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Web 2.0: An examination of its effects upon U.S. public relations practices

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Web 2.0: An examination of its effects upon U.S. public relations practices

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WEB 2.0: AN EXAMINATION OF ITS EFFECTS UPON
U.S. PUBLIC RELATIONS PRACTICES

by

Allison M. Johns

A Thesis Presented to the
FACULTY OF THE USC GRADUATE SCHOOL
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Fulfillment of the
Requirements for the Degree
MASTERS OF ARTS
(STRATEGIC PUBLIC RELATIONS)

December 2009

Copyright 2009 Allison M. Johns

ii
Dedication
I would like to dedicate this paper to William H. Hall. Over the course of our
developing relationship, I have learned greatly from the example Mr. Hall has set forth in
business about the importance of relationships, the significance of self-confidence and the
necessity for open dialogue. Furthermore, it is through our conversations that Mr. Hall
has helped me to understand the critical role that technological change will have in my
future. As technology helped to make Mr. Hall a success, it is through my understanding
of new media technology that I hope to not only make a success out of myself, but also
share my knowledge with others as Mr. Hall has so kindly done

iii
Acknowledgments
I would like to express my gratitude and acknowledge the support, time and
input of the many primary research participants that enthusiastically agreed to be a
part of this study. Specifically, I would like to thank Jerry Swerling, Philip C. Cashia,
and Jenn Floto, my mentor, who has taught me, over the course of the past year, the
true importance of effective and strategic communications. Finally, I would like to thank
my family for their support, inspiration and most importantly, their unconditional love
without which I would not be the person I am today.

iv

Table of Contents
Dedication ii
Acknowledgments iii
Abstract v
Chapter 1: Introduction 1
Public Relations Defined 1
Web 2.0 Defined 3
Hypothesis 5
Chapter 1 Endnotes 6
Chapter 2: Review of the Literature 7
Chapter 2 Endnotes 34
Chapter 3: Methods 37
Primary Research: Interviews 37
Secondary source statistics 43
Case Study: Threadless.com 51
Chapter 3 Endnotes 60
Chapter 4: Results and Recommendations 62
Bibliography 65

v
Abstract
This thesis is an examination of how Web 2.0 affects U.S. public relations
practices. The author investigates the definition of Web 2.0 to fully comprehend the
concept. Furthermore, the author studies the many roles, responsibilities and
definitions of public relations to fully discover the scope and breadth of current public
relations practices.
The research methodologies employed in this study include both primary source
interviews to validate the author’s recommendations, as well as multiple secondary
sources that provide both a practical and theoretical knowledge of Web 2.0 and public
relations.
The main conclusion of this thesis examination is that Web 2.0 has, through the
creation of completely new media technologies, fostered a new two-way interactive
communication model that is fundamentally shifting virtually all aspects of
organizational and individual communication, thus bringing enormous change to the
methods used by public relations, marketing and advertising professionals to
communicate with their target audience

1
Chapter 1: Introduction
Web 2.0, the technological and social phenomenon that will be fully defined
shortly, has given rise to new communication methodologies, which, in turn, have
caused a fundamental shift in the way the world interacts and communicates. The
purpose of this study is to examine how Web 2.0 is changing public relations
communication practices, specifically. Research into Web 2.0 and its impact on
communication is essential because the resulting knowledge will enable scholars to
identify and assess our society’s rapidly evolving communication processes. In addition,
this understanding can practically assist businesses, companies, brands and individuals in
their attempt to build better relationships with their customers and stakeholders.
For the sake of clarification and consensus, public relations and Web 2.0 will be
defined, as they are core to the purpose of this study. In order to understand the
interconnectedness and the cause/effect relationship between the modern ever-changing
Web 2.0 and public relations practices, these two main dependent variables must first be
defined individually before they can be understood collectively.
Public Relations Defined

Today, the value of public relations to an organization has grown to such an
extent that its function is broadly defined. Caywood (1997) states:
Public Relations is the profitable integration of an organization’s new and
continuing relationships with stakeholders including customers, by managing all
communications contacts with the organization that create and protect the brand
and reputation of the organization (p. xi).

2
The importance of public relations, ultimately, is its ability to foster effective
communications between an organization and its stakeholders, both internal and
external. Thus, the role of public relations is to optimize active, participatory and
effective communications within a company and all of its employees, but also to
increase active, participatory and effective communication beyond the company’s
walls to its external stakeholders, including current and potential customers.
This definition has evolved dramatically from the meager origins of public
relations, when the practice was simply a means of communicating with journalists for
third-party endorsements, or was employed as a defensive measure (Caywood, 1997).
With the rise of Web 2.0, however, public relations has greatly changed. The growth of
free markets and, most importantly, today’s instant global communication capability has
dramatically affected the practice (Caywood, 1997). For example, Caywood (1997)
notes that, “Public relations has its roots in the written word" (p. 223). Today’s demand,
however, is not just for the written word, but also for iconic images. Consequently,
modern day public relations practitioners must know how to communicate through both
words and images (i.e. visual communication).
Another relevant change for the public relations field triggered by the advent of
Web 2.0 is the speed with which those in the profession must react. Today, immediacy is
key, and public relations professionals must be able to keep pace with the ever-changing,
fast-moving flow of information. The luxury of weekly and monthly press releases has
given way to almost split-second constantly updated blogs, mini-blogs (i.e. “Tweets”)

3
and interactive websites. Information is available immediately, and the profession has
to be able to move at the same pace (Clark, 1997).
Traditionally, public relations has been differentiated from the fields of
advertising and marketing. Marketing, characterized by the identification of consumer
needs (real or perceived), relies on meeting consumer demand. Advertising, on the
other hand, is the complement to marketing, a means by which to proactively present
and sell the product to the consumer. Whereas marketing identifies, advertising presents
and sells.
However, today’s modern public relations practices have come to encompass
aspects of both advertising and marketing. In other words, “The lines between marketing
and PR have blurred” (Scott, 2007, p. 26). This is especially true on the Web where the
old rules have changed dramatically. With the onset of the Web, and now Web 2.0,
public relations, advertising and marketing practitioners now must incorporate all these
disciplines in order to reach and influence the millions of consumers who not only have
interests in global consumerism but also local and niche products, as well.
Web 2.0 Defined

Shuen (2008) suggests that because Web 2.0 encompasses so much, and can
become overwhelming in its enormity, it might be better understood using the age-old
anecdote of the blind men and the elephant. Unable to see the elephant, the blind men
each touch a portion of the immense beast, and describe their experience as the true and
complete one. Much like the elephant, Web 2.0 has come to be defined as containing

4
many different functions and features from many different perspectives. Ultimately,
however, these individual definitional traits generally fail to define the importance of
Web 2.0 in its totality. For example, whereas some define Web 2.0 in terms of its
technical aspect, others see this new phenomenon as primarily a social networking
application. Still others consider Web 2.0 the newest platform for delivering goods
and information to consumers. Tim O’Reilly, who along with other key players at the
2004 Web 2.0 Conference, pointed out that although there are many aspects of Web 2.0,
it is important to stress "the new ways that it enables large numbers of people to come
together to work, share and build" (Shuen, 2008, p. xviii).
The definition of Web 2.0 that will be used in this paper is characterized as a
technology-enabled two-way communication between people that requires both listening
and interaction. Unlike the early Web, which can be characterized as the communication
of one person to the “many” through the means of pushing messages and "shouting,"
rather then interactive communication, Web 2.0 is a more dynamic, rather then static,
communication channel.
Researchers, theorists and practitioners alike are playing catch-up as Web 2.0
grows and changes as it develops its own head of steam. As Shuen (2008) acknowledges,
“Web 2.0 isn’t strictly about the web, either. It’s also about collaborative innovation and
on line-off line sharing” (p. xviii). Apple’s iPod and iPhone include physical, web,
community, and licensing ecosystems to provide a complete experience that is proving

5
extremely popular and is changing the nature of music and the cellular industries
(Shuen, 2008).
Li and Bernoff (2008) contend that people create, connect, collaborate, react,
organize and consume via Web 2.0. Blogs, user-generated content, podcasts, social
networks, virtual worlds, peer reviews, all differentiate today’s web communication
function from yesterday’s static Internet world. Therefore, part of Web 2.0’s
definition is that it has given rise to many new communication technologies.

Hypothesis

New communication technologies are redefining how society communicates.
This shift in communications has forced marketing, advertising and public relations
professionals to change and develop new ways to communicate with stakeholders and
customers. Public relations, by definition, is best suited to take the lead in promoting
these new techniques precisely because the very practice of modern-day public relations
is characterized by the execution of effective communication skills that utilize elements
of public relations, marketing and advertising to create a dialogue among an organization
and its various internal and external publics. By embracing technological innovation and
change, the public relations discipline can use Web 2.0 principles to its own advantage,
and increase its value to organizations and brands.

6
Chapter 1 Endnotes

Caywood, C. L. (1997). The handbook of strategic public relations & integrated
communications. New York: McGraw Hill.

Li, C. & Bernoff, J. (2008). Groundswell: Winning in a world transformed by social
technologies. Cambridge: Harvard Business School.

Scott, D. M. (2007). The new rules of marketing & PR. Hoboken, New Jersey: John
Wiley & Sons.
Shuen, A. (2008). Web 2.0: A strategy guide. Cambridge, Massachusetts: O’Reilly
Media Inc.

7
Chapter 2: Review of the Literature
The practice of public relations (PR) has changed dramatically since its
inception in the early 1900's, when pioneer practitioners were first retained by big
business as a "defensive weapon" against negative public opinion (Caywood, 1997, p.
25). “Robber Barons,” such as John D. Rockefeller, needed to positively recreate their
images from ruthless and undeserving of public trust to charitable and philanthropic. In
particular, the Rockefeller family needed a new 'spin' after the violent and disastrous
Ludlow, Colorado mining rebellion in 1914. From those early days when press releases
were designed to put favorable light on the activities of big business, public relations has
evolved to encompass so much more than damage control (Blackwell, 2006; Harris &
Whalen, 2006). Similarly, the body of literature has grown and changed, as well.
The first books on public relations were published in the 1920's. Propaganda
(Bernays, 1928) was an early attempt to show how public opinion was a two-way street.
Bernays believed that it was the job of public relations to "interpret the public to
business" and, just as importantly, "interpret the business to the public" (Caywood, 1997,
p. 26). Bernays argued that the manipulation of public opinion was a necessary part of
the great debate of democracy, and its counterpart, propaganda, indeed, was an honorable
profession (Bernays, 1928). The public opinion "men"
1
of the time embraced Bernays’
ideas; they wanted to tell their stories in a favorable light.

