority (87%) believes that digital platforms will play a more strategic marketing role in 2008 (for results, see page 2). However, the findings revealed some inconsistencies. For starters, despite the widespread belief that digital will play a more strategic role in 2008 marketing plans, the need for improving digital Investor Relations ▶Digital PR Con’t More Digital PR Survey Results 2 ▶Quick Study Monetizing Word Of Mouth 3 ▶Case Study Crunching Numbers To Lessen Debt 4 ▶Tip Sheet Building A Corporate Speakers Bureau 8 communications is currently a low priority in the overall marketing budget, with almost half of respondents saying that only 0-10% of allowance was allocated for digital tools in the last year. Only 8% believe that this number will increase significantly in the year to come. But enough with the numbers for a moment; the true pulse of digital communications can be taken by looking at what executives are (and aren’t) doing to force these platforms Financial Comms into their overall business plan. Southwest Airlines remains a time-tested example of a company that opened itself up to risk, and reaped rewards (measured in reputational capital) accordingly. The list to date of their branded digital platforms is impressive: the “Nuts About Southwest” blog; the “Wanna Get Away” microsite; YouTube videos; a Facebook page; a Twitter application; and a presence on LinkedIn. (For a guide Page ▶ Digital PR Recession-Proof Investor Relations: Leveraging PR to Reassure Stakeholders Communications professionals now find themselves working in an investor-driven business context. Faced with a looming recession and all of the challenges that go with it, business executives are increasingly quick to cater to the whims of investors to keep their operations afloat. In addition, shareholder activism is on the rise in an environment altered by online interactions. This wouldn’t be striking if PR executives were fluent in investor behavior, but such is often not the case. Plus, acts of deception across all industries—political, financial or otherwise—have upped the ante even further. With these realities at the forefront of business transactions, com- municators, be they corporate, agency or nonprofit affiliates, must learn strategic investor relations practices, and they must be prepared to revise these learned strategies early and often. “The learning curve of investor communications has ramped up considerably in the last 10 years or so, thanks in part to the scrutiny of the Securities Exchange Commision and SarbanesOxley, which has served notice to issuers about their responsibility for full, fair and timely material disclosures,” says Robert Ferris, executive managing director of RF Binder Partners. Communications professionals play a role in these material disclosures, whether it’s through relaying them to shareholders or the media, or preparing annual reports. While in-depth PR/IR guidelines could be an entire book’s worth of real estate, consider this a primer in strategies and best practices for engaging shareholders in meaningful ways. ▶ Transparency is king. It almost—almost—goes without saying, but transparency, especially in the wake of SarbanesOxley, is an essential investor relations practice. However, completely transparent communications are easier said than done, and the key to meeting a high standard is having a deep understanding of your Page ▶ ©2008 Access Intelligence LLC. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines of up to $100,000 for violations. ISSN 1546-0193 Editor, Courtney M. 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Mark Weiner - Ketchum Mary Wong - Office Depot PR News BOARD OF CONTRIBUTORS Dave Armon - PR Newswire Andy Gilman - CommCore Consulting Bruce Jeffries-Fox - Jeffries-Fox Associates Angela Jeffrey - VMS Richard Laermer - RLM Public Relations Richard Levick - Levick Strategic Comms Ian Lipner - Lewis PR/YoungPRpros Katie Paine - KDPaine & Partners Rodger Roeser - Justice & Young Lou Thompson - National Investor Relations Institute Reid Walker - Lenovo Tom Martin - College of Charleston Group Subscriptions - Diane Schwartz, 757.531.1369, [email protected] Additional Copies & Article Reprints Client Services, [email protected] Tel: 800-777-5006 (toll-free within the US) or 301-354-2101 fax: 301-309-3847 Published weekly by Access Intelligence, LLC 4 Choke Cherry Road, Rockville, MD 20850 Phone: 888.707.5814 • Fax: 301.309.3847 e-mail: [email protected] New York Editorial Office: 110 William St., 11th Floor, New York, NY 10038 Phone: 212.621.4875 • Fax: 212.621.4879 Subscription/Renewal Coupon ❍ I want to subscribe to PR News for $697 a year and receive 48 issues plus full access to the online Article Archives. 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Clearly, the Southwest execs have jumped on the bandwidth bandwagon—the key, though, was being willing to cede control to the audiences in that popular cyberspace. “Conversations are going to happen on other blogs and [social networks], so why not let it happen on your own site?” says Paula Berg, PR manager for Southwest. “You can’t control it, but you can at least try to contain it.” Berg is referring to Southwest’s practices of allowing consumers to generate content on the company’s sites, be it through blog posts, videos or general commentary. Rather than censoring remarks that are unkind or unpleasant, the communications team publishes everything, save for comments that are profane in any way. “Don’t let unapproved comments go unposted or unaddressed,” Berg says. “That undermines