How Social Media is Impacting Public Relations and Why You Should Care

I just returned from an interesting and informative presentation on how social media is impacting journalism and public relations and wanted to share some insights with you. The program, titled "Industries In Flux: Media and Public Relations and the Impact of Social Media" was sponsored by PR Newswire.

The presentation featured a panel discussion from online editors at seattletimes.com, msnbc.com and techflash.com, as well as a senior social media director from Waggener Edstrom, a large PR firm. The panel discussion addressed the impact of social media on both breaking news and more traditional corporate and product public relations activities.

It was interesting to hear that while all three journalists shared some concerns about the potential loss of journalistic integrity and lack of oversight that social media brings to the dissemination of news, they all admitted its potential value to their organizations. As a result, all were incorporating social media tools into their everyday workflow, and continuing to explore new ways to use these tools to increase the interaction with their online readers. I was especially intrigued by the discussion on Google Wave, a new collaboration tool now in Beta test that looks like it has a lot of potential uses as an information-sharing tool.

It was also interesting to hear these journalists discuss the challenges and opportunities for social media as a vehicle for traditional public relations activities. The explosion of traditional and multi-media news release options comes at a time when the news industry is shrinking, which places a greater burden on both sides to be noticed and gain earned media time. When asked how to break through the clutter, or even to discern how to identify who to contact, one panelist wryly advised cyber-stalking through Twitter to begin a conversation with a journalist that might lead to their picking up a story.

The Waggener Edstrom exec offered an additional way to use social media for public relations -- do it yourself . While he was careful not to advocate bypassing the media for important news events, he related an example of shooting camera phone video of the opening of the Microsoft retail store in Phoenix and sending that out to the news media as well as directly to the public.

He knew that the opening of a single retail store was not a major enough event to warrant national coverage, however he wanted to generate as much publicity for his client as he could. So he spontaneously videoed the opening events and in-store activity.

Interestingly, two of the panelists had picked up his "down and dirty" video and ran with it on the assumption that it did not look "slick and doctored" and was therefore more likely to reflect true news value for their online readers. The general consensus of the panel was that social media offered tremendous upside as a public relations vehicle when properly utilized.

So what does this mean for marketers and their agencies?

First, I believe the increasing impact of social media on news and public relations is yet another confirmation for marketers that social media can play an important role in your marketing program. If you aren't embracing social media yet you should at least be experimenting with how to incorporate these new tools into your branding and sales program.

Second, as empowered consumers expand their use of social media as a replacement for more traditional media, it is imperative that marketers monitor the conversation to gauge marketplace reaction and trending discussions on their brand and category. Social media can be both a blessing and a curse as potentially harmful misinformation may be disseminated about a company or a brand. One example that was given during the panel discussion concerned a misquote by a reporter from Reuters during a Microsoft press conference. The misquote concerned the prospect of future layoffs and was immediately identified as potentially damaging to morale by an alert employee.

Simultaneous corrections were broadcast by Microsoft to multiple news outlets and online communities at Microsoft as well as to Reuters. A correction was then sent out by Reuters. The total time from the misquote hitting the wires to a correction was only 18 minutes. When you compare that response with the 72 hours it reportedly took Domino's executives to respond to a mocked-up video showing employee spitting on the pizzas before boxing and delivery, you can readily see the value of social media for crisis communications.

The use of social media as a public relations and media relations tool has implications for agencies as well. Of course, any good PR agency should be looking for ways to use social media for their clients in today's digital world. But there are also implications for understanding how to use social media as a business development tool. Clients want, and need, guidance on how to take advantage of social media and other new technology tools. By sharing success stories like the Microsoft misquote, agencies can help their clients understand and accept the value of social media for their brand marketing efforts. All agencies, not just PR specialists, would be smart to look for opportunities to discuss and recommend social media to clients and prospects.

An Interesting Story on the Power of Twitter

Since my last post on using Twitter as a business development tool, I've had several emails from friends who continue to question the staying power of Twitter. They argue that Twitter is a short term phenomenon with limited value for marketers and one that will fade out quickly.