1
Women did not enter the field noticeably until the 1940's, although Bernay's wife was instrumental in his
work (Gower, 2001, Gale, 2004).

8
As the field of public relations grew and expanded, so did the body of
literature.
However, it wasn't until the end of WWII that public relations took off. At that time,
discoveries in transportation, cable optics and long distance airwaves allowed for
greater expansions in the area of communications. In addition, there was a fear of
propaganda left over from Hitler's war machine, and people, especially in the United
States, were enthusiastically embracing the blossoming field, in the hopes of improving
communications worldwide (Bernays, 1928).
Prompted by this new interest, the Public Relations Journal, first published in
1945, remained foremost in its field until the 1990's when several more professional
public relations journals joined the fray. Each succeeding year saw new growth in public
relations literature (Gower, 2001). Today, a Google search for books written about
public relations will result in more than 750,000 online hits. For public relations, in
general, more than 119 million sources are available. The available literature has grown
exponentially to not only include books, journal articles, newspapers, academic
documents, encyclopedias and other traditional media, but also blogs, websites, forums,
virtual classrooms, videos, podcasts and an array of other Web 2.0 possibilities.
Consequently, this literature review will include traditional sources as well as a
sampling of “new” media. Current theories, trends and issues in public relations will be
presented, with the goal of synthesizing the conversation in light of the dramatic
influence of Web 2.0. In addition, this literature review will focus on the question, "What

9
are the effects of Web 2.0 on the practice of Public Relations in the U.S.?"
Specifically, it will examine the literature as it relates to the following themes:
1.Traditional paradigms and practices of business, marketing, and public relations
before Web 2.0; 2.The changing face of business, marketing and public relations, since
Web 2.0; and 3 Public Relation's new identity and its role in the future.

Traditional Paradigms and Practices of Business, Marketing and PR
before Web 2.0
In an attempt to explain and clarify the new marketing rules influencing public
relations practices, the literature gives a broad overview of the traditional methods and
practices which remained steadfast since the onset of the profession until the mid 1990's
(Caywood, 1997; Harris, 2006; Scott 2007). Understanding where we have been is
foundational to knowing where we are heading (Blackwell, 2006). Although public
relations has grown and changed over the years, for the most part, until Web 2.0, the
basic premise was the same: Advertising and public relations were separate disciplines,
with advertising relying on interruption marketing, one-way company to consumer
communications, appealing to mass markets, and producing "hits" in order to sell (Scott,
2007). For the most part, with a few exceptions (Blackwell 2008), the literature provides
just enough evidence to depict traditional marketing tactics as no longer relevant for
many of today’s businesses. Godin (1999), Ries & Ries (2002), Anderson (2006), Scott
(2007) and Shiffman (2008) present traditional business, marketing and public relations
practices as examples of what not to do in today's Web 2.0 influenced world.

10
Shiffman (2008) adds to the body of knowledge by explaining the traditional
marketing paradigm, the "Four P's:" product, price, place and promotion were the rules
of thumb. In the past, the consumer had few choices of products. There was a "funnel
approach" to business where only a relatively few products. The surviving products
were generally those that became ”brands” due to the support they received from
sophisticated marketing departments, which built campaigns consisting of costly
advertising, branding, and vying for media attention (Shiffman, 2008).
Shiffman's main premise is that Web 2.0 has created a cultural shift in consumers’
behavior. Instead of "insular read-learn-follow-along consumer behavior," today's
consumer is "participative, collaborative, user-generated, sharing, social, global, open
[and] interactive..." (p. 2). This shift from passive to active came about because of new
communications technologies. The Net Generation, 1977 - 1996, Shiffman explains,
grew up with computers and has come to expect active participation and engagement.
Thus, today is the "age of engage," or, at least it should be for business (Shiffman, 2008).
Shiffman (2008) describes the "cataclysmic shift" that has taken place in the
world of marketing and public relations. One such shift is "transparency." The more
access to information consumers have, the more they expect transparency in their
business dealings (Godin, 1999; Shiffman; 2008, Tapscott; 2008). Traditionally,
consumers had little access to company information; they only knew the company "story"
as presented through press releases, company newsletters, and occasional third-party
media stories. The company's story was not always trustworthy, as, most likely, it

11
presented the company in a particularly positive light, created as part of an advertising
campaign. Today, Shiffman (2008) points out, computer-savvy individuals have
access to a variety of information – blogs, forums, discussion groups, websites,
articles, journals, e-books, to name a few – and companies can no longer hide behind
carefully crafted public relations campaigns. Consequently, companies had better join
in with the new paradigm of "openness, sharing and collaboration" (p. 38) or they will
be the organizations that fail in today's collaborative, open and transparent business world
(Scott, 2007, Tapscott, 2008).
In general, Strauss & Howe (2000) further substantiate the role Web 2.0 has
played in revolutionizing communications and technology. Specifically, Strauss & Howe
identify the Millennial Generation, also coined Net Gen, as the cohort of individuals with
attributes that support today’s revolutionary shift in communication. Born between 1982
and 2002, flocked by Gen X and Gen Y, the Millennials is America’s largest and most
ethnically diverse generation. (Strauss & Howe, 2000). Characterized primarily by their
familiarity, understanding and lifetime practice of using the Internet, the Millennials are
highly tech-savvy (Hurt, 2008). Innovative, analytical, collaborative, having a strong
desire for the customization of goods, respect for freedom and dedication to integrity
among all establishments, are additional traits common among this generation (Hurt,
2008). Thus, the interaction between the Net Gen and Web 2.0 modern technology has
given greater importance to transparent, open, interactive and collaborative interaction, as

12
it the Millennials, or Net Gen, that are shaping the very core of society’s mode of
communication.
Scott (2007) argues in The New Rules of Marketing and PR, that although
traditional, "non-targeted advertising" was the way to practice communication in the
past (and may still work for some megabrands), for the most part; new rules are in
place due to Web 2.0 (p. 5). Scott lists nine old rules of public relations: For example,
companies communicated to journalists via press releases; companies had to have
significant news before writing press releases; and, public relations and marketing were
separate disciplines run by different people with separate goals, strategies, and
measurement techniques, to name a few (Scott, 2007). Scott then emphatically states that
none of these rules are true anymore, but by understanding the rules that used to govern
marketing and public relations, businesses can learn what to ignore and what to
emphasize (Scott, 2007).
Like much of the literature on the subject of the changing nature of public
relations, Scott gives credit to Chris Anderson and his Long Tail Theory (2006) for
explaining the fundamental changes in business and, subsequently, public relations.
Anderson begins laying the foundation for his argument by describing the nature of
culture and business before the Industrial Revolution in America. For the most part,
culture and business remained local, determined "more by geography than affinity"
(Anderson, 2006, p. 27). Consumers could only get what was available to them locally.
However, with the rise of the Industrial Revolution, that began to change. Transportation

13
methods improved. Individuals had more choices and opportunities to buy unique and
varied goods from other towns, states and even countries. All that was needed was
"mass media to give it wing" (Anderson, 2006, p. 28).
Although newspapers, magazines and radio had their fair share of influence,
the Golden Age of Television marked the peak of traditional advertising. The water
cooler effect – office workers discussing a shared cultural event – made prime-time
television a must-see, as everyone in the office could discuss the top show from the
previous night (Anderson, 2006). There were not many choices; programs and
commercials were limited, as were the products they promoted. The Four P's of
Marketing were solidly in place (Anderson, 2006; Shiffman, 2008).
However, the stability of the traditional four p model of marketing began to
decline as technology thrived in the field of media. Specifically, one of the first media
based technological inventions, the radio, played a prominent role in the shift in business
practices from the production of limited "hits" to small niche marketing that offered
greater variety in music selection. In the past, radio stations and radio personalities
determined which songs became "hits" and which songs fell into obscurity. Between
1950 and the late1980's, radio reached its peak of influence. By the mid 1980's, more
than 500 stations aired top hit radio shows (Anderson, 2006). It seemed as if the
traditional modes of releasing hit music were here to stay. However, in the mid 1990's,
"the first cracks were to appear" as "the combined effects of Napster and other online file

14
trading and CD burning and trading gave rise to an underground economy of any song,
anytime, for free" (Anderson 2006, p. 33)
Radio listenership dropped dramatically. In 1993, Americans spent
approximately 23 hours a week listening to radio. By 2005, on the average, one radio
station a week went out of business due to low listenership (Anderson, 2006).
Anderson credits the downward trend of radio to the rise of the iPod (music on
demand), the cell phone (news, traffic, and weather on demand), the 1996
Telecommunications Act (added thousands of FM stations, increasing competition and
depressing the market), Clear Channel (homogenization of radio) and the FCC's
obscenity crackdown (no more 'Howard Stern type' radio shows, leading to even further
homogenization) (Anderson, 2006).
In all sectors, small niche products, defined by interests, became the wave
(Anderson, 2006). Although, at times, appearing to be an internet phenomenon,
Anderson says the roots of small niche markets date back to the late nineteenth century
when massive warehouses came into being, and stores like Sears, Roebuck and Company
created their 1897 Wish Book, where over 200,000 items could be bought by families all
over the country.
This was mind-blowing stuff for a rural farm family. With the
heavy thunk of a single mail drop, the choice of available products
increased a thousand fold from the typical inventory at the general
store. What's more, the catalog also represented a drop of often 50
percent or more in price, even after shipping (Anderson, 2006, p.
43).