transparency.” Indeed, transparency is the backbone of digital platforms, as consumers are quickly becoming immune to corporate speak; shallow pleasantries only raise more eyeballs and, in turn, alienate more people. In this vein, Ford highlights the following barriers to implementing a social media plan: • A lack of commitment among senior management; • A lack of best practices; and, • A lack of leadership from marketing and PR firms in the digital space. ▶ A cure for commitment- phobia: “With talk of a recession and growing competition in the digital space, companies are increasingly concerned with building a stronger digital presence,” says Steve Cody, managing partner of Peppercom. “However, they are unwilling to allocate the resources necessary to have a stronger online presence.” If this sounds familiar and commitment-phobic leadership teams are holding you back, boost management’s confidence by offering examples of companies that have profited by taking a chance, a la Southwest. When the airline was considering abandoning its open-seating policy in favor of assigned seats, the CEO made the announcement on the blog. More than 700 people responded to voice their opinion, which, it turned out, was largely in favor of not changing the policy. This commentary strongly influenced executives’ decision-making process by making them aware that, if it ain’t broke, there’s no need to fix it. ▶ If at first you don’t suc- ceed … “The majority of those Page ▶ Digital PR: A 4-Minute Survey by PR News and Peppercom 1. Which of the following digital tools is your company currently using (check all that apply)? Blogs................................................ 27.7% Social Networks............................... 21.9% Podcasts.......................................... 18.1% Viral Videos...................................... 10.8% Wikis................................................... 9.1% None/Other......................................... 7.7% Sentiment Monitoring......................... 4.7% 2. Which of the tools that you are not currently using do you plan to explore in the next 6-12 months (check all that apply)? Podcasts.......................................... 20.8% Social Networks............................... 18.5% Blogs................................................ 17.8% Viral Video........................................ 17.5% Wikis................................................. 14.6% Sentiment Monitoring......................... 7.9% None/Other......................................... 2.9% 3. What is the main goal of your digital program (check all that apply)? Build/Enhance Reputation............... 31.6% Drive Sales....................................... 18.8% Keep Up With Competition.............. 13.8% Testing/Experimenting...................... 13.6% Internal Communication................... 12.0% Recruit/Retain Employees.................. 6.3% Other.................................................. 3.9% 4. How much of your overall marketing budget was allocated to digital tools in the last year? 1%-10%........................................... 36.1% Don’t Know...................................... 22.6% 11%-25%......................................... 19.5% None................................................. 13.6% 26%-50%........................................... 3.9% 51% or more...................................... 3.9% No Response...................................... 0.4% 5. How much do you expect that number to change in the next year? Increase Slightly............................... 35.5% Increase Somewhat.......................... 24.8% Don’t Know...................................... 17.2% Stay the Same.................................. 12.5% Increase Significantly......................... 7.6% Decrease Slightly............................... 1.2% Decrease Somewhat.......................... 1.0% These findings are a follow-up to the survey preview, which appeared in the 03-03-08 issue of PR News. PR News | 3.31.08 ▶ Quick Study Partnering With 3rd Party NGOs; Loyal Customers Spread the Love; Video Engagement; Monetizing Word of Mouth ▶ Everything Goes With Green: A company’s green efforts are more credible when endorsed by third-party environmental groups whose efforts have an impact on their local community, according to a survey by Peppercom and MediaScreen LLC. However, while this news is widely accepted by executives, the results suggest that most companies interested in going green don’t know which environmental groups to partner with, or how to work with them on policy development and communication. More than 100 communications executives and 300-plus consumers were surveyed for the study “Influence of Environmental Groups on Consumer Decisions and ‘Green’ Corporate Communications Programs.” Among the consumer-based findings: • 75% of the consumer respondents indicated that efforts seem more credible when endorsed by environmental groups that have programs designed to have a direct impact on local communities; • The same percentage says their purchasing and investment decisions are influenced by NGOs; • 78% turn to online sources to get information about environmental issues; • Among the environmental groups consumers are familiar with, 73% are NGOs; and, • 72% of consumers give companies the benefit of the doubt, saying that corporate efforts to help the environment are believable. Customers” study solicited feedback from more than 10,000 customers throughout the U.S. to judge customer engagement across four service sectors (hotel, retail, banking