Well, I can't say how long Twitter will be "the next big thing", but I can tell you that today, it is a very big thing. With over 32 million users -- up 700% over the past year according to eMarketer -- Twitter is a legitimate social networking tool that reaches a lot of people in a short period of time. The power and potential of this new communication tool was reinforced last week when I heard a presentation on Twitter and Social Media from Warren Sukernek, Director of Content at Radian 6.

Warren related his own personal story about the power of Twitter and how it helped him to land a new job. Last December, Warren was laid off. He had been actively engaged with Twitter for some time, so he sent this tweet

Friends, I've just been laid off. As a digital strategist, I would appreciate any leads or opportunities that you would be aware of. THX.

That afternoon, he got 250 responses that resulted in 20 interviews and 4 job offers. ALL IN 3 WEEKS FROM JUST ONE TWEET.

Warren's incredible story was featured locally on KING-5 TV, and later picked up by Fortune, The New York Post, The Wall Street Journal and several websites. His story is a reinforcement to me of the power of social networking.

Warren's presentation was an inside look at how to use Twitter as part of a total Social Media Toolbox to build your personal or company brand and to gain awareness and credibility among a wide audience. But he cautioned everyone that "you can't just join Twitter and tweet. You've got to build a network before you need it".

Warren's story is just one of many social networking success stories. That's why I've become an advocate of using Twitter as part of your business development strategy. You should be extending your reach, building your credibility, connecting with thought-leaders, sharing content and engaging in the conversation through blogs, white papers, and Twitter. Whether Twitter is long term isn't relevant. It can be a powerhouse today.

I encourage you to view Warren's presentation on SlideShare at http://tinyurl.com/yezlecg. You'll get a lot of good ideas on how to get more value out of social media tools. And maybe, just maybe, a new way to build business for your agency.

Maybe TV Advertising Is Not As Dead As We Think

With the rise in media and marketer interest in social media and other new technology and media tools, many industry observers have officially signed the death certificate for traditional advertising. But to paraphrase Mark Twain "reports of television advertising's death have been greatly exaggerated".

A February report from Association of National Advertisers and Forrester was featured in Ad Age and The Huffington Post with the cryptic headline "TV Ads Losing Their Effectiveness". That study was based on a survey of marketers where 50 percent said they believed television ads have become less effective due to the growth in DVR penetration and usage.

But a new study released by American Research Foundation begs to differ with those assumptions. The study, titled "Empirical Evidence of TV Advertising Effectiveness", analyzed 388 case studies from seven different research agencies and concludes that TV ads are still effective, if not more so. This ARF study is only one part of a major project currently underway at The Wharton School on "The Future of Advertising".

Among the conclusions to be released in the upcoming issue of ARF's Journal of Advertising Research are that threats to TV advertising posed by DVR's and clutter are overblown; print and online advertising are effective; and word-of-mouth about brands are largely driven by paid media ads.

According to ARF Chief Research Officer Joel Robinson, "we're trying to replace assumptions and mythology with factual evidence from independent research". He went on to support the ARF's objective viewpoint by reinforcing that "we are not a lobbying organization for any medium . . . we are on the side of truth".

Much of what these studies show is the need for more research, specifically on how to allocate funds among media and the full implications of growing consumer use of search and social networks, said Jerry Wind, Lauder Professor of Marketing at Wharton. "The major concern about the decreased impact of television as an advertising medium is unfounded, but there are still a lot of things we don't know.

Look for more updates on this and other media effectiveness research as they are published. In the meantime, what do you think? Will this new batch of research change your thinking on what to recommend to your clients?

Are You Taking Advantage of Online Video as an Advertising Tool?

Online video is one of the fastest growing advertising channels in the U.S., and several recent studies indicate that online video will continue to rise dramatically relative to other ad channels over the next few years. As an advertising tool, online video is expected to dramatically outpace growth in search, display ads and rich media.

The Pew Internet & American Life Project's major report on online video last year confirmed that the growing adoption of broadband has resulted in a dramatic increase in viewing online video. Fifty-seven percent of online adults have used the internet to watch or download video, and 19% say they watch some form of video every day. This number grows even more when respondents are qualified by connection speed. Three-quarters of broadband users (74%) who enjoy high-speed connections at both home and work watch or download video online.