15
Enormous warehouses with cheap shelf space, centrally located next to the train routes
made mail order easy, economical and practical. Anderson (2006) explores the
changes in business with the rise of the small niche market. He visually portrays this
via a graph where the x-axis is the infinite number of possibilities or the "long tail,"
and the y-axis represents the popular "hits.” Unlike in the past, today's economy has
hundreds of thousands of small niche markets and the tail has unlimited potential
(Anderson, 2006). In support of his thesis, he cites businesses that have succeeded in the
long tail market (Amazon, Rhapsody, Netflix), and some that have even changed from
the "hit" market to the small niche market (Lego, computers, radio/iTunes).
Anderson does not believe the niche phenomenon is limited to marketing and
business, however. He contends that most Americans, although mainstream in some
areas, are, for the most part, "super-niche in some part of our lives" (Anderson, 2006, p.
184). The rise of the "niche culture will reshape the social landscape" as hits and mass
trends no longer drive consumers' interests (p. 185).
In summary, Anderson argues that the economics of the big "hits" has ended.
Due to efficiencies in distribution, manufacturing and marketing, the possibility of
available variety is far greater than realized by our culture, economy and customers
(Anderson, 2006). All of these niches, when aggregated, can make up a significant
market. And, as the cost of reaching these niches continues to fall due to the
democratization of tools, production and distribution, their profit potential increases

16
(Anderson, 2006). Niche products are in every market, and with the technology of the
Internet, consumers have come to expect a greater variety of choices, as many choices
as
there are individual tastes. The consumer has created the need for "unlimited
selections" (Anderson, 2006, p. 5).
As early as 1999, S. Godin, in his book, Permission Marketing, argued that
past consumers had more time and fewer interruptions. The world was slower. Emails
did not bombard the inbox. Available time was not a scarce resource. Consumers had
fewer choices so they did not mind so much the occasional interruption. However, as the
world became busier and people became inundated by the clutter of the web, television
and numerous other media messages, they began to guard their time and tune out
unexpected, unwarranted, and unwanted advertisements.
In response, Godin claims, marketers and advertisers "increased the level of noise
in their ads" and interrupted the consumer even more (p.27). The result is a waste of
money and a loss of consumer trust. Godin (1999) reports that most direct mail
campaigns, one of the tools of the traditional marketer, are considered worthwhile if they
have a response rate of two percent. Of course, that means that 98 percent of the target
audience ignored the mailing. Consequently, he promotes permission marketing, which
"offers the consumer an opportunity to volunteer to be marketed to" (Godin, 1999, p. 43).
Permission Marketing turns strangers into friends and friends into customers,
according to Godin. The old ways of getting customer attention are outdated - turning

17
strangers into customers. Godin claims that today marketers must take the time to
invest in customers, turning them into friends, gaining their trust and permission.
Godin explains that people are inundated with massive amounts of information and
stimulus
everyday. They feel they are running out of time and, thus, guard their time doggedly.
Furthermore, with the rise of Web 2.0 and easy access to virtually unlimited media
channels, people can control what they read, watch and listen to; they can choose to
ignore most of what is presented to them, in the attempt to guard their time and privacy.
Consequently, Godin explains, businesses and marketers should change their tactics and
seek to get the customer's permission, thereby turning their communications into a
welcome one, rather than an unwelcome one. When marketers follow the permission
marketing approach, they change their relationship with the consumer and become
anticipated, personal and relevant (Godin, 1999).
Godin gives many examples of how permission marketing works for companies.
Not only does he cite large companies such as Amazon.com, but he also acknowledges
how permission marketing works for small companies, as well. Giving practical
systematic instruction on how to capitalize on permission marketing, Godin contributes to
the body of literature. He discusses some of the obstacles to permission marketing as
well as praising it. Reorganization, greed, patience and foresight are potential pitfalls to
permission marketing (Godin, 1999). Unlike marketing techniques of the past,
permission marketing is based on building a foundation of trust that takes time to show

18
lasting results (Godin, 1999). Thus, large companies that have relied on the traditional
tactics of interruption marketing may have trouble evolving into this new paradigm of
communications as their customer’s will need time to be won over.
Tapscott and Williams (2008) conclude that we are in a new age – the age of
participation and collaboration – the age of Wikinomics. In agreement with other
authors in this review, Tapscott and Williams acknowledge the effect Web 2.0 has had
on the changing landscape of business, marketing and public relations. The principles of
Wikinomics are openness, peering, sharing and acting globally, and those companies that
fail to reorganize and practice these new principles will not remain competitive (Tapscott
& Williams, 2008). Tapscott and Williams contend that this is a result of the new web
that is, "fundamentally different in both its architecture and application" from the former
web in that the old web was similar to a newspaper or magazine (p. 37). You could read
the content but you could not interact or change it. Web 2.0 brought about a fundamental
change. They state:
Instead of a digital newspaper, think of a shared canvas where
every splash of paint contributed by one user provides a richer
tapestry for the next user to modify or build on. Whether people
are creating, sharing, or socializing, the new Web is principally
about participating rather than about passively receiving
information (p. 37).

Tapscott and Williams (2008) challenge businesses to include the consumer in the spirit
of production, allowing them to become "prosumers," that is, co-innovators in the
products they desire (p. 127). This can be done in a variety of ways and in almost any
field of business. "Blogs, wikis, chat rooms, search engines, advertising auctions, peeto-

19
peer downloading, and personal broadcasting represent new ways to entertain,
communicate and interact" (Tapscott & Williams, 2008, p.14), while science,
education,
medicine, mining, technology and publishing are examples of areas that can thrive
under the new spirit of Wikinomics.
The authors state many benefits of following the four principles of
Wikinomics. By being open, companies build trust and relationships. With information
readily available at the click of a key, Tapscott and Williams emphatically state,
"Transparency –the disclosure of pertinent information -is a growing force in the
networked economy" (2008, p. 22). Like never before, stakeholders are scrutinizing
businesses and organizations. Consequently, openness attempts to show there is nothing
to hide.
Sharing, the second principle of Wikinomics, is a "win-win for everyone" (Tim
Bray in Tapscott & Williams, 2008, p. 27). By sharing information, discoveries have
new potential. The collaboration and democratizing of innovation expands markets and
creates new opportunities. Peering, the new horizontal organizational chart, succeeds
because it takes advantage of a wide range of ideas and experiences. "It succeeds
because it leverages self-organization" (Tapscott & Williams, 2008, p. 25). Lastly, acting
global, the fourth principle of Wikinomics, benefits both business and consumer because
it taps a much large global talent pool and opens up numerous markets and opportunities
(Friedman, 2007; Tapscott & Williams, 2008).

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Tapscott and Williams point out the new generation, “the Net generation,” has
grown up using the Internet. Users in this bracket expect transparency, collaboration,
sharing, openness and acting globally. Companies that adopt the new Wikinomics
principles will attract this completely new generations of prosumers, who have "long
tail" tastes and innumerable resources.
Businesses must supply an infrastructure for collaboration and leaders must
"rewire" their minds for Wikinomics in order to incorporate the principles into their
business objectives (Tapscott & Williams, 2008). In addition, by participating in and
learning about the many venues of social media, businesses can change the way they
communicate "the vision, values, and priorities of the firm to customers, partners, and
employees" (Tapscott & Williams, 2008, p. 313).

The changing face of business and PR
In The Fall of Advertising and the Rise of PR, Ries & Ries (2002) claim that
advertising, in the traditional sense, is passé. Costly, inefficient and lacking credibility,
the era of mass media marketing and traditional advertising has ended, according to Ries
and Ries. "Marketing has entered the era of public relations" (Ries & Ries, 2002, p. xxi).
After discussing why and how traditional advertising is failing, Ries and Ries lay
the groundwork for the rise of public relations. Building a company brand is the new
focus of public relations according to the authors. Advertising cannot build brands
because advertising is not credible. Only public relations has the credibility to build a
brand (Ries & Ries, 2002). The authors ask, "When was the last time an advertising

21
campaign built a book into a best-seller? Publicity certainly has. And word of mouth
has. But advertising never" (Ries & Ries, 2002, p. 105). Not that advertising is totally
absent from the marketers' tools. Ries and Ries suggest that, "advertising should
continue to
reinforce PR ideas and concepts" (p. 197). They advise that all the avenues available
to PR should be investigated before considerable money is spent on advertising.
Social media opportunities are the most immediate, cost-effective and practical
marketing techniques available (Scott, 2007). In his hands-on book, subtitled, How to
Use News Releases, Blogs, Podcasting, Viral Marketing, & Online Media to Reach
Buyers Directly, Scott agrees that the web has erased the boundaries between marketing
and public relations. "Great content in all forms helps buyers see that you and your
organization 'get it.' Content drives action" (p. 26). Consequently, corporate executives
must recognize the need for their companies to change direction. In fact, Scott even offers
corporate executives tactical measure to change, including specific methods for reaching
the buyer using social media, such as blogs, networks, forums, RSS, and wikis.
In the past, newspapers were the print media that gave daily news. Weekly
magazines and monthly journals were also responsible for disseminating information.
Today, with blogging and RSS (Really Simple Syndication), individuals receive up-to-
date news almost immediately. In addition, news does not have to filter through

22
professional venues. Anyone can make comments or report the news
2
. Blogging has
democratized the media (Scott 2007; Huffington, 2008; Shiffman, 2008).
Scott (2007) considers the blog the most important tool in his arsenal as a
public relations speaker, writer and consultant. Blogs are instantaneous, generating
instant
feedback. They provide a way for an individual or a company to keep stakeholders
informed and up-to-date. Although Scott realizes that not everyone respects blogs as they
are oftentimes not considered "real journalism," he says those people just "don't get it"
(Scott, 2007, p. 48). Blogs have become mainstream and influential; "ignore them at your
peril" (p. 51), he cautions.
The Huffington Post Complete Guide to Blogging (2008), considered one of the
authorities on blogs and blogging, highlights the history of the weblog, and coined the
term "blog" in 1999. Since the book was released, , 112 million blogs have been
published online. While the emotional, psychological, political, and other reasons to
create and maintain personal blogs may be as numerous as the number of personal
bloggers on-line, businesses must have purely bottom-line motivations for incorporating
blogs into their marketing plans.
Scott (2007) says that marketing and PR practitioners should think about three
different ways to use blogs. Blogs can be used by PR to "monitor" what people are

2
In a Washington Post article, a blogger is credited for helping locate terrorist activity. ThePlanet, a web-
hosting company out of Texas rented cyberspace to a group with Taliban connections. The Taliban's
account was pulled when a blogger noticed the connection and called attention to it. (Warrick & Rondeaux,
2009).