and casual dining), and to look at the links between customer engagement and financial performance. The top performers in the apparel sector As for the business side: are J. Crew, Nine West, Ann Taylor, Aeropostale, Chico’s, • 82% of companies interGuess and American Eagle viewed have created formal Outfitters. green communication proAdditionally, the study grams, mostly in the last six to found that engaged customers: 12 months; • 71% turn to environmental • Promote the company or groups and other organizabrand; tions to help guide their pro- • Intend to return in the future; grams, while 53% look to PR/ • Go out of their way to do marketing firms with “green” business with the company; expertise; and, and, • Among the companies that do • Feel passion—even love—for not work with environmental the brand and experience. groups, 55% say the reason is Source: PeopleMetrics that these groups can be “distrustful of corporate motives,” ▶ A Video Affair: More than while 41% believe the goals 154 million Americans will of environmental groups are watch online videos this year. not typically aligned with According to eMarketer, that’s their own and 27% don’t see a 12.1% increase from last year. a need/reason to work with But are these online video ads environmental groups. really engaging consumers? According to a study by Source: Peppercom and MediaScreen LLC Burst Media of more than 2,600 online users in December ▶ Get Engaged: PeopleMetrics’ 2007, most advertisers are still 2008 “Most Engaged in the experimental phase when it comes to video advertising. The findings reveal that 51% of respondents stop watching an online video once they encounter an in-stream advertisement, suggesting that the benefits for watching online video advertising need to be greater in order to engage viewers. Source: eMarketer & Burst Media ▶ Monetizing Word of Mouth: A new study from customer loyalty solutions provider Satmetrix Systems examines the financial impact of positive and negative customer WOM. The study illustrates this impact by enabling companies to categorize customers into “promoters” (those who are highly likely to recommend a company and/or its products/services) and “detractors” (those who are unlikely to recommend the company). Satmetrix’s Net Promoter WOM Economic Framework then determines total customer value based on buyer and referral economics. Applying this framework to the computer hardware industry, the study revealed that each “promoter” was worth about $2,600, and that promoters account for roughly one-half of a new customer acquired through positive WOM. Source: Satmetrix Systems Prove your Weight in Platinum Entry Deadline: May 16, 2008 The Platinum PR Awards will salute the year’s most outstanding communications initiatives and programs in the highly competitive and dynamic PR arena. The awards are open to all individuals and teams worldwide at for-profit and non-profit organizations. Your hard work is done – now it’s time for you and your team to get recognized for it! Visit www.prnewsonline.com for entry information. Sponsorship Opportunities: Vice President and Publisher, Diane Schwartz at 212-621-4964; [email protected]. Entry Questions: Awards Coordinator, Saun Sayamongkhun at 301-354-1610; [email protected]. PR News | 3.31.08 ▶ Case Study Media Relations Research Measurement PR Execs Crunch Numbers and Conduct Research To Help Alleviate Financial Burden of College Education Company: AllianceBernstein Investments Agency: Tiller, LLC Timeframe: 2006 - present Although a college education may be a necessity in today’s competitive job market, it is virtually unaffordable for many families across the country. As college tuition increases every year, families very often find themselves unable to meet the financial burden due to a poor savings plan. What often results is a mountain of debt that parents pass on to their children, who in turn find themselves living paycheck to paycheck and delaying major life goals, such as buying a home or having children. To combat this problem of families not properly preparing for the high costs of a college education, and to prevent the resulting debt, AllianceBernstein Investments embarked on a program that would help parents plan, save and invest better for their children’s college educations. Having worked previously with Tiller, LLC, (a New York-based marketing communications firm) on an assets allocation initiative called “The Right Mix,” AllianceBernstein executives quickly enlisted the agency’s support for their new “College Savings Crunch” program. “After we had done the asset allocation program, [we thought], ‘What can you do to help us raise our profile?’ It really started internally to get our own salespeople to start talking about this great product again, and to start talking to our financial advisers about the importance of saving for college,” says Stephanie Giaramita, assistant VP of media relations for AllianceBernstein Investments. Her fellow PR exec and partner on the “College Savings Crunch” program confirmed the fluidity of the relationship, as well as the cause it stood to benefit. “AllianceBernstein is one of the premier managers of the 529 plan [a tax-advantaged investment vehicle designed to encourage saving for the future higher education expenses],” says Rob Densen, president of Tiller, LLC. “And, saving for college is almost like a public policy issue now.” • Provide families with information, tools and resources to help them meet their financial goals for paying for college; and, • Position AllianceBernstein as a thought