While YouTube leads the way in online video adoption by a wide margin, many advertisers have been hesitant to use it as an advertising vehicle. National advertisers and agency heads have said that the user-generated content is too edgy or unprofessional to be considered a serious advertising medium, but that may be changing. Google CEO Eric Schmidt has admitted that YouTube has fallen short in ad revenues, but he has pledged to make monetizing the site one of Google's top priorities. YouTube has recently started airing long form independent films, which should raise its professionalism perception to prospective advertisers and agencies. Media analyst Mark Glazer predicts that “with the brains behind Google trying to solve the advertising problem at YouTube, there's a good chance they will find a breakthrough format or idea.”

We are beginning to see dramatic growth in viewership of premium content sites like Hulu, ESPN, Nickelodeon, CNN and ABC. Hulu now claims to have run 88 million videos. This is only a fraction compared to YouTube’s 4.2 billion, but many analysts suggest that Hulu will be the more successful business since Hulu can sell advertising in 100% of its inventory. According to one estimate, Hulu could generate $90 million in revenue in its first year, roughly the same U.S. revenue as YouTube.

Almost all industry analysts agree that professional-quality online-video content is particularly promising because it's what ad agencies, media agencies and media companies already know. Clients and agencies will feel more comfortable developing new content or re-purposing existing television content for the web.

It is particularly interesting to note that local retailers and other small and medium-sized businesses are beginning to use video to promote their services. Restaurants, legal practices and specialty retail shops are leading the charge, but local tourism attractions and financial services won’t be far behind. Their use is sparking the formation of yet another fast growth industry that specializes in online video production. Two startups to watch closely are http://www.pixelfish.com/ and http://www.turnhere.com/ . These sites offer high-impact, broadcast-quality video that is easy and affordable for even the smallest advertiser, and this is a natural area for local, independents and free-lancers to develop a new revenue stream.

Online video advertising is fast approaching a point to become a natural adjunct to any broadcast advertiser's media plan, as well as a lower entry cost medium for those who can’t afford traditional television. If you’re not using online video, it would definitely be in your best interest to evaluate its potential for your business.

You Are What You Eat - Sell the Steak, not the Sizzle.

Is anyone out there as disgusted as I am with the current state of political advertising? Here in Washington state, we have been bombarded with commercials "against" candidates, not for candidates. Who is telling the truth? Who do you believe? Why don't candidates tell us what they stand for, not why the other candidate is someone you shouldn't vote for?

It's no wonder that government and politicians are so mistrusted. They aren't doing anything to earn our trust.

Is there an end in sight to this madness? Maybe so, if you can believe John Zogby, author of a wonderful new book titled The Way We'll Be. John Zogby is well known as a political analyst based on his many political surveys, but he moves into a new area in this book to provide analysis and insight on consumer attitudes by age group that every marketer needs to read.

Zogby has subtitled his book "The Transformation of the American Dream" and talks a lot about how social values and attitudes are changing and will influence every aspect of our lives -- from politics to religion to global networking. He identifies attitudes and trends among major demographic groups by age, and ties each of his conclusions and insights into its possible impact on marketing.

One of the more interesting insights relating to marketing is the growing need and demand for authenticity (something politicians haven't figured out yet). To paraphrase from the book, "Reality doesn't bite. It's real, and people are demanding it. Consumers want to be respected, so they are demanding truth. Don't lie or make ridiculous claims. Remember, everyone today has a bullshit detector. In a world dominated by sizzle, it's all about the steak. Sell the steak."

I recommend that you take some time to read this book. And I hope politicians will, as well. Maybe in four years we will see more people trying to "sell the steak".

Looking Ahead: How the Changing Social Landscape is Affecting Marketing

We know that technology continues to encroach on every aspect of modern life. Innovations like Bluetooth, social marketing, blogs and mobile marketing are no longer just being used by the young technorati; they are being used by almost everyone, regardless of age and technology comfort and are rapidly becoming a part of the mainstream of American life. The Blackberry is an essential business tool, regardless of your age. Snapfish allows me to share photos of my children and grandchildren with my 80+ year old mother in Tennessee. The recent iPhone introduction is another example of the mass appeal that new technology can generate.

Perhaps just as important for marketers is to recognize that changing social behaviors, attitudes and mores are also affecting marketing. Here are ten things I believe will have major impact on how we market in the future.