23
saying about your product, to "participate" in the conversations, and to "begin and to
shape those conversations" by writing your own blog" (p. 50). He sees the blog as an
important component of the social media revolution and cites several companies that
use blogging as a public relations tool, to much success in helping the company to not
only shape its brand identity but also shape the actual dialogue about their company
that occurs online. For example, McDonald’s has utilized its corporate blog to
emphasize its commitment to corporate responsibility fostering a stronger channel of
communication
and customer loyalty by “ demonstrating to customers that it is committed to doing
everything within its power to provide a quality product” (Snell).
In a 2008 study conducted by Bulldog Reports and TEKgroup International, Inc,
journalists were polled to find out how they used the Internet for research. Of the 2, 386
respondents (48 percent of whom were editors or editorial staff while 34 percent were
reporters or writers), nearly 75 percent follow at least one blog regularly, as compared
with 70 percent a year ago. More than 75 percent said that they used social media to
research a story compared with 67 percent polled the year before (New Study on Media
Relations, 2007). Nineteen percent receive five or more RSS feeds of news, blogs,
podcasts or videocasts every week, versus 16 percent in 2007. In addition, almost 54
percent of the journalist studied said they visited social media or networking sites, such
as Facebook, MySpace, or YouTube at least once a month (up 10 percent from last year),

24
while 38 percent visit these sites at least once a week (New Study on Media Relations,
2007).
Thus, more and more businesses are taking advantage of social media websites
and tools to promote their business in ways that attract the current Net-Generation. In
a recent on-line press release (February 2009), Sway, Inc., a leading company in social
media marketing, founded in 2004, reported that it launched its new online suite of
Web 2.0 tools, Shoutlet, for advertisers, marketing and public relations professionals.
Using the latest social media marketing techniques, Shoutlet connects businesses with
Facebook, MySpace, YouTube and technologies such as RSS, Podcasts, HTML email,
Mobile Phone SMS text messaging, widgets and wikis. Sway CEO and Chief Marketing
Strategist, Jason Weaver, explains that Shoutlet allows businesses to use Web 2.0
formats. "It has a powerful set of collaboration features that make managing online
marketing campaigns quick and efficient" (Sway Launches Shoutlet Web 2.0 Marketing
Tool, 2007, p. 1).
In addition, in keeping with the spirit of Wikinomics, Shoutlet invites, indeed
encourages, developers to build applications around their social media platforms. They
candidly state the terms: "Upon approval, your application will be listed on our store,
available for purchase from our client for use in Shoutlet" (Sway Launches Shoutlet Web
2.0 Marketing Tool, 2007, p. 1). By promoting openness, sharing, peering and
globalization, Shoutlet incorporates the Wikinomic principles described by Tapscott and
Williams (2008). In fact, as of September 14, 2009, Shoutlet has achieved such great

25
success that it formed a partnership with Tivo Inc. to offer advertising sponsored video
via the Shoutlet platform (Tivo Inc., 2009).
In a recent article in Business Week, Ochman (2009), states:
For companies, resistance to social media is futile. Millions of people are
creating content for the social Web. Your competitors are already there. Your
customers have been there for a long time. If your business isn't putting itself
out there, it ought to be (p. 1)

Ochman (2009) suggests that businesses incorporate Twitter, the newest Web 2.0
communication tool, whenever possible. Although not all companies or products will
benefit, Ochman cites several, including his own, that have. He contends that social
media "works great" (p. 2) if your company or product is already a known brand, but that
should not deter businesses. He gives the example of Savvy Auntie, a social on-line
community of aunts, godmothers, "and other women who love kids," founded by CEO
Melanie Notkin. Notkin used "Twitter to drive traffic, help her find suppliers, products
and even investors" before she even launched her business (Ochman, 2009, p. 2).
Ochman (2009) contributes practicality to the literature. Although she firmly
believes that social media are here to stay and are highly effective in driving traffic to a
business or product, she concurs that using social media takes "skills, experience, and
money" (p. 1). She continues, "Building a site that incorporates interactivity, allows
user-generated content, and perhaps also includes e-commerce doesn't come cheap from
anyone who knows what they are doing" (p. 1). Furthermore, it is not true, she claims,
that just anyone can do it. Although many people claim that they are media consultants
or social media gurus, few actually have the record of accomplishment to prove it

26
(Ochman, 2009, p. 2). There is no match for experience and few have the expertise;
those who do have the expertise, will charge greatly for it.
3

One social media communication platform that continues to grow
exponentially and may have great long-term potential for businesses is Facebook,
which has more than tripled in users between 2008 and 2009. "If there are 150 million
people in a room, you should probably go to that room" (Hempel, 2009, p. 54). Until
recently an attraction only for the college and under crowd, Facebook has become a
welcome daily addition to the lives of the "ahem, more mature types" (Hempel, 2009, p.
50) and businesses, as well.
CEO and Founder, Mark Zuckerberg, says that his ultimate goal in creating
Facebook was to provide a standardized communications platform "where you could just
type in anyone's name, find the person you're looking for, and communicate with them"
(Hempel, 2009, p. 50). It has achieved that and more. Going beyond a social networking
"party," Facebook attracts organizations, non-profits, businesses, political groups,
candidates, individuals and causes. In the 2008 presidential election, major candidates
had Facebook pages. Americans could become "friends" or "fans" of candidate Obama.
The value of Facebook for businesses is not, however, in traditional interruption
marketing. Online advertising has decelerated in 2009 from 17.5 percent to just 8.9
percent (Hempel, 2009). Banner ads are not effective because members mostly ignore

3
Ochman says that, as a rule, a $50,000 to $100,000 budget is needed for an on-line social media
campaign. If you add a "high-yield, highly targeted blog advertising campaign to kick off and support the
program," it will cost an additional $25,000 to $100,000 a month (p. 1).

27
them (Hempel, 2009). Instead, businesses and marketers can use Facebook to create
relationships, openness, sharing, recommendations, networks, word-of-mouth, and an
on-line buzz about their product.
Although books printed before 2007 offer little in the way of advice for
businesses using social media websites like Facebook, today online discussions,
articles, blogs and such are innumerable. In a single Google search for "How
Businesses can Use Facebook," over 800,000 hits appeared. The literature is seemingly
endless with advice on how to effectively market using Facebook.
In an online article, “12 Ways to Use Facebook Professionally,” Sohn (2009)
gives practical and proactive ways individuals and businesses can gain information and
increase their networking via Facebook. Among the ideas were looking for old co-
workers and connections, joining professional groups and organizations, looking for
events in your field of interest, adding apps to make your time more efficient, sharing
news, and making new networks of business associates. All of these techniques can be
part of the public relations’ arsenal (12 Ways to Use Facebook Professionally, 2009).
An Arizona Republic article dated April 4, 2009, reports one of the newest and
more creative ways of using Facebook and other social media networking sites: in the
nightclub business. Nightlife marketer, Jon Gluck, runs Iconic Events and Marketing, out
of Scottsdale, Arizona. He uses Facebook and MySpace to host weekly parties at hot
spots in the area. The idea is that anyone can be a celebrity and have a huge party, if they
open their parties to their Twitter and Facebook accounts. Gluck explains that this

28
appeals to "people who want to be a superstar for a night, complete with a promoter-
run nightclub party, fliers with their faces on them and VIP treatment" (Fearnow,
2009). They become their own public relations person, creating a buzz about their
product - themselves. The nightclubs and bars love the idea because they increase their
clientele and make additional revenue. During a recent party for former Arizona State
University football star, Sam Keller, there was standing room only at his party at a
popular club in Scottsdale. The ex-football star invited more than 700 of his Facebook
friends, and 40 of them actually showed up for his birthday party. Not only were these
forty additional paying-customers for the nightclub, but if the nightclub did its job
correctly and offered good service and food, those forty paying-customers most likely
will become repeat customers, recommending the club to friends and colleagues on
Facebook and other social networking pages. Thus, the nightclub gets great buzz and
Gluck gets recommendations for future opportunities (Fearnow, 2009).
Although social media communications and tools are only part of an overall
marketing program, they are an important component (Blackwell, 2006; Shiffman, 2008).
Younger consumers of the Net Generation, especially, will expect a company or product
to have a presence on Facebook, MySpace or any of the many other social networking
websites. In today's interactive Web 2.0 world, people want to follow businesses on
Twitter and make their "friends" mutual ones.

29
Public Relations' new identity and its role in the future

What does the future hold for public relations in light of Web 2.0 and the
changes in paradigms and techniques? Although there are many supposed 'experts'
touting their knowledge, only a few have the experience to actually warrant the
confidence of the business world. Razorfish, a highly respected digital marketing
company located in Seattle, Washington, employs more than 2,000 people worldwide.
The company, under the leadership of CEO, Clark Kokick, acknowledges the inevitable
changes in business, marketing and public relations, as business enter further into the
digital age. In addition to the disruption of traditional media channels, clients must face a
host of other problems,
not the least of which is a sluggish economy; savvy, connected, in-control consumers;
lower costs; and, expansion of global competition (Razorfish, 2009). In light of all this,
Razorfish believes that businesses should reinvent themselves using digital strategies and
techniques. They state, "Digital has the potential to re-image a consumer connection, or
reinvent a business model" (p. 9).
Razorfish reports that 2009 is going to be the year that social influence marketing
goes mainstream. In fact, Forrester Research, an independent technology and marketing
Research Company, found that that 75 percent of the entire population are now engaged
in online social behaviors (Razorfish, 2009, p. 14). Therefore, it is recommended that
businesses put effort into social media and its many components. As Facebook, and
networking sites like it, become even more influential, the trend towards social marketing

30
will increase (Razorfish, 2009). In addition to the increased usage of social media,
Razorfish also predicts top-down branding will continue to lose effectiveness.
The 2009 Digital Outlook Report states:
We believe the future of marketing is not about recycling TV spots or
banner ads on websites. Marketing is all about harnessing the social and
immersive nature of digital to build memorable experiences with
consumers and empowering those consumers to share your brand with
each other (Razorfish, p. 8).

The report further claims that the future of creating and sustaining brands is in building
experience, not necessarily great advertising campaigns Therefore, public relations
should have a broader role. PR should be involved in designing product and service
offerings, setting business strategy, delivering service after the sale, and creating
innovation distribution. Furthermore, they predict, in light of a 2008 Business Week poll,
that today's consumer will acquire new shopping habits in line with Web 2.0 capabilities.
The poll found that 69 percent of consumers research their purchase on line before
buying. 62 percent look at online reviews at least once, 39 percent compared a product's
features and price across retail outlets online, and almost 10 percent used their cell phone
to text a friend about a product while shopping or sent a picture (Razorfish, 2009).
Consequently, Razorfish sees the future of marketing and public relations highly
interconnected with digital technologies and recommends that its clients begin to
incorporate social media and other digital components into their business and marketing
plans.
In The Marketer's Guide to Public Relations in the 21st Century, Harris and

31
Whalen (2006) write of the future of marketing public relations (MPR). They feel that
the discipline of public relations is best equipped to deal with problems of the future,
whose solutions will be "attitude-based and communications-driven" (Harris &
Whalen, 2006, p. 247). They believe that because of Per’s unique position, "there is
an enormous opportunity for us to become the lead marketing discipline" (Harris &
Whalen, 2006, p. 247). While briefly discussing the milestones of each decade
beginning in 1950 and going up to the date of publication, the authors show how "public
relations has played an integral role in supporting each step in the evolution of the
marketing concept and is certain to continue to do so in the future" (Harris & Whalen,
2006, p. 251). According to the authors, the future of public relations lies in its ability to
shed old ideas for global, innovative, open, external and measurable ones. Public
relations is "strategically positioned" to assume a leadership role in marketing. As
consumers come to expect immediate and improved communications, emotional bonds
with companies and products, greater transparency and accountability, and easily
accessible information, public relations will be the bridge between companies and
consumers and "become the true integrators of communications" (Harris & Whalen,
2006, p. 258).
Jarboe (in Miller, 2008) contends that the field of public relations has to change,
and is changing, as the nature of doing business evolves via Web 2.0. In the old days,
Jarboe explains, it was the job of public relations to generate news coverage. Today, that
is only a small part of their responsibilities, interests and talents. In addition to getting

32
news coverage, public relations professionals also generate revenue, as well as
measure their own results (Miller, 2008). Jarboe claims that PR will move beyond
pitching stories to news reporters and will have to learn how to pitch stories to a news
search engine algorithm (Miller, 2008). The new face of marketing has to include a
digital component and professionals trained to communicate this new face to the
public. Most importantly, public relations personnel must broaden their vision to
include more interaction between disciplines. Jarboe states, "You've got to get the PR
people out of the silo" (Miller, 2008, p. 109).