leader and investor advocate while elevating awareness of the company and its tax-advantaged 529 college savings plan, the CollegeBoundfund. Strategizing was key in the initial stage of the campaign, which began in 2006 and is ongoing. The team designed public opinion polls to better understand the cause and effects of families’ college savings shortfalls. The research findings would become the basis of media and marketing communications materials. HONING GOALS TO Also important was drawENABLE MEASURABLE ing attention to the issue RESULTS through widespread media Early on, the team homed in on coverage of the research, and three main objectives for the leveraging it to educate the initiative: public to meet their college savings goals. • Educate and motivate families As a follow-up to the initial to plan and save effectively for research, AllianceBernstein their children’s college retained the services of market education; research company Matthew Do Your Research—and Do it Well For Rob Densen, whose company, Tiller, LLC, executed the marketing and communications strategy for AllianceBernstein’s College Savings Crunch program, the lessons learned were simple but potent. “The bar is really high to do really smart, original research. I think AllianceBernstein did that. No one had ever before taken a long-term look on the impact of college debt on people’s lives. People look at what the college deficit was but no one looked outward, such as how does it impact your life and life choices. No one had ever looked at it [extensively like this]. This was the first piece of research that did that, and one of the reasons that we [were so successful] with the press was because [the program used] smart, original research. PR News | 3.31.08 AllianceBernstein’s College Savings Crunch supporting materials. Greenwald & Associates to survey more than 1,500 college graduates, ages 21 to 35, both with and without college debt, to understand their post-college lives. The results were eye-opening, revealing the extent that college debt can have on a young adult’s life. According to the survey: • 42% of those with college debt said that the phrase “living paycheck to paycheck” described them very well; • 34% had sold personal possessions to make ends meet; • 44% have delayed buying a house; • 28% have delayed having a children; and, • 32% had move back in with a parent or guardian or live at home longer than expected. It was also discovered that college debt could also harm a college graduate’s ability to pay for their own children’s education as well as save for retirement. These findings became the basis of a story in BusinessWeek, which helped elevate the profile of this program. “Tiller helped us pre-negotiate with BusinessWeek,” says Giaramita. “We did an exclusive with them [during the first phase of the program, which was May 2006].” The timing was hardly coincidental. “We timed it to the Memorial Day weekend for a number of reasons,” recalls Densen. “One, it’s a large news hole, so the press is looking for copy. But it’s also kind of a start of the high school graduation season, so saving for college is now on people’s minds.” In addition to BusinessWeek, Carolyn Bigda, a syndicated columnist for the Chicago Tribune who covers young people in their twenties and thirties, was also approached for media coverage. “We gave her a leg up as well,” says Densen. “Carolyn’s story really had a running head start coverage-wise.” Other media outlets that also covered the initiative’s research on the long-term impact of college debt during the first phase of the College Savings Crunch campaign were the Baltimore Sun, the Orlando Sentinel and, later in the fall of 2006, the Associated Press, which ran an exclusive on the realities and falsehoods of college financing. CRUNCHING NUMBERS In the summer of 2006, the team conducted a bilateral study consisting of 1,538 parents of children under age 18, as well as 200 financial aid administrators. The aim was to illuminate the realities of pay- ing for a college education and pinpoint the misconceptions and mistakes that derail families from college savings plans. What the team found was that even though most parents understand the high costs of college, they still remain illprepared to meet these costs. The average parents of college-bound students think that having $12,000 saved for their children’s education is enough, when in truth, that amount covers less than the current cost of one year at a public college. This survey also revealed other significant findings: • 87% of parents are counting on their children receiving financial aid, such as scholarships and grant money, thus creating a false sense of security; • Nearly three-fourths of parents think their children are likely to have “special or unique” talents that merit scholarships; • Many parents aren’t making college savings a priority as they opt to spend more on dining out, vacations and electronics each year rather than saving for college costs; and, • The majority of parents expect their children to go into debt, thinking that it’s just part of life. GAUGING THE Return on investment The ROI more than fulfilled the program’s chief objec“What we wanted to do was tives. Media coverage citing highlight what parents thought AllianceBernstein’s research, how financial aid would be underscoring the importance available. A lot of them think of saving for college, appeared it’s free money, and they don’t in publications and broadcast realize they have to pay it back,” outlets that had a combined explains Giaramita. “We had