Has the PR industry reinvented itself post recession?

March 12th, 2010

In September 2008, on the day that the European Commission officially announced that the UK would fall into recession, I wrote a blog post entitled “The role of PR within a recession” offering some predictions on what I thought this would mean for the PR industry. The post sparked a fair amount of debate, and so I thought it would be interesting to follow-up this post now that we’ve come out the other side, to see how close or far off the mark I was.

1. The PR industry will reinvent itself

I made the prediction that “a recession will force PR consultancies to get their houses in order, and evolve or die”. Reading it back that sounds a bit harsh, and thankfully I don’t think too many ended up biting the dust…but a fair few have certainly been born.

I imagined PR agencies would “evolve” by quickly bringing their teams up to speed on social media, to ensure they were reaching both online and offline audiences in their consultancy. However, within the UK market there has been a growing trend for PR agencies to set up separate social media or digital PR consultancies - a few examples would be Hotwire launching 33 Digital, Next Fifteen setting up Project Metal and Fishburn Hedges opening up Brew. The list of internal social media teams at established PR agencies is also continually growing.

Moving forward, I think we will see more consolidation happening within this space as large PR agencies look to snap up smaller, specialist social media agencies, in order to accelerate their social media growth.

2. The profiles of individual PRs will become more important

The trend towards ‘Personalised Relations’ that we were seeing at the end of 2008 has undoubtedly continued. However Twitter has exploded exponentially within the social media PR sector enabling more PR folks to “become their own hubs” in the words of Jeremiah Owyang. Competition for share of voice has become fiercer, making it harder to spot the experienced social media consultants from those who are doing a good job of talking about it.

3. PR will no longer be a beauty parade

I would argue that the definition of ‘beauty’ has evolved within the UK PR industry. Today it is not so much about the company name, but much more about the agency’s online reputation and profile. We are increasingly seeing evidence of brands shortlisting and selecting agencies based on their social media assets, rather than the kudos of going with a big global agency. This is a positive trend that I hope will continue.

4. New business will be won/put to tender in less orthodox ways

From what we are seeing at Liberate Media, and hearing about among our peers, this is definitely becoming the case. There is still some nervousness around selecting a social media PR agency, and brands seem more comfortable meeting with agencies that have been recommended within their network of contacts, than taking the impersonal approach of putting a pitch out to tender. We are encountering the fierce pitch process less and less, and instead being given the change to demonstrate our knowledge and creativity within a less confined manner.

5. CEOs will need to prioritise PR more highly

This final prediction is difficult to assess, as I can only offer personal experience. It would be interesting to hear whether other agencies have found this to be the case.

At Liberate Media we did see CEOs and senior management dedicating more time to PR, and taking greater interest in social media. Our training services in particular were called on increasingly as CEOs wanted to upskill and take a more active role in their social media PR efforts.

** These are just my humble opinions. It would be great to hear back from people who commented on my original post, and others, on their experience of the above predictions.

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Twitter stats don’t tell the whole story

March 11th, 2010

As you might have seen, an interesting Twitter stat has been doing the rounds recently: ‘21% of Twitter users are active users’ ,a stat that you’re likely to see regularly from now on.

This originated from the Barracuda Labs 2009 Annual Report, which was released earlier this week, revealing data from Twitter trends and tracking, as well as Web threats and trends, and email spam and viruses. The report is also available at the company’s portal.

The study looked at around 19 million Twitter accounts, and started with one assumption: an active or “True” Twitter user has at least 10 followers, follows at least 10 people, and had tweeted at least 10 times.

Looking back, the data shows interesting usage trends and reveals that 26% of Twitter users had 10 followers or more by December 2009, while only 40% were following 10 people or more, in fact 51% of users were following less than five people.

The report also confirms that 34% of Twitter users hadn’t tweeted once, while 73% had tweeted less than 10 times. That means nearly all of the tweets on the social network were coming from about 1/4 of the user base, and it is these users that the report refers to as ‘power users’.

So, are these revealing stats going to spell the end of the myth that Twitter is going to be the new communications platform for all? Hopefully, because i doubt even the quarter of Twitter users that are using it consistently thought it was going ever to be that.

If you’re not trying to make money out of Twitter, the importance attached to the amount or frequency of Twitter’s usage should not be as important as one might first assume.