33
Conclusion
The body of literature shows the field of public relations taking on a larger role
in marketing and business in the future. Public relations has evolved greatly since its
inception almost a century ago, but not until recently, due to the implementation of
Web 2.0 in daily life, has it seen so great a change. Not only is the profession working
under a new paradigm, but also the expectations for its future are as diverse as the long
tail market it finds itself in.
The literature collected for this review adequately, and colorfully, covers the
guiding principles of this thesis: Web 2.0: An Examination of its Effects on U.S. Public
Relations Practices. It provides a strong historical and theoretical foundation. It covers
present day practices and innovations in the field, and it provides a strong argument for
the future direction of PR. All in all, the literature has provided a firm basis for the
argument that public relations has been greatly affected by Web 2.0, and, thus, must
evolve to incorporate this component into its day-to-day practices and techniques.

34
Chapter 2 Endnotes
Anderson, C. (2006). The longer long tail: Why the future of business is selling less of
more. New York: Hyperion.

Bernays, E. (1928). Propoganda, (chapter 2, paragraph 13). Retrieved on April 8,
2009 from http://www.historyisaweapon.org/defcon1/bernprop.html.

Blackwell, J. (2006, December 1). Overview of traditional marketing. Retrieved April
7, 2009, from http://ezinearticles.com/?Overview-of-Traditional-
Marketing&id=374128.

Caywood, C. L. (1997). The handbook of strategic public relations & integrated
communications. New York: McGraw Hill.

Fearnow, D. (2009, April 4). Club birthday bashes make anyone celeb for a night.
Arizona Republic. Retrieved April 11, 2009, from http://www.azcentral.com.

Friedman, T.L. (2007). The world is flat: A brief history of the twenty-first century, New
York: Farrar, Straus and Giros.

Gale, T. (2004). Edward L. Bernays. Encyclopedia of World Biography. Retrieved April
07, 2009 from HighBeam Research: http://www.highbeam.com/doc/1G2-
3404700617.html.

Godin, S. (1999). Permission marketing: turning strangers into friends, and friends into
customers. New York: Simon & Schuster.

Gower, K. (2001). Rediscovering women in public relations: Women in the public
relations journal, 1945-1972. Journalism History. Retrieved April 07, 2009 from
HighBeam Research: http://www.highbeam.com/doc/1P3-74253305.html

Harris, T. & Whalen, P. (2006). The future of marketing public relations. The Marketer's
guide to public relations in the 21st century. Mason, Ohio: Thomson Higher
Education.

Hempel, J.(2009, March 2). How Facebook is taking over our lives. Fortune, 48-57.

The Huffington Post complete guide to blogging. (2008). New York: Simon & Schuster
Paperbacks.

35
Hurt III, H. (2008, December 20). A Generation with more than hand-eye
coordination. The New York Times. Retrieved October 20, 2009.
http://www.nytimes.com/2008/12/21/business/21shelf.html?scp=1&sq=Harry
Hurt III&st=cse /

Miller, M (2008). Online marketing heroes. Indianapolis, Indiana: Wiley Publishing,
Inc.

New study on media relations reveal how journalists use Web 2.0 technologies. (2007,
October 30). Business Wire. Retrieved on March 25, 2009 from
http://www.businesswire.com.

Ochman, B.L. (2009, February 19). Debunking six social media myths. Business Week,
Retrieved http://www.businessweek.com/technology/content/feb2009.

Razorfish 2009 Digital Outlook Report. Adobe Document Retrieved April 2009.

Ries, A. & L. (2002). The fall of advertising & the rise of PR. New York: Harper
Business.

Scott, D. M. (2007). The new rules of marketing & PR. Hoboken, New Jersey: John
Wiley & Sons.

Shiffman, D. (2008). The age of engage: reinventing marketing for today's connected,
collaborative, and hyper-interactive culture. Ladera Ranch, California: Hunt
Street Press.

Snell, S. (2009, August 20). Corporate Blog Design: Trends and Examples. Retrieved on
October 20, 2008. http://www.smashingmagazine.com/2009/08/20/corporate-
blog-design-trends-and-examples/

Strauss, W. & Howe, N. (2000) Millennials Rising: The Next Great Generation. New
York: Vintage Books.

Sway launches Shoutlet Web 2.0 marketing tool. (2007, June 6). Business Wire.
Retrieved March 2009.

Tapscott, D. & Williams, A. (2008). Wikinomics: How mass collaboration changes
everything. New York: Penguin Group.

36
Tivo Inc. and Sway Team Up to Offer Consumers Access to Advertising Sponsored
Videos Through Social Media Platform. (2009, September 14). PR Web.
Retrieved October 20, 2009.
http://www.prweb.com/releases/2009/09/prweb2870704.htm

Twelve ways to use Facebook professionally. (2007, July 24). Webworkers Daily.
Retrieved April 10, 2009. http://webworkerdaily.com/2007/07/24/12-ways-to-
use-facebook-professionally/.

Warrick, J. & Rondeaux, C. (2009, April 9). Extremist web sites are using U.S. hosts.
Washington Post. Retrieved April 10, 2009 from http://www.
washingtonpost.com/wp-dyn/content/ article/2009/04/08
AR2009040804378.html.

37
Chapter 3: Methods
Primary Research: Interviews
Introduction

Over the past year, 2008-2009, I have conducted interviews with individuals
directly related to the fields of marketing, advertising and public relations (PR).
Although many topics were discussed during these informal and personal interviews, five
major themes surfaced throughout. These five themes were:
1) Improving communications between customers and companies;
2) Improving a company's relationship with its customers;
3) The value of new social media venues and their contribution to PR and business;
4) The value and role of PR in a company; and,
5) The future of PR.
The following interviewees, introduced in alphabetical order, shared their
viewpoints about their varied roles, expertise, and observations as experts in the field:
• Stephanie Arnoldy, former Public Relations Manager at Yahoo, is currently a
Group Manager at Weber Shandwick.
• Kim Delsing, former CEO of Calvin Klein Cosmetics and co-founder with her
daughter, Jamie, of the Delsing Group, currently heads her own marketing
consulting firm. Jamie’s other credits include Vice President of Merchandising
and Marketing at H20 Plus, Marketing Consultant at EnhanceMe, Inc., Group

38
• Sales Manager at Saks Fifth Avenue and Senior Vice President, as well as
General Merchandise Manager at Emporium Capwell.
• Marissa Gluck, Founder and Managing Partner at Radar Research, a
marketing research-consulting firm, is also a former USC student with an MA
in Global Communications from the Annenberg School for Communications.
• William Hall's extensive experience in marketing, advertising and public
relations includes helping to create the music industry giant, Capital Records.
• Matthew LeVeque is currently Senior Vice President and Director of Digital
Strategies Group at the Rogers Group/
• Brenda Lynch is the Senior Vice President of The Rogers Group. Both LeVeque
and Lynch are also adjunct professors at the USC Annenberg School for
Communication.

Discussion
The importance of improved communications between the consumer and the
company was a major area of consensus. There has been an "attitudinal shift" with the
recent economic downturn, and "people are going back to what is safe" (Kim Delsing,
April 20, 2009, personal interview). Companies cannot afford to promote luxury and
extravagance, but must listen to the consumer's worries and concerns and "speak to them
appropriately" (K. Delsing, 2009) with the economic times. Companies need to "change
their messaging" and start talking in a language that is more appealing" to customers (J.

39
Delsing, April 20, 2009, personal interview), or companies can risk losing "relevancy"
(Gluck, November 14, 2008, personal interview).
Gaining a better understanding of customers and creating trust is the ultimate
goal for public relations (Gluck, 2008; Brenda Lynch, November 27, 2008, personal
interview). Businesses must listen to the consumer and respond (Gluck, 2008). The
age of one-size-fits-all is over (Gluck, 2008; Matthew LeVeque, November 21, 2008,
personal interview); mass messaging is "un-strategic" (Gluck, 2008). Companies must
do "more listening and less shouting"; they must find ways to engage audiences
(LeVeque, 2008) on an individual level. Marissa Gluck gives the example of the
Superbowl ad campaign. She says, "One unified message is limited. We are living in the
age of micro-brands and there is no such thing as a mass brand, anymore" (Gluck, 2008).
Therefore, the way companies communicate with the customers has to be re-evaluated
and, at times, revamped, in order to accommodate the new consumer.
As for the value of social media in today's business world, interviewees had
varied opinions. K. Delsing (2009) expressed that social media platforms are fads and
are only useful for promoting new businesses. Companies with established brands can
use social media or not; it won't make a difference to their reputation or sales (Delsing,
2009). Stephanie Arnoldy (October 27, 2008, personal interview) feels that social media
platforms will soon lose popularity "as less money will be invested in the creation of new
media due to the economy." Therefore, companies may or may not invest in new media,
as "it doesn't generate sales" (Arnoldy, 2008).

40
However, companies who count on user-generated media "without strategic
forethought" (Gluck, 2008), are in danger. The example of McDonald's and its
ClubMom website highlights the problem when a company has not "done its
homework" (Gluck, 2008). McDonald's tried to engage users in dialogues about its
brand, but failed to take into account that the users, mostly busy moms, rarely have
time to visit forums, discussion groups and websites regularly (Gluck, 2008). Gluck
adds that companies find themselves in the same weak position when they "forget that the
Internet is a global medium" (Gluck, 2008). One example, Gluck cites regards the
problems Chevy had in the 1970s when marketers tried to sell the Nova in Latin
American countries only to encounter that Nova means "doesn't go" in Spanish (Gluck,
2008). While this example provided by Gluck may be dated, such language blunders
occur even today. For example in 2005, IKEA began to sell a line of furniture with a
particular workbench called the “fartfull”(Zouhali-Worrall, 2008).
Bill Hall, on the other hand, feels that we "need to embrace new media" (Bill
Hall, December 12, 2008, personal interview). "Growth in technology creates the
brightest people" and he credits his own success to the many changes in music
technology. Hall (2008) adds that the new media will "continue to grow as long as it
makes things easier for people." He concedes that, true, personal relationships may
decline as new media usage rises, but he contends that these "technolog[ies] will make it
easier to communicate" in the long run, ultimately leading to "stronger collaboration." He
states, "Smart people will learn these tools" (Hall, 2008).