circulation/viewership of more this he says/she says dynamic than 120 million. Also, consumers have ordered more than 20,000 educational brochures, and many families have visited the Web site, taking advantage of its resources. The college debt slide rule created for the campaign was cited by syndicated columnist Chuck Jaffe as one of the investment industry’s best educational tools. In addition to informing investors and advisers, the College Savings Crunch initiative built brand recognition of AllianceBernstein, positioning the firm as one that is working to help families meet their financial goals. For both Giaramita and Densen, presenting the research in a unique and fresh way was a demanding task but one they were able to meet with flying colors. “It’s a really crowded area. A lot of parents are looking at college planning,” says Densen. “To come up with a research plan that’s so differentiated— that was the primary challenge. And it was the quality of the research that piqued media interest. It just happened that the timing of what is going on in the news, with lots of people focusing on this issue, was propitious.” “That’s part of the thrilling thing about doing campaigns like this, because you feel like you are contributing to the public discourse,” he continues. “That’s something that as a PR practitioner, you feel really good about.” PRN CONTACTS: Stephanie Giaramita, stephanie. giaramita@alliancebernstein. com; Rob Densen, rdensen@ tillerllc.com Media Director, National Wildlife Federation PRNews PR Job Center with what the parents believed and what the university financial aid administrators who put together this package say the real impact is. So, it was differentiating and unique. We had kind of the myths and realities, which garnered huge press coverage.” To help further the program, a Web site, www.collegesavingscrunch.com, was created to educate consumers about the importance of saving for college, and to teach them about the benefits that can be derived from working with a financial adviser and using a 529 plan. For the next part of the campaign, press kits containing the aforementioned research findings, screen shots from the initiative’s Web site and pithy quotes from AllianceBernstein spokespeople were sent to key media targets, which included personal finance, higher education and parenting reporters. AllianceBernstein also parlayed the research to create a number of tools and resources, which included consumer brochures, a college saving guide and a slide-rule calculator that compares the monthly cost of paying off a student loan versus how much those payments could grow to if they were invested instead. Nation’s largest wildlife conservation organization seeks seasoned advocacy media professional to oversee busy and dynamic Communications shop. Position leads team of six communications managers to establish strategic media positioning for National Wildlife Federation issues including global warming, wildlife habitat, endangered species, public lands, tribal partnerships, and water resources. Works with team to determine best media outreach tactics to generate press coverage in support of organization’s positions with emphasis on policy and legislative initiatives. Qualifications: Knowledge and experience running advocacy media campaigns, preferably on environmental issues. College degree. 8 years progressively responsible experience managing team of media professionals. Track record of successful press campaigns. Hands-on ability to engage top tier media. Prefer non-profit experience on advancing green issues. Knowledgeable on all forms of media outreach including print, broadcast, web and blogs. Position based in Washington, DC with minimal time at organization’s Reston headquarters. Some travel required. Do you hear the call of the wild? Apply at www.nwf.org/careergateway and join us in mobilizing Americans to protect our country’s wildlife. NWF offers a competitive salary, excellent benefits and is an equal opportunity employer committed to workplace diversity. National Wildlife Federation. It starts with people…like you. The place for talent. PR News | 3.31.08 Digital PR Research & Best Practices ▶ Page surveyed are reacting to digital ing initiatives and any other customers. The company’s tactically but lack the necessary underlying circumstances schedule planner posted an planning that is essential in crewhich, if discovered by users explanation, which was met ating a strong digital presence,” without being made explicit with more negative commenCody says in reference to the by marketers, might appear tary. This prompted execs to findings. “It is essential to learn dishonest,” says Sam Ford, change their inventory policy. from established best practices project manager for the The change was explained in and the pitfalls of prior misMassachusetts Institute of another post, and customtakes.” Technology’s Convergence ers had the satisfaction of While the pitfalls of prior Culture Consortium Program knowing that their voice was mistakes are unique to each in Comparative Media heard—and answered. organization (and, hopefully, Studies. few and far between), there • Hire a babysitter: Every are a number of universal best • Think dialogue, not digital platform in your practices: monologue: Allow negacommunications portfolio tive comments to be posted, should have an owner who • Transparency is critical: and address them with a is responsible for updating “Anyone marketing in the follow-up explanation. In content, managing comdigital space must take Southwest’s