The most important element of Twitter is the conversation, not the brand, not the technology and not the potential, but the conversation. That conversation doesn’t just happen on Twitter, it happens across many social networks, messaging platforms, via SMS, even in email and person-to-person, and Twitter allows part of that conversation, bringing communities together that choose to share information with each other.

If Twitter stopped tomorrow, the conversation would still continue, and my bet is the majority of Twitter’s ‘power user’ base, that Tweet the majority of the conversation, use other platforms to continue the conversation in other ways.

So is this the end of Twitter and the Twitter success story? No, Twitter is a massive success story, but it has been blown out of proportion in some ways. It is, as the research says, a valuable tool for ‘power users’, but in the world of social media we all have freedom of choice, we all communicate in different ways and some of us will find our preferred community on Twitter while others will look elsewhere for a better fit in terms of relevance. However, the one common theme is the conversation, and the ability to share; knowledge, content, news, excitement, sorrow, whatever.

We’ve seen the ‘no-one reads blogs’ headlines before, which again i don’t believe to be the case. Of the millions of blogs only a small percentage are useful and interesting, and those blogs are well utilised, the others quite simply are not. Does that make blogs any less useful though?

What we are seeing is Twitter maturing, as the study says, Twitter recently reported it had reached approximately 50 million tweets per day.

In the beginning of 2008, Twitter was growing approximately 0.31% per month. By November 2008, that growth increased to 1.95% per month.

After December 2008, Twitter’s growth exploded from nearly 2% per month, rising to approximately 4% per month, before finally peaking at nearly 20% per month in April 2009. Growth appears to have normalised, dropping back to 0.34% in December 2009.

We can also see more evidence of Twitter users finding their feet. A full 79% of users had less than ten tweets in June 2009, but that number dropped to 73% by December. 80% of users had less than 10 followers in June 2009, but that percentage dropped to 74% by December.

So, little by little, Twitter is finding its place in the role of conversation. It’s not going to change the way we communicate radically, but it is helping us to communicate more effectively, with those in our chosen community.

Posted in Blog, Blogging, Content, Digital communications, Digital media, Journalism, PR, Social media, Social networking, Trends and research, Useful resources | 1 Comment »

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Developing a social strategy

March 3rd, 2010

As you may have seen, the team at Altimeter Group have been holding a series of social media-focused webinars titled:

1. Understand Your Customers’ Social behaviours

2. Developing A Social Strategy

3. Social Strategy: Getting Your Company Ready (Taking place April 14th)

The second Webinar, focused on social strategy, took place last week, and the slideshow deck is available below.

For anyone interested in social media and communicating in a social environment this is a must read. The  Altimeter Group has carried on the excellent work of the likes of Charlene Li and Jeremiah Owyang, as well as many others, who have been offering their insight on the area going back to their days at Forrester Research and earlier.

You may be thinking; ‘oh no not another social media presentation’, but as you will see by the content, it makes sense to take notice of these suggestions. Why? Well, not only because you’ll probably see these points repeated in many agency presentations in the future, but because they make sense, and aren’t focused on one particular sales pitch, other than the obvious consultancy sell.

The first point that grabbed me is a point we’ve been making to clients for many years; social media isn’t about the technology, it’s about the conversation. The technology is merely a conduit for the conversation, and to be fair a conversation starter, but too many people are hung up on this technology or that service, without fully grasping the nature of social communications.

I won’t go on, as the slides will tell their own story, but if you’re looking for a presentation that gives you a full overview of the issues that you need to consider when developing a social media strategy, this should go to the top of your list.

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Don’t write TV off as a news medium yet

February 19th, 2010

I recently watched the film Frost/Nixon which is a dramatic retelling of the post-Watergate television interviews between British talk-show host David Frost and former president Richard Nixon.

As a quick bit of background for those who aren’t familiar with the Nixon Interviews, in 1977 (three years after his resignation), Nixon granted British journalist Sir David Frost an exclusive series of interviews for which he was paid $600,000. The interviews began on March 23, 1977 and lasted 12 days. They were taped for two hours a day, on Mondays, Wednesdays and Fridays, for a total of 28 hours and 45 minutes. The interviews were were edited into four programs, each 90 minutes long.

The premiere episode drew 45 million viewers, the largest television audience for a political interview in history — a record which still stands today.

For those who haven’t seen the film, it is a brilliant demonstration of the power of TV as a news medium. No other media would have been able to capture the “cascade of candor”, as Frost termed it, when Nixon said the line: “Well, when the president does it, that means that it is not illegal”, effectively giving the US public the admission of guilt that they so desperately craved.