41
The interviewees' views on the value and role of public relations support each
other and many of the current views found in the literature review of this paper. K.
Delsing (2009) said that "public relations is only one part" of launching and building a
successful brand. Marketing and advertising are both essential parts as well to the
overall success of a company or business. For example, when developing the concept
for CK One, Delsing's goal was to create a brand with "broad distribution" (K.
Delsing, 2009). Her goal was to make "the fragrance appealing to all people."
Specifically, she wanted CK One "to appeal to the youth" audience market. Therefore,
from her "love of music" she tied the launch of CK One with musicians, "breaking all
previous models and traditions of marketing" (Delsing, 2009). While, this promotional
tie-in between a product and a musician is commonplace today, in the early 90’s, it was
on the forefront of creativity. Hall (2008) notes that the value of public relations
ultimately depends on the industry itself. However, PR has benefits that "go across the
board" (Hall, 2008). Hall says that public relations creates exposure, is essential to
letting people know how great you are, protects clients, and is cheap (Hall, 2008). Even
though he believes that marketing, advertising and public relations deserve the same
value (J. Delsing, 2009; Hall, 2008), if he was to launch a new product, he would "spend
more money on PR" (Hall, 2008).
The future of public relations depends on its willingness to innovate and adapt
(Lynch, 2008; Hall, 2008; Arnoldy, 2008). "Those who are innovative in the PR industry
are strategically getting it" (Lynch, 2008). One way to be innovative is to "blur the lines"

42
between advertising and PR (Lynch, 2008), using an integrated marketing approach,
where integration is valued and "marketing messages do not compete with each other "
(Lynch, 2008).
The "essence of PR is dialogue," says Lynch (2008). As communications
between consumer and companies increase in importance, public relations will also
increase in value (Lynch, 2008). As consumers insist more and more on "talking
directly to companies" (Lynch, 2008), PR will become more necessary
Even so, "there is a lot of bad PR" as "many people are stuck in the old model"
(Arnoldy, 2008). In order for PR to benefit an organization, it needs to "harness how
quickly things change and know which tools of new media to use to get a company's
current message out to its consumer" (Arnoldy, 2008). Those "companies that succeed
will be the companies that break rules - that step out" (K. Delsing, 2009).

Conclusion
In summary, the interviewees agree that public relations plays a unique and
important role in today's world. Thoughtful, strategic communications and relationship
building are key to successful business, and this is the essence of public relations. It is
imperative that companies communicate with consumers via a two-way dialogue, again
another role perfectly suited to public relations. Interviewees expressed that in order to
be successful, public relations professionals need to innovate and change with the times,
using the many communication tools available. These tools, such as social media, have

43
their value and function, but it is truly customer communications and building
customer relations that makes a brand an economic success

Secondary source statistics
Introduction

An examination and analysis of secondary source statistics affirms the thesis
that the communication landscape, in the wake of Web 2.0, is changing radically.
Businesses must form new ways of communication to reach the customer in order to stay
competitive (Godin, 1999; Ries & Ries, 2002; Tapscott & Williams, 2008). With the rise
in social networking and interactivity online, businesses have had to reevaluate their
methods and objectives to fit into the interactive, innovation, open, global and engaged
community. This has presented a unique opportunity for the field of public relations to
become a vanguard for facilitating communications between the new prosumers and the
reactant business model (Ries & Ries, 2002).
The Ketchum Media Myths and Realities Study (published jointly with the USC
Annenberg Strategic Communication and Public Relations Center) and the University of
Southern California's Generally Accepted Practices (GAP) in PR Study both support the
ideas presented in this paper. Whereas the Ketchum study focuses on the media habits of
adults (both average citizens and "influencers."), the GAP study focuses on the role of
public relations in a company, especially professional attitudes. The Ketchum Study
looks at changes between 2006 and 2008, while the GAP Studies compares 2007 to 2008,

44
although the initial research dates back to 2002. Together, they show the changing
trends in communications and the unique opportunity this presents for the field of
public relations.

The Ketchum Study: Media Myths and Realities
Ketchum Public Relations, a well-established and respected PR firm, whose
clients include Kodak, Federal Express, the World Economic Forum and the Geek Squad,
conducted a survey online between September 30 and October 18, 2008. The Media
Myths and Realities Survey compared the media usage habits of 1,000 American
4
adults.
Among these adults, 200 of them were "influencers," that is, those individuals who
"initiate changes in their community or society through a variety of activities" (Media
Myths and Realities Survey, 2008) and 500 of the respondents were communications
industry professionals.
The questionnaire invited respondents to participate in a survey, whose results
"will identify gaps in communication between what consumers want and what they
receive, and identify the types of media consumers believe are the most credible" (Media
Myths and Realities Survey, 2008.). Questions included such examples as: Other than
advertising, in the last month, which of the following sources of information have you
read, watched, listened to, or used? How credible, on a scale of 0 - 10, do you find each

4
They also conducted a survey in the UK and Brazil, but this study is concerned with the United States
only.

45
source of information to be? Which of the following tools/devices/channels do you
turn to first to get news or information?
The 51-question survey showed several interesting trends, especially in light of
this thesis. The first is that consumers have lost confidence in individuals and
companies that do not have credibility. Specifically, there was a decrease in
confidence shown to celebrity endorsements (28.6%) and experts in consumer
magazines (21.7%). In addition to celebrity endorsements and experts in consumer
magazines, the survey showed that consumers also lost faith in major television news
networks (8.5% since 2006), local papers (8.7% decrease), local television (16.2%
decrease), talk radio (13.9% decrease), and trade magazines or newsletters (7.7%
decrease). On the other hand, interest and confidence in cable news, advice from co-
workers, and in-put from family and friends increased 4.3%, 30.4% ad 6.8% respectively
(Melding online media spawns fragmented communication landscape, 2009).
The study found that businesses need to reassess how they communicate with
today's informed consumer. They need to focus less on communicating to the masses and
more on communicating to today's new "public of one" (Media_Survey_Presentation,
2007). As mentioned above, the Ketchum Study revealed that people rely more on
friends and family for advice instead of celebrity endorsements or mass media hype; thus,
word of mouth is a viable public relations practice that should be investigated. "Knowing
that advice from family and friends is perceived as authentic and credible, companies that
can effectively tap into a work-of-mouth network in an organic and transparent way can

46
reap great benefits for their brands" (Scibetta in Melding online media, 2009).
Learning how to turn strangers into friends into customers will be the new order of
business (Godin, 1999).
Another interesting finding of the Ketchum 2008 Media Myths and Realities
Survey was the rather large increase in blog interest and use. Between 2006 and 2008,
there was an 85% increase in blog reading and writing, indicating that there is an
appeal to viewpoints outside of mainstream media. This could be because blogs do not
represent authority or expertise, necessarily, but instead a more democratic mindset,
where collaboration and peering are pivotal (Melding online media, 2009).
One of the most important pieces of information found was that there was a
decrease in traditional media usage and an increase in online media usage between 2006
and 2008. The study found that the use of shopping websites have doubled in those years
(from 17 to 35 percent respectively). These sites have become more than online stores to
purchase goods, but instead are social gathering places and information destinations for
the consumer. Therefore, businesses must understand this new phenomenon and learn
how to implement it effectively.
The above synopsis of some of the findings of the Media Myths and Realities
Study reinforces the idea that today's consumer wants a relationship with a company.
They no longer relate to celebrity experts or mass media advertising campaigns.
Credibility is the rally cry of today's consumer. The informed consumers of today are not
satisfied with being "told" what to buy and the price they must pay for a product. Rather,

47
they want to investigate, research and become their own source of expertise. Public
relations is in a unique position to bridge the communication gap between these new
consumers and business. Ketchum states, "Communicators' and consumers' views are
out of sync. PR must evolve...fast" (Media_Survey_Presentation, 2007). Public
relations is the key to helping business leaders understand and relate to the new
landscape.
PR GAP Study
Among the many goals of the Public Relations (PR) Generally Accepted Practices
(GAP) study, conducted by the Strategic Public Relations Center,
5
were to help define the
evolving role of public relations, assess the effectiveness of public relations' techniques
and define its contribution to business. Between the end of 2007 and the beginning of
2008, data was collected and analyzed from 520 senior level practitioners, who
completed the 38-question survey.
6
Respondents were broken down into revenue
categories. The six categories ranged from revenues less than $100 million to revenues
exceeding $6 billion.
GAP is a comprehensive study of the key issues that affect PR practitioners. It
addresses such questions as, how public relations fits within the overall organizational
structure, how much money companies spend on PR and PR agencies, and attitudes about
public relations' overall value to increased shares. Since its introduction in 2002, the GAP

5
Annenberg School of Communications, University of Southern California, 2007.
6
The first PR GAP survey only had 350 respondents versus 520 in 2007, showing an increase in interest
and respect for the study, thus, adding to its validity (GAP study, Section III-5).

48
study has become highly regarded as is considered one of the communications
industry’s most reliable sources for information about the perceptions of the
profession (Swerling, 2007).
Although the GAP study is voluminous, for the purposes of this paper, only
certain findings and implications will be discussed.
7
They are:
Budget changes in last and next fiscal year
Percent changes in PR staff size in last year
Degree of management support for PR function
Extent to which PR recommendations are taken seriously
Contributions to strategic decision making and planning
Likelihood of PR being invited to meetings dealing with strategic planning
Likelihood of PR/communications being invited to meetings dealing with
important issues that may or may not have communications
implications.
Extent to which PR/communications functions are integrated with other
departments
Extent to which CEO believes that:
a. PR evaluation methods are adequate,
b. Organizational reputation contributes to success,
c. PR contributes to maintaining or increasing market share,
d. PR contributes to financial success and increased sales (PR GAP Study,
2008, 111-57).