case, the airline’s mentary and monitoring great care to be completely short booking window consumers’ reactions. The open about their marketincited complaints from more platforms you have, the LEARNING THE FOUR Cs At the American Association of Advertising Agencies (AAAA) conference in Orlando, held March 5-7, 2008, the main theme was “Digital Changes Everything.” For keynote speaker Anne Sweeney, co-chair of Disney Media Networks and president of Disney-ABC Television Group, content itself is still the starting point. She repeatedly drove home the point in her presentation that it’s content, not just digital, that changes everything. “[Content] drives revenues, platforms, our brands and your messages,” she said. “We’ve led the way into the digital revolution with great shows in great ways. We see huge potential on digital platforms because Disney Media Network reaches every media demographic.” Sweeney offered four best practices—the “Four Cs,” as she called them—for media practitioners to live by in the digital age. They can also be easily applied for PR professionals. • Consumers Come First: Pay attention to your target audience, study the demographics: Who are they? From there, create a campaign that reflects their interests and goals. For Sweeney, “what consumers want is more TV at their fingertips and at their schedule.” • Content Drives Everything: Everything starts with content. It’s a maxim that’s been so oft repeated it’s starting to become a cliché, noted Sweeney. Content drives consumers to media channels that can effectively convey that content. The demand for it is constant. The challenge lies in leveraging that demand to forge stronger relationships with consumers. In Sweeney’s case, because ABC/Disney had the content, they were able to “move easily into the digital space,” as evidenced by their newly launched video platform, Stage 9 Digital Media, which will present short videos or series, such as the Trenches sci-fi thriller. • Creativity Is Everything: In a market as cluttered as entertainment, it’s important to be more creative than ever to break through, said Sweeney. Remember: Creativity is key when communicating messages to the public and making them stand out. Are there any components in your campaign that could handle a bit of tweaking to make it more compelling for coverage? • Commit to Change: In Sweeney’s world, there are three constants: the demand for content; partnership between TV and advertising; and change. But the entertainment business—and society—have been radically altered since the dawn of the digital age. To evolve, it’s imperative to not adhere to the old rules. Change is a challenge, but it’s also critical. “Status quo isn’t a viable strategy,” said Sweeney. In the PR vernacular, this can be translated to mean the following: Don’t be afraid to take risks when working on a PR plan or campaign. It’s when you’re afraid to take that step into the unknown that you remain stuck in neutral. And, in PR, that’s a sure sign of death. PR News | 3.31.08 more supervisors you need; dumping the entire load on one person will lead to insufficient updates, unanswered comments and unaddressed complaints. • Let it go: As Berg suggested, it’s time to let go of your control issues, because consumers are going online and talking whether or not you’re there. “The spread of online video cannot be tightly controlled by the company if you want it to be successful,” Cody says. ▶ Lead, follow or get out of the way: The third barrier—a lack of leadership among communicators themselves—might be the most difficult to remedy, as it involves changing characteristics that have been long imbedded into professionals’ very beings. But sometimes leadership actually means getting out of the way and letting others do the work for you. Case in point: When an online video demonstrating the geyser-like chemical reaction that occurred when a Mentos breath mint was dropped into a two-liter bottle of Diet Coke surfaced, it went viral instantly. Mentos executives relished the free positive publicity, but Diet Coke representatives refused to stand behind the video, missing out on a golden opportunity to enhance the brand. “Pay close attention to how your product is being used by others, but don’t let a prohibitionist stance kill a good branding opportunity that is usergenerated,” Cody says. PRN CONTACTS: Steve Cody, scody@peppercom. com; Paula Berg, paula. [email protected]; Sam Ford, [email protected] Recession-Proof Investor Relations ▶ Page audience—so said Dominic Jones, a principal of Clarity! Communications of Canada Inc., and the founder of IR Web Report, in a conversation with Shel Holtz, principal of Holtz Communication + Technology (as documented in Jones’ IR Web Report blog): “The root of transparency is empathy. Transparent companies are those that understand their audiences, who are able to relate to the people they are talking to because they are good listeners.” Likewise, understanding and transparency imply credibility, which is, of course, essential. “As recession becomes more of a reality in the market, companies, of course, should be mindful of conservative fiscal policies, and communications and investor relations professionals should ensure that investors understand that this is the corporate attitude,” says Ferris. “Adopting a ‘doing what you say you’re going to do’ attitude is one of the best ways to enhance relationships with investors and maintain their trust. Transparency is the watchword for credibility.” ▶ Get aligned. In the same vein as transparency, communications