Today so much emphasis is placed on social media, that as an industry we need to be careful not to prematurely write-off media that can still be incredibly powerful for a person or brand. Very recently we secured an interview for a client of ours on Sky News, and the next day their phone did not stop ringing with new business enquiries. We mustn’t forget that audiences can still be reached via linear TV.

An interesting statistic is that average daily hours of television viewing rose to 3.94 hours in Q4 2009, driving 2009 figures to the highest since 2002, according to the Institute of Practitioners in Advertising’s latest Trends in Television Report. TV consumption is on the up, and remains to be taken seriously as a news channel.

Finally, I leave you with a great six minute video on how Richard Nixon turned the media into exaggerated fearmongers. It’s not completely relevant to the post, but well worth watching.

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Pondering the lost hours

February 19th, 2010

At Liberate Media, just as at any other agency, we are regularly invited to pitch/meet/propose on a number of campaigns, and each year a percentage of those campaigns will be what we all unaffectionately refer to as ‘time wasters’, or perhaps if we were looking at it as a more sinister act, the thieves who invite you to pitch simply to hear your patter and steal your ideas. We’ve all been on the wrong end of this approach, no matter what business you are in, and sympathy certainly isn’t the purpose of this post.

So why bring it up? Well, as part of a business planning session we did at the beginning of the month I looked into 2009 new business successes/failures as a learning exercise, and I was pretty flabbergasted by the results and the amount of work we had put in with little or no return over the year. To be clear, by return I don’t mean purely winning the campaign or getting paid, I mean no result what so ever. Either the client mysteriously went quiet, said the budget had disappeared, the campaign was never awarded to anyone, or the real killer; we win and it never goes ahead.

Okay, last year was pretty terrible in terms of the economy, so the budget excuse maybe valid, but the opposite is also true, with little or no budget why would you call a pitch/meeting if you weren’t 100%. That makes me suspicious.

I haven’t quite come to the conclusion that 2009 was a back stabbing fest with companies turning agencies over for their ideas, but from our experience there was certainly more of these unexplained losses than usual.

‘You should have been more aware’ I hear you say, ‘the ones that are out to steal ideas are easy to spot’, and to some extent or other I agree. I used to pride myself in spotting the odd chancer who’s just looking for ideas, having been involved in PR pitching for coming up to 12 years I’ve seen quite a few examples, but either my radar is on the blink or last year was an exceptional year.

So, looking back at the outcomes of some of these pitches, many of which were with big brands, I see a whole host of outcomes, such as; ‘we’ve decided we’re not quite ready’, ‘one of our directors is on board but the other isn’t', ‘budget has gone/been pushed back’, ‘campaign has been put on hold or stopped’, the list goes on.

In fact doing a rough calculation of the campaigns in question, and looking at those that I know have gone ahead, only 10% that we were not successful in went to another agency, or went ahead in some guise. That means 90% are either still waiting or have fallen into the ‘unknown category’.

So what are we to do? I’m not considering the whole ‘charging for pitching/ideas’ argument that pops up every now and again, but would like to establish why the surge last year? Yes we can chalk a certain amount up to the economy, we have to take a fair hit for not spotting the time wasters, but that still leaves a good percentage with a motive as yet unknown. Am I being unkind in suggesting they did this deliberately, or is it something deeper?

Is there a part of this ‘unknown’ that felt, or were told, that social media/digital PR is something they needed to be involved in as part of their 2009 remit? And when they understood the situation, or when they realised the scale of the opportunity, discovered that they hadn’t budgeted or resourced sufficiently? Could it also be that some people needed to just investigate this area and bring in agencies to talk it through, well if discussion is the focus, fair enough, but please don’t hide behind the promise of a campaign if you want to talk. Education is part of what we all have to do, and most of us are happy to do it, but not to be duped into doing it.

So what has this review exercise taught me? Well, thinking practically, this tale should not just be one of woe, we’ve also had the great fortune to meet some brilliant new clients during 2009, many of which were won in an open and often quick process which has fostered a great relationship that has continued to this day. I hope that if the education barrier was an issue that we’ll see less of these problems in 2010 or at least more openness in discussing the problems.

Please let me know if you have any insight or experiences that you would like to share in this area, as i think there is more to be explained.

Posted in Blog, Blogging, Content, Digital communications, Digital media, PR, Social media | No Comments »

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