7
The entire study can be found at http://annenberg.usc.edu/CentersandPrograms/
ResearchCenters/SPRC/PrevGAP.aspx

49
In Section III/B-2 and III/B-4, respondents were asked the extent to which their
total PR budget changed from the previous fiscal year, the changes they expected to
see in their PR budgets in the next fiscal year, 2008, and the changes in staff size. In
all categories, except the $3.1B to $6B+, all respondents saw an increase, leading the
researchers to conclude that the field "was poised for a period of growth" and "much
better positioned to weather a recession than any time in its history" (PR GAP Study,
2008, 111-13, 26).
In terms of PR gaining or losing support, in Sections III/F-2 - 6, the findings
"reflect a consistently healthy degree of management support for PR" (PR GAP Study,
2008, III-48). PR Recommendations were taken seriously with a mean score of 5.67 (1
being "not taken seriously at all" to 7 "taken very seriously). PR Contributions to
Strategic Decision Making and Planning has shown a steady increase since 2002. The
businesses with the highest revenues ($6 Billion +), in fact, have "put a higher value on
PR contributions here than have other revenue categories participating in the survey" (PR
GAP Study, 2008, III-52). In addition, the researchers found an increase from 4.84 to
5.20, overall (1 being "never invited" to 7 being "always invited"), of the likelihood of
PR being invited to meetings dealing with strategic planning. (PR GAP Study, 2008).
In Section III/Fa-7 through F-7b, respondents answered questions about their
CEO's attitudes and beliefs regarding Per’s contribution. Does PR contribute to increased
market shares? Does PR contribute to financial success? Researchers found,
"The conviction of respondents that CEOs value the contributions of PR is undeniable

50
and signifies a much improved self-image and degree of confidence within the
profession" (PR GAP Study, 2008, III-60). Again, the study shows an increase in the
overall perception of public relations within a company.
Lastly, for the purposes of this study, Section III/H-1a, Extent to which
PR/Communications Functions are Integrated with Other Departments, the findings
are not as optimistic. According to the authors, there is only a mediocre to fair degree
of integration among departments, but they also believe that PR is in a unique position to
facilitate change in this area. It could be the "champion of cross function cooperation"
(PR GAP Study, 2008, III-77).

51
Conclusion
The PR GAP Study offers a valuable picture of Per’s position in American
companies. Poised to grow in significance, the field of public relations is ripe to
become the primary means for building brands, reputations, credibility and
relationships. The steady increase in Per’s value and worth is "reassuring" to the GAP
researchers. Together, the Ketchum Media Myths and Realities Study and the
University of Southern California's PR GAP Study, highlight some important
implications. Firstly, traditional media usage is on its way out and online media usage is
on the rise. Secondly, the way people communicate and shop has changed. Thirdly,
businesses must change with the times if they want to remain competitive. Lastly, PR is
the vehicle to communicate this change. It can and should be the liaison between the
consumer (prosumer) and the business, helping to forge a relationship built on credibility,
trust, expertise and open communications.
Case Study: Threadless.com
The business and public relations practices and principles of Web 2.0 are used
successfully in Threadless.com, an internet-based company. Openness, sharing, peering,
acting globally, permission marketing, crowd sourcing and collaboration are all
intricately woven into the Threadless business model, which began as an online tee shirt
contest and grew into a multi-million dollar business. Threadless has created quite a stir
in the business world as it continues to show profits each year. "I think user-created

52
content is a must for high margins in the businesses of the future. The perfect example
of this is threadless.com" (Sharkton, 2008, p. 1).
Threadless was formed in November 2000 when two young Chicagoans, Jake
Nickell and Jacob DeHart, met via an online design forum called Dreamless. They
each entered a tee shirt design contest hosted by Dreamless, and enjoyed the activity
so much that they decided to host their own contest. However, they decided to take
the Dreamless concept one step further. Not only would they have peer voting for the
best design, but also the winning entry would be printed on a tee shirt and sold online.
They each contributed $500 as an initial investment, most of which went to printing and
legal fees
8

The first tee shirt design contest was a great success. Though the first contest held
in 2000 had less than 100 submission, by 2002 the site had attracted more than 10,000
users and generated more than $100,000 in t-shirt sales (Chafkin, 2008). Participants
enjoyed the collaboration and peer reviews. Artists received feedback from other artists.
In addition, the winner received a tee shirt of his/her winning design. Although the
money was not the motivating factor for the many designers who entered, by the next
contest, the prize was up to $100.
For the first two years, all profits went back into Threadless. The company was
doing well, but the two young entrepreneurs had no idea what the future held.

8
Skinnycorp was set up as a Sole Proprietorship under Nickell's name with the intention of doing web
development design.

53
Consequently, they continued college, ran Threadless and worked outside jobs. They
never expected Threadless to be a full-time responsibility. They thought, at most,
Threadless would be a fun outlet while they pursued their real passion, web design
(Nickell, 2007).
Threadless, however, began to gain in popularity. As web designers, Nickell
and DeHart created a site that appealed to the internet community. It incorporated
collaboration and peering, encouraged community loyalty, rewarded participation, sought
globalization, and used Web 2.0 effectively. In 2003, the two young businesspersons ran
out of space in Nickell's apartment where they had been conducting business. They
rented a 900 square foot space to store their inventory and deal with shipping. When the
stress of school, work and Threadless became too much, they each decided to drop out of
college and hire additional help, as well. Sales went from $600,000 in 2003 to $1.5
million in 2004.
In 2004, they moved from the tiny-shared office space into a 3,700 square foot
space. By the next year, they expanded again to about 8,000 square feet. By October
2006, they moved into their current 25,000 square foot main facility. Employees, as well
as space, increased each year, and in late 2006, they teamed up with Insight Venture
Partner, to help them with the "business end," leaving Nickell and DeHart more time to
pursue and implement the fun, creative side of Threadless (Nickell, 2007). By the end of
2007, only seven years from inception, Threadless had exceeded $15 million in sales. "If

54
you can create a company that has its consumers create, advertise and sell your wares,
you’ll be in the money before you know it" (Sharkton, 2008).
That's the company's story. However, to really understand Threadless, one has
to visit the website and get involved in the community. Threadless.com incorporates
the best of Web 2.0. It truly is an online community, based on user-generated content.
Threadless founders, Nickell and DeHart, did not set out to create a business based on
the new business principles and practices of Web 2.0, but instead, Nickell and DeHart,
already "card-carrying members" of the NetGen, were simply inspired to make a "cool
website where people who liked the stuff they liked would feel at home" (Howe, 2008, p.
1).
The website offers a plethora of ways for members and guests, alike, to
participate. "Their model is extremely attractive in combining community and e-
commerce...They have turned the notion of research and development on its head"
(Spirrison, 2006, p. 1). Voting and submissions are ongoing; every Monday, new tee
shirts designs are released. In addition to advertising the new tees, the site offers videos
of Threadspotting, the moniker for spotting and photographing a celebrity wearing a
Threadless tee shirt. By submitting a picture of a celebrity wearing one of the winning
designs, participants win points for merchandise, yet another way to engage the customer.
In addition, artists are encouraged to promote their own designs on Facebook,
MySpace, Diggs, Twitter, Flickr and other social networking sites. In the spirit of
openness and transparency, interviews with various designers are highlighted each week

55
on the website allowing and encouraging community members to get to know the
people behind the designs. For those individuals who may be "artistically challenged,"
slogan contests exist to include them, as well. Anyone can submit as many tee shirt
slogans as he or she wish, for peer judging. During the week of April 20, 2009, some
of the slogans include: "Zombies only want you for your brain," "I only fight if
pillows are present," and "I liked homework better when it was just called coloring"
(www.typetees.com).
The Web site, which also offers features blogs and podcasts, has attracted a
community of more than 800,000 users. To build buzz about the web site, Nickell and
DeHart use "street armies" to talk up the tee shirts. Individuals earned store credit for
spreading the word about Threadless. Uploading a photo of yourself wearing a
Threadless shirt, wins $1.50 in credit. Referring a friend who later buys a T-shirt, nets
$3. (Spirrison, 2006).
Today, Nickell and DeHart have two retail stores in Chicago, which they like to
call, community centers. Plans to build in Boulder, San Francisco and even abroad have
begun. The Creative Director of Threadless, J. Kalmikoff, explains, "This is just a
fantastic opportunity for people to learn about the brand (Threadless: From Clicks to
Bricks, 2007, p. 1). In addition, the prize money for winning tee shirt designs has jumped
from the initial $100 to $2500 offered today. Threadless, created in the spirit of Web 2.0,
continues to thrive.

56
How Threadless uses Web 2.0 principles and practices
Over the last few years, especially with the growing influence of the NetGen,
people have come together in collaborative and cooperative ways to create products.
Oftentimes, the creators contribute for little or no money, deriving payback from the
self-satisfaction of exhibiting and passing on their talents, creativity and ideas (Howe,
2008). Having its "genesis" in the development of the open source Linux operating
system, in competition with Microsoft, Crowdsourcing, a term coined by writer and
editor, Jeff Howe, in 2006, has changed the nature of business (Howe, 2008).
Crowdsourcing is a decentralization and a democratization of the business model,
whereby the aggregate of consumers create the product. The prosumer is the crux of
crowd sourcing; he or she not only produces but also consumes. This benefits both the
company and the customer. The company has a loyal customer base, with steady
revenue, while the customer is assured that the product being developed is one it actually
wants and at the price the consumer is willing to pay.
There are four primary categories of crowd sourcing (Howe, 2008). The first,
collective intelligence, or crowd wisdom, maintains that the group has access to more
knowledge than the individual does. The second, crowd creation, follows this idea.
There is more creative potential among many than there is among the few. The third
category of crowdsourcing is crowd voting. By inviting the crowd to vote and judge
instead of a small group of individuals, the work gets streamlined. The crowd is able to

57
organize information much more efficiently. Lastly, the fourth category, crowd
funding, "taps the collective pocketbook" (Howe, 2008, p. 281), as a source of funds.
Threadless.com incorporates all these. Crowd wisdom and crowd creation is
their trademark. Not only does the community create the product, but they also vote
on which product to produce and sell. By sourcing out the work to the Threadless
community, thousands of tee shirts are judged each week, an impossible task if only
Nickell and DeHart were to attempt it. As for crowd funding, the community buys the
products it produces, and because Threadless has done its research, only those tee shirts
that are in demand become inventory.
Openness is a governing trait at Threadless. "In business, smart firms realize that
openness can accelerate innovation and unleash the knowledge, ingenuity and skills of a
diverse global talent pool" (Williams, 2009). The Threadless business design and model
has appealed to ventures around the globe. Springleap.com, a web based tee shirt design
company operating in Cape Town and Durban, South Africa, "noted the huge success of
US crowdsourcing phenomenon called Threadless.com and were impressed with the
model" (A Leap of Faith and Imagination, 2009). In September 2008, they started with
the same premise as Threadless, but "with strong points of differentiation" (Leap, April
18, 2009, p. 1). Using the social networking practices and ideas they found on
Threadless, MySpace, Facebook and Twitter, Springleap allows members to upload
photos, create profile pages, enter and vote on tee shirts, and promote their designs via
blogs, forums and discussions (www.springleap.com). A comparison of the two websites