professionals must aid the alignment between investor and management expectations, as any incongruence would imply disaster. “[A risk is] misaligned expectations between management and investors, and a lack of a ‘license to operate,’ which I think is a major risk for multinational corporations, particularly those in industries sensitive to public sentiment,” Jones said. Regarding the increase in multinational organizations, Ferris says, “Foreign compa- nies, newer to the U.S. capital market, have a lot to learn in [the area of investor relations], but also have a lot of counselors standing in the wings to guide them.” The key for public relations executives, then, is being these counselors, and the first step begins now. ▶ It’s an online world, after all. Annual reports are the backbone of investor relations and shareholder communications, as they disseminate financial statements to share- holders and other constituents. With the push to go online, many annual reports have taken on a digital format, and PR execs are integral to making this transition in compliance with new requirements. Beyond this, though, is the growing presence of online activist shareholders, or those who use their equity stake in a corporation to put public pressure on its management. This lends itself to dissident relations between companies and their shareholders, and in turn requires attention on the part of communications professionals. The sidebar below offers tips for managing online activist shareholders in the context of one company’s failed attempt to overlook the influence of one individual who was armed with nothing more than an Internet connection...and 96 shares. PRN CONTACTS: Shabbir Safdar, ssafdar@ virilion.com; Jeff Connaughton, 202.457.1110; Robert Ferris, [email protected] INVESTOR COMMUNICATIONS STRATEGIES IN THE AGE OF ONLINE ACTIVIST SHAREHOLDERS For decades, corporate management held the distinct advantage in their relations with dissident shareholders, who rarely could successfully challenge management plans. In the last few years, however, significant developments have upset this balance; now, corporate communications and investor relations strategies must adapt to a new age of online activist shareholders who—whether small and poorly funded or powerful and wealthy—are empowered by the Internet, zero-cost publishing and Web-based communications strategies. One recent development is the SEC’s new rules that permit the electronic distribution of proxy materials, lowering the cost for anyone to run a proxy fight without the high cost of direct mail. The other developments are signified by the savvy techniques Walter Hewlett used unsuccessfully against the HP-Compaq merger in 2002, and by the more recent fight Eric Jackson has taken against Yahoo. In 2007, activist shareholder Jackson held a mere 96 shares of Yahoo; he had a desire to see the value of his stake rise. However, he was dissatisfied by the company’s lack of requirements for directors to buy stock. He relentlessly published his criticisms on his blog and on YouTube, and put his strategic plan (“Plan B For Yahoo!”) up on a wiki. Months later, he had accumulated a huge stack of press clippings, not to mention the satisfaction of seeing many of his suggestions reluctantly taken by a battered Yahoo. The Internet and the SEC’s new rules on the use of electronic proxies have changed the entire landscape for investor communications. To deal with these new changes, corporations should consider the following strategies: 1.Monitor activist shareholders and online sentiment. A critic may own just a single share, but if a company ignores him/her and the arguments he/she makes resonate with the market as a whole, that critic can become a spokesperson whose influence is too big to manage. 2.Engage the activists carefully. Yahoo should have rebuffed Jackson’s arguments in writing. Instead it brought him in for a meeting with executives, thus giving him an audience, and then refused to budge on any single point. This in turn made Jackson an even more motivated critic with a global voice. 3.Use traditional political campaign techniques to move opinion. Once an investor sentiment problem reaches a critical mass, corporations have no choice but to meet it with the time-tested techniques of political campaign communications, including setting the agenda, amplifying supporter voices and rapid response. This sidebar was written by Shabbir Imber Safdar and Jeff Connaughton, who were part of a crossagency team that provided strategic and digital communications consultation to Hewlett-Packard during the proxy fight over the Compaq acquisition. Safdar is the founder of Virilion Inc.; Connaughton is vice chairman of Quinn Gillespie & Associates. You can read more about Walter Hewlitt and a detailed case study about Eric Jackson’s campaign against Yahoo and the implications for investor communications at www.prnewsonline.com. PR News | 3.31.08 ▶ Tip Sheet Optimizing Speaking Engagements: 7 Ways to Build a Corporate Speakers Bureau Speaker Programs Ask any VP of corporate communications what she/he is doing to secure executive speaking opportunities, and the overwhelming response will be “not enough.” A savvy communications executive knows the benefits of a successful speakers program: brand development, executive visibility, product/service promotion, thought leadership and lead generation. One speech can reach an enormous and valuable target audience of clients, prospects, employees, media, business partners and analysts. The audience has chosen to attend the conference