1. Corporate greed is not good. In a world of increasing corporate transparency, consumers will reject companies and their products if they do not live up to proper ethical standards. Marketers need to examine every aspect of their business, not just the boardroom. Not every brand is as strong as Nike, and able to withstand the negative publicity of child labor exploitation.

2. In a multiple-choice world, you must differentiate or die. Jack Trout was right on target when he said that in today’s ultra-competitive world there are so many choices that companies will be hard pressed to survive without a point of difference. The average supermarket has over 45,000 branded items. There are now over 3,000 brands of bottled water. Huh?

3. To blog or not to blog, that is the question. Social networking is a fact that cannot be ignored. But companies must be careful when using tools like blogs, vlogs and Podcasts or face the wrath of a networked audience that can love you one minute and hate you the next. Some forward-thinking companies have created a new executive position of Blog Monitor to be able to respond quickly to new issues as they arise, or to correct misinformation that can damage a company unfairly.

4. “Word of mouth” can no longer be a happenstance event but rather an important part of an integrated marketing program. In today’s world, “word of mouth” can travel around the world instantly via the web. Viral marketing efforts like the Subservient Chicken and Lonelygirl15 have gotten millions of exposures for little to no cost. Social marketing and Web 2.0 will impact your business, whether you want it to or not. The next wave of “word of mouth” will be user-generated reviews of everything from restaurants to shopping to hair salons. One disappointing entrée or a surly waiter has the potential to ruin a restaurant’s reputation. Is that scary, or what?

5. Video messaging still rules, it’s just the delivery methods that are changing. Everything we learned in marketing class about sight, sound and motion still holds true. It is unquestionably the most powerful way to inform and persuade. But the continued fragmentation and decline in viewership of traditional television is being replaced by on-line video. We can’t all afford to back something as ambitious as Bud TV, but keep a close watch on YouTube as the next mass medium. Politicians have certainly jumped on that bandwagon. Are you one of the 2 million plus viewers of Obama Girl?

6. It’s not easy being green. Kermit was right. But if you aren’t looking for ways to include some form of green marketing or sustainability (the next great marketing buzzword), then you will be left behind, choking on ethanol exhaust fumes. Wal-Mart is touting itself as the world's largest buyer of organic cotton, fair trade coffee, and energy-efficient light bulbs. Companies across America are looking for ways to “green” their products, their manufacturing, and their distribution processes. Let’s face it. When a slide show can win an Oscar, it must be real. Since the original Earth Day in 1967, marketing periodicals have been saying that green marketing was the next big thing. It wasn’t then. It is now. Better get with the program.

7. Go organic. Go natural. Go anything but artificial. Organic foods. Organic skin care. Organic pants. Organic pants??? That’s right. A recent TV spot for Wal-Mart featured an on-camera spokesperson talking about her new organic pajama pants. The idea behind this spot shows just how deeply rooted the organic movement has become. It’s all part of the get real, get healthy, and environmentally-conscious world of today, not tomorrow.

8. CRM are the three most important letters you should know. Customer relationship management should be part of every marketing plan. We have always known that it is more expensive to recruit new customers than it is to retain existing ones. With ever-increasing expectations, and lower tolerance levels, consumers are demanding instant gratification at every turn. Retailers like Nordstrom are a great example of the power of being customer-centric – they continue to prove that people will pay more for better service.

9. East or west, home is best. A global economy, mass production and outsourcing, are contributing to a growing backlash against imported products and services that are putting American workers out of business. Many consumers are willing to pay more to get local goods that are presumably made with more care. With the recent product contamination scares from China, we may even see a resurgence of Made in America.

10. The era of “one size fits all” marketing is over, and niche marketing is the future of our business. If you haven’t read The Long Tail by Chris Anderson, buy it today. It’s one of the most thought-provoking books I have read in a long time. It makes a strong case for an entirely new economic model for business that is being created through digital technology. The Internet opens a new world of possibilities for niche products that never existed before and the primary economic value of the Internet to consumers comes from providing access to products that might never have been made available in a mass market economy. In a digital world where everything is available to everyone, niche marketing is the natural and inevitable wave of the future.

I’m sure you can find many other issues, trends, and social behaviors in your own business categories. The important thing to remember is to keep looking ahead if you don’t want to get left behind.