58
reveals that Springleap is designed to look very much like Threadless. In the spirit of
openness, sharing and promoting global relationships, Threadless has become an
international model for Web 2.0 based businesses.
In a further attempt to broaden the community and embrace "sharing," the
American Red Cross and Threadless teamed up. The American Red Cross celebrated
its 125th anniversary with three new tee shirt designs created by the Threadless
community. The Red Cross online store (www.RedCross.org/store), along with
Threadless.com sold these tee shirts to benefit the Red Cross. The contest with the
theme, "hope, humanity and compassion" opened to the Threadless community in April
2006, with the winners being announced just a month later ("American Red Cross and
Threadless Online Community Team Up," 2006).
The Red Cross design contest is just one of the many "challenges" on Threadless.
Art, Books, Events, Organizations, Movies, Music, Technology, and video games are all
categories of "challenges" that designers can choose from. For example, under the
category of Events & Organizations, Lollapalooza, Discogs, E For All, Tribeca Film
Festival and the Wired NextFest 2006 offered challenges.
Lollapalooza, a three-day festival that took place in Nickell's and DeHart's
hometown of Chicago, sought a design that expressed the spirit of the word,
"lollapalooza," which means, "remarkable or wonderful person or thing." Designers were
given a few guidelines (i.e. “no copyrighted logos, please”) and a timeframe. Prizes were
inspiring. Besides tickets to all three days of Lollapalooza, the winning designer (and a

59
friend) also won two round-trip airfares to the festival from anywhere in the world,
three night "rock star" hotel accommodations, a commemorative swag bag and a $500
Threadless gift certificate which could be redeemed for $200 cash.
Linking to the community is important to Threadless and its young founders.
They offer classroom projects for teachers and students that can be downloaded from
the Threadless website. In addition, winners of design contests can forgo their prize
money of $2000 (quite an increase from the original "free tee shirt" winning prize) in
exchange for a $3000 college scholarship.

Conclusion
With so many links to the community and the world, Threadless embraces the
spirit of the Web. They have become the epitome of the business practices that have
evolved as a result of the new collaborative Web 2.0. Throughout the literature,
Threadless.com is held as an example of how it can and should be done. By building on
such characteristics as openness, sharing, peering, acting globally, permission marketing,
crowdsourcing, accountability and transparency, Nickell and DeHart have made a name
for themselves alongside traditional companies, and have, in fact, surpassed many of
them, as well.

60
Chapter 3 Endnotes
A leap of faith and imagination. (2009, May 17). The Star (South Africa). Retrieved
April 18, 2009 from HighBeam Research:
http://www.highbeam.com/doc/1G1-197794510.html.

American Red Cross and Threadless online community team up to create lasting
impressions for 125th anniversary. (2006, April 14). PR Newswire. Retrieved
April 18, 2009 from HighBeam Research: http://www.highbeam.com/doc/1G1
144483023.html.

Chafkin, Max. (2008, June). The Customer Is the Company. Inc. Magazine. 30, 88-97.

Godin, S. (1999). Permission marketing: Turning strangers into friends, and friends into
customers. New York: Simon & Schuster.

Howe, J. (2008). Crowdsourcing: Why the power of the crowd is driving the future of
business. New York, Crown Business.

Howe, J. (2008, September 2). Join the crowd. The Independent - London. Retrieved
April 18, 2009 from HighBeam Research: http://www.highbeam.com/doc/1P2-
17100645.html.

PR GAP Study. (2007). Annenberg School of Communications, University of Southern
California. Retrieved March 18 2009 from
http://annenberg.usc.edu/CentersandPrograms/ResearchCenters/SPRC/PREvGAP.
aspx.

Media Myths & Realities Study. (2008). Ketchum Public Relations. Retrieved April 10,
2009 from http://ketchum.com/media_and_realities_2008./.

Media_Survey_Presentation_2007.pdf. Adobe Document.(2009). Retrieved April 22,
2009 from http://www.ketchum.com/2007/mediasurvey.

Melding online media spawns fragmented communications. (2009, January 15). Seeking
Alpha. Retrieved April 19, 2009 from http://seekingalpha.com/article/ 11490-
melding-online-media-spawns-fragmented-communications -
landscape?source=from_friend.

Nickell, J. (2007, June 6). The history. Retrieved April 17, 2009 from
www.threadless.com/profile/1/skaw/blog/./227766/Threadless_com.The_History.

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Ries A. & L. Ries. (2002). The fall of advertising & the rise of PR. New York: Harper
Business.

Sharkton, C. (June 27, 2008). Threadless.com - A business model of the future.
Retrieved on April 19, 2009 from sufac.com/2008/06/threadlesscom-a-
business-model-of-the-future/.

Springleap.com vies for two award: Business Report. (2008, September 11). The Star
(South Africa). Retrieved April 18, 2009 from HighBeam Research:
http://www.highbeam.com/doc/1G1-184747394.html).

Spirrison, B. (2006, December 11). SkinnyCorp to purchase new threads with venture
deal. Chicago Sun-Times. Retrieved April 18, 2009 from HighBeam Research:
http://www.highbeam.com/doc/1P2-2791368.html.

Swerling, J. (2007, October 8). USC's GAP V study wants to pick your brain. PR Week.
Retrieved April 22, 2009 from http://thecycle.prweekblogs.com/2007/10/08/uscs-
gap-v-study-wants-to-pick-your-brain/.

Tapscott, D. (2007, December 22). Web 2: some bubble. European Business Forum.
Retrieved April 18, 2009 from HighBeam Research:
http://www.highbeam.com/doc/1G1-189932463.html.

Tapscott, D. & Williams, A (2008). Wikinomics: How mass collaboration changes
everything. New York: Penguin Group.

Threadless, from clicks to bricks. (2007, November 26). Business Week. Retrieved April
6, 2009 from www.businessweek.com/magazine/content/ 07_48/b4060074.html

Zouhali-Worrall. M. (2008, July 14). Found in Translation: Avoiding multilingual gaffes.
CNN Money. Retrieved October 20, 2009.
http://money.cnn.com/2008/07/07/smallbusiness/language_translation.fsb/index.h
tm

Williams, A.D. (2009, April 6). Open forum Europe: The openness imperative. Retrieved
April 10, 2009 from http://anthonydwilliams.com/2009/04/06/open-forum-
Europe-the-openness-imperative/

62
Chapter 4: Results and Recommendations
Results

This study examines the affects of Web 2.0 on the field of public relations. An
examination of the literature review, secondary source data and personal interviews,
results in several claims. Most importantly to this thesis, the research shows that
public relations practices, along with business models, are changing due to the influence
of Web 2.0. In addition, the literature, secondary source data and personal interviews
reveal that the current trend is for business and public relations to embrace Web 2.0
principles - openness, sharing, collaboration, global awareness, and transparency - in
order to remain competitive in today's highly technological and collaborative internet
world. In general, there was a consensus among interview respondents, and the literature
review, that Web 2.0 has brought about profound changes in business and public relations
models and practices, leading to increased value and functions for the field of public
relations.
A result of this study indicates that Web 2.0 has created a new communications
medium. This medium has not only altered the way we communicate, but also the way
today's consumers think about businesses and their relationships with them. As a result,
traditional advertising and marketing have taken a beating. People no longer are satisfied
with mass interruption marketing. They want to select the messages they receive.
Therefore, traditional advertising and marketing, based on the Four P's, are less effective

63
in the new business world, highly influenced by Web 2.0. As traditional advertising
and marketing decline, however, public relations gains greater value, due to its
emphasis on communications and relationship building, both Web 2.0 principles. As
the profession best suited to deal with Web 2.0 prosumers, with their great
expectations and demands for increased communication, openness, sharing,
transparency and accountability, this study indicates that public relations is on the
brink of great growth and increased value in business.

Recommendations

Although it seems apparent that Web 2.0 has greatly influenced the business,
marketing, advertising and public relations landscape, there are still many skeptics. The
jury is still out on whether social media is here to stay, or not. Businesses are not always
eager to discard their traditional models on a "fad" that may or may not be lucrative in the
near future. Additional studies need to be conducted in the areas of both social media
and public relations. Specifically, these studies should be quantitative and gauge the
effectiveness and dollar value of both fields. Furthermore, these studies need to be
conducted by independent bodies that do not have a stake in the report's outcome.
Studies, conducted not by researchers and practitioners in the fields of advertising,
marketing and public relations, but by objective non-stakeholders, need to increase. This
will increase reliability in the studies already conducted, such as the GAP and Ketchum
studies, both cited here.
Secondly, because the research supports the idea that Web 2.0 is creating new

64
communications methods, it is recommended that more resources be allotted to
educate professionals, already in the field, who might be skeptical of the value of
learning new methods of communications and customer relations. By allocating funds
and making it a priority, businesses will show support of pubic relations' unique
contribution. In addition, the value of public relations has always been hard to
measure quantitatively. Therefore, in order to assure that public relations practitioners
receive the credit and job opportunities they deserve, proof in the form of hard data needs
to be developed that quantitatively gives significant value to the use of PR.
Finally, the walls that divide the fields of marketing, advertising and public
relations need to tumble. These professions do not function effectively when isolated
from each other. Openness, sharing, peering and collaboration, all principles of Web 2.0,
need to replace isolation, suspicion and distrust. In today's world, a business's success is
dependent on its ability to provide a unified image with consistent messaging to its
customers. This can only take place when public relations professionals are allowed to
fulfill their role as communicators and bridge the divide across corporate walls within a
company.

65
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Asset Metadata

Creator Johns, Allison M. (author)

Core Title Web 2.0: An examination of its effects upon U.S. public relations practices

School Annenberg School for Communication

Degree Master of Arts

Degree Program Strategic Public Relations

Publication Date 12/02/2009

Defense Date 03/01/2010

Publisher University of Southern California (original), University of Southern California. Libraries (digital)

Tag advertising,business communications,Marketing,new media,OAI-PMH Harvest,permission marketing,Public Relations,social media,Web 2.0

Place Name USA (countries)

Language English

Contributor Electronically uploaded by the author (provenance)

Advisor Floto, Jennifer D. (committee chair), Cashia, Philip C. (committee member), Swerling, Jerry (committee member)

Creator Email ali.m.johns@gmail.com,allisomj@usc.edu

Permanent Link (DOI) https://doi.org/10.25549/usctheses-m2782

Unique identifier UC1298531

Identifier etd-Johns-2564 (filename),usctheses-m40 (legacy collection record id),usctheses-c127-279580 (legacy record id),usctheses-m2782 (legacy record id)

Legacy Identifier etd-Johns-2564.pdf

Dmrecord 279580

Document Type Thesis

Rights Johns, Allison M.

Type texts

Source University of Southern California (contributing entity), University of Southern California Dissertations and Theses (collection)

Repository Name Libraries, University of Southern California

Repository Location Los Angeles, California

Repository Email cisadmin@lib.usc.edu