and your presentation, so they are ready and willing to listen to your experts and your messages. The conference environment is conducive to networking and deal making. And you can’t beat the price. These coveted sales, marketing and PR benefits can be yours for the mere price of a plane ticket. Yet many companies are frustrated with the process and the results of their existing speaking programs. Why? In our 20-plus years of experience creating and managing speakers bureau programs, we’ve found the root causes to be a lack of planning and a shortage of resources. Typically, companies assign a junior-level PR or marketing person to establish and manage a speakers bureau program with no strategic plan and no executive support. If this sounds familiar, know that there are a few simple things you can do to build your speakers bureau program into a highly visible and successful part of your marketing and communications strategy. 1. Create a game plan: Invest the time and effort to determine clear, attainable goals for your program. In addition to increasing brand awareness, you may want to promote a new leadership team or support the launch of a new product. Creating a program based on these goals will not only help you secure management buyin, it will enable you to plan, prioritize and execute more effectively. You also need to work closely with your management team and subject matter experts (SMEs) to determine the most charismatic, effective and willing speakers. Make sure this conversation also addresses their expectations for the program. You need to understand what they want from the program and be able to adjust those expectations accordingly. presentations and spend time building relationships with conference organizers. 4. Invest in your speaker program: Like other key components of your PR and marketing programs, a speakers bureau requires investments of time, money and resources to be successful. It is critical that you dedicate an experienced professional or team (internal or external to your company) to manage all aspects of the program—from abstract development and executive relations to logistics and follow-up. And be ready to invest significant time and energy in doing it right. Follow up regularly on submissions, speaking frequently with show organizers to build relationships that increase your chances of placement and help you identify upcoming opportunities. By Lori Zetlin & Jeanne Tee tunities—brochures, Web sites, press releases and direct mail campaigns. Leverage the conference location to conduct meetings with clients, press, partners and employment candidates. 7. Did we mention follow-up? After the speech is delivered and the conference has come to a close, there is still work to be done. Look for ways to repurpose the speech for other conferences and other audiences. Share the speech and its impact with your employees, press and analyst contacts, clients and business partners to reinforce your key messages and boost 2. Prioritize, prioritize, pribrand awareness and thought oritize: With an ever-growing leadership. list of business and industry Conduct an assessment of conferences, it is critical to prieach speaking engagement. oritize your efforts. Know your Track attendance numbers and target audience and your busi5. Prepare before your pitch: audience profiles, and solicit ness goals and be true to them Take the time to create a library feedback from both the speaker both when researching confer- of speaker biographies, head and the conference organizer. ences and pursuing speaking shots and noncommercial This will help in determining opportunities. Consider current abstracts on timely and comwhether or not you should and past speakers, location and pelling topics—this last piece pursue a speaking opportunity venue, attendee profiles and can make or break your placenext year. other important criteria when ment chances. There’s nothbuilding a focused target list. ing worse than identifying an In an increasingly crowded opportunity at the right event marketplace, a strategic and 3. Know the realities: and then scrambling to meet well-managed speakers bureau Successful speaker placethe submission requirements. program can help your comment is a difficult pursuit, so Having these critical pieces pany reach the right audience be ready for the challenges. ready will increase your abilwith the right messages. But, Placement timelines are long ity to respond to opportunities as with other key marketing (six-to-nine-month lead time), quickly. programs, you have to invest so start early and be willing the necessary time, money and to track an opportunity for 6. Leverage your successes: executive support to realize the months. Competition is stiff The speech itself will come and tremendous benefits a speaking and sponsors get many of the go in less than an hour, and program can yield. PRN top speaking slots (the unforwhile the impact is significant, tunate “pay to play” system). promoting your speaker sucCONTACTS: You can work around this sys- cesses and taking advantage of Lori Zetlin and Jeanne Tee tem, but it takes perseverance ancillary business opportuniare managing partners of S3, and creativity. Select speakers ties can help you increase the Strategic Speaker Services, and topics that are compelling benefits of each engagement. Inc. They can be reached at and noncommercial, enlist Participate in all available [email protected] and clients for joint case-study conference marketing [email protected]. PR News | 3.31.08
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